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Globalization and the Arab World

Globalization and the Arab World. Major Pete Larsen. 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.”

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Globalization and the Arab World

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  1. Globalization and the Arab World Major Pete Larsen

  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….

  3. Dimensions of Globalization • Technological: • Internet • Satellite TV • Media • Jet Travel • Cultural: • Universalism • Deterritorialization • Westernization • Economic: • Interdependence • Liberalization • Capital flows • Foreign Investment • Trade

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

  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)

  6. Globalization’s converging dimensions Yusuf al-Qaradawi’s fatwa:

  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

  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...”

  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

  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

  11. Obstacles and Challenges • The oil curse  windfall gains, cycling • Regimes  kleptocracies, transparency • Arab Human Development Report

  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

  13. Islam and development • No direct link…

  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

  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

  16. GCC and regionalization • Common currency (2010 ?) • United market  the more important step • Wage inflation • Unemployment

  17. Questions ?

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