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Ed Webb

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

  • the elections have afforded the regime room to breathe
  • For the moment, the state seems confident that it commands the loyalty of the silent majority. For years, polls have found that most Jordanians are politically conservative, holding positive impressions of the king and royal family and darker views of political parties -- including the Islamists. Jordan has long been regarded as an oasis of stability compared to its neighbors who have faced invasion, foreign occupation and insurrection. Polls and interviews indicate that Jordanians put a high premium on a sense of security, the maintenance of which is of course a mainstay of regime rhetoric.
  • The opposition, on the other hand, draws its strength primarily from concerns about the economy and complaints about corruption in the cabinet and Parliament. Many in the opposition also note the state’s well-documented history of using “political reform” as a sop to critics. [3] In tough times, the regime pledges to open up the political system, but then offers changes that do little to alter the established power structure.
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  • holding an election that is pronounced clean and successful may be of less value to the state than is now apparent. As the year progresses, the public is likely to evaluate the new parliament and government by their ability to address popular concerns
  • High turnout and good reviews of election day are the foundations of the state’s claim to have a new mandate. But election monitors in Jordan have made the same point time and time again: An election is much more than the casting of ballots, and a successful poll does not equate to the advent of democracy.
  • monitors were also unanimous in their assessment that the system underpinning the vote falls considerably short of ideal. Their criticism centers on the distorted representation inherent in the election law and the political culture that gerrymandering promotes. Jordan’s voting system boosts the fortunes of candidates whose support base lies in large tribes or localities, while handicapping political parties and unaffiliated candidates who have national agendas. In Jordan’s last five parliamentary elections, most of the seats have gone to such independent or “tribal” candidates. Once elected, the MPs have little ability to shape national policy in any event, since the king appoints all other branches of government.
  • The incentives created are perverse. Voters may feel pushed to back the candidate who returns home bearing spoils from the treasury, rather than the one who represents their vision for the nation. Indeed, deputies in past assemblies have been lambasted for passing out rewards to supporters while ignoring national issues -- one voter, on election day, derided previous parliaments as “service departments.” Polls have found that large portions of the public see parliamentarians as highly corrupt. It is easy to see how this system becomes self-reinforcing. Voters feel that their vote means little on the national stage, while candidates for office seek to become local patrons while feathering their own nests. The result can be vote buying and coercive campaigning.
  • the “tribal” bias of the election system boosts turnout, since the groups that benefit directly from the parliamentary spoils system show up to keep the spoils coming
  • ambient mistrust
  • According to a July 2012 poll by the International Republican Institute, more Jordanians think the country is going in the wrong direction than the right one and many feel deep discontent with the weak economy and perceived government corruption. The same poll found Jordanians taking a dim view of politicians in general, and parliamentarians in particular, who despite being elected appear less popular than royally appointed officials. And in a September 2012 CSS survey, a big portion of the public said the state's reforms had been insufficient -- though large majorities still said it was better to change the system through political action than through street protest.
  • There are indications that the new parliament is more representative -- or at least more diverse -- than the old one. Candidates from al-Wasat al-Islami, a centrist Islamist party, came away with 16 seats, a substantial increase in their representation. Leftists also picked up around a dozen seats (depending on who is counting). Whether either of these groups will be credible to the protesters in the streets is an open question: In the past, many leftist and Islamist MPs have been characterized as “safe,” regime-aligned candidates rather than a genuine opposition. Palestinian Jordanians likewise seem to have gained ground, now holding roughly 35 seats as opposed to 20 or so in the last parliament. Women’s representation also increased slightly, with women taking two national list seats and two district seats, in addition to 15 seats from the 10 percent quota they are allotted under the election law.
  • If Parliament is unable to make serious progress toward improving the economy, an item which usually tops the list of the public’s grievances, that will also have consequences. The first challenge the new deputies will face, the yearly budget, will be doubly critical, establishing both the MPs’ economic credentials and their ability to have a serious debate
  • What the state has won is time, which it may use to carry out a reform program, to appease its core constituents or to do a bit of both. In the past, Jordan’s electoral exercises have generally been preludes to consolidations of regime power. But history is not destiny. The state may travel down the path of reform it has laid out, toward parliamentary government and constitutional monarchy, even at the cost of upsetting its traditional clients. Or it may attempt to delay reform again, using the same bait-and-switch it has employed for decades
  • The unfolding disaster in neighboring Syria will likely keep security high on the local agenda; on the other hand, the state faces another moment of potential crisis, as sometime early in 2013, probably April, conditions of Jordan's IMF loan agreements will require the state to engage in another round of subsidy removal like the one that triggered the November 2012 unrest
Ed Webb

