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Ed Webb

Bad company: How dark money threatens Sudan's transition | European Council on Foreign ... - 0 views

  • The civilian wing of the Sudanese state is bankrupt but unwilling to confront powerful generals, who control a sprawling network of companies and keep the central bank and the Ministry of Finance on life support to gain political power
  • Chronic shortages of basic goods and soaring inflation have come to define the life of ordinary Sudanese. In villages and towns that rely on gasoline pumps – such as Port Sudan – the taps have often run dry, forcing people to queue to buy barrels of water.
  • Western countries and international institutions have let the civilian wing of the government down: they failed to provide the financial and political support that would allow Prime Minister Abdalla Hamdok to hold his own against the generals
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  • a coalition of trade unions called the Sudanese Professionals Association (SPA) established informal leadership of nationwide demonstrations
  • In February 2020, the International Monetary Fund (IMF) described Sudan’s economic prospects as “alarming” – unusually blunt language by its standards. Then came covid-19 and the associated global economic downturn. The IMF revised its assessment: Sudan’s GDP would shrink by 7.2 percent in 2020. By April, inflation had risen to almost 100 percent (one independent estimate finds that inflation may have hit around 116 percent). Adding to this grim catalogue of calamities, the swarms of locusts that have ravaged the Horn of Africa in the worst outbreak in 70 years are widely expected to arrive in Sudan in mid-June. The United States Agency for International Development estimates that more than 9 million Sudanese will require humanitarian assistance this year.
  • Despite the fact that a “constitutional declaration” places the civilian-dominated cabinet in charge of the country, the generals are largely calling the shots. They control the means of coercion and a tentacular network of parastatal companies, which capture much of Sudan’s wealth and consolidate their power at the expense of their civilian partners in government
  • In particular, Hamdok will need to establish civilian authority over the parastatal companies controlled by the military and security sector. The task is daunting and fraught with risks, but Hamdok can acquire greater control by taking advantage of the rivalry between Hemedti and General Abdelfattah al-Buhran, the de facto head of state.
  • draws on 54 recent interviews with senior Sudanese politicians, cabinet advisers, party officials, journalists, former military officers, activists, and representatives of armed groups, as well as foreign diplomats, researchers, analysts, and officials from international institutions
  • Sudan’s chance for democratisation is the product of a difficult struggle against authoritarianism. For three decades, Bashir ruled as the president of a brutal government. He took power in 1989 as the military figurehead of a coup secretly planned by elements of the Sudanese Muslim Brotherhood, before pushing aside Islamist ideologue Hassan al-Turabi, who had masterminded the plot. During his rule, Bashir survived US sanctions, isolation from the West, several insurgencies, the secession of South Sudan, a series of economic crises, and arrest warrants from the International Criminal Court for war crimes, crimes against humanity, and genocide in Darfur. He presided over ruthless counter-insurgency campaigns that deepened political rifts and destroyed the social fabric of peripheral regions such as Darfur, South Kordofan, and Blue Nile.
  • he turned pro-government tribal militias from Darfur into the Rapid Support Forces (RSF), an organisation led by Hemedti, as insurance
  • Throughout the 2010s, the Bashir regime put down successive waves of protests. But the uprising that began on December 2018 – triggered by Bashir’s decision to lift subsidies on bread – proved too much for the government to contain
  • The April 2019 revolution, which ended Omar al-Bashir’s 30-year military rule, brought hope that a civilian regime would emerge to govern Sudan. But – less than a year since the appointment of the transitional prime minister, Abdalla Hamdok – this hope is fading fast.
  • As junior officers vowed to protect demonstrators, the leaders of the military, the RSF, and the NISS put their mistrust of one another aside, overthrew Bashir, and installed a junta
  • On 3 June, the last day of Ramadan, the generals sent troops to crush the sit-in. RSF militiamen and policemen beat, raped, stabbed, and shot protesters, before throwing the bodies of many of their victims into the Nile. Around 120 people are thought to have been killed and approximately 900 wounded in the massacre.
  • prompted Washington and London to pressure Abu Dhabi and Riyadh to curb the abuses of their client junta
  • envisioned a transition that would – over the course of a little more than three years, and under the guidance of a civilian-led cabinet of ministers – reach a peace deal with armed groups from the peripheral regions of Sudan, while establishing a new constitutional order and free elections
  • When Hamdok, a UN economist picked by the FFC, took office on 21 August, there were grounds for cautious optimism. The peace talks with armed groups began in earnest and seemed to make rapid progress. Hamdok inherited a catastrophic economic situation and political structure in which the generals remained in high office but the constitutional declaration put civilians in the driving seat. Western countries expressed their full support for the transition. The journey would be difficult, but its direction was clear.
