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Ed Webb

Picking up the pieces - 0 views

  • Syrians have shown relentless ingenuity in adapting to every stage of a horrendous conflict, salvaging remnants of dignity, solidarity and vitality amid nightmarish circumstances
  • The decimation of Syria’s male population represents, arguably, the most fundamental shift in the country’s social fabric. As a generation of men has been pared down by death, disability, forced displacement and disappearance, those who remain have largely been sucked into a violent and corrupting system centered around armed factions
  • 80 of the village’s men have been killed and 130 wounded—amounting to a third of the male population aged 18-50. The remaining two-thirds have overwhelmingly been absorbed into the army or militias
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  • “If you want to protect yourself and your family, you join a militia,” remarked a middle-aged man in the Jazmati neighborhood. “The area is infested with crime associated with the National Defense militias. Each group has control over a certain quarter, and they sometimes fight each other over the distribution of spoils. Shop owners must pay these militias protection. One owner refused, and they torched his store.”
  • Another resident of the same area explained that he and his family could scrape by thanks to his two sons’ positioning in the Iran-backed Baqir Brigade—which provides not only monthly salaries, but also opportunities to procure household items through looting.
  • Most who can afford to leave the country do so; others benefit from an exemption afforded to university students, while another subset enjoys a reprieve due to their status as the sole male of their generation in their nuclear family. Others may pay exorbitant bribes to skirt the draft, or confine themselves within their homes to avoid being detected—making them invisible both to the army and to broader society. Some endure multiple such ordeals, only to remain in an indefinite state of limbo due to the contingent and precarious nature of these solutions
  • An industrialist in Aleppo put it simply: “I talk with factory owners and they say they want to reopen their factories, but they can’t find male workers. When they do find them, security services or militiamen come and arrest those workers and extort money from the owners for having hired them in the first place.” With no large scale returns on the horizon for local industries, this economic impasse will take years to resolve.
  • Although virtually every problem that sparked Syria’s 2011 uprising has been exacerbated, society has been beaten down to the point of almost ensuring that no broad-based reformist movement will be able to coalesce for a generation to come
  • the unraveling of Syria’s productive economy, and its replacement by an economy of systematic cannibalization in which impoverished segments of Syrian society increasingly survive by preying upon one another
  • a new term—taafeesh—to describe a practice that goes far beyond stealing furniture to include extremes such as stripping houses, streets and factories of plumbing and electrical wiring
  • active surveillance, intimidation and repression are not the only contributors to this leaden atmosphere. A pervasive exhaustion has settled over Syrians ground down and immiserated by war, disillusioned with all those who purport to lead or protect them, and largely reduced to striving for day-to-day subsistence
  • I returned to my apartment just to retrieve official documents and some hidden pieces of gold. I did so, and then destroyed my own furniture and appliances because I don’t want these people making money at my expense. I was ready to burn down my own apartment, but my wife stopped me—she didn’t want me to cause harm to other apartments in the building.
  • micro-economies in their own right—from the recycling of rubble to the proliferation of taafeesh markets, where people buy second-hand goods stolen from fellow Syrians. Many have no choice but to use these markets in order to replace their own stolen belongings
  • Syrians also dip into precious resources to pay officials for information, for instance on disappeared relatives or their own status on Syria’s sprawling lists of “wanted” individuals. For those wishing to confirm that they won’t be detained upon crossing the border to Lebanon, the going rate is about 10 dollars—most often paid to an employee in the Department of Migration and Passports.
  • This cannibalistic economy, which encompasses all those who have come to rely on extortion for their own livelihoods, extends to the cohort of lawyers, security officials and civil servants who have positioned themselves as “brokers” in the market for official documents such as birth, marriage and death certificates
  • Today, even the most senior lawyers in our practice are working as document brokers. A well-connected broker makes 30 to 40,000 pounds [60 to 80 dollars] per day; this roughly equals the monthly salary of a university-educated civil servant. As a result, many government employees resign and work as brokers to make more money.And this truly is a business, not a charity: Every broker takes money, even from his own brothers and sisters. Last week a colleague brought me his brother-in-law. I asked him why he needed me, when he could make all the papers himself. He explained that he can’t take money from his own brother-in-law, but I can do so and then give him half.
  • “I watched uniformed soldiers using a Syrian army tank to rip out electrical cables from six meters underground,” remarked a fighter with a loyalist Palestinian faction, who was scrambling to retrieve belongings from his apartment before it could be pillaged. “I saw soldiers from elite units looting private hospitals and government offices. This isn’t just looting—it’s sabotage of essential infrastructure.”
  • Syria’s predatory wartime economy is slowly but surely turning into a predatory economy of peace
  • As some Syrians put it, Damascus has been particularly effective in reconstructing one thing amidst the immeasurable destruction: the “wall of fear” which characterized the regime before 2011 and which momentarily broke down at the outset of the uprising
  • Multiplying forms of predation have accelerated the outflow of Syria’s financial and human capital, leaving behind a country largely populated by an underclass that can aspire to little more than subsistence
  • At one level, the war has wrenched open social and economic fractures that existed long before the conflict. The city of Homs stands as perhaps the starkest microcosm of this trend. A Sunni majority city with sizable Christian and Alawi minorities, Homs was the first major urban center to rise up and the first to devolve into bitter sectarian bloodletting
  • While vast swathes of Syria’s Sunni population feel silenced and brutalized, Alawi communities often carry their own narrative of victimhood, which blends legitimate grievances with vindictive impulses vis-à-vis Sunnis whom they regard as having betrayed the country
  • crude divisions based on sect or class fail to describe a complex and fluid landscape. Some fault lines are less dramatic, all but imperceptible except to those who experience them first-hand. Neighbors, colleagues, friends and kin may have come down on opposing sides, despite having every social marker in common. Each part of the country has its own web of tragic events to untangle.
  • Many Islamic State fighters swapped clothes and joined the [Kurdish-led] Syrian Democratic Forces to protect themselves and their families. But they haven’t changed; those people are bad, and will always be bad. There will be vengeance. Not now, while everyone is busy putting their lives together. But eventually, everyone who suffered under ISIS, whose brother was killed by ISIS, will take revenge.
  • A native of a Damascus suburb remarked: “Charities typically want to help those who fled from elsewhere. So, when I go to a charity, I say I’m displaced.”
  • The divide between conservative and more secular Sunnis has calcified, manifesting itself even in differential treatment at checkpoints. “I have an easier time driving around because I don’t wear the hijab,” remarked a woman from the Damascus suburbs. “If you veil, security assumes you’re with the opposition.”
  • While dialogue is sorely needed, some Syrians warn against emphasising dialogue for its own sake—even at the cost of burying the most substantive issues at stake. A businessman from Damascus described his own abortive experience with talks proposing to link disparate elements of Syria’s private sector: “There’s this whole industry around ‘mediation,’ including between sides that don’t actually disagree on anything. Meanwhile, all the problems that caused the uprising have gotten worse.”
  • Just as Syrians are forced to be more self-reliant, they have also come to depend evermore on vital social support structures. Indeed, extreme circumstances have created a paradox: Even as society has splintered in countless ways, the scale of deprivation arguably renders Syrians more closely interdependent than ever before.
  • remittances from relatives who live abroad
  • The country’s middle and upper classes have long extended vital forms of solidarity to their needier compatriots, with Syria’s merchant and religious networks playing a leading role. What is unique, today, is the scale of hardship across the country, which is so vast as to have changed the way that Syrians conceptualize the act of receiving charity. A businessman from central Syria noted the extent to which dependency, which once demanded some degree of discretion, has become a straightforward fact of life. “People used to hide it when they were reliant on charity. Not anymore. Today you might hear workers in a factory wondering, ‘Where is the manager?’ And someone will say that he’s out waiting for his food basket. The whole country is living on handouts.”
  • People still do charity the Islamic way, based on the premise that you must assist those closest to you. If there’s someone you should help—say, a neighbor—but you’re unable, then it’s your responsibility to find someone else who can. These circles remain very much intact, and the entire society lives on this. Seven years of war didn’t destroy that aspect of Syrian culture, and that’s something Syrians are proud of.
  • There will be no nationwide recovery, no serious reform, no meaningful reconciliation for the foreseeable future.
Ed Webb