'We Misled You': How the Saudis Are Coming Clean on Funding Terrorism - POLITICO Magazine - 0 views

  • one top Saudi official admitted to me, “We misled you.” He explained that Saudi support for Islamic extremism started in the early 1960s as a counter to Nasserism—the socialist political ideology that came out of the thinking of Egypt’s Gamal Abdel Nasser—which threatened Saudi Arabia and led to war between the two countries along the Yemen border. This tactic allowed them to successfully contain Nasserism, and the Saudis concluded that Islamism could be a powerful tool with broader utility.
  • their support for extremism was a way of resisting the Soviet Union, often in cooperation with the United States, in places like Afghanistan in the 1980s
  • Later it was deployed against Iranian-supported Shiite movements in the geopolitical competition between the two countries.
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  • “We did not own up to it after 9/11 because we feared you would abandon or treat us as the enemy,” the Saudi senior official conceded. “And we were in denial.”
  • as the Saudis described it to me, this new approach to grappling with their past is part of the leadership’s effort to make a new future for their country, including a broad-based economic reform program
  • The new leadership, like their predecessors, blames Iran for regional instability and the many conflicts going on.
  • it is an open question as to whether the Saudi people have been sufficiently prepared at all relevant levels in terms of education and skills to compete in the world economy, as they will need to do in a modernized economy. If not, social tensions and unrest may arise among those who are not prepared to compete.
  • For many years, I was accustomed to Saudi officials being vague and ambiguous. Now, our interlocutors were straightforward and business-like in discussing their past and their future plans. In past decades, my impression had been that the Saudis did not work hard. Now a team of highly educated, young ministers works 16- to 18-hour days on refining and implementing a plan to transform the country. The plan is the brainchild of Mohammad bin Salman and focuses both on domestic and regional fronts. Salman and his ministers exude commitment and energy.
  • Riyadh views modernization as the vehicle through which the Saudi state, at long last, can confront and defeat extremism, foster a dynamic private sector and master the looming economic challenges
  • Their Vision 2030 and National Transformation Program 2020 focus on shrinking the country's enormous bureaucracy, reducing and ultimately removing subsidies, expanding the private sector including attracting investment from abroad by becoming more transparent and accountable and by removing red tape.
  • Israel and Saudi Arabia share a similar threat perception regarding Iran and ISIL, and that old hostility need not preclude greater cooperation between the two states going forward
  • On some levels, the prospects for planned reforms are more promising in Saudi Arabia than they are in most other parts of the Middle East. Saudi Arabia has oil reserves and is not roiled in conflict: two important advantages
  • if the reform effort does work, Saudi Arabia is poised to become more powerful than before, enabling it to play a bigger role in regional dynamics including in balancing Iran and perhaps negotiating about ending the civil wars in the region. A true change in Saudi Arabia’s policy of supporting Islamist extremists would be a turning point in the effort to defeat them
Ed Webb

Egypt increases food prices for second time in three months | Middle East Eye - 0 views

  • Egypt has increased the prices of subsidised sugar and cooking oil for the second time in three months, amid rising inflation and a struggling economy.The decision, announced last week, increased the price of subsidised sugar by 14.3 percent – from seven to eight Egyptian pounds a kilo (about 40 cents), and increased the price of subsidised oil by 20 percent, from 10 to 12 Egyptian pounds.Last November, Egypt suffered a sugar crisis that increased tensions in the country.Egypt imports about one million tonnes of sugar annually, but an acute shortage of dollars has cut the imports by private traders, leaving the market short as the government scrambles to fill the gap
  • the government supports about 70 of its 90 million people through more than 20 million ration cards that give recipients access to subsidised goods
  • annual urban consumer price inflation had jumped for the second month since the Egyptian pound was floated last year to reach 23.3 percent in December from 19.4 percent in November
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  • “There are many other alternatives, including tax dispute settlements with business owners, the settlement of tax evasion cases, as well as stopping the corruption in various state institutions, saving the resources of officials’ extravagance, and finding economic development alternatives in various economic sectors,”
Ed Webb

