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Ed Webb

Mohammed bin Salman Isn't Wonky Enough - Foreign Policy - 1 views

foreignpolicy.com/...d-bin-salman-isnt-wonky-enough

KSA Saudi economy reform demographics analysis

shared by Ed Webb on 02 Apr 18 - No Cached
  • Like Western investors, the kingdom’s elites are uncertain about what the new order means for the country’s economy. The new Saudi leadership has indeed created new opportunities, but many of the deep structural barriers to diversification remain unchanged. The bulk of the public sector remains bloated by patronage employment, the private sector is still dominated by cheap foreign labor, and private economic activity remains deeply dependent on state spending. Addressing these challenges could take a generation — and it will require patience, creativity, and a clearer sense of priorities.
  • While a band of Al Saud brothers used to rule collectively with the king as a figurehead, decision-making has now become centralized under one man
  • ruthlessness and willingness to take risks radically at odds with the cautious and consensual political culture of the Al Saud clan
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  • Saudi Arabia has tackled fiscal reforms more vigorously than most local and international observers expected, introducing unprecedented tax and energy price measures, including the introduction of a 5 percent value added tax, new levies on foreign workers, and increases in electricity and transport fuel prices. The government is now experimenting with new non-oil sectors with an increased sense of urgency, including information technology and defense manufacturing.
  • While space for political opposition arguably has narrowed, women will soon be allowed to drive and the religious police force that once harassed them has been almost entirely neutered. By relaxing religious controls over the public sphere, the crown prince is seeking to attract more foreign investment and facilitate diversification into tourism and entertainment
  • New policies and programs are announced constantly, while the delivery capacity of the sluggish Saudi bureaucracy continues to lag. Below the upper echelons, the Saudi state remains the deeply fragmented, bloated, and slow-moving machine that I described in my 2010 book. The government seems to have no clear strategy for reforming this bureaucracy
  • Local economic advisors fear that the majority of private petrochemicals firms — the most developed part of Saudi industry — would lose money if prices of natural gas, their main input, increase to American levels.
  • public sector employment remains the key means of providing income to Saudi nationals. Cheap foreign labor dominates private sector employment, thereby keeping consumer inflation at bay and business owners happy. Citizens, however, are parked in the overstaffed public sector. Out of every three jobs held by Saudis, roughly two are in government. The average ratio around the world is one in five. Public sector wages account for almost half of total government spending, among the highest shares in the world
  • As limits on government employment kick in, young Saudis will increasingly have no choice but to seek private jobs. But they will face tough competition on the private labor market where employers have become accustomed to recruiting low-wage workers from poorer Arab and Asian countries
  • Saudi wage demands will have to drop further if private job creation is to substitute for the erstwhile government employment guarantee. For the time being, private job creation has stalled as the government has pursued moderate austerity since 2015 in response to deficits and falling oil prices
  • The government has also underestimated how dependent private businesses are on state spending. The share of state spending in the non-oil economy is extremely high compared to other economies. Historically, almost all private sector growth has resulted from increases in public spending
  • As long as oil prices remain below $70 per barrel, the goal of a balanced budget will cause pain for businesses and limit private job creation. This will pose a major political challenge at a time when an estimated 200,000 Saudis are entering the labor market every year. More than 60 percent of the population is under 30, which means that the citizen labor force will grow rapidly for at least the next two decades.
  • It would be far more prudent to gently prepare citizens and businesses for a difficult and protracted adjustment period and to focus on a smaller number of priorities
  • The key structural challenge to non-oil growth is the way the Saudi government currently shares its wealth, most notably through mass public employment — an extremely expensive policy that bloats the bureaucracy, distorts labor markets, and is increasingly inequitable in an era when government jobs can no longer be guaranteed to all citizens. A stagnating economic pie that might even shrink in the coming years must be shared more equitably.
  • A basic income would not only guarantee a basic livelihood for all citizens, but also serve as a grand political gesture that could justify difficult public sector reforms. A universal wealth-sharing scheme would make it easier to freeze government hiring and send a clear signal that, from now on, Saudis need to seek and acquire the skills for private employment and entrepreneurship. The government could supplement this scheme by charging fees to firms that employ foreigners while subsidizing wages for citizens to fully close the wage gap between the two.
  • Focusing on such fundamentals might be less exciting than building new cities in the desert or launching the world’s largest-ever IPO — but they are more important for the kingdom’s economic future. No country as dependent on petroleum as Saudi Arabia has ever effectively diversified away from oil
Ed Webb

Kuwait's PM says welfare state is unsustainable, calls for cuts | Reuters - 0 views

www.reuters.com/...onomy-pm-idUSL5N0II1AB20131028

Kuwait GCC economy rentierism oil

shared by Ed Webb on 28 Oct 13 - No Cached
  • Ed Webb on 28 Oct 13
     
    Kuwait has lagged peers like the United Arab Emirates and Qatar in competitiveness and foreign investment. It has the most open political system in the Gulf Arab region but infighting and bureaucracy have slowed an economic development plan, announced in 2010, aimed at diversifying the oil-reliant economy.
Ed Webb