Ever Given: Egyptian Can-do Helped Unclog the Suez Canal - Bloomberg - 0 views

  • the sense of relief, joy and pride Egyptians felt over their success. The dredger and a fleet of tug boats had worked day and night to unclog one of the world’s most important waterways, eventually refloating the Ever Given in a week — Egyptian can-do beat the expectations of experts who predicted it would take twice as long.
  • served as a reminder of how much of their potential is stymied by a political economy that deters experimentation, punishes innovation and ultimately pushes many Egyptians to seek opportunities abroad
  • Centered on a bigotry of low expectations is the idea that Egyptian workers are uniquely unimaginative and unindustrious, and that these traits — rather than the greed and grift of their rulers — are to blame for the country’s economic failings.
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  • the industriousness and ingenuity displayed by the Mashhour crew and their colleagues on the tug boats are the very qualities that allow millions of Egyptians to survive the misrule that has led to rising poverty levels even as limited reforms have primarily benefited the ruling elites and crony capitalists. While the government in Cairo has received kudos for GDP growth, Egypt’s poverty rate has nearly doubled over 20 years, from 16.7% in the year 2000 to 32.5% in 2019.
  • The patronizing view that the man in the street needs the guiding hand of his betters has often encouraged international partners over the years to direct funding to the elites rather than small and medium-sized enterprises, despite pledges to prioritize those very sectors.
  • their government provides them with neither the competitive market economy nor the political freedoms that would allow them to demonstrate their readiness.
  • the waterway is of exceptional value to the government in Cairo: Not only is it a significant source of hard currency for a country with a chronic trade deficit, its strategic importance to global commerce elevates Egypt’s international status
  • Many who seek the resources — and salaries — commensurate with their skills must leave the country to find them. This is why remittances from abroad dwarf many sectors of the economy. Remittances in 2020 were worth $29.6 billion, over five times the Suez Canal’s revenue of $5.61 billion and more than double the revenues from tourism at its 2019 peak of $13 billion.
Ed Webb

New Texts Out Now: Joel Beinin, Workers and Thieves: Labor Movements and Popular Uprisi... - 0 views

