Sunday, February 14, 2016

Post #3 - Nationalism and Inequality in Saudi Arabia

Posted by Nathan Gerdes

Nationalism

As an American born at the end of the 20th century, nationalism is an idea that has always been ingrained me. The 20th century has been coined “The American Century” due to the economic and diplomatic success the U.S. has seen throughout the century. Accompanying this success is the pride that the U.S. citizens have towards their country. In his book, “The Post American World”, Fareed Zakaria points out America’s patriotism. He also discusses the decline of America’s importance on the global stage, and the rise of nationalism throughout the world. He states, “The focus has shifted. Countries are increasingly interested in themselves – the story of their rise – and pay less attention to the West and the United States.”

This has much been the case in the Kingdom of Saudi Arabia. As Reuters points out, “National identity in Saudi Arabia is closely bound up with the strict Wahhabi Sunni school, which views Shi'ism as heretical, and whose leading clerics sometimes publicly cast doubt on whether Shi'ites are truly Muslim.” This can be seen in the multiple conflicts throughout the Middle East. The clearest example is Suadi Arabia’s involvement in the Yemen civil war.

 

According to an opinion by Dr. Theodore Karasik in The National, an Abu Dhabi English news publication, ever since Saudi Arabia entered the fight against the Shi’ite Houthis in March of 2015:

“The kingdom’s Grand Mufti, Abdel Aziz Al Sheikh, has called for national support and conscription. This is significant as it is the Al Sheikh family, the official interpreter of Wahabism, that provides the religious foundation for Saudi nationalism.”

Saudi Arabia’s success in this war is very important for the pride of the country. Especially considering the differences with Iran. It is important that Saudi Arabia revive itself after the struggles it has faced in deposing Iran backed Assad in Syria. Also, recent U.S.-Iranian relations have even strengthened this feeling of urgency. The Al-Monitor points this out by stating:

“The war on Yemen may well be what Saudis — both commoners and royalty — have wanted for a long time. A victory over the Houthis is important for domestic reasons, not least to mend internal Saudi divides, but also to save the Saudi leadership from embarrassment over its complete failure to score victory over Iran in Syria and Iraq, and over Washington’s new policy to mend its ties with Iran and possibly lift sanctions.”

Income Inequality

Income inequality is a burden that every nation must deal with; however, as it grows worse, its horrible effects often grow much faster. As Tony Judt states in “Ill Fares the Land”, “Inequality is corrosive. It rots societies from within.”

In the last half century, Saudi Arabia has been able to accumulate a vast amount of wealth mostly due to the discovery of oil. However, with this wealth, also came issues of inequality. The New York Times attributes some of this inequality to the rising oil prices between 2005 and 2008. In 2008, inflation grew to 10.6%, its highest level in over 30 years. This led prices of consumer goods to increase while wages were stagnant. The Gini coefficient of Saudi Arabia was at 45.9 in 2013. This is down from 51.3 in 2007, according to Arab News. This is fairly high when compared to many of the largest economies. As of late, the income inequality outlook is very poor.

As I discussed in my posts the past two weeks, Saudi Arabia’s economy is facing dire times as oil prices are at historically low prices. To make up for the future deficits, the government is cutting spending and even discussing the possibility of taxes. According to the Financial Times, “The cuts will cost the average household an extra $140 a month.” This is likely to further hurt the middle and lower classes. In the very short term, we may not see many effects, but it will not take long before these cuts start to have very bad consequences.




Additional Sources:

Judt, Tony. Ill Fares the Land. New York: Penguin, 2010. Print.
Zakaria, Fareed. The Post-American World. New York: W.W. Norton, 2008. Print.



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