Tunisia Is Using U.S. Funds to Broaden Its Tourism

Tunisia Is Using U.S. Funds to Broaden Its Tourism

Recently, Tunisia was found to be using U.S. Funds to broaden its Tourism attractiveness. Having gone through ups and downs, it is a matter of how Tunisia is using those U.S. Funds to broaden its Tourism branding.

So, how is Tunisia using U.S. Funds to Broaden Its Tourism? Let us see.

Tunisia recorded two million tourists in 2020, ranking 66th in the world. It generated around $1.01 billion in its tourism sector, corresponding to 2.1 percent of its gross domestic product and approximately 10 percent of all international tourism receipts in Northern Africa.  

 

How Tunisia Is Using U.S. Funds to Broaden Its Tourism Branding

Skift Take

The sustainable planning phase of Tunisia’s destination marketing rebirth — the easy part — is done. Plan implementation is where the real work will begin.

The U.S. government is trying to help Tunisia develop a multifaceted destination brand, one that captures its diverse offerings and incorporates community stakeholders. That journey has come with obstacles from entrenched stakeholders, a historic beach image and developing visitor infrastructure.

In February, the U.S. government injected $50 million into Tunisia’s tourism sector through the United States Agency for International Development (USAID) under a five-year project called “Visit Tunisia.”

The project’s aim is to promote the northern African country of 12 million people as a high-quality tourist destination with diverse offerings, increase the number of tourists year-round, and create new source markets. A key objective is to have the country draw 11.5 million tourist arrivals by 2026.

The USAID, an independent agency of the U.S. federal government, doesn’t typically assist global destinations with tourism marketing. In Tunisia’s case, the agency has been investing in its economic and political development since its 2011 Revolution, which overthrew longtime president Zine El Abidine Ben Ali. “This was seen as an opportune time to see what Tunisia’s tourism future could look like,” said Visit Tunisia Destination Marketing Team Leader Mackenzie Mackenzie.

Tunisia’s brand has traditionally been a beach destination. “Tunisia has a strong tourism legacy from years of being promoted, especially in the European markets, as a sun and sand destination,” said Mackenzie.

The Tunisian National Tourism Office has offices around the world that lean on this image, Mackenzie said. Travelers on the “budget end of the market” come to the country for its coastal beaches and resorts during the summer season.

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“Unfortunately the biggest number of people coming to Tunisia are coming for the resorts,” said Overseas Adventure Travel Tunisia Country Manger Chaker Abichou.  He expects that 90 percent of tourists that came to the destination this year are here for Sousse and other popular resort towns located on the country’s north and east coast.

USAID’s aim is to expand the number of flexible, independent and younger travelers already exploring the country. “We are looking at what they’re doing and what they are seeing,” Mackenzie said. These travelers go beyond the beach and take on motorcycle tours, camping in the Sahara, hiking adventures, stay in local guest houses and explore local experiences.

The marketing ambition comes as Tunisia bounces back after a rough 11 years since its revolution. In that period, the tourism sector experienced civil unrest, terrorist attacks and Covid-19. “It’s been a triple whammy for the sector,” Mackenzie said.

In 2015, a mass shooting killed 38 people at the tourist resort of Port El Kantahoui, Tunisia has been under a state of emergency since 2015. The security situation has improved greatly in the last decade, said Abichou. He said tourist feedback on safety has been very positive.

Even so, the U.S., UKFrance and Germany have issued warnings to their citizens to be cautious about travel to the country and to explicitly not travel to certain due to terrorist activities.

Tunisia has the untapped potential to attract the flexible, independent traveler market. The destination is home to famous battle sites, well-preserved Roman and other civilizational ruins, filming locations for popular movies like Star Wars, mountains, Sahara, religious sites, a rich culture and more. Communities just need help to leverage these strengths, MacKenzie said.

USAID has sought out attracting tour operators focused on experiential and adventure travel. It has partnered with the Smithsonian Institution to develop the destination’s cultural heritage. Investments in visitor infrastructure for cultural and archaeological sites like better roads, hiking trails and boardwalks throughout the country are also being planned.

The agency has zeroed in on six communities for more focused destination development. “They typically don’t have a destination marketing organization structure,” said Mackenzie. “We are looking at how we work with destinations and innovate and harness the capacity in those communities. If it won’t be a DMO, what will it be?”

Working with industry and community stakeholders to develop sustainable models has eaten up the first year of the project. “Pretty much the first year has been dedicated to stakeholder engagement,” said Mackenzie.

