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Ed Webb

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

  • 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.
  • 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.
  • 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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  • 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.
  • 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.
Ed Webb

Debt is No Way For Non-Oil Arab States to Grow - Bloomberg - 0 views

  • many of the non-oil exporting nations in the Middle East and North Africa are undergoing a process of redefinition of how they are linked with the global economy. It is not going well.
  • Egypt, Tunisia, Morocco and Jordan are becoming more dependent on external borrowing than on foreign direct investments compared to the pre-2008 period. This is visible with declining ratios of FDIs to GDP, in contrast with increasing ratios of foreign debt to GDP and total exports
  • The relative political stabilization in all four countries as of 2014/2015 did not allow them much room for full-fledged recovery due to the global economic slowdown. This made it harder for all of them to achieve export-led growth and attract FDI, leaving them with foreign borrowing as the only viable option. Foreign debt accounts for much of the apparent recovery, as expressed in growth rates.
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  • The ratio of external debt to total exports of goods, services and primary incomes was even more dramatic for all four countries. This is a proxy of the capacity of these economies to service their growing external obligations. Between 2010 and 2017, the ratio increased from 75%, 99.6%, 97.6% and 125% for Egypt, Tunisia, Morocco and Jordan re2spectively, to 190%, 178%, 125% and 198% in 2017. All the figures exceed the 77% limit that, in the World Bank’s reckoning, foreign debt has a negative impact on growth.
  • In Egypt, the ratio of external debt to GNI more than doubled from 17% in 2010 to 36% in 2017. The change was as pronounced in Tunisia, were the ratio jumped from 54% to 83%. In Morocco and Jordan, the ratios changed as well from 65% and 29.6%, to 47% and 75%.
  • International capital markets are unstable and global trade is contracting. Governments should instead target local investment in brick-and-mortar sectors that can deliver real growth, create jobs and possibly reduce the dependency on some imports
  • better use of the net inflows of capital they have received for years in the form of remittances. Instead of channeling them into non-tradable sectors like real-estate, as has been often the case, they should be used to finance investment in more productive sectors
  • trade-oriented regional integration, opening markets in oil-rich countries. There might be room also for adding a regional dimension to plans for industrial diversification by Saudi Arabia and the United Arab Emirates, by coordinating flows of investment and technology and skill transfers in sectors like petrochemicals and hi-tech services.  Such measures would generate growth and employment for poorer allies and cement regional geopolitical arrangements
Ed Webb

'Apocalypse soon': reluctant Middle East forced to open eyes to climate crisis | Climat... - 0 views

  • In Qatar, the country with the highest per capita carbon emissions in the world and the biggest producer of liquid gas, the outdoors is already being air conditioned.
  • The Gulf States are still highly reliant on oil and gas exports, which remain more than 70% of total goods exports in Kuwait, Qatar, Saudi Arabia and Oman, and on oil revenues, which exceed 70% of total government revenues in Kuwait, Qatar, Oman, and Bahrain. In Vision 2030, published in 2016, the Saudi crown prince, Mohammed bin Salman, promised to turn the country into a diversified industrial power house. The reality is very different. The World Bank shows Saudi Arabia is still 75% dependent on oil exports for its budget.
  • The Middle East is warming at twice the rate of the rest of the world. By the end of the century, if the more dire predictions prove true, Mecca may not be habitable, making the summer Haj a pilgrimage of peril, even catastrophe
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  • The ruling elites are all dependent on oil rents for the survival of their regimes. They need the oil business to stay alive for them to stay in power. Their system is based on continued oil rent, but ultimately, the citizens’ long-term interests are with a liveable climate
  • The precise point oil demand will peak has been contested, and depends on a myriad of assumptions about regulation, technology and consumer behaviour. But many people say demand will peak in about 2040, and then decline.
  • the International Energy Association’s report Net Zero by 2050, by contrast, proposed oil demand fall from 88m barrels a day (mb/d) in 2020, to 72 mb/d in 2030 and to 24 mb/d in 2050, a fall of almost 75% between 2020 and 2050. It argued that the Gulf has all three elements needed to switch to renewables: capital, sun and large tracts of vacant land.
  • Opec’s own projections suggest oil demand will rise in absolute terms through to 2045, and oil’s share of world wide energy demand will fall only from 30% to 28%. Hardly a green revolution.
  • In the United Arab Emirates it is estimated that the climate crisis costs £6bn a year in higher health costs. The salinity of the Gulf, caused by proliferating desalination plants, has increased by 20%, with all the likely impact on marine life and biodiversity.
  • Aramco, the Saudi company with the largest carbon footprint in the world, is not trying to diversify at the rate of Shell or BP. Indeed, it has just announced an investment to increase crude capacity from 12m barrels a day to 13m barrels by 2027
  • If you see the lifestyle in the UAE, Saudi Arabia and Qatar, it is based on endless consumption
  • The region is responsible for only 4.7 % of worldwide carbon emissions, dwarfed by the pollution from Europe, America and China. The oil that the Middle East exports is logged against the carbon emissions of the users, not the producers.
  • The Gulf’s self-proclaimed first mover, the UAE, was the first country in the region to ratify the Paris agreement and is now the least dependent on oil for government revenues. Last week it announced a “net zero initiative by 2050” to be begun with $163bn (£118bn) of investments and a new minister for climate change and the environment, Mariam Almheiri. The announcement came after the UAE ordered an 80-day brainstorming session in every government department from June. It was the first petro-state to embrace net zero in domestic consumption.
  • Gulf states are deeply competitive, so a flurry of news is emerging. Qatar has appointed a climate minister; Bahrain is targeting net zero by 2050; Kuwait has a new emissions plan.
  • Fossil fuels shipped abroad are not on the Saudi’s carbon ledger, owing to UN accounting rules, and the promised internal reduction in emissions is dependent on a heavy bet that unproven blue hydrogen and carbon capture technology will work.
Ed Webb

Saudi agricultural investment abroad - land grab or benign strategy? | Middle East Eye - 0 views

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    oil exporters buying up fertile land elsewhere
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    oil exporters buying up fertile land elsewhere
Ed Webb

Torture in Bahrain Becomes Routine With Help From Nokia Siemens - Bloomberg - 0 views

