Tag: Morocco
Religion as power
Carnegie Endowment for International Peace hosted a panel discussion March 19 about religious authority in the Middle East and its implications for US policy. The panel included Courtney Freer, Research Fellow at Middle East Center, Annele Sheline, Zwan Postdoctoral Fellow, Sharan Grewal, Fellow at Center for Middle East Policy, andYusuf Sarfati, Director of the Middle Eastern and South Asian Minor Program.
The following cases are a synopsis of studies showing the magnitude of religious authority in different Middle Eastern countries.
Turkey
Sarfati pointed out that though a layman, President Erdogan some Turks see him as commanding religious authority. His authority comes from a combination of his public performance of piety, charisma and his status as a graduate of an Islamic school, in addition to being leader of an Islamist party. At the same time, there is a wide segment of the society that does not trust him as a religious authority. There are many other outstanding religious figures who are not as well ranked as Erdogan but have gained trust as religious authorities such as Mehmet Gomez and Hayrettin Karaman, among others. Fethullah Gulen and Abu-Bakar Al Baghdadi are the least trusted and generally viewed negatively in Turkey. Unlike many other Muslim countries, religious authority in Turkey is confined to its borders and not influenced by religious authorities in Arab countries. Many Turks don’t approve religious leaders and show skepticism of religious authority. Official Islam and political Islam overlap. People believe in Islamism and support a state religion as two sides of the same coin.
Tunisia
Founded by Sheik Rachid Ghannouschi, Grewal argues that the Islamic party the Ennahda (Renaissance) has been the primary Islamic political party in Tunisia. It became a dominant political player after 2011, performing well in elections, but it is not widely seen as an authority in religious matters. Despite their linkage with and dependence on the Tunisian state, traditional religious authorities like the grand mufti and Imam of Zaytuna mosque have substantial popularity. Surprisingly, the Islamic State continues to wield considerable religious authority in Tunisia, even while domestic Salafi-Jihadis groups like Ansar-al Sharia do not.
Morocco
Sheline stated that the King Mohammed VI is considered the highest religious authority. This status reflects a taboo against questioning his authority as the Commander of Faithful. He has succeeded in establishing his religious credentials through state messaging. The King’s authority goes beyond the religious sphere. He bolsters Morocco´s soft power and strengthens strategic relationships with key allies. In the context of the war on terror, a demonstrable heritage of moderate Islam is a valuable commodity. Following 9/11 the government supported Sufism in hopes that it could serve as a counterbalance to extremist forms of Salafism. The palace’s promotion of moderation contributes to its liberalizing image while maintaining security and stability, making it an ideal partner in the eyes of the US and EU. The US should support the King’s initiative to promote moderate Islam without making it public, as that could undermine his religious standing.
Saudi Arabia
Freer asserted the most trusted religious leaders are among the official religious establishment. Shaykh Saad Bin Nasser Al-Shethri, who serves as advisor to the Crown Prince Mohamed bin Salman is the most trusted. Also, Abdullah Al-Sheikh, the head of the Permanent Committee for Islamic Research and Issuing Fatwas, enjoys wide religious authority. Consensus exists among nationals and non-nationals due in part to the official state religious narrative. It holds considerable sway in the religious sector and society more broadly. The more institutionalized indigenous religious influence is, the more likely constituents are to adhere to their authority. While in other Middle East states, religious groups have mobilized support through their provision of social services, the Saudis do not, because of the welfare system in place. The wealthy rentier status of Saudi Arabia negates the effects of income levels on opinions about religion and religious authority.
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Peace picks, January 29 – February 4
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- Modernizing Trade Rules: The TPP and Beyond | Monday, January 29 | 10:00am – 11:30am | Brookings Institution | Register here |
On January 29, the Center for East Asia Policy Studies will host a panel of experts to discuss the opportunities and challenges of disseminating TPP standards in two critical areas: the digital economy and internet governance, and competitive neutrality and state-owned enterprises. Experts from Japan and the United States will discuss strategies that each country can pursue in on-going or new trade negotiations to advance TPP rules in these critical areas. Featuring panelists Tsuyoshi Kawase (Professor of Law at Sophia University), Maki Kunimatsu (Chief Policy Analyst at Mitsubishi UFJ Research), and Joshua P. Meltzer (Senior Fellow in Global Economy and Development at Brookings), and Amy Porges (Principal at Porges Trade Law PLLC), with moderator Mireya Solís (Co-Director of Center for East Asia Policy Studies Senior Fellow at Brookings).