The agency wants to avoid the common mistake international development agencies make of not developing a plan that outlasts their exit. “Often the experts come in, make a plan, off they go and the plan sits around,” said Mackenzie. With stakeholder input, plans have been drawn up to develop visitor infrastructure and promotional efforts.

USAID’s work in the first year underscores the 2022 Skift Megatrend “Communities Are No Longer Spectators in Travel.”

One group of stakeholders that have proven a challenge to work with is the dominant resort community. Many in the group view the attempt at marketing diversification as “turning away from our bread and butter, resort tourism,” said Chris Seek, CEO of Solimar International, a sustainable tourism consultancy which works with USAID on Visit Tunisia.

Resort stakeholders have a lot of influence and power in the country’s tourism industry, said Overseas Adventure Travel Tunisia’s Abichou.

“We have to constantly try to remind them it’s not about turning away,” added Solimar’s Seek. “It’s about making your destination more competitive because you have things that other beaches don’t offer.”

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Read more from Skift’s Tags: beachesgovernmentinternational tourismmiddle easttunisia

 

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Evidence of Prehistoric Hunting across Arabian Desert

Evidence of Prehistoric Hunting across Arabian Desert

Oxford archaeologists discover monumental evidence of prehistoric hunting across the Arabian desert. 

They have found over 350 Monumental Hunting Structures labelled and since then known as ‘Kites’ In Northern Saudi Arabia And Southern Iraq Using Satellite Imagery.

Evidence of Prehistoric Hunting across Arabian Desert

Evidence of Prehistoric Hunting across Arabian Desert

Distribution of kite structures in the Levant and in northern Arabia. White: previously documented kites. Red: kites recorded by EAMENA.

 

Archaeologists at the University of Oxford’s School of Archaeology have used satellite imagery to identify and map over 350 monumental hunting structures known as ‘kites’ across northern Saudi Arabia and southern Iraq – most of which had never been previously documented.

Led by Dr Michael Fradley, a team of researchers in the Endangered Archaeology in the Middle East and North Africa (EAMENA) project used a range of open-source satellite imagery to carefully study the region around the eastern Nafud desert, an area little studied in the past. The surprising results, published in the journal The Holocene, have the potential to change our understanding of prehistoric connections and climate change across the Middle East.

Termed kites by early aircraft pilots, these structures consist of low stone walls making up a head enclosure and a number of guiding walls, sometimes kilometres long. They are believed to have been used to guide game such as gazelles into an area where they could be captured or killed. There is evidence that these structures may date back as far as 8,000 BCE in the Neolithic period.

Kites cannot be observed easily from the ground, however the advent of commercial satellite imagery and platforms such as Google Earth have enabled recent discoveries of new distributions. While these structures were already well-known from eastern Jordan and adjoining areas in southern Syria, these latest results take the known distribution over 400km further east across northern Saudi Arabia, with some also identified in southern Iraq for the first time.

Dr Fradley said: ‘The structures we found displayed evidence of complex, careful design. In terms of size, the ‘heads’ of the kites can be over 100 metres wide, but the guiding walls (the ’strings’ of the kite) which we currently think gazelle and other game would follow to the kite heads can be incredibly long. In some of these new examples, the surviving portion of walls run in almost straight lines for over 4 kilometres, often over very varied topography. This shows an incredible level of ability in how these structures were designed and built.’

 

 

 

Evidence suggests considerable resources would have had to be coordinated to build, maintain, and rebuild the kites over generations, combined with hunting and returning butchered remains to settlements or camps for further preservation. The researchers suggest that their exaggerated scale and form may be an expression of status, identity and territoriality. Appearances of the kites in rock art found in Jordan suggests they had an important place within the symbolic and ritual spheres of Neolithic peoples in the region.

 

 

 

From the design of the kite heads to the careful runs of guiding walls over long distances, these structures contrast markedly in scale with any other evidence of architecture from the early Holocene period. The researchers suggest that the builders of these kites dwelt in temporary structures made from organic materials that have left no trace visible on current satellite imagery data.

Desert kite research is a very active field just now – Michael and colleagues explore a significant extension to their distribution pattern, which has major implications for our understanding of the relationship of the kite builders with new mobile pastoralists and the occupation of the region.