A changing of the guard in Algiers - Al Jazeera English - 0 views

  • Mediene and other generals were behind the cancellation of elections and the military coup of 1992. His replacement fits into a large-scale restructuring of the DRS, aiming to strip away its powers over domestic politics and foreign policy, and refocus it on espionage and counterespionage.
  • Many Algerians fear, however, that the fall in oil prices means that their country is barrelling straight into an economic crisis like that of the late 1980s. Officials estimate that the country can keep subsidies and social spending at current levels for at most another two years, risking riots and intense social unrest
  • New security leaders are not only younger; they are also being promoted on the basis of expertise in fighting violent extremism
Ed Webb

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

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

Turkey: Is Erdogan's "Magic Spell" Beginning to Pale? - 0 views

  • Research conducted in March by 50 teachers from the Imam Hatip schools revealed that students are moving away from Islam
  • Another cause of upset on the part of many religious Muslims is the content of the Diyanet-prepared Friday sermons, which frequently advocates violent jihad
  • great disappointment in the Erdogan government's version of Islam, especially when accompanied by corrupt politics and a deteriorating justice system
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  • Turkish Islamists are no longer politically uniform -- especially women and young people, whose waning support for the AKP was apparent during the April 2017 presidential referendum. To attract both sectors, Erdogan promised to lower the age at which a person can run for parliament and to grant lavish subsidies to housewives. These vows, however, appear to be insufficient to keep the people under his "spell."
  • Erdogan has long promised his supporters that he would cultivate a "pious generation", and invested heavily in religious Imam Hatip schools. His younger son, Bilal, even referred to the students attending these schools as "Erdogan's generation." Yet, it turns out that the children enrolled in these institutions have been failing miserably on all standard academic tests. Research conducted in March by 50 teachers from the Imam Hatip schools revealed that students are moving away from Islam in favor of a more general deism. The report generated a heated debate. While some secular groups doubt its findings, many feel vindicated by them.
  • Children from AKP-loyal families, as well as intellectuals and activists, are apparently questioning the touted morals of their elders. In a recent op-ed, hijabi-feminist Berrin Sonmez attacked what she called the "hypocritical piety" of Erdogan and the AKP elites. Sonmez and others have been criticizing Erdogan for his one-man rule, claiming that it runs counter to Islamic values and culture
  • As of 2017, there were 90,000 mosques in Turkey, led by government-employed imams. These mosques have experienced a notable decrease in attendance, particularly among young and middle-aged men. Some of those who continue to frequent the mosques are doing so less for religious reasons than for networking and job-seeking. In addition, more and more mosques have begun requesting hefty contributions from their congregants, while imams are coaxed by the state to collect donations after each sermon. One young imam who publicly complained about this practice -- he said that mosques "no longer serve people, but rather serve as a source of income for certain people" -- was promptly removed from his position.
  • Religious orders not associated with the Diyanet are beginning to attract more practitioners. While Diyanet and government officials make headlines for their lavish spending and luxurious lifestyles, outside religious orders are presenting a more righteous way of life
  • As Diyanet mosques function as pseudo-AKP headquarters across Turkey and abroad, the alternative religious orders pose a significant threat to Erdogan's standing and power
Ed Webb

Tunisia - between instability and renewal | European Council on Foreign Relations - 0 views