  • situate the movements in Egypt and Tunisia in the framework of the imposition of neoliberal economic reform and structural adjustment programs (ERSAPs) on Tunisia, from the mid-1980s, and Egypt, from 1991. The labor movements were the most salient expression of the deteriorating conditions of life under the regime of neoliberal globalization, or “flexible accumulation,” as the regulation school of political economy terms it
  • The recent murder and torture of the Italian PhD student Giulio Regeni, who was researching the independent trade union movement in Egypt, suggests that it will be quite a while before anyone takes up this subject again.
  • class and political economy were far more salient elements of the 2011 uprisings in Tunisia and Egypt (and I might have added Bahrain and Morocco) than most Western (and even local) accounts were willing to acknowledge
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  • the successful installation of a (highly problematic, to be sure) procedural democracy in Tunisia, in contrast to the establishment of an authoritarian praetorian regime far more vicious than that of Mubarak in Egypt, made it necessary to argue that class and political economy alone do not determine outcomes
  • The character and political role of the Tunisian and Egyptian armies is also a factor
  • the economic and social discontent expressed by the desperate demise of Bouazizi and Yahyaoui has only intensified
  • In 2010 the national unemployment rate was under thirteen percent. By 2015 the figure rose to 15.3 percent. Unemployment rates in the center-west and southern regions of the country (including Kasserine and Sidi Bouzid) are typically nearly double the national average. In 2015 the OECD estimated national youth unemployment (ages fifteen to twenty-four) at nearly forty percent.
  • The government understands the problem, but has no solution. On 20 January the cabinet announced that 5,000 unemployed in Kasserine would be hired for new public sector jobs. Another 1,400 were to be hired through an existing employment program. However, on 22 January, Finance Minister Slim Chaker revoked the promise of 5,000 new jobs in Kasserine, claiming that the previous announcement was due to a “communication error.”
  • “There will be another revolution if the social and economic circumstances do not change,” said President Béji Caïd Essebsi on the fifth anniversary of Tarek Mohamed Bouazizi’s self-immolation. Nidaa Tounes, a big-tent coalition of secularists ranging from former communists to former Ben Ali supporters has split. Over two dozen of its deputies have left, and it is no longer the largest party in the parliament. The terrorist attacks have reduced tourism to a catastrophically low level. The economy is not expected to grow at all in 2016. None of its traditional elite political forces—secular or Islamist—imagine an economic program substantially different than the one Tunisia has pursued since the mid-1980s.
  • On 19 January, faced with a UGTT threat to call a general strike, the employers’ association (UTICA) agreed to increase wages for about 1.5 million private sector workers. But for the unemployed, the streets are their only recourse.
Ed Webb

Erdogan Plans to Tighten His Grip on Turkey's Economy - Bloomberg - 0 views

  • Turkish President Recep Tayyip Erdogan said he intends to tighten his grip on the economy and take more responsibility for monetary policy if he wins an election next month.
  • Erdogan told Bloomberg TV in London on Monday that after the vote transforms Turkey into a full presidential system, he expects the central bank will have to heed his calls for lower interest rates. The central bank’s key rate is now 13.5 percent, compared with 10.9 percent consumer-price inflation.
  • The lira slid to its weakest level ever against the dollar after his remarks were published
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  • Erdogan last month called snap elections for June 24, when a victory would consolidate his one-man rule of a country he’s governed since 2003. Since defeating a coup attempt in 2016, Erdogan has used emergency rule to increase his control over the region’s largest economy
  • A referendum last year weakened the role of parliament and gave the president sweeping authority in the most radical constitutional overhaul since the republic was founded 95 years ago.
  • Turkey’s relations with its NATO allies fray and its diplomatic focus shifts toward Russia and Iran. The country faces the unprecedented risk of sanctions from the U.S., a risk that Erdogan downplayed
  • “If we’re allies with the U.S., we need solidarity, not sanctions.”
  • The rapidity of the changes to Turkey’s economic and foreign policies has shaken investor confidence, which is critical because Turkey’s current-account deficit demands steady inflows from abroad
  • Erdogan has routinely criticized the central bank for setting interest rates that he says have helped stoke rising prices, an argument that contradicts conventional economic theory
Ed Webb

GCC crisis, one year on: What's the impact on Gulf economies? | GCC | Al Jazeera - 0 views

  • A year ago, the four Arab states of Saudi Arabia, the United Arab Emirates, Bahrain and Egypt imposed a full land, sea and air blockade on Qatar.  Since then, the richest country in the world per person, was forced to tap into its sovereign wealth fund and do everything it could to shore up its economy, banking system and currency.
  • Ayham Kamel, head of MENA at global risk consultancy Eurasia Group, talks to Counting the Cost.
  • I think one year after the beginning of the Qatar crisis with the other GCC members, the economy is not crashing and Qatar seems to have adjusted to what is a very challenging situation.
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  • on the diplomatic front, we've seen an effort to engage with alternative powers - not only the US, but broadly to establish new trade links, try to cement those. So you have Qatar not really in an isolated position internationally, and that's a function of both, the importance of the gas reserves and gas exports, but also the financial cushion that Qatar has through its sovereign wealth fund, the Qatar Investment Authority
  • when it comes to the UAE and Dubai specifically, some of the repercussions have been more serious or more tangible. Be it financial transactions being shifted from Dubai to London or New York where Qatar has been involved, so there's a loss of business volumes there. And certainly when it comes to Jebel Ali and the exports through Jebel Ali, that have now been rerouted to Oman. So, we've seen a bit more of an impact there
Ed Webb

