Essay
Culture
Middle East
Politics
7 min read

Democracy and the authorities that exist

Should we insist on democracy in the Gulf?

Andrew Thompson MBE is an Anglican priest who served in Kuwait and the United Arab Emirates.

Three members of the Oman Shura sit in it's chamber and hold their hands in prayer
Members of Oman's assembly - the Shura.

I once participated in an American University forum looking at Gulf states and the development of democracy. Underlying the barely disguised criticism of political processes in the Arab world were three assumptions. Firstly, that there was an assumption that everyone understood which model of democracy was being referred to. Secondly, that this model should be a desirable universal goal for all nations to aspire to. Finally, that democracy works and is ‘good’. 

The first assumption is quickly undermined when one does a brief survey of democratic processes in European countries. There are no two countries which have a similar modus operandi when it comes to conducting elections. Which democratic model should one aspire to? 

On the second assumption, I was reminded that the very concept of democracy as touted by Plato was already flawed. In Ancient Greece, the public decision-making process excluded women, peasants and slaves. The elite Athenian men who got to occupy the space of power on Pnyx Hill, were already wealthy and privileged. 

Similarly, the US constitution, with its line “All men are born free and equal, and have certain natural, essential, and unalienable rights” did not include women and slaves, thus undermining the slogan  ‘a government of the people by the people’. 

It would seem that even today in the west, the democratic process still favours the elite and excludes certain categories of people. 

Their emphasis is on values-driven leadership; these values predate Islam and were forged in the harsh climate of the desert. 

So how do we define democracy?  

While academics cannot agree on one definition, there is a recognition that most democracies have one main feature: that they include a transparent, accessible and inclusive process by which citizens can appoint their governments.  

Free and inclusive elections are not a feature of Gulf states.  The authorities in Gulf countries are often criticized for their suppression of their political opponents and flagrant abuse of human rights. While several Gulf countries do hold elections, they tend to be limited in terms of who can participate, and once elected their roles in office tend to be more advisory rather than that of a decision maker. 

So how do governments in the Arabian Gulf work? 

Each Gulf state is led by a ruling family who secure their position within a rentier state economy, by sharing their largesse from the oil industry with their citizens. Failure to be generous with their tribal allies would lead the ruling family into a potential conflict. A future challenge is what happens when the oil runs out. How will ruling families secure the loyalty of their citizens? 

In the United Arab Emirates (a federation of seven semi-autonomous regions headed up by a ruling sheikh), I have learned their style of governance is rooted in centuries of tribal wisdom. Their emphasis is on values-driven leadership; these values predate Islam and were forged in the harsh climate of the desert.

Bad leaders generally don’t last long in tribal societies. 

The quintessential Arab leader should serve their people with humility, wisdom, integrity, courage and generosity; these personal leadership qualities have underpinned Arab tribal culture for millennia. The eminent historian and pioneer sociologist, Ibn Khaldun (1332-1406) describes in his seminal work The Muqaddimah, observes the importance of ‘assabiya (public consensus or group cohesion) as the glue that holds successful societies together.  He went onto describe how Arab societies achieved consensus. The most common form was the council of elders or a shura, in which the representatives of the tribes came to a common decision.  It was a shura which appointed the first Caliph after the death of prophet Mohammed. This concept exists to this day in modern Oman, whose government describes their version of parliament as a shura. It is a matter of debate as to how representative of the people the shura is, but the point is that in Islam there is a process which exists which seeks to reach consensus or ‘assabiya. It is worth noting that the concept of ‘assabiya is reflected in Rousseau’s political philosophy of working towards the common good and will of the many. For the record, Rousseau was not a believer in democracy. 

It is ‘assabiya which leads to tribes offering their allegiance to a ruling sheikh, once they are persuaded of the legitimacy of his ‘fitness’ to lead.  Although Gulf dynasties have been established for several generations, it is not automatically a model of primogeniture. For example, the position of the Emir of Kuwait is supposed to be shared between two alternate branches of the Al Sabah family. On the other hand, the de facto ruler of the Emirates was the first son of the third wife on account of his political acumen and clear leadership skills.  

Upon the death of a ruler, the family will seek to identify an elder within the family who displays the merits and qualities desired in a leader. These qualities are essential in holding the allegiance of most of the tribes. An incompetent, selfish or vicious ruler will swiftly disrupt the ‘assabiya and lose the allegiance of the tribes. There is a system of sorts, of checks and balances to ensure for the most part a benign ruler who will hold the best interests of their people to heart. 

And it works well, as attested by the common man on the street. in the UAE there seems to be a genuine respect, even affection for many of the ruling families. 

The Gulf States would be the first to say that they are not democracies, but their histories have demonstrated that overall, their countries have flourished, and political stability has been consistent.  Bad leaders generally don’t last long in tribal societies. 

