The State of the World's Economy

When I first thought about writing this post, I figured I'd write about the whole wide world... I suppose as I contemplated more about the topic, it dawned on me, that it is precisely that thought that makes the whole discussion an almost nefarious, or rather meaningless one. It is simply impossible to write an article about the world economy. The world economy is not a singular "thing"! The world economy is in fact a collection of more than 200 different sovereign economies, and in fact, even some sovereign states have different economies going on in it. The US, for example, is a cluster of 52 different economies. California for instance, is widely quoted to be among the world's top 10 economies!

I guess the point I want to make... is that one lives in a fool's paradise when one speak of the world economy. Notwithstanding whatever CNN, BBC, Bloomberg, CNBC, AlJazeera and any other global news network wants us to believe. India for instance, grew (Q2 FY2010) at a rate in excess of 8.5%. China, almost 10%. The US, just under 2%, the GCC hover between 4% and 6% and Greece, poor Greece, remains deep in recession territory. One look at this broad range and any reasonable man has to conclude that there is just far too many divergence to conveniently lump these in a single descriptive term called the world economy.



So instead of writing about the world economy, I thought it might be more entertaining to study how those countries which are burdened by sluggish economies, how they manage to divert attention away from the economic failures.

The US for instance, found the nifty niche of withdrawing from Iraq to steer the camera's away from the depressing numbers on Wall Street... and the withdrawal couldn't come soon enough. The previous story began to run out of steam when the world pointed out the American inherent prejudice and blatant discrimination of the previous story. Of course, here we mean the building of a Mosque near Ground Zero!

The Spanish still bask in a glow of the World Cup aftermath, but even that story is beginning to lose its luster in the wake of a depressing 25% unemployment number.

France, found the need to create a story and decided to throw out the Roma people in a most outrageous gesture of collective punishment and blatant racism. Now we've come to expect France under the leadership of President Sarkozy to use race or religion to mask the depressing poll ratings and the even more depressing economic numbers.

Poor Greece... no story could be created to move away the world's camera lenses from the economic disaster that they are courting. Not even the fact that they have banned mosques in Athens, (the two existing mosques in Athens have been locked up and cant be used by the Greek Muslims to pray in!) is sufficient fodder for the newshounds to redirect the focus.

Even Greece can take solace from the fact that... notwithstanding how savvy the PR team or Propaganda machine is, in the end, the problem might have been hidden for a while, but it certainly hasn't gone away. Just ask President Obama... just a year ago he was arguably the most popular president in the USA for a long time... and today, he is struggling to keep the newshounds away from the dirty truth, that the US Economy is anaemic, and people are smarting... despite the hundreds of billions of Dollars of stimulus money.

Peace...in the region...

Strange..., that the first word you will hear when you meet and greet a local in the GCC, is 'Peace' (salaam)... yet the region is forever seeming to be on the brink of peace... The region seem to be plagued by strife, and even in the times of peace, it seems that we are not too far away from a powder keg waiting to be set alight.

As we see the US  troops finally making an exit of that war torn country, Iraq, we dare not even hope of a lasting peace. We are all witness to the fact that the American invasion, under the pretense of Weapons of Mass Destruction (WMD) has created more havoc, more chaos, more tragedy, more destruction, more destabilisation, than any country could hope to experience throughout its existence.

This post is not intended to discuss the merits of the war in Iraq, but rather to point out that we cannot even hope for peace.

Even if we pretend that all is well in Iraq, that the political vultures will manage to conjure up some sort of political system, even if we pretend that the Muslims/Iraqis will stop killing each other, even if we pretend that the country will not split between the Kurds, the Sunnis and the Shias, even if we pretend that they will manage to switch on the power, that the toilets will work again, that people will have jobs again, and on and on and on...

... and all goes well in Iraq... we cannot dare to hope for Peace.

It seems after Iraq, the Israelis and hawks in America still have the desire to go after Iran next.

Heaven knows what will happen then. If Iraq was an uncomfortable war fought on the fringes of the region, Iran will certainly be a war fought in the region.

