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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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  • Fiscal crises caused by falling prices limit governments’ room for domestic maneuver and force painful political choices
  • 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
  • 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
  • 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

Can debt relief save the Red Sea's coral reefs? - 0 views

  • despite contributing little to greenhouse gas emissions, debt-laden developing countries appear likely to suffer the costliest effects of global warming.
  • A landmark deal in Belize may provide a path for the Arab world’s poorest countries to tackle these vexing challenges in tandem, combining debt relief with climate change mitigation. The Nature Conservancy, an environmental organisation with global reach, helped Belize obtain over $350 million to service its government debt in exchange for the Central American country dedicating more resources to environmental protection and marine conservation.
  • Beyond the significance of a developing country receiving debt relief for toughening environmental policies, Belize oversees a series of coral reefs whose preservation the Nature Conservancy coded into the historic agreement. Arab countries such as COP27 host Egypt likewise have a number of coral reefs, among them species that have demonstrated impressive resilience against global warming.
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  • saving Egypt’s coral reefs will require greater action, likely from world powers
  • A 2019 study found that climate change could cost Egypt as much as 95 percent of its revenue from tourism to the coral reefs, so world powers will likely have to come up with millions or even billions of dollars more. Egypt hardly finds itself alone. In the first half of 2022, the government debt of Jordan—home to its own prized set of coral reefs in the Gulf of Aqaba—reached $41 billion, 88.4 percent of the kingdom’s gross domestic product. Meanwhile, in Tunisia, coral reefs near the resort destination of Tabarka appear set to suffer as climate change batters the country and the Tunisian economy falters, depriving authorities of the funds necessary to fund marine conservation.
  • pairing debt relief with marine conservation, as well as more general measures for environmental protection and climate change mitigation, a boon for Egypt, Jordan, Tunisia, and other coral-rich countries in the Arab world
Julianne Greco

For a Bounced Check in Dubai, the Penalty Can Be Years in Jail - NYTimes.com - 0 views

  • For more than a year, prosecutors have been cracking down on the corruption and kickbacks that thrived during the boom years in this Persian Gulf city-state
  • But alongside the con artists and crooks, a rising number of businesspeople have been sent to jail for going into debt. Bouncing a check is a criminal offense here. That fact has begun raising questions about the fairness of Dubai’s laws, especially among the foreigners who make up about 90 percent of the population.
  • he criminalization of debt has put a formidable weapon in the hands of landlords, banks and other creditors, who can send someone to jail with a single document showing a check has been returned for insufficient funds. It has also complicated Dubai’s efforts to recover from the financial crisis by sending many legitimate but struggling businesspeople to jail, where they find it even harder to repay their debts.
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  • many expatriates to flee when they are in financial trouble rather than filing for bankruptcy and setting out a repayment schedule
  • Some financial analysts say the risk of arrest for debt could also drive away potential new investors and businesspeople as Dubai struggles to recover from the current economic slump.
  • The root of the problem, analysts say, is that Dubai’s legal structures have not kept pace with its frenetic development
  • Dubai’s laws are largely based on Egyptian civil law and Islamic law, or Shariah, with no real effort to encompass the tremendous volume of its commerce.
  • Some efforts have been made to change the system, though analysts worry that they may fade as the economic crisis recedes.
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    It's alarming how easy it is to commit a criminal offense. It is not hard to get debt or accumulate it in the business world, especially when the economy is not as good, so it's really not surprising that this could collapse Dubai's economy with the now minimal inclinations for businesses to take risks and low incentives for foreign investment.
Morgan Mintz

Debt in Dubai Tests Laws Of Islamic Financing - NYTimes.com - 0 views

  • The debt crisis in Dubai is about to test one of the fastest-growing areas in banking, Islamic finance, and put the city-state’s opaque judicial system on trial, according to bankers and experts in finance.
  • because there have been few major defaults in this market, there is little precedent for arbitrating the unique terms of these instruments.
  • Shariah-compliant investments prohibit lenders from earning interest, and effectively place lenders and borrowers into a form of partnership. Yet there are no consistent rules about who gets repaid first if a company defaults on such debt
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  • bondholders could insist on being repaid before banks, upending the traditional bankruptcy hierarchy.
  • A default would also pose a major new test for Dubai’s courts, which have never handled a major bankruptcy of one of the government’s own companies, lawyers and bankers said.
Ed Webb

The Ouarzazate Solar Plant in Morocco: Triumphal 'Green' Capitalism and the Privatizati... - 0 views

  • a solar mega-project that is supposedly going to end Morocco's dependency on energy imports, provide electricity to more than a million Moroccans, and put the country on a “green path.”
  • This analysis examines the project through the lens of the creation of a new commodity chain, revealing its effects as no different from the destructive mining activities taking place in southern Morocco.
  • What seems to unite all the reports and articles written about the solar plant is a deeply erroneous assumption that any move toward renewable energy is to be welcomed. And that any shift from fossil fuels, regardless of how it is carried out, will help us to avert climate chaos. One needs to say it clearly from the start: the climate crisis we are currently facing is not attributable to fossil fuels per se, but rather to their unsustainable and destructive use in order to fuel the capitalist machine. In other words, capitalism is the culprit, and if we are serious in our endeavors to tackle the climate crisis (only one facet of the multi-dimensional crisis of capitalism), we cannot elude questions of radically changing our ways of producing and distributing things, our consumption patterns and fundamental issues of equity and justice. It follows from this that a mere shift from fossil fuels to renewable energy, while remaining in the capitalist framework of commodifying and privatizing nature for the profits of the few, will not solve the problem. In fact, if we continue down this path we will only end up exacerbating, or creating another set of problems, around issues of ownership of land and natural resources.
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  • the acquisition of 3000 hectares of communally owned land to produce energy
  • "green grabbing"
  • the transfer of ownership, use rights and control over resources that were once publicly or privately owned –or not even the subject of ownership– from the poor (or everyone including the poor) into the hands of the powerful
  • This productivist creation of marginality and degradation has a long history that goes back to French colonial times. It was then that degradation narratives were constructed to justify both outright expropriation of land and the establishment of institutional arrangements based on the premise that extensive pastoralism was unproductive at best, and destructive at worst.
  • The land, sold at a cheap one Moroccan dirham per square meter was clearly worth a lot more. As if things were not bad enough, the duped local population were surprised to find out that the money from the sale was not going to be handed to them, but that it would be deposited into the tribe's account at the Ministry of Interior. Additionally, the money would be used to finance development projects for the whole area. They discovered that their land sale was not a sale at all: it was simply a transfer of funds from one government agency to another.
  • various deceptive laws with colonial origins that have functioned to concentrate collective land ownership within the hands of an individual land representative, who tends to be under the influence of powerful regional nobles
  • meetings masquerading as a "consultation with the people" were only designed to inform the local communities about a fait accompli rather than seeking their approval
  • the discursive framework rendered it "marginal" and open to new "green" market uses: the production of solar power in this case at the expense of an alternative land use - pastoralism - that is deemed unproductive by the decision-makers. This is evident in the land sale that was carried out at a very low price.
  • privatizations in the renewable energy sector are not new as of 2005, when a royal holding company called Nareva was created specifically to monopolize markets in the energy and environment sectors and ended up taking the lion's share in wind energy production in the country
  • he government had effectively privatized and confiscated historical popular sovereignty over land and transformed the people into mere recipients of development; development they are literally paying for, provided it would one day materialize, of course
  • There is no surprise regarding the international financial institutions' (IFIs) strong support for this high-cost and capital-intensive project, as Morocco boasts one of the most neoliberal(ized) economies in the region. It is extremely open to foreign capital at the expense of labor rights, and very advanced in its ambition to be fully integrated into the global marketplace (in a subordinate position, that is).
  • The World Bank’s disbursement levels to Morocco reached record levels in 2011 and 2012, with a major emphasis of these loans placed on promoting the use of Public Private Partnerships (PPPs) within key sectors
  • It seems that production of energy from the sun will not be different and will be controlled by multinationals only interested in making huge profits at the expense of sovereignty and a decent life for Moroccans.
  • The idea that Morocco is taking out billions of dollars in loans to produce energy, some of which will be exported to Europe when the economic viability of the initiative is hardly assured, raises questions about externalizing the risk of Europe's renewable energy strategy to Morocco and other struggling economies around the region. It ignores entirely what has come to be called "climate debt" or "ecological debt" that is owed by the industrialised North to countries of the Global South, given the historical responsibility of the West in causing climate change
  • The biggest issue with this technology is the extensive use of water that comes with the wet cooling stage. Unlike photovoltaic (PV) technology, CSP needs cooling. This is done either by air cooled condensers (dry cooling) or high water-consumption (wet cooling). Phase I of the project will be using the wet cooling option and is estimated to consume from two to three million cubed meters of water annually (Kouz 2011). Water consumption will be much less in the case of a dry cooling (planned for phase II): between 0.73 and 0.88 million cubed meters. PV technologies require water only for cleaning solar panels. They consume about 200 times less water than CSP technology with wet cooling and forty times less water than CSP with dry cooling.
  • Even if the solar plant is only using one percent of the average dam capacity, the water consumption is still significant and can become a thorny problem at times of extreme drought when the dam contains only fifty-four million cubed meter. At such times, the dam waters will not be sufficient to cover the needs of irrigation and drinking water,  making the water usage for the solar plant deeply problematic and contentious.
  • in an arid region like Ouarzazate, this appropriation of water for a supposedly green agenda constitutes another green grab, which will play into and intensify ongoing agrarian dynamics and livelihood struggles in the region.
  • If the Moroccan state was really serious about its green credentials, why is it then building a coal-fired power plant at the same time, which represents an ecocide in-waiting for the already-polluted town of Safi? Why is it also ignoring the devastating environmental and social effects of the mining industry in the country? One notable example is the long-standing community struggle in Imider (140 kilometres east of Ouarzazate) against the royal holding silver mine (Africa's most productive silver mine), which is polluting their environment, grabbing their water, and pillaging their wealth.
Ed Webb

