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Guy Sorman: Is Islam Compatible with Capitalism?

Guy Sorman, a City Journal contributing editor, is the author of Children of Rifaa: In Search of a Moderate Islam and many other books.

The moment you arrive at the airport in Cairo, you discover how little Egypt—the heart of Arab civilization—is governed by the rule of law. You line up to show your passport to the customs officer; you wait and wait and wait. Eventually, you reach the officer . . . who sends you to the opposite end of the airport to buy an entry visa. The visa costs 15 U.S. dollars; if you hand the clerk $20, though, don’t expect any change, let alone a receipt. Then you make the long hike back to the customs line, where you notice that some Egyptians—important ones, apparently—have helpers who hustle them through. Others cut to the front. It’s an annoying and disturbing welcome to a chaotic land, one that has grown only more chaotic since the January revolution. It’s also instructive, effectively demonstrating why it’s hard to do business in this country or in other Arab Muslim lands, where personal status so often trumps fair, universally applied rules. Such personalization of the law is incompatible with a truly free-market or modern society and helps explain why the Arab world’s per-capita income is one-tenth America’s or Europe’s.

The airport experience, had he been able to undergo it, would have been drearily familiar to Rifaa al-Tahtawi, a brilliant young imam sent to France in 1829 by the pasha of Egypt. His mission: figure out how Napoleon’s military had so easily crushed Egypt three decades earlier, a defeat that revealed to a shocked Arab world that it was now an economic, military, and scientific laggard. At the outset of the book that he wrote about his journey, The Gold of Paris, Rifaa describes a Marseille café: “How astonished I was that in Marseille, a waiter came to me and asked for my order without my looking for him.” Then the coffee arrives without delay. Finally—most amazing of all—Rifaa gets the bill for it, and the price is the same as the one listed on the menu: “No haggling,” he enthuses. Rifaa concludes: “I look for the day when the Cairo cafés will follow the same predictable rules as the Marseille cafés.” But nearly two centuries later, the only Egyptian cafés that live up to Rifaa’s hopes are the imported Starbucks.

Egypt is, of course, a Muslim nation. Should Islam be indicted for what was in Rifaa’s time, and remains today, a dysfunctional economy? The question becomes all the more important if you extend it to the rest of the Arab Middle East as it is swept by popular revolts against authoritarian rule. Will the nations that emerge from the Arab Spring embrace the rule of law and other crucial institutions that have allowed capitalism to flourish in the West? Or are Islam and economic progress fundamentally at odds?..

Read entire article at City Journal