In contrast to other parts of the world, however, most MENA developing countries will able to get off lightly if the crisis does not last for too long. In Turkey and Israel, the region's more industrialized countries, different initial conditions apply and the situation is not comparable to the Arab MENA countries.
The GIGA German Institute of Global and Area Studies is proud to present its first international edition of the successful GIGA Focus series. Issue 1/2009 of the International Edition has now been published and is available free of charge at http://www.giga-hamburg.de/giga-focus/internationalGetting Off Lightly? The Impact of the International Financial Crisis on the Middle East and North Africa
(Juliane Brach and Markus Loewe)
- As is the case for other world regions, the crisis is impacting the MENA region mainly through two indirect effects: (i) a decline in the export of goods and services and (ii) a reduction in remittances sent back home by migrant workers abroad. The more direct effects on the region's financial markets matter to a much lesser extent., However, the Gulf countries in particular are also suffering from the wealth effect: substantial losses of capital invested abroad.
- The non-oil-exporting countries of the region are not very vulnerable to the effects of the financial crisis, partly because they are only weakly integrated into international trade and capital markets.
- The energy exporters are being hit harder, especially because the oil price has fallen steeply. However, as long as the price does not continue to fall, most energy exporters will be able to survive the crisis for some time because they have been able to accumulate considerable financial reserves during the boom years.
- Dubai, Iraq, Iran and Yemen are the countries within the MENA region that have been most affected by the financial crisis. They do not have sufficient financial reserves to finance the gap between public spending and income from the sales of oil and gas.
- Most countries in the region will probably be able to weather the financial crisis relatively well because of their comparatively limited openness towards global markets.
- Nevertheless, the governments should use the financial crisis as an opportunity to implement market-oriented reforms and to find solutions to their structural problems. These countries urgently need to improve their productivity and competitiveness in order to reduce their dependency on a limited number of export products and to create employment for a rapidly growing labor force.
This GIGA Focus was previously published in German as "Nur ein blaues Auge? Auswirkungen der internationalen Finanzkrise auf Nahost und Nordafrika," GIGA Focus Nahost, No. 4/2009, http://www.giga-hamburg.de/giga-focus/nahost
The GIGA German Institute of Global and Area Studies - Leibniz-Institut für Globale und Regionale Studien in Hamburg publishes monthly German-language Focus series on Africa, Asia, Latin America, the Middle East and global issues.Weitere Informationen:
Peter Peetz | idw
Self-organising system enables motile cells to form complex search pattern
07.05.2019 | Westfälische Wilhelms-Universität Münster
Mouse studies show minimally invasive route can accurately administer drugs to brain
02.05.2019 | Johns Hopkins Medicine
Physicists at the University of Basel are able to show for the first time how a single electron looks in an artificial atom. A newly developed method enables them to show the probability of an electron being present in a space. This allows improved control of electron spins, which could serve as the smallest information unit in a future quantum computer. The experiments were published in Physical Review Letters and the related theory in Physical Review B.
The spin of an electron is a promising candidate for use as the smallest information unit (qubit) of a quantum computer. Controlling and switching this spin or...
Engineers at the University of Tokyo continually pioneer new ways to improve battery technology. Professor Atsuo Yamada and his team recently developed a...
With a quantum coprocessor in the cloud, physicists from Innsbruck, Austria, open the door to the simulation of previously unsolvable problems in chemistry, materials research or high-energy physics. The research groups led by Rainer Blatt and Peter Zoller report in the journal Nature how they simulated particle physics phenomena on 20 quantum bits and how the quantum simulator self-verified the result for the first time.
Many scientists are currently working on investigating how quantum advantage can be exploited on hardware already available today. Three years ago, physicists...
'Quantum technologies' utilise the unique phenomena of quantum superposition and entanglement to encode and process information, with potentially profound benefits to a wide range of information technologies from communications to sensing and computing.
However a major challenge in developing these technologies is that the quantum phenomena are very fragile, and only a handful of physical systems have been...
Working group led by physicist Professor Ulrich Nowak at the University of Konstanz, in collaboration with a team of physicists from Johannes Gutenberg University Mainz, demonstrates how skyrmions can be used for the computer concepts of the future
When it comes to performing a calculation destined to arrive at an exact result, humans are hopelessly inferior to the computer. In other areas, humans are...
29.04.2019 | Event News
17.04.2019 | Event News
15.04.2019 | Event News
24.05.2019 | Life Sciences
23.05.2019 | Materials Sciences
23.05.2019 | Materials Sciences