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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.

After years of misrule under Saddam Hussein, coupled with the effects of UN sanctions, and the post-2003 violence, Iraq has been left as the poorest Arab country after Yemen.

BP has not been criticised directly, but its involvement will revive memories of past exploitation by the British. It is believed widely that Britain created and controlled the country for the benefit of British exporters.

Behind the protest is the desire among many politicians to get a slice of the revenue through lucrative commissions to approve deals.

Saudi Arabia is entirely dependent on oil and gas for its electricity production, and according to SPA its energy demand is growing between six and eight percent annually

France and Saudi Arabia announced a feasibility study for building two nuclear reactors in the kingdom

"The root of the problem is the disintegration of the resource-sharing system the Soviet Union imposed on the region until its collapse in 1991," the International Crisis Group, a conflict studies think-tank, said in a 2014 report entitled Water Pressures in Central Asia.

The Ferghana Valley's problems are replicated throughout Central Asia, a landlocked region of more than 60 million people where conditions for farming are far less favourable, but tens of millions still live off land. Their problems are exacerbated by desertification, old and decrepit infrastructure and poor water management.

Unsurprisingly, the word "war" resurfaced when Moscow threw its weight and money to revive Soviet-era designs to build five more dams and hydropower stations in Kyrgyzstan. The Kremlin pledged to finance the $3.2bn project on the Naryn River, Syr Darya's tributary, as part of its political effort to restore its foothold in Central Asia. Uzbek President Islam Karimov wasn't very subtle with his warning. "Control over water resources in the republics of Central Asia may lead to a full-scale war," he said in October.

These days, Kyrgyzstan is withholding water in massive upstream reservoirs releasing it according to electricity generation needs -  that is in winter - and not the interests of now-foreign farmers next door.

Aral is now reduced to two smaller lakes, while most of its former seabed has turned into a desert that releases tens of thousands of tons of toxic salt-dust annually.  

In southeastern Kazakhstan, another major body of water faces Aral's fate. The shallow, boomerang-shaped Balkhash is the world's 15th largest freshwater lake mostly fed by the Ili River that flows from China. The lake that supplies three Kazakh regions with is shrinking as China amasses Ili's waters in a dozen reservoirs.   Given the Gordian knot of regional problems, some experts think that in the coming decades, an armed conflict in the region over water seems inevitable.

During Ahmet Davutoğlu’s tenure as Turkey’s prime minister, relations between Ankara and the Tobruk-based parliament deteriorated to the point where all Turkish firms were expelled from Libya. 

Ankara's efforts to gain influence in Libya pale in comparison to the security assets that Moscow and Egypt may be preparing for a more expanded military presence in Libya. On November 7, 2018, Haftar and his senior staff visited Moscow for their latest meeting with Russia's defense minister Sergei Shoigu. Following the session, the Libyan Armed Forces released a video showing the presence of Yevgeny Prigozhin, an associate of Russian President Vladimir Putin and linked to several Russian private military companies, including the Wagner Group that allegedly participated in operations in Syria. Prigozhin's presence at the Haftar-Shoigu meeting has suggested to observers within Russia and beyond that Moscow may be gearing up for some form of increased intervention in Libya with operations similar to those conducted in Syria.

from November 3 to 16, Egypt hosted a two-week long joint exercise with the militaries of Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, and Jordan. Dubbed Arab Shield 1, the exercise involved land, naval, and air forces as well as Special Forces and took place at Egypt's base in Marsa Matrouh. While some view the exercises as a step toward creating an 'Arab NATO' to confront Iran, the massive joint Arab exercise on Egypt's Mediterranean coast sent a clear signal to Turkey and demonstrated the sort of coalition Egypt could muster should it decide to expand its military footprint in Libya

both Russia and Egypt have strategic incentives to escalate their support for the aging Libyan commander Field Marshal Khalifa Haftar.  In April 2018, the general suffered a stroke and required hospitalization in an intensive care unit in Paris.  Although two of Haftar's sons are commanders in the Libyan National Army, it is unclear whether either one of them could maintain the loyalty of the coalition of diverse factions that have united under the figure of Khalifa Haftar.  It would behoove both Moscow and Cairo to press their current advantage and deepen their respective positions in preparation for a post-Haftar era.

Moscow’s military presence in Libya would enable the Kremlin to complete a Russian ring around the southern half of the eastern Mediterranean. It is worth noting that Vladimir Putin's Russia is more popular than NATO in Greece and among Greek Cypriots. With only 195 nautical miles (360 km) separating Tobruk and Crete, Turkey thus faces the prospect of eventually finding itself encircled by a Russian presence among all of its regional adversaries

The change in the balance of power in North Africa in favor of Russia and Egypt inevitably and severely undermines Turkey's already challenging strategic position in the Eastern Mediterranean.

Israel’s two gas export deals — with Egypt and Jordan — were signed with the two Arab countries with which the Jewish state already had peace treaties, and even then relations are still fraught at times. Meanwhile, hopes that natural gas pipelines and projects could soothe years of tensions between Israel and Turkey have apparently evaporated.

