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An Analysis of Dubai's Socio AN ANALYSIS OF DUBAI’S SOCIO-ECONOMIC DEVELOPMENT STRATEGIES AND PERFORMANCE BETWEEN 1998 ----2008 DOCTOR OF LITERATURE AND PHILOSOPHY in the subject of DEVELOPMENT STUDIES at the UNIVERSITY OF SOUTH AFRICA PROMOTER: Professor Sabelo J Ndlovu-Gatsheni NOVEMBER 2013 Declaration I, Paul Anthony Thompson, author of this thesis, do hereby declare that the work presented in this document entitled: “An ANALYSIS OF DUBAI’S SOCIO-ECONOMIC DEVELOPMENT STRATEGIES AND PERFORMANCE BETWEEN 1998 AND 2008”, is a result of my own research and independent work except where reference is made to published literature. I also hereby certify that the work embodied in this thesis has not already been submitted, either in whole or in part, for any other degree in this University or other institute of higher learning. ........................................... ………………………. PAUL A. THOMPSON DATE ……………………………….. ……………………. PROMOTER DATE i Acknowledgements First and foremost and above all, honour and glory to Lord Jesus for giving me the requisite knowledge, wisdom, and persistence needed to complete this thesis. I would also like to express my sincere thanks to my supervisor, Professor Sabelo J Ndlovu-Gatsheni for his constant professional insightful guidance and constructive comments on the quality of my work throughout the research project. I wish to also thank the many interviewees who consented to being interviewed and special gratitude goes out the librarian at the Dubai Chamber of Commerce for responding to my many emails and also speaking to me over the telephone without any reservation regarding the many thesis related questions I had. I also would like to acknowledge the kind assistance rendered to me by the librarian at the Dubai Statistics Centre. ii Dedication I dedicate this work to the following very special people for their influence in my life and support throughout this research project: My parents and my five year old twins Amelié and Gabriel Thompson; who have had to tolerate me spending countless hours in front of my computer and cutting their playing time in the park short on many occasions. Also to ‘the special one’, my wife Zintle Siwisa-Thompson, who has been a tower of strength and great inspiration throughout the duration of this research. She has tolerated my many late nights to bed and early departure without a fuss. Without her support this project would still remain on my wish list. iii Abstract This study explores the socio-economic development path of the former Trucial State of Dubai, now an economic powerhouse within the Federal State of the United Arab Emirates. This thesis emanated out of the researcher’s need to understand the development trajectory of Dubai from the perspective of a development discourse, as literature and debates on the city’s developmental trajectory have generally focused on micro-and macro- economic variables and a sectoral emphasis without considering the total and complex development matrix. The author proposes a rentier, developmental and competition (RDC) Model as a basis for understanding the state-led social and economic development of the Emirate of Dubai. Empirically, the study examines a whole raft of home-grown social and economic development policies that fall exclusively within the domain of the Dubai Strategic Plans (DSPs). Conceptually, the thesis argues that although the Dubai Inc model has successfully changed the socio-economic landscape of the Emirate, nevertheless, a soft underbelly of the model displays the exploitative nature of unbridled free market capitalism. Methodologically, triangulation backed up the qualitative research methodology by utilising a mixed-methods approach to enhance the richness of the research. Specific data collection methods used included in- depth semi-structured interviews and non-participative observation, supported by documentation analyses of relevant documents. The research findings unambiguously demonstrated that the socio-economic transformation of Dubai, between 1998 and 2008, was a result of the aforementioned hybrid model, which this thesis uses as its theoretical framework. The conclusion drawn from the study is that there is no one path to development; the Government of Dubai is cognisant of that and has thus used the capacity of the state to transform the once impoverished and marginalised sheikhdom into a ‘commodified’ city-corporate entity. Key Words: Rentier, Developmental, Competition State, Emiratisation, State-Led Capitalism, Dubai Strategic Plans, Dubai Model and Emirate. iv Table of Contents Declaration ........................................................................................... i Acknowledgements .............................................................................. ii Dedication ......................................................................................... iii Abstract .............................................................................................. iv Key Words: Rentier, Developmental, Competition State, Emiratisation, State-Led Capitalism, Dubai Strategic Plans, Dubai Model and Emirate.Table of Contents................................................................... iv Table of Contents ................................................................................. v List of Tables ...................................................................................... ix List of Figures ...................................................................................... x List of Acronyms ................................................................................. xi List of Acronyms ................................................................................. xi Chapter One: ................................................................................ 1 Research Outline ................................................................................. 1 1.1. Introduction ............................................................................... 1 1.2. Background to the Study: An Overview of the Middle East’s Social and Geo-Political Economy ......................................................... 3 1.3. Research Objectives.................................................................... 9 1.4. Significance and Justification of the Study ............................... 11 1.5. Conceptualisation of the Developmental Process ....................... 12 1.6. Theoretical Framework ............................................................. 13 1.7. Research Methodology .............................................................. 17 1.8. Time Period Covered by the Study ............................................ 17 1.9. Scope and Delimitations of Study ............................................. 18 1.10. Structure of the thesis .............................................................. 19 Chapter Two .............................................................................. 22 Trucial States: A Socio-Political and Geo-Economic Historical Background ........................................................................................ 22 2.1. Introduction ............................................................................. 22 2.2. Early Settlers of the UAE and Dubai (Bedouins) ........................ 23 2.3. Ottoman Influence .................................................................... 25 2.4. Arrival of the Europeans ........................................................... 25 2.5. Overview of Dubai’s Historical Background ............................... 29 v 2.6. Formation of the UAE and its Political Systems & Structure at the Federal and Emirate Level ........................................................ 31 2.7. UAE’s Federal Constitution and Political Institutions ................ 35 2.8. Political Structure at the Local/ Emirate Level .......................... 42 2.9. Socio-Economic Development of Dubai in the U.A.E ................. 43 2.10. Conclusion ............................................................................... 48 Chapter Three: Re-Contextualizing Dubai’s Development Discourse: A Literature Review......................................................... 50 3.1. Introduction ............................................................................. 50 3.2. Geo-politics of the Region ......................................................... 51 3.3. Politics of Development ............................................................. 54 3.4. Development Trajectory of the Arab World ................................ 56 3.5. Oil Curse Theory ...................................................................... 72 3.6. Development Theory Shortcomings: .......................................... 74 3.7. Conclusion ............................................................................... 79 Chapter Four: ............................................................................ 81 Research Methodology ....................................................................... 81 4.1. Introduction ............................................................................. 81 4.2. Research Questions .................................................................. 82 4.3. Research Design ....................................................................... 83 4.4. Research Paradigms ................................................................. 84 4.5. Data Collection: Sources, Methods and Procedures ................... 86 4.6. Data collection instruments .....................................................
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