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Ed Webb

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

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

How Western Urban Planning Fueled War in the Middle East | The American Conservative - 0 views

  • Architecture has been part of that work. The unspoken assumption was that houses should fit together along alleys and streets, that no private house should be so ostentatious as to stand higher than the mosque or the church, and that the city should be a compact and unified place, built with local materials according to a shared vocabulary of forms. Thick walls of stone created interiors that would be cool in summer and warm in winter with the minimum use of energy. The souk was conceived as a public place, embellished appropriately so as to represent the heart of the city, the place where the free trade of goods expressed the free mingling of the communities.
  • The old souk of Aleppo, tragically destroyed in the current Syrian conflict, was a perfect example of this, the delicate and life-affirming center of a city that has been in continuous habitation for a longer time than any other. That city rose to eminence as the final station on the Silk Road, the place where treasures were unloaded from the backs of camels coming from Mesopotamia onto the carts that would take them to the Mediterranean ports. The fate of this city, which has, in the 21st century, faced destruction for the first time in 5,000 years, is a fitting emblem of what is happening to the Middle East today.
  • it is not only civil conflict that has threatened the ancient cities of the Middle East. Long before the current crisis there arrived new ways of building, which showed scant respect for the old experience of settlement and disregarded the unwritten law of the Arab city that no building should reach higher than the mosque, it being the first need of the visitor to spy out the minaret, and so to find the place of prayer. These new ways of building came, like so much else, from the West, first through colonial administration and then through foreign “advisors,” often taking advantage of the insecure land-law of the region, introduced by the Ottoman land code of 1858. By the time France had been granted the mandate to govern Syria in 1923, modernist building types, the mania for roads and motorized “circulation,” the idea that cities should be disaggregated into “zones”—residential, commercial, industrial, and so on—and the obsession with hygiene had all made their destructive mark on the urban fabric
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  • new ways of building came, like so much else, from the West, first through colonial administration and then through foreign “advisors,” often taking advantage of the insecure land-law of the region, introduced by the Ottoman land code of 1858. By the time France had been granted the mandate to govern Syria in 1923, modernist building types, the mania for roads and motorized “circulation,” the idea that cities should be disaggregated into “zones”—residential, commercial, industrial, and so on—and the obsession with hygiene had all made their destructive mark on the urban fabric
  • As in Russia and Germany, the arrival of the totalitarian state was prefaced by the arrival of totalitarian architecture
  • a modern city, another piece of anywhere
  • Architectural modernism fed into the Arab inferiority complex: concrete high rises, plazas, geometrical patterns, energy-intensive fenestration, sometimes with a mihrab or a dome stuck on in deference to a history that is no longer really believed in—all these have become part of the new vernacular of a hasty urbanization. The basic idea has been to abandon the great tradition of the Ottoman city, with its many communities in their tents of stone, and to “catch up” with the West
  • architect Marwa al-Sabouni, whose book, The Battle for Home, tells the story of how the conflict in Syria has overwhelmed her own city of Homs. She shows that you cannot destroy the serene and unostentatious forms of the Levantine city without also jeopardizing the peace that they symbolized and which to a measure they also protected
  • The old rabbit-warren city of the Middle East was a conflict-defusing device, a continuous affirmation of neighborhood and settlement. The new city of jerry-built concrete towers is a conflict-enhancing device, a continuous “stand-off” between competing communities on the edge of a place that does not belong to them and to which they in turn cannot belong.
  • Rarely, in any of this, however, has provision been made for the migrants from the villages, who have been compelled to survive in unplanned and unregulated structures, heaped up around the cities with no thought for how they look or for the character of the public spaces beneath them
  • We should remember that the idea of replacing the organic city of customary styles with cleared spaces and blocks of concrete, while it originated among European intellectuals, was first tried out in the Arab world. Le Corbusier, who had attempted in vain to persuade the city council of Paris to adopt his plan to tear down the entire city north of the Seine and replace it with an assemblage of glass towers, turned his attention to the North African city of Algiers instead, which was at the time under French colonial administration. As architectural advisor to the French Vichy government during the war he was able to overrule the elected mayor of Algiers and impose his will upon the city—though the Allied victory abruptly put an end to his plans.
  • Le Corbusier’s scheme is still studied and even treated with reverence in modern schools of architecture. It involved erasing the old city from the map, replacing it with great square blocks that negate the Mediterranean coastline and the contours of the landscape, and surmounting the whole with streets along which automobiles fly above the population. No church or mosque has a part in the plan; there are no alleyways or secret corners. All is blank, expressionless, and cold. It is an act of vengeance by the new world against the old: not a project for settling a place, but a project for destroying it, so that nothing of the place remains
  • the glitzy restaurant style of Dubai, in which vast gadgets, belonging to no known architectural language but looking like kitchen tools discarded by some gigantic celebrity chef, lie scattered among ribbons of motorway
  • Care for one’s place is the first move towards accepting the others who reside there. The thoughts “this is our home,” and “we belong here” are peacemaking thoughts. If the “we” is underpinned only by religious faith, and faith defined so as to exclude its historical rivals, then we have a problem. If, however, a resident of Homs can identify himself by the place that he shares with his fellow residents, rather than the faith that distinguishes him, then we are already on the path away from civil war.
  • decisions are made by officials, and officials belong to the great system of Mafia-like corruption that is the true cause of the Syrian conflict, and which has encouraged the Syrian political elite in recent times to look to Russia as its natural ally
  • Capitalism’s “creative destruction” is the anti-conservative claim that nothing that exists could not be improved easily in a short time by fast, profitable and “efficient” total replacement.
  • in the 1990s there were many popular Syrian TV drama series about how people lived and interacted with each other in the neighborhoods of the old cities in Syria during the late 19th and early 20th century. They depicted the days when the Levant society as it existed in its centuries-old Ottoman era make-up, just prior to the transition into colonial and post-colonial modernity and showed how rich and poor lived together in the same neighborhood, it showed the old houses, the shops & the markets.
  • Roger Scruton is romanticizing. He therefore completely misunderstands the expressive functional reality of ordinary homes and security by focusing on public architecture, which everywhere expresses elite ideals instead of common ones. Take Florence and the Italian Republics. Frequent wars and not infrequently with Muslim empires meant homes had to be defensible and closed off from streets. Only later, briefly, and elsewhere later like in Britain and the US were isolated farm villages open to welcome trade, or US farm homes isolated away from the necessity of group protections because genuine threats had become to rare to proactively defend against them. Similarly, the divide in the Muslim world is between open plans in port cities secured through trade by larger powers that could ensure protection, versus homes way from ports, deliberately closed off against strangers so as to be defensible against frequent invaders. Most of the Islamic world remains like unstable and insecure early Florence. And homes throughout MENA reflect their isolation and insecurity through closed plans, just as much as Spanish ones from Moorish times do, even in the New World.
Ed Webb

