Public Policy Formulation and Analysis in UAE

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Growth

The United Arab Emirates has experienced growth in bureaucracy and the number of employees working in the public sector. According to Musa (2014), when the country gained independence in 1971, the government made an effort to create strong institutions that would help in the creation of employment. Musa (2014) says that the rulers of the seven emirates came up with ambitious plans that enabled them to control businesses in most of the important sectors. This crippled the private players who were operating in these industries. Government-owned firms benefited a lot from the incentives such as tax holidays, making it easy for them to charge lower prices. This forced several private firms, especially the multinational corporations, to consider other regional markets. In order to understand the bureaucratic growth of this country and the number of employees working in the public sector since independence, the researcher will use a comparative analysis approach.

In 1973, the United Arab Emirates’ government was trying to restructure its systems based on self-governance. It started with the formation of the three arms of the government, the executive, legislature and judiciary. The executive played a primary role in the creation of ministries (bureaucracies) that employed about 25,000 people by 1973 (Musa, 2014). The federal and emirate governments created ministries and public firms that helped in creating employment. The growth of bureaucracy in this country started when the government started creating institutional employers immediately after gaining independence. The Department of Health and Medical Services and Rashid Hospital were founded in 1973 by the ruler of Dubai. The primary role of these institutions was to offer medical services. However, they also offered employments to the local population. In the same year, the Central Bank of the UAE was established to manage the currency of the country. It was in this period that the government developed a keen interest in the transport and telecommunication sectors. Emirates Telecommunications Corporation and Sharjah Ports Authority were all founded in this period. According to Khalid (2013), the government was forced to hire expatriates to work in the telecommunication sector because the locals did not have the necessary skills to deliver the needed services. However, Sharjah employed many locals to work in various capacities. Other important public entities created within this period include the New Dubai International Airport, Sharjah International Airport, and Ras Al Khaimah International Airport. The employees in the private sector outnumbered those in the public sector at this time.

By 1980, the government had laid a strong foundation in the development of various sectors, and bureaucracy was taking its shape. In 1982, the Abu Dhabi International Airport was established. This was soon followed by the creation of Emirates Airlines. These two entities employed many Emiratis both as casual laborers and specialists. The creation of the Dubai Aluminum Company and International Petroleum Investment Company in the early 1980s was revolutionary. These companies employed people in large masses. The business sector was boosted by the establishment of Jebel Ali Free Zone, Ajman & Um Al Quwain Free Zone, and Fujairah Free Zones. They created a platform for business. Although some of these facilities were rented out to individual private business entities, the presence of the government was directly felt in these regions. Their activities were regulated to ensure that they employed the locals.

The government turned its focus to the sector of education in the 1990s. It was noted that the local labor force in this country lacked specialized skills to work in the industrial sector. Institutions such as UAE University, ADNOC Technical Institute, and Higher College of Technology that had been created in the previous years were not sufficient for the local labor force. This led to the creation of institutions such as Emirates Aviation College, University of Sharjah, and Zayed University in the 1990s (Musa, 2014). It is important to note that since these institutions’ major role was to produce a highly-skilled workforce in various fields, they also acted as employers to the lecturers, cooks, drivers, and other casual laborers. Al Qassimi Hospital, UAE Offsets Group, Dubai Electricity, and Water Authority, Abu Dhabi Water and Electricity Authority, and the Federal Electricity and Water Authority were all established during this period. It is important to note that other than making the government a bigger employer, these institutions also gave the federal and local governments the power to control important services in the country.

According to Blanchard (2012), from the year 2000, the local and federal governments started a modernization process of its cities and systems. Healthcare institutions such as Abu Dhabi Health Services, Health Authority of Abu Dhabi, the Dubai Health Authority, and the Federal Health Authority were all established during this era. During this time, the government was not only developing structures in this sector but also coming with new laws to govern all the players, the fact that entrenched bureaucracy in this sector of the economy. Educational institutions such as Abu Dhabi University, and Khalifa University of Science, Technology, and Research were also established in this period. The figure below shows the employment rates in this country in the year 2009.

