The impact of the financial and economic crisis on Arab states: considerations on employment and social protection policy responses

This policy note is purely intended to provide an assessment of the employment and social protection impact, and to suggest appropriate policy responses.

The first part describes and assesses the impact of the financial and economic crisis on Arab states. It gathers the available evidence on the impact of the financial and economic crisis on the region, focusing mainly on issues with particular relevance for employment and social policies. The policy note makes use of statistical evidence, as far as available, in order to illustrate the
situation before the crisis and the possible impact of the crisis. As the availability of recent information remains a major challenge, this policy note focuses more on the identification of the mechanisms by which the effects of the crisis are transmitted to the regional and country levels.
The second part reviews policy responses in the region and offers some considerations regarding possible pathways to strengthening employment and social protection policies. Such policies would address the consequences of the current crisis, while at the same time establishing resilient institutional mechanisms which contribute to promoting productive employment and providing adequate levels of social protection.
This note complements previous assessments and recommendations on the financial and economic crisis, and puts them into a regional perspective, taking into account the characteristics of countries in the region and the specific challenges they are facing.