The Turbulent World of Middle East Soccer: Saudi Arabia rolls the dice with bid for New... - 0 views

  • Saudi Crown Prince Mohammed bin Salman has rolled the dice with a US$ 374 million bid to acquire storied British soccer club Newcastle United. If approved by Britain’s Premier League that nominally maintains a high bar for the qualification of aspiring club owners, Prince Mohammed would have demonstrated that he has put behind him an image tarnished by Saudi conduct of a five-year long war in Yemen, the 2018 killing of journalist Jamal Khashoggi, systematic abuse of human rights and, more recently, the kingdom’s badly-timed oil price war with Russia.
  • the kind of financial muscle that allows it to acquire trophies that enable it to project itself in a different light and garner soft power rather than financial gain at a time of a pandemic and global economic collapse.
  • Aramco, the Saudi national oil company, was reported to be talking to banks about a US$10 billion loan to help finance its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC). The deal would pour money into the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.
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  • Prince Mohammed is betting that the Premier League at a time of economic crisis and with Britain needing to forge new trade relationships in the wake of its departure from the European Union may not want to slam the door on a wealthy investor and/or jeopardize British relations with the kingdom.
  • a decision by the Premier League to reject the acquisition of Newcastle would be perceived as yet another of Prince Mohammed’s self-inflicted public relations fiascos that include multiple failed attempts to position the kingdom as a powerhouse in international soccer governance
  • The acquisition would mimic the 2017 purchase of celebrated soccer star Neymar by Qatar-owned Paris St. Germain for US$277 million intended to demonstrate that the Gulf state was unaffected by the then several months-old Saudi-UAE-led economic and diplomatic boycott.
  • Saudi Arabia responded in 2018 to Canadian criticism of the kingdom’s human rights record by withdrawing its ambassador and freezing all new trade and investment transactions. German criticism of a failed Saudi attempt to force the resignation of Lebanon’s prime minister led that same year to a de facto downgrading of diplomatic relations and reduced trade.
  • The League has tightened its criteria to test potential club owners on their integrity and reputation. The criteria include ensuring that a potential owner has not committed an act in a foreign jurisdiction that would be a criminal offence in Britain, even if not illegal in their own country.
  • Supporters of the acquisition argue that it bolsters Prince Mohammed’s reforms in a soccer-crazy country and reaffirms his push to break with the kingdom’s austere, inward-looking past. They reason further that it will bolster investment in Newcastle and surroundings at a time of impending economic hardship.
  • Supporters only need to look at Manchester where the United Arab Emirates’ acquisition of Manchester City more than a decade ago has benefitted not only the club but the city too.
  • supporters of Newcastle are likely to welcome the financial injection and departure of the club’s unpopular current owner, Mike Ashley, and ignore condemnation of the deal by human rights activists, including Amnesty International, as “sportswashing, plain and simple.”
Ed Webb

Saudi Arabia, China Sign Deals Worth Up to $65 Billion | Foreign Policy - 0 views

