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Misfortune to Marginalization: The Geopolitical Impact of Structural Economic Failings in Egypt, Tunisia, and Lebanon

Misfortune to Marginalization: The Geopolitical Impact of Structural Economic Failings in Egypt, Tunisia, and Lebanon
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The political economy of debt and adjustment in Tunisia, Egypt, and Lebanon

Several countries in the MENA region have been facing financial crises of unprecedented gravity. The MENA Commission on Stabilization and Growth Report describes how debt ratios started rising after the Arab Uprisings as fiscal policies became more expansionary, and how this was further precipitated by the COVID-19 pandemic, the Ukraine war, and the rise in global interest rates. The financial crises are especially acute in Lebanon, Egypt, and Tunisia, where external shocks have exacerbated deeply embedded structural weaknesses.

Embarking on a Path of Renewal: A Report by the Commission on Stabilization and Growth in the Middle East and North Africa

Post-Covid-19, the challenge of adjusting to high fuel and food prices, and to rising global interest rates, is particularly hard for the oil importing countries of the MENA region. Public debts are rising fast towards unsustainable levels. Already, currency devaluation and inflation are combining to lower economic growth, increase poverty, and put more stress on a battered middle-class, leading to a rise of social unrest. 

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