  • Western-produced surveillance technology sold to one authoritarian government became an investigative tool of choice to gather information about political dissidents -- and silence them
  • “The technology is becoming very sophisticated, and the only thing limiting it is how deeply governments want to snoop into lives,” says Rob Faris, research director of the Berkman Center for Internet and Society at Harvard University in Cambridge, Massachusetts. “Surveillance is typically a state secret, and we only get bits and pieces that leak out.” Some industry insiders now say their own products have become dangerous in the hands of regimes where law enforcement crosses the line to repression.
  • Across the Middle East in recent years, sales teams at Siemens, Nokia Siemens, Munich-based Trovicor and other companies have worked their connections among spy masters, police chiefs and military officers to provide country after country with monitoring gear, industry executives say. Their story is a window into a secretive world of surveillance businesses that is transforming the political and social fabric of countries from North Africa to the Persian Gulf. Monitoring centers, as the systems are called, are sold around the globe by these companies and their competitors, such as Israel-based Nice Systems Ltd. (NICE), and Verint Systems Inc. (VRNT), headquartered in Melville, New York. They form the heart of so- called lawful interception surveillance systems. The equipment is marketed largely to law enforcement agencies tracking terrorists and other criminals. The toolbox allows more than the interception of phone calls, e-mails, text messages and Voice Over Internet Protocol calls such as those made using Skype. Some products can also secretly activate laptop webcams or microphones on mobile devices. They can change the contents of written communications in mid-transmission, use voice recognition to scan phone networks, and pinpoint people’s locations through their mobile phones. The monitoring systems can scan communications for key words or recognize voices and then feed the data and recordings to operators at government agencies.
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  • “We are very aware that communications technology can be used for good and ill,” NSN spokesman Roome says. The elevated risk of human rights abuses was a major reason for NSN’s exiting the monitoring-center business, and the company has since established a human rights policy and due diligence program, he says. “Ultimately people who use this technology to infringe human rights are responsible for their actions,” he says.
  • Besides Bahrain, several other Middle Eastern nations that cracked down on uprisings this year -- including Egypt, Syria and Yemen -- also purchased monitoring centers from the chain of businesses now known as Trovicor. Trovicor equipment plays a surveillance role in at least 12 Middle Eastern and North African nations, according to the two people familiar with the installations.
  • Uprisings from Tunisia to Bahrain have drawn strength from technologies such as social-networking sites and mobile-phone videos. Yet, the flip side of the technology that played a part in this year’s “Facebook revolutions” may be far more forceful. Rulers fought back, exploiting their citizens’ digital connections with increasingly intrusive tools. They’ve tapped a market that’s worth more than $3 billion a year, according to Jerry Lucas, president of McLean, Virginia- based TeleStrategies Inc., organizer of the ISS World trade shows for intelligence and lawful interception businesses. He derives that estimate by applying per-employee revenue figures from publicly traded Verint’s lawful intercept business across the mostly privately held industry.
  • The Iranian Nobel Peace Prize winner Shirin Ebadi and other human rights activists have blamed Nokia Siemens for aiding government repression. In 2009, the company disclosed that it sold a monitoring center to Iran, prompting hearings in the European Parliament, proposals for tighter restrictions on U.S. trade with Iran, and an international “No to Nokia” boycott campaign. While there have been credible reports the gear may have been used to crack down on Iranian dissidents, those claims have never been substantiated, NSN spokesman Roome says. In Bahrain, officials routinely use surveillance in the arrest and torture of political opponents, according to Nabeel Rajab, president of the Bahrain Center for Human Rights. He says he has evidence of this from former detainees, including Al Khanjar, and their lawyers and family members.
  • During the Arab spring, it was easy to spot the company’s fingerprints, says Gyamlani. Tuning in to Germany’s N24 news channel at his home in Munich, he immediately suspected that governments were abusing systems he’d installed. Failed uprisings stood out to him because of the way the authorities quashed unrest before it spread
  • Schaake says surveillance systems involving information and communications technology should join military items such as missile parts on lists of restricted exports. Schaake helped to sponsor a parliamentary resolution in February 2010 that called for the EU’s executive body, the European Commission, to ban exports of such technology to regimes that could abuse it. The commission hasn’t implemented the nonbinding resolution. The U.S. Congress passed a law in 2010 barring federal contracts with any businesses that sold monitoring gear to Iran. An investigation ordered by Congress and completed in June by the Government Accountability Office was unable to identify any companies supplying the technology to Iran, partly because the business is so secretive, the agency reported.
Ed Webb

'Five years ago there was nothing': inside Duqm, the city rising from the sand | Cities... - 0 views

  • a long line of plans stretching back to the 1980s aimed at developing and populating barren parts of Oman. Around 70% of the country’s population resides within a thin 150-mile-long coastal strip in the north near Muscat. The government now sees its hundreds of miles of unused coastline as full of economic potential.
  • “Duqm is a huge industrial city being built out of thin air,” says Manishankar Prasad, a local researcher who worked on the new city’s environmental and cultural impact assessments. “It will essentially change the locus of industrial activity from the northern parts of the country, which are heavily urbanised. [Having this] huge geographical expanse with this sparse population and no industrial activity is really not the way forward.”
  • We are in the midst of an era of new cities – with more than 200 currently under construction. Remote deserts all over east Asia, the Middle East and parts of Africa are being urbanised. There’s Nurkent in Kazakhstan, Aylat in Azerbaijan, New Kabul City in Afghanistan, New Baghdad in Iraq, Rawabi in Palestine, King Abdullah Economic City in Saudi Arabia, New Cairo in Egypt … Morocco has nine new cities in the works, and Kuwait has 12.
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  • Oman is desperate to diversify away from its oil and gas dependency. Research by the US Energy Information Administration puts Oman’s known crude oil reserves at 5.6bn barrels. While this is only enough to rank the country 21st in the world, its economy is disproportionately dependent: oil and gas accounts for nearly half of the country’s GDP, 70% of exports and between 68% and 85% of government revenue.
  • “Several dozen new cities are being constructed in the Middle East, mainly to transition away from the petroleum industry to a variety of other industries, including tourism, manufacturing, education and hi-tech,” says Dr Sarah Moser, a McGill University geography professor and author of an upcoming atlas of new cities.
  • Duqm sits on the Arabian Sea near the Strait of Hormuz, the gateway to the Persian Gulf – and the world’s most glaring oil supply chokepoint. Nearly a fifth of the world’s oil currently flows through this passage, ever prone to disruption. If the Duqm project succeeds, the shipping industry would be able to dock at the gates of the Middle East without needing to go all the way inside.
  • attracted the attention of Beijing’s much heralded Maritime Silk Road. More than three-quarters of Oman’s crude oil exports go directly to China.
  • While Duqm was never very densely populated, around 3,000 Bedouin – mostly fishermen and semi-nomadic herders – called the area home before the bulldozers arrived. These villages have now been demolished and the Oman government has built a new, modern town for them to relocate to. The houses look as if they were copied and pasted from Muscat – bright, white buildings two storeys high with garages and ornate gateways. There is a mosque in the centre. The houses stand empty. The local Bedouin prefer their traditional way of life – and want space to keep camels.
Ed Webb

