Regulation, trust, and cronyism in Middle Eastern societies: The simple economics of “wasta”

Abstract

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The role of corruption in reintegration: experiences of Iraqi Kurds upon return from Europe

“…jobs, business contracts, speedy bureaucratic processing) based on preferential treatment by people in positions of power, waseets, rather than merit, capability or formal rights. Wasta can be an effective social insurance for individuals, does not require direct reciprocity and may confer prestige on both the waseet and the beneficiary (Barnett, Yandle, and Naufal 2013). However, it can also undermine transparency and the principle of equal treatment.…”

Testing the importance of search frictions and matching through a randomized experiment in Jordan

“…1 As a result, many workers and firms rely on a system of connections known by its name in Arabic, wasta, to fill job openings (Barnett et al, 2013), limiting the set of possible matches. Improvements in search and matching technology then offer the potential to lower unemployment through filling existing vacancies and through inducing firms to create more vacancies as their hiring costs fall.…”

An Evaluation of the Persistence of Blat in Post-Soviet Societies: A Case Study of Ukraine's Health Services Sector

“…Again, most studies in Arab countries reveal a neutral or positive attitude of the population towards its usage (Bailey, 2012;Barnett, Yandle & Naufal, 2013;Kilani & Sakijha, 2002;Mohamed & Mohamed, 2011;Tlaiss & Kauser, 2011). Interestingly, few if any studies call for its suppression, despite the absence of a 'no nepotism' policy in the Arab business world and the widespread use of favouritism, rather than merit, in hiring and promotion decisions.…”