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Dubai Ports World Post-Mortem

perfect_storm.jpg

For the second time in a month, CNN Late Edition host Wolf Blitzer (WB) interviewed the UAE Minister of Economy and Planning, Sheikha Lubna al Qasimi (SLAQ). The interview was intended to cover, among other things, the impact of the demise of the Dubai Ports World deal on US-UAE relations.

WB:Thanks for joining us in Washington. How much damage, if any, has resulted from the collapse of the UAE ports deal?

SLAQ: The relationship is solid. UAE has always been a great ally of the US. This was a business deal that got politicized.

WB: No harm done?

SLAQ: No. None.

WB: What about the delay in WTO talks?

SLAQ: On my visit here the news dates have been set. The delays were unrelated to the DPW deal.

WB: The chairman of the National US Arab Chamber of Commerce asks whether Arab investors will go elsewere.

SLAQ: UAE is the 3rd largest US treading partner in Middle East behind Israel and Egypt. We buy Boeing jet aircraft, for example.

WB: There is concern in some quarters that the UAE may switch to Airbus.

SLAQ: This will not cause to switch to Airbus. Every contract is evaluated on its merits. Business is business and will continue to stay that way.

WB: Many jobs in the US and UAE are in jepoardy if trade relations deteriorate.

SLAQ: Every $1 Billion spent does generate 10,000 jobs in US.

WB: Will military participation and relationhsip be affected.

SLAQ: No. We need each other. A relationship built over decades can't be lost over one event. This is the most commonly viisted foreign port by the US Navy.

WB: The 9/11 committee strongly condemned the UAE financial practices. {Quotes 9/11 report]. How do you respond to this criticism?

SLAQ: Money went through 96 countries, not just through the UAE.

WB: But most through UAE, according to the report.

SLAQ: The UAE is now a standard by which other countries in the Middle East can be compared for participation with US and for fighting money laundering and illegal transfers.

WB: Is the UAE funding, directly or indirectly, any terrorist organizations?

SLAQ: No. There is no cash handed over to terrroist organizations. We give money for people and projects. Any money given , e.g. to Palestine, is scrutinized by Israeli govovernment.

WB: Is UAE giving money to families of "martyrs" the way Saddam did?

SL: No. It is against the philosophy of the UAE to give money to families of suicide bombers.

WB: Welcome and thanks.

Commentary

The idea that the Dubai Ports World acquisition of US ports was a "business deal that got politicized" is one I have heard many times lately. It is an idea that is worthy of closer scrutiny and, I believe, will receive just that. I'll state for the record that I disagree with this point of view. As I have taken some pains to point out in two posts entitled The Unions, The Senators, and the Ports, Part II and The Unions, The Senators, and the Ports port security has already been a political issue. As I detailed in the first of those two posts, longshore unions have been advocating since 2002 for a greater role in port security and, as best I can tell, been rebuffed. They did not, however, give up or go away. Afterall, why would they? There is too much potentially at stake for them.

What happened in the DPW case is this: the issue of port security was again seized upon by two interest groups ones that are not fellow travellers. The first was the unions whose interest has been port security, something that would provide them with a high level of job security and hand their Democratic representatives much needed and enhanced credibility on national security.

Then there was the national and homeland security crowd, mostly from the Republican party. Their sensibilities were rubbed raw and their latent distrust of foreigners was ginned up by the Danish cartoon controversy, subsequent protests and boycott, and what they perceived as an assault on free speech. This group was already quite defensive about lagging support in the US for the war in Iraq, in particular, and the Global War on Terror, in general. And with the being an election year, no members of this party were anxious to appear overly conciliatory to Middle Eastern governments or companies owned by the same.

Added to the mix were three important institutions- public opinion, the mainstream media organizations, and the alternative media, principally blogs and talk radio. The latter of the two, I think, help to both shape and amplify public opinion, then to make the deal appear unwise, and then finally to doom it, often through distortion, half truth, hyperbole, deliberate misinformation, and pandering to baser instincts.

Far from being a "business deal" that got politicized", this was something far more signficant: it was a perfect storm of interests and issues and institutions. It was a confluence of forces man, rather than nature, that created a political firestorm rather than a hurricane or noreaster. It was storm in which the strangest of political bedfellows found common ground and security in homeland security while those at sea found, quite literally, no port safe.

Afterthought

I wonder if George Clooney will come back to Dubaiand make a film about this "Perfect Storm." Probably not. "Dubaiana" and "Emiratiana" don't really have much of a ring to them. But then again, I'd rather see him try that than Ocean's 13!


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Comments

Interesting analysis.

The best analysis I have read on the topic..

Thanks

L

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