Introducing Social Protection in the Middle East and North Africa: Prospects for a New Social Contract?

Posted: 17 Jan 2020

See all articles by Markus Loewe

Markus Loewe

German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE)

Rana Jawad

Independent

Date Written: January 2, 2019

Abstract

The introductory article of this special issue looks at the genesis, characteristics and challenges of social protection schemes in the Middle East and North Africa (MENA). It argues that social protection policies in the MENA should be seen as a key ingredient of the social contract that governments offered to their citizens after independence. To compensate for the lack of political participation and accountability, free public health and education systems, generous food, energy and water subsidies, social insurance and assistance schemes and mass public‐sector employment were established. This was possible because MENA countries benefitted from substantial windfall profits (from the export of oil, gas and minerals; Suez Canal user fees), as well as from income from remittances from migrant workers and income from politically motivated aid. The decline of income from some of these sources and population growth has led MENA governments to focus more closely their social protection spending on strategically important social groups: typically, the urban upper middle class. As a result, social protection systems in MENA countries currently suffer from severe weaknesses in terms of social fairness, efficiency and sustainability. Although MENA countries still spend a very considerable share of gross domestic product on their social protection schemes, these have only very limited effects on the reduction of poverty, vulnerability and inequality – and some even exhibit perverse “bottom‐up” redistributive outcomes. The articles that comprise this special issue selectively spotlight a number of opportunities and challenges for the development of sustainable social protection in the MENA countries.

Keywords: Social protection, social security, social policy reforms, Middle East and North Africa, Arab countries, social insurance, commodity subsidies, health systems.social transfers, social assistance, poverty, vulnerability, redistribution

JEL Classification: H21, H24, H51, H53, H55, I11, I13, I14, I31, I38, J46

Suggested Citation

Loewe, Markus and Jawad, Rana, Introducing Social Protection in the Middle East and North Africa: Prospects for a New Social Contract? (January 2, 2019). Available at SSRN: https://ssrn.com/abstract=3512652

Markus Loewe (Contact Author)

German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE) ( email )

Tulpenfeld 6
Bonn, 53113
Germany
+49 0 228 94927 0 (Phone)
+49 0 228 94927 130 (Fax)

HOME PAGE: http://www.die-gdi.de/CMS-Homepage/openwebcms3.nsf/(ynDK_contentByKey)/ENTR-7ARHJ3?OpenDocument&nav=

Rana Jawad

Independent

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