THE boycott of American and Israeli products is on an individual level rather than an organized movement. It will most likely be ineffective because there are no decent alternatives to certain heavy industrial and IT products. In those areas, the US dominates. Still at the same time, if Mahatma Gandhi’s civil disobedience movement could work and if apartheid could be defeated, perhaps the US could also be influenced. The boycott may not make much of an impact upon the US economy but it could serve a far more important purpose: waking up some Arab and Muslim countries. Waking them up from their laziness, their lack of productivity and their self-satisfaction.
For some of these countries, India would be a country to emulate. It is one of the few developing countries that has made itself self-sufficient from match-boxes to space science. Despite its population and widespread poverty, India is also a force to reckon with in information technology and defense.
India and countries with low labor costs, good education and transportation facilities and a reasonable communication infrastructure will attract maximum investment from multinational organizations. Despite India’s problems, it has emerged as the largest IT services employer outside US and a base for software development. Most software giants — IBM, Microsoft, Novell — have development centers in India. The Indian IT revolution was possible not only because of low labor cost and good education but because of the industrious enterprise of the people involved. Just a little change in the mindset plus a little desire to work harder would allow Muslim countries to approach where Indian-Americans are: holding over 40 percent of high-tech jobs in California’s Silicon Valley. Muslim countries should put IT at the top of the national agenda just as the Indian government has done.
Trends in the global software industry show it is heavily people-oriented with superior capital-output, low entry barriers, high quality jobs and a high growth rate. Its main product is intangible and of variable value. Many companies outsource which enables them to focus on their core business and hence optimize their use of internal resources. This leads in turn to significant cost advantages. Once there are enough well-trained IT professionals, investments will flow and development will take off. Instead of ranting, raving, complaining and being slaves to imported fizzy drinks and unhealthy imported fast food, the Muslim world should exploit some of these software opportunities.
When Westerners smugly point out that the trade of the entire Arab world is less than that of tiny Holland, there is no need to fume and retort with meaningless excuses. Facts are facts and Arab dependence on imports has reached shameful heights. The Arabs must do more than pump oil from under the sand and barter it for everything from Boeings to baked goods.
It is not enough that enterprises such as Pepsi provide only the know-how for Saudi-based factories. The emphasis should not be on importing technology but on its production and effective incorporation with an eye on market dynamics. Saudi dairy giant Safi has entered a joint venture with French Danone. The deal was not a business-savvy one; Safi should have gained access to the international market for itself or at least have retained a 51 percent share in the venture. As it stands, Danone has the 51 percent share and so naturally has the upper hand as well.
Arab countries should also focus on tourism. There are many sites of interest throughout the Arab world. Experts in tourism should be brought in to identify the sites and suggest ways of making them appealing to tourists. Promoting desert excursions, safaris and traditional craft have good possibilities and prospects.
Now back to the idea of a boycott which is where this all began. For a boycott to be successful, it must be properly organized and its reasons publicized. The Arab world would do itself a much greater service if it concentrated on its own development and thus freed itself from dependence on imports.