Impact of Globalization in Political and Economical State of Doha, Qatar

Impact of Globalization in Political and Economical State of Doha, Qatar

Prepare an 8 page research paper. All
details below:
Research question: How has globalization
impacted on the politics and economy of
Doha?
Thesis statement: This paper aims to examine the ways in which
globalization has impacted on the politics and economy of Doha in
Qatar.
– 8 Pages excluding the references page and cover page.

 

Solution

Introduction

The world is changing, it is now becoming a global village, where interactions and
communication between different people in different parts of the world have been made easier,
people can conveniently have physical or virtual access, to any information that they need.
Massive development in information technology as well as transport and communication
infrastructure has enabled movement of information and people all over the world, for this
reason, domestic cultures, politics and economies have been invaded by foreign way of doing
things (Akhter, 2004, p288).
Doha, Qatar has been subjected to societal, cultural, and regional integration, which has
been brought about by a series of worldwide network of political ideas, transport and
communication as well as the different terms of trade. Globalization brings with it some positive
consequences and also with challenges. For example, it improves the economy through the
expansion of investment activities, it is translating the vision of Doha as a future hub in different
sectors such as a cultural hub as facilitated by museums and cultural events, a sports hub as
indicated by a considerable number of hallmark and stage events from the Asian Games of
2006 to the successful bid to holding the World Cup 2022. A business and service center
witnessed in the massive operations of international companies, banks and high-tech oil and
energy industries. Yet, there are a number of problems that are facing Doha including economic
diversification, effective and efficient urban structure and coalescing society.this paper will seek
to address the implications of Globalization in Doha, before and after, the country’s
administration opened up to both political and economical reforms.

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 3

Impact of Globalization on Doha, Qatar Politics
Qatar is a monarchy government but under a constitution, the government is headed by Emir
Sheikh Hamad bin Khalifa al-Thani, the country has got a population of 1.7 million of whom at
least 225,000 are citizens. The Emir Exercise full executive power, which has been enshrined in
the 2005 constitution and it provides for hereditary rule by the emirs branch of the el-Thani
family. The sharia law is the primary source of laws in the country and the emir passes or rejects
laws after consultation with the appointed member of a 35 advisory cabinet and council
(Nonneman, 2001, p.143). Qatar had enacted a provisional constitution prior to her independence
in 1971, this constitution consisted of the country’s first basic law of governance, this law was
amended after the nation’s independence in a bid to reconcile it with the requirements and the
responsibilities of the modern era government structure.
The amendment created three aspects of Qatar, it defined the image of Qatar as a country,
specified the objectives of the country and emphasized the country’s affinity to the Gulf region
and Islam. Some provisions of the pre-independence constitution that was amended included the
executive authority, heredity rule system, the inclusion of laws that organized the civil and
commercial activities created the way towards the establishment of a legal state (Henry, &
Springborg, 2010). For the first time in many years, in 1995, the leader of the country introduced
a a democratic process of electing leaders, these elections led to the creation of the Central
Municipal Council which serves as a governing body in the country local government. Most
notably also, is the recognition of women’s participation in political affairs, women are now
allowed to vote and participate in the elections seeking elective seats. In 2007 central Municipal

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 4

Council elections, saw the citizens elect 29 members of the body, the election was supervised by
government appointed National Human Rights Committee and informal observers from the
diplomatic community, all of whom reported no irregularities.
Questions have been posed as to why the administration in Doha decided to take this step
of allowing elections, unlike it is the culture of many states in the gulf. Conventional
explanations allude the move to the loss of oil wealth or as giving up to the demands of the local
citizens. These two explanations have not been successful in adequately giving an explanation to
the regime’s decision, the move to allow a democratic kind of government and allow women
participation in elective posts could have been a strategic move to get the attention of the
international community. A democratic and modern world reformed state, in the Arab gulf
seemed quite unique and uncharacteristic; these reforms were instrumental in strengthening and
legitimizing the security of the Doha regime (Rathmell, & Schulze, 2000, p.54). The Doha
administration allows the United States to use the Al-Udeid airbase and its geopolitical location
and liquefied natural gas supply which most likely ensures a large measure of Western security
guarantees; clearly the regime also feels good, being appreciated by the international security.
Explanations to the current reforms in the Gulf region and specifically Doha were in response to
the fiscal crises of the 1990s, this was brought about by the stagnating oil prices and the
increased demographic growth.
The crises exerted economic pressures on the gulf region, leading to need for political
reforms, evidence shows that the combination of low oil prices and the large infrastructural
expenditures necessary to reach the oil and gas reserves was straining the Doha’s administration
finances, with the state budget estimating that the revenue was to fall by 15 percent 1n 1999 and