'We Misled You': How the Saudis Are Coming Clean on Funding Terrorism - POLITICO Magazine - 1 views

www.politico.com/...rabia-terrorism-funding-214241

Saudi KSA Islamists Islamism radicalism Wahhabism economy economics reform

shared by Ed Webb on 21 Oct 16 - No Cached
  • one top Saudi official admitted to me, “We misled you.” He explained that Saudi support for Islamic extremism started in the early 1960s as a counter to Nasserism—the socialist political ideology that came out of the thinking of Egypt’s Gamal Abdel Nasser—which threatened Saudi Arabia and led to war between the two countries along the Yemen border. This tactic allowed them to successfully contain Nasserism, and the Saudis concluded that Islamism could be a powerful tool with broader utility.
  • their support for extremism was a way of resisting the Soviet Union, often in cooperation with the United States, in places like Afghanistan in the 1980s
  • Later it was deployed against Iranian-supported Shiite movements in the geopolitical competition between the two countries.
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  • The new leadership, like their predecessors, blames Iran for regional instability and the many conflicts going on.
  • as the Saudis described it to me, this new approach to grappling with their past is part of the leadership’s effort to make a new future for their country, including a broad-based economic reform program
  • “We did not own up to it after 9/11 because we feared you would abandon or treat us as the enemy,” the Saudi senior official conceded. “And we were in denial.”
  • it is an open question as to whether the Saudi people have been sufficiently prepared at all relevant levels in terms of education and skills to compete in the world economy, as they will need to do in a modernized economy. If not, social tensions and unrest may arise among those who are not prepared to compete.
  • For many years, I was accustomed to Saudi officials being vague and ambiguous. Now, our interlocutors were straightforward and business-like in discussing their past and their future plans. In past decades, my impression had been that the Saudis did not work hard. Now a team of highly educated, young ministers works 16- to 18-hour days on refining and implementing a plan to transform the country. The plan is the brainchild of Mohammad bin Salman and focuses both on domestic and regional fronts. Salman and his ministers exude commitment and energy.
  • Riyadh views modernization as the vehicle through which the Saudi state, at long last, can confront and defeat extremism, foster a dynamic private sector and master the looming economic challenges
  • Their Vision 2030 and National Transformation Program 2020 focus on shrinking the country's enormous bureaucracy, reducing and ultimately removing subsidies, expanding the private sector including attracting investment from abroad by becoming more transparent and accountable and by removing red tape.
  • Israel and Saudi Arabia share a similar threat perception regarding Iran and ISIL, and that old hostility need not preclude greater cooperation between the two states going forward
  • On some levels, the prospects for planned reforms are more promising in Saudi Arabia than they are in most other parts of the Middle East. Saudi Arabia has oil reserves and is not roiled in conflict: two important advantages
  • if the reform effort does work, Saudi Arabia is poised to become more powerful than before, enabling it to play a bigger role in regional dynamics including in balancing Iran and perhaps negotiating about ending the civil wars in the region. A true change in Saudi Arabia’s policy of supporting Islamist extremists would be a turning point in the effort to defeat them
Ed Webb

Saudi Arabia's Energy Crisis | Arabia, the Gulf, and the GCC Blog - 0 views

ncusar.org/...saudi-arabias-energy-crisis

KSA Saudi energy environment economy development renewables

shared by Ed Webb on 24 May 12 - No Cached
  • consuming more and more of its precious petroleum resources, and within a decade may have to begin cutting back on its oil exports to the rest of the world
  • In a recent report entitled, “Burning to Keep Cool: The Hidden Energy Crisis in Saudi Arabia,” Chatham House researchers Glada Lahn and Prof. Paul Stevens said unchecked growth in energy consumption in Saudi Arabia was a “cause for international concern.” If it continues at its present rate, this would threaten the Kingdom’s ability to stabilize world oil markets.
  • Saudi crude export capacity would fall by about 3 million bpd to under 7 million bpd by 2028 unless domestic energy demand growth is checked
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  • Saudi Arabia hopes to buy itself some time with major energy conservation efforts. Saudi Aramco is pursuing an initiative in cooperation with the Kingdom’s utilities and business sector to generate massive energy savings on as rapid a timetable as possible. This initiative includes moves into renewable power sources like solar and wind, plus efforts to slash energy waste and duplication and create a business culture sensitive to energy efficiency
  • Plans to add renewable power would help maintain fiscal balance for another two or three years, but that’s all
  • Saudi Arabia currently relies on oil revenues for about 80 percent of its government spending
  • Chatham House believes “huge economic, social and environmental gains from energy conservation are possible in Saudi Arabia” but it cautions that the longstanding Saudi tradition of low energy prices and the Kingdom’s sluggish bureaucracy pose “challenges” to implementing needed pricing and regulatory reforms.
  • Saudi Arabia is aiming to generate about 10 percent of its power needs from solar energy by the year 2020
Ed Webb

