The Pandemic and Oil

The Pandemic & Oil

Dispatches From The Edge

Conn Hallinan

Sept. 6, 2020

During the reign of the Emperor Justinian I (527-565 AD), a mysterious plague spread out of the Nile Valley to Constantinople and finished off the Roman Empire. Appearing first in China and North India, the “Black Death” (Yersinia pestis) radiated throughout the Mediterranean and into Northern Europe. It may well have killed close to half the world’s population, some 50 million people.

Covid-19 is not the Black Death, but its impact may be civilizational, weakening the mighty, raising up the modest, and rearranging axes of power across the globe.

The Middle East is a case in point. Since the end of World War II, the wealth of the Persian Gulf monarchies—Saudi Arabia, the United Arab Emirates (UAE), Kuwait and Qatar—has overturned the traditional centers of power that dominated the region for millennia: Turkey, Egypt and Persia. While those civilizations were built on agriculture, industry and trade, the monarchs were fabulously wealthy simply because they sat on a sea of oil.

The monarchies—Saudi Arabia in particular—have used that wealth to overthrow governments, silence internal dissent, and sponsor a version of Islam that has spawned terrorists from the Caucasus to the Philippines.

And now they are in trouble.

The Saudi owned oil company, Aramco, just saw its quarterly earnings fall from $24.7 billion to $6.6 billion, a more than 73 percent drop from a year ago.

Not all the slump is due to the pandemic recession. Over the past eight years, Arab oil producers have seen their annual revenues decline from $1 trillion to $300 billion, reflecting a gradual shift away from hydrocarbons toward renewable energy. But Covid-19 has greatly accelerated that trend.

For countries like Saudi Arabia, this is an existential problem. The country has a growing population, much of it unemployed and young—some 70 percent of Saudis are under 30. So far, the royalty has kept a lid on things by handing out cash and make-work jobs, but the drop in revenues is making that more difficult. The Kingdom—as well as the UAE—has hefty financial reserves, but that money will not last forever.

In the Saudi case, a series of economic and political blunders have worsened the crisis.

Riyadh is locked into an expensive military stalemate in Yemen, while also trying to diversify the country’s economy. Crown Prince, Mohammed bin Salman, is pushing a $500 billion Red Sea mega project to build a new city, Neom, that will supposedly attract industry, technology and investment.

 However, the plan has drawn little outside money, because investors are spooked by the Crown Prince’s aggressive foreign policy and the murder of journalist Jamal Khashoggi.  The Saudis are borrowing up to $12 billion just to pay Aramco dividends of $75 billion a year.

The oil crisis has spread to Middle Eastern countries that rely on the monarchs for investments, aid and jobs for their young populations. Cairo sends some 2.5 million Egyptians to work in the Gulf states, and countries like Lebanon provide financial services and consumer goods.

Lebanon is now imploding, Egypt is piling up massive debts, and Iraq can’t pay its bills because oil is stuck at around $46 a barrel. Saudi Arabia needs a price of at least $95 a barrel to meet its budgetary needs—and to feed the appetites of its royals.

When the pandemic ends, oil prices will rise, but they are very unlikely to reach the levels they did in the early 2000s when they averaged $100 a barrel. Oil prices have been low ever since Saudi Arabia’s ill-conceived attempt to drive out smaller competitors and re-take its former market share.

In 2014, Riyadh deliberately drove down the price of oil to hurt smaller competitors and throttle expensive arctic drilling projects. But when China’s economy slowed, demand for oil fell, and the price has never recovered.

Of the top 10 oil producers in the world, five are in the Middle East: Saudi Arabia, Iraq, Iran, the UAE and Kuwait. All of them are in dire straits, although in Iran’s case this is exacerbated by US sanctions. With the exception of Iraq—where massive demonstrations have shaken the country’s leadership—most of those countries have been politically quiet. In the case of the monarchies, of course, it is hard to judge the level of dissatisfaction because they do not tolerate dissent.

But how long will the royals be able to keep the lid on?

“It is a transformation that has speeded up by the corona virus cataclysm,” says Middle East expert Patrick Cockburn, “and will radically change the politics of the Middle East.”

There is no region untouched by the current crisis. With the exception of the presidents of Brazil and the US, most world leaders have concluded that climate change is a reality and that hydocarbons are the major culprit. Even when the pandemic eases, oil use will continue to decline.

The virus has exposed the fault lines among the mighty. The United States has the largest economy in the world and is the greatest military power on the globe, and yet it simply collapsed in the face of Covid-19. With 4 percent of the world’s population the United States accounts for 22 percent of the pandemic’s fatalities.

And the US is not alone. The United Kingdom has more than 40,000 dead, and its economy has plummeted 9 percent. In contrast, Bangladesh, the world’s most crowded country, with twice Great Britain’s population, has around 4,000 deaths and its economy has contracted by only 1.9 percent.

“Covid-19 has blown away the myth about ‘First’ and ‘Third’ world competence,” says Steven Friedman, director of the Center for the Study of Democracy in Johannesburg.

Turkey, Vietnam, Cuba and Nigeria all have far better records fighting the virus than Great Britain and the European Union.

Partly this is because Europe’s population is older. While Europe’s average age in 43, Africa’s is 19. Younger people infected with corona virus generally have better outcomes than older people, but age doesn’t fully explain the differences.

While Turkey developed sophisticated tracking methods to monitor measles, and Nigeria did the same for Ebola, the US and United Kingdom were systematically starving or dismantling public health programs. Instead of stockpiling supplies to deal with a pandemic, Europe and the US relied on countries like China to quickly supply things like personal protection equipment on an “as needed” basis, because it was cheaper than producing their own or paying for storage and maintenance,

But “need” doesn’t work during a worldwide pandemic. China had its own health crisis to deal with. The lag time between the appearance of the virus and obtaining the tools to fight it is directly responsible for the wave of deaths among medical workers and first responders.

And while the Chinese economy has re-bounded—enough to tick the price of oil slightly upwards—the US, Great Britain and the EU are mired in what promises to be a painful recession.

The neo-liberal model of low taxes, privatization of public resources and reliance on the free market has demonstrated its incompetence in the face of a natural disaster. The relationship between wealth and favorable outcomes only works when that wealth is invested in the many, not the few.

The Plague of Justinian destroyed the Roman Empire. The pandemic is not likely to do that to the United States. But it has exposed the fault lines and structural weaknesses that wealth papers over—until  something like Covid-19 comes along to shake the glitter off the system.

                                    —30—

Conn Hallinan can be read at dispatchesfromtheedgeblog.wordpress.com and middleempoireseries.wordpress.com

Dispatches News Awards: Are You Serious?

