FROMFROM THETHE EEDDITORITOR Full Speed Ahead hen this magazine last looked at the Middle ernizing and diversifying the region’s economies. Marwan East and North Africa it saw a region on the Muasher addresses the intersection of economic progress threshold of change. Two years ago, citizens and political change, and Vali Nasr, in a Point of View col- in the Arab world—fired by their ideals and umn, underscores the vital role small and medium-sized Wvisions of a better life—burst across that line, igniting a social enterprises play in a successful democratic transition. In our movement that inspired people around the globe.­ Straight Talk column, IMF First Deputy Managing Director In , Jordan, , Morocco, , and — David Lipton argues that only by opening up will the transi- the so-called Arab countries in transition—people embraced tion countries achieve the broad-based growth their societies change, ushering in a new era. These countries are now rush- so desperately need.­ ing at full speed into the future.­ Elsewhere in this issue, we look at the surge in oil and gas While these countries succeeded in breaking with the past, production in the United States and at how that could shake finding a way forward hasn’t been easy. The transition coun- up global energy markets and profile Christina Romer, for- tries face the difficult task of stabilizing their economic and mer chair of the U.S. Council of Economic Advisers and an political systems and meeting the expectations and hopes of architect of the U.S. stimulus package.­ their citizens. There are competing visions over where to go With this issue, I take over from Jeremy Clift, who has and how to get there, and instability lingers: as this magazine been Editor-in-Chief since 2008 and is moving on to serve as went to press, a surge of street protests in Egypt were marred Publisher of the IMF. Jeremy’s drive and vision pushed F&D by violence and armed conflict continued to roil Syria. The in a new direction, including onto Facebook, where we now economies of the region were struggling to stay on their feet.­ have a community of 75,000 following the debate over global For a quarterly magazine, putting together a special feature economics.­ on a region in the throes of fast-moving change is a chal- I look forward to continuing F&D’s tradition of excellence lenge. This issue of F&D looks at the difficulties of this tran- and to working with the talented people on the masthead sition, focusing on deep-rooted and long-standing forces that here to bring you a thoughtful and provocative lineup of arti- shape the region’s economy and offering options for moving cles on the global economy.­ ahead to achieve strong, inclusive growth.­ Masood Ahmed, Director of the IMF’s Middle East and Jeffrey Hayden Central Asia Department, maps out an agenda for mod- Editor-in-Chief

48 The Comeback The Great Indian Phone Book, Robin Jeffrey and Mexico’s newfound competitiveness helps it regain a Assa Doron share of the U.S. import market it had lost to China 57 Data Spotlight Herman Kamil and Jeremy Zook Inclusive Africa The number of Africans with access to banking departments and other financial services is growing Luca Errico, Goran Amidzic, and Alexander 2 In Brief Massara 4 People in Economics The $787 Billion Question Maureen Burke profiles Christina Romer, former Illustration: pp. 42–43, Seemeen Hashem/IMF. chair of the U.S. Council of Economic Advisers Photography: Cover, Maya Alleruzo/AP/Corbis; p. 2, Salem Krieger/Corbis, 46 Back to Basics Michael S. Yamashita/National Geographic Society/Corbis, Philippe Lissac/ Corbis; p. 3, Imaginechina/Corbis, Michael S. Lewis/National Geographic What Are Structural Policies? Society/Corbis; p. 4, Noah Berger Photography; p. 8, Luis Otero/Hemis/ Monetary and fiscal policies deal with short-term Zumapress.com; pp. 8–9, iStockphoto.com/Lorna Piche; p. 10, Mohammed economic fluctuations, but an economy’s problems Vifo/UPI/Newscom; p. 12, Chokri Mahjour/Zumapress.com; p. 14, Adham often go deeper Khorshed/Demotix/Corbis; p. 18, Ali Arkady/Metrography/Corbis; p. 22, Bilal Khaled Abdel-Kader Hussein/Associated Press; pp. 26–27, Dirk Panier/arabianEye/Corbis; p. 30, Michael Spilotro/IMF; p. 32, Kadari Mohamed/Xinhua/Zumapress.com; p. 33, 53 Book Reviews Phil Weymouth/Bloomberg via Getty Images; p. 34, Orlin Wagner/Associated The Battle of Bretton Woods: John Maynard Keynes, Press; p. 38, iStockphoto; p. 48, Keith Dannemiller/Corbis. Harry Dexter White, and the Making of a New World Order, Benn Steil Read online at www.imf.org/fandd The Bankers’ New Clothes: What’s Wrong with Banking and What to Do about It, Anat Admati Visit F&D’s Facebook page: and Martin Hellwig www.facebook.com/FinanceandDevelopment

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