The Economic and Financial Impacts of the Arab Awakening

In the midst of the recent speculation on the “Arab Awakening,” much emphasis has been placed on the political aspect of these popular revolts. While this facet is undoubtedly of utmost importance, one should be mindful that these uprisings have also brought the economic, financial and social dimensions yet again to the forefront. Indeed, these dimensions had a fundamental role in triggering the desire for a democratic change across a region and will play a determinant role in the sustainability of this New Arab Order by complementing the political achievements.

In this talk, I shall assess the economic and financial implications of these developments on the regions’ stability and long-term growth prospects.

I shall begin with a brief review of these uprisings, from their origination to the latest developments, highlighting their political and economic roots and analyzing the response of the international community. After that, I shall revert to the common strengths and challenges of the MENA region in view of a better understanding of the dynamics and transmission channels impacting its economic outlook. I shall then describe the immediate implications that we were able to witness during and following the turmoil and underline the dynamics for the medium outlook. At the end, I shall try to define the constituents of the paradigm change, which I refer to as being the proper mix between the political, economic and social reforms.

Download the entire talk below.