Egypt vows to cut military's outsized role in economy under IMF bailout | Financial Times - 0 views

  • Egypt has committed to reducing the military’s role in the economy as part of its $3bn IMF bailout package, as the Arab state grapples with a foreign currency crisis, a weakening pound and rising inflation.
  • Under the policy, the government would define sectors that are “strategic” while gradually withdrawing the state from “non-strategic sectors”, including through asset sales.
  • Sisi’s regime has previously pledged to reduce the military’s role in the economy and privatise army-owned companies, but little progress has been made. Businessmen hope the scale of the current crisis will now force the authorities to act.
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  • Economists and Egyptian businessmen have long complained that the military’s role in the economy crowded out the private sector and scared away foreign investors. The army, the country’s most powerful institution, is exempted from some taxes and its businesses are notoriously opaque.
  • Cairo was forced to go to the IMF last year after foreign investors withdrew about $20bn from Egypt’s debt markets around the time of Russia’s invasion of Ukraine. The capital outflow triggered a foreign currency crisis and forced Cairo to turn to Gulf states for a multibillion-dollar bailout.
  • Egypt had been paying the world’s highest real interest rate to attract the portfolio inflows it used to finance its current account deficit.
  • the weak pound has added to inflationary pressures. Core inflation rose to 24.4 per cent in December
Ed Webb

25 years on, remembering the path to peace for Jordan and Israel - 0 views

  • When the secret talks between Israel and the Palestine Liberation Organization (PLO) were divulged in 1993, Jordan’s King Hussein felt betrayed. For years he had been secretly meeting with the Israelis to broker peace; now he discovered that they were secretly meeting with the Palestinians and making a deal without consulting him. The PLO, fellow Arabs, had not consulted the king either. He was devastated.
  • In September 1993, Rabin secretly came across the border from Eilat to Aqaba to address King Hussein’s concerns and assure the Jordanians that they would be kept informed about the future of the Oslo process. The meeting was arranged by Efraim Halevy, the deputy director of the Israeli intelligence service, the Mossad. Hussein had been dealing with the Mossad and Halevy for years as a trusted clandestine back-channel
  • Clinton supported the peace process enthusiastically. A Jordanian treaty would get his support and help him sell the revival of bilateral relations with Jordan to Americans still angry over the Iraq war, especially in Congress
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  • Jordan had long held back from a peace treaty with Israel because it did not want to get in front of the Palestinians. It did not want a separate treaty with Israel, like President Anwar Sadat had done for Egypt. But now Arafat was engaging in direct talks with the Israelis to make a peace agreement: Jordan would not be alone. Even the Syrians were engaging with Israel via the Americans. Jordan was free to negotiate a peace treaty with Israel after decades of clandestine contacts begun by Hussein’s grandfather King Abdullah without fear of a backlash from the other Arabs
  • On July 25, 1994, Clinton read the declaration on the White House lawn and Rabin and Hussein signed it. It terminated the state of war. Israel formally undertook to respect the special role of the Hashemite Kingdom of Jordan in the Muslim holy shrines in Jerusalem. All three gave speeches, but the king’s address got the most attention. His speech included a clear and unqualified statement that the state of war was over. He spoke of the realization of peace as the fulfillment of his life-long dream.
  • Rabin had met with the king secretly for almost two decades
  • The Rabin-Hussein relationship was crucial to the success of the negotiations. Both trusted the other. Hussein saw Rabin as a military man who had the security issues under his command. He was convinced that he had a unique opportunity to get a peace treaty and Rabin was central to the opening.
  • The king also saw the negotiation process as almost more of a religious experience than a diplomatic solution to the passions of the Arab-Israeli conflict. He spoke movingly of restoring peace between the children of Abraham. He wanted a warm peace, not the cold peace between Egypt and Israel.
  • Jerusalem was also a core issue for the Hashemite family. Despite losing physical control of East Jerusalem in 1967, the king had retained influence in the Muslim institutions that administered the holy sites in the city. The preservation of Jordan’s role in the administration of the third holiest city of Islam was a very high priority of Hussein then, and still is for his son King Abdullah today
  • Clinton had studied the Jordanian wish list carefully. The top priority was for debt forgiveness, amounting to $700 million dollars. Clinton told Hussein that this would be a tough lift on Capitol Hill. If Hussein would meet Rabin at a public ceremony in the White House hosted by the president, Clinton said he could get the debt relief and progress on Jordan’s other requests.
  • The king told his aides that this was the best meeting he had had with an American president since his first with Dwight D. Eisenhower in 1959. On July 9, the king told the Jordanian parliament that it was time for an end to the state of war with Israel and for a public meeting with the Israeli leadership. He wanted the meeting to take place in the region.
  • The Jordanian and Israeli peace teams met publicly on the border to start the rollout, followed by a foreign ministers meeting at the Dead Sea in Jordan — a way to bring Peres into the photo op but not the negotiations.
  • The Americans got a copy only on the night before the White House ceremony.
  • Jordan and Israel would keep the Americans informed, but the king did not want Washington using its leverage in a negotiation process given the Americans’ closer ties to Israel.
  • Clinton spoke of the king’s extraordinary courage in pursuit of peace. He compared him to his grandfather, who had been assassinated for his talks with Israel
  • Rabin and Hussein addressed a joint session of Congress. Hussein spoke about his grandfather’s commitment to peace. “I have pledged my life to fulfilling his dream.” Both received standing ovations. Behind the scenes, Halevy was lobbying Congress for debt relief. He returned to the region on the royal aircraft with the king and queen.
  • Teams from the two countries met every day, mostly at the crown prince’s house in Aqaba. Hassan supervised the day-to-day talks for his brother.
  • The toughest issues were land and water.
  • The final issues were addressed at another Rabin-Hussein summit meeting in Amman on the evening of October 16. The two leaders got down on their hands and knees to pour over a large map of the entire border from north to south and personally delineated the line. Two small areas got special treatment: Israel would lease the two areas from Jordan so Israeli farmers could continue access to their cultivation. By 4am, it was done.
  • On October 26, 1994, Clinton witnessed the signing of the treaty on the border by the prime ministers of Israel and Jordan. It was only the second visit to Jordan by a sitting American president
  • Many Jordanians felt it was dishonorable to make peace with Israel while the occupation of the West Bank continued. Some argue that it legitimates the Israeli occupation. It has gotten progressively more unpopular in the 25 years since the signing ceremony
  • Two years later, Prime Minister Benjamin Netanyahu dispatched a Mossad hit team to Amman to poison a Hamas leader. The botched murder attempt created a crisis in the new peace, and Halevy had to be called back from his new job in Brussels as ambassador to the European Union to smooth out the disaster and get the Mossad team released. He would then be appointed the head of the Mossad.
  • Hussein never trusted or respected Netanyahu after it, and the peace has been cold ever since
  • Hussein’s strategic goal of restoring bilateral relations with the United States was achieved
  • in December 1999, I traveled with Clinton and three former presidents to attend Hussein’s funeral in Amman in a strong demonstration of America’s commitment to Jordan.
  • The Trump administration has tilted dramatically toward Israel on all the issues that concern Jordanians about the future of the Palestinian issue, especially the status of Jerusalem. The movement of the American embassy to Jerusalem was a particularly important shock to the peace treaty. If Israel begins to annex parts of the West Bank, as Netanyahu has promised, the Jordanians will be in a corner. The treaty may be more endangered today than ever before.
Ed Webb

