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Realizing a Nation’s The Future of Everything But A

Potential Democracy in the Game


Middle East
Caryle Murphy Daniel Brumberg Noam Schimmel

Dr. Ahmadinejad:
How I Stopped Worrying And
Learned To Live With The Bomb
By
Amar Toor

Issue 1549, 15 March 2010


Editorial

Cover

Established in 1987 by
Prince Ahmad Bin Salman Bin Abdel Aziz

Established by
Hisham and Mohamad Ali Hafez

Editor-in-Chief
ADEL Al TORAIFI Dear Readers,

Managing Director
W elcome to The Majalla Digital, this week our issue brings
to you an analysis of Ahmadinejad’s nuclear intentions.
Amar Toor’s comparison of Ahmadinejad and Stanley Kubrik’s
TARIK ALGAIN infamous character Dr. Strangelove, provides insight in to the
personality of the man behind Iranian nuclear ambitions in this light-
hearted yet informative feature. In addition to this feature, Pulitzer
Prize winner Caryle Murphy evaluates the reform and expansion
of the Saudi education system as a means of combating socio-
economic challenges in her article Realizing a Nation’s Potential.
Published by
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Issue 1549 05
Contents
08 Geopolitics
Realizing a Nation’s Potential

11 In Brief
Around The World
Quotes Of The Week
Magazine Round Up
Letters

18 Features
Dr. Ahmadinejad:
How I Stopped Worrying And
Learned To Live With The Bomb

25 News Analysis
Maliki leads the Iraqi parliamentary race

28 Ideas
Everything But A Game

THE MAJALLA EDITORIAL TEAM


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Cairo Bureau Chief


Ahmed Ayoub
Editors
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15 March, 2010 06
33 33 People
Interview
The Future of Democracy in the
Issue 1549,
Middle East 15 March 2010
Profile
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41 Economics
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28 58 The Political Essay


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Issue 1549 07
Geopolitics

Realizing a Nation’s Potential


The reform and expansion of the Saudi education system is a crucial endeavour to address the Kingdom’s
social, demographic and economic long-term challenges. It is no easy task, and to achieve it a three fold recipe
is required—strong leadership, patience, and persistence.

S itting in his spacious Riyadh office,


Khalid Al Khudair smiled as he recalled
how “everyone laughed” when he
who has been in education for 30 years and
served as Al Yamamah’s first president, argues
that the current system, rather than being
started building Al Yamamah University renovated, should be rebuilt from the ground
on the desert outskirts of this city. “Too far up. Labor Minister Ghazi Al Gosaibi called Al
out,” people said. Then, the first crop of 126 Eisa’s book, which was published in Lebanon
students plummeted to 40 in just one semester and not available in bookstores here, “the most
because many could not cope with the course important book talking about a public issue
work. The new university was “too hard,” within the past two decades.” Al Gosaibi also
people said. But Al Khudair persevered. Caryle Murphy wrote that resistance to education reform is due
Today, Al Yamamah has 1,400 students— to “strong ties between the prevailing values
decade ago, Saudi Arabia had only eight public
half of them women—and is recognized as and the education system,” which creates the
universities. Now there are 26, as well as 8
one of the kingdom’s most innovative and impression “that any attempt at educational
privately run universities. And 70,000 Saudis
forward-looking private universities. Still, change is an assault on the constant values
are now studying abroad on government
critics remain. They send Al Khudair emails of society.” This connection is even stronger
scholarships.
and text messages complaining that he is when it comes to educating women and girls.
spreading harmful “liberal” ideas among Here, the trends all point in one, revolutionary
Many Saudis appreciated the need for
Saudi youth. New acquaintances sometimes direction: Saudi females are getting more and
education reform decades ago. But this need
turn cold and distant when they discover that more educated every day. Today, women make
became more urgent after the Sept. 11, 2001
Al Khudair is Al Yamamah’s founder. The up more than 58 % of university students.
terrorist attacks on the United States carried
middle-aged businessman is not perturbed by
out by 19 suicide hijackers, 15 of them Saudi.
the flak because he sees himself on an historic But more needs to be done, according to a bold
This gave impetus to the efforts of those who
mission. “If we go back to our Islamic history, new report by Mona Al Munajjed, a sociologist
want to broaden the horizons of Saudi youth
we created a lot of things,” he said. “I think we and senior advisor with Booz & Company’s
by upgrading education. Mohammed Rasheed,
have to be part of the world. We have smart Ideation Center in Riyadh. As Al Munajjed
who served as education minister from 1995
people….I want my students to think they can writes in “Women’s Education in Saudi
to 2005, was one of them. He is proud, he
have the Nobel Prize one day.” Arabia, The Way Forward,” the government
said in an interview, of what he managed to
needs “to formulate an educational reform
accomplish: Getting girls schools put under
Al Yamamah’s success in such a short time—it strategy for young women that includes major
the same ministry as boys, for example, and
opened in 2004—is evidence of the thirst for structural changes in the school system and
modernizing math and science curriculums.
better education opportunities in this oil-rich that will respond to the demands and priorities
But all too often, Rasheed said, his attempted
kingdom. In the last decade, but particularly of a dynamic society.” The curriculum at
reforms ran into resistance from conservatives
since King Abdullah bin Abdul Aziz ascended girls’ schools through the secondary level is
who feared that change would dilute the
to the throne in 2005, there has been a “dominated by religious studies and Arabic,”
religious component of education. They saw
growing realization among policy-makers the report stated. And at university, the fields
reform as dangerous appeasement of the West,
that Saudi Arabia must revamp and expand of study open to women “are limited”, and
especially the United States. When Rasheed
its entire education system if it is going to “do not correspond to the needs of the labor
campaigned for replacing rote memorization
meet the kingdom’s long-term demographic market.” “We have to upgrade ourselves, we
with a more interactive teaching method, the
and economic challenges. Those challenges women,” Al Munajjed said in an interview.
kingdom’s 400,000 K-12 teachers objected,
include a youth boom: About 70 percent of “We have to be aware of what’s happening
he recalled, because “they were not used to
the country’s 22 million citizens are under around us.” Most importantly, she added,
it.” Even top officials in his own ministry
30. They include high unemployment rates— “we have to differentiate between the local
“would agree with me” on new initiatives
almost 7 percent among men and 25 percent customs and traditions, and religion. There
“but then I found out they were implementing
among women. Moreover, if Saudi Arabia is is too much confusion between them.”
something different from what I wanted.”
going to successfully diversify its economy    
away from near-total dependence on oil, as Sorting out that confusion will be no easy
This resistance, which stems from a religious
well as its dependence on foreign labor— matter; Which is why strong leadership, along
culture suspicious of any change, is one of
which was 51 percent of the nation’s total work with mountains of patience and persistence, is
three major obstacles to improving the Saudi
force in 2007—then it has to develop its own needed to bring Saudi education up to its full
education system, according to Ahmad Al
people into skilled, educated workers. The potential.
Eisa, author of the 2009 book, "Education
king has made education a top priority; 26
Reform in the Kingdom." The lack of a
percent of the national budget is now devoted
detailed vision of education reform from the
to this sector. In 2009, that amounted to Pulitzer Prize Winner in Journalism in
political leadership, and the highly centralized
$32.5 billion. A good deal of that money has 1991, is an independent journalist based
structure of education also are blocking
gone towards expanding higher education. A
effective reform, his book states. Al Eisa, in Riyadh.

15 March, 2010 08
Issue 1549 09
In Brief
Around The World Quotes Of The Week Magazine Round Up Letters

US - Iran conflict moves to Afghanistan


The escalating American-Iranian Afghanistan. The visit coincides largest operation since the US-led
tensions have recently displayed with the Iranian President's invasion of Afghanistan in late
the potential to involve not preparations to visit Afghanistan 2001.
only allegations of Tehran's in order to meet with his Afghani
interference in Iraq's affairs, counterpart, President Hamid Consequently, Ahmadinejad's
but also a new confrontation in Karzai. However, Ahmadinejad expected visit Afghanistan is
Afghanistan. In recent statements, has decided — after Gates' visit— viewed by analysts as an attempt
The U.S. Secretary of Defense to delay the visit to the second to fortify the already strong
Robert Gates has accused Iran of half of March. Iranian-Afghani relations and
supporting the Taliban movement. establish Iranian presence in the
The U.S has launched the region to highlight the American
"Iran is playing a double sided operation "Muashtarak" aided failure in dealing with Taliban.
game in trying to undermine NATO forces against the city of This step is also traced back to
the Afghani government in Marja in the southern Helmand the strong economic ties between
addition to U.S. and NATO province as part of its war on Iran and Afghanistan, which are
efforts by helping Taliban," Taliban. The operation started under threat from the American
Gates said during a recent visit to on February 13, to become the presence.

Issue 1549 11
In Brief - Around The World

Around The World

4
7

3 Afghanistan
The latest bomb attacks in the
1 Thailand southern Afghan city of Kandahar
Army reinforcements were rushed were a warning to US and Nato
into Thailand's capital as tens of forces, the Taliban say. A Taliban
thousands of anti-government spokesman said the attacks were
demonstrators marched Monday in response to a planned major
on a key military headquarters offensive by international forces
demanding that the government against militants in the region. At
dissolve Parliament. Some 100,000 least 35 people were killed and some
Red Shirt protesters who have been 57 injured in the blasts in Kandahar,
camped out along a boulevard in Afghanistan's third largest city.
the old part of Bangkok have given The main target appeared to be
Prime Minister Abhisit Vejjajiva a Kandahar's prison, officials said,
noon deadline to meet their demand though no prisoners escaped.
for new elections.
4 Belgium
2 Saudi Arabia
The euro-zone has agreed a
The official Saudi Press Agency multibillion-euro bailout for Greece
as part of a package to shore up the
5 North Korea
(SPA) denied reports that Riyadh had
agreed during talks with Mr. Gates, single currency after weeks of crisis. North Korea has internally decided to
to influence China to support a new Senior sources in Brussels said that return to long-stalled six-nation talks
round of sanctions against Iran over Berlin had bowed to the bailout on its nuclear arms activities in early
its nuclear program. “This issue agreement despite huge resistance April. The decision came as North
[about Iran sanctions] is not true, it in Germany and that the finance Korean leader Kim Jong-il reportedly
was not discussed during the visit of ministers of the "euro-zone" – the may soon visit China, amid growing
the Secretary of Defense who was in 16 member states including Greece pressure for Pyongyang, hit by U.N.
the kingdom recently,” said SPA citing who use the euro – are to finalize the sanctions after its nuclear test in May
an official source rescue package soon. 2009, to return to negotiations.

15 March, 2010 12
In Brief - Around The World

8 Iran
The US State Department
condemned Iran's persecution of
religious minorities following the
Iranian authorities' detention of
7 5 Baha'is and Christians in recent
3 months. Iranian authorities have
10 6
8 detained more than 45 Baha'is in
the last four months, and as many
2
as 60 Baha'is are imprisoned in Iran
on the basis of their religion beliefs,
1 the State Department said.
9

9 Sudan
The Justice and Equality Movement
(Jem), seen as the main rebel group
in sudan said the government and the
rebels were then supposed to agree
on a number of difficult issues before
signing the final agreement three
weeks later.

7 France
10 Israel
6 Jordan French voters scarred by economic
crisis dealt President a and his The Israeli cabinet approved the
Jordanian sources said King conservative leadership a stern construction of a NIS 1.35 billion
Abdullah has ordered his security blow by strongly favoring leftist barrier along the border with Egypt,
forces to bolster protection of the candidates in regional elections, designed to prevent terrorism, drug
Israeli embassy and diplomats in according to near-complete official smuggling, illegal infiltrations and
after a failed attack in January 2010. results.Some took their worries about human trafficking. “There is broad
They said authorities would bolster immigration and France's growing agreement that we need to protect
VIP protection and provide advanced Muslim population to the ballot box the State of Israel and its future as a
equipment for Israeli convoys. — helping the far right National Jewish and democratic state,” Prime
"The king believes that an attack on Front party upset predictions and Minister Binyamin Netanyahu said
the Israeli presence in Jordan has perform strongly in Sunday's first- during the cabinet discussion on the
strategic implications," a Jordanian round voting to choose regional matter about the need to keep out
source said. governments. infiltrators.

