In 2006 the historic Italian aeronautics company “Piaggio Aerospace” has been subject to a speculative takeover by the “Mubadala” of Abu Dhabi; whereby Mubadala came in control of 98% of the Italian firm. Just for those who don’t know, Mubadala (in Arabic means Exchange) is presided by HRH. Sheikh Mohammad Ben Zayed Al Nahyan the Crown Prince of Abu Dhabi and the Vice to the Supreme Commander of the Armed Forces!
“Dainese” another piece of the ‘Made in Italy’ industry, a historic and internationally well reputed brand for technical sportswear and gear especially for motorcycling , have conceded 80% to the investment fund “Bahrain Investcorp” against 130 million US$.
These are only two examples of how in recent times, Arab wealth has been invested, funneled, abroad! Throughout the last 45 years, Arabian Petro-Dollars have always been used for concluding hundreds of Financial Speculative deals and adventurous mergers. Of course that’s OK with me as it is good for them, may Allah increase and bless their fortunes. Nevertheless, they remain always ‘Private’ fortunes, properties of a Dynasty.
Now, looking at the Far Eastern booming economy, one cannot do other than raising the ‘cliché’ question: “How did they do it?”. The answer may be in Mr. Paul Krugman’s analysis published lately on the New York Times, by which he praised those economies and presented the Japanese example as model.
Japan, same as China and most of the South East Asian nations, did survive the many difficulties and have firmly confronted the Global Economic Crisis of the past two decades; they all succeeded in saving and preserving their industrial structure, by considering that the Productive Capacity is far more important than balance sheets. By contrast, being obsessed by Debts, Deficits and Budgets; all Western Economies have remained prisoners of repeated decreases and cuts.
The reason, according to Krugman, is conceptual.. Whereas “LABOUR” as a value, is conceived in two totally opposed ways. In the Far East, labour is a Cultural Ethic considering its fundamental role in structuring society. It is seen first as an element necessary for Social Cohesion before being an economic component.
The ‘pragmatic’ west couldn’t understand such philosophy; it continues to confront economic crisis with a complete opposite attitude, undervaluing social repercussions. It didn’t quit comprehend that in order to have an economy, first serves a society. If the social tissue is disunited or disintegrated, there will remain not a single chance whatsoever to see an economic recovery.
Thank you Paul Krugman.. How I would like to forward this to the Middle East economists (since all financial consultants are foreign firms); so that they may finally figure out why their economies are in reddish deficit, and for whose benefit their countries are bound in the chains of conflict.Pass On The Word.