Introduction

The story of development in the Middle East and North Africa (MENA) region is a tale of the interplay between two forces: external factors and a rivalry of interests. Over time, large public sectors, rather than markets have evolved as the primary mechanism to manage these forces — by enhancing certainty, real or perceived and mediating interests — with both intended and unintended consequences for growth and development. The aim of this book is to assess development policy choices in the post WWII era from the vantage point of these two forces, their interaction and the institutional framework which is given at any point in time. As such, the book surveys primary challenges facing policy-makers in the region today; namely low total factor productivity growth, management of volatile oil and natural gas revenues and rising water scarcity, post-conflict development, raising private investment and diversifying exports, lowering high unemployment, improving education quality and addressing poverty incidence…