Sunday, December 2, 2012

Its all about who you know

http://www.al-monitor.com/pulse/originals/2012/al-monitor/reversebraindrain.html

One of my long term goals after college is to do some sort of business in the Persian Gulf region. I recently read the article above from al-monitor on reversing brain drain in the Middle East. What really interested me was the last section about public policy. This part of the article quickly goes over the problems that small business owners face when starting up. Lack of clear regulations and the necessary resources for a successful business hinder entrepreneurs and business owners. I find it particularly disheartening as an American because as a student looking to do some sort of business in the region the challenges make me consider whether attempting my goal is worth it or not.

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However, the one thing this article made me think of is the unofficial system of knowing people who can give you favors works in the Middle East. I really don't know what to call it but the system of "wasta" in Oman is what I am thinking of. "Wasta" from my own experience was more than just knowing the right people, having it meant you could use the power of knowing someone to get things done and skip the standard procedures. I personally saw this system play out multiple times during my travels and have also read about it in books on the bureaucracy of the Saudi regime.

Say for example you have a document that needs an important signature from a judge but there is a long wait and process the document has to go through before it is signed. If you know someone who works with the judge you can call this person and they can skip the regular procedures and process the document within the same day. Stories similar to this have been told to me from friends who needed documents from their home country to travel or study abroad.

Going back to the section in the article on public policy I can easily see how this corruption of the system is a drawback to people looking to work in the Middle East or return to their home countries to work. Plus the horribly unclear regulations and standards that are required for business owners doesn't make finding work in the region appealing. This poses a significant problem if the article is right about the Arab world needing 100 million more jobs in order to employ the newer generations.

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