Issue 1549 13
In Brief - Quotes Of The Week Magazine Round Up

Quotes
Of The Week
"The responsibility for the
difficulties in China-US relations
does not lie with China; it is up to
the US to mend frayed relations"
China Foreign Minister
Yang Jiechi

1
"Any relationship is a two-
way street. It is fair to say that
our relations have just gone
through a difficult patch but we
are determined to re-establish a Magazine
Round Up
forward-looking relationship"
American State Department
spokesman PJ Crowley

"Netanyahu would have to make 1 Newsweek


some difficult decisions in order The Right Woman for the Job
to advance the Middle East peace
Europe’s indebted governments are on the
process" verge of being engulfed in a crisis which has
Defense Minister Ehud Barak exposed deep chasms within the European
Union. Economic uncertainty has sheared 10
percent off the euro’s value against the dollar
and unemployment and recession plagues the
16 countries which use the common currency.
This article proposes that Angela Merkel, is
the most capable person to lead the EU out
of such crisis. Yet the widely respected leader
of the world's seventh-most-competitive
economy, so far seems unwilling to assume
"This peace process cannot go the mantle of leadership. Newsweek’s Stefan
on forever, now is the time for Theil argues that if Germany overcomes its
decisions" grip on the status quo of inwardly looking
political leadership, Merkel may be able to
Palestinian negotiator
assume the role she is best suited to.
Saeb Erekat

15 March, 2010 14
2 TIME
The Iranian Riddle
This essay tackles the enigma of the Iranian Government. Author Parsi
accuses the government of seeking to confuse the outside world on
with regards to its goals. He further suggests that leaders in Tehran
are convinced that opacity will buy them security. Given this, Parsi
acknowledges that it is not surprising that the Obama administration
has struggled to find a successful Iran policy. Parsi argues that the
American government should display patience and avoid confrontation
in relations with Iran.

3 The New Yorker


No Credit Where Credit is Due
he New Yorker looks at Obama’s Treasury Secretary Timothy F. Geithner’s
financial stabilization policies to relieve banks of toxic assets and provide
relief for struggling homeowners. The author argues that such policies have
successfully contributed to the reversal of America’s economic crisis. Yet,
at the same time, taxpayers remain under-impressed by these policies and
the men in charge. This article provides an insight into why this may be and
includes interesting commentary from Geithner and others directly involved
in the financial recovery process.

Cover Of The Week


The Economist
Gendercide
Where have all the girls gone?
It is widely known that impoverished countries have unnaturally high
numbers of boys. The imminent catastrophic consequences of this
phenomenon are discussed in this article. One stark example is China, that
alone stands to have as many unmarried young men as the entire population
of young men in America. In 1990 Amartya Sen put the number of missing
females at 100 million and this articles proposes that the number is now
even higher. However, the article is not all bad news, it also recounts South
Korea’s success in reducing gendercide. The country’s social policies are
discussed in this article as an example of how countries such as China can
raise the value of girls and correct the gender imbalance.

Issue 1549 15
In Brief - Letters

Letters LAST ISSUE

Al Qaeda’s
Condolences
It is not unlikely that the
Who Will Have The Last Dance
Pakistani security agencies and
the U.S. are responsible for Turkey now needs a sweeping constitutional reform
recent bombings and in order to aimed at decentralization and democratization in the
justify the American presence country. These reforms have been delayed for too long,
in this region as well as to hence, the Justice and Development Party along with
distract the world's attention the Turkish Parliament have to push for these reforms
from acts of al Qaeda. during membership talks with the European Union.

Matteo Stendardo
Hussein Yasser

15 March, 2010 16
In Brief - Magazine Round Up

Issue 1549 15
Features

© getty images

15 March, 2010 18
18
Dr. Ahmadinejad:
How I Stopped Worrying
And Learned To Live
With The Bomb
By
Amar Toor

Issue 1549 19
Features

Dr. Ahmadinejad:
How I stopped worrying and learned to live with the Bomb
Amar Toor
There are significant parallels between Ahmadinejad and Kubrik’s most memorable character, Dr.
Strangelove. Dr. Strangelove was an extremely trigger-happy, suspiciously double-talking character that so
many in 1960s America feared—the same kind of characterization, in fact, that many in the Western media
have now branded upon Ahmadinejad. But is there really a madman lurking far beneath the placid surface
of Iran’s President?

Peter Sellers as Dr. Strangelove

S tanley Kubrick’s classic 1964 film


Dr. Strangelove: Or How I Learned
Republic has, justifiably or not, stepped
into the Soviet Union’s gargantuan shoes
or, as the case may be, David Lynches.
We read and construct media the same
to Stop Worrying and Love the Bomb as the newest nuclear threat to mankind. way any director, screenwriter, or
places some of the most morbid Cold novelist structures a narrative—namely,
War-era nuclear fears and attitudes under Strangelove in Iran around easily identifiable characters and
a searing satirical lens of stygian-black personalities.
comedy. Released at the zenith of Cold More than 40 years later, both the film
War frigidity and paranoia, Strangelove and its message, are as resonant in today’s Heads of state become leitmotif shorthand
tells the story of a rogue US general who, cavernous media amphitheatre as they for countries, populations, and policies.
having apparently lost his mind, suddenly were at the height of Cold War tensions. Barack Obama is as synonymous with
pulls the trigger on a fleet of nuclear As global attention centers ever more the US as Paul McCartney once was with
warheads aimed at Communist Russia, intensely on Iran and its apparent push The Beatles, as Charlton Heston was with
threatening global extinction. toward nuclear armament, the principle Ben-Hur, as Rush Limbaugh will forever
personages, as in any film or narrative be with Oxycontin. We impose cinematic
The nuclear hysteria upon which Kubrick structure, have gradually come into more and literary archetypes on to political
based his satirical film has certainly died refined relief. storyboards because character-driven
out, but many of the core nuclear fears at tales are, quite simply, more exciting to
which Kubrick takes such deft jabs are still And, as the line dividing media read.
very much at the center of international consumers from producers blurs to nearly
discourse. Nowhere are they more indiscernible levels of turbidity, we all The Iranian political landscape may be
pertinent than in Iran, where the Islamic become atomized Truffauts, Kubricks, complex and multifarious, but it’s not

15 March, 2010 20
Features
immune to our own storytelling devices. to love the bomb? While his plaintive eyebrows and densely
compact eyes render him low hanging fruit
Although the country’s political Dr. Ahmadinejad for political cartoonists, Ahmedinejad’s
architecture is actually anchored by a actual behavior, at first glance, seems
triumvirate of theocratic, presidential Everything about Ahmadinejad—the downright vanilla. This is a man, after
and militaristic constituent regimes, the man and the fable—speaks to relative all, who ascended to high political office
“face” of Iran, the singular personage normalcy; relative, obviously, because on the wings of plebeianism. His entire
that’s emerged as its representative actor, compared to other leaders of either campaign was built upon the premise
its foremost team captain, is, without perceived or real nuclear threats, he that he was just “one of the guys,” a
question, President Ahmadinejad. comes across as, well…tame. man with the same blue-collar origins
of the working class Iranians to whom
But what kind of character is he? Where he so openly pandered during his 2005
does he fit in the current political drama
that we as media consumers have
There doesn't seem presidential election.

constructed for ourselves? What role does to be any traces of He further strengthened his populist
he fulfill? Does he have the onscreen credo and symbolically reinforced his
charisma and James Dean-like swagger inflated egomaniacal commitment to the conservative working
to actually carry our nuclear film? Or is
he more of a niche character, deigned to
nucleotides in class by famously removing the opulent
furniture in the presidential palace and
play a small, predictable role but do it to Ahmadinejad’s replacing it with more acceptably modest
absolute perfection, à la Jerry Orbach? pieces. His wife still packs him lunch
DNA every day. Calling his suits “modest” is
Is he, perhaps, the Dr. Strangelove of like calling Rembrandt “talented.” Cut
the 21st century? out of a martinet’s cloth, the staunchly
conservative Ahmadinejad represented
Though he makes only a handful of North Korean President Kim Jong-Il is, an orthogonal right turn from the socially
appearances onscreen, Kubrick’s most by most accounts, certifiably insane. Both moderate regimes that preceded him.
memorable character, by far, is the his promethean ego and his diminutive
film’s namesake—the deranged (and embonpoint suggest dictatorial tendencies On occasion, however, Ahmadinejad
ambiguously Nazi) scientist known and inferiority complexes of the has displayed curiously contradictory
only as Strangelove. In what may be the Napoleonic variety. behavior, and has given us brief, puzzling
most economically brilliant performance glimpses into a more complex individual.
in cinematic history, Peter Sellers The man known domestically as “Dear
brings to life a character so profoundly Leader” has manicured such an absurd The same man who ushered in a new era
enigmatic, so anomalously German, and myth about his messianic origins that the of social conservatism is also the man
so inarguably deviant that one can’t help official North Korean records describe his who, last summer, so tirelessly stood by
but be lulled into the hypnotic spider momentous birth on Mount Paektu as a his initial choice for First Vice President,
web that Sellers casts across the screen. near biblical event peppered with "flashes Esfandiar Rahim Mashaei. The move
of light and thunder,” upon which “the upset not only the Supreme Leader, who
Granted, Strangelove is no head of state— iceberg in the pond of Mount Paektu immediately ordered his resignation, but
no nation, no matter how desperate, would emitted a mysterious sound as it broke, also irked many in his conservative base
be that suicidal. And Sellers’ portrayal is and bright double rainbows rose up." who weren’t so keen on a high elected
unquestionably more demonstrative and official who’d previously been videotaped
exaggerated than anything we’ve seen When Kim Jong-Il boasts of his nuclear enjoying a wholly inappropriate dance
from Ahmadinejad in the public sphere. warhead collection, there’s indeed a performance put on by Turkish women.
But circumstantial differences aside, there measured and understandable ripple
remain several significant parallels. effect of concern that radiates throughout Ahmadinejad, the “man of the people,”
the international community. But no one’s also happens to be the same man who
Even though he’s technically working really that surprised. After all, Dear Leader infamously claimed that a halo-like light
under the American regime, Strangelove simultaneously claims, in all seriousness, hovered over his head during a 2005 speech
is plainly cast as an extreme caricature to have drilled 11 holes-in-one the first at the UN. He maintains, furthermore,
of the same trigger-happy, suspiciously time he ever picked up a golf club. that every world leader present for
double-talking character that so many in the speech did not blink for the entire
1960s America feared—the same kind of There doesn’t seem to be any traces of 27-minute duration. These are hardly
characterization, in fact, that many in the similarly inflated egomaniacal nucleotides words you’d expect from a supposedly
Western media have now branded upon in Ahmadinejad’s DNA. There austere, religious conservative, or, for
Ahmadinejad. doesn’t even appear to be much of the that matter, from a man of science with
showmanship that has become the global a PhD in engineering—both of which
But is there really a madman lurking calling cards of both Venezuelan president Ahmadinejad claims to be.
far beneath the placid surface of Iran’s Hugo Chavez and Libya’s Muammar al-
President? Has Ahmadinejad finally and Qadaffi. Ahmadinejad’s stage presence, Despite these wrinkles, though, he
inexorably stopped worrying, and learned by comparison, is borderline soporific. continues, in speech and in public, to hold

Issue 1549 21
Features

to his self-perpetuated image of normalcy. more emboldened and, at times, brazenly of Iran are brave enough that if it wants
More importantly, when compared to confrontational. to build a bomb it will clearly announce
many of the same men with whom he’s it and build it and not be afraid of you.”
often mentioned in the same breath, he Ahmadinejad is certainly not responsible He went on to assert, “When we say we
still comes across as the only relatively for planting the seeds of uranium won’t build it that means we won’t.”
coherent member of the group. enrichment in Iran, but during his time as
president, they’ve blossomed like never Iran has claimed, on numerous occasions,
For all his quirks, he’s still nowhere near before. After a group of exiles revealed that they’ve cooperated with all of
as volatile (or senile?) as Kim Jong-Il. that Iran had resumed uranium enrichment the UN inspections requirements and
And you definitely won’t see him dressed activities that had laid dormant ever since documentation. Inspectors, on the other
like the veritable Austin Powers extra that the 1979 Revolution, then-President hand, say they haven’t had any news from
Qadaffi has become. Mohammed Khatami confirmed in 2003 Iran since mid-2008.
that the country had been secretly working
So why is the international community since 1985 to develop a nuclear fuel cycle, According to a recently publicized
so incensed over someone so relatively thus setting in motion the international February 14th report from the IAEA,
normal? Could it be because of this cat and mouse game of inspections and Iran has now decided to move its entire
normalcy? Is the West warier of sanctions that’s still in full swing today. stockpile of enriched nuclear fuel to
Ahmadinejad’s more calculated game of an above-ground location—just a few
double talk and duality than they are of months after claiming that they had
North Korea’s impulsive Dear Leader?
Is he as enigmatic no choice but to build an underground
nuclear facility near Qum, because of the
It’s a reasonable explanation; a cagey,
mysterious adversary, after all, is always
and curiously ever present threat of attack.

worthy of attention, in any forum. And a placed as Kubrick’s The anomalous move struck many as

zany creation?
cagey, mysterious adversary with nuclear bizarre, and led to speculations that the
capabilities is worthy of extra attention. Islamic Republic might be baiting Israel

