Emerging Developments and Challenges in the Arab World

The events of the last few weeks are a
watershed for Tunisia, Egypt, and other Middle East and
North Africa (MENA) countries. The ongoing political events
will resonate regionally and globally and, if followed by
sound transitions to better governance structures, these
events provide a unique opportunity to change MENA's
political and social landscape. The root cause of the
political turmoil in MENA is fatigue with longstanding
authoritarian rule and weak political and economic
governance as confirmed by public concerns over voice,
social justice, accountability and access to services. The
MENA region also has its strengths: its youth, resource base
and the resilience shown during the global crisis. The
economic and social impact will be significant in the short
term with slippages in economic growth, fiscal revenues and
tourism and Foreign Direct Investment (FDI) receipts. Large
parts of the population lack adequate access to jobs, land,
services, finance and justice. They may be further affected
as inflationary pressures grow depending, among others, on
oil and food prices.