Bismillah, alhamdulillah seeking God's guidance to the truth.
With the continuing Israeli activities in Gaza the local chatter in the corridors is of people wondering what they can do to help. One of the topics of discussion has been whether or not to boycott Israeli / American companies that support Israel. This blog examines the effectiveness of such actions, the concept of divestment, related fatwas and offers some suggestions on the topic that may be of use.
Starbucks
Over the last few days an email against Starbucks has been circulating claiming profits from Starbucks support Israel. The letter reads likes a spoof but goes down well with receptive audiences here. However it is a fake letter actually authored by a German called Andrew Winkler in 2006. But as Winkler points out he has based this on 'facts'.
However, all the statements I made in that letter about donations, sponsorships, political views etc. - are based on factual Howard Schultz actions and quotes, as 1/2 hour of 'Googling' will easily confirm to anyone interested.
So, would avoiding the over priced coffee and hot chocolate at Starbucks make a difference? What is the effectiveness of such actions?
The economic impact on Israel of a poorly coordinated and consumer led boycott is likely to be minimal. Firstly Israel has economic streams which are independent of any commercial concerns and come straight from the US treasury to the tune of at least $3 billion per year and possibly more. Secondly to make such a boycott effective it would have to be highly coordinated and involve non-Muslim players as a large amount of trade that is done with Israel is not done with Muslim countries anyway. If you Google 'divestment' and 'Israel' you will come up with a number of websites promoting the concept. One that I came across was by the United Methodist Church.
Divestment report by United Methodist Church
Recently I came across a Starbucks boycotting, well educated, person who happens to have a Volvo car. I would not have thought much of that until I read the divestment report by the United Methodist Church. To my surprise Volvo was identified as a company that supports through trade some of the worst activities of Israel. The report had been 
compiled by a task force including eight clergymen.
The other companies that turned up in the divestment report include Boeing. But the irony of that is that Saudi Airlines has recently ordered a whole new fleet of 61 aircraft from Boeing as they point out on their website.
Hilton Hotel in Makkah
This got me wondering about companies closer to home. If you have been for Umrah or Hajj you will not have failed to notice that the Hilton Hotel sits staring at the Holy Mosque everyday. The Hilton Hotel is a franchise from the Hilton Hotels Corporation which in turn is a subsidiary of the Blackstone Group as noted on Blackstone's website.
Blackstone Group was co-founded by an American billionaire Stephen Schwarzman who remains the Chairman and Chief Executive Officer of Blackstone as of 8th January 2009 according to Reuters. Even the Wikipedia entry on Schwarzman does not makes his religious beliefs clear and you have to dig a bit deeper to find him admit in an interview to the Academy of Achievement that he is a Jew. His Jewish roots are also reiterated in the entry under his name at Nationmaster.com. It would not be unreasonable to conclude that such a prominent person has a soft spot for his fellow Jewry in Israel which could easily express itself in economic terms thanks to, in some part, the flow of revenue from the pilgrims to Makkah.
The complicated nature of the revenue web explains why the consumer boycott is patchy. The well informed consumer is a rarity and the time required to research the issue is not available to most people. It also illustrates the poor degree of coordination and disconnect between consumers on the one hand and the large players, even when they are on the same side.
Is it worth it?
Given the above it may be argued boycotting if of little or no practical use. But if it could be argued that a boycott was meritorious in its own right then though it would not be economically effective it would nevertheless be a source of reward on the Last Day. A spiritual struggle at the very least.
Scholars such as Yusuf Al-Qaradawi supports the boycott of companies supporting Israel. Some Saudi Scholars such as Salih Al-Munajjid also support a boycott. Though there has been reluctance in the past for Saudi scholars to support a coordinated call for a boycott citing examples of the Prophet (S) trading with Jews in Madeenah even though they were the clear enemy within.
The two pro-fatwas call for a balanced approach reflecting the aspirations of Muslims and the stark reality that they face. A fair summary of the fatwas would be: boycotting is a meritorious act if done to please God and aid fellow Muslims but Muslims who are unable to undertake it for genuine reasons are excused.
Suggestions
Pro-Islamic Ratings Agency (PIRA): One suggestion to the people who are involved in organising such boycotts and informational campaigns on divestment/disinvestment is to provide a list alternative 'clean' companies which provide equivalent goods at the same quality price point. The greater the detachment from anti-Islamic activity the higher the ratings.
A similar idea that has been put to good use by a grassroots campaign against the Mafia in Palermo, Sicily. Campaigners are running the Addio Pizzo 'goodbye protection money' website. The campaign is in support of businesses who refuse to pay the enforced protection money payments to the Mafia. The campaign allowed customers to support businesses which have an anti-Mafia stance and allows them to donate money online to these businesses. In essence the internet has allowed a previously poorly coordinated group to rally against the highly coordinated Mafia. This mirrors the situation that Muslims find themselves in today.
PIRA should be aimed both at investment managers and grassroots customers. It should allow people to focus on particular queries such as supporting Israel but also give more complicated ratings taking further variables into account: investment in Islamic countries, benefit accrued to Muslims, transfer of technology and so on. It is very important that there is a clear local element to any such effort allowing consumers to particularise the data to their locale.
Promoting Muslim startups: Where the above process identifies a gap in the market an investment company should be setup to channel the support of consumers to exploit the gap in the market. The aim would be to promote Muslim companies to plug such gaps.
Lobbying: Where people have access to the key decision makers in Muslim polities they should make a stronger economic and ethical case for alternative companies with a pro or neutral stance towards Muslims. A professionally run and researched PIRA will be invaluable in such an endeavour.
Dua: The first port of call of all believers is the call to the source of all strength, God. Let us increase the chances of our duas being accepted by supporting them with our actions.
No comments:
Post a Comment