The financial interdependence that sovereign wealth funds (SWFs) created between the West and the Arab world could help stabilize multilateral relations and promote economic development and political stability in the Middle East.
Free trade agreements between the West (U.S. and EU) and Middle East and North African (MENA) countries, while containing beneficial elements, have strengthened negative perceptions of “western-led globalization” because they benefit unpopular elites and impose serious short term economic adjustment.
Arab governments tempered public anger at rising food prices by increasing wages and subsidies, but their approach is not sustainable without raising taxes. Instead they should revise agricultural policies, expand social safety nets, and curb excessive energy consumption, argues Carnegie Middle East Center economist Ibrahim Saif.
The role of Sovereign Wealth Funds, large state-owned investment vehicles, in the global financial architecture is beginning to top the political agenda in Europe and the United States. Europeans and Americans have voiced their concerns about the economic and political influence that foreign governments could exercise through their SWFs.
There is perhaps no leader in the world more important to current world affairs but less known and understood than Ayatollah Ali Khamenei, Supreme Leader of Iran. In a unique and timely new study Carnegie’s Karim Sadjadpour presents an in-depth political profile of Khamenei based on a careful reading of three decades' worth of his writings and speeches.
Despite Algeria’s recent economic growth and domestic stability, the government’s refusal to address the legacy of its violent civil war threatens its long-term stability. President Abdelaziz Bouteflika’s decision to push forward his “Charter for Peace and National Reconciliation” without public input or dialogue has undermined the prospect for true reconciliation.
France sees the ascent of Anglo-American influence as having advanced at its expense not only in Iraq, but also in North Africa, a zone long considered to be France’s backyard.
Confrontational U.S. policy that tried to create a “New Middle East,” but ignored the realities of the region has instead exacerbated existing conflicts and created new problems. To restore its credibility and promote positive transformation, the United States needs to abandon the illusion that it can reshape the region to suit its interests.
Recent economic growth and stabilization in Egypt has been largely fueled by external factors which may not be sustainable. During the same period, Egypt has failed to address pressing social and economic challenges, according to a new paper from the Carnegie Endowment.
Jordan’s King Abdullah II has stated that economic reform is one of his top priorities, yet it remains hindered by two major obstacles: a lack of public support, and the government’s inability to implement deep reform.
Kuwait has made exemplary strides towards democratic reform over the last two years, but deep tensions between the ruling Al Sabah family and the parliament, as well as fractures within the political opposition, could hinder future progress, according to a new paper from the Carnegie Endowment.
Women’s participation in Islamist movements reflects a growing trend toward women’s activism in the Arab world, though quite different from Western norms.
Kuwait is gripped by a state of political paralysis. A standoff between the ruling family and the elected parliament is aggravated by deep divisions within each side, making any kind of political movement difficult if not impossible.
Previous attempts at economic reform have not alleviated the economic problems of Arab countries, failing to dismantle state-dominated economies with high restrictions on private investments.
After the war of last summer, Lebanon had settled back into a pretense of normality, shattered periodically by massive demonstrations in the streets of the capital, as Hizbollah mustered its supporters in an attempt to force the government to call for early elections. The government refused to give in. Hizbollah is now trying to break the impasse.