Special to WorldTribune.com

NICOSIA — The Arab world, shaken by major revolts in several countries, has experienced a sharp economic decline.

Leading Middle East bankers have warned that Arab League states were
plunged into what they termed a “state of emergency.” They said the
pro-democracy revolts in such countries as Bahrain, Egypt, Libya, Syria and
Tunisia have eroded budgets and credit ratings.

“It is necessary to announce a state of emergency for Arab economies in
order to reduce the impact [of the revolts] on affected countries, and to
lessen the impact of the world economic crisis on other Arab states,” Arab
Union of Banks chairman Adnan Yusef said.

In an address to the Arab Banking Summit in Beirut on Nov. 24, Yusef
urged the establishment of an aid fund to help Arab states recover from the
civil unrest, which included general strikes. He pointed to a sharp drop in
foreign investment — from $20 billion in 2010 to $4.8 billion this year.

“The economic cost of the ongoing uprisings and the collapse of Arab
regimes are immensely high,” World Union of Arab Bankers chairman Joseph
Torbey said. “If political revolutions in our Arab world are not followed by
institutional reforms, economic and human growth, the efforts of the people
will be in vain and will gave way to feelings of resentment, more poverty,
underdevelopment and extremism.”

The International Monetary Fund also warned of a shrinking Arab economy.
IMF reported that Egypt and Tunisia were expected to reach economic growth
of 1.2 percent and zero in 2011 while Yemen would see its gross domestic
product, or GDP, decline by 2.4 percent.

Torbey called for a so-called Marshall Plan for the Arab world, a
reference to the U.S.-sponsored effort to revitalize Europe after World War
II. He said aid from rich Arab states, an apparent reference to Saudi
Arabia, must be immediate to prevent further deterioration.

“If the crises in the region are prolonged,” Torbey said. “The so-called
Arab Spring might well turn into a harsh economic winter.”

  Adnan Yusef, Arab Banking Summit, Arab Spring, Arab Union of Banks, Bankers warn Arab League countries are in economic ‘state of emergency’, International Monetary Fund