Flooding in Riyadh

The rumors mill in the Gulf reports that in Saudi Arabia several businessmen have been arrested as a results of the investigations on the damages caused by the heavy rain in December that caused an unprecendeted flood in Jeddah. In essence the city was supposed to have set in place a drainage system, but apparently the funds allocated for this construction projects had been diverted to different purposes (or different pockets), confiding that heavy rains are a rarity in Arabia. But evidently the changes in weather patterns was fatal for an entrenched system of cozy relationships between contractors and officials.
Now, the comments, mood and gossip on the arrests in majilis and shisha joints are upbeat. If only it would rain in Riyadh, they say!!!!!

Competitiveness Guru - Part 2

Some complained that I have been too harsh in my post on Prof. Porter conference in Dubai. So II decided to give a broader account on the issues he stressed, as I recorded in my notes. They cover the general advice which is not specific to Dubai, although I choose those that are more relevant for Dubai and in general the GCC.


A sector where a local company is dominant rarely displays innovation and is competitive. In fact if a business is not forced to compete at home it will not be able to compete worldwide. Therefore it will essentially stagnate possibly under some form of explicit or veiled protectionist policy. Essentially a country needs both domestic and foreign companies to foster growth (the example of Wall Street or Silicon Valley are paradigmatic).


No country can be successful in all sectors. Core competencies and competitive advantages must be leveraged. This means that having too many clusters is not wise, because stretches the resources.

Competitiveness also requires sound macroeconomic policies (fiscal and monetary) because rarely growth is nurtured in a high inflation environment and in a bankrupt country and social infrastructure, ie education, rule of law, health and effcient political institutions.

And lastly Prof. Porter remarked that companies need to well managed, and decision making must be transparent, with official accountable for their decisions.

All in all few earth shaking novelties but definitely a useful list of reminders.

Saudistic

Last year I spoke at the annual meeting of the Saudi Arabian Economic Association in Riyadh. It turned out to be an interesting occasion because I met a few high caliber researchers and economists which conflicts with the view that Saudi Arabia is intellectually stagnant. But one thing that I remember vividly was the almost surreal atmoshpere when female economists were presenting their papers: we couldsee the slides on the screen and hear their vocies through the speakers, but we would not be able to see them. They were in another room, another location, and I never had a chace to meet them or even to see their face. So I remained with the curiosity to know more about them. In part this curiosity has been satisfied yesterday by a (female) friend who attended a conference in Saudi Arabia. Here is what she writes live from Riyadh:

"The Saudi women I met at the global competitiveness forum in Riyadh are absolutely tough women. Even though they are sitting the other side of the partition at the conference room separated from men, they ask very challenging and extremely direct and highly informed questions to Saudi and foreign panelists-men! tomorrow... I will shift to women's section as I am sure I will learn a lot from those tough girls!"

I actually enjoyed more sitting together with Saudi, American including Nobel Laureautes women in the women's section during the conference. Fantastic experience! We laughed a lot on some of the men speakers. And God, Saudi women asked grilling question to all those Saudi and foreign men speakers. It is obvious why women are limited access to public service everwhere in the world!!!"

In a country which faces monumental challenges in the near and distant future it seems absurd to wast such talent. Almost saudistic.

Water Supply

In a region where water is scarce some fascination with H2O might be justified. And possibly even some extravagance. Take for example the Saudi Royal family. Their daily drinking water supply comes from a Jordanian spring, whose properties and flavor are cherished by the august palates. So a dedicated flight transports the precious liquid from the spring, to be distributed to the tables of selected palaces and villas in Riyadh. One wonders if an aqueduct could be a cheaper alternative.