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Ed Webb

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

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

Four Mexican Cartels Battling for Control of Avocado Trade - 0 views

  • Four cartels are battling it out for the lucrative US$1.5 billion dollar avocado trade in western Mexico
  • war over avocados has seen dozens of dead already
  • “Avocados are a catchy thing,” he said. “But I think it speaks more of a wider mutation of how organized crime operates in Mexico and Latin America. It’s not about drugs anymore, it’s about the territorial control and controlling the commodities.”
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  • farmers are being forced to pay or face losing the ability to ship their crops
  • Attorney general Adrián López Solís blames the killings on a territorial war between the CJNG and the armed wing of New Michoacan Family, dubbed Los Viagras
  • Mexico’s avocado export rose by 16 percent between 2018 and 2019, and Michoacan accounts for 80 percent of it. Forty-eight tons of avocados are stolen by gangs every day in the region - according to farmers.
  • The US Department of Agriculture is threatening to suspend its avocado certification program after several inspectors were threatened and robbed by cartel members.
Ed Webb

What Lockdown? World's Cocaine Traffickers Sniff at Movement Restrictions - OCCRP - 0 views

  • the predicament facing cocaine smugglers, as the global pandemic has increased scrutiny on them and disrupted their smuggling and distribution networks. But it also highlights their flexible approach to their trade, which has kept business booming even as many of the world’s legal sectors have ground to a halt.
  • OCCRP reporters have found that the world’s cocaine industry — which produces close to 2,000 metric tons a year and makes tens of billions of dollars — has adapted better than many other legitimate businesses. The industry has benefited from huge stores of drugs warehoused before the pandemic and its wide variety of smuggling methods. Street prices around Europe have risen by up to 30 percent, but it is not clear how much of this is due to distribution problems, and how much to drug gangs taking advantage of homebound customers.
  • cocaine continues to flow from South America to Europe and North America. Closed trafficking routes have been replaced with new ones, and street deals have been substituted with door-to-door deliveries.
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  • As many countries begin partially reopening their economies, traffickers may now be in a position to become more powerful than ever. With economies in distress and many businesses facing ruin, cash-rich narcos may be able to cheaply buy their way into an even bigger share of the legitimate economy.
  • “There has always been a stock, it’s a very organized chain. It’s the way to control everything, especially the price. The stocks are on beaches such as Tarena [near the border with Panama], banana plantations, in the jungle. The stashes are everywhere,”
  • Traditionally, smugglers have used small, very fast speedboats, as well as fishing vessels and submarines, to ply their northern route. Lockdowns have made these methods harder to use, mainly for logistical reasons. So instead, smugglers are turning back to older, slower routes that are often broken up in parts.
  • Unlike exports to the United States, cocaine bound for Europe is typically moved in legal air and sea cargoes, especially fast-moving fresh goods such as flowers and fruit. The latter, as food, has continued to move unimpeded during the pandemic, helping feed Europe’s 9.1 billion euro-a-year cocaine habit. Colombia’s banana industry, for example, has been exempt from local lockdown measures, allowing cocaine to keep moving through the crop’s supply chain. “[Anyone] in the authorities or security that meddles with this route goes down,” said Rául, the Gulf Clan member, adding that people who are paid off to facilitate the smuggling of cocaine have an incentive to keep the drugs flowing. “Everybody eats,” he said.
  • Mexican cartels have used the crisis as a public relations opportunity. People associated with the cartels, including the daughter of imprisoned Sinaloa cartel chief Joaquín “El Chapo” Guzmán, have publicly distributed food and other essential items to the poor. Meanwhile, the country’s drug violence continues unabated, claiming an average of 80 lives per day.
  • Italy has fallen silent as a point of arrival, despite being home to mafia groups that dominate Europe’s cocaine trade. Seizures dropped by 80 percent over the months of March and April compared to the same period last year
  • Ramón Santolaria, the head of anti-narcotics at Spain’s national police in Catalonia, said cocaine traffickers may have mistakenly assumed that the pandemic would have reduced monitoring at ports. The cartels “have to continue exporting,” Santolaria said. “They are like a company. They can’t store everything in their countries, since it would be very risky.”
  • In March and April, Spain seized over 14 tons of cocaine in inbound shipments — a figure six times higher than the same period the previous year, said Manuel Montesinos, the deputy director of Customs surveillance at the Spanish Taxation Agency. “We are very struck by the frenetic pace,” Montesinos said. “Almost every day we receive alerts of detections of suspicious operations.”
  • “Italy did not receive much via ports or airports and that is because during lockdown we have been controlling them a lot,” said Marco Sorrentino, the head of anti-mafia department of Italy’s financial police, the Guardia di Finanza. Italian crime groups have shifted their operations to Spain, where they have large “colonies” according to Sorrentino. “Italian mafias and their partners thus sent cocaine mainly to Algeciras or Barcelona, and then from there they moved it on wheels to the rest of Europe and to Italy,” he said. “As cover-up they used trucks filled with fresh fruits or also soy flour,” which resembles cocaine.
  • At the street level, lockdowns have played havoc with cocaine sales — but have also failed to stop the trade. But in some cases at least, dealers’ adaptations may have actually put them in a more profitable position than before, as cocaine users are desperate and confined at home. “Even though they don’t lack product, they have raised prices a bit and are cutting it more,”
  • The solution? Delivering it to customers in the guise of food orders, or couriered by essential workers carrying documents that give them permission to move around freely. Dealers have also staked out positions in socially distanced queues outside supermarkets — one of the only permitted places to gather in public under Italy’s strict lockdown rules, which began easing up in early May.
  • The main dark web marketplaces have seen an increase in sales of roughly 30 percent since lockdown measures started coming into effect worldwide
  • “Private citizens who are in need and won’t have access to a bank loan will be victims of loan sharks,” he said. “But what worries us the most is that licit companies might be in need, and be approached by mafia organizations that will propose to become minority shareholders.” “And once this happens, they actually take over the whole company,”
Ed Webb

