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How the Arab spring affects the economy in the countries facing extrem changes Egypt , Yemen , Tunisia , Syria Libya - Scholarship Essay Example

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The Arab Spring has permanently changed the political and economic landscape of the Arab world hence, there is a seismic shift in the social and economic contract that governs the relationship between Arabic governments and the citizens. The impacts of the Arab Spring have not…
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How the Arab spring affects the economy in the countries facing extrem changes Egypt , Yemen , Tunisia , Syria Libya
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How the Arab spring affects the economy in the countries facing extrem changes Egypt , Yemen , Tunisia , Syria Libya

Download file to see previous pages... hus in Egypt risks related to external financing have shot up significantly, with dwindling direct foreign investment and negativity of net portfolio flows. The resuscitation interventions initiated by the Egyptian Central Bank to rescue the Egyptian pound from the increasing inflation and capital outflows have resulted in shocking decline in net international reserves. Libya, on the other hand, appears to be the worst hit as the escalation of the conflict grounded all the principal economic activities such as oil sales. It has been estimated that total costs in regard to the fiscal balance have been in excess of $6.5 billion. A sharp decrease in oil production, decline in local consumption as well as decrease in buying power have led to decline in the economy (Long-Term Ratings On Egypt Lowered To B On Weaker Sovereign Policy Flexibility; Outlook Negative, 10 February 2012).
According to the Arab Spring Economic Report (October 24th, 2011), in Syria the economic situation is expected to be worse as protests are still going on in the face of brutal crackdown. It is expected that the GDP of the country will fall nose dive by two percent as a result of foreign direct investments, decline in tourism, dwindling public investment as well as effects of trade embargos. Looking at the economic situation in Yemen, the picture is not rosy as people living below the poverty index are expected to hit the 15 percent mark. This is due to devaluation of the currency and increase in prices of essential commodities. It is also projected that public expenditure will also drop by about $600 million as a result of weak and poor governance. The Tunisian revolution has also hit the economy of the country very hard as the most important sectors of the economy are barely surviving, thus mining; tourism and fishing are not bringing ...Download file to see next pagesRead More
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