But does it necessarily make him another Absolutely. Then into striking the facility, as a means of
unifying its suddenly divided electorate.
Strangelove? Do nuclear capabilities
have the transformative power to turn an
again, though, so is Others, meanwhile, have hypothesized
that the move was intended as yet another
otherwise sibylline world leader into a
spastic, charlatan of an antagonist?
all of Iran bold confrontation with the West, in
an attempt to gain leverage in future
diplomatic negotiations.
The answer, of course, depends While Iran was embarrassingly forced to
on the fiction we construct around import gasoline in 2007 due to insufficient As he’s done all along, whenever the
Ahmadinejad’s nuclear ambitions, the infrastructure to refine its abundant supply currency of clarity and forthrightness
editing and splicing we use to piece of oil, Ahmadinejad pushed full steam are at an all-time high, Ahmadinejad
together the story, and the creative license ahead with his nuclear program, while continues to sit idly by, and let the
with which we allow ourselves to do so.  disclosing the details of the endeavor on speculation foment.
a piecemeal basis to the rest of the world.
However unique each iteration may Dr. Strangelove? Or Dr. Strange?
be, each auteur remains restricted to After deciding to hold a guided and
the same material, the same constituent highly publicized tour of the new Natanz So, is Ahmadinejad today’s Strangelove?
bits of reality with which to assemble uranium enrichment facility in April Not exactly. Does he aspire, in some
the Ahmadinejad mosaic. And only of 2008, even in the face of mounting way, to step into Sellers’ role of
in examining each individual piece of sanctions handed down from the UN mad nuclear scientist? Not quite.
radioactive mini-narrative can we even Security Council, Ahmadinejad appeared
hope to remove the veil, and unearth the to be more contumacious than ever. But is he as enigmatic and curiously
true Strangelove or Regular Joe buried placed as Kubrick’s zany creation?
underneath below. Just last month, at a ceremony celebrating Absolutely. Then again, though, so is all
the 31st anniversary of the Islamic of Iran.
How He Learned to Stop Worrying… Revolution, Ahmadinejad not only
and Love the Bomb? proudly declared Iran a “nuclear state,” In many ways, Ahmadinejad and his life
but had some carefully articulated words stand as a microcosm of the current state
At some point over the course of his for concerned Western powers, as well. of Iran. His persona, like Iran’s nuclear
presidency, Ahmadinejad, like the and foreign policies, is one shrouded in a
blundering characters in Strangelove, As some demonstrators in attendance miasma of mystery.
simply stopped worrying. While he shouted chants of “Death to the dictator!”,
hasn’t done anything as drastic as pulling the President, from atop a flower-adorned His statements are often schizophrenic
the trigger on a nuclear warhead, his platform, asked the West to “please pay and contradictory, reflective of a state
nuclear rhetoric has certainly become attention and understand that the people caught in the vortex between the pull of

15 March, 2010 22
Features

religious conservatism and the ongoing regime last summer perhaps heard the Defusing the Doctor?
push toward Western ideals of modernity. ominous drone of what Roger Cohen
described as “the death knell of an ossified We probably shouldn’t spend too much
Like Strangelove on screen, Ahmedinejad post-revolutionary order.” time constructing doomsday endings for
occupies a strange and peculiarly our Iranian film script just yet. If anything,
precarious space in the international In response, the Iranian leadership we should take solace in the fact that we’re
political fiction we’ve engineered has turned to the haven of uranium not dealing with a Strangelove, but simply
around Iran. We’re never sure how enrichment. In ramping up the program, with a man and a country that, at the moment,
much sway Strangelove has over the US and, more importantly, ramping up his are at a uniquely transitory inflection point
administration, and we’ll never know the promotion of the program, Ahmadinejad in their respective evolutionary arcs—a
extent of Ahmadinejad’s influence in Iran, and his brass have made their intentions prolonged mid-life crisis, if you will.
either. He’s neither an absolute authority, blatantly clear.
nor a Wizard of Oz, relegated to rote,
behind-the-curtain duties. Does this mean we should treat the

And, as with Strangelove, he’s a nearly


Like Strangelove on threat of a nuclear Iran as nonchalantly
as Kubrick does? No. We should,
impossible character to decode. Much as
the true extent of Iran’s nuclear progress
screen, Ahmadinejad however, always keep ourselves firmly
grounded in the truth serum of context,
remains encased in an obscure box of
arcanum, so too does the “true” character occupies a strange and realize that Ahmadinejad and
Iran, while certainly playing up the
of Ahmadinejad remain blurred. As role of defiant adolescent to the West’s
with every major politician, it’s become and peculiarly solicitous parent, are not de facto dangers.
virtually impossible to separate the
three-dimensional human from the two- precarious space in Nor should we expect to see a transparent
dimensional image. Ahmadinejad anytime soon. Opaque

Even if we tried to derive a “pure” idea


the international intentions shielded behind a poker-faced
President only raise Iran’s bargaining
of Ahmadinejad’s actual intentions, we
would have to disentangle the complex political fiction value at the card table of international
diplomacy. Much like Peter Sellers,
web of power relations that govern the Iran’s president is perfectly capable of
Iranian presidency, the Supreme Leader, playing numerous archetypes, and of
and the Supreme National Security A “nuclear state,” in their eyes, is a world sliding seamlessly between his blue-
Council. Even the most advanced player. By their ratiocination, a state that collar “man of the people” and his
econometric evidence would be hard “goes nuclear” against the wishes of authoritarian “man of The Man” roles.
pressed to isolate a pure “Ahmadinejad nearly every other government is even
factor” in the three-headed consensus- more fiercely autonomous. Iran, like a At the end of Strangelove, the wheelchair
based process that dictates Iran’s foreign gambler watching his chips dwindle, has bound doctor suddenly finds the will to
policy. now put everything on the table, and has walk, and famously exclaims, “Mein
begun chanting an interminable chorus Fuhrer! I can walk!” just as the warheads
As in any film, though, we, as viewers, of “Hit me!”—even as the Obamas, zero in on Russia.
must sacrifice some basic level of Sarkozys and Merkels perched around the
objectivity. The only clay with which we blackjack table shake their heads. Don’t expect a similar 180 from the
can mold a character is the raw material Iranian President.
before us—what we see on-screen, or read Whether or not Iran actually plans on using
across headlines. While we can certainly enriched uranium for militaristic purposes Ahmadinejad may raise eyebrows. He’s
deduce much from Ahmadinejad’s remains unknown—perhaps even to unquestionably controversial, and eternally
actions, circumstantial context remains Iran’s own leadership. By Ahmadinejad’s enigmatic. At the end of the day, though,
paramount. The rhetoric may be fiery, quasi-Buddhist philosophy, the journey he’s no Dr. Strangelove. He’s just another
and his speeches may be hawkish, but seems to outweigh the destination. It strange doctor, caught in a strange period
it’s critical to place Ahmadinejad’s recent seems that, for him, simply attaining, of upheaval. When we eventually debunk
actions within the recently transformed or even attempting to attain nuclear the myth of “Ahmadinejad as Madman,”
mise-en-scene against which he’s placed. capacities might be enough of a roborant we’ll all be able to stop worrying, and,
to restore a state that’s recently shown perhaps, begin reconsidering the “bomb”
Ahmadinejad as Wallflower signs of frangibility. at the epicenter of our Iranian screenplay.

Last July, for the first time in decades, The worry, however, is that simply
Iranian discontent coagulated and building capacity won’t be enough, and Amar Toor is a Paris-based freelance
manifested itself as palpable action. Now, that only international confrontation, writer and consultant at the OECD.
barely seven months removed from this induced either passively or actively, The views expressed in this article are
rupture, Ahmadinejad’s back is pressed will placate an administration intent those of the author, and do not reflect
squarely against the wall. The Iranian upon regaining control over its country. the policy or views of the OECD.

Issue 1549 23
15 March, 2010
News Analysis

Maliki leads
the Iraqi parliamentary race

Issue 1549 25
News Analysis

Maliki leads the Iraqi parliamentary race


Shaky elections mark the beginning of Iraq’s pursuit of democracy

Wessam Sherif

D espite the dire


situation—terrorist
security
attacks
expectations of
coalition victory.
the Kurdistania in some provinces. The monitors
claim to have seen “a number of
killed around 38 people, 6200 security forces even within the voting
candidates from 86 factions stood in According to the preliminary results, hall”.
Iraq’s parliamentary elections. The it seems unlikely that any of the
elections have recorded a ground commanding coalition will get the The claims have been refuted by
breaking 62% turn up rate, making it needed majority of votes to form a Prime Minister Nouri al-Maliki, who
one of the biggest ever parliamentary government. Consequently, al-Maliki urged the parties to respect the results
“battles” in the Middle East. has already started talks with rival and refrain from making allegations
parties in order to form a coalition with providing substantial evidence.
Partial preliminary results from government, a process which could Several Western countries have
Iraq’s 18 districts have shown that take months before announcing a backed al-Maliki up reiterating many
the incumbent Prime Minister has new governmental structure. of the allegations might be nothing
maintained a sturdy lead over his rival more than attempts at discrediting the
Ayad Allawi. Maliki's State of Law The slow pace of vote counting has polls by opposition parties.
coalition leads the parliamentary race led to the delay of the announcement
by bagging the votes in 7 provinces, of the results more than once, which The elections mark a Shiite electoral
including Baghdad and the Shi'a has raised many eyebrows among the battle between the two leading
dominated Basra, while Allawi's al- opposition who claims that elections coalition parties, the State of Law and
Iraqia coalition trails behind having might have been tainted by fraud. The the more secular al-Iraqia coalition.
clenched 5 provinces. The battle in claims were backed by reports from Results will be officially released by
the oil rich predominantly Sunni election monitors who highlighted the end of the current month. In the
district of Kirkuk between the Kurds the interference of security forces in meanwhile, many Western nations
and the Arabs has surprisingly ended rigging the votes by urging the voters have hailed what they called “the
with the victory of al-Iraqia, despite to vote for a specific list of candidates success of the voting process”.

15 March, 2010
26
27
Ideas

© getty images

15 March, 2010 28
Everything
But A GameBy
Noam Schimmel

Issue 1549 29
Ideas

Everything But A Game


Responding to Child Poverty in Egypt
Noam Schimmel

Despite making great strides in lowering child mortality rates, Egypt has a long way to go in improving the
living standards of its child citizens. The importance of assessing government run development programs is
highlighted when Egypt’s advances are compared to those of Morrocco. Despite sharing similar challenges, their
development trajectories may diverge substantially as a result of different government initiatives. Egypt should
focus on addressing the causes of child poverty rather than responding to these social challenges symptomatically.

An Egyptian boy plays with a ball at the poor area of al-Zabbalin in Cairo

© getty images

A boy, maybe ten or eleven years old,


eyes flashing with enthusiasm takes
that resonates most for me. His gratitude
at being given the chance to live in a safe
this had more than halved to 36. Its infant
mortality rate for infants under the age of 1
me to the second floor of a shelter for environment, with access to schooling and stood at 68 in 1990. By 2007 it had dropped
orphans and street children in Alexandria, adequate meals was palpable—it was more to 30. Despite this progress, Egypt has a
eager to show me his room. When we get than gratitude he was expressing, it was the long way to go to secure the human rights
to his room he looks for something beside joy of dignity, respect, and opportunity. of its child citizens.
his bed. Moments later, he hands me a
chocolate bar. Egypt has made great strides in lowering In the 2009 State of the World’s Mothers
child mortality rates. The UNICEF 2009 Report, issued by the NGO Save the
Many images linger from my visit to State of the World’s Children Report Children, Egypt ranks 22 on the Children’s
community development projects in Egypt. illustrates the significance of these Index rank (which measures child welfare)
But it is the memory of this boy and his improvements in child welfare indicators. for what it classifies as “Tier two less
desire to share even though he has very In 1990 Egypt had an under-five mortality developed countries.” To put this in an
little in the way of material things himself rate of 93 per 1,000 births and by 2007 Arab states context, and this ranking is