  • Saudi Arabian King Salman traveled to China Thursday to deepen economic ties between the world’s biggest oil exporter and the world’s second-largest oil consumer. It’s a key stop in the king’s six-week trip to Asia that comes as Riyadh struggles with a slumping oil market and a desperate need to diversify its economy.
  • up to $65 billion worth of economic and trade deals, spanning sectors from energy to space
  • more than 20 agreements on oil investments and in renewable energy
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  • China even discussed taking a stake in Saudi Aramco, the state-owned oil firm, which is preparing for a public listing
  • King Salman, and especially crown prince Mohammed bin Salman, have launched an ambitious campaign to shock the country out of oil-dependency and diversify the economy under the auspices of its Saudi Vision 2030 plan. It’s culminated in the unusual six-week trip to Asia that includes stops in Japan, Malaysia, Indonesia, Brunei, and the Maldives as Salman courts foreign investors
  • Xi couched China’s future role in the Middle East in purely economic terms, citing his country’s ambitious One Belt One Road initiative, China’s state-run Xinhua News reported. He stressed China would continue its longstanding policy of non-interference in the Middle East, in contrast to the United States and European counterparts
  • But China has steadily ramped up involvement in the region as its dependence on Middle Eastern oil grows. Beijing began building its first overseas military outpost, a naval base in Djibouti on the Horn of Africa, in 2016. And it funneled thousands of peacekeepers to U.N. missions, including in oil-rich countries like South Sudan.
Ed Webb

