Islam and Economic Modernisation in the Middle East.

Despite the impressive success of democracy in Tunisia, an Arab/Muslim country, the economy is a disappointment. This is because democracy doesn’t necessarily obliterate oligarchy- Pakistan is a case in point, for although It is a democracy, it is still oligarchic as well as being semi-feudal- which stifles entrepreneurship, competitiveness, or even growth-oriented state investment, and leads to inefficient, skewed allocation of resources. Oligarchy in Islamic countries doesn’t spring out of a vacuum; it stems from societies organized on patronage and clientelism where there is not much emphasis on free association and individualism. Also, the concept of common good is not well-entrenched partly because there are no traditions of strong, impartial states.

East Asia is an exception: lacking in traditions of individualism, Intricate social organization, patriotic sense and strong states turned what might be termed oligarchies into engines of growth.

The organic nature of oligarchy in the Islamic world is best exemplified in Turkey. Having achieved impressive growth over the past 15 years through stemming the old oligarchy, attracting German investments, and a combination of low interest rates and economic freedoms; a new oligarchy has now taken place of the old one putting the brakes on Turkey’s previous exponential growth.

Still, being somewhat isolated from the destructive turmoil of the Middle East, North Africa (Tunisa, Algeria and Morocco), stands a chance of becoming a beacon of hope. The sustainability of democracy in Tunisia along with high literacy and education rates, as well as the emancipation of women gives democracy a chance to recalibrate economic policies over time. Algeria, though lagging behind Tunisia in human development indexes, stands even a better chance for a prospective boom if a democratic transition is achieved, as it boasts functioning institutions, lesser social stratification, relative rule of law, proud citizenry, and political maturity after a bloody decade. Another important factor contributing to the better prospects in North Africa is the fact that the French dissolved tribalism in it, setting its countries apart from countries like Jordan or Syria with similar socio-economic conditions. By osmosis, Morocco will be influenced by what happens in its 2 sister countries.