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Ed Webb

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

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

Where and why food prices lead to social upheaval - The Washington Post - 0 views

  • Unlike other commodities, global food prices have followed a different trajectory. Although down from near-historic highs in 2007-2008 and 2011, they are still higher than at any point in the previous three decades.
  • The economic effects of higher food prices are clear: Since 2007, higher prices have put a brake on two decades of steady process in reducing world hunger. But the spikes in food prices over the past decade have also thrust food issues back onto the security agenda, particularly after the events of the Arab Spring. High food prices were one of the factors pushing people into the streets during the regionwide political turmoil that began in late 2010. Similar dynamics were at play in 2007-2008, when near-record prices led to food-related protests and riots in 48 countries.
  • Unlike energy and electronics, demand for basic foodstuffs is income-inelastic: Whether I have adequate income has no effect on my need for sustenance. Not surprisingly, 97 percent of the post-2007 ‘food riots’ identified by a team at the New England Complex Systems Institute occurred in Africa and Asia, which are home to more than 92 percent of the world’s poor and chronically food-insecure. Careful empirical work bears out this conventional wisdom: High global food prices are more destabilizing in low-income countries, where per capita incomes are lower.
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  • Politics might affect the relationship between food prices and protest through two channels. The first is the extent to which governments shield urban consumers from high global prices. Governments in developing countries often subsidize food purchases, especially those of urban dwellers, shifting welfare from rural producers to urban consumers. But this observation raises the second-order question of the conditions under which governments will subsidize urban consumers. We hypothesized that autocratic governments were more likely to shield urban consumers. While urban dwellers can riot in the absence of elections, rural dwellers have fewer channels through which they can voice grievances.
  • democracies and anocracies did enact more pro-rural food policy. In particular, democracies in Africa and Asia enact policies that favor urban areas less and rural areas more. These take the form of enhancing farmer incomes and raising consumer prices, which often causes protests and rioting. Lessening urban bias in food policy may be good pro-poor policy, given the continued concentration of poverty in rural areas, but it carries political risks.
  • the Arab Spring reflects some of the risks autocratic leaders face when attempting to insulate urban consumers from global market prices. Consumer subsidies have long been part of the “authoritarian bargain” between the state and citizens in the Middle East and North Africa, and attempts to withdraw them have been met with protest before: Egypt’s bread intifada, which erupted over an attempt to reform food subsidies, killed 800 in 1977. These subsidies explicitly encouraged citizens across the region to evaluate their governments’ effectiveness in terms of their ability to maintain low consumer prices — prices that, given these countries’ dependence on food imports, those governments ultimately could not control
  • Our findings point to the difficult tradeoffs facing governments in developing countries as they attempt to pursue two different definitions of food security simultaneously: food security as an element of human security, and food security as a means of ensuring government survival and quelling urban unrest. These tradeoffs appear to be particularly acute for developing democracies.
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

Saudi Arabia's Crown Prince MBS Is Right Where Trump Wants Him - Bloomberg - 0 views

  • There came a moment during Donald Trump’s April 2 phone call to Mohammed bin Salman when Saudi Arabia’s crown prince and de facto ruler, apparently stunned by what the American president had just said, asked his aides to leave the room. No courtiers were present when their master, no slouch at intimidation himself, was apparently bullied into submission.
  • Trump had, in effect, threatened the complete withdrawal of American troops from the kingdom if the Saudis didn’t slash oil production.
  • broad, bipartisan support in Washington for punitive actions against Riyadh
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  • the prince is as close to a pariah as a senior member of the royal family has ever been in the 75 years of the Saudi-American alliance
  • the crown prince must now recognize the limitations of his ill-judged strategy to base relations with the U.S., the kingdom’s indispensable ally, exclusively on the cultivation of the first family. Previous Saudi rulers would have been able to rely on friends in Congress to plead with the White House for leniency. But MBS has few friends in Washington — and the army of lobbyists he maintains there is of limited use in a crisis.
  • MBS’s dependence on Trump — and the White House veto — to override this antagonism made him highly vulnerable to presidential strong-arm tactics.
  • The prince is now in a bind. He desperately needs to rebuild bridges with Congress, but that will be harder now that he has injured U.S. oil interests. Nor can he easily submit to pressure from American lawmakers on other issues without losing face at home and in the Arab world. 
  • The timing of his humiliation by Trump is especially unpropitious: The twin blows of the oil war and the coronavirus pandemic have greatly damaged the Saudi economy and undermined his ambitious reform agenda at home. His cherished plan to build a futuristic megacity on the Red Sea coast is facing unexpected opposition. Much effort and cost will be required to extricate Saudi Arabia from the Yemeni quagmire with a semblance of dignity.
Ed Webb

