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Ed Webb

Buzan on GWoT 2006 - 1 views

terrorism IR GWOT analysis

shared by Ed Webb on 15 Nov 16 - No Cached
  • Washington is now embarked on a campaign to persuade itself, the American people and the rest of the world that the ‘global war on terrorism’ (GWoT) will be a ‘long war’. This ‘long war’ is explicitly compared to the Cold War as a similar sort of zero-sum, global-scale, generational struggle against anti-liberal ideolo-gical extremists who want to rule the world.
  • When the Cold War ended, Washington seemed to experience a threat defi cit, and there was a string of attempts to fi nd a replacement for the Soviet Union as the enemy focus for US foreign and military policy: fi rst Japan, then China, ‘clash of civilizations’ and rogue states
  • the GWoT had the feel of a big idea that might provide a long-term cure for Washington’s threat defi ci
  • ...35 more annotations...
  • the explicit ‘long war’ framing of the GWoT is a securitizing move of potentially great signifi cance. If it succeeds as a widely accepted, world-organizing macro-securitization, it could structure global security for some decades, in the process helping to legitimize US primacy
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      Securitization is a newer concept in IR, mostly associated with the Copenhagen School, although Buzan is English School. The argument here is that a successful rhetorical or framing move can have systemic effects.
  • This article is about the strength and durability of that belief, and whether as a social fact it can be used to create a new political framing for world politics. In addressing this question I diff erentiate between a traditional materialist analysis of threat (whether something does or does not pose a specifi c sort of threat, and at what level) and a so-called securitizationanalysis (whether something can be successfully constructed as a threat, with this understanding being accepted by a wide and/or specifi cally relevant audience).4These two aspects of threat may run in close parallel, but they can also be quite separate. States, like people, can be paranoid (constructing threats where none exist) or complacent (ignoring actual threats). But since it is the success (or not) of the securitization that determines whether action is taken, that side of threat analysis deserves scrutiny just as close as that given to the material side
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      Note how this argument applies long-standing IR concepts from several schools of thought: perception and misperception (Jervis); balance of threat (Walt); ideas as frames for world politics/the international system (Wendt).
  • the only thing that changed is the belief that something had changed
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      There is no consensus on this, but quite a few IR scholars take this view of 9/11
  • US military expenditure remains largely aimed at meeting traditional challenges from other states, with only a small part specifi cally allocated for the GWoT. The signifi cance of the GWoT is much more political. Although a real threat from terrorists does exist, and needs to be met, the main signifi cance of the GWoT is as a political framing that might justify and legitimize US primacy, leadership and unilater-alism, both to Americans and to the rest of the world. This is one of the key diff erences between the GWoT and the Cold War. The Cold War pretty much wasUS grand strategy in a deep sense; the GWoT is not, but, as a brief glance at the USNSS of 2006 will show, is being promoted as if it were
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      Contrast with the Cold War here is important. Notice the disconnection between political framing and budgetary decisions in GWoT. Why is that?
  • Immediately following 9/11 NATO invoked article 5 for the fi rst time, thereby helping to legitimize the GWoT securitization.
  • In the case of Russia, China, Israel and India, the move has been to link their own local problems with ‘terrorism’ to the wider GWoT framing.
  • tied together several longstanding security concerns arising within the liberal order, most notably crime and the trades in drugs and the technologies for weapons of mass destruction (WMD). Within the frame of the liberal international economic order (LIEO), it is well understood that while opening state borders to fl ows of trade, fi nance, information and (skilled) people is generally to be promoted, such opening also has its dark side in which illiberal actors, mainly criminals and terrorists, can take advantage of liberal openness in pursuit of illiberal ends
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      This is Naim's "Five Wars of Globalization"
  • There are fi ve obvious types of event that could signifi -cantly reinforce or undermine the GWoT securitization:ü the impact of further terrorist plans and/or attacks (or plans or attacks success-fully attributed to terrorists);ü the commitment of the United States to the GWoT securitization;ü the legitimacy of the United States as a securitization leader within interna-tional society;ü the (un)acceptability and (il)legitimacy of both the GWoT securitization as a whole or of particularist securitizations that get linked to it;ü the potency of securitizations competing with the GWoT
  • The escalation option would strengthen the GWoT securitization, and the reduction option would weaken it. More of the same does not look suffi cient to sustain the costs of a long-term macro-securitization unless the fear of escalation can be maintained at a high level.
  • Americans, like most other citizens of democracies, quite willingly surrender some of their civil liberties in times of war. But it is easy to see the grounds within American society for reactions against the GWoT securitization, especially if its legitimacy becomes contested. One source of such reactions would be civil libertarians and others opposed to the reasser-tion of government powers through a state of permanent fear and emergency. Another would be isolationists and ‘off shore balancers’ who oppose the current levels and logics of US global engagement
  • Grounds for opposition include its costs, in terms of both money and liberty, and the ineff ectiveness of a permanent increase in the state’s surveil-lance over everything from trade and fi nance to individual patterns of travel and consumption
  • reformulate the GWoT
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      Obama decided to declare it "over" in 2013: http://www.usnews.com/news/articles/2013/05/23/obama-global-war-on-terror-is-over But the rhetorical shift has not led to any notable reduction in GWoT-related drone strikes etc.
  • The US successfully generated and led the macro-securitization of the Cold War against communism generally and the military power of the Soviet Union in particular. It was aided in this both by the broad acceptability of its own qualities as a leader in the West, and up to a point even in the Third World, and by the fact that other states, especially west European ones, plus Turkey, Japan and South Korea, shared the fear of communism and Soviet military power
  • A weight of punditry agrees that the Atlantic has got wider, to the point where even the idea that there is a western community is now under serious threat.
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      That this argument was being advanced halfway through the second GW Bush term, and yet the transatlantic alliance has held firm, should probably give us hope for the relationship surviving the Trump administration.
  • states might support or oppose the GWoT not only on its merits, but also because of how it plays into the global hierarchy of power
  • In terms of the GWoT securitization as a whole, some of the lines of opposition are the same in the rest of the world as they are in US domestic debates, particu-larly over what kinds of emergency action it legitimizes. To the extent that the GWoT becomes associated with actions that seem to contradict the values that the West seeks to represent against the likes of Al-Qaeda, the legitimacy of the securitization is corroded
  • Wilkinson, who has solid credentials as a hard foe of the terrorists, echoes a sentiment widely held across the political spectrum when he says that ‘If we undermine or destroy our hard-won liberties and rights in the name of security against terrorism we will give the terrorists a victory they could never win by the bomb and the gun.’28 In this respect it is of more than passing interest that all of the current strategies being used to pursue the GWoT seem actively to damage the liberal values they purport to defend.
  • Most western leaders (the ever undiplomatic Berlusconi having been a notable excep-tion) have tried hard right from the beginning not to stage the GWoT as a war between the West and Islam. They have trodden the diffi cult line of maintaining that, while most of the terrorists speak in the name of Islam, that does not mean that most adherents of Islam are terrorists or supporters of terrorists. But despite this, the profoundly worrying relinking of religion and politics in the United States, Israel and the Islamic world easily feeds zero-sum confl icts. This linkage could help to embed the securitization of the GWoT, as it seems to have done within the United States and Israel. If religious identities feed the growth of a ‘clash of civilizations’ mentality, as seems to have happened in the episode of the Danish cartoons, this too could reinforce the GWoT securitization. It could, equally, create a reaction against it from those who feel that their particular religion is being mis represented by fundamentalists, and/or from those who object to religious infl uence on politics. The latter is certainly part of what has widened the gap between the US and Europe
  • Al-Qaeda and its like, while clearly posing a threat to the West, do not represent a plausible political alternative to it, Islamist fantasies about a new caliphate notwithstanding. The contrast with the Cold War could not be more striking. Then, the designated opponent and object of securitization was a power that represented what seemed a plausible political alternative: one could easily imagine a communist world. The post-9/11 securitization focused neither on an alternative superpower nor on an alternative ideology, but on the chaos power of embittered and alienated minori-ties, along with a handful of pariah governments, and their ability to exploit the openness, the technology, and in some places the inequality, unfairness and failed states generated by the western system of political economy
  • Iraq. The US and British governments attempted to justify the invasion by linking Saddam Hussein’s regime to both terrorists and WMD. This securitizing move was successful within the United States, but vigorously contested in many other places, resulting in serious and damaging splits in both the EU and NATO. Russia was generally very supportive of the GWoT securitization, seeking to link its own diffi culties in Chechnya to it, but Putin joined Germany and France in strong opposition to the US-led invasion of Iraq. The ill-prepared occupation that followed the successful blitzkrieg against Iraq only deepened the splits, with many opponents of the war agreeing with Dana Allin’s assessment that ‘Iraq was probably the war that bin Laden wanted the United States to fi ght’,29and Wilkinson’s that it was ‘a gratuitous propaganda gift to bin Laden’.30 During the 2004 US election, even John Kerry began to argue the point that invasion of Iraq was distracting eff ort away from the GWoT.31 As the political disaster in Iraq continues to unfold, it is hard to avoid the conclusion that it was both a tactical and strategic blunder of epic proportions in relation to the problem of global terrorism represented by Al-Qaeda
  • There are quite a variety of possible candidates for competing securitizations. Rising sea levels or approaching asteroids, or the spread of a new killer plague, could easily put planetary environmental concerns at the top of the securitiza-tion agenda. But in conventional mode the most likely threat to the GWoT as dominant macro-securitization comes from the rise of China
  • It was perhaps only the perceived remoteness in time of China achieving superpower status that prevented this securitization from becoming the dominant rhetoric in Washington during the 1990s. As time marches on, the rise of China becomes more real and less hypothetical
  • Given an ongoing disposition within Washington to construct China as a threat, the likely increase in Chinese power, both relative and absolute, and the existence of tensions between the two governments over, inter alia, Taiwan, trade and human rights, it is not diffi cult to imagine circumstances in which concerns about China would become the dominant securitization within the United States
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      Is this a new "pivot to Asia" we can imagine happening under the Trump administration?
  • o long as China conducts its so-called ‘peaceful rise’ in such a way as not to threaten its neighbours or the general stability of interna-tional society, many outside the United States might actually welcome it. Europe is likely to be indiff erent, and many countries (e.g. Russia, China, India, Iran, France, Malaysia) support a rhetoric of multipolarity as their preferred power structure over the predominance of the United States as sole superpower.
  • Because a world govern-ment is not available, the problem pits international society against global uncivil society
  • By hardening borders, homeland security measures erode some of the principles of economic liberalism that they are designed to defend; and the same argument could be made about the trade-off between enhanced surveillance under the GWoT and the civil liberties that are part of the core referent object of western civilization
  • War is seldom good for liberal values even when fought in defence of them
  • Equalizing starts from the assumption that the root causes of terrorism lie in the inequalities and injustices that are both a legacy of human history and a feature of market economies. The long-term solution to terrorism in this perspective is to drain the waters in which the terrorists swim by redressing the inequalities and injustices that supposedly generate support for them. It is not my concern here to argue whether this contested cause–eff ect hypothesis is correct or not. My point is that if a policy along these lines is pursued, it cannot avoid undermining the foundations of a competitive market economy
  • f inequality is the source of terrorism, neo-liberal economics does not provide a quick enough solution
  • terrorism poses a double threat to liberal democratic societies: open direct assaults of the type that have become all too familiar, and insidious erosion as a consequence of the countermeasures taken
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      This is an essential point to understand about terrorism, suggesting why groups continue to adopt the tactic and why, sometimes, it can succeed.
  • f it is impossible to elimi-nate terrorists, as is probably the case, then this drive risks the kind of permanent mobilization that inevitably corrodes liberal practices and values
  • If the priority is to preserve liberal values, one is pushed towards the option of learning to live with terrorism as an everyday risk while pursuing counter-measures that stop short of creating a garrison state.
  • The necessary condition for doing so is that state and society raise their toleration for damage as a price they pay for openness and freedom. Kenneth Waltz long ago made the point that ‘if freedom is wanted, insecurity must be accepted’,38 though it has to be said that this part of his analysis has made little impact on US thinking about national security
  • if terrorism is a problem of the long term, as it well might be for advanced industrial societies, it would require a level of democratic sophistication and commitment rather higher than anything yet seen
  • Europe is more resilient and better able to defend its values without resorting to excesses of securitization. By comparison, the United States seems a softer target, too easily pricked into intemperate reactions that in themselves work to under-mine what it claims to stand for
    • Ed Webb
      Ed Webb on 15 Nov 16
       
