[lbo-talk] Mike Davis: Fear and Money in Dubai

Yoshie Furuhashi critical.montages at gmail.com
Thu Dec 28 16:00:21 PST 2006


<http://newleftreview.org/?page=article&view=2635> New Left Review 41, September-October 2006 MIKE DAVIS FEAR AND MONEY IN DUBAI

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Under the enlightened despotism of its Emir and ceo, 58-year-old Sheikh Mohammed al-Maktoum, Dubai has become the new global icon of imagineered urbanism. Multi-billionaire Sheikh Mo—as he is known to Dubai's expats—has a straightforward if immodest goal: 'I want to be Number One in the world'. [7] Although he is an ardent collector of thoroughbreds (the world's largest stable) and super-yachts (the 525-foot-long 'Project Platinum', which has its own submarine and flight deck), his consuming passion is over-the-top, monumental architecture. [8] Indeed, he seems to have imprinted Scott and Venturi's bible of hyper-reality, Learning From Las Vegas, in the same way that pious Muslims memorize the Qur'an. One of his proudest achievements, he often tells visitors, is to have introduced gated communities to Arabia, the land of nomads and tents.

Thanks to his boundless enthusiasm for concrete and steel, the coastal desert has become a huge circuit board upon which the elite of transnational engineering firms and retail developers are invited to plug in high-tech clusters, entertainment zones, artificial islands, glass-domed 'snow mountains', Truman Show suburbs, cities within cities—whatever is big enough to be seen from space and bursting with architectural steroids. The result is not a hybrid but an eerie chimera: a promiscuous coupling of all the cyclopean fantasies of Barnum, Eiffel, Disney, Spielberg, Jon Jerde, Steve Wynn and Skidmore, Owings & Merrill. Although compared variously to Las Vegas, Manhattan, Orlando, Monaco and Singapore, the sheikhdom is more like their collective summation and mythologization: a hallucinatory pastiche of the big, the bad and the ugly.

The same phantasmagoric but generic Lego blocks, of course, can be found in dozens of aspiring cities these days (including Dubai's envious neighbours, the wealthy oil oases of Doha and Bahrain), [9] but al-Maktoum has a distinctive and inviolable criterion: everything must be 'world class', by which he means Number One in the Guinness Book of Records. Thus Dubai is building the world's largest theme park, the biggest mall (and within it, the largest aquarium), the tallest building, the largest international airport, the biggest artificial island, the first sunken hotel and so on (see below). Although such architectural megalomania is eerily reminiscent of Albert Speer and his patron's vision of imperial Berlin, it is not irrational. Having 'learned from Las Vegas', al-Maktoum understands that if Dubai wants to become the luxury-consumer paradise of the Middle East and South Asia (its officially defined 'home market' of 1.6 billion), it must ceaselessly strive for visual and environmental excess. If, as Rowan Moore has suggested, immense, psychotic assemblages of fantasy kitsch inspire vertigo, then al-Maktoum wants us to swoon. [10]


>From a booster's viewpoint, the city's monstrous caricature of
futurism is simply shrewd branding for the world market. As one developer told the Financial Times, 'If there was no Burj Dubai, no Palm, no World, would anyone be speaking of Dubai today? You shouldn't look at projects as crazy stand-alones. It's part of building the brand'. [11] And its owners love it when architects and urbanists, like George Katodrytis, anoint it as the cutting edge:

Dubai is a prototype of the new post-global city, which creates appetites rather than solves problems . . . If Rome was the 'Eternal City' and New York's Manhattan the apotheosis of twentieth-century congested urbanism, then Dubai may be considered the emerging prototype for the 21st century: prosthetic and nomadic oases presented as isolated cities that extend out over the land and sea. [12]

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After the British withdrawal from East of Suez in 1968, Sheikh Rashid joined with the ruler of Abu Dhabi, Sheikh Zayed, to create the United Arab Emirates in 1971, a feudal federation bound together by the common threat of the Marxists in Oman and, later, the Islamists in Iran. Abu Dhabi possessed the greater share of the uae's oil wealth (almost one-twelfth of the world's proven hydrocarbon reserves) but Dubai was the more logical port and commercial centre. When the city's original deep-water 'creek' proved too small to handle burgeoning trade, the uae's leadership used some of their earnings from the first 'oil shock' to help Dubai finance construction of the world's largest man-made port, completed in 1976.