Xinjiang's Voiceless Protests Hit Social Media - Foreign Policy - 0 views

  • Dozens of videos of people standing solemnly and silently in front of photographs of loved ones who have disappeared have emerged on Douyin, the Chinese original of the popular social media app TikTok. In another subtle message, the videos all play the same mournful song called “Donmek,” which means “return” in Turkish.
  • Between 800,000 and 2 million Uighurs, Kazhaks, and other Muslim ethnic minorities have been detained in China’s northwest region of Xinjiang
  • Uighurs living outside of China have not been spared surveillance and intimidation by the Chinese authorities, but an increasing number are speaking out. In February, a Uighur doctor living in Finland launched the #MeTooUygur social media campaign to demand proof from Beijing that their disappeared loved ones are still alive. The Xinjiang Victims Database collects testimonies from relatives.
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  • “This is the first time we’ve seen a pattern of protest that has made it to the outside world, since the hard turn towards internment and the totalitarian administration of Xinjiang,” said Rian Thum, a historian who has conducted research in Xinjiang for almost two decades. 
  • Both Douyin and TikTok were created by the Beijing-based tech company ByteDance and allow users to create and share short, usually funny video clips. Last November, TikTok became the first Chinese-made app to reach the No. 1 spot on Apple’s App Store in the United States. 
  • Even though the people in the videos remain silent—another giveaway that they are likely still in China—that could still be enough for them to be at great risk
Ed Webb

