Pakistan’s Biggest Threat Isn’t Foreign

PostGlobal – WashingtonPost.com

by Vivian Salama

Ask 10 Pakistanis what the cause of their country’s security breakdown is, and you are likely to hear at least 10 answers. One of the most widespread beliefs is that Pakistan’s problems, much like those of neighboring Afghanistan, were caused by foreign entities – or, more specifically, foreign meddling in domestic affairs.

Regardless of how bad the situation may appear, many I’ve spoken with here in Pakistan are skeptical that any foreign players know how to solve Pakistan’s domestic problems. But after what I’ve seen here, I disagree.

Pakistan is in dire need of the proper financing to get it back on its feet and help it address the economic and social problems that might be causing its downfall. However, if the United States has a genuine desire to see a stable Pakistan, then President Barack Obama and Secretary of State Hillary Clinton must distance themselves from the shortsighted policies of the Bush administration, whether that be military assistance or occasional drone attacks. Recovery can only come in the form of hefty economic development and an overhaul of Pakistan’s outdated infrastructure. We saw one positive step in this direction this week: the trade and transit agreement signed by Pakistan and Afghan leaders in Washington on Wednesday aimed at increasing commerce and foreign investment.

 

President Obama met with Pakistan's President Asif Zardari and Afghanistan's President Hamid Karzai in Washington on Wednesday

 

In recent months, a financial boost from governments including the U.S., Japan and Saudi Arabia has further emphasized the idea that the key to curbing violence in Pakistan is economic and social development. Pakistan, which recently signed a loan package with the International Monetary Fund (IMF) for $7.6 billion, has experienced a significant economic decline in recent years as its inflation rate climbed to 25 percent and its stocks plummeted, falling an average 35 percent last year. All major rating agencies have downgraded Pakistan and the recent surge in terrorist-related attacks has caused most new investments to dry up. What’s worse, economists in Pakistan are predicting significant job losses over the next two years of anywhere from 3 to 4 million people, further exacerbating the crisis faced by Pakistan’s poor and struggling middle class.

Further exacerbating Pakistan’s instability is the growing number of displaced persons in the country. Currently more than 1.7 million Afghan refugees live in Pakistan. 45 percent of those reside in refugee villages and the rest are scattered among host communities, according to UNHCR. However, recent violence in the Swat Valley and neighboring Buner and Dir has forced hundreds of thousands of Pakistanis to flee, leaving the overburdened Pakistani government scrambling for solutions.

Many of the citizens here are scared. Even in Lahore, which is considered relatively safe, a series of recent attacks have left many on edge. Many dual passport holders are now opting to leave for lack of a better option. Many here have little confidence in their government’s ability to cap this growing threat.

Those countries willing to support Pakistan through financial assistance have a responsibility to ensure that the money is properly allocated. Better roads and bridges, more job opportunities through business development, and further development of the country’s energy sector could provide hope to an increasingly disenfranchised population and move this country forward.

Cooperation is a two-way street. In return, Pakistan must be more transparent with donors as the security situation worsens. Pakistani forces have been spread thin by military operations in the Swat Valley and neighboring districts. The Taliban will continue to advance across the country’s North West Frontier Province. The Pakistani government must not allow pride to get the best of it. The country has long been fearful that any foreign intervention could compromise its nuclear program – but domestic entities pose a threat that is far more grim. The time to act is now.

U.S. Students Try Life on Qatar campuses

By Vivian Salama, Special for USA TODAY

DOHA, Qatar — Doha may not have New York City’s bustle or Chicago’s charm. But as the global economy gets worse, it’s becoming an affordable — if slightly unusual — college town for more American students.  

Half a dozen U.S. universities have opened branch campuses here that are thriving because of generous financial support from the government of Qatar. 

Students at Georgetown University's School of Foreign Service in Qatar. Courtesy: AP

Qatar — a tiny, gas-rich Persian Gulf nation — is offering substantial financial aid to most foreign students who need it — often chopping tuition to a quarter of what it costs at home, according to the government.