UAE signs nuclear energy deals with three Chinese companies - 0 views

  • The Emirates Nuclear Energy Corporation has signed three agreements with China National Nuclear Corporation and its subsidiaries during a visit to China.An agreement with Nuclear Power Operations Research Institute will focus on possible collaboration between the two parties in nuclear energy operations and maintenance.
  • The deal signed with the China National Nuclear Corporation Overseas will focus on co-operation in the field of high temperature gas-cooled reactors.The third agreement with the China Nuclear Energy Industry Corporation will focus on possible collaboration in nuclear fuel supply and investment.
  • Unit 3 of Abu Dhabi's Barakah Nuclear Energy Plant began commercial operations in February.It was the third unit to be delivered in three consecutive years, generating up to 4,200 megawatts of clean electricity capacity to the grid.
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  • Barakah is the Arab world’s first nuclear power station and, once fully operational, will supply about 25 per cent of the UAE’s electricity needs.
  • “Given the size of China’s economy and the scale of its development of renewable energy and decarbonisation technology, China provides a good model for sustainable economic growth and the global energy transition,” said Dr Al Jaber, who is also the UAE's Minister of Industry and Advanced Technology.
Ed Webb

40 years after the oil crisis: Could it happen again? - 2 views

  • Forty years ago today, the Organization of the Petroleum Exporting Countries (OPEC) voted to raise the posted price of their oil by 70 percent.  The next day, several Arab oil producers decided to impose an embargo on oil sales to the United States to punish it for supporting Israel in the unfolding Yom Kippur War.  While the two decisions were not formally linked, policymakers have worried ever since that OPEC could again restrict the global supply of oil. A lot has changed since 1973.  Oil embargoes used to happen fairly frequently: There was one in 1956, and another in 1967.  Until 1973, they didn’t attract much attention.  But due to structural changes in the oil market in the early 1970s, the one in 1973 had a huge impact.  Since that time, there hasn’t been a single international embargo. (The current sanctions against Iran are an importers’ boycott, not an exporters’ embargo.)  What happened?
  • Even without an embargo, policymakers worry that OPEC manipulates the oil market. For example, James Woolsey, a former CIA director and self-proclaimed energy hawk, argues that OPEC has a grip on global oil and gasoline prices so tight that the U.S. will never be free of its influence.  Like most people, Woolsey wrongly believes that OPEC is a powerful cartel. Many economic studies cast doubt on that idea, but there are still some scholars who support the proposition. OPEC rarely if ever influences its members’ oil production rates.  It has almost no impact on prices.  My research looked at OPEC’s behavior since 1982, when it first adopted formal production quotas for its members.  I found that joining OPEC has little influence on new members’ oil production rates; members cheat on their quotas a whopping 96 percent of the time; changes in OPEC quotas have little impact on changes in production; and members of OPEC produce oil at about the same rate as non-members of the group, all else equal.  Any of these findings would cast doubt on OPEC’s status as a cartel; collectively they are damning.
  • Most OPEC members – from Venezuela to Nigeria to Iraq – are pumping their oil as fast as they can, with no spare capacity
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  • OPEC is a political club.  It perpetuates a “rational myth” about its cartel power to generate political benefits and prestige for its members, both at home and abroad.  As long as OPEC is viewed as powerful, its leaders can falsely claim credit at home for “managing the economy.”
  • the world would be better off if it stopped assuming that OPEC drives world energy markets.  It does not.  Most of the credit or blame for rising oil prices in recent years rests with the energy demands of Asian customers, not diabolic moves by OPEC
Ed Webb

