The Looming Arab Food Crisis
Setting the Stage
To
set the stage, certain facts need to be stated. First, foodstuffs are
an encapsulation of water, virtual water. Generally, 1,000 tons of water
(1,000 cubic meters (m3)) are needed to produce a ton of wheat, and
16,000 m3 of water is needed to produce a ton of red meat.[1]
Further, a ton of rice requires 3,400 m3 of water to grow; a slice of
bread, 40 liters (kilograms); a cup of tea, 30 liters; an apple, 70
liters; and a glass of beer, 75 liters. It follows that the composition
of one's diet determines the volume of water embedded in the food
consumed. The more meat in a diet, especially red meat, the more water
an individual consumes. The term virtual water and food will be used in
this paper interchangeably.
Second, an individual requires one
cubic meter of drinking water per annum, between 50 and 100 m3 for other
domestic uses, and about 1,000 m3 of water to raise the food
requirement of that individual.[2] At the national level, over 90 per cent of the water needed by an individual or the economy provides one's food needs.[3] This water can either be local or "imported" in the form of virtual water.
The Water Challenge
The
following table shows the food self-sufficiency ratio of the nine most
populous Arab countries, per capita gross domestic product (GDP), and
the degree of reliance on the agricultural sector. Saudi Arabia is
classified separately due to its wealth relative to the other countries
in the table and to its unique unsuccessful experiment in desert
agriculture, as will be addressed later in this article.
Country
(1) |
Agricultural share of annual freshwater withdrawal (billion m3)
(2) |
Annual water for cotton (billion m3)
(3) |
Annual water for foodstuffs
(billion m3) (4) = (2- 3) |
Annual virtual water needs
(billion m3)
(5) = population size x 1,000 m3) (a) |
Food self-sufficiency %
(6) = (4/5) |
Per capita GDP @ official rates ($)
(7) |
Labor force in agriculture %
(8) |
Algeria |
6x65%=4 |
- |
4 |
34 |
14% |
3.880 |
14% |
Egypt |
68x86% = 58 |
3 (b) |
55 |
82 |
67% |
1.560 |
32% |
Iraq |
43x92% = 40 |
- |
40 |
28 |
143% |
1.965 |
NA |
Morocco |
13x87% = 11 |
- |
11 |
34 |
32% |
2.150 |
40% |
Syria |
20x95% = 19 |
4 (c) |
15 |
19 |
79% |
2.000 |
32% (d) |
Sudan |
37x97% = 36 |
- |
36 |
40 |
90% |
1.250 |
80% |
Tunisia |
2.6x82% = 2 |
- |
2 |
11 |
18% |
3.300 |
55% |
Yemen |
7x95% = 6 |
- |
6 |
28 |
21% |
960 |
NA |
Total |
176 |
7 |
169 |
276 |
60% |
1.953 |
|
Saudi Arabia |
17x89% = 15 |
- |
15 |
28 |
54% |
13.400 |
12% |
Source: Unless noted otherwise, the data in the table are from CIA World Factbook. Most of the data are for 2007, https://www.cia.gov/library/publications/the-world-factbook/geos/sy.html.
(a)
Since an individual requires about 1,000 cubic meters of water per
annum to raise the food requirement of that individual, the annual
volume of water embedded in the food requirements of the entire
population of a country would be equal to the size of the population x
1,000 m3.(b) UNESCO-IHE Institute for Water Education, 2005, "The Water Footprint of Cotton Consumption," p. 15, http://www.waterfootprint.org/Reports/Report18.pdf.(c) The World Bank (WB), Rural Development, Water and Environment Group, Middle East and North Africa Region, Syrian Arab Republic Irrigation Sector Report, No. 22602, (Washington D.C., WB, August 6, 2001), Table A. 12, p. 58.
(d)
One quarter of Syria's labor force is engaged in agriculture plus one
half of the manufacturing workforce is dependent on agriculture for
employment (Ibid, p. ix).
The table invites three
observations: First, although the ratio of food self-sufficiency varies
from one country to another the overall average ratio is rather low: 60
percent. Second, with an average per capita GDP of less than $1,950 per
annum the Arab region outside the oil producing countries is
characterized as poor. Third, the degree of reliance on the agricultural
sector by Arab labor is significant; more so for the population as a
whole since rural families typically have more children than urban
families.[4]
In
this article, the inefficient investment that Saudi Arabia and Syria
undertook in irrigation and agricultural development in the recent
decades and Egypt's perilous course in hydropolitics will be discussed.
