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May 2, 2004
The human factor
Prince El Hassan bin Talal writes about the importance of looking into the humanizing dimension of economic policies
MANPOWER migration is a phenomenon that has become a primary intra-regional concern in the Middle East in recent years. In terms of both their specific nature and relative magnitude, the trends of this migration for employment within our region warrant careful evaluation and objective analysis. Just as other economic phenomena usually entail costs and benefits that are both social and economic, manpower migration has generated socio-economic costs as well as benefits affecting most, if not all, nations in the region. The a priori objective of analysis should not be, as has tended in some instances to be the case, to advocate or support the case of one group of countries vis-a-vis the other in terms of distribution of the gains and burdens of this manpower exchange. Rather than culminating in dialectics between labour-sending and labour-receiving countries, studies and analyses should contribute to a more rational approach to this important issue by decision-makers in the area.
It can be safely stated that there is a general consensus at least on the basic fact that all sending and receiving states have both benefited and been burdened, to varying extents, by these migratory moves, which have increased substantially in the decade since the 1973 oil boom. Whether the gains and losses have been distributed evenly or unevenly, and, if adjustments are warranted, can be matters for discussion and debate. But what is important to keep in mind is that the naked forces of the market should not be the sole determinants of these issues.
Both developed and developing nations recognize such a principle in relation to their domestic manpower policies, which take into consideration socio-political as well as economic factors. Certainly, the need for taking due account of these socio-political considerations is equally important, if not more so, in the case of external manpower policies and especially in an area like the Middle East, suffering as it does from instability and turmoil. Even in such “materialistic” sectors of international economic relations as trade or monetary relations, greater weight is being given by the world community to the socio-political effects and implications of trends, policies and adjustment mechanisms.
If and when the extent of manpower migration reaches about 50 per cent of the total labour force of a nation (as in the case of Jordan), and if and when the number of imported labourers and their dependents exceeds that of the national residents of a certain country (as in the case of some oil countries in the Middle East), then surely these trends and any ensuing adjustments cannot be left entirely to the interplay of the forces of supply and demand.
The fact that all have shared to varying extents in the benefits of such trends should not blind us to the need for a more balanced and rational policy approach in this vital sector, which will affect our region and its human beings for generations to come. It might serve a useful purpose at this juncture, and help place the foregoing points in proper perspective, to look briefly at approaches that have recently evolved in dealing with other issues of major international concern in the field of foreign economic relations.
Policy makers worldwide display an increasing awareness of the reality of economic interdependence of their respective countries as well as among the different regions of a shrinking globe. Coordination of economic policies has gone beyond the traditional field of international trade and entered into a number of areas previously regarded as of purely domestic concern. Internal economic policies and actions by individual countries, especially among the industrialized nations, are no longer allowed to be undertaken with disregard to their impact on the economies of other states.
A welcome “human” dimension has been added to issues previously considered in abstract or pure, hard economic terms. Thus, the impact of trade policies on employment is accorded concern equal to, if not higher than, that given to their impact on foreign reserves. While world economic headlines continue, quite understandably, to be dominated by matters of concern primarily to the industrialized countries, a human aspect is being imparted to these economic debates.
The “debt crisis” has recently superseded the “energy crisis” in world headlines. Its impact on the different countries and institutions both within the North and the South have become topics of primary international concern. But talk of adjustment is no longer divorced from the human dimension of this world monetary and financial crisis in terms of the impact of any proposed adjustments not only on the poorest nations but also on the poorest segments of the population of the poorest nations affected. The debt crisis is being increasingly, and quite rightly, humanized.
Similarly, discussions of trade and tariffs increasingly take into consideration their impact on domestic employment and ensuing social side-effects within the different states. Even “purely domestic” monetary and other economic policies among the leading industrialized nations are no longer considered in isolation from their effects on inflation, employment and other social matters in the domestic sectors of the other nations.
While the humanization of such international economic issues is to be both welcomed and encouraged, it is disheartening to see the resistance being put up against “humanizing” (if one may use the term within this context) issues which deal with the human being himself in the first place. Many of the decision makers involved with problems of manpower migration would rather relegate their resolution to the non-human invisible hand of the market forces than put up with the implications and complications that can ensue from viewing such problems from a “human” or at least a regional socio-political perspective. Thus, paradoxically, the non-human issues of money and finance have been more readily humanized than the human issues of manpower.
It is self-evident why problems of manpower migration do not generate the same level of concern internationally in comparison to those of energy or international debt; the fact is that the former afflict fewer countries and in many instances less severely. Beyond the limited regional, yet expanding, nature of this phenomenon, other features specific to it have rendered its proper understanding and evaluation more elusive. The framework within which manpower migration has occurred in recent years in the Middle East is significantly different from the context within which migration historically took place in the more advanced parts of the world.
The Industrial Revolution and the ensuing emergence of the modern industrialized world were in the first place centred on the emerging modern European state as an entity and an economic unit. The spread of industrialization across western Europe and North America spurred the growth of international trade. Quite naturally, the development of modern economic thought throughout the last two centuries reflected vividly the issues that arose out of the particular pattern of economic events, as economists grappled with the more complex economic system that was emerging and tried to analyze and explain the newly evolving economic relationships confronting them. Within that framework, the migration that occurred was that of the more permanent type, where human waves moved permanently from one region to settle in another (for example, the new world) because, in many instances, of religious persecutions, famine or other disasters, both natural and man-made.
