Refleksi: Masyaalloh! Indonesia menganggap dunia model Arab kuno adalah yang 
terbaik, tetapi dunia Arab sendiri...?

 http://weekly.ahram.org.eg/2007/833/op2.htm

22 - 28 February 2007

Looking for a role model
Should the Arab world follow China, or follow India, asks Ayman El-Amir* 
In a world where globalisation presents both a threat and a promise, many 
developing countries, including Arab ones, are grasping for the secret formula 
that made China and India global economic giants in the span of 25 years. With 
its staggering economic growth for more than a decade, China has leapfrogged 
from market economy to miracle economy. It achieved a 10.5 per cent increase in 
Gross Domestic Product (GDP) last year alone. India, which is considered the 
world's fourth largest economy in terms of purchasing power parity, is poised 
to be the world's third economic power after the US and China in less than two 
decades. While dependent on imported oil and raw material, both countries have 
developed manufacturing capacity that is inundating world markets.

What is puzzling is that both Asian economic powers owe their achievements to 
incompatible political ideologies. China is governed by an avowed communist 
elite, while India is proudly the world's most populous democracy where people 
freely vote governments in and out of office. So, for struggling developing 
countries, which is the shortest cut to riches?

For the Arab states of the Middle East the challenge is even greater. They are 
mostly countries in transition that are meandering towards consistent political 
and economic systems. This motley group of countries ranges from feudal 
monarchies to republican autocracies, with few exceptions in between. Their 
difficult road to development is strewn with civil conflict, sectarian chaos, 
military occupation, foreign political and military hegemony, internal 
repression and the destabilising effect of the threat of terrorism. On the 
other hand, China and India are beating the staunchest world economic powers, 
the US included, at their own game, competing in all industries, from chip 
making to movie making. Arab countries can boast of little more than oil and 
gas exports, modest tourism and no regional integration to speak of. 

The dilemma for developing Arab countries is whether a sound democratic 
environment based on strong political institutions, free elections, power 
sharing and rotation, respect for human rights and a genuine separation of 
powers is a pre-requisite for robust economic growth and integration in the 
global economy. For some, the need does not arise as long as millions of 
barrels of oil continue to flow out and billions of US dollars flow back. They 
have China and India's voracious appetite for raw material to thank for the 
bonanza of oil prices of last year. For some other Arab countries, an ironclad 
hold on power through a single party system, festooned with democratic slogans, 
is the guaranteed way to ensure stability and make economic progress. They can 
confidently point to China and to South Korea a decade ago, to show that 
liberal democracy was no pre- condition for economic and social prosperity. 
After all, in the last century, the former Soviet Union developed its awesome 
industrial might under conditions close to slavery during the Stalinist era and 
despite involvement in two scarring world wars. The paradox is that the 
Marxist-Leninist ideology that guided Soviet policies was unsustainable. The 
empire came crashing down when it tried to modernise by adopting Western-style 
market economy and political liberalism. Mikhail Gorbachev's perestroika and 
glasnost undid it. 

In the 21st century's world of globalisation and the information society the 
rules of the game have changed. Everyone is watching, learning, cooperating and 
competing. The visionary objective of the framers of the United Nations Charter 
more than 60 years ago of "better standards of life in larger freedom" is 
making steady progress despite many setbacks. This may seem to be incompatible 
with "miraculous China", but the fact is that it is a revolving door. Economic 
liberalisation that started in 1978 under Deng Xiaopeng led to liberal policies 
allowing millions from rural areas to move to cities constituting the greater 
labour force needed for economic expansion. Economic liberalisation will 
inevitably lead to greater political flexibility if economic growth is to be 
sustained. If this may seem to support the argument that economic progress 
could be achieved in a repressive political environment, then it is 
misconstrued. China's stellar rise is also driven by a fierce sense of 
nationalism that believes that China is bound to be one of the greatest, if not 
the greatest, world powers of the 21st century.

For sustainable economic growth to materialise, Arab countries need a liberal 
political environment, not repressive regimes governing behind closed doors 
under misleading banners of democracy and traditional values. In the past 50 
years, autocracy and monopoly of power by Arab oligarchies proved to be 
politically costly and economically ruinous. They offered no inspiration for 
people of the Arab world who had struggled for decades against foreign 
occupation and domination only to end up in the oppressive grip of nationalist 
dictators. There lie the political origins of economic failure.

A healthy political environment governed by the rule of law and an efficient 
system of education would provide the basis for sound economic policies leading 
to sustainable economic growth. Under such circumstances a vigorous civil 
society would play the effective role of watchdog in exposing and countering 
corruption that is the bane of successful economic and political performance. 
Economic failure is a consequence of corruption that is tacitly protected by a 
political umbrella. It is understandable that every political regime relies for 
its survival on a trusted class of allies whose interests are closely linked 
to, and dependent on, the survival of the regime in power. They will defend the 
regime that protects them and safeguards their interests. Such a marriage of 
interests can only be regulated by the rule of law and an institutional system 
of accountability. Under the economic reform packages introduced in China and 
South Korea, harsh penalties, including the death sentence, were meted out to 
public officials who betrayed state trust or indulged in corrupt practices.

Autocratic governance is a sure recipe for corruption. The dictatorships of 
General Suharto in Indonesia and Ferdinand Marcos in the Philippines during the 
last quarter of the 20th century speak volumes of corruption and 
self-enrichment under the eyes of respectable international financial 
institutions like the World Bank. In Indonesia, the whole country turned into a 
family business of General Suharto, while the World Bank pumped $25 billion in 
loans to the Suharto's regime to support what it considered a miraculous model 
of poverty reduction in Asia. In the Philippines, it was a self-rewarding 
enrichment exercise for Ferdinand Marcos and his flamboyant wife, Emelda 
Marcos. Both regimes were eventually overthrown by the impoverished masses, 
supported by the armed forces.

Arab countries are in a state of rocky political and economic transition to the 
unknown. Underneath the veneer of oil wealth there is many a restive population 
sinking deeper in extreme poverty. This is breeding increasing resentment. In 
some cases, particularly in the small Gulf States, the transition may lead to 
some form of constitutional monarchy. In other countries where draconian police 
state security measures seem to be the answer to all forms of protest, the 
transition will be towards destructive anarchy. There is no ready-made 
blueprint to follow, no magic formula to copy, but transparency, the rule of 
law, power-sharing, the promotion and protection of human rights is a never 
failing path to pursue. As Jean-Jacques Rousseau put it more than 200 years 
ago: "Good laws lead to the making of better ones, bad ones bring about worse."

* The writer is former correspondent for Al-Ahram in Washington, DC. He also 
served as director of United Nations Radio and Television in New York


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