Saturday, July 15, 2006

The Impact of Conflicts on Globalization: A Look at the Middle East

The fiery middle east crisis has escalated again as Israel and Hezbollah trade fire. In the current battle, echoes of the older conflict continue to ring in the flaming stones and rapid burst of gunfires and explosives; an understanding of the conflict’s history can not reverse decades of mistrust and animosity amongs groups involved and persons associated with the conflict in the region.

The Middle East has been a site of conflict over land sanctifed to Jews, Muslims, Christians and other religious groups for many years. Despite involving a relatively small land area and large number of casualties, the Middle East conflict has been the focus of worldwide media and diplomatic attention for decades. Many countries, individuals and non-governmental organizations in the world feel involved in this conflict for many different reasons. Although some consider the Arab- Israel conflict a part or phenomenon of the clash of civilization between the western world and the Arab Muslim world, others oppose this view. Whatever the concept, the animosity emanating from this conflict has led to divisions among supporters or perceived supporters of one side by supporters of the other side in many parts of the world. This growing anomisity is also contributing to divisions and mistrusts among parties and key players of the conflict in the region. Moreover, the escalation and intensity of the conflict is worrisome for global peace, security and development worldwide. Already, according to reports, Impala Platinum (Implats) led South African shares lower because of the uneasiness over Middle East tensions hit emerging markets, and there has also been a sudden increase in the price of oil in the world's eighth-largest oil exporter, Nigeria.


The recent escalation of violence in the Middle East undelines the disparity between reality and diplomatic maneuvering in the region. The violence has also redirected the focus of world leaders. At the ongoing G-8 summit, the top agenda were to be energy security, infectious diseases and education, but it appears the world leaders are already preoccupied by the violence in the Middle East. This summit was the first G8 summit in which the African agenda was integrated into all deliberations. It is evident that these priorities may fall by the wayside as a result of the recent eruption of violence in the Middle East.

The ongoing violence in the Middle East is considered the most serious since 1996 when Israel mounted a 17-day offensive against Hezbollah in southern Lebanon. The recent fighting has led to widespread pronouncements throughout the Middle East. Iranian President Mahmoud Ahmadinejad warned of a "fierce response" if Israel widened its offensive against Syria. Israel also blames Syria and Iran for backing the Hezbollah terrorist group in Lebanon. In an emergency session on Friday, Lebanon urged the United Nations Security Council to impose a ceasefire, accusing Israel's offensive of driving it "to its knees." But Israel's ambassador Dan Gillerman told the emergency session that the Lebanese government was responsible for the Israeli offensive because it allowed Hezbollah terrorists to operate in southern Lebanon, which led to Wednesday's abduction of two Israeli soldiers.

In the midst of the ongoing violence, conflict resolution analyst and peacebuilders continue to deliberate strategies for ceasing the hostilities and restoring peace in the Middle East. Already several peace agreements has been brokered, signed and then broken. While world leaders shift their positions, policy makers and peace brokers continue to draft and alter agreements, Dr. John H. Lebovic a political scientist tossed an idea: He asked whether the process of Globalization could bring cooperation and stability to the Middle East and its relations to the outside world. Lebovic’s comment provoked brainstorming and an analysis of how the process of globalization could promote stability, cooperaton and also reduce conflict in the Middle East and other conflict societies.


To understand the process of Globalization, the process, its aspects and application must first be understood. What then is Globalization? Globalization is a process that brings changes in societies and the world economy through increased international exchange of goods and services across international boundaries. Although increasing international trade is seen as the usually primary meaning of "globalization, " globalization has become identified with a number of trends, most of which may have developed since World War II. These trends include greater international movement of commodities, money, information, and people; and the development of technology, organizations, legal systems, and infrastructures to allow this movement. It describes the increase of trade and investing due to the falling of barriers and the interdependence of countries. In specifically economic contexts, the term ‘Globalization’ refers particularly to trade liberalization or free trade. Globalization also includes cultural exchanges between and among people and societies.

The processes of globalization is initiated and implemented by people, who must communicate, collaborate, interact and discuss aggreements, the implementation of programmes and projects which forms an integral part of cooperation. Globalization promotes collaborations; collaboration is an act of working together jointly and not independently. This sort of collaboration sort of diffuses tension, hostities and promotes tolerance.

Views of Globalization
Political economist believe globalism is related to laissez- faire capitalism and neoliberalism. Neoliberalism argue that globalization is the process of persuading governments of lesser developed countries to alter political and economic policies in exchange for receiving loans from other states or, more commonly through loans from the World Bank.

