I just returned from a week in Dubai, United Arab Emirates. Dubai is a microcosm of the world with 85 percent of the population coming from more than 100 countries. The local newspapers were full of two topics – the world economy and President-elect Obama, with some stories covering both subjects at one time.

The locals, known as Emiratis, have a great deal of confidence that the region will be able to ride out this economic shamal (strong wind from the north that bring blinding sand storms). Dubai, unlike Abu Dhabi, has no significant oil revenue to speak of. Instead, Sheik Mohammed al Maktoum is turning Dubai into a tourist destination for the emerging tourist droves from India, Russia and possibly China. At the World Economic Forum held in Dubai there was one shining star remaining in the galaxy of emerging markets – India. Russia isn’t exactly hurting either. The hotels and real estate offices in Dubai are full of Russians on holiday or snapping up villas and flats while carrying gym bags full of cash.

If you think about it, it makes perfect sense to make a vacation, banking and commerce center in the middle of the world, which is exactly where Dubai is located. Our very own Halliburton moved its headquarters to Dubai, for example. Barclays bank has a huge office in Dubai, and that is the springboard to the emerging markets south and east of Dubai.

Despite the mind-boggling rate of development, (I counted 30 new high-rise apartments going up in a six-mile radius of where I was staying), some expatriates worry that Dubai will suffer a credit crunch as well, and that will leave those high rises empty. After I interviewed a number of people, the one common theme I observed is that they think President-elect Obama is going to “fix everything.” Emiratis, Australians, Indians, Pilipino, Brits, South Africans … all see the future of their country tied to the future of the U.S. And they believe that Obama will go into deeper debt to fix the U.S. economy and, therefore, the world economy. They don’t seem to be bothered by the debt that the U.S. takes on and its long-term implications for the dollar, which is of course inextricably linked with the UAE dirham.

Despite interesting conversations about the world economy, the thing most people wanted to discuss was Obama’s win. I heard story after story about how people watched returns on Wednesday morning and cheered each other at work and celebrated. I think this was due to a few reasons. First, they think there needs to be a dramatic change in the way America works in the world – that we need to steer clear of shot, fire, aim and that Obama will be less likely to shoot from the hip than the Bush administration. Second, the win illustrated to the world that the American dream is still alive, and the American people are not asleep at the switch. The rest of the world looks to America as the standard bearer for unencumbered opportunity – that someone can be born with no means, with the hurdles that Obama has overcome and rise to be the most powerful man in the world.

I left Dubai a proud American. Our system may have its flaws, but it works, and the rest of the world sees that it as well. It has given people hope and made people around the world smile. That as they say in the Middle East “is a good thing.”

Ted R Bromund, senior research fellow at the Margaret Thatcher Center for Freedom at the Heritage Foundation describes the fundamental differences between Europe and America when it comes to patriotism and why it’s hard for the European Union to work under the same concept as the United States. (0:51)

 

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Together the U.S. and Japan generate more than a third of global economic output. Alexander A. Arvizu, deputy assistant Secretary of State discussed U.S.-Japan relations before the House Foreign Affairs Committee. Chairman Eni F. H. Faleomavaega (D-Amer. Samoa) commended Japan on the strong support it has given the U.S. in the war on Iraq. (more…)

At a panel on new strategies the U.S. should take held by the Center for a New American Security (CNAS) William Kristol, American political analyst, says that it is worse for America to take a back seat in foreign affairs than to be overly involved. Kristol says America needs to do less talking and take more action. (0:32)

 

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A conference call featuring Tamara Draut, director of the Economic Opportunity Program at Demos and David Madland, director of the Center for American Progress today addressed “The Economic State of Young America.”

Draut and Madland discussed the many ways that the current state of the American economy effects young Americans. Draut noted that the job market now basically demands incoming workers attain college degrees, which proves to be costly for many unable to afford the substantial cost college tuition amounts to. Also, Draut said that because college loans are increasing and that those with lower incomes have to take out more money to go to school, many find themselves even further in debt upon graduation.

Madland discussed the “generational effect” (how different generations have different viewpoints) and how such viewpoints have led to younger people being more supportive of reforms such as universal healthcare.

New Mexico Governor Bill Richardson discusses how he sees America. (0:30)

 

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Newt Gingrich on the responsibility American communities have to work for prosperity. (0:41)

 

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At the House Foreign Affairs Committee International Relations Budget Full Committee hearing on the “International Relations Budget for FY2009,” Secretary of State Condoleezza Rice says that if America does not stand for freedom and liberty, and the rights of the oppressed, and human rights, then nobody will. (:33)

 

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