The Pandemic Could Spark a New Refugee Crisis by Destabilizing Egypt, Turkey, Tunisia, ... - 0 views

  • middle-income countries—including Turkey, Ukraine, Egypt, and Morocco—do not benefit from global initiatives like the debt relief programs led by the International Monetary Fund (IMF), which target less developed nations. Yet they lack the domestic resources to rebound effectively from the deep recession that awaits them. The rising risk aversion in global markets has constrained their debt-raising options. Their economic well-being has further been undermined by the coronavirus-related economic downturn, raising fears about economic dislocation and political instability.
  • the economic resilience of Europe’s neighbors is clearly at risk. A major revenue stream for many of Europe’s southern and eastern neighbors is tourism. In 2018, tourism revenues as a share of total exports of goods and services reached 41 percent in Jordan and 25 percent in Egypt, according to the United Nations World Tourism Organization.
  • In absolute numbers, Turkey’s tourism revenues including international transport were the highest at $37 billion, amounting to around 5 percent of GDP. This important revenue source is now set to evaporate as the virus takes its toll. The collapse of the tourism industry will also have significant repercussions for the sustainability of employment. For Jordan, Morocco, and Tunisia, tourism provided for around 7 percent of total employment, compared with the global median of 3.8 percent.
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  • Europe’s neighbors are set to endure even more hardship when it comes to trade imbalances as their exports are due to collapse. They will be among the most affected from the ongoing fall in consumer demand in Europe given their heavy reliance on the continental market. The European Union’s share of total exports stands at some 65 percent for Morocco, 50 percent for Turkey, and 43 percent for Ukraine.
  • a perfect storm on Europe’s borders. The combination of recessionary economics, balance of payments difficulties, and surging unemployment has created a formidable challenge that will jeopardize domestic social contracts
  • The ensuing political and economic instabilities would not only create the conditions for the rise of radicalization in these afflicted societies but also trigger new cross-border movements and refugee flows across the Mediterranean.
  • In the absence of a global consensus, EU governments should consider shifting their IMF-held SDRs to financially strained neighboring countries. That would amount to a financial stimulus of about $95 billion with no fiscal impact on EU and national budgets.
  • the European Central Bank (ECB) should be more actively involved in establishing swap arrangements with the central banks of partner countries. Under such a scheme, beneficiary countries would obtain euros from the ECB against a collateral in their own currency. These arrangements would provide beneficiary countries with foreign exchange liquidity and replenish their reserves
Ed Webb

Cash and contradictions: On the limits of Middle Eastern influence in Sudan - African A... - 1 views

  • In Sudan, the revolutionaries who overthrew President Omar al-Bashir and who continue to organise are well aware of the threat posed by neighbouring Arab countries. Protesters’ murals show the people rejecting the interfering hands of Saudi Arabia and the United Arab Emirates (UAE). One of the most popular chants is “Victory or Egypt”, voicing activists’ determination not to succumb to a military counter-revolution as happened in their northern neighbour.
  • many Sudanese believe that the 3 June crackdown in which scores of protesters were killed only came after the green light from Saudi Arabia, the UAE and Egypt
  • In this struggle between the “Pax Africana” and Arab authoritarians, there’s no doubt that the democrats have the weaker hand. But not everything is going the Arab troika’s way.
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  • Sudan wasn’t following the script of Bahrain, where the demonstrators dispersed after a single crackdown, or Egypt, where the army took control through co-option and repression.
  • A major split between Saudi Arabia and the UAE was on show in July when the latter abruptly withdrew most of its forces from Yemen. No official explanation was given, but the decision was evidently not coordinated with Saudi Arabia, which remains bogged down in an intractable war. The UAE’s decision also shows it can be mercurial and that its policies towards the Horn of Africa may be less strategic and more opportunistic than commentators have assumed.
  • Egypt prides itself on understanding Sudan and sees Saudi Arabia and UAE as newcomers seeking influence solely by dispensing money. Egypt limited its demands on Sudan to handing over Egyptian Islamists in exile, suspending the deal for Turkey to develop a naval base, and ceding its territorial claim to the Halaib Triangle.
  • As Arab countries find themselves pulled in to the internal negotiations among the Sudanese, they will face another potential point of contention. Sudan doesn’t just need democracy, but peace. This means a role for the Islamists both in Khartoum and the provinces. For a decade, the custodian of the Darfur peace process has been Qatar, the troika’s arch rival, and it will be impossible to ignore Qatar’s role or that of Sudan’s diverse constituency of Islamists. Some of these dynamics are already playing out and reveal the lack of a common strategy among the Arab troika
  • After the secession of South Sudan in 2011, Sudan lost 75% of its oilfields and an even greater proportion of its hard currency earnings. The following year, it literally struck gold and within a few years, gold was providing 40% of Sudan’s exports. As much as a third of it, however, came to be smuggled to Libya, Chad or directly by plane to the region’s biggest gold market in Dubai. The government in Khartoum, desperate to control the commodity, responded by using the Central Bank of Sudan as its sole buying agent, paying above the market price to gold traders and printing money to cover this outlay. Buying gold to convert to hard currency became the engine of Sudan’s inflation, which skyrocketed. By 2018, the price of essential commodities such as bread and fuel was so high relative to stagnant wages that the people across the country took to the streets to protest.
  • Hemedti. His RSF militia controls the gold mines and he personally owns a number of concessions. Through Sudan’s monetary policy, vast resources were transferred from wage earners in the centre of the country to militiamen and gold traders in the peripheries
  • Hemedti has also benefited massively from providing mercenaries, which may be Sudan’s second biggest source of foreign exchange today. A few months after the Saudis launched their war in Yemen in March 2015, Sudan volunteered to send troops. The first contingent was a battalion of the regular army, but then Hemedti struck a parallel deal to dispatch several brigades of RSF fighters. Within a year, the RSF comprised by far the biggest foreign contingent fighting in Yemen with at least 7,000 militiamen. Hemedti was paid directly by Saudi Arabia and the UAE for this service. He says he deposited $350 million in the Central Bank, but has not said how much he kept to himself for his own enrichment or political spending.
  • the Central Bank of Sudan has become an instrument for Hemedti’s political finance. And since becoming the central actor in Sudan’s ruling cabal in April, he has exerted an even tighter grip on gold production and exports while moving aggressively into other commercial areas. He has increased the RSF’s deployment in Yemen and sent a brigade to fight in Libya alongside General Khalifa Haftar, who is backed by Egypt and the UAE, almost certainly in return for Emirati financial rewards. Hemedti is also expanding his family business conglomerate, the Al-Junaid companies, and running his political business on the basis of personally handing out cash to key constituents such as tribal chiefs, the police, and electricity workers.
  • none of this addresses Sudan’s macroeconomic crisis: its rampant inflation, rapidly increasing arrears on international debt, and ostracism from the dollar-based international financial system
  • Sudan’s Gulf patrons are bailing out the country with a $200 million monthly subsidy in cash and commodities, but the bailout amounts needed will quickly become too big even for the oil-rich Gulf States’ deep pockets
  • a clash between Hemedti’s political market logic and Sudan’s macroeconomy is looming.  The Sudanese technocrats associated with the FFC are well aware of this, which is why the economists called upon to put themselves forward for cabinet positions have been reluctant to agree. There is a race between Hemedti’s consolidation of power and a re-run of the economic crisis and protests that led to al-Bashir’s downfall.
  • as Sudan’s economic crisis deepens, they will have to turn to the IMF and western creditors for assistance
Ed Webb

