SOCIO-ECONOMIC 'FEEL-GOOD' FACTORS

'Feel-good' factors in Dubai, in relative terms and arguably, ought to be one of the highest in the world. More than anything else, this tremendous transformation of the emirates' economy from a trading-driven to a well diversified one (albeit a bit sensitive to external impact) must rank as a socio-economic aggregation of a sense of well being by its residents!

Much has been written about all these; and indeed by me, in this column in different contexts. However, these 'feel-good' factors need to be measured and not just assessed empirically. Replicating these in other parts of the world beneficially could well form a case study for business / economic development studies academia such as Harvard.

It is in this context that Etisalat needs to be applauded for setting up its own University and thus putting its considerable cash flow and massive monetary resources to good community use. Interestingly, they have chosen Sharjah as the venue; possibly because it is regarded as a seat of learning in the GCC. In bringing superb global talents to this varsity, Etisalat will help play (in that clichéd term of 'knowledge economy') a very important role in domestic intellectual build-up.

The Dubai Healthcare City has similarly scored its first 'coup' in bringing the Harvard Medical School to set up research and other unique facilities and in forging an alliance with it. The Dean of the Harvard Medical School, Dr. Robert Crone spoke with great conviction at the lunch at the Burj Al Arab last week. It was disarming to hear such humility when Dr. Crone spoke about how they brief their graduating students that they have been equipped with knowledge, but that almost half of it could be wrong, and more importantly, Harvard does not know, which half is going to be wrong! That underscores not just intellectual modesty but also mortal / human frailty. I believe it is this sense of maturity, moderation and balance that will distinguish men from the boys! Those moving up rapidly in this part of the world can scale even greater heights in their initiatives, if they remain in a learning and not vainglorious mood and mode!

Harvard did not reach the pre-eminent position in the world that it has, as a distinguished education institution, except by putting to good commercial use / application, its knowledge and skills. However the Dean alluded in wry humour, words to the effect that if healthcare institutions are doing well, then there ought to be something wrong with the health of humanity. Indeed if good health can be nourished in a proactive and preventive manner, then that should be the main objective of institutions such as Harvard.

Reverting to the preponderance of 'feel-good' factors in any country, it is an arduous task to achieve them in the first instance. They are all a little bit like intangible assets / attributes. For instance, you can make a determination of how the markets behave or respond to inflationary or growth expectations. Inflationary expectations often drive prices and markets. Therefore, this is a collective expression of will and initiatives. Perception in the economic world is just as important as realties. A good blend of hype and, on the ground, deliverables is always a good formula; as long as it does not 'spin' out of control. Tony Blair will attest to the ruinous effects of such a failing. What was said previously, during the run up to the Iraq War is now coming home to roost; as a microscopic scrutiny by the Parliamentary and Congressional committees that are underway both in the U.S. and in the U.K.

After his retirement, Hans Blix called into question, the quality of intelligence on the basis of which the weapons inspection decisions and the Armageddon judgement were made! Blix believes that talking about weapons of mass destruction and assuming that they are there is not equal to finding them! All this strains credulity and therefore, 'feel-good' factors are not based on such 'spin'; that cannot be sustained. Emotional well being is not fed on advertising razzmatazz alone. This is where a country's intellectual honesty, ethical equipment and physical infrastructure all have to be firmly in place. Small city states with superb 'creative comfort' can and with reasonably little amount of investments, make a huge impact on enhancing the quality of living. With an unflinching commitment, they can track the best in the business and attract them to their shores, even if they come for a token presence, through Memoranda of Understanding (MOUs). Once you get the top / credible names, that move itself, adds credibility to the underlying concepts. Even if they have to be bought in at a cost (which notionally atleast, can be capitalized into the project), the multi-fold impact these then make on the psyche of others, especially those that want to be associated with an initiative that has superb names such as Harvard, MIT or Yale (in educational excellence) or the likes of achievers such as Microsoft or Oracle in technology or the Reuters and CNBCs in media, do illustrate that a strong name-pull can create a magnetic incremental effect.

All these thus can be the nucleus for interesting studies by say business school researchers who should track the amounts of investment flowing in from outside the country i.e. those that have been poured into Dubai Internet City, Dubai Media City etc. on a recurring basis i.e. by those coming to establish business. Even intelligent guesstimates will indicate that these are the real returns that infrastructure investments have produced for Dubai. A similar study could well be applicable for the Dubai Healthcare City on the anvil. For example, Kuwaiti companies have made substantial real estate investments in the Palm and the TECOM. The Saudis, on the other hand, have plumped for the Dubai Healthcare City. These are the new projects / initiatives that provide to Dubai's regional entrepot aspirations, the adrenalin of the new economy; not just for goods but also for services. It would be eminently worthwhile for well known academic institutions to progress such forms of research; on how judiciously, since the mid-1970s, and consistently, the 'feel-good' factors have been promoted by Dubai through injections of liquidity, funding and other support of new initiatives, the substantial infrastructure enhancements, the stable policies pursued with low-key economic intervention, if at all that, and the carefully orchestrated / management of a small economy in the global context. After such erudite and well challenged research, the identified success factors need to be documented; so as to be replicated in other parts of the world. That could prove to be an enduring legacy / contribution from Dubai in the New Millennium!

The author is a General Manager in Emirates Bank. The personal views expressed in this article are not necessarily shared by the Bank].

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