The Coronavirus Oil Shock Is Just Getting Started - 0 views

  • People in the West tend to think about oil shocks from the perspective of the consumer. They notice when prices go up. The price spikes in 1973 and 1979 triggered by boycotts by oil producers are etched in their collective consciousness, as price controls left Americans lining up for gas and European governments imposed weekend driving bans. This was more than an economic shock. The balance of power in the world economy seemed to be shifting from the developed to the developing world.
  • If a surge in fossil fuel prices rearranges the world economy, the effect also operates in reverse. For the vast majority of countries in the world, the decline in oil prices is a boon. Among emerging markets, Indonesia, Philippines, India, Argentina, Turkey, and South Africa all benefit, as imported fuel is a big part of their import bill. Cheaper energy will cushion the pain of the COVID-19 recession. But at the same time, and by the same token, plunging oil prices deliver a concentrated and devastating shock to the producers. By comparison with the diffuse benefit enjoyed by consumers, the producers suffer immediate immiseration.
  • In inflation-adjusted terms, oil prices are similar to those last seen in the 1950s, when the Persian Gulf states were little more than clients of the oil majors, the United States and the British Empire
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  • Fiscal crises caused by falling prices limit governments’ room for domestic maneuver and force painful political choices
  • The economic profile of the Gulf states is not, however, typical of most oil-producing states. Most have a much lower ratio of oil reserves to population. Many large oil exporters have large and rapidly growing populations that are hungry for consumption, social spending, subsidies, and investment
  • In February, even before the coronavirus hit, the International Monetary Fund was warning Saudi Arabia and the United Arab Emirates that by 2034 they would be net debtors to the rest of the world. That prediction was based on a 2020 price of $55 per barrel. At a price of $30, that timeline will shorten. And even in the Gulf there are weak links. Bahrain avoids financial crisis only through the financial patronage of Saudi Arabia. Oman is in even worse shape. Its government debt is so heavily discounted that it may soon slip into the distressed debt category
  • Ecuador is the second Latin American country after Argentina to enter technical default this year.
  • Populous middle-income countries that depend critically on oil are uniquely vulnerable. Iran is a special case because of the punitive sanctions regime imposed by the United States. But its neighbor Iraq, with a population of 38 million and a government budget that is 90 percent dependent on oil, will struggle to keep civil servants paid.
  • Algeria—with a population of 44 million and an official unemployment rate of 15 percent—depends on oil and gas imports for 85 percent of its foreign exchange revenue
  • The oil and gas boom of the early 2000s provided the financial foundation for the subsequent pacification of Algerian society under National Liberation Front President Abdelaziz Bouteflika. Algeria’s giant military, the basic pillar of the regime, was the chief beneficiaries of this largesse, along with its Russian arms suppliers. The country’s foreign currency reserves peaked at $200 billion in 2012. Spending this windfall on assistance programs and subsidies allowed Bouteflika’s government to survive the initial wave of protests during the Arab Spring. But with oil prices trending down, this was not a sustainable long-run course. By 2018 the government’s oil stabilization fund, which once held reserves worth more than one-third of GDP, had been depleted. Given Algeria’s yawning trade deficit, the IMF expects reserves to fall below $13 billion in 2021. A strict COVID-19 lockdown is containing popular protest for now, but given that the fragile government in Algiers is now bracing for budget cuts of 30 percent, do not expect that calm to last.
  • Before last month’s price collapse, Angola was already spending between one fifth and one third of its export revenues on debt service. That burden is now bound to increase significantly. Ten-year Angolan bonds were this week trading at 44 cents on the dollar. Having been downgraded to a lowly CCC+, it is now widely considered to be at imminent risk of default. Because servicing its debts requires a share of public spending six times larger than that which Angola spends on the health of its citizens, the case for doing so in the face of the COVID-19 crisis is unarguable.
  • Faced with the price collapse of 2020, Finance Minister Zainab Ahmed has declared that Nigeria is now in “crisis.” In March, the rating agency Standard & Poor’s lowered Nigeria’s sovereign debt rating to B-. This will raise the cost of borrowing and slow economic growth in a country in which more than 86 million people, 47 percent of the population, live in extreme poverty—the largest number in the world. Furthermore, with 65 percent of government revenues devoted to servicing existing debt, the government may have to resort to printing money to pay civil servants, further spurring an already high inflation rate caused by food supply shortages
  • The price surge of the 1970s and the nationalization of the Middle East oil industry announced the definitive end of the imperial era. The 1980s saw the creation of a market-based global energy economy. The early 2000s seemed to open the door on a new age of state capitalism, in which China was the main driver of demand and titans like Saudi Aramco and Rosneft managed supply
  • The giants such as Saudi Arabia and Russia will exploit their muscle to survive the crisis. But the same cannot so easily be said for the weaker producers. For states such as Iraq, Algeria, and Angola, the threat is nothing short of existential.
  • Beijing has so far shown little interest in exploiting the crisis for debt-book diplomacy. It has signaled its willingness to cooperate with the other members of the G-20 in supporting a debt moratorium.
  • In a century that will be marked by climate change, how useful is it to restore profits and prosperity based on fossil fuel extraction?
  • The shock of the coronavirus is offering a glimpse of the future and it is harsh. The COVID-19 crisis drives home that high-cost producers are on a dangerously unsustainable path that can’t be resolved by states propping up their uncompetitive oil sectors. Even more important is the need to diversify the economies of the truly vulnerable producers in the Middle East, North Africa, sub-Saharan Africa, and Latin America.
Ed Webb

