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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,”

The widely reproduced claim that 2 to 3 million people were driven into extreme poverty by the 2006–2009 drought was drawn, extraordinarily, from analyses by the United Nations Development Programme (UNDP) of pre-drought poverty levels.[4] The claim that around 1.5 million people were displaced was derived from a single humanitarian news bulletin, seemingly on the basis of a misreading of the UN’s estimate of those affected—not displaced—by the drought. Using Syrian government numbers, the UN actually reported drought-period displacement to be around 40,000–60,000 families.

A presidential decree in 2008, which tightened restrictions on land sales across the northeastern-most province of Hasakah, led to the extensive loss of land rights and was credited by some organizations as a key factor in the increased migration from northeast Syria prior to the war

during 2008–2009 rural Syria was hit by triple-digit increases in the prices of key agricultural inputs. In May 2008 fuel subsidies were halved, leading to an overnight 342 percent spike in the price of diesel. And then in May 2009 fertilizer subsidies were removed, causing prices to rise anywhere from 200 to 450 percent. The fuel subsidy cuts had particularly devastating economic consequences, especially for farmers reliant on cheap fuel for groundwater irrigation.

The fact that a number of neighboring countries experienced equivalent precipitation declines during 2006–2009—or in Iraq’s case an even larger decline—but no comparable migration crises, suggests at the very least that the migration from Syria’s northeast must have been caused more by these Syria-specific factors than by the drought.

Proponents of the climate conflict thesis typically claim that drought-induced displacement caused a “population shock” within Syria’s urban peripheries, exacerbating pre-existing socio-economic pressures. Yet Syria’s cities grew rapidly throughout the decade before the civil war, not only during the drought years. By our calculations, excess migration from the northeast during 2008–2009 amounted to just 4–12 percent of Syria’s 2003–2010 urban growth (and this excess migration was not all triggered by drought)

As Syria’s pre-eminent breadbasket region—the heartland of strategic crop production—Hasakah was particularly vulnerable to economic liberalization and the withdrawal of input supports. No other region of the country was so dependent on groundwater for irrigation, a factor that made it particularly vulnerable to fuel price increases. Hasakah’s groundwater resources were also exceptionally degraded, even by Syrian standards

a deep and long-term structural agrarian crisis

it is evident that northeastern Syria’s agrarian troubles—and especially those in the province of Hasakah—went all the way back to 2000, and indeed earlier. Production of the two main government-designated strategic crops, wheat and cotton, was in decline in Hasakah from the early 2000s onward. Land and settlements were being abandoned there well before the drought. Net out-migration from Hasakah during this period was higher than from any other province. And the reasons for this lay not in the drought but in the contradictions of Syrian development.

an agrarian socialist development program, promoting rapid expansion of the country’s agricultural sector and deploying Soviet aid and oil income to this end. Among other elements, this program involved heavy investment in agricultural and especially water supply infrastructure, low interest loans for private well drilling, price controls on strategic crops at well above international market value, the annual wiping clean of state farm losses and, as already indicated, generous input subsidies

Environmentally, the model relied above all on the super-exploitation of water resources, especially groundwater—a problem which by the early 2000s had become critical. And economically, Syrian agriculture had become highly input dependent, reliant on continuing fuel subsidies in particular.

Within just a few short years, Syria embraced principles of economic liberalization, privatized state farms, liberalized trade and reduced price control levels. At the same time domestic oil production and exports fell rapidly, thus undermining the regime’s rentier foundations and its capacity to subsidize agriculture

Irrespective of any drought impacts, these developments essentially occurred when the props that had until then artificially maintained an over-extended agricultural production system—oil export rents, a pro-agrarian ideology and their associated price controls—were suddenly and decisively removed.

as Marwa Daoudy concludes in her new book on the subject, there is “little evidence” that “climate change in Syria sparked popular revolt in 2011”—but “a lot of evidence” that “suggests it did not.”