Democracy Is Fighting for Its Life - Foreign Policy - 0 views

  • American democracy faces not one, but three distinct and connected crises
  • an ongoing assault on democratic norms and values
  • a sense of displacement, dislocation, and despair among large numbers of Americans
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  • an onslaught by authoritarian powers in Beijing and Moscow, which are using new forms of technology to reach into democratic societies, exacerbate internal tensions, and carve out illiberal spheres of influences
  • Larry Diamond’s new book, Ill Winds: Saving Democracy from Russian Rage, Chinese Ambition, and American Complacency, attempts to do just that. Diamond, perhaps the world’s leading authority on democracy, is ideally suited for such a task
  • “In every region of the world,” he writes, “autocrats are seizing the initiative, democrats are on the defensive, and the space for competitive politics and free expression is shrinking.”
  • Mature democracies are becoming increasingly polarized, intolerant, and dysfunctional
  • Emerging democratic states are drowning in corruption, struggling for legitimacy, and fighting against growing external threats
  • Authoritarian leaders are simultaneously becoming more repressive at home, more aggressive abroad
  • the number of democracies grew from 46 in 1974 to 76 in 1990 to 120 by 2000, increasing the percentage of the world’s independent states from 30 to 63 percent
  • around 2006, this enlargement seemed to stall—and then reverse. Freedom House, a nongovernmental organization that tracks democracy and political freedom around the world, noted in its 2018 annual report that since 2006, 113 countries saw a net decline in freedom, and for 12 consecutive years, global freedom declined. The Economic Intelligence Unit’s Democracy Index similarly recorded the “worst decline in global democracy in years.” Diamond pointed out this disturbing trend more than a decade ago, writing in 2008 that “the democratic wave has been slowed by a powerful authoritarian undertow, and the world has slipped into a democratic recession.”
  • Hungary, Turkey, and Venezuela continue their slide into authoritarian rule; democratic norms have eroded in the Philippines and Poland; Myanmar, which had slowly began opening its system, executed an ethnic cleansing and jailed journalists covering it; right-wing populists gained traction throughout Western Europe; and, perhaps most distressing from a long-term perspective, young people seem to be losing faith in democracy
  • Technological advances have given today’s autocrats the ability to monitor their populations at a previously unimaginable level, export surveillance systems to like-minded autocrats abroad, and reach into foreign institutions to disrupt democratic elections
  • his assessment that the world is “now immersed in a fierce global contest of ideas, information, and norms” ought to serve as a rallying cry for those who would protect democracy from enervation, degradation, and assault
  • not everyone supports such a rallying cry, and many prominent voices see it as unhelpfully reviving a Cold War mentality. Today’s challenges, they assert, come from a variety of actors, have no universalizing aspirations, and are merely the normal geopolitical ambitions of states. Some reject that ideology plays a determining role and point out that governments of all types can find areas of cooperation when they focus on minimizing differences.
  • Oversimplifying complex causes carries real dangers and constrains policymakers’ choices. During the Cold War, the United States committed serious strategic errors by indulging McCarthyism and seeing Moscow’s hand in every local challenge to U.S. influence
  • Both Beijing and Moscow believe that they would be more secure in a world where illiberalism has displaced liberalism, and both are seeking to undermine democracies by spreading fake news, constraining public debate, co-opting or bribing leading political figures, and compromising the intellectual freedom of foreign academic institutions
  • Diamond’s most important warning is that the biggest problem mature democracies face is complacency
Ed Webb

