Showing posts with label Geopolitics. Show all posts
Showing posts with label Geopolitics. Show all posts

Saturday, September 03, 2011

What would Einstein say?

In a Reflection published on August 25, 2010 under the title of “The Opinion of an Expert”, I mentioned a really unusual activity of the United States and its allies which, in my opinion, underlines the risk of a nuclear conflict with Iran. I was referring to a long article by the well-known journalist Jeffrey Goldberg, published in the US journal The Atlantic in September of that year, entitled “The Point of No Return”.

Goldberg was not anti-Israeli, quite the opposite; he is an admirer of Israel and holds double citizenship with the US and also did his military service in that country.

At the start of his article he wrote: “It is possible, as well, that “foiling operations” conducted by the intelligence agencies of Israel, the United States, Great Britain, and other Western powers—programs designed to subvert the Iranian nuclear effort through sabotage and, on occasion, the carefully engineered disappearances of nuclear scientists—will have hindered Iran’s progress in some significant way”

The parentheses in the paragraph are also his.

After mentioning the enigmatic phrase, I carried on with the analysis of that Gordian knot of international politics that could lead to the war which was so feared by Einstein. What would he say if he had learned about the “frustration operations” destined to make the most capable nuclear scientists disappear?

Maybe because it was so absurd and incredible, I didn’t pay too much attention to it, but months later, upon reading the recent accusations by the Iranian government, as well as news and opinions of well-informed people, the memory of that paragraph returned to my mind with a vengeance.

Four weeks before the end of 2010, an AFP agency dispatch informed:

“An Iranian nuclear scientist has been killed.

“Teheran accuses the United States and Israel of being behind a double assassination.

“AFP. November 30, 2010

“‘The hand of western governments and the Zionist regime is behind the assassination attempts’. Mahmud Ahmadineyad had no doubts when it came to look for the people guilty of the double attack on the nuclear experts that took place early yesterday in Teheran. Majid Shariari, professor at the Shahid Beheshti University of Teheran and member of the Nuclear Society of Iran lost his life and his wife was injured in an explosion reported a few metres from their home. His colleague Fereydoon Abbasi, a laser physicist at the same university and his wife were also injured after a similar attack. Even though some newspapers announced Abbasi’s death, it was finally the Mehr agency that confirmed that he had managed to save his life. According to the Fars agency, ‘unknown terrorists’ on motorcycles drove closet o the vehicles to plant the lapa bombs.”

“Members of the Ahmadineyad Executive and the Minister of the Interior, Mostafa Mohamad Najjar, directly accused the CIA and Mossad – the intelligence services of the US and Israel, respectively – of being behind these actions that presume a new blow for the country’s nuclear race at the doors of a possible new round of talks with the 5+1 members...”

“With yesterday’s attempt there are now three Iranian scientists who have been killed since 2007. Dr. Masoud Alí Mohamadi lost his life in Teheran last January after the explosion of a bomb as he was leaving his home, a death that has not yet been cleared up by the authorities who also accused the western intelligence agencies of trying to abort what they considered to be a right, the nuclear race for civilian purposes. The first victim in the heart of the scientific community was Ardeshir Hosseinpour, killed under strange circumstances in 2007 at the nuclear centre of Isfahan.”

I don’t remember any other moment in history when the assassination of scientists has been transformed into official policy on the part of a group of powers armed with nuclear weapons. The worst is that, in the case of Iran, it is being applied on an Islamic nation, with which, even if they are able to compete and surpass it in technology, they could never do it in a field where, for cultural and religious questions, it could surpass them many times in the willingness of its citizens to die at any moment if Iran should decide to apply the same absurd and criminal formula on the professionals of their adversaries.

There are other serious events related to the carnage of scientists, organized by Israel, the US, Great Britain and other powers against the Iranian scientists, something about which the mass media does not inform world opinion.

An article by Christian Elia published on the Rebelión website on August 25, 2010, reports that:

An explosion has killed the father of the “drones” (unmanned planes) – of Iran – but he is just the last of the scientists who have lost their lives in the country.

“To find a photo of Reza Baruni on the Internet is a mission impossible. However, in the last few days, his name was at the centre of a mystery that has many international aspects...”

The only thing certain is that Reza Baruni, the Iranian aeronautical engineer, is dead. An air of absolute mystery hangs over everything else. All the industry analysts consider Baruni to be the father of the [...] UAVs (unmanned vehicles) of the Islamic Republic [...]. On August 1st, 2010, his house was blown up.”

“On August 17, 2010, Debka (very close to Israeli intelligence) publishes news of Baruni’s death and reveals its conclusions: the Iranian engineer’s home blew up because of the explosion of three very powerful explosive devices. Baruni was murdered.”

“But the murkiest episode in contrast is the death of Massud Ali-Mohammadi, professor of nuclear physics at Teheran University, murdered on January 11, 2010 in the Iranian capital. Professor Ali-Mohammadi died in the explosion of a motorcycle-bomb detonated from a distance at the time the professor was leaving his home to go to work…”

An article published on the CubaDebate website informs:

“Israel acknowledges that it has murdered an Iranian scientist last week.”

“Mossad, the Israeli secret service, acknowledged that last week it murdered Majid Shahriari and wounded another physicist in Iran, according to Mossad sources, in an operation carried out in Teheran. ‘It is the latest operation by the head of the Mossad’, the people heading Israeli secret services state with satisfaction at a meeting in their Gelilot headquarters to the north of Tel Aviv.”

“Gordon Thomas, a British expert in the Mossad, confirmed in Britain’s Sunday Telegraph that Israel is responsible for this double murder destined to obstruct the Iranian nuclear program.”

“Thomas states that all the Israeli assassination attempts in the last few years against personalities associated with the Iranian nuclear project have been committed by the Kidon (bayonet) unit. According to the Jewish newspaper Yediot Ahronot this unit is made up of 38 agents. Five of them are women. They are all between 20 and 30 years old and they speak several languages – including Persian – and they are able to come and go from Iran with ease. They are based in the Negev Desert.”

In the days of the Diaspora, the left wing in the world united in solidarity with the people of Israel. Persecuted for their race and religion, many of them fought in the ranks of the revolutionary parties. The peoples condemned the concentration camps that the European and world bourgeoisie wanted to ignore.

Today the leaders of the State of Israel practice genocide and are associating themselves with the most reactionary forces on the planet.

The alliance between the leaders of that State and the South Africa of the hateful apartheid regime is still to be cleared up; in complicity with the United States they supplied the technology to develop the nuclear weapons directed towards striking at the Cuban troops which, in 1975, were confronting the invasion of racist South Africa, whose disdain and hatred of the African peoples was no different from the Nazi ideology which murdered millions of Jews, Russians, gypsies and other European nationalities in the concentration camps of Europe.

If it hadn’t been for the Iranian revolution – stripped of weapons it swept over the best-equipped ally of the United States on the flank of the Soviet super-power – today it would be the Shah of Iran, supplied with nuclear weapons, and not Israel, who would be the principal bulwark of the Yankee and NATO empire in that region that is so strategic and immensely rich in oil and gas for the sure supply of the most developed countries on the planet.

It is an almost inexhaustible subject.

Fidel Castro Ruz

January 6, 2011

Saturday, April 30, 2011

A Hard Country


Monday, April 11, 2011

Pakistan Today

“TYPICAL Blackwater operative,” says a senior military officer, gesturing towards a muscular Westerner with a shaven head and tattoos, striding through the lobby of Islamabad’s Marriott Hotel. Pakistanis believe their country is thick with Americans working for private security companies contracted to the Central Intelligence Agency; and indeed, the physique of some of the guests at the Marriott hardly suggests desk-bound jobs.

