As the next administration pursues a Middle East strategy, no issue will be more important than economic development. Widespread unemployment is an enormous human tragedy and a destabilizing social force, but it is also the largest obstacle to democratization.
"My issue is cooking oil," Dya Alawa, a 37-year-old Turkish
woman said on the day of Turkey's historic July election, which saw the
Justice and Development Party (AKP) emerge with a resounding victory.
"That's why I'm voting AKP," she told the Washington Post. For
her, the election was simple: the economy has improved under AKP
stewardship since 2002, her husband has less fear of layoffs at his
textile factory and she can buy cooking oil at reasonable prices.
Indeed, Alawa is not alone. While the Turkish elections grabbed
headlines and raised questions about the country's "secular soul" -- as
the AKP, a party with its roots in political Islam, won the presidency
and retained the premiership at the same time -- many ordinary Turks paid
more attention to bread-and-butter issues of jobs, prices and the
economy. Herein lies the irony of the AKP victory: it was not a victory
of Islamists over Ataturk, nor was it a repudiation of Turkey's secular
inheritance, as suggested by alarmed members of the secular
establishment. The AKP victory was one of sound economic policy, amid an
environment largely untainted by corruption, that made people like Dya
Alawa feel secure about their future.
It's a lesson that the next US administration ought to learn well as
it searches for a grand strategy for the Middle East and for the
developing world. Far too often (and especially in the past six years),
Washington has failed to listen closely enough to the voices of people
like Alawa, instead preferring the urbane intellectuals who turn up in
fellowships in Washington or visiting professorships at Harvard (and are
granted meetings with the President and the Secretary of State). When we
listen to the Alawas of the developing world, we hear a familiar
refrain: we want jobs, decent wages, hope for the future and governments
untainted by corruption.
These sentiments -- which turn up in global polls of developing
countries, and especially the Middle East -- fuel the rise of populists
from Latin America to Africa as well as "social justice" utopian
Islamist movements from Morocco to Egypt to Indonesia that
challenge the plutocratic elites often supported by Washington. The key
words and themes used by the Islamist parties -- justice, development,
jobs, corruption of the ruling elite, the dangers of globalization -- ring
familiar to anyone who listens to the speeches of Hugo Chávez of
Venezuela or Evo Morales of Bolivia.
In the Middle East/North Africa region -- which has one of the
youngest populations in the world and is awash in frustration at the
status quo -- this populist-versus-plutocrat dichotomy can be a winning
card. The trouble is that most populists are good at sloganeering
against the ruling elites but bad at governing. Turkey's Prime Minister
Recep Tayyip Erdogan has governed as a probusiness moderate, not as a
chest-thumping populist. Still, it was popular anger at the ruling elite
amid the ruins of Turkey's 2001 financial crisis that spurred Erdogan to
power.
Iran's President Mahmoud Ahmadinejad also played the populist card
in the 2005 elections. At that time, the reformist wind had died down,
as President Mohammad Khatami had been outmuscled by the conservative
establishment. Iranians -- gripped by an economic unease fueled by
inflation, stagnant wages and anemic job growth -- were either frustrated
with the reformers and thus sat out the elections or were more concerned
with the price of meat and onions than with abstract notions of civil
society and dialogue among civilizations. Ahmadinejad exploited
that latter sentiment well. He delivered a populist message and
railed against corruption (and said nary a word about Israel or the
Holocaust). It proved to be a winning card in Iran's admittedly limited
elections. Unlike Erdogan, however, Ahmadinejad has not
managed the economy well (in fact, he has proven disastrous) and will
likely face in 2009 a skeptical voting public frustrated by soaring
inflation and unemployment (only a US-led attack on Iran
might save him now).
Then there is, of course, Hamas. The only surprising thing about the
Hamas victory was the surprise that it caused in Washington and London.
Should it have been any surprise that long-suffering Palestinians,
impoverished and underemployed, battered by years of Israeli occupation
and wounded by the corruption and nepotism of the Fatah elite,
would vote for Hamas, which has become to many Palestinians the symbol
of resistance and provider of social services? In the Gaza Strip, where
even before the postelection international embargo on Hamas,
unemployment stood at 44 percent, nearly 80 percent of all Gazans lived
below the poverty line and nearly 50 percent were under the age of 18,
there were a lot of justifiably angry Gazans searching for redemption
and not finding the right answers in Fatah, Israel or the prospects of a
peace deal.