War with Iran will essentially destabilise the entire GCC. That, my loyal audience, will be the end of a blissful expat life for most (if not all) of us located in the GCC.

The tragedy is... no one seem to be asking the Americans what they achieved with the war in Iraq... whether it was all worth it... No one seems to be holding the Americans and the Brits responsible or accountable. No UN resolutions, no war crimes tribunal, no international outcry, no CNN, SKY, BBC, MSNBC, FOX, Jazeerah, analysis or news programs.

Notwithstanding what your politics might be, if you are a expat in the Middle East, another war in the region (with Iran) will be catastrophic for all of us.

Yet, there are loud voices in Israel and the USA to reload the weapons, and aim it towards Iran.

To all my fellow expats in the region, perhaps it is time to send a collective prayer to the Almighty and ask for sanity to prevail in the world... so that our little expat existence can continue to be for a while longer...

Doing Business in the Middle East. A Simple Guide to the Westerner.

Doing Business in the GCC. A Simple Guide to the Westerner.


The GCC is an area which carries many stereotypes and myths. Before doing business in the Middle East it is imperative to learn about areas such as business culture, business etiquette, meeting protocol and negotiation techniques. Through such knowledge stereotypes are broken and barriers to communication reduced.

When doing business in the Middle East, it is wise to bear in mind the great diversity within the region. However, a common religion, language and culture make the highlighting of general traits and features for the region valid.

In this short guide to doing business in the Middle East, business culture and etiquette are explored. These are in no way meant to represent a comprehensive summation of tips on doing business in the Middle East, but a highlighting of some main areas one may consider.



Islam

One cannot talk about the Middle East in a cultural sense without mentioning Islam. Islam permeates all levels of society. It provides guidance, values and rules for personal life, community relations and ways of doing business.

Within the confines of this short introduction, justice cannot be served to such a highly complex faith. Therefore, it is advisable that one conducts their own research on Islam before doing working or business in the Middle East.

However, we can look at a few examples of the manifestations of Islam and the way in which these may impact your business trip.

Muslims are obliged to pray five times a day. Prayer times are announced by the mosques using the call to prayer (athan). Not all Muslims go to the mosque. Some pray at home or in the office. Daily routines, appointments and meetings must be fitted in appropriately around prayer times. Friday, generally considered the Western equivalent of a Sunday in the region, is the day for congregational prayers and it is obligatory for all males to attend.

Avoid trying to do business in the Middle East during the month of Ramadan. Muslims fast from dawn till dusk which involves refraining from eating, drinking or smoking. During business hours general activity is reduced depending on the nature of the company or organisation.

There are two major festivals of note. Eid al-Fitr follows Ramadan and Eid al-Adha follows the annual pilgrimage. These holidays last approximately three days although it is not uncommon for the government to extend these. It is best to avoid doing business on or near the two Eids.

Doing Business - Meeting and Greeting

The traditional Islamic greeting you will hear is 'Asalamu alaykum' (peace be with you). As a non-Muslim you would not be expected to use it, but if you did you would receive the reply 'wa alaykum salam' (and peace be with you).

When doing business in the Middle East, handshakes are always used and can last a long time. Islamic etiquette recommends that one waits for the other to withdraw their hand first before doing the same. Always use the right hand. Do not be surprised if your hand is held while you are led somewhere. Holding hands among men is common and does not carry the same connotations as it does in the West.

Arabs are fairly informal with names when doing business and generally address people by their first names. John Smith will be addressed as Mr. John. Arab titles of note are: Sheikh (an old man, scholar, leader), Sayyid (descendant of the Prophet Muhammad) and Hajji (one who has performed the pilgrimage).



Doing Business - Gender

The roles of men and women are far more defined in the Arab culture. Interaction between the sexes is still frowned upon in certain arenas. However, when doing business in the Middle East it is not uncommon to come across women.

