Globalization and the Arab World

Major Pete Larsen

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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….

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Dimensions of Globalization

Technological:- Internet- Satellite TV- Media- Jet Travel

Economic:- Interdependence- Liberalization- Capital flows- Foreign Investment- Trade

Cultural:- Universalism- Deterritorialization- Westernization

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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

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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)

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Globalization’s converging dimensions

Yusuf al-Qaradawi’s fatwa:

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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

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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...”

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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

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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

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Obstacles and Challenges

The oil curse windfall gains, cycling

Regimes kleptocracies, transparency

Arab Human Development Report

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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

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Islam and development

No direct link…

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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

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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

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GCC and regionalization

Common currency (2010 ?)

United market the more important step

Wage inflation

Unemployment

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Questions ?