Figure 1: Employment Rate in UAE in 2009. Source (Blanchard, 2012)

By the end of 2014, the federal government of the United Arab Emirates and the individual local government had invested heavily in the field of transport, telecommunication, agriculture, oil, and service industries. In 2014, the Road and Transport Authority announced its intentions to introduce taxis that will be rented out to commuters in the city of Dubai. This program is underway and when launched, it will give RTA a market share of over 90% in the transport industry (Blanchard, 2012). It is also apparent that the government is opening up to private investors. Although the bureaucracy that was heavily witnessed in the 1990s and early 2000s still exists, the government is becoming more accommodating to the private players in various sectors. For instance, the tourism sector has attracted foreign investors, especially to the cities of Dubai and Abu Dhabi.

The government has worked out a formula to enable it to cooperate with the private players to boost the industry. The visitors can come to the cities through initiatives of private agencies, book private hotels such as the Sheratons, but they cannot avoid using public utilities. When they come to Dubai, they would want to visit the tallest building on earth, Burj Khalifa, they will use transport systems offered by the government, and visit public utilities. This will create jobs for people employed in these public utilities. Currently, the biggest public employer in this country is the armed forces. This includes people employed as police officers, military, paramilitary officers, and other officials within this unit. Despite the bureaucracy that exists in this country, Musa (2014) says that the private sector still employs more people than the public sector. However, the government is the single largest employer in this country. The figure below shows the growth of the labor force from 1980 to 2009.

Figure 2: Growth of UAE’S Labour Force. Source (Musa, 2014)

Explaining the growth

The growth of bureaucracy and the number of employees in the public sector is explained by the desire of the government to have control over its people. In many Arab countries, cases of military and civilian coups have become very common. Many countries such as Yemen, Iraq, Syria, Egypt, and Libya are now experiencing cases of political instability. The government is keen on ensuring that such incidences are not witnessed in this country. That is why it is trying to control every aspect of the lives of the Emiratis, from health and education to employment and social amenities. Having control of these sectors also empowers the government to improve their experiences its citizens get from the institutions to enhance their level of satisfaction. This has succeeded in minimizing cases of political rebellions, making it one of the most peaceful countries in the troubled MENA Region.

UAE Government Structure

Figure 3: Government structure

As shown in the diagram above, the United Arab Emirates has three levels of government which include the federal government, the seven emirate governments, and the municipal governments. These three governing levels operate semi-autonomously but are coordinated very closely. For instance, each municipal government may enact laws guiding the business community within the town. At the emirate level, the rulers of the seven emirates have their governing councils that determine how these regions are run. At the federal level, some structures and systems define how the entire country is run. According to Blanchard (2012), each of the three levels of government has areas of jurisdiction within which they have to operate. For instance, issues concerning the defense and security of the country are a preserve of the federal government. On the other hand, enacting by-laws that should be followed by business entities to operate within a given locality is a task meant for the municipal government. At the emirate level, the government has the mandate to work with the police to ensure that there is proper security for all.

The federal government is headed by the Federal Supreme Council, the top-most body responsible for making policies in the country. The council is headed by the president and his deputy. The council appoints the prime minister and makes all the important decisions about the governance of this country. The Ruler of Abu Dhabi, Sheikh Zayed bin Sultan, is the current president of the country. His vice president is Sheikh Maktoum bin Rashid who is also the current ruler of Dubai. These two top executives are elected after every five years, though they are eligible for re-elections without any limitations.

According to Khalid (2013), the United Arab Emirates’ executive body is the council of ministers, headed by the prime minister. The council is responsible for the running of all government activities. The cabinet ministers are appointed by the prime minister. The cabinet must be constituted by representatives from all the seven emirates. These representatives head various ministries in the government. The president has powers to ratify the appointments made by the prime minister to the cabinet. However, it is the prime minister who acts as the chief executive in the monitoring of the activities of the ministries and responding to issues of concern in all the government departments. The Federal National Council is the legislative arm of the government constituting 40 representatives from all the emirates. The population of each of the emirates determines the number of representatives they have in the National Council (Khalid, 2013). They make laws that help in governing the country. According to Musa (2014), this council works in close coordination with the Federal Supreme Council. The president has the power to veto their decisions if he feels that there is a just cause to do that. However, the council may need the support of members of the Federal Supreme Council to veto a decision made by the president. As Kraft and Furlong (2013) say, the Federal National Council acts as a subordinate or lower house to the Federal Supreme Council. The Judiciary is tasked with the responsibility of interpreting the law. The highest court in this country is the Supreme Court.