Solutions will be advocated, particularly the allocation of scarce
resources according to rate of return on investment criterion and the
establishment of a giant "peace fund" by the oil-exporters of the
Arabian Peninsula to alleviate poverty among their neighboring poor.
Saudi
Arabia, Syria, and Egypt represent useful case studies to ponder. The
three countries demonstrate that in spite of the profound differences
among Arab monarchies and republics in types of governance, ideologies,
political agendas, natural resources, and climate conditions, they
nonetheless share in common national decisionmaking processes that
produced financially wasteful and environmentally damaging strategies.
These case studies approximate sociopolitical models found in other Arab
monarchies and republics.
Saudi Arabia's Agricultural Project: From Dust to Dust
Saudi
Arabia's desert agriculture confirms that money and water can make even
a desert bloom until either the money runs out or the water is
depleted.[5]
Saudi Arabia's experience is noteworthy because within 15 years, the
country experienced shortages of both money and later, water. These
shortages impacted negatively on the country's heralded commitment to
desert agriculture.
In 1993, Saudi Arabia suffered financial
strains, so its cereal-growing program of the previous twelve years was
scaled down drastically. Then, in early 2008, as the quality and
quantity of non-renewable aquifers reached perilous levels, the
government declared that purchases of wheat from local farmers would be
reduced by 12.5 percent annually, with the aim of relying entirely on
imports by 2016.[6]
Farming
is alien to desert habitat and the culture of its peoples. As Saudi
Arabia became rich following the quadrupling of oil prices in 1973,
however, Saudi investors were induced by huge government subsidies to
import the equipment and the farm workers to implement a heavily
propagated strategy of food self-sufficiency. Within 12 years, between
1980 and 1992, wheat production grew 29-fold--to 4.1 million tons[7]--making the Saudi desert the world's sixth-largest wheat exporting country.[8] To achieve this enormous growth, the wheat-producing areas were increased by 14-fold, to 924,000 hectares.[9]
To put 924,000 hectares in perspective, Egypt, with five times as many
people, has an irrigated surface for all crops evolved over the
centuries of 3 million hectares.[10]
Beginning in 1993, under pressure from declining oil prices since the mid 1980s,[11]
the government had to scale down its wheat-growing subsidies. The
budget deficits between 1984 and 1992 added up to $130 billion.[12]
Liquidity became so tight that the government had to delay (default)
for a few years in honoring more than $70 billion in obligations to
thousands of suppliers, contractors, and farmers.[13] Between 1981 and 1993, spending on security added up to $225 billion, out of $420 billion in total oil revenues.[14] In addition, the 1980-1988 Iran-Iraq War cost $25.7 billion,[15] the 1991 Gulf War cost $80 billion,[16]
and maintaining the profligate lifestyle of some 4,000 immediate
members during that period of the al-Saud ruling family's patriarch may
be estimated to have cost $4 billion per annum.[17]
Within four years, by the end of 1996, 76 percent of the new wheat-growing surface was abandoned.[18] Wheat production dropped by 70 percent.[19] By 2000, barley production, too, dropped by 94 percent.[20]
The estimated financial cost of this venture between 1984 and 2000 was around $100 billion,[21] excluding a number of unquantifiable subsidies.[22]
If these subsidies were added, the overall spending might have doubled
and the cost of wheat doubled to $1,000 per ton. The international price
for wheat during that period averaged $120 a ton.[23]
As
for the cost in terms of water, between 1980 and 1999, a gargantuan
volume of water--300 billion cubic meters, the equivalent to six years
flow of the Nile River into Egypt--was used. Such volume translates to
around 15 billion cubic meters per annum--equivalent to the volume of
water that Syria and Iraq combined receives from the Euphrates River.
Two-thirds of the water thus used is regarded as nonrenewable, according
to estimates by the Ministry of Agriculture and Water.[24]
At this rate, it does not need to be a genius to predict that if the
extraction does not stop, the non-renewable water reserves will sooner
or later be depleted. The January 2008 announcement confirms this
reality.
dramatic rise and equally dramatic fall of Saudi
cereal production reflected haphazard planning and a failed, politically
determined economic and ecological policy created by poorly informed
elite enjoying rentier economic circumstances. This experience proved
merely that throwing out money and water could make even a desert bloom,
until either the money or the water ran out.
Food independence is
impossible for a country like Saudi Arabia. A population of about 28
million requires about 28 billion m3 of water annually to grow its food
needs. However, as the above table shows, Saudi Arabia extracts 15
billion m3, or 54 percent. Eventually, the irrigated lands from
non-renewable water sources will be abandoned and the investments
written off.