  • Even though the 2011 revolution was motivated in large part by socio-economic concerns, the governments that have held office since then have been unable to improve the situation. Growth has remained low, and unemployment is high: 15 percent of the population is without work, and the rate for those with a university degree is over 30 percent. Inequality between the more prosperous coastal region and the deprived interior of the country remains striking. Around half of all workers are employed in the informal economy. Many young Tunisians lack any prospect of being able to afford a home or a car, or of being secure enough to start a family.
  • Faced with increasing debt and deficit levels and shrinking foreign currency reserves, Tunisia agreed a loan of $2.9 billion with the International Monetary Fund in 2016. The IMF called on Tunisia to cut public spending, overhaul its collection of taxes to raise government revenue, and allow the currency to depreciate. The IMF argues that it has been fairly flexible so far in enforcing public spending cuts, but it is now stepping up its pressure on the Tunisian authorities.
  • Wages in the public sector account for 15 percent of GDP (up from 10 percent in 2010), so it is hardly surprising that the government is now trying to limit spending in this area. Yet it is doing this at a time when inflation (worsened by the deflation of the Tunisian dinar that the IMF has promoted) and subsidy cuts have already had a severe impact on people’s purchasing power.
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  • It is an anomaly of the Tunisian political scene that the UGTT’s anti-austerity position has little representation among elected politicians: the largest political groups (the Islamist Ennahda party and various offshoots of the secular-modernist Nidaa Tounes party) have backed the IMF agreement
  • unemployment and the proliferation of grey-sector jobs are linked to structural biases in the economy that systematically favour a small group of politically connected businesses. Measures that might address this problem include increasing access to credit for would-be entrepreneurs, changing regulations and practices within the public and banking sectors that are tilted to a narrow elite, and reducing corruption. According to Tunisians, corruption has not been reduced but only “democratised” since the revolution. Investment in infrastructure serving disadvantaged parts of the country could also help spur more inclusive growth
  • Since the revolution, the overarching priority of political life in Tunisia has been to seek enough stability to preserve and complete the political transition. Much has been achieved, though a few important steps (notably the establishment of a Constitutional Court) remain unfulfilled. But Tunisia has now reached a point where the greatest threat to stability is no longer political rivalries around religious identity but unmet social and economic aspirations. Until now, the country’s political parties have not organised themselves to offer distinctive and coherent visions of how Tunisia’s socio-economic development can be improved, and they are paying the price in public alienation from the entire political system
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

Sisi's final act: Six years on, and Egypt remains unbowed | Middle East Eye - 0 views

  • For three weeks Sisi’s image has been trashed by an insider turned whistleblower whose videos from self-exile in Spain have gripped and paralysed Egypt in turn. 
  • Mohamed Ali is, by his own admission, no hero. One of only 10 contractors the army uses, he is corrupt. He also only left Egypt with his family and fortune because his bills had not been paid. Ali is no human rights campaigner. 
  • Egypt’s new folk hero likes fast cars, acting, film producing, real estate developing.
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  • when he talks he talks the language of the street and the street listens to him. That's Sisi's problem.  
  • Most Egyptians have seen their real incomes fall, while Egypt under its IMF-backed austerity programme is racking up huge foreign debts. It was $43bn during Morsi’s presidency. It is $106bn now. Seventy per cent of taxes now goes into paying these debts off. Internal debt is over 5 trillion Egyptian pounds ($306bn).
  • Ali listed them: a luxury house in Hilmiya ($6m), a presidential residence in Alexandria ($15m), a palace in the new administrative capital, and another one in the new Alamein city west of Alexandria.
  • A report published by the World Bank in April calculated that "some 60 percent of Egypt’s population is either poor or vulnerable". 
  • Sisi  was a "failed man", a "disgrace", a "midget" who uses make up and hitches his trousers up too high, Ali told Egypt. Sisi was a con man who lectured you on the need to tighten your belt while building palaces for his wife Intissar.
  • "Now you say we are very poor, we must be hungry. Do you get hungry? You spend billions that are spilt on the ground. Your men squander millions. I am not telling a secret. You are a bunch of thieves."
  • Every Egyptian remembers the lectures Sisi gave them on the need to tighten their belts. When the IMF forced the state to reduce subsidies, Sisi’s response was: "I know that the Egyptian people can endure more... We must do it. And you’ll have to pay; you’ll have to pay," Sisi said in one unscripted rant a year into his presidency.
  • Ali’s YouTube channel has done more in three weeks to destroy Sisi’s image than the Brotherhood, liberals and leftists, now all crushed as active political forces in Egypt, have done in six years of political protest. 
  • To their credit the opposition did not crumble, paying for their stand with their lives and their freedom. To their shame the Egyptian people did not listen.
  • Sisi thinks he can ride this out, as he has done challenges in the past. Hundreds of protesters have been arrested since last Friday.
  • The initial demonstration in Tahrir Square in January 2011 was smaller than the ones that broke out in Cairo, Suez and Alexandria last Friday. They called for reform, not the overthrow of Hosni Mubarak. Last Friday, Sisi’s portrait was torn down. “Say it, don’t be afraid, Sisi has to leave!” they shouted on day one of this fresh revolt. 
  • the "opposition" is everybody - ordinary Egyptians, disaffected junior ranks in the army, Mubarak era businessmen. This is a wide coalition of forces. Once again Egypt has been reunited by a tyrant
  • unlike 2013, Sisi’s bankers  - Saudi Arabia and the UAE - have run out of cash for Egypt. Today each has its own problems and foreign interventions which are all turning sour - Yemen and Libya.
  • The steam is running out of the counter-revolution.
  • popular protest is re-emerging as a driver for change across the region. We have seen it topple dictators in Sudan and Algeria. Both have learned the lessons of failed coups in the past and have so far managed the transition without surrendering the fruits of revolution to the army. This, too, has an effect on events in Egypt.
Ed Webb

