Wednesday, July 30, 2008

Culture and the Queue

As pissed off as I get about certain things in the Middle East, this post from Emirates Economist regarding a recent article in Abu Dhabi's The National, reminds me that perceptions of politeness and rudeness are often cultural in nature and, therefore what I perceive as an act so rude as to deserve a beating, people from another culture may not even think twice about. Here's a quote from the article:

...queuing, in its many forms, is alien to the UAE, says Dr Alnajjar [Syrian origin, worked and studied in US for a long time, so has both ME and Western perspective]. This does not mean the country is rude. On the contrary, he says, the UAE, especially Emiratis and Asian workers, are scrupulously polite. But there are sharp differences between the Gulf perception of politeness and the West.“Every society has its own ideas on what is polite,” he says. “In the UK, it is polite to ask a lady on a date. Here it is not. In the UK, it is polite to say to a lady, ‘You are beautiful’. Here it is not. If you go to a man’s house and invite his daughter out, he might kill you.“In the UK, people will eat in front of you. Here, it is impolite not to offer food if you are eating.”

There are any number of examples here to illustrate the point, however, I think that some cultural phenomena are fine, while others (such as jumping queue and the other associated behaviors) are damaging economically, socially, and politically. These behaviors, at root, show a cultural propensity not to obey the rules of society, whether those be unwritten societal norms or actual laws. This is a cultural phenomenon that the Middle East and other developing regions must overcome in order to reach their full potential. If everyone (to a degree) respects the rule of law, the societies will lose some of the wasteful practices that hold back efficient production in general, and generally piss a lot of people off. Some of this is a question of public education, but it also takes enforcement. People obey speed limits when they are forced to by police or radar. People stay in queue because employees will not serve line-jumpers and (in New Jersey and other similar places) you'll get your ass kicked by a pipefitter or teamster if you try it. But in order for this enforcement to work, the individual needs to know why he was corrected for his behavior.

Tuesday, July 29, 2008

Oman Visa Restrictions

Economic Times of the India Times reports that the Omani Ministry of Manpower announced that it has stopped the issuance of visas for foreign laborers in a number of fields to work in Oman. These include tailoring, cleaning, import/export, electronic repair, textiles, and others. Existing visas will be renewed however.

In a questionable claim, a ministry official asserted "There is plenty of local talent but there's very little space available for them." I'd say there are plenty of Omanis available to do many of these jobs, but little existing talent in the fields. There will need to be a lengthy period of apprenticeship to transfer the existing knowledge from the expat workforce to Omanis in fields like tailoring and other skilled crafts.

The article also contained some statistics that back up some of my former assertions about the nature of the work force in Oman. According to Ministry statistics, Omanis fill 86 percent of jobs in most government sector departments. Yet in the private sector, Omanis rose from a paltry 14.7 percent in the 90s to only 16.8 percent in 2000. Undoubtedly the figure has risen in the eight years since, but the figure is still far too low for a country that is looking to create a sustainable post-oil economy.

Beyond stopping the influx of foreign laborers, Oman will have to wage a campaign to change attitudes toward these professions (especially cleaning and garbage removal), to ensure Omanis are taking advantage of the educational opportunities available to prepare them for these sectors, and to ensure that employers and current workers in the fields have an intelligent plan for apprenticeship and transfer of knowledge. Otherwise, the decision will die a quiet death of non-enforcement when employers realize that they cannot live with its provisions.

Friday, July 18, 2008

Once the Jinn is out of the Bottle...

Dubai has recently cracked down on "lewd" behavior that is contrary to the city-state's morals. See the UAE Community Blog for a set of links to news articles.

But once the proverbial jinn is out of the bottle, can it be stuffed back in? Dubai wants to sell itself as a world tourism and business destination. In becoming what almost everyone describes as Las Vegas without casinos, though, Dubai has also sold its soul to a degree. It may be a bit late to correct course to try to be a "conservative" tourism and business destination.

Oman's slow, but steady and staid course may look a lot more intelligent in coming years. Financial Times reports:
Oman is developing itself as an upmarket tourist destination with a focus on culture and adventure, as distinct from the more commercial offerings of its immediate neighbours, Bahrain, Qatar and the United Arab Emirates. ...
Salim al-Mamari, director general of tourism promotion, says Oman has taken a "different approach" to tourism development. "We are paying attention to maintaining our identity. We are not into mass tourism. We are looking for responsible tourism, meaning those who can help me maintain Oman as it is."

One has to respect Oman and Omanis for telling it like it is, avoiding soul-selling greed, and aiming for a development model that they can live with for the long term...

Thursday, July 17, 2008

Economics, Capitalism, and Political Development

For those who are interested, one of the Economist's blogs is having a "summer book club" discussion of Milton Friedman's Capitalism and Freedom.

As reported by the Gulf News and linked by Emirates Economist, Abu Dhabi, of all places, is having serious fuel shortages these days.

Washington Post reports on Saudi Arabia's plan for a post-oil economy. Major problems are that education is still poor and Saudi manufactures are extremely few.

These are all related. How? I don't really have the time to go into great detail, but the bottom line is that Gulf states have massive economic resources in their hands due to the riches beneath their soils. These states have been able to extract these resources with relatively little effort and development. The knowledge and expertise for this industry was rented, leased, bought, contracted, however you want to look at it, from developed economies. The technical know-how, the instruments, and the educated citizens were bought, brought to Arabia, and turned to at extracting oil. This came at quite a profit to the oil companies and their employees, but also to the state governments themselves. But, critically, in this jump to prosperity, the ruling elites were never forced to build a state: educated citizenry, capable institutions, far-reaching infrastructure, heavy industrial base, and the rule of law and sense of national identity that binds all of these things together.

