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allieggg

http://mgt.guc.edu.eg/wpapers/005mohamed_hamdy2008.pdf - 2 views

  • Jordanian survey, 87% of the respondents wanted to eradicate wasta.
  • Cunnigham and Sarayrah (1994) suggest that the modern oil boom in the Arab world may have perpetuated wasta by reducing the need for hard work.
  • human resource departments in the Arab world depend heavily on subjective assessment tools such as unstructured interviews.
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  • most Arab economies suffer from very high levels of unemployment. Good jobs are scarce. This motivates applicants to use every mean possible to improve their chances of being hired.
  • For example, sons of police and military officers are given preference in admission to the Egyptian police academy or military college, respectively.
  • study conducted by Whiteoak, Crawford and Mapstone (2006) showed the young UAE citizens believed that wasta is more useful than do their older citizens. This finding may imply that wasta is strengthening rather than diminishing in Arab societies. Commenting on the spread of wasta in Egypt, a senior bank official told one of the authors that up to 25% of his staff were hired only because of their wasta.
  • many top governmental positions are reserved for members of the ruling families or members of their supporting tribes
  • First, to maintain their grip on authority, Arab political regimes tend to place close confidants in key positions even if they are not the most qualified for such positions.
  • In Syria, the key argument made in favor of selecting Basher Al Asad as the country’s president was that he was the son of the late president Hafez Al Asad.
  • study conducted by Kilani and Sakija in Jordan showed that 90% of the respondents believed that they would use wasta in the future.
  • In the Quran, Muslims are instructed that “the best that you can hire employee is one who is competent and trustworthy” (Quran, 28, 26). Prophet Mohamed is also reported to have said “He who is in a leadership position and appoints knowingly a person who is not qualified to manage, than he violates the command of God and His messenger”. He also stated “when a person assumes an authority over people and promotes one of them because of personal preferences, God will curse him for ever”.
  • Rising to high levels requires important connections. Receiving important privileges or benefits is contingent upon using the right connections.
  • Intercessory wasta on the other hand, involves someone intervening on behalf of a client to obtain an advantage or 2overcome a barrier from an authority figure. It is this type of wasta that affects hiring decisions.
  • Those who are supported by strong others will not be put down or rejected. Only the unconnected or unsupported are punished.
  • people who are related to important others (especially in government) are fortunate as they will have their demands or needs fulfilled. People serve those that are related to important people.
  • People tend to serve those that they know. Without knowing anybody, you will have difficulty getting the service you want.
  • The turban symbolizes a senior respected person. If you know a senior person, your demands will be meet. Similar to the second proverb
  • Intermediary wasta is utilized to facilitate the resolution of intergroup or interpersonal conflicts. In this system, wasta improves human relations and reinforces social norms.
  • Intermediary wasta is utilized to facilitate the resolution of intergroup or interpersonal conflicts. In this system, wasta improves human relations and reinforces social norms. Intercessory wasta on the other hand, involves someone intervening on behalf of a client to obtain an advantage or 2overcome a barrier from an authority figure. It is this type of wasta that affects hiring decisions.
  • feed feelings of injustice and frustration among those who are qualified for the job but do not have a wasta. Wasta is also different from the more popular nepotism and cronyism. While nepotism involves hiring of relatives and friends, wasta is not restricted to such groups and may involve strangers
  • may lead to poor job performance and economic decline.
  • Indeed, wasta is blamed for Arab world’s poor economic performance and brain drain (Al Maeena, 2003; Cunnigham & Sarayrah, 1994). Kilani and Sakijha (2002) stress that wasta is becoming a burden on its seeker, its granter and the government.
  • Arab wasta has been compared to the Chinese concept of guanxi. Both wasta and guanxi use social networks to influence the distribution of advantages and resources. However, while guanxi is based on Confucian ethics which focus on strengthening collective ties (Hutchings & Weir, 2006a; Hutchings & Weir, 2006b); wasta violates Muslim ethics which prescribe hiring the most qualified.
  • Wasta plays a critical role in hiring and promotion decisions in Arab organizations. Before applying to a position, applicants may seek out a wasta to improve their chances of being hired. A person with poor qualifications but a strong wasta will be favored over a person who is more qualified but does not have a wasta. Because many people may apply with wasta, the applicant with the most important wasta often gets the position.
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    Compiled by faculty members at the German University in Cairo, this working paper series addresses the effect that watsa has on competence and morality in Middle Eastern economics and society. The authors define watsa as, "the intervention of a patron in favor of a client to obtain benefits and/or resources from a third party." In simpler terms it is a system of social networking in Arab culture in which family and social ties play a significant role in the attainment of economic advantages and resources, largely in the hiring process in businesses and organizations. A person applying for a job seeks out watsa to increase their chances of getting hired. Comparable to nepotism and cronyism, but is not restricted to friends and associates, watsa can also involve strangers linked through some social web of people. Watsa runs somewhat parallel to a Chinese concept of guanxi, based on Confucian ethics and focusing on strong collective ties. While guanxi is a part of Chinese ethics it actually defies Muslim ethical values, which advocates hiring the person most capable. In a Jordanian survey, 87% of respondents want watsa eradicated. While we know that unemployment in the Arab region is widespread, we can assume that this motivates people to do anything they can to improve their chances of obtaining a job. However, the practice of watsa as a whole is actually degrading the economic systems in the Arab sates even further. The article explains the linkage between watsa and poor job performance, economic decline, and the festering of injustice and frustration among the masses in Arab countries.
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    This looks super interesting, but I can't get the link to open. Thanks for writing a thorough summary of it!
wmulnea

