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Globalization

& the Third World communities,

Is it a negative cultural/economic force?


Case study: Middle East - Arabic Societies

White Paper By: Hussein Al Ahmad


Royal Melbourne Institute of Technology

International Communication and Culture Forum


March 2007

©Hussein I. Al Ahmad S3066241, March 07.


Abstract;

While some people think of globalization as primarily a synonym for global


business, indeed, it is much more than that. Globalization chiefly describes
the political, economic, and cultural atmosphere of today. It is the central
catchphrase of the times debate, where terms such as the ‘global village,’
‘global governance’ and ‘global transformations’ were all incorporated in order
to generate an obvious understanding around the phenomenon of globaliza-
tion.1“What is generally called globalization is a vast social field in which he-
gemonic or dominant social groups, states, interests and ideologies collide with
counter-hegemonic or subordinate social groups, states, interests and ideologies
on a world scale”. (Boaventura de Sousa Santos 2006).

Actually, it is the prominent progress and developments that occurred chiefly


in computer technology, communications and transportation ease, which sup-
plied a fertile environment for the thriving of globalization process in most of
our life aspects. Consequently, Globalization actually have acceded the eco-
nomic arena to be its primary focus within the society. Most of our life as-
pects were effected by the globalization process and its consequences. Fur-
thermore, we still find that societies differ in their temporal orientation, some
focusing on protecting the past, others on forging the future. Accordingly,
neither economic nor culture -as the map of whole human livelihood-, have
never been isolated or protected from those impacts and evolving changes.

“The official ‘national culture,’ in particular, reflects a hybrid ideology of the


current state establishment, embodying such inherently contradictory elements
as, socialism, capitalism, modernism and globalism” (Liu, 2003).2 On the other
hand, and according to Arjun Appadurai (1994)“The complexity of the current
global economy has to do with certain fundamental disjunctures between econo-
my, culture and politics which we have barely begun to theorize.”

This paper will try to discuss how and to what extent Arabian national cultures
(as Middle East countries) can sustain their identity, and keep their economic
flourishing locally; within a globally extended economy that generates pow-
erful forces on the discrepancy of local cultures worldwide. We will examine
whether globalization is or not a negative economic force for communities,
and what benefit can they generate if those communities focus on a desired
outcome and concentrate on providing a specific type of product or service
that may reserve their identity and protect their growth and development.

©Hussein I. Al Ahmad S3066241, March 07.


Understanding Arab societies

Social and political structure


While focusing on social issues like political freedom and divisions between
socio- economic classes, most of Arabic studies reflect a complex society in all
its complexity. I think many Americans and western people get their impres-
sions of Arabs from cartoons, such as Aladdin, and made-for-TV movies fea-
turing terrorists or billionaire oil sheiks. Many western candidates or students,
who came to study in Palestinian universities have told me that when they got
the chance to travel to the Arab world, what they see there is very different
from what they had perceived about that region from the mainstream West-
ern mass media. An important side where cross-cultural interaction may bring
better understanding!

For those who want to gain a rigorous understanding about the real structure
of the Arab community, they must examine issues ranging from the perva-
sive influence of religion and believes on society, to the political and economic
consequences of the constant state of confrontation between Arab and the
various imperialism waves passed over the region, from 1914 Arab revolu-
tion against Othman Empire, to the Oslo agreement signed in 1992 between
Israel and Palestine, while navigating the history through 1948 Israeli occu-
pation for the Palestine and the constant Israeli Arab conflict, to 1952 revo-
lution in Egypt against England, to last war between Israel and ‘Hezb Allah’
in Lebanon. Edward Said, (1995) briefly illustrates the harsh affects of Oslo
agreement on the region; “Israel has achieved all of its tactical and strategic
objectives at the expense of nearly every proclaimed principle of Arab and Pales-
tinian nationalism and struggle. Thus Israel has gained recognition, legitimacy,
acceptance from the Arabs, without in effect conceding sovereignty over Arab
land, including annexed East Jerusalem, captured illegally by war.”