A country like Saudi Arabia would be better off to
stop desert irrigation altogether in order to spare its remaining water
for drinking and household purposes for future generations. Saudi Arabia
and the other five members of the Gulf Cooperation Council (GCC);
Bahrain, Kuwait, Oman, Qatar, United Arab Emirates, are fortunate in
that oil revenues will enable them to import foodstuffs; at least until
alternative energy sources will be found or until the oil gets depleted
and the financial reserves dissipated.
The Syrian Government: A Bad Farmer
Unlike
Saudi Arabia, agriculture in Syria has for millennia supported large
population centers and produced thriving civilizations along rivers and
coastal areas. Of Syria's landmass (185,000 sq. km), 25 percent is
arable.[25]
Spending
by the Syrian government on irrigation and agricultural development has
been substantial but inefficient. Beginning in 1960, the eight
five-year plans that followed invested about $20 billion on the
agricultural sector (at the official foreign exchange rates of that
period).[26] Three-quarters of the investment was made between 1988 and 2000.[27]
However, the results have not been brilliant; 550,000 hectares, or 45
percent of the country's total irrigated surface, were added during this
period, of which the government contributed 138,000 hectares[28]
and the private sector developed the rest. Ninety percent of the
138,000 hectares (124,000 hectares) was in the salt-affected and
drainage-poor Euphrates Basin--gypsum in the soil caused the irrigation
networks to collapse. In the Euphrates Basin 43 percent of the land was
identified by the World Bank as having drainage problems or potential to
develop problems in the future.[29]
The
government started in 1968 building the Tabqa Dam on the Euphrates
River. Made in the Syrian national discourse as one of the government's
proudest achievements, the Tabqa Dam failed to achieve its targets. The
plan was for the dam to increase by 2000 the irrigated surface in the
Euphrates Basin by 640,000 hectares.[30] By 2000, only 124,000 hectares, or 19 percent of the target had been achieved.[31]
Land reclamation cost was high, estimated at $25,700 per hectare.[32]
At such costs, it would be practically impossible to make a reasonable
rate of return on the investment. A 10 percent return translates to
$2,570 per hectare, over and above the cost of production.
The Tabqa Dam wastes a huge volume of water to evaporation, estimated at 1.6 billion m3 annually.[33]
While this volume could theoretically satisfy the drinking and
household water needs of Syria's 19 million inhabitants, most cities
have been suffering severe water shortages for years, including the
capital Damascus, which suffers daily water shut-offs during the blazing
summer months lasting over fifteen hours.
The loss of water to
evaporation is all the more significant in light of Turkey's 50 percent
cut in the flow of the Euphrates River into Syria and Iraq, which
resulted from the construction of the huge GAP project in eastern
Turkey. Turkey reduced the flow to Syria and Iraq to 500 m3 per second
in accordance with a protocol for the distribution of the river's waters
signed on July 17, 1987. Turkey started construction of the Keban Dam
in 1966, two years before Tabqa's start of construction.[34]
The
non-financial returns from the government's emphasis on investment in
agriculture were poor as well. Under Syria's vulnerable economic
circumstances and despite the government's commitment to the welfare of
the agricultural sector, the migration from rural communities to urban
centers continued. The ratio of rural to total population has declined
since 1961, from 63 percent to 48 percent in 2000.[35]
Reliance on capricious rainfall was not reduced either. In 1989, wheat
production was 1 million tons; in 1995, it jumped to 4.2 million tons;
in 1999, it dropped to 2.7 million tons; and in 2007, it increased to
4.5 million tons.[36] Estimates for 2008 are for a harvest of around 2.5 million tons.
Over-extraction
of groundwater has deteriorated Syria's environment seriously.
Irrigation extractions beyond the volume of renewable water have led to
negative balances in five out the country's seven basins,[37] thus reducing the quantity and degrading the quality of the remaining water reserves.[38]
Like
Saudi Arabia, food independence is impossible for a country like Syria
to achieve. Syria's population of about 19 million requires about 19
billion m3 of water annually to grow its food needs. Yet as the above
table shows, Syria can provide only 15 billion m3 from irrigation and
rain combined. The gap will get bigger as Syria's population grows.