The Politics of Image: The Bedouins of South Sinai - 1 views

www.jadaliyya.com/...ge_the-bedouins-of-south-sinai

beduin Sinai Egypt Israel borders

shared by Ed Webb on 28 Jun 12 - No Cached
  • For a foreign power to successfully occupy, control and integrate the Bedouins into the new state-system entailed the disruption all of the above; from the nomadic lifestyle and lack of social stratification, to ourfi laws, loyalty to the tribe, and the notion of collective identity
  • turning Egypt into a modern nation-state. To that end, he had to first re-organize Egyptian society, streamline the economy, train a bureaucracy to effectively run a centralized government, and build a modern military. “His first task was to secure a revenue stream for Egypt. To accomplish this, (he) ‘nationalized’ all the Egyptian soil, thereby officially owning all the production of the land.”13 As a result, all tribal or communal rights to landownership were not legally recognized. With the disenfranchisement of land came the disenfranchisement of image. In order to exert control over Sinai, the government restricted movement, imposed taxes and demanded payment for camping and grazing. It also started to co-opt certain individuals from various tribes, and favor some tribes over others, which in turn disrupted the Bedouin hierarchy based on sex, age and seniority.14
  • Sykes-Picot agreement in 1916. The agreement divided the Arab provinces of the Ottoman Empire outside the Arabian Peninsula into areas of British and French control or influence. As a roaming people whose livelihood depended on seasonal movement from one pasture to another, cementing the border left them with no choice but to become sedentary. This severance from “fundamental elements in their economic, commercial and social universe,”15 exposed the Bedouin to a whole new level of poverty
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  • the role of “The Sheikh” was invented, as mediator between the government and the inland population. Unlike the wise and elderly tribal sheikhs who were appointed through tribal consensus, these “sheikhs” were co-opted by the government. They did not protect the independence of the tribes, they did not arbitrate disputes, and they had little power in local affairs. Still the power of these sheikhs for hire was “exalted, since it was through them that decrees of government were transmitted to the tribesmen.”17 Although they were viewed as “agents of the occupier,” the Bedouins were left with no choice but to turn to them in issues pertaining to their economic and political lives
  • Prior to 1952, “Egypt had the largest consumer market for hashish in the Middle East. Turkey, Lebanon and Syria were the largest regional producers of the drug.”20 The smuggling route ran through the more accessible desert areas of the Middle East, crossing the TransJordanian Plateau, the Negev, and the North Sinai to Egypt. With the ousting of King Farouk in 1952, Abdel Nasser started to fortify the North of Sinai to prepare for nationalizing the Suez Canal. As a result, the smuggling route had to move to the mountainous and inaccessible South Sinai. Thus, the South Sinai “smuggler” came into being, and made use not only of his unemployment, but his nomadic prowess and knowledge of his cavernous terrain. The logic was, if the state treated them as outsiders, then they might as well exist outside the law. After all, smuggling was more lucrative than any grazing or menial government job could ever be
  • the smuggling business continued even after the Israeli occupation of the Sinai Peninsula in 1967. “Assuming that the Egyptian border guards would be given a cut of the drugs as a bribe, they chose to allow the smugglers to continue operating the drug traffic to Egypt, on the logic that drug use by Egyptian soldiers could only benefit Israel.”21 However, when the Eilat-Sharm road opened in 1972, the Israelis feared that the inexpensive drug might find its way into their own lucrative drug scene, and effectively ended all activity
  • Whereas the Egyptian administration distributed a sadaga, meaning charity, through their hired sheikhs, the Israelis personally distributed basic food staples from the American charitable organization CARE to the heads of every family.25 They also organized visits to villages in Israel, built a total of eleven clinics, offered formal vocational courses in Dahab and Sharm El Sheikh, employed half the Bedouin population in the oil fields, and in military and civilian construction, and at the request of the sheikhs, built them a total of thirteen schools in South Sinai alone. The Bedouins, who had expected to be dealt with impersonally, were quite amused with the new perks. Still, while most embraced change, they never let their guard down. In other words, there were no illusions of loyalty. Israel was still seen as an “occupying power.”
  • the Israelis also created “The Exotic Bedouin.”
  • One way for the Bedouins to mark their territory was to come up with an image that would help define and differentiate them. As a result, the “Muslim Bedouin” was born. The issue of self-definition became an urgent one when relations with outsiders ceased to be conducted through sheikhs and Bedouins came into increasing contact with the West. They felt that all Westerners, whether tourists or soldiers, Israelis or Europeans, Jews or Christians, invaded their privacy and threatened their traditions and customs.28 For example, in keeping with the Sinai image as an exotic, all-natural paradise, the tourists sunbathed in the nude, a practice that Bedouins took great offense to. When they expressed their dismay and requested that the behavior of tourists be regulated, Israeli authorities responded by explaining that they wanted nothing to do with the issue. Seeing that the “Bedouins were not permitted by either Israeli or Egyptian law to impose their own laws on non-Bedouins.. the problem could not be resolved.”29 In response, the Bedouins encouraged an Islamic revival of a very paradoxical nature. They still worked in tourism and came into contact with tourists everyday, but all the money made was “purified” by lavish expenditure on mosques and shrines of Saints and excessive manifestations of religious zeal. “‘We are Muslims,’ (they said) ‘they are the Jews.’”30
  • While the Bedouins were trying to disassociate themselves from the West, Egyptian policy was heading in the other direction. To complicate matters even more, “state-supported Muslim institutions, such as Al-Azhar University, invested this official policy with an Islamic sanction.”31 Result was an institutional type of Islam, one that was mainly constructed to fight the remnants of Nasser’s socialist regime. In this context, it was hard for the Muslim Bedouin to demonstrate loyalty merely by waving the flag of religion. The fact that Egypt signed a peace treaty with Israel did not help bridge the gap either. Were the Bedouins to be viewed as fellow Egyptian returning from exile or were they treacherous collaborators?32 More importantly, which of these images was more beneficial to the state?
  • “The Villain” was born; an all-encompassing figure who stood for many ills all at once. He was uncivilized, lawless, treacherous, and dangerous. The most important thing for the state was to cater to the economic interests of Cairo’s elite in the Sinai, from the military and the industrialists, to the members of political parties and ministers. This goal could only be achieved through a label that would blunt Bedouin capacity to organize, gain sympathy, and attract media attention. In 1980, “Law 104, providing for state ownership of desert land and thus making the whole Sinai government property was changed to permit private ownership.”33 The law had some devastating effects on the Bedouins. Their land claims were not legally recognized, and they were subsequently displaced “with no government compensation.”34 In their place, the land was repopulated with peasants to solve the unemployment problem in the urban center. The once virgin coast became littered with grotesque infrastructure that paid no heed to damaging the natural balance of the environment; thousands of them were framed and sent to prison after the terrorist attacks on Sharm El Sheikh and Dahab in 2004 and 2005
  • a 20 million pound wall was built in Sharm El Sheikh to isolate the “dangerous” Bedouin from the tourist “paradise” beyond
  • every Bedouin stereotype out there has been readily absorbed and exploited by the Bedouins themselves
  • All what is left of Bedouin life is its cultural identity, and they hold on to that dearly. “The Bedouin is not Egyptian,” a young man in a white cotton head dress said, “The Sinai is not Egyptian or Israeli. It is Bedouin.” This is all that is left. In the age of state-systems, modernization and globalization, the world is becoming increasingly hegemonic and indigenous cultures are losing the battle. The world might like to think that it is without borders, but say that to a Bedouin and wait for a response.
  • Ed Webb on 28 Jun 12
     
