Dateline Dubai

The current economic and social situation in Iraq was a major focus of the annual meeting of the Board of Governors of the World Bank Group and in the International Monetary Fund (IMF) in Dubai, the United Arab Emirates. The keynote address was delivered by Sheikh Hamdan Ibn Rashid Al-Maktoum, deputy Emir of Dubai and minister of finance and industries. He emphasised that the selection of the UAE as venue for the meeting reflected the integration of the Arab world, and particularly the Gulf, in the global economy. He also noted that peace in the Middle East and political stability in Iraq was essential for the economic uplift of the region. However, the announcement at the meeting that Iraqi assets, including the country's oil industry, were "up for sale" was greeted with a measure of acrimony.

Israel's unprecedented participation in the meeting was a source of controversy. It was initially unclear whether the delegation would be headed by Israeli Finance Minister Benjamin Netanyahu or Israel Governor David Kline. Dubai was not particularly looking forward to Israel's attendance, since it was apprehensive about Netanyahu making controversial hard-line statements about the Palestinians, particularly now that the peace process has reached an impasse. The Israeli delegation, however, was headed by Meir Sheetrit, minister without portfolio.

The Iraqi delegation, led by Adel Abdel- Mahdi, a member of the Interim Governing Council (IGC) -- who appeared upbeat and confident about prospects for Iraqi economic recovery -- met with the heads of the IMF and the World Bank, United States Secretary of Treasury John Snow and several other ministers from the Arab world.

Iraqi Minister of Finance Kamel Al- Kilani, also a member of the Iraqi delegation, said his country hoped to obtain US$70 billion in financial commitments, while Abdel-Mahdi announced that Iraq had an accumulated foreign debt of US$100 billion. This does not take into account the US$300 billion Iraq is required to pay for compensation and losses in relation to its invasion and occupation of Kuwait.

All delegates expressed eagerness to support Iraq, and there was an implicit recognition of the legitimacy of the US-backed governing council. World Bank President James Wolfensohn declared his support in principle for Iraq and also called upon the nations of the world to reach out and help.

Wolfensohn, however, declared that it was too soon to estimate the cost of the reconstruction the country and that, "the situation is still unclear. We have not yet agreed to assistance for Iraq, but the World Bank and the IMF have made great efforts to assess the circumstances."

British Secretary of the Treasury Gordon Brown for his part stressed the need for all nations of the world to participate in the reconstruction of Iraq and urged the IMF to assume a major role in these plans. Brown went on to exhort the participants to "exert all possible efforts towards helping the people of Iraq". France, Germany, Russia and a host of developing countries -- not all of which recognise the legitimacy of the IGC -- insisted on the UN, rather than the IGC, overseeing the reconstruction of Iraq.

The conspicuous absence of anti- globalisation protesters in Dubai took the organisers by surprise. The authorities in Dubai had expected activists to arrive in their thousands, and large air-conditioned tents and numerous umbrellas were set up in a massive square to protect the protesters from temperatures that often reach 40¡C.

The square, however, remained empty, since activists had decided instead to hold direct talks with delegates of the meeting. Representatives of the would-be protesters, including Palestinian human rights activist Mustafa Al-Barghouti, held two meetings with the international financiers, and only a total of 90 anti-globalisation activists showed up in Dubai.

Speaking to Al-Ahram Weekly, official UAE sources denied that the UAE had dissuaded protesters from coming. The sources went on to say that the UAE would have gladly hosted the activists -- whose role is recognised by international organisations -- to demonstrate its political tolerance.

The UAE, continued these sources, had agreed to permit 50 non-governmental organisations (NGOs) to participate in the talks. However, the authorities turned down a request for representatives of these NGOs to be hosted for free.

Various reasons were given for the protesters staying away, one of them being that Dubai was simply too difficult to reach for activists living in Europe and the US. But speaking to the Weekly, Mustafa Al- Barghouti accused the World Bank of imposing restrictions on NGO participation in the meetings. Al-Barghouti added that, "despite these restrictions, the international anti- globalisation movement has succeeded in making its presence felt at the Dubai meetings, and has managed to live up to its role as representative of civil society in the Third World." He went on to say that the movement had managed to consult and initiate dialogue with both the World Bank and the IMF.

According to Al-Barghouti, this is part of a two-prong approach -- protest and dialogue -- which anti-globalisation protesters use to deliver their message to the World Bank and the IMF. "Both approaches were employed in Cancun." Dialogue, however, is the preferred approach in Dubai.