Countries moving toward democracy seem as likely to experience poor economic performance as countries moving toward renewed dictatorship. But countries that embrace political inclusion can soon find themselves back on the path toward healthy economic growth, while closing societies position their economies for a downward spiral.
CAMBRIDGE – It has been five years since Egypt and Tunisia underwent regime change, and both countries are still suffering from low economic growth, large fiscal deficits, high unemployment, and rising public debts. Having failed to institute reforms on their own, both have turned to the International Monetary Fund, which entered into an arrangement with Tunisia in 2013 and has just approved a $12 billion loan program for Egypt – the country’s first since 1991, and the largest ever for a Middle Eastern country.
CAMBRIDGE – It has been five years since Egypt and Tunisia underwent regime change, and both countries are still suffering from low economic growth, large fiscal deficits, high unemployment, and rising public debts. Having failed to institute reforms on their own, both have turned to the International Monetary Fund, which entered into an arrangement with Tunisia in 2013 and has just approved a $12 billion loan program for Egypt – the country’s first since 1991, and the largest ever for a Middle Eastern country.