    Some flaws here, but worth a read/some thought.
Ed Webb

Bitterlemons-international - 1 views

www.bitterlemons-international.org/inside.php

israelpalestine Israel Palestine media MEPP dialog dialogue

shared by Ed Webb on 27 Aug 12 - No Cached
  • We are ceasing publication for reasons involving fatigue--on a number of fronts. First, there is donor fatigue. Why, donors ask, should we continue to support a Middle East dialogue project that not only has not made peace, but cannot "prove" to our satisfaction--especially at a time of revolution and violence throughout the region--that it has indeed raised the level of civilized discussion? Why fight the Israeli right-wing campaign against European and American state funding and the Palestinian campaign against "normalization"? These last two negative developments also reflect local fatigue. There is no peace process and no prospect of one. Informal "track II" dialogue--bitterlemons might be described as a "virtual" track II--is declining. Here and there, writers from the region who used to favor us with their ideas and articles are now begging off, undoubtedly deterred by the revolutionary rise of intolerant political forces in their countries or neighborhood. Then there is the global economic slowdown. Even countries and philanthropic institutions not suffering from donor fatigue still have to deal with declining budgets for promoting activities like ours. Obviously, the donors have every right to do with their limited funds as they see fit. But they are nearly all tightening their supervision and review procedures to a point where the weight of bureaucracy simply overwhelms efforts to maintain even a totally transparent project like bitterlemons and to solicit additional funds.
Ed Webb

