Globalization and the Arab World Major Pete Larsen

Defining Globalization n 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. ” n Al-awlama: increasing levels of interdependence over vast distances along, cultural, environmental, and political dimensions…. Globalization and the Arab World 2

Dimensions of Globalization Technological: - Internet - Satellite TV - Media - Jet Travel Cultural: - Universalism - Deterritorialization - Westernization Economic: - Interdependence - Liberalization - Capital flows - Foreign Investment - Trade Globalization and the Arab World 3

Dimensions of Globalization Technological: - Internet - Satellite TV - Media - Jet Travel Cultural n The Muslims fall into three globalization camps: Cultural: - Universalism n Those that - Deterritorialization - Westernization Economic embrace n Those that are positively neutral n Those that oppose Globalization and the Arab World Economic: - Interdependence - Liberalization - Capital flows - Foreign Investment - Trade 4

Those that oppose Globalization = Americanization = Secularization = Westernization = Imperialism = Loss of identity n Contributing factors: n Iraq, Saudi Arabia, Palestine, Afghanistan, Oil n Mc. Donalds, sex, crime, violence, MTV…. n Orientalism (Bernard Lewis, Samuel Huntington) n History (Crusades, colonization, imperialism) n Events (Danish Prophet Cartoons, Rushdie) n Policy (Dubai ports deal, Citicorp backlash) Globalization and the Arab World 5

Globalization’s converging dimensions Yusuf al-Qaradawi’s fatwa: Globalization and the Arab World 6

Anti-Americanism / Anti-Globalization n The poll data: n Favorable of the US (Turkey) = 7% n Desire US leadership in world (Europe) = 37% n US is serious about democracy (Egypt) = 16% n Americans are oblivious to this n Anti-Americanism makes strange bed fellows Globalization and the Arab World 7

Anti-Americanism / Anti-Globalization n Adil Husayn (leader of Muslim Brotherhood): “Western media is brainwashing the Muslim mind” n Egyptian scholar: “your globalization, Oh you braggarts, is an artificial hegemony, a despotic authority, an oppressive injustice and a pitch black darkness. ” n 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 8

Anti-Americanism / Anti-Globalization n Economic dimension also opposed n “Fordism” to “millennial capitalism” – Mead n US influence on international aid n Resentment of rich Americans n Islamists are providing social capital Globalization and the Arab World 9

Economy n 1 in 5 Arabs live on less than $2 a day n Population exploding, but labor is not (22% unemployment) n No wage / tech comparative advantage n Weak global linkages Globalization and the Arab World 10

Obstacles and Challenges n The oil curse windfall gains, cycling n Regimes kleptocracies, transparency n Arab Human Development Report Globalization and the Arab World 11

Arab Human Development Report n Legitimate wake-up call n Written by Muslims n One million downloads in 2002 n Findings: n n n Freedom deficit Women’s empowerment deficit Knowledge deficit Globalization and the Arab World 12

Islam and development n No direct link… Globalization and the Arab World 13

FDI and Trade n Between 2000 and 2006 US FDI increases 57% n “Davos for the Middle East” n Sovereign Wealth Funds n Abu Dhabi = $900 billion n Saudi’s is coming Globalization and the Arab World 14

Middle East Free Trade Area n Bush proposed in 2003 n 2013 Goal n n 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 15

GCC and regionalization n Common currency (2010 ? ) n United market the more important step n Wage inflation n Unemployment Globalization and the Arab World 16

Questions ? Globalization and the Arab World 17