Businessafrica.net Newsletter ISSN 1563-4108 Dr. QUENUM & ASSOCIATES INVESTMENT AND BUSINESS PLANNERS Fax: +1 202 478 0432 Click here for contact & support console
WE TAKE CARE OF BUSINESS IN AFRICA™
ECONOMIC AND POLITICAL ANALYSIS

Rulers Who Make Things Happen

"We believe that things happen by design, not in an arbitrary way. And we believe it is our duty to make things happen..." Declared in March 2007 Shaikha Mouza Bint Nasser Al Misnad, the spouse of Qatar State's ruler, Shaikh Amir Hamad bin Khalifa al-Thani, to Christian Sciences Monitor's Grand reporter - Danna Harman

In Part I, the vibrant development of Doha, Qatar"s capital city, had been briefly exposed, as a symbol of the outstanding development pace the country is currently experiencing. This delivery focuses on the strategic thinking, that is driving forward the country.

Qatar is a (desert) peninsula of 4,416 flat square miles / 11,437 square kilometers jutting into the Arabian Gulf as shown on a still image available here, and which positioning on the world map is pictured on the animated image at the left side of this paragraph (courtesy of lexicorient.com).

Qatar is endowed with the third-largest gas reserve in the world, which contributes, together with oil exploitation, to a hefty Gross Development Product (GDP) of US$45 billion (2007). That is a per capita GDP of US$36,000 (2007 est.)

Ruled by the al-Thani family since the mid-1800s, Qatar became independent from United Kingdom's colonial power in 1971.

The first two decades of the independence era were marked by a slow progress in economic development, in spite of a constant stream of abundant oil revenues to the national budget. The development pace picked up a speedier pace during the late 1990s following the accession (in 1995) of Shaikh Hamad bin Khalifa al Thani to the position of Amir (the constitutional monarchy's ruler). - the current ruler.

Under his leadership, Qatar made, year after year, big strides into developing in Education, Health, Energy matters, and is increasingly asserting itself as a regional economic and political power. It hosts and bankrolls the popular Al Jazeera - the international satellite TV channel, which freedom of speech had often draw complaints from regional and international allied nations.

Thus, the harmonious and quick development process currently underway in Qatar is the result of a political will. The Amir decided to make things happen and develop the country. He masterminded a developing strategy and is closely supervising its implementation to making Qatar a major economic and politic player in the Arabian Gulf region and beyond. He decided to put Qatar constantly on the frontline of the developing process of nations. A strategic thinking that is reflected in the quote from his spouse Shaikha Mouza Bint Nasser Al Misnad at the beginning of this paper: "We believe that things happen by design, not in an arbitrary way. And we believe it is our duty to make things happen...".

- Planning Ahead and Using Oil and Gas Revenues to Boost the Economy

The constant increase in Qatar's per capita Gross Development Product from US$26,886 in 1990, to US$28,213 in 2003 and to US$36,000 in 2007 could be taken as the success-index of the strategy applied by Qatar's Amir.

However, per capita GDP's evolution does not truly reflect the real economic development progress accomplishes by a country - as shown on the graphic at the right side of this paragraph (Courtesy UNDP). On said graphic, one sees that Uruguay's Human Development Index (HDI) is closed to Qatar"s HDI, while Qatar's per capita GDP (in 2002) is quite the treble of Uruguay's per capita GDP.

Further, the significant increase in Qatar's per capita GDP from US$ 27,000 in 2003 to US$36,000 in 2007 could be, at first glance, credited to the huge increase in oil pricing that occurred since 2003, from US$30 per barrel in 2003 to nearly US$100 per barrel at the end of 2007.

Therefore, let us consider Qatar's HDI's evolution that is a more appropriate criterion to revealing and apprehending, the economic progress currently underway in Qatar,.

Each year since 1990, the United Nations Development Program (UNDP) had published Human Development Index (HDI), which looks beyond GDP to evaluating countries's economic and social progress. In short, the index blends Education (literacy level of the population), Health (accessibility to clean water /electricity, and to basic health and sanitation facilities; life expectancy at birth), Economic and Social realizations and achievements (public transport facilities, housing accessibility), to measure a country human development progress.

The index does have shortcomings. It does not, for example, include indicators about gender or income inequality; it does not take into account indicators about human rights and political freedom. Nevertheless, it provides a prism for viewing human progress in relation to economic development in a country; and particularly it highlights the complex relationship between income and well-being. Therefore, even if the measurement of well being is a subjective undertaking, HDI gives more indication than per capita GDP about economic development achievements in a country.

The UNDP classifies countries into three clusters in human development: (1) high human development (with an HDI measure between 0.8 and 1.0 (these are largely industrialized countries)); (2) medium human development (an HDI between 0.5 and 0.8); and (3) low human development (an HDI less than 0.5).

No single country achieved the full mark of 1.00. Iceland and Norway managed to score 0.968 points each (2007). Conversely, the report ranked Sierra Leone as the worst country with an HDI equals to 0.366. But truly, Sierra Leone is not the only African nation that is lagging behind.