Yet, there is still a conviction held by western governments that life in the Gulf states would improve if they adopted democracy as a way of life. While this sentiment may appear to be admirable, in reality, when democracy has been hoisted on Arab states it has not ended well. 

Western politicians simply do not understand the context in which hostile, militant and organized Islamists lurk. 

Kuwait was the first Gulf state to adopt a semblance of democracy and their media are among the most independent in the region.  Yet the country’s commitment to move towards democracy, as an attempt to integrate with the global economy, has backfired. The Kuwaiti democratic processes have enabled a highly organized and elected Islamist group which has consistently paralyzed the Kuwaiti parliament and thwarted their pro-western policy ambitions. 

It is ironic too, that where Middle Eastern countries have embraced democratic processes, the elections have been won or successfully contested by political parties who would be seen as threats to the Western world.  Hamas in Palestine, the Muslim Brotherhood in Egypt, the Hirak Islamist group in Algeria and the AKP in Turkey.  All these supposedly democratically elected parties have faced opposition and concern from Western nations. In some cases, western powers have actively conspired to bring down elected governments in order to defend their interests. Iran is a case in point. 

It would seem that democracy in the Middle East is only acceptable in the west if the ‘right’ people win it. 

The democratic experiment in Iraq came with a high cost in terms of loss of lives, and the jury is still out on whether the Iraqi parliament can deliver a national agenda in which security and prosperity can be enjoyed by all their citizens. 

It is for this reason that a senior Emirati leader recently explained at a press gathering, that the pressure to adopt democracy as a model of government in the Middle East is unreasonable. Western politicians simply do not understand the context in which hostile, militant and organized Islamists lurk. 

“Why would anyone want to buy into a system that would inflict a country with the likes of the leaders you have now?” 

That said, things are changing. The UAE sponsored Marrakesh Declaration which seeks equal citizenship in Muslim majority countries for religious minorities is clearly a step in the right direction for ensuring protection for all. 

Should we then insist on democracy in the Arabian Gulf?  

For thousands of years, the Arabs have had their own mechanisms of selecting leaders. They do not see the need to adopt western democratic procedures which are potentially likely to disrupt the economic prosperity and security of their citizens. 

St Paul once wrote the following words in the context of an oppressive Roman Empire, ‘the authorities that exist have been established by God’. While Christians cheerfully apply this teaching to support their democratically elected leaders, it is worth asking, ‘should this not apply to the leaders of the Gulf states too’? 

Meanwhile, back in the American University, a bewildered Emirati student whispered to me during a particularly strident presentation on the virtues of democracy, “Why would anyone want to buy into a system that would inflict a country with the likes of the leaders you have now?” 

His words gave me pause for thought and led me to question what we assume to be a self-evident truth, that democracy should be the aspiration of all countries.  Should we insist that Gulf states adopt democracy as their mode of governance? Would democracy work in the Arabian Gulf economy and culture? 

Article
Culture
Economics
Ethics
1 min read

The rights and wrongs of making money with meme coins

When does investing become speculating, or even addictive gambling?
A montage shows Trump with a raised fist against other images of him and the phrase 'fight fight fight'.
$Trump coin marketing image.
gettrumpmemes.com,

Donald Trump’s “liberation day” tariffs may have driven sharp swings in global financial markets, but his actions in markets a few months earlier were in some ways even more peculiar.

On the Friday before his inauguration as the 47th US President in January, the Republican surprised many with the launch of the $TRUMP memecoin, described by its website as “the only official Trump meme”. The cryptocurrency token, in which Trump’s family business owned a stake, initially soared in value to more than $14bn over that following weekend. 

Then, on the Sunday, Trump’s wife Melania launched her own memecoin, $MELANIA, which reached a value of $8.5bn. Even the pastor who spoke at the president’s inauguration subsequently launched his own memecoin. 

For those wondering what exactly a memecoin is, you are not alone. In short, they are a form of cryptocurrency - an asset class that itself has attracted plenty of questions about its substance and purpose - representing online viral moments. They have no fundamental value or business model and, according to the US securities regulator, “typically have limited or no use or functionality”. 

Donald and Melania Trump’s coins subsequently plunged in price, but still have a value of around $2.5bn and $214mn respectively, according to website CoinMarketCap. 

There are plenty of others in existence. PEPE, based on a comic frog, has a value of around $3.6bn; BONK, a cartoon dog, has a market cap of $1.5bn; and PNUT, a reference to a squirrel euthanised by authorities in New York and about which Trump was allegedly “fired up” (although doubt has since been cast on the president’s involvement in the matter), is still valued at around $174mn, despite having fallen sharply in price.  

Dogecoin, seen as the world’s first memecoin and originally created as a joke, boasts a market value of around $25bn. (There are other memecoins which may not be suitable for these pages). 

