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CIPE in the Middle East and North Africa



Background and Overview

The Middle East and North Africa extends some 7,000 miles from Morocco to Iran. Within this area are 19 countries whose political and economic cultures, while not homogeneous, share a heritage shaped by Islamic, Arab, Persian, Ottoman, and European rule. Political and economic developments vary greatly from country to country but also share common features. The national economic systems in the region are either statist or mixed economies. The political systems run the gamut from full authoritarian regimes to emerging democracies.

Many countries in the region suffer from weak economies, illiteracy, and high unemployment—a situation that particularly affects the burgeoning young population, which feels increasingly marginalized and disillusioned with government. While structural reforms have somewhat lessened the role of the state in the economy, there is a sense of unbridled and unrestricted commerce in the region, which is often referred to as the bazaar or souk economy. Though a number of countries are seeking to enter the global economy by adopting market-opening reforms, they often lack the self-correcting market mechanisms and institutions necessary to create modern economies.

Over the past year, an internal movement towards political, economic, and social reform has begun throughout the region. These reform movements are in various stages of development. Pressure to reform, however, is not only coming from external forces, internal intellectual movements, or opposition parties, but also from the reality of increasing poverty and unemployment, which have become serious problems. In addition, conflicting economic policies are limiting investment opportunities throughout the region. A vision of reform exists, but often society does not have the confidence, expertise, or information about how to pursue it. Reformists see political reform in the form of public participation in policymaking as a catalyst to economic and educational reform.

CIPE’s 2005 strategy builds upon the momentum from internal reform efforts in the region through strategic partnerships with business associations, economic policy institutes, and economic journalists. Pressures to join the WTO, engage in free trade agreements, and other international institutions provide a platform for local business groups to advocate for institutional reform.


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