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As the double whammy of the pandemic and the collapse in oil prices slams Middle Eastern economies, the International Monetary Fund (IMF) and the World Bank are already providing several Arab governments with billions of dollars in emergency financing and anticipate requests from others. Many Arab states are especially vulnerable to such external shocks because of long-standing economic mismanagement, often exacerbated by exorbitant military spending.

The Stockholm International Peace Research Institute (SIPRI) laments that many Arab governments lack any semblance of transparency in their military budgets, making it impossible to know or even estimate the region’s defense expenditures. Among other problems, this opacity makes it difficult for international financial institutions (IFIs) to factor Arab defense budgets into the requirements for adjusting public spending that normally accompany their support.

only four Arab countries—Jordan, Kuwait, Morocco, and Tunisia—have made all of their military spending data public over the past five years. While it is expected that war-ravaged countries such as Yemen or Libya would have trouble producing a full accounting, other states have the capacity but simply choose not to release the information.

The paralysis of the Iraqi economy, the sharp decline in oil prices, the unlimited spending on the war against IS, in addition to the absence of strategic planning and the rampant financial and administrative corruption since 2003, has left the Iraqi treasury nearly empty. The county, officials say, has poverty levels that are unseen since a poverty reduction plan was put in place five years ago

On a weekly basis, demonstrators have protested to highlight not only the serious lack of the basic services in the country, but also the financial and administrative corruption widespread across government departments and ministries which they believe has caused the problems.

The impact of the oil prices' falling will affect the 2016 annual budget and the government plans to cover the country’s operational budget only, stopping all investments and spending on infrastructure projects

The bill, however, gives the Secretary of State the right to waive any of the aforementioned requirements, if doing so was deemed "important to the national security interest of the United States."

In Power’s Pulitzer Prize-winning A Problem from Hell, American force is one of many foreign policy tools that can and should be bent toward civilian protection and atrocity prevention globally; for many of her critics from the left, American force is to be dismantled; for many of her critics from the right, American force should serve core national security interests and nothing more.

In A Problem from Hell, Power argues that US policymakers did not act to stop genocide because they did not want to; in her memoir, she relates how a room full of civil servants whose thinking had been shaped by her first book found themselves in a years-long limbo over complex human disasters in Syria and Libya. Together, these cases constitute a real-time test of the “toolbox” of interventions Power first proposed at the end of A Problem from Hell; together, they reveal both the problem at the heart of her theory of foreign policy, and the still all-too-slender slate of effective policy alternatives to force across the political spectrum.

Libya and Syria serve as parallel cases through which questions about the US’s role in the world are refracted. The standard narrative is as follows: the US intervened in Libya under the guise of preventing mass atrocities, this intervention ended first in regime change and then in a failed state, and Libyans now live in enduring danger; the US did not intervene to protect civilians during the Syrian Civil War, war snarled the full region into conflict, and today Syrian civilians continue to die in unspeakable ways and uncounted numbers. At each stage, the narrative is in fact more complicated, particularly if we begin by asking whether the US did in fact prevent mass atrocity in Libya and end by noting the U.S. did in fact intervene in Syria in multiple ways, but the broad lines are still instructive for understanding public debate. Would Libyans have been better off in the absence of an American-led intervention, or would they have been worse off? Would Syrians have been better off for U.S. intervention, or would they have been worse off for it?

Prime Minister Abdul-Mahdi has announced he will resign, and Sweden has opened an investigation against Iraqi Defense Minister Najah Al-Shammari, who is a Swedish citizen, for crimes against humanity.

Out of 198 contracts reviewed by the inspector general, only 44 had documentation to confirm the work was done.

while Iran has gained enormous influence and is one of the targets of the protests, most of the people ruling Iraq today are still the former exiles that the US flew in with its occupation forces in 2003, “coming to Iraq with empty pockets to fill” as a taxi-driver in Baghdad told a Western reporter at the time.

Peak demand for oil may still be years away, but covid-19 has given the Middle East and north Africa a taste of the future. Prices of the black stuff plummeted as countries went into lockdown. The region’s energy exporters are expected to earn about half as much oil revenue this year as they did in 2019; the IMF reckons their economies will shrink by 7.3%. Even when the virus recedes, a glut of supply will probably keep prices down. Faced with budgets that no longer add up, Arab states must adapt.

in May the Algerian government said it would cut its budget by half. Things are no better in Iraq, a big oil exporter, which is nearly broke. Even stable producers such as Oman and Kuwait are living beyond their means. Saudi Arabia, the world’s biggest oil exporter, has been burning through its cash reserves for months. Money that was meant to smooth the kingdom’s transition to a less oily economy is now propping up the old petrostate.

Egypt exports little oil, but over 2.5m of its citizens work in oil-rich countries. Remittances are worth 9% of its GDP. As oil revenues fall and some of those jobs disappear, Egypt will suffer, too. The same is true of Jordan, Lebanon and the Palestinian territories, which have long relied on the Gulf to absorb their jobless masses.