Thus, quite naturally, the tools and weapons that economists regularly pull out from their arsenal and gingerly make available to policy makers concerned with tackling economic issues have descended to us through two centuries of being moulded and shaped by the course of events historically affecting the industrialized world. I am not belittling the relevance or usefulness of modern economic analysis developed by the North to the situation and issues of the South; but the point I am emphasizing is that the economic history of the industrial world did not witness trends comparable to the specific manpower migration that our region has experienced in recent years. Of course, the methodology and tools of economics as a highly developed discipline can be adapted and applied to our particular situation. But no readily available models have been developed elsewhere that can provide a ready and swift solution or framework of analysis.
Holistic development
‘The most difficult thing in life is to understand the obvious.’ The obvious truism which we need to understand and elaborate upon today is the need for a holistic approach to development.
A holistic approach calls for the abandonment of theories popular in the 1950s and 1960s which overemphasized economic growth to the detriment of the human factor. In the 1970s the world moved towards greater awareness of growing poverty. The approach adopted, based on basic needs, failed not only because of the selfishness of the “haves” and the helplessness of the “have-nots”, but also because it lacked a holistic vision. The 1980s have so far seen more selfishness and more helplessness, both compounded by the overwhelming problems of debt, deprivation and growing disparities among and within countries.
In the 1990s, some rays of hope began appearing on the horizon: a gradual move towards ending regional conflicts, more balanced management policies, a greater awareness of interdisciplinary linkages and more benefits arising from technological advances.
To maximize the benefits of this improving global environment, we must develop a well-defined holistic strategy including three basic elements. The first is to make social development an integral part of economic policies and human welfare a top priority in national policy making. The other two elements may not yet be fully accepted; but without them we can hardly face the 21st century. The second element is intergenerational responsibility, which means ensuring that this planet is not inherited by our children with its environment degraded, its resources depleted and its life support system impaired.
Finally, “human solidarity” is sustained by the recognition that adversity anywhere is a threat to prosperity everywhere. We must accept the reality of a “human neighbourhood” on an ever-shrinking planet. Technological advances have brought human beings closer to each other, for better or for worse; and we have to learn to live with each other, whatever our prejudice, colour or creed.
The three elements of a holistic approach to development can be illustrated by identifying four specific areas which are often neglected in global strategy.
Youth
It is estimated that by the year 2000, people less than 30 years of age will constitute almost 60 per cent of the world’s population.
In the South, the rapidly increasing population of the young will pose new challenges to social and political structures. It will call for a radical review of urban planning, of the labour market, of agricultural policies, of methods of education and vocational training, of health care, and so forth.
In the North, the increasing population of the old will bring about its own challenges — to systems of social security, to the job market, to living habits, etc
In global terms, a new generational confrontation will need to be averted if we are to preserve existing infrastructure and systems.
Women
The central role played by women in the development process is now being increasingly recognized. Women constitute the majority of the world’s population; yet many societies still persist in discriminating against them.
The goals and strategies to be developed for the year 2000 must include not only a full awareness of this reality, but also far-sighted recommendations for concrete measures that can be taken to improve the situation of women.
Women earn only 10 per cent of the world’s income and own one per cent of the world’s property. This is not only an affront to our common humanity; it is also a sad comment on our times when we have the means, more than ever before, to redress such a situation, and yet we fail to do so.
Regional cooperation
There is a growing awareness of the benefits of regional cooperation. The increasing number of regional organizations bears testimony to this welcome phenomenon.
We must now identify the profiles of different regions for the purpose of interregional cooperation. We should ensure that regionalism provides new building blocks for global cooperation. The new trend towards ending regional conflicts should be strengthened in order to put an end to fragmentation and exclusivity — particularly in the field of development, where each stands to gain from all.
Instead of reacting individually to maximize benefits or minimize damage, we must acknowledge the fact that individual, isolated reactions will only aggravate the inertia in the world economic system. Regionalism, nourished by homogeneity, common interests and shared perceptions, should be used to reinvigorate multilateralism and to promote a new international environment conducive to global cooperation.
Humanitarianism
Humanitarianism should no longer be seen as “do-goodism” or as a “charity business” adopted as a solution to the problem of surplus commodities. Rather, it should be viewed as a manifestation of “enlightened self-interest”.
As was pointed out in a report, entitled Winning the Human Race? by an independent commission which I had the privilege to initiate, humanitarianism demands that “whatever detracts from human well-being must be questioned, regardless of its effects on economic growth, political power or the stability of a certain order”.
Addressing humanitarianism problems is the first essential step towards social development, without which economic development can never be sustainable.
Excerpted with permission from
Continuity, Innovation and Change: Selected Essays
By El Hassan bin Talal
Majlis El Hassan, The Royal Court, Amman, Jordan
Email: majlis@majliselhassan.org
ISBN 9957-419-01-3
100pp. Price not listed
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