The decision by Dubai Ports World to buy a British company and take over management of six U.S. ports has been met by heated opposition. The political criticism has been “dressed up” as a security issue, but it is nothing short of racist.
The controversy has exposed a troubling hatred toward Arabs- and Muslims in general – but more so of Arab countries, even if those who are friends of the United States and support U.S. efforts to combat terrorism, as the United Arab Emirates does. Members of Congress can argue that their opposition has nothing to do with the buyer being Arab, but that is hard to believe. Democrats and Republicans are trying to outdo each other to shore up their “pro-security” credentials at the expense of the Arab and the Muslim worlds. Suddenly, one-fifth of the world population has been indicted and declared “guilty by association.”
None of the facts justifies opposition to the Dubai purchase. It is just another part of the globalization train: We are either on it or we will be left behind. We already owe so much money to foreigners, resulting in capital inflows that feed our ballooning budget and trade deficits. Perhaps we should learn to live within our means instead of trying to make up excuses as to why an Arab state cannot buy assets in the United States.
If the Gulf states, flush with oil revenues, decide to suddenly unload their equity and their debt holdings in the United States, we will see the reverberations throughout the financial markets – and it will not be pretty.
For those who claim that U.S. security is being outsourced to foreigners, let us simply say that nothing is being outsourced. The U.S. ports will still be in the United States. U.S. customs will still be here and will be the only authority to inspect incoming cargo.
Finally, dock workers will still be right here, and no one from the UAE will be seen unloading containers from ships.
The purchase by the UAE company is just another business transaction for that country, in its quest to diversify its global investments. It already owns assets around the globe, particularly in Asia. If we chase its money away under the guise of protecting the homeland, others will be more than happy to welcome it.
If those who are opposed to the sale of the British company educated themselves about the UAE – and the Arab and Muslim world, for that matter – they would find that far from being an al-Qaeda sympathizer, the UAE itself is already in the cross-hairs of that group. just as the U.S. is. The UAE is a supporter of the U.S. in its global effort to defeat terrorism, and its cooperation goes further than many other allies. It is one of a few countries – and the first Arab country – that has committed itself to the Container Security Initiative, which allows agents from the U.S. Customs and Border Protection agency to check cargo leaving the UAE.
In short, we are witnessing political posturing at its worst and all at the expense of the UAE because it is an Arab country. Instead of exploiting the fear and insecurity that some may rightly feel in a post-Sept. 11 environment, perhaps the same politicians who are decrying this transaction should actually welcome it. When the economic interests of the world community are tied to each other, we all gain.
Maybe Mark Twain was right when he said: “Suppose you were an idiot and suppose you were a member of Congress. But I repeat myself.”
Mohammed Akacem is professor of economics at Metropolitan State College of Denver.
