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Ed Webb

As Egypt's economic crisis deepens, an affordable meal is hard to find - The Washington... - 0 views

www.washingtonpost.com/...-economy-inflation-food-prices

Egypt economy food inflation war Ukraine Russia IMF debt

shared by Ed Webb on 26 Dec 22 - Cached
  • To blame the crisis solely on the war in Ukraine would be “barely true,” said Egyptian political economist Wael Gamal. Years of borrowing and investment in megaprojects made Egypt especially vulnerable, he said. Those projects have been championed by President Abdel Fatah El-Sisi, who took power in a military coup in 2013 and has made infrastructure development a hallmark of his presidency.
  • Until recently, Ramadan said, he could buy a ton of rice for around 8,000 Egyptian pounds. Now, he said, it costs 18,000 pounds. The cost of his pasta supply has jumped by 6,000 pounds. Even the plastic containers and bags they use to package the meals are pricier than before.
  • Egypt’s economic troubles, Gamal said, become “deeper every time they go to the IMF and take more loans and cover older loans with new loans.”
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  • “It’s a wonder how people survive,”
Ed Webb

The Jordanian State Buys Itself Time | Middle East Research and Information Project - 0 views

www.merip.org/...mero021213

Jordan election monarchy reform authoritarianism

shared by Ed Webb on 13 Mar 13 - No Cached
  • the elections have afforded the regime room to breathe
  • For the moment, the state seems confident that it commands the loyalty of the silent majority. For years, polls have found that most Jordanians are politically conservative, holding positive impressions of the king and royal family and darker views of political parties -- including the Islamists. Jordan has long been regarded as an oasis of stability compared to its neighbors who have faced invasion, foreign occupation and insurrection. Polls and interviews indicate that Jordanians put a high premium on a sense of security, the maintenance of which is of course a mainstay of regime rhetoric.
  • The opposition, on the other hand, draws its strength primarily from concerns about the economy and complaints about corruption in the cabinet and Parliament. Many in the opposition also note the state’s well-documented history of using “political reform” as a sop to critics. [3] In tough times, the regime pledges to open up the political system, but then offers changes that do little to alter the established power structure.
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  • holding an election that is pronounced clean and successful may be of less value to the state than is now apparent. As the year progresses, the public is likely to evaluate the new parliament and government by their ability to address popular concerns
  • High turnout and good reviews of election day are the foundations of the state’s claim to have a new mandate. But election monitors in Jordan have made the same point time and time again: An election is much more than the casting of ballots, and a successful poll does not equate to the advent of democracy.
  • monitors were also unanimous in their assessment that the system underpinning the vote falls considerably short of ideal. Their criticism centers on the distorted representation inherent in the election law and the political culture that gerrymandering promotes. Jordan’s voting system boosts the fortunes of candidates whose support base lies in large tribes or localities, while handicapping political parties and unaffiliated candidates who have national agendas. In Jordan’s last five parliamentary elections, most of the seats have gone to such independent or “tribal” candidates. Once elected, the MPs have little ability to shape national policy in any event, since the king appoints all other branches of government.
  • The incentives created are perverse. Voters may feel pushed to back the candidate who returns home bearing spoils from the treasury, rather than the one who represents their vision for the nation. Indeed, deputies in past assemblies have been lambasted for passing out rewards to supporters while ignoring national issues -- one voter, on election day, derided previous parliaments as “service departments.” Polls have found that large portions of the public see parliamentarians as highly corrupt. It is easy to see how this system becomes self-reinforcing. Voters feel that their vote means little on the national stage, while candidates for office seek to become local patrons while feathering their own nests. The result can be vote buying and coercive campaigning.
  • the “tribal” bias of the election system boosts turnout, since the groups that benefit directly from the parliamentary spoils system show up to keep the spoils coming
  • ambient mistrust
  • According to a July 2012 poll by the International Republican Institute, more Jordanians think the country is going in the wrong direction than the right one and many feel deep discontent with the weak economy and perceived government corruption. The same poll found Jordanians taking a dim view of politicians in general, and parliamentarians in particular, who despite being elected appear less popular than royally appointed officials. And in a September 2012 CSS survey, a big portion of the public said the state's reforms had been insufficient -- though large majorities still said it was better to change the system through political action than through street protest.
  • There are indications that the new parliament is more representative -- or at least more diverse -- than the old one. Candidates from al-Wasat al-Islami, a centrist Islamist party, came away with 16 seats, a substantial increase in their representation. Leftists also picked up around a dozen seats (depending on who is counting). Whether either of these groups will be credible to the protesters in the streets is an open question: In the past, many leftist and Islamist MPs have been characterized as “safe,” regime-aligned candidates rather than a genuine opposition. Palestinian Jordanians likewise seem to have gained ground, now holding roughly 35 seats as opposed to 20 or so in the last parliament. Women’s representation also increased slightly, with women taking two national list seats and two district seats, in addition to 15 seats from the 10 percent quota they are allotted under the election law.
  • If Parliament is unable to make serious progress toward improving the economy, an item which usually tops the list of the public’s grievances, that will also have consequences. The first challenge the new deputies will face, the yearly budget, will be doubly critical, establishing both the MPs’ economic credentials and their ability to have a serious debate
  • What the state has won is time, which it may use to carry out a reform program, to appease its core constituents or to do a bit of both. In the past, Jordan’s electoral exercises have generally been preludes to consolidations of regime power. But history is not destiny. The state may travel down the path of reform it has laid out, toward parliamentary government and constitutional monarchy, even at the cost of upsetting its traditional clients. Or it may attempt to delay reform again, using the same bait-and-switch it has employed for decades
  • The unfolding disaster in neighboring Syria will likely keep security high on the local agenda; on the other hand, the state faces another moment of potential crisis, as sometime early in 2013, probably April, conditions of Jordan's IMF loan agreements will require the state to engage in another round of subsidy removal like the one that triggered the November 2012 unrest
Ed Webb