The Fight Against Terror Needs Better Data - Foreign Policy - 0 views

  • Using a leaked database from 2016 on Islamic State recruits, we were able to geographically locate where almost 600 recruits originated from in Tunisia—one of the highest exporters of foreign fighters to Syria. We then used socio-economic data from Tunisian delegations (the equivalent of a district or a county—the smallest geographic unit that could be measured) to try to find what was driving foreign fighters to go to Syria. Surprisingly, our research suggests that absolute indicators of well-being, which are intuitively linked to terrorism by many policymakers, are not related to a higher probability of joining a violent extremist group.
  • higher rates of radicalization seem to be linked to relative deprivation—the perception of being disadvantaged or not achieving the expectations one feels entitled to. This builds on previous research including Ted Robert Gurr’s seminal book, Why Men Rebel, and supports the conclusions of recent work such as Kartika Bhatia and Hafez Ghanem’s study on the linkage between economic development and violent extremism across the Middle East
  • districts with high levels of unemployment among university-educated men produced higher numbers of men joining violent extremist groups
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  • districts with high inflows of domestic migrants in search of better living conditions exported more foreign fighters
  • the problem is not one of poverty or unemployment per se but rather the unmet expectations of highly educated youth who feel the country’s social contract has failed them
  • even policies that advance the right agenda items—such as increasing employment for well-educated youths—may not make any impact in addressing radicalization if they are too broadly based or target districts with low numbers of foreign fighters
Ed Webb

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

  • 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

Egypt: when the rivers run dry | openDemocracy - 0 views

  • A man that is deeply enmeshed in Egypt`s crony capitalist system, has revealed, through a series of online videos, what many Egyptians already felt and knew: Namely, the corruption of the military institution, and the regime’s deliberate economic and fiscal policy that is leading to the impoverishment of the mass of Egyptians, while enriching the military elites
  • His series of videos directly led to rare protests against President Abdel Fattah El Sissi, in-spite of the government’s draconian record of repression.
  • compared to 2015. Relative poverty rates rose from 27.8% to 32.5% in 2018, and the level of absolute poverty rose from 5.3% to 6.2% for the same period
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  • The decline in the level of consumption was not counteracted by an increase in the level of exports in goods and services. This is reflected in the value of Egyptian exports, which reached 47.45 billion USD in 2018, a decrease of 1.66 billion USD compared to 2013. Other indicators also reflect a worsening international competitive position. For example, the trade deficit ballooned from -6.34% of the GDP in 2013 to -10.45% of the GDP in 2018
  • the regime did not invest in the development of the manufacturing sector, and it did not lay down the foundation for sustainable, long-term economic growth
  • The growth of the GDP is primarily driven by government spending on mega infrastructure projects (spearheaded by the military), leading to a boom in the construction sector. Government spending is financed by a bloated public debt, the burden of which is disproportionality shouldered by the lower segments of society.
  • the military directly employs 19.2% of the labour force. This makes the military the second largest employer in the country, after the public sector that employs 5.6 million.
  • projects include much-publicised mega infrastructure projects, with dubious economic benefit, the most notable of which is the new administrative capital. The construction sector, which is closely connected to the military led projects, played an important role in generating economic growth. In 2018, it is estimated to have grown by 8.9%, making it the number one contributor to the GDP growth
  • growth of the GDP is not driven by a dynamic private sector, but mainly by a massive military led construction spree, and mega-infrastructure projects that have little positive impact on increasing the competitiveness of the Egyptian economy
  • the unemployment rate, which reached 8.1% by the first quarter of 2019, the lowest in 10 years. This drop in the level of unemployment, however, requires some additional qualification. The rate of utilization, which measures the number of workers employed for at least one hour per week as a percentage of the population, has dropped from 44.5% to 39%. This is also accompanied by a reduction in the level of workforce participation from 46.4% to 41.6%, indicating a reduction in the level of those seeking work, rather than an increase in the number of available jobs. Loss of hope should be credited with the drop in the level of unemployment, not improved economic conditions.
  • profits generated from business owned by the armed forces are exempt from taxation, under law 96 (2015). This means that the government is shifting the burden on the shoulders of the poor, as they finance the military construction spree, which in-turn is used to enrich the military elites and other regime insiders
  • as debt continues to pile up, the pressure on the poor will continue to rise, as the government continues to cut social spending. This will reduce the level of effective local demand, leading to greater pressure on the private sector. In addition, if the construction spree continues, the possibility of overcapacity and over-accumulation of capital in the construction sector becomes more prominent. In essence, a bubble that is bound to burst.
Ed Webb

