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| Workshop on “Understanding and Avoiding the Oil Curse in the Arab World” - October 7-8, 2011, Cairo, Egypt |
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The primary objective of this workshop was for both the thematic and case study authors to present the first drafts of their research work. Six thematic papers were presented addressing implications of oil dependency on (i) oil optimum savings-investments decisions, (ii) economic growth, (iii) financial sector development, (iv) exchange rate and monetary policy issues), (v) fiscal issues, (vi) in addition to a final paper tackling the political economy of oil rents and governance. Five case studies were presented including Saudi Arabia, United Arab Emirates, Sudan, Yemen and Algeria. The case studies addressed oil-related issues taking into account that depending on the country in question, some issues are more relevant than others, in terms of the degree of oil dependence and implications for long-term diversification. In addition, a paper addresses the implications of the region’s oil on for the non-oil or labor-exporting Arab economies. These countries are indirectly impacted of the “oil curse” mainly through their dependence on workers’ remittances and capital inflows from the GCC. Not only does this channel have a macroeconomic impact through GDP growth, but it also influences the demand for reserves and the choice of exchange and monetary regimes.
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