Food and Global Crises impacts on Middle East and North African Region: What lesson can we learn for the future?

The recent crises concerning food and finances highlight the extreme fragility of the MENA countries and question the sustainability of the development processes. The economic and social impacts of these crises on the economies of the MENA region signal the magnitude of the challenges facing the region and the need to reorient its development policies. This paper intends to provide a comprehensive analysis of economic and social impacts of the two crises to help understanding, on one hand, the magnitude of the problem facing the region, and the need for a reorientation of the region’s development policies, on the other.Food Crisis, Financial Crisis, MENA Region

Islamic Banking Performance in the Middle East: A Case Study of Jordan

Islamic banking in Jordan started around two decades ago. Since then it has played an important role in financing and contributing to different economics and social sectors in the country in compliance with the principles of Shariah rules in Islamic banking practices. Since there have been limited studies on the financial performance of Islamic banks in the country. The aim of this paper is to examine and analyse the Jordanian experience with Islamic banking, and in particular the experience for the first and second Islamic bank in the country, Jordan Islamic Bank for Finance and Investment (JIBFI), and Islamic International Arab Bank (IIAB) in order to evaluate the Islamic banks’ performance in the county. The paper goes further to shed some light on the domestic as well as global challenges, which are facing this sector. However, this paper used the performance evaluation methodology by conducting the profit maximization, capital structure, and liquidity tests. This paper found that the efficiency and ability of both banks has increased and both have expanded their investment and activities and had played an important role in financing projects in Jordan. Another interesting finding of the paper that these banks have focused on the short-term investment, perhaps this seems to be the case in most Islamic banking practices. Another finding is that the Bank for Finance and Investment (JIBFI) has a high profitability that encourages other banks to practice the Islamic financial system. The paper also found that Islamic banks have a high growth in the credit facilities and in profitability.Islamic banking, Performance, Efficiency, Challenges, Jordan

Foreign Aid and Economic Development in Postwar Lebanon

This paper shows that foreign aid in postwar Lebanon passed through two phases with distinct features that have had far reaching implications for postwar development. In the first phase lasting from 1992-97, foreign aid was mainly channelled towards providing resources for postwar reconstruction projects. The second phase from 1997 to the present witnessed a qualitative shift in foreign aid utilization from reconstruction needs towards financial stability and balance-of-payments equilibrium needs. This shift allowed the government to intervene in the foreign exchange market, maintained balance of payments surpluses during this period, reduced interest rates on public debt instruments and finally provided the necessary liquidity and 'confidence' for the government to continue borrowing funds from local commercial banks and foreign investors. More importantly this shift in foreign aid allowed the government to avoid financial and currency crises in 2002. However, the cost of such a qualitative shift was large in terms of fiscal management, diversion of funds from reconstruction, and the increased dependency of the Lebanese economy on foreign aid for stabilization purposes.foreign aid, postwar reconstruction, post-conflict, Lebanon

How to improve the economic and social performance of Eastern and Southern Mediterranean countries

In this brief the authors analyze the key challenges facing the MED11 countries and propose policy measures that could improve the region’s economic and social performance

Developing SWOT/ TOWS strategic matrix for e-banking in Lebanon

The banking sector of Lebanon has witnessed a significant shift in its performance and services provided over the past years in line with the global transformation in information technology. The diffusion of internet in most of financial sectors has driven the banking sector to adapt new technologies and deliver its services electronically through E-banking. This paper highlights the current state of e-banking in Lebanon and analyzes the secondary data of previous literature to develop a SWOT/ TOWS strategic matrix. Policy makers, Bankers and online banking users can benefit from this study for better understanding and application of e-banking in Lebanon. Future studies can extend the literature and show more evident and updated data in terms of strength, weakness, opportunities and threats facing the e-banking sector in Lebanon or compare it to other countries strategies.peer-reviewe

EXTENSIVE DESCRIPTIVE LITERATURE REVIEW REVEALING THE IMPACT OF BANKING SECRECY ON MONEY LAUNDERING: PROMINENCE ON THE LEBANESE BANKING SECTOR

Worldwide financial institutions face complexity in balancing between business ethical standards on one hand, and the act of competitiveness on the other hand. Thus, while selecting their customers they seek customers that lead them to the optimum position of competitiveness in the market, taking into consideration the act of financial investigation to avoid money launderer customers. Money launderer customers seek to deal with financial institutions to proceed with operating their financial crimes. Therefore, this paper spots the light on “money laundering” alongside with the impact of banking secrecy on money laundering with prominence on the Lebanese banking sector. Thus, in this paper, researchers present an extensive descriptive literature review that discuss in depth prior fundamental studies published since 1970 when banking secrecy was introduced until year 2018. Research limitations and future recommendations are provided at the end of this paper

Euro-Mediterranean Process - Union for the Mediterranean: Macroeconomic and financial developments during the global crisis at the southern rim of the Mediterranean

Although the global financial and economic crisis hurt economies worldwide, the economies at the southern Mediterranean region have done relatively well to weather this global hurricane. Economic growth in the region has slowed down but the size of the trough of these economies' business cycle has ultimately been dependent on the length and vigour of domestic economic policy reactions. Escaping from a difficult period featuring soaring food and oil prices the economies of the southern Mediterranean region are faced with new challenges that impact both their real and financial sectors, as negative effects from their real sector spilled over to their financial sectors. This chapter analyzes recent macroeconomic, monetary and financial developments, the use of fiscal, monetary and financial policy instruments, the volatility at their financial markets, trade openness and the imperative need for good governance which is the umbrella under which economic policy instruments are called to operate.Mediterranean union; macroeconomics; global crisis;

Dollarization and Exchange Rate Fluctuations

Although the worldwide growth in dollarization of bank deposits has recently slowed, it has already reached very high levels in dozens of countries. Building on earlier findings that allowed the main cross-country variations in the share of dollars to be explained in terms of national policies and institutions, this paper turns to analysis of short-run variations, particularly the response of dollarization to exchange rate changes, which is shown to be too small to warrant ‘fear of floating’ by dollarized economies. But high dollarization is shown to increase the risk of depreciation and even suspension, as indicated by interest rate spreads. While specific policy is needed to deal with the risks associated with dollarization, the underlying causes of unwanted dollarization should also be tackled.