The myth of the Islamist winter - www.newstatesman.com - Readability - 0 views

www.readability.com/...u0al0ahj

Tunisia Egypt analysis politics economy parties Islamists ikhwan MB nahda

shared by Ed Webb on 10 Jan 13 - No Cached
  • In Tunisia, as in Egypt, the Islamists who came to power through the ballot box are seeing their popularity erode and are tempted to hold on to power by recourse to authoritarian measures. But they have to deal with the legacy of the Arab spring. They face a new political culture: now, one where people who disagree with the government take to the streets; where there is no reverence for established power and the army and the police no longer inspire fear.
  • consider the precise nature of this authoritarian turn because it bears little resemblance to the “Islamic revolution” often associated with the Muslim Brotherhood in Egypt and al-Nahda, the Renaissance Party, in Tunisia. It is, on the contrary, a conservative and paradoxically pro-western “counter-revolution”
  • The electoral and social base of the Egyptian regime is not revolutionary. Instead of trying to reach a compromise with the principal actors of the Arab spring, Morsi is attempting to get all the supporters of the new order on his side. The coalition he is building is based on business, the army, the Salafists and those elements of the “people” that are supposedly tired of anarchy
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  • economic model is neoliberal
  • Morsi has accepted the outlook of the IMF, not because he has been forced to do so, but because it is an approach he shares. This will bring further privatisation and competition. And because the price paid by swaths of the population will be severe, the government will need a functioning apparatus of repression and to break the trade unions. It will also have to gain the acquiescence of the army, in exchange for immunity and the right to regulate its own affairs, particularly in the economic sphere
  • Time is against Morsi, because the economic measures that he wants to introduce will make the government increasingly unpopular. And, on the other hand, continued popular protest will require him to call on the army, which will support him, but at a price – the political and economic autonomy that the military is asking for runs counter to the Brotherhood’s programme of economic liberalisation
  • the other battleground for the Muslim Brotherhood is control of the religious sphere. Like al- Nahda in Tunisia, it has discovered that this is considerably more diverse than it had thought. Moreover, figures who had previously been relatively docile where the state was concerned, such as Ahmed el-Tayeb, the Grand Imam of al-Azhar, have reasserted the autonomy that they were granted by the Arab spring. This means that the only way for the government to wrest back control of the religious sphere is to place it under the authority of the state (specifically, to submit the mosques to the diktat of the ministry of religious affairs)
  • if there were a credible and unified opposition, it could beat al-Nahda in the elections. Consequently, Tunisia’s chances of staying democratic are better than Egypt’s
  • State control of religion would in fact go beyond institutions and extend to religious orthodoxy, leading to limitations being placed on Sufi practices and theological discussions. Even if the Muslim Brothers succeed in the first part of the operation – nationalising faith institutions – the price they will have to pay for it will be high, because the imams won’t appreciate being turned into civil servants. They also run the risk of destroying the religious dynamic of their movement: if the state controls religion, what use is a religious “brotherhood”? And if religion is identified with the state, there is a grave risk that the unpopularity of the government will affect faith institutions in turn, as has happened in Iran
  • Religion is becoming just one instrument of control among others – rather than a social, economic and ideological alternative. This is, in short, the failure of political Islam
  • Al- Nahda is neither as strong nor as deeply rooted as the Muslim Brotherhood. The movement is more diverse, with a branch that is, if not more liberal, then at least more realistic. And because of their commitment to violence, the Tunisian Salafists are not credible allies
  • Al-Nahda is coming into conflict with the unions, either for the same reasons as in Egypt (a fascination with the free market) or for reasons more specific to Tunisia (it wants allies on its left but cannot bear to compete with a truly popular movement of grass-roots activists)
  • As in Egypt, al-Nahda proposes to use its own ministry of religious affairs to control the religious sphere, although this statism could rebound against the movement
  • a politics more redolent of Pinochet in Chile than of Khomeini in Iran
  • The Islamists are succeeding neither in delivering the goods in economic and social terms nor in giving the impression that they are architects of an authentic social project that goes beyond the stamping of “Islamic markers” on a society over which they have increasingly little control
  • To get through the period of austerity and the economic difficulties that go with it, they should have done more to secure a “historic compromise” with the liberals. The alternative to such an alliance is not “Islamic revolution”, however. What is taking shape instead is a coalition that is con - servative in politics and morals but neoliberal in economics, and thus open to the west
Ed Webb

OPEC Is in its Death Throes | Foreign Policy - 0 views

foreignpolicy.com/...arabia-united-states-oil-shale

Saudi KSA economy economics OPEC oil energy Russia Iran Iraq Venezuela Kuwait UAE

