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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.

This looks super interesting, but I can't get the link to open. Thanks for writing a thorough summary of it!

This article is from the point of view of an anthropologist who was brought in as a cultural consultant to mediate an issue of "watsa" for a corporation in the Middle East. The company prides itself on its lack of internal corruption, and in turn hired a man named Girgis who grew up in the Middle East but lived and received an education in the US. In Girgis's first year he hired one of his cousins, which the supervisors saw as corrupt hiring practice. The author, and hired consultant, explained to the company supervisors that watsa was an "investment and return" framework in Arab culture, and that there are economic parallels between Arab families and businesses, families existing as economic units. Girgis conveyed that anywhere else in the world he would run the office by the book, but in the Arab world he must also adhere to social norms. The result of watsa through Arab eyes leads to greater loyalty, and less likelihood for deception and theft. The article basically introduces the idea that while in the Western world this may be seen as corruption, it is an embedded part of culture in the Middle East.