Although this definition of globalization by neoliberalism shares a number of characteristics with internationalization and is often used interchangebly, some campaigners prefer to use globalization to emphasize the erosion of the nation state or national boundaries. Under Globalization, national boundaries continue to exist as globalization provide a growing global consciousness and identification as part of an interconnected world rather than a specific Middle East state. This global consciousness will discourage nationalistic thought and foster international cooperation, thus reducing the conflict in the Middle East.

The stance by liberalists that countries heavily dependent on the global economy (whether measured by trade or investment) are likely to experience higher economic growth, greater affluence, more democracy, and increasingly peaceful conditions at home and abroad indicates that the Middle East will benefit immensely from globalization.

Even though there are other arguments by dependency theorists that high levels of trade and investments generate greater economic inequality and leads to the risk of political instability, this argument neglected to discuss the kind of trade that promotes inequality. This suggestion that inequality is a result of globalization is what public interest activists as well as state nationalists use as argument in campaigning against globalization.

It is important to note that the consequences of trade are dependent on what is being exported. Exports of manufactured goods create high levels of welfare and equality, while exports of agricultural products promote poverty and inequality. Although inequality is but one of the many factors which lead to political instability, inequality is not a product of all exports. Countries exporting agricultural products do not need to promote education, and the country will remain poor and with high inequality. An example of the export of agriculture or raw products is the exportation of rubber from Liberia and Cocoa from Cote d’ Ivoire. Tappers of rubber latex in Liberia and Cocoa harvesters in Cote d’Ivoire are mostly illiterate without any specialized skills. If Liberia or a country can manage to produce manufactured and other highly-processed goods inequality is reduced—as has happened in several East Asian countries. The reason for reduction in inequality in a country that produces manufactured and other highly- processed goods and exports is because such processes require highly skilled workers in order to industrialize, and these workers eventually become active in the local labor movement. The result has been a higher level of welfare, and a decrease in inequality. The World Bank (1996) argues along the same lines, pointing out that China and Vietnam have experienced considerable economic growth after replacing parts of their centrally planned economies with free trade and market liberalism.

In Israel today, all the major indicators reflect the severe strains the economy is under: GDP per capital is down; unemployment is up; and apart from the stock exchange, there is little fresh direct foreign investment coming in. These are all the high costs of conflict.

The situation is somewhat similar in the West Bank and Gaza. According to a new United Nations report, the majority of Palestinians have been reduced to surviving on one meal a day, and malnutrition is approaching the level in Africa. Clearly, unless there is economic activity and job creation, more and more desperate young people will join the Intifada or other groups.

Violence Drives Away Capital
Is there a lesson here for the Middle East? Clearly, globalization will bring immense benefits to the Middle East, a region preoccupied with conflict, ancient enmities and continuing violence. Regional cooperation based on Israel's cutting edge technology, relatively cheap Palestinian labor and a huge Arab market will make the Middle East a formidable player in the world economy. The region will not only be an importer of goods and technology, the Middle East will be counted among economic powerhouses like China, the European Union and the USA.

Through globalization, investors, trading partners and governments of the Middle East will engage in trade discussions, negotiations on investment contracts, banking activities, trade exhibitions which will gradually result in building trusts and understanding. These formal interactions will lead to collaborations and coordination and gradually led to informal interactions among various groups in the region. Such networking among parties and groups and individuals will gradually transform into consistently interacting and working together within the Middle East which can only be achieved in a stable environment. As governments, institutions and citizens of the Middle East network and cooperate, they will become more opened to the varying philosophies and beliefs held by others. This intermingling will result into tolerance which will help parties in the Middle East conflict to begin to understand that through cooperation, they can better work together and resolve their differences. Gradually, through this continuing communication and interaction, Middle Eastern states will increasingly become dependent on each other and the outside world for export & import markets. This cooperation in the Middle East will result into good relations with neighboring countries and the world and also serve to reduce conflict in the Middle East. The Middle East will realize that violence and the threat of regional conflict drive away capital and development.

Internal violence and the threat of regional conflict drive away capital faster. Based on Pakistan's experience, the lesson is clear for the Middle East on the importance of an investment friendly environment. Today, despite the large infusion of dollars into Pakistan since 9/11, there is hardly any fresh foreign or local investment being made. While money is being invested in real estate, the stock exchange and the service sector, nobody is thinking of investing in industries in Pakistan. This lack of investment is based on the lack of confidence in the country's future which means very few new jobs are being created, and millions of unemployed young men without a stake in the system can easily be recruited by any fighting group.

