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 Economic Cultural Technological 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 Economic Cultural Technological 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 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 ?