“Politics drives energy relations, not vice versa,”

Lebanon’s decision this month to award an exploration concession to three international firms — France’s Total, Italy’s Eni, and Russia’s Novatek — to drill in a promising block off the Lebanese coast has ignited fresh tensions between Beirut and Jerusalem.

Mediation was at the top of the agenda during Secretary of State Rex Tillerson’s recent visit to Lebanon, as it has been for U.S. officials since 2012, but with little success. A senior U.S. diplomat tried again Wednesday but found little Lebanese appetite for U.S. proposals. While Israel wants continued U.S. mediation in the spat, Lebanon and especially Hezbollah see Washington as too pro-Israel to play that role, especially after the Donald Trump administration’s controversial decision to move the U.S. Embassy to Jerusalem. Hezbollah leader Hassan Nasrallah said the United States is “not an honest broker.”

This month — as it did in 2014 — a Turkish ship intercepted a drilling vessel in Cypriot waters; Ankara, which recognizes the Turkish north of the divided island, refuses to cede those waters to Greek Cyprus and angrily warned it could take further action if development continues. The Turkish Foreign Ministry said it is “determined to take the necessary steps” to support the northern half of the island in its dispute with Greek Cypriots, who Ankara said are “irresponsibly jeopardizing the security and stability of the Eastern Mediterranean region.”

“Shared interest in [energy resources] might provide an incentive for cooperation among countries of the region that already enjoy more or less good relations,” Sukkarieh says. “But it is equally conceivable that they could fuel rivalries as well, like we are seeing lately with Turkey.”

“You could spend years campaigning traditionally against someone or you could hack an email account and leak salacious details to the media. If you have no scruples, and access to hackers, the choice is obvious.”

This is the new warfare. This is something the governments use for commercial reasons, use for political reasons, and use to destroy their opponents

Tensions have been building for years between the UAE and Qatar. The two have feuded over Qatar’s support for the Muslim Brotherhood, the Islamist movement that many Persian Gulf monarchies see as a threat to their hereditary kingdoms. They’ve also been at odds over Qatar’s friendly relations with Iran and its backing of the Al Jazeera television channel, whose newscasts are often critical of Arab autocrats.The feud broke into the open on May 24 last year when someone hacked into the website and Twitter account of Qatar’s government news agency, QNA, and posted news stories and tweets that quoted the country’s emir, Sheikh Tamim bin Hamad Al Thani, making bizarrely pro-Iran statements.Qatar disavowed the remarks within an hour, and its foreign minister, Mohammed bin Abdulrahman Al Thani, quickly texted the UAE’s crown prince, Mohammed bin Zayed, that the statements weren’t true. Qatar took its official news website down, and still hasn’t brought it back online.But the damage had been done

The UAE and Saudi Arabia, with the backing of the Trump administration, used the hacked news stories as a pretext for severing relations with Qatar, imposing a blockade, and making 13 demands, including that Qatar cut all ties with Iran and shut down Al Jazeera and all other state-funded news sites.

“They weaponized fake news to justify the illegal blockade of Qatar,” said Jassim Al Thani, Qatar’s Washington-based media attaché. “In the year since then, we have seen their repeated use of cyberespionage, fake news, and propaganda to justify unlawful actions and obfuscate underhanded dealings.”

he FBI concluded that freelance Russian hackers had carried out the operation on the UAE’s behalf

In June of last year, someone began leaking the contents of a Hotmail account belonging to Yousef al-Otaiba, the UAE’s flashy ambassador to the United States. The leaks were distributed to a group of online news sites, including the Huffington Post, the Intercept, and the Daily Beast.“The leakers claimed the documents had been provided to them by a paid whistleblower embedded in a Washington, DC, lobbyist group, though it’s clear from even a cursory examination that they were printed out from Al Otaiba’s Hotmail account,”

“It’s not clear whether Otaiba’s inbox was hacked or passed along by someone with access to the account,”

The most damaging email leaks came in March when someone went after Elliott Broidy, a 60-year-old American hired to lobby for the UAE, and whose company, Circinus, has received more than $200 billion in defense contracts from the country. In recent years, he’s been one of the loudest American voices against Qatar, employing tactics ranging from anti-Qatar op-eds to personally lobbying Donald Trump to support the blockade against it.Broidy was in a prime position to lobby the president. He was the Republican Party’s vice chair of fundraising until April 13, when he resigned after the Wall Street Journal revealed that he’d used Trump’s lawyer, Michael Cohen, to pay a 34-year-old former Playboy model $1.6 million in hush money after he’d gotten her pregnant. The Journal said leaked emails played no role in that coverage.

“There was thought and calculation behind how this material was being distributed,” Wieder, who wrote about the emails in a follow-up story, told BuzzFeed News. “It’s not the old-school, WikiLeaks, ‘everything’s up on a site; make what you will of it.’”

