Asians in the Arab world: Labor migration and public policy

Abstract

Ten years after the first oil price rises were declared in 1973 the countries of the Middle East were still struggling to understand the implications of these momentous events. Economic changes induced by events of 1973 created a dynamic process that fundamentally changed both the view of, and the reality in, the Arab world. The economic development of the region is critically tied to manpower requirements; many of the bottlenecks and constraints on economic growth stem directly from the flow of labor across national boundaries. The appearance of increasing numbers of South and East Asian workers in the Arab Gulf represents the most important recent change in the labor markets of the region. The new flows of Asian labor, beginning around 1975, were partly a response to market conditions and partly fueled by political concerns. Arab labor exporters could not fully meet the demand for labor. In addition, Asians had a distinct political advantage: Asian workers were unlikely to make claims for citizenship. Asians were alien and could continue to remain disenfranchised. They were regarded as more likely to be passive observers of political processes rather than as potential activists or claimants on social services and other benefits of citizenship. Now, at the time of writing, in 1983, there emerge signs of yet another change. The Middle East press reports new labor agreements among Arab countries as well as criticism of the large number of Asians. These signs must be interpreted with caution. If such a reaction is occurring it may be politically motivated. For example, while Arab labor contractors might now become almost as effective as their Asian counterparts, they are unlikely to have surpassed them. To fully appreciate the implications of the Asian presence, it must. be placed in the context of migration processes in the Middle East. This article presents the view from the Middle East by reviewing the migration processes of the past decade and highlighting the initial issues of political economy emerging from the large-scale movement of labor across national boundaries. The major policy issues are then identified, as an essential requisite for making cautious assessments regarding future prospects.