The
World Bank concluded that Syria's government "will need to recognize
that achieving food security with respect to wheat and other cereals in
the short-term as well as the encouragement of water-intensive cotton
appear to be undermining Syria's security over the long-term by
depleting available groundwater resources."[39] Of Syria's 13 billion m3 in irrigation water use, almost a third (4 billion m3) is used in cotton irrigation.[40]
In spite of these difficulties, a Ministry of Irrigation Strategy
report revealed Syria's commitment to increasing the irrigated surface
between 2000 and 2020 by 493,000 hectares in five of the country's seven
basins; 181,000 hectares of which in the Euphrates Basin.[41]
Eventually,
with continued water over-extraction, irrigated lands will be
abandoned, investments written off, and food production halted. Coupled
with Syria's narrow GDP diversification and dearth in foreign currency
sources from exports, food imports would become increasingly difficult
to afford. Whenever this happens, the negative impact on rural
communities and societal order could be shattering.
A country
like Syria would be better off beginning to focus its efforts on
investment in export industries in order to generate sufficient foreign
currencies to buy food in the future instead of continuing to invest in
white elephant irrigation schemes.
Lessons from the Experience of Saudi Arabia and Syria
From
the above, it may be concluded that money and water can make a desert
bloom until either the money or the water runs out. Food
self-sufficiency in arid and semi-arid countries like Saudi Arabia and
Syria is more of a romantic dream than a reasoned strategy. The above
table shows that slogans and political economics aside, food
self-sufficiency in Arab countries is impossible to attain or sustain.
Growing populations and insufficient water resources make such a
strategy unrealistic.
Currently, the overall ratio of Arab food
self-sufficiency is 60 percent. As the size of the population grows, the
ratio will progressively decline. The overall deficit of 40 percent has
been covered through food imports, quietly. Importing foodstuffs runs
in the face of the well-propagated slogan of food independence, so the
government-controlled media ignores discussing food imports.
Except
for Iraq, the food self-sufficiency ratio of every country in the table
is negative. The ratio ranges from as little as 14 percent for Algeria,
18 percent for Tunisia, 21 percent for Yemen, 32 percent for Morocco to
as much as 90 percent for Sudan, 79 percent for Syria, and 67 percent
for Egypt. By 2050, the region's population is expected to grow by
two-thirds.[42]
By that time, even if water volumes do not decrease--a big if--the
overall food self-sufficiency ratio in Arab countries will decline to
around 35 percent.
Under the arid and semi-arid conditions of the
Arab world an economist would argue that it would be beneficial to
import foodstuffs instead of investing in financially and
environmentally non-viable local farming schemes. An economist would
also argue that farming in arid or semi-arid areas should be left to
rain fed lands. Given that drinking and household water use in every
country is typically one tenth the volume of the water needed to become
food self-sufficient, it would be necessary to stop further depletion of
non-renewable water reserves by abandoning irrigation schemes so that
the remaining water may be preserved for drinking and household
purposes. International "trade" in virtual water allows water-scarce
countries to import high water using foodstuffs and export low water
using manufactured products.
However, importing foodstuffs gives
rise to three challenges. The first is national security. Importing
foodstuffs runs contrary to the popular notion in Arab countries that
food self-sufficiency protects national security from the dangers of a
boycott. Government propagandists succeeded in incorporating this
fallacy into the national discourse. They made it into a sacrosanct
belief without regard to their severe water shortage or the fact that
they import many items, the boycott of any of which would be as
detrimental to national security as the boycott of foodstuffs, if not
more; such as, to name only a few, desalination plants, medical
equipment, pharmaceuticals, spare parts, etc.
Failure to address
critical issues like water scarcity openly and truthfully is not
surprising under non-representative non-participatory governance. Such
type of rule bans free press, egalitarian non-governmental
organizations, and environmental groups--thus, making it impossible to
have effective dissent against the mendacity of food independence in a
mainly arid region or introduce a balancing perspective into water
policy.
The second challenge is the difficulty in generating
the foreign exchange needed to pay for food imports. While foreign
exchange is not an issue for the time being in the underdeveloped but
rich economies of the Arab oil producers, securing foreign currencies is
a major problem to the underdeveloped and poor economies of the non-oil
rich states where more than 90 percent of the Arab population lives.
The
third challenge is the negative effect that virtual water imports have
on rural employment. While farming in the oil-rich desert states is an
aberration and expatriate workers do the work, in semi-arid societies
the land is the only source of livelihood for millions. While abandoning
farming in the oil-rich desert states would mean sending the foreign
workers back to their countries of origin, virtual water "trade" by poor
arid/semi-arid countries would cause severe dislocations to rural
communities, typically suffering from little or no alternative work
opportunities. Economic and labor immobility causes governments to make
politically convenient decisions despite their financial inefficiency
and environmental damage in order to avoid societal unrest.