There may be plenty of Iranians who don’t like the clerical regime, but most of the population is also intensely patriotic and likely to harbor even greater resentment toward the distant superpower that is working overtime to cripple their economy

If we’ve learned anything from Iraq, Afghanistan, Libya, Somalia, Sudan, Yemen, and Syria, it is that removing an unsavory regime often makes things worse, not better

Another possibility is that the administration is trying to use maximum pressure to goad Iran into restarting its nuclear program. Once it does, so the argument runs, Europe, Russia, and China would line up behind the United States and support (or at least tolerate) a military attack on Iran’s nuclear infrastructure.

it would be another one of those giant roll-of-the-dice bets that the United States keeps making (and losing) in the Middle East

Qaddafi was overthrown and killed after giving up all his WMD, Iran could get bombed because it doesn’t have nuclear weapons yet, but a murderous tyrant like North Korean leader Kim Jong Un gets repeated one-on-one meetings with Trump, who claims that the two of them have fallen “in love.” If you were a senior Iranian strategist, what lesson would you draw from this pattern of behavior?

There’s a final option, however, and I think it’s actually the most likely. The maximum pressure campaign—including the threat of secondary sanctions against U.S. allies and partners—is intended simply to weaken Iran and reduce its influence within the region. In this scenario, all the talk of regime change and hints that “all options are on the table” are just palaver—or the kind of boastful swaggering that Pompeo seems to enjoy. One could acknowledge that pressure won’t alter Iran’s overall policies, won’t lead to regime change, won’t produce a better deal, and may not even push Tehran into leaving the NPT and opening the door to preventive war. All it might do is force Iran to cut back on its support for some of its local partners and thus crimp (though not eliminate) Iran’s regional influence.

There’s only two problems with it: It does heighten the risk of war, and it doesn’t point the way toward any long-term solution to regional instability

Despite the threat inflation that pervades the U.S. national security discourse, the current situation in the Middle East has at most a small direct effect on the security of Americans at home. (To the extent that it does, it is more likely to be the relatively modest danger posed by Sunni extremists like the Islamic State, and even that danger is far from existential.) In other words, it is hard to see how continuing to whack Iran at every turn does anything to make Americans safer or more prosperous

Given that America’s core interests are to help maintain a stable balance of power (so that no local or external power can control the region), discourage proliferation, and tamp down violent extremism, a more evenhanded policy would make sense. But I wouldn’t hold my breath waiting for it

Iran said earlier this month that it has connected its Financial Electronic Messaging System (SEPAM) to the financial messaging system developed by the the Bank of Russia, SPFS, and trade is increasing and expected to continue growing in the coming months.

But the economic capacity of Iran-Russia relations is limited and Moscow doesn’t want to jeopardize its interests in a confrontation between Iran and the United States. So, although launching a special financial channel could boost bilateral trade, the increase wouldn’t be all that significant. For Iran, the regional aspect of launching this channel is more important than its bilateral dimension.

the transport capacity between the Far East, India, Russia and Europe is 30 million tons of cargo, expandable to 100 million tons. Mohammad Eslami, Iranian minister of roads and urban development, emphasized Iran will increase its share of cargo transported between the East and West. One of Iran's options for achieving this goal is the INSTC. According to Eslami, Iran, Russia and Azerbaijan will launch their integrated transport system by the end of 2020

boosting trade and financial ties with Iran could help fulfill Russia's political goals of reducing US pressure on Iran, saving the Iran nuclear deal and maintaining long-term regional relations with Iran

Russia doesn’t want to lag behind its rivals in taking advantage of Iran's large market. Iran and China recently updated a 25-year, $400 billion economic agreement signed in 2016. Europe hopes to expand trade with Iran through INSTEX. If the European and Chinese plans are realized, Russia's access to the Iranian market will decline and Moscow’s political goals will be challenged.

There are also fears that the development, with its large-scale building work and dredging activities, will threaten irreparable damage to what is one of the world’s most pristine but vulnerable ecological regions.

with climate change and rising sea levels, there is a very real possibility that the majority of the island nation’s land area will be underwater by the end of the century

Abdulla Yameen, the current president – who has strongly denied allegations about government corruption made recently by the Qatar-based Al-Jazeera network - has stressed the need for economic growth and sees the giant Saudi investment as key to future prosperity.“We do not need cabinet meetings under water,” says the government. “We need development.”

The opposition says part of the rational behind the multi-billion dollar Saudi development could be a plan by Riyadh to establish a staging post and special economic zone, complete with port facilities, for oil and gas exports to Asia, particularly to China.

Islam in the Maldives has traditionally blended elements of Sufism and other religions; in recent years, a stricter form of Saudi-style "Wahhabism" has predominated. There are concerns that a number of people from the Maldives are believed to have joined the Islamic State (IS) group in Syria and Iraq.

The Saudis have pledged to build what they describe as 10 "world class" mosques in the archipelago and have donated $100,000 for scholarships to study in Saudi Arabia. 