How Africa will become the center of the world's urban future - Washington Post - 0 views

  • by the end of this century, Africa will be the only continent experiencing population growth. Thirteen of the world’s 20 biggest urban areas will be in Africa — up from just two today — as will more than a third of the world’s population.
  • Set to become the world’s most populous city, Lagos faces all the challenges rapid growth poses, which can be boiled down to one: planning. Can solutions outpace the weight tens of millions of new inhabitants will place on a city that is low-slung and dense, situated on polluted lagoons and rivers, and short on public services?
  • Khartoum, Sudan: Unstable states like Sudan crumble first in their hinterlands, and in those moments of crisis, cities are beacons of safety, places for people to regroup, build new identities and forge political movements — even revolutions — that aim to bring peace back to places they had to abandon.
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  • Kinshasa, Congo: In a city whose geography still reflects segregationist colonial-era planning, where a handful of oligarchs lead gilded lives while the poor navigate systems broken by corruption and neglect, we get a glimpse of what it takes to break inequality’s shackles.
  • Mombasa, Kenya: The designs of foreign powers have molded African cities for centuries, especially along the continent’s coasts. From narrow-alleyed old towns to gleaming new container-shipping terminals, port cities like this one are layered with evidence of how budding empires, in the Arab world, Europe and now China, sought to remake them.
  • Abidjan, Ivory Coast: Despite fearmongering that Africa’s growing population will flood into wealthier parts of the world, cosmopolitan cities like this one draw most of Africa’s migrants and serve as models of tolerance, welcoming immigration policies and a reinvigorated Pan-African identity.
  • The traffic is a manifestation of what Lagosians fear most for their city: There is no plan. Lagos will balloon to 30 million, then 50 million, maybe even 100 million people, and meanwhile the government will keep unveiling new visions for the city that never come to fruition. Many doubt even its simplest promises, such as the impending inauguration of a single subway line that was supposed to open a decade ago.
  • Lagos emerges as the world’s most populous city at some point between now and 2100, in study after study. Changing the inputs affects only how soon and by how much.
  • A study published last year in the Lancet forecasts that Nigeria will become more populous than China by the end of the century, as birthrates rapidly shrink in some parts of the world — East Asia, eastern and southern Europe, the Caribbean — and level off in others, such as the United States, which is projected to have a similar population in 2100 as now.
  • Ethiopia, the Democratic Republic of Congo and Tanzania are all forecast to join Nigeria among the 10 most populous countries by 2100. North Africa and southern Africa, while continuing to grow, will do so at much lower rates than the rest of the continent.
  • “The people who govern this city are brutes, banning this and that left and right,” said Olushola, who, like countless others, pays off police officers to continue working. “We are providing a service that millions of people need 24/7. There is no alternative except to walk, and they ban us.”
  • Lawanson and other researchers cautioned against believing wholesale in projections of 80 million or even 100 million people in greater Lagos. Not because that’s infeasible, but because the city is already so strained, there’s no guarantee that people will continue to find the kind of economic opportunity that draws them here now.
  • in a city where the first and only major bridge over the lagoon was built decades ago, his assurance that not one but five more are being planned is scoffed at by many Lagosians — as are the four metro lines he says are “in the pipeline.”
  • For half a century now, displacement by catastrophe has been the main driver of growth in Khartoum. This is the biggest of a downtrodden club of African cities where people have brought their lives on donkey carts or in rickety trucks, far from hometowns abandoned because of conflict or climate change — or both.
  • “We cannot be like Dubai, which is a utopian aspiration some of our leaders have. We have to be the best Lagos we can be.”
  • “All the energy in the humanitarian world gets channeled toward emergencies, and so we don’t end up talking about what happens as a result — the big current underneath our work, which is massive urban influx,” said Bernard Lami, the IOM’s deputy head in Sudan.
  • Ivory Coast, where foreigners now account for nearly 20 percent of the country’s economy, more than anywhere else in Africa.
  • Around 40 percent of the world’s internally displaced people are in Africa
  • “There are millions of us living in these places that politicians never set foot in except to tear them down so they can make an industrial zone or new, big houses,”
  • In camps-turned-neighborhoods like Haj Yousif, long-oppressed groups from Sudan’s hinterlands discovered common histories and common cause. The city, after providing safety, became an organizing ground for groups that wanted to ensure that the safety was lasting. In Sudan, that meant first getting rid of Bashir.
  • “In the revolution, that’s partly what we were fighting against. There were big political issues, but it was also about mismanagement,” he added. “How long will it take for the needs of the people to become part of our governance? Ten, 20 years — or after we’re long gone? I guess it will always depend on us, the people, ourselves.”
  • Like many port cities, Mombasa is infused with distant cultures. From its centuries-old core, its expansion has been spurred by sultanates, seafaring mercantilists and great world powers, which all saw economic opportunity in its protected inlets.
  • The shifting dynamics have been a source of concern in Western capitals, which have seen their cachet on the continent decline. And the changes have spawned warnings from those same capitals to African governments that they are being tricked into debt traps that leave strategic resources and infrastructure vulnerable to Chinese takeover.That view has been increasingly discounted by scholars, in part because Chinese lenders have not requisitioned any major infrastructure projects even as debts continue to mount. Chinese loans to Africa also have declined after a high in 2013, the year China launched its ambitious Belt and Road Initiative to link its markets with the rest of the world.
  • loans laden with confidentiality clauses
  • Opaque loans and closer ties with Beijing have strengthened African governments that have little regard for democracy, human rights or economic equality
  • “We have deep water, we’re on the equator, we’re on the way from everywhere to everywhere else,” said Kalandar Khan, a historian of Kenya’s coast whose ancestors were brought from Baluchistan, in what is now Pakistan, to Mombasa four centuries ago by Omani sultans who employed them as mercenaries.
  • Mombasa, Kenya’s second-biggest city, is expected to grow rapidly as it accelerates its shift from being an outdated spice-route waypoint to a major global city that funnels goods to all of East Africa, a region with one of the world’s fastest-growing populations.
  • The United States in particular has sought to counter China’s ascent in Africa with questions about respect for human rights and the environment in Chinese-linked projects. The approach has not prevented any of those projects from pushing forward.
  • Responding to skepticism about Chinese intentions, many Africans simply ask: What is the problem with getting help to attain the same level of development others have? And who are Western governments to raise questions about human rights and accountability in Africa when their own record is atrocious?
  • she, like the majority of African migrants, did something many in the West might not expect, especially after a decade of fearmongering by populist politicians and a relentless focus in the media on the most desperate, perilous voyages in search of asylum.Gadji immigrated, legally, to another African country.
  • The majority of African migrants, both rich and poor, do not cross oceans, but rather land borders within Africa.Ninety-four percent of African migration across oceans takes a regular, legal form.At least 80 percent of Africans contemplating migration say they have no interest in leaving the continent.
  • Without new infrastructure to keep up with the growth, it now takes longer to cross Lagos from one edge to the other in a danfo than it does to fly to Lagos from Europe.
  • Like New York or Paris, Ivory Coast’s biggest city, Abidjan, is a cosmopolitan patchwork of neighborhoods where flavors, languages and histories overlap. As Africa’s population grows, Abidjan, Nairobi, Johannesburg and other cities across the continent that brim with opportunity will reap the dividends of that growth, especially if Western countries continue to suppress African migration flows off the continent.
  • In modern West Africa, home to 17 countries, locals often see borders as a hindrance — or even a fallacy — more useful to the Europeans who created them than the Africans who have to navigate them.
  • Despite relatively low historical levels of African migration to Europe, European Union member states have paid billions of dollars to West African governments over the past decade in return for strict enforcement of border controls aimed at preventing African migrants from reaching European shores.
  • “There are levels of irony here. Europe has integrated into a union, and yet they pay us to isolate ourselves,” said Issiaka Konate, a senior official in Ivory Coast’s ministry that promotes regional integration. “By doing so, they create an opportunity for criminal networks to operate in human trafficking, which has led to a profusion of armed groups and instability. Migration is not the political lightning rod in West Africa that it is in Europe. We welcome it.”
  • For most of its post-independence period, Ivory Coast has sought to lure migrants with relatively high wages, especially in its cocoa industry, the world’s largest. That alone has drawn millions from Guinea, Mali, Burkina Faso, Niger and others, and propelled Ivory Coast forward as the region’s best-performing economy.
  • Nearby countries such as Niger, which has the world’s highest birthrate and lowest standard of living, are replete with reasons to leave
  • The food stall’s owner said that in just five years, 15 young men like Amadou had come and gone, earning enough to go back home comfortably.“Garba makes us popular here. It is cheap, it is fast, it is tasty. People appreciate us,” Amadou said, explaining why he’d chosen Abidjan over Europe.“Europe is unimaginable to me. Very few people dream of Europe, frankly — and they are people you could say who dream too much.”
  • Europe has restricted the flow to exceptionally strong-willed migrants for whom the lure of Europe is hard to shake.
  • To an older generation of migrants, the fixation on Europe and the insistence that it’s the only place to make enough money to live the good life is a sinister myth driven by a few success stories.
  • “In my youth, there was no word ‘immigration’ — saying a fellow African is a foreigner is itself a foreign concept,” he said. “Well, it is an infectious concept and a political tool — the blame game, the creation of difference, those classic divide-and-rule mentalities of the West, are they not? It is a miseducation foisted upon us.”
Ed Webb

