The Economics of the Middle East A Comparative Approach

Countries in the Middle East have very different economies, even if they are often grouped together. In The Economics of the Middle East, James Rauch focuses on the drivers of their distinctiveness, including the effects of their natural endowments, geographic locations, and interactions with the global economy.

This book evaluates the socioeconomic trajectories of three groups of Middle Eastern States: Sub-Saharan African, fuel-endowed, and "Mediterranean." It compares these groups both to each other and to developing countries in other regions with similar characteristics. Rauch draws on basic approaches to economic development to enhance understanding of important issues, such how policies on gender, education, health, and the environment affect development. His comparative perspective sheds light on how and why the Arab countries, Iran, and Turkey have done better or worse than similar countries in other regions. His analysis throughout is supported by data that are well organized and clearly presented.

Rauch develops new insights on topics as diverse as unemployment, urbanization, corruption, and the importance of intraregional flows of investment and migrants. The result is a fascinating and balanced overview of the socioeconomic performance of the Arab countries, Iran, and Turkey that presents a new lens on the economics of the Middle East.

James Rauch is Professor of Economics at the University of California, San Diego. He is a Guggenheim Fellow and a Research Associate with the National Bureau of Economic Research (NBER). He has done extensive research in the Middle East and was a Visiting Scholar at the Institute of Financial Economics in the American University of Beirut.

X. Conclusion: Some Modest Proposals for Policy
I. Introduction
The Scope of This Book
The Human Development Index
Three Arab Worlds
Human Development in the Three Arab Worlds on the Eve of the "Arab Spring"
Human Development in the Three Arab Worlds After the "Arab Spring"
A Note on Country Groups
I. Historical Perspective
Introduction
Extensive versus Intensive Growth
The Division of the World
The Great Divergence
II. International Trade, Natural Resource Rents, and Foreign Direct Investment
Introduction
International Trade and Industrialization of the Arab Mediterranean and Turkey
Manufactured Exports to High-Income Consumers
Service Exports to High-Income Consumers: Tourism
Natural Resource Rents and OPEC
Foreign Direct Investment
III. Human Resources
Introduction
Education
Health
The Demographic Transition
IV. Gender Gaps
Introduction
Education
Labor Force Participation
Health
V. Income Inequality, Poverty, Migration, and Unemployment
Introduction
Income Inequality as Measured by the Gini Index
Poverty Headcounts
Migration and Remittances
Public and Private Sector Expenditure to Reduce Poverty
Unemployment and Self-Employment
VI. Environmental Challenges
Introduction
Water Scarcity and Lack of Access to Basic Drinking Water and Sanitation Services
Air Pollution
Municipal Waste and Greenhouse Gas Emissions
The Consequences of Global Warming for the Arab Countries, Iran, and Turkey
VII. Government Spending: Urban Infrastructure, Energy Subsidies, and the Military
Introduction
Urbanization and Strain on Public Finance
Urban Primacy
Energy Subsidies
Military Spending
Slums
Infrastructure Quality
VIII. Political Economy
Introduction
Corruption, GDP per capita, and Bureaucratic Inefficiency
Bureaucratic Performance With Regard to Starting a Business and Enforcing Contracts
Politically Connected Firms in Egypt and Tunisia
IX. Conclusion: Some Modest Proposals for Policy