2019 News Awards

Dispatches From The Edge

Conn Hallinan

Jan. 21, 2020

 

Each year Dispatches From The Edge gives awards to individuals, companies and governments that make reading the news a daily adventure. Here are the awards for 2019

 

Life Imitates Art Award to the US Border Control and the Trump administration that are currently holding between 11,000 and 14,000 immigrant children under the age of 18 in internment camps. According to the London Review of Books, a Border Patrol agent gave a three-year old the choice of being with her mother or her father. When the father was being taken away the child began to cry, only to be scolded by the Agent: “You said with Mom.” The child’s name: Sofi.

 

Dr. Strangelove Award to the US Defense Department for its unique solution to the problem of supplying troops in war zones. Between 2001 and 2010, US soldiers escorting fuel convoys in Afghanistan and Iraq accounted for more than half the casualties suffered by American forces. The solution? Portable nuclear power plants that would generate between 1 and 10 megawatts and service up to 1,000 troops. The “micro-nukes” would be “semiautonomous,’ that is, they wouldn’t need on-site operators. Even small reactors contain significant amounts of highly radioactive and long-lived isotopes, like cesium-137. I mean, what could go wrong?

 

The Fake News Award to the US government’s Radio Marti. The station, run by the Agency for Global Media that also includes Voice of America, got caught faking a mortar attack during a broadcast from Managua, Nicaragua. One of the journalists involved in the deception, Tomas Regalado Jr., is the son of Tomas Regalado Sr., who oversees Radio and TV Marti.’ Radio Marti broadcast several shows last year that described philanthropist and Democratic Party donor George Soros as “a nonbeliving Jew of flexible morals.”

 

Golden Jackal Award to the US arms company Raytheon, with a tip of the hat to Lockheed Martin and Boeing, for landing more than $1 billion in intermediate missile contracts. The contracts were awarded shortly after the Trump Administration withdrew from the Intermediate Nuclear Force Agreement (INF) in 2018. Intermediate missiles are considered especially destabilizing because their short flight time means all sides must keep their missiles on a hair trigger.

 

“The withdrawal from the INF Treaty has fired the starting pistol on a new Cold War,” says Beatrice Fihn of the International Campaign to Abolish Nuclear Weapons.

 

Runner up is ArmorMe, a company that produces children’s backpacks. Field-tested by the Israeli military, the backpack includes a sheet of bullet resistant Kevlar. According to the company, the backpack “looks and feels like a regular eco-friendly canvas backpack—so your child will fit in with his or her friends.” But if a shooter shows up, it provides “protection for your child, peace-of-mind for yourself.”

 

Catherine de’ Medici Award *to the Pentagon for contaminating drinking water at military bases with polyfluoroalkyl, or PFAS, a major ingredient of fire fighting foam. The chemical causes cancer, kidney failure, immune system suppression and other health problems. The military has known about the contamination for decades but failed to tell anyone about it until recently. Scientists have dubbed PFAS the “forever chemical,” because it if virtually indestructible.

 

According to the Pentagon, the military is now moving on the problem. “I’m proud of what the Department of Defense has done in the last two-plus years,” says the military’s deputy assistant for the environment, Maureen Sullivan. But asked how many people could be affected, she replied that she “couldn’t hazard a guess—we’re tracking water sources—not people.”

*Catherine de’ Medici 1519-1589 was known as the “great poisoner.”

 

The Golden Grinch Award to the Trump administration for cutting food stamps for up to 750,000 people and limiting benefits for an estimated 3.7 million people, while spending $649 billion on this year’s military budget. While the government was handing out $28 billion to farmers hurt by the White House’s trade war with China (the vast majority of which, according to the Environmental Working Group, went to large, corporate farms), it was altering the poverty index to make it more difficult for the poor to receive nutritional assistance.

 

In the meantime, Huntington Ingalls Industries was awarded $15.2 billion to build two aircraft carriers to add to the US’s 10-carrier fleet. The Russians have one (and it is small, old and recently damaged in a fire) and China has two (with plans for one more).

 

Great Moments in Science has two winners:

• Republican Senator Mile Lee (Utah), who contends that the solution to climate change won’t be found by governments or programs like the Green New Deal, but by having “more babies.”

 

• Republican Representative Mike Kelly (Pennsylvania) who says he is a “person of color, I’m white. I’m Anglo Saxon,” and proud to be from “Ireland.” Well, Kelly is right about the white and Irish part. The O’Kellys were from Tyrone in the north, but the Anglo Saxons (and Normans) invaded in 1169, drove the Kellys out of Tyrone and ruled the island for more than 800 years. A visit to Geni.com might help.

 

The Henry VIII Award to Saudi Crown Prince Mohammed bin Salman who doubled the number of beheadings in 2018 and is on track to break that record in 2019. Before Salman came to power in 2017, the Saudis had beheaded 67 people in the preceding eight months. He increased the pace to 133 in 2018, and is on pace to behead over 170 people in 2019. While many are South Asians coerced into smuggling drugs, others are oppressed Shiites from Saudi Arabia’s oil-rich eastern provinces. Of the 37 beheaded on a single day in April, 33 were Shiites.

 

Victims are not allowed lawyers and torture is an accepted way of carrying out investigations. Three were minors, a violation of international law. No American administration has protested the execution of the minors or the use of torture to extract confessions.

 

The Terminator Award to the US, United Kingdom, South Korea, Russia, Israel and Australia for trying to torpedo a United Nations treaty banning “lethal autonomous weapons systems.” The Campaign to Stop Killer Robots is trying to require “meaningful human control over the use of force” in such devices lest “Lives be taken based on algorithms.” Some 28 governments back a ban on such weapons.

 

Marie Antoinette Award to Francios de Rugy, president of the French Assembly and close ally of President Emmanuel Macron. The Macron administration is trying to increase the age of retirement and cut pension plans. Macron also sliced unemployment benefits and public services, while cutting taxes for the wealthy.

 

In the meantime, Mr. de Rugy has been hosting lavish dinners for friends and family at his official residence, the Hotel de Lassay, featuring lobster tails and bottles of 2004 Mouton-Rothschild at $560 a pop.

 

Runner up in this category is the British Foreign Office, which spent $15.8 million to purchase a full-floor apartment in New York City to house the British Consul General. In the meantime, the Conservative government refuses to pay for re-housing the survivors of the terrible 2017 Grenfell fire that incinerated more than 70 people.

 

And when British Foreign Office rescues women who are forced into marriages in places like Pakistan and Somalia, the victims are billed for services. Four women, whom the Foreign Office saved from a religious institution in Somalia, where they were chained and whipped to force them into marriage, billed them $900 apiece for their rescue. The women’s passports were confiscated until they paid up.

 

The Golden Lemon Award goes—once again—to Lockheed Martin for its F-35 Lightening stealth fighter, at $1.5 trillion dollars, the most expensive weapon system in US history. According to Defense News, pilots have to carefully watch their speed lest they damage the airframe and stealth coating. Apparently cockpit pressure spikes cause “excruciating” air and sinus pain. The pilot’s $400,000 helmets don’t work very well, and each helmets is designed to fit only one pilot. It takes several days to get a replacement helmet if one breaks.

