Forces of Fortune by Vali Nasr - Book Report/Review Example

Forces of Fortune by Vali Nasr Vali Nasr’s “Forces of Fortune” theme revolves around the power of commerce and claims that economy and business class has the power to transform majority of Muslim world rather than military force, politics or even religious fundamentalism. Nasr highlights the example of Middle East and observes that it is not war and continuous chaos but economics determines the “pecking order”. Much highlighted, Islamic fundamentalism has not overturn government since 1980; however, it remained disputed in Algeria in 1990 and posed threats to Pakistan and Afghanistan (pp.5-10). Nasr stresses that it is not any kind of commerce that can influence Muslim majority but the business with small ‘b’ and businessman from the provincial and lower social classes and groups (pp.11, 22).According to Nasr, these emerging businessmen are religiously conservative and personal piousness is important for them. They represent the budding moderation and global engagement in Muslim regions. I strongly agree with Nasr when he acknowledges the presence of extremist forces in the regions likes Pakistan, Afghanistan and Palestine and stresses that these forces have zero attraction for business-oriented Muslim minds as what they want is business while practicing Islamic values (p.146). Nasr argues that even if commerce could not strengthen secularism, it triggers moderation and let the emerging business class stand for themselves (pp.168-254).Nasr gives examples of Turkey and Iran in Kemalist and Pahlavi regimes and observes that secularism usually did not work in Middle East because of vicious impact of a rigid and authoritarian imposition of allegedly western form of modernity (p.85).According to Eickelman(n.d.) Kemalist emphasized on state-oriented industrialism while Shah introduced industrial projects. Despite small businessmen’s contribution, these state-led projects and reforms failed due to the fact that they were top-down conversion. In Iran, Nasr was a teenage witness of government losing the allegiance of secular middle class by 1970s. Nasr favors economic transformation starting from lower end. He observes Kayseri center of textile and furniture in Turkey that has flourished since 1980s Turkish economic liberalization. Businessmen there follow “strict piety with raging entrepreneurship” (p.247).According to Eickelman (n.d.) in primary examples of Iran and Turkey, Nasr’s firm argument is similar with the observations of his predecessors. For instance, in Being Modern in Iran (2002) Fariba Adelkhah argues that rising level of education and generation with no experience of previous revolution brought the second revolution of 1990s in Iran. In a similar way, Nasr argues that traders and businessmen in addition to those who are involved in informal economy or black market define and project Iranian influence beyond border rather than religious powers. For Taliban threat in Afghanistan, Vali Nasr states, “this rag-tag army of religious zealots and tribal warriors amounted to no more than an incomplete insurgency in a broken corner of the Muslim world-an antique badland even before decades of war ravaged it” (p.10).According to Eickelman (n.d.) Nasr is underestimating religious zealots, drug lords, and tribal leaders of Afghanistan who are well-aware and adaptive of modern world and exploitive when it comes to the shortcomings of foreign military and Kabul government. They have formidable ability to learn from their opponent. For instance, al-Qaeda is a crucial factor even if it does not meet the criterion of “rising middle class”. To some extent, I agree with Eickelman, but Nasr’s perspective is not that weak. Nasr’s main argument is to consider the economic development, particularly expanding and emerging middle class and then consider clash of civilization (p.27).He argues that increasing pressure from this developing business-minded middle class is reshaping rule of law and moving towards moderation. In first chapter, Nasr establishes the idea that the factors that support business are also good for Islam. In Muslim world religious reformers are not the driving force rather they are merchants and traders who shaped Muslim majority world. Just like commerce transformed Europe, China, Singapore and most recently India. Second chapter discuss Dubai as an undocumented way to Iranian commerce and smuggling. He states, “The strong web of social and economic ties that binds Dubai to Iran…holds out great promise for loosening the Islamic regime’s grip on the economy” (p.49).According to Nasr(2009,p.49): “Dubai is where the Iranian private sector “breathes and prospers” and where America can engage the “all-important” Iranian part of “the emerging Muslim middle class,” presumably notwithstanding the increasing control that Iran’s Revolutionary Guards have exerted on the “invincible piers” of the Emirates, especially since 2005.