Bill Finlayson, Director of EAMENA and Professor of Prehistoric Archaeology at the University of Oxford 

 

These new sites suggest a previously unknown level of connection right across northern Arabia at the time they were built. They raise exciting questions about who built these structures, who the hunted game were intended to feed, and how the people were able to not only survive, but also invest in these monumental structures.

In the context of this new connectedness, the distribution of the star-shaped kites now provides the first direct evidence of contact through, rather than around, the Nafud desert. This underlines the importance areas that are now desert had under more favourable climatic conditions in enabling the movement of humans and wildlife. It is thought the kites were built during a wetter, greener climatic period known as the Holocene Humid Period (between around 9000 and 4000 BCE).

The largest number of kites were built on the Al Labbah plateau in the Nafud desert, where the absence of later Bronze Age burial monuments suggests that a shift into a drier period meant some of these areas became too marginal to support the communities once using these landscapes, with game species also potentially displaced by climate change.

Whether the patterns of kite construction over space and time represent the movement of ideas or people, or even the direction of that movement, remain questions to be answered.

The project, supported by the Arcadia Fund, is now extending its survey work across these now arid zones to further develop our understanding of these landscapes and the effect of climate change.

The study Following the herds? A new distribution of hunting kites in Southwest Asia is published in The Holocene.

Read University of Oxford News & Events

 

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Unlocking Peace Ministry in the Middle East

Unlocking Peace Ministry in the Middle East

All MENA countries, derived from the XIX and early XX centuries, acquired this capability when policing their citizens, identifying any person protesting their government without due process. The same applies to interstate relations where transboundary resources and interests of any kind envenom and more often inflame situations. So, at this conjecture, is it not the opportune time to at least try unlocking a Peace Ministry in the Middle East?

 

Unlocking Peace Ministry in the Middle East: Announcing the Middle East Consultation 2022

 

 

Everything is affected whenever peace is missing. Absolutely everything! Conflict has a way of harming all areas of the human experience. We all know too well the pain and confusion undermining peace throughout our nations, our communities, and our own souls in regrettable ways. It disorients and forces us to grapple with the seemingly overwhelming gravity of sin and the depth of its consequences. For this reason, God really, really cares about peace.

Seeking peace is essential to God’s story for humanity. Scripture demonstrates the extent to which conflict infects a fallen world while also declaring the length God goes for the sake of peace. This didn’t happen without sacrifice; Jesus Christ endured the extreme weight of conflict as he hung on the cross. And it was on this journey to the cross that he shared eternal words with his disciples: “Peace I leave with you; my peace I give you. I do not give to you as the world gives. Do not let your hearts be troubled and do not be afraid” (John 14:27). This is a perplexing type of comfort. Jesus is perfectly aware that our hearts will face trouble and fear in an uncertain world, but he assures us that the only kind of peace that can suffice is an otherworldly peace. Because of this, we have hope amid the storms of strife.

It can feel like the Middle East invents ever creative ways to undermine peace as people across the region deal with struggling societies, mounting insecurities, dirty politics, violent factionalism, destructive ideologies, and wave after wave of crisis. The problems fill headlines and reports throughout ceaseless cycles of bad news. Residents struggle through chronic frustration and disillusion, and growing numbers are joining a migration outflow seeking better fortunes in new locations.

Christ followers across the Middle East face their own flavors of conflict. Egypt encounters layers of challenges as churches and Christian groups serve amid rapidly changing times. In Algeria churches struggle to forge faith communities against the grain of a suppressive government. Christians of Iraq continue to navigate decades-long strife while trying to nurture one another and serve their neighbors. In Palestine, occupation and oppression hinder the most basic areas of human life and fuel hardships of many kinds. Sudan’s believers are dealing with rapidly changing political situations after years of regime change and upheaval. And in Lebanon, new layers of crisis pile upon old, unresolved conflicts to destabilize a state and its people. Unfortunately, these are only brief samples of the range of conflict raging across the region. It can all seem so overwhelming, and in the darkest moments cries go out, “Why, Lord, do you stand far off? Why do you hide yourself in times of trouble?” (Psalms 10:1).

Though it doesn’t come easily, we must insist on recognizing the profound ways God’s people can and do faithfully minister peace amid challenging situations. Churches, organizations, and individuals of faith are ready vessels for extending Christ’s peace; they possess the potential by the Spirit to alter situations and write new stories for people and places. Is this not what it means to take hold of the peace that Christ leaves? This among the many questions the Middle East Consultation 2022 aims to ask on September 21-23 during Peace I Leave with You: Theories and Practices for Peace Ministry in the Middle East.