Transforming Post-Revolution Cairo | Newlines Magazine - 0 views

  • The occupation of Tahrir Square, which continued from that night until Egypt’s long-ruling president, Hosni Mubarak, stepped down on February. 11, 2011, was an exercise, too, in overcoming decades of public policy and urban planning that had sought to render urban open spaces inaccessible or even dangerous to would-be protestors.
  • A decade after the 2011 revolution, Egypt’s sprawling capital city looks a lot different. Tahrir Square has been adorned with Pharaonic monuments and staffed with police. Domineering concrete barriers and towering metal gates topped with spikes and painted in national colors now line the surrounding streets. Rabaa Al Adawiya Square, where hundreds of protesters were killed in August 2013, has been made inaccessible. A large monument meant to express “the unity of the army, the police, and the people,” according to Brig. Tarek Mohamed Sayed, was erected in the square in September 2013, and an overpass — one of the dozens built in the city in recent years — now crosses over it. Under Al Sisi, the Egyptian government has been transferring the nation’s capital out of Cairo altogether, building lavish palaces and administrative compounds in a far-off, sparsely populated New Administrative Capital in the desert.
  • Construction projects have also resulted in the destruction of hundreds of thousands of square meters of green space — 390,000 square meters (429,000 square yards) alone, in the affluent neighborhood of Heliopolis in eastern Cairo, according to the Heliopolis Heritage Initiative, where hundreds of century-old trees have been uprooted to widen arterial avenues like Abou Bakr Al Seddik and Al Nozha, which cut through the heart of the neighborhood. There is no place in today’s Egypt for broad-leaved trees that hinder surveillance nor shaded spaces that foster assembly.
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  • In neighborhoods like this one, with winding roads and haphazard rows of buildings, the elevated highway provides a watchtower for the state.
  • Rather than connecting informal districts to utilities and providing funds to upgrade housing, the government prefers to relocate residents to satellite cities on the outskirts. As residents of these areas grow poorer and more desperate under crushing austerity measures, the government would rather see them housed in isolated contingents in the desert, thus eliminating the prospect that they could participate in a mass mobilization, as happened a decade ago.
  • Building or repairing roads offers a relatively quick and easy way for a government to demonstrate progress, something the young regime would have been eager to do to establish some semblance of legitimacy.
  • the megaprojects. Work began on a $4.2 billion expansion of the Suez Canal in August 2014. The crews responsible for the canal expansion had not yet set down their shovels when construction began on the world’s widest cable-stayed bridge, which now stretches across the Nile in central Cairo. Its six lanes in each direction are inaccessible to most commuters who cannot afford to pay the 20 Egyptian pound ($1.27) toll. But those who tuned in to public television on New Year’s Eve were treated to a spectacle of fireworks choreographed to nationalist music above its towering pylons and a floating portrait of the president.
  • Located some 45 kilometers (28 miles) east of Cairo, the New Administrative Capital is Al Sisi’s crown jewel. Contractors began work on the project in 2015. When finished, the luxe megacity will be almost as large as Singapore and boast a series of artificial lakes, an amusement park four times the size of Disneyland, and the tallest skyscraper on the continent. But the first phase alone, slated for completion in 2022 (although engineers working on the project say that construction is far behind schedule), will cost $45 billion — an unfathomable sum to anyone, perhaps, but more dissonant still for the more than 60 million Egyptians who depend on shrinking subsidies for their daily bread.
