Building a Modern State

Magdi Amin, Ragui Assaad, Nazar al-Baharna, Kemal Derviş, Raj M. Desai, Navtej S. Dhillon, Ahmed Galal, Hafez Ghanem, Carol Graham, Daniel Kaufmann, Homi Kharas, John Page, Djavad Salehi-Isfahani, Katherine Sierra and Tarik M. Yousef

in After the Spring

Published in print May 2012 | ISBN: 9780199924929
Published online May 2012 | e-ISBN: 9780199949427 | DOI:
Building a Modern State

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This chapter looks at the need to modernize the Arab public sector. A large public sector has been the key to the survival of Arab governments but many of these state institutions were used to reward regime supporters. Evidence suggests that over the years, the quality of public services has deteriorated in many countries. Therefore a long-term challenge for all governments in the region is to deal with the efficiency of public agencies. Arab debt and deficits are of less immediate concern than in other developing countries, because a considerable portion of the debt is domestic. However, some countries will require stabilization-a task that will be complicated by fact that debt dynamics are uncertain. Reformers will have to prioritize efforts to rebuild state institutions, improve the delivery of vital public services, and do so in an era of public sector retrenchment.

Keywords: public services; debt; stabilization; state institutions; public sector

Chapter.  6933 words.  Illustrated.

Subjects: Economic Development and Growth

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