The Political Upheaval in key Arabian countries was most welcome as it removed decades of monarchy, but The Subsequent Economic winter is certainly not. It is time for the Arab world to unite and face the crisis
Henry Kissinger, the famous American political scientist was once quoted, “You cannot make war in the Middle East without Egypt and you cannot make peace without Syria.” This was true 50 years before and this perhaps is as equally true today. Irrespective of that, it is equally valid to argue that the Arab economy as a whole cannot survive if the economies of Egypt and Syria collapse.
Arab nations, which have been ruled by monarchs for centuries, have seen long awaited democratic revolutions of late. Thus, nations like Tunisia, Egypt and Yemen have succeeded in overthrowing dictators like Zainal Abedine, Hosni Mubarak and Ali Abdallah Saleh. However, the challenges are not over. The severe political unrest that most of these Arab nations have gone through including Tunisia, Libya, Egypt, Jordan, Yemen and Syria are the very reasons they are projected to suffer a sever economic downfall.
A report published in May, 2011, by the Institute of International Finance (IIF) global banks group (consisting of 430 banks and financial institutions) forecasted that the economies of Egypt, Jordan, Lebanon, Morocco, Syria and Tunisia will shrink by 0.5% together in 2011 in contrast to the 4.4% growth they achieved in 2010. The African Central Bank, too, has recently predicted that the collective growth of the entire North African region would decline from 4.5% in 2010 to less than 1% in 2011. IIF has further projected that GDP growth of Yemen will fall by 4%, and that of Syria, Egypt and Tunisia would shrink by 3%, 2.5% and 1.5% in 2011.
Arab nations, which have been ruled by monarchs for centuries, have seen long awaited democratic revolutions of late. Thus, nations like Tunisia, Egypt and Yemen have succeeded in overthrowing dictators like Zainal Abedine, Hosni Mubarak and Ali Abdallah Saleh. However, the challenges are not over. The severe political unrest that most of these Arab nations have gone through including Tunisia, Libya, Egypt, Jordan, Yemen and Syria are the very reasons they are projected to suffer a sever economic downfall.
A report published in May, 2011, by the Institute of International Finance (IIF) global banks group (consisting of 430 banks and financial institutions) forecasted that the economies of Egypt, Jordan, Lebanon, Morocco, Syria and Tunisia will shrink by 0.5% together in 2011 in contrast to the 4.4% growth they achieved in 2010. The African Central Bank, too, has recently predicted that the collective growth of the entire North African region would decline from 4.5% in 2010 to less than 1% in 2011. IIF has further projected that GDP growth of Yemen will fall by 4%, and that of Syria, Egypt and Tunisia would shrink by 3%, 2.5% and 1.5% in 2011.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
IIPM Prof. Arindam Chaudhuri on Internet Hooliganism
Arindam Chaudhuri: We need Hazare's leadership
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
