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How did Israel develop into a country with the highest per capita GDP in the Middle East when it was only established rather recently as a nation compared to Arab nations which have been established much longer?
A small correction: Israel does not have the highest GDP per capita in the Middle East.Based on the IMF data for 2016, Qatar has the highest GDP per capita (nominal) in the Middle East, followed by United Arab Emirates (UAE) and then Israel (the distance between the latter two is very small).But, if we consider the PPP measures, which more accurately reflects purchasing power of its residents, the ranking will be Qatar, Kuwait, UAE, Bahrain, Oman and Israel. (Of course, we cannot forget that these countries generate most of their wealth from hydrocarbon revenues.)However, if you ask about the success of Israeli economy, I think one of the crucial factors here is the presence of cutting-edge high technology sector in the country. Despite its small size, it puts strong emphasis on research and development. In fact, it has the world-highest ratio of 140 scientists, technicians, and engineers out of every 10,000 employees. It is also considered as one of the most productive countries in producing scientific paper. Its ratio of research and development expenditure against GDP is ranked 2nd in the world.This commitment to research and innovation, coupled with influx of highly-educated people in the 1990s from the former Soviet Union (such as qualified engineers and scientists) led to a highly effective high-tech sector in Israel and led the country to be called as “Silicon Wadi”. As this industry is knowledge-based and provides higher value-addition compared to traditional industry, it lead to high productivity and GDP per capita.As to why the GDP PPP per capita in Israel is lower than some Arab countries, even though its nominal GDP per capita is higher, I guess this is because of the very high cost of living in Israel, which depresses the purchasing power of its citizen.
Could you explain in terms of geopolitics why Qatar is politically isolated?
This is a very complex question, in order to understand the reasons behind Qatar’s isolation we need to understand how geopolitics works:Geopolitical actors function according to their constraints;Geopolitical power is not only based on military force or economics, in fact, it is very relative based on technological, diplomatic, and social capabilities;Qatar constraintsBeing a very small nation, Qatar does not have either military or geographical advantage that can make it a superpower or even a regionally dominant power. So, it is very common for such a nation to be dominated by a powerful neighbor. The traditional behavior of such a state is to align itself to the dominant power in order to achieve security.Gulf Geopolitical landscapeQatar is a part of GCC (Gulf Cooperation Council), an organization formed in 1981 by Saudi Arabia, Kuwait, Bahrain, Qatar, UAE and Oman as a reaction of Iranian revolutionary Shia influence in the region.The Gulf geopolitics are dominated by the cold war between Saudi Arabia and Iran. Both of them are trying to use religion to dominate the Muslim world and the region. In the Middle East, the religion is a form of geopolitical power, Saudi Arabia who has the two most important cultural heritage for the Muslims (Mecca & Medina) is a key factor in the Islamic world. They are promoting their own religious, political and social vision called Wahhabism, which is a part of Sunnism. In contrast, Iran branded itself as a revolutionary republic, promoting its own vision, a Shia revolutionary ideology. A lot of military factions such as Hamas, Hezbollah, Al Qaeda, Islamic State, Al Nursa and others are religiously built and legitimated. In this way, religious influence is transforming into military and political power.Qatari Flag on Empire State BuildingHow is Qatar building its power?Qatar understands very well the 21st century. Doha's solution to its constraints is to use its financial power, its geographical location plus its cultural/diplomatic influence in order to avoid to be dominated by the Saudi Kingdom.Financial powerIn the 21st century, a national economy is based on private businesses which tend to have an international construct. In this regard Qatar position itself as a powerful investor in big international players such as the UK, Germany, Switzerland, Singapore or the US. Qatar Investment Authority (QIA), the sovereign wealth fund of the nation is said to be one of the most acquisitive funds in the world possessing about $ 338 billion of assets around the globe. Let’s look at some of its assets:a. It is the fourth largest shareholder in the Swiss Bank;b. It is the third largest shareholder in Germany’s Volkswagen;c. During the financial crisis, Qatar becomes one of the largest investors in the UK’s Barclays Bank also Doha bought London’s Shard which is the tallest skyscraper in Europe. plus Canary Wharf, HSBC Tower skyscrapers.d. Qatar bought U.K. department store, Harrods back in 2010;e. Qatar raised its stake in British Airways owner IAG to 20 percent and purchased a 20 percent stake in London Heathrow in 2016;f. In New York, Qatar's investment arm bought nearly a 10 percent stake in, Empire State Realty Trust. This company is the owner of Empire State Building.g. Doha has also invested in Uber and recently announced plans to open an office in Silicon Valley to invest more into U.S.