Globalization, Political Islam, and Moderation: The Case of Muslim Democratic Parties

In this article, I examine the rising significance of a moderate kind of Islamist party emerging in the Middle East in recent years—Muslim democratic parties—and, the factors underlying their electoral success. In this, the manuscript takes a closer look at an important constituency of Islamist parties, the small and medium business owners (smes). Briefly, I argue that smes’ support underlies the success of moderate Muslim democratic parties as opposed to more conservative Islamist parties, and what determines smes’ support for a moderate party is the change in their political preferences. The change in sme preferences, I show, is due to the form that economic liberalization takes, whether economic liberalization is more inclusive (what I call competitive liberalization) or exclusive/selective (what I call crony liberalization). Empirically, I rely on original field interviews I conducted with party officials and business owners in Egypt, Morocco, and Turkey. I also integrate primary sources such as party publications into the analysis.

Economic liberalization and political moderation

Although economic liberalization has been argued to promote political liberalization, this relationship is poorly understood and we do not consistently observe greater economic openness leading to more open and moderate political systems. We examine the connection between liberalization and moderation in the context of Islamist and Communist parties, both of which are characterized by ideologies opposed to democracy and the market. When will these ideological parties moderate by adopting more pragmatic agendas? We argue that competitive liberalization spurs the emergence of more moderate parties, but crony liberalization does not. In support of this, we use two sets of most different case comparisons in which we compare two instances of competitive liberalization (Turkey and Hungary) and two instances of crony liberalization (Egypt and Bulgaria). Our research offers an important clarification to existing explanations and a more generalizable theory of how and why liberalization is linked to political moderation.

Reluctance to Lead: U.S. Trade Policy in Flux

The U.S. is no longer providing leadership in trade policy. In recent years, we have seen a sharp turn toward a rapid proliferation of bilateral preferential trade agreements, accords that are likely to undermine the World Trade Organization (WTO). By pursuing a strategy of ‘competitive liberalization’ both on a sectoral basis under the Bill Clinton administration, and then a policy of seeking bilateral arrangements under the George W. Bush administration, this article argues that American administrations have undermined the coalition for free trade in the United States. Consequently, protectionist industries including textiles, steel, and agriculture have made further liberalization more difficult and thus the prospects for promoting continued trade liberalization have grown dimmer.

The Rise of Asian Emerging Countries in the Global Economy: Implications for the Multilateral/Regional Trade Regime

This article first considers the process of competitive liberalization, which has driven the trend toward free trade and which has contributed to further integration of world economies. It illustrates that the trading system is highly competitive, with nations from North America, Europe and Asia seeking to sustain economic growth through greater reliance on export trade and through MNCs’ global value chains of production. The first section emphasizes that regionalism has strengthened worldwide, with the major economic players tending to focus on regional agreements, and more recently, on bilateral agreements. Next, the article discusses regionalization patterns, with an emphasis on the integration taking place in Asia. The major trade bloc in the region, the Association of Southeast Asian Nations (ASEAN), is focusing on increased integration into the global economy. In recent years, it has been promoting trade agreements with Japan, South Korea, and the emerging Asian countries of China and India, among others. Therefore, the article considers whether a new economic pole is emerging in Asia. Last, the difficulties in concluding the Doha Development Round of World Trade Organization (WTO) negotiations and the stalling of those negotiations from July 2006 to February 2007 point to an urgent need for global governance and supportive institutions. This article looks at critical issues in the global system, such as full participation of all players (particularly emerging and developing countries) in the decision-making process of international institutions, and the pursuit of sustainable development. Also, the impact of different cultures of trade will be important factors to consider in order to understand the emerging new world order.