Ethiopia: Exploiting the Gulf's scramble for the Horn of Africa - African Arguments - 0 views

  • the United Arab Emirates played a key behind-the-scenes role in facilitating the deal between Ethiopia’s Prime Minister Abiy Ahmed and Eritrea’s President Isaias Afwerki. Both men met with Emirati leaders on several occasions before and during the reconciliation, and they have stayed in regular contact ever since.
  • After decades of disengagement, countries east of the Red Sea are scrambling to gain a greater footprint along the opposite coast. In response, states on the Horn such as Ethiopia are trying to leverage these rapidly changing geopolitical dynamics to enhance their own influence.
  • Relations between the Horn of Africa and Arab nations east of the Red Sea date back over millennia. They took a turn for the worse following the 1973 “Oil Crisis”, triggered when oil-producing Arab counties cut down production to punish Western countries that supported Israel in the Yom Kippur War. Horn countries became collateral damage as inflation skyrocketed. To overcome economic devastation and soaring debt, they began to court oil-rich Gulf States, offering political loyalty and natural resources in return for aid. Countries such as Somalia, Djibouti, Egypt, and Sudan invoked their cultural and religious connections with the Gulf in a bid to gain help in dealing with their balance of payment crisis and political instability. Arab nations seized the opportunity, using their wealth and newfound geostrategic importance to expand their influence in the Horn and secure key loyalties.
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  • profound geopolitical shifts have now renewed the Middle East’s interest in the Horn and reinvigorated the strategic significance of countries west of the Red Sea. The two main reasons for this are the war in Yemen and deepening intra-Gulf rivalries. These factors have led three main groups to vie for influence in the Horn: the Arab axis (led by Saudi Arabia and UAE, but including Egypt and Bahrain); the Iran axis; and the Qatar-Turkey axis.
  • Saudi Arabia is reportedly developing a military base in Djibouti and is considering Ethiopian requests to supply it fuel for a year with delayed payments. Meanwhile, the UAE has agreed to provide Ethiopia with huge loans, investment and infrastructure support; it has upgraded Eritrea’s Assab port and constructed a military headquarters nearby from which it has launched offensives into Yemen; and its company DP World has secured contracts worth hundreds of millions of dollars to develop the ports in Berbera and Bosaso, located in the semi-autonomous regions of Somaliland and Puntland respectively.
  • main aim is to isolate Iran, with which it has a long-standing feud, and contain the influence of the Qatar-Turkey Axis, which it accuses of promoting “political Islam”.
  • Qatar and Turkey also have deep footprints in the Horn through development aid, trade, and investments in infrastructure. Both are heavily involved in Somalia, where Turkey manages the capital’s ports and airports and has a military base. And both are investing heavily in Suakin in Sudan, with Qatar announcing a $4 billion plan to develop the port this March. There are reports that Qatar has also financed Ethiopia’s Grand Renaissance Dam, drawing anger from Egypt and its Arab allies, though Ethiopia has denied these claims.
  • Somalia has been particularly affected by intra-Gulf rivalries as some regional governments have pulled in opposite directions in an aim to consolidate alliances across the sea.
  • Amidst the growing competition for influence among the Middle Eastern axes, Addis Ababa has managed to avoid taking sides – at least publicly – and leverage its geostrategic significance as the region’s hegemon to attract much-needed investment from several different partners.
  • Ethiopia has also positioned itself well to benefit from the complex scramble for Red Sea ports. The land-locked country relies on Djibouti for nearly 97% of its imports, but now has clear avenues for diversifying its routes to sea. The rapprochement with its neighbour should give it access to Eritrean ports, while the UAE’s development of Berbera in Somaliland will give it another crucial option. Ethiopia defied the Somali federal government’s objections when it supported the UAE’s deal with the semi-autonomous region, but in return it has acquired a 19% stake in the project.
  • The combination of Gulf’s transactional politics and Africa’s often kleptocratic leadership could prove treacherous as historic rivalries take on new twists and matters develop beyond the Horn’s control.
Ed Webb

