## What the Arab Spring Has Taught Us

_IMF Blog, October 20, 2011_

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**Canonical URL:** [What the Arab Spring Has Taught Us](https://www.imf.org/en/blogs/articles/2011/10/20/what-the-arab-spring-has-taught-us)

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## Bibliographic details
- Authors: Masood Ahmed
- Published: October 20, 2011

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### Context and overview
- Author: Masood Ahmed
- Date: October 20, 2011
- Observes an historic shift in the Middle East and North Africa (MENA) following popular uprisings that began 10 months ago, driven by desire for greater freedom and a fairer distribution of economic opportunities.
- Acknowledges that IMF efforts focused on building macroeconomic foundations, liberalizing economic activity, and market-based reforms improved many economic indicators, but did not sufficiently address how the benefits of growth were being shared.

### Clear lessons from the Arab Spring
- Even rapid economic growth cannot be maintained unless it is:
  - inclusive,
  - creates jobs for the growing labor force,
  - accompanied by social policies for the most vulnerable.
- For economic reforms to be sustainable, their gains must be broadly shared, not just captured by a privileged few.
- Widespread corruption:
  - deprives citizens of economic benefits,
  - undermines inclusive growth.
- Absence of transparent and fair rules of the game will inevitably undermine inclusive growth.
- A socially inclusive agenda requires economic and financial stability.

### Economic pressures and fiscal policy guidance
- The region has faced considerable uncertainty and economic pressures from domestic and external sources; the recent worsening of the global economy will add to these pressures.
- Countries have stepped up spending to respond to needs and aspirations; higher spending is necessary in the short term but:
  - it needs to be designed so it can be unwound later to sustainable levels to limit long-term fiscal consequences.
- Given difficult economic circumstances, some countries will need official financial support.

### National reform strategies and international support
- Countries should formulate national reform strategies to build confidence and provide a basis for sustained inclusive growth.
- Commonly accepted goals to be encompassed in national strategies:
  - higher, job-creating economic growth;
  - greater social and economic inclusion;
  - strong institutions ensuring accountability and good governance;
  - social protection for the most vulnerable.
- Leadership should come from countries themselves; the international community can contribute by providing an ambitious and multifaceted program of support, including:
  - financial assistance,
  - market access,
  - labor mobility,
  - credit guarantees.
- The Deauville Partnership is noted as a potential valuable platform to drive the process forward.

### IMF commitments and operational adjustments
- IMF stands ready to provide financial support in the amount of about $35 billion to the region’s oil-importing countries, if requested.
- This $35 billion offer is in addition to the $38 billion pledged by the international and regional financial institutions.
- The IMF is:
  - expanding technical assistance,
  - looking at how to adapt its work to reflect the lessons of the Arab Spring,
  - taking greater consideration of how policy recommendations affect different parts of the population.

### Outlook and region’s strengths
- While acknowledging many uncertainties and challenging months ahead, the article emphasizes potential long-term benefits of the Arab Spring.
- Regional strengths listed:
  - a dynamic and young labor force,
  - vast natural resources,
  - ancient civilizations and rich culture that attract scholars and tourists,
  - a large regional market,
  - an advantageous geographic position,
  - access to some key markets.
- The current period of transition is expected to ultimately result in improved living standards and a more prosperous future for the peoples of the region.

*IMF blog post: "What the Arab Spring Has Taught Us" by Masood Ahmed, October 20, 2011.*

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## References

- [Economic Window](http://blog-montada.imf.org/)
- [ticking time bomb](http://www.imf.org/external/np/speeches/2010/110110.htm)
- [high unemployment](http://blogs.imf.org/2010/10/31/more-than-18-million-jobs-needed/)
- [rapid economic growth cannot be maintained unless it is inclusive](http://www.imf.org/external/index.htm)
- [Deauville Partnership](http://www.imf.org/external/pubs/ft/survey/so/2011/CAR091011A.htm)

_Source: https://www.imf.org/en/blogs/articles/2011/10/20/what-the-arab-spring-has-taught-us_