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SPEAKING FREELY
Waiting for the next tsunami
By Arno Tausch

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.

Both Europe and the Muslim world are facing the same tendency of a basic and underlying shift in global economic activity away from the west of the Euro/Asian/African landmass toward the countries of the Pacific. The present US government's main interest is in preserving and intensifying US global hegemony after the end of the Cold War, and maximizing access to global wealth and energy resources in a world that looks more and more like the late 19th century. The conditions of this political economy of the 21st century were spelled out by the world system theory school of thought in the social sciences pioneered by Karl Polanyi. Non-Muslim Europeans and non-European Muslims sit, so to speak, in the same global economic boat. In several European countries, but also in Japan and even in the United States, inequality and globalization have been on the increase since 1980. Saudi Arabia from 1975-98 lost 18 of a possible 23 valuable years of development, while most capitalist Western democracies lost no year in that period. About a third of the world's entire land surface suffered from such a dramatic development turnaround since 1975.

There is no justification for looking scornfully at the Muslim world. In the end, it is their basic welfare net that gave the countries of the region certain social pro-poor structures in times of economic relative or absolute impoverishment. Both sides along what still might look like a cultural dividing line should begin to learn again from the very positive co-existence that existed in Spain before the Reconquista 1492. The peaceful co-existence and economic convergence between Europe and Islam could even become the basis of future European well-being in world society. Zakat and Sadaqah - the two basic Muslim institutions of social welfare - would serve well the poor in Latin America, Southern Africa and Eastern Europe, and proposals for a global "Tobin tax" could be interpreted as a kind of contemporary, global zakat. Human development increases in the Muslim countries were among the most rapid in the entire world. In the long run, the European Union would only have to gain from a more bold and forward-looking policy of applying the famous future-membership Copenhagen criteria about democracy and competitive market economies to the Arab mezzogiorno of Europe in a world economy that definitely is reorienting itself again toward China and the Orient.

During the 1990s, penetration by transnational capital dramatically increased in many parts of Europe (especially in what was described by US Secretary of Defense Donald Rumsfeld recently as "the new Europe"), as well as in eastern Latin America, in Southern Africa, in Central Asia and in South and Southeast Asia. However, there was a dramatic decrease of MNC (multinational corporation) penetration in most countries of the Muslim world during the second half of the 1990s. The multinationals withdrew from the region at an unprecedented scale, long before the attacks of September 11, 2001. World capital thus withdrew from the Muslim Middle East and went into Eastern Europe, Central Asia, East and Southeast Asia, eastern Latin America and Southern Africa instead.

So is sociologist Giovanni Arrighi right when he maintains that the ascent of one region conditions the decline of another one? Most probably, yes. Empirical findings over the past years are all the more striking since we also have to consider that on a world level - contrary to popular assumptions - membership in the Islamic Conference is not an impediment against political democracy and human development, while "Washington Consensus" policies more often than not indeed are. The empirical record speaks a clear language in favor of Islamic democracy and against those in the West who attempt to treat a Muslim cultural heritage as a general development burden. It should be also clear that a reliance on the "Washington Consensus" will not "fix" the performance of countries.
Cross-national data also clearly contradict many of the expectations inherent in the writings of Professor Samuel Huntington. Four development indicators under review for our purposes here - two for the environment, one on human development, and one on democracy - are even positively and significantly determined by membership in the Islamic Conference, once you properly control for the effects of the other influencing variables. However, gender justice and redistribution remain indeed the Achilles' heel of today's members of the Islamic Conference, strengthening the cause of those Muslims who advocate more social inclusion and more gender justice, and thus a more adequate contemporary reading of the Holy Scriptures.

The various Christian liberation theologies and liberation theologies from other denominations, which Polanyi's though in many ways preceded, are working in the same direction. Non-Muslim "Europeans" should remember that the keys of the "common European house" do not belong to one cultural tradition only. The world of Islam was pivotal to the European path to the Renaissance and to the rediscovery of classic Greek philosophy. Islamic tolerance and knowledge enabled us Europeans to develop. The Muslim world, on the other hand, can gain a lot from a thorough reading of the works of the great social scientist Polanyi, who always thought that morality and the social sphere are above the market principle.

America's long-term agenda under President George W Bush is not just interested in establishing its vision in the Near East, but in the end is interested in blocking peaceful European ascent to global leadership - as envisaged by the European Union's Lisbon agenda until 2000 - at the same time. As is well known, at the Lisbon European Council (March 2000), the EU set itself a new strategic goal for the next decade: to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion. The rift between Europe and the United States - especially between France, Germany and Russia on the one hand and the US on the other - has a very basic political economic background: the growing hegemonic rivalry between the world's leading capitalist blocs that have characterized world capitalism since 1450. An EU comprising up to 40 nations of the third and fourth enlargement wave indeed would be a major change in the structure of the international system and could be driven by America's power play, but also by its own internal deficient dynamics, characterized by low innovation, into such a position.

A large, wider Europe, driven into hegemonic rivalry by the present hyperpower play by the United States, is a somber scenario. It enjoys high probability, and it has dire world political consequences. It was shown in recent quantitative research that there is a recurrent and shortening cycle of conflict in the international system, linked to the long cycles of economics and politics. According to Arrighi, the usual recurrent slumps in the 50-year economic (Kondratieff) cycles (1756, 1832, 1885, 1932 and 1975-82 as the beginnings of new Kondratieff cycles, while 1756, 1774, 1793, 1812, 1832, 1862, 1885, 1908, 1932, 1958, 1975, and 1992 are the turning points of Kuznets cycles) are called signal crises; while the interaction between the end of world hegemonies (1340, 1560, 1750 and 1930) and the regular Kondratieff slumps are called terminal crises or tsunami waves, because they have catastrophic and devastating effects on the world system and have a high probability of leading, in a shortening time period, to major-power wars.

The joint dramatic decline of European growth rates and Arab/MENA (Middle East and North Africa) country growth rates over time since the 1960s can be shown from the "Global Development Network Growth Database" of the World Bank. Only the Irish Republic had real accelerating economic growth, while 12 of the 15 present European Union members were confronted with decreasing economic growth from 1962-98 (the acceleration of economic growth in Luxembourg is negligible, and there is no complete data series for Germany within the new borders after the fall of the Berlin Wall).

An imperial path for a United Europe, entering into major power conflict with the US over raw materials in Central and Western Asia, would be the last thing the world needs, although there are lots of indicators that would warn us that the leading powers in the center could follow precisely this path. A look into history shows how dangerous imperial confrontation, as driven by the present "power play" by the United States of America, is. Two hundred eighteen repressive regimes (141 state regimes and 77 quasi-state and group regimes) killed from 1900-87 nearly 170 million of their own citizens and foreigners - about four times the number of people killed in domestic and international wars during that same period. Most of these deaths occurred during the "earthquake" of the "tsunami" wave of confrontation in world politics and economics that hit the globe from 1914-45, so aptly described by Polanyi in 1944.

Very sharp and bitter confrontations might arise between the United States and Europe over access to the Caspian Sea and its 150 billion barrels of oil reserves, and over foreign policy vis-a-vis the Balkans, and the Middle East, with Europe favoring a rapprochement with Serbia after its October 2000 transition, a rapprochement with the Palestinians and the Kurds, while the US staunchly favors its own privileged access to the oilfields in the Caspian Sea and in Iraq.

Dr Arno Tausch is associate visiting professor of political science at Innsbruck University. His personal academic website is MyLITsearch.org, University of Alberta.

(Copyright 2004 Dr Arno Tausch.)

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.


Oct 20, 2004
Asia Times Online Community



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