  • Sudanese citizens have gained new civil and political rights since the transition began. The new authorities have curtailed censorship. The harassment and arbitrary, often violent detentions conducted by NISS officers have largely ended. Minorities such as Christians now have freedom of religion. The government has repealed the public order law, which allowed for public floggings. And it is in the process of criminalising female genital mutilation.
  • The authorities have not achieved much on transitional justice.[3] The head of the commission in charge of investigating the 3 June massacre of revolutionary demonstrators said he could not protect witnesses. The authorities said they are willing to cooperate with the International Criminal Court to try Bashir and the other wanted leaders, but the generals are blocking a handover of the suspects to The Hague
  • By 2018, the authorities were struggling to finance imports, and queues were forming outside petrol stations. The economic slide continued, prompting Bashir’s downfall. It has only continued since then. The Sudanese pound, which traded at 89 to the dollar in the last weeks of Bashir’s rule, now trades at 147 to the dollar.
  • Donors want the Sudanese government to commit to reforms that will have a social cost in return for a promise of unspecified levels of funding. The pledges Sudan receives in June could fall far below the estimated $1.9 billion the government needs, forcing the authorities to create the social safety net only gradually.[8] This would go against the logic of a temporary programme designed to offset one-off price hikes. In these conditions, subsidy reform – however necessary – is a gamble for the government.
  • The European Union has pledged €250m in new development assistance (along with €80m in support against covid-19) to Sudan, while Sweden has pledged €160m, Germany €80m, and France €16m-17m. Yet these are paltry figures in comparison to Europeans’ declared commitments
  • The path to debt relief under the Heavily Indebted Poor Country (HPIC) Initiative is long in any circumstances. But US indifference, European timidity, and the indecisiveness of Hamdok’s cabinet have combined to kill off hopes that the diplomatic momentum Sudan established in September and October 2019 would quickly translate into substantial international assistance
  • Although the state sponsor of terrorism designation does not impose formal sanctions on Sudan, it sends a political signal that stigmatises the country, deters foreign investment and debt relief, and casts doubt on Washington’s claim to support civilian government. Unfortunately for Hamdok, Sudan does not sit high on the list of priorities of the current US administration. President Donald Trump decided not to fast-track Sudan’s removal from the list of state sponsors of terrorism, allowing the process to take the bureaucratic route and become enmeshed in the conflicting perspectives of the State Department, national security and defence agencies, and Congress
  • Failure to stabilise Sudan’s economy would have far-reaching consequences for not only the country but also the wider region. Since Hamdok’s appointment, the domestic balance of power has once again tilted in favour of the generals, who could seize on the climate of crisis to restore military rule. If they remove civilian leaders from the equation, rival factions within the military and security apparatus will be set on a collision course.
  • Within the government, the configuration of power that has emerged since September 2019 bears little resemblance to the delicate institutional balance – enshrined in the constitutional declaration – that the FFC fought so hard to achieve in its negotiations with the junta.
  • The generals’ public relations machine is now well-oiled. The military opened a bakery in Atbara, the cradle of the 2018-2019 uprising. Hemedti has established health clinics and a fund to support farmers; his forces have distributed RSF-branded food supplies and launched a mosquito-eradication campaign.
  • Neither Hamdok nor the FFC has attempted to mobilise public support when faced with obstruction by, or resistance from, the generals. As such, they have given up one of the few cards they held and created the impression that they have been co-opted by the old regime. The popularity of the FFC has collapsed; Hamdok earned considerable goodwill with the Sudanese public in late 2019, but their patience with him is wearing thin. Many activists say that they would be back on the streets if it were not for covid-19 (which has so far had a limited health impact on Sudan but, as elsewhere, led to restrictions on public gatherings).
  • The so-called “Arab troika” of the UAE, Saudi Arabia, and Egypt have taken advantage of the revolution to sideline their regional rivals Turkey and Qatar, which had long supported Bashir’s regime. The Emiratis, in cooperation with the Saudis, are playing a particularly active role in shaping Sudan’s political process, reportedly spending lavishly and manoeuvring to position Hemedti as the most powerful man in the new Sudan
  • The Emiratis are widely known to be generous with their covert financial contributions, which flow either directly to various political actors or, indirectly, through Hemedti.[20] Mohammed Dahlan, the Palestinian exile who runs many important security projects on behalf of Emirati ruler Mohammed bin Zayed, handles the UAE’s Sudan file.[21] Former Sudanese general Abdelghaffar al-Sharif, once widely considered the most powerful man in the NISS, reportedly lives in Abu Dhabi and has put his formidable intelligence network at the service of the UAE.