      This is broadly, historically true. But note France's ongoing state of emergency since the Paris attacks. The move from resilience toward garrison-state approaches is tempting for any government in times of popular uncertainty and fear.
Ed Webb

How Goldman Sachs Created the Food Crisis - By Frederick Kaufman | Foreign Policy - 2 views

www.foreignpolicy.com/..._sachs_created_the_food_crisis

food markets speculation hunger land agriculture

shared by Ed Webb on 24 Aug 12 - No Cached
  • in 1999, the Commodities Futures Trading Commission deregulated futures markets. All of a sudden, bankers could take as large a position in grains as they liked, an opportunity that had, since the Great Depression, only been available to those who actually had something to do with the production of our food
  • After World War II, the United States was routinely producing a grain surplus, which became an essential element of its Cold War political, economic, and humanitarian strategies -- not to mention the fact that American grain fed millions of hungry people across the world
  • Futures markets traditionally included two kinds of players. On one side were the farmers, the millers, and the warehousemen, market players who have a real, physical stake in wheat. This group not only includes corn growers in Iowa or wheat farmers in Nebraska, but major multinational corporations like Pizza Hut, Kraft, Nestlé, Sara Lee, Tyson Foods, and McDonald's -- whose New York Stock Exchange shares rise and fall on their ability to bring food to peoples' car windows, doorsteps, and supermarket shelves at competitive prices. These market participants are called "bona fide" hedgers, because they actually need to buy and sell cereals. On the other side is the speculator. The speculator neither produces nor consumes corn or soy or wheat, and wouldn't have a place to put the 20 tons of cereal he might buy at any given moment if ever it were delivered. Speculators make money through traditional market behavior, the arbitrage of buying low and selling high. And the physical stakeholders in grain futures have as a general rule welcomed traditional speculators to their market, for their endless stream of buy and sell orders gives the market its liquidity and provides bona fide hedgers a way to manage risk by allowing them to sell and buy just as they pleased.
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  • Every time the due date of a long-only commodity index futures contract neared, bankers were required to "roll" their multi-billion dollar backlog of buy orders over into the next futures contract, two or three months down the line. And since the deflationary impact of shorting a position simply wasn't part of the GSCI, professional grain traders could make a killing by anticipating the market fluctuations these "rolls" would inevitably cause. "I make a living off the dumb money," commodity trader Emil van Essen told Businessweek last year. Commodity traders employed by the banks that had created the commodity index funds in the first place rode the tides of profit
  • dozens of speculative non-physical hedgers followed Goldman's lead and joined the commodities index game, including Barclays, Deutsche Bank, Pimco, JP Morgan Chase, AIG, Bear Stearns, and Lehman Brothers, to name but a few purveyors of commodity index funds. The scene had been set for food inflation that would eventually catch unawares some of the largest milling, processing, and retailing corporations in the United States, and send shockwaves throughout the world
  • when the global financial crisis sent investors running scared in early 2008, and as dollars, pounds, and euros evaded investor confidence, commodities -- including food -- seemed like the last, best place for hedge, pension, and sovereign wealth funds to park their cash. "You had people who had no clue what commodities were all about suddenly buying commodities," an analyst from the United States Department of Agriculture told me. In the first 55 days of 2008, speculators poured $55 billion into commodity markets, and by July, $318 billion was roiling the markets. Food inflation has remained steady since
  • The average American, who spends roughly 8 to 12 percent of her weekly paycheck on food, did not immediately feel the crunch of rising costs. But for the roughly 2-billion people across the world who spend more than 50 percent of their income on food, the effects have been staggering: 250 million people joined the ranks of the hungry in 2008, bringing the total of the world's "food insecure" to a peak of 1 billion -- a number never seen before.
  • a problem familiar to those versed in the history of tulips, dot-coms, and cheap real estate: a food bubble
  • The more the price of food commodities increases, the more money pours into the sector, and the higher prices rise
  • Not only does the world's food supply have to contend with constricted supply and increased demand for real grain, but investment bankers have engineered an artificial upward pull on the price of grain futures. The result: Imaginary wheat dominates the price of real wheat, as speculators (traditionally one-fifth of the market) now outnumber bona-fide hedgers four-to-one.
  • speculation has also created spikes in everything the farmer must buy to grow his grain -- from seed to fertilizer to diesel fuel
  • from 2005 to 2008, the worldwide price of food rose 80 percent -- and has kept rising
  • I asked a handful of wheat brokers what would happen if the U.S. government simply outlawed long-only trading in food commodities for investment banks. Their reaction: laughter. One phone call to a bona-fide hedger like Cargill or Archer Daniels Midland and one secret swap of assets, and a bank's stake in the futures market is indistinguishable from that of an international wheat buyer. What if the government outlawed all long-only derivative products, I asked? Once again, laughter. Problem solved with another phone call, this time to a trading office in London or Hong Kong; the new food derivative markets have reached supranational proportions, beyond the reach of sovereign law
  • nervous countries have responded instead with me-first policies, from export bans to grain hoarding to neo-mercantilist land grabs in Africa. And efforts by concerned activists or international agencies to curb grain speculation have gone nowhere. All the while, the index funds continue to prosper, the bankers pocket the profits, and the world's poor teeter on the brink of starvation
  • Ed Webb on 24 Aug 12
Ed Webb

Reimagining US Engagement with a Turbulent Middle East - MERIP - 1 views

merip.org/...t-with-a-turbulent-middle-east

US USA opinion military diplomacy policy foreignpolicy analysis MENA middleeast IR

shared by Ed Webb on 30 Jun 20 - Cached
  • the debate about US foreign policy needs to be not only about redefining US interests and strategy but also focused on how to transform America’s self-identity and the domestic political and economic structures that shape US interactions abroad
  • US foreign policy toward the Middle East has always been driven as much by domestic politics and American self-identity as by different conceptions of strategic interest
  • a diverse set of policy makers, scholars and large segments of the US public, have grown deeply concerned about the high economic and human cost of US interventions in the Middle East. Trump even sought office vowing to end endless wars. America’s overly militarized approach, they argue, has not brought stability or peace to the region. Many also suggest that the longstanding US national interests at stake, such as the flow of oil and Israeli security, no longer seem to be at risk while many US goals—such as a two-state solution for Israel and the Palestinians, the rollback of Iranian influence and the elimination of terrorism—no longer look achievable.
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  • Calls for the United States to pull back reject US intervention and hegemony in the Middle East, but they also seek to insulate the United States from the damage past policies have inflicted on the region and distance Americans from the peoples impacted.
  • The decline of US hegemony and its dominance of global economic and political systems, Schweller explains, has led Americans to “demand a more narrowly self-interested foreign policy” that seeks to insulate Americans from “the vagaries of markets and globalization.” The animating logic of America First, however, does not focus on the country’s global role as much as on the view embraced by Trump’s populist support base that US policy should counter the (perceived) threats posed by transnational flows and interdependence.
  • Much of the mainstream foreign policy debate in opposition to Trump has revolved around voices advocating for the US to return to a more modest, more multilateral version of its role as a global hegemon that seeks to rebuild the liberal international order.[4] Others are calling for an all-out mobilization against the rise of China and Russia.[5]
  • Support for restraint has accelerated with recognition of the declining strategic importance of the Middle East and the absence of major threats from the region to core US interests. With the massive expansion of US domestic energy production, Americans increasingly question the US military presence in the Persian Gulf and security commitment to allies in the region. Meanwhile, with unchallenged Israeli control over Palestinian territories, its military capacity that includes nuclear weapons and growing ties between Israel and Arab Gulf states, Israel is in a more secure strategic position than it has ever been. Advocates of restraint also understand that Iran has a limited ability to project conventional military power and even if it wielded a nuclear weapon, its use could be deterred. Lastly, restraint recognizes that the hyper-militarized approach of the global war on terror engages US forces in continuous military operations that are politically unaccountable and often exacerbate the political and socioeconomic conditions that foster armed non-state actors and political violence in the first place.
  • restraint fails to address the legacies of past US involvement in the region. The hope of insulating the United States from regional instability and future conflicts is also unlikely to be sustainable in the long run.
  • the Israeli right and their US supporters—including the evangelical right and Islamophobic populists—have been unconstrained in their efforts to shape US goals and policies based on a close identification with the Israeli right and Israeli militarism at the expense of the Palestinians
  • While advocates of restraint have long opposed excessive US backing of Israel, without the mobilization of domestic political forces that seek to dissociate the United States from Israeli militarism and support Palestinian human rights, a future US president dedicated to restraint will likely find little strategic value or political support for reversing current policies beyond trimming the price tag.
  • maintain close ties to the Saudi regime and other Arab Gulf states through flows of petrodollar recycling in the form of massive arms sales that sustain American jobs, corporate profits and campaign donations
  • today US ties to the Gulf are being shaped by invented security rationales and material interests. Networks of arms sales, private military contractors, logistics firms and Gulf-funded think tanks—often with cooperation from Israel and its backers—have defined US policies by portraying Iran as a strategic threat, supporting arms sales in the name of so-called economic security and defending the strategic importance of protecting the rule of autocratic elites. At the same time, many segments of the US military and national security state have deeply rooted interests in maintaining bases and military-to-military ties in the region
  • Americans inside and outside of government will not quickly abandon the benefits they receive from economic, military and political ties to Gulf rulers
  • In the foreseeable future, the Middle East will likely experience more instability and conflict due to, in large part, the legacy of US policies over the past two decades, which include the invasion of Iraq, interventions in Libya and Syria, the fostering of proxy wars, the promotion of neoliberal economic reforms, massive arms sales and support for aggressive actions by regional allies such as Israel and Saudi Arabia
  • the increased capacities for self-organization by armed non-state actors has helped sustain the regional environment of turbulence
  • It is unlikely that the United States could reclaim the diplomatic credibility needed to rebuild norms of restraint and balancing after having embraced militarism and unilateralism for so long
  • developments in the region will likely impact other US interests relating to the global economy, rivalry with China, climate change, nuclear proliferation and refugee flows
  • while the ideological and media infrastructure that mobilized fears to build the spurious case for the Iraq war have been temporarily disrupted, similar processes could be activated in the future to convert fears, such as of an Iranian cyberwar capability, a Chinese naval base in the region, or a resurgence of ISIS, into a strategic threat requiring a US response
  • the work of forging an alternative path for the United States in the Middle East, one that embraces sustainable anti-imperialism and demilitarization, must go beyond redefining US strategic interests to transforming domestic political, economic and ideological forces that shape US ties to the Middle East
  • In Notes on a Foreign Country, Suzy Hansen tries to diagnose the current era of anxiety and confusion felt by Americans living in an era when aspects of US exceptionalism and global hegemony are waning. She writes, “It is also perhaps the first time Americans are confronting a powerlessness that the rest of the world has always felt, not only within their own borders but as pawns in a larger international game. Globalization, it turns out, has not meant the Americanization of the world; it has made Americans, in some ways, more like everyone else.”
  • The effort to envision an alternative, post-exceptionalist US role in the world requires refashioning the debate so that Americans come to view the insecurities experienced by societies abroad as counterparts to the challenges Americans face at home.
  • Within the turbulent Middle East regional system, efforts to promote security would require not only an end to US military primacy and dominance but also a limit on regional and external interventions, the demobilization of the numerous armed non-state militias and proxy forces and a reversal of processes of state erosion and territorial fragmentation.
  • Americans need to envision a new internationalism that no longer seeks to remake the world in the American image but defines a new way for living within it
Ed Webb

