Economic Freedom in the Arab World

This article constitutes edited text from the Economic Freedom of the Arab World: 2015 Annual Report.

Arab and Islamic societies have a rich trading tradition, one that celebrates markets open even to the humblest members of society. Yet in recent decades, elites in many Arab nations have controlled economic activity for their own benefit. They have used onerous regulation and a corrupt rule of law to deny opportunity for others.

A new economic vision is thus needed for the Arab world to move forward – one of economic freedom and open markets that create hope and opportunity equally for all. Economic freedom is the extent to which one can pursue economic activity without interference from government. It is built upon personal choice, voluntary exchange, the right to keep what you earn, and the security of one’s property rights.

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Saudi Foreign Policy: Unity, Stability, and Responsibility

When the Arab uprisings began in 2010, the future of the Middle East looked more uncertain than usual. In the midst of the turmoil, Saudi Arabia was forced to strengthen and clarify its foreign policy. Since then, the Kingdom has structured its foreign policy leadership and its vision for its future around unity, stability, and responsibility.


The unity that Saudi Arabia advocates, and the vision it promotes, is the unity of the Arab Gulf. In the past few years, the Kingdom has made great efforts to prioritize the oneness of the Gulf’s Arab countries and their shared interests over small and transient differences. In the struggle to restore the legitimate government to power in Yemen, the Kingdom has forged a coalition of the GCC countries and likeminded Arab and non-Arab countries to achieve that aim. The purpose has been to prevent the usurpers of power, the Houthis and the forces of the deposed president, Ali Abdullah Saleh, from forcing themselves on the Yemeni people.

As sectarian violence deepens rifts and breaks apart homes and communities across the Arab world, Saudi Arabia’s call for unity has become more urgent than ever. Iraq and Syria are among the countries following the same heartbreaking narrative: citizens with the same shared history, religion, and homeland continue to be torn apart by radical groups exploiting sectarian religious and ethnic divisions for their own gain. Groups like ISIS, the Shi‘i militias in Syria and Iraq, Hezbollah, and the Houthis use religious extremism in order to gain loyalty by providing the young a militant identity, a sense of belonging, and a vision for which to fight. But the unity of radicalism is an illusion; it cannot exist without an enemy. It reaches not toward harmony but toward domination and control. ISIS is a symptom of the disease of anarchy in Syria and Iraq.

But the unity of radicalism is an illusion; it cannot exist without an enemy. It reaches not toward harmony but toward domination and control.

Russia has now added to this bloody scene air strikes aimed at Syria’s moderate opposition, which is fighting ISIS and Bashar al-Assad alike. This is a most unwelcome addition to an already combustible situation. Russian representatives state they are there to fight the terrorists. Alas, together with the United States Moscow is ignoring the father of all terrorists in Syria – Assad. In Baghdad, the legacy of Nuri al-Maliki’s sectarian rule disenfranchised the Sunni Iraqis and allowed ISIS to take advantage of the resultant vacuum to establish rule in Mosul and other parts of Iraq. Fix Damascus and Baghdad, and ISIS will wither away.

Fighting sectarianism is far from easy. Sectarianism thrives on the enmity of others. The kingdom asked fellow Islamic countries in 2012 to build a center that will research and help dismantle sectarian ideologies while promoting intersectarian dialogue. But there is only so much that can be done for countries like Iraq and Syria, where sectarianism has become and remains a valuable political currency. The desire for unity cannot come from the outside alone; it must also come from within.

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Desperately Seeking the Arab Center

The uprisings of 2011 dramatically revealed the weakness of the Arab state. That earthquake unleashed aftershocks that are still being felt, and even states and ruling elites that did not experience severe protests have been shaken. As the Egyptian political scientist Nazih Ayubi observed some years ago, Arab states may be fierce, but that does not mean that they are strong, let alone legitimate.[1]

The modern Arab political order that began to take shape after World War I seemed to have consolidated into durable states following the nationalist revolutionary upheavals of the 1950s and 1960s. In the 1970s political scientists spoke of how the Arab state system had “matured.” But they had matured (if that is the right word) into states of persistent authoritarianism of either the “republican” or monarchical variety. While many of these states saw quite impressive economic and social development – due in part to oil wealth – they did not experience significant political openings and remained under the tight control of self-perpetuating elites. With one or two exceptions, organized political participation independent of the governments was suppressed.

Collapsing States

The uprisings of 2011 were by no means the first societal protests against this authoritarian order; there is a history of protests, strikes, and attempted coups in most of the Arab countries. In fact, the first major regime collapse came in Iraq in 2003 owing to the American invasion and occupation. But the upheavals of 2011 were unique in that they were contagious, indicating that there was an Arab community of protest that crossed state frontiers. Not only did rulers fall in Tunisia, Egypt, Libya, and Yemen, but neighboring regimes were also shaken, notably Bahrain and especially, of course, Syria.

The upheavals of 2011 were unique in that they were contagious, indicating that there was an Arab community of protest that crossed state frontiers.

Today, a survey of the bleak Arab landscape would reveal four arguably failed states – Iraq, Syria, Libya, and Yemen. But the tremors are felt more broadly. Bahrain remains unsettled. Jordan and Lebanon are severely stressed. Tunisia is widely praised as having made a successful democratic transition, but the situation remains fragile. Faced with the triple challenge of potential popular protest, growing Iranian power, and, of course, the Islamist extremism of ISIS and its cousins, the wealthy Gulf states led by Saudi Arabia and the United Arab Emirates feel forced to wage a defensive “counterrevolution” against these currents. The human toll – mainly civilians dead or injured, or refugees – is appalling, especially in Syria and Yemen.

Outside powers inevitably have become involved. Just as European powers nibbled away at Turkey – “the sick man of Europe” – a century and more ago, today they cast nervous, and often predatory, eyes on the Arab world – “the sick man of the Middle East.” American hubris sought to remake Iraq and the region as a whole into compliant liberal entities; Russia strives to expand its foothold by clinging to a brutal Syrian regime; Iran bides its time; and Europe dithers. Foreign “boots on the ground,” air strikes, and drone attacks exacerbate rather than ease the multiple ongoing conflicts.

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