Invisibility and Negrophobia in Algeria - Arab Reform Initiative - 0 views

  • In post-independence Algeria, autocratic elites have chosen to characterize the Algerian people as a homogenous block with a single culture (Arab-Islamic), religion (Islam), and language (Arabic) because they consider diversity to be a source of division and a threat to the country’s stability and their hold on power. Identity issues, which the regime insists on controlling, are also used to divide and rule. Aware of this, from the beginning, the Hirak downplayed identity and difference within the movement while focusing on getting rid of le pouvoir (Algeria’s military elite and their civilian allies that rule and exploit the country) as a whole, root and branch.
  • placing pressure on existing tensions between Arabs and Amazighs (Berbers) and between Islamists and secularists
  • Black Algerians find themselves in a perplexing situation during the current slow-moving peaceful Hirak for democracy. Concentrated in the Saharan south of the country, to an extent, Black Algerians are literally not visible to other Algerian citizens – self-identified white Arabs and Amazighs – who are overwhelmingly found on the northern Mediterranean coast. Nevertheless, Black Algerians are indigenous to Algeria’s Sahara,7Marie Claude Chamla, “Les populations anciennes du Sahara et des regions limitrophes,” Laboratoires d’Anthropologie du Musee de l’Homme et de l’Institut de Paleontologie Humaine, Paris 1968, p. 81. and hundreds of thousands of others, across 13 centuries, were enslaved and forced across the desert to Algeria from sub-Saharan Africa. The history of servitude has stigmatized Black Algerians, generated Negrophobia, and fostered a need – so far unrealized – for the mobilization of civil society organizations and the Algerian state to combat anti-Black racism in the country
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  • Anti-Black racism has only increased in Algeria with the arrival of tens of thousands of sub-Saharan Black, largely clandestine, migrants over the last two decades, who enter Algeria for educational or economic opportunities, or more often, to travel through the country en route to Europe.
  • 20-25% of Algerians are native Amazigh speakers (Tamazight), and many more are Arabized Amazighs. The indigenous Amazighs have been struggling for equality since independence against a state determined to impose an Arab Muslim identity on the country’s entire population
  • When Algerians think of “racial” discrimination, it is likely that they first think of the treatment Algerian Arabs and Amazighs received at the hands of the French during the colonial period (1830-1962), and afterwards in France.27Kamel Daoud, “Black in Algeria? Then You’d Better be Muslim” The New York Times, May 2016. https://www.nytimes.com/2016/05/03/opinion/kamel-daoud-black-in-algeria-then-youd-better-be-muslim.html . See also Seloua Luste Boulbina, “Si tu desires te Moquer du Noir: Habille-le en rouge”, Middle East Eye, 24 November 2018. https://www.middleeasteye.net/fr/opinion-fr/si-tu-desires-te-moquer-du-noir-habille-le-en-rouge-0 The debate over Algeria as a post-colonial society has been fully engaged. However, in another sign of the invisibility of Algeria’s black citizens, consideration of Algeria as a post-slave society – and what that means for black Algerians today – has not
  • Black people, who were present in southern Algeria even before the 13- century-long  trans-Saharan slave trade, can be considered to be as indigenous to Algeria as the Amazigh population.
  • following a regional trend to repress diversity issues, the Algerian government has never taken a census to ascertain the total number of Algerian black citizens in the country, most of whom remain concentrated in the Saharan south. Ninety-one percent of the Algerian population lives along the Mediterranean coast on 12% of the country's total land mass.
  • Because most black Algerians are scattered in the vast southern Sahara, an area of the country about which many Algerians are not familiar, white Algerians may be only dimly aware, if aware at all, that they have black compatriots.25Ouzani, op.cit. Certainly, many black Algerians have reported that they face incredulity when claiming their national identity in northern Algeria at police roadblocks, airports, and even in doing everyday ordinary things like responding to a request for the time, “When I walk in the street and someone wants to ask me the time, he does it in French, convinced that he is dealing with a Nigerien or a Chadian, a way of indicating that an Algerian cannot be black.”
  • Amazigh activists have challenged the state’s assertion of Arab-Muslim homogeneity. Amazigh activism, in the form of mass protests and the undertakings of Amazigh-dominated political parties and civil society organizations, has pressured the state to constitutionally accept Amazigh identity as one of the components of Algerian identity, integrate the Amazigh language in secondary education, and recognize the Amazigh language as a national and later an official language of the state, in addition to Arabic
  • elites were also leaders of Third Worldism, and officially believed in pan-Africanism. Ahmed Ben Bella, Algeria’s first post-independence president, declared in Accra, Ghana, in 1963: “It was the imperialists who tried to distinguish between the so-called white and black Africans.”
  • in Saharan areas, the slave trade continued throughout the period of French settler colonialism (1830-1962)
  • Arab-Berber whites constructed an economy that relied on black slave labour from their Haratins (enslaved or recently freed Islamicized and Arabized Blacks, who are still susceptible to forced labour practices).31These ambiguously freed black slaves in Saharan areas of Algeria are also called Bella or Ikelan if they were enslaved by Amazighs, including Tuaregs. Today Haratins, mostly sharecroppers, work under harsh labour conditions that some have described as a modern form of slavery, they “dig and tend wells, excavate and maintain the underground channels of foggara, irrigate gardens, tend to flocks, and cultivate dates”.32Benjamine Claude Brower, “Rethinking Abolition in Algeria,” Cahier D’etudes Africaines 49, 2009 Some argue that without the labour of enslaved Black people, the Sahara would never have been habitable at all.33Ibid. The arduous and relentless work to irrigate in a desert includes digging channels tens of feet into the sand with the risk of being drowned under it.
  • The French accommodated slavery in the Algerian Sahara more than anywhere else. Slave masters and merchants were given permission to trade in slaves and keep those they owned well into the twentieth century.35Ibid. In exchange, slavers and merchants provided intelligence on far-off regions to colonial authorities
  • there is reason to believe that enslaved black people continue to be exploited for agricultural work in the southern oases of Ouargla and Ghardaia provinces to this day (among wealthy families, owners of large palm trees, fields, and farms) and in some instances among semi-nomadic Tuareg
  • The Algerian state has never adopted any policies, including any affirmative action policies, to help their black community emerge from the impact of generations of servitude and brutalization.40Brower, op.cit. Instead, it has sought to legitimize the country’s white Arab-Muslim identity only
  • descendants of freed Black slaves (Haratins) in Saharan regions of Algeria often remain dependent upon former “masters.” Most work as sharecroppers in conditions similar to slavery
  • Black Algerians also face discrimination in urban areas of the country. They encounter the same racist attitudes and racial insults as any other person with dark skin within Algerian borders.
  • Either by their colour, k’hal, which is twisted into kahlouche (blackie), mer ouba (charcoal), guerba kahla (a black gourd to hold water made out of goatskin), nigro batata (big nose that resembles a potato), haba zeitouna (black olive), babay (nigger), akli (Black slave in some Berber areas), rougi  (redhead or Swedish to imply that the black person is culturally and socially white, as everyone must want to be), saligani (from Senegal) 46Khiat, op.cit., Calling black Algerians Saligani (from Senegal) has a different history. It refers back to the early decades of the 20th century when the French utilized black West-African soldiers in their colonial army to do the dirty work of colonialization, including brutalizing members of the population that resisted French rule, taking food from farmers, and rape. or by direct references to past servile status: hartani (dark black slave or ex-slave forced to work outside the master’s house), khadim (servant), ouacif (domestic slave), ‘abd (slave), ‘abd m’cana (stinky black slave).47Ibid. Using these terms against a black Algerian passerby establishes difference, contempt, strangeness, rejection, distance, and exclusion
  • In addition to racial insults, a black Algerian academic has noted, “Our community continues to symbolize bad luck. Worse: in the stories of grandmothers, we play the bad roles, kidnappers of children, looters, or vagrants. [While Arabs and Berbers can both point to a proclaimed noble history in Algeria] there is no place for a black hero in the collective memory of my people.”
  • In addition to rejection of interracial marriages, an Algerian intellectual has reported cases of “white” Algerians refusing to room with Blacks or study with them at university
  • A step forward in reducing Negrophobia, the selection of Khadija Benhamou, a black woman from the Algerian Sahara, as Miss Algeria in 2019 has been marred by the subsequent deluge of posts on social media virulently claiming that she did not represent the beauty of the country, with many direct attacks against the colour of her skin.
  • Partly due to pressure on Algeria to control its borders from the European Union, Black sub-Saharan African migrants have been vilified by the Algerian government and some of the press;59https://insidearabia.com/algeria-desert-deportations-eu-migration/ accused – usually falsely – of violence, selling drugs, promiscuity, spreading venereal diseases, perpetuating anarchy, and raping Algerian women.
  • Without irony, some graffiti and social media posts called on the migrants to “Go back to Africa.”
  • Three generations after independence, the Algerian state is still resisting the open public debate and civil society engagement needed to reflect the country’s pluralism and to begin to reckon with slave legacies and racial discrimination
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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  • 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.
  • 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
  • a coalition of trade unions called the Sudanese Professionals Association (SPA) established informal leadership of nationwide demonstrations
  • 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.
  • 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
  • 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
  • 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.
  • 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