Qatar Crisis: A Cautionary Tale - 0 views

  • As ties with the Obama White House deteriorated, ruling circles in Gulf capitals became increasingly muscular in pursuing their own regional interests. This was, in part, a reaction by Saudi and Emirati officials to Qatar’s assertive approach to the uprisings in North Africa and Syria between 2011 and 2013
  • The second phase of the Gulf states’ regional assertiveness (after Qatar’s activist approach in 2011 and 2012) played out in Libya, Yemen, the Gulf and Egypt. Saudi Arabia and the UAE funneled tens of billions of dollars in financial aid and investment in infrastructure designed to kickstart the ailing Egyptian economy. The UAE coordinated closely with Egypt and Russia to triangulate support for the Libyan strongman, Khalifa Haftar, as he battled Islamist militias in eastern Libya, carving out a largely autonomous sphere of influence separate from the internationally backed political process in Tripoli. The Saudis and Emiratis, together with the Bahrainis, withdrew their ambassadors from Qatar in March 2014 and accused Doha of interfering in the domestic affairs of its regional neighbors.
  • On the international stage, King Salman of Saudi Arabia made clear his displeasure with the Obama administration by canceling his planned attendance of the US-GCC summit at Camp David in May 2015. Six weeks earlier, Saudi Arabia and the UAE had launched Operation Decisive Storm in Yemen. The Yemen war was designed to restore the government of President Abd-Rabbu Mansur Hadi, ousted in 2014 by the tactical alliance of Iran-allied Houthi rebels and former Yemeni President Ali Abdullah Saleh’s armed loyalists. Launched just five days before the initial deadline (later extended to July 2015) in the nuclear negotiations between Iran and the P5+1, the decision to take military action to counter and roll back perceived Iranian influence in Yemen represented a Saudi-led rebuke to the Obama administration’s belief that it was possible to separate the nuclear issue from Iran’s meddling in regional affairs.
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  • Another UAE-based visitor during the transition was Erik Prince, brother of Betsy DeVos (President-elect Trump’s nominee as secretary of education). Prince had been hired by Abu Dhabi to develop a private security force after the demise of Blackwater in 2009. He “presented himself as an unofficial envoy for Trump to high-ranking Emiratis” and met with a Russian official in a UAE-brokered meeting in the Seychelles shortly before the inauguration, reportedly as part of an effort to establish a backchannel of communication over Syria and Iran.
  • In the early weeks of the administration, Kushner also reached out to Saudi policymakers, including Deputy Crown Prince Mohammed bin Salman al-Saud — like Kushner an ambitious millennial who had entered policymaking from a business background. They shared uncannily similar nicknames: “Mr. Everything” (MBS) and the “Secretary of Everything” (Kushner). The two men grew close and reportedly stayed up until nearly 4am “swapping stories and planning strategy” during an unannounced visit Kushner made to Saudi Arabia in October 2017.
  • A president and his senior staff determined to do things their way and bypass the traditional playbook of US foreign policy and international diplomacy offered a potentially rich opening for Saudi Arabia and the UAE, as did the political inexperience of many of the new appointees in the White House
  • The expectation in Riyadh and Abu Dhabi that the Trump presidency would adopt hawkish positions on regional issues such as Iran and Islamism that aligned closely with their own was reaffirmed by the appointments of James Mattis as secretary of defense and Mike Pompeo as director of the CIA
  • President Trump discussed Qatar’s “purchase of lots of beautiful military equipment because nobody makes it like the United States. And for us that means jobs, and it also means frankly great security back here, which we want.” The president’s comments made his subsequent swing against Qatar, after the Saudi and Emirati-led diplomatic and economic blockade began on June 5, 2017, even more surprising to observers of the presidency’s transactional approach to diplomacy.
  • the McClatchy news agency reported that SCL Social Limited, a part of the same SCL Group as Cambridge Analytica (the data mining firm where Bannon served as vice president before joining the White House) had disclosed a $330,000 contract with the UAE National Media Council. The contract included “a wide range of services specific to a global media campaign,” including $75,000 for a social media campaign targeting Qatar during the UN General Assembly. McClatchy observed, too, that Bannon had visited Abu Dhabi to meet with MBZ in September 2017, and that Breitbart (the media platform associated with Bannon both before and after his brief White House stint) had published more than 80 mostly negative stories about Qatar since the GCC crisis erupted
  • a striking element about the Saudi-Emirati outreach is the limited success it achieved. Officials may have seized the opportunity to shape the administration’s thinking and succeeded temporarily, in June 2017, in getting the president to support the initial action against Qatar, but that proved a high watermark in cooperation that did not lead to any substantive follow-through
  • The transactional approach to policymaking taken by the Trump presidency is not necessarily underpinned by any deeper or underlying commitment to a relationship of values or even interests. An example of this came in July 2017 when President Trump told Pat Robertson of the Christian Broadcasting Network that he had made his presence at the Riyadh summit conditional on $110 billion in arms sales and other agreements signed with Saudi Arabia. “I said, you have to do that, otherwise I’m not going,” bragged the president.
  • Although the crisis in the Gulf may have passed its most dangerous moment — when for a few days in June 2017 the possibility of Saudi and Emirati military action against Qatar was deemed so serious by US officials that Secretary of State Tillerson reportedly had to warn MBS and MBZ against any precipitous action — it has had significant negative consequences for both the region and Washington. In the Gulf, four decades of diplomatic and technocratic cooperation among the six GCC states has been put at risk, threatening the survival of one of the hitherto most durable regional organizations in the Arab world.
  • It is hard to see how the GCC can recover after the sub-regional institution has failed to prevent three of its members from turning on a fourth twice in three years, and when it has been absent at every stage of the crisis, from the initial list of grievances to the subsequent attempts at mediation.
  • Washington’s policy approaches toward Qatar appear now to have settled on the view that the standoff is detrimental to American strategic interests both in the Gulf and across the broader Middle East and should be resolved by Kuwaiti-led mediation. However, the confused signals that came out of the Trump administration during its first six months in office do constitute a cautionary tale. They illustrate the vulnerability of a new and inexperienced political class to influence, which came close to jeopardizing a key US partnership in the Middle East. Unlike, say, the US and Iran, there are no clearly defined good and bad sides the US should support or oppose in its dealings with the GCC members, all of whom have been pivotal, in different ways, to the projection of US power and influence in the region.
Ed Webb