-based tech firms.h. In Singapore, QIA purchased one of the well-known Asia Square towers from BlackRock for $2.5 billion. It was the largest office transaction in Singapore's history.But how financial power can buy geopolitical power?These businesses that are listed in Qatari investment portfolio are one of the most influential in their origin countries. In the US its called simply lobby, Europeans are not very familiar with this term but they are using the same practices. Basically, the governments understand that the country political and economic stability is related to these big companies. That’s why these companies are able to influence the government domestically and internationally policies. Being one of the shareholders, Qatar has its own influence in that company and therefore in the mentioned states.Winning hearts and mindsIn the 21st-century information and media are consumed at a global stage. Qatar’s Al Jazeera media channel broadcast in both English and Arabic. It is the most influential media television in the Arab world and one of the most respected information source worldwide gaining more audience worldwide.Al Jazeera remarked itself being one of the most vocal critics of the authoritarian regimes in the Arab world. Its critics have a considerable influence in the Arab Spring events.Qatar LNG and IranQatar is the world’s biggest seller of Liquified Natural Gas (LNG) aggregating to 30% of global supply. Iran and Qatar are sharing the world’s largest natural gas field, South Pars. Since 1979, Iran was under international sanctions, in this way Iran wasn’t able to modernize its LNG industry neither make deals around the globe. In contrast, Qatar invested and modernized its capabilities in extracting and selling LNG around the world.After the Iran Deal, Tehran started to invest in its energy sector in order to be able to make good deals, Qatar policy toward Iran changed because Doha realized that they have no chance to stop Iran’s new investments in the sector so they choose to become a part of the Iranian LNG industrial development. This is the smartest thing you can do in this situation.Qatar-Turkey Pipeline proposalQatar envisioned a pipeline from South Pars via Saudi Arabia, Jordan Syria, and Turkey that can supply customers from Europe and Turkey. In this scenario, Russia would lose its monopoly in the European gas market. This project is backed by the US. In contrast, Russia backed another project, a pipeline from South Pars via Iran-Iraq-Syria-Lebanon to Europe.Because of the Syrian civil war evolution, Qatari project became unrealistic. It is unlikely that Syrian president Assad would support such a project. In fact, the Russian proposal seems to be a more realistic idea. So, Qatar changed its approach toward Russia and Iran. Being unable to confront them, Qatar is trying to make concessions in order to be a part of the future developments.In practice, Doha becomes more friendly with Iran, a policy which raises concerns in both Saudi Arabia and the UAE. Saudi-Iranian tensions are higher than ever before. In case of the UAE, they have a territorial dispute with Iran over three islands in the Hormuz Strait, Abu Musa, Greater Tunb, Lesser Tunb.Is Qatar supporting terrorism?The short answer is yes, they support different terrorist organizations. The complete answer is that all states from the region are somehow supporting terrorists. The real issue is who is supporting who and why.In contrast to Saudi Arabia or UAE, Qatar has no considerable Shia minority or any religious minority. The Qatar Royal House is ruling based on the Sunni branch of Islam and their legitimacy is not under threat of external influence. In Saudi Arabia, Bahrain and UAE, Iran can actually have religious influence among their populations because of their Shia minorities. In the aftermath of the March 2011 protests in Bahrain, Iran expressed strong support for the demonstrators, the majority of whom follow Shia Islam. GCC intervened military in Bahrain to stop the uprising.The same scenario can be replicated in Saudi Arabia. The Shia minority is located in the richest oil region, an uprising there is a serious threat to the Saudi Monarchy. Ryadh expressed its concern many times of the Iranian interventions in its domestic issues.Another ideological threat to the Saudi regime is Muslim Brotherhood organization. This is an international Sunni Islamic transantional movement with political activities in all countries around the Middle East. In 1954 MB brought teachers in Saudi Arabia from Egypt which was ruled by Nasser at that time. Saudi newly educational system needed teachers with experience and obedience. Despite the fact MB expressed its