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Arabica Robusta

First Egypt, next Venezuela? | venezuelanalysis.com - 0 views

  • The US and Israel are terrified of the threat of something similar occurring in the Arab world — should the democratic revolutions be successful and extend to exerting democratic control over oil and other resources.
  • However, as Santiago Alba Rico and Alma Allende said in a February 24 Rebelion article “From the Arab world to Latin America”, Venezuela and Cuba’s failure to condemn the brutal repression being carried out by the regime of Muammar Gaddafi’s against a popular revolt will have negative consequences for the anti-imperialist project in Latin America.
  • Ignoring the brutal reality of Gaddafi, who has been a friend in recent years of the West and its allied dictators, risks breaking ties with popular Arab movements, they pointed out.
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  • One thing is clear, just as the US has sought to prop up dictatorships in the Arab world, it will continue its struggle to defeat the popular revolutionary movements in Latin America.
Arabica Robusta

The Economics of Egypt's Coup » CounterPunch: Tells the Facts, Names the Names - 0 views

  • A major problem for foreign investors is angst about the legality of much of the privatization carried out under Mubarak. After the 2011 uprising, the corruption involved began to be exposed, a raft of legal challenges were launched, and judges started overturning deals under popular pressure.
  • Investors want to have their cake and eat it: no more corrupt Mubarakite officials, and at the same time no more challenges to corrupt investment deals (which often strip a state company of its assets and lay off workers, spiriting any profits abroad).
  • The Muslim Brotherhood (MB) government tried to square the circle. It allowed the illegal privatisations to be challenged, turned back the massive corruption, and encouraged a new class of small and more devout businessmen to build a new Egypt, emulating the Turkish miracle which unfolded under the Islamists there.
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    "A Bank of America report in February described a presidential bid by Field Marshal Abdel Fattah el-Sisi as "market-friendly in the near term", but warned that Sisi's holdover of officials and discredited policies from the Mubarak era did not bode well in the long term, suggesting it was "a watered down version of the pre-revolution regime"."
mehrreporter

ISIS is America's military arm for dividing Iraq - 0 views

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    Tehran, YJC. IRGC official says current developments in Iraq are only a scheme by the US to dissect Iraq.
Arabica Robusta

Pan-African News Wire: America's Plan B In Egypt: Bring Back the Old Regime - 0 views