shared by Ed Webb on 21 Oct 16 - No Cached
  • In February, OPEC called for an oil production “freeze” to raise crude prices in conjunction with Russia. But this effort collapsed at a meeting in Doha, Qatar, in April when Iran refused to join any freeze in order to regain the pre-2012 production levels of close to 4 mbpd it enjoyed before U.S. and European Union nuclear sanctions were imposed, following the removal of certain sanctions after the 2015 nuclear deal. A similar proposal failed at the OPEC meeting in June, again following Iran’s refusal, despite outreach by the Qataris.
  • OPEC again called for a form of output cut on Sept. 28 at an extraordinary meeting in Algiers. Markets bit on the news, with Brent prices rising sharply by about 15 percent in the following week, from $46 to $52 per barrel.
  • Can action by the cartel sustain higher crude prices over the long term? Probably not. Like a desert mirage, the image of an OPEC resurrection vanishes when approached.
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  • The massive fall in oil prices from over $100 per barrel in early 2014 to under $30 by January 2016 was caused primarily by then-Saudi Minister of Petroleum Ali al-Naimi’s strategy to gain market share for the kingdom and hurt the U.S. tight oil (or “shale”) industry by allowing the market, not OPEC interventions, to set prices.
  • While Riyadh has cranked up its production from mid-2014 to today by over a million barrels a day (to a peak of 10.7 mbpd in August this year), its fiscal position has taken a serious blow, with the budget deficit rising from 3 percent of GDP to 16 percent in 2015
  • The resilience of U.S. shale makes the argument that OPEC has experienced a resurrection a fragile claim. The cartel can probably raise prices in the short term through an output cut, but it will only be so long, perhaps already by mid-2017, before the U.S. shale industry revives and grabs any market share conceded by OPEC in a higher price environment. This will ultimately bring prices lower again, all else being equal.
  • Within OPEC, while other Gulf Co-Operation states, namely Kuwait and the United Arab Emirates, may be prepared to make a small cut to their production, key producers like Iraq and Venezuela are in too difficult a fiscal position to agree to any major cut.
  • Outside OPEC, Russia reached a production record of 11.1 mbpd in August, eclipsing Soviet levels. Being so close to the maximum anyway, Russia has little to lose by supporting the OPEC output cut and agreeing not to raise production further. Yet the Kremlin is unlikely to impose actual cuts on the range of oil companies that operate in the country.
  • In the short term, it seems Riyadh’s fiscal position was under such pressure from low oil prices that something had to give. While the kingdom has eased the fiscal pressure by starting to issue sovereign debt, the burn rate through its foreign reserves has been relentless (from about $740 billion in mid-2014 to $550 billion today) as it has attempted to defend the currency in the face of substantial capital flight from the country since the oil price crash in 2014.
  • Climate change will plainly be a major problem of the 21st century, and the world is moving away from fossil fuels: game over for an unreformed Saudi Arabia.
  • Saudi Arabia will face hard years ahead as the oil market increasingly looks to U.S. shale, not OPEC, as a handrail to oil prices on the supply side. However, this might well be the jolt that Salman needs to push through painful but necessary reforms
Ed Webb

Toughing It Out in Cairo | by Yasmine El Rashidi | The New York Review of Books - 0 views