Pakistan is not a country for those of a nervous disposition. Even the Marriott lacks the comforting familiarity of the standard international hotel, for the place was blown up in 2008 by a lorry loaded with explosives. The main entrance is no longer accessible from the road; guards check under the bonnets of approaching cars, and guests are dropped off at a screening centre a long walk away.

Some 30,000 people have been killed in the past four years in terrorism, sectarianism and army attacks on the terrorists. The number of attacks in Pakistan’s heartland is on the rise, and Pakistani terrorists have gone global in their ambitions. This year there have been unprecedented displays of fundamentalist religious and anti-Western feeling. All this might be expected in Somalia or Yemen, but not in a country of great sophistication which boasts an elite educated at Oxbridge and the Ivy League, which produces brilliant novelists, artists and scientists, and is armed with nuclear weapons.

Demonstrations in support of the murderer of Salman Taseer, the governor of Punjab, in January, startled and horrified Pakistan’s liberals. Mr Taseer was killed by his guard, Malik Mumtaz Qadri, who objected to his boss’s campaign to reform the country’s strict blasphemy law. Some suggest that the demonstrations were whipped up by the opposition to frighten the Pakistan People’s Party (PPP) government, since Mr Taseer was a member of the party. Others say the army encouraged them, because it likes to remind the Americans of the seriousness of the fundamentalist threat. But conversations with Lahoris playing Sunday cricket in the park beside the Badshahi mosque suggest that the demonstrations expressed the feelings of many. “We are all angry about these things,” says Gul Sher, a goldsmith, of Mr Taseer’s campaign to reform the law on blasphemy. “God gave Qadri the courage to do something about it.”

Pakistani liberals have always taken comfort from the fundamentalists’ poor showing in elections and the tolerant, Sufi version of Islam traditionally prevalent in rural Pakistan. But polling by the Pew Research Centre suggests that Pakistanis take a hard line on religious matters these days (see chart 1). It may be that they always did, and that the elite failed to notice. It may be that urbanisation and the growing influence of hard-line Wahhabi-style Islam have widened the gap between the liberal elite and the rest. “The Pakistani elites have lived in a kind of cocoon,” says Salman Raja, a Lahore lawyer. “They go to Aitchison College [in Lahore]. They go abroad to university…A lot of us are asking ourselves whether this country has changed while our backs were turned.”

The response to another death suggests that the hostility towards Mr Taseer may not have been only about religion. Two months later Shahbaz Bhatti, the minister for minorities, was murdered for the same reason. Yet his killing did not trigger jubilation. Mr Taseer’s offence may have been compounded by the widespread perception that he, like most of the elite, was Westernised. His mother was British, he held parties at his house, and he posted photos on the internet of his children doing normal Western teenage things—swimming and laughing with the opposite sex—that caused a scandal in Pakistan.

The West in general, and America in particular, are unpopular. It was not always thus. Before the Soviet Union left Afghanistan, around a third of Pakistanis regarded Americans as untrustworthy. Since then, a fairly stable two-thirds have done so. The latest poll on the matter (see chart 1) suggests that Pakistanis see America as more of a threat to their country than India or the Pakistani Taliban. It was carried out in 2009, but anecdotal evidence confirms that the views have not changed. “America is behind all of our troubles,” says Mohammed Shafiq, a street-hawker. That may be because America is thought to have embroiled Pakistan in a war which has caused the surge in terrorism; or because many Pakistanis, including senior army officers, genuinely believe that the bombings are being carried out by America in order to destabilise Pakistan, after which it will grab its nuclear weapons.

Four horsemen

From the complex web of factors that have fostered intolerance and violence in Pakistan, it is possible to disentangle four main strands. The first is Pakistan’s strategic position. Big powers have long competed for control of the area between Russia and the Arabian Gulf, and the unresolved tensions with India have dogged the country since its birth in 1947. Nor has Pakistan tried to keep out of its neighbours’ affairs. It was America’s enthusiastic ally in the war to eject the Soviet Union from Afghanistan in the 1980s, which it sold to its people as a jihad. “We used religion as an instrument of change and we are still paying the price,” says General Mahmud Ali Durrani, former national security adviser and ambassador to Washington. Pakistan helped create the Taliban in the 1990s to try to exert some control over Afghanistan. And with much trepidation on the part of its leaders, and reluctance on the part of its people, it has supported America in its war against the Taliban over the past decade.

By trying to destabilise India, Pakistan has undermined its own stability. “When the Soviets went away,” says a senior military officer, “we had a very large number of battle-hardened people with nothing to do. They were redirected towards India. The ISI [Inter-Services Intelligence, the main military-intelligence agency] was controlling them…20:20 hindsight is very good, but this decision was perhaps wrong.” According to the officer, after al-Qaeda’s attacks against America on September 11th 2001 the army decided to wind down the policy. “We started taking them out. But many of them said, ‘Nothing doing.’ They had contact with people in the Afghan jihad, and they joined those people again.” Because the Pakistanis were helping the Americans in their fight against the Afghan Taliban, the Pakistani jihadis turned their fury on the government.

The second strand is the unresolved question of Islam’s role in the nation. Muhammad Ali Jinnah, Pakistan’s founder, made it clear that he thought Pakistan should be a country for Muslims, not an Islamic country. But since then, according to General Durrani, “Every government that has failed to deliver has used Islam as a crutch.” Zulfikar Ali Bhutto, for example, though fond of a drink himself, banned alcohol. Zia ul Haq, his successor, tried to legitimise his military coup by pledging to Islamise the country.

The relationship between religion and the state is not an abstruse question of political philosophy. A treatise on the Pakistani constitution published in 2009 by Ayman al-Zawahiri, al-Qaeda’s number two (who is believed to be in North Waziristan), argues that the Pakistani state is illegitimate and must be destroyed. This tract is widely read in the madrassas from which the terrorist groups draw their recruits. Its popularity exercises Qazi Hussein Ahmed, the grand old man of the Jamaat-e-Islami, the most fundamentalist of the political parties, for the Jamaat works within the state, not against it. He argues that Pakistan’s failure to adopt an Islamist constitution “has given the Taliban and such extremist elements a pretext: they say the government will not bow to demands made by democratic means, so they are resorting to violent means.”

The third strand is the uselessness of the government. Democracy in Pakistan has been subverted by patronage. Parliament is dominated by the big landowning families, who think their job is to provide for the tribes and clans who vote for them. Except for the Jamaat-e-Islami, parties have nothing to do with ideology. The two main ones are family assets—the Bhuttos own the PPP, and the Sharifs (Nawaz Sharif, the former and probably future prime minister, and his brother Shahbaz, chief minister of Punjab) own the Pakistan Muslim League (N). The consequence is dire political leadership of the sort shown by Asif Ali Zardari, who is president only because he married into the Bhutto dynasty. When Pakistan desperately needed a courageous political gesture in response to the murders of the governor and minister, the president failed even to attend their funerals.

Pakistan’s rotten governance shows up in its growth rates (see chart 2). In a decade during which most of Asia has leapt ahead, Pakistan has lagged behind. Female literacy, crucial as both an indicator of development and a determinant of future prosperity, is stuck at 40%. In India, which was at a similar level 20 years ago, the figure is now over half. In East Asia it is more like nine out of ten.

Given the government’s failings, it is hardly surprising if Pakistanis take a dim view of democracy. In a recent Pew poll of seven Muslim countries they were the least enthusiastic, with 42% regarding it as the best form of government—though, since the country has spent longer under military than under democratic rule, the army is at least as culpable.