In early 2016, the government in Male cut diplomat ties with Iran

The growing ties between Riyadh and Male have been causing some concern in the region, particularly in India.Last year the Binladin Group, the troubled Saudi construction conglomerate, was awarded – for an undisclosed sum – a contract to build a new international airport in the Maldives. A previous agreement with an Indian company to build the airport was terminated; it is likely the Maldives will have to pay millions of dollars in compensation. 

Analysts say the Asia trip is about extending Saudi influence and diversifying the Kingdom’s economy away from oil and gas and investing in the region.

This report draws on ACLED data to examine patterns of infighting and repression in Houthi-controlled Yemen from 2015 to the present. It shows that behind the purported projection of unity in the face of the ‘aggression,’ local struggles within the Houthi movement, and between the movement and the tribes, are widespread across the territories under Houthi control. This geographic diffusion, however, has not translated into a unitary front against the Houthis; it rather reflects localized resistance to Houthi domination and encroachment in tribal areas which has stood little chance against the Houthis’ machine of repression

Alongside the regular army, special military units and armed militias operate under the command of high-ranking Houthi officials, loyal tribal shaykhs, and other prominent figures capable of rallying support locally. While expected to show ideological commitment to the Houthi cause, local commanders also enjoy relative autonomy, operating as a network of militias that are involved in the extraction of levies and the recruitment of fighters in support of the war effort

Rival factions are reported to exist among senior Houthi officials competing over access to positions of power and control of rents. While these are rarely — if ever — acknowledged in public, concerns over balancing their relative influence on decision-making are said to determine the allocation of regime posts and resources

In 2020, more than 40 distinct battles between opposing Houthi forces were recorded in 11 governorates, compared to the 15 battles distributed across six governorates in 2018 and the 31 battles across seven governorates in 2019

a multitude of locally situated struggles among elements of the Houthi regime over land property, checkpoint control, and taxation

Since 2015, tribes have spearheaded the military campaign against the Houthis in several battlefronts across Yemen, although intermittent or inadequate support from the armed forces of the Yemeni government and the Saudi-led coalition has been a frequent cause of frustration. Over the past year, the Murad tribe mounted a fierce resistance against the Houthi offensive in Marib amidst a spectacular failure of the army to coordinate and lead the fighting (Nagi, 29 September 2020). Likewise, tribal fighters and shaykhs have been enlisted to join brigades associated with the government and the coalition, such as the powerful Second Giants Brigade deployed on the western front and dominated by the Al Subayha tribe (Al Masdar, 3 January 2021). Beyond mere fighting, tribal mediation has also succeeded in achieving several prison swaps between the government and the Houthis, often outperforming UN-brokered mediation efforts (Al Masdar, 9 December 2019; Al Dawsari, 10 November 2020).

violence targeting unarmed tribespeople and communal groups has substantially increased over the past two years, a reflection of growing Houthi repression.

the enforcement of norms deemed as illegitimate by the tribes, as well as the forceful arrest of tribespeople, has led locals to take up arms against the Houthis in several northern governorates

the destruction of a house represents a physical and symbolic humiliation, which can deprive a tribal shaykh of power and respect among his community and beyond. In February 2014, the Houthis blew up the house of the Al Ahmar family in Amran, a warning sign for other tribal shaykhs planning to oppose the Houthi advance in Hashid territory (Al-Dawsari, 17 February 2020). This event was not the last one, and the use of these tactics has in fact intensified throughout the war: data collected by ACLED reveal that the Houthis blew up, burnt, or shelled houses belonging to tribal, community, and party leaders in at least 51 districts across 17 governorates

The Houthis have responded to mounting tribal opposition with severe repression, resulting in higher levels of violence targeting civilians and breeding further anxiety among the tribes. 

While spared by the fragmentation and insurgencies that characterize much of southern Yemen (for more, see ACLED’s analysis series mapping little-known armed groups in Yemen, as well as our recent report on the wartime transformation of AQAP), infighting and repression constitute two major sources of instability in Houthi-controlled territories, and a potential challenge to the survival of the Houthi regime in the coming years.

History shows that when sponsoring a client dictatorship becomes a sacred pillar of Washington’s foreign policy, client rulers become extremely dependent upon U.S. support, prioritizing their relationship with Washington over their own people. In Jordan’s case, the government has preserved U.S. dominance in the Middle East and protected Israel while neglecting Jordanians’ own woes.

Policymakers fear that reducing any part of their support will destabilize their client state, which could not survive without it. The only option is to perpetuate the current system, even though that regime’s own policies are clearly destabilizing it.

Jordan’s transformation into a U.S. dependency began during the Cold War. Washington replaced the fading British in the late 1950s as its great protector, a logical move given the need to back anti-Soviet regimes everywhere. Jordan had no oil. However, so long as Jordan endured, it could be a geopolitical firebreak insulating Israel and the oil-rich Arabian Peninsula from the radical forces of communism and Arab nationalism.