Saudis block OPEC output cut, sending oil price plunging | Reuters - 0 views

  • This outcome set the stage for a battle for market share between OPEC and non-OPEC countries, as a boom in U.S. shale oil production and weaker economic growth in China and Europe have already sent crude prices down by about a third since June.
  • Saudi Arabia blocked calls on Thursday from poorer members of the OPEC oil exporter group for production cuts to arrest a slide in global prices, sending benchmark crude plunging to a fresh four-year low.
  • "It is a new world for OPEC because they simply cannot manage the market anymore. It is now the market’s turn to dictate prices and they will certainly go lower," said Dr. Gary Ross
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  • and Algeria had calling for output cuts of as much as 2 million bpd.
  • The wealthy Gulf states have made clear they are ready to ride out the weak prices that have hurt the likes of Venezuela and Iran
  • hoped that lower prices would help drive some of the higher-cost U.S. shale oil production out of the market.
  • The Organization of the Petroleum Exporting Countries accounts for a third of global oil output.
  • A price war might make some future U.S. shale oil projects uncompetitive due to high production costs, easing competitive pressures on OPEC in the longer term.
  • "We interpret this as Saudi Arabia selling the idea that oil prices in the short term need to go lower, with a floor set at $60 per barrel, in order to have more stability in years ahead at $80 plus," said Olivier Jakob from Petromatrix consultancy.
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    This article suggests that OPEC is losing control of global oil prices. The article addresses budget considerations for smaller OPEC producers, like Venezuela, and the battle over market share between OPEC and gulf producers.
wmulnea

The new economics of oil: Sheikhs v shale | The Economist - 0 views

  • The contest between the shalemen and the sheikhs has tipped the world from a shortage of oil to a surplus.
  • Big importing countries such as the euro area, India, Japan and Turkey are enjoying especially big windfalls. Since this money is likely to be spent rather than stashed in a sovereign-wealth fund, global GDP should rise.
  • There will, of course, be losers (see article). Oil-producing countries whose budgets depend on high prices are in particular trouble. The rouble tumbled this week as Russia’s prospects darkened further. Nigeria has been forced to raise interest rates and devalue the naira. Venezuela looks ever closer to defaulting on its debt
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  • But Saudi Arabia, in particular, seems mindful of the experience of the 1970s, when a big leap in the price prompted huge investments in new fields, leading to a decade-long glut.
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    This article suggests that increased shale oil production is changing the economy of oil, but at the same time Saudi Arabia is reluctant to slow OPEC production.
mcooka

Education is becoming an extremist battleground in Pakistan - The Washington Post - 0 views

  • The one year anniversary commemorations of the heinous attack on a Peshawar public school were barely over when gunmen once again went from classroom to classroom killing students and staff at a Pakistani university nearby.
  • n doing so, they are attacking the one area of Pakistani society where there is clear reason for optimism, as the growth of low-cost private schools in recent decades has given more and more young people, particularly girls, access to education.
  • aw revenge is clearly a motive as the Taliban protest against military bombings of their hideouts in the tribal areas.
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  • The Taliban has already been successful with this approach on other fronts. Their attacks on polio aid workers have proven effective in disrupting the country’s entire public health system
  • Together with Jishnu Das of the World Bank, we have been researching Pakistan’s education sector for nearly 20 years.
  • Girls in particular have benefited from this school boom: more are in school than ever.
  • Research shows that the education debate in Pakistan is similar to the education debate in any other country: parents grapple with a choice of schools based on the usual set of considerations: Which of the schools nearby is best? How much should we pay? Is our child getting the best quality education?
  • But education is a unique service – not only because it involves a country’s most precious resource, its children – but also because, by increasing human capital, it strengthens the state not only in the present, but in the future.
  • As we speak, many schools are announcing temporary closure of facilities in the aftermath of the latest attack
eyadalhasan

Oil's Decline Takes Toll on Saudi Conglomerate - 0 views

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    A construction conglomerate at the center of Saudi Arabia's petrodollar-fueled economic boom is teetering under billions of dollars of debt, bankers and financial advisers familiar with the matter said, showing the strain of cheap oil on the kingdom and its companies.
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