The armed forces’ dominance is the fourth strand. Tensions with India mean that the army has always absorbed a disproportionate share of the government’s budget. Being so well-resourced, the army is one of the few institutions in the country that works well. So when civilian politicians get them into a hole, Pakistanis look to the military men to dig them out again. They usually oblige.

Terrorism is strengthening the army further. In 2009 it drove terrorists out of Swat and South Waziristan, and it is now running those areas. Last year its budget allocation leapt by 17%. Nor are the demands on the armed forces likely to shrink. Although overall numbers of attacks are down from a peak in 2009, they have spread from the tribal areas and Khyber-Pakhtunkhwa (KPK), along the border with Afghanistan, to the heartland. Last year saw an uptick in attacks on government, military and economic targets in Punjab and Karachi, the capital of Sindh province. Since then, security has been stepped up; and with the usual targets—international hotels, government buildings and military installations—surrounded by armed men and concrete barriers, terrorists are increasingly attacking soft targets where civilians congregate, such as mosques and markets.

Exporting terror

Pakistani terrorism has also gone global. The Tehrik-e-Taliban Pakistan (TTP, or Pakistani Taliban), announced when it was formed in 2007 that it aimed to attack the Pakistani state, impose sharia law on the country and resist NATO forces in Afghanistan. But last year Qari Mehsud, now dead but thought to be a cousin of the leader, Hakimullah Mehsud, who was in charge of the group’s suicide squad, announced that American cities would be targeted in revenge for drone attacks in tribal areas. That policy was apparently taken up by Faisal Shahzad, a Pakistan-born naturalised American who tried to blow up New York’s Times Square last year.

Pakistan’s new face?

That prompted an increase in American pressure on the army to attack terrorists in North Waziristan. The army is resisting. The Americans suspect that it wants to protect Afghan Taliban there. The Pakistani army says it is just overstretched.

“We are still in South Waziristan,” insists a senior security officer. “We are holding the area. We are starting a resettlement process, building roads and dams. We need to keep the settled areas free of terrorists. It is not a matter of intent that we are not going into North Waziristan. It is a matter of capacity.”

The growth in terrorism in Punjab poses another problem for the army. “What we see in the border areas is an insurgency,” says the officer. “The military is there to do counter-insurgency. What you see in the cities is terrorism. This is the job of the law-enforcement agencies.” But the police and the courts are not doing their job. One suspected terrorist, for instance, a founder member of the Lashkar-e-Jhangvi, was charged with 70 murders, almost all of them Shias. He was found not guilty of any of them for lack of evidence. In 2009 the ISI kidnapped 11 suspected terrorists from a jail in Punjab, because it feared that the courts were about to set them free.

So where does this lead? Not to a terrorist march on the capital. Excitable Western headlines a couple of years ago saying that the Taliban were “60 miles from Islamabad” were misleading: first because the terrorists are not an army on the march, and second because they are not going to take control of densely populated, industrialised, urban Punjab the way they took control of parts of the wild, mountainous frontier areas and KPK.

Yet even though they will not overthrow the Pakistani state, the combination of a small number of terrorists and a great deal of intolerance is changing it. Liberals, Christians, Ahmadis and Shias are nervous. People are beginning to watch their words in public. The rich among those target groups are talking about going abroad. The country is already very different from the one Jinnah aspired to build.

The future would look brighter if there were much resistance to the extremists from political leaders. But, because of either fear or opportunism, there isn’t. The failure of virtually the entire political establishment to stand up for Mr Taseer suggests fear; the electioneering tour that the law minister of Punjab took with a leader of Sipah-e-Sahaba last year suggests opportunism. “The Punjab government is hobnobbing with the terrorists,” says the security officer. “This is part of the problem.” A state increasingly under the influence of extremists is not a pleasant idea.

It may come out all right. After all, Pakistan has been in decline for many years, and has not tumbled into the abyss. But countries tend to crumble slowly. As Adam Smith said, “There is a great deal of ruin in a nation.” The process could be reversed; but for that to happen, somebody in power would have to try.


Wednesday, April 06, 2011

No Good Choices

Even a broken watch tells the right time twice a day. So a UN Security Council resolution authorising the use of force against Libya is not necessarily wrong just because it was a US, French and UK initiative. Unarmed rebels facing a reign of terror may have to seek the assistance of an international force; preoccupied with their own sufferings, they will not refuse help just because the force may be deaf to appeals from other sufferers (for example, in Palestine). They may even forget that the alliance is better known for repression than aid.

But reasons that make sense to Libyan rebels in extreme danger cannot justify yet another western war on Arab land. Intervention by Nato member states is not an acceptable way to topple Muammar Gaddafi. If intervention seems the obvious solution – insofar as we are required to choose between western bombardment and the crushing of the Libyan uprising – that is only because other solutions, such as a joint intervention by UN, Egyptian or pan-Arab forces, have been dismissed.

Going by past record, it is impossible to believe the generous motives for sending in western troops that are currently being claimed. In fact, it is hard to believe that any state anywhere would spend money and deploy forces to achieve democratic goals. And recent history shows that battles fought for those goals may have widely acclaimed initial success, but what comes after is chaotic, more dangerous and less spectacular. The capitals of Somalia, Afghanistan and Iraq fell years ago, yet the fighting goes on inside those countries.

The Libyans would have preferred, like their Tunisian and Egyptian neighbours, to end Gaddafi’s despotic rule without outside help. The intervention of external forces places them under an obligation to powers that never had any real interest in Libyan freedom. Gaddafi is primarily to blame for this regional exception. Without 40 years of his violent repressive regime (which shifted from an anti-imperialist dictatorship to a pro-western despotism), without his diatribes against the “agents of al-Qaida” and “rats in the pay of foreign intelligence services”, the Libyan people alone would have been able to determine their own destiny.

Security Council Resolution 1973 authorising the bombing of Libya may have prevented the crushing of a revolt with military means too slender to succeed. But it has opened the door to much hypocrisy. Gaddafi’s troops were not bombed because he was the most vicious or bloodthirsty dictator, but because he was the weakest, without nuclear weapons or powerful friends to shield him from military reprisals or speak for him at the Security Council. The decision to authorise intervention confirms that international law has no clear principles whose violation is subject to universal sanctions.

Gaddafi’s close friends

Diplomatic whitewash is like money laundering: one good action covers decades of wheeling and dealing. So President Nicolas Sarkozy could order air strikes against Gaddafi, his former business partner, whom he received in 2007 although the nature of Gaddafi’s regime was evident. (We can count ourselves lucky, though, that Sarkozy didn’t offer Gaddafi the “French security forces’ expertise” that he extended to Tunisia’s now ex-president Zine al-Abidine Ben Ali in January.) And Silvio Berlusconi was a “close friend” of the Libyan Guide, who visited him in Rome 11 times, yet Berlusconi managed reluctantly to join the coalition.

The Arab League, full of old men who dread democracy, welcomed UN action but were horrified when the first US missiles landed. Russia and China could have opposed the Security Council resolution or introduced amendments to define the action and reduce the risk of escalation, saving themselves from having to “regret” the use of force later. The rectitude of the international community is also clear from the text of Resolution 1973, which condemns “arbitrary detentions, enforced disappearances, torture and summary executions” in Libya. Of course, these things don’t happen in Guantanamo Bay, Chechnya or China.

No one questions the imperative of protecting civilians. But in armed conflict that means bombing military objectives, including troops, many of them civilian conscripts, mingling with unarmed crowds. Aircraft patrolling a no-fly zone may be shot down, their pilots captured, and special forces will then be sent in to release them. However much the vocabulary is doctored, there is no euphemism for war.