UAE to open second military base in east Africa | Middle East Eye - 0 views

  • The United Arab Emirates is going to set up a second military base in the Horn of Africa, sparking concern among some governments in the region.The Somaliland parliament approved the deal for the northern port of Berbera on Sunday
  • Under the 30-year deal, the Emirati government will have exclusive rights to Somaliland’s largest port and manage and oversee operational activities.
  • DP World, the UAE’s ports operator company, will supervise the port, which will gain a naval base as well as an air base. The lease of the port is contingent on the $442 million deal with DP World.
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  • Somaliland will get investment as well as international recognition: no other country has yet recognised the breakaway territory – which separated itself from the rest of Somalia in 1993 - as an "independent state"
  • The Eritrean base has been used by the UAE in the Yemen war against the Houthis. It is not known whether the facility at Berbera will have a similar purpose
  • Abu Dhabi is reaching out to countries in and around the Horn of Africa, as it looks to increase its non-oil revenue through other avenues including real estate, trade and financial services.
  • the UAE will be engaging in trade across the port, and for this, it would require a sustainable road network across Berbera. Hence, as the minister said, it will create opportunities for the local people on infrastructure development.
  • the Somaliland deal has angered Ethiopia, one of the regional powers in the Horn of Africa, which itself has economic ties with the UAE.As recently as last year, the UAE and Ethiopia signed several investment deals, under the terms of which the UAE is legally bound to protect the economic interests of Ethiopia
Ed Webb

Analysis: A second Nobel for the Arab Spring - Al Jazeera English - 0 views

  • Tunisia's General Labour Union (UGTT: Union Générale Tunisienne du Travail), created more than 100 years ago, combines a rich history of anti-colonial and anti-authoritarian struggles. With nearly 700,000 members, it stands as the most powerful organisation and a political heavyweight of leftist and secularist leaning members. It was significant in leading the civic alliance's mediator role in negotiating a democratic plan and timetable for its fulfilment.
  • the long-established Tunisian Human Rights League (LTDH: La Ligue Tunisienne pour la Défense des Droits de l'Homme) is the oldest in the Arab world
  • the Tunisian Confederation of Industry, Trade and Handicrafts (UTICA: Union Tunisienne de l'Industrie, du Commerce et de l'Artisanat) eventually responded to the UGTT’s invitation to endorse and join the national dialogue
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  • UTICA has generally played politics on the margins, safely. It has a different type of membership (the private sector’s bourgeoisie), generally secularist, and liberal. After the revolution, it has grown autonomous of the state and sharpened its skills as a visible and proactive actor in national politics
  • It is headed by a woman, Widad Bouchamaoui, and historically is a rival to the UGTT, and more or less aloof of the Islamists. As a group, they have a vested interest in a climate of freedom to conduct trade and business
  • lawyers or bar association (ONAT: Ordre National des Avocats de Tunisie) added legal weight to the moral struggle through dialogue
  • The National Dialogue process remained local, making it genuinely national with no foreign inputs or interference. It relied on local social capital and Tunisians were in full possession of the process, denying foreign parties to meddle into it
  • The ‘troika’ led formal (top-down) politics; the quartet informal (bottom-up) politics
  • Some of Tunisia's neighbours in the Arab world will almost certainly ignore or subvert the significance of this award
Ed Webb

Saudi megaproject harnesses Egypt's Sinai, but Sisi will pay the - 0 views

  • The almost 11,000 square mile total project is to be designed and supervised by US, German, Japanese and possibly other western experts. It represents the largest single component of the Saudi Crown Prince's "Vision 2030", by which he intends his country to diversify its economy away from dependence upon oil. Egypt, in other words, is being harnessed to Prince Mohammad bin Salman's project to consolidate his personal political power, transform the Kingdom into a centre of high tech development in what heretofore has been a relatively peripheral region within the Middle East, and exert yet greater Saudi influence over both Jordan and Egypt.
  • The most immediate, tangible potential benefits are to lend support to the effort to convert the Suez Canal Zone into a globally important logistics hub, combined with opening up the Red Sea and Gulfs of Suez and Aqaba to a new surge of tourist development.
  • Suez Canal revenues and numbers of ships transiting have been essentially flat since the parallel channel was opened amidst great fanfare in February 2016 following a two-year, $8.4 billion upgrade
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  • even if Suez Canal traffic were miraculously to increase, the benefits of a major logistical hub on its flanks are less than certain. Neither Egypt nor any other Middle Eastern or North African country is a major manufacturing centre. Intra-industry trade, which is that essentially conducted within multinational corporations as they integrate production of goods in many countries, is abysmally low in the Middle East and North Africa, whereas it is booming in East Asia. So the question of what purpose a logistical hub would serve is highly pertinent.
  • the Red Sea is not exactly a hospitable political environment. The ongoing war in Yemen, increasing instability in Eritrea and Ethiopia, persisting violence in Somalia and Egypt, protracted conflict in Sudan and South Sudan, piracy, and growing competition for port access between the UAE, Saudi Arabia, Djibouti, China, the US and others contain the seeds for turmoil that could negatively impact tourism in the region
  • What benefits then might Egypt anticipate from the reported $10 billion investment? The principal one seems to be contracts for military owned or associated construction companies, just as was the case with the digging of the parallel channel to the Suez Canal.
  • As military men they are interested in generating business for that sector of the economy they have come to control. From their perspective the $10 billion is not an investment in Egypt's future so much as it is a payment to the Egyptian military for being supportive of Mohammad bin Salman and his ambitions
  • costs of what appears to be a large scale, military dominated construction project are economic, environmental and political
  • Turning military owned and associated construction companies loose in the southern Sinai and along the foreshores of the Gulfs of Aqaba and Suez is a recipe for environmental disaster, as the current situations on the Mediterranean North Coast and western shore of the Gulf of Suez attest. The fragile marine environment has already sustained enormous damage to reef and other aquatic life.
  • buying Egyptian political insurance for his $10 billion, a price that Egypt may ultimately find to be very high
Ed Webb

