The historic Arab trade-off: Knowledge for oil

It is time for the Arab world to invest in its longterm future, which can only be found in knowledge production, as fossil fuels run out

If Arabs want to recover from this current historic slump, there is no other way but to adoptthe goal of integrated Arab development by buildingtheir capability of knowledge acquisition. In other words, Arabs must recover through exchanging oil and rent appropriation for knowledge generation as part of aconsciousproject of Arab renaissance through effective Arab integration.
No doubt accomplishing such a human renaissance inthe Arab world will require nothing less than a revolution in political outlooks across the Arab landscape, rebuilding thelegal and institutional infrastructure of joint Arab action to move inthe direction of effective Arab integration, and to achieve joint goals efficiently. Thishistoric endeavour also requires capital to transfer a vision into a living reality.
Knowledge is acquired through two main methods: first, education, scientific research, and technology development.Knowledge also comes from people, but which people? Notthe ignorant onthe margins of modern life butthe learned innovators, pioneers and action-takers. Hence, some people will enterthe Age of Knowledge as leaders and masters while others will become followers and slaves. At this juncture we should ask ifthe Arabs will rise or fall among other nations inthe coming era?
It is clear thatthe trade off suggested inthe headline of this article is logical and indeedhistoric.The fate of vast oil revenues in oil-producing Arab states relies on several factors, such as world demand for oil, future discoveries of deposits and extraction patterns, and advances in the production and economy of alternative energy. So far, known and confirmed reserves indicate that fossil fuel wealth in Arab states will undoubtedly be depleted, perhaps in one or two generations at most for crude oil.
Many concerned Arabs have wondered what will be the fate of Arab states, especially oil producers, oncethe oil runs out. Knowledge, however, is inexhaustible and is continuously renewable to create progress and advancement. Thus,the proposedtrade-off (knowledge for oil) is a winning exchange to initiate a renaissance inthe Arab world.
No single Arab state alone would be able to acquire a prominent capability in knowledge generation; oil-producing countries especially will not be able to accomplish thishistoric endeavour by themselves. Success will only be possible through integrating Arab capabilities acrossthe Arab world. Indicators show that some ofthe poorest Arab states in terms of capital scorethe highest on international knowledge generation indices, such as being published in reputable scientific journals and patent applications.
While fossil fuel reserves are concentrated in certain regions inthe Arab world, revenues from oil and gas have directly shaped the rate and nature of economic growth in non-oil-producing Arab states as well. This happened through labour migration to Gulf States and aid from oil-producing states to struggling Arab countries.There is no doubt that oil revenues and vast capital assets have influenced regional politics inthe Arab world, andrelations ofthe Arab bloc onthe international stage.
Everyone should realise that this God-given gift should not be squandered on buying expensive weapons that will be left to rust, while foreigners are called in, at a price, to defend Arab states wheneverthey are under threat. Or revenues are used to invest in Western economies that, despitetheir declared values and principles, do not genuinely sympathise withthe rights ofthe Arabs. Meanwhile, Arab capital inthe West is subject to depreciation during global financial crises or inthe countries where itresides.
The time has come to utilise the resource gift Arabs possess in creating a long and prosperous future for themselves. Arab revenues from oil and gas exports in 2010 were estimated at about $502 billion, divided among 14 exporter countries.
One possibility is that a portion of oil and gas revenues in all Arab states should be deposited in an "Arab Integration Assistance Fund" to be used in building a productive knowledge society acrossthe Arab world, that would guard theArabic language and culture from stagnation and resuscitatethem. If this fraction could begin at 10 per cent,the fund would have nearly $50 billion a year. This is not a huge percentage, considering it is an investment in a better future forthe entire Arab nation.
To compare, one need only look atthe weapons purchases of only four Gulf States fromthe US alone inthe next four years, estimated at $123 billion (as reported byThe Financial Times). Meanwhile, sovereign wealth funds of oil-producing Arab states in 2007 were estimated at about $3 trillion, and were predicted to reach $12 trillion by 2015 (Morgan Stanley estimates, 2009). A small percentage ofthese sovereign wealth funds would be enough to coverthe entire budget ofthe proposed fund for many years to come.
As forthe revolution in political outlook that is needed to accomplish this human renaissance project based oneffective Arab integration, we can assume that it has started already asthe tide of liberation sweeps acrossthe Arab nation. It has already achieved successes that were unexpected by any standards, starting with the glorious people's revolution in Tunisia atthe beginning of 2011 that inspired other Arab uprisings.
While it is true that not allthe uprisings have concluded in a victorious successful people's revolution, and some revolutions are seriously struggling in what seems like a minor civil war,the engine of liberation has started and no one can stop it.
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