— 08 Globalization in Conremponany World to DEVELOPMENT IN MIDDLE EAST AND AFRICA Learning Objectives ‘After studying this chapter, the student will be able to 4, Discuss the political and economic reforms in Sub-Saharan Africa and Middle East. 2. Explain the role of foreign aid in the development of African states. 3, Examine the roots of conflict in Middle East and North Africa. 4. Identify the regional challenges of women and the effects of inequality to development. The optimism of former World Bank economist William Easterly during the 2005 G-8 meeting in Great Britain gave hope to frllions of Africans who are in the verge of poverty and hunger. The fiberal approaches of Easterly on diverting the global focus on Africa signaled more responsive global governance. WB, as a powerful international financial body, has the ability to take the lead in initiating ey reforms and programs in Africa with US and other developed Sountries at its back for support. Thirteen years from now since the time the former WB economist made promises of increasing {racitional foreign aid to Africa and forgiving its aid, but how is Africa atthe moment? Are we seeing massive changes and reforms funded by the bank? Does the problem of poverty and hunger deci in the westten or fifteen years? Are global institutions like UN, WB, IMF and INGOs and key donors responsive to the plight of poor Africans? The current political and economic condition of countries in ‘Africa and Middle East are major contributors to the global headache of international institutions. These problems shared by countries | especially in the Middle East and North Africa are causing domino ffect to the unstable economic growth of the region. The ongoing a7—<4@.@ Globalization in Coxrenponany Woald @ @o-—— regional problem of peace and security are visible markers that Struggle over resources and strategic advantage is the main point on, He ae ppearance of order and development. Asteriou and Price (2001) together with Dahi and Demir (2008) argued That regional eso poltcal instability in some countries of Africa and Middle East seeey negatively affects the economic growth rate but also increases its volatility. ‘The current waves and trajectories of political and economic regimes and institutions in Middle East and some countries in Africa saa eications of contested impacts of globalization. The region is not excused to the unstable global events of conflicts. Foreign no exction, government monopolies and civil wars are identified toot causes of challenging countries of the region. “This chapter centers on political and economic reforms and developments in Aica and Middle East as well as the role of foreign seyetcthe promotion of growth and changes of lives affected by aia talso discusses the roots of regional confictin MENA and its implementation of key reforms and initiative. ‘The post-World War II era of Africa winessed sonioeconomy 7 ‘rom key institutions especialy private and government retors. The historical Sachs-Hillman. debate in UN an “The new consensus made was expressed in are Millennium Initiative or Millennium Declaration signed by 168 tre ehee. Africa was the main subject of the global reforms that co eaders wanted to address. Its worsening socioeconomic Wordition was the mantra of the ambitious 2015 Millennim Development Goals. As such, the deciaration focuses on the problems of countries that are severely affected b decades-long problem to As a result, {governments were encouraged to finance infrastructures in education and health care. IMF, work with some countries in the Lending institutions lik s. The agency region to it To cite as an example, in 148-— ers that point on Ind Price regional idle East but also boonomic bin Africa region is | Foreign identified rms and lf foreign fected by NENA and Jeconomic 2vernment ed to the ational aid pressed in ed by 189 forms that deconomic Millennium son the pades-long ‘sal access 5a result, ictures. in Itries in the ‘he agency sa normal »xample, in ——+*@ @ Globalization in Contemporary World @ @e-— Nigeria, an amount of $40 billion was found stolen fromthe national Coffer. There is indeed a need for economic reforms. One of which is microlending. Microlending or small loans offered to local farmers and entrepreneurs who have no access to credit were established by Multilateral institutions. This program was a big help especially to poor farmers and women. However, this project was not sufficient to. ‘meet the needs of the beneficiaries ocd ‘Sub-Saharan’ African (SSA) countries never experienced democracy. During the 80s, Botswana, Gambia, Mauritius, Senegal, and Zimbabwe were the only Ke countries thal held elections wih ‘competing