The region was also deeply affected by intense irrigation development and over-abstraction of groundwater resources within Turkey

It was Ba’athist state policies which had turned Hasakah into a region of wheat monoculture, failed to promote economic diversification and facilitated cultivation ever deeper into the badiya (the desert) while over-exploiting surface and groundwater resources. Moreover, these measures were taken partly for strategic and geostrategic reasons, bound up with regime interests in expanding and consolidating Hasakah’s Arab population (its project of Arabization), in controlling and excluding the province’s Kurdish population and in extending its control and presence within a strategically sensitive borderland and frontier region. During the heyday of Ba’athist agrarian development, Hasakah’s population and agricultural sector expanded like in no other area. With the collapse of this development model, rural crisis and out-migration were the inevitable result.

After an initial reluctance to acknowledge the depth of the crisis in the northeast, the government eventually embraced the climate crisis narrative with gusto. The drought was “beyond our powers,” claimed Asad. The drought was “beyond our capacity as a country to deal with,” claimed the Minister of Agriculture. “Syria could have achieved [its] goals pertaining to unemployment, poverty and growth if it was not for the drought,” proclaimed Deputy Prime Minister Abdullah al-Dardari.[12] Indeed, as the International Crisis Group reported, the Asad regime would regularly take diplomats to the northeast and tell them, “it all has to do with global warming,” blaming what was in essence a state-induced socio-ecological crisis on climatic transformations beyond its control.[13] This shifting of blame is essentially how the Syria climate crisis narrative began.

Official UN reports on the crisis in the northeast, which were produced in collaboration with the Syrian regime, were predictably drought-centric, barely mentioning any factors other than drought, omitting any criticisms of government policy and ignoring the existence of a discriminated-against Kurdish minority

International media reports on the subject were similarly focused on  drought, no doubt partly because of media preferences for simplified and striking narratives, but also because they relied upon UN sources and took these at their word

The climate crisis narrative reached its apogee in 2015, in the run-up to the UN Paris conference on climate change, when countless politicians and commentators turned to the example of Syria to illustrate the urgency of international action to limit greenhouse gas emissions.

regurgitated as a statement of fact in the scientific journal Proceedings of the National Academy of Sciences and by Western liberal politicians and eco-socialist campaigners alike

climate change is also much more than a physical reality and looming environmental threat: It is simultaneously an object of discourse, debate and rhetoric, a potent meta-narrative that can be invoked for explanation, legitimation, blame avoidance and enrichment.

climate change is already regularly invoked to questionable ends across the Middle East and North Africa. It is used to explain away ecological catastrophes actually caused by unsustainable agricultural expansion, to make the case for investment in new and often unnecessary mega-projects, to obscure state mismanagement of local environmental resources and to argue against the redistribution of such resources to oppressed and minority groups

blaming climate change is often a distraction from the real causes of socio-ecological crisis

Politics might affect the relationship between food prices and protest through two channels. The first is the extent to which governments shield urban consumers from high global prices. Governments in developing countries often subsidize food purchases, especially those of urban dwellers, shifting welfare from rural producers to urban consumers. But this observation raises the second-order question of the conditions under which governments will subsidize urban consumers. We hypothesized that autocratic governments were more likely to shield urban consumers. While urban dwellers can riot in the absence of elections, rural dwellers have fewer channels through which they can voice grievances.

democracies and anocracies did enact more pro-rural food policy. In particular, democracies in Africa and Asia enact policies that favor urban areas less and rural areas more. These take the form of enhancing farmer incomes and raising consumer prices, which often causes protests and rioting. Lessening urban bias in food policy may be good pro-poor policy, given the continued concentration of poverty in rural areas, but it carries political risks.

the Arab Spring reflects some of the risks autocratic leaders face when attempting to insulate urban consumers from global market prices. Consumer subsidies have long been part of the “authoritarian bargain” between the state and citizens in the Middle East and North Africa, and attempts to withdraw them have been met with protest before: Egypt’s bread intifada, which erupted over an attempt to reform food subsidies, killed 800 in 1977. These subsidies explicitly encouraged citizens across the region to evaluate their governments’ effectiveness in terms of their ability to maintain low consumer prices — prices that, given these countries’ dependence on food imports, those governments ultimately could not control

Our findings point to the difficult tradeoffs facing governments in developing countries as they attempt to pursue two different definitions of food security simultaneously: food security as an element of human security, and food security as a means of ensuring government survival and quelling urban unrest. These tradeoffs appear to be particularly acute for developing democracies.