The Coronavirus Oil Shock Is Just Getting Started - 0 views

foreignpolicy.com/...-shock-is-just-getting-started

energy oil economy pandemics Russia China US USA KSA Saudi Iran Iraq Algeria Angola Nigeria markets climate

shared by Ed Webb on 05 Jul 20 - Cached
  • 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
  • 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
  • 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.
  • Ecuador is the second Latin American country after Argentina to enter technical default this year.
  • 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.
Julianne Greco

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

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  • 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

The Oil for Security Myth and Middle East Insecurity - MERIP - 0 views

merip.org/...h-and-middle-east-insecurity-2

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  • Guided by the twin logics of energy security and energy independence, American actions and alliances in region became a self-fulfilling prophecy. The very thing the United States sought to eliminate in the Middle East—insecurity—became a major consequence of America’s growing and increasingly militarized entanglement.
  • In effect, the essential relationship of dependency between the United States and the Middle East has never been “oil for security.” It has in fact been oil for insecurity, a dynamic in which war, militarization and autocracy in the region have been entangled with the economic dominance of North Atlantic oil companies, US hegemony and discourses of energy security.
  • Although the destabilizing contradictions of this dependency have now undercut both American hegemony and the power of the North Atlantic hydrocarbon industries, the oil-for-insecurity entanglement has nonetheless created dangerously strong incentives for more conflict ahead.
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  • Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed
  • In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.
  • When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.
  • The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible
  • fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008
  • In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.
  • In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices
  • What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]
  • For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.
  • The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.
  • For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide
  • cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.
  • the myth of authoritarian stability
  • A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region
  • A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both
  • From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.
  • profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.
  • While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.
Ed Webb

Beyond Oil: Lithium-Ion Battery Minerals and Energy Security - Foreign Policy Research ... - 0 views

www.fpri.org/...y-minerals-and-energy-security

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  • Should the mass adoption of electric vehicles occur, access to reliable and affordable sources of minerals like cobalt, graphite, lithium, manganese, and nickel, which are used in modern electric-vehicle batteries, will come to occupy a larger share of energy security concerns, especially since one country has already gained control over much of the world’s production and processing of those minerals
  • oil has remained abundant and affordable, despite major production disruptions during the Arab Spring from 2010-2012, in Libya from 2013-2016, and in Venezuela after 2017. In fact, oil prices had dropped 60 percent from their 2008 highs by early 2020, even before the COVID-19 pandemic had made a dent in the global economy.
  • falling oil prices throughout the 2010s may have lulled Western policymakers into believing that the Russian Federation, whose economy is heavily reliant on oil and natural gas exports, would become more docile. It did not; instead, it continued to modernize its military and intimidate its neighbors
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  • OPEC and Russia bargained for months, but talks finally broke down after Moscow refused to limit its oil production to help stabilize oil prices in the wake of the slump in global oil demand caused by the COVID-19 pandemic. Calculating that it could hurt Russia enough to force it back to the negotiating table, Saudi Arabia boosted its daily oil output by 20 percent, flooding the market with oil. Not to be intimidated, Russia responded with a short-term increase in its own oil output (possibly to strike back at Saudi Arabia or to force some American shale-oil companies out of business or both). As a result, oil prices collapsed. The futures price for West Texas Intermediate crude touched a remarkable -$37 per barrel. Although beneficial for oil consumers, the Russia-Saudi Arabia oil price war was a reminder of the influence that state-driven oil producers still had over the world’s energy security.
  • a single country, China, has gained control over much of the world’s production and processing of the cobalt, graphite, lithium, manganese, and nickel used in lithium-ion batteries, the type of electricity-storage devices favored by electric-vehicle manufacturers today.
  • Chinese companies now control almost half of the DRC’s cobalt output, which constitutes over two-thirds of the world’s production. Perhaps of greater concern, China has come to dominate the refining and processing of those minerals. Eighty percent of the cobalt sulphates and oxides used for lithium-ion battery cathodes are processed in China.
  • China’s monopoly can be largely attributed to its relatively low energy costs and less stringent environmental regulations.
  • Though China controls a smaller share of the world’s production of lithium than that of other minerals, it has been buying up stakes in lithium mines around the globe.
  • Moving up the value chain, it is expected to build 101 of the 136 lithium-ion battery manufacturing plants that are currently planned over the next decade
  • n 2010, China abruptly restricted its rare-earth metal exports to Japan, nominally to protect the environment. But after a lengthy review, the World Trade Organization ruled against China’s restrictions. Since then, worries about relying on China as a strategic-minerals supplier have continued to grow. Sometimes, China feeds those fears. In one 2019 incident, China’s state-run Global Times flaunted the country’s dominance over rare-earth metals as a strategic weapon against other countries with the headline “China gears up to use rare-earth advantage.” Such not-so-veiled threats from government-linked media only fan suspicions that China will behave no better than Russia or Saudi Arabia—and possibly worse.
  • In 2019, the U.S. Department of State launched the Energy Resources Governance Initiative to “promote resilient and secure energy resource mineral supply chains” for all kinds of renewable energy and battery storage technologies.  The initiative’s membership has grown to include Australia, Botswana, Canada, Peru,
  • the world appears to be swapping its old dependency on OPEC and Russia, a fractious bunch that until recently was losing power to American oil-shale upstarts, for a new one on China, a single country with a one-party government
Ed Webb