The Revolution Is Only Getting Started - The Atlantic - 0 views

  • revolutions are periods in which social actors with different agendas (peasants stealing rabbits, city dwellers sacking tollbooths, lawmakers writing a constitution, anxious Parisians looking for weapons at the Bastille Fortress) become fused into a more or less stable constellation. The most timeless and emancipatory lesson of the French Revolution is that people make history. Likewise, the actions we take and the choices we make today will shape both what future we get and what we remember of the past.
  • That comparisons can so easily be made between the beginning of the French Revolution and the United States today does not mean that Americans are fated to see a Reign of Terror or that a military dictatorship like Napoleon’s looms large in our future. What it does mean is that everything is up for grabs. The United States of America can implode under external pressure and its own grave contradictions, or it can be reimagined and repurposed.
  • Life will not go back to normal for us, either, because the norms of the past decades are simply no longer tenable for huge numbers of Americans. In a single week in March, 3.3 million American workers filed new unemployment claims. The following week, 6.6 million more did the same. Middle-class Americans who placed their retirement savings in the stock market have recently experienced huge losses. Even before the pandemic, black Americans on average had only 7 percent of the wealth of white ones (Native Americans, even less). Among non-Hispanic white Americans, deaths from drug abuse, suicide, and alcohol continue to rise. Nearly 2.5 million people are incarcerated. Trust in existing institutions (including the Electoral College and Congress) was already vanishingly small.
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  • As sources of information proliferated, long-standing sources of authority (monarchy, aristocracy, and the established Church) feared losing power and turned reactionary. At the same time, the longer-term transformations on which these social and cultural innovations were built—the growth of European overseas empires and the emergence of settler colonialism, massive silver exports from South and Central America, the trans-Atlantic slave trade—continued, and in ever more brutal forms. More than 6 million Africans were sold into slavery in the 18th century—a time that some still call the “Age of Enlightenment.”
  • Today, as in the 1790s, an old order is ending in convulsions. Even before the coronavirus prompted flight cancellations and entry bans, climate activists were rightly telling us to change our modes and patterns of travel. Even before nonessential businesses were shut by government orders, online shopping and same-day deliveries were rapidly remaking retail commerce, while environmental concerns and anti-consumerism were revolutionizing the fashion industry.
  • real revolutions are the ones that nobody sees coming
  • The men and women who made the French Revolution—a revolution which, in a few short and hectic years, decriminalized heresy, blasphemy, and witchcraft; replaced one of the oldest European monarchies with a republic based on universal male suffrage; introduced no-fault divorce and easy adoption; embraced the ideal of formal equality before the law; and, for a short time at least, defined employment, education, and subsistence as basic human rights—had no model to follow, no plans, no platform agreed upon in advance. As the UCLA historian Lynn A. Hunt has argued, they made it up as they went along. Yet for more than two centuries, elements of their improvised politics have been revolution’s signature features: a declared sovereignty, devised symbols, an anthem, war. At the junction Americans face today, however, we need to imitate not the outcome of the French revolution but the energy, creativity, and optimism of the French revolutionaries.
  • In hindsight a revolution may look like a single event, but they are never experienced that way. Instead they are extended periods in which the routines of normal life are dislocated and existing rituals lose their meaning. They are deeply unsettling, but they are also periods of great creativity.
Ed Webb

How Afghanistan's President Helped His Brother Secure Lucrative Mining Deals with a U.S... - 0 views

