ABSTRACT
In the Middle East the state is often portrayed as playing an all-powerful role, most of the discussion on the economy focusing on government policy rather than on businesses or entrepreneurs.1 Theories on the role of the state were discussed in chapter 2, drawing on the economic development and political economy literature. The aim in this chapter is to focus on the Middle East experience, examining both those issues which are especially important in the region, such as the economic impact of military spending by the state, and issues where the region’s experience parallels that of other developing countries, as in relation to the structural adjustment policies advocated by the International Monetary Fund, economic liberalisation and privatisation.
