Inequality and its Discontents

Report: 1 to 11 June 2021

With the severe decrease in COVID-19 cases in almost every country, international donors and investors are re-organizing their efforts towards the development of this region. However, some countries are relying more than others on aid, depending on the type of political system in place. For instance, Egypt has taken advantage of inward investment to launch massive projects. Meanwhile, others such as Lebanon and Syria are struggling under economic sanctions imposed on key decision makers not in line with western policies.

1- The socio-economic situation

Egypt

Corona cases, deaths and recovered are distributed as follows:

-273,182 corona confirmed cases

-159,999 recovered

-15,623 deaths

Under the finance, NBE will on-lend the funds to SMEs operating in the sectors of industry, commerce and agriculture to help improve the use of energy, water and land resources. June 6, 2021, photo credit: ahram online.

Throughout the beginning of June, Egypt did not announce any notable projects, but continued to draw upon past successes. As such, the European Bank for Reconstruction and Development (EBRD), handed 100 million USD to the National Bank of Egypt (NBE), in line with nation’s strategy to support the country's small and medium-sized enterprises (SMEs) and to transition into a green economy[1]. Moreover, Egypt will be receiving 1.6 billion USD, after the IMF had evaluated its economy.

As for the 45 billion USD “new capital” which Egypt had been constructing over the past 6 years, the government announced that civil servants in August would be transitioning from their workplaces in Cairo to the new capital. According to officials, the aim is to have 55,000 civil servants working in 30 massive ministerial buildings. Ultimately, with private developments alongside military projects, the goal is to have 6.5m people living in the city.[2]                          

With so many projects being launched over the years, Egypt has succeeded in achieving a projection of 5.2-5.5% economic growth in Q4 of FY20/21. There is no doubt that Egypt is a flourishing country as its future are translated through numbers.

Jordan

Corona cases, deaths and recovered are distributed as follows:

-743,331 corona confirmed cases

-726,219 recovered

-9,592 deaths

Part of the virtual meetings between UAE-Jordanian officials to discuss economic cooperation (WAM)

Since Jordan had succeeded in developing economic policies in line with various international institutions, the World Bank Group approved a 1.1 billion USD assistance for a COVID-19 response and green, resilient and inclusive recovery. Moreover, Jordan’s evolving ties with the gulf, allowed it to secure an agreement with the UAE to boost the economy in various fields including trade and investment. Such a step, if carried out, should secure more job opportunities for Jordanians who are facing high levels of unemployment. According to the United Arab Emirates Minister of Economy Abdulla Bin Touq Al Marri such a move is highly significant as it coincides with the gradual return of normal life and the recovery of the economy.[3]

Jordan, being cradled by the World Bank, the UAE, and many other entities, has a golden opportunity to turn things around for its citizens; there is strong political and financial backing for the Kingdom, in the West and in the region.[4]

Iraq

Corona cases, deaths and recovered are distributed as follows:

-1,254,643 corona confirmed cases

-1,172,227recovered

-16,705 deaths

A woman holding the Iraqi flag gestures while sitting on the street as demonstrators take part in an anti-government protest in Baghdad. Reuters

To meet the demands of its population and to face the electricity blackouts crippling the country, the Iraqi government announced a plan to build eight reactors capable of producing about 11 gigawatts. According to, Kamal Hussain Latif, chairman of the Iraqi Radioactive Sources Regulatory Authority, the government would seek funding from prospective partners for the $40 billion plan and pay back the costs over 20 years. Russia and South Korea were among the first to discuss the project with Iraq.

This declaration came in light of positive projections for the Iraqi economy, which will see oil markets turning positive for the coming years. As such, the 2nd OPEC oil producer is striving to take advantage of the opportunity, by allowing its economy to recover while tending to the needs of a drained population. Perhaps this will allow Iraq to thoroughly tackle its corruption problem? 

Lebanon

Corona cases, deaths and recovered are distributed as follows:

-542,604 corona confirmed cases

-527,174  recovered

-7,798 deaths

The World Bank accused Lebanon's authorities of deliberately failing to mount an adequate policy response to the country's economic and financial crisis [File: Hussein Malla/AP]

The World Bank recently issued a daunting report which heavily broadcasted via various media outlets. The organization claimed that  Lebanon's economic collapse is likely to rank among the world's worst financial crises since the mid-19th century. The report predicts that Lebanon's economy will shrink by close to 10 percent in 2021 and stresses there is "no clear turning point in the horizon". Such melancholic words, used by the World Bank, describe the organization’s frustration with Lebanese authourities aloofness in dealing with situation.

"Policy responses by Lebanon's leadership to these challenges have been highly inadequate," the report says.

To demonstrate the severity of the situation, talks about the total disapearance of fuel is haunting the country. Long lines of cars waiting at gas stations for some fuel, is what can be seen all  over the news and is the main point of discussion in any casual conversation. With the fuel crisis reaching its peak, we cannot imgagine how life in the country over the coming weeks will be. [5]

Maybe running out of fuel is a good thing for the Lebanese people. Maybe this will provide them with the anger and frustration, they need to finally take the corrupt system down. 

