How did policy responses and resilience aid the emerging economies in the MENA region to cope with the global crisis? -

Abstract

This project discusses the impact of the global financial crisis on the Arab counties during the period of 2008-2009. The project proves that increasing the international connections between the world's economic and financial markets will ultimately increase the effects of such crisis especially in countries with higher contacts with the outer world. Throughout the project we will find out that several Arab countries were influenced by the crisis. The effects of this crisis differed from one country to another depending on the nature of its economy, its level of openness, and its level of involvement in the international economy and global market. Several administrations in the MENA region have worked to restore confidence for depositors through proving that their money is safe, so there is no valuable reason for them to worry. As well, many other economic reforms that they've carried out to rescue their economic systems. The project categorizes the Arab countries into three groups relying on their economic formation. The impacts of the crisis extended to the Arab countries due to several local and global factors. The project figured out that the direct influence of the crisis was somehow less striking for the financial sectors for a number of Arab countries because of the squat level of inter-connections between the universal global systems. Finally the most important lesson that can be drawn from the crisis is to avert financial corruptions from obstructing their local financial banking and non-banking sectors. In addition, they are asked to work on reinstating their macroeconomic steadiness and prospective development in order to be able to face the present and future economic and financial crises.