U.S. Boosts Trade to Iran, Despite Sanctions - The Source - WSJ - 1 views

blogs.wsj.com/...rade-to-iran-despite-sanctions

Iran sanctions EU US

shared by Ed Webb on 16 Aug 12 - No Cached
  • European companies realize they suffer more from recent Iran restrictions than their U.S. counterparts–and that such advantage may stem in part from better corporate access to decision-makers in Washington than in Brussels.
  • U.S. companies benefit from well established channels in Washington to plead for sanctions exemptions, while their European peers, “don’t have the same mechanism to lobby the EU bureaucracy.”
  • Ed Webb on 16 Aug 12
     
    One example of how domestic politics drive the implementation of foreign policy.
Ed Webb

Growing demand for Russian arms in the Middle East: The Syria Effect? - 1 views

www.mesp.me/...e-middle-east-the-syria-effect

Russia MENA Syria military Turkey Egypt Algeria

shared by Ed Webb on 22 Jun 18 - Cached
  • For Russia, the military and political engagement in Syria is an opportunity not only to showcase the operational capabilities of their weapons but also the political “muscle” behind them. 
  • A quick look on arms transfers databases reveals a growing demand for Russian arms in the Middle East. In 2012, Russia delivered weapons to four countries (Algeria, Egypt, Jordan and the UAE – in addition to Syria and Iran). Five years later, in 2017, it delivered weapons to eight countries (Algeria, Bahrain, Egypt, Iraq, Jordan, Qatar, the UAE and Turkey – in addition to Syria and Iran), and sales grew in variety, size and value. Compared to 2012, the sales, according to announced figures and estimates, at least doubled in size, both because of the expansion to new markets and increased sales to traditional partners
  • The Russian military industrial complex showcased the best it has to offer in Syria, deploying a vast array of naval, air and ground weapon systems. Furthermore, the conflict has served as a major testing ground
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  • “Combat-proven” is in itself a major marketing argument
  • the heavy supersonic strategic bomber Tu-160, new generation fighter jet Su-34 or the first Russian stealth fighter ever constructed, the Su-57
  • The S-400 air defense system is not just another advanced piece of equipment. The decision to acquire it is the basis or starting point of a strategic relation between the provider, Russia, and the client.
  • most of the contracted weapons, such as air defense systems or fighter jets, are highly advanced pieces of technology and there is only a handful of producers capable of supplying them. Generally speaking, Russian weapons are highly efficient and cost-effective. Where Russia lags in technological innovation, it makes up for in costs. At the same time, American (and Western) companies go through a much stricter process of arms export control, and arms deals to third countries often involve some form of political conditionality. Middle Eastern countries might therefore prefer, under certain circumstances, to avoid the uncertainty and bureaucracy and choose the straightforward option of dealing with other providers, such as Russia, which also puts forward the time factor and its ability to deliver supplies quickly
  • At the end of 2017, it was announced that a deal was reportedly reached allowing Russia to use Egypt’s air space and air bases
  • As a member of NATO and U.S. ally, the decision to purchase the S-400 air defense system puts a strain on Ankara’s relations with its western allies. Specifically, the U.S. is exerting strong pressures on Turkey, threatening to cancel the planned sale of F-35 jets, in order to discourage it from moving forward with the S-400 deal, but with little success so far
  • Algeria is a regular client. Algiers is the largest military spender in Africa, and despite efforts to reduce military imports, it continues to import Russian weapons and remains one of Russia’s most important clients in the region.
  • a number of countries in the region have recently signed MoUs with Russia for closer military cooperation, in anticipation of future arms deals
  • arms deals are generally lengthy processes. Some of the deals concluded lately have been years in the making, before even the start of the Russian intervention in Syria. Not all can be solely attributed to the “marketing effect of war”. That said, the “combat-proven” label is an undeniable marketing argument. In Russia’s case, the massive military engagement in Syria, coupled with increased influence in the region, allowed Russia to position itself as a desired political and military partner
Ed Webb

"It Started With Conversations - And Then They Started Hitting Each Other" - 0 views