  • Television commercials starring Egyptian celebrities and billboards stationed along every road in the nation depict imagined lives in lush, gated communities backdropped by gleaming glass towers and bluer skies than dust-choked Cairo has ever seen. They are part of what architect Adham Selim describes as a practice of “ruling through drawing,” in which the government produces images of the future as a means of exerting greater control over the present and the past. “The continuous act of drawing the world-to-be is the way in which authority sustains a stable worldview, in which it places itself as an external to the world it intends to change, and rule,”
  • Al Sisi longs to be remembered as the ruler who snatched Egypt from the mouth of the Muslim Brotherhood and built a new Cairo in its wake. To this end, he is curating an archive that will be taught in the future.
  • Ismail borrowed so excessively from foreign lenders to realize his vision that when a collapse in the price of cotton left Egypt unable to repay its debts, European powers had him deposed. Then Britain invaded Egypt to protect its interests, starting a decadeslong occupation.
  • Successive Egyptian administrations have tried to decentralize Cairo, building generation after generation of satellite cities meant to entice upper- and middle-class Cairenes out of the urban core. The cities 10th of Ramadan and 6th of October, located east and west of Cairo, respectively, built under Sadat, and Madinaty and New Cairo (not to be confused with the New Administrative Capital), scattered to the east and started under Mubarak, sit half-empty, having never reached their target populations — or anything close.
  • Yahia Shawkat, author of “Egypt’s Housing Crisis: The Shaping of Urban Space,” estimates that 33,000 families were victims of forced eviction under Mubarak between 1997 and 2012. Under Al Sisi, the Ministry of Housing now boasts that it has relocated 60,000 families between 2018 and 2020 alone
  • When the government wanted to demolish informal housing on Warraq Island, located in the center of the Nile river in Cairo and home to 90,000 people, it sent security forces with bulldozers in the predawn hours of July 16, 2017, while most residents were still asleep. Heba Nagaa Otmorsi, a resident of the island, told The Guardian that her house had been demolished while she was at work. “It was our neighbors who rescued the children,” she said. Clashes on the island left one resident dead and dozens injured.
  • “People living in these semi-autonomous neighborhoods are always blamed for some sort of social urban ill,”
  • In January 2021, several high-level government officials laid the cornerstone of the Cairo Eye in Zamalek, one of Cairo’s wealthiest neighborhoods. One-third of Al Masallah Garden, a 15,000-square-meter (16,500-square-yard) historic park, will be destroyed to make way for the 120-meter-tall (132-yards) observation wheel, surrounded by shops, entertainment, restaurants, and a two-story parking garage.
  • Recent projects have disrupted Khedival Cairo and Mamluk-era tombs in the City of the Dead. A recent announcement that graves around Imam Al Shafi’i Mosque will be moved to make way for a bridge project has left Hussein Omar heartbroken at the prospect of losing his family mausoleum, where generations have been laid to rest since his great-great-grandfather bought the plot in 1924. It feels like a “concerted assault on the fundamental relationship that Egyptians have with their past,” he says. A plot that has belonged to his maternal grandmother’s family since the 19th century is even nearer to the site of the scheduled bridge project. There is no way of knowing if either plot will survive the new construction.
Ed Webb