Qatar has struggled to diversify its economy away from oil and gas revenue. It sees the university sponsorships as a way to build its academic credentials — locals also attend classes — and bolster its workforce. The government offers foreign students the option of repaying each year of study with a year of work in Qatar.

“Qatar knows there aren’t enough Qataris to build the economy that they want to build, so they are delighted when people come from all over the world,” says Chuck Thorpe, dean of Carnegie Mellon’s branch here in Doha. “They are willing to offer all sorts of financial aid to get people to come here and study.”

Six American universities have branch campuses in Doha’s academic hub, a 2,500-acre campus known as Education City: Virginia Commonwealth, Weill Cornell Medical College, Georgetown, Texas A&M, Carnegie Mellon and coming this fall, Northwestern.

The number of U.S. citizens attending classes at Education City is relatively low — Weill Cornell tops the list with 26 Americans among its 239 students this academic year — but the number of university applications has gone up this year and is likely to keep rising, Thorpe says.

“This is a viable option for Americans looking for a U.S.-quality education that isn’t impacted by the current economic crisis. And we expect more students to take notice of that,” Thorpe adds.

Most of the current American students opted to study in Doha before the recession began and consider themselves fortunate.

“It has certainly been a surreal experience to be overseas during (the recession), and I’m sure I will be returning to a very different climate than the one I left,” says Kristina Ricco, 24, of Miami, who is studying architecture at Carnegie Mellon in Doha.

Pakistan ushers in new political era with caution

Vivian Salama

LAHORE – There is little fanfare amongst many Pakistanis this week as they watch America prepare to usher in a new era of professed hope and change. 

On Lahore’s main platform for political expression, known here as the Mall, dozens of banners were erected this week reading “America and Israel: dogs of hell.” Protestors marched through Pakistan’s cultural capital yesterday calling on Barack Obama to put an end to policies that stifle the Muslim world.

“Israelis are killing us in Gaza, and Americans killing us in Iraq and Afghanistan and Indians are killing us in Kashmir so we have the right to explain our part,” shouted Fayez Khuraz, an Islamic preacher who joined hundreds of others in protest.  “If Barack Obama is an human being, he will bring an end to these policies that make the Muslim people suffer.”

Many in Pakistan say there is great cause for concern as the Washington transition period nears its end.  Since the early days of the US election campaign, the now-President Barack Obama said that he would not sit quietly and allow Pakistan to serve as a sanctuary for Al-Qaeda and Taliban militants fleeing US forces in Afghanistan. 

Since August 2008, the tribal border between Pakistan and Afghanistan has been the target of repeated air strikes as US forces look to weed out radical Islamists from the lawless mountain region. Pakistani officials have insisted that the attacks are not only unwarranted, but can compromise its domestic security. 

“I think [the Americans] in Afghanistan have made the situation worse for Pakistan,” said Rasul Bakhsh Rais, head of the Department of Social Sciences at the Lahore University of Management and Economic Research.

In recent weeks, one of Pakistan’s most scenic tourist cities, the Swat Valley in the Eastern region, has been the scene of a deadly Taliban take over.  Last week, Taliban insurgents forced the closure of all girls’ schools in Swat, forcing at least 50,000 young girls to stay home.  Pakistan’s military has staged an attack on the militants, causing many civilians casualties and a heightened state of alert across the country.

Many US officials maintain that Pakistan’s Inter-services Intelligence (ISI) continues to aid Taliban forces in Afghanistan and the US must therefore have more direct involvement in the fight against extremism on both sides of the border.  However, analysts in Pakistan believe that no one can deal with Pakistan’s militancy problems better than Pakistan.

“We have that capability we can handle the situation on the borders but when you continue pushing these militants inland, it harms our country,” added Rais. “Pakistan’s future security is very much linked to the war in Afghanistan and the larger issue of peace and stability in the region, so we think Obama will be a better president if he rethinks the two wars and pulls troops out.”