Only half of 1 percent of the world’s water supply is fresh water in liquid form. The rest is saltwater or frozen into glaciers.

its biggest use, globally, is for food production

“It’s much more useful and easier to live with if the water all comes regularly and without these extremes. But more and more, that’s not the case.”

If surface water is in short supply, people often turn to groundwater, which can be rapidly depleted. In India, nearly 60 percent of the population makes a living from farming. For decades, the government supported farmers by subsidizing the cost of diesel to run water pumps and tractors and by purchasing wheat and rice at an artificially high price. Water demand to irrigate rice and wheat fields is contributing to groundwater depletion in the northern region of Punjab.

“More people demand more water, but also each person demands more water as they get wealthier,” Iceland said. “So as you get wealthier, you move from a more grain and vegetable-oriented diet to a more meat-oriented diet.”

Growing and feeding a cow to create one pound of beef requires as much as 1,800 gallons of water, by some estimates. Calorie-for-calorie, that’s almost eight times as much water as vegetables and 20 times as much water as cereals like wheat and corn.

Water-intensive crops like sugar cane and cotton could also drive demand in sub-Saharan Africa, where water use is expected to double over the next 20 years. Many areas still lack infrastructure to reliably deliver water for irrigation. As those pipelines are built, more farmers will have access to water, which will further strain surface water supplies. Inefficient water use and unsustainable management could lower gross domestic product in the region by 6 percent, according to WRI.

One Saudi company is growing alfalfa in the Arizona desert, pulling from the area’s groundwater supplies. That alfalfa is then shipped overseas to feed cattle in Saudi Arabia, where industrial-scale farming of forage crops has been banned to conserve the nation’s water.

Water is also integral to mining lithium and other minerals used in electric vehicle batteries and renewable energy infrastructure. These critical minerals are often found in arid places like Chile, which is already water-stressed and is projected to use 20 percent more water by 2050, according to WRI.

Since farming accounts for the most water use globally, experts say that micro-sprinklers and drip irrigation instead of flood irrigation are an important solution.

reducing meat and dairy consumption can decrease individual water footprints. Reducing food waste could also help reduce water use. In the United States, more than a third of food ends up in the landfill. The biggest single contributor to food waste is throwing away food at home.

government mishandling could be exploited by those who seek to use the street rather than the ballot box as the means towards addressing their political grievances

if this is indeed a more significant challenge to the entire system will become clearer this Friday when protests are sure to erupt in earnest

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.

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

Revenues from tourism — one of Egypt's biggest money makers and job sources — fell 30 percent to $9 billion in 2011 and foreign investment has largely dried up. That has forced the country to seek billions of dollars in assistance from the International Monetary Fund and raised the possibility of a cut in subsidies that keep commodities like fuel and bread cheap for a population of about 82 million, 40 percent of whom live near or below the poverty line.

Chinese companies also import Egyptian oil products and raw materials such as cotton, while exporting automobiles, electronics and other finished goods.

Morsi is to leave Beijing on Thursday to attend the world gathering of self-described nonaligned nations in Iran, the first visit to that country by an Egyptian head of state since relations between them were severed in 1979.

oil output is likely to fall by 15% and exports by as much as 25%

After crushing its reformist opponents, his conservative faction has broken out in increasingly rancorous internal wrangling. The biggest looming issue is Mr Ahmadinejad’s plan to slash consumer subsidies that cost his government $70 billion-100 billion a year, a quarter of GDP. Already lumbered with feeble economic growth and high unemployment, Iranians now face the prospect of sharp rises in prices of food, fuel and transport. The coming winter looks set to be harsh.

Saudi Arabia funds the government as well as tribal leaders to secure support for Saudi policies and prevent the emergence of a non-tribal, non-sectarian democratic culture. Yet although Saleh worked hard at building a close relationship with Riyadh, he and other Yemenis were still treated with disdain by the Saudi princes, often denied meetings with the recently deceased Abdullah for receptions with his crown prince Sultan, who handled the “Yemen file”.

