Davos and the Real World Policy-makers must address
Middle East's economic woes
by Jay Mandle
Excerpts:
The news from last week's World Economic Forum in Davos, Switzerland is positive. Worldwide recovery appears imminent. This view is true if one excludes the Middle East.
Ignoring this impoverished region is a perilous decision. The dearth of economic development in the Middle East continues to be an incendiary component of the region's unrest. Real economic assistance is central to the pursuit of Middle East peace.......
Powerful impediments to economic growth exist in the region. Illiteracy, especially among women, is high; the flow of foreign direct investment is low (about one-quarter of the per capita level of comparable middle-income countries); the export of agricultural and manufactured goods - the symbol of modern growth - is minuscule.
It is possible to overcome these obstacles. Modern economic development can help to defuse terrorism, but that cannot be accomplished when terrorism is evaluated primarily from a military perspective.....
...economic neglect, as contrasted with billions of dollars spent on our military effort, feeds the perception that opening the region to foreign investment is an insincere gesture...
....The reluctance of foreign businesses to invest despite the promise of favorable treatment is caused, in part, by the question of whether the new regulations are legal. International law requires an occupying power to respect laws already in force. The new regulations are more reflective of what the Bush administration wants than they are rules that might open and develop the economy.....
....As long as the leaders and people of the region are preoccupied with war and the threat of war, progressive reforms have no chance. Leadership in the region finds it much easier to direct frustration to external agents rather than address the difficult challenges that are present internally....."