Saudi author arrested for tweeting

Social media and self-censorship

He writes books about sex, religion and politics, is critical of Islamism...and lives in Saudi Arabia. Gulf News reports that the novelist Turki Al Hamad had been detained last month, did not come as a surprise.

However, it was not a book, but a tweet that broke the camel’s back.

On  22 December, Al Hamad - whose novels are banned in Saudi Arabia, Bahrain, and Kuwait -  wrote :

@TurkiAlHamad: Our Prophet has come to rectify the faith of Abraham, and now is a time when we need someone to rectify the faith of Mohammed.

In a country like Saudi Arabia, there is nothing more dangerous than religion. Faced with the world’s fastest growing population of Twitter users, the government is making clear that it will not tolerate theological debate online.  

The arrest of Al Hamad contradicts the image of Saudi’s relatively liberal Twittersphere. The New York Times’ October 2012 article, “Saudis Cross Social Boundaries on Twitter,” argued social media has brought new freedoms to Saudis:

Open criticism of the state has long been taboo in Saudi Arabia...But after the Arab uprisings in early 2011, Saudis began taking to Twitter in vast numbers to express their frustrations, offering a new window into an opaque and profoundly conservative country...critics of various kinds – from prominent lawyers to feminists to ordinary citizens – have acquired large followings as they deplore corruption and injustice. Most Saudis now seem to post under their own names and photographs, a bold step away from the timid anonymity of the past.

Saudi’s are certainly active online and it is true they do criticise corruption and oppression. But Twitter is also subject to a great deal of self-censorship. There remain “red lines,” and religion is a major one of these.

The Saudi royal family has long been extremely hostile to differing religious interpretations. They have long repressed Saudi Shi’as. Shocked Muslims worldwide watched last year as the Saudi government bulldozed religious sites in Mecca, which did not fit their strict interpretation of  religion. Now, this campaign is turning its attention online.

In April 2011, a royal decree was passed, cracking down on electronic communications that insult Islam. In December last year, Raif Bedawi, a 30-year old website editor  from Jeddah, was condemned to death. His crime - setting up a website in which users could discuss the difference between “popular” and “politicised” Islam. This month, Saudi writer,  Hamza Kashgari, was arrested for tweeting about the Prophet Mohammad.

Tweeters and bloggers may be allowed to complain about the government, but to debate Islam would be to debate the very basis of the state. The royal family relies on legitimacy conferred from the clerics. The state was founded on the fundamentalist Wahhabist school of Islam. It is this school that justifies the Saudi king as the rightful “guardian of the holy places.” Court rulings — used to control dissidents — are rooted in unmatched freedom to interpret religious laws.

With the detention of such a prominent figure as Al Hamad, the  House of Saud is indicating that religion can’t be questioned, even if its only in 140 characters.  As Eman al-Guwaifly wrote, the message they are sending is:

If we have arrested Turki al-Hamad, who has not been writing anywhere except Twitter, then none of you is safe.

Ralph Orlowski / Getty
Show Hide image

Labour's investment bank plan could help fix our damaging financial system

The UK should learn from the success of a similar project in Germany.

Labour’s election manifesto has proved controversial, with the Tories and the right-wing media claiming it would take us back to the 1970s. But it contains at least one excellent idea which is certainly not out-dated and which would in fact help to address a key problem in our post-financial-crisis world.

Even setting aside the damage wrought by the 2008 crash, it’s clear the UK’s financial sector is not serving the real economy. The New Economics Foundation recently revealed that fewer than 10% of the total stock of UK bank loans are to non-financial and non-real estate businesses. The majority of their lending goes to other financial sector firms, insurance and pension funds, consumer finance, and commercial real estate.

Labour’s proposed UK Investment Bank would be a welcome antidote to a financial system that is too often damaging or simply useless. There are many successful examples of public development banks in the world’s fastest-growing economies, such as China and Korea. However, the UK can look closer to home for a suitable model: the KfW in Germany (not exactly a country known for ‘disastrous socialist policies’). With assets of over 500bn, the KfW is the world’s largest state-owned development bank when its size is measured as a percentage of GDP, and it is an institution from which the UK can draw much-needed lessons if it wishes to create a financial system more beneficial to the real economy.

Where does the money come from? Although KfW’s initial paid-up capital stems purely from public sources, it currently funds itself mainly through borrowing cheaply on the international capital markets with a federal government guarantee,  AA+ rating, and safe haven status for its public securities. With its own high ratings, the UK could easily follow this model, allowing its bank to borrow very cheaply. These activities would not add to the long-run public debt either: by definition an investment bank would invest in projects that would stimulate growth.

Aside from the obviously countercyclical role KfW played during the financial crisis, ramping up total business volume by over 40 per cent between 2007 and 2011 while UK banks became risk averse and caused a credit crunch, it also plays an important part in financing key sectors of the real economy that would otherwise have trouble accessing funds. This includes investment in research and innovation, and special programs for SMEs. Thanks to KfW, as well as an extensive network of regional and savings banks, fewer German SMEs report access to finance as a major problem than in comparator Euro area countries.

The Conservatives have talked a great deal about the need to rebalance the UK economy towards manufacturing. However, a real industrial policy needs more than just empty rhetoric: it needs finance. The KfW has historically played an important role in promoting German manufacturing, both at home and abroad, and to this day continues to provide finance to encourage the export of high-value-added German products

KfW works by on-lending most of its funds through the private banking system. This means that far from being the equivalent of a nationalisation, a public development bank can coexist without competing with the rest of the financial system. Like the UK, Germany has its share of large investment banks, some of which have caused massive instabilities. It is important to note that the establishment of a public bank would not have a negative effect on existing private banks, because in the short term, the UK will remain heavily dependent on financial services.

The main problem with Labour’s proposal is therefore not that too much of the financial sector will be publicly owned, but too little. Its proposed lending volume of £250bn over 10 years is small compared to the KfW’s total financing commitments of  750 billion over the past 10 years. Although the proposal is better than nothing, in order to be effective a public development bank will need to have sufficient scale.

Finally, although Brexit might make it marginally easier to establish the UK Investment Bank, because the country would no longer be constrained by EU State Aid Rules or the Maastricht criteria, it is worth remembering that KfW’s sizeable range of activities is perfectly legal under current EU rules.

So Europe cannot be blamed for holding back UK financial sector reform to date - the problem is simply a lack of political will in the current government. And with even key architects of 1980s financial liberalisation, such as the IMF and the economist Jeffrey Sachs, rethinking the role of the financial sector, isn’t it time Britain did the same?

Dr Natalya Naqvi is a research fellow at University College and the Blavatnik School of Government, University of Oxford, where she focuses on the role of the state and the financial sector in economic development

0800 7318496