EMAIL DETAILS
SUBJECT:
The J-curve hits the Middle East - FT - Eurasia Group CEO
PRI: NORMAL
FROM:
M
mandrews@ips.edu
DATE:
2011-02-17 21:00:47
MSG_ID:
<26AC97B8-A141-444B-89DA-6346B1DE461F@ips.edu>
RECIPIENTS:
TO:
D
Devon Archer
<darcher@rosemontseneca.com>
E
Eric Schwerin
<eschwerin@rosemontseneca.com>
H
Hunter Biden
<hbiden@rosemontseneca.com>
CONTENT:
TEXT: YES |
HTML: YES
PROCESSED
In light of our discussions. > > The J-curve hits the Middle East > > By Ian Bremmer > Published: February 16 2011 20:28 | Last updated: February 16 2011 > 20:28 > > No one could predict that the death of a Tunisian vegetable vendor > would spark revolts across the Middle East, threatening regimes from > Libya to Iran. But while these shockwaves might seem chaotic, they > are in fact only the latest example of a powerful political > phenomenon: the J-curve, or the dip in stability as countries move > from closed to open societies. The concept also explains why many of > the region’s governments are now caught in what may prove to be an > inescapable trap. > > EDITOR’S CHOICE > Martin Wolf: Egypt has history on its side - Feb-15 > > Opinion: From Tahrir Square to democracy - Feb-14 > > Egyptian military takes firmer control - Feb-13 > > Comment: Signs autocrats must watch for - Feb-14 > > Gideon Rachman: Reflections on the Revolution in Egypt - Feb-14 > > Analysis: Egypt: Evolution of an uprising - Feb-13 > > The theory goes like this. If you plot the relationship between a > country’s stability (on the vertical axis) and its social and > political openness (on the horizontal axis) the points that mark > every possible combination of openness and stability will produce a > pattern that resembles the letter J. Most countries start off closed > and stable (think: North Korea). Many end up open and stable (like > Britain). But in between there is a turbulent transition. Some > governments, such as post-apartheid South Africa, survive this > transition. Others – the Soviet Union, Iran under the shah and the > former Yugoslavia – do not. > > This presents a dilemma for the Middle East. In recent years, > globalisation has provided more young Arabs with access to > education, media and travel – innovations that make it more > difficult for a ruling elite to control information and power. If > governments, such as Egypt’s, relax their grip to stoke economic > growth (by opening their societies to deeper integration with the > outside world) they risk sharp social and political upheaval. Yet if > they keep things closed, they sharply limit the power of their > economies to generate the prosperity on which longer-term political > legitimacy will depend. And that too creates instability. > > The J-curve is a controversial idea. When I first floated it in > 2006, it was used – in some ways hijacked – by those seeking to > explain the unstable postwar environment in Iraq. But an > intervention bringing democracy by force was always a poor example > of the theory. The current upheavals in the Middle East, the result > of internal dynamics of populations trapped between economic > hardship and increasing political openness, make a much better test. > > Most regimes in the Middle East and north Africa have tried to > remain stable by cutting off their citizens from the modern world. > Globalisation’s progress has been slow across the region. But over > the past decade these efforts have come undone. People have taken up > mobile phones, watched satellite television and switched on Facebook > and Twitter. Autocratic governments, in turn, have had to expend > more and more effort containing these potent weapons of free > expression. > > It is true there are obvious counterexamples to this trend. Some > strongly authoritarian regimes have avoided significant domestic > pressures, because strong economic growth has effectively pushed up > the entire J-curve. After 30 years of state-directed growth, China > is under much less internal political pressure than the Middle > Eastern regimes. Nonetheless, China’s leadership is keenly aware > that economic success is required to maintain the regime’s survival > – an implicit admission that openness and order remain in tension > underneath. > > Given the Middle East is unlikely to see a new economic miracle, > what should its pressurised leaders do? They face two options. Those > with the most isolated populations can repress them, hoping to stay > on the left of the curve. Leaders of Algeria, Iran and Yemen now > ride to and fro upon tigers that they dare not dismount, as Winston > Churchill once put it. Ultimately, that is a dangerous ride – as > Tunisia’s Zein al-Abidine Ben Ali can attest. > > But opening up reform – the Jordanian route – is risky too. It costs > King Abdullah little to replace one prime minister, but new faces > alone will not create jobs or prosperity. Real reform will be much > riskier, as it requires a surrender of some state control. King > Abdullah must now calculate whether he is more likely to survive as > a real reformer or as the man who kept the genie in the bottle for > another year. > > No countries are watching Jordan more keenly than Saudi Arabia, > Kuwait and a currently restive Bahrain. Unrest in their neighbour > will make all three more cautious about allowing citizens to speak > their minds. With oil and gas to export – and smaller populations > with which to share the spoils – these three are actually better > placed to begin sweeping reform. But, looking back to Tunisia, even > the region’s richest now know a single spark can ignite a country. > Even those who can best afford the instability that accompanies the > depths of the J-curve may be too fearful to begin the journey. > > The writer is the president of Eurasia Group and author of “The End > of the Free Market” > >
METADATA:
THREAD:
INDEX:
AdhhoJpNzd8BKL6rTq68jI9sjs6rZA==
REFERENCES:
REFS:
<3BB04EE2-C5F2-4FDE-A147-D380C5A9E91F@ips.edu>