It is an anomaly of the Tunisian political scene that the UGTT’s anti-austerity position has little representation among elected politicians: the largest political groups (the Islamist Ennahda party and various offshoots of the secular-modernist Nidaa Tounes party) have backed the IMF agreement

unemployment and the proliferation of grey-sector jobs are linked to structural biases in the economy that systematically favour a small group of politically connected businesses. Measures that might address this problem include increasing access to credit for would-be entrepreneurs, changing regulations and practices within the public and banking sectors that are tilted to a narrow elite, and reducing corruption. According to Tunisians, corruption has not been reduced but only “democratised” since the revolution. Investment in infrastructure serving disadvantaged parts of the country could also help spur more inclusive growth

Since the revolution, the overarching priority of political life in Tunisia has been to seek enough stability to preserve and complete the political transition. Much has been achieved, though a few important steps (notably the establishment of a Constitutional Court) remain unfulfilled. But Tunisia has now reached a point where the greatest threat to stability is no longer political rivalries around religious identity but unmet social and economic aspirations. Until now, the country’s political parties have not organised themselves to offer distinctive and coherent visions of how Tunisia’s socio-economic development can be improved, and they are paying the price in public alienation from the entire political system

when he talks he talks the language of the street and the street listens to him. That's Sisi's problem.  

Sisi  was a "failed man", a "disgrace", a "midget" who uses make up and hitches his trousers up too high, Ali told Egypt. Sisi was a con man who lectured you on the need to tighten your belt while building palaces for his wife Intissar.

Ali listed them: a luxury house in Hilmiya ($6m), a presidential residence in Alexandria ($15m), a palace in the new administrative capital, and another one in the new Alamein city west of Alexandria.

A report published by the World Bank in April calculated that "some 60 percent of Egypt’s population is either poor or vulnerable". 

"Now you say we are very poor, we must be hungry. Do you get hungry? You spend billions that are spilt on the ground. Your men squander millions. I am not telling a secret. You are a bunch of thieves."

Every Egyptian remembers the lectures Sisi gave them on the need to tighten their belts. When the IMF forced the state to reduce subsidies, Sisi’s response was: "I know that the Egyptian people can endure more... We must do it. And you’ll have to pay; you’ll have to pay," Sisi said in one unscripted rant a year into his presidency.

Most Egyptians have seen their real incomes fall, while Egypt under its IMF-backed austerity programme is racking up huge foreign debts. It was $43bn during Morsi’s presidency. It is $106bn now. Seventy per cent of taxes now goes into paying these debts off. Internal debt is over 5 trillion Egyptian pounds ($306bn).

Ali’s YouTube channel has done more in three weeks to destroy Sisi’s image than the Brotherhood, liberals and leftists, now all crushed as active political forces in Egypt, have done in six years of political protest. 

To their credit the opposition did not crumble, paying for their stand with their lives and their freedom. To their shame the Egyptian people did not listen.

Sisi thinks he can ride this out, as he has done challenges in the past. Hundreds of protesters have been arrested since last Friday.

The initial demonstration in Tahrir Square in January 2011 was smaller than the ones that broke out in Cairo, Suez and Alexandria last Friday. They called for reform, not the overthrow of Hosni Mubarak. Last Friday, Sisi’s portrait was torn down. “Say it, don’t be afraid, Sisi has to leave!” they shouted on day one of this fresh revolt. 

the "opposition" is everybody - ordinary Egyptians, disaffected junior ranks in the army, Mubarak era businessmen. This is a wide coalition of forces. Once again Egypt has been reunited by a tyrant

unlike 2013, Sisi’s bankers  - Saudi Arabia and the UAE - have run out of cash for Egypt. Today each has its own problems and foreign interventions which are all turning sour - Yemen and Libya.

The steam is running out of the counter-revolution.

popular protest is re-emerging as a driver for change across the region. We have seen it topple dictators in Sudan and Algeria. Both have learned the lessons of failed coups in the past and have so far managed the transition without surrendering the fruits of revolution to the army. This, too, has an effect on events in Egypt.