  • Egypt was never cleansed of corrupt figures by the Muslim Brotherhood, which instead joined them. Key figures in Egypt, like Al-Azhar’s Grand Mufti Ahmed Al-Tayeb (who was appointed by Mubarak), criticized the Muslim Brotherhood when Mubark was in power, then denounced Mubarak and supported the Muslim Brotherhood when it gained power, and then denounced the Muslim Brotherhood when the military removed it from power.
  • Unless a democratically-elected government is killing its own people arbitrarily and acting outside the law, there is no legitimate excuse for removing it from power by means of military force. There is nothing wrong with the act of protesting, but there is something wrong when a military coup is initiated by a corrupt military force that works in the services of Washington and Tel Aviv.
  • Expecting to win the 2012 elections, at first the Egyptian military fielded one of its generals and a former Mubarak cabinet minister (and the last prime minister to serve under Mubarak), Ahmed Shafik, for the position of Egyptian president. If not a Mubarak loyalist per se, Shafik was a supporter of the old regime’s political establishment that gave him and the military privileged powers. When Ahmed Shafik lost there was a delay in recognizing Morsi as the president-elect, because the military was considering rejecting the election results and instead announcing a military coup.
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  • Before it was ousted, the Muslim Brotherhood faced serious structural constraints in Egypt and it made many wrong decisions. Since its electoral victory there was an ongoing power struggle in Egypt and its Freedom and Justice Party clumsily attempted to consolidate its political control over Egypt. The Muslim Brotherhood’s attempts to consolidate power meant that it has had to live with and work with a vast array of state institutions and bodies filled with its opponents, corrupt figures, and old regime loyalists. The Freedom and Justice Party tried to slowly purge the Egyptian state of Mubarak loyalists and old regime figures, but Morsi was forced to also work with them simultaneously. This made the foundations of his government even weaker.
  • Just as Hamas was forced by the US and its allies to accept Fatah ministers in key positions in the Palestinian government that it formed, the Muslim Brotherhood was forced to do the same unless it wanted the state to collapse and to be internationally isolated. The main difference between the two situations is that the Muslim Brotherhood seemed all too eager to comply with the US and work with segments of the old regime that would not challenge it. Perhaps this happened because the Muslim Brotherhood feared a military takeover. Regardless of what the reasons were, the Muslim Brotherhood knowingly shared the table of governance with counter-revolutionaries and criminals.
  • As a result of the Muslim Brotherhood’s collaboration with the US and Israel, large components of the protests in Egypt against Morsi were resoundingly anti-American and anti-Israeli.
  • The Muslim Brotherhood has tried to use the Obama Administration to ascend to power whereas the Obama Administration has used the Muslim Brotherhood in America’s war against Syria and to slowly nudge the Hamas government in Gaza away from the orbit of Iran and its allies in the Resistance Bloc. Both wittingly and unwittingly, the Muslim Brotherhood in broader terms has, as an organization, helped the US, Israel, and the Arab petro-sheikhdoms try to regionally align the chessboard in a sectarian project that seeks to get Sunnis and Shias to fight one another.
  • Furthermore, the Muslim Brotherhood had its own agenda and it seemed unlikely that it would continue to play a subordinate role to the United States and Washington was aware of this.
  • Mohammed Al-Baradei (El-Baradei / ElBaradei), a former Egyptian diplomat and the former director-general of the politically manipulated International Atomic Energy Agency (IAEA), has been offered the post of interim prime minister of Egypt by the military. He had returned to Egypt during the start of the so-called Arab Spring to run for office with the support of the International Crisis Group, which is an organization that is linked to US foreign policy interests and tied to the Carnegie Foundation, the Ford Foundation, and George Soros’ Open Society Institute.
  • Many of the Muslim Brotherhood’s supporters are emphasizing that an unfair media war was waged against them. The Qatari-owned Al Jazeera Mubasher Misr, Al Jazeera’s Egyptian branch which has worked as a mouth piece for the Muslim Brotherhood, has been taken off the air by the Egyptian military. This, along with the ouster of Morsi, is a sign that Qatar’s regional interests are being rolled back too. It seems Saudi Arabia, which quickly congratulated Adli Al-Mansour, is delighted, which explains why the Saudi-supported Nour Party in Egypt betray the Muslim Brotherhood.
  • Despite the media reports and commentaries, the Muslim Brotherhood was never fully in charge of Egypt or its government. It always had to share power with segments of the old regime or “Washington’s and Tel Aviv’s men.
  • The discussions on Sharia law were predominately manipulated by the Muslim Brotherhood’s opponents primarily for outside consumption by predominantly non-Muslim countries and to rally Egypt’s Christians and socialist currents against Morsi. As for the economic problems that Egypt faced, they were the mixed result of the legacy of the old regime, the greed of Egypt’s elites and military leaders, the global economic crisis, and the predatory capitalism that the United States and European Union have impaired Egypt with. Those that blamed Morsi for Egypt’s economic problems and unemployment did so wrongly or opportunistically. His administration’s incompetence did not help the situation, but they did not create them either. Morsi was manning a sinking ship that had been economically ravaged in 2011 by foreign states and local and foreign lenders, speculators, investors, and corporations.
  • Their hesitation at restoring ties with Iran and their antagonism towards Syria, Hezbollah, and their Palestinian allies only managed to reduce their list of friends and supporters.
  • The US, however, will be haunted by the coup against Morsi. Washington will dearly feel the repercussions of what has happened in Egypt. Morsi’s fall sends a negative message to all of America’s allies. Everyone in the Arab World, corrupt and just alike, is more aware than ever that an alliance with Washington or Tel Aviv will not protect them. Instead they are noticing that those that are aligned with the Iranians and the Russians are the ones that are standing.
  • An empire that cannot guarantee the security of its satraps is one that will eventually find many of its minions turning their backs on it or betraying it. Just as America’s regime change project in Syria is failing, its time in the Middle East is drawing to an end. Those who gambled on Washington’s success, like the Saudi royals, the Muslim Brotherhood, and Turkey’s Prime Minister Recep Erdogan, will find themselves on the losing side of the Middle East’s regional equation.
Arabica Robusta