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In many complex and surprising ways, Dubai actually earns its living from fear. Its huge port complex at Jebel Ali, for example, has profited immeasurably from the trade generated by the us invasion of Iraq, while Terminal Two at the Dubai airport, always crowded with Halliburton employees, private mercenaries and American soldiers en route to Baghdad or Kabul, has been described as 'the busiest commercial terminal in the world' for America's Middle East wars. [27] Post-9/11 developments have also shifted global investment patterns to Dubai's benefit. Thus after al-Qaeda's attacks on America, the Muslim oil states, traumatized by the angry Christians in Washington and lawsuits by wtc survivors, no longer considered the United States the safest harbour for their petrodollars. Panicky Saudis alone are estimated to have repatriated at least one-third of their trillion-dollar overseas portfolio. Although nerves are now calmer, Dubai has benefited enormously from the continuing inclination of the oil sheikhs to invest within, rather than outside, the region. As Edward Chancellor has emphasized, 'unlike the last oil boom of the late 1970s, relatively little of the current Arab oil surplus has been directly invested in us assets or even deposited in the international banking system. This time much of the oil money has remained at home where a classic speculative mania is now being played out.' [28]

In 2004, the Saudis (500,000 of whom are estimated to visit Dubai at least once a year) were believed to have ploughed at least $7 billion into al-Maktoum's major properties. Saudis, together with investors from Abu Dhabi, Kuwait, Iran and even emulous Qatar, bankroll the hubris of Dubailand (officially developed by Dubai's billionaire Galadari brothers) and other colossal fantasy projects. [29] Although economists stress the driving role of equity investment in the current Gulf boom, the region is also awash with cheap bank credit thanks to a 60 per cent increase in the local deposit base and the slipstreaming of the us Federal Reserve's easy money policies (the currencies of the Gulf emirates are all linked to the dollar). [30]

Much of this money, of course, dances to an old tune. 'A majority of new Dubai properties', explains Business Week, 'are being acquired for speculative purposes, with only small deposits put down. They are being flipped in the contemporary Miami manner.' [31] But what is too often 'flipped', some economists predict, may ultimately flop. Will Dubai someday fall from the sky when this real-estate balloon bursts, or will peak oil keep this desert Laputa floating above the contradictions of the world economy? Al-Maktoum remains a mountain of self-confidence: 'I would like to tell capitalists that Dubai does not need investors; investors need Dubai. And I tell you that the risk lies not in using your money, but in letting it pile up.' [32]

Dubai's philosopher-king (one of the huge offshore island projects will actually spell out an epigram of his in Arabic script) [33] is well aware that fear is also the most dynamic component of the oil revenues that turn his sand dunes into malls and skyscrapers. Every time insurgents blow up a pipeline in the Niger Delta, a martyr drives his truck bomb into a Riyadh housing complex, or Washington and Tel Aviv rattle their sabres at Tehran, the price of oil (and thus Dubai's ultimate income) increases by some increment of anxiety in the all-important futures market. The Gulf economies, in other words, are now capitalized not just on oil production, but also on the fear of its disruption. According to a recent survey of experts by Business Week, 'the world paid the Persian Gulf oil states an extra $120 billion or so last year because of the premium in prices due to fear of unexpected supply disruptions. Some cynics argue that oil producers welcome the fear of disruption because it boosts their revenues'. 'Fear', according to one of the senior energy analysts that the magazine consulted, 'is a gift to oil producers'. [34]

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Dubai, in other words, is a vast gated community, the ultimate Green Zone. But even more than Singapore or Texas, it is also the apotheosis of the neo-liberal values of contemporary capitalism: a society that might have been designed by the Economics Department of the University of Chicago. Dubai, indeed, has achieved what American reactionaries only dream of—an oasis of free enterprise without income taxes, trade unions or opposition parties (there are no elections). As befits a paradise of consumption, its unofficial national holiday, as well as its global logo, is the celebrated Shopping Festival, a month-long extravaganza sponsored by the city's 25 malls that begins on 12 January and attracts 4 million upscale shoppers, primarily from the Middle East and South Asia. [35]