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

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

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

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

Demonstrations Spike in Tunisia Despite COVID-19 Pandemic | ACLED - 0 views

  • In recent years, Tunisia has consistently registered some of the highest demonstration levels in Africa. While the coronavirus pandemic initially led to a drop in the number of demonstrations, ACLED records a significant increase in peaceful protest events across the country beginning in April 2020 — hitting their highest levels since early April 2019 when nationwide demonstrations against a fuel price hike spiked
  • Most of the recent demonstrations revolve around socioeconomic issues and the government’s failure to address the inequalities that led to the 2011 Tunisian revolution
  • The spread of the coronavirus to Tunisia and the government’s total lockdown, including the closure of borders and the imposition of a nationwide curfew, brought the country’s economy to a near halt, particularly impacting the informal sector, tourism, and the industrial sector
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  • The country’s low-income communities have thus borne the brunt of the pandemic’s economic fallout
  • Unemployment remains the main impetus behind the majority of demonstrations
  • In addition to these existing labor movements, a new movement emerged in January 2020 called the National Coordination of Recruitment Is My Right. The movement includes unemployed youth demanding the adoption of a basic law to provide urgent employment opportunities for those who have been without work for more than 10 years
  • different labor groups have also taken to the streets to demand the payment of their salaries without any deductions during the lockdown and to ask for government financial assistance as well as public subsidies to deal with the economic impact of the health crisis
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.
  • Around a third of exports from Jordan and Lebanon go to oil-rich states, which send back wealthy tourists. Kuwaitis, Saudis and Emiratis account for about a third of tourist spending in Lebanon.
  • Egypt exports little oil, but over 2.5m of its citizens work in oil-rich countries. Remittances are worth 9% of its GDP. As oil revenues fall and some of those jobs disappear, Egypt will suffer, too. The same is true of Jordan, Lebanon and the Palestinian territories, which have long relied on the Gulf to absorb their jobless masses.
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  • in May the Algerian government said it would cut its budget by half. Things are no better in Iraq, a big oil exporter, which is nearly broke. Even stable producers such as Oman and Kuwait are living beyond their means. Saudi Arabia, the world’s biggest oil exporter, has been burning through its cash reserves for months. Money that was meant to smooth the kingdom’s transition to a less oily economy is now propping up the old petrostate.
  • The bad news is that these states are moving too slowly. Some have cut their bloated bureaucracies and pared back subsidies. Saudi Arabia recently tripled its value-added tax. But the public sector is still the region’s main employer. Despite talk of diversification, the Gulf’s economies continue to revolve around oil
  • these reforms will be painful and are harder in bad times
  • The plans put forward by leaders like Saudi Arabia’s Muhammad bin Salman are tearing up the social contract. Saudis wonder why he doesn’t sell his $550m yacht instead of raising taxes. Anger is growing across the region. For the past century Arabs have been ruled by abusive leaders who hoarded their country’s wealth. Now these leaders are asking their people to make sacrifices and giving them little say in the matter. That is a recipe for continuing unrest and brutal suppression. If Arab rulers want citizens to pay their way, they will need to start earning their consent.
Ed Webb

The Oil for Security Myth and Middle East Insecurity - MERIP - 0 views

  • Guided by the twin logics of energy security and energy independence, American actions and alliances in region became a self-fulfilling prophecy. The very thing the United States sought to eliminate in the Middle East—insecurity—became a major consequence of America’s growing and increasingly militarized entanglement.
  • In effect, the essential relationship of dependency between the United States and the Middle East has never been “oil for security.” It has in fact been oil for insecurity, a dynamic in which war, militarization and autocracy in the region have been entangled with the economic dominance of North Atlantic oil companies, US hegemony and discourses of energy security.
  • Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed
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  • Although the destabilizing contradictions of this dependency have now undercut both American hegemony and the power of the North Atlantic hydrocarbon industries, the oil-for-insecurity entanglement has nonetheless created dangerously strong incentives for more conflict ahead.
  • A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both
  • When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.
  • The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible
  • fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008
  • In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.
  • What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]
  • In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.
  • For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.
  • The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.
  • For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide
  • cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.
  • the myth of authoritarian stability
  • A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region
  • In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices
  • From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.
  • profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.
  • While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.
Ed Webb

The battle for Tunisia's democracy - European Council on Foreign Relations - 0 views

  • Tunisia faces an increasingly urgent economic crisis. After years of low growth and high unemployment, many Tunisians are struggling to afford basic necessities. These difficulties only grew after Russia’s war on Ukraine raised grain and oil prices; as Ramadan begins, Tunisia is experiencing shortages of bread and other essential foods. Tunisia’s debt to GDP ratio is projected to reach 84 per cent this year. The government is often late in paying public sector salaries. And Fitch’s recently downgraded Tunisia’s credit rating to CCC. Many economists believe the country will be forced to default on its debts if it does not quickly agree on a deal with the International Monetary Fund (IMF). These economic problems leave Saied with an unpalatable choice between an unpopular agreement with the IMF and a financial meltdown.
  • a deal would likely require measures such as subsidy cuts and a public sector wage freeze. The powerful Tunisian General Labour Union (UGTT) has already come out against these proposed reforms and is threatening to hold a general strike. The UGTT is also calling for a national dialogue on Tunisia’s political direction, which it would supervise. (The union, along with other civil society groups, led a national dialogue to avert a political crisis in 2013.)
  • increasing centralisation of power and refusal to hold talks with political parties or civil society organisations have driven some groups that had once reserved judgement on his moves, such as the UGTT, into opposition
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  • Saied shows no sign of willingness to compromise with his political opponents. Instead, relying on the support of the Ministry of Interior and its security forces, he seems to be adopting a repressive response
  • The EU and its member states can encourage Tunisia to return to its democratic path by making clear that they will only endorse a dialogue as legitimate if all mainstream political forces participate in it, and that the country needs to hold an election before revising the constitution. (The constitution Tunisia adopted in 2014 requires a two-thirds parliamentary majority to endorse any proposed amendments.) Europeans should also make clear that they would see attempts to prosecute MPs for conspiring against state security as a serious violation of the rule of law.
  • So far, EU officials have been reluctant to condition cooperation with Tunisia on a return to democratic standards. The European Commission recently announced that it would loan the Tunisian government €450 million to support its budget. A loss of European financial assistance would worsen Tunisians’ living conditions, which are already difficult.
Ed Webb

