ABSTRACT
The combined effect of domestic shocks, resulting from political instability, as well as external shocks from the European financial crisis, exacerbated longstanding socio-economic problems. The impact of poor security conditions, therefore, led to the outflow of foreign direct investment, reduction in tourism receipts and loss of foreign-exchange reserves. North African countries need a new economic model that will foster growth, promote innovation and entrepreneurship, and create jobs. This model needs to be transparent and endorsed by key stakeholders. One of the primary causes of the Arab uprisings was the lack of economic opportunities, exemplified by the iconic image of Mohamed Bouazizi, the Tunisian fruit seller who sparked off the call for action across the region. Job creation requires a myriad of reforms, such as modifying investment regulations and updating labour-market laws, as well as identifying country-specific constraints in meeting rising demand.