15 March, 2010 30
Ideas

significantly better than Syria’s ranking funding and are developed sustainably they are now projects limited to relatively small
of 55, Morocco’s ranking of 57, Libya’s are likely to yield significant improvements communities and reaching only a small
ranking of 46, and Algeria’s ranking of 41. in Moroccan human development and the percentage of Egyptian children and youth
Only three Arab countries do significantly welfare of Moroccan children. Egypt’s need to be expanded extensively. According
better in this ranking than Egypt: Jordan, massive military expenditures in particular to Save the Children, 54% of girls in rural
Qatar and Bahrain. undermine its capacity to combat poverty Upper Egypt are not enrolled in school, for
effectively and to provide for the needs of example. Ensuring universal enrollment in
However, these generally strong numbers its children. school for Egyptian children and improving
for Egypt are deceptive because Egypt fairs teaching methodologies—which are often
very poorly when the overall welfare of Although there is an enormous gap between rote and involve memorization rather than
mothers and women are taken into account. the needs of Egypt’s children to access their interactive learning, a more effective way
A child’s well being is deeply informed human rights as established in the UN of engaging students—is one area the
by his/her mother’s access to education, Convention on the Rights of the Child: Egyptian government needs to prioritize.
healthcare, economic resources, and equal including access to decent education,
legal rights. With consistently poor results healthcare, shelter and sanitation facilities, Some social challenges, such as the large
in these rankings it is highly possible if not and nutrition and Egyptian social realities, and growing population of street children
likely that Egypt will lose momentum and there are also successful child centered in Cairo and Alexandria are intricately
child welfare nationally will stagnate and community development projects across connected to an array of complex and
soon decline. the country that are making a tangible longstanding social problems: crime,
difference in the quality of life for Egyptian poverty, domestic violence and child abuse
When the first UN Arab Human children and youth. that goes unpunished. There are many
Development Report was issued in 2002 projects in Egypt that address these problems
it focused on three key deficits that were A diverse group of NGOs are active in symptomatically rather than structurally,
preventing and slowing development in Egypt working with children. Some work i.e. drop-in centers for street children that
the Arab world: access to knowledge and under the auspices of large and familiar provide the immediate basic needs of
education, women’s rights, and political international NGOs such as PLAN, Save children and reduce their vulnerability but
freedoms. These remain key areas of the Children, Oxfam, and CARE who do not address the underlying causes of
concern. The lack of access to education partner with local Egyptian NGOs. Others their homelessness. This is not to underplay
and the lack of women’s rights have a are smaller NGOs without an international the importance of providing children that
particularly debilitating impact on children affiliation. are already living on the street with their
as they perpetuate a poverty trap and the needs—rather, it is to emphasize that such
marginalization of girls. The project with street children I visited a response is by its very nature partial and
in Alexandria is sponsored by the child- unlikely to lessen the number of children
Egypt is unique in the Arab world and centered development NGO PLAN migrating to the street nor the push factors
faces exceptional human development International. Major areas PLAN has that cause them to do so.
challenges because of the large size of its focused its programming on include
population. Arab countries that have been increasing school attendance, the creation The lack of an organized and well financed
able to achieve major improvements in of clubs where children have safe places government response in partnership with
child welfare tend to have both smaller to read and play, promoting the rights of civil society to structural causes of child
populations, such as Jordan, and are girls and women, village savings and loans poverty and deprivation of child rights is
significantly wealthier, such as Bahrain and programs, revitalization and expansion of common throughout the developing world
Qatar. It is helpful to compare Morocco, a health and nutrition programs for children, and is not unique to Egypt. However, given
country with a similar GDP per capita as and improving access to clean water and the huge child and youth population of
Egypt’s (according to the World Bank’s sanitation services. Egypt, the social, economic, and political
latest 2009 data, per-capita GDP stands at consequences of not finally addressing
$2,580 in Morocco and at $1,800 in Egypt) PLAN places a unique emphasis on this issue intensively and comprehensively
with Egypt. Morocco, like Egypt, suffers educating children about their human poses a threat to the stability of the Egyptian
from extreme poverty and high income rights as children and providing them with state, in addition to the impoverishment
inequality as well as an extensive problem opportunities in the media, community in both human and financial terms that it
of unemployment. According to UNICEF, gatherings, and with government officials causes to Egyptian society and Egypt’s
its under-five mortality rate in 1990 was to communicate their concerns, needs, and children in particular. Egypt’s success in
very close to Egypt’s, standing at 89 per experiences of human rights deprivations. decreasing child mortality during the last
1,000 births. By 2007 this had dropped While working on a local level to provide two decades indicates that there is cause for
drastically to 34 per 1,000 births. holistic support to children and to enable hope. If political will matches the economic
them to realize their rights to survival, and human resources that Egypt possesses
The development trajectories of Egypt development, and protection, PLAN then the future of Egypt’s children will
and Morocco may diverge substantially in also strives to promote child welfare better reflect their human rights, intrinsic
future years, however, as their governments on a larger scale across the nation.. dignity, and potential to the benefit of
prioritize different areas for government Egyptian society at large.
expenditure. Morocco currently seems Egypt’s greatest challenge is to scale up
more invested in improving access to interventions like PLAN’s community-
information, promoting the rights of based programs and to use the financial London-based researcher and human
women, and increasing educational and human resources of the state to do so, rights practitioner with extensive
opportunity. If these areas receive sufficient while coordinating them effectively. What development experience in the field.

Issue 1549 31
15 March, 2010 36
People

The Future of Democracy


in the Middle East
Daniel Brumberg, acting Director of the United States Institute of
Peace’s Muslim World Initiative

Issue 1549 33
People - Interview

The Future of Democracy in the Middle East


Daniel Brumberg, acting Director of the United
States Institute of Peace’s Muslim World Initiative.
Professor Brumberg discusses with The Majalla the latest report by the United States Institute
of Peace. He raises questions regarding the appropriate measures that the US should put in place
to protect its security interests in the region, highlighting the role of democracy. Brumberg also
discusses the conditions that are necessary for liberalized autocracies to promote democratization.

© getty images

Daniel Brumberg is acting director


of the United States Institute of
The Majalla: Do you believe there
is an incompatibility between
where you have Muslim majority
societies such as Indonesia and
Peace’s Muslim World Initiative. Islam and Democracy? Senegal, in which democracy is done
Brumberg is also an associate remarkably well, there is no evidence
professor at Georgetown university No, I don’t think there is an essential to suggest that it is the Islamic nature
and a former senior associate at the incompatibility between the two. It is of Muslim majority societies that
Carnegie Endowment’s Democracy the case that in any religious system— accounts for the presence or absence
and Rule of Law Project. His research whether it is Judaism, Christianity or of democracy. There is some aspect
focuses on issues of democratization Islam—if a government is supposed of Arab politics and the Middle East
and political reform in the Middle to be based on religious precepts that is to account for the phenomenon
East and wider Islamic world. there is going to be a certain tension. and not Islam itself.
With a grant from the MacArthur I think democracy faces a broader
Foundation, he is currently working problem that is not related to Islam. Q: What processes do you think
on a comparative study of power- Religious ideas do not sit very well are necessary for political reform
sharing experiments in Algeria, with democracy because religion, by in the Middle East?
Kuwait and Indonesia. A brief review its very nature, insists on very strict
of his most recent publication with the notions of moral life. If you look at Political reform is not a new
United States institute of Peace was studies that compare the Arab world phenomenon in the Middle East,
published last week on The Majalla. to the Islamic world, you will see that it did not begin with the Bush

15 March, 2010
34
People - Interview

administration’s effort to promote between regimes and opposition. not face the possibility of an election
it. In fact, there was a long legacy Not the kind of dialogues you had in which you or your allies will
of state instigated political reform between Egypt and elsewhere be politically isolated. Algeria is a
that goes back many decades. which are choreographed by the great example: the regime extends
The primary example of that is state. That’s typical of the region. protection to non-Islamist groups
Egypt in the 70’s and the political Regimes are constantly engaging in afraid of going back to the elections
liberalization undertaken by the dialogues but they are mostly really of 1988-89. So non-Islamist groups
late President Amar Sadat. This is monologues, not dialogues with a get protection from these regimes,
a good example of how regimes goal of defining a political formula but so do Islamist groups. That’s
have used and invoked political that moves beyond the boundaries of the name of the game, you have to
reform not as a mechanism for actual state managed political reform. protect everybody.
democratization, but actually as a
mechanism for holding on to power.
So political reform as an instrument There has to be a Even the Egyptian state, which does
not allow the Ikhuwan-ul-Muslamin
of state power is an old phenomenon supply of democratic to establish their own political party,
in many Middle East states, not all, is very god at co-opting the Islamist
but many. change from above. message in the regime itself. It

The question that I am interested in,


Therefore regimes also has had a section of the NDP
extend support to Islamists and
and the question that the USIP report have to see beyond to conservative Muslim leaders.
tackles on reform and security is the States are good at creating their own
extent to which the state managed the limits of reform constituencies and playing them off
game of political change—in which
the state defines the rules for political
that they have so far one against the other. It’s a divide
and rule tactic, but these tactics
change— can go beyond by a game imposed are in part made possible because
that is largely defined by the state and they are based on the fact that
move towards a pattern of political there are constituencies that prefer
reform that is much more substantive the status quo of state managed
and has a basis in the society itself. Q: How do you explain the ability liberalization over the black hole of
of liberalized autocracies to endure full democratization. That’s really
Q: Is political reform in the Middle despite predications of their what counts.
East then primarily a bottom up or inevitable downfall?
top down process? Q: For the case of Iran, what
There are several reasons why they type of political struggle do you
It has to be both, in part because of have succeeded so far. These regimes think would promote democracy?
the extent to which the boundaries are not based solely on coercion
of reform have been determined and force. They provide goods and Iran is in some sense a mirror image
by states and regimes. Yet the US services, and they provide patronage, of the case of the Arab world. In the
has based its hopes for democratic they have their own organized Arab world you have semi-secular
change in the Middle East largely on constituencies. They are able to buy regimes that extend protection to
the hope that civil society groups and political support to some extent by all kinds of groups but particularly
NGOs, through their own activism distributing all kinds of favours and non-Islamist groups—bureaucrats,
and their own actions, will be able to goodies from the state. So they are the business community, secular
compel regimes to engage in political not really coercive in that sense, intellectual. In Iran it’s a regime rule
reform. That hope, what we call in they are patron states. But also these by Islamists, and they extend the
our field a demand side approach— regimes extend the kind of protection protection of an autocratic state to
that demand is coming from civil to various groups in society. It’s their constituencies and the clergy,
society—has not been fulfilled. a kind of protection in which the the true believers, the hardliners who
regime guarantees the safety of want to maintain a close relationship
There has to be a supply of democratic all groups, particularly those non- between mosque and state. As a result
change from above. Therefore Islamist groups who are afraid of the those who control the Iranian state
regimes have to see beyond the outcome of a fully democratic game. speak not simply for themselves,
limits of reform that they have so far but also for a constituency of several
imposed, and that means a form of What the state does is essentially million or more for whom any
political liberalization that is wider. liberalize but not democratize. political liberalization is a threat
It also implies a genuine dialogue Therefore you can participate but because liberalization is seen as

35
People - Interview

Q: The US has made various


efforts to promote democracy in
the Middle East. Do you think any
of these have efforts have had the
long term benefits that the US was
looking for?

Under the Bush administration


there was both much continuity
with previous administrations, and
yet somewhat of a break. The break
came in the form of the language of
US support for democracy and the
substance of our policies. Under the
Bush administrations we began to
speak to states much more clearly
about the need for reform. At the
same time we supported civil society
groups. So this equation which I
mentioned before—the demand
Algerian rescue workers and bomb experts stand in front of a destroyed building near the United
Nations refugee agency (UNHCR) offices
side reform vs. supply side—was
© getty images
addressed by the Bush administration.
The problem there was that there was
opening the door to the non-Islamist guard make a lot more sense. These a real hesitancy, once Islamist made
opposition. Iran is a highly divided would probably be supported by advances in Egypt and Palestine,
society and it is ruled by an elite that the opposition. But broad based to support the pressure on regimes.
sees any form of democratization sanctions such as the kind that are The last two years of the Bush
as a slippery slope towards its own supported by the US Congress are administration were spent reverting
downfall. As a consequence there going to hurt the opposition much to the more traditional US policy to
is no real incentive from those in more than help them. rely on civil society groups instead
power to make any concessions to of pressuring regimes themselves.
the opposition. The problem is that Q: What kind of target sanctions, in We are probably now back on that
the opposition doesn’t really have the this case, would be most effective? traditional policy.
power to bring down the regime. The
most likely scenario will be one of Economic and financial sanctions on It is a policy that is largely risk free
conflict and stalemate for some time, the capacity of elements within the because we promote political reform
maybe even years. revolutionary guard to do business by supporting civil society groups
overseas, to import technology and which don’t really have the capacity
Q: How do you assess policies capital, and to essentially service their to force regimes to change. We can
from the West towards Iran that own constituencies within the security appear to be supporting democracy
encourage sanctions? Do they apparatus would be most effective. without jeopardizing our relationship
promote change, or do they do Some of those targeted sanctions with regimes—the cake and eat it too
more harm than good? have been proposed by Congress and strategy.
are getting more attention. Those are
Broad based sanctions, or what we the kind of sanctions that the Obama So we had a period of two to three
call crippling sanctions, hurt the administration is now supporting. In years under the Bush administration
opposition more than the regime. As fact that the Obama administration which turns out to be in retrospect
a result, broad based sanctions on has come out and said that the quite exceptional. Even during the
say imported gas are probably very broader sanctions in Congress are last two years of the administration
counterproductive in terms of any wrong and counter-productive. There we were back to a policy of
resolution of the conflict between are a set of ideas in sanctions that supporting political reform and not
the regime and the opposition, and in can help more than they can hurt. democracy, because they are not the
their ability to provide some measure Sanctions for the Congress are a way same. Whether we are ready now
of political liberalization. Target of making a statement in support of to walk the walk and really support
sanctions which are the coercive the opposition but it’s a statement democracy instead of patterns of
apparatus in the revolutionary that can do more harm than good. political change that are ultimately