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

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

Trouble in the Wild East | Foreign Policy - 0 views

  • Ben Guerdane had already become infamous as a source of Tunisian recruits leaving for the wars in Syria and Iraq. The Soufan Group, a security consultancy, estimated in December 2015 that around 15 percent of Tunisian jihadis active in the conflicts abroad hail from this town of just 80,000 people
  • The deaths caused by the fighting weren’t the only casualties of the attack, Omar hastened to add. The violence also prompted authorities to shut down the Ras Jedir border crossing, the main local conduit for the transit of goods and people between the two countries. Like other Tunisian border towns, Ben Guerdane relies heavily on smuggling and other forms of cross-border trade to boost its otherwise dismal economy.
  • Customs enforcement along the border tends to be opaque and arbitrary. According to a 2013 International Crisis Group report, it is not uncommon for smugglers to pay bribes when crossing, which usually entails having a police officer or customs official act as an unofficial protector. This, the report says, is the “unwritten code of practice” that governs trade here. The problem, of course, is that such a porous border also virtually invites infiltration by jihadi insurgents who operate more or less freely on the Libyan side.
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  • “It’s more important than anyone can imagine. It’s not only the people who bring the goods and sell them here who benefit from open borders.” Virtually every business in the area, he said, depends on the crossing
Ed Webb

Saudi Crown Prince Asks: What if a City, But It's a 105-Mile Line - 0 views

  • Vicious Saudi autocrat Mohamed bin Salman has a new vision for Neom, his plan for a massive, $500 billion, AI-powered, nominally legally independent city-state of the future on the border with Egypt and Jordan. When we last left the crown prince, he had reportedly commissioned 2,300-pages’ worth of proposals from Boston Consulting Group, McKinsey & Co. and Oliver Wyman boasting of possible amenities like holographic schoolteachers, cloud seeding to create rain, flying taxis, glow-in-the-dark beaches, a giant NASA-built artificial moon, and lots of robots: maids, cage fighters, and dinosaurs.
  • Now Salman has a bold new idea: One of the cities in Neom is a line. A line roughly 105-miles (170-kilometers) long and a five-minute walk wide, to be exact. No, really, it’s a line. The proposed city is a line that stretches across all of Saudi Arabia. That’s the plan.
  • “With zero cars, zero streets, and zero carbon emissions, you can fulfill all your daily requirements within a five minute walk,” the crown prince continued. “And you can travel from end to end within 20 minutes.”AdvertisementThe end-to-end in 20 minutes boast likely refers to some form of mass transit that doesn’t yet exist. That works out to a transit system running at about 317 mph (510 kph). That would be much faster than Japan’s famous Shinkansen train network, which is capped at 200 mph (321 kph). Some Japanese rail companies have tested maglev trains that have gone up to 373 mph (600 kph), though it’s nowhere near ready for primetime.
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  • According to Bloomberg, Saudi officials project the Line will cost around $100-$200 billion of the $500 billion planned to be spent on Neom and will have a population of 1 million with 380,000 jobs by the year 2030. It will have one of the biggest airports in the world for some reason, which seems like a strange addition to a supposedly climate-friendly city.
  • The site also makes numerous hand wavy and vaguely menacing claims, including that “all businesses and communities” will have “over 90%” of their data processed by AI and robots:
  • Don’t pay attention to Saudi war crimes in Yemen, the prince’s brutal crackdowns on dissent, the hit squad that tortured journalist Jamal Khashoggi to death, and the other habitual human rights abuses that allow the Saudi monarchy to remain in power. Also, ignore that obstacles facing Neom include budgetary constraints, the forced eviction of tens of thousands of existing residents such as the Huwaitat tribe, coronavirus and oil shock, investor flight over human rights concerns, and the lingering questions of whether the whole project is a distraction from pressing domestic issues and/or a mirage conjured up by consulting firms pandering to the crown prince’s ego and hungry for lucrative fees. Nevermind you that there are numerous ways we could ensure the cities people already live in are prepared for climate change rather than blowing billions of dollars on a vanity project.
Ed Webb

At Banque Havilland, Abu Dhabi's Crown Prince Was Known as 'The Boss' - Bloomberg - 0 views