How the West Manufactures "Opposition Movements" - 0 views

  • Hatay was overran by Saudi and Qatari jihadi cadres, pampered by the US, EU and Turkish logistics, support, weaponry and cash. The terror these people have been spreading in this historically peaceful, multi-cultural and tolerant part of the world, could hardly be described in words.
    • Arabica Robusta
       
      Assad is part of this "peaceful, multi-cultural and tolerant part of the world"? I do not believe so.
  • the local elites, right now in January 2014, are doing whatever they can, to prevent the re election of Ms Dilma Roussef… You are an experienced Latin America´s observer, you know very well…
  • I witnessed President Morsi of Egypt (I was critical of his rule at first, as I was critical of the government of Mr. Shinawatra, before real horror swept both Egypt and Thailand), being overthrown by the military, which, while in its zealous over-drive, managed in the process to murder several thousands of mainly poor Egyptian people.
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  • The logic and tactics in Egypt were predictable: although still capitalist and to a certain extent submissive to IMF and the West, President Morsi and his Muslim Brotherhood, were a bit too unenthusiastic about collaborating with the West. They never really said ‘no’, but that had not appeared to be enough for the Euro-North American regime, which, these days, demands total, unconditional obedience as well as the kissing of hands and other bodily parts.
  • All this is nothing new, of course. But in the past, things were done a little bit more covertly. These days it is all out in the open. Maybe it is done on purpose, so nobody will dare to rebel, or even to dream. And so, the revolution in Egypt has been derailed, destroyed, and cruelly choked to death. There is really nothing left of the so-called ‘Arab Spring’, just a clear warning: “never try again, or else”.
  • Now in Egypt, Mubarak’s clique is rapidly coming back to power. He was a well-trusted ‘devil’, and the West quickly realized that to let him fall would be a serious strategic blunder; and so it was decided to bring him back; either personally, or at least his legacy, at the coast of thousands of (insignificant) Egyptian lives, and against the will of almost the entire nation.
  • Ukraine is not a fresh victim of destabilization tactics of the European Union, which is so sickly greedy that it appears it, cannot contain itself anymore. It salivates, intensively, imagining the huge natural resources that Ukraine possesses. It is shaking with desire dreaming of a cheap and highly educated labor force.
  • Of course the EU cannot do in Ukraine, what it freely does in many places like the Democratic Republic of Congo (DRC). It cannot just come and pay some proxy countries, as it pays Rwanda and Uganda (that are already responsible for the loss of over ten million Congolese lives in less than 2 decades), to plunder Ukraine and kill almost all those people that are resisting.
  • More than a month ago, a bizarre deal was proposed, where European companies would be allowed to enter and clean Ukraine of its natural resources, but the people of Ukraine would not be allowed to even come and work in the EU. The government, logically and sensibly, rejected the deal. And then, suddenly, Thai-style or Egyptian-style thugs appeared all over the streets of Kiev, armed with sticks and even weapons, and went onto trashing the capital and demanding the democratically elected government to resign.
  • In Africa, just to mention a few cases, tiny Seychelles, a country with the highest HDI (Human Development Index by UNDP) has for years been bombarded with criticism and destabilization attempts.
  • “We are trying to be inclusive, democratic and fair”, the Eritrean Director of Education recently told me, in Kenya. “But the more we do, the more we care about our people, the more infuriated Western countries appear to be.”
  • Bolivians almost lost their ‘white’ and-right wing province of Santa Cruz, as the US supported, many say financed the ‘independence movement’ there, obviously punishing the extremely popular government of Evo Morales for being so socialist, so indigenous and so beloved. Brazil, in one great show of solidarity and internationalism, threatened to invade and rescue its neighbor, by preserving its integrity. Therefore, only the weight of this peaceful and highly respectable giant saved Bolivia from certain destruction. But now even Brazil is under attack of the ‘manufacturers of opposition’!
  • What the West is now doing to the world; igniting conflicts, supporting banditry and terror, sacrificing millions of people for its own commercial interests, is nothing new under the sun.
Arabica Robusta

