Higher oil prices, by softening budget constraints for energy producers in the Middle East and North Africa, may reduce the incentive for major economic reforms. But the region’s oil importers, facing renewed risks to social and political stability from rising costs, must contend with much greater challenges.
LONDON – The soaring commodity prices affecting developing countries have produced both winners and losers in the Middle East and North Africa (MENA). The region’s resource-rich states, which are among the world’s biggest oil and gas exporters, are experiencing revenue windfalls. But for oil importers such as Egypt, Jordan, Lebanon, Morocco, and Tunisia, higher energy prices have stretched national budgets to the limit and increased current-account deficits.
LONDON – The soaring commodity prices affecting developing countries have produced both winners and losers in the Middle East and North Africa (MENA). The region’s resource-rich states, which are among the world’s biggest oil and gas exporters, are experiencing revenue windfalls. But for oil importers such as Egypt, Jordan, Lebanon, Morocco, and Tunisia, higher energy prices have stretched national budgets to the limit and increased current-account deficits.