Washington helped build the Jordanian state. Foreign aid was one mechanism. In many years, U.S. economic aid exceeded all domestic tax revenues, the only thing keeping “Fortress Jordan” from collapsing into insolvency. While Jordan today receives support from many donors, including the International Monetary Fund, U.S. economic support remains uniquely fungible: It comes mostly in cash, it is guaranteed, and it now exceeds $1 billion annually.

the U.S. Agency for International Development began designing and operating much of Jordan’s physical infrastructure in the 1960s, doing the basic task of governance—providing public goods to society—for the monarchy. When Jordanians get water from the tap, no small feat in the bone-dry country, it is because of USAID. Even the Aqaba Special Economic Zone, a mega-project aimed at turning the Red Sea port city of Aqaba into a regional commercial hub, was funded and designed by U.S. technocrats.

The General Intelligence Directorate, glorified by Western journalists as an Arab version of Mossad, spends as much time smothering Jordanian dissent as battling terrorism. It owes much of its skills and resources to the CIA.

Of course, being a U.S. protectorate brings occasional costs. Dependency upon Washington’s goodwill, for instance, gave Abdullah little room to halt the Trump administration’s “deal of the century.” That provocative plan to resolve the Israeli-Palestinian dilemma incensed Abdullah, as it favored Israel’s land claims while sidelining Jordan’s traditional front-line role as mediator to the conflict.

Washington cannot imagine any other kind of Jordan, because it never had to. It may yet learn the hard way.

The Middle East remains a revolutionary place, as six of its autocratic rulers have lost power to mass uprisings in the last decade. Whether Jordan is next depends upon if the monarchy can fundamentally rethink its approach, rather than fall back upon the United States for affirmation.

The third sector — the new rising stars of the defense industry — are led by the president's men. They and their companies are tied to Erdogan: Baykar Makina, owned by the family of Erdogan’s son-in-law, Selcuk Bayraktar; BMC, owned by the Ozturk family and Ethem Sancak, a member of Erdogan's Justice and Development Party (AKP) and its Executive Council; and the Tumosan unit of Albayrak Group.

BMC is the leading producer of buses, trucks, rail systems, Kirpi armored vehicles and Amazon mine-resistant ambush protected (MRAP) vehicles. The ambitious joint venture aspires to become Turkey’s monopoly over diesel engine production for land vehicles and jet engines. Sancak holds 25% of the venture's shares, the Ozturks hold 25.1%, and the remaining 49.9% is owned by the Qatar Armed Forces Industry Committee.

In 2018, BMC became Turkey's first private defense industry company to reach the Defense News “Top 100 List,” ranking No. 85, with $554.18 million in defense revenues.

In early 2019, Erdogan offered generous incentives to BMC, such as the opportunity to lease Turkey’s largest tank maintenance factory to produce the indigenous Altay main battle tank under a 25-year contract for only $50 million. This transfer of a tank factory in Sakarya province to BMC is still highly controversial in Turkey, with the main opposition party criticizing it at nationwide rallies because of transparency and accountability issues. Also, factory workers organized several protests against the decision.

a big cooperative deal in the defense industry helps strengthen Qatar’s ties with Turkey, guarantees Turkey's continued military-political shield against the Saudi-led bloc and blockade, and helps Doha diversify its defense sources.

BMC wants to penetrate jet engine production as well. After securing Erdogan's political backing, BMC’s TRMotor went to a joint venture with TAI to develop the jet engine for Turkey’s indigenous TFX aircraft project with the help of the UK’s Rolls-Royce. In March, however, Rolls-Royce​ announced it was withdrawing from TRMotor because of an irreconcilable difference over intellectual property caused by Qatar’s involvement with BMC.

BMC is trying to establish a monopoly in military diesel and jet engines, and also seeks to monopolize the raw material production field of boron mining it recently entered. 

Joint ventures are having a rough time. TSKGV, now under the jurisdiction of the presidential palace, is struggling to evade Erdogan’s attempts to take full charge. Meanwhile, Erdogan's favorites are rising quickly to the top.

Bowles did not create the “myth of Tangier,” but he gave it a literary respectability and an American cast.

In the early 1950s, Burroughs, Ginsberg, Kerouac, Bryon Gysin, Tennessee Williams, Truman Capote, and Susan Sontag all gravitated to this “portal to the unknown,” as one author christened Tangier. So did European writers like Genet, Juan Goytisolo, and Joe Orton, but Bowles’s influence was not limited to the literary community. In later decades, his recordings and promotion of Moroccan music would draw producers and recording artists from Patti Smith to the Rolling Stones.

Through the 1960s and 1970s, he focused instead on recording and translating from darija (Moroccan Arabic dialect) the oral histories of men he met in Tangier’s cafés. By the time of his death, in 1999, the idea of Tangier as a place for self-discovery had become received wisdom in the West and the Arab world, and Bowles was established as a giant of American letters despite decades of silence.

I gave him a copy of my thesis. He looked up from the title page: “‘Orientalism’?—that’s a bad word, isn’t it?” Faux-naïveté, I would learn, was part of his manner. He told me to come back the following day.