Thirsty crops, leaky infrastructure drive Tunisia's water crisis | PLACE - 0 views

  • "We used to grow much more wheat, we used to plant tomatoes, but we don't have (enough) water,"
  • Poor planning, sparse water resources and the worsening impacts of climate change have combined to create a crippling water crisis in Tunisia, say civil society groups.
  • Due to random cuts to water supplies, debt and management issues with the GDAs and the poor quality of water that runs from the taps, Marzougui said about three-quarters of the population have problems accessing clean water.
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  • The country's irregular rainfall patterns are accentuated by climate change, with periods of droughts and record high temperatures oscillating between torrential rain and floods, according to the agriculture ministry.
  • "We need a lot of water during Eid - for cooking, showering, for washing the intestines of the sheep," she said, referring to the traditional method for preparing meat during the holiday. "The infrastructure is bad, we lose water in the distribution network. The summer months are peak tourist season, so there is a lot of water consumption," said Louati of the OTE. "And because of climate change, the availability of water varies more than before."
  • It is mostly women who carry the burden of fetching water
  • Even for houses on the grid, water is not guaranteed. Nomad08 recorded 3,000 cuts between 2016 and 2018 across the country, lasting up to 60 days at a time.
  • latest government figures also reveal that poor infrastructure means in some regions about half of water is lost before it even reaches the tap
  • In 2017, the minister of agriculture created a committee dedicated to prioritising climate change in the management of agriculture and water. "We are in front of a fait accompli - we need to do with what we have and it is only going to become less (water)," said Rafik Aini, coordinator of the committee and senior negotiator in climate change at the agriculture ministry.
  • Tunisia's new Water Code, which was approved by ministers in September and is waiting to be debated by parliament, includes climate change as a factor to be considered in water policy decisions, unlike the original 1975 code.
  • In addition to repairing the water network, Aini told the Thomson Reuters Foundation that the government's 2050 strategy for water will involve desalination projects powered by renewable energy.
  • "It costs a lot of money and there is still (more) water lost through the network (than desalination stations are projected to produce)."
  • In January, a study by the U.N. University Institute for Water, Environment and Health (UNU-INWEH) warned that the global levels of surplus salty brine produced by this method were 50% higher than previous estimates.
  • Desalination would also have "profound impacts" on the sea ecosystem, where this waste is mostly dumped, the report found.
  • the "politics of agriculture needs to change," said Gafrej. "With precious and rare water, we do not have the right to produce certain cultures like watermelons."
  • about 80% of Tunisia's natural water resources are used for agriculture, according to last year's government figures. Thirsty crops like oranges, watermelons and tomatoes are grown for export abroad, mostly to Europe.
  • In intensive farming regions, like Kairouan, groundwater is being extracted at a faster rate than the underground supply is renewed, as well as from non-renewable groundwater sources. A government report noted that these resources are exploited up to 400% in certain regions.
Ed Webb

As Egypt's economic crisis deepens, an affordable meal is hard to find - The Washington... - 0 views

  • To blame the crisis solely on the war in Ukraine would be “barely true,” said Egyptian political economist Wael Gamal. Years of borrowing and investment in megaprojects made Egypt especially vulnerable, he said. Those projects have been championed by President Abdel Fatah El-Sisi, who took power in a military coup in 2013 and has made infrastructure development a hallmark of his presidency.
  • Egypt’s economic troubles, Gamal said, become “deeper every time they go to the IMF and take more loans and cover older loans with new loans.”
  • Until recently, Ramadan said, he could buy a ton of rice for around 8,000 Egyptian pounds. Now, he said, it costs 18,000 pounds. The cost of his pasta supply has jumped by 6,000 pounds. Even the plastic containers and bags they use to package the meals are pricier than before.
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  • “It’s a wonder how people survive,”
Ed Webb

Could hydroponics save Yemen from starving? | Green Prophet - 0 views

  • The number of food insecure people in Yemen has risen by 3 million in seven months, with an estimated 17.1 million people now struggling to feed themselves
  • More than two-thirds of Yemen’s population of 27.4 million people now lack access to food and consume an inadequate diet. Another Syria-style crisis may be on our way, and climate change and lack of water is making it worse.
  • “We are witnessing some of the highest numbers of malnutrition amongst children in Yemen in recent times. Children who are severely and acutely malnourished are 11 times more at risk of death as compared to their healthy peers, if not treated on time. Even if they survive, these children risk not fulfilling their developmental potentials, posing a serious threat to an entire generation in Yemen and keeping the country mired in the vicious cycle of poverty and under development,”
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  • 80 percent of Yemenis are in now in debt, and more than half of all households have had to buy food on credit.
  • Up to 1.5 million households engaged in agriculture now lack access to critical agricultural inputs (including seeds, fertiliser, fuel for irrigation) and are in urgent need of emergency agricultural support. Of these, 860 000 households engaged in livestock production lack access to animal feed (fodder, concentrate, mineral blocks) and many livestock-dependent households have been forced to sell their herds to cater for other household needs
Michael Fisher

Dubai Sovereign Fund Asks for Time to Reorganize Debts - NYTimes.com - 0 views

  •  
    The bursting bubble...
Julianne Greco

Islamic Bonds Receive a Boost - WSJ.com - 0 views

  • Global issuance of sukuk, or Islamic bonds, rallied during the third quarter with the value of sukuk issued rising 82% in the latest sign that confidence is returning to capital markets
  • Investors are putting more faith in the sukuk market, seen as a more stable platform to raise capital, as the financial crisis eases and global market conditions improve rapidly, bankers say.
  • Sukuk comply with Islam's ban on interest and are backed by physical assets from which returns are derived and paid to bondholders instead. European and Asian investors are increasingly buying into Middle East Islamic bonds in a bid to diversify their portfolios into a market showing greater signs of recovery, according to Mark Waters, BNP Paribas's head of debt capital markets in the Middle East.
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  • Primary sukuk issued out of the Middle East and North Africa region accounted for 59% of total volume of global sukuk this quarter.
Ed Webb

