Dubai debacle likely to hit workers, remittances, Islamic World News, NewAgeIslam.com

Islamic World News

Dubai debacle likely to hit workers, remittances

Despite the brave front put up by Indian government, the debt crisis that has enveloped Dubai World threatens to hit the struggling Indian overseas labour market that is largely dependent on short-term Middle East job contracts. The latest crisis comes at a time when official estimates have admitted that unemployment rates have spiralled to 30% in the Middle East in the last one year.

Industry sources say unemployment figures could be higher than the official estimates and that remittances to India - $43.5 billion in 2007-2008 - are certain to be much lower this year in the wake of the continuing recession in the region. The Dubai World's debt just adds to the bad news.

UAE is the favourite destination for a maximum number of overseas Indian workers - 3.4 lakh people went to the country in 2008 - but the number has been fast declining as Indian workers are unable to get new contracts or extensions in the country that's in the grip of recession.

It's well known that when Dubai sneezes, south India, especially Kerala, catches more than just a cold. Last September, when Lehman Brothers collapsed triggering the great recession, the arrivals at Chennai, Hyderabad and Thiruvananthapuram airports wore a grim look. The news of Dubai World's inability to repay the $59 billion debt has triggered similar fears among the relatives of immigrants back home.

However, the minister for Overseas Indian Affairs tried to allay such fears. ``There were some concerns during the beginning of the slowdown an year ago, but now we are not expecting any exodus (return) of Indians and India will not be affected by Dubai's debts,'' Vayalar Ravi told TOI on telephone.

OIA secretary K Mohandas added that large scale retrenchment was unlikely even though labour movement to UAE had come down. ``There are some countries like Saudi Arabia where labour movement has increased,'' he said adding, however, that the increase was negligible.

http://newageislam.com/dubai-debacle-likely-to-hit-workers,-remittances/islamic-world-news/d/2166

The Real Struggle in Iran and Implications for U.S. Dialogue, Islam and the West, NewAgeIslam.com

Islam and the West

The Real Struggle in Iran and Implications for U.S. Dialogue

The Struggle Within the Regime

By George Friedman

June 29, 2009

The key to understanding the situation in Iran is realizing that the past weeks have seen not an uprising against the regime, but a struggle within the regime. Ahmadinejad is not part of the establishment, but rather has been struggling against it, accusing it of having betrayed the principles of the Islamic Revolution. The post-election unrest in Iran therefore was not a matter of a repressive regime suppressing liberals (as in Prague in 1989), but a struggle between two Islamist factions that are each committed to the regime, but opposed to each other.

The demonstrators certainly included Western-style liberalizing elements, but they also included adherents of senior clerics who wanted to block Ahmadinejad’s re-election. And while Ahmadinejad undoubtedly committed electoral fraud to bulk up his numbers, his ability to commit unlimited fraud was blocked, because very powerful people looking for a chance to bring him down were arrayed against him.

The situation is even more complex because it is not simply a fight between Ahmadinejad and the clerics, but also a fight among the clerical elite regarding perks and privileges — and Ahmadinejad is himself being used within this infighting. The Iranian president’s populism suits the interests of clerics who oppose Rafsanjani; Ahmadinejad is their battering ram. But as Ahmadinejad increases his power, he could turn on his patrons very quickly. In short, the political situation in Iran is extremely volatile, just not for the reason that the media portrayed.

http://newageislam.com/the-real-struggle-in-iran-and-implications-for-u.s.-dialogue---/islam-and-the-west/d/1511