Practicing effective peace ministry requires us to imagine peace in ways that conform our thoughts and attitudes to the person of Christ in service of others. Biblically, peace ministry can be understood as the work of unlocking human potential by moving people, communities, and nations into healthier dynamics of shared life. Such outreach proceeds from deep convictions that the gospel is a holistic response to any situation where sin inflicts strife, oppression, hatred, and mistrust- everything antithetical to the restorative work of God.

Paradigms for peace ministry can help us recognize how peace involves multidimensional expressions (peacekeeping, peacemaking, and peacebuilding) working across levels of the human experience, including the personal, group, and national. The following grid, which MEC 2022 will adopt as a basic working framework, helps conceptualize this dynamic:

National Peacekeeping National Peacemaking National Peacebuilding
Group Peacekeeping Group Peacemaking Group Peacebuilding
Personal Peacekeeping Personal Peacemaking Personal Peacebuilding

Such a framework is helpful, but it certainly cannot convey the complexity of engaging conflict. There are no simple explanations or quick solutions to the problems plaguing the Middle East. Each unique context in the region carries assorted variables that require us to ask a proper set of questions. Worldly logic may say peace is an elusive dream or unattainable ideal, but authentic faith in Christ compels us to take hold of the gospel’s promises of peace as we seek to discover how God is active and alive in the world. Our eschatological hope for the future moves us to action as we relish the words of Isaiah 9:7: There will be no end to the increase of His government or of peace on the throne of David and over his kingdom, to establish it and to uphold it with justice and righteousness from then on and forevermore.

God is working through conflict for redemptive purposes, and everyone has a role to play in this. This means embracing the invitation to partner with God in living out Christ-honoring works of peace and continually exploring new ways to think about the theories and practices of peace ministry.

On September 21-23, the Middle East Consultation 2022 will do just this in the three-day online event Peace I Leave with You: Theories and Practices for Peace Ministry in the Middle EastJoin us for a series of enriching discussions examining the challenges facing the Middle East region and illuminating the hopefulness of peace for the world in and through Christ.

Read Arab Baptist Theological Seminary.

Apply for MEC 2022 today!

MENA countries’ Soft Power Ranking

MENA countries’ Soft Power Ranking

What is the MENA countries’ Soft Power Ranking?  According to the latest Global Soft Power Index 2022, a nation’s ability to influence, whether through attraction or persuasion, the behaviour and preferences of different actors on the international scene, including political regimes, businesses, and communities.  That is nowadays labelled “Soft Power.”

So, here is the MENA countries’ soft power ranking

Certain countries of the MENA suffer from a loss of influence on the international stage. They are dangerously retreating in favour of several small countries that manage to acquire a much more powerful brand image.

The assessment of the strength of the national brand is based, among other things, on data from the “Soft Power Index” as compiled by Brand Finance.

Fifty-five thousand people from more than 100 countries were asked about the reputation of countries and their influence on the international scene.

According to Brand Finance, countries with high overall ratings are suitable for investment. They also have an easier time marketing their brands and products.

Founded in 1996, Brand Finance, an accounting firm touted as the world’s leading independent brand valuation and brand strategy consulting group, is present in more than 20 countries and is at the service of Marketing, Finance, Tax & Legal departments as well as Business Leaders.  It is the first brand valuation US consultancy to join the International Valuation Standards Council, an independent, not-for-profit, U.S.- incorporated, private sector standards organization headquartered in the United States with its social headquarters in London, United Kingdom.

For several years, the Global Soft Power Index (GSPI) has measured the power and influence of all countries worldwide. For this 2022 edition, Algeria has retreated on the international scene to find itself in the 75th position out of 120 countries.

The GSPI considered Algeria less influential than countries such as Rwanda, Bosnia and Herzegovina, Jamaica and Malta.

According to the GSPI, Morocco is considered much more influential, ranking 46th globally. Algeria is also far from being able to compete with Egypt, which ranked first in Africa (31st), followed by South Africa (34th).

In the MENA region, Algeria ranked barely 8th among the 15 listed countries, after the United Arab Emirates (15th globally), Israel (23rd), Saudi Arabia (24th), Egypt (31st), Kuwait (36th), and Morocco (46th). Algeria (75th) is only better than Tunisia (76th).

The GSPI 2022 does, at the same time, not include Mauritania and Libya because of their chronic weaknesses that exclude them from this world ranking of the most influential countries.