( as cited in Eickelman, n.d.) In south Lebanon, most of the scholars considers that Hizbullah is dominating Nasr highlights the region’s ability to produce entrepreneurs on a large scale who can not only generate wealth but also help in sustaining local middle class. Nasr assures that if history can guide us, peace, progress democracy and stability will better serve us if commerce is strong and flourishing. Without vigorous commerce, Iran’s influence will no longer be standing on its own (pp.54-56). When it comes to Iraq, Nasr views Iranian government association with Iraqi leaders and “trigger pullers” are fragile only trade has promising future (p.53). Nasr highlights the activity and response level of middle class, for instance during 1992 earthquake in Egypt, Cairo, it was the Muslim Brotherhood who responded and assisted people before public bureaucracy. Situation was similar in Istanbul and Kashmir earthquakes in 1999 and 2005 respectively. Governments may disappoint their people but business class, shopkeepers, craftsmen, traders and civil servants are not interested in extremism, they respect and follow a moderate Islam (pp.172-173). According to Eickelman (n.d.) Nasr’s book is based on America-centric policy recommendations. For style it comes between scholarly monograph and op-ed. Nasr identifies and observes Muslim majority world and the promise of rising middle class. The book presents some facts wrongly. Iran’s Ali Khomeini could not announce Taliban’s destruction of Buddha statues as an embarrassment to Islam in 1997 (p.149) because it actually happened in March 2001. In the last chapter, Nasr criticizes United States for doing opposite to its support for democracy in the region. Nasr argues that U.S. practically intervene democratic practice and forget the fact that economic evolution brings the fundamental changes. He also stresses that U.S. should work on the powers of business to transform the region rather than insisting reforms of Islam (pp.254-257). Nasr draws attention towards half of the region’s young population that is under twenty-five years of age. Nasr observes that they are different from their elders. In addition to economic forces prevailing change, higher education on massive level has also contributed to the change in the region. Uneven in quality but higher education opportunities emerge as a consequence of economic stability. In my view these are the two sides of the same coin. Economic stability certainly helps middle class grow and think beyond traditional limitations. However, in my view there are other forces involved, for instance, media, awareness, networking and globalization. The road to serfdom Friedrich August Hayek devoted his life and career to keep classical liberalist ideas alive. During World War II, in 1944, Hayek published his book The Road to Serfdom. The book as Champion (1985) aptly attributes it to be a tract against times. In the book, Hayek warns about the likely consequences of central planning in case we expand and merge wartime practice in the post-war period. In the mean time, state intervention was continuously practiced under both Labor and Conservative governments that was bringing inflation and unemployment that was dexterously blamed on the inefficiency of inadequately controlled capitalism. The road to serfdom is a timeless classic. Hayek explores the roots of classical liberalism and socialism. Orientated in Italy, Liberalism spread throughout Europe particularly United Kingdom. The ideas like freedom of speech and separation of powers are the products of this great enlightenment period. These ideas had great influence on American founders and therefore had an impact on constitution. One of the major consequences of the impact emerged as unparalleled rise in the standard of living, though, it was not even in its distribution but it made poor far better than they were before. Poverty was considered pointless as if profit distribution is monitored, nobody would need to starve. With gradual changes, classical liberal ideas were linked with selfishness. Germany spread its intellectual ideas across the world with Karl Marx. Socialism was the dominating ideology in Germany before UK. Originated in France, socialism was a reaction to French Revolution. Classical liberalism, however, proved to be more popular than Saint Simon’s brand of socialism. Socialist ideas somehow developed in Germany and socialist movement incorporated classical liberal’s language, for instance freedom and their explanation that political freedom is not adequate without economic freedom. After this, society saw dramatic changes towards socialism (Lodge, 2010). In the next chapter, Hayek discusses collectivism and individualism. Most of the controversies regarding this book initiated from this chapter. Hayek defines collectivism as central planning to production resources by government body. It is not linked with end goal, whether it is to achieve a pure nation or equal society, it just a means to end. Hayek criticizes all collectivisms including socialism as a branch. If we consider Sweden’s socialism, it is not in accordance with Hayek’s definition as Swedish government does not own production means. In this way they are more capitalist as they implement high tax which makes them social democracy. On the other hand, there is individualism in which private competition works within the legal framework. There is a middle stage when private sector merges with state in order to create corporatism. Western world is currently experiencing the same stage and its adverse affects can only be removed by reducing the power of state (Lodge, 2010). A debate between collectivism and individualism often concludes that collectivism is better due to the inevitability of monopoly in private sector. No doubt, a monopoly can exist in free market but government participation increase the chances of its existence. For instance, according to Lodge (2010), protectionist tariffs increases the cost of raw materials. It implies that small business is artificially priced out of the market. As well as monopoly is used to rationalize collectivism, there is a strong propensity for professionals and experts to support central planning. Hayek explains that this is because as experts they know the ways to perfect their particular field with the contribution of the planning and resources. The fallacy of this situation becomes more evident when we consider that the specialists’ ideas may literally disagree with each other. In situation