The Role of Business in the Arab Spring

Speakers

• Joel Brinkley, Hearst Visiting Professional in Residence, Department of Communication, Stanford University
• Peder Michael Pruzan-Jorgensen, Managing Director, Europe, Middle East, and Africa, BSR (Moderator)

Highlights

• To date, Western businesses have not been large players in the Arab world for various reasons including: widespread poverty, oppressive governments, and the negative reputation of the United States and the West throughout the Middle East/North Africa (MENA) region.

• Due to the protests related to the Arab Spring, many industries that were once supported by oppressive governments in Tunisia, Libya, and MENA countries will no longer receive that same level of support as new leaders come to power in the region. This is an opportunity for Western companies to play an increasingly large role to help to stabilize the region.

• The private sector has an opportunity to create the jobs and fulfill the aspirations of the protestors in the Arab Spring.

Memorable Quotes

“Businesses in most of these countries [Libya, Tunisia, Egypt, etc.] were tools of the government—mostly corrupt. If operating in these countries … you have a moral responsibility to show yourself as a model for corporate engagement.” —Joel Brinkley, Stanford University

“Without patronage from the government, some of the state-supported industries are likely suffering right now. This is an opportunity for Western business.” —Joel Brinkley, Stanford University

“I would look to Libya and Tunisia as an opportunity to set up a small presence [in country], but also be prepared—since these issues can change so quickly—to either pull out or expand … establish a presence without huge cost … make yourself known … and be prepared to move up or out, depending on the situation.” —Joel Brinkley, Stanford University

Overview

Pruzan-Jorgensen opened the session by providing an overview of the recent wave of demonstrations and protests throughout the Arab world, now referred to as the Arab Spring. He mentioned Mohamed Bouazizi, a Tunisian street vendor who set himself on fire December 17, 2010, and credited him as a catalyst for the Tunisian Revolution and the broader Arab Spring movement. Pruzan-Jorgensen then introduced Brinkley to speak about his perceptions of how the Arab Spring is bringing about change in MENA, along with the implications of those changes on business and commerce in the region.

Brinkley described the events of the Arab Spring, but cautioned the audience to think twice before assuming that these protests will bring about quick and sweeping change in the region. Brinkley pointed out that democracy cannot take off in any country unless its leaders and its people really support that democracy. He went on to say that the rallying cry of the Arab Spring protests—as translated by Western journalists—was that they were a call for democracy, but Brinkley disagreed with this classification. While democracy was part of the inspiration, he said, the protestors were really pushing for dignity, prosperity, and freedom.

He continued by saying that Western businesses have not been large players in the Arab world to date due to widespread poverty, oppressive governments, and the negative reputation of the United States and the West throughout the MENA region. After the Arab Spring protests, Western companies now have the opportunity to play a role in helping to stabilize the region. However, Brinkley warned of the risks of ousted leaders coming back to power.

In the Q&A segment, Pruzan-Jorgenson asked Brinkley to comment on how he sees the role of business in MENA changing as a result of the Arab Spring protests. Brinkley responded that business will definitely play a new role, especially as state-sponsored industries no longer receive the support they used to receive under the old regimes. A session attendee then asked Brinkley about his perception of the role of social media in the Arab Spring. Brinkley responded by saying that although the protests in Tahrir Square are often referred to as a “Facebook Revolution,” it was really the coverage of the protests on Al Jazeera that got the masses mobilized in Cairo. Next Brinkley answered a few more questions for the audience about the risks of investing in the region.

In closing, Brinkley provided advice to companies thinking about working in MENA. He suggested that companies focus on opportunities to pilot small projects or partnerships in Libya and Tunisia, but emphasized the importance of staying flexible. Given the changing conditions in the region, it is important that companies are ready to either expand their work in country or exit if need be. He also stressed the importance of working with local partners who understand the business context in countries in the MENA region.