Failure
to export low-water using goods, to enhance non-farm employment
opportunities in rural areas, and to cut population growth rates
substantially will prolong dependency on irrigation water. Failure in
these areas, as the case of Egypt below will illustrate, transforms
transboundary rivers into sources of conflict, even war. By contrast, in
an economy that is rich, well diversified, and abundant in foreign
currency earnings, like that of Israel, for example, water scarcity
should be of little consequence.
Egypt's Hydropolitics: A Perilous Course
With
a per capita income of $1,560 in 2007 (at official rates), Egypt is
poor. It is desperately dependent on irrigation water. It cannot easily
generate the foreign currencies to import additional foodstuffs. It also
suffers from economic and labor immobility and rapid population growth.
Over the past 50 years, Egypt's population has more than tripled to 82
million, representing more than a quarter of the Arab world's population
today. By 2050, Egypt's population is expected to reach 160 million
people.[43]
Like
Saudi Arabia and Syria, food independence is impossible for a country
like Egypt. With a population of 82 million, Egypt needs some 82 billion
m3 of water to grow the food it needs to make it food self-sufficient.
Yet as the above table indicates, Egypt's annual water volume from the
Nile River for foodstuffs is 55 billion m3. The difference of 27 billion
m3 is "imported" in the form of foodstuffs, quietly. The future
promises that more virtual water "trade" will become necessary, as
Egypt's population continues to grow.
The Nile is critical for
Egypt, a matter of life and death. The Nile supplies almost all of
Egypt's fresh water. A 1959 agreement between Egypt and Sudan allocated
the Nile's annual flow of 84 billion m3, minus 10 billion m3 for
evaporation from Lake Nasser, on the basis of 75 percent for Egypt--or
55.5 billion m3 per annum--and 25 percent for Sudan--or, 18.5 billion m3
per annum. The agreement was reached without acquiescence or
involvement of the other eight riparian countries. Egypt's entire
freshwater supply originates outside its borders, raising troubling
national security threats to Egyptians. The Nile flows into Egypt via
Sudan from Ethiopia, Uganda, Tanzania, Kenya, the Democratic Republic of
the Congo, Rwanda, Burundi, and Eritrea.
Egypt's difficult
economic circumstances expose its national security to the irrigation
actions of its upstream riparians. Consequently, the government of Egypt
has threatened its upstream riparian countries with war if the Nile
waters were to decline as a result of irrigation projects in those
countries. The threat is synonymous with Egypt decreeing that upstream
countries in the Nile basin must not engage in irrigation projects to
feed their hungry population so that Egypt's water allotment is
preserved. As a case in point, Ethiopia provides around 55 billion m3 of
the Nile's annual flow, or around two thirds of the flow to Sudan and
Egypt. Ethiopia has 200,000 irrigated hectares out of a potential 3.7
million hectares of irrigable land. With a population nearly the size of
Egypt, and facing problems in sustaining, Ethiopia will need to develop
a large portion of this land for agricultural use. If Ethiopia
irrigates only 500,000 hectares, for example, the flow of the Nile to
Sudan and Egypt will drop by 6.25 billion m3 per annum.[44]
Furthermore,
Egypt's water woes could be exacerbated by the possible effects of
global warming on the flow of the Nile from less rain and increased
evaporation. Abject poverty and hunger/famine, which afflict Egypt's
nine upstream riparian countries, combined with Egypt's own poverty and
economic plight make it reasonable to predict that it is only a matter
of time before violent conflict erupts over the Nile's waters, unless
remedial action is taken.
Egypt's Hydropolitics: A Way Forward
To avert
conflict with its riparian neighbors, Egypt has little choice but to
reduce its water use and to focus on growing and diversifying its GDP.
Especially important here is the development of industries that produce
low water using goods for export and provide employment alternatives to
farming in rural areas. Such industries would also generate the foreign
currencies needed to import high water using foodstuffs instead of
growing the food at home.
A number of measures
can grow per capita GDP and diversify its sources, including, cutting
the rate of population growth, adopting water conservation
targets--especially reducing the red meat content in people's diet--and
allocating scarce economic resources efficiently according to rate of
return on investment criterion.
In what follows, the efficient
allocation of scarce economic resources will be discussed, followed by a
proposal for the establishment of a giant peace fund by the
oil-exporters of the Arabian Peninsula to provide grants to augment the
national saving/investment of their poor neighbors to help lift them
grow and diversify their economies in order to escape poverty.
