Lower-middle-income Arab nations are increasingly dependent on institutions like the IMF and the World Bank. This is more than a financial arrangement; it's a system of conditionality that shapes national policies, prioritizes debt repayment over social development, and perpetuates a cycle of dependency with profound consequences for millions.
A Decade of Rising Debt (2011-2025)
Since 2011, the external debt burden relative to economic size has grown relentlessly for key nations in the region. The chart below, based on data from the IMF's Regional Economic Outlook, tracks the total external debt as a percentage of each country's GDP, revealing a clear and troubling upward trend for the period 2011-2025.
The Cost of Repayment (2023)
The rising debt translates into a heavy servicing cost. This chart shows the percentage of Gross National Income (GNI) that each country spent on servicing its total external debt in 2023, compared to the average for lower-middle-income countries.
Dependency on IFIs (2023)
In 2023, a significant portion of debt payments was directed specifically to multilateral institutions like the IMF and World Bank. In Morocco, this figure is particularly stark, highlighting the depth of IFI influence on the nation's finances.
Short-Term Liquidity Risk (2023)
As of 2023, a key indicator of financial vulnerability is the ratio of short-term debt (due within one year) to a country's total reserves. A ratio over 100% suggests a potential liquidity crisis, as the country owes more in the short term than it holds in reserve.
A Call for Systemic Reform
The data reveals a system where debt is not just a financial tool, but a mechanism of control. Advocacy efforts are calling for a fundamental reform of the global financial architecture to prioritize human rights and social equity over creditor interests.