The Middle East: It’s the Economy Stupid

With all the recent turmoil in the middle east, something is missing. The real drivers of the conflict are certainly political: the mass of the people want a say in the running of their countries. But equally valid are the economic drivers: the young unemployed want an economically viable future and an education system that supports it. They want wealth creation and a fair non-corrupt distribution of the rewards from wealth creation.

So just a word of caution. We know how countries like China and South Korea have prospered: by a judicious mix of state economic strategy and capitalism: by a hybrid. And we know that pure socialism bankrupted the former Soviet Union and pure capitalism turned Russia in an oil dependent corrupt non-value add state. So perhaps we can develop with say South Korean advice, a new model that creates value adding business in the middle east, and a political and education system to support this. This will not be possible, based on global economic experience, without major steps to educate and improve the status of women. This is key to societal literacy levels and the forward development of the economy. There is a lot of practical and theoretical work to do in this area. Here’s hoping.

And as I have previously posted, the transition to value add will be toughest in oil rich countries which have copted out of the value add struggle and just inhale the oil funded Cool Aid. Somehow they don’t seem to realize: this too will pass and it is critical to invest oil wealth in domestic wealth creation, not to mention plentiful water supplies and social justice. A very tall order.

Here is a comparative feel of the standing of the mid east in the knowledge economy versus some comparable developed countries:


Advertisements

About creativeconflictwisdom

I spent 32 years in a Fortune Five company working on conflict: organizational, labor relations and senior management. I have consulted in a dozen different business sectors and the US Military. I work with a local environmental non profit. I have written a book on the neuroscience of conflict, and its implications for conflict handling called Creative Conflict Wisdom (forthcoming).
This entry was posted in Conflict Processes, Economic Conflict, Middle East Conflict, Ways to handle conflict and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s