Saudi Gazette - Slow down trade with Russia, GCC firms urged - 0 views

www.saudigazette.com.sa/index.cfm

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  • “The Russians need us commercially more than we need them. The entire global market is our playground, from Australia to Hawaii. We are traders by birth and culture. The GCC countries produce more than 26 percent of the world’s oil. We are gradually transforming into a global market for gas supplies and renewable energy, in particular, solar energy. We truly could do without them.”
  • the GCC is looking to adapt to recent global economic and trade developments. This means seeking to strengthen ties with other fast-growing and influential countries such as Brazil, China and India, without neglecting trade relations with current primary partners. These international changes, which include the European Union’s enforced trade restrictions on GCC countries, require the GCC to reform its global economic relations
Ed Webb

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

foreignpolicy.com/...ng-a-crisis-on-europes-borders

EU mediterranean migration economy pandemics Turkey Egypt Tunisia Jordan Ukraine

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  • 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

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

www.washingtonpost.com/...prices-lead-to-social-upheaval

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  • 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 New Energy geopolitics and the Gulf Arab States - The Geopolitics - 0 views

thegeopolitics.com/itics-and-the-gulf-arab-states

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  • today’s largest volumes of global seaborne crude oil – around 30% – along with a significant volume of LNG, passes through its Straits of Hormuz, making it the most important maritime oil chokepoint which connects the Gulf states with key global markets in the East and the West
  • The International Energy Agency (IEA) sees that the world can reach net-zero emissions by 2060, wherein 75% of reduction comes from energy efficiency and renewable energy, with another 14% from carbon capture and storage, 6% from nuclear and 5% from fuel switching. In this context, the fossil fuels’ share of the global energy mix falls from 82% in 2014 to 35% in 2060 under the 2°C scenario, or to 26% in the below 2°C scenario.
  • Renewable technologies and batteries require certain minerals for their production, such as cobalt, lithium, nickel and rare earth elements. Despite the fact that renewable endowments for wind, solar, geothermal and biomass are scattered geographically, controlling the production of these new commodities will have major geopolitical consequences as they are based only in a selected number of countries such as Chile, Bolivia, Mongolia, and the Democratic Republic of Congo (DRC).
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  • At present, China dominates the world’s investment and innovation in renewable energy technologies.
  • the importance of the Gulf Arab states will be eroded not only because of the decline in global demand for oil but also because Gulf countries are not rich in the minerals required to build renewable energy technologies, and are highly dependent on technology imports rather than in-house technology innovation and research and development
  • all hydrocarbon producer economies will see a fall in total rent of about 40% by 2040 compared with the ‘golden years’ of 2010-14 due to rigorous policies on fuel switching and efficiency to reach net-zero emissions in the second half of this century
  • In 2013, R&D investment in Gulf countries averaged 0.3% of the gross domestic product (GDP), compared with 2%–3% in industrialized countries. The 0.3% figure is far less than the minimum percentage (1%) needed for an effective science and technology base specified by UNESCO.
  • in the new energy era, the Gulf Arab states are still advantaged by their geographical location. These countries are specially positioned for harnessing wind and solar energy
Ed Webb

