The explosion of investment and growth in the oil-exporting countries resonated in Globalization in the middle east countries of the region through a sharp rise in worker remittances, trade, and capital flows. On most measures of good governance and institutions, especially voice and accountability, regulatory quality, and control of corruption, the MENA region did not fare as well as other developing and emerging economies Figure 3.
However, this gift is not automatic because it has to be translated into employment growth and a skill mix that is demanded in the global economy. Some progress has been made recently in introducing greater flexibility in the exchange rate policies in the region, such as in Egypt, the Islamic Republic of Iran, Morocco, Libya, Pakistan, and Tunisia.
There are several reasons for this ambiguity: For instance, further privatization efforts in the telecommunication and infrastructure sectors, appropriate regulatory oversight, proper sequencing of regulatory reform, and an adequate social safety net mechanism—all could serve to further stimulate private sector investments.
There were substantial cross-country differences in population growth rates. People were thus discouraged from supporting elements of globalization like democracy, free enterprise, civil and human rights.
In Saudi Arabia, a list of activities targeted for privatization was issued by the Council of Ministers in November Portfolio investment is virtually nonexistent because of the poor state of development of equity markets.
While acknowledging flaws in institutional arrangements, these reports also provide detailed diagnoses that help the authorities prioritize their institutional reform agenda and future technical assistance in these areas. Rather than reflecting a specific ideologyterrorism represents nostalgia for pre-modern civilisation and has been the result of a clash between modernization and tradition.
Technological achievements, capital mobility and free movement of people that resulted from the process thus allowed terrorism to express its local grievances and attack key symbols of American power in a way that had never been done before.
They may focus on the shortcomings of the Western system and fear the effects of such ideas or institutions in their own countries.
The challenges facing the region are daunting. Trade Restrictiveness, — Source: Several non-oil economies in the region rely on aid, capital flows, and worker remittances from the oil-producing MENA countries.
In the s and s, annual population growth rates in the oil economies exceeded those of non-oil economies by 2 percentage points. In fact, high growth rates in real estate and in construction may have been a factor in the negative TFP growth recorded in some MENA countries.
As a result, the size of governments in the MENA countries, as measured by the ratio of central government spending to GDP, averaged about 42 percent of GDP in the s, some 12 percentage points higher than for developing countries as a group excluding the MENA countries.
Differences also arise between oil producers and non-oil producers in the region and between countries that undertook reforms, and hence grew at higher rates, and those that were less vigorous in pursuing reforms and fell behind. Most economies in the region remain dominated by large public sectors that are heavily vested in financial markets through state-owned banks and other public enterprises.
Keller, Jennifer, and Mustapha K.
Delayed adjustment can manifest itself in real exchange rate overvaluation and misaligned exchange rates. The weight of evidence indicates that greater flexibility in exchange rate management enhances the ability of a country to deal with exogenous shocks, reduces the risk of banking crises, and contributes to maintaining financial stability.
While some critics argue that the Arab world is opposing globalization some others feel that it has strengthened Islamic fundamentalism by facilitating extensive networks of formerly dissociated Muslims.
In addition, the increase in private investment during that time has not kept pace with credit expansion. Some Progress, but an Unfinished Agenda Research indicates that trade openness—the degree to which foreigners and nationals may transact goods and services without government-imposed costs, that is, tariffs and nontariff barriers—is a significant contributor to higher productivity and per capita income growth.Middle Eastern countries should find a way to use globalization to their benefit.
The challenge to globalization exists at the state level in the Middle East. Most countries in the region have accepted the principles of economic liberalization and the need for adoption of World Trade Organization (WTO) standards.
Globalization in the Muslim Middle East: An Assessment The Middle East undoubtedly remains one of the most challenging arenas for the economic, cultural and political progress of globalization. Its progress thus far has been spotty, but we cannot expect that the status quo will remain frozen indefinitely.
Al-Qudsi 1 Globalization and the Middle East: Room for More? Globalizationi is as the term itself implies: a global and indiscriminating sweep that standardizes the commercial, military, cultural, and human resources around it with respect to one nation or group of peoples at the top.
In a 5/5(3). The Middle East and Globalization: Encounters and Horizons brings together contributions from leading scholars in Middle East Studies with a shared interest in theoretically ambitious approaches to globalization and world society.
The MENA region comprises the Arab states in the Middle East and North Africa—Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Somalia, Sudan, the Syrian Arab Republic, Tunisia, the United Arab Emirates, and Yemen—plus the Islamic State of Afghanistan, the Islamic.
Since the 9/11 attacks, the Middle East has been the focus of international attention and controversy. With Iraq still struggling for stability after the war and with tensions growing over Iran’s nuclear ambitions, the Middle East is at a crossroads.Download