After a long absence abroad I came home to find myself enjoying the warmth of Saudi social life. It is of a kind not found anywhere else in the world. Where else would you consistently find conversations touching on everything from the eternal issue of Palestine to property disputes? This diversity strengthens the resolve of all of us who are working hard to build a better future for the country. People agree on the strategy but may differ on the tactics when it comes to charting out economic and social course. Agreeing on the guidelines and indicators that should be adopted to achieve this, however, remains a distant goal.

Japan came out of the Second World War a ruined country. To recover, such giant names as Sony, Honda and Nissan and many others worked as one team guided by a governmental body and their country’s long heritage of social and family traditions. Every one in the group knew exactly what was required of him and worked in harmony as if they were members of an orchestra. Their advice to third world countries is simple; tap your resource potentials to the maximum and build diverse industries according to your abilities, circumstances and comparative advantage.

One of my Saudi friends wants to know why the United States, preaching economic freedom and demanding the removal of any form of protective measures, is doing the opposite and in broad daylight. What is required of various regional blocs seeking development for their countries is to unite and work to bring the US in line with the rest of the world. At the same time, these blocs must consolidate their efforts in order to exert pressure. Working through different United Nations organizations would be one way. Arab countries could benefit from the experience of other nations that have traveled the road of economic and social development before them. They have to understand that development can’t be achieved if each country insists on confining itself to its own borders where the local market is of limited purchasing power or if they want to build the kinds of industries already found in other countries. The Arab nations cannot simply copy what Europe began 50 years ago. Today’s industry is based on highly complicated scientific and technological considerations that were not available to countries setting out development plans in the post-war era. Today’s modern industrial economy is a blend of goods, services and information. It is not necessary to develop heavy industries based on steel to join the industrialized world. Only large local markets with huge purchasing potentials can accommodate such. For example, there are at least six washing detergent factories in the GCC and they satisfy local needs. Scores of other factories manufacture the same product in other Arab countries. These factories were not built to export products but were the result of restrictions and barriers that make it impossible to access other Arab countries. Compare this situation with that of Brazil, a market of 170 million people. The country has only one manufacturer of washing detergent and it supplies other Latin American markets. Production cost in Brazil is insignificant compared to the cost of the six Arab factories.

In Europe, industry accounts for only a quarter of overall economic activity and employs no more than 45 million people or 10 percent of the population. The rest goes to “services”. We miss the social links and spirit of cooperation that prevailed in our country in the past. These have to be restarted to guide us in our economic drive. No matter how divergent our views, the ultimate objective remains the same: indigenous socio-economic industrial development capable of accessing both regional and international markets.