Can Cairo stave off discontent over soaring prices? - 0 views

  • As pressure builds on Egyptian livelihoods following the devaluation of the pound and the slashing of fuel subsidies in November, some analysts are wondering if another uprising is looming on the horizon for Egypt. They warn that a new wave of unrest would be bloodier than the 2011 uprising and could spell disaster for the country, still reeling from the turbulent post-revolution transition.
  • Prices of basic food items, medicine, transport and housing have soared, prompting Egyptians to cut spending to make ends meet. The prices of some basic food items have shot up by up to 40%, according to CAPMAS, the Central Agency for Public Mobilization and Statistics
  • protests broke out in at least four Egyptian provinces March 7. The demonstrations were triggered by bread shortages in some bakeries after Supply Minister Aly Moselhy announced a new bread subsidies system that he defended as “necessary to curb waste and corruption.” Hundreds of demonstrators blocked roads and cut railways in Alexandria, Giza, Kafr El Sheikh and Minya in protest at the minister’s abrupt decision to reduce the share of bread allotted to holders of paper ration cards to 500 loaves per bakery a day from the original 1,000 and 4,000 loaves (depending on the number of consumers in the bakery’s vicinity.)
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  • The decision to implement the new system was quickly reversed, however, over fears that the simmering bread crisis could provoke wider tumult. Seeking to allay citizens’ concerns that the move was a prelude to a reduction in their quotas of subsidized bread, Moselhy held a televised press conference on the day of the protests, apologizing to “all citizens who had not received bread” and asserting that their quotas would remain untouched. Promising to resolve the crisis within 48 hours, he blamed bakery owners for the crisis, hinting they were making profits off the subsidized flour they received from the government.
  • In the last six years, government spending on food and fuel subsidies has represented more than a quarter of annual government expenditure (more than the country spends on education and health services combined)
  • a thriving black market for the subsidized wheat, which is often resold by the bakeries at a profit rather than turned into bread
  • The real test will be the government’s ability to stave off unrest that could undermine the progress made so far. Nafaa said it is possible to quell the rising anger over soaring prices “through more equitable distribution of wealth, better communication of government policies, transparency and accountability.”
  • Tensions have been simmering since the pound’s depreciation — a key requirement by the International Monetary Fund for Egypt to secure a $12 billion loan needed to finance the country’s budget deficit and shore up dwindling foreign currency reserves. Economists and analysts have lauded the flotation as “a much-needed reform that would restore investors’ confidence in the economy, helping foster growth and job creation.”
  • shrinking middle class was already struggling with flat wages, high inflation and mounting unemployment
  • Sisi’s approval ratings, which according to a poll conducted in mid-December 2016 by Baseera (Egyptian Center for Public Opinion Research) fell by 50% during his second year in office
  • the weak currency is helping the economy by boosting exports and luring back tourists. A 25% increase in non-petroleum exports in January (compared with the same month last year), along with new loans from the IMF and other sources, is beefing up foreign currency reserves, according to The Economist. The weaker currency is also proving to be a blessing in disguise for local manufacturers as more consumers are opting to purchase local products, which are more affordable than their imported alternatives
  • “The patience of Egyptians is wearing thin,” Cairo University political scientist Hassan Nafaa told Al-Monitor. “Despite the economic pressures they are facing, citizens have so far restrained themselves from protesting because they are weary after two revolutions. They also fear further turmoil as they see the civil wars in some of the neighboring Arab countries. But if people are hungry and if their basic needs are not met, there is likely to be another rebellion,” he warned, adding that if that happens, “It would be messy and bloody.”
  • “The government must also ease the crackdown on dissent, release detainees who have not committed terror crimes and bring more youths on board,”
Ed Webb

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

  • 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

The Coronavirus Oil Shock Is Just Getting Started - 0 views

  • People in the West tend to think about oil shocks from the perspective of the consumer. They notice when prices go up. The price spikes in 1973 and 1979 triggered by boycotts by oil producers are etched in their collective consciousness, as price controls left Americans lining up for gas and European governments imposed weekend driving bans. This was more than an economic shock. The balance of power in the world economy seemed to be shifting from the developed to the developing world.
  • If a surge in fossil fuel prices rearranges the world economy, the effect also operates in reverse. For the vast majority of countries in the world, the decline in oil prices is a boon. Among emerging markets, Indonesia, Philippines, India, Argentina, Turkey, and South Africa all benefit, as imported fuel is a big part of their import bill. Cheaper energy will cushion the pain of the COVID-19 recession. But at the same time, and by the same token, plunging oil prices deliver a concentrated and devastating shock to the producers. By comparison with the diffuse benefit enjoyed by consumers, the producers suffer immediate immiseration.
  • In inflation-adjusted terms, oil prices are similar to those last seen in the 1950s, when the Persian Gulf states were little more than clients of the oil majors, the United States and the British Empire
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  • In February, even before the coronavirus hit, the International Monetary Fund was warning Saudi Arabia and the United Arab Emirates that by 2034 they would be net debtors to the rest of the world. That prediction was based on a 2020 price of $55 per barrel. At a price of $30, that timeline will shorten. And even in the Gulf there are weak links. Bahrain avoids financial crisis only through the financial patronage of Saudi Arabia. Oman is in even worse shape. Its government debt is so heavily discounted that it may soon slip into the distressed debt category
  • The economic profile of the Gulf states is not, however, typical of most oil-producing states. Most have a much lower ratio of oil reserves to population. Many large oil exporters have large and rapidly growing populations that are hungry for consumption, social spending, subsidies, and investment
  • Fiscal crises caused by falling prices limit governments’ room for domestic maneuver and force painful political choices
  • Ecuador is the second Latin American country after Argentina to enter technical default this year.
  • Populous middle-income countries that depend critically on oil are uniquely vulnerable. Iran is a special case because of the punitive sanctions regime imposed by the United States. But its neighbor Iraq, with a population of 38 million and a government budget that is 90 percent dependent on oil, will struggle to keep civil servants paid.
  • Algeria—with a population of 44 million and an official unemployment rate of 15 percent—depends on oil and gas imports for 85 percent of its foreign exchange revenue
  • The oil and gas boom of the early 2000s provided the financial foundation for the subsequent pacification of Algerian society under National Liberation Front President Abdelaziz Bouteflika. Algeria’s giant military, the basic pillar of the regime, was the chief beneficiaries of this largesse, along with its Russian arms suppliers. The country’s foreign currency reserves peaked at $200 billion in 2012. Spending this windfall on assistance programs and subsidies allowed Bouteflika’s government to survive the initial wave of protests during the Arab Spring. But with oil prices trending down, this was not a sustainable long-run course. By 2018 the government’s oil stabilization fund, which once held reserves worth more than one-third of GDP, had been depleted. Given Algeria’s yawning trade deficit, the IMF expects reserves to fall below $13 billion in 2021. A strict COVID-19 lockdown is containing popular protest for now, but given that the fragile government in Algiers is now bracing for budget cuts of 30 percent, do not expect that calm to last.
  • Before last month’s price collapse, Angola was already spending between one fifth and one third of its export revenues on debt service. That burden is now bound to increase significantly. Ten-year Angolan bonds were this week trading at 44 cents on the dollar. Having been downgraded to a lowly CCC+, it is now widely considered to be at imminent risk of default. Because servicing its debts requires a share of public spending six times larger than that which Angola spends on the health of its citizens, the case for doing so in the face of the COVID-19 crisis is unarguable.
  • Faced with the price collapse of 2020, Finance Minister Zainab Ahmed has declared that Nigeria is now in “crisis.” In March, the rating agency Standard & Poor’s lowered Nigeria’s sovereign debt rating to B-. This will raise the cost of borrowing and slow economic growth in a country in which more than 86 million people, 47 percent of the population, live in extreme poverty—the largest number in the world. Furthermore, with 65 percent of government revenues devoted to servicing existing debt, the government may have to resort to printing money to pay civil servants, further spurring an already high inflation rate caused by food supply shortages
  • The price surge of the 1970s and the nationalization of the Middle East oil industry announced the definitive end of the imperial era. The 1980s saw the creation of a market-based global energy economy. The early 2000s seemed to open the door on a new age of state capitalism, in which China was the main driver of demand and titans like Saudi Aramco and Rosneft managed supply
  • The giants such as Saudi Arabia and Russia will exploit their muscle to survive the crisis. But the same cannot so easily be said for the weaker producers. For states such as Iraq, Algeria, and Angola, the threat is nothing short of existential.
  • Beijing has so far shown little interest in exploiting the crisis for debt-book diplomacy. It has signaled its willingness to cooperate with the other members of the G-20 in supporting a debt moratorium.
  • In a century that will be marked by climate change, how useful is it to restore profits and prosperity based on fossil fuel extraction?
  • The shock of the coronavirus is offering a glimpse of the future and it is harsh. The COVID-19 crisis drives home that high-cost producers are on a dangerously unsustainable path that can’t be resolved by states propping up their uncompetitive oil sectors. Even more important is the need to diversify the economies of the truly vulnerable producers in the Middle East, North Africa, sub-Saharan Africa, and Latin America.
Ed Webb