  • In 2019 SOS International (SOSi), a Virginia company with links to the U.S. military, won exclusive access to mines across Afghanistan. President Ashraf Ghani’s brother is a major shareholder of a SOSi subsidiary. President Ghani granted this SOSi subsidiary, Southern Development, rights to buy artisanally mined ore. Southern Development operates a mineral processing plant on the outskirts of Kabul. The inroads made by SOSi and Southern Development into Afghanistan’s mining sector have roots in a 2011 initiative by U.S. special forces to work illegally with members of a pro-government Afghan militia on mining in Kunar province. Although shut down after an inquiry, these Kunar projects have since been quietly restarted as a private venture, and are benefitting those closest to the president.
  • The Taliban and other armed groups have battled both the central government and each other for control of the mines, using them to fund their insurgencies. Even former U.S. President Donald Trump coveted Afghanistan’s gold, lithium, uranium, and other mineral riches. In 2017, Trump was persuaded to keep troops in the country by its president, Ashraf Ghani, who dangled the prospect of mining contracts for American companies.
  • In 2011, American Special Forces operators introduced an eastern Kunar paramilitary commander, Noor Mohammed, and his deputy, known as Farhad, to a small Pentagon business development office called the Task Force for Stability and Business Operations. The Task Force, which operated in Iraq and Afghanistan, aimed to create jobs for locals in key industries like mining as part of a broader counterinsurgency strategy. In theory, good jobs would stop Afghans from joining the militants. “Their mission, to create small-scale, sustainable mining operations for the Afghans, was a solid fit to our FID [Foreign Internal Defense] mission,” said Heinz Dinter, a former Special Forces officer. The commandos asked the Task Force to help the two local warlords, who were illegally dealing in chromite, a valuable anti-corrosion additive used in stainless steel and aircraft paint. Afghan chromite is prized for its exceptional purity. With a crusher provided by the Pentagon, Mohammed and Farhad began to process their ore at Combat Outpost Penich, a small NATO base in eastern Kunar.
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  • public officials and leaders of government-aligned militias such as Mohammed and Farhad are forbidden by law to hold mineral rights.
  • “There’s no conceivable way extraction or export could be done without the collusion of insurgent groups,”
  • Beyond its powerful American connections, SOSi was well positioned for growth because it wasn’t afraid to get dirty. In his thesis, Hartwig recommended offering the Afghan government “some type of benefit” to win support from “key leaders” for future mineral projects. Through its subsidiary, that is exactly what SOSi did, apparently cutting the president’s brother in on the deal.
  • SOSi’s transition to a military contracting powerhouse came through its connections to the office of retired Army General David Petraeus
  • Bush administration Deputy Secretary of Defense Paul Wolfowitz, an architect of the Iraq invasion, and other U.S. defense officials also joined the SOSi board
  • “The U.S. government cannot directly do business with Afghan companies, so it goes through SOSi, a private entity, to secure deals with all the major Afghan media networks to broadcast Resolute Support and NATO communication material,”
  • Task Force officials remained bullish on strategic mining long after the project was closed down; some even saw it as a possible form of Taliban rehabilitation. “The only way to realistically economically reintegrate the Taliban back into Afghanistan’s economy is with mining,” Emily Scott King, the former director of the Task Force’s natural resource group, said in 2019 at a special operations policy forum in Washington, D.C. “It can work within the hierarchy that the Taliban is used to, with commanders running small processing facilities or becoming the brokers for small miners.”
  • A Southern Development document on file in the Ras al-Khaimah Offshore Free Zone, the secretive United Arab Emirates jurisdiction where its full ownership records are held, confirms that on June 17, 2014 — three days after Ashraf Ghani was elected president — SOSi owned 80 percent of the company, with Hashmat Ghani owning the remainder
  • Hashmat Ghani’s son, Sultan Ghani, listed a short SOSi internship in 2013 on his resume. Sultan Ghani now runs The Ghani Group, the family’s privately owned conglomerate with interests that include mining and military contracting. He apparently keeps in touch with old friends at SOSi. A photo uploaded to LinkedIn during the summer of 2019 shows him meeting with SOSi Vice President Helmick, and the account features praise for his interpersonal skills posted by another SOSi executive
  • Buying chromite from unlicensed local mines remains illegal in Afghanistan, but Ashraf Ghani’s election opened a rich new vein of opportunity. While the American Task Force and his own son once urged legalization of artisanal mining, the president has instead redistributed bureaucratic power, enabling extralegal activities.
  • A document leaked to OCCRP reveals that on December 26, 2019, the High Economic Council, in a process overseen by the president, authorized Southern Development to take on a project far larger than the original task force project in Kunar. The company received a mineral processing permit and permission to purchase artisanal chromite in six Afghan provinces: Khost, Paktia, Paktika, Kunar, Ghazni and Maidan Wardak.
  • In the spring of 2018, more than a year before Afghanistan’s High Economic Council signed over the rights to the chromite, Southern Development’s Kabul office had imported new crushing equipment from South Africa for its Afghan operation. In fact, Global Venture and its consultants, according to Scott King, had since 2013 been “advising private sector investors” with mining interests in Afghanistan about how to “quietly” restart initiatives like the Kunar chromite project. At the same 2019 Special Operations forum, she highlighted a mysterious $10 million investment into what she claimed were “legal” Afghan chromite mines.
  • Until late 2019, the company falsely claimed to have won chromite exploration rights in Kabul province from Afghanistan’s Ministry of Mines and Petroleum. The claim disappeared from the website after reporters asked about it.
  • Mining takes time to generate profits and it’s unclear if SOSi has started to see a return on its investments yet, but the price of chromite ore hovers around $200 per ton and with a worldwide market for stainless steel, Southern Development could become highly profitable. Meanwhile, its success is already spawning copycats.
  • Another American military contractor, DGCI, which is under federal investigation for its work in Iraq and Afghanistan, hired another former Task Force staffer in 2019, in an ultimately unsuccessful attempt to mine lithium in Afghanistan’s Ghazni province. Since then, DGCI has also tried to cultivate a relationship with the Ghani family, holding public charity events with Sultan Ghani.
Ed Webb

