King Abdullah

Analysis: Arab Spring slows, won't stop economic reforms

By Andrew TorchiaWhen Jordanian security personnel surrounded the central bank last month to oust the governor after a dispute over policy, the incident showed how the Arab Spring is threatening economic reforms across the region.

The governor, Faris Abdul Hamid Sharaf, was a vocal supporter of fiscal austerity promoted by the International Monetary Fund . Jordan's government, installed in February as political unrest began to sweep the Arab world, had been spending heavily to buy popular support.In the showdown between technocratic reforms and political expediency, politics won -- a pattern being repeated across much of the Middle East and North Africa as governments sacrifice long-term economic policies to try to ensure short-term stability.That is a disappointment to businessmen and investors around the region. When the Arab Spring erupted in January with the overthrow of Tunisia's president, it offered the prospect of an economic management shake-up that could boost growth and creat...

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