____________________________________________________________________________ __ __________ _ _______ ______ / |/ / __/ _ | / |/ / __/ | /| / / __/ / /|_/ /\ \/ __ |/ / _/ | |/ |/ /\ \ /_/ /_/___/_/ |_/_/|_/___/ |__/|__/___/ Support MSANEWS, a project of learning and enlightenment "A Mind is a Terrible Thing to Waste" [ see footer for contact and other pertinent information ] ____________________________________________________________________________ Source: Direct Submission Email: ramikhouri@nets.com.jo Date: Mon, 19 Jul 1999 12:22:55 +0200 Title: Political solutions for economic problems By: Rami G. Khouri ScholarsBase: http://msanews.mynet.net/Scholars/Khouri/ TEXT: For use as of Tuesday, July 20, 1999 A View from the Arab World By Rami G. Khouri, in Amman, Jordan Political solutions for economic problems The publication this week of the United Nations Development Program (UNDP) 1999 global Human Development Report raises crucial issues that challenge several trends within the Arab World and other developing regions of the global south. The particular condition of Jordan is a good case study of the opportunities and dangers that globalization poses for most developing societies; our example also highlights why small, vulnerable Third World states must address this issue much more maturely than has been the case to date. Three particularly significant global and local points struck me in this report: 1. globalization is worsening the gaps between haves and have-nots; its almost unique emphasis on efficient production within profit-oriented global markets is leading to greater socio-economic polarization and stress throughout the world; 2. Jordan -- like ten of 17 Arab states in the report -- dropped in its worldwide human development ranking this year; the Arab World seems broadly unable to intelligently address the twin challenges of sustainable development or globalization; 3. the single most important antidote to the problematic trend of unchecked globalization is better `governance' -- to make sure that the real advantages of global markets and competition are matched by ensuring globalization with ethics, equity, inclusion, human security, sustainability, and genuine development. The combined impact of these three dimensions of globalization is very visible in our country of Jordan, which reveals some perplexing trends. For example: *The brisk flow of multinational companies that visit our industrial export zones in search of attractive investment opportunities is matched step-by-step by the equally brisk flow of other local trends such as domestic or sexual violence, alcohol and drug abuse by youth, or poor people who walk through the streets of upper-income western Amman early every morning searching household garbage containers for things to wear, sell, or perhaps even to eat. * Jordan over the past decade has witnessed a steady and impressive increase in life expectancy (from 67 to 70.1 years) and in adult literacy (from 75% to 87.2%) but at the same time, real gross domestic product per capita had fluctuated widely (from a high of $4380 in 1996 to a low of $2415 in 1992) -- thus Jordan's Human Development Index value in the HDR has also fluctuated widely (from a high of .758 to a low of .582). In the short term, both the per capita income and Human Development Index values have been declining steadily since 1995-96. These paradoxes are not unexpected; they are part and parcel of the globalization trend that dominates the global flow of information, capital, and goods and services. We must separate and understand the different strands of globalization, in order to benefit from the process and not to be permanently stunted by it. I would identify globalization's components as: a) financial and commercial markets integration, b) free flows of cultural and information materials, and, c) the spread of political, social, and economic values, such as democracy, transparency, personal liberty, and others. (It's quite fascinating that the single largest American export today is entertainment -- music, films, television shows -- which is why so many in the Third World fear they are being subjected to a `cultural invasion'.) We in the Arab World have predominantly tried to go along with the first two dimensions of globalization -- commercial and information flows while not seriously addressing the third dimension of political and other values. Not surprisingly, the UNDP Human Development Report this year stresses `governance' as the most urgent antidote to the negative consequences of globalization. The great challenge for the Arab World in this process is not merely to remodel our investment laws, internet regulations, or airport lounges to cater to the specific needs of foreign investors or markets. It is, rather, to understand the true strengths and flaws of our domestic governance system, and to make the necessary changes that will allow us to build on our impressive assets (mainly an educated, hard-working citizenry) and minimize our obvious weaknesses (concentration of power in the hands of a small political or tribal elite, and lack of effective accountability). Jordan, for example, suffers the classic Third World dilemma of rushing after global investors, pleading with the world's rich for debt forgiveness, and simultaneously enduring an erosion of credibility and confidence in our domestic governance mechanisms. We continue to evade the fundamental challenge of how to use the political decision-making system to promote a sense of equity and equal access to resources and opportunities throughout the country a sense of equity that is absolutely vital if people are to work harder, to work to higher standards of quality, and thus to work their way out of poverty or mediocrity, into the new global promise of well-being and even wealth. The 1999 UNDP Human Development Report report says that "governance does not mean mere government. It means the framework of rules, institutions and established practices that set limits and give incentives for the behavior of individuals, organizations and firms." The report's globalization analysis and its quantitative documentation of the Arab World and other developing regions challenge us to dare to admit the real constraints that plague our societies while also building on the equally real achievements of recent decades. We and others in the Arab World are challenged to promote equitable and sustainable development by going beyond tired old cliches and a moribund tradition of holding endless conferences and meetings. The root causes of Arab economic problems are imbalances in the exercise of political, economic, and public security powers -- imbalances that have allowed national economic development to become unsustainable because it has become so heavily dependent on the central government and on foreign sources of aid and support. The solutions to our dilemmas will come from righting those imbalances and distortions, and by creating better governance systems that can tap the full energy, talent, and national commitment of the citizenry. In other words, the solution to our economic problem in the Arab World is essentially political. Will we deal with this reality honestly -- or continue to evade it for years to come? @1999 Rami G. Khouri ______________________________________________________________________________ __ __________ _ _______ ______ / |/ / __/ _ | / |/ / __/ | /| / / __/ / /|_/ /\ \/ __ |/ / _/ | |/ |/ /\ \ /_/ /_/___/_/ |_/_/|_/___/ |__/|__/___/ Views expressed on MSANEWS do not necessarily represent those of the MSANEWS editors, the Ohio State University or any of our associated staff and "watchers". Further distribution of material featured on this list may be restricted. In all cases, please obtain the necessary permission of the authors or rightful owners before forwarding any material to or from this list. This service is meant for the exchange of analyses and news, for both academic and activist usage. We depend on your input. However, this is not a discussion list. Thank you. 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