www.nybooks.com/...toughing-it-out-in-cairo

Egypt Sisi politics economy military intelligence surveillance rights revolution

shared by Ed Webb on 24 Mar 18 - No Cached
  • In search of my story, I got in my car and drove east in mid-May 2015 from Cairo to Suez. Nine months earlier, Sisi had announced the revival of a decades-old “mega-project” to expand the 150-year-old Suez Canal. He pledged that the project would be finished in exactly twelve months, and that every Egyptian would see “immediate returns.” I was skeptical about the promised date of completion and drove through the desert to see for myself. Celebratory billboards lined the route leading out of the city, as if the project was already complete. At the site of construction, I was told that the army had been working round the clock.The new canal was in fact inaugurated on August 6, 2015, twelve months to the day from when the project was first announced, and thousands of Egyptians took to the streets in celebration. Downtown Cairo was awash in flags and fireworks, music, flashing strobe-light shows, and animal-themed blow-up dolls as tall as townhouses whose only visible relationship to the canal might have been symbolic, in their exaggerated size. It brought back memories of the day in February 2011 when President Hosni Mubarak stepped down
  • The financing of the project under Sisi was shrewd—a tax-free public bond with certificates in denominations as low as ten Egyptian pounds (marketed to students), and a 12 percent interest rate with the option of quarterly payouts. The necessary $8 billion was raised in a week. People everywhere spoke of having put their savings into Suez Canal bonds. Lives felt quantifiably changed—I heard references to “free money.”
  • the illusion of safety
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  • human rights begin with the conditions under which we live. The revolution made life harder for us—us being the poor—so of course when they arrest these activists, I say it’s for the better, we can’t afford another revolution. We can hardly afford to eat each day
  • December, four months after the opening of the new canal, and, aside from those who had bought bonds and received the first payout, most people I heard began describing it as el-tira’a (a sewer). When I asked one woman, Sabah, a cook who juggles jobs in six homes each week, why her opinion of the canal had changed, she said: “They promised revenues and immediate returns, and now everyone says revenues are down. Where are the immediate returns? The project has failed.”
  • Sisi was no Nasser, but his nationalist credentials as a former army general lent him credibility. He also spoke the language of the street—his public speeches were matter-of-fact and colloquial
  • I kept tabs on the shrinking number of people who showed up to protest, and then on the decreasing number of protests. Only a handful of people still voiced their dissent, including Laila Soueif, the matriarch of a family of longtime activists, whose son Alaa Abdel Fattah is serving a five-year prison sentence on trumped-up charges; or the team behind the online paper Mada Masr, led by the journalist and editor Lina Attalah, who continued to publish despite scrutiny and censorship (the paper’s website was eventually blocked, along with 127 others). The risks of human rights work had become almost prohibitive, with arrests, disappearances, and travel bans all commonplace. I counted the number of activists, academics, and artists who had left the country, and friends who were emigrating. Regeni’s name often came up in conversations—his murder lingered in our minds
  • in April, the president declared that two Red Sea islands, Tiran and Sanafir, long perceived as Egypt’s, fell within the territorial waters of Saudi Arabia and would be transferred to the kingdom. Public attention shifted to this new declaration, which brought revolutionary and pro-government Egyptians together in opposition to it
  • muffled grumbles, but the answers to the others were invariably: “The government’s job is to keep us fed, and at least the country is safe again.”
  • More and more, on the streets of Cairo, in government offices, and in informal settlements on the outskirts of the city, I heard references to Syria: “We could have ended up like them.”
  • Passivity has been their particular mode of survival
  • Discontent surged in February over the shifting official accounts of what had happened to Giulio Regeni, an Italian graduate student who disappeared and was then found dead on a highway in Cairo, his body bearing marks of severe torture
  • A friend’s activist neighbor was dragged from his home in the night and disappeared for four days on allegations of being an “Islamist sympathizer” (he was not); a writer was imprisoned, on grounds of “offending public morals,” for sexually explicit scenes in a novel; gay men were being hunted by undercover police on the hookup app Grindr; a poet was jailed on charges of “blasphemy” and “contempt of religion” for calling the slaughter of sheep during a Muslim feast “the most horrible massacre committed by humans”; two women were threatened with jail for allegedly “kissing” in a car (they were not)
  • I, too, had slipped into some variation of the so-called inertia. A friend one evening described our often-dulled responses to news and events that once enraged us as a type of PTSD
  • As a result of severely dwindling currency reserves, the government was forced to implement a series of long-overdue austerity measures to secure a $12 billion loan from the IMF. The risks of implementing the loan program were described by the agency’s staff as “significant.” Morsi had considered these same measures but backed out after a public outcry. Sisi had little choice but to take the risk. First gas and fuel subsidies were suddenly lifted (causing price hikes of 50 percent), then the Egyptian pound was floated, plunging the currency from seven to twenty pounds against the dollar. Overnight, the price of milk, tomatoes, pasta, cigarettes, soap, water, sugar, oil, chicken, chocolate, bread, juice, toilet paper, matches, bananas, plumbing services, and household goods leapt
  • They want to make it impossible for us to be political
  • By August, I heard people everywhere talking about the price of school supplies. School bags seemed to be the measure of the state of things. What cost 90 pounds a year before cost 350 pounds now. Inflation was at its highest (33 percent) since 1986 (when it was 35.1 percent), and second-highest since 1958. When, over the months that followed, I asked my grocer or the man who delivered the bread or the garbage collectors how they were managing to keep afloat, the invariable answer was “baraka”—blessings from God.
  • “They say he is building a $10 million palace in the desert for himself when the rest of us can hardly eat, but what is the alternative? To be fair, he inherited a mess. At least he is a nationalist, one of us.”
  • “We would have descended into chaos had the Brotherhood stayed in power. The country would not have survived the remainder of Morsi’s term.”
  • There was a handful of people who knew what military rule would bring, who anticipated the crackdowns, the closing-in of the state. Some had forecast the outbursts of violence to come. But perhaps nobody quite anticipated that the deep state would be resurrected with such ferocity, and so unabashedly
  • When I asked a range of political figures about the surveillance, the answer I got was “paranoia”—to this day, no one fully understands the political and emotional causes that led to the revolution on January 25, 2011.
  • radicalism seems at once to undermine and to strengthen Sisi’s hold on power. The country feels more and more mired in such contradictions
  • “I admit,” a brass worker in Cairo’s old city told me one evening in November, “I’m not happy with how things have unfolded. This was never a revolution to begin with. It was all scripted from the start, by military intelligence, so what is one to do now except put your head down and try to make a living?”
Ed Webb

Cash and contradictions: On the limits of Middle Eastern influence in Sudan - African A... - 0 views