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 5

the government expenditure reducing by 10 percent. These changes began in the 1990s well
before the events of the September 11 and the US invasion in Iraq, the changes were due to
international pressures, whereby the leaders of Doha took it upon themselves to make decrees on
the desired changes. The emir and his supporters within the political elite wanted these reforms
and considered their benefits too important, to subject them to a referendum or a popular vote.
The ruling elite put the reforms in the referendum after legally incorporating elections and
women’s participation into the countries political life, they also invested a large amount of
resources to make sure that the referendum won (El-Said, & Harrigan, 2006, p 448).
Globalization proliferation in Doha, is evident in the realization of the country’s leadership that
they needed partnerships with the international community, they had recognized the importance
of international trade and exchange of human labor towards the country’s growth and
development.
Media freedom has evolved considerably over the years, the 1979 Press and Publication
law provided for restrictive procedures for people wanting to establish newspapers with criminal
penalties and jail sentences for slander and libel, including harm to dignity as well as for closure
and confiscation of assets belonging to the publication. However, 30 years later in the year 2007
and with the increased calls for media freedom by the international community, the emir of Qatar
established a Doha Center for Media Freedom. This center was established to provide protection
for the threatened journalists and to enhance the free flow of news and information, to and from
around the world. The DCMF, has been key in organizing symposiums whereby the participants
unanimously came into an agreement, to abolish the 1997 Press and Publication law, as it did not
reflect on the changing political and media space in the country (Seib, 2008)..Norms research
can account for the Qatari leadership’s ambitious path of political changes and the profile raising

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 6

accompanied it, norm instrumentation examines how political actors can manipulate the people’s
norms to achieve certain political goals. Doha uses the international norms regarding elections
and women’s participation in politics to bolster their international reputation, they uses these
norms in a highly publicized manner, that goes further to make them look good in the eyes of
their neighbors.

Economic Implications of Globalization in Doha, Qatar

Qatar was found to the fastest growing economy in the world as at the year 2010, ahead
of countries, Singapore and Turkmenistan, the country recorded an annual GDP growth rate of
19.40 percent, and since 2008 it had been ranked consecutively among the first three fastest
growing economies. Analysts have indicated that the country will continue to grow on a double
digit for the next few years because of the increasing oil and natural gas prices, whereby the two
commodities accounts for 50 percent of GDP and 85 percent of the country’s total exports. Prior
to the discovery and exploration of oil in the 1940, Qatars economy was mainly focused on
fishing and pearl diving, the discovery and exploration thereafter was halted during the second
world war and resumed shortly after the war was over, through international trade and exchange
of human as well as capital development, the country transformed its dormant society and
economy, into a thriving marketplace (Elfakhani, Arayssi, & Smahta, 2008, p.597).
Economic globalization is one of the most important thing to have shaped the economic
status of many countries, particulary in the sale of goods and services, in particular, the
international sale of goods and services has been rampant over the last 50 years with the
international financial flow, marking their 30 years of operation.The two major drivers to
economic globalization is ease to transportation and communication in the private business and a

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 7

reduced policy barriers on trade and investment on the side of the public sector. Technological
advancement and innovation have enabled creation of a cheaper means of transport and
communication , these technologies have helped in the movement of good and services at a
lower cost, therefore, the goods become available in the international markets .globalization has
contributed greatly to the economic growth of Doha, the economy can be described as energy
driven, whereby it is no longer a solely oil economy in the sense of being a disproportionate part
of the export income. Even with the great expansion in oil and gas sector, it is quite difficult to
refer it as a gas economy since it is highly vertically integrated along the oil and gas sector and
the economy is becoming expanded to most other sectors such as finance, education, sports,
tourism, leisure and the media (Gray, 2011). These upcoming and initiated sectors have added up
to the desire of the current regime, to make the city an internationally recognized business hub.
The city has been home to a diverse people who visit it for its numerous tourist attractions,
whereby tourism has become a fairer alternative for raising revenue in the country, the city
boasts of a coastal beach and a world class of hotels.
The country’s political stability and favorable foreign policies have endeared it to
investors, who are taking advantage of the Qatar’s favorable terms of trade and infrastructural
availability. Doha is home to many commercial banks, both local and international, because of
the stable state of the economy, it has been easier for capital markets to operate smoothly, the
country has allowed for foreign direct investments and foreign investments in the country.
Domestic and international companies are treated to healthy capital markets both locally and
from the international quotas, the promising future of the economy guarantees business funding
(Abdulla AlNaimi, et al, 2012, p.515). The commitment of the regime towards globalization has
been great in mapping the city’s economy, the country has a central allocative state, this mission

