Few Arab countries have been nations for long. The dead hand of the Turks’ declining Ottoman empire was followed after the first world war by the humiliation of British and French rule. In much of the Arab world the colonial powers continued to control or influence events until the 1960s. Arab countries have not yet succeeded in fostering the institutional prerequisites of democracy—the give-and-take of parliamentary discourse, protection for minorities, the emancipation of women, a free press, independent courts and universities and trade unions.
The absence of a liberal state has been matched by the absence of a liberal economy. After independence, the prevailing orthodoxy was central planning, often Soviet-inspired. Anti-market, anti-trade, pro-subsidy and pro-regulation, Arab governments strangled their economies. The state pulled the levers of economic power—especially where oil was involved. Where the constraints of post-colonial socialism were lifted, capitalism of the crony, rent-seeking kind took hold. Privatisation was for pals of the government. Virtually no markets were free, barely any world-class companies developed, and clever Arabs who wanted to excel in business or scholarship had to go to America or Europe to do so.