Our Oligarch - 0 views

jewishcurrents.org/our-oligarch

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  • Abramovich is perhaps the most visible of the “oligarchs” surrounding Putin, who are widely perceived as extensions of the Russian president and keepers of a vast fortune that is effectively under the Kremlin’s control. Much of this wealth was extracted from Russia’s enormous energy and mineral resources, and is now stashed in secret bank accounts in the Mediterranean and the Caribbean, in empty mansions and condos from London to Manhattan to Miami, and in yachts and private jets on the French Riviera.
  • as much as 60% of Russia’s GDP is offshore
  • The reserved, gray-bearded Abramovich is notoriously litigious toward critics who seek to detail his close ties to Putin. Last year, he successfully sued the British journalist Catherine Belton, who claimed in her 2020 book Putin’s People that the Russian president dictated Abramovich’s major purchases, including his decision to buy Chelsea. He also extracted an apology from a British newspaper for calling him a “bag carrier” for the Russian president.
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  • Abramovich—who, like many of the most prominent Russian oligarchs, is Jewish—has for years been a prolific donor to Jewish philanthropies. He has given half a billion dollars to Jewish charities over the past two decades, sending money linked to Putin’s kleptocratic regime circulating through Jewish institutions worldwide
  • Among other things, he has profoundly influenced Jewish life on three continents, developing deep financial ties with major communal institutions. He is partly responsible for the preeminent role played by Chabad in the religious life of post-Soviet Russia, for the growth of major Jewish museums from Russia to Israel, for a raft of anti-antisemitism programming involving leading American and British Jewish organizations, and for the expansion of Israeli settlements in East Jerusalem
  • the Jewish world is forced to reckon with its long embrace of Abramovich, and with the moral costs of accepting his money
  • Certain Soviet Jews of Abramovich’s generation found themselves at the forefront of an emerging market economy. Concentrated in white collar professions but systematically excluded from desirable posts and from the top ranks of the Communist Party, they were unusually prepared—and, perhaps, motivated—to find legal and semi-legal points of entry into the tightly-regulated commerce between the Soviet Union and the West. This helps explain why, as the historian Yuri Slezkine writes in The Jewish Century, six of the seven top oligarchs of 1990s Russia (Petr Aven, Boris Berezovsky, Mikhail Fridman, Vladimir Gusinsky, Mikhail Khodorkovsky, and Alexander Smolensky) were ethnic Jews.
  • Boris Yeltsin soon initiated the firesale privatization of state-controlled industries at the urging of Washington and the IMF—a reckless transition from a command economy to a capitalist one that drove millions of Russians into poverty
  • the Yeltsin administration implemented its infamous loans-for-shares program, selling off key state industries in rigged auctions to Russia’s new business elite for a fraction of their real value in order to stabilize the state’s finances in the short term. Berezovsky and Abramovich gained ownership stakes in Sibneft, one of the world’s largest energy companies, and became instant billionaires.
  • In 1996, the handful of leading oligarchs pooled their financial resources—and directed their media companies’ coverage—to reelect the deeply unpopular Yeltsin over his Communist challenger, Gennady Zyuganov, whose platform of re-nationalizing industries terrified both the Russian and Western business classes
  • Fearing that it was unsustainable for a small group of mostly Jewish billionaires to prop up an ailing, visibly alcoholic president—especially after the ruble collapsed in 1998, dragging down a generation’s living standards and initiating a hunt for scapegoats—Berezovsky spearheaded an effort the following year to replace Yeltsin with a young, healthy, disciplined, and then-obscure former KGB officer named Vladimir Putin. It was a decision he would come to regret.
  • wealth so easily acquired could just as easily be taken away. In 2001, Putin hounded Berezovsky and Gusinsky—whose TV networks had criticized the president’s mishandling of a naval disaster—with criminal indictments for tax fraud, forcing them to sell their media and energy holdings at a fraction of their true cost. As a result, Abramovich, who had never challenged Putin, acquired control of Sibneft, while Berezovsky fled to the United Kingdom and Gusinsky departed for Spain and then Israel. Abramovich again came out ahead in 2003, when the oligarch Khodorkovsky was sent to a Siberian prison on tax charges after criticizing Putin for corruption, leaving his assets in the energy sector to be redistributed among those on good terms with the president.
  • “I don’t think there is a percent of independence in Abramovich,” said Roman Borisovich, a Luxembourg-based Russian banker turned anti-corruption activist who once encountered Abramovich through Berezovsky in the 1990s. “For Abramovich to stay alive, he had to turn against his master [Berezovsky], which is what he did, and he has served Putin handsomely ever since.”
  • Whereas in the Yeltsin era, the term identified a system dominated by truly independent tycoons, “Putin’s top priority when he came to power was to break that system, replacing it with a system of concentrated power in which men who are inaccurately referred to as oligarchs now have only as much access to wealth as Putin allows them to have,”
  • Even as he built up his credibility with Putin, he joined many of his fellow oligarchs in stashing his billions in Western financial institutions, which proved eager to assist. “Elites in the post-Soviet space are constantly looking to move their assets and wealth into rule-of-law jurisdictions, which generally means Western countries like the US or UK,”
  • In 2008, Berezovsky sued his former protege over his confiscated Sibneft shares; then, in 2012, seven months after a judge rejected all of his claims, Berezovsky died in his London home in an apparent suicide. Some former associates believe he might have been murdered
  • In 2017, BuzzFeed reported that US spy agencies suspect Russian involvement in as many as 14 mysterious deaths in Britain over the previous decade, including Berezovsky’s. In the wake of the 2018 poisoning of the defected double agent Sergei Skripal and his daughter, British intelligence services became increasingly wary of wealthy expats with close ties to the Kremlin. Diplomatic strain stymied Abramovich’s effort to acquire a Tier 1 British visa, which would have enabled him to stay in the country for 40 months.
  • “No one forced the British or American real estate industries to toss their doors open to as much illicit wealth as they could find, or the state of Delaware to craft the world’s greatest anonymous shell company services,” said Michel. “Western policymakers crafted all of the policies that these oligarchs are now taking advantage of.”
  • Abramovich also safeguarded a significant part of his fortune in the US, especially during his third marriage to the Russian American socialite and fashion designer Dasha Zhukova. Even after their 2018 divorce, Abramovich began the process of converting three adjacent townhouses on Manhattan’s Upper East Side into what will eventually become the largest home in the city, an “urban castle” valued at $180 million—making him one of the many wealthy Russians sheltering assets in New York’s booming and conveniently opaque real estate sector. (The mansion is intended for Zhukova and their two young children; Abramovich also has five children from his second marriage based primarily in the UK.) He also owns at least two homes in Aspen, Colorado, a gathering place of the global elite.
  • the oligarchs are now credibly threatened with exile from the West. Countries like France and Germany have already begun confiscating yachts owned by select Russian officials. And although the UK is still struggling to come up with a legal basis for following suit, leading politicians like Labour Leader Keir Starmer are urging direct sanctions against Abramovich. “Abramovich’s reputation has finally collapsed, along with the other supposedly apolitical oligarchs,” Michel said four days after Russia invaded Ukraine. “There’s no recovery from this. This is a titanic shift in terms of how these oligarchs can operate.”
  • Israel has been more hesitant to hold him to account.
  • In 2018, Abramovich acquired Israeli citizenship through the law of return, immediately becoming the second-wealthiest Israeli, behind Miriam Adelson. As a new Israeli citizen, he joined several dozen Russian Jewish oligarchs who have sought citizenship or residency in the Jewish state—a group that includes Fridman, Gusinsky, and the late Berezovsky. Since 2015, Abramovich has owned and sometimes lived in the 19th-century Varsano hotel in Tel Aviv’s trendy Neve Tzedek neighborhood, and in 2020 he purchased a mansion in Herzliya for $65 million—the most expensive real estate deal in the country’s history
