Just say no
The responsibility of carrying out an effective boycott against US and British companies falls squarely on the shoulders of civil society, writes Sherine Nasr
When diplomatic efforts fail to avert wars, it is time to turn to economic boycotts. Last week, the Journalists Syndicate held a seminar to examine the usefulness of economic boycotts on American and British commodities and the impact that they might have on the Egyptian economy.
"It is no secret that the US is perhaps the first country to impose economic sanctions against its opponents," said Hamed Mahmoud, deputy chairman of the Nasserist Party.
"It [the US] used [sanctions] in the past against Cuba, and it is using them now against France, simply because of a different stance on the Iraq issue," he added.
However, Americans are not the only masters of the game. In 1951, Egyptians successfully used the economic card during their national struggle against British occupation. Indeed, thousands quit their jobs in British military camps, causing the British a great deal of inconvenience. "These were temporary labourers who lost their daily bread in favour of a higher national cause," said Ahmed Bahaaeddin Sha'ban, coordinator of the Egyptian Committee for boycotting Zionist and American Commodities and Companies.
Effective as they may be, there is a broad consensus among Egyptian intellectuals and researchers that the organisation of economic boycotts are no longer a responsibility that governments are able to undertake.
"It is sad to know that boycotting Israeli products, for example, was more effective in the past than it is now due to the various complications of globalisation and the normalisation of relations between at least 14 Arab countries and Israel," said Mahmoud. He added that very little hope should be pinned on Arab governments in this regard.
According to Mahmoud, all attempts at boycotting Israeli or American products have been largely ineffective because of peace agreements signed with Israel. "Worse, many Gulf countries are now operating under an American umbrella," he said.
Compounding the problem are the web of anti-trust and competition laws signed between Arab states and Israel that prohibit the imposition of economic sanctions. "Israel has long been aware of this fact, even prior to the signing of the peace agreements," said Maghawri Shalabi, an economic researcher. Shalabi added that, starting from 1948, Israel managed to dissuade international companies from releasing information on the Israeli composition of their products when it realised that Arab countries were attempting to boycott them.
Nevertheless, Israeli losses due to different forms of boycott have been high. In the period from 1945 to 1956, Israel's losses were estimated at $50 million, these increased to $90 billion in 1999 and $95 billion in 2001.
"It is obvious that governments can do very little now," said Ne'maat Ahmed Fouad, a writer and intellectual. "[Boycotts] should become a top priority on the agenda of non- governmental organisations and civil society at large," she added.
In Egypt, recent attempts at boycotting American goods have left mixed results. While lists of American consumer goods and companies were distributed among students and housewives, other voices were claiming that these were wholly Egyptian companies established with Egyptian capital and labour and any intended boycott would only affect the Egyptian economy.
Although the attempt did not last long, it left Egyptians with a sense of shock at the realisation that almost every single household commodity they were using was a US-owned brand.
Nonetheless, there were some positive aspects. "It created a national awareness among people," said Sha'ban.
The assumption that boycotting foreign brands might negatively affect the Egyptian economy was denied by Sha'ban. He argued that these companies' commercial dealings do not exceed one billion dollars and that they employ only 23,000 Egyptians.
"It is time to stop highly priced, yet ineffective forms of foreign industry and to look for real investment opportunities," said Sha'ban. He added that nothing is more ridiculous than knowing that Egypt imports almost $350 million worth of dog and cat accessories a year.
Additionally, there is a complete lack of data on the unemployment rate in Egypt. According to Mahmoud, the World Bank (WB) stopped including any unemployment estimates in its annual development report since 2001 because of a lack in reliable data. "While the latest figures by the WB estimated unemployment at about seven million people, the government insists that it does not exceed four million," said Mahmoud.
"We are facing a big problem and a serious and rapid solution has to be found immediately. It is only then that we can carry out an effective boycott without causing embarrassment to the government," said Mahmoud.