  • The Arab troika has also worked to undermine Hamdok and prop up the generals
  • Saudi Arabia and the UAE have avoided financing transparent mechanisms such as the World Bank’s Multi-Donor Trust Fund. Meanwhile, Hemedti appears to have a large supply of cash with which to support the central bank. In March, he deposited $170m in the bank. These developments suggest that the Gulf powers could be using their financial might to shape the outcome of Sudan’s domestic political process, redirecting flows of money to prop up Hemedti and exacerbating the economic crisis to position him as a saviour
  • The levels of resentment between the RSF and SAF are such that many officers fear a local incident could escalate into broader clashes between the two forces
  • Beyond subsidies, the economic debate in Sudan has recently turned to the issue of how the civilian authorities can acquire greater revenue – particularly by recovering assets stolen by the Bashir regime, and by gaining control of the sprawling network of parastatal companies affiliated with the military and security sector.
  • It is not difficult to identify who to tax: companies owned by NCP businessmen, Bashir’s family, the SAF, the NISS, and the RSF play a dominant role in the economy, yet benefit from generous tariff and tax exemptions
  • the military and security apparatus has shares in, or owns, companies involved in the production and export of gold, oil, gum arabic, sesame, and weapons; the import of fuel, wheat, and cars; telecommunications; banking; water distribution; contracting; construction; real estate development; aviation; trucking; limousine services; and the management of tourist parks and events venues. Defence companies manufacture air conditioners, water pipes, pharmaceuticals, cleaning products, and textiles. They operate marble quarries, leather tanneries, and slaughterhouses. Even the firm that produces Sudan’s banknotes is under the control of the security sector.
  • These companies are shrouded in secrecy; high-level corruption and conflicts of interest make the boundaries between private and public funds porous
  • The generals are using dark money to keep the civilian government on life support, ensuring that it remains dependent on them
  • Following decades of consolidated authoritarianism, Sudan has entered a rare period of instability in its balance of power.
  • The US, Europe, and international financial institutions have left Sudan to its own devices, allowing its economy to tank and its political transition to stall. In the interim, the generals have expanded their reach and FFC leaders have returned to Sudan’s traditional elite bargaining, at the expense of institutional reform. Western inaction has also enabled regional actors – chief among them Abu Dhabi and Riyadh – to play a prominent role in Sudan, dragging the country closer to military rule or a civil war.
  • Across the region, Saudi Arabia and the UAE have demonstrated their preference for military governments over civilian-led democracies. Their recent actions in Sudan suggest that they may hope to repeat their success in helping return the military to power in Egypt in 2013. But this would be both cynical and naïve. A strong civilian component in the government is a prerequisite for stability in Sudan. The country’s conflicts are a direct result of state weakness – a weakness that pushed Bashir’s military government to use undisciplined militias to repress citizens, fuelling cycles of instability and the emergence of a fragmented military and security apparatus. In the current political environment, any attempt to formally impose military rule could ignite further instability and even a civil war.
Ed Webb

Egypt's Coming Revolt of the Poor | Foreign Policy - 1 views

  • The bread riots are symptoms of a crisis tracing back to last November, when the International Monetary Fund approved a loan of $12 billion to Sisi’s regime. The loan agreement requires Egypt to fix its chronic budget deficit through substantial cuts in subsidies and other forms of public spending. The agreement also necessitates steps to encourage the private sector to boost job creation and growth.
  • the Egyptian army has used the agreement to punish the lower classes while maximizing its commercial gains. The military establishment, which fully controls the economic reform plan, has selectively implemented the loan’s conditions. While it enthusiastically reduces subsidies to impoverished civilians, it has expanded its domination of many economic sectors and reaped huge profits at the expense of the private sector.
