Economic Management under Fire

Economic Management Under Fire: How did the South Med Policy-Makers Respond to the Demands for Change? The report is published on: 23 November 2017 with funding from the European Union. FEMISE is launching its 2017 Euro-Mediterranean report on the transition of the South Mediterranean economies. The report provides a critical analysis of the responses of selected countries of the region to the economic, social and political challenges in the wake of the uprising and recommendations on how to move forward to ensure a successful transition. “Overall, South-Med countries are at a crossroad. They hold an enormous potential that has been held back by modest economic performance and extractive political institutions. The uprising, which began in December 2011 provided these countries an opportunity to follow a new development path”, state the authors of the report. The political transition has unavoidably taken a toll on these economies and the governments found themselves facing a number of challenges and difficult decisions to make. For example, on the economic front and in an attempt to succumb popular demands and to calm rising social unrests, governments responded by adopting expansionary policies rather than austerity measures. While this policy choice caused pressure on the already existent budget deficits and increased public debts, it is believed that it will help restore the economic downturn in the long-term. “Seven years on, the development model does not seem to have changed much. To embark on a new course, the new strategy should aim at achieving the dual overarching objectives of consolidating the post-transition democratic pol¬ity, on the one hand, while mak¬ing the transition towards a dy¬namic and equitable economy, on the other”, recommended the authors of the report while providing targeted policy recommendations on how to achieve this objective. In 5 chapters and through a critical assessment of the performances of five South-Med countries in transition (Algeria, Egypt, Jordan, Morocco and Tunisia), this report attempts to answer the following questions: ../ • What were the immediate economic consequences of the political transition in South-Med countries? • How well did policymakers respond to the economic and social adversities associated with the political transition? • Based on the analysis and the likely political evolution in these countries, what can be done to bring about healthier macroeconomic balances, job creating growth and greater social inclusion? The report is written by a group of international experts and senior macroeconomists, political economists and social economists under the management of the Economic Research Forum (ERF, Cairo). Dr. Ahmed Galal, the editor of the report is the Chairman of the Board of the MENA Health Policy Forum and former ERF Managing Director and former FEMISE President; Dr. Ishac Diwan is professor at Harvard Kennedy School of Government and holds a chair at Paris Sciences et Lettres; Dr. Ibrahim Elbadawi is the President of FEMISE and Managing Director of ERF; Dr. Hoda Selim is an Economist at the IMF; Dr. Zafiris Tzannatos is the Former professor in and chair of the Economics Department at the American University of Beirut; and Ms Jala Youssef is the economist of ERF and FEMISE. The Euromed Report will be published on the FEMISE (www.femise.org) and the ERF (www.erf.org.eg) websites on the 23 November 2017 http://bit.ly/2kygZdO The Euromed Report is an annual publication of FEMISE that is addressing themes of importance and interest to the EU-Med region. The report brings a value-added to the knowledge about the theme it is covering, through an in-depth analysis of specialised economists in a multidisciplinary approach from the North and the South of the Mediterranean. This brings a common view from the two shores of the Mediterranean and provides policy recommendations that can make a contribution to the South Med countries during their transition. This report received financial support from the European Union through the FEMISE project on “Support to Economic Research, studies and dialogues of the Euro-Mediterranean Partnership”. Any views expressed in this report are the sole responsibility of the authors. Please contact FEMISE for more information: contact@femise.org Funded by the European Union