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- Games and Gamesmanship: Unity and Stability at Pyeongchang | Monday, January 29 | 1:00pm – 2:30pm | Wilson Center | Register here |
When athletes from North and South Korea unite under one flag at the Pyeongchang Olympics, it will be more than a political statement. It may also pave the way for a new approach to deal with Pyongyang’s nuclear ambitions. Join us for a discussion on the history of sports diplomacy in the Korean Peninsula and the significance of the latest Olympic détente in dealing with Kim Jong-un’s regime. With speakers Jung H. Pak (Brookings Institution), Matthew Kroenig (Georgetown University), and Kang Choi (Asan Institute for Policy Studies).
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- Preventing Atrocities in the 21st Century | Tuesday, January 30 | 9:00am – 11:00am | U.S. Institute of Peace | Register here |
In recent decades we have seen new commitments to protect civilians from mass atrocities. Still, policymakers face obstacles. They may lack access to areas at risk, or leverage over possible perpetrators. So how can we translate political commitments into timely and effective practice? Is it possible to identify risk and prevent mass violence before it erupts? How can justice mechanisms help ensure accountability and prevent future mass violence? Join us on January 30 for a discussion on the state of atrocity prevention with leading experts. Featuring discussants Mô Bleeker (Special Envoy for Dealing with the Past and the Prevention of Atrocities, Swiss Federal Department of Foreign Affairs), Lawrence Woocher (Research Director, Simon-Skjodt Center for the Prevention of Genocide, U.S. Holocaust Memorial Museum), and Menachem Rosensaft (General Council, World Jewish Congress), with moderator Jonas Claes (Senior Program Officer, U.S. Institute of Peace). Opening remarks by Ambassador Martin Dahinden (Ambassador of Switzerland to the United States) and Carla Koppell (Vice President, Center for Applied Conflict Transformation, U.S. Institute of Peace).
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- On Refugee Integration and the Global Compact on Refugees: Lessons from Turkey | Tuesday, January 30 | 10:30am – 12:00pm | Brookings Institution | Register here |
The Center on the United States and Europe (CUSE) will host a panel discussion on Turkey’s experience with integrating roughly 3.5 million refugees and how that experience can inform the Compact. Izza Leghtas, senior advocate at Refugees International, will discuss the findings of her recent report, “I am only looking for my rights,” on the difficulties refugees face in accessing legal employment and the need for livelihood programs in Turkey’s urban centers. On the basis of his recently completed Syrian Barometer 2017, Murat Erdoğan, director of the Migration and Integration Research Center at the Turkish-German University in Istanbul, will reflect on the attitudes of the Turkish public toward refugee integration, as well as attitudes of the refugees themselves toward their host societies. Elizabeth Ferris, research professor at the Institute of Study of International Migration at Georgetown University, will remark on how Turkey’s experience could relate to the broader issues surrounding global refugee governance and inform the Comprehensive Refugee Response Framework. Kemal Kirişci, TÜSİAD senior fellow and director of the Turkey Project at Brookings, will moderate the discussion.
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- Broadcasting Change: Arabic Media as a Catalyst for Liberalism | Tuesday, January 30 | 12:00pm – 1:30pm | Hudson Institute | Register here |
Given the turmoil in the Middle East, liberals in Arabic-speaking countries have been routinely dismissed as too small in number to make a difference. Yet today, Arab liberals lead some of the largest regional media outlets, using their broadcasts to promote religious toleration and pluralism, civil society, gender equality, and rule of law. With the new National Security Strategy’s emphasis on “Competitive Engagement,” how can the United States work to bolster the efforts of these reformers in Arab media? Hudson Institute will host a discussion to assess the challenges to strengthening reformist media in the Arab World. The panel will consist of Joseph Braude, Senior Fellow at the Foreign Policy Research Institute and advisor at the Al-Mesbar Center for Research and Studies in Dubai; Ambassador Alberto Fernandez, President, Middle East Broadcasting Networks; Adam Garfinkle, Editor, The American Interest; Eric Brown, Senior Fellow, Hudson Institute. This event will be live streamed on Hudson’s homepage.
