Subsidy reforms in the Middle East and North Africa. strategic options and their consequences for the social contract

After independence, MENA countries relied on energy and food subsidies to reduce poverty and bolster legitimacy. As these became unsustainable, reforms faced challenges due to potential government delegitimization. This paper analyzes subsidy reforms in Morocco, Egypt, and Iran from 2010-2017, highlighting distinct strategies and their impacts on social contracts. Morocco engaged in dialogue and preserved its social contract, while Egypt's radical dismantling led to repression and a shift to a protection pact. Iran's cash transfer scheme created a more inclusive contract despite challenges. Lessons from these reforms are vital for post-COVID-19 recovery strategies.