Like the communist economic system, this state-centric economic system is showing signs of wear and tear as the Abu Dhabi story points out. An oil rich Emirate cannot supply its own citizens with gas because there is no incentive for companies to do so at unfavorable terms. Gulf states are realizing this, and are moving toward greater degrees of privatization, are attempting to improve infrastructure, and are revamping educational curricula. Yet, some of the most important aspects of state-building, the involvement and investment of the citizens, unified under a national identity and respect for the rule of law as enforced by the government, is lacking. This will be a major challenge in the coming years. How do Gulf rulers change their societies to create post-oil economies that employ citizens in a meaningful way and provide them and their government with a powerful income source without giving up the social provisions, price supports, and other handouts upon which they have based their legitimacy? And once citizens are more educated and involved, can the ruling elites keep the tight grip on the press and other levers of power that they now have?

The Gulf over the coming years will be a real-time laboratory in state-building as they attempt to jump to economic prominence that it took other countries centuries to create. While this project is starting with the economy, there is likely to be a great deal of spill-over into the political realm, which is a main topic of Friedman's book. If the Gulf is successful in creating a post-oil economy capable of maintaining some degree of the income it enjoyed from oil, the political sphere is likely to look quite different than it does today.

Sunday, July 13, 2008

Attitudes About Work and Expats

I have gotten myself into an argument about foreign workers in the Gulf, and specifically Oman, with a commenter on the Muscat Confidential blog. See the comments for this post.

I have very little respect for some Omanis' (and other Gulf Arabs') attitude of "if you don't like it, just get out." The reason why I have this lack of respect is because, while nearly every country is dependent on foreign labor to some extent, the dependence on foreign labor in the Gulf is nearly complete. These rapidly expanding economies surely need a larger than normal portion of foreign labor due to their small populations and high growth rates. This is normal. What is not normal are cultural attitudes toward work.

My final days in Oman give a good example of what I am talking about. The moving crew that boxed, wrapped, and carried my goods out of my place were from a number of Asian nations. They were very professional, hard-working, and congenial. I was far more satisfied with the work they did than I have been with any of the experiences I had moving around America. When it came time for them to crate all my goods on trucks, the obligatory Omani driver came out with a truck. At least in Oman, unlike a number of other Gulf countries, jobs like taxi and truck driving, and some non-labor intensive service jobs are done by Omanis in an attempt to decrease reliance on foreign labor. Yet, when the driver showed up to the house (and I had similar experiences in other situations with Omani truck drivers, so this is not a unique instance) he did not partake in any of the labor. He quickly realized that it was too hot outside for him to stand idly by, watching the foreign laborers carrying heavy boxes under the sun, so he asked if he could come inside and sit on my couch while they worked. So he sat there in his immaculate white dishdasha, text messaging on his cell phone while the rest of the crew toiled away.

Every once in a while I'd go from my tidying up inside to check on the progress outside and to take the workers some juice and water. Most of the time the Omani driver was on the couch, but twice I found him correcting something he didn't like about how the foreign laborers were working in the terms and tone one would use with a child. Of course, the workers had to stand and take his abuse in the most deferential of manners.

I cannot respect people who imagine that their culture and heritage makes them so much better than others that they cannot lower themselves to hard work. In this, I do not mean to say that all Arabs or all Omanis fall into this categorization, but I mean to say that I do not respect those who imagine themselves to be too good to work like others, whether those others are expat laborers or managers. Perhaps my thinking is skewed or I have an undue cultural bias, but to me, this mindset seems to be the most breathtaking sort of arrogance, and an incredible twist of logic coming from a people whose recent ancestors eked a living out of the harshest of environments through incredibly hard work.

The driver in question told me how hard it was to make enough money to live on these days as he sat idle on the couch while a dozen foreigners worked away. Imagine this. If each Omani driver took active part in the labor of moving boxes, or assembling deliveries, or whatever else the three foreigners packed in the cab with him do, instead of sitting idle while they do the work that is beneath him, the companies could do without one of those foreigners. With one less foreigner to pay (because the driver was now doing his job), they could afford to pay that driver more. Companies would be more productive and Omani drivers would be making more.

In the U.S., the driver of a delivery or moving truck works just as hard as the others. Often he or she is more experienced and is the supervisor, but a supervisor that works in lifting, moving, assembling, etc. There is no free ride. When I've been moved within the U.S., the driver of the moving truck has often been the owner of the tractor-trailer rig, which is an asset well in excess of $100,000. These driver-owners have been among the hardest working movers I've witnessed, sweating with the day laborers in order to raise their productivity and their profit. They are not making money while sitting idle.

Someday, the drivers and other workers in Oman and around the Gulf will have to realize that their culture and heritage do not truly excuse them from hard work. In fact, they should be proud of the hard lives their ancestors led and should resolve to do some hard work themselves, in the interest of improving their own lot and that of their country. When the majority start working as hard as the expats, I will have much more respect for the attitude "like it or leave it."

Wednesday, July 9, 2008

Dubai Resident Visas

This story from the UAE Community Blog is a perfect example of the difficulties cities like Dubai are going to face in trying to be a world-class tourist and business destinations without having first developed rational institutions and a public educated and invested in the process of modernization. Current confusion on visa rules threatens to shut out some expats who have bought property but cannot get resident visas.

Stories like this should give pause to anyone who thinks that Dubai is on the fast track to first-class status as a business or tourism center. Once the glitter of the big buildings and opulent development wears off, one must realize that you cannot trust the government and the citizens to provide you with a safe, stable, predictable, and amenable work and living environment over the long term. Until attitudes and institutions change, these bases of first-class business and tourism centers cannot be guaranteed in Dubai. Things can still change overnight there, and speculators stand to lose their shirt if the wind shifts.