The UAE is ranked as the top country in the MENA region in terms of global influence; as a small country of fewer than 10 million people located along the Arabian Gulf, it rose to tenth in this new ranking of 120 countries in the world. The UAE is one of the ten most influential and powerful countries worldwide.

Translated from Algerie-Part

 

 

Brown-to-green subsidy swaps in MENA are long overdue

Brown-to-green subsidy swaps in MENA are long overdue

When Reuters reported that Europe is facing a sharp rise in power bills driven by sky-rocketing gas prices, and all governments are looking for convoluted ways of relieving their respective populations from any pains this coming winter, Atlantic Council comes up with why brown-to-green subsidy swaps in MENA are long overdue. However, MENA states may be able to meet their green ambitions.  

 

Brown-to-green subsidy swaps in MENA are long overdue. Here’s why.

By Amin Mohseni-Cheraghlou

August 25, 2022

Despite the many improvements on many social, political, and economic fronts over the past few decades, there is significant work—in areas such as wasteful and socially unjust fossil fuel subsidies, air pollution and environmental degradation, youth unemployment, and gender inequalities—to be done in the Middle East and North Africa (MENA) region. While there are significant inter-country or even intra-country variations regarding some of these issues, from a high-level macro perspective, one can identify strong links between these specific issues in the greater MENA.

$2.27 trillion. This is the amount of explicit fossil fuel subsidies paid by MENA governments between 2010 and 2020. According to the International Energy Agency (IEA), MENA economies—led by Iran and Saudi Arabia—accounted for 50 percent of the world’s $4.57 trillion fossil fuel subsidy payments in this period (Figure 1).

 

Figure 1. Share in total global explicit fossil fuel subsidies between 2010 and 2020 (Percentage)

Brown-to-green subsidy swaps in MENA are long overdue
Source: Data from IEA, author’s calculation. MENA countries in red bars.

127,000. This is the number of annual pre-mature deaths in MENA related to ambient air pollution—around 7 percent of all deaths in the region. An important factor contributing to the region’s air pollution is the wasteful usage of fossil fuels, which is incentivized by massive fossil fuel subsidies in the region (Figure 2). Post-tax estimates of fossil fuel subsidies that take into account explicit and implicit costs—social, health, forgone taxation, and environmental costs—hover around 16 percent of the region’s GDP or about $5.4 trillion for the 2010-2020 period.

 

Figure 2. Change in energy use (kg of oil equivalent) per $1,000 GDP between 1990 and 2014

Brown-to-green subsidy swaps in MENA are long overdue
Source: Data from World Bank, author’s calculations.

62 percent. This is the share of total fossil fuel subsidies households in the top two income quintiles receive in the MENA region. Fossil fuel subsidies are ineffective in reducing poverty and inequality and can, in fact, lead to more inequality and poverty in an economy by shrinking fiscal space of governments, increasing budget deficits, and heightening inflation rates.

According to a 2015 International Monetary Fund study, MENA households in the top quintile received about 40 percent of all fossil fuel subsidies, while only 9 percent of these subsidies reached those in the bottom quintile.

Fifteen out of one hundred. This is the share of MENA’s entire female population that have formal jobs. It must be noted that, in many MENA economies, women’s labor participation and employment in informal sectors are larger than the formal sector. Gender-related inequalities in many MENA countries represent themselves in many forms and have deep roots in the region’s culture. While there are significant inter-country variations—for example, female labor force participation rates between the ages of fifteen to sixty-four range from 6 percent in Yemen, to 23 percent in Saudi Arabia and Morocco, and 58 percent in Qatar—overall, the remaining cultural biases against female participation in the labor force and the type of industries and jobs deemed “appropriate” for women to work in have translated to significantly less employment opportunities for women, especially young women, across the region.

Only 10 percent of female youths participate in the formal labor market (Figure 4). Even then, 47 percent of female youth are without a job (Figure 5). In other words, only 5.3 percent of female youths in the MENA region are working compared to 30 percent of male youths (Figures 4 and 5). This is especially worrying, as women’s very low participation rate in MENA’s formal labor force—18 percent for females fifteen and above—has meant that less than half of the region’s adults actively participate in the region’s formal labor market. This creates a significant drag on the economy, especially as the region’s population ages in the next few decades.

 

Figure 4. Labor force participation rates by gender, MENA vs. World (Percentage), 2020.