Turkey's Invasion of Syria Makes the Kurds the Latest Victims of the Nation-State - 0 views

  • The global system is built around sovereign states, and it shows. This is an enormous problem for groups that define themselves, or are defined by others, as distinct from the country within whose borders they happen to reside, and it’s also terrible as a framework for navigating the global politics of a rapidly changing world.
  • Sovereignty is usually traced back to the 1648 Treaty of Westphalia, which was pivotal in shifting conceptions of government toward a secular state with entire authority inside inviolable territorial borders. Designed as a diplomatic solution to catastrophic religious wars among feudal, monarchical territories, its tenets have persisted into the modern world largely due to the entrenched power of those states, jealously guarding their unfettered rule over their slice of geography.
  • as the power of monarchy eroded and European countries needed something else to inspire loyalty among their citizens, the ideal of the nation-state—that the people within those arbitrary borders would feel some sort of collective identity—became popular. This led to more wars as European states expelled or converted anyone who didn’t fit their concept of nation: not French enough, not German enough, not Italian enough. They also spread this idea to their colonies, exporting successive waves of destructive conflicts.
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  • governments still harass, expel, and attempt to exterminate minority groups in the name of the nation-state ideal, and sovereignty still gives them carte blanche to do so
  • insistence on the nation-state as the only legitimate and legal actor on the world stage leaves substate groups vulnerable to exploitation, attack, and shady dealing
  • the issue isn’t limited to the Kurds. In the news this week are Rohingya refugees stuck between two countries that don’t want them, Uighurs forced into detention camps, and Catalan protests for independence. History offers even more parallels, from the United States repeatedly breaking treaties with Native Americans to World War II, in which the United States was willing to go to war to protect the territorial integrity of France along with the people in it but was not willing to accept refugees fleeing the Holocaust. The nation-state system is designed to protect itself and its members, rather than people
  • nonstate groups are at a particular disadvantage. Though they may hold de facto territory, they don’t hold it legally; they have no international rights to a military or to self-defense. They have no seat in international or supranational organizations, leaving them outside global decision-making and with no recourse in attempting to hold states accountable for their actions. Their leaders are not accorded head of state status, and they have no official diplomats. Since even the most generous autonomy statutes don’t confer the protections of statehood, separatist groups are often willing to risk high losses to win independence, fueling conflicts
  • Substate groups are not the only example that the system is failing. Nonstate actors from terrorist groups to multinational corporations have increasing impacts on global politics, and traditional geopolitical theory does not do a great job of dealing with them. Even for bilateral issues, the nation-state is not always the most useful unit of analysis.
  • States remain reluctant to break the collective agreement on the legitimacy of sovereignty. They are similarly reticent about adding more states to their exclusive club, in part because it might suggest to dissidents within their own area that renegotiation of borders is possible
  • it remains difficult to garner international recognition for a new state. That leaves mediators attempting to convince vulnerable groups to settle for something less, in the face of all evidence that a recognized state is their best chance for security and self-determination.
  • While interstate conflicts have fallen over the past 50 years, intrastate fighting has soared. These wars disrupt trade and world politics, weaken countries, and raise uncertainty in neighboring states. On the other hand, states have proved themselves adept at using substate actors to further their own interests within foreign countries while evading responsibility for it, from the United States arming the Contras in Nicaragua to Sudan and Chad supporting each other’s rebel movements.
  • Russian elites attempted to tip the scales of U.S. leadership in order to win more modern spoils: unfettered soft power in their region, access to trade, and, notably, the ability to infringe on other countries’ sovereignty without consequences.
  • the United States—and other nation-states—has little or no control over multinational corporations, with their complex legal structures and tenuous ties to geography
  • we need to recognize both the rights of substate groups and the legal responsibilities of extrastate entities and create mechanisms in the international system to include them in the halls of power
Ed Webb

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

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