 

The June readiness rate for the F-35—that is the percentage of planes that can make it into the air—was 8.7 percent, not quite up to the 80 percent readiness standard for all other aircraft. But things are looking up: In May only 4.7 percent of the planes were ready to fly.

 

Over 300 F-35s have been sold to allies, with Japan a prime customer. One of those F-35s crashed in April, killing its pilot and grounding the fleet. According to the Japanese, the plane had been forced to make seven emergency landings prior to the crash. The Americans and the Japanese are desperately trying to find the wreckage, because “The F-35A is an airplane that contains significant amounts of secrets that need to be protected” from opponents, said Japanese Defense Minister Takeshi Iwaya.

 

A modest proposal: give our F-35s to all potential enemies and let them have a really expensive plane that doesn’t work.

 

The Golden Oops Award to US Strategic Air Command that tweeted that it was prepared to drop something “much bigger” than the New Year’s Eve crystal ball in Times Square. The tweet was followed by a video of a B-2 bomber dropping bombs. The blowback on social media was so fierce that the military quickly pulled the video and apologized that it “was in poor taste and does not reflect our values.”

 

The Ethnic Sensitivity Award to the US State Department’s director of policy planning, Kiron Skinner, who, at a public talk last April, said that the competition between the US and China was bitter, because “it’s the first time that we will have a great-power competitor that is not Caucasian.” This would come as a surprise to Pearl Harbor veterans. So exactly who does Skinner think we fought at Midway, Guadalcanal, and Saipan?

 

The Kudo Award to:

• The Stansted 15, who broke into the Stansted International Airport north of London in September and chained themselves together to block the British Home Office from deporting refugees from Ghana and Nigeria.

 

• Captain Pia Klemp, for rescuing more than 1,000 refugees from drowning in the Mediterranean. She is facing a 20-year prison sentence in Italy, even though not rescuing them would have been a violation of Article 98 of the 1982 UN Law of Sea.

 

• Artist Philipp Ruch, who constructed a replica of Berlin’s Holocaust Memorial next to the house of far-right Alternative For Germany Thuringia state legislator Bjorn Hocke. Hocke has called the Berlin memorial a “monument of shame.”

 

• Environmental activist Greta Thunberg, the little Swede that could.

 

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A New Middle East Is Coming

Middle East: A Complex Re-alignment

Dispatches From The Edge

Oct. 28, 2019

 

 

The fallout from the September attack on Saudi Arabia’s Aramco oil facilities is continuing to reverberate throughout the Middle East, sidelining old enmities—sometimes for new ones—and re-drawing traditional alliances. While Turkey’s recent invasion of northern Syria is grabbing the headlines, the bigger story may be that major regional players are contemplating some historic re-alignments.

 

After years of bitter rivalry, the Saudis and the Iranians are considering how they can dial down their mutual animosity. The formerly powerful Gulf Cooperation Council (GCC) of Persian Gulf monarchs is atomizing because Saudi Arabia is losing its grip. And Washington’s former domination of the region appears to be in decline.

 

Some of these developments are long-standing, pre-dating the cruise missile and drone assault that knocked out 50 percent of Saudi Arabia’s oil production. But the double shock—Turkey’s lunge into Syria and the September missile attack—is accelerating these changes.

 

Pakistani Prime Minister, Imran Khan, recently flew to Iran and then on to Saudi Arabia to lobby for détente between Teheran and Riyadh and to head off any possibility of hostilities between the two countries. “What should never happen is a war,” Khan said, “because this will not just affect the whole region…this will cause poverty in the world. Oil prices will go up.”

 

According to Khan, both sides have agreed to talk, although the Yemen War is a stumbling block. But there are straws in the wind on that front, too. A partial ceasefire seems to be holding, and there are back channel talks going on between the Houthis and the Saudis.

 

The Saudi intervention in Yemen’s civil war was supposed to last three months, but it has dragged on for over four years. The United Arab Emirates (UAE) was to supply the ground troops and the Saudis the airpower. But the Saudi-UAE alliance has made little progress against the battle-hardened Houthis, who have been strengthened by defections from the regular Yemeni army.

 

Air wars without supporting ground troops are almost always a failure, and they are very expensive. The drain on the Saudi treasury is significant, and the country’s wealth is not bottomless.

 

Crown Prince Mohammed bin Salman is trying to shift the Saudi economy from its overreliance on petroleum, but he needs outside money to do that and he is not getting it. The Yemen War—which, according to the United Nations is the worst humanitarian disaster on the planet—and the Prince’s involvement with the murder and dismemberment of Saudi journalist Jamal Khashoggi, has spooked many investors.

 

Without outside investment, the Saudi’s have to use their oil revenues, but the price per barrel is below what the Kingdom needs to fulfill its budget goals, and world demand is falling off. The Chinese economy is slowing— the trade war with the US has had an impact—and European growth is sluggish. There is a whiff of recession in the air, and that’s bad news for oil producers.

 

Riyadh is also losing allies. The UAE is negotiating with the Houthis and withdrawing their troops, in part because the Abu Dhabi has different goals in Yemen than Saudi Arabia, and because in any dustup with Iran, the UAE would be ground zero. US generals are fond of calling the UAE “little Sparta” because of its well trained army, but the operational word for Abu Dhabi is “little”: the Emirate’s army can muster 20,000 troops, Iran can field more than 800,000 soldiers.

 

Saudi Arabia’s goals in Yemen are to support the government-in-exile of President Rabho Mansour Hadi, control its southern border and challenge Iran’s support of the Houthis. The UAE, on the other hand, is less concerned with the Houthis but quite focused on backing the anti-Hadi Southern Transitional Council, which is trying to re-create south Yemen as a separate country. North and south Yemen were merged in 1990, largely as a result of Saudi pressure, and it has never been a comfortable marriage.

 

Riyadh has also lost its grip on the Gulf Cooperation Council. Oman, Kuwait, and Qatar continue to trade with Iran in spite of efforts by the Saudis to isolate Teheran,

 

The UAE and Saudi Arabia recently hosted Russian President Vladimir Putin, who pressed for the 22-member Arab League to re-admit Syria. GCC member Bahrain has already re-established diplomatic relations with Damascus. Putin is pushing for a multilateral security umbrella for the Middle East, which includes China.

 

“While Russia is a reliable ally, the US is not,” Middle East scholar Mark Katz told the South Asia Journal. And while many in the region have no love for Syria’s Assad, “they respect Vladimir Putin for sticking by Russia’s ally.”

 

The Arab League—with the exception of Qatar—denounced the Turkish invasion and called for a withdrawal of Ankara’s troops. Qatar is currently being blockaded by Saudi Arabia and the UAE for pursuing an independent foreign policy and backing a different horse in the Libyan civil war. Turkey is Qatar’s main ally.

