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Airline fiasco, mergers and the goddamn free trade illusion

By: Qwaider

On:Wednesday, April 16, 2008 5:37:32 AM
In:Thoughts
Viewed: (4736) times

Currently 4.8/5 Stars.
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Rated 4.8/5 stars (70 votes cast)

Here is a scary thought, Airline industry in the US is NOT open for international air carriers. Do you know how stupid and hypocritical that is for the US support for WTO and free trade mambo jumbo? It's a glaring proof that there are certain local industries that must be protected. But the rest of the world doesn't have this luxury, they just have to strip naked and spread their arms and legs for external investors to come and "pollinate" their flowers to become a rising economy!

Few US airline companies are filing for bankruptcy, a couple getting a merger but the only constant through out all of this is..... the crappy service, disguising flight, and complete disrespect to the passengers. (not to forget the soaring prices of tickets and blackouts). I'm telling you, even my most horrible experience on THY was a 100 times better than my best experience with domestic flights in the US

But I'm sure a bunch of people are going to jump on my case in support for globalization and how it's the solution for everything we're facing... Well, it's not freakin working!

OK, how long do we have to wait for the wonders of globalization to start kicking in? The situation in Jordan is getting worse every minute. The country is being sold like an old scrapped car. Getting chopped up by private 'foreign' investors. Everything is getting privatized left, right and center.

The subsidies have been lifted, and the whole investment scene is very pathetic. It resembles an "open for 24/7" cheap motel with vacancy light flickering in the middle of the night. People are unable to afford a room there, but rich passers by are welcome to stay with their prostitutes and they're welcome to leave a tip

What many people fail to understand is that foreign investments are focused on one thing and one thing only profit. The faster it's realized the better. Even if this was at the expense of the country, the environment or the people. It's just happening at a faster pace these days.

The US domestic airline industry is a living proof if not an example to follow by our countries. We don't need to open up to everything and everyone. The government also needs to own to some of it's responsibilities even if that meant providing subsidies at a loss. These are much needed reforms, and I'm afraid it's already too late!

It might not be long before strikes similar to the one we saw in Egypt start creeping into the region. Add to the the amazing amount of instability in the neighbouring countries and you will wake up on a disturbing realization; If the country is being chopped and sold like that then is there something that the decision makers are not telling us!? Are there some serious threats that is pushing them into doing everything NOW and taking all that cash? Has someone tipped them that we're in a use it or lose it situation? Because, someone auctioning the whole country like that has some sort of a secret!

All I can say is, Allah yustor. (May god have mercy on us)

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Memories....

#1
KJ
Said
On: 4/16/2008 8:45:34 AM

Globalization isn't really the solution to all problems we're facing. It had its benefits and we've also seen the worst of globalization, mostly loss of identity.

I believe that many countries are being sold like scrapped cars because of neoliberalism. You can't really blame them, because governments are not always the best in efficiently and sole-handedly managing the country's economy. Combine that with the illusion of democracy and free trade then you got yourself people who want to capitalize the most out of the resources, while also crossing borders to make local life "better" - with increased prices.

Globalization was a good thing post WWII but it has literally nuked itself out of proportion and most economies are suffering because the so-called globalization is more or less Americanization, Chinazation and Taiwanization. And let's not forget our friends at Sony.

#2
Mohanned
Said
On: 4/16/2008 5:43:07 PM

Q,
What is your definition of globalization? You can't assume that it is wrong or bad to adopt new economic models based on failed examples due to corruption, mismanagement, and resistant cultures!

Last time I checked you can't survive by depending only on yourself, also all other econmic models FAILED. The beauty of the free market is that it is self healing, and once you interfere you mess up the whole thing while assuming that the basics failed!

#3
Qwaider
Said
On: 4/16/2008 6:31:37 PM

Before I answer your question, can you give me an example of a truly and completely free market?
As I have demonstrated above, not even the US (who's leading the crusade) is abiding by free market practices, so why should anyone else?

Also, can you point out to me any country (Arab or 3rd world) who has actually benefited at the citizen level from free trade?