People in the West tend to think about oil shocks from the perspective of the consumer. They notice when prices go up. The price spikes in 1973 and 1979 triggered by boycotts by oil producers are etched in their collective consciousness, as price controls left Americans lining up for gas and European governments imposed weekend driving bans. This was more than an economic shock. The balance of power in the world economy seemed to be shifting from the developed to the developing world.

If a surge in fossil fuel prices rearranges the world economy, the effect also operates in reverse. For the vast majority of countries in the world, the decline in oil prices is a boon. Among emerging markets, Indonesia, Philippines, India, Argentina, Turkey, and South Africa all benefit, as imported fuel is a big part of their import bill. Cheaper energy will cushion the pain of the COVID-19 recession. But at the same time, and by the same token, plunging oil prices deliver a concentrated and devastating shock to the producers. By comparison with the diffuse benefit enjoyed by consumers, the producers suffer immediate immiseration.

In inflation-adjusted terms, oil prices are similar to those last seen in the 1950s, when the Persian Gulf states were little more than clients of the oil majors, the United States and the British Empire

article has been updated to reflect new developments. It was first published on Jan. 31, 2011

How much does the U.S. spend on Egypt? Egypt gets the most U.S. foreign aid of any country except for Israel. (This doesn't include the money [3] spent on the Iraq and Afghanistan wars.) The exact amount varies from year to year and there are many different funding streams, but U.S. foreign assistance to Egypt has averaged about $2 billion a year since 1979

military funding also enables Egypt to purchase U.S.-manufactured military goods and services

In February, OPEC called for an oil production “freeze” to raise crude prices in conjunction with Russia. But this effort collapsed at a meeting in Doha, Qatar, in April when Iran refused to join any freeze in order to regain the pre-2012 production levels of close to 4 mbpd it enjoyed before U.S. and European Union nuclear sanctions were imposed, following the removal of certain sanctions after the 2015 nuclear deal. A similar proposal failed at the OPEC meeting in June, again following Iran’s refusal, despite outreach by the Qataris.

OPEC again called for a form of output cut on Sept. 28 at an extraordinary meeting in Algiers. Markets bit on the news, with Brent prices rising sharply by about 15 percent in the following week, from $46 to $52 per barrel.

Can action by the cartel sustain higher crude prices over the long term? Probably not. Like a desert mirage, the image of an OPEC resurrection vanishes when approached.

In all, Overton found, the Pentagon provided more than 1.45 million firearms to various security forces in Afghanistan and Iraq, including more than 978,000 assault rifles, 266,000 pistols and almost 112,000 machine guns. These transfers formed a collage of firearms of mixed vintage and type: Kalashnikov assault rifles left over from the Cold War; recently manufactured NATO-standard M16s and M4s from American factories; machine guns of Russian and Western lineage; and sniper rifles, shotguns and pistols of varied provenance and caliber, including a large order of Glock semiautomatic pistols, a type of weapon also regularly offered for sale online in Iraq. Advertisement Continue reading the main story Many of the recipients of these weapons became brave and important battlefield allies. But many more did not. Taken together, the weapons were part of a vast and sometimes minimally supervised flow of arms from a superpower to armies and militias often compromised by poor training, desertion, corruption and patterns of human rights abuses. Knowing what we know about many of these forces, it would have been remarkable for them to retain custody of many of their weapons. It is not surprising that they did not.

the Pentagon said it has records for fewer than half the number of firearms in the researchers’ count — about 700,000 in all

Overton’s analysis also does not account for many weapons issued by the American military to local forces by other means, including the reissue of captured weapons, which was a common and largely undocumented practice.

a series of arms deals signed by Egypt that raised quite a few eyebrows in Israel. “They bought four German submarines and two French helicopter carriers for a small fortune,” another Israeli security source told Al-Monitor on condition of anonymity. “This comes in addition to huge deals with the Russians and the Chinese to purchase numerous fighter jets.”

“We hope that Sisi knows what he's doing,” the latter source said, “because we don’t really understand it.”

The Egyptians are hoping to receive “aerial coverage” from Israel, i.e., lobbying assistance on Egypt’s behalf, which has in the recent past come to Cairo’s aid in Washington on more than one occasion.

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

UNESCO has suspended the voting rights of the United States, two years after it stopped paying dues to the UN's cultural arm in protest over its granting full membership to the Palestinians, according to a UNESCO source. The US has not paid its dues to UNESCO due to the decision by world governments to make Palestine a UNESCO member in 2011. Israel suspended its dues at the same time and also lost voting rights on Friday.

The US decision of not paying UNESCO was blamed on US laws that prohibit funding to any United Nations agency that implies recognition of Palestinian demands for their own state.