of conflict between planners, parliament becomes conundrum of disagreement because particular interest groups confront each other for using central planning for their ends. Hayek argues that Institution of democracy becomes incompatible with collectivism and parliament proves to be a barrier for planning. Most socialist are inherently democratic, therefore, democratic institution staggers and becomes weak but does not collapse. Hayek highlights the contradiction between collectivism and rule of law. Rule of law is supposed to be universal and as general principle it is applicable to everyone in society. Everyone is made aware with the law in order to enable them to act accordingly. Nature of law is entirely objective irrespective to the judgment of ends. However, a planner is associated with ends and its means; they have to be capable of providing in case of need. Therefore, general and fixed laws become obsolete for planner. They start to evaluate individuals subjectively on the basis of merit that give rise to injustice and corruption. At the same time, planners convince people that only their economic life is going to be planned but with economic control state control every aspect including consumption and even job allocation. Job allocation is planned because individual may make choices that are incompatible with government planning (Lodge, 2010). Hayek also discusses the socialist perception of wealth distribution. They do not want equal distribution of wealth in society. Random distinction that groups earn much be maintained and rival group is most likely to be in relatively bad condition. Inequality in planned social structure is more personal than free social set up and it creates increasing feeling of anger for planner. In such society where special interest groups compete, they all agree that collectivism is suitable for an end but disagreeing for what the end is. Consequently, one group dominates. Hayek rightly attributes such group as unpleasant for several reasons (Lodge, 2010). Hayek also condemns conservative party for their opposition towards classical liberalism. However, it had always been the same. Progressive movement maintained classically liberal values but discards their principles, criticizing the country to meddling big government. Finally, Hayek more philosophically concludes that free choice gives rise to morality. One cannot be selfless by compulsion or at someone else’s expense. In Hayek views and I agree that collectivism has demoralized society and made us insensitive to the individual’s perspective. Under collectivism, traditional British beliefs of tolerance, healthy criticism and freedom are lost. It is the high time for Britain to embrace old liberal values that differentiate them from Nazism and communism (Lodge, 2010).According to Champion (1985) Hayek warns us that increased government participation in market would suffocate and suppress economic growth that is vital to alleviate poverty and raise the quality of life. The whole scenario, Hayek anticipates due to inevitable reasons will cause the downfall of democratic practice. Therefore, socialist intention of humanitarian causes would not take stand in the sphere of influence provided by material welfare and freedom and justice. . Islam and Mammon Timur Kuran’s basic argument revolves around the perception that “Islamic Economics” has no logical grounds and it is largely inconsistent when it comes to implementation. Islamic economic system also failed to reduce poverty and inequality in society. Kuran argues that this system is not capable of raising production, standards of life and innovation. Kuran’s argument revolves around the “genesis” of modern Islamic economics. He highlights the inconsistencies of system that are present in the practice of profit sharing, abandoning interest and system of wealth distribution through state administration in the form of Zakat. Kuran argues the failure of Islamic economic system but argues that it can create a “sub- economy” on the basis of Islamic culture and identity. He considers it an unhealthy trend that should be counteracted (Calvin, 2005). In this regard, Kuran is quite straightforward when it comes to his bias as he stresses that organizing principles of an economy must be based on individual liberty and limited government participation (p.56). Kuran observes that in twentieth century, Islamic economics was flourished. First Islamic bank inaugurated in Dubai in 1975 and there are Islamic banks in more than sixty countries of the world (2004, p.9).He further explains, in addition to increasing number of Islamic banks, in the end of century many research centers and journals for research about Islamic economics were established (2004, p.1).Kuran criticizes Muslim world an attributes the dominance of Islamic economics as their effort to preserve Muslim identity and culture rather than Muslim vision to restructure modern economics. A very important proponent of Islamic economics, Sayyid Abul-Ala-Mawdudi proposed Islamic totalism, this proposal is not in response to economic decline but in order to strengthen Muslim identity in colonial India (pp.82-101).Therefore, Kuran states, “The economics of ‘Islamic economics’ was merely incidental to its Islamic character”(p.82). Undefined theoretical foundations of Islamic economics contribute to the undefended arguments. Islamic economics is largely practiced against Islamic principles rather based on deception. For instance, for representing a true ban on interest, Islamic banks often adopt practices such as murabaha. It means that the bank assumes risk for an often infinitesimal period of time of the resources for an entrepreneur who wants to get a loan to buy. The entrepreneur