If you are introduced to a woman as a male, it is advisable to wait and see if a hand is extended. If it is not, then do not try to shake hands. Avoid touching and prolonged eye contact with women.

Doing Business - Business is Personal

Many Westerners that have lived or worked in the Middle East might use the words chaotic, disorganised and frustrating when discussing doing business there. Although this is a matter of perception, it is true that business runs on very different tracks to business in the West.

The Arabs do not separate professional and personal life. Doing business revolves much more around personal relationships, family ties, trust and honour. There is a tendency to prioritise personal matters above all else. It is therefore crucial that business relationships are built on mutual friendship and trust.

A consequence of this mentality is the system known as 'wasta'. If you have friends or contacts in the right places then rules can be bent or things done more quickly. The system works on the basis that favours are reciprocated and never forgotten. Although it may seem biased, it is something that should be exploited when doing business in the Middle East.

Doing Business - The Spoken Word

The Middle Eastern culture places more value on someone's word as opposed to a written agreement. A person's word is connected to their honour. Contracts are viewed as memorandums of understanding rather than binding, fixed agreements. Be sure to promise only things you can deliver. Failure to do so will result in loss of honour.

Doing Business - Meetings & Negotiations

Meetings should not be made too far in advance as changes in personal circumstances may impact your appointment. Once an appointment has been made, confirm it verbally with the person you will meet a few days before.

Initial meetings are all about relationship building. Building trust and establishing compatibility are key requisites for doing business in the Middle East. One should engage in conversation and try to get to know the 'person' you are doing business with.

Meetings can be chaotic. Always be prepared to exercise patience. Phone calls are taken during meetings and people may enter the meeting room unannounced and proceed to discuss their own agendas.

Meetings are circular in nature. They do not follow a linear pattern and are not structured upon agendas or targets. Issues are raised as and when.

Punctuality is expected of foreigners. Although the Arabs place a high emphasis on punctuality they rarely practice it themselves. In fact, if Arabs want to stress that a set time must be adhered to they use the term 'mow'id inglizee' - literally, 'English meeting'. However, if you are running late do not panic as polite excuses will be accepted.

If negotiating, remember the Arabs were a trading people and are excellent negotiators. Haggling takes places everywhere, whether at the shop or in the board room. Decisions are made slowly. Bureaucratic formalities tend to add to delays. Do not use high pressure tactics as they will be counter-productive.

Culture Change…, East West Cultural Differences.

Culture Change…, East West Cultural Differences.

What or who is actually an ex-pat or expat which is an abbreviation of 'expatriate'? While the term is commonly used to refer to a Westerner who resides in a 'foreign' country, it comes from the Latin 'ex patria'. Translated it means 'outside the native land'. This has appeared in Latin texts for more than 2000 years and refers to Roman soldiers who left their homeland to fight battles for the expansion of the Roman Empire. Anyone who lives away from their home country can be described as a foreign resident, expatriate, ex-pat or expat.

To be successful and happy as an expatriate it is important to recognise and accept that there are differences in the way of life between 'home' and a 'foreign' country. Study and research beforehand will be beneficial, but only time and the experience of living, working in one or more different countries will ensure settling into new environments and feeling almost 'at home' again. It is possible, usually after a period of adjustment.

There are wide areas of different thinking and different ways of reacting to and handling life's situations in other countries, both personal and in business. This definitely applies to life in the Middle East. In some parts it's more noticeable than others. Religion, faith and philosophy as well as traditions affect the culture of a particular country, or even a sub-area within that country. It is important for 'an outsider' to be aware of the underlying cultural differences between Middle East and the West, which all affect behaviour, culture, tradition and values in the various countries. Saudi Arabia has its own culture, as does Bahrain, as does Syria. There are similarities and differences without and within.