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- Taking Stock of the Transatlantic Relationship: Female Thought Leaders Reflect on 2017 | Wednesday, January 31 | 4:00pm – 5:15pm | Atlantic Council | Register here |
Please join the Atlantic Council and the Robert Bosch Foundation Alumni Association for a conversation with female thought leaders about the current state of the transatlantic relationship. This panel discussion will convene leading female voices from across the transatlantic policy community to reflect back on the past year, and discuss the future of NATO and US engagement in Europe, how the transatlantic partnership must adapt to today’s strategic environment, and the importance of female leadership in foreign policy and international security. This expert discussion featuring female leaders in transatlantic foreign and security policy is the inaugural event of the Atlantic Council’s Global Diversity and Inclusion Initiative. A conversation with Amb. Kristen Silverberg (Managing Director,
Institute of International Finance; Former US Ambassador to the European Union), Julianne Smith (Senior Fellow and Director, Transatlantic Security Program, Center for a New American Security), and Christine Wormuth (Director, Adrienne Arsht Center for Resilience, Atlantic Council; Former Undersecretary of Defense for Policy, US Department of Defense). Moderated by Sally Painter (Chief Operating Officer, Blue Star Strategies; Senior Advisor, Future Europe Initiative, Atlantic Council). A networking reception will follow the event.
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- Changing Dynamics in the Gulf: A Conversation with Qatari Deputy Prime Minister and Foreign Minister Mohammed bin Abdulrahman Al Thani| Thursday, February 1 | 9:00am – 10:00am | American Enterprise Institute | Register here |
Once an important mechanism for cooperation, the Gulf Cooperation Council (GCC) since June 2017 has been fractured with one member state, Qatar, the focus of a diplomatic and economic blockade spearheaded by Saudi Arabia and the United Arab Emirates. A Kuwaiti-led mediation process has not resolved the crisis, at a time when Russia’s reemergence in the Middle East, the growing influence of disinformation campaigns, and Iran’s ongoing malign activities all suggest that deeper challenges lie ahead. Who benefits from this standoff between traditional American allies? What are the implications of a continuing crisis in the GCC for the region and for US partnerships? Join AEI’s Andrew Bowen and Deputy Prime Minister and Minister of Foreign Affairs of the State of Qatar HE Mohammed bin Abdulrahman Al Thani as they discuss US-Qatar relations and the challenges confronting the Gulf region. With introductory remarks by Danielle Pletka of AEI.
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- Protests in North Africa: Parallels and Prospects | Thursday, February 1 | 12:00pm – 1:30pm | Middle East Institute | Register here |
Seven years after the outbreak of the Arab Spring in North Africa, demonstrators are taking to the streets again in Tunisia and Morocco. How do these protests compare with each other, and to previous waves of uprisings across the Arab World since 2011? How are these activists starting new conversations around social, economic, and political issues in their countries? The Middle East Institute is pleased to host a panel discussion examining the social and economic drivers behind these demonstrations, as well as prospects for resolving these inequities. MEI’s senior vice president for policy research and programs, Paul Salem, will moderate a discussion with Wafa Ben Hassine (MENA policy counsel for Access Now, via Skype), Intissar Fakir (editor-in-chief of Sada, Carnegie Endowment for International Peace), and Dokhi Fassihian (senior program manager, Middle East and North Africa, Freedom House) to discuss these issues.
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- Iranian Public Opinion after the Protests | Friday, February 2 | 12:00pm – 1:30pm | Atlantic Council | Register here |
The Atlantic Council’s Future of Iran Initiative and the Center for International and Security Studies at Maryland invite you to a panel discussion on Iranian public opinion in the aftermath of recent protests. The event will present new public opinion data gathered since demonstrations broke out in more than 100 Iranian cities and towns in late December protesting poor economic conditions, Iran’s interventions abroad, and domestic political constraints. The event will also relate Iranian attitudes on political and economic issues to a broader set of regional and international issues, including Iran’s regional influence, Iranian relations with the West, and the Iranian nuclear deal. A conversation with Kelsey Davenport (Director for Nonproliferation, Arms Control Association), Dr. Ebrahim Mohseni (Research Scholar, Center for International and Security Studies, University of Maryland), and Adnan Tabatabai (co-founder and CEO, Center for Applied Research in Partnership with the Orient). Moderated by Barbara Slavin (Director, Future of Iran Initiative, Atlantic Council).
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How low can he go?
