The emergence, and proliferation, of Islamist militant organizations, ranging from the Islamic State of Iraq and Syria (ISIS) and Al-Shabbaab in Somalia, to Boko Haram in Nigeria and other parts of West Africa, has once again demonstrated that political Islam is an important global political issue. It has also highlighted a number of challenging, but increasingly crucial analytical questions: How popular a force is militant Islam, and how is it distinguishable from more conservative and moderate forms of Islamic activism? Does the rise of Islamic militancy across many regions of the Muslim world represent a “clash of civilizations,” or is its emergence a result of locally embedded, but globally linked, economic and social forces? And, finally, given the considerable diversity of socioeconomic formations within Muslim societies when, and under what conditions, do religious rather than ethnic cleavages serve as the most salient source of political identification?

In Egypt migrant remittances and the flow of petrodollars in the era of the oil boom provided capitalization of Islamic banks and a host of Islamic investment companies that operated outside the system of state regulation. Such bankers drew on the rapidly growing wealth of those businessmen with long-standing connections in the Gulf, including, most importantly, members and sympathizers with the Muslim Brotherhood (MB). This boom in labor export and remittance flows also helped shape Egyptian national economic functions, out-migration and the burgeoning informal economy afforded the Egyptian state enough “relative autonomy” to allow it to expand the private sector and begin to decentralize the country’s economic system. It enabled the Egyptian state to relax foreign exchange regulations to stimulate a foreign capital influx. However, the unintended consequences of these policies were opening the door for Islamic financial institutions, which helped finance and popularize the middle class-based Islamic movement.

In Somalia the boom in labor remittances inflows fueled a different type of informal economy. More specifically, while the oil boom period reduced the Somali state’s ability to regulate the economy as in Egypt and Sudan, the consequences of this development differed. In Somalia informal financial networks facilitated a thriving commercial sector comprised of firms oriented around clan families. It was not religious or class affiliations, but rather ethnic mobilization and conflict that became the most salient. This difference was due to two factors: the dearth of formally organized institutions (i.e., official banks, and publicly registered enterprises); and the fact that President Siad Barre pitted one clan against another in his search for legitimacy and financed a patronage system excluding clans and constituencies that opposed his rule. Thus, with the expansion of the parallel economy, the politics of ethnicity and personalistic networks quickly eclipsed the power of the state.

Failed states, I argue in the conclusion, do not necessarily afford terrorists a conducive context for recruiting new members. This is due to four challenges that confront terrorist organizations. The first challenge is the lack of government-enforced order in failed states that is needed to provide security against local authorities. Second, is the unreliability of local allies, as in the case of Somalia, where local ties of clan and sect overlap in complicated ways. The third challenge is that the better an area is for training recruits, the more remote and sparsely populated it is, the harder it to meet basic sustenance needs. The fourth problem is the challenge of getting fiscal resources in place. Financial services in the region continue to be weak and Islamic militants have not been able to effectively use the Hawalaat to provide key financial services in weakly governed areas of the Horn of Africa.

Chapter 6 demonstrates how the varied conversion of diaspora activists' resources—their home-country network ties, social capital, and fungible resources—mitigated their interventions in the Libyan, Syrian, and Yemeni revolutions from the United States and Great Britain.

Chapter 2 provides a brief historical background of Middle Eastern migration to the west and details how authoritarian-nationalist regimes in Libya, Syria, and Yemen pushed exiles and emigrants to the United States and Great Britain. By examining the state of diaspora mobilization from the 1960s to the eve of the Arab Spring in 2010, the author demonstrates anti-regime movements were small, atomized, and considered partisan by their conationals. Neither Libyan and Syrian exiles nor well-resourced white-collar professionals were able to forge public member-based associations or initiate large anti-regime protest events during this period. Yemeni movements, meanwhile, focused on supporting southern separation from the Yemeni state, rather than on the reform or liberalization of the Yemeni government.