Efficient Allocation of Scarce Economic Resources
In
allocating scarce national resources, an economist would argue against
investing in any project unless justified on a purely rate of return on
investment basis. Irrigation and land reclamation projects are no
exception. These must be evaluated according to their rate of return on
investment with full costing of water that ensures maintaining the
quantity and quality of the aquifers and accounting for the negative and
positive externalities of production and consumption. A rate of return
approach diverts the foreign currencies that would otherwise be
allocated to irrigation and land reclamation to higher return
investments. In the export and/or import-substitution industries, such
diversion would increase foreign currency earnings, which would then be
used to import food. A rate of return on investment criterion would
diversify GDP sources. The diversification would enhance employment
opportunities in rural areas and mitigate the negative effects of food
imports on rural employment. A rate of return approach invests
taxpayers' money in more rewarding projects for the country as a whole,
not to one segment of the population at the expense of the others. A
rate of return on investment criterion can help steer GDP on a path of
optimal growth.
Given their low per capita income, relatively
low labor costs provide Arab labor markets with a comparative advantage
in cost of production. Comparative advantage in production cost leads to
specialization and competitiveness in world markets. It is no accident
that Japan leads the world in the export of electronics, Switzerland in
expensive watches, and the United States in computer software.
Other
approaches to scarce resource allocation are inefficient because of the
ethical, ideological, and emotional bias that typically influence
decisionmakers and are often driven by narrow personal interests. Such
debates could be particularly intense when dealing with water issues,
which impinge on poor sections of the population as well as on the
environmental services provided by water. Important matters and
decisions include: How much taxpayer money should be invested in dams
and irrigation? What volume of non-renewable groundwater ought to be
extracted? Should the water be used to supply householders or
irrigation, or for which crops should it be used and where? Last, how
much water, if any, should be conserved for environmental protection or
for future generations?
Applying a rate of return criterion makes
water extraction and delivery a central factor in the cost of
production. This issue is controversial. It represents a departure from
attitudes developed as a result of poverty and age-old customary
practices that expect water to be free of charge. However, population
explosion in Arab lands, combined today with insufficient water
resources must bring new realism into ancient expectations and
practices.
A "Peace Fund" by Arab Oil States
Per
capita income in the Arab world outside the GCC is low--less than
$2,000 a year. The web of political and commercial risks in these
markets dissuades foreign private sector investors from risking their
capital there. The gap between the investment funds needed to achieve a
desired GDP growth rate and the economy's ability to generate the
necessary saving to underwrite this investment must be sourced from
abroad. GCC states should be the source. These states have a security
interest in doing so. They also have a moral obligation to live up to
and obey the Islamic injunctions they flaunt.
The indigenous
population of the six GCC states is around 20 million, about the size of
the population of Cairo. Aside from Saudi Arabia, where 75 percent
live, the native-born populations of each GCC state are less than the
inhabitants of a single street in Baghdad, Cairo, or Damascus.
Additionally, GCC states host about 25 million expatriate workers. These
include the domestic servants, maids, and chauffeurs in almost every
home; the laborers on construction sites, farms, and municipal services;
as well as the teachers, engineers, physicians and nurses, etc.
Expatriate workers have built GCC infrastructure and glittering cities.
They keep Gulf communities functioning from producing the oil bonanza to
sweeping the streets, in return for miserly wages for most, inhumane
living conditions, slave-like treatment, and a negligible proportion of
the GDP that they generate.
GCC states produce about 17
million barrels of oil per day, valued in 2007 at more than $600
billion. Much of this staggering sum is spent on unproductive pursuits,
if past patterns are any guide. As seen above, Saudi Arabia spent
hundreds of billions of dollars on weapons and security, on
unsustainable desert irrigation schemes, and on the profligate lifestyle
of the ruling family. The five tiny GCC neighbors have spent enormous
amounts of money on symbols of statehood to demonstrate their legitimacy
and sovereignty. These city-states wasted enormous amounts of money on
procuring state-of-the-art weapons (which they cannot keep functioning
without American and European experts), on huge magnificent
airports--sometimes only a few kilometers from one another--on half a
dozen local airlines, on elaborate diplomatic missions around the globe,
etc. The ruling elites in these communities compete with each other on
who owns the grander palace, flies the bigger private Airbus or Boeing,
sails the more extravagant yacht, and flaunts the larger golf
course--all while poverty, dilapidated unsafe primitive public
utilities, disease, and illiteracy afflict the millions of Arab and
Muslim brethren nearby.