15 March, 2010
36
People - Interview

determined by regimes remains to be fix the state by democracy alone, to giving them a capacity to both
seen. some extent, flipped the formula. address the Taliban militarily and
politically. The goal is not simply
Q: Implicit in your answer is the to decimate the Taliban but have
possibility that even a democratic The problem with a military strong enough to force
country would not be US friendly. them to negotiate, but that requires
Is that the case? Afghanistan is that a military that is strong well trained
you have had elections and doesn’t depend ultimately on
That is a possibility. Governments, the US. That is a lot to accomplish
including the United States, do not in the absence of a in the timeframe established by the
like uncertainty, especially in the strong state. In the Obama administration. We’ll have
diplomatic field. But we really don’t to keep our fingers crossed.
know what the foreign policy of absence of a state
regimes in the region would look like
if Islamist played an important part
that has a strong Q: How do you assess the
upcoming elections in Iraq,
in the regimes as a consequence of legitimacy, elections especially considering the
elections. Elections leading to power
sharing arrangements that would
are bound to be really disqualification of candidates
allegedly affiliated to the Baath
be inclusive of Islamists wouldn’t about the distribution party?
necessarily change the foreign policy
of these regimes because that power
of patronage I think if the disqualification
sharing formula would have to be isn’t overruled [the decision was
negotiated. It is also unlikely that postponed until after the elections]
if Islamist had a stronger role in For example if you have a military its going to do great harm to the
government in either Egypt or Jordan, preying upon the local population, legitimacy of the elections. If
that they would scrap their peace all the elections in the world would the Sunni community is given a
treaties with Israel. Also, we don’t probably strengthen forces opposed reason to boycott the elections it
know what any of these dynamics to the state because the state is seen increases the readiness of some
would look like in the context of a as predatory. That doesn’t mean Sunni actors to go back to the old
successful peace process between the democratic process should days with an insurgency against
Israel and Palestine. Its probably the be suspended, but that in parallel the regime. That will increase the
case that there can be no real progress with that process, there should be a fear factor of the Shiite community
in terms of democratization in the focus on issues of economic reform, and undermine prospects of Sunni-
region in the absence of a parallel education, corruption, governance Shiite reconciliation. In the last
effort to bring the Arab-Israeli and so on. If you don’t do that, year we have seen this pattern
conflict to a successful resolution and democracy will probably be de- where the two sides go to the brink
a just one. stabilising instead of stabilizing. and then step back from it, we may
still see it but if they don’t step
Q: What policies do you think Q: Will the surge in troops in back this disqualification is going
are necessary for Afghanistan to Afghanistan by the US be able to to really harm the election process.
build its credibility and improve its achieve its intended objectives? If it’s not thrown out we may see an
stability? election that is seen by the Sunni
I doubt it. I think the surge community as illegitimate. Al
The problem with Afghanistan is that planned is probably inadequate Qaeda and its mobile operatives are
you have had elections in the absence for achieving the strategic aims resorting to the use of bombings to
of a strong state. In the absence of a defined by the administration. I rekindle the civil war that occurred
state that has a strong legitimacy, hope that I will be proven wrong. It in Iraq. That hasn’t happened
elections are bound to be really about seems to me that politically it was because Shia leaders haven’t taken
the distribution of patronage, like impossible to make the argument the bait, but this disqualification
the paying off of war lords, than it is for a larger surge than the one makes the process of reconciliation
about strengthening the legitimacy of defined by the administration and difficult.
the state. So you need a functioning they will try to make it work within
army, you need to fight corruption, the troop increase, but considering
you need patterns of government the timework defined, we have a
that are legitimate and efficient for very limited window of opportunity Interview conducted by Paula
democracy to work. The effort to to strengthen the state and the army Mejia

Issue 1549
37
People - Profile

An American powerbroker heading to Syria


Robert Stephen Ford, the next US Ambassador to Syria
Robert Ford, the new US envoy to Damascus, is a crafty behind-the-scenes powerbroker. He is one
of the foremost Arabists of the US Foreign Service, played an important role in Iraq, and spent two
years in Algeria. His mission is a tough one. He will seek that Syria facilitates regional stability, and
will try to lure Syria away from Iran’s sphere, while Israel ratchets its bellicose language against
Damascus. The question is—will he handle the spotlight?

© getty images

R obert Stephen Ford, the next


US ambassador to Syria
its bellicose language against
Damascus. Will he take the heat?
cozying up to regional powerhouse
Turkey to increase his bargaining
following a five-year absence, is power in the standoff with Israel.
“an avid reader of history and a Mr. Ford will not be arriving to
diplomat.” That’s how he describes rekindle a friendship, either. After To be sure, Syria convinced
himself in his Amazon profile. all, Syria was included in Bush’s western diplomats it can play
What this discreet career diplomat era “Axis of evil” in 2002, and it both ways. The invisible hand of
doesn’t say is that he has become gained world pariah status for its Damascus has been credited with
one of the foremost Arabists of the yet unclear role in the murder of convincing Hamas to accept the
US foreign service, crawling up former Lebanese Prime Minister Arab-proposed peace offering
the ladder over the last quarter of a Rafiq Hariri on February 14, 2005. to Israel, with easing sectarian
century, mostly in Arab countries. US sanctions are still in place. But tensions in Iraq via Sunni
He’s a savvy powerbroker who Damascus has regained much of politicians, and with Hezbollah’s
has quietly bent Middle Eastern its clout in the region since. recent shows of restraint, both
politics, most noticeably in Iraq. inside and outside Lebanon.
But for the first time, Mr. Ford will President Bashar al Assad has President Barack Obama, unlike
be operating under a spotlight as mended ties with his Arab his predecessor, does not demand
he tries to lure Syria away from neighbors, without surrendering that Syria sever its relations to
Iran, all while Israel ratchets them with Tehran, and he is Iran, Islamic Jihad, Hezbollah and

15 March, 2010 38
People - Profile

Hamas. But he does want Syria to for intruding in internal affairs. certainly play a significant role
facilitate regional stability. Algiers protested his embassy’s in one of the most destabilizing
apparent premature warning of elements in the region: the
And that’s where the new a terrorist attacks in 2007, which Golan Heights. His negotiating
ambassador comes in, probably triggered chaos in the capital, to expertise could come in handy
this summer, after the Senate the point official media demanded in Syrian peace talks with Israel
confirms the nomination. that he be expelled. But that that would have far-reaching
Ford has an impressive track seemed more of an excuse. ripple effects from Lebanon
record when it comes to brokering to Palestine, especially now
solutions against all odds. that Tel Aviv has intensified its
Working behind the scenes as Ford was pivotal saber-rattling against Damascus.
counselor of political affairs of
the US Embassy in Baghdad, he in negotiating a Syria could also be critical in
any future agreement between
has been credited with playing bilateral nuclear Palestinian factions, as well as
a critical role in mending Iraqi reconciliation in Lebanon, via its
sectarian divisions in every single cooperation deal, ties to Hamas and Hezbollah. It’s
milestone: the January 2005
elections, the establishment of
an experience equally decisive to Iraq’s future,
not only by reigning in militant
the transition government, the that could well Baathist operating from its
writing of the new constitution, territory, but by simply securing its
the October 2005 referendum, the serve Syria if borders. Ford will also be tasked
December 2005 national elections,
and the 2009 provincial elections.
indeed insists on with cementing US influence
in the country by strengthening
Initially after the 2003 invasion, developing its own bilateral economic ties. Syria
Mr. Ford was sidelined by is also a key transit territory
Washington hawks who saw little program into Europe for Middle Eastern
need for co-opting Iraqis into gas from Egypt, Iraq, and Iran.
collaborating. But his knowledge Ford has an arts and masters degree
was critical when the Bush What really made the government from Johns Hopkins School, where
administration backtracked to uncomfortable was his willingness he specialized in economy and
reincorporate Sunnis back into to meet opposition groups openly. international studies. He served in
the political mainstream. In Iraq It’s hard to say whether that the Peace Corps in Morocco, his
he also apparently reinforced his was just an academic exercise first exposure to Muslim countries.
democratic idealism. Back in or a calculated move to support He joined the foreign service as
2006, during an online chat with democratic engagement. But an economics officer in 1985
Americans when he worked in doing so in Syria would be a bigger and built his diplomatic career
the US embassy he said: “There gamble. Regardless, in two years in Turkey, Egypt, Cameroon,
are two forces at work in the he steered US-Algerian relation and Bahrain, where he served as
Arab world now: those who to new highs, economically and the deputy chief before he was
want more freedom of choice diplomatically. sent to Iraq for the first time. He
and religious fundamentalists has multiple awards and speaks
who want to shut choice off.” He was pivotal in negotiating Arabic, French, Turkish, and
Before returning to Iraq in 2008 a bilateral nuclear cooperation German. His wife Alison Barkley
to his current post as deputy head deal, an experience that could is also a US diplomat working in
of mission, he was ambassador in well serve Syria if indeed insists the Iraqi embassy. Their official
Algeria for two years. His record on developing its own program, home is Baltimore, Maryland.
there is mixed. US interests especially when the other tender
were well served, bilateral trade could well come from Tehran.  But how quickly they return
boomed, and he led a return to Ford’s priority is to sway Syria will depend on how he handles
good diplomatic relations. into isolating Iran, probably the spotlight of reestablishing
unattainable considering historic relations with Damascus. For now,
But he was also harshly criticized and economic bonds. But he could his slate, like Syria’s, is clean.

Issue 1549 39
15 March, 2010
Economics
International Investor Markets

When Sanctions Work


By
Andrés Cala

Issue 1549 41
Economics - International Economics

When Sanctions Work


Iran braces for an end to subsidies
Andrés Cala
The populist government of Iran has been pressured into modernizing its economy by phasing out costly
subsidies. Although past leaders have been unwilling to withstand the burden that the change in policies will
entail, the prospect of crippling sanctions by the West has aligned its leadership in support of a 5 year subsidy
reform plan. The reforms will save the country $100 billion USD a year in subsidies, while correcting market
distortions, strengthening the middle class and diversifying the country's economy. This progress however will
not come with out challenges, as a rise in costs will likely be followed by inflation.

Iranians walk in a poor neighbourhood in the town of Ghaleh Hassan Khan on the southwestern outskirts of Tehran
© getty images

N Iton is Iran
ironic that Western pressure
will be responsible
reform plan, with a particular emphasis
on energy products. The ultimate goal is
time. In fact, Iraq has already phased
out most of fuel subsidies, regardless
for accomplishing the unthinkable: to save up to $100 billion annually that of its oil wealth. If done correctly, this
convincing the populist government of should, if the policy that accompanies the will no doubt strengthen and modernize
President Mahmoud Ahmadinejad to plan is implemented correctly, help Iran Iran’s economy, without abandoning the
phase out costly subsidies and modernize modernize its economy and make it less poorest to their fate.
the country’s stagnant economy. vulnerable.
The Economic Reform Plan, as it is
For decades, the high echelons of Geopolitics aside, the plan will no doubt known, became law in January after
Teheran’s political sphere have been be painful and risky. Nevertheless, it intense wrangling. Implementation is
debating on how and when to address the remains a necessary evil that will serve expected at the beginning of the next
economy’s Achilles’ heel, but no leader to correct severe market distortions, Iranian year (March 21), along with the
has so far been willing to take the political strengthen a rising middle class, and new budget and Iran’s new five-year
blow, least of all Ahmadinejad. The diversify the productive sector away plan.
growing reality of “crippling sanctions”, from oil dependence.
however, has finally lined up the Subsidies on oil derivatives, natural
respective powers–the Supreme Leader, The plan is not new either. The gas, electricity, water, food, health
Parliament (also known as Majlis), the International Monetary Fund, the and education will be phased out.
Central Bank, and the government. World Bank, Iran’s Central Bank, and Savings of $20 billion annually, which
just about all economists have been will total $100 billion at the end of
This month, Iran is set to begin the advising Iran–and most other Middle the five-year plan, will be managed
implementation of its five-year subsidy Eastern countries—to do so for some by the government, but supervised