Biden evidently has calculated that the prospects for meaningful progress during his term of office toward anything that could legitimately be considered an Israel-Palestinian peace are dim enough for the necessarily large expenditure of political capital not to be worthwhile. It probably is unrealistic to expect Biden to make a major recalculation about this.

The Overton Window of acceptable American discourse about Israel has shifted, and shifted in a positive direction.

When Netanyahu and other leaders on the Israeli right — which now includes most of the Israeli political spectrum — say anything about a two-state solution, it has been to hold out a false promise and to keep would-be mediators and negotiators occupied while Israeli actions on the ground push such a solution ever further out of reach.

The administration does not need to spin reality. It is quite obvious that Palestinians and Israelis have grossly unequal degrees of freedom, prosperity, and democracy. With open and honest acknowledgement of those realities, and sufficient attention given to them, the president can have a beneficial effect on American discourse on the subject even without spending a lot of political capital on any new Middle East initiative. In so doing, he can increase the chance that at least under a future president, U.S. policies will change in ways that in turn elicit a change in Israeli policy that will make future wars in Gaza less likely.

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.

Sudan wasn’t following the script of Bahrain, where the demonstrators dispersed after a single crackdown, or Egypt, where the army took control through co-option and repression.

A major split between Saudi Arabia and the UAE was on show in July when the latter abruptly withdrew most of its forces from Yemen. No official explanation was given, but the decision was evidently not coordinated with Saudi Arabia, which remains bogged down in an intractable war. The UAE’s decision also shows it can be mercurial and that its policies towards the Horn of Africa may be less strategic and more opportunistic than commentators have assumed.

Egypt prides itself on understanding Sudan and sees Saudi Arabia and UAE as newcomers seeking influence solely by dispensing money. Egypt limited its demands on Sudan to handing over Egyptian Islamists in exile, suspending the deal for Turkey to develop a naval base, and ceding its territorial claim to the Halaib Triangle.

As Arab countries find themselves pulled in to the internal negotiations among the Sudanese, they will face another potential point of contention. Sudan doesn’t just need democracy, but peace. This means a role for the Islamists both in Khartoum and the provinces. For a decade, the custodian of the Darfur peace process has been Qatar, the troika’s arch rival, and it will be impossible to ignore Qatar’s role or that of Sudan’s diverse constituency of Islamists. Some of these dynamics are already playing out and reveal the lack of a common strategy among the Arab troika

After the secession of South Sudan in 2011, Sudan lost 75% of its oilfields and an even greater proportion of its hard currency earnings. The following year, it literally struck gold and within a few years, gold was providing 40% of Sudan’s exports. As much as a third of it, however, came to be smuggled to Libya, Chad or directly by plane to the region’s biggest gold market in Dubai. The government in Khartoum, desperate to control the commodity, responded by using the Central Bank of Sudan as its sole buying agent, paying above the market price to gold traders and printing money to cover this outlay. Buying gold to convert to hard currency became the engine of Sudan’s inflation, which skyrocketed. By 2018, the price of essential commodities such as bread and fuel was so high relative to stagnant wages that the people across the country took to the streets to protest.

Hemedti. His RSF militia controls the gold mines and he personally owns a number of concessions. Through Sudan’s monetary policy, vast resources were transferred from wage earners in the centre of the country to militiamen and gold traders in the peripheries

Hemedti has also benefited massively from providing mercenaries, which may be Sudan’s second biggest source of foreign exchange today. A few months after the Saudis launched their war in Yemen in March 2015, Sudan volunteered to send troops. The first contingent was a battalion of the regular army, but then Hemedti struck a parallel deal to dispatch several brigades of RSF fighters. Within a year, the RSF comprised by far the biggest foreign contingent fighting in Yemen with at least 7,000 militiamen. Hemedti was paid directly by Saudi Arabia and the UAE for this service. He says he deposited $350 million in the Central Bank, but has not said how much he kept to himself for his own enrichment or political spending.

