Table of Contents

Introduction
From Prosperity to Decline
Inappropriate Policy Responses to Inflows of Foreign Funds
From Boom--to Decline
The Inadequacy of Domestic Policy
Constraints on Growth
Human Resources
The Tradables
Defense's Drain on Growth and Development
Outlook for Reform and Adjustment
Recommended Policy Reform and Structural Change
Promoting Sustained Growth with Foreign Aid
External Resource Flows
References
Index

Promotional Information

This study analyzes the political, economic, and social similarities and differences among Egypt, Syria, and Jordan and pinpoints both the internal and external factors that contributed most significantly to their economic declines.

About the Author

VICTOR LAVY is a Senior Lecturer in the Department of Economics at The Hebrew University of Jerusalem. He has taught extensively in the United States and Israel, and has published many academic papers in such journals as Middle Eastern Studies, The Economic Journal, European Economic Review, and The World Bank Economic Review.

ELIEZER SHEFFER is a Teaching Associate Professor in the Department of Economics at The Hebrew University of Jerusalem. He contributed a chapter to the book Economic Cooperation in the Middle East.

Reviews

?In this first report by the Israeli Institute for Applied Econimic Policy, which aims to promote peace in the Middle East region by economic means, two economists (Hebrew University, Jerusalem) focus on the negative effect of large and mainly transitory capital flows into Egypt, Syria, and Jordan. These countries are poor but differ significantly in economic and political structure as well as in ideology. Egypt is semi-centrally planned and a socialist economy; Syria is even more centralized. In contrast, Jordan is an almost capitalist, market-oriented society. US aid, financial support from other Arab countries, and remittances from nationals of recipient countries who work primarily in oil-producing countries of the Persian Gulf region are treated together as capital flows; however, tables provide full details that permit easy comparison, and also include data for Israel. The substantial funds received by the three countries are shown to have been wasted for lack of satisfactory infrastructure in all countries, together with a predominance of military expenditures and investment in large projects with low returns. After a brief period of growth, recessions set in, which the three countries tried to offset by large borrowings from abroad. Part 3 of the book makes general recommendations for policies and structural reforms to avoid such future calamities. These recommendations largely follow suggestions of the World Bank. For academic and large public library collections.?-Choice

"In this first report by the Israeli Institute for Applied Econimic Policy, which aims to promote peace in the Middle East region by economic means, two economists (Hebrew University, Jerusalem) focus on the negative effect of large and mainly transitory capital flows into Egypt, Syria, and Jordan. These countries are poor but differ significantly in economic and political structure as well as in ideology. Egypt is semi-centrally planned and a socialist economy; Syria is even more centralized. In contrast, Jordan is an almost capitalist, market-oriented society. US aid, financial support from other Arab countries, and remittances from nationals of recipient countries who work primarily in oil-producing countries of the Persian Gulf region are treated together as capital flows; however, tables provide full details that permit easy comparison, and also include data for Israel. The substantial funds received by the three countries are shown to have been wasted for lack of satisfactory infrastructure in all countries, together with a predominance of military expenditures and investment in large projects with low returns. After a brief period of growth, recessions set in, which the three countries tried to offset by large borrowings from abroad. Part 3 of the book makes general recommendations for policies and structural reforms to avoid such future calamities. These recommendations largely follow suggestions of the World Bank. For academic and large public library collections."-Choice