China May Need a Bigger Bazooka: Why the Arab World Is Lost in an Emotional Nakba, and How We Keep It There

China May Need a Bigger Bazooka: Why the Arab World Is Lost in an Emotional Nakba, and How We Keep It There

The recent stock-market rout in China has raised concerns about the effectiveness of quick stimulus measures. It has become clear that this crisis cannot be fixed by a simple injection of funds or economic policies. Instead, it requires a more comprehensive and strategic approach.

In analyzing China's experience, there are valuable lessons to be learned for other countries, including India. One of the main takeaways is the danger of overconfidence. China, with its rapid economic growth and rising global influence, had come to believe that it was invincible. However, the recent market crash has exposed the vulnerabilities in its financial system and the need for a stronger response.

Similarly, the Arab world finds itself lost in an emotional Nakba, a term that refers to the catastrophe experienced by Palestinians in the creation of the state of Israel. This emotional Nakba has kept the Arab world in a state of perpetual conflict, preventing progress and hindering the development of liberal societies.

While it is true that honor and shame values exist in every culture, in some societies, they are openly promoted and upheld as the dominant voices. This promotion of honor/shame values militates against liberal society, where individual freedoms and progress are highly valued. This mindset has created a vicious cycle of violence and an inability to move forward.

To address these challenges, both China and the Arab world need a bigger bazooka. They need to adopt a more holistic approach that goes beyond short-term fixes and instead focuses on long-term structural reforms. Here are three actionable pieces of advice for both China and the Arab world:

• 1. Embrace transparency: Both China and the Arab world need to prioritize transparency in their financial systems and governance. This will help build trust among investors and create an environment conducive to sustainable economic growth.

• 2. Promote inclusive institutions: To break free from the emotional Nakba, the Arab world needs to promote inclusive institutions that respect individual rights and foster economic opportunities for all. By embracing diversity and inclusivity, the Arab world can unleash its potential and create a more stable and prosperous future.

• 3. Invest in education: Both China and the Arab world should prioritize investment in education. By equipping their citizens with the necessary skills and knowledge, they can foster innovation, entrepreneurship, and economic diversification. Education is the key to unlocking human potential and driving long-term growth.

In conclusion, the recent stock-market rout in China and the emotional Nakba in the Arab world highlight the need for a bigger bazooka. Quick fixes and overconfidence are not enough to address these complex challenges. Instead, a more comprehensive and strategic approach is required, focusing on transparency, inclusive institutions, and investment in education. By taking these actions, both China and the Arab world can overcome their current obstacles and pave the way for a brighter future.