Consequently, the Arab societies suffer vital obstacles that hurdled its devel-
opment, chiefly the disarray of geographically separating related-states. One
can attain better understanding of Arab cultural structure by focusing on their
lack of security, Arab nationalism, the influence of religion, male-dominated
social and political hierarchy, political repression, technological research, suf-
ficient medical care, social and psychological alienation, as well as socio-eco-
nomic barriers separating urban and rural dwellers. Peace forms the resolu-
tion key for any positive change in the area,“But Israeli elites have failed to
turn the idea of the New Middle East (NME) into a hegemonic concept, as this
attempted liberal hegemony invoked a Polanyian ‘double movement’ that under-
mined the peace process.” Comments Guy Ben-Porat, PhD. at the Ben-Gurion
University, Israel. 3

©Hussein I. Al Ahmad S3066241, March 07.


National values and believes
By considering that post-colonialist experience of peoples, whether in Asia,
Africa or the Middle East, is unusually similar, I think that Arab’s believes and
customs emanating from the Middle East, especially during tense political
situations, are often misunderstood and misinterpreted in the West, “mainly
because of a lack of appreciation for the cultural nuances implicit in the Arabic
values, believes, customs or style of life.”4 as stated by Khalil Barhoum, an Ara-
bic literature and culture lecturer at Stanford University. In his opinion, we
have “ not to brand everything Westerners have written about the Arab world as
stereotypical, negative or far-fetched, but to put some of these writings in their
proper cultural, historical and political perspective, balancing them with the be-
lieves and writings of Arabs about their own land, culture and people.” from an-
other point of view, and according to Guy Ben-Porat; “The ‘rise and fall’ of the
NME cannot be separated from wider global developments and must therefore be
studied in relation to them, in both their ideational and material aspects.”5

©Hussein I. Al Ahmad S3066241, March 07.


Stagnation in Arab Societies
Technology
In its outcomes, the ‘Arab Human Development Report 2002’ released in Cai-
ro – Egypt, in July 2, 2000 by Arab intellectuals commissioned by the United
Nations, warns that “Arab societies are being crippled by a lack of political free-
dom and isolation from the world of ideas that stifles creativity.”6

The report remarks that while oil income has transformed the landscapes of
some Arab countries, the society remains “richer than it is developed.” Pro-
ductivity is declining, research and development are weak or absent at all,
science and technology are dormant. Actually, intellectuals flee a stultifying or
sometimes repressive political and social environment towards the free world
of the west, where they can perform and erect better future. “Sadly, the Arab
world is largely depriving itself of the creativity and productivity of half its citi-
zens,” the report concluded, relating to the issue of de-emphasizing women’s
role in society.7 And here we wonder; what worse results than those of our
isolation may globalization or any other threaten power bring to our deprived
societies!?

Political topography
There are some very terrifying signals that are specific to Arab countries and
not other regions. For the Palestinians in particular, the report says, human
development is all but impossible under Israeli occupation. Moreover, the Is-
raeli-Palestinian conflict “has been a cause and a pretext for delaying demo-
cratic change.” Then came another critical issue; the attacks on the United
8

States (which –to this paper’s concern- plays a major role in the globalization
process), giving researchers unexpected new relevance as explanations for
Arab anger against the West are being sought, that Arabs often question the
United States’ commitment to promoting democracy in the Middle East, argu-
ing its policies are inconsistent and even hypocritical. In addition to its unjus-
tified and boundless support to Israel in all aspect, the USA’s other prominent
concern is the availability of oil at stable prices. Those issues launched a wave
of hostility against the USA in most Arab and Islamic regions, which extended
against other western countries that support Israel too.

©Hussein I. Al Ahmad S3066241, March 07.


How can Middle East benefit from globalization?

In ‘Globalization and Its Discontents’, Stiglitz (2002) pointed out that “despite
all the promises of globalization, the developing nations of the world didn’t seem
to be, well, developing.” What seems to be the problem?

