POMED Notes: “In the Middle of the Storm: Development and Governance in the Arab World”

On Tuesday, the WoodrowWilsonCenterhosted an event entitled “In the Middle of the Storm: Development and Governance in the Arab World,” which consisted of two panels. The first panel discussed regional Arab reform and featured Tamara Wittes, Deputy Assistant Secretary of State for Near Eastern Affairs; Mara Rudman of the Bureau for Middle East at USAID; and Miriam Allam, a Safadi Scholar and Economist. Lina Khatib, the Co-Founder of the Program on Arab Reform and Democracy moderated the event.

For full event notes, continue reading. Or, click here for the PDF.Wittes began by stressing that the Arab Spring was “not about the United States,” saying that Arab states were writing their own stories. The U.S. must be responsive to the situation on the ground in these countries, she insisted, and said that the U.S. should engage the Arab world based on several core principles, including human rights, democracy, and “values that sustain democracy.” Wittes told the audience that the American government ought to use “all policy tools” at its disposal to assist the states affected by the Arab Spring, including trade incentives, American private sector strengths, and diaspora communities, among others.

Rudman continued the discussion by detailing USAID’s work in the Arab world, and she likened the slow change in the region to “turning an ocean liner.” She spoke about USAID’s efforts to respond to citizens’ needs in the region while trying to simultaneously meet American policy objectives. She noted eagerness from Arab youth to play a role in politics, and iterated that the U.S. is in the position to have a “positive impact” on the future of the Middle East. Allam then gave a presentation discussing the role of public consultation in the formulation of legislation and regulation. She said that good regulation is based on local involvement and stakeholder involvement. Suggesting that public consulting is intended to supplement government work, not replace it, Allam said that it is important to formulate a forum for debate to strengthen legislative work. She noted that public consultation may lead to consensus building, leading to reconciliation of competing interests, which is particularly valuable in the countries of the Arab Spring. Allam also suggested that public consultation in theMiddle East may resemble lobbying and there is little room for feedback.

The second panel, entitled “Energy Reform and Economic Development in the Arab World,” featured Robert D. Hormats, Undersecretary of State for Economic, Energy, and Agricultural Affairs; Inger Andersen, Vice-President of the Middle East and North Africa at The World Bank; and Katarina Uherova Hasbani, the Safadi Scholar of the Year. John D. Sullivan, Executive Director of the Center for International Private Enterprise moderated the event.

After a brief introduction from Sullivan, Hormats suggested that the U.S. has an opportunity to “step up” and be supportive of the Arab Spring through various policy measures. He reiterated the United States’ commitment to a “partnership with the people of the Middle East” and their democratic aims. Stressing the necessity for infrastructure modernization, Hormats stressed the need for the region to push economic and political reforms, as well as efforts to combat corruption that plagues the broader region.

Andersen then spoke about the need for self-sufficient enterprises in the Middle East, emphasizing the need for better management efficiency in various industries as well as stronger and clearer regulation. State owned enterprises dominate much of the region, Andersen said, but many are in dire need of restructuring and anti-corruption efforts. Without improvement, it will be difficult to attract foreign investment. She noted that the World Bank assists in the reform process, primarily through targeted subsidies that can function to free up additional resources for particular industries. Finally, Andersen spoke of the need for increased social inclusion, to which the World Bank is attempting to contribute.

Habani finished the discussion by detailing her research of electricity outages in Lebanonand their relationship to politics. She suggested that power shortages and 3-12 hour blackouts are directly related to mismanagement of the power sector, and that the blackouts have been detrimental to Lebanese businesses. The electricity issues lead to further class divides, Habani argued, since upper classes can afford to supplement their homes with generators during power outages. Lebanon’s political crisis has also prevented the country from addressing the issue, and the problem is rarely mentioned in political campaigns. Due to the issue’s lack of prevalence in national discussions, she contended that Lebanese citizens do not fully grasp the impact of the electricity mismanagement.