15 March, 2010 42
Economics - International Economics

by the Supreme Iranian Audit Court, lost this way. In terms of unrest, some 40 percent
which oversees government spending. of Iranians are below the poverty
Urgency to phase out subsidies is also line and at least 11 percent of
A portion of the saved money will be the result of Ahmadinejad’s populist the population is unemployed.
used to compensate low-income families policies, which are blamed for rampant Mishandling the subsidy reform plan
with cash for their extra expenses, a inflation and high unemployment. Their thus implies huge risks to internal
form of explicit subsidies favored by the exponential danger was exposed as the stability. Government mismanagement
International Monetary Fund. global economic crisis sent oil prices could be costly, especially in the
plummeting and the government was current political environment.
The biggest savings are expected forced to use its reserves, without local But the biggest risk really is related to
from oil derivates, which make the demand being curtailed. inflation. Suddenly cutting subsidies
bulk of government subsidies. The means that prices will increase and that
cost of products such as fuel will be The subsidy agreement comes as the inflation will follow. That is manageable
benchmarked to Gulf international prices, West—led by the U.S.—increased if done correctly though.
with a maximum 10 percent discount diplomatic pressure to ratchet sanctions
allowed. Consumer prices of gas, water, on Tehran over its defiant nuclear Current inflation stands at single digits,
and electricity will also be matched with program. Ahmadinejad, who still faces a great accomplishment considering that
production costs. strong internal dissent and turmoil over only a year ago it fluctuated between 20
his reelection last year—believed to and 30 percent. The IMF has also argued
Until now the government has indirectly have been at least partially rigged— that inflation doesn’t have to accompany
subsidized energy prices by regulating ordered uranium enrichment 20 percent the subsidy reform plan. Malaysia, for
what consumers pay regardless of above the threshold needed for scientific example, increased prices of diesel more
international market prices or production purposes. Weapon grade uranium is over than 80 percent and kerosene almost 70
costs of state energy companies. This has 90 percent enriched. percent, accompanied by a 4 percent
contributed to creating a huge hole the deflation. There are similar examples,
budget equal to more than 20 percent of Ahmadinejad’s subsidy reform plan although not as successful, in Indonesia,
the country’s GDP. has also raised skepticism within Iran, and Turkey that reinforce the importance
where it is seen as a ploy to garner more of policy when cutting subsidies.
It also promotes wasteful demand, support for his faction. He has fought for
especially from the largest consumers full control of the savings, even as the If anything, that illustrates that proper
such as industry and wealthier households Majlis has tried to curb interventionism. handling of subsidy-cutting benefit to
which squander resources because of the economy. In Iran’s case, of course,
their low cost. Demand for fuel, gas, The budget proposal, which parliament this will depend on how reform will be
and electricity have soared, making Iran still has to approve, is based on oil prices managed.
increasingly dependent on costly foreign at $60 a barrel, significantly above the
imports, and creating disincentives to $37.5 per barrel used last year. The nearly Ahmadinejad appears to have a plan, at
exports. $370 billion budget is almost 25 percent least on paper. “Emphasizing a reduction
higher than last year’s $298 billion. of dependence on oil revenues and an
In the case of natural gas, for example, increase of non-oil revenues, with a focus
distortions in energy markets cause Iran The skepticism was refueled recently on industry, agriculture and housing —
to miss around 20 percent of its GDP in after Ahmadinejad surprised parliament these are among the main attributes of the
potential natural gas sales, according to by including $40 billion of expenditure bill,” he said when presenting his budget.
the IMF. This stands in stark contrast with in the budget that would be paid with Public investment on construction
Iran’s ambitious foreign policy objectives savings generated through subsidy accounts for $110 billion, for example.
given the significant geopolitical clout reductions, according to Iranian media.
that would accompany higher natural gas While the president backtracked after the The real challenge, though, is diversifying
exports. Majlis rejected the move—reminding the economy as much as possible.
the president that the plan called for $20
Productivity is also imperiled as a result billion of savings annually—concerns “I would not want to pass up a unique
of subsidizing. Unrealistic low industrial that Ahmadinejad could mismanage opportunity offered by a populist
energy costs kill the need to improve funds appear well-rooted. administration courageous enough to
industrial efficiency, thus making raise prices to market levels. The icing
Iranians products generally of lower The issue is still uncertain, as many on the cake will be if the government
quality, despite at times being more things are in Iran until their final can combine price reform with achieving
expensive than foreign ones. Iranian approval. The plan suggest that almost a greater equality in the distribution of
products thus loose international market half of the savings will be redistributed income,” wrote earlier this month in his
appeal. as targeted subsidies to the most poor, blog Djavad Salehi-Isfahani, a Dubai
another 30 percent will go to improving Initiative research fellow at the Belfer
Low gasoline prices have also led to energy efficiency, and the remaining 20 Center for Science and International
increased smuggling across borders. percent will be kept by the government to Affairs at Harvard University.
Authorities estimate that as much as 17 offset losses in state-owned companies.
percent of local fuel production—equal How the reforms are applied remains
to almost 11 million gallons a day—is the question and ultimately a risk. Madrid based freelance journalist

Issue 1549 43
Economics - International Investor

The Future Remains Unwritten


Does the Doha Round still have a future?
The Doha Round of multilateral trade negotiations is stuck. A big part of the reason is the misconceptions present at
the launch of the round. Member countries will most likely have to readjust their expectations if the round is to be
concluded.

I The classical model for multilateral


trade negotiations would include trade
liberalisation through tariff reductions and
A third major factor would be the aim for
“an ambitious and balanced” outcome which
now appears to be beyond the reach of most
elimination of non-tariff barriers. This model participants. A quick look at the negotiating
includes an expectation of active participation complexities in the NAMA sector and in
by around 40 countries—accounting for 90% the effort to reduce domestic subsidies in
of world trade. Among other consequences, agriculture will be enough to prove the point.
many GATT members in the 1960s and 1970s Modalities/flexibilities/special products/
were thus peripheral to the process. This led variable coefficients: clearly the process has
to skewed results with much less progress in become too sophisticated (and complicated)
areas where developing countries had a major and needs to be simplified and made more
interest, but where the main players had a manageable.
defensive attitude, such as agriculture and Roderick Abbott
textiles. So is there still a solution that can be found?
further setbacks in 2007 and in 2008 and Many observers in the academic world and
The Doha Round began with a similar model virtually no progress at all in 2009—the first the media have written the Round off, with
and two major differences: first, following full year of the Obama Administration. vivid language that includes long years of
progress in tackling other types of barrier, intensive care, ending in ‘rotting corpses’
there was heavy emphasis on the need to As a major contributory factor to these regular and the crematorium. The author is a little
deal with trade distortions—especially the stalemate situations one would mention, first, more positive; the Round can still be saved
effects of export and domestic subsidies in the that the negotiating model, designed at the but ONLY if leading countries realise that
agricultural sector in the USA and in Europe. end of the 1990s, no longer fits the needs the ambitious original targets of liberalisation
Second, the active number of participants had of the members. An effort was made at the set in 2001 are no longer possible. Currently
swelled to potentially 120 or more. Doha conference to re-engineer the model the major countries are hitting their heads
in a more development friendly direction— against a brick wall, and there is little or no
Over more than eight years – November hence the other title for the Round, the Doha political will to make an effort to circumvent
2001 to March 2010 – the negotiations have Development Agenda or DDA—but this too the obstacles. The WTO has embarked on
limped along with moments of progress amid was not very satisfactory. It raised excessive its own stocktaking exercise to see what can
long periods of stalemate or failure: deadlines expectations that poverty and marginalisation be achieved in 2010; but in my view a scaled
not respected, discussions collapsed with no outside world trade would be attacked, but down version, with a phase one now and a
result. A strong concentration on two sectors, there was no real substance to the effort which phase two later, looks like the best alternative
agriculture and NAMA (non-agricultural would make that happen. option.
market access) tariff cuts, failed to produce an
agreed outcome; and also failed to generate Second one would have to cite a lack of A more realistic and sustainable target for
the needed progress in other areas such as effective leadership, whether at the highest tariff reductions and market access, coupled
services, rules or intellectual property, which political level (G8 or G20 summits) or among with commitments to freeze present spending
might have led to a more balanced deal. the main players in the negotiation. When the levels on agricultural subsidies and gradually
membership rose rapidly after the Uruguay reduce from that level, is required. Less
There is doubt at least on whether the Doha Round there was no immediate move to rigorous tariff cutting formulae will lead to
Round will have a successful outcome. So find a successor group to the Quadrilateral fewer exceptions and fewer special deals to
why is that? (USA, EC, Japan and Canada) which had take account of specific features of individual
previously exercised leadership. The G20 countries. It will be less ambitious than
The most obvious factor is that the negotiators group of agricultural exporters was only planned – sure – but it could be achieved and
have been trying for so long to forge a deal formed in 2003, and this has slowly morphed would be better than a total failure. At this
acceptable to the 150 or so WTO members into smaller groups (G.4 with sometimes G.5 time, however, ideas such as this still cause
with a conspicuous lack of success. Even or G.6); but they have proved unable to work political indigestion in Washington and in
before the Round was launched in Doha, Qatar out the shape of a negotiating compromise that Brussels, although they might appeal more in
in late 2001, there had already been a collapse different groups of countries with diverging Delhi or Beijing.
of talks in Seattle in 1999. A second collapse interests can all accept. On the contrary,
happened in Cancun, Mexico in 2003, when members are more and more divided into
negotiations were already well under way. groups with mutually exclusive aims – for Former Deputy Director General at DG
Since then, a further Ministerial Conference and against tariff preferences, for example; Trade in the European Commission and
in 2005 barely allowed the Round to survive, some focussed on agricultural exports while Deputy Director General at the World
with little real progress; and there have been others (net importers) argue for food security. Trade Organization

15 March, 2010 44
Now you can follow the majalla anywhere anytime on your
Issue 1549
Economics - Behind the Graph

Islamic Finance Vis a Vis the Financial Crisis


Measuring by Shari'a compli- services has however experi- ful. Islamic finance may have
ant assets estimates the glo- enced a suspension in 2009 been less vulnerable towards
bal market for Islamic finan- following steady growth in the global financial crisis, yet
cial services to have reached the previous years. The as- obstacles still lay in the path
$951bn by the end of 2008 re- sets are majorly constituted of the Sukuk market which
cording a 25% increase from of commercial banks comple- fell back in 2008, recovering
2007's $758bn. The global mented by investment banks, the following year to reach
market for Islamic financial sukuk issues, funds and taka- $20bn issuance.

Geographic Distribution of Islamic Finance


Malaysia, Iran and GCC countries take up most of the shares of Global Is-
lamic Finance, yet that market has not seized to expand. Islamic finance's
reach is spreading beyond its conventional boundaries to reach new terri-
tories. Countries in the Middle East such as Turkey, Sudan, Egypt, Jordan
and Syria have steadily growing Islamic finance, in addition to several
Asian countries such as Indonesia, Hong Kong, Singapore, Pakistan and
China. Furthermore, the ethical and environmental basis of Islamic fi-
nance has also attracted a significant customer base in Western countries
such as the US, France, Germany and the UK. The customer base in these
countries is not solely restricted to the indigenous Muslim populations.

Source: The Banker

Steady growth for Islamic Funds


Islamic funds have been growing continuously where Shari'a compliant
funds have risen to 680 funds by the end of 2008, which is over triple the
number of funds in 2003. The total value of these of funds is estimated
by Ernst and Young to have grown from $20bn in 2003 to $44bn in 2008.
Equity funds account for 40% of funds, with fixed income 16% and real
estate and private equity 13% while cash, commodities and other funds
make up the balance. 58% of the funds is invested in the Middle East and
Africa, 20% is invested globally, 15% in Asia and 6% in America. The
size of Islamic funds is small where two thirds is less than $100m and,
most of which attracting only $10m to $15m.

Source: Ernst & Young Islamic Funds & Investments


Report 2009

Sukuk recovery problems


The issuance of Sukuk jumped from 1$bn a year in 2002 to $34bn
in 2007. The slowdown in the global capital market activity in
2008 has led to a sharp decrease in the issue of Sukuk to $15bn. Q4
of 2008 has witnessed Sukuk issuance rise from its trough of $6bn
in Q3 to a $20bn recording a 30% increase. The financing problems
at Dubai World have lead to the creation of uncertainties bearing
in mind that most issuers in 2009 have been government or quasi
government organizations. Quality Sukuk issuers still continue to
attract demand from Islamic and non-traditional investors despite
concerns. Hindering Sukuk market GCC is blamed on troubled in-
vestment companies, real estate market in the UAE and the credit
deficiency in Saudi Arabia.
Source: Zawya Sukuk Monitor, Islamic Financial
Information Service, Moody's

15 March, 2010 46
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Issue 1549 Tel: + 1(212) 610 2900 Fax: + 1(212) 610 2950
Economics - Index
Markets
Page

Industrail Prices
Output Unemployment
Production
Latest qtr 2009 2010 Latest Year Ago 2009 rate latest
Latest
United States -2.6 Q3 +2.2 -2.5 +2.8 -2.0 Dec +2.7 Dec 0.1 -0.3 10.0 Dec
United Kingdom -5.1 Q3 -1.2 -4.7 +1.5 -6.0 Oct +2.9 Dec +3.1 +2.1 7.8 Nov
France -2.3 Q3 +1.0 -2.2 +1.6 -3.8 Nov +0.9 Dec +1.0 +0.1 10.0 Nov
Germany -4.8 Q3 +2.9 -4.7 +1.9 -8.0 Nov +0.9 Dec +1.1 +0.3 8.1 Dec
Euro Area -4.1 Q3 +1.5 -3.9 +1.4 -7.9 Nov +0.9 Dec +1.6 +0.3 10.0 Nov
Japan -5.1 Q3 +1.3 -5.3 +1.5 -4.2 Nov -1.9 Nov +1.0 -1.3 5.2 Nov
UAE +7.4 2008 na -0.2 +2.4 na +0.7 Nov +7.2 +2.5 na
Barhain +6.1 2008 na +3.0 +3.7 na +1.6 Dec +5.1 +3.0 na
Oman +7.9 2008 na +4.0 +3.8 na +0.8 Nov +12.7 3.3 na
Qatar +16.4 2008 na +11.5 +18.5 na -9.9 Dec 13.2 0 0.3 Dec
Kuwait +2.5 2008 na +4.7 +4.4 na na 6.8 +4.7 na
Saudi Arabia +4.8 2008 na -1.0 +3.2 na +4.0 Nov +9.5 +4.3 na
Egypt +4.3 Q3 na +4.7 +5.4 +6.7 Q3 +13.3 Dec +18.3 +11.8 9.3 Q3
Brazil -1.2 Q3 +5.1 -0.3 +4.4 +5.1 Nov +4.3 Dec +5.9 +4.9 7.4 Nov
Russia -8.9 Q3 na -8.0 +3.0 +1.5 Nov +8.8 Dec +13.3 +11.7 8.1 Nov
India +7.9 Q3 na +6.5 +7.1 +11.7 +13.3 Nov +10.6 +10.5 10.7 2009
China +10.7 Q4 na +8.3 +9.3 +18.5 Dec +1.9 Dec +1.2 -0.8 10.2 2009
Hong Kong -2.4 Q3 +1.6 -3.2 +4.6 -8.6 Q3 1.3 Dec +2.1 +0.5 4.9 Dec
Singapore +3.4 Q4 -6.8 -2.1 +4.8 -8.2 Nov -0.2 Nov +5.5 +0.3 3.4 Q3