War is in the hands of those who declare it and conduct operations, not those who believe in short wars with happy endings. It is fine to draw up plans for a conflict without hostility and no collateral damage, but the military forces that execute these plans will follow their own inclinations, use their own methods and have their own agenda. The consequences of Resolution 1973 may include retreating Libyan troops mown down by machine guns, as well as crowds rejoicing in Benghazi.

Progressive opinion on Libya is divided, according to whether it stresses solidarity with an oppressed people or opposition to a western war. Both objectives are legitimate but cannot always be reconciled.

Forced to chose, there is a decision to be made on what an “anti-imperialist” label gained in the international arena authorises by way of daily suffering imposed on people.

Wilful silence

Many leftwing governments in Latin America, notably Venezuela, Cuba, Nicaragua and Bolivia have maintained a dignified silence about Gaddafi’s repressive measures, which seems all the more bizarre since his opposition to the West is pure facade. He claims to be the victim of a “colonialist plot”, after having assured the old colonial powers: “We are all embroiled in the fight against terrorism. Our security services cooperate. We have helped you a lot these past few years” (1).

Like Hugo Chávez, Daniel Ortega and Fidel Castro, Gaddafi claims the attack on him is “all about oil”, although Libyan oil is already controlled by the US, UK and Italian companies Occidental Petroleum, BP and ENI (see The subtleties of Libyan crude). Just a few weeks ago, the International Monetary Fund had welcomed Libya’s “strong macroeconomic performance and the progress on enhancing the role of the private sector” (2). Gaddafi’s friend Ben Ali was paid a similar compliment in November 2008 by IMF director general Dominique Strauss-Kahn – who had just returned from Tripoli (3).

Anthony Giddens, theoretician of the Blairite ‘Third Way’, also seems to have overlooked Gaddafi’s old revolutionary, anti-imperialist veneer, carefully restored in Caracas and Havana, when he observed in 2007 that the “ideal future for Libya in two or three decades’ time would be a Norway of North Africa: prosperous, egalitarian and forward-looking” (4). Gaddafi has duped many impressive people. He may not be quite as mad as we thought.

There are many reasons why leftwing Latin American governments misjudged Gaddafi. They hoped he was the enemy of their enemy, the US, though that was no reason to believe he was a friend. They didn’t know much about North Africa – Chávez phoned Gaddafi to find out what was happening in Tunisia – so they were against what Castro called “the colossal campaign of lies unleashed by the mass media”.

The events revived irrelevant personal memories, hence Chávez’s comment on Libya: “I don’t know why, but the things that have happened and are happening there remind me of Hugo Chávez on 11 April” (11 April 2002, when the Chávez government in Venezuela was almost overturned in a coup with strong media support).

Revolutionary veneer

There were other reasons for the failure to understand events in Libya: decades of US military intervention and domination in Latin America, Libya helping Venezuela to gain a foothold in Africa, Latin American states’ role in Opec and the South America-Africa Summits, and Venezuela’s diplomatic moves to strengthen South-South relations.

Chávez also assumed that close relations between states meant close relations between heads of state: “King Fahd of Saudi Arabia was a friend of mine, King Abdullah is a friend … The emir of Qatar is a friend, and the president of Syria, he came here too. And Bouteflika” (5). When Gaddafi (“my old friend”) and his regime turned repressive, the friendship proved a handicap. Chávez missed the chance to present the Arab uprisings as younger siblings of the leftwing movements in Latin America he knew so well.

It is in the diplomatic arena that one sees most clearly the dire results, in all countries, when power is held by a single individual, and orders are issued without parliamentary control or democratic deliberation. And when, as in the Security Council, diplomats proudly declare war in the name of democracy, the contrast is particularly glaring.

Gaddafi first claimed to espouse the cause of opposing the West and to be defending natural resources; then he played his final card – religion. He explained on 20 March: “The great Christian powers have launched a new crusade against the Muslim people, and the people of Libya first. The aim is to wipe Islam off the map.” Just a fortnight before, he had compared his repressive measures to an action in which 1,400 Palestinians had been killed: “The Israelis had to use tanks to deal with the extremists in Gaza, and we are in the same position … Detachments of the Libyan army had to be deployed against small pockets of al-Qaida” (6). This was unlikely to increase his popularity in the Arab world.

But it has one virtue at least. It makes evident the damaging political effects of language that reflects in reverse the neoconservative talk of crusades and empires. The Arab uprisings with their secular and religious support, and opposition, may end the rhetoric that claims to be anti-imperialist when it is merely anti-West. There may be no more talk in which hatred of “the West” conflates all that is worst (gunboat diplomacy, contempt for the “natives”, wars of religion) and all that is best (from the age of enlightenment to social security) without distinction.

Orientalism in reverse

Not long after the 1979 Iran revolution, the radical Syrian thinker, Sadiq Jalal al-Azm defined, and criticised, an “Orientalism in reverse” that eschewed secular nationalism and communist revolution, and wanted a return to religious authenticity as a weapon against the West.

The principal tenets of this “culturalist” concept, as summarised and refuted by Gilbert Achcar, were that “the degree of emancipation of the Orient should not and cannot be measured by western standards and values, such as democracy, secularism and women’s liberation; that the Islamic Orient cannot be grasped with the epistemological tools of western social sciences and that no analogy with western phenomena is relevant; that the key motional factor in Islamic history, the primary factor setting Muslim masses in motion, is cultural, ie religious, taking precedence over the economic and social/class factors that condition western political dynamics; that the only path of Muslim lands toward their renaissance is through Islam; and that the movements that raise the banner of the ‘return to Islam’ are not reactionary or regressive movements as they are perceived through western lenses, but indeed progressive movements prompted by western cultural domination” (7).

This fundamentalist political vision has not completely disappeared, but the shock waves from Tunisia suggest that its relevance is widely questioned in Arab states where people no longer want to be “with the West, or against it” (8), and where they may be equally critical of a state that is pro-US (Egypt) or against it (Syria). Far from fearing that civil liberties, free speech, democratic policies, trade unions and women’s rights are “western” priorities masquerading as universal liberation, people in Arab states are adopting them as a sign that they reject authoritarianism, social injustice and police states run by old men who treat their people like children. This great drive, reminiscent of other revolutionary movements, these unaccustomed social and democratic victories, this burst of energy all come when “the West” seems divided between fear and apathy, with a necrotic political system, running on automatic toward the same outcomes and on behalf of the same interests, regardless of which coalition is in power.

There is no guarantee that the courage and energy of the Arab people will continue to win easy victories. But they open unknown possibilities. In Article 20 of UN Resolution 1973, the Security Council “affirms its determination to ensure that [Libyan] assets frozen pursuant to [an earlier resolution] shall, at a later stage, as soon as possible be made available to and for the benefit of the people of the Libyan Arab Jamahiriya.” So assets can be frozen and returned to the people. This lesson will certainly be remembered, that the state can serve the people. In the past few months, the Arab world has reminded us of another universal truth: the people can shape the state.

by Serge Halimi

from Le Monde Diplomatique


Tuesday, April 05, 2011

World Water Wars


Wednesday, January 19, 2011

Friday, January 07, 2011

GDP Projections to 2050


Predictions - Geopolitics

No balance of power lasts forever. Just a century ago, London was the centre of the world. Britain bestrode the world like a colossus and only those with strong nerves (or weak judgment) dared challenge the Pax Britannica.

That, of course, is all history, but the Pax Americana that has taken shape since 1989 is just as vulnerable to historical change. In the 1910s, the rising power and wealth of Germany and America splintered the Pax Britannica; in the 2010s, east Asia will do the same to the Pax Americana.

