Scribd
Upload
50 views

Dubai Model of Development

The document discusses different models of economic development including the conventional structural adjustment model promoted by the IMF and World Bank, as well as the East Asian developmental state model. It then provides an overview of Dubai's rapid economic growth and development strategy, describing key aspects like government-led decision making, a flexible labor force, bypassing industrialization, internationalization of services, supply-generated demand, branding and market positioning, and partnerships with world-class companies. However, it also notes some potential downsides like difficulties institutionalizing the model and issues around human rights.

Uploaded by

AkankshaMahajan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
50 views

Dubai Model of Development

The document discusses different models of economic development including the conventional structural adjustment model promoted by the IMF and World Bank, as well as the East Asian developmental state model. It then provides an overview of Dubai's rapid economic growth and development strategy, describing key aspects like government-led decision making, a flexible labor force, bypassing industrialization, internationalization of services, supply-generated demand, branding and market positioning, and partnerships with world-class companies. However, it also notes some potential downsides like difficulties institutionalizing the model and issues around human rights.

Uploaded by

AkankshaMahajan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 26

Myths and Realities of Development

Dubai and South Korea


Conventional Wisdom of Development
• IMF
• World Bank
– Neoliberalism
• Structural Adjustment
Defining Development
• How do we measure development?
– GDP
– Inequality
– Social indicators
– Combination of Factors?
Structural Adjustment
• Guarantees of fiscal discipline – no more budget
deficits
• Reduction of public expenditures
• Financial liberalization
• Trade liberalization
• Promotion of foreign direct investment
• Privatization of state-owned businesses
• Deregulation of economy
• Protection of property rights
East Asian Developmental State
• Peter Evans – Embedded Autonomy (1996)
• Alice Amsden
• Chalmers Johnson
• In Taiwan, Japan, and S. Korea, government
intervention played a decisive role in
promoting economic development.
– Shielding Infant Industry
– Subsidies
What do you know about the UAE?
• Population: 5,432,746
• Confederation made up of the following 7 Emirates:
Dubai, Abu Dhabi, Sharjah, Fujairah, Ras Al Khaimah,
Ajman, Umm Al-Quwain
• Per Capita Income: $37, 941
• World Record Growth Rate of 13.4% between 2000-
2005
• Independence: 1971
• Largest Sov. Wealth Fund in the world: 875 Billion
• Real GDP in 2006: 175 Billion
• Ethnic Diversity: 19% Emirati, 23% Arab and Iranian, …
What did Dubai look like 50 years ago?
Population: 30,000
Population: 1.2 million
Dubai Model of Development
• Government led Development
• Fast Decision Making
• Flexible Labor Force
• Leapfrog Industrialization
• Internationalization of Service Provision
• Supply Generated Demand (‘first mover’)
• Market Positioning via Branding
• Development in Cooperation with world class
partners
Government Led Development
• The Executive Office (TEO)
– Five men including the ruler oversee development
initiatives (Sheikh Mohammed, Sheikh Hamdan,
Mohammad Bin Ali Al Abbar, Ahmed Bin Sulayem,
Mohammad Abdallah Al Qarwawi)
– Dubai World, Dubai Holding, Emaar, Dubai
Municipality
– Centralized decision-making
• Decisions are made quickly without the need for
consultation
– Exemplified in the construction boom
Interview with CEO of Dubai Dry Dock
Geoff Taylor
“If I want to spend 40 million dollars on an extension of
the repair facilities here at the Dry Dock, I will pass the
request to the head of Dubai World, Mr. Sulayem who
is right under Sheikh Mohammed. Usually I will get an
answer within 30 minutes. In England I would have to
wait 5-6 months for the request to go through various
assessments and boards. Here they are much more
forward thinking, dynamic, and a lot more trusty. They
trust that the person who runs the businesses
generally tends to understand the business, and as
such are in the best position to see business
opportunities.”
Flexible Labor Force
• The Dubai government can import specialized
labor quickly-- without any bureaucratic or
logistical hassle.
– Construction workers
– Consultants
– Highly Skilled Workers
Bypass Industrialization
• EPZ
• Development of a Service Economy
(knowledge economy)
– Tourism
• Health Tourism
– Film Industry
– Financial Services Hub
– Biotechnology
Internationalization of Service
Provision
• Due to the small size of its domestic market,
growth requires expansion overseas
• Active acquisition of businesses that fit
Dubai’s strategic profile
• Dubai Ports World
• Emaar (Gated Communities)
• Emirates Airlines (Regional Logistics Hub)
Supply Generated Demand
Martin Hvidt: “All businesses grapple with the question of when to
invest. There are two general answers to this question: Either wait
until the demand for the good or service on wishes to sell is
present, or simply to supply the goods or services and let it
generate its own demand.”

Risky and would not be possible without public/private partnership

Dubai Internet City


Media City
Palm Islands
The World
Dubai Land
Market Positioning via Branding
• What makes Dubai such an attractive location
for tourists?
• Construction of Iconic Buildings
Development with world class
partners
• Dubai Health Care City – Mayo Clinic and
Harvard Medical School
• Hotel Sector – Internationally respected
partners collaborate such as Hilton, Sheraton,
and Hyatt
Economic Logic of the Dubai Model
• Service Provision
– Private Education for Expat Children
– Electricity
– Telecommunication
– Visa Renewal
– Licensing
– Hospitalization
– Real Estate
Alternative Explanations
The Dark Side
• How do you Institutionalize the Dubai Model?
• Human Trafficking
• Terrorism
• International Mafia
• Domestic Apathy and Disengagement
• Expat Rights

You might also like