1 / 26

Myths and Realities of Development Dubai and South Korea

Myths and Realities of Development Dubai and South Korea. Conventional Wisdom of Development. IMF World Bank Neoliberalism Structural Adjustment. Defining Development. How do we measure development? GDP Inequality Social indicators Combination of Factors?. Structural Adjustment.

davina
Download Presentation

Myths and Realities of Development Dubai and South Korea

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Myths and Realities of DevelopmentDubai and South Korea

  2. Conventional Wisdom of Development • IMF • World Bank • Neoliberalism • Structural Adjustment

  3. Defining Development • How do we measure development? • GDP • Inequality • Social indicators • Combination of Factors?

  4. Structural Adjustment • Guarantees of fiscal discipline – no more budget deficits • Reduction of public expenditures • Financial liberalization • Trade liberalization • Promotion of foreign direct investment • Privatization of state-owned businesses • Deregulation of economy • Protection of property rights

  5. East Asian Developmental State • Peter Evans – Embedded Autonomy (1996) • Alice Amsden • Chalmers Johnson • In Taiwan, Japan, and S. Korea, government intervention played a decisive role in promoting economic development. • Shielding Infant Industry • Subsidies

  6. What do you know about the UAE? • Population: 5,432,746 • Confederation made up of the following 7 Emirates: Dubai, Abu Dhabi, Sharjah, Fujairah, Ras Al Khaimah, Ajman, Umm Al-Quwain • Per Capita Income: $37, 941 • World Record Growth Rate of 13.4% between 2000-2005 • Independence: 1971 • Largest Sov. Wealth Fund in the world: 875 Billion • Real GDP in 2006: 175 Billion • Ethnic Diversity: 19% Emirati, 23% Arab and Iranian, …

  7. What did Dubai look like 50 years ago?

  8. Population: 30,000

  9. Population: 1.2 million

  10. Dubai Model of Development • Government led Development • Fast Decision Making • Flexible Labor Force • Leapfrog Industrialization • Internationalization of Service Provision • Supply Generated Demand (‘first mover’) • Market Positioning via Branding • Development in Cooperation with world class partners

  11. Government Led Development • The Executive Office (TEO) • Five men including the ruler oversee development initiatives (Sheikh Mohammed, Sheikh Hamdan, Mohammad Bin Ali Al Abbar, Ahmed Bin Sulayem, Mohammad Abdallah Al Qarwawi) • Dubai World, Dubai Holding, Emaar, Dubai Municipality • Centralized decision-making • Decisions are made quickly without the need for consultation • Exemplified in the construction boom

  12. Interview with CEO of Dubai Dry Dock Geoff Taylor “If I want to spend 40 million dollars on an extension of the repair facilities here at the Dry Dock, I will pass the request to the head of Dubai World, Mr. Sulayem who is right under Sheikh Mohammed. Usually I will get an answer within 30 minutes. In England I would have to wait 5-6 months for the request to go through various assessments and boards. Here they are much more forward thinking, dynamic, and a lot more trusty. They trust that the person who runs the businesses generally tends to understand the business, and as such are in the best position to see business opportunities.”

  13. Flexible Labor Force • The Dubai government can import specialized labor quickly-- without any bureaucratic or logistical hassle. • Construction workers • Consultants • Highly Skilled Workers

  14. Bypass Industrialization • EPZ • Development of a Service Economy (knowledge economy) • Tourism • Health Tourism • Film Industry • Financial Services Hub • Biotechnology

  15. Internationalization of Service Provision • Due to the small size of its domestic market, growth requires expansion overseas • Active acquisition of businesses that fit Dubai’s strategic profile • Dubai Ports World • Emaar (Gated Communities) • Emirates Airlines (Regional Logistics Hub)

  16. Supply Generated Demand Martin Hvidt: “All businesses grapple with the question of when to invest. There are two general answers to this question: Either wait until the demand for the good or service on wishes to sell is present, or simply to supply the goods or services and let it generate its own demand.” Risky and would not be possible without public/private partnership Dubai Internet City Media City Palm Islands The World Dubai Land

  17. Market Positioning via Branding • What makes Dubai such an attractive location for tourists? • Construction of Iconic Buildings

  18. Development with world class partners • Dubai Health Care City – Mayo Clinic and Harvard Medical School • Hotel Sector – Internationally respected partners collaborate such as Hilton, Sheraton, and Hyatt

  19. Economic Logic of the Dubai Model • Service Provision • Private Education for Expat Children • Electricity • Telecommunication • Visa Renewal • Licensing • Hospitalization • Real Estate

  20. Alternative Explanations

  21. The Dark Side • How do you Institutionalize the Dubai Model? • Human Trafficking • Terrorism • International Mafia • Domestic Apathy and Disengagement • Expat Rights

More Related