A financial aid fund or "peace fund" would
provide grants, not loans, to the poor neighbors of the GCC states. The
fund would invest in schools, libraries, laboratories, hospitals,
roads, ports, airports, telecommunication networks, water and sanitation
infrastructure, etc. Such projects would reduce chronically high
unemployment rates, improve workers' skills, enhance economic growth,
and lead to greater saving, which in turn would spur a new cycle of
economic growth that would be self-perpetuating. At a 25 percent
contribution into the proposed peace fund, a sum of $150 billion in
2007would be available to lift millions out of poverty, disease, and
frustration.
For the "peace fund" to succeed, the recipient
governments must develop good governance structures that ensure
transparency and accountability and allocate national resources
efficiently. Investing in education and health, for example, must take
precedence over purchasing weapons. That officials in the beneficiary
countries might misappropriate (steal) the aid funds is no excuse to
abandon the peace fund concept. The World Bank could manage such a
program to ensure the viability of the projects and the correctness of
the disbursements. That most GCC members have locally managed
development aid organizations is no substitute for the peace fund. The
resources of these aid organizations are woefully inadequate, and they
are politically motivated, often doing more in propaganda value for
their owners than help the poor.
Why be so generous? The answer is
that unless regional poverty is alleviated, a ticking food bomb
threatens the fantasy world of GCC living with conflict and instability.
The threat of starving hordes bordering those dazzling palaces,
skyscrapers, seven-star hotels, and ice-skating rinks should spur Arab
royals to start helping to lift their neighbors from abject poverty.
Indeed, the Koran implores Muslims to be helpful to their neighbors
(Koran, 4:36), and GCC rulers have made Islam a state ideology and a
divine way of life. Being faithful to the Koran will make them less
hypocritical.
Self interest aside, the peace fund should be
seen from a moral viewpoint--a form of reparation payments for the
cruelty wreaked by GCC societies upon the tens of millions of guest
workers who have worked there since the quadrupling of oil prices in
October 1973. That the foreign workers accepted to work for miserly
wages and put up with slave-like treatment does not absolve the
wrongdoers of moral responsibility or justify their exploitation of
hapless laborers in strange lands. It follows that the peace fund should
benefit all foreign labor providers to GCC states, especially the major
labor providers such as Bangladesh, Egypt, India, Indonesia, Pakistan,
and the Philippines.
Looking into the long-term, the peace fund
should also be regarded by GCC citizens as a down-payment of goodwill to
be used when oil ceases to be the world's prime source of energy or
when the oil reserves run out and the financial reserves dissipate.
Although such an eventuality might be decades away, the consequences of
whenever it materializes would be catastrophic to contemplate. A century
or two are like fleeting moments in the context of the long sweep of
history.
Over the millennia, a limited sized population could
survive in the harsh Arabian Desert. As late as 1960, the population of
Saudi Arabia was around four million and the rest of the Peninsula,
excluding Yemen, had less than a million. During the 1960s, travelers to
GCC capital cities recall pathetically poor and primitive living
conditions. Today, the Arabian Peninsula artificially accommodates 45
million people (excluding Yemen) through desalinated water and the
importation of every necessity and luxury. When oil loses its value and
the financial reserves are depleted, the expatriate workers will go
home, the glitzy skyscrapers will rust, and most of the natives will
want to migrate. History suggests that they would wish to settle in the
Levant, Mesopotamia, and Egypt. One historic migration is notable here.
Following the death of Muhammad in 632, poor Bedouins quickly fanned out
of Arabia in the name of Islam and settled, with the help of the sword,
in Syria, Egypt, and Iraq.
While the numbers of those involved in
previous migrations were relatively small--possibly thousands or tens
of thousands--the next migration would involve millions of people. Over a
relatively short period of time, for example, the next four decades,
the indigenous GCC population could double to 40 million (at an annual
growth rate of 1.5 percent). With such numbers, only a sizable reservoir
of past goodwill can help those who would hope to take refuge among
their brethren to the north and the west.
This
article is sourced mainly from my Ph.D. Dissertation at the Unversity
of London's School of Oriental and African Studies titled:
Experiments
in Achieving Water and Food Self-Sufficiency in the Middle East. The
Consequences of Contrasting Endowments, Ideologies, and Investment
Policies in Saudi Arabia and Syria
[1]
Tony Allan, "Virtual Water--Economically Invisible and Politically
Silent--A Way to Solve Strategic Water Problems," International Water
& Irrigation, Vol. 21, No. 4 (2001), p. 39.
[2] Tony Allan, The Middle East Water Question Hydropolitics and the Global Economy (London: I.B. Tauris, 2000), p. 6.
[3] Ibid.
[4]
In Syria, for example, the average number of children considered ideal
in rural areas was about six, and about four in Damascus. M. El-Jabi and
A. R. Omran, "Family Formation and Social Characteristics: Syrian Arab
Republic," http://www.popline.org/docs/007300.