Brown-to-green subsidy swaps in MENA are long overdue
Source: World Bank.

Figure 5. Unemployment rates by gender, MENA vs. World (Percentage), 2020.

Brown-to-green subsidy swaps in MENA are long overdue
Source: World Bank.

5.7 million. This is the number of net full-time equivalent (FTE) jobs that could have been created in MENA if half of the region’s 2010-2020 explicit fossil fuel subsidies was channeled to the renewable energy sector. Studies show that redirecting $1 million from fossil fuel subsidies towards the renewable energy sector will create five net FTE jobs in an economy. Considering MENA’s immense solar and wind potential, this number is on the conservative side for the region.

Therefore, if only half of 2010-2020 explicit pre-tax fossil fuel subsidies ($1.14 trillion) were directed towards subsidizing the renewable industry in the region, it could have created 5.7 million net jobs in the region over the past decade, according to my calculations. These millions of extra jobs would have been the jobs of the future: all green and the majority in high tech. This would have helped jump-start the region’s high-tech startups, employ the educated and tech-savvy youth of the region, and reduce overreliance on public sector employment. This is critical because, with limited revenues and rapidly rising populations—two-third of the region’s population is below the age of thirty-five—and expenditures, many governments in MENA—especially those in larger countries—have failed to keep up with the growing demands for jobs, resulting in high unemployment rates, especially among the youth.

Channeling all or a portion of fossil fuel subsidies towards the renewable energy sector—also known as brown-to-green subsidy swaps—will not only create much-needed jobs in the region, but will also promote energy efficiency and reduce air pollution and the many costs associated with it, including illnesses and premature deaths. The positive social effects of such massive job creation in MENA’s green and high-tech sector will also be significant. For one, the renewable energy industry is more gender equitable. Available data suggests that, globally, women account for 22 percent of the oil and gas industry workforce, while this number jumps to 32 percent in the renewable energy industry.

This impact would be more pronounced in MENA because almost the entire oil and gas industry in the region is male-dominated. Hence, subsidizing the oil and gas industry simply translates to subsidizing industries that are overwhelmingly male-dominant and less female-friendly, exacerbating and reinforcing the cultural barriers for female employment in the MENA region. Therefore, reducing fossil fuel subsidies and increasing the growth of the renewable energy sector in MENA would translate to even more employment opportunities for young women in the region compared to world averages.

Moreover, reducing fossil fuel subsidies would have tremendous savings for the MENA region in terms of environmental, health, and other implicit costs associated with subsidizing fossil fuel usage. For example, reducing 2010-2020 explicit fossil fuel subsidies by half would have resulted in about $2 trillion in savings for MENA economies—or about 6 percent of the region’s total economic output in 2010-2020.

Poorer households would be the major beneficiary of these savings; studies show that poorer populations depend more on the environment for their livelihood and shoulder the lion’s share of the health, economic, and environmental costs of fossil fuel subsidies.

Thus, in the medium to long run, reducing fossil fuel subsidies will benefit the poor much more than it can hurt them, leading to improvements in MENA’s increasing levels of multidimensional inequality. In the short run, any reforms to fossil fuel subsidies will lead to price increases across the economy, negatively impacting the poor. In response, governments must enact targeted social protection policies that would mitigate negative short-run impacts of fossil fuel subsidy reductions or removals.

To conclude, reforms in fossil fuel subsidies can help address many challenges and could result in many benefits for the MENA region. However, such reforms have faced serious obstacles in the region and have often led to social unrest and public resentment in various countries. Social unrest and violent protests in Iran in November 2019 and Lebanon in 2021 are cases in point. On the other hand, in 2006, Indonesia successfully eliminated most gasoline and diesel subsidies and channeled the resulting savings to finance economic and social development.

Considering their many environmental, economic, and social benefits, following Indonesia’s model of brown-to-green subsidy swaps could help reduce public resistance against such reforms, while also paving the path for a more energy-secure future in MENA and other regions. Of course, this will not be an easy reform process, but leaders in the MENA region must take it seriously and start looking into the details considering the specific political-economic environments of their countries.

 

Figure 6. Potential benefits of reducing/eliminating fossil fuel subsidies

Brown-to-green subsidy swaps in MENA are long overdue

Amin Mohseni-Cheraghlou is a macroeconomist with the GeoEconomics Center and an assistant professor of Economics at the American University in Washington. Follow him on Twitter: @AMohseniC.

Further reading

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