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

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

The Ukraine War: A Global Crisis? | Crisis Group - 0 views

  • The Ukraine conflict may be a matter of global concern, but states’ responses to it continue to be conditioned by internal political debates and foreign policy priorities.
  • China has hewed to a non-position on Russian aggression – neither condemning nor supporting the act, and declining to label it as an invasion – while lamenting the current situation as “something we do not want to see”. With an eye to the West, Beijing abstained on rather than vetoing a Security Council resolution calling on Russia to withdraw from Ukraine, and reports indicate that two major Chinese state banks are restricting financing for Russian commodities. Beijing now emphasises the principles of territorial integrity and sovereignty in its statements, a point that had either been absent from earlier statements or more ambiguously discussed as “principles of the UN Charter”.
  • the worldview that major powers can and do occasionally break the rules
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  • Beijing’s opposition to U.S. coalition building and expansion of military cooperation with Indo-Pacific countries. Overall, Beijing’s instinct is to understand the Ukraine crisis largely through the lens of its confrontation with Washington.
  • Beijing will want to ensure its position is not overly exposed to Western criticism and to safeguard its moral standing in the eyes of developing countries
  • When Russia invaded Ukraine, India immediately came under the spotlight as at once a consequential friend of Moscow and a country traditionally keen to portray itself as the world’s largest democracy and a champion of peace. The U.S. and European countries pressured India not to side with Moscow and the Ukrainian ambassador in New Delhi pleaded for India to halt its political support for Russia. Yet under Prime Minister Narendra Modi, India has responded to the invasion with the blunt realism of a rising, aspirational power that does not want to get caught between Russia and what Modi calls the “NATO group”. India chose the well-trodden non-alignment path and hid behind diplomatic language with a not-so-subtle tilt toward Russia.
  • “military-technical cooperation”, which has resulted in more than 60 per cent of India’s arms and defence systems being of Russian origin
  • India also depends on Russia to counterbalance China, which has become its primary security and foreign policy concern, especially given its unresolved border tensions with Beijing. With Pakistan, India’s main rival, already close to China and cosying up to Russia, India’s worst fear is that China, Pakistan and Russia will come together
  • Relations with Washington are already strained largely because of Islamabad’s seemingly unconditional support for the Afghan Taliban. To give his government diplomatic space, Khan has sought to forge closer ties with Moscow. Those efforts could not have come at a less opportune time.
  • Khan returned home with little to show from the trip, the first by a Pakistani prime minister in over two decades. He signed no agreements or memoranda of understanding with his Russian counterpart. Widening Western sanctions on Russia have also sunk Pakistani hopes of energy cooperation with Moscow, casting particular doubt on the fate of a proposed multi-billion-dollar gas pipeline project.
  • In contrast to Russia, with which Pakistan’s commerce is miniscule, the U.S. and EU states are its main trading partners. The war in Ukraine could further undermine Pakistan’s economy. The rise in global fuel prices is already fuelling record-high inflation and putting food security at risk, since before the invasion Ukraine provided Pakistan with more than 39 per cent of its wheat imports. With a trade deficit estimated by one analyst at around $40 billion, Islamabad’s reliance on external sources of funding will inevitably grow. A Russia under heavy sanctions will be in no position to assist. In such a scenario, Pakistan’s powerful military, which Khan depends on for his own political survival, could question his foreign posture.
  • The Gulf Arab countries have so far adopted an ambiguous position on the Russian aggression in Ukraine. As close U.S. partners that also have increasing ties to Russia, they sit between a rock and a hard place, unwilling to openly antagonise either side. They have landed in this conundrum because of what they perceive as a growing U.S. withdrawal from the Middle East. In response, they embarked on an effort to diversify their security relations, moving away from sole reliance on Washington. Russia is one of these new partners.
  • No Gulf power wants to give the impression of siding with the Kremlin, for fear of aggravating the U.S. – their primary security guarantor. But as international support for Ukraine and anger at those seen to support (or at least not publicly oppose) Russia grows, the damage may already have been done: the U.S. and its European allies were appalled at the Gulf states’ reticence to get in line with immediate condemnations of the Russian invasion
  • despite Iran’s own experience of losing large swaths of territory to Czarist Russia in the nineteenth century and facing Soviet occupation during and immediately after World War II, the Islamic Republic today can claim few major allies beyond Russia. Tehran sees few upsides in breaking ranks with Moscow. In comparison to the possible results of provoking the Kremlin with anything less than fulsome support, the diplomatic opprobrium it may receive from the U.S. and Europe is of little consequence.
  • Israel has substantive relations with both Russia and Ukraine: Israeli Prime Minister Naftali Bennett has spoken to both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy since the war began, and has offered to act as mediator; Israel sees itself as, in effect, sharing a border with Russia to its north east in Syria, relying on Putin’s continued tacit approval of its airstrikes on Iranian targets there; large Jewish and Israeli populations reside in both Russia and Ukraine and over 1.5 million Russian and Ukrainian expatriates live in Israel; and Israel is a major U.S. ally and beneficiary that identifies with the Western “liberal democratic order”.
  • concerned that the fallout from the war could lead Putin to increase arms sales to anti-Western proxies along its borders, chiefly Syria and Hizbollah in Lebanon, or step up electronic measures to disrupt NATO operations in the Mediterranean Sea, affecting Israel’s own navigation systems. Thus far, Russia has assured Israel that it will continue coordination on Syria, though reiterating that it does not recognise Israeli sovereignty in the Golan Heights, which Israel occupied in 1967 and later annexed
  • Israel has offered humanitarian aid to Ukraine but has refused to sell it arms or provide it with military assistance.
  • President Zelenskyy is the only elected Jewish head of state outside Israel. He lost family in the Holocaust. As such, Israel’s silence on Putin’s antisemitic rhetoric, such as his claim to be “denazifying” Ukraine with the invasion, is noteworthy. That said, Israel has some track record – vis-à-vis Hungary and Poland, for example – of placing what its leaders view as national security or foreign relations concerns above taking a strong stand against antisemitism.