Financial Markets Trade


% Change Budget Interest Rate
Balance
Index March 10 Since March 3 Since Dec 31
Current Account Balance Currency Units, per$ Balance as a
New York (Dow) 3605.04 2.085291952 1.07551 lastest 12
% of GDP 10 years Govt
New York (Nasdaq) 2358.95 3.431871196 3.957429 months Latest 12 months % of GDP 2009 latest Year ago 3 month latest Bonds latest
London (FTSE 100) 5640.57 1.940284211 4.2060633 2008
Paris (CAC40) 3943.55 2.629264129 0.1834196
$bn
Frankfurt (DAX) 5936.72 2.042668463 -0.3476331 United States -518.4 Nov -465.3 Q3 -3.0 - - -10.0 0.14 3.66
Singapore (STI) 2862.29 2.856845109 -1.2192765 United Kingdom -126.0 Nov -28.2 Q3 -1.9 0.61 0.73 -14.2 0.66 4.10
Hong Kong (Hang Seng) 21208.29 1.587887793 -3.0367356 France -56.1 Nov -56.7 Nov -2.0 0.71 0.78 -8.4 0.72 3.47
Barhain (BSE) 1500.51 -0.13776305 2.8986998
Dubai (DFM) 1659.89 5.513778089 -7.9669324 Germany +187.7 Nov +158.0 Nov +4.2 0.71 0.78 -3.2 0.72 6.17
Oman (ASE) 6654.71 -0.30770383 4.4892287 Euro Area +25.3 Nov -109.6 Oct -0.7 0.71 0.78 -6.9 0.67 3.23
Qatar (DSM) 6818.37 0.54175766 -2.0232298 Japan +34.4 Nov +133.4 nov +2.7 91.2 87.6 -7.4 0.32 1.33
Kuwait (KSE) 7436.8 0.413167346 6.159622 UAE +63.2 2008 +22.3 Dec +8.5 3.67 3.67 na 2.2 na
Riyadh 6565.95 1.348597995 7.2559199
Cairo (Case 30) 1538.2 -1.26515652 9.8322028 Barhain +6.3 2008 +70.6 Dec +44.6 0.37 0.37 +3.3 6.82 na
Japan (Nikkei) 1227.21 0.733000624 4.2774478 Oman +14.8 2008 +5.4 Dec +9.1 0.38 0.38 0 7.21 na
Mumbai (BSE) 9099.62 0.51685495 -0.8665281 Qatar 37.0 2008 +28.6 Dec +27.9 3.64 3.64 +8.8 7.12 na
Kuwait +62.5 2008 +70.5 Dec +44.7 0.29 0.29 +7.8 5.66 na
Bahrain  Stock  Exchange  
Saudi Arabia +212.0 2008 +134.0 2008 +28.5 3.75 3.75 +0.7 0.77 na
1,550.000  
Egypt -25.4 Q3 -4.9 Q3 -1.7 5.44 5.55 -6.9 9.98 1.76
1,500.000   Brazil +24.6 Dec -24.3 Dec -1.0 1.79 2.36 -3.2 8.65 6.16
1,450.000  
Russia +104.1 Nov +47.5 Q4 +3.8 29.7 32.8 _7.2 8.75 7.40
India -74.5 Nov _31.5 Q3 -0.7 45.9 49.1 -8.0 3.80 7.71
1,400.000   China +196.1 Dec +364.4 Q2 +6.3 6.83 8.84 -3.8 1.88 3.79
Hong Kong -26.1 Nov +26.2 Q3 13.7 7.77 7.76 -2.4 0.13 2.63
01 10  

01 10  

01 10  

01 10  

01 10  

02 10  

02 10  

02 10  

02 10  

02 10  

02 10  

03 10  

03 10  

0  
01
0

0
 1 /20

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/2

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01

Singapore +24.1 Dec +20.9 Q3 +12.7 1.40 1.51 -1.1 0.50 2.44
4/

9/

4/

9/

4/

9/

3/

8/

3/

8/

3/

8/

5/

0/
 0

 0

 1

Kuwait  Stock  Exchange   Qatar  Exchange  


7,600.000   7,200.000  
7,500.000   7,050.000  
7,400.000  
7,300.000   6,900.000  
7,200.000   6,750.000  
7,100.000  
7,000.000   6,600.000  
6,900.000   6,450.000  
6,800.000  
6,300.000  
6,700.000  
6,600.000   6,150.000  
01 10  

01 10  

01 10  

01 10  

01 10  

02 10  

02 10  

02 10  

02 10  

02 10  

02 10  

03 10  

03 10  

0  
01 0  

01 10  

01 10  

01 10  

01 10  

02 10  

02 10  

02 10  

02 10  

02 10  

02 10  

03 10  

03 10  

0  

01
8/ 201

01

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/2
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/

1
01

/0
8/

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2/

7/

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7/

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9/
3/

3/

8/

3/

8/

2/

7/

2/

7/

2/

7/

4/

9/

3
 0
 0

 0

Tadawul   Dubai  Financial  Market  


6,600.000   1,900.000  
6,500.000  
1,800.000  
6,400.000  
6,300.000   1,700.000  
6,200.000   1,600.000  
6,100.000  
1,500.000  
6,000.000  
5,900.000   1,400.000  
01 10  

01 10  

01 10  

01 10  

01 10  

02 10  

02 10  

02 10  

02 10  

02 10  

02 10  

03 10  

03 10  

0  

01 0  

01 0  

01 10  

01 10  

01 10  

02 10  

02 10  

02 10  

02 10  

02 10  

02 10  

03 10  

03 10  

0  
01

8/ 201

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01
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 0 /20

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 1 /20

 1 /20

 2 /20

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/2

/2
/

/
1

01
/0
7/

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2
 0

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 0

 1

15 March, 2010 48
Issue 1549
15 March, 2010

THE MAJALLA 31
Reviews
Books Readings Reports

Issue 1549 51
Reviews - Books

Elixirs for the


Middle East
Brian Whitaker
What’s Really Wrong with the
Middle East
Saqi 2009
Journalist Brian Whitaker’s latest book attempts to
explain the causes behind the problems the Middle East
faces. Arguing that there is a fundamental similarity
between the cultural practices of Arab states and the
authoritarian nature of the state, Whitaker argues that
society must change in order for regimes better govern
their countries.

F rom struggles against


corruption, discrimination
notice that governments “ are
products of the societies they
Whitaker makes a claim that
it is the sociological nature
and bureaucracy, to the govern, and in Arab countries of a state that determines its
authoritarian nature of the it is often society, as much government’s capacity to rule
government and the household, as the government itself that effectively and fairly. While
Guardian journalist Brian stands in the way of progress.” his evidence does provide
Whitaker takes a look at the Noting examples of the cultural some foundation to this claim,
obstacles the Middle East impediments to progress that with numerous interviews
faces in his latest book What’s are present in the Middle East, paraphrasing his conclusion,
Really Wrong with the Middle the argument he presents
East. Written in the form of Whitaker argues overall is found wanting.
a statement more so than a
question, Whitaker’s analysis
that as a result His approach of looking beyond
of the region is framed around of playing the regimes and to society as a whole
the premise that when looking is not new. Political sociologists
at the Middle East, the problems blame game, both and anthropologists have long
of the region are always blamed the West and the looked at cultural clues for
on someone else. Whitaker on how governments develop.
the other hand argues that it is Middle East have The difference between their
neither the region itself nor the failed to notice analysis and Whitaker’s
West that is to blame because constructivist interpretation
everyone is at fault. that governments is that his lacks a theoretical
“ are products of framework around which he can
Whitaker argues that as a organize the various examples
result of playing the blame the societies they and testimonies that support
game, both the West and the
Middle East have failed to
govern his claim. It is not enough for
him to quote journalist Khaled
15 March, 2010 52
Reviews - Books

Diab saying that “Egypt has a faced not only in the Middle on the impact of globalization.
million Mubaraks” to prove his East but in most developing
point. As a result, what might regions, associating corruption Specifically, Whitaker argues
have been informative research in the Middle East to cultural that “Trade, travel and global
turns out to be a disappointing practices implies that only in communications are weakening
superficial analysis of the ways westernizing their culture could the influence of nation states
regimes and societies interact. the Middle East (and other and the power of governments
regions with a similar cultural to control what happens within
This flaw might have been code) break free from the their borders. At the same time,
avoided had Whitaker spent ordinary people are exposed to
more time addressing the ideas and ways of doing things
way the interaction between Despite being that they never know before…
government and
plays out. In noting that
society
framed around the question is not whether
change will occur but how long
households in the Arab world a logical it will take.”
have a tendency of being
paternalistic and authoritarian, fallacy, there However, there is no evidence
and that this explained the
authoritarian and paternalistic
is a correlation that trade, travel and global
communication are going to
nature of the government, between the fundamentally change Arab
Whitaker essentially created an
irrefutable argument the likes nature of Arab society thus encouraging its
government to adopt liberal
of which are regularly criticized societies and values. China, a repeatedly
in the academic circles that cited example, is especially
employ constructivist analyses. governments pertinent to this argument. A
powerhouse in international
Despite being framed around trade, China has managed to
a logical fallacy, there is liberalize economically and
a correlation between the cycle of nepotism and quasi- remain closed off politically.
nature of Arab societies and authoritarianism that limit its Global communications can be
governments. Highlighting potential. limited through governmental
this fact might have been control of the internet, a trend
a sufficiently interesting Whitaker’s intentions of present also in the Middle East.
point around which to focus highlighting the problems of Rather than rendering nation-
his analysis of the region. the Middle East in his book are states weak, globalization has
Unfortunately, in turning the however limited to just that. encouraged many of them
cultural dimension of the Arab While he presents a system for to revamp their control over
world into an explanation of its understanding the problems of society.
failures allows for the book to the Middle East, limited as it
develop a subtext of Western may be, he does not argue what Whitaker’s book is interesting
condescension. reforms should be put into place. for the personal accounts it
This is undoubtedly a result of provides on Arabs’ take on the
For example, one excerpt of the nature of his explanation. problems their region faces.
the book notes that “Jumping After all what reforms could However, the argument around
the queue may be a fairly be put into place that would which the book is structured
trivial matter but the obsession alter the cultural practices of a was not well thought out and
with kinship undermines the society? As a result, Whitaker it substantially weakens the
principles of meritocracy and dedicates only a short amount contribution of this book to the
equality.” Although nepotism of his attention to the possibility literature on the contemporary
is undoubtedly a true problem of gradual change dependent Middle East.

Issue 1549 53
Reviews - Readings

Readings
Books
Getting Our Way
Christopher Meyer
Sir Christopher Meyer, former British of the narrative. The episodes illustrate
Ambassador in Washington, has written how the three pillars of the national interest
this volume as a panegyric on the virtues (security, prosperity, and values) have
of the old-fashioned diplomat. In it he remained at the heart of British foreign
explores the importance of the diplomat in policy. Meyer’s principal focus throughout
British history. This figure, he argues, must the book is to explain that whilst much has
represent British interests and understand changed, these essentials of diplomacy
the interests of the country to which he has remain unaltered. This is a convincing
been sent. Getting Our Way recounts nine reminder that although Britain’s Foreign
stories from Britain's diplomatic annals Service currently appears demoralised and
over the last five hundred years, in which confused, the tasks it faces are much as
the diplomats themselves are at the centre they have been throughout history.

Where Power Lies: Prime Ministers and


the Media
Lance Price
Lance Price looks at the sorry state of British ends of the battlefield. His book combines
politics today, exposing almost a century of this experience with original interviews and
battles between the media and Britain’s political historical research to fashion a ­fascinating
leaders in an attempt to determine who is to account of how politicians and the media both
blame. This is the story of how for generations desire mastery of ­public opinion. His book is
powerful men and woman have struggled to both rich with ­historical detail and—entertaining
twist the facts to achieve their own ends. Price, in its contemporary anecdotes. This is a sharp
having been both a BBC reporter and Downing indictment of the bullies and megalomaniacs in
Street spin ­doctor, has had experience at both Downing Street and Fleet Street.