I was, he said, the first Moroccan researcher—a Tangier native, to boot—to defend him. He added his signature beneath my printed name. (A few weeks ago, I got goosebumps when I found the same copy that I gave him, albeit coffee-stained, in the archives at the University of Delaware’s Paul Bowles Collection.) Later, the thesis was included in a collection titled Writing Tangier (2004). I still see citations occasionally in student dissertations on Bowles noting that one Tanjawi, at least, did not regard him as an Orientalist.

Tangier’s collective memory is steeped in nostalgia and centered around the medina, the old city. The medina, the elders told us, was once the epicenter of the Islamic world: it was from the port where the medina meets the sea that Tariq ibn Ziyad had set sail and conquered Spain in 711. After the fall of Granada in 1492, it was to Tangier’s medina that the Jews and Moriscos fled, settling in its alleyways, preserving the mosaic of Islamic Spain

The economic misery and political repression of the 1980s and 1990s made it hard to believe that the medina was ever a free space. Most locals had never heard of these famous writers. I only heard of Bowles when, in 1988, a film crew began working in front of our family restaurant at the entrance to the Kasbah as Bernardo Bertolucci began filming The Sheltering Sky. As teenagers, we came to wonder what truths the books from the Interzone contained, and if Tangier had indeed been better-off under Western rule, as the nostalgists, local and foreign, seemed to imply

The narrative we learned at school was that the monarchy had liberated the north from colonial oppression. But what liberation did the regime (makhzen) bring? After independence, as a local intelligentsia began forming in Tangier, many came to see the American corpus of writings about 1950s Tangier as an invaluable record of a lost golden age.

I made a point of reading the American authors who had written about Tangier’s Interzone. Besides Bowles, I was intrigued by the Beats, especially the Columbia University alums—Kerouac, Ginsberg, Lucien Carr—students of Lionel Trilling and fans of Arthur Rimbaud who had somehow mapped Greenwich Village onto Tangier, turning the Boulevard Pasteur into a “North African Bleecker Street.” But even as a college sophomore, I realized that their writings were more about the straitjacket of McCarthyite America that they were running from, rather than about Morocco as such.

It was even gratifying to see that Tangier, like Berlin, had played a significant role in launching a gay literary movement—in some ways ahead of the West, in having its finger on the “prognostic pulse of the world,” as Burroughs called it. But what was startling was that, while these writers basked in the city’s pleasures, they—with the exception of the Bowleses—didn’t really like Tangier. The Beats had a casual disdain for the natives, invariably describing Moroccans as “rakish” or “raffish.” Capote found Tangier too alien, describing the men as “noisy heathens” and the women as “anonymous bundles of laundry.” He warned friends in New York about the “smell of the arabe.” Burroughs referred to the locals as a “bunch of Ay-rabs,” and in 1958 he pronounced: “Tanger [sic] is finished. The Arab dogs are among us.”

Paul Bowles traced the history of the medina from the early 1930s to independence. He chronicled how the sultan’s crackdown on Sufi practices (“the great puritanical purging”) in central Morocco inched northward.

Bowles’s defense of the Amazigh, or Berber, population was daringly transgressive. Morocco’s culture “is not predominantly Arabic, but Berber,” he insisted—in the face of Arab nationalists who acted as though they believed “Berbers have no culture at all,” as they tried to drag the country into the Arab League. “The general opinion is that the autochthonous population must at all costs be Arabized if it is to share in the benefits of independence,” he observed acidly. “No one seems to have conceived of the possibility of an independent Berber Morocco. In fact, to mention the Berbers at all qualifies one as a pro-French reactionary. At present, to become modern means to become Egyptian.”

Reading these words in my dorm room in wintry Pennsylvania in 1992 was both thrilling and frightening. We as Moroccans—especially those of us from the northern Berber region—grew up in a climate of fear, and I had never heard or read anyone publicly criticize Arab nationalism, or speak so openly of the Moroccan hinterland’s animus toward Fez, the city of the interior regarded as the seat of the regime. To hear this American writer openly excoriate the Moroccan ruling elite for its cruelty and skullduggery was exhilarating

Bowles prompted me to think beyond the binary of “Western” versus “Arab.”

Bowles, in the mid-1960s, had begun translating the memoirs and stories of down-and-out illiterate youth in Tangier. (While he could not read Arabic, Bowles did understand darija, the spoken dialect.) The most prominent of these were Larbi Layachi’s A Life Full of Holes (1966), about a petty thief and male prostitute and his experiences dodging police and servicing tourists (the book was made into a BBC film); Look and Move On (1967), the tales of Mohammed Mrabet, a hustler and golf caddie who worked for an American couple; and the best-known, Mohammed Choukri’s For Bread Alone (1972), an account of his migration from the Rif to Tangier, his life as a street kid in the International Zone, and his becoming a schoolteacher, which he recounted to Bowles in Spanish. These books were marketed in the West as “Moroccan literature,” and for many in the Anglophone world, this was their introduction to it.