Policy-Making Process in the United Arab Emirates

Policymaking processes in the United Arab Emirates can be understood by looking at the bodies and authorities responsible for various tasks within the government and non-governmental institutions. The figure below may help in this analysis.

Figure 4: Policy Making Levels

As shown in the figure above, the Federal Supreme Council plays a central role in the policymaking in this country. The president, acting as the head of the Supreme Council, has a mandate to make decrees that are to be implemented by all levels of the government. For instance, when the country is to go to war, it is the responsibility of the president and his council to make the approval before the military can be allowed to engage in any war. According to Blanchard (2012), there are so many policies in this country that have been made through a decree by the president. This is so because he has the legislative powers vested in him. Such decrees are considered as important as any other laws within the country. The prime minister is the head of the cabinet, which is always referred to as the Council of Ministers (Khalid, 2013). Individual ministers in this council are assigned ministries that they have to run as per the expectation of the Emiratis and the appointing authorities.

In many cases, these ministers are forced to come up with policies relevant to their ministry. For instance, the country has been trying to redefine its education system to be in line with that of the international standards. Coming up with relevant policies that can help in redefining the policies in the education sector involves many stakeholders. Teachers, parents, and even the learners themselves are the major actors who should be involved when coming up with new policies. According to Musa (2014), this ministry has embraced a system where public participation is highly encouraged. This means that citizens of this country are given forums where they can air their views on the changes they feel should be made in the education system in order to address the current gaps. The minister has the final word and can propose changes to be made on the suggestion presented to him by the technocrats in the field of education.

In the defense forces, the system is almost a complete opposite of how policies are made in the education sector. Everything is done in a classified manner, with members of the public and junior officers in this ministry playing minimal or no role at all in the formulation of the policies. Each of the ministries has its own ways of making its policies. The prime minister may intervene, especially where the policy raises public attention.

The Federal National Council has the principal responsibility of making policies in this country. It is responsible for the enactment of all the federal laws through acts of parliament. However, these laws must be approved by the president. As Khalid (2013) says, the president may not appear in any of the sittings of this council. However, his views cannot be disregarded because he must append his signature on the legislation before they become laws.

The rulers of each of the seven emirates and their councils also have the mandate to come up with the policies relevant under the local context. At this level of governance, both formal and informal actors play an important role in coming up with relevant laws. The formal actors are the government officials who are assigned official roles within various departments. They can give their expert opinions on issues they may want to be changed in the current laws for the efficient running of their departments. The informal actors are the citizens of this country, including the business fraternity, who may want to see changes in various policies to make life or business environment better. Their views must always be taken into consideration to avoid mass protests due to policies they consider oppressive.

The municipal council, sometimes known as the local government, is the third governance unit in the country (Musa, 2014). The councils have the mandate to come up with local-level laws and policies which govern how local players relate and act within their area of jurisdiction. The municipal leaders must take into consideration the views of private citizens when coming up with the laws. Civil society also has a role to play in making the policies in this country. According to Musa, (2014), the number of civil societies fighting for women rights in the United Arab Emirates has significantly increased. Their actions have helped in increasing the number of cabinet ministers to four.

Possible changes

The processes and systems in the country’s governance system are working well, and that explains why the country has remained peaceful despite the political instability in many other countries in the region. However, I feel that the country can do better when some changes are made. Given an opportunity, I may consider reducing the powers of the president. Since he has the mandate to govern this country, some of the powers given to him give the presidency absolute authority. This power should be spread to other arms of the government such as the Federal Supreme Council, Federal National Council, and the Federal Judiciary.

Policy development experienced by the founder of the UAE nation-state

Sheikh Zayed bin Sultan Al Nahyan, the founding leader of the United Arab Emirates, made massive contributions to the development of this country. Musa (2014) describes him as a man who was keen to protect the rights of all the people living in the country, irrespective of their religious affiliations or any other demographical classifications. In this section, the researcher will look at the major successes and challenges in policy development experienced by this leader.

Successes in policy development

According to Khalid (2013), Sheikh Zayed developed policies that are widely believed to be the reason why the United Arab Emirates has remained united and very peaceful since it gained independence. One of the policies that made him popular not only in the country but also in the world was the decree that gave all the Emiratis of all faiths to worship without any intimidation. As a Muslim ruler in a country where most of the citizens are Muslims, it was expected that he would suppress other religious practices, just as other regional leaders had done. However, he came up with a policy that gave freedom of worship to everyone. To this day, the United Arab Emirates remains one of the few countries in the Arab world where Christians and people of other faiths can worship without the fear of intimidation.

