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Globalization and the Arab World
Major Pete Larsen
Globalization and the Arab World 2
Defining Globalization
Robert Gilpin: “Globalization has been taking place for centuries whenever improvements in transportation and communications have brought formerly separated peoples into contact with one another.”
Al-awlama: increasing levels of interdependence over vast distances along, cultural, environmental, and political dimensions….
Globalization and the Arab World 3
Dimensions of Globalization
Technological:- Internet- Satellite TV- Media- Jet Travel
Economic:- Interdependence- Liberalization- Capital flows- Foreign Investment- Trade
Cultural:- Universalism- Deterritorialization- Westernization
Globalization and the Arab World 4
Dimensions of Globalization
Technological:- Internet- Satellite TV- Media- Jet Travel
Economic:- Interdependence- Liberalization- Capital flows- Foreign Investment- Trade
Cultural:- Universalism- Deterritorialization- Westernization
The Muslims fall into three globalization camps:
Those that embrace
Those that are positively neutral
Those that oppose
Globalization and the Arab World 5
Those that oppose
Globalization = Americanization = Secularization = Westernization = Imperialism = Loss of identity
Contributing factors:
Iraq, Saudi Arabia, Palestine, Afghanistan, Oil
McDonalds, sex, crime, violence, MTV….
Orientalism (Bernard Lewis, Samuel Huntington)
History (Crusades, colonization, imperialism)
Events (Danish Prophet Cartoons, Rushdie)
Policy (Dubai ports deal, Citicorp backlash)
Globalization and the Arab World 6
Globalization’s converging dimensions
Yusuf al-Qaradawi’s fatwa:
Globalization and the Arab World 7
Anti-Americanism / Anti-Globalization
The poll data:
Favorable of the US (Turkey) = 7%
Desire US leadership in world (Europe) = 37%
US is serious about democracy (Egypt) = 16%
Americans are oblivious to this
Anti-Americanism makes strange bed fellows
Globalization and the Arab World 8
Anti-Americanism / Anti-Globalization
Adil Husayn (leader of Muslim Brotherhood): “Western media is brainwashing the Muslim mind”
Egyptian scholar: “your globalization, Oh you braggarts, is an artificial hegemony, a despotic authority, an oppressive injustice and a pitch black darkness.”
Sec Gen al-Turki, in front of Muslim World League: “misfortune will spread all over the world if globalization succeeds...”
Globalization and the Arab World 9
Anti-Americanism / Anti-Globalization
Economic dimension also opposed
“Fordism” to “millennial capitalism” – Mead
US influence on international aid
Resentment of rich Americans
Islamists are providing social capital
Globalization and the Arab World 10
Economy
1 in 5 Arabs live on less than $2 a day
Population exploding, but labor is not (22% unemployment)
No wage / tech comparative advantage
Weak global linkages
Globalization and the Arab World 11
Obstacles and Challenges
The oil curse windfall gains, cycling
Regimes kleptocracies, transparency
Arab Human Development Report
Globalization and the Arab World 12
Arab Human Development Report
Legitimate wake-up call
Written by Muslims
One million downloads in 2002
Findings:
Freedom deficit
Women’s empowerment deficit
Knowledge deficit
Globalization and the Arab World 13
Islam and development
No direct link…
Globalization and the Arab World 14
FDI and Trade
Between 2000 and 2006 US FDI increases 57%
“Davos for the Middle East”
Sovereign Wealth Funds
Abu Dhabi = $900 billion
Saudi’s is coming
Globalization and the Arab World 15
Middle East Free Trade Area
Bush proposed in 2003
2013 Goal
Steady progress
Jordan $11 million to 1,2 billion in 4 years, FDI in Jordan $680 million to $2.4 billion, 40,000 jobs
Globalization and the Arab World 16
GCC and regionalization
Common currency (2010 ?)
United market the more important step
Wage inflation
Unemployment
Globalization and the Arab World 17
Questions ?