The Ministry of Culture, which almost blocked his recording project in 1959, published a remarkable essay in 2009 on the tenth anniversary of his death defending Bowles against criticism from Moroccan nationalist intellectuals, underscoring how he presciently warned of the threats that modernization posed to Morocco’s cultural and physical landscape. Government mouthpieces such as Hespress run flattering pieces about “the American who loved Morocco.”

in effect erased an earlier literary tradition that had seen Moroccan writers published in French and Spanish since the 1930s, let alone the preceding centuries of poetry and other writing in Arabic

Laroui acted as an adviser to the king and was a strong proponent of Arabization. Tangierians saw his attack on Bowles as another attempt by the Arab nationalist elite to subdue the “sin city.” Ben Jelloun also had a complicated relationship to Tangier. The son of a merchant, a Fassi (a person from Fez) who settled in Tangier in the early 1960s, he had attended the French lycée and was seen as part of the new Francophone Fassi upper class—comprising the Alaoui, Alami, Ben Jelloun, Berrada, Omrani, and Tazi families—that had fanned out across the country as the French departed, assuming top government positions. Like Laroui, Ben Jelloun spoke neither of the two common local tongues of the north, Spanish and Tarifit (the Berber language). A paradox of Ben Jelloun’s work, in particular, was that it often featured the very tropes of mysticism, violence, and sexual deviancy he denounced in Bowles’s work. For his part, the American writer dismissed his Moroccan critics as “confirmed Marxists.”

The Moroccan reaction against Bowles began to take form in the early 1970s. His earliest critics were the philosopher Abdallah Laroui and Ben Jelloun, who both chided the American writer for promoting an image of the country as a land of primitivism, drugs, and unlimited sex. Laroui also lambasted the Moroccan bourgeoisie for buying into and reproducing Bowles’s “folkloric” portrayal of their country. Ben Jelloun, writing in 1972, accused the American of belittling the nation’s literary patrimony.

I myself was part of this trend—defending Bowles against the Arab nationalists who were trying to tear him down and impose their political preferences on us. In his final interviews, when asked if he was an “Orientalist,” Bowles would often cite me, noting that a Tangier-born scholar now in America had judged him not to be.

“Paul Bowles loves Morocco, but does not really like Moroccans.” Choukri had some powerful evidence on his side. Over the decades, Bowles had made countless derogatory remarks, speaking of Moroccans as “childlike,” “purely predatory,” and “essentially barbarous.” He claimed also that Muslims aimed for world domination through “the sword and the bomb.”

He was sympathetic to the Amazigh, whom he saw as the original inhabitants of North Africa, a fiercely independent people only “partially Islamicized.” This affection nevertheless rested on some unsettling ideas about racial hierarchy. Bowles was profoundly influenced by the “Hamitic hypothesis,” a late nineteenth-century anthropological theory that saw almost everything of value in Africa as imported by the Hamites, a branch of the Caucasian race, who were held as superior to the Negroid peoples. Berbers, whatever their actual skin tone—even the typically dark-skinned Tuareg—were for Bowles essentially a white “Mediterranean race.”

In Bowles’s idiosyncratic hierarchy, it was Berber music that encapsulated Morocco’s true African identity—and this cultural essence was threatened by the Arabs and their music. The recently released Music of Morocco collection reflects this bias, giving credence to Choukri’s claim that Bowles deliberately misrepresented local culture to reflect his personal vision of Morocco.

I began to realize that Bowles’s fondness for the Berbers and his animus toward Arabs was, in many ways, a reflection of French colonial policy. Although he was well aware of the violence of French imperialism, he enjoyed its amenities—“the old, easygoing, openly colonial life of Morocco”—and as early as the 1950s, Bowles began to lament the loss of “colonial Tangier.” Above all, he believed in the International Zone, seeing its “anarchy” and “freedom from bureaucratic intervention” as an extraordinary political experiment. But these liberties, which is what drew many of the Beats, were the privileges of Europeans and Americans—ones generally not enjoyed by the city’s Muslim and Jewish natives.

In 1972, Tahar Ben Jelloun publicly accused Bowles (and the Beats) of exploiting illiterate, vulnerable youths in Tangier not just artistically but sexually. Choukri in 1997 would echo this charge, claiming Bowles suffered from a sexual illness. These allegations became more commonly heard once Farrar, Straus and Giroux published Bowles’s correspondence in 1994, although he expressed some reluctance about its release. The volume included letters in which he described the boys he slept with, in one letter even bragging about how cheap sex was in Algeria. “Where in this country [America] can I have thirty-five or forty people, and never risk seeing any of them again? Yet, in Algeria, it actually was the mean rate.” (In the correspondence, he reminisced about how he “never had sexual relationships without paying,” and viewed paying for sex as a form of “ownership.”)