Pakistanis are equally concerned that lawmakers chosen to be part of Barack Obama’s administration have closer ties with India and may, as a result, fail at brokering any neutral diplomacy.  Relations between the formerly-united South Asian nations have been particularly icy in recent weeks after assailants in the deadly siege on Mumbai last November were suspected of having links to Pakistan.

Earlier this month, India’s foreign secretary, Shiv Shankar Menon, said that investigators had found evidence that ties the gunmen who carried out the attacks to “elements in Pakistan” and added that Islamabad was obliged to extradite those responsible.    Washington has urged Islamabad for full cooperation.

“There are two powers that run Pakistan – the army and America, so whatever happens in America affects Pakistan indirectly,” explained Danish Altaf Mufti, a student at the Lahore School of Economics.  “America would definitely want good relations with India but it should try to keep it in check if it wants balance of power in the region.”

Beyond tensions on the country’s Eastern and Western borders, many Pakistanis say they are eager to see a general upheaval of American foreign policy as it relates to the Muslim world.  From Karachi to Rawalpindi, Pakistanis have been voicing their distress over the violence unfolding in Gaza and calling upon the West to take drastic measures to bring an end to the fighting.

“A very important thing is how he handles the Palestine conflict because every Muslim has been hurt by this,” said Mufti. “I know it is transition phase and he has to be careful with his words, but if he is afraid of the Israel lobby then we will not see the real change that people are talking about.”

…And Now, Time to Fix the Domestic Economy

by Vivian Salama

PostGlobal – WashingtonPost.com

 

The last sip of celebratory champagne is now gone, and so, without a moment’s delay, it is imperative for President-elect Barack Obama to assemble a strong strategic transitional team that can work to heal the wounds of a disillusioned America. A carefully selected team must coordinate with the Bush administration in ensuring a smooth and effective handover. Traditionally the President-elect has stayed out of the spotlight in the two-and-a-half months prior to his inauguration. However, in the words of Senator Hillary Clinton, never have we had as “lame duck” a president as George W. Bush.

President-elect Obama was the clear choice for triggering the shockwave needed at a time when America has few friends abroad and domestic confidence in government is at an all-time low. While people around the world continue to celebrate the clear and momentous significance the victory of Barack Obama signifies in our world’s history, we mustn’t forget that there is a crisis at hand that catchy slogans and smooth-talking rhetoric can not and will not solve. His administration should act quickly in order to capitalize on the momentum of this historic victory.

Where I sit in Dubai, the excitement surrounding a Barack Obama victory is palpable — and the same holds true for the entire region. This election meant so much to so many people around the world for several reasons. People in much of the Middle East have lived the last eight years fearful that one wrong word could bring American warplanes calling.

However, confident markets like Dubai’s and bullish markets like that of Egypt found themselves in a nosedive with news that Wall Street was losing steam. Repairing America’s reputation globally must start with an immediate — and non-partisan — fix to the domestic economy. A distracted and bitterly divided Washington ignored several issues surrounding Congress’s $700 billion bailout package. Financial institutions receiving government support are suspected, in some cases, of having used the capital for other purposes. If the government is going to alter its role by nationalizing banks, then those banks should be susceptible to a stringent checks and balances system. President-elect Obama has not a moment to spare if he and his administration, wish to avoid catastrophe and earn the trust and respect of Americans, their colleagues in Washington, and citizens of the world.

He must also consider certain long-overdue ways of trimming costs, such as closing Guantanamo Bay and cutbacks of any and all unnecessary expenditures in Iraq and Afghanistan (so long as they do not compromise the security of American troops or the inhabitants of both countries).

The elections are over — now it is time to get to work.

It may sound cliché to link this historic event to the American dream — but then, many called the candidacy of the junior senator from Illinois just that; a dream and nothing more. As an American-born child of immigrants, I have seen marginalization, and I have felt cynical that the country to which my parents have given so much would not give back in the same way. The last eight years have been tainted by disappointment, fear and disenfranchisement. It is time for change in the most radical of ways. Many believe that if Obama can win the presidency, then anything is possible. Barack Obama has captured the support and admiration of millions around the world. The hard part now is deciding how to maintain it. The road to financial recovery is one that is long and grueling. However, if he can pave it smoothly and quickly, I reckon that people around the world will readily follow. 