The 21st century will see technological change on an astonishing scale. It may even transform what it means to be human. But in the short term – the next 20 years – the world will still be dominated by the doings of nation-states and the central issue will be the rise of the east.

By 2030, the world will be more complicated, divided between a broad American sphere of influence in Europe, the Middle East and south Asia, and a Chinese sphere in east Asia and Africa. Even within its own sphere, the US will face new challenges from former peripheries. The large, educated populations of Poland, Turkey, Brazil and their neighbours will come into their own and Russia will continue its revival.

Nevertheless, America will probably remain the world's major power. The critics who wrote off the US during the depression of the 1930s and the stagflation of the 1970s lived to see it bounce back to defeat the Nazis in the 1940s and the Soviets in the 1980s. America's financial problems will surely deepen through the 2010s, but the 2020s could bring another Roosevelt or Reagan.

A hundred years ago, as Britain's dominance eroded, rivals, particularly Germany, were emboldened to take ever-greater risks. The same will happen as American power erodes in the 2010s-20s. In 1999, for instance, Russia would never have dared attack a neighbour such as Georgia but in 2009 it took just such a chance.

The danger of such an adventure sparking a great power war in the 2010s is probably low; in the 2020s, it will be much greater.

The most serious threats will arise in the vortex of instability that stretches from Africa to central Asia. Most of the world's poorest people live here; climate change is wreaking its worst damage here; nuclear weapons are proliferating fastest here; and even in 2030, the great powers will still seek much of their energy here.

Here, the risk of Sino-American conflict will be greatest and here the balance of power will be decided.

Ian Morris, professor of history at Stanford University and the author of Why the West Rules – For Now (Profile Books)


Sunday, June 13, 2010

Thursday, May 27, 2010

How To Avoid Water Wars

SINCE men fight over land and oil and plenty of other things, it would be odd if they did not also fight over a commodity as precious and scarce as water. And they do. The Pacific Institute in California has drawn up a list of conflicts in which water has played a part. It starts with a legendary, Noah-and-the-flood-like episode about 3000BC in which the Sumerian god Ea punished the Earth with a storm, and ends, 202 incidents later, with clashes in Mumbai prompted by water rationing last year. Pundits delight in predicting the outbreak of water wars, and certainly water has sometimes been involved in military rows. But so far there have been no true water wars.

Could that change as populations grow, climates change and water becomes ever scarcer? Since 61 of the 203 incidents have taken place in the past ten years, a trend might seem to be in the making—especially as some recent water disputes fail to make the list even though their results look grave. One example is the competition for water in Bharatpur, a district of the Indian state of Rajasthan, which has led local farmers to cut off water supplies to the Keoladeo national park. This was, until a few years ago, a wonderful wetland, teeming with waders and wildfowl. Thousands of rare birds would winter there, endangered Siberian cranes among them. Now it is a cattle pasture.

China abounds with instances of water-induced disputation. The people of Hebei province, which surrounds Beijing, are far from happy that their water is now taken to supply the capital in a canal that will eventually form part of the South-North Water-Transfer Project. So are others affected by that grandiose scheme. Dai Qing, an investigative journalist who is an outspoken critic of the Three Gorges dam and other Chinese water projects, draws attention, for example, to the complaints of those living along the Han river, who will lose water to the huge reservoir formed by the Danjiangkou dam.

Similar disgruntlement can be seen in India, where over 40 tribunals and other panels have been set up to deal with disputes, mostly without success. The bone of contention is often a river, such as the Cauvery, whose waters must be shared by several states. Strikes and violent protests are common. Indians, however, have yet to reach the levels of outrage that led Arizona to call out its National Guard in 1935 and station militia units on its border with California in protest at diversions from the Colorado river. To this day, American states regard each other with suspicion where water is concerned. Indian states are equally mistrustful, often refusing to share such water information as they have lest it be used to their disadvantage.

Violent incidents over wells and springs take place periodically in Yemen, and the long-running civil war in Darfur is at least partly attributable to the chronic scarcity of water in western Sudan. That is probably the nearest thing to a real water war being fought today, and may perhaps be a portent of others to come. If so, they will be dangerous, because so many water disagreements are not internal but international affairs.


The world has already had a taste of some. The six-day war in the Middle East in 1967, for example, was partly prompted by Jordan’s proposal to divert the Jordan river, and water remains a divisive issue between Israel and its neighbours to this day. Israel extracts about 65% of the upper Jordan, leaving the occupied West Bank dependent on a brackish trickle and a mountain aquifer, access to which Israel also controls. In 2004 the average Israeli had a daily allowance of 290 litres of domestic water, the average Palestinian 70.

Turkey’s South-Eastern Anatolia Project, intended to double the country’s irrigated farmland, involves the building of a series of dams on the Tigris and Euphrates rivers; one of them, the Ataturk dam, finished in 1990, ranks among the biggest in the world. Iraq and Syria downstream are dismayed. Similarly, Uzbekistan views with alarm Tajikistan’s plan to go ahead with an old Soviet project to build a huge barrage across the River Vakhsh. This, the Rogun dam, will be the highest in the world, at least for a while, and was expected in 2008 to cost about $2.2 billion, or 43% of the country’s national income. The dam will, it is hoped, generate enough power for all Tajikistan’s needs and have plenty over to export as far afield as Afghanistan and Pakistan. But since it may take 18 years to fill the dam (compared with 18 days, in principle, for China’s Three Gorges), there may be no water left over, or at any rate not enough for Uzbekistan’s cotton-growers.

International river basins extend across the borders of 145 countries, and some rivers flow through several countries. The Congo, Niger, Nile, Rhine and Zambezi are each shared among 9-11 countries, the Danube among 19. Adding to the complications is the fact that some countries, especially in Africa, rely on several rivers; 22, for instance, rise in Guinea. And about 280 aquifers also cross borders. Yet a multiplicity of countries, though it makes river management complicated, does not necessarily add to the intractability of a dispute.

One arrangement now under strain is the 1960 Indus Waters Treaty between India and Pakistan. This agreement was the basis for the division of rivers after India’s partition in 1947. Having withstood Indo-Pakistani wars in 1965, 1971 and 1999, it is usually cited as a notable example of durability in adversity, but it is now threatened by three developments.

First, India proposes to build a water-diversion scheme in Indian Kashmir that would take water from the Kishanganga river to the Jhelum river before it could reach Pakistani Kashmir. Second, India, which already has more than 20 hydro projects on the three western rivers allocated to Pakistan in its part of Kashmir, is now building at least another ten and has more planned. Each of these conforms to the letter of the treaty, since it does not involve storage but merely run-of-the-river dams, in which water is returned downstream after it has been used to generate power. However, Pakistan is worried about the cumulative effects. When, in 2005, it complained about another Indian hydro project, the dispute went to arbitration. That resulted in a ruling broadly favourable to India which left Pakistan unhappy. It feels that the spirit of the agreement has been breached and the treaty needs revision, partly because advances in technology make it possible to build dams that were not foreseen when the deal was signed.

Third, Pakistan badly needs more reservoirs. Storage is essential to provide supplies in winter (two-fifths of the Indus’s flow comes from the summer melting of glaciers) but Pakistan’s two big dams are silting up. It would like to build a new one in Pakistani Kashmir, but India has objected, and the money is not forthcoming.