Border Security Doesn't Make Europe Safer. It Breeds Instability. - 0 views

  • While it is natural be outraged by the locking up of children in Donald Trump’s United States or the criminalization of rescues in Italy during Matteo Salvini’s reign as interior minister, this deadly game is sadly not just being played by a few erratic and callous politicians. Rather, it is systematic.
  • For many years now, a key part of the game has been to get poorer neighbors to do the dirty work of deterring migration
  • outsourcing of migration and border controls represents a spectacular own goal not just in humanitarian terms, but also politically
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  • From the indefinite containment in what Amnesty International called “insecure and undignified” camps in Greece to de facto pushbacks of migrants toward the hell of Libya, from increasingly perilous routes across the Sahara to the avoidable mass drownings in the Mediterranean, Europe’s so-called fight against illegal migration has fueled abuses that undermine the EU’s global role and its avowed values
  • the EU, just like the United States, has doubled down. In its strategic agenda for the next five years, it has coalesced around a project straight out of the hard right’s playbook—of protecting borders, not people. And the way forward, in the words of the agenda, is “fighting illegal migration and human trafficking through better cooperation with countries of origin and transit.”
  • deaths owing to Fortress Europe since 1993 now adds up to well over 30,000 human beings and counting
  • The suffering is kept at a distance until spectacular violence hits the news, such as in the July killing of at least 44 people in the Libyan warlord Khalifa Haftar’s airstrike on a Tripoli detention center. The general silence means the suffering festers, infecting European countries’ relations with their neighbors. And some among the neighbors are taking note of the cynicism. As a leading West African voice on migration, former Malian Culture Minister Aminata Traoré put it succinctly: “Europe is subcontracting violence in Africa.”
  • by temporarily pushing the problem away, it is sowing the seeds for abuse, repression, and even instability on a much larger scale
  • Once migration has been elevated into an existential threat to the “European way of life,” those on the other side of the EU’s borders will know how to leverage that threat effectively, with destabilizing consequences
  • Playing his cards cleverly within the rules set by Europe’s growing obsession with migration, Erdogan then explicitly threatened this October to “open the gates” for refugees to head toward Europe if EU leaders failed to support his military incursion and resettlement plans for northern Syria
  • consider Sudan, where the country’s Rapid Support Forces (RSF), a paramilitary group formerly linked to the genocidal janjaweed in Darfur, have trumpeted their credentials in fighting migration. This is the same force that killed dozens of protesters in Khartoum earlier this year and whose leader had by this summer by most accounts become the de facto, Saudi-backed ruler of Sudan.
  • The RSF, like Erdogan, has played a clever game within the rules set in part by the EU and has presented itself as helping the EU to fulfill its priorities—while simultaneously acting as a smuggling conduit. In effect, border security has been given a premium in the political marketplace, helping the guys with the guns to capture a larger market share.
  • across the Sahel and Horn of Africa regions, where the EU is now lavishing migration-related funds and political recognition on shady regimes and their frequently repressive security personnel. One of the countries targeted is Niger, which has become a laboratory for border security, with dire consequences.
  • The draconian law on migrant smuggling that the EU pushed has hit not just cross-border human smuggling but all sorts of cross-country transport, and it has involved Niger’s authorities selectively targeting members of certain ethnic groups. This risks fueling ethnic and political grievances while depriving northern Niger of its economic lifeblood, which includes not just irregular migration but also ordinary cross-border trade with, and travel to, Libya.
  • Amid growing popular discontent, and with an emboldened security state and a reeling economy, Niger is today a tinderbox thanks in no small part to the very security measures imposed by Europe.
  • Building on former Italian leader Silvio Berlusconi’s sordid deal-making with Libya’s Muammar al-Qaddafi a decade earlier, Italy and the EU have since 2015 tried to get around legal responsibilities at sea by funding and training a so-called Libyan Coast Guard, which in large part is simply a front for dolled-up militias.
  • the assumption of the EU’s strategic agenda, for one—that “fighting illegal migration” in this way is key to defending “the fundamental rights and freedoms of its citizens”—is plain wrong. A quick glance at the longer trend shows 2015—when an estimated 1 million refugees and migrants arrived in Europe by sea—to be an exception: Most immigrants enter Europe by air, and most sub-Saharan African migrants stay within their own region.
  • human mobility is in itself not a threat to anyone’s safety. In fact, the risks associated with its most chaotic manifestations are perversely caused in large part by the very security measures rolled out to stop it. But even these manmade risks pale in comparison with the risk of strengthening authoritarian regimes and repressive forces, while undermining the EU’s clout and values, in the name of European citizens’ security.
  • the EU must rekindle positive projects of collaboration and opportunity—including, not least, by working with the African Union on its incipient plans for boosting free movement across the continent. And it must ensure that the EU and member states don’t fuel instability and abuses, as has been the case with Libya since well before NATO’s disastrous intervention there.
  • migration toward the U.S.-Mexico border can be addressed by Washington through genuine attempts at reversing long-standing U.S. complicity in the instability racking Central America—both in terms of support to violent groups and abusive leaders and in the export of gang members into El Salvador. Similar reversals are needed in the drug war that is racking Mexico, where U.S. arms and incentives have helped fuel violence that has claimed thousands of lives.
  • Today’s tug of war between rights and security, or between open and closed borders, paints those in the former camp as naive idealists and those in the latter as hard-headed realists. However, this is a false dichotomy.
  • If policymakers and voters really want to be “realistic,” then it is essential to appreciate the full future costs of the path on which they are currently set and to acknowledge the dangerously perverse incentives for escalating violence, extortion, and authoritarian rule that it entrenches. Meanwhile, the fantasy of protecting Western democracies through the outsourcing of migration controls feeds the damaging delusion that these countries can seal themselves off from problems such as conflict and global warming to which they are themselves strongly contributing.
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
Ed Webb