  • Since the invasion began, Bolsonaro’s affinities with Moscow have exposed the divisions within his hard-right government. From the outset, Brazil’s foreign ministry has vowed to maintain a position of neutrality, urging a diplomatic solution. But a day after the invasion, Hamilton Mourão, the vice president and a retired army general, said “there must be a real use of force to support Ukraine”, arguing that “if the Western countries let Ukraine fall, then it will be Bulgaria, then the Baltic states and so on”, drawing an analogy to the conquests of Nazi Germany. Hours later, Bolsonaro said only he could speak about the crisis, declaring that Mourão had no authority to comment on the issue.
  • Since 2014, Turkish defence companies have been increasingly engaged in Ukraine, and in 2019 they sold the country drones that Ukrainians see as significant in slowing the Russian advance.
  • On 27 February, Ankara announced that it would block warships from Russia and other littoral states from entering the Black Sea via the Bosporus and Dardanelles Straits as long as the war continues, in line with the Montreux Convention (though Russian vessels normally based in Black Sea ports are exempt from the restriction, under the convention’s terms). But it also requested other states, implicitly including NATO members, to avoid sending their ships through the straits, in an apparent effort to limit the risks of escalation and maintain a balanced approach to the conflict.
  • Some fear, for instance, that Russia and its Syrian regime ally will ratchet up pressure on Idlib, the rebel-held enclave in Syria’s north west, forcing large numbers of refugees into Turkey, from where they might try to proceed to Europe. This worry persists though it is unclear that Russia would want to heat up the Syrian front while facing resilient Ukrainian resistance.
  • A prolonged war will only exacerbate Turkey’s security and economic concerns, and if Russia consolidates control of Ukraine’s coastline, it will also deal a significant blow to Turkey in terms of the naval balance of power in the Black Sea. It is likely that Turkey will draw closer to NATO as a result of this war, and less likely that Turkey will buy a second batch of S-400 surface-to-air missiles from Russia
  • Kenya, currently a non-permanent member of the UN Security Council, has taken a more strident stance in opposition to Russia’s invasion than most non-NATO members of the Council. This position springs in part from the country’s history. Nairobi was one of the strongest supporters of a founding principle of the Organisation of African Unity (OAU) prescribing respect for territorial integrity and the inviolability of member states’ colonial-era borders.
  • As in many African countries, a deep current of public opinion is critical of Western behaviour in the post-Cold War era, emphasising the disastrous interventions in Iraq and Libya, as well as the double standards that many Kenyans perceive in Washington’s democracy promotion on the continent.
  • What Nairobi saw as Washington’s endorsement of the 2013 coup in Egypt particularly rankled Kenyan authorities, who took an especially vocal public position against that putsch
  • Kenya will also push for the strengthening of multilateralism in Africa to confront what many expect to be difficult days ahead in the international arena. “We are entering an age of global disorder”, Peter Kagwanja, a political scientist and adviser to successive Kenyan presidents, told Crisis Group. “The African Union must band together or we will all hang separately”.
  • longstanding solidarity between South Africa and Russia. In the Soviet era, Moscow offered South Africans support in the anti-apartheid struggle and actively backed liberation movements across southern Africa.
  • Although just over half of African states backed the UN General Assembly resolution on Ukraine, many governments in the region have responded to the war with caution. Few have voiced open support for Russia, with the exception of Eritrea. But many have avoided taking strong public positions on the crisis, and some have explicitly declared themselves neutral.
  • Ghana, which joined the UN Security Council in January, has consistently backed the government in Kyiv. The West African bloc, the Economic Community of West African States (ECOWAS), released a statement condemning Russia’s actions. Nonetheless, not all ECOWAS members voted for the General Assembly resolution. Mali, which has drawn closer to Russia as France pulled its military forces out of the country, abstained. Burkina Faso did not vote, perhaps reflecting the fact that Russia watered down a Security Council statement condemning the January coup in Ouagadougou.
  • Russia has many friends in Africa due in part to the Soviet Union’s support for liberation movements during the anti-colonial and anti-apartheid struggles. Many also appreciated Moscow’s strident opposition to the more recent disastrous Western interventions in Iraq and Libya. Furthermore, a number of African leaders studied in the Soviet Union or Eastern Bloc countries and Moscow has done a good job of maintaining these ties over the years. Numerous African security figures also received their training in Russia.
  • African leaders and elites generally oppose sanctions, seeing them as blunt tools that tend to punish the general population more than national leaders. In the meantime, African officials are concerned that the war will have a deleterious impact on the continent’s economies and food security, both by driving up energy prices and by restricting grain supplies from Russia and Ukraine (a particular concern after a period of poor rainfall and weak harvests in parts of the continent). These shocks are liable to be severe in African countries that are still only beginning to recover from the downturn prompted by COVID-19, although oil producers such as Nigeria, Congo and Equatorial Guinea may benefit from a hike in energy prices.
  • The Ukraine conflict is a major problem for Turkey. It threatens not only to damage Ankara’s relations with Moscow, but also to hurt the Turkish economy, pushing up energy costs and stopping Russian and Ukrainian tourists from visiting Turkey. Some analysts estimate that a decline in tourism could mean up to $6 billion in lost revenue.
  • Calls for neutrality nevertheless enjoy traction in Brazil. Within the government, there is concern that Western sanctions against Moscow will harm the economy, in particular its agricultural sector, which relies heavily on imports of Russian-made fertilisers. Brazil’s soya production, one of the country’s main sources of income, would suffer considerably from a sanctioned Russia.
  • Mexico depends on the U.S for its natural gas supply, and the prospect of rising prices is spurring the government to consider other means of generating electricity
  • Relations between Russia and Venezuela flourished under the late president, Hugo Chávez, who set the relationship with Washington on an antagonistic course. Under Maduro, Venezuela’s links to Russia have intensified, especially through the provision of technical military assistance as well as diplomatic backing from Moscow after Maduro faced a major challenge from the U.S.-linked opposition in early 2019.
Ed Webb

