Social protection and labor market policies during the COVID-19 pandemic in the MENA region

Abstract

Drawing upon theories of social welfare, institutional economics, and counter-cyclical policies, this chapter examines the MENA region’s social protection and labor market responses to the COVID-19 crisis. Employing AI-assisted data extraction techniques, the study uncovers a striking diversity in policy approaches across MENA countries, thus negating the applicability of a one-size-fits-all strategy in this diverse region. Specifically, GCC countries, buoyed by oil revenues, have gravitated towards universal welfare measures. While effective in the short term, these strategies elicit concerns regarding their long-term sustainability, particularly as these nations undergo economic diversification. Conversely, countries in North Africa and the Levant, constrained by limited economic resources, have implemented more targeted interventions. While these targeted approaches are agile, they often fall short in terms of scalability and inclusivity, neglecting minority groups and overlooking long-term sustainability. The chapter concludes by emphasizing the imperative for flexible, sustainable, and equitable social welfare systems, especially when confronted with global challenges of an unprecedented scale, such as the COVID-19 pandemic. These insights substantially enrich the wider discourse on labor economics and social welfare, offering invaluable lessons for other regions facing similar challenges.