By Heba Handoussa
Is there a brand new improvement paradigm? This quantity brings jointly a few experiences at the significant problems with adjustment as they observe to international locations of the center East and North Africa (MENA). The authors draw on fiscal, political and institutional thought for you to appraise and evaluate the improvement versions, determine the determinants of sustained progress, follow the hot improvement recommendations to the case of MENA nations, and recommend possible concepts to lessen the political and social constraints to reform. 4 units of matters are vividly highlighted in the course of the booklet: the difficulty of integration into the worldwide economic climate and the rate with which international exchange may be liberalized; the problem of divestiture and the advantages of following quite a few privatization suggestions; the problem of nation intervention within the context of liberalization and personal quarter orientation; and the difficulty of democratization and the political economic system of reform. members: Fikret Adaman, Nazih Ayubi, Driss Ben Ali, Amar Bhattacharya, Ha-Joon Chang, Byron Gangnes, Giacomo Luciani, Seiji Naya, Jeffrey B. Nugent, John M. web page, Jr., Raed Safadi, Mona acknowledged, Khaled Sakr, Murat Sertel.
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Extra resources for Economic Transition in the Middle East: Global Challenges & Adjustment Strategies
World Bank/OECD (1993) Constant returns to scale in production; perfect competition. Elimination of agricultural subsidies and support as well as elimination of import tariffs on non-agricultural goods. Nguyen, Perroni and Wigle (1993) Constant returns to scale in production; perfect competition. Partial MFA liberalization; cuts in agricultural subsidies and support by 70%; reduction of import tariffs on industrial goods by 50%. DRI (1993) Macroeconometric, partial equilibrium model of the G7 with efficiency gains from trade liberalization exogenously determined.
Stoeckel (1990) Constant returns to scale in production; perfect competition. Tariffs and NTBs reduced by half. Peterson (1992) Global macroeconometric, partial equilibrium model with product differentiation and constant returns to scale in production. Foreign direct investment (FDI) Aside from its explosion in the mid-1980s onwards, the most important trend affecting FDI in the 1990s is the drive to liberalize policies affecting its flows as part of a broad-based strategy to attract foreign investors.
Such an environment creates low tolerance for policy mistakes in the sense that relatively small differences in institutional set-ups and practices may have a large impact on trade and investment flows. Together with globalization, the march of liberalization will increasingly shift the focus of international commercial diplomacy beyond countries' borders and into an ever-increasing number of areas that have traditionally been considered to belong solely in the domestic policy domain. The notion that varying regulatory environments among countries are a source of unfair competition seems to be gaining popularity, and demands on governments to "countervail" these differences through trade restrictions are increasing.