[5] For more on
Saudi Arabia's agricultural experiment see: Elie Elhadj , Middle East
Review of International Affairs (MERIA), Saudi Arabia's Agricultural
Project: From Dust to Dust, Vol. 12, No. 2 (June 2008),
http://www.meriajournal.com/en/asp/journal/2008/june/elhadj/index.asp.
[6]
"Saudi Scraps Wheat Growing to Save Water," Reuters, January 8, 2008,
http://www.reuters.com/article/latestCrisis/idUSL08699206.
[7]
Saudi Arabian Monetary Agency (SAMA), Forty-Third Annual Report (2007),
p. 379,
http://www.sama.gov.sa/en/publications/annualrep/43annualrep_en.pdf.
[8] Alan Richards and John Waterbury, A Political Economy of the Middle East (Boulder, Colorado: Westview Press, 1998), p. 160.
[9] SAMA, Forty-Third Annual Report, p. 378.
[10] FAO Statistical Database.
[11] Historical Crude Oil Prices (Table), http://inflationdata.com/Inflation/Inflation_Rate/Historical_Oil_Prices_Table.asp.
[12] SAMA, Forty-Third Annual Report, p. 293.
[13] Saudi American Bank, The Saudi Economy in 2002 (Riyadh: Saudi American Bank, February 2003), p. 16.
[14] SAMA, Forty-Third Annual Report, pp. 290-93.
[15]
According to the late King Fahd. See Madawi al-Rasheed, A History of
Saudi Arabia (Cambridge: Cambridge University Press, 2003), p. 157.
[16]
According to the Saudi Minister of Interior. See "Gulf War Cost Riyadh
$80 Billions: Prince Naif," Arab News, September 27, 2002.
[17]
Elie Elhadj, Experiments in Achieving Water and Food Self-Sufficiency in
the Middle East: The Consequences of Contrasting Endowments,
Ideologies, and Investment Policies in Saudi Arabia and Syria, Ph.D.
Dissertation, London University, School of Oriental and African Studies,
2006, p. 30.
[18] SAMA, Forty-Third Annual Report, p. 378.
[19] Ibid, p. 379.
[20] Ibid, pp. 378-79.
[21] Elhadj, Experiments in Achieving Water and Food Self-Sufficiency in the Middle East, pp. 81-82.
[22] Ibid.
[23] Ibid.
[24] Altukhais, "Future Vision for the Saudi Economy 2020," p. 3.
[25]Central Intelligence Agency, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/sy.html.
[26] Elhadj, Experiments in Achieving Water and Food Self-Sufficiency in the Middle East, p. 33.
[27] Ibid.
[28] Ibid, p. 126.
[29] The World Bank, 2001, Table 5, pp. 12, 31.
[30]
Joanne Maher (ed.), The Middle East and Africa 2002,48th
Edition(London: Europa Publications, Taylor & Francis Group, 2002),
p. 973.
[31] Elhadj, Experiments in Achieving Water and Food Self-Sufficiency in the Middle East, pp. 126-27.
[32] Ibid, p. 128.
[33] Ibid, p. 141.
[34] Ibid, p. 172.
[35] Ibid, pp. 137-38.
[36] FAOStat, http://faostat.fao.org/site/567/DesktopDefault.aspx?PageID=567#ancor.
[37] Ministry of Irrigation, Strategy of Work at the Irrigation Ministry, (Damascus: Ministry of Irrigation,2001), p. 6.
[38]
Environmental Research Management for The World Bank/ UNDP, National
Environmental Action Plan for the Arab Republic of Syria, June 1998, pp.
12, 14.
[39] The World Bank, 2001: p. xi.
[40] Ibid, Table A.11, p. 58.
[41] Ministry of Irrigation, Strategy of Work at the Irrigation Ministry, Tables 17 and 18.
[42]
Andrew Martin, "Mideast Facing Choice Between Crops and Water," The
International Herald Tribune, August 21, 2008,
http://www.iht.com/articles/2008/07/21/business/21arabfood.php.
[43] "Bigger But Not Better," al-Ahram Weekly, No. 901, June 12-18, 2008, http://weekly.ahram.org.eg/2008/901/eg1.htm.
[44]
Daniel Kendie, "Egypt and the Hydro-Politics of the Blue Nile River,"
Northeast African Studies Vol. 6, No. 1-2 (1999), pp. 141-69,
http://muse.jhu.edu/journals/northeast_african_studies/v006/6.1kendie.html#REF9.
|