the Central Bank of Sudan has become an instrument for Hemedti’s political finance. And since becoming the central actor in Sudan’s ruling cabal in April, he has exerted an even tighter grip on gold production and exports while moving aggressively into other commercial areas. He has increased the RSF’s deployment in Yemen and sent a brigade to fight in Libya alongside General Khalifa Haftar, who is backed by Egypt and the UAE, almost certainly in return for Emirati financial rewards. Hemedti is also expanding his family business conglomerate, the Al-Junaid companies, and running his political business on the basis of personally handing out cash to key constituents such as tribal chiefs, the police, and electricity workers.

none of this addresses Sudan’s macroeconomic crisis: its rampant inflation, rapidly increasing arrears on international debt, and ostracism from the dollar-based international financial system

Sudan’s Gulf patrons are bailing out the country with a $200 million monthly subsidy in cash and commodities, but the bailout amounts needed will quickly become too big even for the oil-rich Gulf States’ deep pockets

a clash between Hemedti’s political market logic and Sudan’s macroeconomy is looming.  The Sudanese technocrats associated with the FFC are well aware of this, which is why the economists called upon to put themselves forward for cabinet positions have been reluctant to agree. There is a race between Hemedti’s consolidation of power and a re-run of the economic crisis and protests that led to al-Bashir’s downfall.

as Sudan’s economic crisis deepens, they will have to turn to the IMF and western creditors for assistance

Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed

In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.

When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.

The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible

fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008

In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.

In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices

A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both

For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.

The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.

For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide

cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.

the myth of authoritarian stability

A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region

What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]

From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.

profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.

While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.

Leaks reveal insiders’ growing uneasiness, which points to the elephant-in-the-room question: Will MBS’ grandiose venture bankrupt the kingdom?

Saudi private investors will also be encouraged to pitch in during a potential public listing of Neom in 2024. That raises questions about how consensual this private investment will be. Indeed, Saudi Arabia reportedly “bullied” several of the kingdom’s wealthiest families to become cornerstone investors out of “patriotic duty” in the IPO of Saudi energy firm Aramco in 2019.

a large chunk of Saudi money carefully set aside for decades to fund the transition to a post-oil era will pay for Neom's astronomical price tag. A bet on an unproven vision

“Infrastructure spending is like doing lines of cocaine; you have to do bigger and bigger and bigger lines just to feel high,”

Neom’s initial burst of economic activity, if unsustainable at a similar pace, would simply be "stealing" future economic benefits to create an illusion of growth right now

perhaps the motive is not sustainable growth at all, but creating what Pettis calls a "pyramid effect." This would be an attempt to copy monarchs of ancient Egypt who redistributed wealth to the population through jobs – paid laborers built Egyptian pyramids, not slaves. Although Saudi Arabia’s oil wealth is already redistributed to ordinary Saudis through public-sector jobs and subsidies, a large tranche is retained and stored in its sovereign wealth funds and U.S. Treasuries. In theory, flushing Saudi citizens with cash would stimulate the local non-oil economy. But in practice, the pyramid effect is likely to first and foremost cause economic leakages, as the kingdom imports most of what it consumes locally, including labor, despite the “Saudification” of the labor market being one of Vision 2030’s key priorities. Migrant workers account for about 77 percent of private sector jobs. At Neom, highly paid Western consultants are toiling to match MBS’ demands, and Asian low-income workers are building it, remitting Saudi money home.

Riyadh sweetened the project’s launch party with a flurry of social reforms, such as lifting the ban on women driving. (Saudi Arabia was the last country in the world to lift this kind of ban, and it didn’t do so as a principled stand on behalf of women’s rights.) The idea was not only creating a buzz among investors and the global public, but whipping up aspirational momentum among Saudis.

60 skyscrapers that were built in Riyadh’s financial center are still standing largely empty.

MBS, high on his visionary self-branding and his concentration of power, may have to pay the costs of bankruptcy – whether by admitting full responsibility or via a renewed deployment of decidedly imperious and despotic tactics to crush dissent. The latter path is, of course, what the late Shah of Iran chose, with notorious results.