An Economic Case for Australia to Tackle Islamophobia ??
To gain a better understanding of the context, let us start with reviewing some statistics. According to the Pew Research Center there are 53 Muslim-majority nations in the world. So what does Muslim-majority mean? A Muslim-majority country is a nation where the religion of Islam is widespread and the majority of the population identifies as Muslims. These nations are collectively known as the Muslim world. There are no universal rules that identify what makes a Muslim-majority country, although many people go by the standard that a Muslim population of more than 50% constitutes a Muslim-majority nation. According to a study in 2015, Islam has 1.8 billion adherents, making up about 24.1% of the global population spanning every continent including South America and Europe. This vast cultural diversity means distinctness and variety in practice and customs. The communities spread all across the globe express a multiplicity of interpretations, levels of religious commitment and engagement. However, the vast majority identifies as ‘Muslims’ whether it be cultural or practicing.
According to a Pew Research Centre Study, by 2030, 29 percent of the global young population (15–29) is projected to identify as Muslim. Despite the significant economic challenges (job creation, training, social services, etc.) this demographic trend presents to its economies, it also reflects the significant proportion of a young consumer market and an entrepreneurship engine.
The report indicated that 57 mostly Muslim-majority member countries of the OIC (Organisation for Islamic Cooperation) had a GDP (PPP based) in 2015 of $17 trillion, which represented 15 percent of the total global GDP (PPP based) of $113 trillion in 2015.
Even in a climate of slow global economic growth, these economies are growing at a faster rate than the global economy. Based on the latest IMF growth projections (April 2016), the average projected growth of the OIC markets between 2015–21 is expected to be 4.19 percent compared to the rest of the world’s GDP growth, averaging 3.6 percent during that same period, with 21 of the OIC countries projected to have a higher growth rate than IMF’s emerging market and developing economies. However, a notable development is that the fastest growing OIC economies are demographic rich, industrial economies such as Indonesia, Bangladesh, Pakistan, Uganda, Malaysia, rather than oil-dependent OIC countries.
Linking this to the notion of an economic opportunity, if you think of these nation states as a single market it is larger than China and India. According to The Economist, the Muslim market was worth over US$3.6 trillion in 2013, and is projected to be worth over US$5 trillion by 2020.
In 2019 I wanted to explore these markets and their potential firsthand. So, I decided to travel to U.A.E, Jordan, Pakistan & Bangladesh. My goal was not to only travel but also interact with the local population and find out more about this marketplace. As an entrepreneur I wanted to undertake primary market research and keep segmenting this market. The people across these 4 countries were vastly different linguistically and culturally, although all of them identified as Muslims. One other thing they all shared in common upon hearing that I am visiting from Australia was in regards to Islamophobia in the Australian society. In the past, the first question people asked was if they would be able to see Kangaroos everywhere. Unfortunately, this was no longer the case.
I have been working in the International Education industry for the past 10 years and therefore I can’t help but link this topic to the sector as I am passionate about the future of the sector. In order to maintain industry growth, weaknesses and opportunities must be analysed and addressed. Therefore, let us have a closer look at some of Australia’s top student source markets. Currently India, Nepal and Vietnam make up second, third and fifth largest student markets whereas Indonesia, Bangladesh and Pakistan do not even crack the Top 5. This is rather baffling, considering that Indonesia with a population of 264 million is the largest economy in South East Asia and Bangladesh with a population of 160 million is the second largest economy of South Asia. Yet, these remain untapped student markets whereas Nepal which has a population of 29 million people is the third largest source market. One can only wonder to what degree lack of knowledge and Islamophobia has impacted business decision making.
From an economic point of view, this is a grand loss. It has already been established that the market size and economic characteristics are promising, and with Australia’s strategic geographical position, a proper review of recruitment strategies and investments into true diversification capturing these markets seems worthwhile and necessary. The lack of knowledge about these markets seems prevalent among Higher Education institutions, however this also creates an exciting opportunity to improve universities’ expertise and re-focus marketing strategies.
I have been meaning to write this article for a while but it never seemed like the right time. With an impending recession, tensions with China, slowdown of the Indian economy I believe now is the right time for us to begin this conversation. If Australia is to continue its economic prosperity it must address Islamophobia within its society and its institutions. I believe Australia will be able to sustain its economic growth by strategically diversifying its export markets and within this diversification strategy it must include the Muslim majority nations in the Asia-Pacific region in particular. Let us not repeat the mistake of ‘putting all our eggs in one basket’ again and let’s move away from a single market focus that inherently inhibits great risk. Instead let’s focus on strategically diversifying the export markets. When you target the Muslim market you are targeting 53 nations thus diversifying your market from the beginning and in turn reducing risk.
The Asia-Pacific region hosts 62% of the global Muslim population. If we fail to capture this market someone else will and being the neighbour to the largest Muslim majority nation in the world, this will be a missed opportunity for Australia and its people.
Therefore, I would like to conclude by urging both the public and private sector in Australia to begin exploring this young and dynamic marketplace strategically for the future prosperity of Australia and our economy.