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1. Value for money: Why and how Europeans should support the failing economies of Egypt and Tunisia

Author:
Anthony Dworkin, Camille Lons, and Tarek Megerisi
Publication Date:
09-2024
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
The economies of Egypt and Tunisia are characterised by weak private sectors, insiderism, and the dominance of key constituencies that maintain regime leaders in power. The severe weaknesses of these economies have provoked recurrent crises and cause hardship for their populations, which threatens social and political instability as well as greater migration towards Europe. The EU wants to ensure that the financial assistance it provides contributes to promoting fundamental reform. But Egyptian and Tunisian leaders have resisted policy change for political and ideological reasons, relying in part on support from Gulf countries. Europeans need to ground their economic assistance in a better understanding of political dynamics and regional trends to ensure that they gain the greatest possible influence for the funding they provide. Europeans should adopt more achievable, more targeted policy requests for economic and financial reforms in each country, and work as closely as possible with Gulf partners, which are already making greater demands of Cairo and Tunis in return for the support they give.
Topic:
Foreign Policy, Migration, Foreign Aid, and Economy
Political Geography:
Europe, Middle East, North Africa, Egypt, and Tunisia

2. Disaster Dynamics: Assessing Middle East Responses to the Turkey-Syria Earthquake and Other Destructive Events

Author:
Sarah Cahn and Erik Yavorsky
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The massive earthquake that killed more than 50,000 people in Turkey and Syria as of February 28—one of the worst Middle East natural disasters in recent memory—has touched the hearts of leaders and peoples across the world, triggering a flow of urgently needed humanitarian support. Regional states, too, have provided rescue and relief assistance. From the outset, however, politics has played an important role in shaping the scope and direction of such aid. In fact, the politics of humanitarian aid follows a pattern discernible based on previous regional responses to crises, including the 2020 Beirut port explosion and—before it—the 2014 Gaza war.
Topic:
Natural Disasters, Foreign Aid, and Earthquake
Political Geography:
Turkey, Middle East, and Syria

3. Egypt’s Economic Freefall Provides an Opening for U.S. Assistance—and Leverage

Author:
Ben Fishman
Publication Date:
01-2023
Content Type:
Commentary and Analysis
Institution:
The Washington Institute for Near East Policy
Abstract:
As Secretary of State Antony Blinken prepares to visit Cairo on January 29-30, Egypt’s economy has been busy plummeting to new lows. Part of the blame can be laid on the twin shocks of the COVID-19 pandemic and the Ukraine war, which disproportionately affected the country due to its heavy reliance on threatened resources such as wheat and tourism revenue from Russia and Ukraine. Yet the bulk of its struggles can be attributed to Cairo’s broad economic mismanagement under President Abdul Fattah al-Sisi, which has included everything from currency manipulation to misplaced spending priorities, wasteful megaprojects, and undue state and military control over the economy. Since March 2022, Egypt’s currency has lost half its value and now stands at 30 pounds to the U.S. dollar—a drop spurred by the flight of dollars and the IMF’s requirement to adopt a flexible exchange rate. As a result, official inflation reached nearly 22% in December, fifteen points higher than it was at the end of 2021. Shortages are now frequent, and prices for basic goods have soared by nearly 40%. The rising cost of essential bread in particular will be difficult to maintain much longer. Meanwhile, the debt-to-GDP ratio has risen to 95%, with a record $100 billion in loan payments due over the next four years. Egypt’s 2022-23 budget allocates over 50% to debt servicing and loan repayments, and this sky-high figure will only increase further over time because the loans are dollar-denominated.
Topic:
Foreign Policy, Human Rights, Foreign Aid, Reform, and Economy
Political Geography:
Middle East, North Africa, Egypt, and United States of America

4. Critical Crossroads: Tunisia’s Choice between a Comprehensive EU Partnership and Economic Collapse

Author:
Ghazi Ben Ahmed
Publication Date:
12-2023
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
ince the International Monetary Fund (IMF) and the Tunisian authorities reached in October 2022 a staff-level agreement to support Tunisia’s economic policies, Tunisian President Kais Saied has been standing at the Rubicon. Lacking a vision to revive the Tunisian economy, President Saied has opted for a strategy of diversion and scapegoating. By blowing on the embers of xenophobia among his supporters and more recently by stoking the flames in the Middle East, he continues to deflect attention to conceal his economic short-sightedness and claims autonomy from foreign – mainly European – aid, in the name of sovereignty. This posture has now trapped him in his own rhetoric at a time when the Tunisian economy struggles without signs of recovery or resilience in a challenging regional and global landscape. Time is ticking, the situation remains grim, and the country may miss another opportunity to resume economic growth.
Topic:
Foreign Policy, Foreign Aid, European Union, Partnerships, and IMF
Political Geography:
Europe, Middle East, Italy, and Tunisia

5. Deficiency and Elusion: Relations between Israel and Ukraine

Author:
Michał Wojnarowicz
Publication Date:
06-2022
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
The outbreak of the war in Ukraine in 2014 broadened the political dimension of Israeli-Ukrainian relations. However, Israel’s cautious attitude towards Russia remains a burden for mutual relations with Ukraine. Since the renewed Russian aggression in February, Ukraine has diplomatically engaged Israel, but the limited nature of the latter’s support has led to criticism from Ukraine. The scale of the current assistance and pledged aid for the reconstruction of Ukraine, as well as Israel’s policy towards further tightening of sanctions against Russia, will be key to future relations.
Topic:
Diplomacy, Politics, Bilateral Relations, and Foreign Aid
Political Geography:
Europe, Ukraine, Middle East, and Israel