Much lower I fear. While he has given a couple of half-sane, scripted speeches prepared with Chief of Staff Kelly’s approval, President Trump is still doing what he can to offend as soon as he is off the Teleprompter. Those who don’t approve of him are at this point about 60% of Americans and far higher percentages in most other countries. Russia and Israel are the exceptions. He is still launching ferocious attacks on the American media, retweeting anti-Semitic and racist tweeps, and slamming both Senate supporters and antagonists.
With August waning and an early Labor Day (September 4) looming in the US, prospects are for a difficult fall. The first item of business in the US Congress will be raising the debt ceiling and passing some sort of budget resolution. Trump has made that more difficult by insisting that the budget include money for the wall on the border he has promised the Mexicans would pay for. That’s a non-starter for the Democrats, who have some say in the Senate because 60 votes are needed on the budget issues. Tax reform, which so far means a big tax cut to businesses like Trump’s own, will have to wait. Never mind the promised trillion-dollar infrastructure program.
Trump wants the budget resolved by eliminating the filibuster and allowing bills to pass in the Senate with a simple majority. That is a proposition even more controversial than the wall, so he is publicly hounding Senate Majority leader McConnell into changing Senate rules to allow it. That’s not a way to make friends in the Senate, but so long as the Republicans control the House Trump can be sure it won’t impeach him (which has to precede sending him to the Senate for trial).
While America tries to sort out its internal political mess, the rest of the world is trying to make do without much clarity from Washington. In Asia, China is seizing the initiative on trade and finance, pushing its “belt and road” projects all the way to the Middle East and Africa. North Korea hasn’t tested a missile lately, and there seem to be talks about talks going on behind the scenes with the US, but the prospects of denuclearizing Pyongyang have dropped to zero.
In the Middle East, Syria’s President Assad is still advancing, as are the US-supported, Kurdish-led forces trying to take Raqqa from the Islamic State. The Syrian opposition is being pressed by the UN and everyone else to drop its demand that Assad step aside. Civilian casualties from American and other air attacks in the battle for Raqqa are mounting.
Defense Secretary Mattis is promising Turkey the US will help fight against Kurdish rebels inside Turkey and in Iraq, even as it supports their affiliates in Syria. That’s going to be a hard circle to square. Iraq is also making progress against the Islamic State, but Baghdad still hasn’t convinced its own Kurdistan to call off its independence referendum, scheduled for September 25 but increasingly in doubt.
Jared Kushner is plugging away at the Israel/Palestine issues, in visits to Ramallah, Cairo and Jerusalem. No one is expecting much to come of his efforts. The State Department has refused to reiterate US commitment to a two-state solution, which (as Matt Duss pointed out on Twitter) represents the single largest concession the Palestinians have made to date. Not that anyone had much doubt about which side the Trump Administration was on. We’ll presumably now be treated to the spectacle of Israel and the US proposing various confidence-building measures meant to make life and the economy more palatable for the occupied territories on the West Bank, while Jewish settlements expand and kill off any remaining hope for a two-state solution.
This is enabled in part by some Arab states coming to the conclusion that they care more about countering Iran than supporting the Palestinians. The Saudis and Emiratis seem prepared to collaborate with Israel against Iran, even if Qatar, Iraq, and Oman are headed in the opposite direction. Yemen no longer counts, since it is being obliterated in the Gulf-led war against the Houthi rebellion. Libya, Tunisia, and Morocco are likewise out of the game for now. Egypt and Jordan have made their peace with Israel and have no choice but to keep it.
Trump is increasingly marginalized from all these developments. Weakness at home leads to weakness abroad. His only major push on foreign policy lately has been the renewal and expansion of the American military push in Afghanistan. This allegedly new strategy closely resembles his predecessor’s effort to bring the Taliban to the negotiating table. Like Obama, Trump doesn’t want to be blamed for losing Afghanistan, even if it proves impossible to keep his promise to win there.
We can still sink lower: North Korea could test another missile, the Palestinians could tell Kushner where to go, Trump could renounce the Iran nuclear deal, and the country’s long recovery from the financial crisis of 2007/8 could end. But most of all: we could continue to fail to deal with a president who is unqualified, mean-spirited, incompetent, and divisive. Let’s hope Special Counsel Mueller comes up with something compelling, sooner rather than later.
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Peace picks, November 14 – 18
- For 130 Million People, A Need for Longer-Term Relief | Monday, October 14th | 9.30am – 11am | US Institute of Peace | click HERE to register
Many violent conflicts have become chronic. In order to build sustainable peace, humanitarian relief must also contribute to or complement long-term development goals. While discussions at the World Humanitarian Summit raised meaningful questions about how humanitarian and development sectors are responding to protracted conflict, institutions are still trying to improve the response even as the needs grow more urgent.
