Economic reform and democratization are the twin challenges for Arab countries after the Arab spring. In this, there are four separate but interrelated “transitions” that Arab states must undergo to meet the challenges of the twenty-first century: (1) an intergenerational transition toward meeting the economic needs of the large youth population in the region; (2) the modernization of the public sector; (3) the establishment of confidence in the private sector; and (4) integration in global markets and global institutions. The chapter also explores some key challenges that pose an immediate threat to sound economic policy making in the Arab world.
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