In recent decades, the Middle East and North Africa region (MENA) has experienced more frequent and severe conflicts than in any other region of the world, exacting a devastating human toll. The region now faces unprecedented challenges, including the emergence of violent non-state actors, significant destruction, and a refugee crisis bigger than any since World War II. This paper raises awareness of the economic costs of conflicts on the countries directly involved and on their neighbors. It argues that appropriate macroeconomic policies can help mitigate the impact of conflicts in the short term, and that fostering higher and more inclusive growth can help address some of the root causes of conflicts over the long term. The paper also highlights the crucial role of external partners, including the IMF, in helping MENA countries tackle these challenges.

Using narrative-based country-case studies, war episodes in the Middle East were examined to assess their economic impact on conflict and neighboring economies. The paper found that conflicts led to a contraction in growth, higher inflation, large fiscal and current account deficits, loss of reserves, and a weakened financial system. Post-conflict recovery depended on the economic and institutional development of the country, economic structure, duration of the war, international engagement, and prevailing security conditions. The net economic impact on neighboring countries varied according to their initial economic conditions, number and income level of refugees they hosted, economic integration, and external assistance.

During the past financial year, the IMF’s 189 member countries faced a number of pressing challenges. IMF work on these challenges - slower trade, declining productivity, gender inequality, inclusive growth, and debt management - is a central focus of this 2017 Annual Report.

‘Food Insecurity and Revolution in the Middle East and North Africa’ studies the political economy of agrarian transformation in the eponymous regions. Examining Egypt and Tunisia in detail as case studies, it critiques the dominant tropes of food security offered by the international financial institutions and promotes the importance of small-scale family farming in developing sustainable food sovereignty. Egypt and Tunisia are located in the context of the broader Middle East and broader processes of war, environmental transformation and economic reform. The book contributes to uncovering the historical backdrop and contemporary pressures in the Middle East and North Africa for the uprisings of 2010 and 2011. It also explores the continued failure of post-uprising counter-revolutionary governments to directly address issues of rural development that put the position and role of small farmers centre stage.

The massive dimensions of Syria's refugee crisis—and the search for solutions The civil war in Syria has forced some 10 million people—more than half the country's population—from their homes and communities, creating one of the largest human displacements since the end of World War II. Daily headlines testify to their plight, both within Syria and in the countries to which they have fled. The Consequences of Chaos looks beyond the ever-increasing numbers of Syria's uprooted to consider the long-term economic, political, and social implications of this massive movement of people. Neighboring countries hosting thousands or even millions of refugees, Western governments called upon to provide financial assistance and even new homes for the refugees, regional and international organizations struggling to cope with the demands for food and shelter—all have found the Syria crisis to be overwhelming in its challenges. And the challenges of finding solutions for those displaced by the conflict are likely to continue for years, perhaps even for decades. The Syrian displacement crisis raises fundamental questions about the relationship between action to resolve conflicts and humanitarian aid to assist the victims and demonstrates the limits of humanitarian response, even on a massive scale, to resolve political crises. The increasingly protracted nature of the crisis also raises the need for the international community to think beyond just relief assistance and adopt developmental policies to help refugees become productive members of their host communities.

Refugees are one of the great contemporary challenges the world is confronting, and the international community struggles to provide adequate responses to refugee needs. Gil Loescher explores the causes and consequences of the contemporary refugee crisis for both sending and receiving states, for global order, and for refugees themselves.

The 2017 Near East and North Africa (NENA) edition of the Regional Overview of Food Security and Nutrition comes under the theme of “building resilience for food security and nutrition in times of conflict and crisis”. The report establishes a baseline against which to measure future progress towards achieving SDG 2 on ending hunger, food insecurity and malnutrition in NENA by monitoring the latest indicators for the SDG targets on hunger and food insecurity (SDG Target 2.1) and malnutrition (SDG Target 2.2). Beyond numbers, the report focuses on the fundamental factors that have driven improvements in food security and malnutrition: poverty reduction, economic growth, improvements in maternal and childhood nutrition and public health, increases in the quantity and quality of the food supply and cessation of violence. Moreover, the report brings into sharp focus the issue of conflict, which is the major driver of food insecurity in the NENA region. Food security in the NENA region is fast deteriorating, driven by conflict and leading to a widening gap in well-being between conflict and non-conflict countries. Conflicts have long-lasting impacts on the food security and nutrition of both affected and surrounding countries in the region. Not only is food security deteriorating in the conflict and spill over countries, but the high costs of perpetrating, containing, preventing and dealing with the consequences of violence undermine their ability to mitigate the decline in living standards.