Beirut 1958: America's origin story in the Middle East - 0 views

  • No one in Beirut — or Washington — thought that this mission would mark the beginning of decades of seemingly endless American combat missions in the Middle East. In retrospect, Beirut in 1958 was a decisive turning point.
  • Lebanon was in the midst of a civil war pitting the Christian and Muslim communities against each other. The Muslims saw the Marines as enemies intent on keeping a hated President Camille Nemr Chamoun in office against the law. The Lebanese army, a fragile coalition of Christians and Muslims, saw the Marines as uninvited aggressors who were violating Lebanese sovereignty. The American command was prepared for the worst and was ready to deploy nuclear weapons to the battlefield from its base in Germany.
  • A year before, Eisenhower had enunciated what became known as the Eisenhower Doctrine, the first statement by a president stating that America has vital interests in the Middle East and would defend them by force if necessary.
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  • the immediate cause for the dispatch of the Marines: a coup d’etat in Baghdad on July 14. The pro-American King Faisal II had been brutally murdered in the coup, and his government was swept away. In Jordan, then federated with Iraq, Eisenhower said a “highly organized plot to overthrow the lawful government” of King Hussein had been discovered. Actually, the Central Intelligence Agency had foiled the plot several weeks before.
  • said President Chamoun had requested American military intervention to stop “civil strife actively fomented by Soviet and Cairo broadcasts.” It was the only time in the speech that Eisenhower even alluded to what had him really worried that day: the rising political power in the Arab world of Egypt’s charismatic young President Gamal Abdel Nasser and his Arab nationalist movement.
  • It was a less than candid explanation for sending in the Marines. Eisenhower made no mention of the fact that Chamoun was illegally seeking a second term and even claimed Chamoun did not seek reelection. The focus was entirely on Russia and the Cold War, an issue far more Americans understood than the intricate politics of Lebanon or the Arab world.
  • Nasser, meanwhile, was in Yugoslavia visiting the communist government there. Within hours of Eisenhower’s speech, he flew to Moscow. Both Nasser and his host Nikita Khrushchev agreed that they had no warning of the coup in Baghdad or knew anything about the coup plotters, according to recently declassified Soviet documents. Both agreed that the Iraqi coup was the most important development in the Middle East and the American intervention in Lebanon was a sideshow.
  • Nasser was, in the summer of 1958, at the pinnacle of his political career and power. Ironically, he had started his political rise very much as a protégé of the Americans.
  • The British had been completely surprised by the coup in Egypt, but the CIA was not — it had detected the signs of change coming. The agency moved quickly after to coup to establish contact with Nasser.  The point man for the CIA was the legendary Kermit “Kim” Roosevelt, a scion of the Roosevelt family born in Argentina. Kim had visited Cairo before the coup and set up contact with the Free Officers who would carry it out. In October 1952, he returned to Cairo as chief of the CIA’s Near East Division and met with Nasser at the famous Mena House Hotel near the pyramids. Each was impressed by the other and they agreed to a clandestine relationship.
  • Roosevelt led the CIA operation that overthrew a democratically elected government in Iran and restored the Shah to his throne in 1953, immediately making him the darling of both Dulles and Eisenhower.
  • Washington agreed to encourage the British to give up their Suez Canal base. British Prime Minister Winston Churchill was initially reluctant, but the U.K.’s huge debts from the world wars compelled him to make a deal and the British army agreed to leave Egypt in 1954. Roosevelt had been active behind the scenes in facilitating the deal.
  • The CIA gave Nasser a few million dollars, far short of what he wanted, to buy arms. Instead, he used it to build a large transmitter for the Egyptian radio program the “Voice of the Arabs” and broadcast his Arabist and anti-colonialist message to the region. Word spread about the source of the money for the tower, and it was nicknamed “Roosevelt’s Erection.”
  • Nasser took a decisive step when he arranged a large arms purchase from the Soviet Union’s client state Czechoslovakia in 1955. This alarmed the Cold Warriors in the West, especially John Foster Dulles, who saw the arms deal as the first significant penetration of the Middle East by Russia. It also alarmed the British and French, who saw Nasser’s growing stature as a threat to their remaining colonies and protectorates in the region such as Aden (part of modern-day Yemen), Algeria, Jordan, and Iraq.
  • Eisenhower opposed the 1956 tripartite invasion of Egypt by Britain, France, and Israel, seeing it as a throwback to imperialism, but the crisis did not improve the American relationship with Nasser.
  • Nasser’s intelligence agents unveiled a Saudi-funded plot to assassinate him, severely embarrassing King Saud, the man Eisenhower hoped would be a pro-American alternative to Egypt for the Arab public
  • The July 14 coup in Baghdad was a complete shock. A brigade of troops was scheduled to pass through the capital en route to Jordan to help back King Hussein against the threat posed by Nasser. Instead, as it entered the capital, it turned on the monarchy. The rebels surrounded the royal palace, and when it surrendered, the king and regent were shot to death. It was a bloody affair. The tanks of the coup-makers were covered with pictures of Nasser, and the crowds that cheered the Iraqi monarchy’s demise also screamed for Gamal Abdel Nasser. The military leaders of the coup said very little.
  • Lebanon’s Chamoun was already asking for American troops, and Jordan was acutely vulnerable. “If the Iraq coup succeeds it seems almost inevitable that it will set up a chain reaction that will doom the pro-West governments of Lebanon and Jordan and Saudi Arabia, and raise grave problems for Turkey and Iran.” Israel, Dulles predicted, would take over the West Bank and East Jerusalem “if Jordan falls to Nasser.” The entire Middle East — or at least its Arab components — might fall to Nasser, in his view. Russia would be the beneficiary.
  • At risk was a devastating defeat in the Cold War
  • the British government decided to send paratroopers to Amman to help steady the remnant of the Hashemite monarchy still in power there.
  • Ike was lucky in the end. His diplomats and generals on the scene in Beirut found a diplomatic way to avoid conflict and prevent the worst. The nuclear weapons were never shipped from Germany to the Mediterranean. After a period of political negotiations, Chamoun was pressured to stand down as president, and the civil war ended.
  • The return of the Marines to Beirut in 1982, for example, ended in a catastrophic truck bombing of their barracks that killed 241 soldiers. The wars in Iraq have now seemingly become endless. The region itself is constantly in turmoil, with terrorist attacks in many of its capital cities an all too routine atrocity.
Ed Webb

The F-35 Triangle: America, Israel, the United Arab Emirates - War on the Rocks - 0 views