www.buzzfeed.com/...sis-and-the-muslim-brotherhood

Egypt MB ISIS ikhwan prisons radicalism Arabs

shared by Ed Webb on 18 Nov 17 - No Cached
  • Inside the prisons of Egypt and other Arab and Muslim countries, a ferocious competition has erupted between radical militants and more established political Islamists over fresh recruits. ISIS is often muscling out more peaceful groups for influence and loyalists among the mostly young men tossed into cramped cells for months or years.
  • Some inmates are subjected to torture and deprivation, despite having committed no or minimal crimes, fueling anger that researchers have long feared breeds extremism in Arab jails.
  • The political dynamics inside Arab detention centers have ramifications far beyond the prison walls. Jails in the Middle East have long forged radical extremists, including the Egyptian intellectual godfather of Islamic extremism, Sayyid Qutb, and the founder of al-Qaeda, Ayman al-Zawahiri, as well as Abu Musab al-Zarqawi, the Jordanian ex-convict whose al-Qaeda in Iraq later morphed into ISIS. Alleged ISIS supporters find prisons to be fertile soil, especially in brutal Arab regimes like Egypt. There are numerous signs ISIS has begun using prisons that are intended to confine them and limit their activities to expand their influence and even plan operations. Egyptian authorities and activists believe former prisoners recruited by ISIS in jail were behind suicide bombings of churches in Cairo in December and on Palm Sunday this year in Alexandria and Tanta.
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  • “Many of the prisoners were already very angry after the coup and eager to fight,” said Yasser Khalil, an Egyptian journalist who has extensively covered prisons. “Telling them them they will go to heaven and get virgins just makes it that much more attractive. They say, ‘Yes, you have a Christian neighbor and he is lovely. But the Coptic Church supports the state, and thus they should be killed.’”
  • Reports have emerged of ISIS recruiters being locked up in prisons all the way from Algeria to Russia’s Caucasus region, Tajikistan, and Indonesia.
  • many warn that ISIS’s nihilism is overpowering the Brotherhood’s appeals. “This is the year of disappointment and disillusion when there’s no hope for the Islamist factions to get out of prison any time soon,”
  • Refusing legal counsel is one trait that distinguishes ISIS prisoners from other inmates, including alleged al-Qaeda supporters. “He used to love life. He used to be keen on getting out of jail. But not anymore.”
  • “ISIS says, ‘We tried democracy and we ended up in jail,’” Abdullah recalled. “‘It was the army that introduced the gun. Why is Sisi in power? He has guns.’”
  • “Imagine you are in prison — the great challenge is killing time,” said Ghadi, whose father and brother have been jailed. “Before you could read books. When they closed that door the only way to kill time is sharing your thoughts and experiences. The Islamist groups and factions are the great majority of prisoners. Imagine there’s a constant flow of radical ideas into your mind. They talk and listen and talk and listen. You start to give in. You get weak. You lose all rational argument. You are finally ready to absorb radical thoughts and arguments.”
  • Ahmed Abdullah, the liberal activist, had had enough. He approached some wealthy businessmen inside the prison and arranged for them to bribe guards to allow in some books. He launched a reading group using Arabic translations of world literature and philosophy. They read Franz Kafka to understand the nightmarish nature of Egypt’s bureaucracy, George Orwell as an illustration of brutal authoritarianism, and Jean-Jacques Rousseau as an introduction to democratic governance and the social contract. To his delight the other prisoners were receptive; even some of the Islamists would attend the talks.Suddenly, security forces stormed in and seized the books, loudly accusing Abdullah, who is a professor of engineering at a university in Cairo, of poisoning the minds of the inmates. He was transferred to a dank solitary confinement cell, without a towel or blanket. After three days he was released from jail. He said authorities must have calculated he was more trouble inside prison than outside.“When we have a chance to compete we win,” said Abdullah, smoking flavored shisha at a cafe in central Cairo. “The inmates were really excited with what we had to say. But it turns out our government considers secular activists more dangerous than the Muslim Brotherhood, or ISIS.”
  • Many of Egypt’s estimated 40,000 prisoners are being held in makeshift jailhouses, interior ministry compounds and military camps that don’t have the capacity for separating inmates. One former prisoner described watching as another inmate was recruited by an ISIS supporter while sitting for hours in the van on the way from jail to court. One researcher described a brawl involving Brotherhood and ISIS prisoners during a similar transfer of inmates earlier this year.
  • “ISIS looks down on the Muslim Brotherhood, they consider them infidels, and they point this out to the younger Muslim Brotherhood members,”
  • ISIS targets recruits who have special skills. Gamal Ziada recalled intense competition between the Muslim Brotherhood and ISIS over a prisoner who was a student at Cairo’s elite Zewail City of Science and Technology, considered Egypt’s MIT. “ISIS told him, ‘You’re not going to carry a weapon,’” Gamal Ziada said. “‘You’re not going to fight. You will use your brain.’”
  • “He tried to convince me that I was an apostate and that my parents were apostates too, and I have to convince my family to give up the pleasures of the world and return to Allah,” the smuggler said of his 2015 imprisonment. “He used to ask me to share lunch and dinner with him. He was ordering the best Turkish food in town. He was very rich. He told me that I could continue my work in smuggling for the Islamic State and make much more profit than I did with working with refugees.”
  • “His mission was to get closer to the poor and the simple people and convince them that if they joined the Islamic State they would have power, money, and women,” he said, “and heaven in the afterlife.”
  • Some experts fear ISIS has recruited potential sleeper agents in prison who might later become emboldened to act. Abdou, the researcher, said he interviewed one former inmate who joined ISIS in prison but dropped any Islamist pretenses the moment he walked out of jail, shaving his beard and going back to smoking shisha and lazing about with old friends.
  • ISIS recruitment and violence inside prisons jumped in 2015 when Egyptian authorities began clamping down on allowing books inside jails
Ed Webb