africanarguments.org/...dle-eastern-influence-in-sudan

Sudan KSA Saudi UAE Egypt politics economy military militia hornofafrica

shared by Ed Webb on 06 Aug 19 - No Cached
  • In Sudan, the revolutionaries who overthrew President Omar al-Bashir and who continue to organise are well aware of the threat posed by neighbouring Arab countries. Protesters’ murals show the people rejecting the interfering hands of Saudi Arabia and the United Arab Emirates (UAE). One of the most popular chants is “Victory or Egypt”, voicing activists’ determination not to succumb to a military counter-revolution as happened in their northern neighbour.
  • many Sudanese believe that the 3 June crackdown in which scores of protesters were killed only came after the green light from Saudi Arabia, the UAE and Egypt
  • In this struggle between the “Pax Africana” and Arab authoritarians, there’s no doubt that the democrats have the weaker hand. But not everything is going the Arab troika’s way.
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  • Sudan wasn’t following the script of Bahrain, where the demonstrators dispersed after a single crackdown, or Egypt, where the army took control through co-option and repression.
  • A major split between Saudi Arabia and the UAE was on show in July when the latter abruptly withdrew most of its forces from Yemen. No official explanation was given, but the decision was evidently not coordinated with Saudi Arabia, which remains bogged down in an intractable war. The UAE’s decision also shows it can be mercurial and that its policies towards the Horn of Africa may be less strategic and more opportunistic than commentators have assumed.
  • Egypt prides itself on understanding Sudan and sees Saudi Arabia and UAE as newcomers seeking influence solely by dispensing money. Egypt limited its demands on Sudan to handing over Egyptian Islamists in exile, suspending the deal for Turkey to develop a naval base, and ceding its territorial claim to the Halaib Triangle.
  • As Arab countries find themselves pulled in to the internal negotiations among the Sudanese, they will face another potential point of contention. Sudan doesn’t just need democracy, but peace. This means a role for the Islamists both in Khartoum and the provinces. For a decade, the custodian of the Darfur peace process has been Qatar, the troika’s arch rival, and it will be impossible to ignore Qatar’s role or that of Sudan’s diverse constituency of Islamists. Some of these dynamics are already playing out and reveal the lack of a common strategy among the Arab troika
  • After the secession of South Sudan in 2011, Sudan lost 75% of its oilfields and an even greater proportion of its hard currency earnings. The following year, it literally struck gold and within a few years, gold was providing 40% of Sudan’s exports. As much as a third of it, however, came to be smuggled to Libya, Chad or directly by plane to the region’s biggest gold market in Dubai. The government in Khartoum, desperate to control the commodity, responded by using the Central Bank of Sudan as its sole buying agent, paying above the market price to gold traders and printing money to cover this outlay. Buying gold to convert to hard currency became the engine of Sudan’s inflation, which skyrocketed. By 2018, the price of essential commodities such as bread and fuel was so high relative to stagnant wages that the people across the country took to the streets to protest.
  • Hemedti. His RSF militia controls the gold mines and he personally owns a number of concessions. Through Sudan’s monetary policy, vast resources were transferred from wage earners in the centre of the country to militiamen and gold traders in the peripheries
  • Hemedti has also benefited massively from providing mercenaries, which may be Sudan’s second biggest source of foreign exchange today. A few months after the Saudis launched their war in Yemen in March 2015, Sudan volunteered to send troops. The first contingent was a battalion of the regular army, but then Hemedti struck a parallel deal to dispatch several brigades of RSF fighters. Within a year, the RSF comprised by far the biggest foreign contingent fighting in Yemen with at least 7,000 militiamen. Hemedti was paid directly by Saudi Arabia and the UAE for this service. He says he deposited $350 million in the Central Bank, but has not said how much he kept to himself for his own enrichment or political spending.
  • the Central Bank of Sudan has become an instrument for Hemedti’s political finance. And since becoming the central actor in Sudan’s ruling cabal in April, he has exerted an even tighter grip on gold production and exports while moving aggressively into other commercial areas. He has increased the RSF’s deployment in Yemen and sent a brigade to fight in Libya alongside General Khalifa Haftar, who is backed by Egypt and the UAE, almost certainly in return for Emirati financial rewards. Hemedti is also expanding his family business conglomerate, the Al-Junaid companies, and running his political business on the basis of personally handing out cash to key constituents such as tribal chiefs, the police, and electricity workers.
  • none of this addresses Sudan’s macroeconomic crisis: its rampant inflation, rapidly increasing arrears on international debt, and ostracism from the dollar-based international financial system
  • Sudan’s Gulf patrons are bailing out the country with a $200 million monthly subsidy in cash and commodities, but the bailout amounts needed will quickly become too big even for the oil-rich Gulf States’ deep pockets
  • a clash between Hemedti’s political market logic and Sudan’s macroeconomy is looming.  The Sudanese technocrats associated with the FFC are well aware of this, which is why the economists called upon to put themselves forward for cabinet positions have been reluctant to agree. There is a race between Hemedti’s consolidation of power and a re-run of the economic crisis and protests that led to al-Bashir’s downfall.
  • as Sudan’s economic crisis deepens, they will have to turn to the IMF and western creditors for assistance
Ed Webb

Is tourism the antidote to youth unemployment in Oman? - 0 views

www.al-monitor.com/...mployment-tourism-economy.html

Oman GCC KSA UAE Dubai tourism economy youth unemployment

shared by Ed Webb on 15 Feb 20 - Cached
  • A stubbornly high youth unemployment rate is one of Oman's most pressing internal issues. Roughly half of Oman's youths are unemployed, the World Bank estimates.
  • many Omanis await structural economic reforms, as the hydrocarbon industry accounts for 74% of government revenues but employs only 16,000 citizens of the Gulf state
  • the country’s road map for social and economic reform identifies five high-priority sectors, including the employment-intensive tourism industry. Ranked as one of the fastest growing industries in the world, the tourism sector could employ a total of 535,000 people, directly and indirectly, in Oman by 2040 to cater to 11 million visitors.
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  • The government is expected to play a "crucial" role in tourism development by injecting $6 billion over 25 years to trigger $43 billion worth of investments from the private sector.
  • the promises to allocate 223,000 direct tourism jobs to Omani nationals by 2040 does not align with Oman's undersized tourism education sector, which graduates only a few hundred students per year, mainly from the Oman Tourism College
  • although the number of tourists visiting Oman has doubled since 2008, the industry employs less than 17,000 Omanis.
  • The country’s ratio of debt to gross domestic product is rated junk by all three major agencies, as it has multiplied by 12 since 2014. Moreover, the Omani economy is ranked the worst performing among Gulf countries
  • “The concept of SMEs [small and medium enterprises] does not exist in the field of tourism anyway, the whole system is designed for large corporations,” said Christopher Chellapermal, a French entrepreneur. Chellapermal ran a scuba diving business in Oman for 15 years before being forced out of business in 2017.
  • “Corruption was also an issue since local authorities requested me to pay imaginary taxes," he said. "I am an ordinary man so I had to shut up and comply.”
  • For Chellapermal, Oman "makes the crazy wager" of luxury tourism by prioritizing premium visitors when the backpacker segment would be a better fit.
  • “Chinese and Indian tourists are very much interested in culture and heritage destinations," Hollister said. "Oman could focus on this segment to make it their niche, a differentiator.”
  • wealth of cultural and natural assets. The Ministry of Tourism promotes Oman as a hidden jewel at the tip of the Arabian Peninsula. 
  • regional tensions had very little impact on tourism
  • As Sultan Haitham bin Tariq Al Said takes power, analysts worry that Oman’s foreign policy of neutrality could be at stake. Will “any of Oman’s more assertive neighbors seek to sway Haitham to align more closely with their own approach,” Kristian Coates Ulrichsen wrote for Al-Monitor.
  • The prospect of tensions between Muscat and neighboring states does not please tourism actors, as Saudi Arabia and the United Arab Emirates are Oman’s key source regional markets for tourism. In 2018, Gulf citizens accounted for about half of international arrivals.
  • Saudi Arabia’s aggressive push to develop its leisure tourism industry and attract 100 million visits by 2030 collides with Oman’s ambitions
Ed Webb

