Economic reform required to heal Arab world - FT.com

Economic reforms are as important as constitutional and political reforms. However, the popular anger in the Arab world over corruption and high unemployment have not yet translated into credible changes of economic policies.

On the contrary, policymakers have reacted to unrest by expanding subsidies and increasing public sector employment.

But increased subsidies and creating jobs in a bloated government sector do not address the structural problems facing youth unemployment. If prospects of fundamental economic change and improved standards of living remain dim there will be a high risk of more protests in the months ahead.

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