Feudal absolutism—the Maktoum dynasty owns the land area of Dubai —meanwhile has been spruced up as the last word in enlightened corporate administration, and the political sphere has been officially collapsed into the managerial. 'People refer to our crown prince as the chief executive officer of Dubai. It's because, genuinely, he runs government as a private business for the sake of the private sector, not for the sake of the state', says Saeed al-Muntafiq, head of the Dubai Development and Investment Authority. Moreover, if the country is a single business, as al-Maktoum maintains, then 'representative government' is besides the point: after all, General Electric and Exxon are not democracies and no one—except for raving socialists—expects either to be so.

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At the top of the social pyramid, of course, are the al-Maktoums and their cousins who own every lucrative grain of sand in the sheikhdom. Next, the native 15 per cent of the population (many of them originally Arab-speakers from southern Iran) constitutes a leisure class whose uniform of privilege is the traditional white dishdash. Their obedience to the dynasty is rewarded by income transfers, free education, subsidized homes and government jobs. A step below are the pampered mercenaries: more than 100,000 British expatriates (another 100,000 uk citizens own second homes or condos in Dubai), along with other European, Lebanese, Iranian and Indian managers and professionals, who take full advantage of their air-conditioned affluence and two months of overseas leave every summer. The Brits, led by David Beckham (who owns a beach) and Rod Stewart (who owns an island), are probably the biggest cheerleaders for al-Maktoum's paradise, and many of them luxuriate in a social world that recalls the lost splendour of gin-and-tonics at Raffles and white mischief in Simla's bungalows. Dubai is expert at catering to colonial nostalgia. [44]

The city-state is also a miniature Raj in a more important and notorious aspect. The great mass of the population are South Asian contract labourers, legally bound to a single employer and subject to totalitarian social controls. Dubai's luxury lifestyles are attended by vast numbers of Filipina, Sri Lankan and Indian maids, while the building boom (which employs fully one-quarter of the workforce) is carried on the shoulders of an army of poorly paid Pakistanis and Indians, the largest contingent from Kerala, working twelve-hour shifts, six and a half days a week, in the asphalt-melting desert heat.

Dubai, like its neighbours, flouts ilo labour regulations and refuses to adopt the international Migrant Workers Convention. Human Rights Watch in 2003 accused the Emirates of building prosperity on 'forced labour'. Indeed, as the Independent recently emphasized, 'the labour market closely resembles the old indentured labour system brought to Dubai by its former colonial master, the British.' 'Like their impoverished forefathers', the London paper continued, 'today's Asian workers are forced to sign themselves into virtual slavery for years when they arrive in the United Arab Emirates. Their rights disappear at the airport where recruitment agents confiscate their passports and visas to control them.' [45]

In addition to being super-exploited, Dubai's helots—like the proletariat in Fritz Lang's Metropolis—are also expected to be generally invisible. The local press (the uae ranks a dismal 137th on the global Press Freedom Index) is restrained from reporting on migrant workers, exploitative working conditions, and prostitution. Likewise, 'Asian labourers are banned from the glitzy shopping malls, new golf courses and smart restaurants.' [46] Nor are the bleak work camps on the city's outskirts—where labourers are crowded six, eight, even twelve to a room, often without air-conditioning or functioning toilets—part of the official tourist image of a city of luxury, without poverty or slums. [47] In a recent visit, even the uae Minister of Labour was reported to be shocked by the squalid, almost unbearable conditions in a remote work camp maintained by a large construction contractor. Yet when the labourers attempted to form a union to win back pay and improve living conditions, they were promptly arrested. [48]

Dubai's police may turn a blind eye to illicit diamond and gold imports, prostitution rings, and shady characters who buy 25 villas at a time in cash, but they are diligent in deporting Pakistani workers who complain about being cheated out of their wages by unscrupulous contractors, or jailing Filipina maids for 'adultery' when they report being raped by their employers. [49] To avoid the simmering volcano of Shiite unrest that so worries Bahrain and Saudi Arabia, Dubai and its uae neighbours have favoured a non-Arab workforce drawn from western India, Pakistan, Sri Lanka, Bangladesh, Nepal and the Philippines. But as Asian workers have become an increasingly restive majority, the uae has reversed course and adopted a 'cultural diversity policy'—'we have been asked not to recruit any more Asians', explained one contractor—to reinforce control over the workforce by diluting the existing national concentrations with more Arab workers. [50]

