Adonis Diaries

Archive for March 31st, 2010

How markets can function in developing countries? (Mar. 31, 2010)

            Many developing States have leaned during Globalization to act contrary to the International Monetary Fund (IMF) and World Bank pressured suggestions on policies for economic stability and liberalization of State’s monopolies.  The successful developing countries have learned the main pre-requisites for an adequate functional market working properly. They are:

            First, reforming institutions for control and management of speculative economic investments; they erected barriers and taxing mechanisms that desist speculative financial multinationals from ruin their real economy base.  They trained personnel and expert professionals to target and pinpoint investments that do not benefit their society but force the State to pay high interest rate on superfluous loans that enrich only the speculators.

            Second, successful developing countries focused on reforming institutions such as the legal business system that arbitrate speedily according to compatible modern business laws. Democratic institutions that establish continuity in power successions on timely manner encourage the influx of foreign investment.

            Third, policies of eradicating unemployment by encouraging investment in rural regions and extending greater powers to regional administrators for local economic development have much greater return values on investment. Cheaper land and affordable manpower in rural areas enhances economic development and the consequent investment on appropriate infrastructure, transport, and educational facilities.

            Fourth, policies that encourage banks and financial institutions to opening branches in rural regions with government support in lower interest rates, minimizing paper works and collateral requirements on family businesses.

            Fifth, adopting gradual privatization processes on State’s monopolies for inefficient government assets so that further analysis and evaluations of the process rectify errors in economic assumptions and models.  Privatization into many smaller enterprises should be done to encouraging competition for higher quality products and services. Until the institutions have learned and assimilated the pitfalls of privatization then further phases should be postponed.

            Sixth, the State should intervene to stem galloping inflation to reasonable levels.

            Seventh, budget deficit should not be considered a critical factor that needs to be reduced quickly at the expense of development in real economy and people’s quality of life. The best return in government investments are in education, training in economic sectors that do not require high investment and that put to work many citizens.  Tourism is a highly expensive sector and highly polluting. Unless the government is set to remedy, control, and manage sanitation requirements then it is better to postpone investing on tourism until relevant infrastructures are in place.

            Eight, local and regional economic policies should take priority over highly dense urban centers where land and infrastructure needs are extremely expensive and unable to catch up with the flux of citizens fleeing rural impoverished regions.

            Ninth, custom tariffs should be eliminated on technological imports and highly taxed on luxury items such as expensive cars, expensive beverages, and expensive furniture. In any event, it is the poorer sections in society that are indirectly paying for the tariff barriers, especially basic food stuff.

            Tenth, any economic policy must rely on the power structure within particular economies.  When syndicates are powerful and independent of political party allegiance then syndicates should be represented in parliament and government. When most enterprises are highly indebted then government should facilitate credit extensions for business activities; reducing tax levels on small businesses along with incentives to better control and administration of enterprises keep the market functioning and potentials readily available for further development.

            Eleventh, government should invest in “think tanks” with mission to be informed in timely manners on policies, decision processes, and discussion of world institutions such as IMF, WB, WTO, and UN.

            Most important, developing States with economies that can be salvaged should devalue their currency rate of exchange and promptly default on external debts: every dime paid out to financial multinationals and the IMF loans is actually paid for by the poorer sections in society on speculative investments that benefit speculators only.

Nomad pragmatism versus submission to Allah; (Mar. 30, 2010)

The nomads (or bedwins) in the Arabic peninsula before Islam were highly individualistic, even within their clans.  The idols they came to ask for personal benefits and privileges had to satisfy their desires.  Otherwise, idols were discarded as pure rocks or woods.

The large wood carved idols were very prized by the rich tribes because they were imported and were expensive.

Here you have a nomad from the tribe of Mudar arriving to give sacrifice to a rock idol named Saad (Happiness) around Jedda: he wanted his preferred idol to protect his flock of camels and wanted his stock to fructify.  The camels smelt the blood of sacrificial animals on the rock and got agitated; they fled to the desert.  After gathering his camels the nomad returned alone to his idol and declaimed a poem saying: “We came to Saad to unite me with my camels.  Saad divided and dispersed us. Who is Saad in fact? He is but a stupid rock lost in a sterile desert.”

Another example is told of the famous poet Umru2 Al Qaiss, a leader of a Christian-Jewish sect clan. He came for benediction for his next vengeance raid on a rival clan that assassinated his father. The oracle demanded Al Qaiss to be patient and he got angry and said: “Go suck my father’s dick.  If he were your assassinated father you would have not been consulting me anyway”

Islam of submission to one and all-powerful Allah was hard on pre-Islamic tribes to swallow: they needed control over their idols.

The Prophet Muhammad’s verses, lambasting the arrogance of the Pharaoh of Egypt for refusing Moses message to believing in one God, is memorized and recalled by Moslems when they target dictators “taghia”.  The Pharaoh had retorted: “only senile people and weak in their mind submit to another God but me

It is interesting how Moslems, especially urban living Moslems, criticized harshly and verbally their “taghia” leaders, but practically submit to them as long as he is in power.

Submission to Allah in Islam is but a continuous and relentless call against arrogance and blatant individualism: Being considered as equal in a society of believers (man/woman, free man/slave, regardless of race and origin) was anathema to nomadic customs and traditions.

The key verse in the Koran is “We created you man and woman; we have constituted you in confederations and tribes so that you get to know one another.”

The quick victories of Moslems in the first century after the death of the Prophet are mainly due to this spirit of equality of believers regardless of race or origins. It swept away caste and clan affiliations and ancient hierarchical privileges in its advance toward Africa and then to Far East Asia.

Equality among believers was the power of Islam until dynasties of Caliphs had to rely on clans, tribes and castes in conquered lands for support to their dictatorship.

The Moslems have this impression that the current Western civilization, especially among the political leaders, doesn’t give a damn about a God, but plainly submit to power and money. The Western leaders acquired this basic knowledge never to admit that they are no believers in one God, but to constantly ask for His benediction before the start of a war or a critical campaign.

Mainstream Moslems tend to agree that Western leaders think like the Pharaoh “Only the weak in the mind (the common people) believe in one God”


adonis49

adonis49

adonis49

March 2010
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
293031  

Blog Stats

  • 1,440,639 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.adonisbouh@gmail.com

Join 783 other followers

%d bloggers like this: