Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

The Impact of the International Financial Crisis on the Middle East and North Africa

06.08.2009
The international financial crisis has hit the Middle East and North Africa (MENA), like other developing regions, unexpectedly, during a long phase of above-average growth.

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/international

Getting Off Lightly? The Impact of the International Financial Crisis on the Middle East and North Africa

(Juliane Brach and Markus Loewe)

Analysis:

- 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:
http://www.giga-hamburg.de/giga-focus/international - GIGA Focus International Edition
http://www.giga-hamburg.de/giga-focus/nahost - GIGA Focus Nahost
http://www.giga-hamburg.de/giga-focus - GIGA Focus series on Africa, Asia, Latin America, the Middle East, and global issues
http://www.giga-hamburg.de/publikationen - Other GIGA publications
http://www.giga-hamburg.de - GIGA German Institute of Global and Area Studies

Peter Peetz | idw
Further information:
http://www.giga-hamburg.de

More articles from Studies and Analyses:

nachricht Self-organising system enables motile cells to form complex search pattern
07.05.2019 | Westfälische Wilhelms-Universität Münster

nachricht Mouse studies show minimally invasive route can accurately administer drugs to brain
02.05.2019 | Johns Hopkins Medicine

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: The geometry of an electron determined for the first time

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...

Im Focus: Self-repairing batteries

UTokyo engineers develop a way to create high-capacity long-life batteries

Engineers at the University of Tokyo continually pioneer new ways to improve battery technology. Professor Atsuo Yamada and his team recently developed a...

Im Focus: Quantum Cloud Computing with Self-Check

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...

Im Focus: Accelerating quantum technologies with materials processing at the atomic scale

'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...

Im Focus: A step towards probabilistic computing

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...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

VideoLinks
Industry & Economy
Event News

SEMANTiCS 2019 brings together industry leaders and data scientists in Karlsruhe

29.04.2019 | Event News

Revered mathematicians and computer scientists converge with 200 young researchers in Heidelberg!

17.04.2019 | Event News

First dust conference in the Central Asian part of the earth’s dust belt

15.04.2019 | Event News

 
Latest News

Systems Biology of Antibiotics

24.05.2019 | Life Sciences

Plumbene, graphene's latest cousin, realized on the 'nano water cube'

23.05.2019 | Materials Sciences

New flatland material: Physicists obtain quasi-2D gold

23.05.2019 | Materials Sciences

VideoLinks
Science & Research
Overview of more VideoLinks >>>