The Inequality Gap Widens

Report: 1 to 15 March 2021

A symbolic representation of the Middle East.

ME nations still struggle to receive their doses of vaccines, while bearing the economic burdens they have dragged over the years. Local political classes continue to relish in their offices, luxury homes and warm palaces, while hungry cries fill the street. This is just another day in an unequal Middle East.

1. The socio-economic situation

Egypt

Corona cases, deaths and recovered are distributed as follows:

-190,924 corona confirmed cases

-147,234 recovered

-11,300 deaths

Prime Minister Mostafa Madbouli asserted that the government's current focus is to restore the economy to rates prior to the coronavirus pandemic and implement development plans according to outlined priorities, Feb 25, 2021. (Egypt Today).

In line with the nation’s policies to develop its economy, Egypt attracted a number of investments during the beginning of this month. For instance, The Japanese government has allocated 240 million dollars to Egypt through its international cooperation agency, JICA. The funds are intended to support the green economy and the development of renewable energies in this North African country. This demonstrates Egypt’s willingness to appeal to first world nations’ desire to transform their local economies to more sustainable and environmental-friendly models. Moreover, being on good terms with Arab states, ME nations seem in favor of nurturing Egypt’s economy. One recent instance we can mention, is the statement released by the National Bank of Kuwait (NBK) which expected Egypt’s economy to improve further in the coming quarters, in hopes of sustainable progress in the vaccination campaign and a faster recovery in the global economy.

Jordan

Corona cases, deaths and recovered are distributed as follows:

-477,053 corona confirmed cases

-396,195 recovered

-5,346 deaths

Soldiers surround His Majesty King Abdulla II as he visits the hospital where 7 deaths were recorded. March 14, 2021. (https://www.scmp.com/).

In a move aimed to accelerate IMF-guided reforms seen as crucial to Jordan’s economic recovery from the coronavirus pandemic, Prime Minister Bisher al-Khasawneh reshuffled his cabinet. However, his move was short met by the resignation of Health minister Nazir Obeidat, over the deaths of 7 people due to oxygen shortages. To make things worse, the Kingdom suspended religious services and extended curfew hours to face the growing toll of the pandemic. With the outrage resonating in Jordan, the spread of corona, and the maimed economy, the Kingdom will have a hard time recuperating.

The vaccination issue is another problem on its own. Jordanians have become critical of what they see as a slow government response in administering vaccinations, a process that began in January. According to the Johns Hopkins University Coronavirus Resource Center, only 150,000 doses have been administered so far and only 30,000 Jordanian are fully vaccinated. By early March only 450,000 Jordanians and residents had registered to receive the vaccination.

Iraq

Corona cases, deaths and recovered are distributed as follows:

-758,184 corona confirmed cases

-685,770 recovered

-13,751 deaths

An Iraqi policeman walks by a mural depicting Pope Francis on the outer walls of Our Lady of Salvation (Sayidat al-Najat) Church, in Baghdad on February 22, 2021. (AFP).

There is no doubt the Pope’s visit was the main headline in Iraq and throughout the Middle East. His visit came during a delicate phase where suffering is mounting in the country. As such, his March 5-8 trip came to boost morale and direct international attention to the ignored postwar country. Such a visit was a godsend as oil revenues which are currently at 82 million per month continue to decrease, corona runs rampant, and an unstable political/security situation intertwines the country. Nevertheless, Pope Francis’s visit brought hope to the thousands of Christians, whose presence is important for the stability of the country and the region.

Lebanon

Corona cases, deaths and recovered are distributed as follows:

-418,448 corona confirmed cases

-328,706 recovered

-5,380 deaths

Just another roadblock in the capital… (Mohamed Azakir/Reuters).

During this month, the country accelerated towards total ruin, as the dollar with respect to the Lebanese LBP increased dramatically. Likewise, inflation hit the country like never before when oil and food prices jumped to high levels. As a result, demonstrations broke to the streets again, closing off main roads. During the process several fell injured while two fell victims because of a road block. Meanwhile, security officials are warning of increased criminal activity such as theft due to the deteriorating economy. Also, they have issued a warning that the state of the armed forces and the rest of its security services are exhausted, overburdened, and under paid. Fearing further instability and losing control of the streets, a bill was proposed to provide citizens working in the armed forces with 1,000,000 LBP per month. However, this moves seems to forsake two major factors: First, the government’s treasury is nearly empty. Secondly, the Lebanese Lira continuously depreciates. With the rate at which the LBP is losing its worth, such a solution is obviously a failure. As such, with detreating socioeconomic conditions, the security situation in the country will eventually implode.

Palestine

Corona cases, deaths and recovered are distributed as follows:

-211,602 corona confirmed cases

-187,634recovered

-2,293 deaths

Palestinians wearing protective masks maintain social distancing while waiting in ATM line during the coronavirus (COVID-19) pandemic in Gaza City, Gaza on 1 September 2020. (Ali Jadallah - Anadolu Agency).

 As the Palestinian economy is in stagnation, the US pledged to renew financial assistance to the Palestinians at an international donor meeting. This is great news for a country that is already under economic siege.

During the Trump administration era, the US president cut financial support to the tiny nation, dealing a huge blow to its development plans. Now that Biden has come to office, Palestinians do hope that he will keep his promises and undo what had been done. Another positive implication that resulted from the meeting, is the agreement of EU countries to mobilize additional funding of up to €20m to help with vaccination.

Also, the World Bank approved a grant of $11 million for job creation in Palestine, in response to the economic impact of Covid-19. The investment is set to target the private sector and offer support to vulnerable workers, while also seeking to create more working opportunities for women.

Syria

Corona cases, deaths and recovered are distributed as follows:

-14,863 corona confirmed cases

-978  recovered

-8,679 deaths

Syrian 500-pound bill, Bank Note News.

Desperation brews within the confines of Syria as people from different social classes struggle to make ends meet. The government doesn’t seem invested in solving this problem when war continues to exhaust its resources. Turkey is in the north, illegally occupying and annexing its territory. The United States has a small military presence in the northeast that underpins Kurdish forces in a region where major oilfields are located and much of the country's wheat was grown. Moreover, the country is exhausted as economic tides drown the population. The recent issuance of the new 5000 Syrian Pound note, is horrifying reminder of the hyperinflation Syria is witnessing. In Damascus, some residents say that signs of economic strain are everywhere. Even in areas which are considered affluent witnessed a surge in beggars and homeless people.

Cyprus

Cyprus’s recovery phase is slow but is at least progressing upwards.

Corona cases, deaths and recovered are distributed as follows:

-39,869  corona confirmed cases

-2,057 recovered

-240 deaths

The statistical service (Cystat) recently announced that the economy had shrunk by almost 5.1%  and that €1.1bn was lost as a result of the coronavirus. Cystat also stated that unemployment in Cyprus in 2020 rose to 7.6 per cent. These are figures the government want to avoid in 2021, especially when it is trying to get a head start for summer. To that end, Finance Minister Constantinos Petrides pledged the government will continue to support coronavirus-stricken economic activity to reduce high unemployment and fix stressed public finances. Even Cypriot President Nicos Anastasiades expressed that “Today we can speak with greater optimism and confidence about a dynamic restart of the economy and we can speak of a stable prospect of rapid recovery.”

As such, things are looking good for Cyprus, as vaccination is underway as planned. There are even rumors that Cypriot government might start in May vaccinating British tourists.

Communication and Public Relations Department