Start Up Nation; The Story of


Israel's Economic Miracle
Dan Senor and Saul Singer
Dan Senor, a senior Fellow for Middle Eastern natural resources—produces more start-up
studies at the Council on Foreign Relations companies than larger and more peaceful
and Saul Singer, a foreign policy advisor nations such as Japan, China, and the United
on Capitol Hill have both been on the front Kingdom? Drawing on examples from the
of policy and politics in the Middle East for country’s foremost inventors and investors, the
many years. In Start-Up Nations Senor & authors describe how Israel’s adversity-driven
Singer address the trillion-dollar question: culture fosters a combination of innovative
How is it that Israel—a young country of and entrepreneurial intensity. Much has been
7.1 million people, surrounded by enemies, written already about Israel yet very little is
in a constant state of conflict and with no understood of its economic growth.

15 March, 2010 54
Reviews - Readings

Reports
Son of Hamas
Mosab Hassan Yousef
Son of Hamas is a unique insider back on the organization. In Son of
account of the world’s most Hamas, new information is revealed
notorious terrorist organization. about the world’s most dangerous
The oldest son of Sheikh Hassan terrorist organization. The author
Yousef, a founding member of discusses his own role and the
Hamas, Mosab was groomed to difficult decision he had to make to
assume the mantle of leadership separate himself from family and
for many years until he turned his homeland.

The Future of NATO


The Council of Foreign Relations.
NATO has now been a cornerstone of in the face of new threats. This report
security in Europe for six decades yet is centrally concerned with NATO’s
its ability to continue playing such a increased involvement in conflicts
central role is unclear. In this Special outside Europe, with new frontiers in
Report, James M. Goldgeiger looks at Afghanistan and beyond. The resulting
how NATO can successfully adapt to work is sober and important. Goldgeiger
contemporary challenges. He writes that combines useful analysis and practical
the organization must expand its vision recommendations for policy makers
of defense in order to remain effective across the world.

Hostile Shores; Abuse and Refoulement of


Asylum Seekers and Refugees in Yemen
Human Rights Watch
For several years, tens of thousands of the report documents the harsh treatment
asylum seekers and refugees fleeing to of African refugees in Yemen, while
Yemen from the unstable Horn of Africa calling on the Yemeni government to
region have suffered terrible human end the systematic arrests of Ethiopian
rights abuses that have gone ignored by asylum seekers. The 53-page report also
the outside world. This report shows that urges the UNHCR to increase pressure
the reception awaiting those who survive on the Yemeni government to meet its
the journey to Yemen depends largely on obligations toward all asylum seekers and
where they come from. More specifically, refugees.

Issue 1549 55
Reviews - Reports

Discriminating In the Name of the Law


Group Denial
Repression of Kurdish Political and Cultural Rights in Syria
Human Rights Watch
November 2009

In a recent report, Human Rights Watch highlights the oppression Kurds in Syria face regularly.
Despite limits to their investigation because of a lack of compliance on the part of the Syrian
government, the report is an informative account on the current human rights situation for Kurds in
the country. HRW argues that despite their peaceful intentions, the Syrian government successfully
makes claims to legal codes in order to undermine the political and cultural rights of Kurds in the
country.

S ‘pas’ means ‘Thank you’ in


Kurdish. You would be greeted
with exclamations of surprise and joy
focusing on their oppression in
both political and cultural spheres
of life. The fate of Syrian Kurds is
perspective on
marginalization by citing the
Kurdish

testimonies of Kurdish activists,


if you used this word in response to largely overshadowed by headlines their family members and local
receiving a cup of tea from a Kurdish covering Turkey’s PKK fighters and human rights campaigners. Group
back alley joint in Damascus. Kurds Iraqi Kurdistan autonomy. However, Denial aims to provide evidence and
make up an estimated ten percent of HRW’s report has given a voice to raise awareness of the victimisation,
Syria’s total population of 20 million, Syria’s Kurds who may be less show- imprisonment and in some cases
but you would never know it. In their stopping in their fight for minority torture or even death of Kurdish
63-page report on Kurdish Syrians, rights but whose suffering is just as activists at the hands of the Syrian
Human Rights Watch (HRW) unearths profound. authorities.
the discrimination they experience
under the Syrian government, The report provides a personal The report skims the evolution of

15 March, 2010 56
Reviews - Reports

Kurdish experience in Syria since belonging to parties fighting for agreed to. Aside from the physical
the mid-twentieth century and is Kurdish freedoms have been arrested. torture are the psychological taunts,
primarily devoted to the events that derogatory and racist. “All Kurds
unfolded post 2004. This was the ‘Group Denial’ exposes the wider are traitors. You are a heavy guest
year that clashes with Syrian security scale oppression by the Syrian in Syria” were the words from the
forces at a football match resulted government on its entire population. mouth of a Syrian interrogator.
in the death of Kurdish fans. What The Syrian political system does
had been a long history of Kurdish not allow any room for criticism HRW makes a plea to the
grievances simmering under the against the ruling Ba’ath party. The international community for
surface suddenly erupted into the Emergency Law, in place since condemnation of repression of
open. Kurds took to the streets in large 1963, suspends basic freedoms by Syria’s Kurds. Syria’s government
scale demonstrations against their banning any form of opposition to has signed several international
oppression under the Syrian regime. the government. There are penal treaties that uphold human rights
36 people were killed, mostly Kurds, provisions that treat ‘any gathering of but it is clearly not playing by the
and over 2,000 arrested. Alarmed by more than seven people with the aim rules. The report finds the UN and
the mass rallying of Kurds, Syria’s of protesting a decision or measure other international organisations
government responded by clamping taken by the public authorities as a responsible for keeping the Syrian
down on any activities promoting riot that is punishable by jail’. government in check and holding
Kurdish culture or political it accountable for breeches of the
participation. The report documents guidelines.
the Syrian government’s efforts to
ban all Kurdish celebrations and to
The report entails The report excels in providing an
crush all events and demonstrations
promoting Kurdish rights.
a run down of the in-depth, close contact account but
is extremely narrow in approach. It

Syrian Kurds live mainly in the


Syrian security would have been enlightening to hear
more about the discrimination that
Northern and Eastern parts of the
country along the borders with Turkey
apparatus every Kurd faces on a daily basis,
in the workplace, at the market and
and Iraq. Unlike their Turkish and
Iraqi counterparts their parties don’t
involved in not just at public displays of culture
or dissension. The channels of study
demand autonomy and separation
from Syria. Syrian Kurdish activism the detention focus only on those Kurds actively
fighting for their rights. However it
uses a softer approach. Their
demonstrations are largely peaceful, and torture of is clear that the author has chosen his
fight and did not intend to provide
demanding only recognition of the
Kurdish population and equal rights activists an exhaustive investigation into
Kurdish rights in Syria.
to cultural and political expression.
Yet these peaceful protests are met This narrow approach is largely
with overwhelming violence from unavoidable, going hand in hand
the Syrian authorities. The Kurdish Just under half of the former with the problem that comes with
new year ‘Noruz’ celebrations have detainees interviewed by HRW carrying out research in an ultimately
been disrupted for several years said they had been tortured by the authoritarian nation. The Syrian
running. Since 2005 HRW found Syrian security forces. The report government denied HRW access to
that 14 political and cultural events entails a run down of the Syrian carry out research within the country.
have been broken up by the Syrian security apparatus involved in the The pool of evidence collected in
authorities. Yet these celebrations detention and torture of activists. this study covers mainly personal
pose no threat to the stability of Syria Locations and names of various accounts, the majority of which were
and are a mere expression of Kurdish security groups are given, shedding collected via telephone interviews.
heritage. some light on the murky world of There is little hard evidence provided
Syria’s intelligence agencies. First through individual case studies.
The key players in Kurdish activism hand accounts by those imprisoned That said, evidence concerning
are listed in affiliation with parties paint a bleak picture for human human rights abuses will never be
advocating Kurdish minority rights. rights within Syria’s prison walls. an exact science for as this report
The report reveals that prominent All 30 former detainees were demonstrates human life is more
leaders of various Kurdish parties held incommunicado when first than just a number.
no longer have immunity from imprisoned. The abuses read as a
prosecution and detention. Since litany of horrors, trampling over any For the full report please refer to:
2005 over a dozen leading figures human rights acts Syria may have www.hrw.org

Issue 1549 57
The Political Essay

Too Big To Fail?


The international efforts to support the Transitional Government of Somalia have been rather limited, only
aiming to contain the chaos which is consequence of the collapse of the Somali state. The Government will not
succeed on its own, as Sheik Sharif Ahmed recently expressed.

R ecently, Sheik Sharif Sheikh


Ahmed, President of the
according to a report to be presented in
the next few days to the UN Security
Transitional Government of Somalia, Council, up to 50% of the food aid is
spoke at an event organized by Chatham being diverted or sold to illicit sources,
House, the London-based think tank. including to militants. The scenario is so
When asked to highlight specific areas of grim that the report recommends the UN
Somalia’s economy which are suitable Security Council to suspend the entire
for foreign business cooperation, Sheik relief effort of the UN’s World Food
Sharif Ahmed said that “Somalia has Programme. In addition to the corruption
livestock, lots of camels, and fish-stock.” regarding the aid, the report accuses
Jokingly, the President also said “we have Somali authorities of collaborating with
many goats and sheep, I don’t know how pirates and selling diplomatic visas to
many exactly but [most importantly] Manuel Almeida pirates and insurgents for trips to Europe.
75% of the land can be cultivated.” The Initially hired by the UN Security Council
good news about this is that Somalia does Going back to Sheik Sharif Ahmed’s to track the violations on UN weapons
have natural resources. The bad news is speech, it is interesting to note that embargo on Somalia, the investigators’
that the President was not able to name the title of the President’s speech was mandate was expanded and became
one single sector of the economy where “Somalia at Crossroads and the Duty of related with any threats to stability and
it is suitable to place foreign investment, the International Community”. This title security in Somalia. A particular case
simply because there isn’t one—at least expresses how bad the situation is, and that the NYT journalist who read the
one that it is not illicit. how desperately Somalia’s government report refers to is the disappearance of
needs outside assistance, of all sorts. The an entire shipment of food. In this case,
The situation in Somalia is much central message of the speech is that to the contractor staged the hijacking of his
worse than in Iraq or Afghanistan, by ask Somalia to deal with the problem own trucks and sold the food.
any criteria. Its strategic importance, of militancy on its own is unfair and
however, is considered less significant. unrealistic. It also stressed the urgent need With the international community’s
One of the trends that is possible to for humanitarian assistance. Another attention focused elsewhere, there is
identify in a couple of opinion articles of the questions addressed to Somalia’s only a limited effort to address the chaos
published in the last few months by The President is an excellent example of how resulting from the collapse of the Somali
Majalla is how media coverage plays an deteriorated the security situation in the state. The UN might consider suspending
important part in setting the agenda of capital Mogadishu is. A Somali citizen in the food relief effort. The US—seriously
what is politically important. As Dr Jon the audience stood up and asked “Why overstretched—only keeps small counter-
Alterman, Director and Senior Fellow of is your presidential plane targeted by the terrorism operations in the region, while
the Middle East Program at the Centre militants with mortar shells every time the EU’s and NATO’s naval missions
for Strategic and International Studies in you go for a presidential trip abroad?” fight piracy across a mass of water that
Washington DC wrote in October 2009 is too big to patrol effectively. All these
in The Majalla, “it is hard to win a war It is quite accepted that, apart from Al- efforts seek only to contain the chaos
no one remembers you are fighting”. Dr Qaeda, nobody wants a weak Somalia, originated by the Somali state collapse,
Alterman was referring to Iraq, and how and nobody benefits from it. Not even in what is a minimalist approach that
a crisis in news agencies’ funds coupled its neighbours, such as Ethiopia or doesn’t actually address the root causes
with public fatigue on developments in Kenya. This has not been reflected by of the problem. Without international
Iraq led to an absence of media coverage a consistent endeavour to prevent the support to create minimum conditions
there. One of the negative consequences country’s collapse. The recent efforts— of security for the government and for
of the so-called “CNN effect”—a news by the US, Ethiopia, the UN, and the the development of anything resembling
cycle that demands political attention African Union—were all limited in normality, things will only get worse—
to issues that would otherwise go scope and in time. Today, not much aid if that is indeed possible. In the words
unnoticed—is that if a particular issue reaches Somalia, and even less reaches of Sheik Sharif Ahmed, “it is easier to
does not receive coverage, it ceases to be the common Somali citizen. As recently mention the areas where Somalia doesn’t
an issue altogether. reported by The New York Times, need help, than to mention those that do.

15 March, 2010 58
Issue 1549 53
15 March, 2010 THE MAJALLA 13

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