Trump tightens the screws on Iran's oil - 0 views

  • the White House is embarking on an economic offensive intended to collapse the Iranian government, which is already contending with a steady tempo of internal unrest driven by economic and political frustrations
  • Those who have lamented Obama’s restraint in the Middle East will now have another taste of its antithesis: the purposeful American disruption of the status quo underpinned by the assumption that things can only get better. Unfortunately, that rarely holds true in the Middle East
  • It’s not just oil: U.S. sanctions will be felt across every aspect of the Iranian economy, although in theory, agricultural products, medicines, and medical devices are exempted. In practice, the repercussions are sweeping and unpredictable
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  • This time around, Washington has chosen to go it alone on Iran, after an intense but ultimately fruitless effort by Britain, France, and Germany to devise a compromise to save the nuclear deal. That awkward episode, in which the president appeared wholly uninformed about the talks, was a feature, not a bug; spurning compromise is the modus operandi for U.S. policy toward Iran, as the latest U.S. statements ruling out sanctions waivers or exemptions make clear.
  • without the reinforcement of multilateral measures or broad diplomatic support, the Trump administration is deploying U.S. sanctions on Iran as a bludgeon rather than a scalpel in hopes of wreaking maximum havoc on Iran as quickly as possible. The financial measures targeting Iran effectively cast a much wider net than traditional trade sanctions, and the risk of steep fines or worse—loss of access to the U.S. economy—acts as a powerful deterrent for individual and firm decisionmaking even in the absence of government buy-in.
  • Iran sends its largest oil volumes to China and India, where diverse and reliable energy supplies are critical components of economic growth and national security. Both governments can draw upon ample access to bespoke financial institutions and other creative workarounds that sustain trade with Iran and are likely to seek to exploit the opportunity to press Iran for discounts and favorable payment arrangements
  • As Iran’s OPEC governor, Hossein Kazempour Ardebili, observed: “You cannot place sanctions on two OPEC founder members and still blame OPEC for oil price volatility. … this is business, Mr. President—we thought you knew it.”
  • Through considerable internal turmoil and external conflicts, Iran has been a mainstay of global energy markets for a century; the only previous sustained rupture in Iranian supply came at the hands of a British embargo in 1951-53. That blockade ended with official American conspirators helping to effect the ouster of a troublesome Iranian leadership. At the time, this seemed like a victory for Washington; over the long term, that U.S. intervention to topple nationalist prime minister Mohammad Mossadeq proved to be a disaster for American interests and for Iran.
  • America’s open antagonism provides Tehran with another excuse to intensify repression and divert blame for the country’s woes
Ed Webb

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

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

Black Box: Military Budgets in the Arab World - POMED - 0 views

  • As the double whammy of the pandemic and the collapse in oil prices slams Middle Eastern economies, the International Monetary Fund (IMF) and the World Bank are already providing several Arab governments with billions of dollars in emergency financing and anticipate requests from others. Many Arab states are especially vulnerable to such external shocks because of long-standing economic mismanagement, often exacerbated by exorbitant military spending.
  • The Stockholm International Peace Research Institute (SIPRI) laments that many Arab governments lack any semblance of transparency in their military budgets, making it impossible to know or even estimate the region’s defense expenditures. Among other problems, this opacity makes it difficult for international financial institutions (IFIs) to factor Arab defense budgets into the requirements for adjusting public spending that normally accompany their support.
  • only four Arab countries—Jordan, Kuwait, Morocco, and Tunisia—have made all of their military spending data public over the past five years. While it is expected that war-ravaged countries such as Yemen or Libya would have trouble producing a full accounting, other states have the capacity but simply choose not to release the information.
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  • While we may not know exactly how much Arab regimes spend on their militaries, we do know that they are among the world’s leading importers of arms—an industry rife with corruption—and the largest recipients of military aid. As SIPRI has documented, six of the top 10 importers of major arms were Arab countries, totaling nearly one-third of all global imports ($146 billion) between 2015 and 2019. In 2017—the last year for which full data are available—four of the top 10 purchasers of U.S. arms were Arab countries, and nearly one-third of all U.S. weapons sales ($36.6 billion), along with roughly $5 billion in U.S. security aid, went to Arab regimes.
  • When IFIs provide assistance, even emergency aid, to Arab governments, they should condition the funds on transparent budgets, including a full accounting of military expenditures
Ed Webb

Biden rebuffed as US relations with Saudi Arabia and UAE hit new low | US foreign polic... - 0 views