Some people’s willingness to buy an “asset” with no use or fundamental value may seem strange to more traditional investors. But it can be viewed as just one manifestation of the speculative investor behaviour evident since the onset of the coronavirus pandemic and, indeed, at times throughout history. 

The price of Bitcoin recently rose above $100,000, despite many investors still viewing it as having little or no value (in 2023 the UK’s Treasury select committee described cryptocurrencies as having “no intrinsic value, huge price volatility and no discernible social good”). In early 2021, shares in GameStop - a loss-making US video games retailer that some hedge funds were betting against - rocketed as much as 2,400 per cent, as retail investors piled in, many with the aim of inflicting pain on the hedge fund short sellers (in that respect at least, a highly successful strategy that became the subject of the film Dumb Money). The huge rise in AI and other tech stocks in recent years - until the recent tariff-driven volatility - has also been described as a bubble by some commentators. 

Whether or not such episodes can be compared to infamous bouts of speculative mania in history depends on your point of view (and often can only be judged with the benefit of hindsight) - be it the 17th century Dutch tulip bulb mania, shares in the South Sea Company in the 18th century or the dotcom boom and bust of the late 1990s and early 2000s. 

But it does give rise to the question of when investment should start to be described as speculation or even as gambling? And what are the rights and wrongs of any of those activities? 

There can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources... 

Gambling can be thought of as risking a stake on, for instance, the result of a game of chance or sport in the hope of a bigger payout. While often the result is purely down to chance, in some cases a strategy or an element of research (for instance of a horse or football team’s form) can be used. Investment, in contrast, tends to involve purported economic utility and assets believed to have some sort of underlying value, and holds the hope of future profit (although there are also plenty of bad investments or those that have gone to zero). While an investor must be prepared to lose their entire stake, in some cases such an event is relatively unlikely (for instance, if they buy a fund tracking the performance of a major stock exchange). Speculation is harder to define, but is generally seen as shorter term than investment, with more chance of a bigger gain or loss, and dependent on price fluctuations. Rightly or wrongly, the term has a more negative connotation than investment. 

One writer who explored the ethics of these activities was Oswald von Nell-Breuning, a Jesuit theologian and economist who served as an adviser to the Pope and who was banned from publishing under the Nazis. 

While he found that “one general definition cannot capture all the nuances” of speculation, he identified two different types of speculative activity - one that was purely trying to make a profit from financial market trading, and one based on trying to create a viable business. (See this article in the Catholic Social Science Review for a fuller explanation of Nell-Breuning’s views on speculation). 

As the CSSR article shows, Nell-Breuning found that there can be positive effects from speculation - one might think of better liquidity and price discovery in a market, while, in commodity futures markets, speculators allow producers to hedge risk

But he also argued that there can be negative effects, for instance if the actions of speculators force businesses in the real economy to change their plans or divert time and resources away from production. 

And whereas gambling typically takes place within a circle of players who have chosen to take part, speculation, he wrote, can affect a greater portion of society - for instance, if it affects the price of shares or bonds they hold. 

The Bible - on which Nell-Breuning’s faith and analysis was based - does not take a prescriptive approach to such activities. But it does provide some interesting guidance.  

An entrepreneurial approach to business and investment is applauded, for instance when the writer of the book of Proverbs (traditionally believed to be King Solomon) praises the virtues of “an excellent wife”. These include investing in a field and using her earnings from business to plant a vineyard, and feeding her family from her gains. 

Jesus tells a story of a master who, before going on a journey, gives his property to his servants, each according to their ability. To one he gives five “talents” (a large unit of money), to a second two and to a third servant he gives one. 

The first servant trades with his talents and makes five more talents - a 100 per cent profit - and is applauded by the master on his return. The second servant also trades and similarly makes two more talents and is again applauded. 

But the third servant, being afraid and believing the master to be “a hard man”, hides the money in a hole in the ground. He is condemned as “wicked and slothful”, and told that he should at least have put the money in the bank. 

While Jesus’s story may primarily be about how we view God’s nature, how we use our God-given abilities and whether or not we can take risks in faith for Him, it is also hard not to see investment and indeed wise speculation as being virtuous activities here. Putting the money into a bank account is, in this story anyway, more of a fallback option. 

But the Bible also warns us against putting money above all else in our lives. The love of money is, famously, a root of all sorts of evil, while we are also told to be content with what we have, and that “wealth gained hastily will dwindle”. 

Nell-Breuning similarly warns that a “get-rich-quick” mindset, when this is placed above all else, can be harmful, and advises caution in situations where the lure of big profits can lead the speculator into market manipulation or fraud. 

After all, both gambling and crypto trading have the potential to become dangerous and damaging addictions needing treatment

Ultimately, Nell-Breuning struggled to come to a simple conclusion on the question of whether speculation, in and of itself, is morally wrong. It is, he wrote, a judgment call for those involved. 

When making such decisions ourselves, his - and the Bible’s - warnings may be worth bearing in mind.