  • A trove of emails, documents and legal filings reviewed by Bloomberg News, as well as interviews with former insiders, reveal the extent of the services Rowland and his private bank provided to one of its biggest customers, Mohammed bin Zayed, better known as MBZ, the crown prince of Abu Dhabi and de facto ruler of the United Arab Emirates. Some of the work went beyond financial advice. It included scouting for deals in Zimbabwe, setting up a company to buy the image rights of players on the Abu Dhabi-owned Manchester City Football Club and helping place the bank’s chairman at the time on the board of Human Rights Watch after it published reports critical of the Persian Gulf country.
  • a 2017 plan devised by the bank for an assault on the financial markets of Qatar, a country that had just been blockaded by the UAE, Saudi Arabia, Egypt and Bahrain for allegedly sponsoring terrorism
  • a coordinated attack to deplete Qatar’s foreign-exchange reserves and pauperize its government
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  • One of Rowland’s sons, a senior executive at the Luxembourg-based bank, emailed the plan to Will Tricks, who had swapped a career in the U.K.’s foreign intelligence service MI6 for a job advising MBZ. Tricks, who acted as a go-between for the Rowlands, was paid as a contractor by Banque Havilland. The presentation found its way to the UAE’s ambassador to the U.S., who stored it on his computer under “Rowland Banque Havilland.”
  • Last year, Qatar sued Banque Havilland in London, accusing it of orchestrating a campaign that cost the country more than $40 billion to shore up its banks and defend its currency peg against the U.S. dollar. While the lawsuit has received attention in the media, the extent of other work Banque Havilland did on behalf of MBZ hasn’t been previously reported. Nor has the role of Tricks.
  • Havilland is facing a criminal investigation in Luxembourg for, among other things, its dealings with the family of another head of state, Azerbaijan’s President Ilham Aliyev. It has also had communications with regulators in Luxembourg and the U.K. about the Qatar plan
  • Devising a plan for economic sabotage, whether implemented or not, is beyond the remit of most private banks. But Banque Havilland is no ordinary financial institution. The firm specialized in doing things others might balk at, the documents and emails show. Its clients included kleptocrats and alleged criminals in corruption hotspots including Nigeria and Azerbaijan. Its owners solicited business in sanctioned countries such as North Korea and Zimbabwe.
  • Not all of its clients were pariahs, and none was as important as MBZ, people with knowledge of the matter say. The crown prince, 59, is one of the Arab world’s most powerful leaders. A graduate of Britain’s Royal Military Academy Sandhurst, he commands one of the best-equipped armies in the region and has waged wars in Yemen, Libya and Somalia. He’s not as well-known as his protégé and neighbor Mohammed bin Salman, Saudi Arabia’s crown prince. And he isn’t president of the UAE, a title held by a half-brother.
  • When MBZ wanted to develop a foothold in southern Africa’s commodities market in 2011, Tricks worked with the Rowlands on sourcing potential investments, documents and emails show. They picked Zimbabwe as a hub for the region, but there was a problem. The country was subject to U.S. and European Union sanctions that banned dealings with President Robert Mugabe’s inner circle and many of its state-owned companies. Tricks passed on advice about setting up a trust in Abu Dhabi for any Zimbabwe deals to hide the identities of investors from the U.S. Treasury Department, which oversees sanctions enforcement
  • the UAE is now a major trading partner with the country despite continuing U.S. sanctions, and it opened an embassy there in 2019
  • Robeson, the foundation’s chairman, was elected to the Human Rights Watch board a few months later, in April 2012. He was named to the advocacy group’s Middle East and North Africa advisory committee. “We have been given the complete list of projects currently being undertaken by Human Rights Watch in the Middle East and North Africa,” Robeson wrote soon after joining the board, in a memo he emailed to Jonathan Rowland that he asked him to share with his father. Robeson also said he’d been given detailed notes of a meeting between the group and Britain’s then-Secretary of State for International Development Andrew Mitchell, along with other private briefings.
  • The foundation appears to have had no other purpose than making the Human Rights Watch donations. It was registered in Guernsey after the first gift and wound down when Robeson left the board in 2016.
  • Emma Daly, a spokeswoman for Human Rights Watch in New York, said the organization vetted Robeson at the time he was being considered for the board and couldn’t find any conflicts. She said the group didn’t know about Rowland’s or the bank’s connections to MBZ. Its most recent report on the country noted that, “Despite declaring 2019 the ‘Year of Tolerance,’ United Arab Emirates rulers showed no tolerance for any manner of peaceful dissent.”
  • The presentation is now a key part of the case in which Qatar accuses the bank of orchestrating an illegal UAE-backed campaign to create false impressions about the country’s stability. The UAE is not a defendant. The plan called for setting up an offshore vehicle into which the UAE would transfer its holdings of Qatari debt before buying more of the securities. The fund would also purchase foreign-exchange derivatives linked to the Qatari riyal and buy enough insurance on its bonds—a barometer of a country’s creditworthiness—to “move the price sufficiently to make it newsworthy.” Working with an affiliated party, it would then flood the market with the bonds to create the impression of panicked selling. The presentation also described a public relations drive to “add more fuel to the fire” and suggest Qatar might be struggling to access U.S. dollars.
  • Within weeks of the plan being sent to Tricks, the riyal—under pressure since the beginning of the blockade in June 2017—went into freefall and hit a record low. The yield on Qatar’s 10-year bonds also soared, as did the cost of insuring the country’s debt against default. The currency didn’t recover until November of that year, after the Intercept reported on the Banque Havilland plan.
Ed Webb