A revolution against neoliberalism? - Opinion - Al Jazeera English - 0 views

  • the real problem with the regime was not necessarily that high-ranking members of the government were thieves in an ordinary sense. They did not necessarily steal directly from the treasury. Rather they were enriched through a conflation of politics and business under the guise of privatization. This was less a violation of the system than business as usual. Mubarak’s Egypt, in a nutshell, was a quintessential neoliberal state.
  • Political scientist Timothy Mitchell published a revealing essay about Egypt’s brand of neoliberalism in his book Rule of Experts (the chapter titled "Dreamland" — named after a housing development built by Ahmad Bahgat, one of the Mubarak cronies now discredited by the fall of the regime). The gist of Mitchell’s portrait of Egyptian neoliberalism was that while Egypt was lauded by institutions such as the International Monetary Fund as a beacon of free-market success, the standard tools for measuring economies gave a grossly inadequate picture of the Egyptian economy. In reality the unfettering of markets and agenda of privatization were applied unevenly at best.
  • Egypt did not so much shrink its public sector, as neoliberal doctrine would have it, as it reallocated public resources for the benefit of a small and already affluent elite.
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  • Everywhere neoliberalism has been tried, the results are similar: living up to the utopian ideal is impossible; formal measures of economic activity mask huge disparities in the fortunes of the rich and poor; elites become "masters of the universe," using force to defend their prerogatives, and manipulating the economy to their advantage, but never living in anything resembling the heavily marketised worlds that are imposed on the poor.
  • It is not just Republicans who are implicated in this systemic corruption. Clinton-era Secretary of Treasury Robert Rubin’s involvement with Citigroup does not bear close scrutiny. Lawrence Summers gave crucial support for the deregulation of financial derivatives contracts while Secretary of Treasury under Clinton, and profited handsomely from companies involved in the same practices while working for Obama (and of course deregulated derivatives were a key element in the financial crisis that led to a massive Federal bailout of the entire banking industry).
  • However, in the current climate the most important thing is not the depredations of deposed Mubarak regime cronies. It is rather the role of the military in the political system.
  • it is almost unthinkable that the generals of the Supreme Military Council will willingly allow more than cosmetic changes in the political economy of Egypt. But they could be compelled to do so unwillingly
  • The period of military government probably will be as short as advertised, followed, one hopes, by an interim civilian government for some specified period (at least two years) during which political parties are allowed to organise on the ground in preparation for free elections. But interim governments have a way of becoming permanent.
  • In each case when governments (communist or apartheid) collapsed, "technocrats" were brought in to help run countries that were suddenly without functional governments, and create the institutional infrastructure for their successors.
  • The notion that the economy is in ruins — tourists staying away, investor confidence shattered, employment in the construction sector at a standstill, many industries and businesses operating at far less than full capacity — could well be the single most dangerous rationale for imposing cosmetic reforms that leave the incestuous relation between governance and business intact.
  • Ideologues, including those of the neoliberal stripe, are prone to a witchcraft mode of thinking: if the spell does not work, it is not the fault of the magic, but rather the fault of the shaman who performed the spell.
  • Egypt and Tunisia are the first nations to carry out successful revolutions against neoliberal regimes. Americans could learn from Egypt. Indeed, there are signs that they already are doing so. Wisconsin teachers protesting against their governor’s attempts to remove the right to collective bargaining have carried signs equating Mubarak with their governor. Egyptians might well say to America 'uqbalak (may you be the next).
Arabica Robusta