On Blaming Climate Change for the Syrian Civil War - MERIP - 0 views

  • the Syria climate conflict narrative is deeply problematic.[2] Not only is the evidence behind this narrative weak. In addition, it masks what was really occurring in rural Syria (and in the country’s northeast region in particular) prior to 2011, which was the unfolding of a long-term economic, environmental and political crisis. And crucially, the narrative largely originated from Syrian regime interests in deflecting responsibility for a crisis of its own making. Syria is less an exemplar of what awaits us as the planet warms than of the complex and uncomfortable politics of blaming climate change.
  • much of Syria and the eastern Mediterranean region experienced an exceptionally severe drought in the years before the onset of Syria’s civil war: the single year 2007–2008 was northeastern Syria’s driest on record, as was the three-year period 2006–2009
  • it is reasonable to say, per the Columbia study, that climate change did make this particular drought more likely
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  • The widely reproduced claim that 2 to 3 million people were driven into extreme poverty by the 2006–2009 drought was drawn, extraordinarily, from analyses by the United Nations Development Programme (UNDP) of pre-drought poverty levels.[4] The claim that around 1.5 million people were displaced was derived from a single humanitarian news bulletin, seemingly on the basis of a misreading of the UN’s estimate of those affected—not displaced—by the drought. Using Syrian government numbers, the UN actually reported drought-period displacement to be around 40,000–60,000 families.
  • A presidential decree in 2008, which tightened restrictions on land sales across the northeastern-most province of Hasakah, led to the extensive loss of land rights and was credited by some organizations as a key factor in the increased migration from northeast Syria prior to the war
  • during 2008–2009 rural Syria was hit by triple-digit increases in the prices of key agricultural inputs. In May 2008 fuel subsidies were halved, leading to an overnight 342 percent spike in the price of diesel. And then in May 2009 fertilizer subsidies were removed, causing prices to rise anywhere from 200 to 450 percent. The fuel subsidy cuts had particularly devastating economic consequences, especially for farmers reliant on cheap fuel for groundwater irrigation.
  • The fact that a number of neighboring countries experienced equivalent precipitation declines during 2006–2009—or in Iraq’s case an even larger decline—but no comparable migration crises, suggests at the very least that the migration from Syria’s northeast must have been caused more by these Syria-specific factors than by the drought.
  • Proponents of the climate conflict thesis typically claim that drought-induced displacement caused a “population shock” within Syria’s urban peripheries, exacerbating pre-existing socio-economic pressures. Yet Syria’s cities grew rapidly throughout the decade before the civil war, not only during the drought years. By our calculations, excess migration from the northeast during 2008–2009 amounted to just 4–12 percent of Syria’s 2003–2010 urban growth (and this excess migration was not all triggered by drought)
  • as Marwa Daoudy concludes in her new book on the subject, there is “little evidence” that “climate change in Syria sparked popular revolt in 2011”—but “a lot of evidence” that “suggests it did not.”
  • a deep and long-term structural agrarian crisis
  • it is evident that northeastern Syria’s agrarian troubles—and especially those in the province of Hasakah—went all the way back to 2000, and indeed earlier. Production of the two main government-designated strategic crops, wheat and cotton, was in decline in Hasakah from the early 2000s onward. Land and settlements were being abandoned there well before the drought. Net out-migration from Hasakah during this period was higher than from any other province. And the reasons for this lay not in the drought but in the contradictions of Syrian development.
  • an agrarian socialist development program, promoting rapid expansion of the country’s agricultural sector and deploying Soviet aid and oil income to this end. Among other elements, this program involved heavy investment in agricultural and especially water supply infrastructure, low interest loans for private well drilling, price controls on strategic crops at well above international market value, the annual wiping clean of state farm losses and, as already indicated, generous input subsidies
  • Environmentally, the model relied above all on the super-exploitation of water resources, especially groundwater—a problem which by the early 2000s had become critical. And economically, Syrian agriculture had become highly input dependent, reliant on continuing fuel subsidies in particular.
  • Within just a few short years, Syria embraced principles of economic liberalization, privatized state farms, liberalized trade and reduced price control levels. At the same time domestic oil production and exports fell rapidly, thus undermining the regime’s rentier foundations and its capacity to subsidize agriculture
  • Irrespective of any drought impacts, these developments essentially occurred when the props that had until then artificially maintained an over-extended agricultural production system—oil export rents, a pro-agrarian ideology and their associated price controls—were suddenly and decisively removed.
  • As Syria’s pre-eminent breadbasket region—the heartland of strategic crop production—Hasakah was particularly vulnerable to economic liberalization and the withdrawal of input supports. No other region of the country was so dependent on groundwater for irrigation, a factor that made it particularly vulnerable to fuel price increases. Hasakah’s groundwater resources were also exceptionally degraded, even by Syrian standards
  • The region was also deeply affected by intense irrigation development and over-abstraction of groundwater resources within Turkey
  • It was Ba’athist state policies which had turned Hasakah into a region of wheat monoculture, failed to promote economic diversification and facilitated cultivation ever deeper into the badiya (the desert) while over-exploiting surface and groundwater resources. Moreover, these measures were taken partly for strategic and geostrategic reasons, bound up with regime interests in expanding and consolidating Hasakah’s Arab population (its project of Arabization), in controlling and excluding the province’s Kurdish population and in extending its control and presence within a strategically sensitive borderland and frontier region. During the heyday of Ba’athist agrarian development, Hasakah’s population and agricultural sector expanded like in no other area. With the collapse of this development model, rural crisis and out-migration were the inevitable result.
  • After an initial reluctance to acknowledge the depth of the crisis in the northeast, the government eventually embraced the climate crisis narrative with gusto. The drought was “beyond our powers,” claimed Asad. The drought was “beyond our capacity as a country to deal with,” claimed the Minister of Agriculture. “Syria could have achieved [its] goals pertaining to unemployment, poverty and growth if it was not for the drought,” proclaimed Deputy Prime Minister Abdullah al-Dardari.[12] Indeed, as the International Crisis Group reported, the Asad regime would regularly take diplomats to the northeast and tell them, “it all has to do with global warming,” blaming what was in essence a state-induced socio-ecological crisis on climatic transformations beyond its control.[13] This shifting of blame is essentially how the Syria climate crisis narrative began.
  • Official UN reports on the crisis in the northeast, which were produced in collaboration with the Syrian regime, were predictably drought-centric, barely mentioning any factors other than drought, omitting any criticisms of government policy and ignoring the existence of a discriminated-against Kurdish minority
  • International media reports on the subject were similarly focused on  drought, no doubt partly because of media preferences for simplified and striking narratives, but also because they relied upon UN sources and took these at their word
  • The climate crisis narrative reached its apogee in 2015, in the run-up to the UN Paris conference on climate change, when countless politicians and commentators turned to the example of Syria to illustrate the urgency of international action to limit greenhouse gas emissions.
  • regurgitated as a statement of fact in the scientific journal Proceedings of the National Academy of Sciences and by Western liberal politicians and eco-socialist campaigners alike
  • climate change is also much more than a physical reality and looming environmental threat: It is simultaneously an object of discourse, debate and rhetoric, a potent meta-narrative that can be invoked for explanation, legitimation, blame avoidance and enrichment.
  • climate change is already regularly invoked to questionable ends across the Middle East and North Africa. It is used to explain away ecological catastrophes actually caused by unsustainable agricultural expansion, to make the case for investment in new and often unnecessary mega-projects, to obscure state mismanagement of local environmental resources and to argue against the redistribution of such resources to oppressed and minority groups
  • blaming climate change is often a distraction from the real causes of socio-ecological crisis
Ed Webb

