“The region has been dramatically—though unevenly—transformed by the privatization and globalization of national economies under the influence of the International Monetary Fund, the World Bank and other advocates of neoliberal policies. Though nominally socialist regimes across the region had begun turning away from statist economic polices in the late 1960s, most Arab states did not begin implementing neoliberal reforms in earnest until the 1980s when the fall in global oil prices precipitated a regional economic slump. For states seeking international loans, monies were conditioned upon shifting economic activity toward export-oriented agriculture, manufacturing, and services as well as selling state-owned corporations to private investors—the standard recipe for structural adjustment. Dismantling the institutions of state-driven development necessarily threatened the professed populism of many of these regimes: Raising the standard of living of people long held down by the colonial yoke was understood to be the first priority of the new regimes. But privatization of industry and agriculture, and the shift to service-based economies, combined with reduced price supports on necessities, rendered life increasingly precarious for urban and rural workers as well as the middle class. Such programs often served parallel regime interests by rewarding political allies with privileged access to formerly public assets and new markets. Even for governments that were not pressured into structural adjustment by supranational bodies (like Bahrain and Syria), privatization was often a means of personal enrichment sold as good liberal economics. In some cases, “privatization” was merely a reorganization of ownership such that certain sectors of the regime remained in control”
An excerpt from David McMurray and Amanda Ufheil-Somers, editors, The Arab Revolts: Dispatches on Militant Democracy in the Middle East. Bloomington: Indiana University Press, 2013. Published in association with Middle East Research and Information Project (MERIP).
Read a longer excerpt here, along with an interview with the editors.