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

  • 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.
Ed Webb

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

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    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.
Erin Gold

A man's world but nothing without a woman or a girl - The National Newspaper - 0 views

  • If the Chinese are right when they say that women hold up half the sky, we may be in for trouble in the UAE.
  • serious gender imbalance in this country, thanks largely to the armies of imported construction workers needed to help build the nation’s skylines.
  • Solid numbers are hard to come by, but according to most population estimates there are roughly three men in the UAE for every woman
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  • This is thankfully starting to change. Women were allowed to vote and run in the country’s first parliamentary elections in 2006.
  • But since a sizeable majority of UAE residents are not citizens, changes to the participatory power of Emirati women in local politics are likely to do little to redress the more immediate consequences of the gender gap on the nation’s economy and society.
  • In many ways, the demographics of the UAE’s economy resemble those of frontier America,
  • But the biggest concern may not be how the global crisis aggravates the surfeit of men; rather how it irritates our shortage of women.
  • Regardless of whether men start fist fights in shawarma stalls or stage riots over parking, no city can be considered civilised without a feminine touch.As Mr Courtwright suggests, men behave much better when there are women about.
  • There is some biological evidence to support this: long-term studies of men have found that single men have higher levels of testosterone, the hormone responsible for male attributes and correlated to aggression, than men who are married.
  • If the Government carries through with big infrastructure projects but offers no support for the service sector and small and medium-sized enterprises, where will women find work?Conversely, as businesses outside of construction cut costs, job losses are likely to fall disproportionately on the already smaller population of women working in the UAE.Economists note that population loss may be one of the biggest risks to the UAE’s economy. It could be argued further that losing one woman has more economic impact than losing one man. Many of the women leaving the UAE, after all, are married to men who have lost their jobs.
Ed Webb

'Five years ago there was nothing': inside Duqm, the city rising from the sand | Cities... - 0 views

  • a long line of plans stretching back to the 1980s aimed at developing and populating barren parts of Oman. Around 70% of the country’s population resides within a thin 150-mile-long coastal strip in the north near Muscat. The government now sees its hundreds of miles of unused coastline as full of economic potential.
  • “Duqm is a huge industrial city being built out of thin air,” says Manishankar Prasad, a local researcher who worked on the new city’s environmental and cultural impact assessments. “It will essentially change the locus of industrial activity from the northern parts of the country, which are heavily urbanised. [Having this] huge geographical expanse with this sparse population and no industrial activity is really not the way forward.”
  • We are in the midst of an era of new cities – with more than 200 currently under construction. Remote deserts all over east Asia, the Middle East and parts of Africa are being urbanised. There’s Nurkent in Kazakhstan, Aylat in Azerbaijan, New Kabul City in Afghanistan, New Baghdad in Iraq, Rawabi in Palestine, King Abdullah Economic City in Saudi Arabia, New Cairo in Egypt … Morocco has nine new cities in the works, and Kuwait has 12.
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  • Oman is desperate to diversify away from its oil and gas dependency. Research by the US Energy Information Administration puts Oman’s known crude oil reserves at 5.6bn barrels. While this is only enough to rank the country 21st in the world, its economy is disproportionately dependent: oil and gas accounts for nearly half of the country’s GDP, 70% of exports and between 68% and 85% of government revenue.
  • “Several dozen new cities are being constructed in the Middle East, mainly to transition away from the petroleum industry to a variety of other industries, including tourism, manufacturing, education and hi-tech,” says Dr Sarah Moser, a McGill University geography professor and author of an upcoming atlas of new cities.
  • Duqm sits on the Arabian Sea near the Strait of Hormuz, the gateway to the Persian Gulf – and the world’s most glaring oil supply chokepoint. Nearly a fifth of the world’s oil currently flows through this passage, ever prone to disruption. If the Duqm project succeeds, the shipping industry would be able to dock at the gates of the Middle East without needing to go all the way inside.
  • attracted the attention of Beijing’s much heralded Maritime Silk Road. More than three-quarters of Oman’s crude oil exports go directly to China.
  • While Duqm was never very densely populated, around 3,000 Bedouin – mostly fishermen and semi-nomadic herders – called the area home before the bulldozers arrived. These villages have now been demolished and the Oman government has built a new, modern town for them to relocate to. The houses look as if they were copied and pasted from Muscat – bright, white buildings two storeys high with garages and ornate gateways. There is a mosque in the centre. The houses stand empty. The local Bedouin prefer their traditional way of life – and want space to keep camels.
Ed Webb

