Public Finance in the Arab Countries

The structure of public finance in the Arab countries has certain peculiar characteristics that deeply affect the conduct of economic policy and prospects for development. Oil revenue is by far the most important source of government finance in many countries. Non-oil producing countries also benefit from it in various forms: direct subsidies, transit tolls for passage through the Suez Canal or pipeline transportation, migrants' remittances. The latter do not accrue directly to the state treasury, but are indirectly taxed mainly through customs duties, as they cause an increase in the demand for imports.

Rapporto preparato dall'Istituto Affari Internazionali (IAI) e finanziato dall’International Development Research Centre (IDRC). Lo studio integra il programma di ricerca interdisciplinare IAI sui fondamenti e la natura degli stati arabi, "Nation, State and Integration in the Arab World". Capitoli 1-2, 6 e 8-9 pubblicati anche in Hazem Beblawi and Giacomo Luciani (eds.), The Rentier State, London/New York, Croom Helm, novembre 1987. Capitolo 3 pubblicato anche in Giacomo Luciani and Ghassan Salamè (eds.), The Politics of Arab Integration, London/New York, Croom Helm, febbraio 1988.