Ahead of COP27, Egypt is highly vulnerable to climate change - 0 views

  • Adel Abdullah cultivates a subsistence living off of six acres of peppers, eggplants, cucumbers, tomatoes, wheat, corn, and pomegranates. He is one of millions of smallholder farmers working in the Delta. He walks barefoot in his farm as a show of reverence to the land. The soil is pale and thin, almost as sandy as the beach, and choked by mounting concentrations of salt, left behind by periodic coastal flooding and pushed into underground aquifers by the rising sea.“This is the first place to be affected by climate change,” Abdullah says. “The barriers help a bit with flooding, but the salty soil is still really killing us.”
  • he takes irrigation water from the nearby Kitchener Drain, one of the largest and most polluted canals in Egypt that aggregates wastewater from the farms, businesses, and households of an estimated 11 million people in the Delta. By the time water reaches Abdullah’s farm, it may have been reused half a dozen times since entering Egypt in the Nile, each time accumulating more salts and pollutants and losing beneficial nutrients.
  • Abdullah is forced to douse the farm in fertilizers, pesticides, and salt-suppressing chemicals, all of which further degrade the soil. Those inputs, on top of the rising costs of irrigation systems and machinery, eat up any potential income Abdullah might earn
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  • The Nile Delta—where agriculture employs one-fifth of the country’s workforce and is responsible for 12% of its GDP and much of its food supply—is being hammered by rising sea levels, rising temperatures, and a growing shortage of water.
  • rapid urbanization and population growth
  • Climate adaptation solutions that could keep environmental problems from turning existential—fixing the battered and wasteful irrigation network, expanding affordable access to improved seeds and climate-smart farming technologies, and more effective and equitable regulation of urban development on agricultural land—are being rolled out by the government and research groups, but often slower than the pace of climate impacts. That’s left Egypt’s economy and food security exposed to growing risk.
  • “We’re really squeezed and marginalized here, and the government isn’t helping,” said one farmer down the road from Abdullah, who requested anonymity to speak frankly (with tens of thousands of political prisoners, Egypt’s restrictions on free speech are also gaining prominence ahead of COP27).
  • his children see no future in agriculture
  • Around 1805, an Ottoman general named Muhammad Ali took control of the country, and founded the dynasty of kings that would rule—eventually under British colonial supervision—for 150 years. One of Ali’s most enduring marks on the country was the establishment of the first modern network of dams and irrigation canals in the Delta, which allowed tens of thousands of new acres to come under cultivation.
  • water and land played a crucial role in Nasser’s legacy. 12% of the country’s arable land was owned by the aristocracy; Nasser nationalized this land and distributed it to about 340,000 impoverished rural families. He also further extended Ali’s irrigation network and oversaw construction of the Aswan High Dam, which brought an end to the Nile’s ancient seasonal flooding and fixed the river in its present position, with just two remaining branches forking through the Delta.
  • Egypt’s population has since more than quadrupled, to 104 million. Yet the flow of the Nile, which supplies more than 95% of the country’s water, has remained more or less constant. In the 1990s water availability fell below the international “water poverty” benchmark of 1,000 cubic meters per person per year.
  • Egypt has managed that scarcity by meticulously recycling agricultural water and, in recent years, curtailing the production of water-intensive crops like cotton and rice and importing 40% of its wheat and other food staples.
  • The population is still growing quickly, and could reach 160 million by 2050. The Grand Ethiopian Renaissance Dam that is nearing completion upstream could cut the flow of Nile water into Egypt by a quarter during the as-yet-unknown number of years it will take to fill its reservoir. By 2100, climate change-related heat waves upstream could reduce the Nile’s flow by 75%, Abousabaa said.
  • current annual demand for water is about 35% higher than what the country receives from the Nile, groundwater, and a very small amount of rain—a deficit of about 20 billion cubic meters. To cover it, she said, Egypt will need to use every drop multiple times, aggressively minimize wastage, and boost the supply by investing $2.8 billion in dozens of new desalination plants with the aim to produce 5 billion cubic meters annually by 2050.
  • Egypt has made clear that COP27 will focus primarily on wringing climate finance out of the rich countries that are most responsible for climate change.
  • On the western fringe of the Delta, farms and suburbs are gradually overtaking the desert as the central Delta grows more crowded. Here, water is even scarcer and the impacts of climate change are more pronounced. But in this and a few other desert areas around Egypt, the government is working to link more than 1.5 million acres to groundwater irrigation, and says it is about one-third of the way there. Land reclamation could take some pressure off the Delta, and sandy soils are well-suited for the production of citrus fruits that are one of Egypt’s most lucrative exports.
  • The unpredictability makes it difficult to identify solutions, Salah says: “Climate change is like a big black box.”
  • “For the last two years, with heat wave after heat wave, we lost more than half the crop. It’s really sad.”
  • The farm relies on groundwater brought up from wells on the property, and Nasrallah says the suburbs are draining the aquifer. In the last four years he has had to dig an extra thirty meters to find water—and deeper wells mean higher electricity bills for pumping. Some wells have dried up altogether. Recently, government officials told him he had to stop watering the grass on a soccer field he built for his workers.
  • Urbanization is also spreading in the inner Delta, as many farmers decide that constructing housing is more profitable than growing crops. Since the 1970s, about 14% of the Delta’s arable land has been converted to urban development
  • Individual farms are also becoming smaller with each generation as, in keeping with longstanding Egyptian custom, land is divided among a father’s heirs (with sons traditionally taking a larger share than daughters). Urban development degrades the Delta’s soil and drives more farming into the desert, leaving the entire food system more vulnerable to climate impacts. Land fragmentation leads to the inefficient use of water and other resources and raises the costs of distribution for farmers.
  • in some cases, the government’s own plans are responsible, most recently in August when thousands of people living on a Nile island near Cairo that was primarily used for farming were evicted to make way for a state-sanctioned development project.
  • The network started by Muhammed Ali now includes about 33,000 miles of delivery and drainage canals across the country, enough to wrap around the globe, that range in size from small rivers to something a child could hop over. Delta residents say they used to bathe in these canals, drink from them, and raise fish in them. Now many of them, especially at the ends of the network, are polluted with farming chemicals and sewage, and choked with trash.
  • Between seepage, evaporation, and water wasted by farmers who flood their fields instead of using controlled irrigation hoses, nearly one-third of the country’s water is lost in the irrigation system between the Aswan High Dam and the sea
  • The soil is dark and appears rich, but is crusted with a visible layer of salt, a problem that affects up to 40% of Egypt’s arable soil.
  • Fixing the irrigation network is a priority for the government. Eman Sayed from the Irrigation Ministry said her agency has lined about 3,700 miles of canals with concrete in the last two years and is aiming to finish another 12,400 in the next few years. The ministry is also helping farmers cover the cost of installing drip irrigation systems, which researchers at AUC found can cut farmers’ water consumption 61% per year; today such systems cover only one-sixth of arable land in Egypt.
  • Authorities have also begun to restrict production of water-intensive crops like rice and bananas, although farmers say there is little enforcement of these rules, and both crops are still widely cultivated throughout the Delta.
  • rising temperatures and falling rainfall mean crops—which consume 86% of Egypt’s water supply—will require more irrigation to survive.
  • On the horizon, an offshore natural gas platform is visible. Egypt, which seized the disruption of Russian energy supplies to Europe because of the Ukraine war as an opening to boost its own exports of natural gas, is now contributing more to the problem than ever before; an independent review of its new climate strategy ranked it “highly insufficient” for averting disastrous levels of carbon emissions.
  • By 2100, Noureldeen says, sea level rise could inundate nearly 700 square miles of the coastal Delta and displace four million people.
Ed Webb

