February 13, 2014
The Economic Consequences of the Arab Spring
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Analyzing economic developments in the Arab transition countries, Khan notes that social unrest, higher oil prices, slower global growth, and regional spillovers resulted in sharp declines in gross domestic products and rising unemployment. To avoid another round of political upheaval, governments will need to balance policies to achieve macroeconomic stability and higher economic growth. Assistance from the International Monetary Fund and other international donors will help to stabilize the economies, but ultimately only market-oriented reforms that give a leading role to private sector will deliver the necessary growth rates to generate sufficient new jobs and improve standards of living.