 

Russia’s 10-point agreement with Turkey on Syria has generally gone down well with Arab League members, largely because the Turks agreed to respect Damascus’s sovereignty and eventually withdraw all troops. Of course, “eventually” is a shifty word, especially because Turkey’s goals are hardly clear.

 

Turkish President Recep Tayyip Erdogan wants to drive the Syrian Kurds away from the Turkish border and move millions of Syrian refugees into a strip of land some 19 miles deep and 275 miles wide. The Kurds may move out, but the Russian and Syrian military—filling in the vacuum left by President Trump’s withdrawal of American forces—have blocked the Turks from holding more than the border and one deep enclave, certainly not one big enough to house millions of refugees.

 

Erdogan’s invasion is popular at home—nationalism plays well with the Turkish population and most Turks are unhappy with the Syrian refugees—but for how long? The Turkish economy is in trouble and invasions cost a lot of money. Ankara is using proxies for much of the fighting, but without lots of Turkish support those proxies are no match for the Kurds—let alone the Syrian and Russian military.

 

That would mainly mean airpower, and Turkish airpower is restrained by the threat of Syrian anti-aircraft and Russian fighters, not to mention the fact that the Americans still control the airspace. The Russians have deployed their latest fifth-generation stealth fighter, the SU-57, and a number of MiG-29s and SU-27s, not planes the Turks would wish to tangle with. The Russians also have their new mobile S-400 anti-aircraft system, and the Syrians have the older, but still effective, S-300s.

 

In short, things could get really messy if Turkey decided to push their proxies or their army into areas occupied by Russian or Syrian troops. There are reports of clashes in Syria’s northeast and casualties among the Kurds and Syrian Army, but a serious attempt to push the Russians and the Syrians out seems questionable.

 

The goal of resettling refugees is unlikely to go anywhere. It will cost some $53 billion to build an infrastructure and move two million refugees into Syria, money that Turkey doesn’t have. The European Union has made it clear it won’t offer a nickel, and the UN can’t step in because the invasion is a violation of international law.

 

When those facts sink in, Erdogan might find that Turkish nationalism will not be enough to support his Syrian adventure if it turns into an occupation.

 

The Middle East that is emerging from the current crisis may be very different than the one that existed before those cruise missiles and drones tipped over the chessboard. The Yemen War might finally end. Iran may, at least partly, break out of the political and economic blockade that Saudi Arabia, the US and Israel has imposed on it. Syria’s civil war will recede. And the Americans, who have dominated the Middle East since 1945, will become simply one of several international players in the region, along with China, Russia, India and the European Union.

 

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A Wounded Erdogan Could Be Dangerous

Turkey Takes a Turn

Dispatches From The Edge

Conn Hallinan

June 24, 2019

 

For the second time in a row, Turkish voters have rebuked President Recep Tayyip Erdogan’s handpicked candidate for the mayoralty of Istanbul, Turkey’s largest and wealthiest city. The secular Republican People’s Party (CHP) candidate, Ekrem Imamoglu, swamped Erdogan’s Justice and Development Party (AKP) candidate Binali Yildirim in an election that many see as a report card on the President’s 17 years of power.

 

So what does the outcome of the election mean for the future of Turkey, and in particular, its powerful president? For starters, an internal political realignment, but also maybe a dangerous foreign policy adventure.

 

Erdogan and his Party have been weakened politically and financially by the loss of Istanbul, even though the President did his best to steer clear of the campaign over the past several weeks. Since it was Erdogan that pressured the Supreme Election Council into annulling the results of the March 31 vote, whether he likes it or not, he owns the outcome.

 

His opponents in the AKP are already smelling blood. Former Prime Minister Ahmet Davutoglu, who Erdogan sidelined in 2016, has begun criticizing the President’s inner circle, including Berat Albayrak, his son-in-law and current Finance Minister. There are rumors that Dovutoglu and former deputy Prime Minister Ali Babacan are considering forming a new party on the right.

 

Up until the March election that saw the AKP and its extreme nationalist alliance partner, the National Movement Party (MHP), lose control of most the major cities in the country, Erdogan had shown an almost instinctive grasp of what the majority of Turks wanted. But this time out the AKP seemed tone deaf. While Erdogan campaigned on the issue of terrorism, polls showed most Turks were more concerned with the disastrous state of the economy, rising inflation and growing joblessness.

 

The “terrorist threat” strategy—short hand for Turkey’s Kurdish minority—not only alienated conservative Kurds who reliably voted for the AKP, but forced the opposition into a united front. Parties ranging from the leftist Kurdish People’s Democratic Party and the Communist Party, to more conservative parties like the Good Party, withdrew their candidates from the Istanbul’s mayor’s race and lined up behind the CHP’s Imamoglu.

 

The AKP—long an electoral steamroller—ran a clumsy and ill-coordinated campaign. While Yildirim tried to move to the center, Erdogan’s inner circle opted for a hard right program, even accusing Imamoglu of being a Greek (and closet Christian) because he hails from the Black Sea area of Trabzon that was a Greek center centuries ago. The charge backfired badly, and an area that in the past was overwhelming supportive of the AKP shifted to backing a native son. Some 2.5 million former residents of the Black Sea live in Istanbul, and it was clear which way they voted.

 

So what does the election outcome mean for Turkish politics? Well, for one, when the center and left unite they can beat Erdogan. But it also looks like there is going to be re-alignment on the right. In the March election, the extreme right MHP picked up some disgruntled AKP voters, and many AKP voters apparently stayed home, upset at the corruption and the anti-terrorist strategy of their party. It feels a lot like 2002, when the AKP came out of the political margins and vaulted over the rightwing Motherland and True Path parties to begin its 17 years of domination. How far all this goes and what the final outcome will be is not clear, but Erdogan has been weakened, and his opponents in the AKP are already sharpening their knives.

 

An Erdogan at bay, however, can be dangerous. When the AKP lost its majority in the 2015 general election, Erdogan reversed his attempt to peacefully resolve tensions with the Kurds and, instead, launched a war on Kurdish cities in the country’s southeast. While the war helped him to win back his majority in an election six months later, it alienated the Kurds and laid the groundwork for the AKP’s losses in the March 2019 election and the Istambul’s mayor’s race.

 

The fear is that Erdogan will look for a crisis that will resonate with Turkish nationalism, a strategy he has used in the past.

 

He tried to rally Turks behind overthrowing the government of Bashar al-Assad in Syria, but the war was never popular. Most Turks are not happy with the 3.7 million Syrian refugees currently camped in their country, nor with what increasingly appears to be a quagmire for the Turkish Army in Northern and Eastern Syria.

 

In general, Turkey’s foreign policy is a shambles.