Another example, the Nile, looks more worrying but is perhaps more hopeful. The Blue Nile rises in Lake Tana in the Ethiopian highlands, the White Nile in Lake Victoria in Uganda (into which flow rivers from Rwanda and Tanzania). The two Niles meet in Sudan and flow through Egypt, which gets almost no water from anywhere else. For years most of the territories that now form the riparian countries were under the direct or indirect control of Britain, which was fixated on Egypt. Britain stopped any development upstream that would reduce the flow of water to Egypt and, in 1929, allotted 96% of the water flowing north from Sudan to the Egyptians and only 4% to the Sudanese.

Thirty years later Gamal Abdel Nasser had to make a new treaty with Sudan in order to build the Aswan high dam. It would have made more sense to build a dam in the Ethiopian mountains: not only would the flow have then been easier to control but it would also have been cheaper and environmentally less damaging—and with less evaporation. But demagogues like their own dams. The waters were split 75% to Egypt and 25% to Sudan.

The other riparian states have been unhappy ever since, Kenya and Ethiopia particularly so, and all efforts to draw up a new treaty, fairer to all, have failed. They have not, however, failed to achieve anything. On the contrary, for the past 11 years the ten riparians have been amicably meeting in an organisation called the Nile Basin Initiative, and since 2001 have had a secretariat that deals with technical matters and holds ministerial gatherings.

In this group, irrigation and other projects are agreed on, many with World Bank support. Ethiopia is building three dams, two of them large and one controversial, for environmental reasons; and Egypt will take some of the electricity generated, via Sudan. In this way will two old antagonists yoke themselves together with water, the very commodity that has so long driven them apart. No one would say that a new agreement among all the interested parties is imminent, but, after more than 100 trips to Egypt and Ethiopia to help promote harmony, Mr Grey, World Banker turned Oxford professor, is hopeful. He believes that, in time, Ethiopia could be an exporter of electricity to Europe.

A third neuralgic dispute concerns the Mekong, one of at least eight rivers that rise on the Tibetan plateau, fed partly by melting glaciers in Tibet. The Mekong then runs through China’s Yunnan province, Myanmar, Laos, Thailand, Cambodia and Vietnam. Recently, though, it has been running thinly. Sandbanks have appeared, navigation has slowed, fishermen complain of derisory catches, and the 60m people whose livelihoods directly or indirectly depend on the river are worried. The worst drought in southern China for 50 years is partly, perhaps mainly, to blame, but the downstream users also blame the Chinese government, and in particular the three dams it has built and its blasting of rapids to ease navigation.

China has plans for more dams. It is hyperactive in the world of water, not only at home but abroad—building dams in Africa and Pakistan, looking for land in Mozambique and the Philippines, diverting rivers for its own purposes. Neighbouring states, notably India, are uneasy. Yet the row over the drop in the Mekong seems under control. At a meeting of the Mekong River Commission last month—all the riparian states except China and Myanmar are members—China sent a vice-minister of foreign affairs, who was fairly forthcoming about hydrological data. This was something of a breakthrough, even if he did not offer compensation to fishermen. The neighbours’ resentment has not disappeared, and China will not stop building dams. But a water war seems unlikely.

The most hopeful development is the success of other river-basin organisations like the Nile and the Mekong groups. Such outfits now exist for various rivers, including the Danube, the Niger, the Okavango, the Red, the Sava and so on. In the Senegal river group, Mali, Senegal, Guinea and Mauritania have agreed to disagree about who is entitled to how much water, and instead concentrate on sharing out various projects, so that a dam may go to one but the electricity generated, or a part of it, to another. This has worked so well that the president of the group has established considerable authority, enough to enable him to broker unrelated agreements among squabbling tribesmen.

The co-operative approach has also been successful elsewhere. Thailand, for instance, has helped pay for a hydro scheme in Laos in return for power; South Africa has done the same with Lesotho, in return for drinking water in its industrial province of Gauteng; and, in the Syr Darya grouping, Uzbekistan and Kazakhstan compensate Kyrgyzstan in return for supplies of excess power.

The way such organisations work, when they work, is to look for the benefits that can be gained from organising water better, and then to share them. An arrangement can usually, though not always, be found that benefits each state. It may be hard to achieve in a group that includes a dominant member, such as Egypt. And it will also be more difficult in groups that bring together officials appointed politically rather than competitively, on their technical qualifications. In the case of the Indus the two sides’ representatives get along well. The reason the treaty is under strain is that it starts with the water and then tries to divide it equitably. The secret is to look for benefits and then try to share them. If that is done, water can bring competitors together.




Thursday, April 08, 2010

From My Friend Hillary...

Tomorrow the United States and Russia will sign the New Strategic Arms Reduction Treaty (Start) in Prague, reducing the number of strategic nuclear warheads in our arsenals to levels not seen since the first decade of the nuclear age. This verifiable reduction by the world's two largest nuclear powers reflects our commitment to the basic bargain of the Nuclear Non-Proliferation Treaty (NPT) – all nations have the right to seek the peaceful use of nuclear energy, but they all also have the responsibility to prevent nuclear proliferation, and those that do possess these weapons must work towards disarmament.

This agreement is just one of several concrete steps the United States is taking to make good on President Obama's pledge to make America and the world safer by reducing the threat of nuclear weapons, proliferation and terrorism.

Yesterday the president announced the US government's Nuclear Posture Review (NPR), which provides a roadmap for reducing the role and numbers of our nuclear weapons while more effectively protecting the United States and our allies from today's most pressing threats.

Next week President Obama will host more than 40 leaders at a nuclear security summit for the purpose of securing all vulnerable nuclear materials as swiftly as possible to prevent them from falling into the hands of terrorists.

And along with our international partners, the United States is pursuing diplomatic efforts that create real consequences for states such as Iran and North Korea that defy the global non-proliferation regime.

These steps send clear messages about our priorities and our resolve. To our allies and partners, and all those who have long looked to the United States as an underwriter of regional and global security: our commitment to defend our interests and our allies has never been stronger. These steps will make us all safer and more secure.

To those who refuse to meet their international obligations and seek to intimidate their neighbours: the world is more united than ever before and will not accept your intransigence.

Tomorrow's agreement is a testament to our own determination to meet our obligations under the NPT and the special responsibilities that the United States and Russia bear as the two largest nuclear powers.

The New Start Treaty includes a 30% reduction in the number of strategic nuclear warheads the United States and Russia are permitted to deploy and a strong and effective verification regime, which will further stabilise the relationship between our two countries as well as reduce the risks of miscommunication or miscalculation.

And the treaty places no constraints on our missile defence plans – now or in the future.

President Obama's Nuclear Posture Review makes the principles behind this treaty – and our larger non-proliferation and arms control agenda – part of our national security strategy. Today nuclear proliferation and nuclear terrorism have replaced the cold-war-era danger of a large-scale nuclear attack as the most urgent threat to US and global security. The NPR outlines a new approach that will ensure that our defences and diplomacy are geared towards meeting these challenges effectively.

As part of this new approach, the United States pledges not to use or threaten to use nuclear weapons against a non-nuclear weapons state that is party to the NPT and in compliance with its nuclear non-proliferation obligations. The United States would only consider the use of nuclear weapons in extreme circumstances to defend the vital interests of the United States or its allies and partners. There should be no doubt, however, that we will hold fully accountable any state, terrorist group or other non-state actor that supports or enables terrorist efforts to obtain or use weapons of mass destruction.

The NPR also emphasises close co-operation with our allies around the world, and maintains our firm commitment to mutual security. We will work with our partners to reinforce regional security architectures, such as missile defences, and other conventional military capabilities. The United States will continue to maintain a safe, secure and effective nuclear deterrent for ourselves and our allies so long as these weapons exist anywhere in the world.