Political, Economic Forces and the Context of Globalization


In a one-day conference of Middle East and functional specialists convened
by the National Intelligence Council (NIC), USA, May 2005.9 to discuss likely
regional trends between now and 2020. The participants assessed that while
some Middle Eastern countries have made progress in diversifying their econ-
omies, the area as a whole remains economically underdeveloped and highly
dependent on petroleum revenues (mainly Saudi Arabia, Algeria, Libya, and
Oman). While smaller countries (such as Egypt, Jordan, Tunisia, Syria, Ye-
men…etc) are doing a better job of integrating into the world economy and
will benefit more from globalization than those states with either large popu-
lations or high hydrocarbon revenues. “Current high oil prices will allow some
states to avoid making difficult economic and social decisions, but will not let
those with smaller resources off the hook”, remarked the reporters. A price col-
lapse, which will have significant economic and political ramifications in the
area, is likely to occur in five to fifteen years.10

“One of the most important economic issues that the hemisphere now faces is
a mix of cooperation and disagreement on energy trade.”11 remarked Sidney
Weintraub & Simon Chair, at the Center for Strategic and International Stud-
ies, Washington, DC. As it can be generated from the above conference re-
sults, as a ‘Long Term’ vs. ‘Short Term’ orientation, the ideological back-
ground of the Middle East has to draw upon the ideology of globalization and
effort to share its fundamental tenets of rationality, professionalism and vir-
tues of market economy.

The effects of the increasing position of Asian economic


Odds are when the Chinese military entered the U.S. Navy EP-3 spy plane and
opened its computers, they found … ‘Made in China’ stamped on all kinds of
chips, circuit boards, and other high-tech gear.12

As the NIC 2020 Project’s Report emphasizes,13 the rise of China and India
will be a major trend both internationally and in the region, impelling these
two ascendant powers to play a growing political and economic role in the
Middle East. The emerging substitute for the USA and Western products in

©Hussein I. Al Ahmad S3066241, March 07.


China and India, may bring some benefits for the Middle East societies in
managing a new competition between those powers to attain better chance
in attracting technology and international capital, instead of staying only con-
sumers. Virtually, consumers may, in many cases, have limited horizons in
making their choices, still they are not forced to consume particular goods
and services - they have the liberty to choose and bargain.

In his article ‘New player in global investing: India Inc.’ at the ‘The Christian
Science Monitor’, Mark Sappenfield, explains how Indian firms are venturing
(regional) beyond the subcontinent with conviction. India is going global, and
the main reason is that Indian companies managed to supply the capital they
need. “While the growth in the domestic market here has helped, international
investors have provided the real fiscal fuel.”14 He remarked.

According to the statistics he included in his report, Mark Sappenfield states


that “Investors are looking to put their money into companies with high growth
potential, leading many to Indian firms. As a result, stock prices for Indian com-
panies are consistently valued three to four times higher than Western ones with
the same revenues. That gives them disproportionate buying power.”15 Actually,
this may be a unique model for Middle East markets to interpret, actually,
Dubai markets stands as an evidence of possible success.

©Hussein I. Al Ahmad S3066241, March 07.


Globalization trends and impacts on the region

“It appears that it is better to be a cow in Europe than to be a poor person in a de-
veloping country,” writes Nobel Prize-winner Joseph Stiglitz in his new book,
Making Globalization Work.16

Global Politics
Can globalization be a politically opening exercise? Some participants in the
(NIC) argued that the vitality of expanding production, combined with the in-
creasing role of performers like China that are eager to de-emphasize the im-
portance of political liberalization as an international issue, is likely to reduce
the international pressure on agreements for political reform. However, oth-
ers remarked that the international investment that globalization brings often
caries with it international business standards and practices of transparency
and accountability.

