o Egypts support for the Allies in the First Gulf War brought a huge debt

O egypts support for the allies in the first gulf war

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o Egypt’s support for the Allies in the First Gulf War brought a huge debt forgiveness package and an IMF and World Bank policy- based lending program designed to promote economic liberalization. The first phase of the reform program consisted of a rapid period of stabilization o Overall, many Egyptians have mixed feelings of their living standards - Tunisia was the exception o Tunisia’s ability to generate such a pattern of growth with sustained export-led and labor-intensive growth was due to the fact that it has a strong developmental state that was able to pick and support winning industries and preserve its social contract. - Jordan :
o 1989 currency and banking crisis o after the crisis, Jordan immediately agreed to SAP’s (Structural Adjustment Programs) – these programs lasted for 15 years until 2005 o came with severe austerity which came with the government undergoing serious poverty and unemployment problems o IMF (cutbacks in government expenditure on social welfare, reduced employment, a freeze on civil service wages and salaries) and World Bank (privatization and trade liberalization contributed to unemployment, removal of subsidies on farm production costs led to increased rural impoverishment) is to blame - Morocco : o A weakness of social policy in Morocco is the inadequacy of its social safety net to protect the most vulnerable, to the degree that indicators like child malnutrition are much higher than in comparable countries. o The country’s lack of an organized social safety net became particularly evident during the stabilization policies of the mid– late 1980s, when the poor were hit by subsidy reductions and increased living costs. o In the midst of the economic crisis of the early 1980s, austerity measures and structural reform measures were introduced in Morocco under the auspices of the IMF and World Bank. o Morocco launched its IMF and World Bank–guided reform program in 1983, when King Hasan II turned to the IFIs. This led to a ten-year stabilization program promoted by the IMF, accompanied by a series of structural adjustment and sectoral loans with the World Bank aimed at addressing Morocco’s macroeconomic and structural imbalances. 09/26/2017 – Lecture 4 Prior to the Arab Spring - Kurdish Referendum Happening in Iraq right now o Opposed by everyone except the Kurds o Discussed article in class – “Iran Blocks Kurdish Flights” Trends that preceded the Arab Spring: o Economic Crisis:
Failure of ISI Many of these countries adopted this Failure of socialist economic model Which, while making things seem to be fair by reducing income inequality and giving the poor more dignity, it did not work out very well economically o Pratt refers to as the “moral economy” Led to a lot of mismanagement of economic systems o Political Crisis: 1967 War led to a lot of soul searching in the Arab world because of defeat rise of islamist groups in response to the war All of this led to the period of the 70s and 80s countries going into the IMF programs riots

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