 

Erdogan is trying to repair fences with Saudi Arabia and the United Arab Emirates, because he desperately needs the investment that Gulf monarchs can bring to Turkey. But the price for that is a break with Iran and ending his support for the Muslim Brotherhood. While the Turkish President might be willing to dump the Brotherhood, Erdogan feels he needs Iran in his ongoing confrontation with the Kurds in Syria, and, at least at this point, he is unwilling to join Saudi Arabia’s jihad on Tehran.

 

In spite of the Turkish President’s efforts to normalize ties with Riyadh, Saudi Arabia recently issued a formal warning to Saudi real estate investors and tourists that Turkey is “inhospitable.” Saudi tourism is down 30 percent, and Turkish exports to Saudi Arabia are also off.

 

Erdogan is also wrangling with the US and NATO over Ankara’s purchase of the Russian S-400 anti-aircraft system, a disagreement that threatens further damage to the Turkish economy through US-imposed sanctions. There is even a demand by some Americans to expel Turkey from NATO, echoed by similar calls from the Turkish extreme right.

 

Talk of leaving NATO, however, is mostly Sturm und Drang. There is no Alliance procedure to expel a member, and current tensions with Moscow means NATO needs Turkey’s southern border with Russia, especially its control of the Black Sea’s outlet to the Mediterranean.

 

But a confrontation over Cyprus—and therefore with Greece—is by no means out of the question. This past May, Turkey announced that it was sending a ship to explore for natural gas in the sea off Cyprus, waters that are clearly within the island’s economic exploitation zone.

 

“History suggests that leaders who are losing their grip on power have incentives to organize a show of strength and unite their base behind an imminent foreign threat,” writes Greek investigative reporter Yiannis Baboulias in Foreign Policy. “Erdogan has every reason to create hostilities with Greece—Turkey’s traditional adversary and Cyprus’s ally—to distract from his problems at home.”

 

Turkey has just finished large-scale naval exercises—code name “Sea Wolf”— in the Aegean and Eastern Mediterranean and, according to Baboulias, Turkish warplanes have been violating Greek airspace.

 

Cyprus, along with Israel and Egypt, has been trying to develop Cypriote offshore gas resources for almost a decade, but Turkey has routinely stymied their efforts. The European Union (EU) supports the right of Cyprus to develop the fields, and the EU’s foreign policy head, Federica Mogherini, called on Turkey to “respect the sovereign rights of Cyprus to its exclusive economic zone and refrain from such illegal actions.” While Mogherini pledged “full solidarity” with Cyprus, it is hard to see what the big trade organization could do in the event of a crisis.

 

Any friction with Cyprus is friction with Greece, and there is a distinct possibility that two NATO members could find themselves in a face off. Erdogan likes to create tensions and then negotiate from strength, a penchant he shares with US President Donald Trump. While it seems unlikely that it will come to that, in this case Turkish domestic considerations could play a role.

 

A dustup with Ankara’s traditional enemy, Greece, would put Erdogan’s opponents in the AKP on the defensive and divert Turks attention from the deepening economic crisis at home. It might also allow Erdogan to use the excuse of a foreign policy crisis to strengthen his already considerable executive powers and to divert to the military budget monies from cities the AKP no longer control.

 

Budget cuts could stymie efforts by the CHP and left parties to improve conditions in the cities and to pump badly needed funds into education. The AKP used Istanbul’s budget as a piggy bank for programs that benefited members of Erdogan’s family or generated kickbacks for the Party from construction firms and private contractors. Erdogan has already warned his opponents that they “won’t even be able to pay the salaries of their employees.” The man may be down but he is hardly beaten. There are turbulent times ahead for Turkey.

 

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Conn Hallinan can be read at dispatchesfromtheedgeblog.wordpress.com and middleempireseries.wordpress.com

 

 

 

 

 

 

 

 

 

 

 

Iran: The Drift Toward War

Edging Toward War With Iran?

Dispatches From The Edge

Feb. 1, 2019

 

 

Keeping track of the Trump administration’s foreign policy is like trying to track a cat on a hot tin roof: We’re pulling out of Syria (not right away). We’re leaving Afghanistan (sometime in the future). Mexico is going to pay for a wall (no, it isn’t). Saudi Arabia, Russia, the European Union, China, Turkey, North Korea—one day, friends, another day, foes. Even with a scorecard, it’s hard to tell who’s on first.

 

Except for Iran, where a policy of studied hostility has been consistent from the beginning. Late last year, National Security Advisor John Bolton pressed the Pentagon to produce options for attacking Iran, and he has long advocated for military strikes and regime change in Teheran. And now, because of a recent internal policy review on the effect of US sanctions, Washington may be is drifting closer to war.

 

According to “On Thin Ice,” a report by the International Crisis Group (ICG), the Trump administration has concluded that its “maximum pressure” campaign of sanctions has largely failed to meet any of the White House’s “goals” of forcing Iran to re-negotiate the 2015 nuclear agreement or alter its policies in the Middle East.

 

While the sanctions have damaged Iran’s economy, the Iranians have proved to be far more nimble in dodging them than Washington allowed for. And because the sanctions were unilaterally imposed, there are countries willing to look for ways to avoid them.

 

“If you look at the range of ultimate objectives” of the administration, from encouraging “protests that pose an existential threat to the system, to change of behavior, to coming back to the negotiating table, none of that is happening,” Ali Vaez of the ICG’s Iran Project, told Laura Rozen of Al-Monitor.

 

That should hardly come as a shock. Sanctions rarely achieve their goals and virtually never when they are imposed by one country, even one as powerful as the US. More than 50 years of sanctions aimed at Cuba failed to bring about regime change, and those currently aimed at Russia have had little effect beyond increasing tensions in Europe.

 

This time around, the US is pretty much alone. While the Trump administration is preparing to withdraw from the 2015 nuclear agreement—the Joint Comprehensive Plan of Action—the European Union (EU) is lobbying Iran to stay in the pact. Russia, China, Turkey and India have also made it clear that they will not abide by the US trade sanctions, and the EU is setting up a plan to avoid using dollars.

 

But the failure of the White House’s sanctions creates its own dangers because this is not an American administration that easily accepts defeat. On top of that, there is a window of opportunity for striking Iran that will close in a year, making an attack more complicated.

 

The nuclear agreement imposed an arms embargo on Iran, but if Teheran stays in the agreement, that embargo will lift in 2020, allowing the Iranians to buy weapons on the international market. Beefing up Iran’s arms arsenal would not do much to dissuade the US, but it might give pause to Saudi Arabia or the United Arab Emirates (UAE), two of Teheran’s most implacable enemies.

 

It is not clear who would be part of a coalition attack on Iran. Saudi Arabia and the UAE would almost certainly be involved, but that pair hardly has the Iranians quaking in their boots. The rag-tag Houthi army has fought the two Gulf monarchies to a standstill in Yemen, in spite of not having any anti-aircraft to challenge the Saudi air war.