Egypt currency has further to fall: business leader | Reuters - 0 views

  • Egypt has begun devaluing its currency to help revive the economy and meet the conditions of an expected IMF loan and the depreciation has further to go, a business leader in the ruling Muslim Brotherhood said
  • "We have started already some increase in taxation, and there is the devaluation of the pound and we raised some prices of petrol and gas," Malek said in an interview."Normal people in the street now understand that there is a price that we will have to pay for the IMF agreement."Asked whether he expected a further depreciation of the Egyptian currency to help exports and tourism, he said: "I'm not of course a technical (expert) but people expect a little bit of devaluation in the future."
  • Malek, who was imprisoned under Mubarak with top Muslim Brotherhood leader Khairat el-Shater, his friend and business partner, said he was actively trying to persuade wealthy Egyptians to return and invest in the country.Asked if he was personally involved in trying to persuade billionaires who have left Egypt and had their assets frozen or been convicted of economic crimes to come home, he said "Yes. I am inviting everyone to come to Egypt. It is very important to prioritize legislation and court cases should be solved first... before these people come back."
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  • Malek said his organization was also trying to broker a solution to Cairo's debt to foreign energy companies producing oil and gas in Egypt such as BP, Gas Natural, Petronas, Shell and Dana, that has accumulated since the 2011 uprising.He disputed the figure of $9 billion cited by consultancy Executive Analysis and European diplomats for the total energy debt, saying it was far less, but declined to give a number."Some of their contracts needed to be reviewed because they were not balanced to cover both the national interest and the company interest. So some licenses were suspended when they expired, which made a bit of a problem," Malek said."We tried to encourage them by giving them more concessions and rescheduling these payments (owed by Egypt). We opened other opportunities in the same field such as refineries and other projects they can take. Up to this moment, none of these companies has decided to leave," Malek said.He acknowledged that most foreign energy companies were still holding back on new investments in Egypt. "They want to see these problems tackled first. They want to see a clear road map, which is normal in such an environment."
Ed Webb

U.S. Embassy Attack In Yemen Makes West Uneasy Over Ali Abdullah Saleh's Role In Transi... - 0 views