Ever Given: Egyptian Can-do Helped Unclog the Suez Canal - Bloomberg - 0 views

www.bloomberg.com/...o-helped-unclog-the-suez-canal

Africa Egypt politics development economy opinion analysis Suez shipping

shared by Ed Webb on 01 Apr 21 - No Cached
  • the sense of relief, joy and pride Egyptians felt over their success. The dredger and a fleet of tug boats had worked day and night to unclog one of the world’s most important waterways, eventually refloating the Ever Given in a week — Egyptian can-do beat the expectations of experts who predicted it would take twice as long.
  • served as a reminder of how much of their potential is stymied by a political economy that deters experimentation, punishes innovation and ultimately pushes many Egyptians to seek opportunities abroad
  • Centered on a bigotry of low expectations is the idea that Egyptian workers are uniquely unimaginative and unindustrious, and that these traits — rather than the greed and grift of their rulers — are to blame for the country’s economic failings.
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  • the industriousness and ingenuity displayed by the Mashhour crew and their colleagues on the tug boats are the very qualities that allow millions of Egyptians to survive the misrule that has led to rising poverty levels even as limited reforms have primarily benefited the ruling elites and crony capitalists. While the government in Cairo has received kudos for GDP growth, Egypt’s poverty rate has nearly doubled over 20 years, from 16.7% in the year 2000 to 32.5% in 2019.
  • The patronizing view that the man in the street needs the guiding hand of his betters has often encouraged international partners over the years to direct funding to the elites rather than small and medium-sized enterprises, despite pledges to prioritize those very sectors.
  • their government provides them with neither the competitive market economy nor the political freedoms that would allow them to demonstrate their readiness.
  • the waterway is of exceptional value to the government in Cairo: Not only is it a significant source of hard currency for a country with a chronic trade deficit, its strategic importance to global commerce elevates Egypt’s international status
  • Many who seek the resources — and salaries — commensurate with their skills must leave the country to find them. This is why remittances from abroad dwarf many sectors of the economy. Remittances in 2020 were worth $29.6 billion, over five times the Suez Canal’s revenue of $5.61 billion and more than double the revenues from tourism at its 2019 peak of $13 billion.
Ed Webb

Tunisian democracy in crisis after president ousts government | Reuters - 0 views

www.reuters.com/...nt-ousts-government-2021-07-26

Tunisia economy authoritarianism politics military pandemics coup crisis

shared by Ed Webb on 26 Jul 21 - Cached
  • Tunisia faced its biggest crisis in a decade of democracy on Monday after President Kais Saied ousted the government and froze the activities of parliament, a move his foes labelled a coup that should be opposed on the street.
  • after a day of protests against the government and the biggest party in parliament, the moderate Islamist Ennahda, following a spike in COVID-19 cases and growing anger over chronic political dysfunction and economic malaise
  • In the early hours of Monday, Ghannouchi arrived at the parliament where he said he would call a session in defiance of Saied, but the army stationed outside the building stopped the 80-year-old former political exile from entering.
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  • huge crowds gathered in his support in Tunis and other cities, cheering, dancing and ululating while the military blocked off the parliament and state television station
  • He said his actions were based on Article 80 of the constitution and framed them as a popular response to the economic and political paralysis that have mired Tunisia for years.However, a special court required by the 2014 constitution to adjudicate such disputes between Tunisia's branches of state has never been established after years of wrangling over which judges to include, allowing rival interpretations of law
  • Dozens of Ennahda supporters faced off against Saied supporters near the parliament building, exchanging insults as the police held them apart
  • Two of the other main parties in parliament, Heart of Tunisia and Karama, joined Ennahda in accusing Saied of a coup. Former president Moncef Marzouki who helped oversee the transition to democracy after the revolution said it could represent the start of a slope "into an even worse situation".
  • also suspended the legal immunity of parliament members and that he was taking control of the general prosecutor's office
  • the parliamentary election delivered a fragmented chamber in which no party held more than a quarter of seats
  • Under the constitution, the president has direct responsibility only for foreign affairs and the military, but after a government debacle with walk-in vaccination centres last week, he told the army to take charge of the pandemic response.Tunisia's soaring infection and death rates have added to public anger at the government as the country's political parties bickered
  • Mechichi was attempting to negotiate a new loan with the International Monetary Fund (IMF) that was seen as crucial to averting a looming fiscal crisis as Tunisia struggles to finance its budget deficit and coming debt repayments.Disputes over the economic reforms, seen as needed to secure the loan but which could hurt ordinary Tunisians by ending subsidies or cutting public sector jobs, had already brought the government close to collapse
Ed Webb