This Conflict Prevention and Resolution Forum event will look at how the short-term needs of vulnerable communities, particularly the victims of war, can be met in ways that contribute to longer-term peacebuilding, development and rebuilding.
Participants Include:
Carla Koppell – Vice President, Center for Applied Conflict Transformation, U.S. Institute of Peace
Matt McGuire – U.S. Executive Director, World Bank
Michael Talhami – Senior Water and Shelter (WATHAB) advisor, International Committee of the Red Cross (Jordan)
Colin Bruce – Director, Africa Regional Integration, World Bank
Jeff Helsing – Associate Vice President, Center for Applied Conflict Transformation, U. S. Institute of Peace
- Governing Uncertainty: Governance in Tunisia Following Authoritarian Breakdown| Monday, November 14th | 12.30pm – 2pm | Johns Hopkins SAIS | click HERE to register
The immediate period between the ousting of authoritarian president Ben Ali and the first post-uprising elections in Tunisia in 2011 raises many questions. Who was really calling the shots, and what was the impact of their decisions? This presentation will address some of these questions based on research carried out in Tunisia between 2013-2015.
The discussion will be given by Ms. Sabina Henneberg, PhD candidate at Johns Hopkins SAIS. Sabina’s doctoral dissertation is on the current political transformations in North Africa. She is the author of several articles and papers on Tunisia.
- Troubling the Political: Women in the Jordanian Day-Waged Labor Movement | Monday, November 14th | 12.30pm – 2pm | Georgetown University | click HERE to register
The Jordanian Day-Waged Labor Movement (DWLM) played a central role in the Jordanian Popular Movement (al-Hirak al-Sha’bi al-Urduni), commonly referred to as the Hirak, from 2011 to the end of 2012. The large number of women who were active and took on leading roles in the DWLM contrasts with the absence women’s organizations in other aspects of the Hirak. Drawing on extensive research in Jordan, Professor Sara Ababneh argues that the DWLM was able to attract so many women because it developed a discourse and flexible structure that understood women to be embedded within communities and prioritized their economic needs. By studying this discourse and structure, it is possible to learn important lessons about gender inclusive political and institutional reform.
Dr. Sara Ababneh is an Assistant Professor for the Center for Strategic Studies at the University of Jordan. She is currently a visiting fellow at Center for the Study of Social Difference at Columbia University.
- A Conversation With UN Deputy Secretary General Jan Eliasson | Monday, November 14th | 5pm – 6pm | Carnegie Endowment for International Peace | click HERE to register
Join the Carnegie Endowment for International Peace for a conversation with UN Deputy Secretary General Jan Eliasson on the future of the United Nations and multilateralism in a changing global landscape. As he prepares to step down from a forty year long career in diplomacy and the UN, DSG Eliasson will reflect on the challenges facing the international community and the opportunities for global cooperation. Carnegie President William J. Burns will introduce and moderate the conversation.
- What Does the World Expect of President-elect Donald Trump? | Tuesday, November 15th | 11am – 12.30pm | Wilson Center | click HERE to register
The next U.S. Administration faces a complicated, volatile world. Join us for spirited conversation about the foreign policy expectations and challenges confronting the next President of the United States with distinguished Wilson Center experts on Russia, China, the Middle East, Latin America and more.
Participants include:
Jane Harman – Director, President and CEO, Wilson Center
Cynthia J. Arnson – Director, Latin American Program
Robert S. Litwak – Vice President for Scholars and Academic Relations and Director, International Security Studies
Aaron David Miller – Vice President for New Initiatives and Distinguished Scholar
Matthew Rojansky – Director, Kennan Institute
Duncan Wood – Director, Mexico Institute
- The Battle for Pakistan: The Fight Against Terrorism and Militancy | Tuesday, November 15th | 11.30am | Atlantic Council | click HERE to register
Please join the Atlantic Council for an assessment of Pakistan’s National Action Plan by a Distinguished Fellow of the South Asia Center, Mr. Shuja Nawaz. Mr. Nawaz’s assessment is based on a nine-month study for the United States Institute of Peace. A degree of cautious optimism about Pakistan’s future is warranted, but greater efforts are needed to fundamentally change the landscape that nurtures terrorism and militancy in Pakistan today. In this discussion, Mr. Nawaz will suggest ways in which the National Action Plan can be improved and reviewed by the government and parliament of Pakistan such as setting clear benchmarks and improving coordination among the provinces. Dr. Moeed Yusuf, Associate Vice President of the Asia Center at the United States Institute of Peace; and Dr. Thomas F. Lynch III, Distinguished Research Fellow at the Institute of National Strategic Studies at National Defense University, will discuss the current state of Pakistan’s efforts against terrorism and militancy. The event will be moderated by Dr. Bharath Gopalaswamy, director of the South Asia Center at the Atlantic Council. The event is co-hosted with the United States Institute of Peace.