The withdrawal of US funding, which to date amounts to about $240m or some 22 percent of UNESCO's budget, has plunged the organisation into a financial crisis, forcing it to cut programmes and slash spending.

while Lebanese politicians talk about strengthening the LAF, most of them do not really want a strong national army. A strong LAF would mean empowered state institutions that, in turn, would weaken feudal political leaders who have been in power for decades. Lebanon’s current weak state institutions allow politicians to offer their supporters services such as medical care, education, and welfare support

The United States and other outsiders became increasingly aware of the LAF’s needs after it ousted an al-Qaeda inspired group entrenched in the Palestinian refugee camp of Nahr al-Bared in 2007. An underequipped, undertrained army was sent into an urban fighting environment. Commanders managed the battle via regular cell phones, and soldiers had little ammunition, no real air support, and limited intelligence.  The LAF won the battle after three months, but it cost the lives of 169 soldiers.  This confrontation showed the international community the potential value of the LAF and highlighted the importance of a strong state capable of curtailing the growth and infiltration of violent extremist groups in Lebanon. But because of the continued state of war between Lebanon and Israel, most Western countries donated insufficient, secondhand, or technologically outdated military equipment.

With no real defense strategy or a serious procurement budget, the LAF is pushed into a domestic security mission for which it is not prepared. Should it play that role effectively, it would clash with the multitude of local politicians protecting rogue armed supporters. The fact that it cannot ensures a weak military institution to the advantage of the same old established political elites, most of whom are former civil war warlords. This domestic role also comes at the expense of an external security role, in which the army would take over Hizbollah’s self-declared mission of protecting Lebanon against Israeli aggressions.

an initial budget of $8 million to conduct "serious" research in the area of nuclear fusion.

The United States, the European Union, China, India, Russia, Japan and South Korea signed an accord in 2006 to build a $12.8 billion experimental fusion reactor at Cadarache, southern France, aimed at revolutionizing global energy use for future generations. The International Thermonuclear Experimental Reactor, or ITER, members have said no single country can afford the immense investment needed to move the science forward.

How the United States supports Egypt's transition to democracy is exactly what worries Tantawi and his underlings on the Supreme Council of the Armed Forces, which has run Egypt by decree since Mubarak's fall. The generals, reportedly still miffed at Washington for giving up on Mubarak during the revolt, are furious with U.S. efforts to fund pro-democracy groups in Egypt by circumventing government channels. Scathing stories about American interference in Egypt crop up regularly in local papers, fueling xenophobia and scaring off fledgling nonprofits that otherwise would be receptive to American aid. The United States hasn't fared any better with the millions of anti-Mubarak protesters who are now coalescing into political parties in preparation for parliamentary elections in November. During the 18-day uprising that preceded Mubarak's resignation, chants against America were common, with young Egyptians pointing angrily to the "Made in USA" stamps on the tear-gas canisters that Mubarak's forces fired at them. A Gallup poll released earlier this year found that 75 percent of Egyptians oppose American aid to political groups and that two-thirds think the U.S. isn't serious about encouraging democracy in the Middle East and North Africa.

In June, the military council rejected a proposed budget from its civilian ministers because of its dependence on aid from the United States and other foreign donors

Patterson and her superiors in Washington must recognize that the military council and whatever elected government succeeds it will be accountable to the public in a way that was unfathomable in Mubarak's day

Tafila wind farm was granted around $221 million worth of loans to fund this project from the International Finance Corporation (IFC) — the World Bank’s investment institution in the private sector. The European Investment Bank (EIB), the Eksport Kredit Fonden, the OPEC Fund for International Development (OFID), the Europe Arab Bank and the Capital Bank of Jordan also participated in financing the project. The participation of international finance institutions such as OFID, IFC and EIB guarantees the project’s transparency in contracting and covering necessary expenses, in addition to providing loans and abiding by environmental policies. These institutions give out loans based on the project’s economic feasibility

imported energy currently represents around 90% of the total consumption in the country

import of energy costs Jordan more than 40% of its yearly budget

In light of this commotion on the streets, the Iraqi government has distanced itself from the strained Saudi-Iranian ties following the execution of Nimr and other developments, such as the storming of the Saudi Embassy in Tehran on Jan. 2 and the rupture of ties between the two countries. The government also turned a deaf ear to Iraqi Shiite forces close to Iran that demanded that ties be cut with Saudi Arabia.

The official Iraqi position was incomprehensible to some extremist circles. Although it has condemned the execution of Nimr, Iraq also supported the Saudi position against Iran in the closing statement of the Arab League meeting on Jan. 10. This statement condemned the attack against the Saudi Embassy in Tehran and supported the Saudi position against Iran, demanding that Iran stop interfering in Saudi affairs.

Iraq’s situation is currently complicated by the war against IS and the economic crisis caused by declining oil prices. Abadi seems to be looking to preserve any potential support in the fight against IS, which challenges the existence of the Iraqi state itself.