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This book is a study of a shift in the politics and finance of development from one centered in the institutions and ideas of the post-World War II global political economy to the emergence of South-South economic ties and the rise of authoritarian or state capitalism as an alternative model of development. This is a study of the economic statecraft of the Gulf Arab states, specifically the deployment of aid, investment, and direct support from some of the wealthiest petrostates of the world to their surrounding sphere of influence within the Middle East, Horn of Africa, and West Asia. These new models of development finance, aid, and intervention include distinct institutional designs and ideological bases. For the United Arab Emirates, Saudi Arabia, and Qatar, the preference for state-led and often state-owned development is a strategic priority in the energy sector, a mechanism for domestic economic growth and consolidation of wealth among leadership and ruling families. Exporting that agenda as a foreign economic policy tool continues all of the domestic benefits, while also affirming broader regional political goals.
The Gulf States and the Horn of Africa takes a deep dive into the complexities of power projection, political rivalry and conflict across the Red Sea and beyond. Focusing on the nature of interregional connections between the Gulf and the Horn, it explores the multifaceted nature of relations between states and the two increasingly important subregions. Bringing together scholars working on and in both regions, the book considers strategic competition between Saudi Arabia and Iran, and between the UAE and both Qatar and Turkey, along with other international engagement such as joint anti-piracy operations, counterterrorism cooperation, security assistance, base agreements and economic development. Drawing on a range of subject expertise and field research across case study countries, the volume adds to the sparse literature on the regional and international politics of the Horn of Africa and Red Sea, gleaning specific insights from contemporary reflections across the book. This is essential reading for students and researchers interested in the Horn of Africa and the evolving regional geopolitics of the Gulf.
A Foreign Affairs Best Book of 2016 Today, nations increasingly carry out geopolitical combat through economic means. Policies governing everything from trade and investment to energy and exchange rates are wielded as tools to win diplomatic allies, punish adversaries, and coerce those in between. Not so in the United States, however. America still too often reaches for the gun over the purse to advance its interests abroad. The result is a playing field sharply tilting against the United States. “Geoeconomics, the use of economic instruments to advance foreign policy goals, has long been a staple of great-power politics. In this impressive policy manifesto, Blackwill and Harris argue that in recent decades, the United States has tended to neglect this form of statecraft, while China, Russia, and other illiberal states have increasingly employed it to Washington’s disadvantage.” —G. John Ikenberry, Foreign Affairs “A readable and lucid primer...The book defines the extensive topic and opens readers’ eyes to its prevalence throughout history...[Presidential] candidates who care more about protecting American interests would be wise to heed the advice of War by Other Means and take our geoeconomic toolkit more seriously. —Jordan Schneider, Weekly Standard
Muhammad bin Salman Al-Saud and Muhammad bin Zayed Al-Nahyan, the respective princely strongmen of Saudi Arabia and the UAE, have torn up the old rules. They have spurred game-changing economic master plans, presided over vast anti-corruption crackdowns, tackled entrenched religious forces, and overseen the mass arrest of critics. In parallel, they also appear to have replaced the old 'sheikhly' consensus systems of their predecessors with something more autocratic, more personalistic, and perhaps even analytically distinct. These are the two wealthiest and most populous Gulf monarchies, and increasingly important global powers--Saudi Arabia is a G20 member, and the UAE will be the host of the World Expo in 2021-2022. Such sweeping changes to their statecraft and authority structures could well end up having a direct impact, for better or worse, on policies, economies and individual lives all around the world. Christopher M. Davidson tests the hypothesis that Saudi Arabia and the UAE are now effectively contemporary or even 'advanced' sultanates, and situates these influential states within an international model of autocratic authoritarianism. Drawing on a range of primary sources, including new interviews and surveys, From Sheikhs to Sultanism puts forward an original, empirically grounded interpretation of the rise of both MBS and MBZ.