 

Iran is a different matter. Its Russian built S-300 anti-aircraft system might not discomfort the US and the Israelis, but Saudi and UAE pilots could be at serious risk. Once the embargo is lifted, Iran could augment its S-300 with planes and other anti-aircraft systems that might make an air war like the one the Gulf monarchs are waging in Yemen very expensive.

 

Of course, if the US and/or Israel join in, Iran will be hard pressed. But as belligerent as Bolton and the Israeli government are toward Iran, would they initiate or join a war?

 

Such a war would be unpopular in the US. Some 63 percent of Americans oppose withdrawing from the nuclear agreement and by a margin of more than two to one, oppose a war with Iran. While 53 percent oppose such a war—37 percent strongly so—only 23 percent would support a war with Iran. And, of those, only 9 percent strongly support such a war.

 

The year 2020 is also the next round of US elections where control of the Senate and the White House will be in play. While wars tend to rally people to the flag, the polls suggest a war with Iran is not likely to do that. The US would be virtually alone internationally, and Saudi Arabia is hardly on the list of most American’s favorite allies.

 

And it is not even a certain that Israel would join in, although Prime Minister Benjamin Netanyahu calls Iran an “existential threat.” Polls show that the Israeli public is hardly enthusiastic about a war with Iran, particularly if the US is not involved.

 

The Israeli military is more than willing to take on Iranian forces in Syria, but a long-distance air war would get complicated. Iraq and Lebanon would try to block Israel from using their airspace to attack Iran, as would Turkey. The first two countries might not be able to do much to stop the Israelis, but flying over a hostile country is always tricky, particularly if you have to do it for an extended period of time. And anyone who thinks the Iranians are going to toss in the towel is delusional.

 

Of course Israel has other ways to strike Iran, including cruise missiles deployed on submarines and surface craft. But you can’t win a war with cruise missiles, you just blow a lot of things up.

 

There are deep fissures among the Gulf monarchs. Qatar has already said that it will have nothing to do with an attack on Iran, and Oman is neutral. Kuwait has signed a military cooperation agreement with Turkey because the former is more worried about Saudi Arabia than it is Iran, and with good reason.

 

A meeting last September of Saudi Crown Prince Mohammed bin Salman and Emir Sabah Al-Sabah of Kuwait to discuss problems between the two countries apparently went badly. The two countries are in a dispute over who should exploit their common oil fields at Khafji and Wafra, and the Saudis unilaterally stopped production. The Kuwaitis say they lost $18 billion revenues and want compensation.

 

The bad blood between the two countries goes back to the breakup of the Ottoman Empire, when Saudi Arabia refused to accept the borders that the British drew for Kuwait and instead declared war. In 1922 the border was re-drawn with two-thirds of Kuwait’s territory going to Saudi Arabia.

 

Lebanese legal scholar, Ali Mourad, told Al-Monitor that Kuwait has tightened its ties to Turkey because “they are truly afraid of a Saudi invasion,” especially given “the blank check Trump has issued” to Prince Salman.

 

Whether Kuwait’s embrace of Turkey will serve as a check on the Saudis is uncertain. Prince Salman has made several ill-considered moves in the region, from trying to overthrow the government of Lebanon, blockading Qatar, to starting a war with Yemen. Turkey and Saudi Arabia are currently at odds over the latter’s support for the Muslim Brotherhood, probably the only thing that the Saudi princes hate more than Iran.

 

Would—or could—Ankara really defend Kuwait from a Saudi attack? Turkey is currently bogged down in Northern Syria, at war with its own Kurdish population, and facing what looks like a punishing recession. Its army is the second largest in NATO, and generally well armed, but it has been partly hollowed out by purges following the 2015 coup attempt.

 

So is US National Security Advisor Bolton just blowing smoke when he talks about regime change in Iran? Possibly, but it is a good idea to take the neo-conservatives at their word. The US will try to get Iran to withdraw from the nuclear pact by aggressively tightening the sanctions. If Teheran takes the bait, Washington will claim the legal right to attack Iran.

 

Bolton and the people around him engineered the catastrophes in Afghanistan and Iraq (the Obama administration gets the blame for Libya and Yemen), and knocking out Iran has been their long time goal. If they pull it off, the US will ignite yet another forever war.

 

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Iran & Sanctions: A Prelude to War?

Iran: Sanctions & War

Dispatches From The Edge

May 29, 2018

 

The question is: has the Trump administration already made a decision to go to war with Iran, similar to the determination of the Bush administration to invade Iraq in the aftermath of the 2001 attacks on New York and Washington?

 

Predictions are dicey things, and few human institutions are more uncertain than war. But several developments have come together to suggest that the rationale for using sanctions to force a re-negotiation of the Joint Comprehensive Plan of Action (JCPOA) is cover for an eventual military assault by the US, Israel and Saudi Arabia aimed at regime change in Teheran.

 

As clueless as the Trump administration is on foreign policy, the people around the White House—in particular National Security Advisor John Bolton—know that sanctions rarely produce results, and unilateral ones almost always fail.

 

Sanctions aimed at Cuba, North Korea, Iraq and Libya did not dislodge any of those regimes and, in the case of North Korea, spurred Pyongyang into producing nuclear weapons. Iraq’s Saddam Hussein and Libya’s Muammar al-Qaddafi were eventually overthrown, but by American firepower, not sanctions.

 

The only case in which sanctions produced some results were those applied to Iran from 2010 to 2015. But that embargo was multi-lateral and included China, India, and one of Iran’s major customers, the European Union (EU). When the U.S. unilaterally applied sanctions to Cuba, Iran and Libya in 1996, the move was a conspicuous failure.

 

This time around, the White House has made no effort to involve other countries. The Trump plan is to use the power of the American economy to strong-arm nations into line. Back our sanctions, threatens the administration, or lose access to the US market. And given that the world uses the dollar as its de-facto international currency, financial institutions may find themselves barred from using the Society for Worldwide Interbank Telecommunications (SWIFT), the American-controlled network that allows banks and finance centers to transfer money from country to county.

 

Those threats have not exactly panicked the rest of the world. China and India, which between them buy more than 1 million of Iran’s 2.1 million barrels per day production, say they will ignore the sanctions. According to Federica Mogherini, the EU’s foreign affairs minister, “The European Union is determined to act in accordance with its security interests and protect its economic investments.”

 

Adding up all the countries that will go along with the sanctions—including South Korea and Japan–will cut Teheran’s oil exports by 10% to 15%, nothing like the 50% plus that Iran lost under the prior sanctions regime.

 

In short, the sanctions won’t work, but were they really meant to?

 

It is possible that the White House somehow thinks they will—delusion is a characteristic of the Oval Office these days—but other developments suggest the administration is already putting in place a plan that will lead from economic sanctions to bombing runs.

