The Role of the State in ME & NA

Background European Colonialism: Britain : Bahrain, Cyprus, Egypt, Iraq, Israel, Jordan, Kuwait, Oman, Qatar, Sudan, UAE, Yemen France: Algeria, Lebanon, Morocco, Syria, and Tunisia Italy: Libya

Background Form of government: Monarchy : Bahrain, Jordan, Kuwait, Morocco, Oman, Qatar, Saudi Arabia, and UAE One-party Republic : Algeria, Iraq, Iran, Libya, Sudan, Syria, and Yemen Multiparty Republic : Egypt, Israel, Lebanon, Turkey, Tunisia, and Cyprus

Background Political system: Authoritarian: Algeria, Bahrain, Iraq, Iran, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Sudan, Syria, UAE, and Yemen Semi ‑ Competitive : Egypt and Morocco Democratic : Cyprus, Israel, Lebanon, Tunisia, and Turkey

Background Economic system: Market Oriented : Bahrain, Cyprus, Lebanon, Qatar, and UAE Centrally Planned : Algeria, Iraq, Libya, and Syria State Capitalistic : Egypt, Iran, Israel, Jordan, Kuwait, Morocco, Oman, Saudi Arabia, Sudan, Tunisia, Turkey, and Yemen

Role of the State Protect individual property rights Protect civil liberties Provide public goods & services Redistribute income & wealth Reduce monopoly & externalities Stabilize the economy

Role of the State Role of the state is poorly defined in ME & NA because of The systematic policy reversal when political leaders and decision makers are replaced The “top man syndrome” as the political leader, knowing what is best for the nation, decides on behalf of the people

Role of the State Role of the state is poorly defined in ME & NA because of The lack of participatory democratic system in most countries The leader protecting benefits of the politico- economic elite and military personnel

Role of the State Role of the state is poorly defined in ME & NA because of The operation of inefficient “state-owned” enterprises, requiring massive subsidies The large share of the GDP allocated to military spending to maintain internal & external security

Role of the State The cost of government is high in ME & NA because of The frequent and often violent change of political leaders The suppressive regimes trying to stay in power The endemic planned and developmental corruption

Role of the State The cost of government is high in ME & NA because of The large share of government spending in the GDP (i.e., 30-40%) The inefficient taxation system and corrupt tax collection process The large opportunity cost of military spending (e.g., education, infrastructure)

Role of the State The cost of government is high in ME & NA because of The reliance of planning rather than free enterprise system in resource allocation The payment of subsidies on basic-need goods in order to buy public satisfaction The control of foreign exchange rate and manipulation of international trade and finance relations

Improving Role of the State Political Development: Participatory democracy Non-secular political system Respects for individual liberties Internal and external peace and security Resolve land ownership and water rights issues

Improving Role of the State Economic Development: Income & wealth distribution to reduce poverty Investment in human capital (e.g., education, heath, family planning) Investment in infrastructure Industrialization and agricultural development

Improving Role of the State Social Development: Gender & ethnic equality before law Freedom to choose & individual responsibility Stability, security, mobility, opportunity Sense of self-worth & optimism about future