Obama Wins the Race for President

It is early in Dubai as I sit here watching celebrations around the world with the announcement of Barack Obama’s victory.  Regardless of their political views, I hope people recognize the significance of this win.  My generation and those that follow have every reason to believe that America is as much theirs as anybody else’s, and never as much as today.  In an America where a black man can be elected into office just half a century after some of the most horrendous acts of discrimination and hate took place, anyone can achieve anything with hope and commitment.  I have spent most of the last 5 years living in the Middle East and have all too often had to explain myself for America’s faults.  For the first time n a long time, I am feeling a lot of pride.  Anything is possible.

WOW.

Added on 11/5/08:

I heard this on the radio this morning and thought it was really lovely:

“Rosa sat so Martin could walk… 

Martin walked, so Obama could run… 

Obama is running so our children can fly!”

Political Storm Finds a Columbia Professor

As a former student of Rashid Khalidi, I can say with confidence that the accusations by Sarah Palin and John McCain of the professor’s “radical” associations to the PLO are absolutely outrageous and infuriating.  The fact that they would dedicate so much time to such a trivial (and false) subject just days before the election, when the country’s economy is tanking and its troops are dying, confirms in my mind the fact that a McCain/Palin ticket will only lead our country into further catastrophe.  There are plenty of people around the world who regard advisors to the Bush administration as also having links to a “terrorist organization.” What they have done to Dr Khalidi is, in my opinion, defamatory and I really hope that Americans recognize that.  

Political Storm Finds a Columbia Professor

By MARC SANTORA and ELISSA GOOTMAN

Published: October 30, 2008

Rashid Khalidi had been bracing for the storm for months, friends said

Since an April news report detailing his relationship with Senator Barack Obama, Mr. Khalidi, a Middle East scholar and passionate defender ofPalestinian rights, had waited to see himself caricatured by Republicans as part of a rogues’ gallery of Obama associates, which has come to include the Rev. Jeremiah A. Wright Jr. andWilliam C. Ayers, a former member of the Weather Underground.

He was surprised, the friends said, that so little criticism came — until this last frenzied week before the election, when Senator John McCain cited the April article in The Los Angeles Times about a dinner Mr. Obama attended in Mr. Khalidi’s honor in 2003, and questioned Mr. Obama’s commitment to Israel.

In recent days, Republican partisans have accused Mr. Khalidi, a professor at Columbia University since 2003, of everything from anti-Semitism to baby-sitting for Mr. Obama’s children.

For Columbia, the firestorm is the latest episode in a string of messy, public controversies regarding Middle East politics. In 2004, pro-Palestinian professors were accused of intimidating Jewish students. Mr. Khalidi was not one of those teachers, but he was barred the next year from lecturing New York City public school teachers for having used the words “racist” and “apartheid” in discussions of Israel.

“It just seems really ironic to me that Rashid would be singled out as a figure in the trumped-up controversy,” Alan Brinkley, Columbia’s provost and a friend of Mr. Khalidi’s since 1985, said in a telephone interview Thursday. “In a field that is often politicized, he is respected by people on the right as well as the left.”

Ariel Beery, a former Columbia student leader who was involved in a pro-Israel group’s film about the 2004 controversy, said Mr. Khalidi was different from those accused of intimidation.

“In terms of his role as a professor, he was excellent,” Mr. Beery said Thursday in a telephone interview from Israel, where he lives. “He was provoking, he always allowed for different opinions, he had an open zone where people could voice their disagreement.”

Mr. Beery did criticize Mr. Khalidi’s leadership of the Middle East Institute at Columbia, saying it was “highly politicized” and “not promoting a diverse view of the Middle East.”

Mr. Khalidi, who is on sabbatical, declined to comment.

