Economic growth has been one of the unintended victims of the Arab Spring. But as the new democracies of the region consider their priorities, it is critical that they not become enemies of business.
The toppled regimes of Libya, Tunisia and Egypt were notorious for their tight control over economic as well as political activity, and liberalisation was often a cover for giving monopoly businesses to friends of the presidents.
Some governments in the region have responded to the Arab Spring by falling back on old solutions of patronage: handing out free housing, benefits or government jobs. This is a dead end. It only sows the seeds of crisis in the future by fostering a culture of entitlement, undermining productivity and increasing the size of government.
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