  • As an Israeli passport holder, Abramovich is eligible to visit the UK for six months at a time and is exempt from paying taxes in Israel on his overseas income for the first decade of his residency
  • Given his increasingly precarious geopolitical position, Jewishness has become Abramovich’s identity of last resort—and Jewish philanthropic giving has provided him with an air of legitimacy not only in Israel but throughout the Jewish world. Abramovich and his fellow oligarchs “need to spend some money to launder their reputations,” said Borisovich, the anti-corruption activist. “They cannot be seen as Putin’s agents of influence; they need to be seen as independent businessmen. So if they can exploit Jewish philanthropy or give money to Oxford or the Tate Gallery, that’s the cost of doing business.”
  • A 2017 article in Politico, which identified Abramovich and Leviev as “Chabad’s biggest patrons worldwide,” also referred to Lazar as “Putin’s rabbi.” Lazar has often run interference for the Russian president—for instance, by defending his initial crackdown on oligarchs like Gusinsky as not motivated by antisemitism, or by praising Russia as safe for Jews under his governance. (The researcher noted that Putin has also cultivated prominent loyalists in other Russian religious communities, including the Orthodox Church and Islam.)
  • Abramovich also significantly funded the construction of the $50 million Jewish Museum and Tolerance Center in Moscow, which opened in 2012 (and to which Putin pledged to donate a month of his presidential salary). In a 2016 article in The Forward, the scholar Olga Gershenson suggested that the museum’s narrative bordered on propaganda, framing Jews as “a model Russian minority” and “glorifying and mourning . . . without raising more controversial and relevant questions that would require the viewer to come to terms with a nation’s difficult past.”
  • “It concentrates on the Soviet victory over the Nazis, and then it ends by saying that Jews in Putin’s Russia are all good and content.”
  • “Say No to Antisemitism” has brought together Chelsea players and management with many top Jewish groups; the currents heads of the ADL, the WJC, the Conference of Presidents of Major American Jewish Organizations, and the Holocaust Educational Trust, among others, are all listed on its steering committee. The campaign is at least in part intended to address the antisemitism of some Chelsea fans, who have been known to shout “Yid!” and hiss in imitation of gas chambers when taunting fans of the rival club Tottenham, which has a historically Jewish fan base that proudly refers to itself as “the Yid Army.” Last November, Israeli President Isaac Herzog described the campaign as “a shining example of how sports can be a force for good and tolerance.”
  • Abramovich is also one of the primary benefactors of a Holocaust museum that opened in Porto last May. As of last year, Abramovich is a newly minted citizen of Portugal (and by extension, the European Union), which offers such recognition to anyone who can prove Sephardic ancestry dating back before the Portuguese expulsion of Jews in 1496.
  • Berel Rosenberg, a representative of the museum, denied that Abramovich had given the Porto Jewish community any money besides a €250 fee for Sephardic certification; regarding reports to the contrary, he alleged that “lies were published by antisemites and corrupt journalists.” However, Porto’s Jewish community does acknowledge that Abramovich has donated money to projects honoring the legacy of Portuguese Sephardic Jews in Hamburg, and he has been identified as an honorary member of Chabad Portugal and B’nai B’rith International Portugal due to his philanthropic activities in the country.
  • Abramovich has made a $30 million donation for a nanotechnology research center at Tel Aviv University; funded a football-focused “leadership training program” for Arab and Jewish children; and supported KKL-JNF’s tree-planting campaign in the southern Negev, which is dedicated to Lithuanian victims of the Holocaust—and which has drawn opposition from local Bedouin communities who view it as a land grab.
  • he has kept his support for Israeli settlements well-hidden
  • Abramovich has used front companies registered in the British Virgin Islands to donate more than $100 million to a right-wing Israeli organization called the Ir David Foundation, commonly known as Elad, which has worked since the 1980s to move Jewish settlers into occupied East Jerusalem. Elad also controls an archeological park and major tourist site called City of David, which it has leveraged in its efforts to “Judaize” the area, including by seizing Palestinian homes in the surrounding neighborhood of Silwan and digging under some to make them uninhabitable.
  • “In order for settlers to take over Palestinian homes, they need a lot of money,” said Hagit Ofran, co-director of the Settlement Watch project at the Israeli organization Peace Now, “both to take advantage of poor Palestinians for the actual purchases, and then for the long and expensive legal struggle that follows, and that can bankrupt Palestinian families. The money is crucial.” Of Abramovich’s support for Elad, she added, “That’s a lot from one source; I assume that if you give such a big donation, you know what it is for.”
  • Just two days before Putin launched his invasion of Ukraine, it was reported that Abramovich is donating tens of millions of dollars to Yad Vashem, the global Holocaust remembrance center in Jerusalem
  • Yad Vashem chairman Dani Dayan joined the heads of multiple Israeli charitable organizations in urging the US not to sanction Abramovich. The letter was also signed by Chief Rabbi of Israel David Lau and representatives of Sheba Medical Center, Tel Aviv University, and Elad
  • Oleg Deripaska and Mikhail Fridman, were already calling for peace negotiations just three days after the invasion. (Fridman and Deripaska are also major Jewish philanthropists, as are other Russian oligarchs including Petr Aven, Yuri Milner, and Viktor Vekselberg. All of them now face global scrutiny.)
  • Even before he announced he would be setting up a charity to help victims in Ukraine, members of Abramovich’s family were quick to distance themselves from the war: A contemporary art museum in Moscow co-founded by Abramovich and Zhukova has announced that it will halt all new exhibitions in protest of the war. Abramovich’s 27-year-old daughter Sofia, who lives in London, posted a message on her popular Instagram account that read, “The biggest and most successful lie of the Kremlin’s propaganda is that most Russians stand with Putin.”
  • Abramovich and others have spent more than two decades loyally serving and profiting off Putin’s corrupt and violent regime—one that has been accused of murdering and jailing journalists and political dissidents and of committing war crimes from Chechnya to Syria. And for much of that time, Jewish institutions worldwide have been more than happy to take money from Abramovich and his peers
  • longstanding philanthropic ties may affect the Jewish communal world’s willingness to hold Russia accountable for its violation of Ukraine’s sovereignty
  • “I think the view of much of Jewish philanthropic leadership, right and left, conservative and liberal, has been the bottom line: If the purposes for which the philanthropy is given are positive, humane, holy, and seen to strengthen both the Jewish community and the whole of society, then to sit and analyze whether the donor was exploitive or not, and whether this was kosher or not, would be hugely diverting, amazingly complicated, and divisive.”
  • Rabbi Jill Jacobs, executive director of T’ruah: The Rabbinic Call for Human Rights, acknowledged the difficulty of making ethical calls about donors, but argued that the attempt is still necessary. “In philanthropy, nearly all money is tainted, either because it was acquired by exploiting workers, by harming the environment, by selling harmful products, or by taking advantage of systems that benefit the wealthy to the detriment of others. That said, we can’t throw up our hands and say that we can either take no money or all money; there have to be red lines,” she said.
  • Berman, the scholar of Jewish philanthropy, agrees. “It is tempting to say all money is fungible, so where it came from does not or cannot matter,” she said. “But no matter how much we might want to launder the money, wash it clean of its past and its connections to systems of power, the very act of doing so is an erasure, an act of historical revisionism. Even worse, it can actually participate in bolstering harmful systems of power, often by deterring institutions reliant on that money from holding a person or system to account.”
Ed Webb

