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ElEna ianchovichinaWorld Bank AND tina röhricht and ruut vEEnhovEn
Erasmus University RotterdamDespite progress with economic and social development over several decades, life satisfaction was relatively low and declining in many developing Arab countries in the second half of the 2000s-a situation described in this paper as the "unhappy development" paradox. The paper empirically tests the direction and strength of association of a range of objective and subjective factors with subjective well-being in the Middle East and North Africa in the years immediately preceding the Arab Spring uprisings (2009-10). The findings suggest a significant, negative association between life satisfaction levels and each of the main perceived grievances voiced during the 2011 uprisings-dissatisfaction with the standard of living, poor labor market conditions, and corruption in the form of nepotism or cronyism. The increased prevalence of dissatisfaction with the standard of living contributed the most to the decline in subjective well-being during this period, followed by worsening labor market conditions manifested in increased unemployment and decline in self-reported earnings. In addition, perceptions about corruption became more important for people's life satisfaction, particularly in the Arab Spring countries where the uprisings were most intense.JEL Codes: D60, I31, Z13 economies, except the Republic of Yemen, and was low on average. The incomes of the bottom 40 percent, measured as 2005 PPP-adjusted per capita expenditure, grew at higher rates than average expenditures in many developing Arab countries for which information was available (Ianchovichina 2018). The Gini inequality indexes were moderate by international standards and did not worsen in most MENA economies (Ianchovichina 2018). Importantly, over the past decades the region had made notable strides in reaching not only the Millennium Development Goals related to poverty and access to infrastructure services (especially drinking water and sanitation and Internet connectivity), but also those related to reducing hunger and child and maternal mortality, and increasing school enrollment (Iqbal and Kiendrebeogo, 2016).Prior to the Arab Spring uprisings, most developing MENA countries were seen as relatively stable places. Only two MENA countries-Iraq (7th) and the Republic of Yemen (15th) -made it to the top 25 of the 2010 Failed States Index 1 of Foreign Policy. Libya and Tunisia were ranked 111th and 118th of 177 countries, respectively, and so they appeared among the stronger and less fragile countries in the world (Goodwin, 2011). With autocratic rulers in power for many years, the cracks in these countries' models of government remained invisible to most 1 The Failed States Index measures stability based on economic, political, and military indicators. Figure 1a. Satisfaction with Life and GDP per Capita, 2007-10. Note: Numbers are weighted averages for 145 countries. Abbreviations: EGY = Egypt; JOR = Jordan; LBN = Lebanon; MAR = Morocco; WBG = West Bank and...