Arab Development Denied examines how over the last three decades the Arab world has undergone a process of developmental descent, or de-development. As a result of defeat in wars, the loss of security and sovereignty, and even their own class proclivity, the Arab ruling classes have been transformed into fully compradorial classes that have relinquished autonomy over policy. The neoliberal policies adopted since the early eighties are not developmental policies, but the terms of surrender by which Arab resources, human or otherwise, are stifled or usurped. In this book, Ali Kadri attributes the Arab world’s developmental failure to imperialist hegemony over oil and the rising role of financialisation, which goes hand in hand with the wars of encroachment that strip the Arab world of its sovereignty and resources. ‘Kadri offers a new window into the Arab street. […] His class-based narrative shows how war―or the desire for power―over oil is the main culprit behind the heart-rending grief in the region.’ ―Aqdas Afzal, ‘Heterodox Economics Newsletter’ ‘ “Arab Development Denied” is an exciting and dynamic examination of how and why countries of the Arab League have been impoverished and underdeveloped.’ ―Ray Bush, University of Leeds ‘Ali Kadri has written a book that is essential reading for anyone wishing to understand the economics of the Arab world, combining a provocative political economy analysis with careful attention to detail. I strongly recommend it.’ ―John Weeks, School of Oriental and African Studies, University of London ‘Ali Kadri has written a book that is essential reading for anyone wishing to understand the economics of the Arab world, combining a provocative political economy analysis with careful attention to detail. I strongly recommend it.’ ―John Weeks, School of Oriental and African Studies, University of London Ali Kadri is a Senior Research Fellow at the National University of Singapore and has served as a Visiting Fellow at the London School of Economics (LSE) and Head of the Economic Analysis Section at the United Nations regional office for western Asia. Arab Development Denied Dynamics of Accumulation by Wars of Encroachment By Ali Kadri Wimbledon Publishing Company Copyright © 2015 Ali Kadri All rights reserved. ISBN: 978-1-78308-432-6 Contents Acknowledgements, ix, Introduction, 1, Chapter One Stocktaking and Assessment, 27, Chapter Two De-development and Conventional Policies, 49, Chapter Three Class Politics Masquerading as Democracy, 71, Chapter Four The Stillborn and Decomposing Arab State, 93, Chapter Five Wars and Oil Control, 115, Chapter Six Dislocation under Imperialist Assault, 137, Chapter Seven Arab Disintegration and the Rising Power of Imperialis, 159, Chapter Eight Commodification of Labour, 181, Chapter Nine Coming to Conclusion in Times of Socialist Ideological Retreat, 205, References, 223, Index, 245, CHAPTER 1 STOCKTAKING AND ASSESSMENT The Arab 'development' experience of the last three decades cannot be understood outside a context of de-development. The uprisings that erupted because of misery and repression — and, foremost, because of a crisis of rule by the ruling classes (Gramsci 1971)1 — notwithstanding, wars, civil wars and the continued Israeli occupation of Palestine characterise the recent history of the region. Instead of mobilising resources for development, the surplus petrodollars of the Gulf states fund the formation of divisive sectarian identities, contribute to wasteful consumption and bolster regression. While there are differences as well as commonalities in Arab development, it is somewhat scholastic to define the various discrete shades of developmental malfunction. Rather, the scope of the research here presented addresses the social relations that repeatedly generate disasters over time. In any case, all Arab countries have fallen short of real development by different degrees. Detailing the minute differences between countries would add little to our understanding of the historical dynamics behind the collapse in development common to all Arab countries; the mere accumulation of such detailed distinctions is a form of empiricism leading to theoretical nihilism. Examining the shared social relationships that shape poor development is a more useful form of analysis, because it allows us to conceptually address the underlying causes. Foremost among these social relationships are those linking Arab ruling classes to international financial capital. These variants of capital have much more in common with each other than they do with their own working classes. Among the many destructive manifestations of this relationship, generating sectarian/ethnic divisions in the working class within and across Arab states stands out insofar as the eruption of civil wars serves to destroy the material basis for the reproduction of working people. States such as Iraq, Syria, Libya, Egypt, Bahrain an