 

For starters, there is the close coordination between the White House and Tel Aviv. Israeli Prime Minister Benjamin Netanyahu’s April 30 speech shortly before Trump withdrew from the Iran agreement was tailored to give Washington a casus belli to dump the agreement. Virtually all of what Netanyahu “revealed” about the Iranian nuclear program was old news, already known by US, Israeli and European intelligence services.

 

Four days before Netanyahu’s speech Israeli Defense Minister Avigdor Liberman met with his American counterparts and, according to Al Monitor, got a “green light” for any military action Tel Aviv might take against Iran.

 

The same day Liberman was meeting with the Pentagon, U.S. Secretary of State Mike Pompeo told Saudi Arabia to end its campaign against Qatar because the Americans wanted the Gulf Cooperation Council (GCC) to be united around a campaign against Iran.

 

Each of these moves seems calculated to set the stage for a direct confrontation with Iran involving some combination of the US, Israel and the two most aggressive members of the GCC, Saudi Arabia and the United Arab Emirates (UAE). The latter two are currently waging war on the Iranian-supported Houthis in Yemen.

 

It is almost impossible to imagine what the consequences of such a war might be. On paper, it looks like a cakewalk for the anti-Teheran axis. Iran has an antiquated air force, a bunch of fast speedboats and tanks that date back to the 1960s. The military budgets of the US, Israel and the GCC are more than 58 times those of Iran. But, as the Prussian military theorist Karl von Clausewitz once remarked, the only thing one can determine in war is who fires the first shot.

 

Military might does not translate into an automatic win. After almost 17 years of war, the US is still bogged down in Afghanistan, and it basically left Iraq with its tail between its legs. Indeed, the last time the American military won a war was in Grenada. As for the GCC, in spite of more than two years of relentless warfare in Yemen, the monarchs are no nearer victory than they were when the war started. And Hezbollah fought Israel to a stalemate in 2006.

 

While Iran does not have much in the way of military force, it has 80 million people with a strong streak of nationalism who would certainly unite against any attacker. It would be impossible to “win” a war against Iran without resorting to a ground invasion.

 

But none of Iran’s antagonists have the capacity to carry that out. The Saudis have a dismal military record, and the UAE troops are stalemated in their campaign to take Yemen’s capital, Saana from the rag-tag Houthi militia. The Israelis don’t have the troops—and, in any case, would never put them in harm’s way so far from home—and the Americans are not about to send in the Marines.

 

Most likely this would be a war of aircraft and missiles to destroy Iran’s military and civilian infrastructure. There is little that Teheran can do to stop such an assault. Any planes it put up would be toast, its anti-aircraft weapons are obsolete, and its navy would not last long.

 

But flattening Teheran’s military is not winning a war, and Iran has other ways to strike back. The Iranians, for instance, have shown considerable skill at asymmetric warfare in Iraq, Syria and Yemen, and it does have missiles.

 

The real damage, however, will be the fallout from the war. The price of oil is already on the rise, and hostilities in the middle of one of the world’s largest petroleum repositories will likely send it through the roof. While that will be good for the GCC, high oil prices will put a dent into the economies of the EU, China, India, and even the US.

 

What a war will almost certainly do is re-ignite Iran’s push to build a nuclear weapon. If that happens, Saudi Arabia will follow, and the world will be faced with several new nuclear powers in one of the most volatile regions of the world.

 

Which doesn’t mean war is inevitable.

 

The Trump administration hawks broke the JCPOA because they hoped Iran would then withdraw as well, giving the anti-Iranian axis an excuse to launch a war. Iranians are divided on this issue, with some demanding that Teheran re-start its uranium enrichment program, while others defend the agreement. Europe can play a key role here by firmly supporting the Joint Agreement and resisting the American sanctions, even if it means taking a financial hit. Some European firms, however, have already announced they are withdrawing their investments.

 

The US Congress can also help stop a war, although it will require members—mostly Democrats—to put aside their anti-Iranian bias and make common cause with the “stay in the pact” Iranians. This is a popular issue. A CNN poll found that 63 percent of Americans opposed withdrawing from the agreement.

 

It will also mean that the Congress—again, mainly Democrats—will have to challenge the role that Israel is playing. That will not be easy, but maybe not as difficult as it has been in the past. Israel’s brutality against Palestinians over the past month has won no friends except in the White House and the evangelical circuit, and Netanyahu has made it clear that he prefers Republicans to Democrats.

 

Lastly, Congress should cut the arms pipeline to the GCC and stop aiding the Saudis in their war on Yemen

 

If war comes, Americans will find themselves in the middle of an unwinnable conflict that will destabilize the Middle East and the world’s economy, and pour more of this country’s resources into yet another quagmire.

 

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New Alliance Could Re-shape Middle East

The Great Game Comes to Syria

Dispatches From The Edge

April 17, 2018

 

 

An unusual triple alliance is emerging from the Syrian war, one that could alter the balance of power in the Middle East, unhinge the NATO alliance, and complicate the Trump administration’s designs on Iran. It might also lead to yet another double cross of one of the region’s largest ethnic groups, the Kurds.

 

However, the “troika alliance”—Turkey, Russia and Iran—consists of three countries that don’t much like one another, have different goals, and whose policies are driven by a combination of geo-global goals and internal politics. In short, “fragile and complicated” doesn’t even begin to describe it.

 

How the triad might be affected by the joint U.S., French and British attack on Syria is unclear, but in the long run the alliance will likely survive the uptick of hostilities.

But common ground was what came out of the April 4 meeting between Turkish President Recep Tayyip Erdogan, Iranian President Hassan Rouhani, and Russian President Vladimir Putin. Meeting in Ankara, the parties pledged to support the “territorial integrity” of Syria, find a diplomatic end to the war, and to begin a reconstruction of a Syria devastated by seven years of war. While Russia and Turkey explicitly backed the UN-sponsored talks in Geneva, Iran was quiet on that issue, preferring a regional solution without “foreign plans.”

 

“Common ground,” however, doesn’t mean the members of the “troika” are on the same page.

 

Turkey’s interests are both internal and external. The Turkish Army is currently conducting two military operations in northern Syria, Olive Branch and Euphrates Shield, aimed at driving the mainly Kurdish People’s Protection Units (YPG) out of land that borders Turkey. But those operations are also deeply entwined with Turkish politics.

 

Erdogan’s internal support has been eroded by a number of factors: exhaustion with the ongoing state of emergency imposed following the 2016 attempted coup, a shaky economy, and a precipitous fall in the value of the Turkish pound. Rather than waiting for 2019, Erdogan called for snap elections this past week and beating up on the Kurds is always popular with right-wing Turkish nationalists. Erdogan needs all the votes he can get to imlement his newly minted executive presidency that will give him virtually one-man rule.