Although the letters simply lent credence to rumors long circulating in Tangier, Choukri and other Tanjawi writers were still shocked by them. The literary reaction in Morocco fed into a larger effort there by human rights activists campaigning against sex tourism and child prostitution. Whereas Bowles had always seemed more judicious and reputable than the Beats—in contrast, say, to Burroughs’s open bragging about buying “pre-pubescent gooks” and Ginsberg’s boasting about “paying young boys” for sex—it became increasingly difficult to defend him. For a man who had called Moroccans “purely predatory,” his own behavior now appeared in rather grotesque relief.

The more time I spent at the Schomburg Library uptown, the more I discovered an alternative American literature about Tangier. I stumbled upon Claude McKay’s memoir A Long Way from Home about his time in Tangier in the late 1920s, where he completed his novel Banjo; the actress Anita Reynold’s diary about life in the Interzone in the 1930s; Josephine Baker’s papers, where she talks about filming Princess Tam Tam (1935) in the International Zone, and jazz recordings produced by African-American musicians living in Tangier. Although they had their own dreams about a “Mother Africa,” the African-American writers did not see Tangier as a brothel, or its residents as primitives who needed to be contained or civilized. Most wrote and produced art in solidarity with the disenfranchised local population, connecting the civil rights struggle to North Africa’s anticolonial movements.

In 1998, armed with this newfound knowledge, and as a conscious revision of my earlier guiding, I began giving walking tours of “Black Tangier.” We would would meet at Cinema Mauritania, the theater where Josephine Baker had performed many times, up until her last show there in 1970. She had lived in the International Zone, then joined the French Liberation forces during the war, and later had an affair with the vice-caliph of Spanish Morocco. On the first floor of the Mauritania, pianist Randy Weston had once operated African Rhythms, a music spot that drew the likes of Max Roach and Ahmed Jamal. Then we’d walk down to the Fat Black Pussycat café where the poet Ted Joans, one of few black writers in the Beat movement, played trumpet and “blew” jazz poems.

Next, we’d hit Galerie Delacroix, where Joans once hosted a four-hour tribute to his mentor Langston Hughes, and had the late poet’s verse read in Arabic, English, French, and Spanish. (In 1927, Hughes had visited Tangier and written a lovely poem about travel and unrequited longing, “I Thought It was Tangiers I Wanted.”) Then we’d walk to the majestic Teatro Cervantes built in 1913, where Weston had organized the first pan-African jazz festival in Morocco in June 1972 (revived in 2002), which brought Dexter Gordon, Odetta, Billy Harper, and Pucho and the Latin Soul Brothers to the city. Our last stop was the Hotel Chellah, where, as local legend had it, the Martinican anticolonial thinker Frantz Fanon stayed overnight on July 3, 1959, following a car crash on the Morocco–Algeria border rumored to be the handiwork of La Main Rouge, the paramilitary group run by French intelligence to assassinate leading supporters of Algerian independence. Fanon was flown to Rome the following day on a Moroccan passport.

Paul Bowles and King Hassan II died in 1999, a few months apart. The novelist and the tyrant who had towered over Tangier for generations had more in common than either would have admitted—and that in part explains the reverence Bowles still enjoys in official Morocco

both shared a disdain for leftist, Third-Worldist politics. Both hated pan-Arabism, and loved Berber culture as long as it was “folkloric” and apolitical. They each thought Moroccans were congenitally ill-suited for democracy.

both Bowles and the monarch celebrated a “primitive,” mystical, unlettered, unfree Morocco, sharing a special appetite for the intoxicating rhythms of the Berbers. No wonder King Hassan II, who expelled numerous critics—from Arab intellectuals to French journalists and American professors—never bothered Bowles.

as long as America was seen as a political friend, Bowles was viewed favorably. Not surprisingly, after the Gulf war of 1990 and the release of Bertolucci’s film of The Sheltering Sky that same year, more articles started to appear across the Middle East critiquing Bowles’s representations of Morocco, accusing him of racism and Orientalism

The Morocco that Bowles dubbed a “land of magic” is one the Ministry of Tourism sells to the West

his emphasis on Morocco’s “African” essence suits the country’s recent geopolitical turn and reentry into the Africa Union

for all his misgivings about Western modernity, he thought Morocco as an African country would be better off attaching itself to the West. This is now the position of a significant segment of Morocco’s ruling elite.

That the regime celebrates Berber folklore and the oeuvre of a novelist who wanted an “independent Berber republic” even as it imprisons Berber activists across the country is evidence for many of the regime’s fraudulence and bad faith. In this respect, Bowles’s continuing eminence suggests how little has changed in the kingdom since the colonial era, with an authoritarian regime and repressive social order remaining largely intact.

As for Bowles’s work, I had come to realize that it reflected poorly on Morocco and America. Yes, he had brought attention to the suppression of Berber history and made invaluable musical recordings, but decolonization was supposed to dismantle colonial representations, and instead, the Moroccan regime was validating and institutionalizing Bowles’s depictions of Morocco

today, a new generation of Moroccan writers—among them secularists, Berber activists, music critics, and pan-Africanists—are claiming Bowles as an ally. And that is why I found myself writing about Bowles once more.