A conversation with:
Mr. Shuja Nawaz– Distinguished Fellow, South Asia Center, Atlantic Council
Dr. Moeed Yusuf – Associate Vice President of Asia Center, United States Institute of Peace
Dr. Thomas F. Lynch III – Distinguished Research Fellow, Institute of National Strategic Studies, National Defense University
- 70th Annual Middle East Institute Conference | Wednesday, November 16th | 9am – 5pm| Middle East Institute | click HERE to register
Please join MEI as we celebrate 70 years of history at our 70th Annual Conference which will convene prominent Middle Eastern and American experts and foreign policy practitioners for four panel conversations covering the prevailing challenges facing the new U.S. administration as it sets its Middle East agenda.
- Morocco’s Fight With Violent Extremism | Wednesday, November 16th | 12pm – 1.20pm| Hudson Institute | click HERE to register
The Kingdom of Morocco is undertaking a comprehensive effort to tackle violent Islamism by combining traditional security measures with development initiatives, governance reform, and education. One of the leaders in this fight is Dr. Ahmed Abbadi, the president of the League of Mohammedan Scholars. The League is a body of religious scholars charged by King Mohammed VI with countering and dismantling the ideology of Islamic State and other radical movements. On November 16, Dr. Abbadi will speak at Hudson Institute about Morocco’s experiences in the fight against Islamist extremism, including the importance of ideology, youth outreach, and education.
- A Debate on Pakistan: What Future Role for America? | Wednesday, November 16th | 1.30pm – 3pm| United States Institute of Peace | click HERE to register
The United States’ assistance has helped Pakistan address critical domestic challenges, notably in energy, infrastructure, and counter-terrorism. Still some scholars argue this aid has been counterproductive. U.S. legislators effectively blocked a loan to help Pakistan buy F-16 fighter jets this year, saying Pakistani authorities are not doing enough to curtail Afghan insurgents from using Pakistan as a safe haven.
As relations have deteriorated, some scholars increasingly have raised questions on the utility and viability of assistance to Pakistan. The November 16 USIP debate will examine that question, as well as challenges for the next U.S. president in addressing the countries’ relationship, and Pakistan’s future as a U.S. partner. Speakers will include longtime South Asia scholar and policy analyst Lisa Curtis; former Pakistani ambassador to the United States Husain Haqqani; former Pakistan central bank governor Ishrat Husain; and Ambassador Robin Raphel, who served as the United States’ first assistant secretary of state for South and Central Asia and U.S. Coordinator for Non-Military Assistance to Pakistan.
- The United States, the Next President, and the Middle East: A View From Israel | Wednesday, November 16th | 4pm – 5pm| Wilson Center | click HERE to register
Please join us as former Deputy Minister of Defense Ephraim Sneh shares his perspective on a range of issues related to Israel’s national security, the civil war in Syria, the Israeli-Palestinian conflict, and the nuclear agreement with Iran. As a long-time observer and participant in the U.S.-Israeli relationship, Mr. Sneh will also offer his analysis of the U.S. Presidential elections and the challenges that will face the new administration.
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The trouble still brewing
Yesterday’s discussion at SAIS of Learning to Live with Cheaper Oil : Policy Adjustment in MENA and CCA Oil-Exporting Countries raised serious issues. Oil prices are now expected to remain “lower longer,” as IMF deputy managing director Min Zhu put it. While contributing to global growth, the price decline is posing serious economic and governance challenges to the rentier states of the region and their relatively poor dependent cousins.
The 2014 oil price decline resulted from three main factors: increased production of tight oil and gas, slackening demand (especially due to economic slowdown in China and Russia) and increased efficiency. While prices have risen sharply from their lows early this year, the IMF expects them to remain well below their previous peak, with only gradual increases over the next five years or so to around $75 per barrel.
