This chapter will assess the internal and external stability of Arab countries during the last 30 years. The evaluation has applied the new aggregate indicators created by Principal Component Analysis (PCA), as discussed earlier in chapter three.

The chapter started the in-depth economic analysis of the Arab countries, in particular by assessing the impact of the reform programmes on internal and external economic stability. Domestic economic stability determinants were very similar to external ones, as both were linked to two dominant determinants: political stability and oil revenues. The stabilisation improvements were directly connected to the oil sector funds from 2002 to 2010 while the main imbalances in the period before 1999 and beyond 2011 were related to oil prices and military conflicts in the region. In conclusion, it is possible to say that failing to achieve internal economic stability was the dominant feature in the Arab countries except for some of the Gulf countries that enjoyed substantial surplus revenues from the oil sector.

Citation

Abdelbary, I. (2021), "Economic Stabilisation and Arab Reform", Reviving Arab Reform: Development Challenges and Opportunities, Emerald Publishing Limited, pp. 53-70. https://0810bj2yb-1106-y-https-doi-org.mplbci.ekb.eg/10.1108/978-1-83982-318-320211005