6. Lebanon after the Elections

Author:
Sara Nowacka
Publication Date:
06-2022
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
Although the parliamentary elections on 15 May did not bring a breakthrough in the Lebanese political scene, the weakening of the dominant parties may facilitate reforms necessary to obtain foreign financial aid. The positive results for candidates related to the 2019 anti-government protests will mean a greater emphasis on the fight against corruption among the political elite. To avoid further instability in Lebanon, the EU could step up its support for that state’s institutions, including the Lebanese army, popular amongst the public.
Topic:
Corruption, Politics, Foreign Aid, Elections, Protests, and Parliament
Political Geography:
Middle East and Lebanon

7. Reexamining U.S. Aid to the Middle East: Ideas for Advancing Both Governance and Democracy

Author:
Ben Fishman
Publication Date:
12-2022
Content Type:
Special Report
Institution:
The Washington Institute for Near East Policy
Abstract:
Massive U.S. investment has failed to improve outcomes since the Arab Spring uprisings. A more targeted, sensitive approach could yield better results and promote regional stability. Against the backdrop of simmering protests, endemic economic challenges, the continuing struggle to contain the Covid-19 pandemic, and fallout from the U.S. withdrawal from Afghanistan, The Washington Institute has launched a series of policy papers to help guide the Biden administration’s approach on democracy, reform, human rights, and political change across the Middle East and North Africa. The series addresses a range of questions: How do changes in the region over the last decade affect the new administration’s approach to these issues? How should the administration best prepare for the “new normal” of protests in the region? What are the policy tools at America’s disposal, and how might they be improved upon? How can Washington turn much-needed attention to new areas of focus, such as corruption and public-sector reform? What does public opinion research tell us about what the region’s publics want in their countries—and from the United States? And where might enhanced U.S.-EU coordination play a constructive role? The proposed answers will assist policymakers in advancing opportunities for reform, preserving U.S. interests, and navigating Middle East realities in the context of America’s global priorities. In the fifth essay in the series, Ben Fishman probes the conundrum of U.S. democracy and governance assistance, wherein billions of dollars have failed to improve outcomes on a range of measures since the Arab Spring uprisings. The former regional National Security Council director traces U.S. support for democratic movements from its Cold War origins to the present day, concluding that a more effective approach must better align policy and spending priorities, account for the challenges facing individual countries, and focus on supporting local governing bodies, independent media, and anti-corruption efforts. Otherwise, the region could well become less free and more prone to fiercer future uprisings.
Topic:
Foreign Policy, Foreign Aid, Governance, Reform, and Democracy
Political Geography:
Middle East, North Africa, Egypt, Jordan, and United States of America

8. Gulf States and Peacebuilding: Key Characteristics, Dynamics, and Opportunities

Author:
Sultan Barakat
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
Center on International Cooperation (CIC)
Abstract:
While the Gulf States have long been generous providers of foreign aid, it is only in recent years that they have publicly committed to playing a major role as peacebuilders. This paper analyzes the current role and prospects of the Gulf States as actors in the field of peacebuilding.
Topic:
Conflict Prevention, Foreign Aid, Gulf Cooperation Council, and Peacebuilding
Political Geography:
Middle East and Gulf Nations

9. Financial Assistance from GCC Countries and the Democratization of Arab States

Author:
Masaki Matsuo
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
One of the effects that Gulf Arab countries extend to the entire Middle East is that of stabilization through financial assistance. Huge oil export revenues are transformed into financial aid and funneled into neighboring Arab countries. The Middle East and North Africa region (MENA) is known throughout the world as a region where no progress has been made in democratization. Thus, if financial assistance from the Gulf Arab countries is stabilizing the systems of neighboring countries, it suggests that the Gulf Arab countries are hindering democratization in MENA. Such concerns can be traced back to Beblawi (1987) but have never been demonstrated. In this paper, official development assistance (ODA) statistics and democratization indicators will be used to conduct a preliminary analysis of the effects of financial assistance provided to MENA by the Gulf Arab countries in curbing democratization.
Topic:
Democratization, Foreign Aid, Finance, and Gulf Cooperation Council
Political Geography:
Middle East, Arab Countries, and Gulf Nations

10. Investing in Jordan Through Support for Social Enterprises

Author:
Lilian Tauber
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
By committing to long-term investments in Jordan’s communities through support for social enterprises, the United States can contribute to the country’s stability and economic growth. In Jordan, one of the United States’ most reliable allies in the Middle East, economic volatility is a major threat to stability and has led to recurrent protests since 2011. High youth unemployment rates and a large refugee population contribute to its economic woes and political tensions, all of which are now exacerbated in the Covid-19 pandemic. The United States can support Jordan’s recovery from the pandemic through long-term investment in social entrepreneurship. The country’s entrepreneurship ecosystem is in a developing stage, with most resources focused on short-term funding and training, so a shift in U.S. aid to longer-term support can make a significant difference. Increasing funds and providing multi-year mentorship and operational support to select social enterprises (SEs) will allow them to become powerful forces for positive change and civic engagement in their communities.
Topic:
Development, Foreign Aid, Economy, and Investment
Political Geography:
Middle East, Jordan, and United States of America