Subsidy reforms in the Middle East and North Africa: Strategic options and their consequences for the social contract

After independence, energy and food subsidies became a cornerstone of the social contracts in Middle East North Africa (MENA) countries. Governments spent heavily to reduce poverty strengthen their own legitimacy. However, as government rents faded, subsidy spending financially unsustainable foreign donors pressed for reforms. Yet, reform has been challenging all governments affect consumers, therefore raising risk delegitimisation. Several publications have analysed reforms various MENA countries, but few systematically impacts on prevailing contracts. This paper shows that key policy field such can nature profoundly distinctly, depending strategy. It assesses processes took place Morocco, Egypt Iran primarily between 2010 2017, thus before United States once more tightened sanctions against COVID-19 pandemic broke out. We argue applied distinct strategies without provoking major unrest reforms, with effect three countries changed quite different ways. Morocco's removed most subsidies, especially those predominantly benefitted middle-class. [...]