  • The UAE and Saudi Arabia continue to rebuff the US president as he attempts to counter soaring oil prices prompted by Russia’s invasion of Ukraine. And both countries have been unusually frank about their refusal to step in.
  • The Saudi and Emirati refusal to bail Biden out – or even to take his calls – has pushed relations between the Gulf states and Washington to an unprecedented low. The extraordinary flow of Russian wealth to Dubai, just as the US and Europe try to strangle Putin’s economy, has inflamed things further.
  • Usually opaque and often inscrutable, officials in Abu Dhabi and Riyadh have in recent weeks been uncharacteristically blunt to visiting diplomats about the nature of their grievances, and how far they are prepared to take them. One western diplomat told the Guardian that a Saudi counterpart had said: “This is the end of the road for us and Biden, but maybe the US also.”
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  • “While American policy is beset by baffling contradictions, Chinese policy is simple and straightforward. Beijing is offering Riyadh a simple deal: sell us your oil and choose whatever military equipment you want from our catalogue; in return, help us to stabilise global energy markets.“In other words, the Chinese are offering what increasingly appears modelled on the American-Saudi deal that stabilised the Middle East for 70 years.”
  • The former al-Arabiya editor-in-chief, Mohammed al-Yahya chose the previously unlikely forum of the Jerusalem Post to publish his views on the standoff.“The Saudi-US relationship is in the throes of a crisis,” he wrote. “I am increasingly disturbed by the unreality of the American discussion about the subject, which often fails to acknowledge just how deep and serious the rift has grown.
  • “Why should America’s regional allies help Washington contain Russia in Europe when Washington is strengthening Russia and Iran in the Middle East?”
  • The naked transactional diplomacy of Donald Trump was a formula more familiar to both, and had been readily deployed by China, to whom each is looking towards for closer trade, energy and even security ties.
  • “The UAE has invested a lot in its relations with Washington. We allocated the bulk of our investments of huge sovereign wealth funds in the American markets, excluding Asian and European markets, and had wanted to increase trade with Washington.”Abdulla said the UAE felt snubbed by Washington not signing a deal to supply new F-35 fighter jets.It was also angered by Biden’s distance following a deadly Houthi drone and rocket strike on Abu Dhabi.“What made matters worse was the Biden administration’s objection to sovereign Emirati decisions, such as receiving Bashar al-Assad … and putting pressure on Abu Dhabi to increase its oil production outside the context of the Opec agreement.“All this comes at a time when America is no longer the only superpower in the world, which prompted the UAE and other countries to diversify partners.”
Ed Webb

