This book examines the relationship between demographic growth and economic development in Egypt, Iraq, Jordan, Morocco, the Palestinian Territories, Saudi Arabia, Syria, and Tunisia. It shows that, despite a slowdown in demographic growth, the labor force is increasing rapidly because of the change in the age structure of the population. This is known as demographic transition, a phenomenon that has enhanced economic growth in other parts of the world. In the Arab world, however, many of the opportunities presented by demographic transition are being lost, which results in serious threats to the political stability of the region.

The main reason for this situation is that the region has missed out on the Industrial Revolution that has spread through Europe, North America, East and Southeast Asia, and now to India since the nineteenth century. Demographic growth, albeit at a decelerating rate, and the change in population age structure against a background of slow job creation is a major cause of political instability and even terrorism. This poses severe challenges for all Arab countries, despite the differences between their economies. This book goes beyond the conventional analysis of demand and supply to ask two closely related questions. The first is why did governments act so slowly in response to the problem of unemployment, given the danger that it poses for social and political stability? The second question is why has the response been similar in very different economies? Answers are provided using new literature in economics and economic history.