August 13, 2006

globalization inaction

During the last few years, Syria has been gradually integrating into the global economy. In addition to the intrusion of international cuisine, international companies and financial institutions have begun taking up residence Their entrance has coincided with an explosive increase in internet access. Connections are more widely available, faster, and cheaper than they were in Beirut. Some places even have wireless.

So, when one of my fellow swimmers asked for help finding disposable contact lenses--I know, the things one chats about between sets--I figured, no problem! Did some quick research and found a site that ships to Syria, has reasonable prices, and is BBB approved.

One day after practice, we went to a nearby net cafe. I showed her the site, where to enter her prescription information, and verified delivery options. Everything was going--sorry--swimmingly, until it was time to pay.

And suddenly I realized: she doesn't have a credit card. And she doesn't have checks. And she can't get a money order in $. And, even if she could get dollars in hard currency, the site doesn't accept cash.

Borders, which had seemed so fluid a moment before, slammed shut. The commercial universe contracted. Unless I'm blanking on some obvious alternative payment method, she can't buy products online.

Ironically--or, maybe, tragically--the proliferation of internet retail may have made it HARDER for people at the margins of the global economy to make international purchases. Before the Amazon age, retailers had to be more catholic about payment options. Now, the ubiquity of online charging means that merchants have little incentive to sustain alternative payment options. Why accept the hassle when it represents such a small percentage of potential business?

Maybe I've got the economics wrong, but it still means that the majority of Syrians can't buy anything that's not physically available within their borders, even if they have the financial means. In a country with relatively limited domestic industry and imports, this places serious constraints on material consumption.

Not necessarily a bad thing socio-culturally (says the California leftist in me), but if you believe in economic freedom (says the Chicago-an), a major impediment.

5 Comments:

Blogger biglou said...

That does seem like a stumper. PayPal says that you can send money from a bank account (without having a debit card, I believe), but does not list Syria as one of the countries that "works" with PayPal, so it may not be available there. It does seem like the Internet is really set up for use by users in the United States, and most Western European countries.

2:42 AM  
Blogger Owen said...

Is it not possible to get a credit card in Syria?

11:19 AM  
Blogger Emily said...

Maybe a local one. But the problem is, not only do you have to have a credit card, but it has to be visa, mastercard, discover, etc. And, since the US government has prohibited US financial institutions from dealing with Syria, I think this makes that impossible. like I said, though, there are holes in my econ knowledge here

7:05 PM  
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