political parties. The issue of manipulating ethnic loyalties among strong men in SSA continues to challenge the political environment of the region. Ethnic groups are highly engaged in local politics in Africa where violence is an expected result of the involvement. The overflowing foreign aid in Africa coming from countries like US and Russia was used by political parties and ethnic groups as part of maintaining its vast network during election. ‘The conclusion of Cold War brought light to Africa as the'first competitive elections were held in some states. South Africans were ‘true witnesses to the birth of democracy in Africa. However, from 1994-1997, election-related problems were seen in fifteen countries where fraud and violence happened. In 2007, Cameroon, Ethiopia, Rwanda and Uganda experienced a political turmoil in the hands of a long-ruling government through constitutional manipulations, Itis saddening to note that, regional peace and order in Africa femains elusive. Sustainable democracy and governance are being ‘denied to citizens and participation in political system of the state is “Festricted by the few, Is democracy the best and ideal solution to the long political struggles of Africans? Will democracy solve the political ‘and economic challenges of SSA? Tee euch cat As part on the pattern of development, people are moving from rural areas and countryside to urban communities. They want ‘to look for better jobs and opportunities to sustain their basic needs. in effect, people in Africa are moving rapidly as part of ‘ndustrialization and development in selected areas. With a sanguine 149Globalization in Contemporary World @e-— spirit, the influx of investment in Africa fs a huge part in elevating the region and escape from the cycle and culture of poverty. The 2030 SDGs reveals that ending poverty, zero hunger and economic growth are the top three priorities of most African states. It is crystal ‘clear- human deprivation is a normal condition in Africa. ‘An African mother attending the needs of her child and performing household work. Image source: UNDP Africa AUN report says that one in every fourteen adults in Africa is affected by AIDS. In 2007 alone, 33 million in SSA lived with AIDS, half of them women (Nau, 2009). ‘African governments find this disease as the most serious problem, killing millions of people especially children. AIDS is hardly solved among countries in SSA because of the following obstacles: 1) catching the disease ata high fisk population; 2) inaccessible education coupled with poor public ‘awareness campaign and weak commitment from the government, 3) treatment of AIDS/HIV among AVrican patients. A number of local and foreign institutions have dealt with SSA countries in finding the right solution on the problem of AIDS. Huge sum of money from developed countries and INGOs was disbursed for vaccines, awareness campaign, and research. ‘Another deficiency experienced especially by African women is adéess to education. Girls are deprived from their rights in education, a universal right that should be enjoyed by all. The different centuries-old traditions of inequality are persistent in almost all aspects of human rights in Africa. Female mutilation is a normal 150——+#@ @ Globalization in Conremponany World @ @e-—— practice in some local villages in Kenya and Zambia. They are forced to perform rituals that are threatening to their health and security. These kinds of problems are prevalent in the region as there are inadequate healthcare facilities and insufficient trained teachers in these countries. cs WeA sku Rus Going back to the previous topics and issues in Africa, assistance from foreign governments and agencies propels the development of the area. Foreign aid or Official Development i (ODA) is an aid or support from developed and advanced “Governments to developing or less developing countries. The pattern of relationship in ‘developed=developing’ and ‘donor=recipient’ became increasingly an interesting facet of policymaking international relations (Harris, et. al. 2009). As a practice, this is used 2s a tactical tool in strengthening ties and diplomatic relations (Between the provider and receiver of the aid. There are aids that do Rot contain any political motives on providing ODA. Foreign aid coming from INGOs is in special form because of its nonpolitical ‘objectives where funds utilized are usually spent intended to the ‘2cipient community of the program. The onset of MDG requires pariners and governments such as donor countries, multilateral development banks, and NGOs to coordinate their aid with country- ‘Specific plans and projects (Nau, 2009). No doubt, Africa is a ‘centerpiece