  • Ali Abdullah Saleh's continuing sway over Yemen is worrying Gulf neighbours and Western nations who fear that the political transition could descend into chaos
  • "We share the concern over the role that the former president and those hardcore elements around him are playing right now," a senior Western diplomat in Sanaa said, adding they were undermining the government and hindering the transition. "We do have concerns about their resistance to following the legitimate orders of President Hadi."
  • Restoring stability in Yemen has become an international priority for fear that Islamist militants will further entrench themselves in a country neighbouring top oil exporter Saudi Arabia and lying on major world shipping lanes.
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  • Of all the complications to reestablishing state control, including southern secessionists, a Zaydi Shi'ite revival movement tussling with Sunni Islamists and a covert U.S. missile war on militants, the role of Washington's former strongman in Sanaa has emerged as perhaps the most pressing
  • Saleh still wields influence through his control of the General People's Congress (GPC) party, a ruling coalition partner, and through powerful relatives who run elite military and security units
  • "Revenge dominates in Yemeni society. If people feel wronged and no one gives them justice they will try to get it themselves in any way," said Human Rights Minister Hooria Mashhour.
  • Political analyst Abdulghani al-Iryani said there was little chance of the old order reestablishing itself, though Saleh and the north Yemeni tribal and religious elites would try to resist the shift to decentralisation. "It's impossible. If you look at the historical patterns, his regime survived for so long against the law of gravity," Iryani said.
Ed Webb

The Ouarzazate Solar Plant in Morocco: Triumphal 'Green' Capitalism and the Privatizati... - 0 views

  • a solar mega-project that is supposedly going to end Morocco's dependency on energy imports, provide electricity to more than a million Moroccans, and put the country on a “green path.”
  • The land, sold at a cheap one Moroccan dirham per square meter was clearly worth a lot more. As if things were not bad enough, the duped local population were surprised to find out that the money from the sale was not going to be handed to them, but that it would be deposited into the tribe's account at the Ministry of Interior. Additionally, the money would be used to finance development projects for the whole area. They discovered that their land sale was not a sale at all: it was simply a transfer of funds from one government agency to another.
  • What seems to unite all the reports and articles written about the solar plant is a deeply erroneous assumption that any move toward renewable energy is to be welcomed. And that any shift from fossil fuels, regardless of how it is carried out, will help us to avert climate chaos. One needs to say it clearly from the start: the climate crisis we are currently facing is not attributable to fossil fuels per se, but rather to their unsustainable and destructive use in order to fuel the capitalist machine. In other words, capitalism is the culprit, and if we are serious in our endeavors to tackle the climate crisis (only one facet of the multi-dimensional crisis of capitalism), we cannot elude questions of radically changing our ways of producing and distributing things, our consumption patterns and fundamental issues of equity and justice. It follows from this that a mere shift from fossil fuels to renewable energy, while remaining in the capitalist framework of commodifying and privatizing nature for the profits of the few, will not solve the problem. In fact, if we continue down this path we will only end up exacerbating, or creating another set of problems, around issues of ownership of land and natural resources.
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  • the acquisition of 3000 hectares of communally owned land to produce energy
  • "green grabbing"
  • the transfer of ownership, use rights and control over resources that were once publicly or privately owned –or not even the subject of ownership– from the poor (or everyone including the poor) into the hands of the powerful
  • This productivist creation of marginality and degradation has a long history that goes back to French colonial times. It was then that degradation narratives were constructed to justify both outright expropriation of land and the establishment of institutional arrangements based on the premise that extensive pastoralism was unproductive at best, and destructive at worst.
  • the discursive framework rendered it "marginal" and open to new "green" market uses: the production of solar power in this case at the expense of an alternative land use - pastoralism - that is deemed unproductive by the decision-makers. This is evident in the land sale that was carried out at a very low price.
  • various deceptive laws with colonial origins that have functioned to concentrate collective land ownership within the hands of an individual land representative, who tends to be under the influence of powerful regional nobles
  • meetings masquerading as a "consultation with the people" were only designed to inform the local communities about a fait accompli rather than seeking their approval
  • This analysis examines the project through the lens of the creation of a new commodity chain, revealing its effects as no different from the destructive mining activities taking place in southern Morocco.
  • privatizations in the renewable energy sector are not new as of 2005, when a royal holding company called Nareva was created specifically to monopolize markets in the energy and environment sectors and ended up taking the lion's share in wind energy production in the country
  • he government had effectively privatized and confiscated historical popular sovereignty over land and transformed the people into mere recipients of development; development they are literally paying for, provided it would one day materialize, of course
  • There is no surprise regarding the international financial institutions' (IFIs) strong support for this high-cost and capital-intensive project, as Morocco boasts one of the most neoliberal(ized) economies in the region. It is extremely open to foreign capital at the expense of labor rights, and very advanced in its ambition to be fully integrated into the global marketplace (in a subordinate position, that is).
  • The World Bank’s disbursement levels to Morocco reached record levels in 2011 and 2012, with a major emphasis of these loans placed on promoting the use of Public Private Partnerships (PPPs) within key sectors
  • It seems that production of energy from the sun will not be different and will be controlled by multinationals only interested in making huge profits at the expense of sovereignty and a decent life for Moroccans.
  • The idea that Morocco is taking out billions of dollars in loans to produce energy, some of which will be exported to Europe when the economic viability of the initiative is hardly assured, raises questions about externalizing the risk of Europe's renewable energy strategy to Morocco and other struggling economies around the region. It ignores entirely what has come to be called "climate debt" or "ecological debt" that is owed by the industrialised North to countries of the Global South, given the historical responsibility of the West in causing climate change
  • The biggest issue with this technology is the extensive use of water that comes with the wet cooling stage. Unlike photovoltaic (PV) technology, CSP needs cooling. This is done either by air cooled condensers (dry cooling) or high water-consumption (wet cooling). Phase I of the project will be using the wet cooling option and is estimated to consume from two to three million cubed meters of water annually (Kouz 2011). Water consumption will be much less in the case of a dry cooling (planned for phase II): between 0.73 and 0.88 million cubed meters. PV technologies require water only for cleaning solar panels. They consume about 200 times less water than CSP technology with wet cooling and forty times less water than CSP with dry cooling.
  • Even if the solar plant is only using one percent of the average dam capacity, the water consumption is still significant and can become a thorny problem at times of extreme drought when the dam contains only fifty-four million cubed meter. At such times, the dam waters will not be sufficient to cover the needs of irrigation and drinking water,  making the water usage for the solar plant deeply problematic and contentious.
  • in an arid region like Ouarzazate, this appropriation of water for a supposedly green agenda constitutes another green grab, which will play into and intensify ongoing agrarian dynamics and livelihood struggles in the region.
  • If the Moroccan state was really serious about its green credentials, why is it then building a coal-fired power plant at the same time, which represents an ecocide in-waiting for the already-polluted town of Safi? Why is it also ignoring the devastating environmental and social effects of the mining industry in the country? One notable example is the long-standing community struggle in Imider (140 kilometres east of Ouarzazate) against the royal holding silver mine (Africa's most productive silver mine), which is polluting their environment, grabbing their water, and pillaging their wealth.
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