Pambazuka - Opposing massacres in Libya: A call for solidarity and vigilance - 0 views

  • Belatedly, after the Arab League expelled Libya, the chairperson of the AU Commission, Jean Ping, expressed ‘deep concern’ about what was going on in Libya. It is in the face of the timid position of the leaders of the African states that this statement wants to forthrightly express solidarity with the peoples of Libya and their demand to end the Gaddafi police state.
  • It is in the midst of this confusion it is necessary to say just as how Tanzanians did not classify all Libyans as supporters of Idi Amin of Uganda when Gaddafi used his mercenaries to back up that dictator in invading Tanzania in 1979 so it is also necessary to distinguish between poor African migrant workers in Libya and mercenaries and military entrepreneurs who are the leftovers from the military adventures of Gaddafi. This kind of clarity is necessary so that Africans in Libya and in other parts of the continent can distinguish between the oppressed and their oppressors in order to form the solidarity that could bring about true revolutionary transformation of relations of peoples across the Nile and the Sahara.
  • Libya is supposed to be the country in Africa with the highest Human Development Index ranking in Africa. Yet, even with significant oil reserves, the wealth of Libya did little for the peoples of Libya since only a small clique around Gaddafi and his family benefited from the billions of dollars of oil revenue. Gaddafi and his ‘revolutionary committees’ did very little to address the deep exploitation and marginalisation of the peoples of Libya, especially among the country's largely young population
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  • While France toyed with the idea of a Mediterranean Union to compete with US military penetration of North Africa, Gaddafi was fast becoming a close ally of the United States as Condoleezza Rice flew into Libya to proclaim that ‘nations have no permanent friends or allies, they only have permanent interests’.
  • On top of this economic relationship, Gaddafi agreed to act as the police for the European Union, arresting and detaining Africans who believed that the freedom of labour should be the same as the freedom of capital.
  • I want to draw attention to my submission last year when I wrote that despite the statements of Gaddafi that he supported African unity, his leadership represented an obstacle to the future unity of the peoples of Africa.
  • It was after this that Gaddafi called the extra-ordinary meeting of the Organisation of African Unity and set in motion the convergence of forces that resulted in the Constitutive Act of the African Union. From the moment this Constitutive Act came into force, Gaddafi worked with those elements who wanted to turn the African Union into a club of dictators. It must be clarified here that, contrary to reports from many quarters, Gaddafi is not the original champion of the vision of a United States of Africa. Neither did his brand of Pan-Africanism capture the essence of the kind of grassroots Pan-Africanism that had been envisioned for the unity of African peoples and for the uplifting of the dignity of African peoples. When visionaries like Kwame Nkrumah and Cheikh Anta Diop championed the idea of a federated African state in the 1960s and 1970s, they did not envision one which would be ruled by corrupt dictators and an arrogant king of kings.
  • Western news agencies used the antics of Gaddafi to discredit the AU. But pan-Africanists at the grassroots worked hard to give meaning to the AU by building networks among the various constituencies of Africans who wanted to build a genuine union of peoples across borders. African women who were fighting for their rights joined with workers and oth
  • The ECOSOCC, which is an official civil society general assembly of the AU, was launched in September 2008, in Dar es Salaam, Tanzania. Its membership includes trade unions, non-governmental organisations, women’s groups, human rights campaigners and anti-poverty campaigners.
  • Gaddafi feels that he is in good company when he unleashed mass violence against the people, but the Tunisian and Egyptian revolutions had changed the political calculus in Africa. While Africa is silent, Gaddafi goes back to those elements that he supported in the past to recruit mercenaries to suppress the uprising of the Libyan people. It is in the midst of this uprising where the forms of solidarity have to be very sophisticated and clear so that the machinations of foreign incursions are not engineered in an opportunistic manner to impose a solution on post-Gaddafi Libya that could rob Africa of the kind of revolutionary breakthroughs in Tunisia and Egypt.
  • With the rise of popular protest against neoliberalism globally – as we are witnessing inside the United States with massive demonstrations in Wisconsin, Indiana and Ohio – the US militarists and barons of Wall Street are on the defensive. Despite the isolation and repression of the people of Libya under Gaddafi, after one week of protest people have learnt enough from the Tunisian and Egyptian phases of the revolution to neutralise the armed forces of Gaddafi. This neutralisation of the armed forces means that Gaddafi and his sons are isolated.
  • Now that there is the possibility of the democratisation of Libyan society, progressive persons everywhere must stand in solidarity with the peoples of Libya against the repression of Gaddafi while opposing all forms of divisive manipulations. Progressives in Europe and North America want to take Libya, Egypt and Tunisia out of Africa and term the process an Arab awakening. There are many in North Africa who may call themselves Arab, but as Firoze Manji rightly corrected some progressives in Europe, ‘Egypt is an African country.’
Arabica Robusta

