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getting to pluralism: political actors in the arab world - Carnegie ...

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Transcript Not Checked Aga<strong>in</strong>st Delivery<br />

tweet-tweet. And on this, I agree entirely with Amr that it rem<strong>in</strong>ds me a lot of <strong>the</strong> debate go<strong>in</strong>g on<br />

<strong>in</strong> America <strong>to</strong>day on environmentalism.<br />

I make this po<strong>in</strong>t, always, when I’m speak<strong>in</strong>g <strong>to</strong> young people on college campuses who tend<br />

<strong>to</strong> th<strong>in</strong>k, “I blogged about it, <strong>the</strong>refore I made a difference,” I always rem<strong>in</strong>d <strong>the</strong>m, when it comes<br />

<strong>to</strong> <strong>the</strong> environmental movement, ExxonMobil does not have a Facebook page; <strong>the</strong>y’re just <strong>in</strong> your<br />

face. And ExxonMobil is not – <strong>the</strong>y don’t have a chat room; <strong>the</strong>y’re <strong>in</strong> <strong>the</strong> cloakroom where <strong>the</strong><br />

rules get written.<br />

So if you don’t get out of Facebook and <strong>in</strong><strong>to</strong> somebody’s face, you are nowhere. And that<br />

applies <strong>to</strong> <strong>the</strong> environmentalists, I would say, and applies <strong>to</strong> Arab progressives. They’ve done a<br />

wonderful job with <strong>the</strong> Internet, but I th<strong>in</strong>k as Amr rightly says, <strong>the</strong>y have not taken it from <strong>the</strong> chat<br />

room <strong>in</strong><strong>to</strong> <strong>the</strong> cloakroom. And that is, I th<strong>in</strong>k, a huge fail<strong>in</strong>g.<br />

I th<strong>in</strong>k <strong>the</strong> second meta-issue that we need <strong>to</strong> br<strong>in</strong>g <strong>in</strong><strong>to</strong> this discussion, and for me, it’s<br />

always been very important, if not decisive, when talk<strong>in</strong>g about <strong>the</strong> democratization movement, is<br />

<strong>the</strong> oil. It is not an accident, for me at least, that – I’m a big believer <strong>in</strong> what I call <strong>the</strong> “first law of<br />

petro-politics” – that <strong>the</strong> price of oil and <strong>the</strong> pace of freedom <strong>in</strong> petrolist (ph) states – states<br />

overwhelm<strong>in</strong>gly dependent on oil for <strong>the</strong>ir GDP – operate <strong>in</strong> an <strong>in</strong>verse correlation.<br />

And <strong>the</strong>re is no question <strong>to</strong> me that if you look at my favorite country – “favorite” <strong>in</strong><br />

reference <strong>to</strong> this comment – has always been Taiwan. You know, Taiwan is a barren rock <strong>in</strong> a<br />

typhoon-laden sea. It doesn’t even have oil; it has no natural resources whatsoever, except its<br />

people. And <strong>the</strong> reason Taiwan evolved – I believe, <strong>the</strong> most important reason it actually evolved<br />

from a military dicta<strong>to</strong>rship <strong>to</strong> a multiparty democracy – was <strong>the</strong> fact that <strong>the</strong>y had <strong>to</strong> drill <strong>the</strong>ir<br />

people, not <strong>the</strong>ir oil wells. And <strong>the</strong> state had no o<strong>the</strong>r way <strong>to</strong> advance itself.<br />

The mot<strong>to</strong> of <strong>the</strong> American Revolution was no taxation without representation. The mot<strong>to</strong><br />

of <strong>the</strong> Arab oil state is no representation without taxation; if I don’t have <strong>to</strong> tax you, I don’t have <strong>to</strong><br />

represent you. And that is a huge asset for every one of <strong>the</strong>se regimes – if I don’t have <strong>to</strong> tax you, I<br />

don’t have <strong>to</strong> represent you. If I can stay <strong>in</strong> power by putt<strong>in</strong>g a pipe <strong>in</strong> <strong>the</strong> ground and suck<strong>in</strong>g up<br />

<strong>the</strong> oil, I simply don’t have <strong>to</strong> represent you.<br />

And because <strong>the</strong>se states have all been able <strong>to</strong> develop <strong>the</strong>se huge rent mach<strong>in</strong>es, basically,<br />

so much of what goes for capitalism and entrepreneurship <strong>in</strong> <strong>the</strong> Arab <strong>world</strong> is basically just rentseek<strong>in</strong>g<br />

from <strong>the</strong> state; look<strong>in</strong>g for monopolies and subsidies. It is not an accident that, I believe,<br />

given that economic context, <strong>the</strong>re’s only one Arab company ever been listed on <strong>the</strong> NASDAQ, and<br />

that’s Aramex, <strong>the</strong> Jordanian company founded by Fadi Ghandour.<br />

Well, how can you possibly – let’s th<strong>in</strong>k of Mart<strong>in</strong> Lu<strong>the</strong>r – how was Mart<strong>in</strong> Lu<strong>the</strong>r a success<br />

as a reformer? Well, surely one reason he was a success with his reform is he had German pr<strong>in</strong>ces<br />

<strong>to</strong> protect him. And if you don’t have a different k<strong>in</strong>d of economic structure where you have<br />

<strong>in</strong>dependent economic forces listed on <strong>the</strong> NASDAQ, not listed <strong>in</strong> <strong>the</strong> m<strong>in</strong>istry of commerce, <strong>the</strong>n<br />

you have no <strong>in</strong>dependent foundation for <strong>in</strong>dependent <strong>political</strong> movements.<br />

So I th<strong>in</strong>k look<strong>in</strong>g at <strong>the</strong> structure of Arab economies and <strong>the</strong> relationship of oil <strong>to</strong> <strong>the</strong>se<br />

structures is vitally important <strong>in</strong> understand<strong>in</strong>g why so few – why none of <strong>the</strong>se states are really what<br />

Freedom House would call a democracy. You know, one of <strong>the</strong> th<strong>in</strong>gs I th<strong>in</strong>k that’s deeply hurt <strong>the</strong>

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