Centralization, Decentralization, and Conflict in the Middle East and North Africa

This paper examines broadly the
intergovernmental structure in the Middle East and North
Africa region, which has one of the most centralized
government structures in the world. The authors address the
reasons behind this centralized structure by looking first
at the history behind the tax systems of the region. They
review the Ottoman taxation system, which has been
predominantly influential as a model, and discuss its impact
on current government structure. They also discuss the
current intergovernmental structure by examining the type
and degree of decentralization in five countries
representative of the region: Egypt, Iran, West Bank/Gaza,
Tunisia, and Yemen. Cross-country regression analysis using
panel data for a broader set of countries leads to better
understanding of the factors behind heavy centralization in
the region. The findings show that external conflicts
constitute a major roadblock to decentralization in the region.