Mr. Khalidi, the Edward Said professor of Arab studies at Columbia, was born in Manhattan in 1948. His father, a Palestinian Muslim born in Jerusalem, worked for theUnited Nations, and his mother, a Lebanese-American Christian, was an interior decorator. He graduated from the United Nations International School and earned his bachelor’s degree from Yale in 1970 and a doctorate from Oxford University in 1974.

He taught at universities in Lebanon until the mid-’80s, and some critics accuse him of having been a spokesman for the Palestine Liberation Organization. Mr. Khalidi has denied working for the group, and says he was consulted as an expert by reporters seeking to understand it.

He was an adviser to the Palestinian delegation during Middle East peace talks from 1991 to 1993. From 1987 until 2003, he was a professor at the University of Chicago, where he became friends with Mr. Obama.

At Mr. Khalidi’s farewell party in 2003, according to the Los Angeles Times article, Mr. Obama fondly recalled their many conversations, saying they provided “consistent reminders to me of my own blind spots and my own biases.” But Mr. Khalidi told Harper’s Magazine that a report in National Review Online that he had baby-sat for Mr. Obama’s children was nonsense.

Daniel Pipes, who directs the conservative Middle East Forum, said: “If one’s talking about American political life, he’s at the extremes, at the margins. If one’s talking about the field of Middle East studies, he’s in the middle of it. But the field itself is dominated by professors who do not permit other points of view.”

In 2005, after a New York Sun article highlighted some of Mr. Khalidi’s statements, the New York City schools chancellor, Joel I. Klein, barred Mr. Khalidi from a teacher-training course. In an interview with The New York Times, Mr. Khalidi said then that he “may have used the word ‘racist’ about Israeli policies,” and acknowledged saying in a speech that if the movement of Palestinians continued to be restricted, “it would develop into worse than the apartheid system.”

Addressing an accusation that he had endorsed the killing of Israeli soldiers as legitimate “resistance” to occupation, he said: “Under international law, resistance to occupation is legitimate. I didn’t endorse killing Israeli soldiers. These people will take anything out of context. Anyone who knows me knows the last thing I am is extreme. I’ve called suicide bombings a war crime. I’m a ferocious critic of Arafat.”

Rabbi J. Rolando Matalon of Congregation B’nai Jeshurun, a liberal synagogue on the Upper West Side, said he has known Mr. Khalidi for years and called the allegations “completely absurd and uncalled for and malicious.”

Referring to comments he had seen on blogs and television, he said, “In no way has he ever indicated that he favors the destruction or disappearance of Israel,” and added, “He has always been consistently in favor of dialogue and common ground.”

At Columbia, Mr. Khalidi is known as a gregarious scholar who takes a special interest in students, often meeting them for lunch near campus and hosting dinners featuring Palestinian food cooked by his wife, Mona, an assistant dean at the university. After he came under attack this week, students created a Facebook group called “I stand by Rashid Khalidi,” with 205 members by Thursday night.

“He makes history entertaining,” said Maher Awartani, 24, an Arab student leader who has taken his class. “It’s like a grandfather telling his grandson a story of what happened.”

Mr. Awartani criticized not just the McCain campaign but also the Obama campaign’s tepid response, saying, “It should have been like, yes, I know him, and I’d like to know more Middle East experts, because that’s an important thing when you’re making policies.”

Karen Zraick contributed reporting.

 

Official Al Qaeda Statement: Humiliate the Republicans

Al Qaeda has finally made an official statement of policy regarding the 2008 US elections, and it is a ringing “anti-endorsement” for the Republican Party. 

The ”anti-endorsement”, posted on the jihadist forums a week before the Election Day 2008, was included towards the end of the message. The message, from Al Qaeda leader (and Bagram prison escapee) Abu Yahya al Libi, was a Khutba or sermon delivered in honor of the Eid al Fitre holiday. 

Unlike 2004, when Bin Laden referenced both candidates by name, but refrained from actually endorsing either, Al Libi specifically calls for the wrath of Allah to be brought down upon the Republicans. 