In this regard bilateral and multilateral trade agreements are taking on an


increasingly vital role in mediating countries’ relationships with the global
economy. For instance, Bahrain’s bilateral agreement with the US has proved
a model that other Arab political regimes are interested in following. While
at the same time Saudi Arabia (as the leader of the Gulf Cooperation Coun-
cil -GCC) feels threatened by US agreements with individual Gulf countries,
considering it to be harmful for regional cooperation of the (GCC). Somehow,
regional cooperation and alienation stands as a key factor in this issue, in ad-
dition to the conscious integration of the world economic giant, whirling over-
seas.

Global economy vs. regional integration


Some economists may consider the World Trade Organization (WTO) to be the
gateway to the integrated global economy, and thinks that joining it brings
international standards of transparency and accountability. Some of the NIC
conference participants on the other hand discussed the better trade frame-
work which has the powerful agenda to bring the economic success and politi-
cal liberalization, whether it is regional, bilateral, or multilateral. Others so far
remarked that joining the WTO brings shocks in addition to benefits, consid-
ering the bilateral model/approach (like that of the US has taken with Bahrain
and other countries) brings nothing similar standards of accountability.

I think for counties like Palestine and its neighboring Arab countries with
few resources and fewer skilled workforces, within such a framework, will be
forced to compete with other countries in a framework of rules and agree-

©Hussein I. Al Ahmad S3066241, March 07.


ments that will definitely inconvenience its growth. In order to keep a sus-
tainable future vision of survival and development for our economics and cul-
tures, I think we are to organize and protect efficient and innovative domestic
economies, integrated into regional and global entire economical regime, as
it was adequately articulated by Noam Chomsky (2005); “I mean “globaliza-
tion” used in a neutral sense just means “international integration.” This in turn
necessitates our maintenance for the political systems that supports progress
and equality, and allows us –at the regional and universal level- to deal with
variety of regional environmental crises that are perceived with increasing
frequency across increasing numbers of domains. internationally, “We have
to choose between a global market driven only by the calculations of short-term
profit, and one which has a human face,” (UN Secretary General Kofi Annan).17
accordingly, global rule must be changed in favor of –our at least account for-
the developing countries.

High/Low Context Cultures


Contrary to western and democratic regimes, while some experts consider
that economic stagnation has held back democratization in the Middle East,
indeed such explanations discounts the fact that Arab authoritarian systems
have mainly saved their power because they are skilled in managing internal
and external pressures. Their authoritarian type of control allows limited de-
gree of political participation and economic liberalization. On the other hand,
and in spite of the popular desire for democracy in our region is widespread
but appears to be shallow, narrow-minded, while majoritarian in nature.

There is widespread and significant popular desire for more free, open, partic-
ipatory, and accountable government, but the desire does not encompass the
full range of rights and liberties considered essential to liberal democracy. Our
nations stay so far from democratic and open systems of communications in a
global sense, unless a basic, dramatic change happen in the mentality and be-
lieves of our generations, to the degree that enables us to challenge instead
retreat, endure instead flee, cooperate instead seclude. Global systems may
be the shaman who led to the brightness, … who benefits from the free move-
ment of ideas, goods, people and capital? The answer definitely is: The vast
majority of the world’s population, mainly those, who enormously lacks it.

©Hussein I. Al Ahmad S3066241, March 07.


Conclusion

“The problems facing mankind can only be solved on the basis of universally
recognised principles and norms of international law and in a fair and rational
world order.” Hu Jintao & Vladimir Putin, (2005).

By referring to how Marshal McLuhan connected the term technology (our


ways and means) with the concept culture (our customs and beliefs), I be-
lieve that any industry (say agriculture as an essential economic sector in our
region) is a knowledge-intensive sector; and so, the facilitation of access to
knowledge through globalization is a promising opportunity. Hence, if we are
trying to underline only the positives and ignoring the negatives when we say
that Middle East is ‘globalized’ and is flourishing, then the occupied territories
(Palestine) might disagree.

