## The Arab Spring, One Year On

_IMF Blog, December 6, 2011_

## Source details

**Canonical URL:** [The Arab Spring, One Year On](https://www.imf.org/en/blogs/articles/2011/12/06/the-arab-spring-one-year-on)

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## Bibliographic details
- Authors: Christine Lagarde
- Published: December 6, 2011

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### Overview
- Almost one year after the uprisings, the state of play remains uncertain, with setbacks and intensity of disruptions larger than expected.
- Deplorable loss of life cited in Libya, Syria, and Yemen.
- Transition described as a delicate period between “rejecting the past” and “defining the future,” requiring hard choices and a shift from post-revolutionary euphoria to practical concerns.
- Global economic turmoil compounds the risks, but the final destination is described as clear: the Arab Spring is still poised to unleash the potential of the Arab people.
- Tunisia highlighted as an example of a smooth and inclusive process of transition that can light the path forward for other countries in the region.

### Economic challenges — findings
- Top-line economic numbers (for example, growth) often looked good, yet too many people were being left out.
- The IMF acknowledges that it warned about the ticking time bomb of high youth unemployment but “did not fully anticipate the consequences of unequal access to opportunities.”
- It is now much clearer that more equal societies are associated with greater economic stability and more sustained growth.
- Over-arching economic goals remain: higher growth, growth that creates more jobs, and growth that is shared equitably among all strands of society.
- Macroeconomic and financial stability are emphasized as “absolutely essential, core building blocks” of any new society; without them, responses to people’s aspirations cannot be realized.

### Working in harmony — recent policy responses and risks
- Governments have increased subsidies, wages, and other spending to lessen hardship and preserve social cohesion in the short term.
- Consequences of these measures include:
  - Wider fiscal deficits, raising concerns about sustainability.
  - Higher interest rates, making it harder for the private sector to obtain credit to set up or expand businesses and start hiring.
- Policy implication: governments across the region need to move towards better and sustainable fiscal policies.
- Recommendation: implement more targeted social protection systems to free up funds for infrastructure, education, and health while laying foundations for inclusive growth.
- Assertion: macroeconomic stability and inclusive growth “can—and indeed must—go hand in hand.”
- The private sector, including small and medium-sized enterprises, must take a leading role to boost investment, productivity, competitiveness, and job creation.

### Enabling environment — institutional and structural reforms
- Governments must provide an enabling environment by:
  - Putting in place modern and transparent institutions to encourage accountability and good governance.
  - Ensuring fair and transparent rules of the game.
  - Breaking down vested interests and cozy networks of privilege that prevent the region from reaching its true economic potential.
- Job creation challenge quantified: “There is simply no other way to create the 50-70 million jobs needed for the people joining the labor force and to reduce unemployment over the next decade.”
- International community role: must listen to hopeful voices and provide support including financing, technical assistance, and market access.

### IMF role — support offered and examples of technical assistance
- The IMF states it stands ready to help, working closely with members in the region and willing to “walk the path with them.”
- Forms of support offered:
  - Best policy advice possible.
  - Financial help if requested.
  - Technical assistance to help build better institutions.
- Examples of IMF technical assistance cited:
  - Helping Egypt make its tax system more equitable.
  - Helping Libya develop a modern system of government payments.
  - Helping Tunisia improve its financial sector.
  - Helping Jordan with fuel subsidy reform.

*Source: The Arab Spring, One Year On by Christine Lagarde, December 6, 2011.*

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## References

- [عربي](http://blog-montada.imf.org/?p=587)
- [speech](http://www.imf.org/external/np/speeches/2011/120611.htm)
- [speaking for the IMF](http://blogs.imf.org/2011/10/19/what-the-arab-spring-has-taught-us/)
- [come without cost](http://blogs.imf.org/2011/10/26/mideast-braces-itself-for-a-multi-year-transition/)
- [technical assistance](http://blogs.imf.org/2011/10/13/a-spotlight-on-the-imfs-technical-assistance/)

_Source: https://www.imf.org/en/blogs/articles/2011/12/06/the-arab-spring-one-year-on_