Arab Spring. This term has been used by political commentators worldwide to describe the turmoil that has engulfed the Middle East for much of the past year. The term ‘Spring’, as far as I can recall, as first used in the 1848 European ‘Spring of Nations’, a struggle for liberalism and national determination.

                 It was also an abject failure.

                For economists, perhaps a better example would be to consider the 1989 fall of Communism, where freedom from state planning led to vibrant market economies emerging in Eastern Europe. With the rise of democracy in the Middle East, some argue that Arab countries are in an ideal situation to replicate these successes.

                However, local economies in the region are technically capitalist, albeit dominated by government interference, monopolies and corruption. Unlike the relatively smooth political transition within the former Communist bloc, the Arab Spring has brought about mass civil unrest, protests and civil war. With these countries already intertwined with the global economy, the International Business Report indicates that fully a quarter of North American businesses are negatively impacted, and almost a tenth of global companies are hesitant due to the incessant turmoil.

               To compound to their troubles, the urge of economic reform along with political freedom seems wholly absent. Without a clear economic aim, no potential economic integration, and powerful entrenched interests, the task for reformers seems highly daunting.  

http://www.economist.com/node/18867047

http://www.gti.org/IBR2011/Arab-Spring.asp

 http://www.cics.northwestern.edu/groups/mena/newdirections.html

http://www.upi.com/Top_News/World-News/2011/07/01/UN-official-lauds-Arab-Spring/UPI-96851309517686/