of foreign aid from ‘government and international organizations. The aid given is usually 2 form of grant that needs not to be paid back by the recipient or beneficiary of the aid. There is also a type of aid given by multilateral development banks like Asian Development Bank (ADB) with high st rates or concessional loans. The United States Agency for tional Development (USAID) with presence in over 80 countries provides both grants and aid with interest rates to some loping countries of the global south. Its presence in countries that have high socioeconomic problems helped local communities to I problems like emergency relief and assistance, livelihood and to market roads. The US government is the top aid provider in followed by World Bank, France and European Union. Other than the above mentioned aids, there is also foreign aid MN by IMF to Heavily Indebted Poor Countries (HIPC) through its 151Globalization in Conremporany World @ @*-— debt reliefinitiative. This practice involves rescheduling loans to HIPC to'stretch and make adjustment the loans over a longer period of time or fo ‘the loan and making the country debt-free. The economic history of MENA (Middle East and North Africa) is characterized of a series of growth and decline. Countries in this region were once the earliest. hubs of “industiaizations ang Gouslopment? Egypt, Turkey, and Israel witnessed the crossroads gnd transformations of economic and political developments. The very unique poltical environment of MENA offers contrasting points of interpretation on its push-pull development cycle. This region was the backbone entry point of old contacts between China's Silk Road and Europe as well as other countries in Asia. Chen (2019) describes MENA as a region encompassing) approximately 22 countries in the Middle East and North ‘Africa. The MENA region accounts for approximately 6% of the worlds population, 60% of the world’s oil reserves and 45% of the world's natural gas reserves. ‘Map of Middle East and North Africa (MENA) source: Middle East & North Arica Initiative, Philosophy and Religious Studies. Morgan State University The fich oil and natural gas deposit in the area Is @ fundamental engine of functioning global economy as most countries inthe modern world rely in Middle East for their oil supply Bahrain, 182ee, Ag loans to inger period Lee. North Africa) tries in this tzation and crossroads ments. The ssting points Sregion was [Is Silk Road Ad Religious 2 area is a lost countries dply. Bahrain, +00 @ Globalization in Conremponany World @ n raq, Saudi Arabia, Kuwait, Qatar, United Arab Emirates, and are the ‘These Gulf ‘countries known as the oil titans are also the breeding grounds and argets of terrorism and religious extremism. Levant countries including Jordan, Syria, Lebanon, and Israel, the only modernized “a the region, are “Morocco, Algeria, Tunisia, n, and Turkey are it on Egypt, Yemer sectors of as its iid be descri in two “commonalities: The figure below ‘Shows specific economic subgroups of countries comprising MENA. Economic Subgroups Countries FOIRRIch Labor Importing Bahrain," Kuwalt ‘Oman, Libya, F United Arab Emirates, Qatar, and ‘Saudi Arabia States OiRich Labor Abundant | Algeria, Isiamic Republic of Iran, States Iraq, and Syria NICs Oi-Poor Labor Abundant | Egypt, Morocco, Turkey Oil-Poor Limited Natural | Israel, Resources States Lebanon Tunisia, Jordan, and Natural States eo Table 8.1 Economic Subgr Source: Richards and Waterbury International Handbook of Roots of Conflict and Coope historical deciine an and violence is a difficult task Resource Poor | Sudan, Yemen, roups of MENA countries. (2006); and Dahi & Demir (2008). Development Economics. instability of MENA outlines the Tracing the causes of its conflict because of international forces operating at the domestic level. There are explanations stressing the ole of ancient hatreds part of Biblical times, the division of Sunni and Shi'a, and the earliest crusades. Although, Bradford and Dillman 1 53+00 © Globalizarion in Contemporary Woald @ @e-—— (2008) identified contemporary causes of conflicts in MENA, the following are the modern-day factors: 1. External Powers: The “meddling” practice of non-Middlé Eastem powers made intervention of other countries in the internal ‘and regional affairs of MENA resulted to a Worsening/divides and The presence of operation in the region jomic. assistance rovided to countries supporting American hegemony . Its ongoing military penetration in Iraq and the created efforts in toppling radical ideologies and movements like ISIS give an idea of the US interference in the vereignty of MENA. Its very close attachment with'Israel is also an . When US and allies in Europe like United Kingdom cut off their aid to Palestinians because of Hamas-led government, it has (brought) to light: the hidden American agenda. 