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

www.jadaliyya.com/...-plant-in-morocco_triumphal-gr

Morocco energy environment neoliberalism globalization land water EU economy

shared by Ed Webb on 26 May 16 - No Cached
  • 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 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.
  • 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 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.
  • 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

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

www.washingtonpost.com/...l-crisis-could-it-happen-again

OPEC energy oil KSA Venezuela Iraq Iran economy

shared by Ed Webb on 16 Oct 13 - No Cached
  • 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

The Islamic State Isn't Behind Syria's Amphetamine Trade, But the Regime Could Be - 0 views

foreignpolicy.com/...ad-regime-drug-seizure-salerno

Syria military analysis Italy KSA Saudi Libya drugs narcotics war networks hezbollah

shared by Ed Webb on 11 Aug 20 - Cached
  • Scientists first produced Captagon, the brand name of the drug fenethylline, in the 1960s to treat depression and children with attention deficit hyperactivity disorder. Two decades later, the World Health Organization banned the substance due its high potential for addiction, abuse, and other adverse health effects. But counterfeit Captagon—which is sometimes just a cocktail of amphetamines with no fenethylline—remains in demand on the black market in the Middle East.
  • pills intercepted in Salerno arrived on three ships from Latakia, a Syrian port, and Italian police quickly announced that the Islamic State was responsible for their production and shipment—allegedly to fund its global terrorism operations.
  • Global media outlets disseminated the information provided by the Italian police without questioning it, replicating misinformation without considering how a scattered group of Islamic State members could pull off such an operation—but the truth is, they probably didn’t
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  • more likely that the regime of Syrian President Bashar al-Assad has a hand in producing Captagon, reaping a profit that it can invest into its armed campaigns against civilians and damaging the health of many Syrians who are now addicted to amphetamines after years of war
  • “When Syria invaded Lebanon in the ’90s there were many reports showing the Syrian military were aiding and abetting hashish and opium production in the Bekaa Valley,”
  • Captagon production flourished in Syria after 2013, when a crackdown in neighboring Lebanon likely forced Hezbollah to relocate its drug production operations next door. The shift came at an opportune time for the Syrian regime, as it needed money to fund its military campaign against rebel groups
  • The majority of Syria’s Captagon production sites are in regime-held areas, according to Abu Ja’far, a former truck driver who worked between Homs, Rif-Dimashq, and Aleppo. “You only need some deserted homes and a few workers supervised by someone with strong connections,”
  • International organizations are unable to conduct research on the ground, meaning there is no concrete evidence linking the Assad regime to the Captagon trade. But sources say that strong protection would be required to produce, sell, and export the drugs from regime-held areas. “It was always possible in a country at war that those best placed to safely manufacture a drug in large quantities would be people in the regime … or in areas the regime were guaranteeing security,”
  • Last year, more than 33 million Captagon pills were seized in Greece after being shipped from regime-held Latakia. And in April this year, Saudi customs seized more than 44 million pills hidden in tea packaging from a company close to the Assad family.
  • At the height of its territorial control, the Islamic State was involved in the black market, trading looted antiquities, arms, and oil. But there is little evidence that the group ever produced Captagon—even if individual fighters used the drug on the battlefield. It would not have been sanctioned at the institutional level because of the group’s Salafism: Islamic State leaders punished people caught smoking or selling tobacco, making it unlikely they condoned the manufacturing of amphetamines.
  • Saudi Arabia has long been the No. 1 consumer of Captagon, which is popular among young and affluent partygoers. As conflict drags on in Libya, it is also possible the large shipment was destined for the port of Benghazi, with Europe as a transit point.
  • While much of the Captagon produced in Syria is destined for overseas markets, Syrians themselves suffer some of the worst damage from the trade. The worst-quality Captagon tablets are sold within Syria for as cheap as $1 per pill
  • Captagon is known to inhibit tiredness, hunger, and fear. But its use is now common among all demographics in Syria, not just fighters. The most common side effects include extreme depression, insomnia, malnutrition, and heart and blood toxicity
Ed Webb