Jadaliyya - 0 views

  • in exchange for a slew of Palestinian strategic concessions, Israel magnanimously agreed to negotiate the PLO’s terms of surrender.
  • The Declaration of Principles on Interim Self-Government Arrangements, as the Oslo Accord is formally called, is only a few pages long and largely free of technical jargon, and well worth reading for those who haven’t done so. It contains not a single reference to “occupation”, “self-determination”, “statehood”, or anything of the sort. Rather, Palestinians were to exercise limited autonomy, within limited areas of the occupied territories (excluding East Jerusalem), from which Israeli forces would “redeploy” rather than withdraw
  • the issues that had the greatest impact were the effective abandonment of the refugees, who constitute the majority of the Palestinian people, by the leadership; the political-institutional fragmentation of the Palestinian people; the indefinite suspension of the national agenda in exchange for economic reconstruction that was unlikely to materialize (as it stands the Palestinian economy is today but a shadow of what it was in 1993); and the transformation of the national movement into a local authority
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  • Things have turned out very much worse than Oslo’s bitterest critics could have imagined, particularly in the Gaza Strip and Jordan Valley
  • The second enabling policy was Israel’s relentless campaign of mass violence throughout the occupied territories, and the Gaza Strip in particular, to crush the 1987-1993 uprising. It didn’t succeed, but as Graham Usher perceptively noted at the time, it did lay the basis for widespread Palestinian acquiescence, and quite a bit of enthusiasm, in these territories for the false promises of Oslo. 
  • Colonization of course commenced immediately after Israel occupied and initiated the “creeping annexation” of the West Bank and Gaza Strip in June 1967, but Oslo was nevertheless a critical turning point. Although the settlement enterprise constitutes a grave breach of the 1949 Fourth Geneva Convention and a war crime under the Rome Statute of the International Criminal Court (which is the primary reason Israel refused to ratify it), the Oslo Accords as a matter of design make no reference to international law. Further, the sponsor of the Oslo process, the United States, has spared no effort to ensure that international law is not applied to Israeli conduct towards the Palestinians beyond the confines of Oslo, that it is not held accountable for its actions, and that it can continue to act with unrestricted impunity. In other words, the United States ensured that Oslo was implemented beyond the purview of the norms and rules established to govern international conduct. 
  • Israel’s response to the 1994 Hebron Ibrahimi Mosque massacre by a fanatic Israeli-American settler, which it instrumentalized to further entrench its control over Hebron and the mosque rather than confront the settlers, provided an early, definitive indication in this regard. It bears recalling that this response was led by Rabin, his fellow Nobel Peace Prize laureate Shimon Peres, and their military commander Ehud Barak, not Binyamin Netanyahu or Itamar Ben-Gvir.
  • Every time Israel engaged in a new act of colonization, such as the construction of the Har Homa settlement on Jabal Abu Ghnaim in 1997, it was tolerated on the pretext of keeping the process alive
  • If, for the sake of argument, we take claims that Oslo was supposed to conclude with Palestinian statehood seriously, ignoring reality on the ground on the pretext of preserving the diplomatic process helped ensure its failure.
  • A second key Israeli policy enabled by Oslo is Palestinian fragmentation
  • Israel succeeded in making Oslo’s transitional phase a permanent arrangement, in the process transforming the Palestinian Authority (PA) into a local subsidiary of the Israeli state