Discrimination against Asians, however, has failed to recruit enough Arabs willing to work at the lowly wages ($100 to $150 per month) paid to construction labourers to meet the insatiable demands of the exploding skyline and half-built mega-projects. [51] Indeed the building boom, with its appalling safety record and negligence of workers' most basic needs, has incubated Dubai's first labour rebellion. In 2004 alone, Human Rights Watch estimated that as many as 880 construction workers were killed on the job, with most of the fatal accidents unreported by employers or covered up by the government. [52] At the same time, the giant construction companies and their subcontractors have failed to guarantee minimum facilities for sanitation or adequate supplies of potable water at remote desert labour camps. Workers also have been exasperated by longer commutes to worksites, the petty tyranny (often with a racial or religious bias) of their supervisors, the spies and company guards in their camps, the debt-bondage of their labour contracts, and the government's failure to prosecute fly-by-night contractors who leave Dubai or declare bankruptcy without paying back wages. [53] As one embittered labourer from Kerala told the New York Times, 'I wish the rich people would realize who is building these towers. I wish they could come and see how sad this life is.' [54]

The first tremor of unrest came in fall 2004 when several thousand Asian workers courageously marched down the eight-lane Sheikh Zayed Highway toward the Ministry of Labour, only to be met by riot police and officials threatening mass deportations. [55] Smaller demonstrations and strikes, protesting unpaid wages or unsafe working conditions, continued through 2005, drawing inspiration from a large uprising of Bangladeshi workers in Kuwait during the spring. In September, an estimated 7,000 workers demonstrated for three hours, the largest protest in Dubai history. Then, on 22 March 2006, bullying security men ignited a riot at the vast Burj Dubai tower site.

Some 2,500 exhausted workers were waiting after the end of their shift for long overdue buses to take them back to their dormitories in the desert, when the guards began to harass them. The enraged labourers, many of them Indian Muslims, overwhelmed and beat the guards, then attacked the construction headquarters: burning company cars, ransacking offices, destroying computers and smashing files. The following morning, the army of labourers defied police to return to the site, where they refused to work until Dubai-based Al Naboodah Laing O'Rourke raised wages and improved working conditions.

Thousands of construction workers at a new airport terminal also joined the wildcat strike. Although some minor concessions along with draconian threats forced most of the labourers back to work at the Burj Dubai and the airport, the underlying grievances continue to fester. In July, hundreds of labourers at the Arabian Ranches project on Emirates Road rioted to protest the chronic shortage of water for cooking and bathing at their camp. Other workers have held clandestine union meetings and reportedly threatened to picket hotels and malls. [56]

The unruly voice of labour echoes louder in the deserts of the uae than it might elsewhere. At the end of the day, Dubai is capitalized just as much on cheap labour as it is on expensive oil, and the Maktoums, like their cousins in the other emirates, are exquisitely aware that they reign over a kingdom built on the backs of a South Asian workforce. So much has been invested in Dubai's image as an imperturbable paradise of capital that even small disturbances can have exaggerated impacts on investors' confidence. Dubai Inc. is thus currently considering a variety of responses to worker unrest, ranging from expulsions and mass arrests to some limited franchising of collective bargaining. But any tolerance of protest risks future demands not just for unions, but for citizenship, and thereby threatens the absolutist foundations of Maktoum rule. None of the shareholders in Dubai—whether the American Navy, the Saudi billionaires, or the frolicking expats—want to see the emergence of a Solidarnosc in the desert.

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A version of this essay will appear in Mike Davis and Daniel Monk, eds, Evil Paradises: The Dreamworlds of Neo-Liberalism, to be published by New Press in 2007. -- Yoshie <http://montages.blogspot.com/> <http://mrzine.org> <http://monthlyreview.org/>



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