The Coronavirus Oil Shock Is Just Getting Started - 0 views

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

Egypt: 8 months after Dr. Mohamed Morsi assumed the presidency, the rapid deterioration... - 0 views

  • the rights situation in Egypt currently appears even direr than it did prior to the revolution and the ouster of the former president. The country has merely traded one form of authoritarianism for another, albeit with some new features
  • The principles of the rule of law and the independence of the judiciary were undermined with the issuance of the constitutional declaration of November 2012
  • A “state of emergency” was announced unnecessarily and by way of a law which violates international human rights standards
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  • Torture and degrading treatment continue to be systematically practiced against Egyptian citizens
  • The president and his party undertook a campaign to attack freedom of the press through statements aimed at reducing the relative freedom which is currently allowed and by submitting various complaints to the investigative authorities against journalists and other media professionals. [4] Moreover, representatives of the president’s party in the constituent assembly supported the inclusion within the new constitution of provisions which allow for such repressive practices against the media, including the detention of journalists.
  • protests have repeatedly been suppressed through excessive use of force
  • police and the security establishment continue to shirk their legal responsibility to protect political and social protests and have been complicit in crimes of rape and sexual assault against female protestors
  • a new draft law on civil society associations which would eliminate the already limited margin available for forming associations, especially human rights organizations
  • National Council for Human Rights (NCHR) lacks independence, as the majority of its members belong to the ruling coalition. Indeed, a number of its members are well-known for their hostility towards human rights, and some of them use sectarian political speech publicly, including language inciting to hatred and violence against both Muslim and non-Muslim religious minorities. Given the NCHR’s current composition and its practices to date, it is clear that the current purpose of the NCHR is to conceal or downplay human rights violations, rather than to expose and condemn them, as well as to enhance the image of the government before the international community. While the NCHR suffered perpetually from a lack of independence under the Mubarak regime, it has now completely lost all semblance of independence and has become an indirect platform for some of its members to publicly incite against human rights
Ed Webb

Egypt bakeries protest planned reduction of flour subsidies - Economy - Business - Ahra... - 0 views

  • Hundreds of Egyptian bakery owners on Saturday blocked Cairo's Qasr Al-Aini Street near the Ministry of Supply and Internal Trade to protest government plans to reduce flour subsidies.  On Thursday, the supply ministry announced that it would continue to subsidise bread loaves, but not flour – which would henceforth be sold to bakeries at market prices. The move means that prices paid by bakeries for a 100-kilogram bag of flour would rise from LE16 to LE286.
  • The government will then purchase loaves of bread from bakeries for 34 piastres each before selling them on to consumers at 5 piastres each. 
  • "We have long called for the liberalisation of flour prices and the entire system of bread production," Ghorab added. "But with its latest decision, the government is setting an unrealistic production cost."
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  • The government has often accused bakeries of selling subsidised flour on to the black market rather than using it to produce bread. "Some bakery owners are calling strikes and sit-ins in hopes of seeing the new system fail, so that the old system – which allowed them to sell large amounts of flour on the black market – would be maintained," Nasser El-Farrash, advisor to the supply minister, said recently.
  • The Egyptian government has traditionally kept local bread prices down by both importing and purchasing massive amounts of locally-produced wheat and supplying state-sponsored bakeries with flour to produce needed quantities of bread.  Local bread prices have remained unchanged since the 1980s due to a policy of frequent government intervention to stabilise subsidised bread prices. Until now, the local price for a loaf of bread remains about 5 piastres. 
Ed Webb

Cutting Subsidies to Rein in a Budget Deficit: A Necessary Trade-Off? - Tunisia Live : ... - 0 views

  • the continuing costs of inflation since the revolution of January 2011
  • the current government is only a transitional body and that according to constitutional bylaws, it is not allowed to make any crucial decisions that have direct effects on consumers and the country’s economy. Zarouk went on to explain that the decision will harm consumers; The cost of household consumption has already increased by 5.9% between January 2012 and January 2013. Fuel is also vital to various segments of the economy, averaging 13% of general production costs in areas such as clothes and food. It also accounts for 50% to 60% of total expenses in the production of cement and bricks, which represent an important element of the country’s economy. “So it [the rise in fuels prices] harms such sectors,” he said. “And they are crucial in our economy.”
  • savings rates are insignificant in Tunisia – 17% – and decreasing, according to Zarouk. “People can no longer afford to save,”
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  • Though economics professor Mohsen Hassen echoed Zarouk’s assertion that increasing fuel prices will negatively affect consumers, he said the government’s decision was justified in order to salvage the country’s economy. Hassen told Tunisia Live that the budget deficit grew by 12.6% since the revolution; in 2012, alone it rose by 6.6%. “It is extremely dangerous that the deficit keeps growing,” Hassen said. “That’s why better management of subsidies funding is crucial.” Goods are generally subsidized in order to preserve consumer purchasing power, especially for citizens with low incomes. “Only 12% of the poor are benefiting from the fund…” he stated, adding that a larger proportion of Tunisians with high incomes are the ones gaining the most from subsidies. “Subsidies are serving those who don’t need them most,” Hassen said. “That’s the dilemma that was unveiled by the revolution thanks to transparency in statistics.”
Ed Webb

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

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