The tragic events of 9/11 and the subsequent war in Iraq have
focused international attention on a nexus of problems involving
economic underperformance, problematic internal politics, and
externalization of domestic dissent in the Muslim world. This book
examines the economics of the Middle East, with the aim of
identifying changes to economic policy that could address at least
the economic component of the challenges facing this part of the
globe. The authors analyze the interaction of trade, productivity
growth, and the political difficulties that may ensue as these
countries move towards greater openness. Relevant comparisons are
drawn from the experience of the transition economies and India on
potentially successful policies and those likely to exacerbate
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