'Home'

From a Western perspective, back in the home country – maybe the UK or Europe, the USA, Canada, Australia, New Zealand or even an African country, while you were growing up, you subconsciously developed an ingrained sense of the 'way things work'. A common language gave you the ability to communicate effectively with the people around you – your family, friends, work colleagues and even with strangers in public; you learned something of your country’s history, people's habits, likes and dislikes, politics, religion, traditions; legal and judicial systems including your rights as a citizen; you learned about acceptable social behaviour within the family and tolerance of others’ actions; and many other parameters and facets of life. This understanding influenced your own behaviour, and what you expect of others.



You also have some idea of what people can or should not do without consequences – good or bad! You have certain rights and protection under the law. If you are accused of a crime or other transgression, you are (hopefully) entitled to professional defence. In some countries (by no means all), so-called civil rights like freedom of speech allow you to voice your opinions – vocally or in writing, and freely draw support from others who agree with you.

And 'Away'

Living abroad, it doesn't take long to realise that many things that don't 'work' the same, especially when moving from 'the West' to 'the East'. Apart from different languages (and you will benefit greatly if you can learn to understand, speak or write some of them), each country has its own social systems and laws and ways of implementing them to resolve problems and disputes. You will find some of them strange and alien. There will be times when you feel alienated or uncomfortable because you realise that things are not the same as you think they ought to be.

This is what has become known as 'Culture Shock'. It may sound like a clichéd joke, but it's definitely not and every country in the region has its own cultural traditions that need to be recognised and understood by foreign visitors, especially if they are spending extended time in any of these countries. The rules are usually easy enough to learn; the difficulty is understanding some of them when they are often in direct conflict with one's own ingrained habits!

Living in an environment with an unfamiliar culture can cause stress, anxiety or worse – mental or physical illness or even suicide in some instances. The term culture shock was first used by Finnish-Canadian anthropologist Kalvero (Kalervo) Oberg in 1954. It is the shock of experiencing an unknown or new culture. It is unpleasant because it is unexpected; it can also lead to a negative evaluation of one's own culture. Cross-cultural adjustment is the period of anxiety, distress and confusion suffered when entering a new culture. It can have effects on a person's emotions, intellect and behaviour. This adjustment can be divided into four main phases or stages of cultural shock comprising (1) the honeymoon or tourist phase, (2) the crises or cultural shock phase, (3) the adjustment, reorientation and gradual recovery phase and (4) the adaptation, resolution or 'acculturation' phase.

Acceptance is the key that unlocks the final door. The realisation of the need to adjust, or even reverse, ideas of handling particular situations. It comes in time! One thing is certain: it is far easier to accept the new order of things than try to change them. In fact you will save yourself a lot of frustration and mental anguish the sooner you are able to do this!

If you inadvertently or intentionally 'cross the line' by arguing with or upsetting your local work colleagues, friends, family or even worse, the authorities, you will eventually come off second best, although you might not think so at the time. Most Arabs are tolerant with foreigners and accept strange habits and behaviour, not only when it might be to their benefit (e.g. money) but out of inbred politeness and restraint in front of others (face). Westerners should not take advantage of this. After all, they are guests in these countries and there are limits to any host's goodwill. As such they must try to abide by local rules and codes of behaviour. It would be the same if the situations were reversed. How tolerant generally are Western countries inhabitants with those of different nationalities, faiths, ideologies and backgrounds?

Some Middle East-West Philosophical Differences

The Yin Yang symbol, seen by some as two fish swimming head to tail, is well recognised. Over 2,500 years ago, the Chinese philosopher Confucius explained this essence of Chinese culture in his classic work I Ching. Yin and yang refer literally to the dark and sunlit sides of a hill. Although Yin and yang could be viewed as opposites like male and female, hot and cold, black and white, sweet and sour etc., they are really complementary pairs, and life's mishaps and problems are caused not by opposing forces, but by disharmony or imbalances in the environment. Balance is essential for harmony.

Another reason for basic philosophical differences existing between East and West is the role religion plays in one’s life.

In the West, religion is a very personal, private issue. In the Middle East, religion is a very visible part of every day life, in fact part of the very fabric of society. Islam, being the predominant religion, provides a spiritual structure which influences many aspects of the daily life of its followers.