Some efficiency gains have already been erased, as oil prices have risen from their lows at the sharpest rate ever, even if they are still far off their peak. The shale revolution is not going away, even if many less productive wells have been shut. But larger ones are still producing. Much of the shut-in capacity will return as prices rise again.
This puts the oil producers in a difficult and long-lasting bind. The immediate impact was on their foreign exchange rate reserves, which are down dramatically. Growth is slowing. Budgets are being cut. The oil producers cannot continue to subsidize food and energy prices as well as avoid taxing their populations.
Sharply cutting their budgets however will not be a sufficient policy response, especially as it will have growth-reducing effects like limiting bank credit. The oil producers will need to undertake structural reforms to generate private sector growth that has heretofore been lacking. This is basically a good thing. Low oil prices will force producers to do what they’ve known for a long time they should have been doing, including cutting government jobs, reorienting it towards revenue collection rather than distribution and privatizing bloated state-owned enterprises.
But it is still difficult to picture how the oil producers will generate sufficient jobs to meet the needs of their bulging youth populations. If they somehow manage it, the social contract that has enabled the often non-democratic regimes to claim legitimacy will need revision, with citizens receiving less and asked to provide much more. Governing institutions will be under enormous strain as they try t o learn to collect taxes even as they reduce public services. Legitimacy will be in question. This is a recipe for trouble.
The fiscal squeeze will affect not only the oil producers themselves but also the states of the region to which they provide support, either in the form of aid or remittances. The eventual political consequences could be dramatic not only for the Gulf but also for Egypt, Jordan, Morocco, Pakistan and others. We have not seen the end of consequences “longer lower” will generate.
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North Africa’s stumbling transitions
On Wednesday, the International Institute for Strategic Studies (IISS) launched North Africa in Transition: The Struggle for Democracies and Institutions. The panel discussion included editor Ben Fishman, Haim Malka, contributing author and Senior Fellow and Deputy Director of the Middle East Program at the Center for Strategic and International Studies, and John Desrocher, Deputy Assistant Secretary of State for Egypt and Maghreb Affairs. Mark Fitzpatrick, Executive Director of IISS, moderated.
Fishman kicked off by explaining the premise of North Africa in Transition. He aimed to show the differences between the states of the Maghreb, including Morocco, Tunisia, Algeria, and Libya, after the 2011 uprisings. Institution building should be the key lesson learned from the Arab Spring. The US should devote more time to North Africa. Fishman focused in particular on Libya, where he thought the US should be more assertive, interacting with the Libyan government, coordinating with the international community, and empowering local governments in Libya by implementing decentralization.
Malka urged more investment in the Maghreb, which requires greater understanding of regional politics, economics, and society. Malka predicts 2016 will be a turbulent year for the region. He explained four factors that brought him to this conclusion:
- The continued appeal of radical groups. Radical ideology entices youth as it presents solutions to them that they have never been offered before. The counterterrorism response has contributed to increased radicalization. With intelligence communities remaining uncoordinated and erratic arrests, radicalization has spread even more throughout the region.
- Failure to address economic and social grievances. Reforms of privatization, banking laws, etc., are too slow and prolonging the challenges countries face.
- The four main states are shaky. They lack strong institutions.
- The 2011 uprisings did not satisfactorily change the status quo for most people. For instance, in Morocco the monarch contributed to stabilizing the country by instituting constitutional reforms, but failed to grapple with socio-economic issues. Injustice, favoritism, and corruption endure.
Desrocher believes the US has to examine each country’s case separately and carefully. Morocco has a high rate of youth unemployment, relies mainly on Europe for trade, and worries about extremism. Tunisia has its internal economic challenges and unmet expectations of the Arab Spring. Washington wants to build partnerships with the Maghreb by assisting with security issues and boosting economies.
As its instability makes it difficult for the other regional countries to accomplish their goals, Desrocher identified the Libya as key to stability in the Maghreb, . He nevertheless has a positive outlook and believes much has been accomplished in the past four months. He thinks that there are fewer divisions among the international and regional partners on how to address the problems in Libya.
Malka also expressed an overall positive sentiment. Popular pressure on governments now carries significant weight. People in the Maghreb are willing to express their grievances in a public manner and to the governing body. Malka’s advice regarding US policy in the Maghreb is to take the long-term approach and not to overact to any small sign of instability. Change in the region will ultimately take time and much effort.
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