Middle East & North Africa

The human tragedy continuing to unfold in Gaza and Israel reminds us how important it is to get strategic forecasting right. While in no way excusing Hamas’ culpability for 7 October, we also cannot dismiss the fact that the failure to anticipate and prepare for such an attack has had grave consequences for communities on both sides of this conflict, undermined efforts to bring peace and prosperity to the region, and affected global interests through the expansion of the conflict to the Red Sea and potentially beyond. 

To keep oil flowing and diminish the U.S., Beijing brokers a deal between Iran and Saudi Arabia.

Ownership of reforms by citizens is often presented as important for success. This paper explores media engagement and support for economic reforms in the Gulf Cooperation Council (GCC) countries using text analysis techniques on publicly available sources. Results show that while reform efforts have intensified in recent years in the GCC, these efforts tend to focus on stronger rather than weaker policy areas, potentially limiting the growth-enhancing effect of reforms. Social media analysis using Twitter shows that the population’s support for reforms has been declining. The analysis of traditional
news media points to more engagement by international than by local media. However, sentiment from international media is less positive about economic reforms in the GCC. Sentiment in international media and social media matters, as evidenced by its positive and strong correlation with FDI inflows into the GCC.

Between October 2020 and May 2021, the Middle East Initiative conducted a series of nationally representative surveys to measure the economic, social, and public health impacts of the COVID-19 pandemic in the Middle East and North Africa (MENA) region.1 Designed and supervised by Tarek Masoud, Faculty Director of the Middle East Initiative, and Yuree Noh, Research Fellow, the surveys collected responses from 8,500 residents of seven countries in the region—Algeria, Egypt, Kuwait, Morocco, Saudi Arabia, Tunisia, and the United Arab Emirates. Our goal is to provide the data and insights needed to develop effective policy responses to current and future public health crises.

This report summarizes our findings on how COVID-19 has disrupted employment, mental health, food security, education, and childcare in the region during its first year. We also show that the consequences of the pandemic were felt most acutely by some of the region’s most vulnerable populations: the poor, women, youth, and children.

Stephen Walt argues that the true value of more diverse decision-making teams and more open political systems is not that they never make mistakes but rather that they make it more likely that policy blunders will be corrected once it is clear they are not working.

Recap of MEI event "Egypt: Lumbering State, Restless Society."

Hamidreza Azizi and Nicole Grajewski analyze Russian Foreign Minister Sergei Lavrov's recent demands  for written guarantees that Western sanctions over Ukraine "will by no means affect our right to free and full-fledged trading, economic, investment, military and technical cooperation with Iran."

Russian military action in Ukraine could trigger an energy crisis even more serious than the one already hitting Europe. As has been pointed out, should the West hit Russia with severe new sanctions, President Vladimir Putin could cut off natural gas exports, leaving the continent shivering through midwinter. Yet there is another potential weapon of Russia’s that’s been less discussed and might be very effective: An ability to disrupt global oil markets, which would directly hit U.S. consumers.

This paper explores the effect of oil shocks on electoral outcomes. Using a new polling and election data set for 207 elections across 50 democracies, the paper shows that oil price increases systematically lower the odds of reelection for incumbents. The analysis verifies that these shocks—which reduce consumption growth—are associated with worsening performance for incumbents in the runup to reelection and a reversal in the leaning of the political party in power post-election.  

The Covid-19 pandemic has drastically disrupted people’s lives, livelihoods, and economic conditions around the world. The global shock has resulted in a tourism standstill (Djankov 2020), significant capital flight (Djankov and Panizza 2020), and a slowdown in remittances (Nonvide 2020), resulting in an urgent balance-of-payments need. Egypt responded to the crisis with a comprehensive package aimed at tackling the health emergency and supporting economic activity. The Ministry of Finance acted swiftly to allocate resources to the health sector, provide targeted support to the most severely impacted sectors, and expand social safety net programmes to protect the most vulnerable. Similarly, the Central Bank of Egypt adopted a broad set of measures, including lowering the policy rate and postponing repayments of existing credit facilities. The next section highlights the experience of firms in Egypt following these policies.