It appears to me that this was another hype that was shoved down our throat as we were being exploited. While THEY protected their markets.

Remember the UAE deal to manage the California ports? And now the airline businesses being protected from external competition, and of course not to mention the farmers in the USA. So why again are we "encouraged" to go down that route again?

The Achilles heel of free trade as I can see it is exploitation, and there doesn't seem to be anything any one can (or is willing) to do anything about it

#4
Mohanned
Said
On: 4/16/2008 6:53:30 PM

Here is a list and if you see the highest score is 90%, which proves that there is no 100% free market in the academic term. But you have to keep in mind that those 3rd world countries that you refer to are still in the third world not because of free market. Take the case of jordan which on the list comes at 58; the government still controls much of the economy, bureaucracy(The bad aspects of it), corruption, culture, education, etc... On the other hand take Irland or singapore and look what they were able to achieve because of the free market.

That being said you can't ignore that jordan benifited from the free trade even if marginally, but it is the long term investemnt and technology migration that matters most. The latest example from our beloved jordan: http://www.tradearabia.com/news/HEAL_141912.html

And the new calling center which will employ thousands.
Also let me point to dubai(which I think is a bubble) but you can't ignore that economic freedom played and important role in what is happening over there.

My whole point qwaider: Don't blame the concept, blame the failures to implement the concept, that being said the welfare state is suitable for countries that want to be lazy, have many resources, and want to be left alone, and as far as I know those kinds don't exist and even if so the will fail sooner or later.

Also, what is the support for you premise that globalization failed?

#5
Mohanned
Said
On: 4/16/2008 7:00:53 PM

http://www.heritage.org/research/features/index/chapters/pdf/index2008_execsum.pdf

Thats the list :)

#6
Qwaider
Said
On: 4/16/2008 7:04:51 PM

Why do we have things like Globalization to begin with? To stabilize societies, and economies and make sure there's a level of social justice to all.
I don't see that happening anytime soon in Jordan due to Globalization. In fact, I see it getting worse than when we started.

The failure of Globalization is also due to it marketing a one size fits all concept when in fact that is completely not possible.

What I think is that the countries, smaller more vulnerable ones who are smaller than some of these corporations have a level of protection for their internal markets. Opening the doors like that means the poor are going to be pushed beyond the threshold and will get exploited in every possible way

Of the G8, how many have opened their markets completely?
The success of Ireland and Singapore can't be attributed to globalization, these folks have been successful before globalization started. Same goes for Hong kong and Taiwan, but the poor nations. (Jordan included) have remained at the bottom. Yes, we're probably better than Mozambique, but we were better also before this whole thing started

Dubai is really nothing to measure by, everything that is going there is unnatural. I think we agree on that

#7
Mohanned
Said
On: 4/16/2008 7:16:13 PM

Worse; the question becomes why did we end up worse than before? Is it because of the free market? The answer is no, and I think you know why!

Also, the oil crisis right now is good, you know why?

Lets look at china and india? Was globalization good or bad for them? Ireland, singapore and their alike benifited very much from the free market, they planned and their plans paid off, you can't dismiss facts by saying they were like that before coz for starters Irland sucked in the 80's, but they invested heavily in education, opened their markets, minimized the government's role, and enforced flexible regulations: The result one the best R&D centers in the world..

Now, Jordan has an FTA with the US? How much did we benifit from it? Not much? Is because of the agreement? No..We have the QIZs which zero to the economy, and most of our exports go through the QIZs not the FTA..Why can't we jordanians take the initiative and import to the US?

Our failure is due to: bad planning and bad implementation.

#8
Mohanned
Said
On: 4/16/2008 7:18:29 PM

I forget to type some words so forgive me..I say them in my mind and assume that they will appear on the screen :)

#9
Qwaider
Said
On: 4/16/2008 7:26:36 PM

It's not too late, type them... now :)

That's an even worse question. Why did we fail? Maybe because the theory is wrong and can't be implemented? Maybe because it doesn't cater for the poorer less fortunate in this world? Maybe because it doesn't have any provisions to protect the poor from exploitation?
Or maybe (and this is a big possibility) we're pathetic losers who can' do anything to save our own skin and therefore, we deserve to get extinct!

