This article studies the impact on aggregate economic activity of increases in defense purchases which are unrelated to other developments in the economy. The authors use empirical evidence to evaluate the predictions of several prominent models.

Introduction: Arab Development via the Channels of War and Oil / A. Kadri. - PART I: POLITICAL ECONOMY. - 1. Egypt: Failed Emergence, Conniving Capitalism, Fall of the Muslim Brothers, A Possible Popular Alternative / Samir Amin. - 2. The Failure of Arab Macro Policy / Fadle Naqib. - 3. The...

Chapter One: Introduction -- Chapter Two: Looking Back at How Egypt Got to Today -- Chapter Three: Navigating the Storms -- Chapter Four: Achieving Sustainable and Inclusive Growth -- Chapter Five: The Way Forward.