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Chapter Nine

                 about and involve themselves actively in the political scene of this
                 Federation have, and often express, their doubts about its function
                  and even its ability to survive. Apart from the quantifiable  reasons
                  for such doubts, some of which will be dealt with below, these doubts
                  originate to a large extent in the uncertainties in the minds of actors
                  and commentators about what a federal system can mean for a State.
                  Many people wrongly assume that the federal solution is only  one
                  step removed from a disjointed conglomerate of individual Stales
                  and that the federal Stale should therefore really be treated  as a
                  transitional stage to be followed as soon as feasible by a centralistic
                  Stale which, in their view, is the best and only guarantee against a
                  break up of the UAE. They see a great danger in the diversity of the
                  seven Slates, in the very different stages of each Slate’s development
                  and in the individualistic approach of their local governments. They
                  aspire to even out these differences. To them the most obvious way to
                  this end seems to be maximum centralisation and minimum power to
                  the individual State governments.
                    Yet there is also the argument that the cle facto preservation of
                  independent statehood in each of the seven Emirates may in the end
                  render vital strength to the Federation, because it is in the individual
                  States where the tribal grass-root democracy survives best, while a
                  formal western style democracy is still in the process of being grafted
                  onto the present system of government, as it evolved during the first
                  ten years of the UAE’s existence.
                    The validity of either of the two views on the most desirable course
                  of the young State’s attitude to the federal system can only be
                  determined after considering the causes of inter-federal disputes and
                  of as yet unresolved problems which the Federation faces.
                    Divergence and tension exist in particular in such vital issues as
                  financing and defending the Federation, and influencing the popu­
                  lation structure. Last but not least the various degrees of assertion of
                  independence by the seven ruling families and by each Emirate’s
                  merchant community in various fields periodically disturb the
                  political climate within the UAE.
                   The financial issue has several dimensions. Firstly there is the
                  question of whether Abu Dhabi as the source of the Slate’s revenues
                 should expect to dominate the Federation’s policies. Or on the other
                 hand, can the Federation be considered a viable entity if the
                 individual Emirates accept all the material benefits which they gain
                 from the federal government, while withholding at will acknowledge-

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