#10
Mohanned
Said
On: 4/16/2008 7:35:07 PM

I wouldn't define it as a theory. Your questions go back to basis of sucess in any venture: You can't compete if your education system is built on makromehs, cracked schooling system, and less than average teachers. You can't compete when there is corruption. You can't compete when there is no accountability. You can't compete when there is no transperancy. You can't compete when you are dependent on aid. You can't compete when no one cares. You can't compete when the population is frustrated and can't do anything about it.....The list is long, but your last senetnce summarizes the situation.

#11
Qwaider
Said
On: 4/16/2008 8:29:14 PM

What do you think of the rest of the article where I feel something ominous is going on with all these fast cash schemes. Are we on the verge of major collapse in Jordan?

#12
Mohanned
Said
On: 4/16/2008 8:57:04 PM

I don't think so, and that's only my gut speaking. I hope that the perception that we are on the verge of a major collapse will lead us to better planning and management. But the reality is sad, take for example how the government will handle the rising food prices: They created a new governmental entity to import stuff and sell it to the people at the cost price, sounds good right? Well, no, this is going to be disasetrous on many levels, but this manifests the "shalfaga" mentality.

What the government is doing is a major cooptation plan: New houses initiatives(Trailer trucks basically), duty free cars for the army, social security net, free medical care at the arny hospitals, creation of committees and appointing thousands of people..In other words they mastered it, but can they sustain the current situation? This question will be answered when we know the amount of aid we will be getting from the US(There is some talk that it will go up to 900 mil a year)..

#13
Qwaider
Said
On: 4/16/2008 9:45:11 PM

I don't share your optimism. Allah yustor. That's all I can think of

#14
Mohanned
Said
On: 4/16/2008 10:16:11 PM

Me, optimism? Hahaha..

#15
4 gotton
Said
On: 4/17/2008 6:18:48 AM

NOT TO CHANGE THE TOPIC HERE BUT THERE IS 7 REASONS WHY ONE HAS CHOSEN THE WRONG AIRLINE.
1- GROUND CREW SEEN USING PENNIES TO CHECK TIRE WEAR.
2-UPON CLOSER INSPECTION TRENDY DESERT-PASTEL PAINT JOB TURNS OUT TO BE PRIMER YELLOW AND BONDO PINK.
3-MAN WITH OILY RAG HANGING FROM THE BACK POCKET OF HIS DIRTY OVERALLS TURNS OUT TO BE THE PIOLOT.
4-VOICE ON THE P.A.SYSTEM WARNS YOU TO KEEP YOUR HANDS AND ARMS INSIDE THE AIRCRAFT WHILE IT IS IN MOTION.
5-JUST BEFORE TAKOFF , THE FLIGHT ATTENDANT OFFERS COFFEE, TEA OR VALIUM.
6-AIR SICKNESS BAGS ARE PRINTED WITH THE LORDS PRAYER.
7-PIOLET ASKS ANYONE ON BOARD IF THEY HAVE JUMPER CABLES WITH THEM.

LOL JUST A JOKE...................BUT IT ACTUALLY COULD HAPPEN SOON

#16
hamede
Said
On: 4/17/2008 8:32:45 AM

Is that it!?.

#17
Qwaider
Said
On: 4/17/2008 9:24:12 AM

The discussion is never over. But I guess more and more people are simply .. in agreement

#18
Mohanned
Said
On: 4/17/2008 5:18:43 PM

Hamede,
haha, do you have something to add? The disagreement between me and qwaider is minimal and philosophical. I tend to believe in Capitalizem and free market, while he has some doubts. But we all agree that we have problems that go beyond this, take for example: education, corruption, lack of real citizen participation, no accountability, etc... If we focus on those issues instead of arguing whether globalization was bad or good for jordan we will be in a better place.