Friday, November 7, 2008

A New Day for the US and a New Chance for Middle East Relations

I generally refrain from commenting on US-Middle East relations since the topic honestly bores me a bit. It seems to me to be a never-ending chain of recriminations, dashed hopes, unmet expectations, and a constant misread of the others' intentions. That's not to say that the US and Middle East governments always fail to get it right (and in some important instances they do make bilateral relationships work.)

It is hard, however, to let the election of Barack Obama pass without some comment on the possibility of altering the dynamic between the US and the Middle East even just a little. The New York Times on Wednesday morning was filled with uplifting stories of international reaction to the US election. And it would seem, to Times reporters, that there is an optimism in the Arab world that an underclass black man born to a Muslim father might be more willing to make things right in the Arab world than his predecessor was. At the same time, there is a certain amount of cynicism that, at the end of the day, politics is politics and even if Obama wanted to do the right thing by the Palestinians, for example, there are huge obstacles that stand in the way domestically in the US.

I wouldn't argue them on that point, but I do think that a new Obama administration has the opportunity to change the dynamic fundamentally and make the relationship more productive from both perspectives. A very simple way to begin this is to shift the focus a bit to concentrate on economics. Prime Minister Gordon Brown was in the Gulf this week promising the Gulf states for a larger say in international institutions like the IMF if they would lend a hand in recapitalizing failing banking systems and adding to financial stability globally. I think this is an excellent idea and one that Obama's future administration should take seriously. By giving the Gulf states a bigger say, it elevates their status both domestically and globally and shows that that we can treat Arab governments with respect. Also, I think the new administration should dust off one of the Bush administration's best policies that they let wither on the vine: MEFTA. I know there are many naysayers out there over this idea, but I doubt that even Bob Zoellick appreciated how brilliant the idea was when he conceived it. Incremental change with the promise of free trade has led to institution building, more transparency, and some measure of government accountability in those countries that have FTA with the US. Increasing trade is almost beyond the point from a US foreign policy perspective. Bringing partners like Egypt, the UAE, and Kuwait closer and encouraging them to further reform can only be a good thing and contributes to more good will in the region. Finally, our export promotion programs should be spruced up and made to include foreign investment promotion. The US has been losing out to European, Asian, and other Middle Eastern companies in breaking ground in the Arab world. It's hard to imagine any room for expansion in the face of global contraction, but the Arab world may be one of the regions that does not suffer as harsh a setback as other emerging markets.

The Middle East writ large is in a period of transition and while we are bound to disappoint politically it is within our means to succeed economically. And in the long run, there is no better good will than helping to economically equip young populations for their future.

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