It was the idea of Sheikh Zayed to build a modern state where all the necessary amenities were made readily available to the locals. He came up with the policy using the available resources in the country to modernize the state and bring to people all the amenities that they needed. He insisted on transforming the country from an oil-dependent economy to a new era economy that largely depends on the service industry. It is under such policies that the city of Dubai emerged as one of the tourist destinations in the world. The policies helped in modernizing the roads, hospitals, airports, and many other sectors of the economy.

Sheikh Zayed’s policy on education has earned him praises among his critics and followers alike. When he took power, many students had to travel to the United Kingdom and other Western countries for further education. He was not pleased with this trend. He wanted local schools that could offer local solutions to the country’s economy. He initiated heavy investments in the field of education, building modern universities equipped with state-of-the-art libraries and laboratories. As Blanchard (2012) puts it, his policies revolutionized the education sector in the country. His policies regarding expatriates working in the country saw many experts in the field of education come from all over the world to the country to render their services. These expatriates in the field of education brought inexperience that was used in transforming the education system in the country. The country currently boasts of one of the best education systems that focus on the local factors but from a global perspective.

Sheikh Zayed came up with the public participation policy when making laws that affect the masses or a specific group of people. He believed that all the Emiratis had a responsibility in defining how they wanted to be governed. For that matter, he encouraged public participation at all levels of governance. Khalid (2013) says that this partly explains why this country has remained very peaceful. He allowed people to engage the government at all levels, and this helped in eliminating oppressive laws.

Weaknesses in policy development

Many people who knew Sheikh Zayed or read about him in historic records all agree that he was a great leader whose policies acted as the glue that has united the country since independence. However, some critics argue that this great ruler had some weaknesses in his policy development. After gaining power, Zayed came up with policies that encouraged an influx of foreign nationals into the country. According to the data given by the United Nation in 2013, the country is home to about 9.5 million people. More than 80% of this population is made up of immigrants. Some local Emiratis argue that this has left them at the mercy of the foreigners in their own land. Coming up with laws that will send 80% of the people currently residing in this country back to their home country is almost impossible. Another criticism leveled against him is the approach he took in enhancing media freedom in the country. Indeed he helped ensure that the state did not interfere in any way with the freedom of media. However, he encouraged the media to regulate themselves and avoid excessive criticism directed to the rulers and the royal families. Some critics argue that this in itself was an interference with the freedom of media. The respect journalists had for him made them obey his request as if it was a written law.

Lessons for the current government

The current government can learn a lot from the administration of Sheikh Zayed. According to Khalid (2013), rulers of the current world must realize that the real power is vested in the people. The Arab Spring witnessed in the recent past is a clear demonstration of this. Some of the greatest dictators and military rulers in the Arab World such as Hosni Mubarak of Egypt and Muammar Gaddafi of Libya were forced out of power by the will of people. Zayed’s administration insisted on involving the public when it comes to issues of governance because they hold the real power. The current administration must learn from this. It must ensure that it embraces public participation in policy-making as much as possible. This will help ensure that new policies developed by the government are clearly reflecting the needs of the masses.

Another important lesson that the current government needs to observe is one education. Musa (2014) says that education is very important in enhancing the quality of life among the future population. Zayed’s administration did a lot to ensure that the level of education was improved to that of international standards. The government invested heavily in this sector, and this paid off when the local universities started getting favorable rankings globally. The current administration should continue with this trend to ensure that we have education systems that can help in solving the local problems. Above all, this government should learn from Zayed’s administration how to have a united society where everyone feels respected and cared for by the state and fellow citizens. The country needs political stability to achieve success.

References

Blanchard, C. (2012). United Arab Emirates Company Laws and Regulations Handbook. New York: McGraw-Hill Education.

Khalid, S. (2013). How to invest, start and run profitable business in the United Arab Emirates guide. London: McMillan.

Kraft, M. & Furlong, S. (2013). Public Policy: Politics, Analysis, and Alternatives. Los Angeles: Sage Publishers.

Musa, A. (2014). United Arab Emirates insolvency laws and regulations handbook: Strategic information. New York: Cengage.

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