Nuclear proliferation and terrorism are global challenges, and they demand a global response. That is why President Obama has invited leaders from around the world to Washington for a nuclear security summit and will seek commitments from all nations – especially those that enjoy the benefits of civilian nuclear power – to take steps to stop proliferation and secure vulnerable nuclear materials. If terrorists ever acquired these dangerous materials, the results would be too terrible to imagine.

All nations must recognise that the non-proliferation regime cannot survive if violators are allowed to act with impunity. That is why we are working to build international consensus for steps that will convince Iran's leaders to change course, including new UN security council sanctions that will further clarify their choice of upholding their obligations or facing increasing isolation and painful consequences. With respect to North Korea, we continue to send the message that simply returning to the negotiating table is not enough. Pyongyang must move towards complete and verifiable denuclearisation, through irreversible steps, if it wants a normalised, sanctions-free relationship with the United States.

All these steps, all our treaties, summits and sanctions, share the goal of increasing the security of the United States, our allies, and people everywhere.

Last April President Obama stood in Hradcany Square in Prague and challenged the world to pursue a future free of the nuclear dangers that have loomed over us all for more than a half century. This is the work of a lifetime, if not longer. But today, one year later, we are making real progress towards that goal.

by Hilary Clinton



Sunday, March 28, 2010

European South v North


THE “peripheral” economies of the European Union are all in trouble, it is said. So Europe’s “core” economies, especially in the euro-area heartland, must decide how to help colleagues teetering on the edge of both bankruptcy and the map—without wrecking the budget discipline needed to make the euro work. This week’s summit of EU leaders, which began after The Economist went to press, was due to be dominated by this debate, pitting Germany (the core of the core) against governments that believe a credible plan must be drawn up to help far-flung, spendthrift members of the club. The list starts with Greece. But there are worries ahead about Portugal, Spain and even Italy.

Talk of an ailing periphery has become so common in the EU that it takes a squint at a map to realise how odd (and revealing) it is. An outside observer might conclude that in the EU, a country’s economic might (and its credit rating) correlates with its distance from Brussels and Frankfurt. Yet this is not so. Finland is a euro-area country a long way from both cities that can raise ten-year government debt more cheaply than such core countries as France and Belgium.

In practice, talk of peripheral Europe is, deep down, a way of saying something quite different. When journalists, officials and politicians first began to use the phrase, it was shorthand for southern countries with worrying public finances, plus Ireland, also on the edge of the European map. Recently, though, Ireland has become a pin-up country, praised by senior officials and politicians for a stoical embrace of austerity after its property bubble burst. “Peripheral” is now no longer a shorthand term, but a euphemism for “southern”.

North-south divisions are hardly new in the EU. When the euro was planned in the 1990s many German politicians wanted a currency zone comprising only Germany, the Benelux countries and France. France wanted a bigger group, fearing that southern countries outside would devalue, as both Italy and Spain did in 1992-93, making French exports less competitive. But the Germans suspected France’s southern push had other goals: a monetary union likelier to tolerate both greater fiscal laxity and more political meddling.

In truth, Europe’s south is not a monolithic block. Charlemagne recently went to Portugal. Although it is under less pressure than Greece, Portugal’s credit rating was downgraded this week. It has a big budget deficit and deep structural problems (more than half of Portuguese adults left school at the minimum leaving age). Portugal suffered a shock when ex-communist countries joined the EU and lured multinational firms that liked cheap labour. Against that, Portugal has done more to trim its public sector than Greece and Spain and more to reform its pensions than Italy, and recently froze welfare spending until 2013.

In Lisbon memories are fresh of how northerners were “surprised” when Spain, Italy and Portugal met entry conditions for the single currency. Antonio Vitorino, a minister at the time, recalls a Dutch colleague frostily saying: “well, now you’ve qualified for the euro, you don’t need cohesion funds [ie, EU regional help] any more.” Yet Portugal did not do its homework to prepare for euro entry, says Mr Vitorino. After qualifying for low German interest rates overnight, citizens entered a spiral of private debt. Nor did Portugal reform its labour markets. “We all knew from 1999 that there could be asymmetric shocks in the euro zone,” says Mr Vitorino, later an EU justice commissioner. But Germany “refused to discuss” the strains that might be caused by differing levels of economic development.

Today’s north-south divisions are sharper, more populist, and carry greater risks. It is no political mystery why the German chancellor, Angela Merkel, has taken such a hard line on a Greek bail-out and hinted that the worst-behaved countries should face expulsion from the euro. German voters are strongly opposed to paying for Greece to avoid default, and Germany’s constitution also sets legal hurdles to any bail-out that might threaten the euro’s stability.

In politics arguments have special force when they are easy to grasp and reflect long-held prejudices. The German debate on Greece has been shaped by the fact that some Greeks can retire ten years earlier than Germans, and by the statistical fraud carried out by previous Greek governments to disguise their budget deficit. From this, it is but a short step to German headlines calling Greeks “swindlers in the euro zone” (triggering Greek headlines about Nazi crimes and gold-pinching in the second world war).

Such name-calling ignores the human complexity of Europe. Greece has been badly governed for years, with successive governments handing out jobs for life, early retirement and lucrative contracts. But such clientelism came about partly because the country was harshly ruled for many years. Socialist rulers expanded the public sector in the 1980s partly to bring leftist citizens back into the mainstream after decades of exclusion and repression by the right. Jobs for life were granted partly to stop new governments sacking their predecessor’s favourites.

Such history matters. From the north, southerners handed jobs for life by political patrons look privileged. From the south, those public-sector workers feel more like victims, whose low-paid jobs are just compensation for past ills. (Portugal’s public sector grew partly to absorb 800,000 citizens who arrived after its colonial empire collapsed in 1974.)

Europe is going to need more empathy if the euro is to hold together. The hard work of returning to true convergence will be impossible without voters’ consent. As Europe faces that task, no economy, north or south, can be considered peripheral.


from The Economist



Thursday, March 18, 2010

By George!

Wednesday, February 24, 2010

The Power Of Words

Iran`s enthusiastic guardianship of its sovereignty appears to have extended to international air travel.

From now on, the Iranian government has announced, any airline which refers to the waterway between Iran and Arab states as the Arabian Gulf rather than the Persian Gulf will be banned from its airspace.

"The airlines of the southern Persian Gulf countries flying to Iran are warned to use the term Persian Gulf on their electronic display boards," the country's transport minister, Hamid Behbahani, told the Daily Iran newspaper.

"Otherwise they will be banned from Iranian airspace for a month the first time and upon repetition their aircraft will be grounded in Iran and flight permits to Iran will be revoked."

Although the warning seems to be aimed at airlines based in neighbouring countries, the newspaper reported that Iran has also punished a foreign employee of one of its own airlines for making the same mistake.

It said that a Greek employee of Iranian commercial carrier Kish Air had been fired for using the term Arabian Gulf on a display board, and the airline had been asked to apologise over the incident.

Last month the Saudi-based Islamic Solidarity Sports Federation said it had made the decision to scrap the Islamic Solidarity Games which were to be held in Iran in April because of a dispute over whether the Gulf waterway is Arab or Persian.

Designation of the key waterway for global oil and gas supplies has long been a touchy issue among the countries bordering it – Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates, Oman, Iraq and Iran.

Iran says it is the Persian Gulf; the Arab states say it is Arab. Foreign language descriptions can offend either party if they use one name or the other, or decide to omit an adjective altogether.

The directive from Tehran also reflects international tensions over Iran's nuclear enrichment activities.