  • if a Palestinian from the West Bank or Gaza Strip seeks to pursue a claim against Israel for an act committed between 1967 and 1995, let’s say against the Israeli military for unlawful use of force in 1976 or during the 1987-1993 uprising that rendered the claimant quadriplegic, the PA is under an obligation to ensure that the claimant brings the case before a Palestinian rather than Israeli court, and that any financial judgement by that court in the claimant’s favor is paid out by the PA rather than Israel. If the claimant despite the above brings the case before an Israeli court, and an Israeli judge rules in the claimant’s favor, on account of unlawful actions by the Israeli military years before the PA even existed, the PA is required to immediately reimburse Israel the full amount of compensation awarded to the Palestinian by the Israeli court. Article XX perfectly encapsulates the thoroughly lopsided nature of Oslo, the imbalance of power it codified, Israel’s insistence upon achieving retroactive impunity, and its determination to hold its victims responsible for its crimes against them. In my view nothing better demonstrates that this is a conflict between occupier and occupied and nothing else.
  • the enormous economic windfall Israel derived from the Oslo Accords and its integration into the global economy. Most importantly it led the Arab League to renounce its boycott of Israel and – crucially – of companies that do business with Israel. For all its shortcomings this boycott was exponentially more effective than the current Boycott, Divestment, and Sanctions (BDS) movement, and for example kept major Japanese and South Korean firms out of Israel and quite a few Western ones out of the Arab world. It is often forgotten that during the 1970s and 1980s Israel was something of an international pariah, but in the wake of the 1991 Madrid Middle East diplomatic conference and thereafter Oslo was able to normalize relations with much of Africa, South Asia, and Southeast Asia
  • While Oslo promised Palestinian economic development in exchange for political paralysis, growth materialized only temporarily from the desultory baseline where it stood in 1993 at the conclusion of a prolonged uprising. A sharp reversal in fact commenced in the years leading up to the 2000 eruption of the Al-Aqsa Intifada on account of Israeli policy, and this deterioration has continued at an accelerated pace ever since. What Oslo did achieve was to catapult Israel into the ranks of the Organization of Economic Cooperation and Development (OECD), of which it has since 2010 been a full member. It is virtually inconceivable Israel would have acquired this status without Oslo.
  • Palestinians, whether within the West Bank and Gaza Strip, within Israel, in its prison system, or in the diaspora, have been organizing and resisting in myriad ways. Most importantly, they have despite massive and systematic state violence and repression, and betrayal by their own leaders and Arab governments, refused to surrender – putting into practice “the power of refusal” advocated by Said. In doing so the Palestinians have retained the overwhelming support of the international community, and even in the West public opinion increasingly recognizes that Israel is a structurally racist, colonial state
  • when the succession commences Israel is likely to promote a model where different Palestinian population concentrations – Hebron-Bethlehem, Ramallah, Jericho, Nablus-Salfit-Jenin, Qalqilya-Tulkarm – are administered by a series of local chieftains
  • even this model, a regional version of the failed Village Leagues of the 1980s, may prove unpalatable to the lunatics currently running the Israeli asylum. These are forces agitating for wholesale, formal annexation and then some, and which thanks to the inexorable rightward shift of Israeli society, and international and regional support and acquiescence (not unrelated phenomena) are only gaining in strength and power.
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.”
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.
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