Globalization processes encourage increased economic benefits. Once the Middle East encourages the processes of Globalization, there will be increased economic benefits that will improve the lives of everyday citizens and extremists in Middle Eastern countries. With increase economics, groups will have a harder time obtaining new recruits for their mission. The younger generation will realize that there is more to be gained from cooperating and being a part of the global movement then fighting against it.

Globalization has much to offer the region with its huge mineral wealth, its sizeable number of educated workers, Israeli managerial and technical skills and the relatively well-off Arab market. China is another example of a country taking advantage of new economic forces to build its economy while putting regional disputes on the back burner. Despite its long-standing territorial dispute with India, it is trading and talking with its erstwhile foe to their mutual benefit.


Through globalization, people around the globe become more connected to each other than ever before. Information and money flow more quickly than ever. Goods and services produced in one part of the world are increasingly available in all parts of the world. International travel is more frequent. International communication is commonplace.

Another positive aspect of globalization is that it promotes transparency and checks and balances on industries and institutions around the world. As a result of the transparency it provides, several institutions are becoming aware of the importance of credibility and are beginning to put in place measures to protect their industries. Realizing the importance of name to global trade, industries that sell directly to consumers, including clothing, athletic shoes, and rug manufacturers rely on their reputation and brand name. This makes them particularly sensitive to being associated with violent conflict similar to what is in the Middle East. In unstable areas, these industries are likely to withdraw or adopt corporate codes of conduct that address human rights issues. These light industries are the first ones that many countries including the Middle East need during post-conflict reconstruction.

Organizations
Another characteristics of globalization for the Middle East is that multi-national corporations, nonprofit organizations, governments and other institutions realize that cooperation and stability in the Middle East will reduce the refugee crises, weapons proliferation, terrorism, narco-trafficking, peacekeeping and humanitarian emergencies, environmental problems, global health issues, technological developments, and key economic trends which affect their own resources, stability and development.

Multinational corporations will also find it important to work with partners in the Middle East to reduce conflict, bring cooperation between and among rival groups and stability in order to continue operations in that society.

One example of how the process of globalization has promoted strategies for conflict reduction is through the efforts of American Express and others engage in peace promotion activities. Several international travel and tourism industries have a direct interest in peace, and are becoming more active in promoting peace. American Express and other travel and tourism industries are aware that the Middle East has several historical and scenery sites for travel and tourism. These industries and American Express will work with parties or governments in the Middle East in promoting peace, stability and cooperation to support peace-building efforts and also engage in advertising travel and tourism industries of the Middle East.

Media
In the course of globalization, the sharing of information via mass media and internet will increase the understanding and decrease the wrong impression of citizens and nationals in the Middle East. The media industries can be used as a tool to promote tolerance and cooperation and stability and to facilitate the work of civil society groups and international organizations that are involved in conflict management activities. One instance of the power of the media on issues of the Middle East was evident during an interview with Shimon Peres. (CNN, 2000) On a CNN interview broadcast January 3, 2000 Shimon Peres observed that access to fresh water is a key source of conflict in certain regions, but can also present unique opportunities for peacemaking initiatives: "There are many ways to save water and to produce water. Water may be the watershed between peace and war in the Middle East. We spent over $100 billion over the last ten years to acquire arms. Would we invest the same amount of money to produce water or use [recycled] water, we would enjoy peace and prosperity at the same time . . . If we shall together try and bring in a real plan to supply water to all the needed parties of the Middle East, it can be both good business and a great contribution for peace."

The process of globalization will bring cooperation and stability to the Middle East and its relations to the outside world by helping parties to understand the effect of conflict on both human and infrastructure development. Contrary to views that the process of globalization will have a negative influence on the Middle East, like every system, globalization when manipulated becomes a multifaceted process. Just as capitalism requires a network of governing systems to keep it from devouring societies, globalization requires vigilance and the rule of law. Anti-trust laws, the Securities and Exchange Commission, labor unions, charities, the Federal Trade Commission, and countless other agencies and organizations keep American capitalism in check. Similar transparent mechanisms are needed in the Middle East to make sure globalization is a positive force in the world. Globalization will bring tremendous opportunities and benefits to all parties and sectors of society in the Middle East.

The bottom line is that globalization and conflict just do not mix. In other words, the Middle East like Somalia, Sudan, Democrat Republic of Congo, Cote d’Ivoire, and other conflict societies can decide to fight or they can decide that they want to prosper, but they can't do both things simultaneously.

Copyright © Musue N. Haddad