There will be pain - With oil cheap, Arab states cannot balance their books | Leaders |... - 0 views

www-economist-com.envoy.dickinson.edu/...tes-cannot-balance-their-books

opinion MENA oil energy economy GCC Algeria KSA Saudi Oman Jordan Lebanon Egypt

shared by Ed Webb on 17 Jul 20 - No Cached
  • Peak demand for oil may still be years away, but covid-19 has given the Middle East and north Africa a taste of the future. Prices of the black stuff plummeted as countries went into lockdown. The region’s energy exporters are expected to earn about half as much oil revenue this year as they did in 2019; the IMF reckons their economies will shrink by 7.3%. Even when the virus recedes, a glut of supply will probably keep prices down. Faced with budgets that no longer add up, Arab states must adapt.
  • in May the Algerian government said it would cut its budget by half. Things are no better in Iraq, a big oil exporter, which is nearly broke. Even stable producers such as Oman and Kuwait are living beyond their means. Saudi Arabia, the world’s biggest oil exporter, has been burning through its cash reserves for months. Money that was meant to smooth the kingdom’s transition to a less oily economy is now propping up the old petrostate.
  • Egypt exports little oil, but over 2.5m of its citizens work in oil-rich countries. Remittances are worth 9% of its GDP. As oil revenues fall and some of those jobs disappear, Egypt will suffer, too. The same is true of Jordan, Lebanon and the Palestinian territories, which have long relied on the Gulf to absorb their jobless masses.
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  • Around a third of exports from Jordan and Lebanon go to oil-rich states, which send back wealthy tourists. Kuwaitis, Saudis and Emiratis account for about a third of tourist spending in Lebanon.
  • The bad news is that these states are moving too slowly. Some have cut their bloated bureaucracies and pared back subsidies. Saudi Arabia recently tripled its value-added tax. But the public sector is still the region’s main employer. Despite talk of diversification, the Gulf’s economies continue to revolve around oil
  • these reforms will be painful and are harder in bad times
  • The plans put forward by leaders like Saudi Arabia’s Muhammad bin Salman are tearing up the social contract. Saudis wonder why he doesn’t sell his $550m yacht instead of raising taxes. Anger is growing across the region. For the past century Arabs have been ruled by abusive leaders who hoarded their country’s wealth. Now these leaders are asking their people to make sacrifices and giving them little say in the matter. That is a recipe for continuing unrest and brutal suppression. If Arab rulers want citizens to pay their way, they will need to start earning their consent.
Ed Webb

The Halkbank Case Should Be a Very Big Deal - Lawfare - 0 views

www.lawfareblog.com/k-case-should-be-very-big-deal

US USA Trump election politics analysis Syria Turkey KSA Saudi corruption Erdogan Iran sanctions