Palestine

Corona cases, deaths and recovered are distributed as follows:

-311,534 corona confirmed cases

-232960 recovered

-3,533 deaths

A Palestinian woman puts her hand on her head after returning to her destroyed house [Mohammed Salem/Reuters]

Weeks after the confrontations had ended, the Palestinian people are still licking their wounds, trying to salvage the pieces of their broken lives. As such, 69 housing and commercial units have been rendered uninhabitable, at least 1,042 units in some 258 buildings have been destroyed, and another 14,538 units have suffered minor damage. In terms of the nation’s industry, Palestinian officials claimed it would cost some $100m to rebuild the damage to industry, power and agriculture in the already impoverished territory. The United Nations warned approximately 800,000 people in Gaza do not have adequate access to clean water, as nearly 50 percent of the pipe network was destroyed in the bombing. To make matters worse, the bombing also damaged the electrical power infrastructure resulting in the decrease of power feed from 12 hours a day to 5 hours. Also, the hospitals in Gaza are still under pressure as many injured people remain under treatment when fuel supply is also running low. [6]

Syria

Corona cases, deaths and recovered are distributed as follows:

-24,814 corona confirmed cases

-21,675 recovered

-1,810 deaths

Syrian President Bashar al-Assad said the country is capable of overcoming the blockade and creating more investment opportunities. Photo credit: Tasnim News

As sanctions and various forms of economic pressure seem to be lingering around for an indefinite period of time, the government seems to have given up hope on their timely removal. Moreover, Syria’s traditional partners don’t seem in a stance that would allow them to invest in the ME nation’s economy. Even aid agencies are unable to deliver cross-border aid to Syria because the UN Security Council still did not give the green light to do so. As such, Syria is now alone facing the various economic hurdles coming its way. 

In light of the grim situation, the Syrian presidency gave orders to decision makers in the industrial sector to boost production, hoping to meet demand shortages and increase self-reliance.[7] The country’s steep decline in imports indicates Economic contraction and a necessity to improve production. Even the sharp increase in prices of fertilizer material, caused agricultural production to decrease.

To that end, a group of 42 NGOs are warning of a looming humanitarian catastrophe, if food insecurity and economic hardship are not looked upon. All these NGO’s need the UN Security Council to adopt a resolution that would allow the transfer of aid across the borders. However, all those involved with the plight of Syria, must be aware that time is ticking; Syrians are worse off by nearly every measure than the start of the war: 81% of people in the northwest and 69% in the northeast are in need of aid. Malnutrition in children under five is skyrocketing.[8]

Cyprus

Corona cases, deaths and recovered are distributed as follows:

-73,190 corona confirmed cases

-71,464  recovered

-373 death

Representatives of three government bodies sign an agreement to transition Cypriot economy into a circular one.

Cyprus’s main concern throughout this month, was not the short-term recovery of the country. Instead, the tiny island is now preparing for a new model called: ‘circular’ economy. Such a system will employ the usage of natural resources efficiently, while reducing pollution, reusing resources and using fewer materials in the first place. For this reason, three government bodies signed a partnership agreement with the Cyprus Employers and Industrialists Federation (OEV) to boost cooperation and expedite the transition of businesses towards the circular economy.

Another aspect which the government is seeking to improve is its shipping industry or ‘Blue’ economy. Shipping Deputy Minister Vassilis Demetriades, who represented Cyprus at the EU Ministerial Meeting on issues related to the Integrated Maritime Policy, expressed the country`s intention to support and contribute to the reinforcement of a sustainable and ambitious blue economy, by implementing a national Integrated Maritime Policy and a Maritime Spatial Plan. [9]

Communication and Public Relations Department

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[1] Ahram, June 6, 2021, https://english.ahram.org.eg/NewsContent/3/12/413626/Business/Economy/Egypt%E2%80%99s-NBE-receives--mln-from-EBRD-to-support-SME.aspx

[2] FT, Financial Times, https://www.ft.com/content/00a7b285-87c8-448c-998e-30457d1af85c

[3] Zawya, May 30, 2021, https://www.zawya.com/mena/en/economy/story/World_Bank_Group_mobilises_11bln_financial_assistance_to_Jordan-SNG_214322886/

[4] Awsat, June 6, 2021, https://english.aawsat.com/home/article/3012091/uae-jordan-discuss-means-bolstering-economic-cooperation

[5] France 24, June 1, 2021, https://www.france24.com/en/live-news/20210601-lebanon-crisis-among-world-s-worst-since-1850s-world-bank

[6] Aljazeera, May 21, 2021, https://www.aljazeera.com/news/2021/5/21/thousands-of-gazans-return-to-destroyed-homes-after-israel-truce

[7] Tasnim News, June 10, 2021, https://www.tasnimnews.com/en/news/2021/06/10/2518168/assad-highlights-syria-s-potential-to-overcome-blockade

[8] OCHA, June 10, 2021, https://reliefweb.int/report/syrian-arab-republic/over-1-million-people-risk-hunger-syria-if-cross-border-aid-resolution

[9] Cyprus Mail, June 7, 2021, https://cyprus-mail.com/2021/06/07/cooperation-agreement-signed-in-boost-to-circular-economy-efforts/