On its part, Qatar had been credited with 0.839 in 2000 (rank 47th); 0.844 in 2004 (rank 44th); and 0.876 in 2007/2008 UNDP's report and ranked 32th in the world. Such a jump in ranking (12 places gained upward in the top-notched ranking normally achieved by "old" industrialized countries,) is the proof that Qataris are benefiting from the nation's wealth.

Some may argue that this astounding economic development achievement currently underway in Qatar, and achieved in less than two decades, is not so remarkable, as Qatar's rulers have plenty of money available to finance the developing process.

A sober observer of the international political and economic stage would not agree, because several countries in the world do have the same abundance of revenues as Qatar, and had not performed better. Some remained stagnant and several had turn backward the economic and social development's clock.

Particularly, African nations, endowed with natural resources (minerals deposits and oil fields) that have garnered billions of dollar over more than 40 years, have stunt, stagnant or shrunk economies, and a high level of poverty (up to 80% of the population living with less than US1 per day for some of them.) The HDI's index ranking of said laggard countries is in the lower side of the listing as shown by the listing available here

- Vision Supported by an Efficient Strategic Planning

Qatar is the vivid example of what Africabiz Online is advocating for African nations: The implementation of a integrated strategy that blends together all aspects of the economic development process.

Qatar's rulers are making an efficient usage of oil and gas revenues, to push forward education matters from kindergartens to university. The literacy rate is at 89.2% (2005). The Supreme Education Council, created an environment of reform and progress without losing strong Islamic values. For instance, prestigious American universities licence (including Carnegie Mellon and Georgetown) had been purchased and courses are delivered by visiting professors from the American universities. An Education City's campus (2,500 acres) had been established. The aim, says Nawal Abdullah al-Shaikh, spokeswoman for the Council, is to create an environment of reform and progress without losing strong Islamic values, and maintaining the students in contact with national economic and social realities.

In the same line, Qatar's rulers had setup ASPIRE, an Academy of Sport Excellence /Training Center equipped to the highest international standard, and serviced by top athletes, trainers and sport performers from the whole world. For instance, football /soccer giant - Pele - is the sponsor of the football section.

Aspire today...Inspire tomorrow, the Academy's motto says it all. It is a synopsis of the strategic vision that is driving Qatar forward. Qatar national football club results were already "abnormal," as the team had reached almost all the final stages and won several times, since the 1980s, the Asian region FIFA nations's cup trophies. Qatar National Football club will score more "abnormal" successes in the coming years. And the world would soon witness the emergence of Qatar's athletes ranking among the best in the world. .

Driving through the capital city Doha, and visiting malls and restaurants and hotels, a casual tourist/visitor has a palpable experience of the speed at which Qatar is moving into more developing. But there is more, that is not seen by the casual visitor: There is a sprawling industrial zone that is about 17 km from city center. There is established an industrial zone hiving with thousand of enterprises busy in all lines of business, to provide raw materials and all kinds of products to pulsating the economic development. And a new industrial zone is already under construction by the Ministry of Energy and Industry, in the same place, "behind" the territory of the "old" one described above, mapped with large roads and plots linked to utilities - water and electricity.

In brief, Qatar's rulers had established basic infrastructures (roads, utilities networks, hospitals, schools, high schools and universities's campuses), opening up the country to skills and talents from all over the world to become part of the progress. They succeeded in establishing the country as a international and regional banking place, an education center welcoming students from Arab countries. They promoted free speech with the popular, Al Jazeera News TV station (that broadcasts the Doha Debates (sponsored by Shaikha Mouza Bint Nasser Al Misnad).

In other words, after mastering the energy sector, infrastructures' building, education and health matters to benefit the population; and controlling the banking system, gearing to position Qatar as a financial place of world standard, Qatar's planners are now eying Bio-technology development. Doubtless that, with the strategic thinking and model that helps make things happen till now - which consists in planning ahead and searching for talents (and not labels) to implement the scheme - Qatar would add another asset to its developing fundamentals.

Everyone is aware of the Asian Tigers and Dragons's economic performances and prowess Now the world would be increasingly making acquaintance with the Oryx's Jump. Qatar is an economic and social developing example for emerging nations, and a regional power in the making.

Dr. Bienvenu-Magloire Quenum
Editor of Africabiz Online
Click here for contact & support console

Click here for first part of this paper: The Oryx Jump: Qatar, A Nation Under High Speed Development."
Click here for "Africa: The Final Destination for Double-digit Growth Rates on Vested Money."
Click here for "Dynamic News On Arabian Gulf States."
Click here for "Economic Growth Never Originates From the Void."
Click here for "The Benefits of Logistics Management."
Click here for "Strategy for African countries".
Click here for a "Regional development scheme" with an "Income Building Power" operation.
Click here for "Less Than 10% Annual Economic Growth-Rate? That's Peanuts for an Emerging Country"