The message is more of a “vote against” message calling for the party of Bush to be humiliated, rather than a “vote for” message promoting Obama and the Democrats: 

Oh Allah, Lord of mankind, humiliate Bush and his party! 

Oh, Allah, degrade and defy him! 

Oh Allah, Lord of mankind, defy him!

Oh Allah, make him live a day like the day Pharoah, Haman, and Qarun experienced, making him an example… 

Comments about the election have been few and far between on the jihadist forums and in message from Al Qaeda leadership this year. This is a sharp contrast to the 2004 election, when discussion about candidates Bush and Kerry began months in advance of Election Day, and culminated in an official As Sahab release of a video tape from Osama bin Laden. 

In a video released just 4 days before Election Day 2004, Bin Laden said: 

Your security is not in the hands of Kerry or Bush or Al-Qa’ida. 
Your security is in your own hands” 

At this point, it is not known whether or not Bin Laden will comment on the 2008 US Presidential Election. With just days to go before the election, we’ll know soon whether or not Bin Laden will make a 
statement. 

In the meantime, it appears obvious from Al Libi’s statement that Al Qaeda is not supporting the Republicans.

“Retail sales look very healthy”

I’ve been a bit quiet lately watching this financial monster unfold, and this seemingly endless US election campaign wrap up.  It is both an exciting and exhausting time to be a reporter in New York.  I will be back very soon.  In the meantime, I published this article today on the impact of the financial crisis in the retail sector in both the US and the Gulf. Always happy to hear your thoughts.  -vms

Vivian Salama

The National | October 21, 2008

The ups and downs of the markets are enough to make anyone invest in a crash helmet. A day of market euphoria is now often tailgated by one of nail-biting anxiety. 

However, beyond the day-to-day angst witnessed everywhere from New York to Dubai to Tokyo, the ultimate indication that the world’s number one economy may be slipping into recession came last week with news of the latest US retail sales, which offer the best indication of household demand.

Sales at US chain stores rose by a mere one per cent last month, making it the weakest sales growth of any September since 2001, when the industry was in a recession and absorbing the shock of the 9/11 attacks. Also earlier this month, MasterCard SpendingPulse, which measures US retail sales, said a steep drop in consumer spending sent its specialty retail sales index down 7.7 per cent in September compared with one year ago.

Many experts say there are more tough times still ahead for the US.

“We expect October sales to post a sluggish increase of about 1.5 to 2.5 per cent, as there is considerable uncertainty about the economy,” said Michael P Niemira, the chief economist and director of research for the International Council of Shopping Centres (ICSC).

Nearly 10,000km and a world away from Wall Street, the UAE is among the handful of countries bucking the current crisis with its love of high fashion, fast cars and shiny jewellery. Everything from car sales to computer sales and mall revenues is growing in double digits and expected to continue this way for months and possibly years to come.

“Consumption contributes a large part to the GDP and it is essential,” said Mary Nicola, an economist with Standard Chartered Bank. “In the past few years, most of the strength for western companies was driven by their growth in the emerging markets – it is a way to diversify assets.”

Worth about Dh367 billion (US$100bn), the retail sector serves as a major driving force behind the economies of the GCC and has become the second-largest non-oil industry in the region. It is forecast to grow to Dh1.8 trillion by 2010 according to Retail International, a Middle East consultancy firm. Retail spending in the UAE alone is projected to reach Dh37.4bn a year by the end of the decade.

However, a walk through any of the country’s malls reveals that the western business world may not be so far away after all. American and European stores such as Saks Fifth Avenue, Debenhams, Versace and Bloomingdales continue to pop up at shopping centres across the country, sending subtle reminders of the international crisis at hand, despite continued prosperity here in the region.

For instance, US sales at Saks Inc, which owns Saks Fifth Avenue stores, decreased 10.9 per cent for the five weeks ending on Oct 4. All the while, Saks Fifth Avenue has continued its expansion throughout the GCC, with the latest location due to open in the Dubai Marina. Similarly, Bloomingdales will make its debut in the region with the opening of the massive Dubai Mall next week, just as its American counterpart announced it is slashing prices by as much as 60 per cent on various items in an effort to lure buyers back into stores.