  • deepen what were heretofore covert ties across the full spectrum of civilian sectors from business to science to agriculture and even space. The Emirati-Israeli agreement builds upon years of “under the table” cooperation between security and intelligence professionals driven toward strategic alignment by a shared perception of the major regional threat — Iran.
  • the U.S. sweetener appears to be a commitment to sell it F-35 Joint Strike Fighters, as well as other advanced weaponry long sought by Abu Dhabi Crown Prince Mohammed bin Zayed
  • When Egypt made peace with Israel in 1979, it secured the second largest military aid package in the Middle East after Israel, which continues today. When Jordan made peace with Israel in 1994, the announcement came along with debt relief and the sale of F-16 fighter aircraft — and, like Egypt, Jordan remains a top recipient of American assistance
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  • Reactions to Emirati acquisition of the F-35 have largely focused on whether Israel will support such a sale and the related requirement in U.S. domestic law to ensure Israel’s military superiority against all other countries in the Middle East. The longstanding policy term, later codified in law, is “qualitative military edge.” From the Emirati point of view, if they have entered into full diplomatic relations with Israel — with a promised “warm peace,” in the words of Emirati officials — and both countries share the same threat perspective, then Israel should have confidence that these advanced weapons will not be turned against it and should therefore not object to the sale. Moreover, unlike Egypt and Jordan, the United Arab Emirates has never attacked Israel.
  • Weapons sales are a leading area of competition in the Middle East, and in the words of the former Acting Assistant Secretary for Political-Military Affairs Tina Kaidanow: Arms transfers are foreign policy. When we transfer a system or a capability to a foreign partner, we are affecting regional — or foreign internal — balances of power; we are sending a signal of support; and we are establishing or sustaining relationships that may last for generations and provide benefits for an extended period of time.
  • selling the F-35 to the United Arab Emirates would say much more about the Washington’s partnership with Abu Dhabi than it would about the evolving Emirati-Israeli relationship
  • Selling the F-35 to a country ought to be a signal that the United States has the highest measure of confidence in that country’s warfighting capabilities, decision-making on the use of force, and commitments to protecting sensitive technology. The Emirati record on each of these issues does not, however, inspire the highest confidence. The record is mixed.
  • As former government officials serving in the State and Defense Departments as well as in Congress, we are confident that the process going forward will be messy and time-consuming, specifically because the current case breaks precedent in so many ways.
  • Since the Yemen war’s inception in 2015, members of Congress have raised concerns about the conflict and U.S. support for the Saudi-led coalition, in which Abu Dhabi was a partner and to which it contributed forces until withdrawing in the summer of 2019. These concerns, and the Trump administration’s refusal to address them, culminated in Congress mandating a report on steps taken by both governments to reduce civilian casualties and comply with laws and agreements governing the use of U.S.-origin weapons — indicating skepticism that either country was doing so
  • Reflecting a long-held U.S. policy view, during his nomination hearing Washington’s envoy to Abu Dhabi noted that the country “is a moderating and stabilizing force in one of the world’s most volatile regions.” The United Arab Emirates stands out among other militaries in the region for having contributed military forces to many U.S.-led coalitions since the first Gulf War — Kosovo (late 1990s), Somalia (1992), Afghanistan (since 2003), Libya (2011) and the anti-ISIL coalition (2014 to 2015). Indeed, Jared Kushner set a new precedent for framing the American-Emirati partnership when he effectively equated it with that of America and Israel, terming them comparably “special” during his most recent visit to the Middle East.
  • Emirati regional policies have been the subject of increasing congressional concern in recent years, largely focused on the country’s actions in Yemen and Libya. Since the beginning the Saudi-led coalition’s 2015 intervention in Yemen, most congressional action focused on the Saudi role in the conflict and not the Emirati one. But in 2018, congressional concern peaked in response to Emirati plans to launch an offensive to seize the Yemeni port of Hudaydah. The Trump administration subsequently declined to provide military support for the Emirati operation, given the risks of worsening an already severe humanitarian crisis, concerns regarding the complexities of the proposed military operation, and the likelihood of mass civilian casualties
  • In both Yemen and Libya, Abu Dhabi has not succeeded in leveraging its robust military investments toward political processes that would end the conflicts. In both contexts the divergent policies of the United States and United Arab Emirates — including use of military force, conduct in combat, and utilization of U.S. defense articles — should be considered as part of the F-35 deliberations.
  • competitors in the global arms export industry — particularly Russia and China — also leverage arms sales, but by and large with no strings attached for their use. Both governments use arms sales to challenge U.S. market dominance and to undermine American partnerships in the region
  • protecting Israel’s military superiority consists of both legal requirements and longstanding political and process steps that, while not mandated by law, have paved the way for decades of bipartisan congressional consent to arms sales in the Middle East, including of advanced fighter aircraft. The requirement to protect Israel’s “qualitative military edge” is enshrined in 2008 naval vessel transfer legislation, although it had been implemented as a matter of policy between Washington and Jerusalem since the 1973 Arab-Israeli war.
  • Presumably, the United Arab Emirates and Israel entering into formal relations affirms that the former does not pose such a military threat. The Israeli perspective at the moment, however, has been complicated by the continuing murk over whether Prime Minister Benjamin Netanyahu blessed the U.S. commitment to sell the Emirati government the F-35 — without the knowledge of his own defense minister. Tensions in Netanyahu’s fragile governing coalition and a larger uproar in Israel’s defense establishment have prompted an awkward pas de deux among American, Emirati, and Israeli officials. Netanyahu — responding to concerns raised by the Israeli defense establishment — stated emphatically during an Aug. 24 joint press conference with Secretary of State Mike Pompeo that he had not consented to any arms deal as part of normalization. Given Netanyahu’s close relationship with Trump, it is safe to say that no one in either country finds this claim credible. The public spat over Israeli consent to Emirati acquisition of the F-35 escalated when Netanyahu publicly vowed to go to Congress in opposition to the sale, and the United Arab Emirates in response cancelled a planned meeting between the Israeli and Emirati ambassadors to the United Nations.
  • extensive discussions should be expected between Israeli and U.S. technical and military experts to agree on the appropriate mix of offsets to ensure Israel’s military superiority. The offsets may involve discussions of quantity (how many F-35s the Emiratis will acquire versus the Israelis), technical variations in the F-35 platform, or additional sales and assistance to Israel. This challenge is not insurmountable, but it will be time-consuming and extend pass the upcoming American electoral cycle
  • The standard for this level of consultation with Israel before moving forward with arms sales packages to others in the region was set by the Obama administration — first in 2011 with the sale of F-15 fighter jets to Saudi Arabia, and later in 2013 with the sale of F-16 fighter jets to the United Arab Emirates along with stand-off weapons to both the Saudis and the Emiratis. Concurrent with 2013 sales, the Obama administration negotiated a package for Israel to maintain its military edge that included V-22 Osprey aircraft, advanced refueling tankers, and anti-air defense missiles.
  • Though Israel has no legal right to  block the United States from selling a weapon to another country in the Middle East, Israeli support is critical, particularly during the period of congressional notification. Members of Congress on both sides of the aisle will consult with the Israeli government, and will prefer to support a sale that earns a clear green light from the Israeli government. Members are likely be left unsatisfied by ambiguous and lukewarm Israel responses to the question of selling the F-35 to the Emiratis, precisely because technical talks have not yet begun. All parties risk being stuck between the divisive politics of the moment, and the deliberative, lengthy policy considerations that such arms transfer packages usually entail, opening the door to a further erosion of bipartisanship on a key issue of national security importance — the what, when, and how of a decision by the United States to provide advanced weapons systems to partner states in the Middle East.
  • Arab capitals are closely following whether the United States will follow through on its apparent commitment to sell the F-35 (and assorted other high-end systems) to Abu Dhabi, and whether American deliverables are sufficiently compelling to consider bringing their own relations with Israel into the daylight
  • The historical record from Egypt to Jordan and now the United Arab Emirates — across administrations of both political parties — is that formal relations with Israel facilitate strategic consistency from Washington
  • Will Egypt and Jordan request the F-35 in light of their existing peace treaties with Israel? Will countries in closer geographic proximity, like Saudi Arabia, request the F-35 and additional advanced U.S. weapons as part of their normalization package?
  • For Israel, Iran and Turkey represent sobering examples in that regard — previously solid security partners within seemingly stable governance structures that became hostile.
  • military edge risks eroding as Arab governments, whether blocked from purchasing certain weapons from the United States or in addition to acquiring them, turn to China, Russia, and other weapons exporters not obligated to maintain Israel’s military superiority
  • Competition in the Middle East between the United States and its adversaries is intensifying — particularly in the weapons sales arena
  • Washington may find itself in an escalating — and unsustainable — cycle of supplementing and upgrading support, technology, and other military offsets to Israel.
Ed Webb

The weaponisation of water and Iraq's climate catastrophe - 0 views

  • From a population of half a million in the 1950s, half a century later saw approximately 20,000 remain. In the 1990s, Saddam Hussein drained the marshes to punish its inhabitants, whom he accused of betrayal during the Iraq-Iran war between 1980-1988. One of his tactics was to build dams, destroying the livelihoods of residents by withholding water. Hundreds of thousands of residents were displaced, and by the year 2000, it was estimated that 90% of the marshes had disappeared.
  • the United Nations ranked Iraq as the fifth most vulnerable country to climate change on earth
  • Residents of the marshes have stated that being granted UNESCO world heritage status has done nothing to improve their quality of life. They cite broken promises and negligence from the central government towards their plight, in regard to the constant worsening of their living conditions. These issues have provided predicaments for those whose descendants have inhabited this region for thousands of years.
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  • With the majority of Marsh Arabs having already been displaced, one's choices lie between preserving history and heritage while facing debt and danger or abandoning the land in search of survival. The southern part of Iraq could end up becoming uninhabitable within our lifetime.
  • Refugees from war will become refugees once again, this time from the climate crisis.
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