CARNEGIE ENDOWMENT HOSTS THE DEVELOPING WORLDS PREDATORY LENDING INSTITUTIONS,WICH AWAIT FRUITS OF ARAB SPRING.. http://carnegieendowment.org/2011/11/07/will-economic-disruption-derail-arab-spring/68dj
Will Economic Disruption Derail the Arab Spring?
On Monday, the Carnegie Endowment for International Peace held an event entitled “Will Economic Disruption Derail the Arab Spring?” The discussion featured Masood Ahmed, the International Monetary Fund’s Director of Middle East and Central Asia Department, Caroline Freund, the Chief Economist for the Middle East and North Africa at the World Bank, Robert D. Hormats, Undersecretary of State for Economic, Energy, and Agricultural Affairs, and Marina Ottaway, a Senior Associate at the Carnegie Endowment. The panel was moderated by Uri Dadush, the Director of the Carnegie Endowment’s International Economics Program.Addressing the question of whether economics was a primary factor in the Arab Spring, the panel agreed that it was an essential factor, but one of many. Ottaway suggested political factors were far more important due to their short-term nature, whereas economics is a long-term consideration. Hormats agreed, calling economics one of many factors, and contended that political stability will result in economic stability, while Freund mentioned that economic factors were more important for the future than they were at the advent of the Arab Spring. Ahmed echoed those sentiments, saying that weak economies and a lack of jobs may hurt the democratic transitions in many countries.
Hormats called the timing of the Arab Spring a “tragedy” due to the poor economic climate during which it emerged. Official funding will be difficult to come by, he said, and a great deal of creativity will be required to acquire sufficient funding for the fledgling democracies. Freund also mentioned the challenges presented by these revolutions, stating that tourism in the region is down more than 40 percent, and foreign investment is seemingly on hold.When asked if the Arab Spring states are ready for outside assistance, Ottaway indicated there is an ambivalence regarding Western aid in many countries, and that many of the wealthy Gulf nations may need to step in and provide funding. Freund stressed that the “World Bank is ready to do more,” and has already pledged $1.5 billion to Tunisia, though it must take special care ensuring the money goes to “the right places.” Ahmed suggested that some countries had opted to utilize their internal reserves in lieu of accepting foreign aid, though this strategy may change in the second year of the transition. Hormets noted the need for these democratizing states to find an economic model not reliant on the IMF or World Bank and that there must be a focus on building infrastructure as well as the creation of an environment friendly to small and medium businesses.Ottaway added that many governments in the region know that change is necessary, but are unwilling to enact that change, with possible exceptions in Jordan and Morocco. Freund said there was a need for these states to recognize corruption within their systems and work to combat it and that there must be efforts to include the private sector in future development. Ahmed suggested people fear the private sector because of the way it used to dominate society and excluded the lower classes. There must also be a debate regarding the economic future of Arab Spring countries, Ahmed asserted, to balance out the political discussions. Hormets contended that for privatization to be considered seriously, the debate must be expanded to include a broader audience and clarify the economic goals linked to private industry.Finally, Ottaway also discussed the importance of engaging the Islamic political parties and examining the compatibility of their economic plans with the goals of their states. In general, each speaker also agreed that the informal sector will play a large role in economic development as well. When discussing whether or not economic problems will “disrupt” the Arab Spring, all the panelists agreed that they will not. Freund placed greater importance on security and political factors, while Hormets stressed that economics is part of a larger whole that will determine the success of the Arab Spring. Ahmed said that short-term economic issues must be addressed to ensure the success of the Arab Spring, and Ottaway emphasized that long-term economic issues must also be addressed.
[PRIVATIZATION,PRIVATIZATION,PRIVATIZATION AKA NEOLIBERAL ENSLAVEMENT!!!BTW FOREIGN INVESTMENT IS DOWN?NOT REALLY SEEMS US AND ALLIES HAVE ACTUALLY BEEN HOSTING NUMEROUS ECONOMIC SUMMITS LIKE MIDDLE EAST PARTNERSHIP INITTIATIVE,THE WORLD ECONOMIC FORUM AND OTHERS TYPE VENTURES IN JORDAN,LIBYA,MORROCO,ALGERIA,TUNISIA,EGYPT,ETC (YOU'LL SEE FEW POSTS DOWN)