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 8

and vision has been successful because of the great input by the ruling class, they know what
they want and cannot stop at anything to see the dream come true. They understand just how
globalization will be key in fulfilling their dream, all these upcoming sectors cannot be isolated
from the gas sectors, rather they are supported by the gas sector, and others are expected to stand
by themselves as they offer services or goods to the energy sector. Doha’s traditional urban form
was prevalent until in the mid 20 th century when urban modernization began to surface, the
increased demand for modern structures has transformed the structure of the city. Multinational
corporation’s offices and residential areas have given the city a superb outlook. Real estate
business has escalated with international and local building and construction companies
engaging in massive construction projects so as to satisfy the need for housing. One thing that
the city has, however, tried to maintain is the traditional and vernacular structure of the people of
Doha; the buildings involved the participation of the locals in the architectural designs, whereby
they reflect a society that was highly dependent on its natural environment and tribal affiliations.
Unlike other cities in the Asian Gulf, Doha has accepted a diverse of cultures, with people from
various religious groups being given freedom of worship and expression, there is no
discrimination based on race, ethnicity or gender. This has made the city favorable for settlement
by people from diverse cultures all over the world, it can be said to be a more modern and
globalized as compared to its neighbors.

Conclusion

Globalization have had a great impact on the politics and the economy of Doha, Qatar, the
realization of the importance of free movements and interactions of different cultures have seen
Qatar open its borders and institutions to globalization. The country began by reforming its

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 9

government institutions to reach the international recognized standards, these reforms were
aimed at providing a favorable environment for globalization, first was to allow for some kind of
democratic government and inclusion of women in political activities. This was aimed at
highlighting Doha, Qatar as a democratic state favorable for business; this also made the country
win favor in the eyes of the international community. Economical growth and development is
dependent on trade, what a country produces and how it sells it, Doha is majorly an oil and gas
economy, with the products accounting for 50% of their exports and 80% of their GDP. Doha,
Qatar opened its economy to international trade, and allowing foreign investments as well as
foreign direct investments, the country is also favored by the international money organizations
such as the Bretton Woods, and this is because of Doha’s commitment to reform the financial
markets in line with the international required standards. The economy has further been boosted
by expansion of other sectors the most notable being the tourism sector, the modernization of the
city and the numerous tourists attractions have endeared the city from foreign countries all over
the world, this has served as an alternative source of revenue for the city.

POLITICAL AND ECONOMICAL IMPACT OF GLOBALIZATION IN DOHA, QATA 10

References

Abdulla AlNaimi, H., Hossain, M., & Ahmed Momin, M. (2012). Corporate social responsibility
reporting in Qatar: a descriptive analysis. Social Responsibility Journal, 8(4), 511-526.
Akhter, S. H. (2004). Is globalization what it’s cracked up to be? Economic freedom, corruption,
and human development. Journal of World Business, 39(3), 283-295.
Elfakhani, S., Arayssi, M., & Smahta, H. A. (2008). Globalization and investment opportunities:
a cointegration study of Arab, US, and emerging stock markets. Financial Review, 43(4),
591-611.
El-Said, H., & Harrigan, J. (2006). Globalization, international finance, and political Islam in the
Arab world. The Middle East Journal, 444-466.
Gray, M. (2011). A Theory of" late Rentierism" in the Arab States of the Gulf.
Henry, C. M., & Springborg, R. (2010). Globalization and the Politics of Development in the
Middle East (Vol. 1). Cambridge University Press.
Nonneman, G. (2001). Rentiers and Autocrats, Monarchs and Democrats, State and Society: The
Middle East between Globalization, Human" Agency", and Europe. International Affairs
(Royal Institute of International Affairs 1944-), 141-162.
Rathmell, A., & Schulze, K. (2000). Political reform in the Gulf: The case of Qatar. Middle
Eastern Studies, 36(4), 47-62.
Seib, P. (2008). The Al Jazeera effect: How the new global media are reshaping world politics.
Potomac Books, Inc.

 

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