Carnegie Endowment for International Peace
The International Monetary Fund expects the average economic growth in the Arab countries to be lower than 4 percent in 2014, a modest figure that is not enough to reduce the high unemployment rates.
There has been growing interest in the role that minimum wage plays in achieving social justice, through improving the living standards of low-income workers and reducing inequality in the distribution of income among various segments of society.
No noticeable progress has been made in dealing with the key economic factors that ignited the Arab uprisings. The cost of inaction may be huge if these countries fail in their transitions and slide into violence and extremism.
Although Algeria has the third largest oil reserves and second largest natural gas reserves in Africa, most Algerians complain of worsening social and economic challenges.
Delaying economic diversification exacerbates the crises Arab countries face, especially rising unemployment and fluctuating growth.
Some Arab countries should adopt industrial policies that promote the acquisition of technical and technological knowledge, to boost productivity and make them more competitive.
Algeria’s scheme to help hold off social unrest by redistributing substantial oil wealth cannot be sustained indefinitely. The regime must reform or face collapse.
The Moroccan government is trying to reform the kingdom’s pension structure, but the absence of any concrete measures could prevent retirement funds from meeting their financial obligations in the coming years.
Although Algeria has the third-largest oil reserves in Africa, unattractive government policies have led to declining foreign investment and a 20 percent drop in hydrocarbon production over the last 5 years.
The year 2012 began optimistically in Morocco, with a new government and constitution coming into force. But 2012 did not live up to expectations, and major reforms are still needed.