shared by Ed Webb on 31 Oct 20 - Cached
  • If the New York Times’s story about the Justice Department’s handling of the case of  Turkish bank—and President Trump’s interference in that case—had broken any other week, it would be a very big deal. A week before the election, the country inured to the president’s propensity to abuse law enforcement power, it has barely merited a yawn.  The case is worth your time.
  • Berman’s bizarre firing may have been related to a pressure campaign by Barr and the White House to frustrate a high-profile investigation by Berman’s office. The story of Trump and Barr’s efforts to hamstring the investigation into the Turkish bank, Halkbank, says a great deal about Trump’s abuses of law enforcement, his financial entanglements abroad and his susceptibility to foreign influence.
  • an alleged scheme on the part of the state-owned Turkish bank to evade U.S. sanctions on Iran
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  • The investigation was of great interest to Turkish strongman Recep Tayyip Erdogan, who has sought since 2016 to quash the probe. According to the Times, Erdogan may have come close to succeeding.
  • a meeting between Trump and Erdogan in 2018, during which Trump declared Halkbank to be innocent and told Erdogan he would, in Bolton’s words, “take care of things.” He then asked Bolton to reach out to then-Acting Attorney General Matt Whitaker on the matter. Later in 2018, after Trump and Erdogan spoke again, the Times reports that the White House told the southern district that the attorney general, the treasury security and the secretary of state would all become more involved in the case. 
  • Mnuchin had already reached out to the Justice Department seeking to scale down the potential fine paid by Halkbank in any settlement, following direct outreach by Erdogan’s son-in-law
  • Whitaker ordered Deputy Attorney General Rod Rosenstein to shut down the Halkbank case—stating, confusingly, that an indictment of the bank could pose risks to U.S. forces in Syria. Department officials opted to simply ignore Whitaker’s request. But after Barr was confirmed as attorney general, he too put pressure on the southern district, pushing prosecutors to allow Halkbank to walk away with only a fine and a limited acknowledgment of wrongdoing—a proposal that Berman reportedly described as “completely wrong.”
  • The first and more nefarious possibility is that the president pressured the Department of Justice to go easy on Halkbank and Erdogan’s cronies in order to protect his own sizable financial interests in Turkey. The second possibility is less horrible, but it’s not exactly reassuring. Perhaps Trump was swayed by Erdogan’s influence to make policy decisions that cut against the prosecutorial interests of his own government
  • no plausible benign explanations for Trump’s conduct here
  • in December 2018, following a call with Erdogan, Trump suddenly reversed course and ordered the complete withdrawal of U.S. troops—a move so unexpected that it ultimately led Secretary of Defense James Mattis and other senior officials to resign in protest. After another intervention by Trump in October 2019, following another call with Erdogan, Turkey was left in control of a broad swathe of Syria’s northern border, including Kurdish areas important to SDF allies of the United States.
  • efforts have continued both through direct engagement between Turkish and American officials and through the hiring of individuals close to the president himself—including, inevitably, his personal lawyer, Rudy Giuliani
  • Trump certainly appears to have come to value what he sees as a personal relationship with Erdogan, lauding Erdogan as “a hell of a leader” and bragging that he is “the only one [Erdogan] will listen to” among NATO allies
  • Trump even invited Erdogan to a meeting at the White House in November 2019, just weeks after slapping (and then removing) sanctions on Turkey for its offensive into northern Syria
  • Trump has a long record of puzzling policy interventions when it comes to Turkey
  • it was just before Trump’s December 2018 Syria withdrawal order that Whitaker suggested that failing to drop the investigation against Halkbank might result to threats to U.S. forces in Syria—an argument that might have channeled threats that Erdogan’s regime was publicly making at the time.
  • he made a cursory review of Erdogan’s memo offering a thin legal theory about US sanctions and impulsively sided with the authoritarian leader over the prosecutors of the southern district
  • The Trump administration has almost entirely declined to criticize Erdogan’s bad-and-worsening record on human rights, as he and his regime have engaged in politically motivated investigations and prosecutions at home and turned a blind eye to atrocities in those parts of Syria under its control
  • The Trump administration has also refused to impose statutorily-required sanctions on Turkey for its purchase of a prohibited Russian missile system, without explanation and despite congressional pressure to do so. 
  • What exactly Trump has gotten in exchange for these positions is far from clear
  • Erdogan’s consistent ability to come out on top in Trump’s policy deliberations is, to say the least, impressive. And here it’s impossible to ignore Trump’s financial interests in the country: according to the Times’s review of Trump’s tax documents, he received profits of at least $2.6 million from business operations in Turkey between 2015 and 2018. And earlier reporting by the Times on Trump’s taxes describes how the Turkish government and business community “have not hesitated to leverage various Trump enterprises to their advantage,” strategically booking Trump properties to host events in efforts to curry favor with the president. 
  • If the president was motivated, in whole or in part, by a desire to curry favor with Erdogan in order to benefit his personal finances, that would be a grave abuse of office and plainly impeachable conduct
  • Trump has already been impeached for abusing his office for private campaign benefit; abuse of office for personal financial enrichment would be even worse.
  • this is the type of complex policy decision where it is nearly impossible to establish conclusively improper motives
  • The Halkbank situation is exactly why presidents are expected to abide by ethics rules—including divesting from business interests—and why Trump’s refusal to adhere to the norms of good governance presented serious national security implications from the outset
  • Having taken no effort to avoid the conflict, Trump isn’t entitled to the benefit of the doubt. And notably, those privy to Trump’s actual decisionmaking with respect to Turkey aren’t extending that benefit.
  • brazen financial corruption
  • If he wasn’t seeking financial benefit, then Trump has somehow been persuaded by Erdogan to take actions that contravene his own stated policy goals. A president who is so easily outwitted and susceptible to improper influence is a frightening thing
  • Saudi Arabia and its allies have conducted their own charm offensive, engaging lobbyists and cultivating a notoriously close relationship between Saudi Arabia’s Crown Prince Mohammad bin Salman and Trump’s son-in-law Jared Kushner.
  • it is concerning for a president to be so willing to dictate major aspects of U.S. foreign policy on the basis of his personal preferences, often without even checking them against the views of his advisors or coordinating them through the broader government bureaucracy
  • Turkish officials hired soon-to-be National Security Advisor Michael Flynn to lobby the incoming administration for the extradition of dissident Turkish preacher Fethullah Gulen, whose followers Erdogan blames for the 2016 coup attempt against his regime
  • Berman refused to go along with Barr’s proposed settlement, which he considered to be unethical. Months later, Barr fired Berman—and then lied about the circumstances and reasons why
  • Once again, the president is intervening in an investigation and a prosecutorial decision in a fashion that appears self-interested, appears to cut against stated U.S. policy to the benefit of an authoritarian leader and his interests, and appears influenced by the president’s own business concerns.
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