How Lebanon is setting the standard for a new social contract in the Middle East - 0 views

www.al-monitor.com/...cial-contract-middle-east.html

Lebanon protests analysis sectarianism youth economy reform

shared by Ed Webb on 02 Nov 19 - Cached
  • What sets the protest apart is its cross-sectarian nature. Lebanon is turning away from the past and toward a new social contract. There is much risk and uncertainty — but there is also excitement — revealed by brave protesters who have put country above sect, and who have made the region, and the world, take notice.
  • Lebanon has a population of nearly 6.8 million, with an estimated 42% under 24 years of age. The official unemployment rate of about 6% is not high, by regional standards, but with almost no economic growth (a projected 0.2% rate in 2019, following just 0.3% last year), the good jobs are fewer and fewer for young graduates. Lebanon’s deficit and debt are approaching 155% of the gross domestic product, among the worst ratios in the world.
  • orruption and side deals inhibit the government from delivering even reliable trash collection — in contrast to the protesters, who have made a point of keeping the streets clean after the demonstrations
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  • Lebanon did its time with its own bloody 15-year sectarian regional war, and still was able to recover and re-establish its cosmopolitan flair. There is a lot to build on. The failures and dashed expectations of the uprisings in Egypt and Syria, which quickly fell prey to regional and ideological agendas and violence, and Lebanon’s own tragic past, could make it an incubator for a new approach to governance that would allow Lebanon to realize its potential, rather than fall victim to the rhetoric and false promise of what was once known as the Arab Spring
  • The catch for Lebanon, as it has been for Egypt, is that most International Monetary Fund-based recommendations to address bloated and corrupt public ministries require downsizing and reductions in subsidies — such as electricity and gasoline — and an expanded tax base — the very things that trigger the protests of those already on the economic margins.
  • the short-term urgency of meeting the demands of the street need to be combined with a long-term plan for structural reform. This could be accomplished via a new government, quickly formed, or by getting the buy-in of those demanding change by adding new faces and technocrats to those vital ministries that manage economy and infrastructure and are widely associated with corruption and inefficiency
Ed Webb

Opinion: Tunisia, A Gulf Crisis Battleground | The North Africa Journal - 0 views

north-africa.com/...sia-a-gulf-crisis-battleground

Tunisia opinion authoritarianism analysis Qatar UAE KSA GCC media foreignpolicy

shared by Ed Webb on 17 Jun 20 - Cached
  • Since the Arab Spring uprisings shook the Middle East and North Africa (MENA) in 2010/2011, Gulf Cooperation Council (GCC) members have sought to be drivers of political developments in Egypt, Libya, and Tunisia—and, to lesser extents, Algeria and Morocco—not only through petrodollar diplomacy, but also through direct military intervention
  • The three-year-old GCC crisis—pitting Saudi Arabia, the UAE, Bahrain, and Egypt against Qatar since mid-2017—has significantly regionalized
  • By far, the Gulf crisis has played out more destructively in Libya than anywhere else in the Maghreb. Yet Tunisia is a salient example of how another North African country became an arena for the Gulf rivalry albeit one where far less violence has erupted
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  • From the beginning of the Arabian feud, officials in Tunis stressed their preference for not picking sides while also offering to help with diplomatic efforts aimed at resolving the crisis.
  • Qatar gave Tunisia critical financial support in 2012 that helped the government in Tunis maintain domestic stability amid a sensitive period of time following the Jasmine Revolution. While under growing International Monetary Fund (IMF) pressure after President Zine El Abidine Ben Ali’s fall, Tunisia received USD 500 million from the Qatari National Bank
  • Al Jazeera’s coverage of the Arab Spring protests that shook Tunisia in 2010/2011 secured some greater soft-power influence for Qatar among Tunisian revolutionaries
  • Those leading Ennahda had ties to Doha dating back to the 1990s when Qatar was beginning its escape from the Saudi-led, counter-revolutionary order of the Arabian Peninsula
  • Certain segments of the population saw Doha’s agenda as geared toward supporting political Islam, not democratic revolutions in the Arab region. Such perceptions of Doha pushing Tunisia under the Muslim Brotherhood’s influence created problems for Qatar among many Tunisians who oppose Islamism.
  • After Nidaa Tounes took power in 2015, the UAE’s Foreign Minister Abdullah Bin Zayed Al Nahyan paid his first visit to Tunisia since 2011. While in Tunis, he met with then-President Beji Caid Essebsi, who founded Nidaa Tounes, and he invited him to the Emirates. Essebsi also paid Egypt’s president a visit in October 2015 and invited Abdel Fattah el-Sisi to Tunis. According to Emirati calculations, these developments were supposed to weaken Doha-Tunis relations. By opening up more channels of communication with Ennahda’s domestic opponents, Abu Dhabi wanted to bring Tunisia’s regional foreign policy into closer alignment with the Emirates, and further away from the Qatari-Turkish axis.
  • Just as the Qataris helped Tunisia maintain its stability during the aftermath of its 2010/2011 revolution, the Tunisians paid them back in terms of assistance in the domain of food security after the Saudi- and Emirati-imposed siege began.
  • Qatar is the top Arab investor in Tunisia
  • From 2011 to 2019, Doha’s exports to Tunisia doubled six times while Tunisian exports to Qatar doubled ten times. Qatar and Tunisia’s growing relationship has manifested in the signing of 80 agreements across a range of areas
  • leaders in Abu Dhabi and Riyadh have seen the Jasmine Revolution as a threat to their model of “authoritarian stability” which entails support for Arab dictators such as Ben Ali. Both the Saudi and Emirati governments have major concerns about any country in the Maghreb holding free elections that open up the possibility of Islamists being empowered to govern. Furthermore, the growth of Qatari influence in Tunisia following Ben Ali’s fall has irked both Abu Dhabi and Riyadh
  • Emirati press often reports on the politics of post-Arab Spring Tunisia in ways that depict the country as having fallen under too much influence of Islamists, who are by definition “terrorists” as Abu Dhabi sees it
  • One of the reasons why the UAE has more influence in Tunisia than the Saudis pertains to the Emiratis’ culture and ethos of trade and commerce which Tunisian businessmen easily understand and appreciate.
  • To this point, the majority of Tunisians are indifferent to the ideological underpinnings of the Gulf feud and simply want as much investment from as many Gulf and non-Gulf states as possible. The percentage of Tunisians who are staunchly ‘pro-Qatar’ or ‘pro-UAE’ is below 50, yet their percentage is increasing which underscores how the GCC crisis’ impact on Tunisia has been polarizing
  • Many of these citizens who staunchly welcomed the Jasmine Revolution see Abu Dhabi as a counter-revolutionary force seeking to topple Tunisia’s democratic government. A common narrative is that the Emiratis would like to do to Tunisia what they did to Egypt in 2013 in terms of bankrolling a coup d’état to reverse an Arab Spring revolution.
  • The UAE’s hand in Tunisia is certainly weaker than it is in Egypt or Libya. Tunisia lacks a military or “Deep State” that the Emiratis would be able to coordinate with to stage a popular coup d’état in which the putschists could enjoy a degree of legitimacy among Tunisians comparable to what the Egyptian junta enjoyed among ordinary Egyptians in 2013
  • Ennahda was more humble, moderate, and modest during its time at the helm compared to the Muslim Brotherhood’s Egyptian political wing, the Freedom and Justice Party (FJP). As a result, Ennahda left Tunisians, including those who oppose political Islam, with less reason to favor a coup d’état to end the Islamist party’s role in the country system of governance.
  • UAE seems more set on preventing Tunisia from being pushed into the Qatari-Turkish axis’s orbit, particularly with respect to the conflict in Libya. Ironically, as Hamdi posits, Tunisia’s non-aligned politics vis-à-vis Libya’s civil war, which the UAE seems to accept, “is in line with Tunisian public opinion which predominantly [favors Tunisian] neutrality and a political solution and view Turkey’s military intervention with much suspicion.”
  • there are signs that the UAE and Saudi Arabia are frustrated with Tunisia’s view of the UN-recognized GNA as legitimate and Tunis’s opposition to foreign (including Emirati, Egyptian, and Russian) intervention in the conflict
  • Among secular Tunisians from elite backgrounds, there is a common narrative that Doha has been sponsoring terrorism and radicalism in their country. This message is in lock-step alignment with Abu Dhabi’s narratives about Qatar being a dangerous power in the Arab region. In fact, some opponents of Ennahda have even accused the party of covering for Qatar’s alleged role as a driver of terrorism in post-Ben Ali Tunisia and wished that Tunis would have supported the blockade of Doha in 2017
  • that Nidaa Tounes and Ennahda reached a political compromise has helped Tunisia achieve significant political stability and peace despite all the chaos in the region. Experts agree that this landmark “secularist-Islamist rapprochement” could have been severely undermined by Tunis picking sides in the GCC dispute
Ed Webb

