Howard Schneider explains why, despite having half of the world's†oil and a third of the world's natural gas reserves, many Arab countries still†have stagnant economies.
Amid a massive shift in the politics of the Arab world, the countries of the region are now confronting an economic challenge that is just as steep: how to engage with a global economy that in many ways has passed them by.
The nations of the Arab Middle East sit atop perhaps half of the planet's oil and a third of its natural gas reserves, yet the economies of the region are among the most stagnant.
Hundreds of billions of dollars in hydrocarbon wealth and other receipts - for instance, in the case of Egypt, revenue from the Suez Canal and U.S. foreign aid - have propped up undemocratic governments and subsidized swollen public sectors. But little has been done to create globally competitive economies or employment for a burgeoning number of young adults.