ClydeR
02-13-2009, 10:13 AM
Recession has hit Dubai, the ritzy metropolis in the United Arab Emirates. The surprising revelation that has come with Dubai's hard times is the fact that Dubai still has debtor's prisons.
“I’m really scared of what could happen, because I bought property here,” said Sofia, who asked that her last name be withheld because she is still hunting for a new job. “If I can’t pay it off, I was told I could end up in debtors’ prison.”
With Dubai’s economy in free fall, newspapers have reported that more than 3,000 cars sit abandoned in the parking lot at the Dubai Airport, left by fleeing, debt-ridden foreigners (who could in fact be imprisoned if they failed to pay their bills). Some are said to have maxed-out credit cards inside and notes of apology taped to the windshield.
More... (http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html)
The logic of debtor's prisons eludes me. If someone had no money to pay his debts, then the practice was to lock him up in prison, where he would have no way of earning money, until he paid his debt. Hmm.
What should be nearly as disturbing to potential investors in, or residents of, Dubai is that the government is apparently trying to cover up the economic condition of its city.
No one knows how bad things have become, though it is clear that tens of thousands have left, real estate prices have crashed and scores of Dubai’s major construction projects have been suspended or canceled. But with the government unwilling to provide data, rumors are bound to flourish, damaging confidence and further undermining the economy.
Instead of moving toward greater transparency, the emirates seem to be moving in the other direction. A new draft media law would make it a crime to damage the country’s reputation or economy, punishable by fines of up to 1 million dirhams (about $272,000). Some say it is already having a chilling effect on reporting about the crisis.
“I’m really scared of what could happen, because I bought property here,” said Sofia, who asked that her last name be withheld because she is still hunting for a new job. “If I can’t pay it off, I was told I could end up in debtors’ prison.”
With Dubai’s economy in free fall, newspapers have reported that more than 3,000 cars sit abandoned in the parking lot at the Dubai Airport, left by fleeing, debt-ridden foreigners (who could in fact be imprisoned if they failed to pay their bills). Some are said to have maxed-out credit cards inside and notes of apology taped to the windshield.
More... (http://www.nytimes.com/2009/02/12/world/middleeast/12dubai.html)
The logic of debtor's prisons eludes me. If someone had no money to pay his debts, then the practice was to lock him up in prison, where he would have no way of earning money, until he paid his debt. Hmm.
What should be nearly as disturbing to potential investors in, or residents of, Dubai is that the government is apparently trying to cover up the economic condition of its city.
No one knows how bad things have become, though it is clear that tens of thousands have left, real estate prices have crashed and scores of Dubai’s major construction projects have been suspended or canceled. But with the government unwilling to provide data, rumors are bound to flourish, damaging confidence and further undermining the economy.
Instead of moving toward greater transparency, the emirates seem to be moving in the other direction. A new draft media law would make it a crime to damage the country’s reputation or economy, punishable by fines of up to 1 million dirhams (about $272,000). Some say it is already having a chilling effect on reporting about the crisis.