2. Adventurism of Regional Leaders Saddam Hussein, Muammar Qaddafi, and Iran's Shi'ite ‘who are lers_are described as ‘brutal: and_ hrattonel. leaders (Dillman, 2008). The behavior of these leaders is To ‘concretize this claim, let us take for example the scenario when Iraq invaded Kuwait under the leadership of Hussein. His actions were rized as extreme in the sense that he used covert operation ‘and initiate punitive attacks. This is not a new concept as there is a number of regional leaders in MENA who enjoy employing adventurism as their Itis an act ‘example of adventurist in Middle East because ofits very aggressive Gctions in the past. The 1980 invasion of Iran and 1990 attack to Kuwait are just some of Saddam's political footprints. are very common practices of leaderst ere Libya, Mubarak of Egypt, and Clerics or Ayatolial 1s of Iran. 154|A, the bade ternal es and ince of [stance Stability btration es and in the also an allies in ecause hidden Shiite {ho are if these ENA. To ten Iraq hs were eration lere is a aploying Sanact pose of a fitting gressive Httack to Ctices of addafi of +0 @ Globalization in Conremporany World @ 3. Blaming the Religion The public perception every time conflict like suicide bombing arises, is that radical Islamist movement is the proprietor. It seems normal that a point will be reached where public (non-tslam) blame Islam and religion as political tools in promoting violence. The magnitude of religious violence and forms of proliferating bloody attacks particularly caught the attention and worry of the world. As ‘question such as “What are the causes of these extremism and “Islamic movements?”, the fact remains the same. The roots of these ‘acts could be found within the realms of economic and’ political troubles at the domestic level. The rising inequality, joblessness, and declining quality of life in MENA during the 70s pushed poor Muslims to engage in extremism movement in the ground. Expressions like “exclusion” and “injustices” are the main outcries of those who resorted to radical movements under the control of educated and wealthy individuals. The 9/41 attacks in|US brought a clearer view on how poor ‘Muslims used religion to defend their religion and territory. Suicide bombers faithfully used their innocence and bodies to start a new chapter of modem-day conflict in the world. In the last few years, the string of attacks in Europe like France, Belgium, Spain, and United Kingdom became more extreme where suicide bombing became a typical and normal tactic and form of attack. Perennial ‘The geopolitical significance of MENA offers high potential for ‘development if necessary steps will be put in place. Reforming and developing the region require three considerations: political reforms \d regional settlement, opening trade and investment markets, and ‘empowering wor ticipation. eee mee uekice) Peetu Wars in MENA are everywhere. It has experienced the Arab- Israeli war, the full occupation of Iraq by the West and domestic wars in Syria, Egypt and Lebanon, the invasion of Iraq to Kuwait and the Iran-Iraq war. These rivalries and conflicts hampered the alliances ‘and diplomatic arrangements in the region. Political security and regional stability are seen as prerequisites of economic developments. The idea of political unrest disrupts fundamental 155——~+*@ @ Globalization in Contemporary World @ @¢-—— conomic activities which could result to the diversion of funds to non-productive security expenditures (Rodrick, 1998; Asteriou and Price 2001; and Dahi and Demir, 2008). These funds which are intended for public consumption and social services are consequently being used for military operations expenses. When peace negotiations took place between Israel and Egypt with the inclusion of Oslo Accords in 1990s, liberalists were very optimistic on the entry of regional peace in MENA. However, things turned out differently, the international prices of oil decrease causing economies to manage the impact where limited alternatives are out of options due to its heavy economic dependence on oil. This dynamic of growth in MENA is described as a mixture of turbulence and volatility. World Bank characterized this on and off development as a by-product of the kind of political climate and governance system. Its authoritarian and ‘autocratic regimes are seen as at the bottom on governance quality in the world. MENA has ‘poor system on transparency and accountability among its officials and lacking in terms of openness to its people in political participation