The consequences of the revolutions and protests of the Arab Spring and their full impact on the world is as yet unclear. But the reaction of the Muslim world to the upheaval from an economic perspective is likely to become clearer during this week’s seventh annual World Islamic Economic Forum (WIEF), known as the “Islamic Davos,” a gathering of world leaders from Muslim countries in Astana, Kazakhstan.
The attendees offer perspective on the Islamic community as more than just the Arab states of the Middle East – it’s the first time the global meeting is being held in a location other than Asia or the Middle East – and representatives of Saudi Arabia, Jordan, Iraq, the UAE and other major nations will be in attendance, as well as the Malaysian and Tajik prime ministers.
Yet for those seeking signs of stability in the Muslim world, the 7th WIEF comes at a time when serious economic questions are looming for many of these nations. The contrasts between leaders who give nods to tolerance and equality and those who merely speak in the correct buzzwords are hard to discern. Kazakh Prime Minister Karim Massimov’s opening remarks Tuesday touched on this, noting that “in the 21st century it is important to be open to new ideas, new influences and create a society where everyone can develop equally,” while placing a goal of small and medium-sized businesses taking a greater share of GDP in his country by 2020. Other nations in attendance have similar growth goals — but all seem overly optimistic in a time of global instability and economic downturn.
As George Washington University professor Hossein Askari wrote last week in the Asia Times:
This means that the nations themselves need to take steps to modernize and embrace the free marketplace through internal change, change which fosters growth among the younger and more innovative communities in lieu of the ruling families and entrenched crony groups. While President Obama has promised billions in foreign aid during his tours overseas – including a total of $2 billion in debt relief and guaranteed loans to Egypt in his recent controversial speech – throwing money at these nations is going to do little more than just sweeten the pot for those already ensconced in power. One of the keynotes at WEIF is from Malaysian PM Najib Razak, who has in the past few months endorsed moderation and condemned terrorism in remarks at Oxford and New York City. My hope is that he builds on an address he gave last week in Singapore which recognized the danger of focusing too much on potential conflict between the U.S. and China, ignoring the integrated economic realities of the globe:
Here’s the realistic statement: in the wake of the Arab Spring, the Muslim world needs economic growth above all to stem the possibility of an anti-democratic backlash in the short term and the long. Real progress will only be achieved if Obama and other world leaders work toward this goal, empowering innovators and companies through free markets and fostering investment from private industry, not the American taxpayer dime. The Muslim world can do this, but it will require throwing off many of their anti-market traditions and entrenched cronyism — and it will require change that starts from within.
Benjamin Domenech ([email protected]) is a research fellow at the Heartland Institute and a contributor to RealClearWorld.
