Growth Fundamentals and Economic Growth in the MENA Region
AbstractThis paper examines the strategies of Middle Eastern and North African (MENA) countries concerning growth-enhancing institutions and policies. Long-term economic growth depends crucially upon the quality and robustness of a country's institutions. The fundamental institutions are typically perceived as rule of law, impartial courts, representative government, effective bureaucracy, and open markets with minimum necessary regulation. However, building these growth fundamentals takes a long time and a great deal of resources. As a result, for developing countries with weak institutions, a key growth strategy question is whether to focus on building their institutions and to wait for the long-term growth to emerge or to seek short- and medium-term substitutes for the fundamentals, which are not permanent solutions and may violate some principles of good governance, but bring about growth for a while and create opportunities for further development. It is argued that some MENA countries have been investing in the fundamentals with limited returns so far. Some others have found good substitutes and have grown faster. But, most have lacked conscious and effective growth strategies. This bodes poorly for the ability of the latter countries to cope with the waves of future economic shocks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Economic Research Forum in its series Working Papers with number 435.
Length: 21 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
Publication status: Published by The Economic Research Forum (ERF)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Namees Nabeel).
If references are entirely missing, you can add them using this form.