buys the resources from the bank at a marked up price to be paid on the date that is mutually agreed. Consequently, the process from the point of view of the bank and the entrepreneur is not less than interest bearing loan. Moreover, the discrepancy of the practice of profit sharing is apparent by the fact that profit sharing is supported by interest based investments (Shaw, 2006). Kuran states, “(Islamic banks) unofficially promise potential depositors returns no lower than the prevailing interest rate…(by making a comparison of return on savings in Turkish bank Turk reveals that) ostensible interest-free returns of the (Islamic bank) essentially match the explicitly interest based returns of the (formal bank)” (p.44). According to Shaw (2006) Kuran strongly condemns the state-administrated distribution of wealth in terms of zakat as it makes the whole process inconsistent and a failure. This is a very valid argument as zakat funds are allocated to comparatively less important areas, for instance, mining, agriculture and precious metals that fail to reduce poverty or eliminate inequality in society (p.110). Kuran confirms his analysis by the data collected from Pakistan and Malaysia. The statistics show insufficient zakat payments to the deserving people. Only fifteen percent zakat is rightly distributed while fifty three percent is allocated to religious education most of the times while twenty two percent allocated to central administration (p.24).Also, favoritism in zakat allocation process becomes regressive. For instance, in Perlis, ninety three percent zakat damages agriculture sector and rice farmers who were living in poverty (p.22). Calvin (2005) explains while studying the notion of economic justice in Islamic thought, Kuran analyses Islamic economic and social justice with particular emphasis on principles of equality and sincerity that are inherent in the principles of ban on interest, inheritance and zakat. Kuran concludes that these principles are not workable in modern economic conditions. These principles are based on outdated economic practices with several disagreements when it comes to their implementation. He further observes Islamic societies as economically underdeveloped. He clearly rejects the theses that this economic underdevelopment is caused by European imperialism or the prevailing practice of corruption in Islamic principles just like it can happen in any other system. He stresses mainly on social factors for economic underdevelopment, for instance, communalism and absence of public debate. He names it preference falsification where individuals are afraid to express their true concerns and opinions in order to avoid punishment. Calvin (2005) further argues that Kuran’s outright rejection of Islamic economy is not very surprising because he expressed his classical liberalist views in the very beginning. It is quite obvious that he will consider one of the basic tenants of Islam as the major cause of failure. Calvin disagrees with Kuran’s going too far to reject the notion of Islamic economy because it couldn’t live up to its own standards and rightly so. According to Shaw (2006) while criticizing modern way of implementing Islamic economics, Kuran neither highlights the actual Islamic principles and practices nor gives any theological explanation of his critique. For example, when it comes to criticizing interest freedom in Islam, it becomes necessary to defend one’s understanding of the Islamic concept of riba. Kuran does not defend his theological position, it is important for challenging the utility of Islam as sound economic foundation. Therefore, it weakens Kuran’s argument of Islamic economic system as failure. Kuran presents vague explanation for his perception of the relationship between Islam and economics. Without theological explanation, Kuran’s thesis implies that Islam is damaging for economic development. To me it is rather a controversial and unsatisfactory stance rather than a solution for individuals and societies to understand and realize the weaknesses and strengths of Islamic economic system. According to Calvin (2005) the book is helpful in identifying and analyzing economic failure of Islamic system that is represented by zakat and Islamic morality system to implement its own standards and be satisfied with the sub-economy that is accurately highlighted by Kuran. Despite the lacking theological element and Kuran’s bias, the book is valuable for not only Islamic economist but historians who are interested in Muslim culture, identity and reasons of their underdevelopment. Work cited Calvin, Allen. “Islam & Mammon: The Economic Predicaments of Islamism.”Journal of Third World Studies. FindArticles.com.Web. 16 Aug, 2010. Champion, Rafe. “The Road to Serfdom: Fifty Years On.”Age Monthly Review (1985):n.pag.Web.16 August 2010. Eickelman, Dale, F. “Forces of Fortune: The Rise of the New Muslim Middle Class and what it will mean for Our World.” Rev. of Forces of Fortune: The Rise of the New Muslim Middle Class and What it will mean for Our World by Vali Nasr. Center of Dialogues, n.d, New York University. Web.15 August.2010. Hayek, Friedrich, A. The Road to Serfdom. London: Rutledge, 1944.Print. Kuran, Timur. Islam and Mammon: the economic predicaments of Islamism. New Jersey; Princeton University Press, 2004.Print. Lodge, B. “The road to serfdom-a summary.”tfa.net. The Freedom Association (Permalink).Web. August 15, 2010. Nasr, Vali. Forces of Fortune: The Rise of the New Muslim Middle Class and What it Will Mean for Our World. New York: Free Press, 2009.Print. Shaw. “Book Review: Islam and Mammon; the Economic Predicaments of Islamism By Timur Kuran”shawblog.wordpress. Book Reviews. Web. August 16, 2010. Read More