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

  • 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

Can Cairo stave off discontent over soaring prices? - 0 views

  • As pressure builds on Egyptian livelihoods following the devaluation of the pound and the slashing of fuel subsidies in November, some analysts are wondering if another uprising is looming on the horizon for Egypt. They warn that a new wave of unrest would be bloodier than the 2011 uprising and could spell disaster for the country, still reeling from the turbulent post-revolution transition.
  • Prices of basic food items, medicine, transport and housing have soared, prompting Egyptians to cut spending to make ends meet. The prices of some basic food items have shot up by up to 40%, according to CAPMAS, the Central Agency for Public Mobilization and Statistics
  • protests broke out in at least four Egyptian provinces March 7. The demonstrations were triggered by bread shortages in some bakeries after Supply Minister Aly Moselhy announced a new bread subsidies system that he defended as “necessary to curb waste and corruption.” Hundreds of demonstrators blocked roads and cut railways in Alexandria, Giza, Kafr El Sheikh and Minya in protest at the minister’s abrupt decision to reduce the share of bread allotted to holders of paper ration cards to 500 loaves per bakery a day from the original 1,000 and 4,000 loaves (depending on the number of consumers in the bakery’s vicinity.)
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  • The decision to implement the new system was quickly reversed, however, over fears that the simmering bread crisis could provoke wider tumult. Seeking to allay citizens’ concerns that the move was a prelude to a reduction in their quotas of subsidized bread, Moselhy held a televised press conference on the day of the protests, apologizing to “all citizens who had not received bread” and asserting that their quotas would remain untouched. Promising to resolve the crisis within 48 hours, he blamed bakery owners for the crisis, hinting they were making profits off the subsidized flour they received from the government.
  • In the last six years, government spending on food and fuel subsidies has represented more than a quarter of annual government expenditure (more than the country spends on education and health services combined)
  • a thriving black market for the subsidized wheat, which is often resold by the bakeries at a profit rather than turned into bread
  • “The patience of Egyptians is wearing thin,” Cairo University political scientist Hassan Nafaa told Al-Monitor. “Despite the economic pressures they are facing, citizens have so far restrained themselves from protesting because they are weary after two revolutions. They also fear further turmoil as they see the civil wars in some of the neighboring Arab countries. But if people are hungry and if their basic needs are not met, there is likely to be another rebellion,” he warned, adding that if that happens, “It would be messy and bloody.”
  • Tensions have been simmering since the pound’s depreciation — a key requirement by the International Monetary Fund for Egypt to secure a $12 billion loan needed to finance the country’s budget deficit and shore up dwindling foreign currency reserves. Economists and analysts have lauded the flotation as “a much-needed reform that would restore investors’ confidence in the economy, helping foster growth and job creation.”
  • shrinking middle class was already struggling with flat wages, high inflation and mounting unemployment
  • Sisi’s approval ratings, which according to a poll conducted in mid-December 2016 by Baseera (Egyptian Center for Public Opinion Research) fell by 50% during his second year in office
  • the weak currency is helping the economy by boosting exports and luring back tourists. A 25% increase in non-petroleum exports in January (compared with the same month last year), along with new loans from the IMF and other sources, is beefing up foreign currency reserves, according to The Economist. The weaker currency is also proving to be a blessing in disguise for local manufacturers as more consumers are opting to purchase local products, which are more affordable than their imported alternatives
  • The real test will be the government’s ability to stave off unrest that could undermine the progress made so far. Nafaa said it is possible to quell the rising anger over soaring prices “through more equitable distribution of wealth, better communication of government policies, transparency and accountability.”
  • “The government must also ease the crackdown on dissent, release detainees who have not committed terror crimes and bring more youths on board,”
Ed Webb

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

  • 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

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

  • 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.
  • 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.
  • 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.
  • 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

Drought may have doomed this ancient empire - a warning for today's climate crisis - Th... - 0 views

  • A new analysis published Wednesday in the journal Nature shows that the Hittites endured three consecutive years of extreme drought right around the time that the empire fell. Such severe water shortages may have doomed the massive farms at the heart of the Hittite economy, leading to famine, economic turmoil and ultimately political upheaval, researchers say.
  • n accumulating field of research linking the fall of civilizations to abrupt shifts in Earth’s climate. In the ruins of ancient Egypt, Stone Age China, the Roman Empire, Indigenous American cities and countless other locations, experts have uncovered evidence of how floods, droughts and famines can alter the course of human history, pushing societies to die out or transform.
  • It underscores the peril of increasingly frequent and severe climate disasters. But it also points to strategies that might make communities more resilient: cultivating diverse economies, minimizing environmental impacts, developing cities in more sustainable ways.
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  • “Things like climate change, earthquakes, drought — they are of course realities of our lives,” Durusu-Tanrıöver said. “But there are human actions that can be taken to foresee what will happen and behave accordingly.
  • In the half-century leading up to empire’s collapse, the scientists found, the rings inside the tree trunks gradually start to get narrower — suggesting that water shortages were limiting the junipers’ growth. Chemical analyses of the kind of carbon captured in the wood also showed how drought altered the trees at the cellular level.
  • cuneiform tablets from that time in which Hittite officials fretted over rising food prices and asked for grain to be sent to their cities. But Manning said the empire — which was known for its elaborate water infrastructure projects and massive grain silos in major cities — should have been able to survive this “low frequency” drought.
  • between 1198 and 1196 B.C., the region was struck by three of the driest years in the entire 1,000-year-long tree ring record. The abrupt spurt of intensely dry weather may have been more than the Hittites could bear. Within a generation, the empire had dissolved.
  • “Very few societies ever plan for more than one or two disasters happening consecutively.”
  • “But I think it’s naive to believe that three years of drought would bring down the storerooms of the Hittite empire,” Weiss said. He argues that the longer-term drying trend, which has been documented in other studies, was probably more significant.
  • “What’s a crisis for some becomes almost an opportunity for others,” Manning said. “You have adaptation and resilience in the form of new states and new economies emerging.”
  • Durusu-Tanrıöver blames an unsustainable economy and centralized political system. The intensive agricultural practices required to support the capital city probably exhausted the region’s water resources and weakened surrounding ecosystems
  • parallels to modern urban areas, which are both major sources of planet-warming pollution and especially vulnerable to climate change impacts like extreme heat.
Ed Webb

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

  • 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
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