Any financial aid to Lebanon should be tied to a material commitment by its elites to undertake long-needed reforms.
Adeel Malik is Globe Fellow in the Economies of Muslim Societies and Associate Professor of Development Economics at the University of Oxford. He is t... he co-editor along with Ishac Diwan and Izak Atiyas of Crony Capitalism in the Middle East: Business and Politics Since Liberalization published by Oxford University Press in 2019.
Diversification of Middle Eastern economies is more a political than an economic challenge.
And what is the solution?
Saudi Arabia’s diversification effort will prove challenging with or without an Aramco IPO.
Despite favourable geography, Middle Eastern economies have not diversified or developed their private sectors.
History has shown that elites share their power when faced with the prospect of losing it, as Egypt now shows.
The region’s dependence on natural resources has prevented the emergence of a strong private sector.