Transparency is Dubai’s future

Hafed Al Ghwell

• Last Updated: March 21. 2009 9:30AM UAE / March 21. 2009 5:30AM GMT

Since the dawn of the global financial crisis late last year, Dubai has been portrayed around the world as a boom town whose bubble has burst.

Numerous reports have depicted this thriving emirate in a calamitous state, with thousands of cars abandoned at its airport as suddenly-unemployed expatriates embark on a mass exodus.

And yet, in my personal experience at least, Dubai remains a busy, sometimes crowded city. Traffic is still a problem, and despite the stories the airport is not overflowing with luxury cars.

Of course, Dubai has been affected by the downturn. As one of the most globalised cities in the world it was going to be vulnerable to the “deglobalisation” induced by the crisis. The slowdowns in the flows of capital, goods and people have exposed the central role trade, tourism, and finance play in its well-being.

But while the stormy economic conditions have toppled many financial institutions, Dubai’s roots run deep and its fundamentals remain strong. Excellent infrastructure, a strong merchant culture, wise leadership and effective public administration provide a robust foundation for sustainable growth once the world’s economy takes off again. Simply put, if you believe things will eventually get better around the world, then you must believe in Dubai. So why the rash of pessimistic media reports? Some can be attributed to “irrational exuberance” by those who – out of misplaced jealousy or a wish to see this Arab success story brought down to size – are eager to do down Dubai.

But there is a more fundamental reason – a general dearth of credible information about Dubai’s economic situation. As journalist Robert North noted in a recent New York Times article, “No one knows how bad things have become… But with the Government unwilling to provide data, rumours are bound to flourish, damaging confidence and further undermining the economy.” Nature abhors a vacuum, and speculation will swirl where solid information is lacking.

While the economic crisis presents obvious challenges, it also offers an opportunity for organisations and countries to distinguish themselves. Those who focus on their inherent strengths are likely to recover more quickly, and with a greater competitive advantage than before, whenever the recovery takes hold.

Dubai and the UAE at large would be well served by shifting towards a culture of more openness, accessibility and transparency in both government and business.

Through its spectacular growth, Dubai has leapfrogged to international prominence. Brand Dubai is now recognised around the world. But such exposure puts it in a brighter spotlight with greater expectations that it meet world standards in communication.

Part of the problem is capacity. Government agencies simply do not have accurate and comprehensive data. Likewise, data within government agencies are often neither integrated nor co-ordinated, while information that is available is sometimes not made accessible to the media and public in a systematic manner. In an age in which access to information is vital, the UAE must invest to improve this flow and so maintain its competitive edge for the global economic upturn.

Greater transparency is essential. Where no clear information is available, rumour will flourish. Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, has said: “A world-class government is essential to face global competitive pressures and expectations for greater transparency, accountability, efficiency, equity and responsiveness to the public in terms of customer service excellence.” Now is the time to turn those words into the dominant reality.

The recent listing of official spokesmen for federal ministries, for example, is a significant step forward, but by itself it is not sufficient. An integrated strategic communication initiative based on principles of sound knowledge-sharing and issue management is essential to bring the emirate up to world-class standards of transparency. It is time for Dubai to move beyond image management to serious and credible strategic communication that aligns priorities, processes and methodologies.

Effective strategic communication is about an efficient flow of credible information, in-depth knowledge of the issues, and a genuine commitment to openness. In the past, separate messages could be tailored for different and uncritical audiences but globalisation and technology have thrown open the doors. Now, with little effort, “almost everyone can see almost everything”. As a result expectations of transparency have increased tremendously.

Ultimately, strategic communication must be a two-way process, with information moving up the chain as well as down. While policymakers need to explain policy decisions to the public, it is also vital that they are aware of the concerns, perspectives and objectives of citizens and shape their policies accordingly.

In more advanced economies, the policymaking process seeks out and incorporates interest group politics. Robert Dahl, a political theorist, defines the “normal” American political process for example, as “one in which there is a high probability that an active and legitimate group in the population can make itself heard effectively at some crucial stage in the process of decision”.

While one may find fault with the power exerted by America’s lobbyists, the system nevertheless allows groups to articulate their views to policymakers so emerging policy reflects society’s values and concerns.

While consultation is deeply ingrained in the UAE’s political culture, as the country develops and becomes more complex more effective interaction will be needed at all levels – whether this involves interest groups, the business community, academia or the public.

Such a consensus-building process would have helped fashion a more realistic registration process for the Emirates ID card, for instance.

Throughout the world, the regulatory environment is expanding as a result of the ever more complex demands of modern life, and in particular of the present financial crisis. This trend will increase in the future, and we must evolve our communication processes to meet the mounting pressure.

Dubai seems likely to emerge from the financial crisis with a more regulated and transparent property system, for example. Both the emirate and the UAE federal government are said to be formulating laws outlining the rights and obligations of property owners. Technology will also play its part. Dubai Land Department is developing a sophisticated online property transaction system.

There are other hopeful signs. The UAE’s score in Transparency International’s Corruption Perception Index (CPI) improved to 5.9 in 2008, from 5.7 the previous year. This was largely because of the strengthening of its accountability and auditing mechanisms, including the establishment of the Abu Dhabi Accountability Authority.

Also noteworthy is the openness with which the UAE is addressing the issue of national identity, holding public forums and discussions on the subject and encouraging citizens and others to contribute. Another example of greater openness is the publication online of a report by the FNC and the Dubai School of Government of Women in Parliament and Politics in the UAE: a study of the first FNC elections. It is available at http://dsg.ae.

In a time of economic malaise, it can be tempting for governments to legislate bad news out of existence.

The draft media law under consideration, for example, would harm the UAE’s efforts towards transparency, making it a crime to publish “misleading” information which “damages the country’s reputation” or its economy.

Ultimately, Dubai and the UAE are served better by opening the doors to the information flow and using it to enhance competitiveness, expose weaknesses in the system, and address them head on. Such efforts can only strengthen its standing, legitimacy and credibility.

Hafed Al Ghwell is a former World Bank senior officer and currently serves as director of communications and external affairs at the Dubai School of Government. He can be reached at: hafed.alghwell@dsg.ae