Building on findings from a previous phase of research on the implications of oil wealth on growth and macroeconomic policies under the theme of natural resources and economic diversification, the Economic Research Forum (ERF) has initiated new work on “Institutions and Macroeconomic Management in Resource-rich Arab Economies.”
This new work was initiated along three interlinked dimensions.
At the outset, a background paper on “the Political Economy of Macroeconomic Policy in Resource-Rich Arab Economies” was commissioned in order to understand how the nature and evolution of political institutions shape macroeconomic institutions as well as monetary and fiscal policies in oil-rich Arab economies.
A first project was also initiated around “Institutional Requirements for Optimal Monetary Policy in the Resource-Dependent Arab Economies.” It will assess the framework of monetary policy management in resource-dependent economies including central bank independence, the interactions between monetary and fiscal policies, the type of monetary policy institution resulting in the best macroeconomic performance, and to what extent monetary policy has been countercyclical.
The second project on “Fiscal Institutions and Macroeconomic Management in Resource- Rich Arab Economies” seeks to examine the role that budget institutions, rules and procedures play in the macroeconomic management, as well as in short run stabilization and economic diversification of resource-endowed Arab countries.
The purpose of this team meeting is two-fold. The first is to present and discuss the background paper. The second objective is kick-off both projects on monetary and fiscal institutions and macroeconomic management, as well as to discuss the broad framework, methodology, data requirements and availability, and finally agree on a timeline for the project.
Speakers included Ibrahim Elbadawi (Dubai Economic Council and ERF), Ghassan Dibeh (Lebanese American University), Bassem Kamar (International University of Monaco and ERF), Damyana Bakardzhieva (International University of Monaco), Hoda Selim (ERF), Jeffrey Nugent (University of South Carolina), Kamiar Mohaddes (University of Cambridge and ERF), Kabbashi Suliman (University of Khartoum), Mahmoud Al-Iriani (Dubai Economic Council), Abbas El-Mejren (Kuwait University), Alya Al Foori, Adham Al Said (Sultan Qaboos University) and Raimundo Soto (Catholic University of Chile).