Some Gulf Arab states – many of which buy large quantities of US weapons and offer facilities to US military forces – share Washington's concerns that Iran is seeking to develop a nuclear weapons capability.

The dispute over Iran's nuclear energy programme, which Tehran says is aimed solely at generating electricity, is part of a wider concern among Sunni Muslim-led Arab governments over Iranian expansionism in the Middle East.

Iran has a network of allies including Shia groups in power in Iraq, the Syrian government, Lebanon's Hizbullah and the Palestinian Islamist group Hamas that rules Gaza.


Tuesday, January 12, 2010

Big Boys: Gazprom


The next cold war may well take place in a room that looks oddly like a scene from the last one. Along one wall of a spartan control centre in Moscow, a large map of Europe is projected on computer screens. Visitors have to pass through five rings of security to reach this spot, but the few outsiders who make it through are proudly shown a display of raw power. From underground facilities deep inside Siberia, a series of trajectories are plotted on the computer screens – aiming west toward Europe's largest conurbations. An engineer explains how easy it would be to turn out the lights in a foreign city with the click of a button on his desk.

Fortunately, this is not missile command but the control room of Gazprom, the world's largest gas producer and a flagship of Russian capitalism. The plotted lines show the route of major pipelines – coloured green because they are full of natural gas flowing at more than 30km an hour. Yet the threat of plunging neighbouring states into nuclear winter remains a real one. This time last year, actions taken in this room threw much of Europe into panic. A dispute between Gazprom and Ukraine over unpaid gas bills culminated in a decision to turn off transit pipelines that also feed much of central and eastern Europe – shutting down heating and electricity generation for millions during one of the worst cold snaps for years.

Now, with the continent again in the deep freeze and running low on gas, the power of Russian energy companies is once more in the spotlight. Russia has already sparred with Belarus over oil supplies this winter in a dispute that also threatened to disrupt energy exports to Europe. Gazprom and the Ukrainian government are hoping to avoid a repeat of their 2009 pipeline brinkmanship for now, but critics claim Moscow is never far away from using its energy might to exert political influence over its neighbours.

Even Britain received a taste of how fragile Europe's gas supply infrastructure can be last week when a drop in pipeline pressure from Norway forced authorities to suspend supply to certain designated industrial users to protect homes and offices. Our reliance on imported gas is set to rise rapidly as UK reserves near depletion in less than eight years at current extraction rates.

Increasingly, one company dominates not just existing European supply but, more importantly, its future sources. Gazprom has so much natural gas under the tundra of Siberia that its energy resources are equivalent to all the oil and gas fields owned by western energy companies put together. At 33.1tn cubic metres, its gas reserves are 55 times greater than Britain's North Sea alone. In fact, only the Saudis, with their huge desert oilfields, can match Gazprom's total energy reserves. Even then, oil exports from Russia recently overtook those of Saudi Arabia.

The geopolitics of energy are well rehearsed but relatively little is known about key corporate players such as Gazprom, which rarely grants access to foreign media. Today's Guardian interview is the first in a five-part series published this week, which looks at some of the key international companies likely to shape world affairs over the coming decade. Some, like Gazprom or the mining giant BHP Billiton, control the dwindling raw materials most likely to prove strategic flashpoints.

Tomorrow we turn to China Mobile, straddling the two most powerful global trends: the rise of China and digital communications, while General Electric and Wal-Mart are examples of how powerful multinational corporations have survived the financial crisis to retain their global influence.

Not all are in good shape. 2009 was a torrid time for businesses everywhere. Gazprom has had a particularly bad year as its reputation for reliability plummeted after the Ukrainian shutdown and the recession caused Europeans to consume far less gas.

But as energy prices bounce back fast (oil, which acts as a benchmark for gas, has jumped swiftly to $80 a barrel again) Moscow is recovering the swagger of a city swimming in easy money.

A few miles south of its glitzy ­boutiques, the headquarters of Russia's largest company is more forbidding: a chilly blue neo-Stalinist skyscraper known as "The Candle" houses a bureaucracy that serves as a constant reminder of Gazprom's Soviet past. Still 50.1% owned by the Russian state, its managers are nonetheless at pains to stress its independence from government foreign policy. "We don't do politics," insists Vladimir Mikheev, an executive from the export arm who complains of the west's "Gazpromophobia".

But his boss, Gazprom's official public representative, Sergei Kupriyanov, is blunt about why the state keeps such an iron grip: "Most of the territory of the Russian Federation lies in rather uncomfortable climatic conditions – much of the year it is freezing, which means any rupture of the gas supplies will immediately lead to catastrophe."

Russia knows about energy's strategic importance better than most. Its citizens rely on heavily subsidised gas from Gazprom's monopoly and months of sub-zero temperatures make energy security a matter of life and death.

As last year's clash with Ukraine showed, it also makes for an unusually powerful form of economic weapon. Opinion remains divided over who was really to blame for shutdown, but the show of strength appears to have worked: five years after Ukraine's so-called Orange revolution, both candidates standing for election in next weekend's presidential election are now broadly pro-Moscow.

Gazprom is more than just strategically useful, contributing 20% of ­Russia's total state budget in taxes, and Kupriyanov stresses its benefits to other shareholders too: "We also have private investors who are expecting returns and that means we have to be transparent".

Unfortunately, market rules do not always apply as evenly to foreign investors in Russia, who remain scarred by a series of assets confiscations and forced disposals. Only the vast riches at stake keep overseas money flowing to invest in vital new projects such as the Yamal development scheme in Siberia or Nord Stream pipeline to Germany. Chief executives from two western energy firms who agreed to speak off the record about Gazprom conceded that they faced little choice but to continue dealing with Russia despite misgivings about the reliability of its contract law.

Gazprom's emphasis on "shareholder transparency" does little to clear up questions about its ownership either. Rumours persist that senior government figures have sizeable indirect holdings. "We haven't seen any traces," says Kupriyanov when asked whether Vladimir Putin has a personal economic interest in the company.

To Gazprom's foreign shareholders, close links with the Kremlin are a mixed blessing: protecting their asset but holding back true reform. "The government is only interested in two things: political power and cheap domestic gas," says one Moscow-based fund manager. "There is no incentive to make the business more efficient and profitable so they just take more for themselves."

For the economy as a whole, energy may be too much of a good thing. Roland Nash, head of research at Moscow investment bank Renaissance Capital, warns that over-reliance on booming energy prices may hold back Russia's otherwise strong prospects.: "The economic crisis was just the wrong length of time: long enough to undermine small companies and the emerging middle class but too short to force government into reform. Russia needs to diversify away from oil and gas."

For now though, Gazprom is in the vanguard of Russia's new energy imperialism. British consumers too may see more of "the big G". Gazprom Marketing and Trading, its overseas arm, sells gas to commercial clients such as Chelsea football club and has a target of expanding its UK market share from 2% to 10%. Kupriyanov also reveals ambitions to sell to residential customers one day. "Yes, definitely," he says. "The British market offers ample opportunities of developing downstream operations – we appreciate the fact that it's a liberalised market and all of the infrastructure is in place."

Last time Gazprom made moves on the residential market – by exploring a takeover of Centrica – it prompted intense political suspicion and even the threat of a UK government veto. Now it hopes its softly-softly approach with commercial customers will ease fears. "You all thought there would be bear scratches on the gas pipes but the headlines cried wolf," says Kupriyanov. "Our entry to the UK market was exemplary."

A bigger factor in containing Europe's "Gazpromophobia" is likely to be whether the company cuts off any more pipelines. Will there be another crisis this winter? "We have good reason to believe crisis can be averted but it is never easy to give a 100% guarantee," concludes the man from Gazprom.