In today’s global economy, some experts believe it is foolish to take such news with stride. 

“Nobody likes uncertainty, so obviously it is going to have an impact on any kind of business, including retail businesses,” said Naeem Ghafoor, the chief executive of Skyline Retail Services Consultancy. “Luckily, our whole credit system works differently here in that we are a more cash-oriented part of the world than the US.”

Ajay Dayal, the general manager of retail and marketing for Easa Saleh Al Gurg, the holding company with brand names including United Colors of Benetton and Siemens appliances, said the UAE must now play the “wait and watch game”.

“I think we are over the first hump,” he said. “I get the feeling that sentiments will not get hurt because the government has come in so strongly and supported the banks and made sure liquidity is continued.”

Since the beginning of October, all seven Gulf bourses have fallen sharply. Dubai suffered the most, falling 22 per cent; Abu Dhabi was down 13 per cent and Saudi Arabia, Qatar and Oman were all down by 15 per cent. Still, many believe this is merely in reaction to the global market climate and is in no way an indication of the region’s economic stability. 

Moreover, the strong purchasing power in the region, it is believed, will continue to fuel growth in the retail sector. Figures released this week by the Ministry of Economy revealed that private spending, which includes household expenditure on food, rent, education and other goods and services soared by nearly 18 per cent to an all-time high of Dh290bn last year.

“Retail sales look very healthy in the region at the moment and we haven’t seen any drop-off like you see in the US and Europe,” said Shahram Shamsaee, the senior vice president of retail for MAF Shopping Malls. “Here, access to credit is a lot stricter, there are a lot more restrictions on borrowing and you have to be employed to be able to borrow.”

Others attribute the region’s stability to the franchise business model, which requires international companies to partner up with local holding companies. There are several benefits to franchising a business, say industry leaders. The biggest draw is it generates income, and it fuels business growth with minimal risk and minimal capital investment. It also increases the potential for market penetration while minimising operation costs and expenses.

“It is a way to diversify your assets and minimise exposure essentially,” said Ms Nicola. “US and European assets aren’t doing so well nowadays, so they turn to partner up with businesses here so that they maintain their chances for growth.”

In fact, the Gulf has become an oasis from the global economic downturn that has seen millions of cash-strapped consumers in the West cutting back on spending, with many brands turning to the GCC as a means to survive tougher times.

Figures released by the regional car industry estimate that the combined market for cars and light lorries in the GCC will increase about 10 per cent to 1.2 million vehicles this year. 

General Motors America reported losses of $8.5bn in revenues in the second quarter of this year compared with the same period last year, while in the Middle East, Africa and Latin America, the company increased second quarter sales by $1.7bn.

Luxury brands have done even better. Lexus UAE reported a 50 per cent increase in year-on-year sales for the first half of this year, while Lexus sales in the US were down by 15 per cent for the same period.

Far from feeling the pinch at the pump, drivers in the Gulf enjoy subsidised petrol, making heavy-duty 4×4s a common sight on the UAE’s roads.

Similarly, in the Middle East the PC maker Dell posted 55 per cent growth in unit sales in the second quarter compared to the same period last year, according to company figures based on International Data Corporation information, whereas in the US, Dell sales grew by a mere 5.8 per cent. Acer, the world’s number three PC maker, reported regional sales were up more than 54 per cent in the first quarter, while sales slumped 20 per cent in the US for the same period.

While Emiratis actively contributed to retail sales, the buying power of the country’s expatriate residents – who make up more than 80 per cent of the population – was the major source of success, a study by the Delhi-based RNCOS found. 

Tourism is also a massive factor stimulating growth, with the UAE expecting more than 11 million tourists annually by 2010. However, with dire economic conditions in Europe and North America, many travellers are likely to stay closer to home. Last month, ABTA, a leading UK travel organisation, warned that the UAE must do more to develop its budget hotel sector or risk losing tourists to cheaper destinations.