  • generals in uniform manage monopolistic conglomerates of unaudited, untaxed enterprises, such as commercial farms, food packaging mills, construction companies, pharmaceutical plants, gas stations, fisheries, and cement and steel factories
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  • former officers occupy key government positions in charge of running the national economy
  • The IMF loan agreement failed to fully account for the military’s domination of the economy and the state bureaucracy
  • the military positioned itself as the savior of a crisis of its own creation and further squeezed its private sector competitors. Alexandria’s military governor pledged to end the sugar crisis, blaming it on greedy private merchants. Meanwhile, the Defense Ministry’s “al-Salam Company to Sell the Armed Forces’ Products” sold 3,000 tons of affordable sugar in poor neighborhoods of the city. Sugar eventually resurfaced on the market — after the military minister of supply doubled its price.
  • Although seeking to shrink the bureaucracy, the regime enhanced its ability to place loyalists in key positions. One article in the new legislation retained a rule from the Hosni Mubarak era by reserving the authority to appoint officials in leadership positions to the president. Sisi has energetically exploited these powers, placing an increasing number of fellow former officers in top civilian jobs in the government and the public sector as soon as they retire
  • In the past three years, Egypt’s president issued six decisions to raise military pensions by a total of 35 percent. Furthermore, the parliament supported a new fund to provide medical and social services to military judges
  • These cascading crises called for urgent poverty-alleviation efforts. The military stepped in with mega-construction projects that the government’s propaganda machine portrayed as designed to lift up the lower classes — social housing for inhabitants of slums and reclamation of new land for distribution to lower-class youths. Military contractors took charge of executing these over-ambitious projects, while the army’s Department of Morale Affairs made uplifting videos on their progress.
  • although the project was advertised as an initiative to support the rural poor, the reality on the ground was far different. Army soldiers confiscated the desert land of numerous farmers in Qina, a poor province in southern Egypt, which they had reclaimed and cultivated for decades. The army accused the farmers of encroachment on state property and evicted them in order to annex their land to the project. Qina’s governor, a former general, used heavy loaders to demolish farmers’ properties on 100,000 acres. Helpless civilian owners could only send complaints about the governor to Cairo’s General Authority for Agricultural Development Projects, then chaired by yet another fellow former general.
  • Cutting public expenditures on basic goods, for instance, didn’t stop the military from lavish spending on arms procurement. From France alone, it struck deals worth over $2 billion last March. The Defense Ministry didn’t pay for those arms from the accumulated revenue of its commercial activities, but rather took loans from French banks. The military usually insists that its lucrative commercial enterprises are aimed at securing its self-sufficiency in goods and weapons, but in this case the army didn’t pay for its large shipment from its own accounts. Rather, it asked the civilian Finance Ministry to guarantee the large loan and foot the bill if the army defaults
Ed Webb

ANALYSIS: Egypt's military-economic empire - 0 views

  • The roots of the military’s commercial empire go back to the 1980s, when a combination of a peace dividend after Egypt’s 1979 peace treaty with Israel and a fiscal crisis led the country to pare back its defence budget. Defence spending as a proportion of GDP fell from 6.5 percent in 1988 to 1.8 percent in 2012, according to World Bank indicators. The armed forces had to find new sources of revenue.
  • the consensus among those asked by Middle East Eye as to the size of the military-economic complex is that the EAF’s reach extends into virtually every economic sector, from foodstuffs like tomato paste and olive oil, to consumer electronics to real estate, construction, transport and services
  • Businesses controlled by the military are widely dispersed. Some may come under a number of umbrella organisations, including the Arab Organisation for Industrialisation, the National Services Projects Organisation (NSPO) and the Ministry of Military Production. In addition, the EAF holds majority or minority stakes in many other semi-public or private companies, especially in the fields of infrastructure and subcontracting. EAF influence also extends to “sensitive” but nominally civilian infrastructure. Senior positions at a number of airports have for some years been reserved for retired army officers, as a sort of unofficial “pension programme.”