and representation. It is also a victim of self-shallow institutional policy- making, substandard and poor public services especially in oil-poor countries and corrupt administration, Corruption, nepotism, and favoritism are images of MENAs bureaucracy (Nau, 2009). eee The unstable growth and economic downturn of economies in the 90s due to the fluctuation of international prices on petroleum products fueled educated workforce of MENA to find jobs outside the region. US, Europe and wealthier Gulf states were destinations of skilled labor affected by the problem. Workers’ remittances sent to families helped the economy and foreign aid fills this gap) where economies and governments are expected to stimulate investments and jobs. Market” protectionism» was significantly utilized by governments; high restrictions on imports were imposed through adding tariffs to imported products. The oil industry continues to save economies especially its export sector.. The fluctuation in globel prices of petroleum is the biggest determinant and contributor to the 156bo funds to eriou and Which are fices are \srael and blists were However, {decrease Iternatives bn oll. This lurbulence ment as a system. Its bottom on Ystem on. lacking in ation and fal policy- in oil-poor lism, and | ‘nomies in petroleum lutside the ations of Bs sent to fap where vestments lized by through estosave in global Utor to the ——+e@ @ Globalization Contemporary World righ ‘growth rates and standard of living in the region (Dah and Demir, 2008). Regional ol products account for about fifty percent of MENR’s GOP and ninety percent in oitrich countries. This trade protectionism system was a solution to the! lack’ of/ innovative Fractices among industries in maximizing resource-rich countries. In connection to the above mentioned predicament, there were ‘two main reforms that were utilized to address regional Geeooment. First, inter-regional export of fuels was introduced to ‘export sector. The expansion of its market across the region ‘some parts of Asia and Europe was introduced. Second, the “onal trade in labor was initiated to confront the increasing and in the area as some economies are seong growth, These ppublic policies on employment and services general popular Support from the public which resulted to the perpetual enjoyment of political regimes in Society The problem of inequality in MENA is not confined only within the rich and poor but even in the interest and welfare of women. ‘Gender divide in most countries in the region is interpreted as'ancient and traditional: in= nature. It is “incontestable; there are some Significant. improvements in countries where women challenged barriers for their full entry and participation in’ politics and development. MENA on its part, has stil to learn from history. Nau (2009) discussed the following factors that are reasons on why women in MENA remain far behind the standards of other countries: «The family orientation in most countries in the region has strong belief on the limited social role of women. Family as a significant unit of the society believes that a wife or female partner should devote her time in attending the householé affairs. This includes caring for the children, housekeeping, ‘and being submissive to the decisions and will of the husband. Religious laws play a very critical role in changing the preferences and interests of women in MENA. ‘Religious policies in the region are more important than policies and laws created by other institutions like government and business. This norm limits the freedom of women.places where “times. This practice restricts the social behavior of women) such as its downside effect to employment and engagement “in public spaces. The idea of two-income household is unacceptable norm. A is expected to attend to the role as the main am females. They do not expect enormous changes and improvements: in the effort of the national governments in the region. There groups and institutions confronting the risks and dangers experienced by women in MENA. The flow of foreign aid intended to the agenda of women participation like the rights to education and “suffrage are This program especially coming from INGOs are designed to the gap of gender inequality and to include women in their priorities and policies. The data below shows the gender gap climate of the region during the year 2015 where 145 countries around the world were surveyed by the WEF. Top 10 MENA Countries Global Rank Tsrael 46 Tunisia 119 United Arab Emirates 124 Kuwait 126 Qatar 127 Algeria 128 Turkey 130 Bahrain 132 Egypt 135 Mauritania 136 Table 8.3 2018 WEF Global Gender Gap Index Report. ‘Source: World Economic Forum. 158