My intention; to attain positive outcome from globalization, it is neither an


abstract idea to accumulate nor a package to accommodate. it is how peo-
ple, information, and capital can travel further and faster than ever before.
It is where limits on that movement, which used to be quite high, are now
remarkably low. Still, it is the double-edged weapon that necessitates high
degree of consciousness and qualification while integrating any of its domains
to our restricted community, market, or culture. Just like fire, globalization
neither good nor bad, when used properly, brings unlimited benefits, when
used haphazardly, fire can destroy lives and towns in moments. To close the
cycle, while looking at the tremendous opportunities globalization can bring
for aggressive communities, it is vital to keep in mind that “Just as capitalism
requires a network of governing systems to keep it from devouring societies, glo-
balization requires vigilance and the rule of law.”18

When academics write about sports, they are capable of accomplishing the
impossible, when it comes to application, the mere mention of globalization
generates anger, discord, and accusations; sucking all the pleasure and fun
from the spectacle. While Skeptics can say unrealistic days of globalization
appear to be over; its promises of the simple spread of markets would melt
poverty, dissolve dictatorships, and integrate diverse cultures proved to be
false. A revived, inspirited Chinese adult performer would proudly yell; on-
ward …, it is the epoch of China.

©Hussein I. Al Ahmad S3066241, March 07.


End Notes:

1. http://www.academon.com/lib/essay/globalization-local-culture.html

2. Liu, Josie. ‘In a Search for Cultural Identity, Clothes Definitely Maketh the Han.’
South China Morning Post, 09/10 2005, Accessed 15.9.2006 at: http://www.
wacc.org.uk/wacc/publications/media_development/2006_1/globalization_
national_culture_and_the_search_for_identity_a_chinese_dilemma.

3. Ben-Porat. G., ‘A New Middle East. Globalization, Peace and the ‘Double
Movement’, Ben-Gurion University, Israel, accessed online 15.10.2006 at:
http://ire.sagepub.com/cgi/content/abstract/19/1/39

4. Barhoum, K. 2002, ‘Understanding Arab Societies Through Literature’, Cairo


University press.

5. Ben-Porat. G., ‘A New Middle East. Globalization, Peace and the ‘Double
Movement’, Ben-Gurion University, Israel, accessed online 15.10.2006 at:
http://ire.sagepub.com/cgi/content/abstract/19/1/39

6. Barbara Crossette: ‘Study Warns of Stagnation in Arab Societies’, New York


Times, July 2, 2000, accessed 18.10.2006 at: http://www.globalpolicy.org/
socecon/develop/devthry/democracy/2002/0702stagnation.htm

7. ibid

8. ibid

9. http://www.fas.org/irp/nic/index.html

10. http://www.dni.gov/nic/NIC_globaltrend2020.html

11. Weintraub, Sidney & Chair, Simon: ‘ Political Economy’, at the Center for
Strategic and International Studies. Reprinted with permission from the Center
for Strategic and International Studies. Accessed online 20.10.2006 at: http://
www.globalenvision.org/library/15/1271/1/

12. http://www.keepmedia.com/Search.do?refinePubTypeID=101&criteria=globaliz
ation&extID=10008

13. http://www.dni.gov/nic/NIC_globaltrend2020.html

14. Sappenfield, Mark: ‘New player in global investing: India Inc.’, The
Christian Science Monitor, accessed 15.9.2006 at: http://www.csmonitor.
com/2006/1017/p01s04-wosc.html

15. ibid

16. http://www.keepmedia.com/pubs/USATODAY/2006/10/02/
1848883?ba=a&bi=11&bp=7

17. http://proquest.umi.com.ezproxy.lib.rmit.edu.au/pqdweb?did=1140292521&sid
=7&Fmt=2&clientId=16532&RQT=309&VName=PQD

18. Porter K., ‘Your Guide to Globalization Issues’, About Newsletter, accessed
18.10.2006 at; http://globalization.about.com/cs/whatisit/f/FAQ2.htm

©Hussein I. Al Ahmad S3066241, March 07.


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©Hussein I. Al Ahmad S3066241, March 07.

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