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Ed Webb

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

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

Kuwaiti activists targeted under GCC security pact - Al-Monitor: the Pulse of the Middl... - 0 views

  • Kuwaiti civil society is one of the most vibrant in the Gulf, hence its early rejection of the GCC Internal Security Pact, which was interpreted as yet another attempt to silence dissent in their own country. Many Kuwaiti activists resented Saudi hegemony, which the pact is meant to strengthen not only in the small emirate but the other ones, too. It is evident now that criticizing Saudi Arabia is taboo, the violation of which definitely leads to perhaps several years in prison. Kuwaiti apprehensions were not unfounded but they couldn't do much about the treaty that was ratified by their parliament. Several opposition groups boycotted the elections that eventually produced a docile body. On the other side of the border, there was no debate or controversy related to the pact as Saudis are completely disenfranchised. The only consultative council they have is appointed by the king and has no power to discuss security pacts with the GCC or other countries.
  • there is more to the recent detentions at the request of Saudi Arabia than simply freedom of speech. Regardless of their ideological affiliations, all the detainees belong to tribes that have historically lived between Saudi Arabia and Kuwait. Also all the detainees have gone beyond their Bedouin way of life to acquire education, political visions and determination to be part of states established when they were lacking skills. The governments of most GCC countries prefer the tribal Bedouin population to remain as part of folklore. Their ancient tents, camels and coffee pots are a reminder of a pure Arabian heritage, lost under the pressure of globalization, foreign labor populations and the ethnic diversity of the coastal states. So Gulf leaders, including the Kuwaitis and Saudis, prefer the Bedouin to be in the museum and the folklore heritage festivals rather than in public squares, demonstrating against corruption and calling for true citizenship
  • Today, not only Saudi Arabia but also Kuwait have to manage a different citizen, namely the "tribal moderns” who speak the language of human rights, freedom of speech, civil society, accountability, anti-corruption, elections and democracy. Such slogans are written on placards, chanted in demonstrations in Kuwait and virtually circulated in Saudi Arabia, as demonstrations are banned.
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  • The tribal moderns may endorse Islamism, or liberal democracy, but the fact of the matter remains constant. From the perspective of regimes, they are a dangerous bunch, simply because if they invoke tribal solidarities, they may be heeded by their fellow cousins, both imaginary and real.
  • No doubt, activists in Kuwait and other GCC countries will fall under the heavy weight of a pact designed above all to control, monitor and punish dissidents. The GCC itself may not move from cooperation to unification in the near future but it has certainly become yet another mechanism to silence peaceful and legitimate opposition across borders. Read More: http://www.al-monitor.com/pulse/originals/2015/03/saudi-gcc-security-dissident-activism-detention-opposition.html Madawi Al-Rasheed Columnist  Dr. Madawi Al-Rasheed is a columnist for Al-Monitor and a visiting professor at the Middle East Centre at the London School of Economics and Political Science. She has written extensively about the Arabian Peninsula, Arab migration, globalization, religious trans-nationalism and gender. On Twitter: @MadawiDr !function(d,s,id){var js,fjs=d.getElementsByTagName(s)[0],p=/^http:/.test(d.location)?'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+'://platform.twitter.com/widgets.js';fjs.parentNode.insertBefore(js,fjs);}}(document, 'script', 'twitter-wjs'); function target_popup(a){window.open("","formpopup","width=400,height=400,resizeable,scrollbars");a.target="formpopup"}
Ed Webb

Jordan, Facing Royal Crisis, Is a Banana Monarchy Falling Apart on America's Watch - 0 views

  • While some allege a real conspiracy tied to Saudi meddling, most analysts believe that the entire affair was a manufactured crisis designed to distract a public enraged about the ruling monarchy’s worsening mismanagement over the past decade. The pandemic made the already-stagnant economy worse, spiking unemployment from 15 to 25 percent and raising the poverty rate from 16 to a staggering 37 percent. Fruitless promises of democratic reform from Abdullah have led nowhere. With tribal activists regularly criticizing the king—the ultimate act of transgression—the monarchy is responding not with better policies and more transparency, but by doubling down with heightened repression.
  • Like all autocracies, Jordan has little tolerance for popular opposition. Moreover, most of the Arab monarchies suffer from dynastic infighting. Saudi Arabia, Morocco, and Bahrain have all seen powerful hard-liners muffle dissident princes over the last decade. Kuwait’s Sabah monarchy has been rocked by coup conspiracies and succession disputes
  • It has surrendered much of its sovereignty with a new defense treaty—inked in January without the Jordanian public’s knowledge—giving the U.S. military such untrammeled operational rights that the entire kingdom is now cleared to become a giant U.S. base.
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  • History shows that when sponsoring a client dictatorship becomes a sacred pillar of Washington’s foreign policy, client rulers become extremely dependent upon U.S. support, prioritizing their relationship with Washington over their own people. In Jordan’s case, the government has preserved U.S. dominance in the Middle East and protected Israel while neglecting Jordanians’ own woes.
  • Policymakers fear that reducing any part of their support will destabilize their client state, which could not survive without it. The only option is to perpetuate the current system, even though that regime’s own policies are clearly destabilizing it.
  • Jordan’s transformation into a U.S. dependency began during the Cold War. Washington replaced the fading British in the late 1950s as its great protector, a logical move given the need to back anti-Soviet regimes everywhere. Jordan had no oil. However, so long as Jordan endured, it could be a geopolitical firebreak insulating Israel and the oil-rich Arabian Peninsula from the radical forces of communism and Arab nationalism.
  • Washington helped build the Jordanian state. Foreign aid was one mechanism. In many years, U.S. economic aid exceeded all domestic tax revenues, the only thing keeping “Fortress Jordan” from collapsing into insolvency. While Jordan today receives support from many donors, including the International Monetary Fund, U.S. economic support remains uniquely fungible: It comes mostly in cash, it is guaranteed, and it now exceeds $1 billion annually.
  • the U.S. Agency for International Development began designing and operating much of Jordan’s physical infrastructure in the 1960s, doing the basic task of governance—providing public goods to society—for the monarchy. When Jordanians get water from the tap, no small feat in the bone-dry country, it is because of USAID. Even the Aqaba Special Economic Zone, a mega-project aimed at turning the Red Sea port city of Aqaba into a regional commercial hub, was funded and designed by U.S. technocrats.
  • The General Intelligence Directorate, glorified by Western journalists as an Arab version of Mossad, spends as much time smothering Jordanian dissent as battling terrorism. It owes much of its skills and resources to the CIA.
  • Of course, being a U.S. protectorate brings occasional costs. Dependency upon Washington’s goodwill, for instance, gave Abdullah little room to halt the Trump administration’s “deal of the century.” That provocative plan to resolve the Israeli-Palestinian dilemma incensed Abdullah, as it favored Israel’s land claims while sidelining Jordan’s traditional front-line role as mediator to the conflict.
  • Washington cannot imagine any other kind of Jordan, because it never had to. It may yet learn the hard way.
  • The Middle East remains a revolutionary place, as six of its autocratic rulers have lost power to mass uprisings in the last decade. Whether Jordan is next depends upon if the monarchy can fundamentally rethink its approach, rather than fall back upon the United States for affirmation.
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