There will be pain - With oil cheap, Arab states cannot balance their books | Leaders |... - 0 views

www-economist-com.envoy.dickinson.edu/...tes-cannot-balance-their-books

opinion MENA oil energy economy GCC Algeria KSA Saudi Oman Jordan Lebanon Egypt

shared by Ed Webb on 17 Jul 20 - Cached
  • Peak demand for oil may still be years away, but covid-19 has given the Middle East and north Africa a taste of the future. Prices of the black stuff plummeted as countries went into lockdown. The region’s energy exporters are expected to earn about half as much oil revenue this year as they did in 2019; the IMF reckons their economies will shrink by 7.3%. Even when the virus recedes, a glut of supply will probably keep prices down. Faced with budgets that no longer add up, Arab states must adapt.
  • Around a third of exports from Jordan and Lebanon go to oil-rich states, which send back wealthy tourists. Kuwaitis, Saudis and Emiratis account for about a third of tourist spending in Lebanon.
  • Egypt exports little oil, but over 2.5m of its citizens work in oil-rich countries. Remittances are worth 9% of its GDP. As oil revenues fall and some of those jobs disappear, Egypt will suffer, too. The same is true of Jordan, Lebanon and the Palestinian territories, which have long relied on the Gulf to absorb their jobless masses.
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  • in May the Algerian government said it would cut its budget by half. Things are no better in Iraq, a big oil exporter, which is nearly broke. Even stable producers such as Oman and Kuwait are living beyond their means. Saudi Arabia, the world’s biggest oil exporter, has been burning through its cash reserves for months. Money that was meant to smooth the kingdom’s transition to a less oily economy is now propping up the old petrostate.
  • The bad news is that these states are moving too slowly. Some have cut their bloated bureaucracies and pared back subsidies. Saudi Arabia recently tripled its value-added tax. But the public sector is still the region’s main employer. Despite talk of diversification, the Gulf’s economies continue to revolve around oil
  • these reforms will be painful and are harder in bad times
  • The plans put forward by leaders like Saudi Arabia’s Muhammad bin Salman are tearing up the social contract. Saudis wonder why he doesn’t sell his $550m yacht instead of raising taxes. Anger is growing across the region. For the past century Arabs have been ruled by abusive leaders who hoarded their country’s wealth. Now these leaders are asking their people to make sacrifices and giving them little say in the matter. That is a recipe for continuing unrest and brutal suppression. If Arab rulers want citizens to pay their way, they will need to start earning their consent.
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