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  • the EAF is able, through the use of land designations and other means, to control much of the public lands (desert, agricultural and urban) that comprise 94 percent of Egypt’s area, through the use of land designations, the ability to auction such lands and to receive compensation from the state treasury when military zones are rezoned to civilian purposes. The army also controls the coastline (officially classed as border territory) and is thus able to profit from tourist developments. As such, the EAF wields enormous influence over the real estate market and the country’s development structure
  • Estimates as to how much of the total economy is controlled by the EAF range from 40 percent, according to telecoms billionaire Naguib Sawiris (in comments to local media last March) to somewhere between 45 percent and 60 percent, according to Transparency International
  • forced labour, in the form of conscripts, is almost certainly used in army-run factories. Quite apart from the ethical ramifications of this, it allows the military to undercut its competitors, since conscripts don’t have to be paid full wages
  • since the military’s budget - and by extension, its economic fiefdom – is kept secret, EAF-controlled businesses can benefit from subsidies that are kept off the books, as well as having more freedom of manoeuvre amid the lack of oversight.  One example was the decision under the Supreme Council of the Armed Forces to slash fuel subsidies for industrialists. Since the military’s budget (and therefore, its energy costs) are off the books, the rising energy prices disproportionately affected EAF competitors, but not the forces themselves
  • military involvement in the political economy generally leads to worse performance. Within the region, the examples of Iran and Algeria point to this, while China has taken steps to reduce its armed forces’ commercial exposure over the past few years precisely for this reason
  • A further effect of the EAF’s economic dominance is a lack of growth opportunities for SMEs, since only favoured insiders can win lucrative contracts and deal with the permit system. In turn, this leads to a large informal economy of insiders, leaving many Egyptians outside, in poverty
  • While patronage is nothing new in Egyptian politics, since President Abdel Fattah el-Sisi came to power the top brass has expanded intra-military patronage to the extent that they are crowding out other economic actors and failing to bring in key constituencies such as opposition groups, the private sector bourgeoisie and the urban poor. The EAF has expanded its reach so fast that now it has to defend its empire against these groups, sowing seeds of further strife in future.
Ed Webb

Scholars, Spies and the Gulf Military Industrial Complex | MERIP - 0 views

  • Until recently, there was little practical knowledge about what it meant for an academic to analyze the military activities of the Gulf states because there wasn’t much to study, other than some symbolic joint training exercises, sociological inquiry about the composition of the region’s armed forces, and limited Emirati participation in non-combat operations in places like Kosovo. The bulk of scholarship examined the Gulf in the context of petrodollar recycling (the exchange of the Gulf’s surplus oil capital for expensive Western military equipment) or the Gulf as the object of military intervention, but never as its agent.
  • it is no coincidence that two decades of research and funding for domestic weapons development in the UAE is now manifested in armed interventions in Yemen, Libya and the horn of Africa
  • The history of the United States and European states undermining regional governments—including its only democratically-elected ones—using covert agents posing as scholars, bureaucrats and businessmen is well-documented. Its legacy is clear in the region’s contemporary politics, where authoritarians and reactionary nationalists frequently paint democratic opposition forces as foreign agents and provocateurs. It’s also visible in the political staying power of religious conservatives, who were actively supported by the US and its allies in order to undermine leftist forces that threatened to nationalize oil fields and expropriate Western corporate property.
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  • Another element of this legacy is the paranoia that makes it difficult for regional governments to distinguish between academic researchers and spies
  • Imagine if Syria had imprisoned a British PhD student and kept them in solitary confinement for seven months with one consular visit—or if Iran covered up the brutal murder of an Italian PhD student by their police forces, as happened in Egypt in 2016. The double standards pertaining to academic freedom and the rule of law in countries formally allied with the United States and Europe and those characterized as rogue actors is so obvious it barely merits pointing out. The Emirati authorities certainly recognize this, and will continue to exploit this double standard so long as it remains intact.
  • Oil money, along with a new generation of rulers eager to use military intervention to demonstrate their power to domestic and foreign audiences, has made the Gulf not just a major weapons customer but an industry partner. The story of the UAE today is no longer Dubai’s position as a global finance hub, but Abu Dhabi’s position as an emerging player in high-tech weapons development.
  • Academic research is not espionage—but many parties (notably US and European governments) are implicated in the process that has allowed them to be conflated
  • Matt’s arrest and detention, therefore, is a clear message from UAE authorities that research into the country’s growing arms industry is off-limits, in much the same way that researchers and activists working on labor rights have found themselves surveilled, intimidated and imprisoned
  • The slow erosion of public funding for universities has bled dry the resources reserved to support PhD students, meanwhile trustees and consultants urge the adoption of for-profit business practices that generate return on investment, including partnering with defense technology firms for research grants.[3] The fact that educational institutions must go begging—hat in hand—to billionaire philanthropists and weapons conglomerates reflects both the growing share of defense industry involvement in industrial and research activities as well as the failure of our political system to levy sufficient taxes on the ultra-rich to directly fund basic investments in public education.
  • what does the weakening of US and European governments vis-à-vis their Gulf counterparts mean for the protection of students and scholars conducting overseas research?