Behind the Arab Revolt Is a Word We Dare Not Speak - 0 views

  • As the Washington historian William Blum has documented, since 1945, the US has destroyed or subverted more than 50 governments, many of them democracies, and used mass murderers like Suharto, Mobutu and Pinochet to dominate by proxy. In the Middle East, every dictatorship and pseudo-monarchy has been sustained by America.
  • The revolt in the Arab world is not merely against a resident dictator, but against a worldwide economic tyranny designed by the US Treasury and imposed by the US Agency for International Development (USAID), the International Monetary Fund (IMF) and the World Bank, which have ensured that rich countries like Egypt are reduced to vast sweatshops, with half the population earning less than $2 a day.
  • How did such extremism take hold in the liberal West? "It is necessary to destroy hope, idealism, solidarity, and concern for the poor and oppressed," observed Noam Chomsky a generation ago, and "to replace these dangerous feelings with self-centered egoism, a pervasive cynicism that holds that ... the state capitalist order with its inherent inequities and oppression is the best that can be achieved. In fact, a great international propaganda campaign is underway to convince people - particularly young people - that this not only is what they should feel but that it's what they do feel."
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  • Like the European revolutions of 1848 and the uprising against Stalinism in 1989, the Arab revolt has rejected fear. An insurrection of suppressed ideas, hope and solidarity has begun
Arabica Robusta

The Genie is out of the Bottle - Gush Shalom - Israeli Peace Bloc - 0 views

  • They could appear in West Asia as European conquerors, who see themselves as a bridgehead of the “white” man and as masters of the “natives”, like the Spanish conquistadores and the Anglo-Saxon colonialists in America. That is what the crusaders did in their time. The second way was to see themselves as an Asian people returning to their homeland, the heirs to the political and cultural traditions of the Semitic world, ready to take part, with the other peoples of the region, in the war of liberation from European exploitation.
  • The most common conclusion was that democratic elections would inevitably lead to the victory of “Islamist” fanatics, who would set up brutal Taliban-style theocracies, or worse. Part of this, of course, is deliberate propaganda, designed to convince the naïve Americans and Europeans that they must shore up the Mubaraks of the region or alternative military strongmen. But most of it was quite sincere: most Israelis really believe that the Arabs, left to their own devices, will set up murderous “Islamist” regimes, whose main aim would be to wipe Israel off the map.
Arabica Robusta

