Amid riots in Tunisia and Egypt, several Arab countries have taken steps to prevent similar problems, increasing wages and subsidies on commodities. But these initiatives could eventually be harmful to their economies, experts said.
"Subsidies are needed today for the short-term political survival," said Said Hirsh economist at Capital Economics, based in London. But they may damage the public finances of these countries in the months and years ahead, put it on hold.
But the economic aspect is not negligible in countries where many live in poverty. In Jordan, the government announced $ 550 million (404 million euros) in subsidies on basic commodities like fuel, rice and sugar. It is "a step in the right direction," Judge Leila Rousan, a bank employee of 28 years. Jordan faces a dilemma: pursue a policy of social peace at the expense of its debt or continue as before at the risk of displeasing its population. The Jordanian economy, which derives much of its revenue from foreign investment and tourism, has a record deficit of $ 2 billion (1.5 billion euros) over the fiscal year, rising inflation and high unemployment and poverty.
In the wake of the "jasmine revolution" in Tunisia and the revolt in Egypt, Jordan, Yemen and Syria have announced a series of measures to calm the discontent related to decades of economic injustice: Higher subsidies on food and fuel, higher wages or lower taxes. In Egypt and Tunisia, similar announcements were not enough to defuse popular anger, due in large partly to other factors such as corruption and autocratic rule.
smaller demonstrations were held in Egypt in the country, and King Abdullah II dismissed the government to prevent a rise in protest. But recent events have shown the economic vulnerability of Jordan. The rating agency Moody's downgraded a series of notes on the country. 
"We think that current troubles will reduce the prospects medium-term growth of Jordan, and degrade the public finances, "said Luc Marchand, an analyst at Standard & Poor's. Yemen, the poorest country in the Arabian Peninsula, has decided to increase salaries up to 25% one million civilian employees and military personnel at a cost of $ 415 million (305 million). Sana'a also announced the creation of 60,000 jobs for young graduates. For its part, Syria has announced a plan of $ 255 million (187 million) for the poor, noting that the monthly assistance for heating oil will increase from 20 to 32 dollars (14.70 at 23.50 euros) per month, the first such increase since 2001.
In Tunisia and Egypt, economic measures were also taken. The Egyptian authorities have approved such an increase of 15% for civil servants' salaries and pensions as of April 1, measures whose cost is estimated at 6.5 billion Egyptian pounds (811 million) by the Ministry Finance.
Cairo has also promised to support the rise in world food. The food price inflation, which reached 17% in one year in Egypt, is considered a key factor in the unrest in the country.
Egypt has seen several of his notes degraded by the three international agencies rating. But for the poor in the region, the focus is somewhere else. "The only thing I care is to feed my children," said Mahmoud Abu-Shilbayeh, 45, a dustman in Amman.
Associated Press
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