“There may be a drop in pure tourist traffic because people coming from the West may feel a bit threatened, but we have to wait to see how the winter season is impacted,” said Mr Dayal. “Let’s wait and see – it shouldn’t be too bad.”

Wake Up, America!

I was reading a really interesting op-ed by Frank Rich in the New York Times today called the McCain and Palin Shotgun Wedding.  In it, he discusses McCain’s tendency to advocate party reforms but his failure to actually lead them.  He also legitimately questions the identity of Sarah Palin who appeared out of thin air some two weeks ago becoming an overnight sensation despite having proved herself far less than Obama, a point of major contention amongst the Republicans.  Given that McCain is edging slightly ahead in the polls (to my shock and dismay), and given that he is 72 years old and has a history of illnesses, there is a fair chance that this mystery woman could become president…. How can America let this happen?  She’s set on drilling everything in sight (including her own home state); she believes that the government — and not the individual — should decide on the fate of American pregnancies; and she and her party do not support universal health care — something every democracy but America supports.  I won’t even begin to discuss the audacity of the Republican views on gun control (or lack there of).  WAKE UP AMERICA!!!! The country is in a major crisis!!!  The economy is tanking and our troops are dying…. we MUST make a change before it is too late!!!!  

Frank Rich’s column references some inaccurate references about Obama made by McCain during his RNC speech last week.  I think they are important and thought I’d post them below.  I hope you will all share your thoughts on the elections in the coming weeks!

 

FactChecking McCain

September 5, 2008

He made some flubs in accepting the nomination.

Summary

We checked the accuracy of McCain’s speech accepting the Republican nomination and noted the following:
 

• McCain claimed that Obama’s health care plan would “force small businesses to cut jobs” and would put “a bureaucrat … between you and your doctor.” In fact, the plan exempts small businesses, and those who have insurance now could keep the coverage they have. 

• McCain attacked Obama for voting for “corporate welfare” for oil companies. In fact, the bill Obama voted for raised taxes on oil companies by $300 million over 11 years while providing $5.8 billion in subsidies for renewable energy, energy efficiency and alternative fuels.
  

   

• McCain said oil imports send “$700 billion a year to countries that don’t like us very much.” But the U.S. is on track to import a total of only $536 billion worth of oil at current prices, and close to a third of that comes from Canada, Mexico and the United Kingdom. 

• He promised to increase use of “wind, tide [and] solar” energy, though his actual energy plan contains no new money for renewable energy. He has said elsewhere that renewable sources won’t produce as much as people think. 

• He called for “reducing government spending and getting rid of failed programs,” but as in the past failed to cite a single program that he would eliminate or reduce. 

• He said Obama would “close” markets to trade. In fact, Obama, though he once said he wanted to “renegotiate” the North American Free Trade Agreement, now says he simply wants to try to strengthen environmental and labor provisions in it.

The Cost of Major U.S. Wars

I stumbled upon this report today and found it really interesting, particularly given the state of the US economy these days.  It is mind boggling to think how much money President Bush and his father spent alone on warfare —- all the while, the economy took a hit during both presidencies.  It is high time America stopped trying to fix the world and started working to fix itself!  

 

Costs of Major U.S. Wars 

Stephen Daggett - Specialist in Defense Policy and Budgets 

Foreign Affairs, Defense, and Trade Division 

 

 

Since the terrorist attacks of September 11, 2001, Congress has appropriated more than $800 billion for military operations in Afghanistan, Iraq, and elsewhere around the world, including $65 billion to cover costs for the first few months of FY2009. Almost as soon as the next Administration takes office, the military services are expected to submit requests for additional funds — quite possibly $100 billion or more — to cover costs of overseas operations and of repairing and replacing worn equipment through the remainder of the fiscal year. In the face of these rather substantial and growing amounts, a recurring question has been how the mounting costs of the nation’s current wars compare to the costs of earlier conflicts.

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