  • Before my research on the Gulf, my focus was on the role of regional militaries (primarily Egypt and Jordan) in their domestic economies. The more I studied these cases the more I realized their military economies are not some peculiarity of third world political development, but a legacy of colonial militarization, the obstacles facing newly-independent states trying to industrialize their economies, and the extraordinary organizational and financial resources that weapons producers dedicate to proliferating their products all over the globe.
  • I do not know of any studies estimating the total number of academics and non-government researchers working on security and military-related issues across the globe, but I expect it is in the tens of thousands at the very least. At my home institution alone—The George Washington University—there are maybe a dozen faculty working on everything from the psychology of drone operators to the role gender plays in government defense contracting—and I’m pretty sure none of these people are spies. This kind of security studies—which examines topics like defense technology, the global arms industry and government contracting—is a growing field, not least due to the proliferation of information about these issues coming from the booming private sector. And as multinational defense firms and their complementary industry partners continue to chase investment shifting from the core capitalist countries to emerging regional powers like the Gulf States these latter sites will become increasingly important targets for such research.
  • Matt’s case should make us question not only the safety of Western researchers and our students but, more importantly, the continued harassment, intimidation and imprisonment of academics and democratic activists across the Middle East.
Ed Webb

Turkey's defense industry sees rise of 'the president's men' - 0 views

  • The authoritarian normalization that continues to mark relations between Turkey’s political and military echelons since the 2016 failed coup is now affecting the policymaking process in the country's defense industry. The industry is the new favorite of President Recep Tayyip Erdogan, as the bruising financial crisis heavily hit his former favorite sector, construction.
  • Four major reasons are behind Erdogan's piqued interest in the defense industry: First, Erdogan's popular support drastically increased after Turkey’s Oct. 9 incursion into Syria, known as Operation Peace Spring. Second, the defense industry is a good tool for producing success stories to divert public attention at a time of economic crisis. Third, success in the defense realm offers political gains in foreign policy. And finally, it creates profitable export opportunities to several countries including Qatar, Pakistan, Ukraine, Uzbekistan and some African nations.
  • In December 2017, Erdogan issued a decree placing TSKGV under his auspices. Since then, however, Erdogan hasn’t quite managed to establish full control over the institution, which mainly remains under the influence of the retired generals.
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  • The third sector — the new rising stars of the defense industry — are led by the president's men. They and their companies are tied to Erdogan: Baykar Makina, owned by the family of Erdogan’s son-in-law, Selcuk Bayraktar; BMC, owned by the Ozturk family and Ethem Sancak, a member of Erdogan's Justice and Development Party (AKP) and its Executive Council; and the Tumosan unit of Albayrak Group.
  • BMC is the leading producer of buses, trucks, rail systems, Kirpi armored vehicles and Amazon mine-resistant ambush protected (MRAP) vehicles. The ambitious joint venture aspires to become Turkey’s monopoly over diesel engine production for land vehicles and jet engines. Sancak holds 25% of the venture's shares, the Ozturks hold 25.1%, and the remaining 49.9% is owned by the Qatar Armed Forces Industry Committee.
  • In 2018, BMC became Turkey's first private defense industry company to reach the Defense News “Top 100 List,” ranking No. 85, with $554.18 million in defense revenues.
  • In early 2019, Erdogan offered generous incentives to BMC, such as the opportunity to lease Turkey’s largest tank maintenance factory to produce the indigenous Altay main battle tank under a 25-year contract for only $50 million. This transfer of a tank factory in Sakarya province to BMC is still highly controversial in Turkey, with the main opposition party criticizing it at nationwide rallies because of transparency and accountability issues. Also, factory workers organized several protests against the decision.
  • a big cooperative deal in the defense industry helps strengthen Qatar’s ties with Turkey, guarantees Turkey's continued military-political shield against the Saudi-led bloc and blockade, and helps Doha diversify its defense sources.
  • BMC wants to penetrate jet engine production as well. After securing Erdogan's political backing, BMC’s TRMotor went to a joint venture with TAI to develop the jet engine for Turkey’s indigenous TFX aircraft project with the help of the UK’s Rolls-Royce. In March, however, Rolls-Royce​ announced it was withdrawing from TRMotor because of an irreconcilable difference over intellectual property caused by Qatar’s involvement with BMC.
  • BMC is trying to establish a monopoly in military diesel and jet engines, and also seeks to monopolize the raw material production field of boron mining it recently entered. 
  • Joint ventures are having a rough time. TSKGV, now under the jurisdiction of the presidential palace, is struggling to evade Erdogan’s attempts to take full charge. Meanwhile, Erdogan's favorites are rising quickly to the top.
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