Will MBS Bankrupt Saudi Arabia? - Middle East News - Haaretz.com - 0 views

  • five years in and with little progress in sight, cracks are appearing in Crown Prince Mohammed bin Salman’s flagship project to diversify the oil-driven Saudi economy. Neom’s former employees raised concerns that bringing the giga-project out of the realm of science fiction might never happen. Architecture experts have called it “insane.” Sources inside the royal circle no longer shy away from lashing out at MBS’ ever-changing ideas, “mood swings,” “terrible tempers” and fear-based leadership.
  • “The general concern is this will turn out like for the Shah of Iran, developing schemes that become incredibly detached from reality and no one will tell him to refocus,” a source familiar with the dynamics of Saudi Arabia’s royal family told me, on condition of anonymity
  • the risk of the Crown Prince ending up in an echo chamber cemented by yes-men. Power consolidation under MBS is unprecedented in Saudi Arabia’s recent history, moving the kingdom’s system from “one of consensus within the family to one-man rule.”
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  • Leaks reveal insiders’ growing uneasiness, which points to the elephant-in-the-room question: Will MBS’ grandiose venture bankrupt the kingdom?
  • Saudi private investors will also be encouraged to pitch in during a potential public listing of Neom in 2024. That raises questions about how consensual this private investment will be. Indeed, Saudi Arabia reportedly “bullied” several of the kingdom’s wealthiest families to become cornerstone investors out of “patriotic duty” in the IPO of Saudi energy firm Aramco in 2019.
  • a large chunk of Saudi money carefully set aside for decades to fund the transition to a post-oil era will pay for Neom's astronomical price tag. A bet on an unproven vision
  • “Infrastructure spending is like doing lines of cocaine; you have to do bigger and bigger and bigger lines just to feel high,”
  • Neom’s initial burst of economic activity, if unsustainable at a similar pace, would simply be "stealing" future economic benefits to create an illusion of growth right now
  • perhaps the motive is not sustainable growth at all, but creating what Pettis calls a "pyramid effect." This would be an attempt to copy monarchs of ancient Egypt who redistributed wealth to the population through jobs – paid laborers built Egyptian pyramids, not slaves. Although Saudi Arabia’s oil wealth is already redistributed to ordinary Saudis through public-sector jobs and subsidies, a large tranche is retained and stored in its sovereign wealth funds and U.S. Treasuries. In theory, flushing Saudi citizens with cash would stimulate the local non-oil economy. But in practice, the pyramid effect is likely to first and foremost cause economic leakages, as the kingdom imports most of what it consumes locally, including labor, despite the “Saudification” of the labor market being one of Vision 2030’s key priorities. Migrant workers account for about 77 percent of private sector jobs. At Neom, highly paid Western consultants are toiling to match MBS’ demands, and Asian low-income workers are building it, remitting Saudi money home.
  • Riyadh sweetened the project’s launch party with a flurry of social reforms, such as lifting the ban on women driving. (Saudi Arabia was the last country in the world to lift this kind of ban, and it didn’t do so as a principled stand on behalf of women’s rights.) The idea was not only creating a buzz among investors and the global public, but whipping up aspirational momentum among Saudis.
  • 60 skyscrapers that were built in Riyadh’s financial center are still standing largely empty.
  • MBS, high on his visionary self-branding and his concentration of power, may have to pay the costs of bankruptcy – whether by admitting full responsibility or via a renewed deployment of decidedly imperious and despotic tactics to crush dissent. The latter path is, of course, what the late Shah of Iran chose, with notorious results.
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