Gov 365N/MES 323K

Questions for Class 21: April 8, 2008

Focusing this week on the Gulf monarchies of Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the United Arab Emirates. But first, let us continue our discussion of Islamic finance - here is 1) timid beginnings in Morocco of Islamic finance, 2) news of a conference in Saudi Arabia on Islamic economics: "Capitalism has failed to addrerss the major issues..." And look at the big problem in the GCC caused by the collapse of the dollar - yet another ironic impact of globalization: Monetary union tops Doha meeting agenda. But they will not discuss currency reform and their differing exchange rates. Then, to turn back to poorer countries, here is news of a general strike being called in Egypt to protest rising bread prices and other hardships caused by global commodity price rises - see Joel Beinen's "Underbelly of Egypt's Neoliberal Agenda" in MERIP. And look at April 7 NYT on Egyptian strikes and demonstrations - is a revolutionary situation developing?

  1. What are some of the major similarities and differences between Saudi Arabia and Morocco with respect to population, dynastic history, social traditions, political elites, business elites, constitutional development, economic resources (oil vs phosphates!), and political and economic reform?
  2. If the principal blockage to reform in Morocco is the business oligopoly, what seem to be the blockages in Saudi Arabia? Oil rents? Najd merchants? The royal family? “Wahhabism”?
  3. Who wants reform in Saudi Arabia? Compare and contrast Saudi needs with those of the less wealthy MENA countries?
  4. Compare and contrast the Saudi system with those of Bahrain, Kuwait and Qatar. Why do you think Kuwait has a more developed parliament, periodic elections, and some ability of the elected deputies to block government initiatives?
  5. Again, from last week, how do the constraints on information and freedom of association in monarchies compare with those exercised in bully or bunker regimes?
  6. And with what impact upon the development of active local stock markets? (See your syllabus, with some graphs of relationships between wealth, economic reform, information, and stock market activity).