Egypt's 'orderly transition'? International aid and the rush to structural adjustment |... - 0 views

  • Over the past few weeks, the economic direction of the interim Egyptian government has been the object of intense debate in the World Bank, International Monetary Fund (IMF) and European Bank for Reconstruction and Development (EBRD).
  • This article argues, however, that a critique of these financial packages needs to be seen as much more than just a further illustration of Western hypocrisy. The plethora of aid and investment initiatives advanced by the leading powers in recent days represents a conscious attempt to consolidate and reinforce the power of Egypt’s dominant class in the face of the ongoing popular mobilisations.
  • Egypt is, in many ways, shaping up as the perfect laboratory of the so-called post-Washington consensus, in which a liberal-sounding "pro-poor" rhetoric – principally linked to the discourse of democratisation – is used to deepen the neoliberal trajectory of the Mubarak era. If successful, the likely outcome of this – particularly in the face of heightened political mobilisation and the unfulfilled expectations of the Egyptian people – is a society that at a superficial level takes some limited appearances of the form of liberal democracy but, in actuality, remains a highly authoritarian neoliberal state dominated by an alliance of the military and business elites. 
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  • Egypt’s problems stem from the weakness of the private sector and the "rent-seeking" of state officials. The solution is to open Egypt’s markets to the outside world, lift restrictions on investment in key sectors of the economy, liberalise ownership laws, end subsidies to the poor for food and other necessities and increase market competition.
  • The mechanisms of this conditionality are discussed further below, at this stage, it is simply important to note that there has been an unassailable link established between aid and the fulfillment of neoliberal reforms.
  • This policy shift, however, does not represent a turn away from the logic of neoliberalism. Rather, it actually serves to reinforce this logic, by tailoring institutions to the needs of the private sector and removing any ability of the state to intervene in the market.
  • In the case of Egypt, the discourse of institutional reform has allowed neoliberal structural adjustment to be presented not just as a technocratic necessity – but as the actual fulfillment of the demands innervating the uprisings.
  • his fundamental message has been repeatedly emphasised by US and European spokespeople over the last weeks: this was not a revolt against several decades of neoliberalism – but rather a movement against an intrusive state that had obstructed the pursuit of individual self-interest through the market.
  • The political demands heard on the streets of Egypt today – to reclaim wealth that was stolen from the people, offer state support and services to the poor, nationalise those industries that were privatised and place restrictions on foreign investment – can be either disregarded or portrayed as "anti-democratic".
  • Precisely because Egypt’s uprising was one in which the political and economic demands were inseparable and intertwined, this effort to recast the struggle as "pro-market" is, in a very real sense, directly aimed at undercutting and weakening the country’s ongoing mobilisations.
  • There are two common elements to all the financial support offered to Egypt to date – an extension of loans (i.e. an increase in Egypt’s external debt) and promised investment in so-called public-private partnerships (PPPs).
  • n other words, contrary to popular belief, more money actually flows from Egypt to Western lenders than vice versa. These figures demonstrate the striking reality of Egypt’s financial relationship with the global economy – Western loans act to extract wealth from Egypt’s poor and redistribute it to the richest banks in North America and Europe.
  • Of course, the decision to borrow this money and enter into this "debt trap" was not made by Egypt’s poor. The vast majority of this debt is public or publically guaranteed (around 85%), i.e. debt that was taken on by the Mubarak government with the open encouragement of the IFIs. Egypt’s ruling elite – centred around Mubarak and his closest coterie – profited handsomely from these transactions (estimated in the many billions).
  • It is actually a debt swap – a promise to reduce Egypt’s debt service by $1 billion, provided that money is used in a manner in which the US government approves. This debt swap confirms the relationship of power that is inherent to modern finance.
  • The US is able to use Egypt’s indebtedness as a means to compel the country to adopt the types of economic policies described above.