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

foreignpolicy.com/...nstability-illegal-immigration

migration analysis EU Libya Sudan Niger Turkey US USA Mexico Central_America

shared by Ed Webb on 23 Nov 19 - No Cached
  • 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.”
  • 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.
  • 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.
  • deaths owing to Fortress Europe since 1993 now adds up to well over 30,000 human beings and counting
  • 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

Degrowth is not austerity - it is actually just the opposite | Climate Crisis | Al Jazeera - 0 views

www.aljazeera.com/...-is-actually-just-the-opposite

opinion economy sustainability austerity growth degrowth

shared by Ed Webb on 25 Sep 22 - No Cached
  • In this context of accelerating ecological breakdown and economic crises, the degrowth movement has steadily been gaining ground. Based on a robust body of scientific literature, degrowth proponents suggest that capitalism’s demand for unlimited growth is destroying the planet. Only degrowth policies can repair this by rapidly scaling back our material and energy use, slowing down production and transitioning to an economy focused around needs, care and the sharing of wealth.
  • In the 1990s, it was reintroduced as a “missile word” against the then-dominant ideology of sustainable development and green growth: an ideology that was being used by governments and international organisations to greenwash ineffective climate politics, attacks on public services and predatory lending.
  • Capitalism in the Anthropocene by Kohei Saito, a Japanese Marxist scholar, sold more than half a million copies and became a bestseller in Japan.
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  • degrowth has come under severe criticism from pundits, mainstream economists, and the jet-setting Davos elite
  • austerity is always imposed for the sake of growth. We have been convinced, for half a century now, that cutting public services is good for us because it will increase competitiveness, balance the budget, and eventually lead to growth. Degrowth, by contrast, is the argument that we can, and should, move away from an economy that exclusively depends on economic growth.
  • infrastructure projects which will lock in fossil fuel use for decades continue to be built and expanded, while banks, energy companies and multinationals that are involved in polluting and carbon-intensive industries are bailed out with public money and given lucrative government contracts
  • Recessions make inequality worse, degrowth is about making sure everyone has their needs met. Recessions often cause bold policies for sustainability to be abandoned for the sake of restarting growth, while degrowth is explicitly for a rapid and decisive transformation.
  • Because profits are based on making labour and nature as cheap as possible, the very basis of profit is always at risk, for example, through labour shortages or supply bottlenecks. Thus, constant economic expansion will also see constant crises.
  • As argued by Naomi Klein in the book Shock Doctrine, crises are often taken advantage of by the owners of capital because they make it possible to thrash social and ecological legislation, thus lowering the costs of wages and resources, and further generating windfall profits through inflation.
  • While austerity increases inequality by curbing public services and benefitting the rich through tax cuts and privatisation of government services, degrowth policies focus on democratising production, curbing the wealth and overconsumption of the rich, expanding public services, and increasing equality within and between societies.
  • A recent UN report found that nine out of 10 countries worldwide have fallen behind on life expectancy, education and living standards. For decades, international organisations have promised to fight global inequality and poverty with growth – but the results are anything but promising.
  • guarantee access to “universal basic services” like housing, food, healthcare, mobility, and childcare to the general population, by taking them out of the market.
  • Germany’s three-month experiment with a $9 monthly ticket for all regional and city public transport could serve as an example. It not only reduced carbon dioxide emissions by 1.8 million tonnes – equivalent to powering about 350,000 homes for a year – but it also helped mitigate the effects of high inflation rates, increased freedom of mobility for all, and was quite popular with the public.
  • a 2020 research paper on energy sufficiency found that it is possible to provide a decent life to the entire global population at 40 percent of current energy use, despite population growth until 2050.
  • reducing the excess energy and resource use of the rich and making designs more efficient within the framework of a truly circular economy have huge potential to reduce demand
  • many people would likely possess fewer material objects – but most would have access to better services and society would be more sustainable, just, convivial, and fulfilling
Ed Webb

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

www.theguardian.com/...ns-saudi-arabia-uae-oil-crisis

US USA UAE KSA Saudi diplomacy economy oil weapons arms China Iran Russia Yemen Israel rights MBS MBZ

shared by Ed Webb on 03 Apr 22 - Cached
  • 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

Arab countries' foreign policy ambitions could start hurting their economies - Business... - 1 views

www.businessinsider.com/hurting-their-economies-2016-9

GCC MENA conflict diplomacy military trade finance aid politics analysis

shared by Ed Webb on 20 Sep 16 - No Cached
  • There is a certain irony in the Arab Gulf states’ rising power across the Middle East and North Africa. International prestige, the ability to intervene militarily in regional conflict, and holding the same leverage as international financial institutions in aid and investment are what these states have long coveted. But now that they have the power – both economic and military – Gulf states like Qatar, Saudi Arabia and the UAE are faced with the dilemma of demonstrating their dominance without destroying the neighbourhood.
  • Gulf states’ foreign policies are increasingly at odds with their economic interests
  • The economies of the Gulf states have changed dramatically since the beginning of the second oil boom, between 2003 and 2014. Joined together in the Gulf Cooperation Council (GCC) trade bloc, they are more integrated into the regional and wider international economy in trade and investment flows
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  • The GCC’s outward investments in equity markets, especially towards Europe and the US, means it is also more integrated globally. And it has large amounts of foreign direct investment in infrastructure, agriculture and real estate across the MENA region.
  • The strength of their economic influence in the region lies in huge flows of capital – often a mixture of remittances, foreign aid, and foreign direct investment under the auspices of state-related bodies. This has enabled the Gulf states to usurp international institutions in shaping economic reform across the MENA region, especially in Egypt and other oil importers.
  • Politically, however, the GCC is engaged in numerous interventions across the region that have caused significant disorder and pose a threat to their mutual economic prosperity. The Gulf states were successful in crushing the Arab Spring within their own countries and cementing their development agenda. By contrast, their interventions in Libya, Syria, Yemen and Egypt have stoked the chaos there, putting the stability of the region at risk.
  • In each of these interventions, there is an incumbent economic cost to the GCC states. The war in Yemen is probably the best example of a mounting military expenditure that will only be dwarfed by the cost of re-building Yemen, which surely the UAE and Saudi Arabia will have to help foot. The Gulf States would therefore be wise to start dovetailing their foreign policies with their economic interests by fostering stability instead of conflict.
Morgan Mintz

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

www.nytimes.com/...01islamic.html

dubai saudi arabia dubai world islamic law global economy debt crisis

shared by Morgan Mintz on 01 Dec 09 - Cached
  • 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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