This is the first book-length empirical study of free zones (FZs) in Gulf Cooperation Council (GCC) countries. The volume systematically illustrates the development processes behind FZs in Gulf Arab states and assesses the impact of these commercial entities on regional integration, global trade and investment trends, and the Gulf’s foreign relations. In the process, the work maps how economic strategies involving FZs evolve alongside varying levels of resource availability and state capacity on a local level while also revealing how development paths in Gulf Arab states are linked to regional and global accumulation circuits. FZ development is an under-examined topic in the wider literature on the Gulf. The empirical findings and theoretical implications of the work therefore offer an original contribution to prevailing political economy discussions concerning the Gulf region.
Introduction -- Techniques of statecraft -- What is economic statecraft? -- Thinking about economic statecraft -- Economic statecraft in international thought -- Bargaining with economic statecraft -- National power and economic statecraft -- "Classic cases" reconsidered -- Foreign trade -- Foreign aid -- The legality and morality of economic statecraft -- Conclusion -- Afterword : economic statecraft : continuity and change / Ethan B. Kapstein.
This monograph reviews the efficacy of economic statecraft vis- -vis North Korea, with a particular focus on the use of sanctions and inducements on the part of the United States in seeking to achieve nonproliferation and wider foreign policy objectives. Two structural constraints operate: North Korea's particularly repressive state, with a narrowing governing coalition; and the country's changing economic relations. As an empirical matter, there is little evidence that sanctions had effect, or did so only in conjunction with inducements. However, inducements did not yield significant results either, in part because of severe credibility and sequencing problems in the negotiations.
The end of the Cold War ushered in an age of American triumphalism best characterized by the "Washington Consensus:" the idea that free markets, democratic institutions, limitations on government involvement in the economy, and the rule of law were the foundations of prosperity and stability. The last fifteen years, starting with the Asian financial crisis, have seen the gradual erosion of that consensus. Many commentators have pointed to the emergence of a powerful new rival model: state capitalism. In state capitalist regimes, the government typically owns firms in strategic industries. Not beholden to private-sector shareholders, such firms are allowed to operate with razor-thin margins if the state deems them strategically important. China, soon to be the world's largest economy, is the best known state capitalist regime, but it is hardly the only one. In State Capitalism, Joshua Kurlantzick ranges across the world--China, Thailand, Brazil, Russia, South Africa, Turkey, and more--and argues that the increase in state capitalism across the globe has, on balance, contributed to a decline in democracy. He isolates some of the reasons for state capitalism's resurgence: the fact that globalization favors economies of scale in the most critical industries, and the widespread rejection of the Washington Consensus in the face of the problems that have plagued the world economy in recent years. That said, a number of democratic nations have embraced state capitalism, and in those regimes, state-backed firms like Brazil's Embraer have enjoyed considerable success. Kurlantzick highlights the mixed record and the evolving nature of the model, yet he is more concerned about the negative effects of state capitalism. When states control firms, whether in democratic or authoritarian regimes, the government increases its advantage over the rest of society. The combination of new technologies, the perceived failures of liberal economics and democracy in many developing nations, the rise of modern kinds of authoritarians, and the success of some of the best-known state capitalists have created an era ripe for state intervention. State Capitalism offers the sharpest analysis yet of what state capitalism's emergence means for democratic politics around the world.
This book is a study of a shift in the politics and finance of development from one centered in the institutions and ideas of the post-World War II global political economy to the emergence of South-South economic ties and the rise of authoritarian or state capitalism as an alternative model of development. This is a study of the economic statecraft of the Gulf Arab states, specifically the deployment of aid, investment, and direct support from some of the wealthiest petrostates of the world to their surrounding sphere of influence within the Middle East, Horn of Africa, and West Asia. These new models of development finance, aid, and intervention include distinct institutional designs and ideological bases. For the United Arab Emirates, Saudi Arabia, and Qatar, the preference for state-led and often state-owned development is a strategic priority in the energy sector, a mechanism for domestic economic growth and consolidation of wealth among leadership and ruling families. Exporting that agenda as a foreign economic policy tool continues all of the domestic benefits, while also affirming broader regional political goals.