In many Middle East/North Africa countries, 67 percent of the
population is younger than 24. The World Bank estimates that the region
needs to create 100 million jobs by 2020 simply to keep up with its
growing labor force. Right now, the region's unemployment rate, hovering
at 12 percent despite steady economic growth in the past four
years, is the highest in the world, higher even than sub-Saharan
Africa. Demographers do not agree on much, but they tend
toward unity on this: large youth bulges coupled with high unemployment
is a recipe for instability. And in today's Middle East, middle-class
unemployment and, more important, underemployment (most jihadis are
middle-class, not poor) swell the ranks of extremist recruits in small
numbers and Islamist populists in larger numbers.
With few exceptions (most notably in the smaller, more nimble
Persian Gulf states), the region is plagued by corrupt state-dominated
economies, excessive regulation and bureaucracy, and poorly
constructed legal and regulatory frameworks that hinder private-sector
development, foreign direct investment, small and medium-sized business
growth, and job creation. Places like Egypt -- the potential regional
powerhouse -- have shown signs of improvement, winning plaudits from the
World Bank, but they have still failed to achieve that critical mass
that would spur significant job creation and affect ordinary Egyptians'
lives.
As a result, the region is full of distressed populations -- who
consistently rank jobs and finances among their top concerns -- and a
younger generation susceptible to the simplistic exhortations of
antidemocratic radical Islamists and the new populists. Free elections
across the region tomorrow would produce more Islamist victories, but
candidates wouldn't win because they are Islamist; they would win
because they are populist. With high unemployment and stagnant wages
amid an environment of crony capitalism that has, with a few exceptions,
failed to deliver widespread prosperity, any would-be
candidate in a future election would logically take a populist stance.
While Al Qaeda may seem like a more immediate threat to US
interests, the rise of chest-thumping anti-American populist leaders -- in
Latin America, the Middle East and soon in sub-Saharan Africa -- might be
the longer-term danger. The next administration will need a strategy to
meet the challenge of these new populists, who for the most part will
likely worsen the economic conditions of their people while repressing
their rights in the process.
Here is where Washington and its wealthier Persian Gulf Arab allies
can step in. The more populous, poorer states like Egypt and Morocco
could use upgrades in infrastructure that would bolster their business
development while creating immediate jobs on the ground. The next
administration should take a low-key leadership role in working with its
Persian Gulf allies to direct some of their abundant cash flow toward
building roads, schools and ports in the Arab regions. Like the United
States in the mid-nineteenth century -- when large infrastructure
projects put Americans to work and built the foundation for future
growth -- the Arab states could benefit from state-funded development.
Pursuing a strategy of economic development that would create
immediate jobs on the ground would defertilize the soil for
chest-thumping populists. This, however, must be coupled with
substantive steps toward growing regional middle classes, since most
jihadis tend to come from the parts of the middle class that are
underemployed, marginalized and disaffected. It can be profoundly
disorienting to emerge with a college degree or a master's, only to find
yourself driving a taxi or selling fruit at a street stand. It's even
more disorienting to make it to Europe only to find yourself jobless or
struggling in menial jobs in an Arab ghetto in Marseilles or Madrid,
groping for answers as radical imams seek to scoop you into their world.
As the next administration pursues a Middle East strategy, no issue
will be more important than economic development. Widespread
unemployment is an enormous human tragedy and a destabilizing social
force, but it is also the largest obstacle to democratization.
The transition to democracy is more feasible and sustainable when a
country has a vibrant middle class, a healthy employment market, a
dynamic and independent entrepreneurial community and vigorous
economic development.
We should help governments in the region develop mortgage markets
and financial institutions that would support small and medium-sized
enterprises; then, homeowners and small-business owners would form the
core of a middle class that prizes stability and just might pursue a
greater voice in government. The new President of the United States
should let it be known loudly that America cares about the economic
future of the region, and not just with free-trade agreements. Indeed,
he or she would do well to borrow some populist language from the
Islamists and then back it up with serious policies. This strategy of
economic development would also bolster the long-term goal of democracy
promotion -- a goal that the next administration should pursue with far
more subtlety and long-term thinking than the current one.
Economic development ought to be pursued vigorously not only because
of its democratic implications but simply because it's the right thing
to do: the dignity of work and economic opportunity ought to be
considered a fundamental human right. A true embrace of the project of
spreading prosperity would simultaneously expand America's soft power in
a world where fewer people and nations trust Washington's motives than
ever before.
Dya Alawa, it must be remembered, will vote for the party that
lowers the price of her cooking oil, whether it be Islamist, secular,
democratic or mildly authoritarian. In authoritarian states (as in most
of the Middle East and North Africa) where voting does not determine
rulers, people like Alawa and her sons will be attracted to Islamist
populist groups, many of which are banned from entering the political
arena but which provide the only muscular alternative to the ruling
elites. A strategy of economic development will portend a better
future for her and the millions in the Middle East, Latin
America and the broader developing world who are caught between corrupt
ruling elites who underperform and utopian populists who
overpromise.
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