International Network for Economics and Conflict

This paper assesses how events sweeping the Middle East since early 2011 impact US objectives regarding political and economic reform, prospects for the Middle East peace negotiations, the long term energy balance, security imperatives in the Gulf, and progress in counter-terrorism.

The recent political upheavals in the Middle East and North Africa region have exposed growing concerns about conflict risk, political stability, and reform prospects across its societies. Given the prevalence of oil and gas resource endowments in the region, which a voluminous literature suggests can be associated with adverse development consequences, this paper examines the interplay between their associated rents and political economy trajectories.

Experts have long identified slow progress in economic diversification and job creation, social inequalities, and persistent food insecurity as major development challenges for Arab countries. Did these factors and, more broadly, people’s dissatisfaction with their living standards contribute to the recent uprisings? At first glance, the sudden turn of events and the generally low coverage, quality, and accessibility of data in the Arab world make it difficult to find answers to this question. By looking beyond more conventional data, however, this policy brief provides some insights into the potential role of economics in the ongoing uprisings. It also reviews major policy responses of Arab governments and provides a new narrative of Arab development that is based on inclusive economic transformation, food security, and decisionmaking.