  • Unless these loans are refused and the existing debt repudiated, Egypt will find itself in a cul-de-sac from which there is little chance of escape. Foreign debt is not a neutral form of "aid" but an exploitative social relation established between financial institutions in the global North and countries in the global South.
  • OPIC’s mandate is to support US business investment in so-called emerging markets; it provides guarantees for loans (particularly in the case of large projects) or direct loans for projects that have a significant proportion of US business involvement and may face political risk.
  • In the case of Egypt, this is likely to take place primarily through the use of US government funds to establish public-private partnerships (PPPs). A PPP is a means of encouraging the outsourcing of previously state-run utilities and services to private companies. A private company provides a service through a contract with the government – typically, this may include activities such as running hospitals or schools, or building infrastructure such as highways or power plants.
  • OPIC’s intervention in Egypt has been explicitly tied to the promotion of PPPs. An OPIC press release, for example, that followed soon after Obama’s speech, noted that the $1 billion promised by the US government would be used “to identify Egyptian government owned enterprises investing in public-private partnerships in order to promote growth in mutually agreed-upon sectors of the Egyptian economy.”
  • Anyone who has any illusions about the goals of the EBRD’s investment in Egypt would do well to read carefully the EBRD 2010 Transition Report. The report presents a detailed assessment of the East European and ex-Soviet republics, measuring their progress on a detailed set of indicators. These indicators are highly revealing: (1) Private sector share of GDP; (2) Large-scale privatisation; (3) Small-scale privatisation; (4) Governance and enterprise restructuring; (5) Price liberalisation; (6) Trade and foreign exchange system; (7) Competition policy; (8) Banking reform and interest rate liberalisation; (9) Securities markets and non-bank financial institutions; (10) Overall infrastructure reform.[5] Only countries that score well on these indicators are eligible for EBRD loans. A research institute that tracks the activity of the EBRD, Bank Watch, noted in 2008 that a country cannot achieve top marks in the EBRD assessment without the implementation of PPPs in the water and road sectors.
  • Moreover, fully embracing the pro-market ideological discourse discussed above, the Egyptian government promised to relax control over foreign investments through committing “to overcoming the previous shortcomings of excessive government centralisation. In addition, we will build on existing initiatives to achieve a greater level of decentralisation, especially in terms of local planning and financial management”.
  • As the decades of the Egyptian experience of neoliberalism illustrate all too clearly, these measures will further deepen poverty, precarity and an erosion of living standards for the vast majority. Simultaneously, the financial inflows will help to strengthen and consolidate Egypt’s narrow business and military elites as the only layer of society that stands to gain from further liberalisation of the economy. The expansion of PPPs, for example, will provide enormous opportunities for the largest business groups in the country to take ownership stakes in major infrastructure projects and other privatised service provision. Alongside foreign investors, these groups will gain from the deregulation of labour markets, liberalisation of land and retail activities, and the potential access to export markets in the US and Europe.
  • These measures also have a regional impact. Their other main beneficiary will be the states of the Gulf Cooperation Council (Saudi Arabia, Kuwait, United Arab Emirates, Bahrain, Qatar and Oman), which are playing a highly visible and complementary role alongside the IFIs. Saudi Arabia has pledged $4 billion to Egypt – exceeding the amounts promised by the US and EBRD.
  • As with the investments from Western states, these financial flows from the GCC are dependent upon the further liberalisation of Egypt’s economy, most likely through the mechanisms of PPPs. Indeed, Essam Sharaf, Egypt’s interim prime minister, and Samir Radwan, finance minister, have both travelled frequently to the GCC states over recent months with the aim of marketing PPP projects, particularly in water and waste water, roads, education, health care and energy.
  • In essence, the financial initiatives announced over recent weeks represent an attempt to bind social layers such as these – Egypt’s military and business elites, the ruling families and large conglomerates of the GCC, and so forth – ever more tightly to the Western states. The revolutionary process in Egypt represented an attack against these elements of the Arab world.
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