Muslims believe in “the will of God” (Inshallah). Western thinking is geared more towards anticipating risk or potential problems before they arise. Arabs ascribe a lot more weight to fate, or God’s Will. If someone is injured or even dies in a possibly avoidable accident, they weren't careless, negligent or taking unnecessary risk but experienced God’s will! It was 'decreed'.

Here are the personal observations of the differences in emphasis between Eastern and Western cultures made by an Asian Christian cleric now living in the West. Some might disagree with the generalisations as in some societies they may not be altogether true:















Honesty & 'Truth'

Another difference between Western thinking is the concept or interpretation of 'honesty'. In the Middle East, the truth is real and very important. Westerners at times can blur the lines between facts and opinions, and in most business dealings, can easily ascribe different perspectives to different opinions, even if there is some uncertainty or disagreement as to what those facts are.

Style vs. Substance

Westerners living in some Middle Eastern countries will start to notice basic differences in mentality, interests and 'intellectual' discussion. Arabs have very astute observational skills, but most are not focused on things that Westerners consider significant. The issue of filial bonds for instance is far more ingrained in this region that in the West.

Confrontation

One area worth mentioning is problems, arguments, disagreements, disputes, even crimes. In the West we have laws and judicial systems to take care of the more serious ones. We also have old adages and expressions like 'taking the bull by the horns', 'a problem faced is a problem solved', 'speaking your mind', 'not mincing your words', 'facing problems in the eye', 'not being afraid to speak out', 'telling it like it is', 'calling a spade a spade', anticipating problems and analysing them afterwards for 'cause and effect'.

A good number of those concepts and ideas that might seem natural and logical to Westerners, or the 'right thing to do', can be almost the direct opposite of how Arabs minds think or react when life is not running as smoothly as it might. In case of dispute, Arabs usually go out of their way to avoid direct confrontation or argument, often resorting to what Westerners would call lying – 'white lies' or worse, hiding their feelings behind what appears to be a genuinely friendly smile, or just simply silence. Thoughts remain unspoken, but inner anger builds up nevertheless as Arabs are sensitive people, and they will respond, but not at the time and possibly not in the way a Westerner might expect.

Family ties are the 'king-pin' – a singularly important and integral part of Arab culture generally. Far more so than in the West, where this has become less apparent in many societies. In matters requiring arbitration and or redress between families, local solutions at community level are sought and imposed before resorting to judicial or legal ones. But fairness and justice take on different meanings within the Arab context too.

The best advice that one who has lived in the East for some time can give is: be tolerant of local thinking; make an effort to accept 'the Arab way', even try to emulate it. Even when you desperately want to get your point of view understood, try to see things from the opposite perspective. When provoked, 'bite your tongue' and contain your anger. Smile even though your jaw might crack with the effort! There are probably other ways to solve the problem, difficult as that may seem at the time, especially when frustration, anger and misunderstanding seem to surround you. There is probably nowhere where it's as important to 'keep your cool' as in the Middle East.

East-West 'cross-cultural' friendships and relationships can be extremely successful as long as both partners make the effort to understand and accept the differences in each other's culture and traditions. Human nature makes us all think 'our way' is best. This is not necessarily true!

Is the Expat unpatriotic...?

The world has truly become a global village. With the advent of Facebook, you no longer need to step out of your gate and walk across to the neighbour to catch up on the stories in the neighbourhood... In fact, you don't even have to watch Desperate Housewives to hear know what's happening in the streets...!

All you can do, is switch on your PC, log onto Facebook, and wallah...!, you can see what happens in other parts of the world...

However, since long before the advent of Facebook, there has been a special breed of people that decided to earn their sustenance in other countries, far away from home. The problem with this breed of people, mostly highly skilled, they learnt their trades in the home countries, paid for in most instances by their governments. Government invests huge amount of resources into the development of the population, in the hope that the population will in turn spend their collective know how and sweat and build the economy of the country.

This is normally how things pan out, except for this breed of people called Expats.