support of the ruling family, they influenced intellectual life in Saudi Arabia undermining official Wahhabi ideology.During the Arab Spring, MB played an important role especially in Egypt where they were supported by Qatar in order to gain influence in Cairo. Mohamed Morsi a member of MB, won the election after Mubarak’s fall in 2011.Currently, MB is recognized as a terrorist organization by Russia, Syria, Saudi Arabia, and the UAE. Without a direct influence in Doha, MB is a useful pawn in the Qatari regional interests. Think at this in business terms, MB is a niche of the religious market that Qatar is dominating.Qatari-Turkish friendshipTurkey is one of the most powerful actors in the region. Ankara avoided becoming a part of the Saudi-Iranian conflict. Erdogan is spreading his own political influence over the region challenging Turkish traditional zero-problem foreign policy. Regarding Syria, Turkey's main interest is to keep institutions intact in order to avoid a failed state at its borders. In contrast with Saudi Arabia, the removal of Assad is not a vital point. In contrast to Iran, keeping Assad in power is not a goal of Ankara. Erdogan’s ideal scenario would be a pro-Turkish new Syrian regime, that’s why Turkey is another supporter of the MB.Both of them, Turkey and Qatar are trying to pursue their own foreign policy. Both of them are supported by the US but at the same time, both of them are willing to make deals with Iran and Russia. Dona-Ankara axis is a natural geopolitical approach for both of them having similar interests.Final thoughtsDespite the fact it is a small nation, Qatar is unwilling to remain under external influence. It is pursuing its own foreign policy using its geopolitical advantages: financial power, media, and religious niche influence.We can think of Qatar as a smart power who is not relying on its hard power but on a soft one. Having a huge portfolio of international assets in one of the most powerful countries in the world Qatar is positioning itself as an influential business partner. Being able to reopen negotiation with Iran, Russia and perhaps Syria, Qatar is becoming an independent geopolitical actor.
What are the prospects for a chartered accountant abroad?
The prospects for a chartered accountant in abroad are as follows:-In case you want to work abroad, Institute of CA of India is also well recognized abroad like in England, Wales and Australia so one can even practice in these countries as well.Indian Chartered Accountants can only have jobs in foreign where Indian operations are involved or else you need to pursue the locally recognized course in that country, check what exemptions you get because of your Indian education and pursue that course to do practice in both – Foreign Operations and Indian Operations, outside India.The Institute of Chartered Accountants of India has MoUs with various countries and thereby an Indian CA can become a member of the institute in respective country and carry on the profession.The job profile is a bit different. In Middle East, money laundering is of high importance. In USA, Canada, etc. accounting is of high priority. It will take a lot to enter in auditing sector there.Lifestyle is the difference. Some people do like over there.VISA application for working professional is easy to get. In Middle East, salary is bit more than India but so is the lifestyle. In US, Canada, you can get not less than 60K USD but again so is the cost of living there.Let us discuss about scope of Indian CA abroad, based on different parameters in different countries having MoUs with the ICAI.Professional OpportunityAustralia – MoU with Australia allows you to become an Associate member after submitting the required documents. You can’t publicly practice there i.e. you will be able to join the Industry but not sign or certify in independent capacity.Canada – MoU with the Canada professional bodies ended in 2016 and ICAI has initiated talks to continue the same. The professional bodies in Canada have been reconstituted, as of now it’s hard to say anything clearly about professional opportunity there other than employment.England – MoU with England’s ICAEW is in existence for a long time. ICAEW associate membership is same as Australia you cannot sign or certify in Independent capacity.But the ACCA a professional body in UK without the MoU allows you few exemptions in the exam papers, so you can avail their membership after clearing the non-exempted papers. Their membership allows you to act in Individual capacity.UAE – ICAI has its own Middle East chapters unlike any other Professional body to give an upper hand to its members to establish practice in the Country.There is an abundant number of opportunities for CAs in employment in this country than practice and are also paid handsomely.Job profiles in the above countries are more towards corporate employment rather than individual practice, except in UAE where Indian Firms in the country hire CAs for their audit works.Don't forget to uovote if you like.Follow me for more interesting Q&A.Thanks You.Regards,Anish Verma ✍️