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.”

Al-awlama: increasing levels of interdependence
over vast distances along, cultural,
environmental, and political dimensions….
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Dimensions of Globalization
Technological
Technological:
- Internet
- Satellite TV
- Media
- Jet Travel
Cultural
Cultural:
- Universalism
- Deterritorialization
- Westernization
Economic
Economic:
- Interdependence
- Liberalization
- Capital flows
- Foreign Investment
- Trade
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Dimensions of Globalization
Technological
Technological:
- Internet
- Satellite TV
- Media
- Jet Travel
Cultural

The Muslims fall into three globalization camps:
Cultural:
- Universalism
 Those that
- Deterritorialization
- Westernization
Economic
embrace

Those that are positively neutral

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

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 ?
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