No one can begin to pretend to understand why people leave the comfort of their home countries, travel abroad, to work in an economy and culture different to one's own... yet the vast majority of Expats undertake this journey in a completely voluntary manner.

The question is...is it Unpatriotic for expats to venture abroad, in search of a better future (read more money) when clearly their home countries can do with their skills...?

The US imports huge amounts of Indian expats, yet the US contributes considerable numbers to the Expat populace. Same for Canada, Britain, Germany and many of the EU states.

South African Expats are generally highly regarded for the skills and work ethic, and without fail, these South Africans can be put to good use in their mother country.

Life as an Expat in the Middle East...

Most Western Expats based in the Middle East believe that life is good here... but every so often, we look over our shoulders and cast a glance over the geo-political issues that seem not be be able to leave the region in peace.

Security is the one thing that everyone is conscious about, not least because the region literally floats on oil.

It is this very oil that makes this otherwise predominantly barren desert an attractive piece of real estate for the world's superpowers over the last half century.

Before the Oil was discovered, (it is actually more accurate to say before the significance of the oil was realised!), the world's then superpowers tried to solve (and at the same time ease their collective guilt) one of its problems by shipping off a persecuted people to the region.

Little did anyone know the long terms consequences of the move, and to cut to the end of the story, today we are still grappling with the Palestine/Israel issue.

Many analysts (almost simplistically!) believe that this initiative is single-handedly responsible for the adversarial relationship that currently exists between the neighbourhood and Israel, or even between the Muslims of the World and the West (read America).

The truth is... it certainly provides a ready excuse for all the problems of the region. Another truth is... it doesn't help at all if Israel ride roughshod over International law or UN resolutions... Funny how if another country fails to implement a UN resolution, America will take its whole nation to war against that country, but they support Israel when Israel decides to thump its nose it these resolutions.

The point of this piece... is that for expats, this unresolved issue is probably the single biggest source of concern, because it delineates, whether we like it or not, the world into two camps, the one supporting Israel, and the other supporting Palestine.

So when the announcement is made that the parties will be starting talks again... the optimist in us shouts in excitement and the pessimist in us think... oh, there we go again, with no hope of finding that elusive peace agreement.

Though we must applaud US Secretary of State Hillary Clinton for bringing the parties together for talks... it must be brought to her attention that surely she is setting the process up for failure again...!!!

How in the world can you decide to have peace talks in the region and exclude Hamas, the legitimately (read democratically) elected people's representative...?

How can such an intelligent woman like Mrs Clinton believe that they could have a binding resolution when one of the stakeholders are not even invited to the table. She seems to think that if we dont like the stakeholders, we just invite others, or better still, just not invite them at all... and still have meaningful talks...

Its like the Apartheid government who tried for years to have peace talks with everyone but the ANC! They talked with the Coloured People Representatives, with the Indian People Representatives, with Inkatha, and for years believed that could conjure up some peace deal, only for De Klerk to acknowledge that if South Africa is ever going to have to have a lasting and meaningful peace, they will have to talk to the convicted terrorist, Mr Nelson Mandela, and his banned party of terrorists, the ANC.

Looking at it differently, not inviting Hamas to the talks it is like Liverpool arguing with Man United who is the best English Premier League team and forget that Chelsea is in fact the reigning champion!!!

We know when a married couple has problems, the best way to find a solution is for the parties to talk. But for the US to play marriage counselor and getting the parties together..., inviting Mahmood Abbas (Abu Maazen) and not Hamas is like getting one spouse and the sister in law to talk instead of getting the two spouses together to talk.

To come back to the purpose of the piece... we as expats all need to collectively tell the Secretary of State that we are thrilled with the new initiative to get the parties to talk... but we need to tell Hillary Clinton that surely by excluding the elected stakeholder, she is setting the talks up for failure?

Did the US not learn anything over the last 10 years... that you cannot negotiate only with those who you approve of...?

We as Expats in the region dream of a region free of conflict... then truly, we will be living in Paradise.