 

To be part of the alliance, however, Erdogan has had to modify his goal of getting rid of Syrian President Bashar Assad and to agree—at this point, anyhow—to eventually withdraw from areas in northern Syria seized by the Turkish Army. Russia and Iran have called for turning over the regions conquered by the Turks to the Syrian Army.

 

Moscow’s goals are to keep a foothold in the Middle East with its only base, Tartus, and to aid its long-time ally, Syria. The Russians are not deeply committed to Assad personally, but they want a friendly government in Damascus. They also want to destroy al-Qaeda and the Islamic State, which have caused Moscow considerable trouble in the Caucasus.

 

Russia also wouldn’t mind driving a wedge between Ankara and NATO. After the U.S., Turkey has NATO’s second largest army. NATO broke a 1989 agreement not to recruit former members of the Russian-dominated Warsaw Pact into NATO as a quid pro quo for the Soviets withdrawing from Eastern Europe. But since the Yugoslav War in 1999 the alliance has marched right up to the borders of Russia. The 2008 war with Georgia and 2014 seizure of the Crimea were largely a reaction to what Moscow sees as an encirclement strategy by its adversaries.

 

Turkey has been at odds with its NATO allies around a dispute between Greece and Cyprus over sea-based oil and gas resources, and it recently charged two Greek soldiers who violated the Turkish border with espionage. Erdogan is also angry that European Union countries refuse to extradite Turkish soldiers and civilians who he claims helped engineer the 2016 coup against him. While most NATO countries condemned Moscow for the recent attack on two Russians in Britain, the Turks pointedly did not.

 

Turkish relations with Russia have an economic side as well. Ankara want a natural gas pipeline from Russia, has broken ground on a $20 billion Russian nuclear reactor, and just shelled out $2.5 billion for Russia’s S-400 anti-aircraft system.

 

The Russians do not support Erdogan’s war on the Kurds and have lobbied for the inclusion of Kurdish delegations in negotiations over the future of Syria. But Moscow clearly gave the Turks a green light to attack the Kurdish city of Afrin last month, driving out the YPG that had liberated it from the Islamic State and Turkish-backed al-Qaeda groups. A number of Kurds charge that Moscow has betrayed them.

 

The question now is, will the Russians stand aside if the Turkish forces move further into Syria and attack the city of Manbij, where the Kurds are allied with U.S. and French forces? And will Erdogan’s hostility to the Kurds lead to an armed clash among three NATO members?

 

Such a clash seems unlikely, although the Turks have been giving flamethrower speeches over the past several weeks. “Those who cooperate with terrorists organizations [the YPG] will be targeted by Turkey,” says Turkish Deputy Prime Minister Bekir Bozdag said in a pointed reference to France’s support for the Kurds. Threatening the French is one thing, picking a fight with the U.S. military quite another.

 

Of course, if President Trump pulls U.S. forces out of Syria, it will be tempting for Turkey to move in. While the “troika alliance” has agreed to Syrian “sovereignty,” that won’t stop Ankara from meddling in Kurdish affairs. The Turks are already appointing governors and mayors for the areas in Syria they have occupied.

 

Iran’s major concern in Syria is maintaining a buffer between itself and a very aggressive alliance of the U.S., Israel and Saudi Arabia, which seems to be in the preliminary stages of planning a war against the second-largest country in the Middle East.

 

Iran is not at all the threat it has been pumped up to be. Its military is miniscule and talk of a so-called “Shiite crescent”—Iran, Iraq, Syria and Lebanon—is pretty much a western invention (although the term was dreamed up by the King of Jordan).

 

Tehran has been weakened by crippling sanctions and faces the possibility that Washington will withdraw from the nuclear accord and re-impose yet more sanctions. The appointment of National Security Advisor John Bolton, who openly calls for regime change in Iran, has to have sent a chill down the spines of the Iranians. What Tehran needs most of all is allies who will shield it from the enmity of the U.S., Israel and Saudi Arabia. In this regard, Turkey and Russia could be helpful.

 

Iran has modified its original goals in Syria of a Shiite-dominated regime by agreeing to a “non-sectarian character” for a post-war Syria. Erdogan has also given up on his desire for a Sunni-dominated government in Damascus.

 

War with Iran would be catastrophic, an unwinnable conflict that could destabilize the Middle East even more than it is now. It would, however, drive up the price of oil, currently running at around $66 a barrel. Saudi Arabia needs to sell its oil for at least $100 a barrel, or it will very quickly run of money. The on-going quagmire of the Yemen war, the need to diversify the economy, and the growing clamor by young Saudis—70 percent of the population—for jobs requires lots of money, and the current trends in oil pricing are not going to cover the bills.

 

War and oil make for odd bedfellows. While the Saudis are doing their best to overthrow the Assad regime and fuel the extremists fighting the Russians, Riyadh is wooing Moscow to sign onto to a long-term OPEC agreement to control oil supplies. That probably won’t happen—the Russians are fine with oil at $50 to $60 a barrel—and are wary of agreements that would restrict their right to develop new oil and gas resources. The Saudi’s jihad on the Iranians has a desperate edge to it, as well it might. The greatest threat to the Kingdom has always come from within.

 

The rocks and shoals that can wreck alliances in the Middle East are too numerous to count, and the “troika” is riven with contradictions and conflicting interests. But the war in Syria looks as if it is coming to some kind of resolution, and at this point Iran, Russia and Turkey seem to be the only actors who have a script that goes beyond lobbing cruise missiles at people.

 

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The Tortured Politics behind the Persian Gulf Crisis

Middle East Chaos

Dispatches From The Edge

June 14, 2017

 

 

The splintering of the powerful Gulf Cooperation Council (GCC) into warring camps—with Qatar, supported by Turkey and Iran, on one side, and Saudi Arabia, Bahrain and the United Arab Emirates (UAE), supported by Egypt, on the other—has less to do with disagreements over foreign policy and religion than with internal political and economic developments in the Middle East. The ostensible rationale the GCC gave on June 4 for breaking relations with Qatar and placing the tiny country under a blockade is that Doha is aiding “terrorist’ organizations. The real reasons are considerably more complex, particularly among the major players.

 

Middle East journalist Patrick Cockburn once described the Syrian civil war as a three-dimensional chess game with five players and no rules. In the case of the Qatar crisis, the players have doubled and abandoned the symmetry of the chessboard for “Go,” Mahjong, and Bridge.

 

Tensions among members of the GCC are longstanding. In the case of Qatar, they date back to 1995, when the father of the current ruler, Emir Tamin Al Thani, shoved his own father out of power. According Simon Henderson to of the Washington Institute for Near East Policy, Saudi Arabia and the UAE “regarded the family coup as a dangerous precedent to Gulf ruling families” and tried to organize a counter coup. The coup was exposed, however, and called off.

 

Riyadh is demanding that Qatar sever relations with Iran—an improbable outcome given that the two countries share a natural gas field in the Persian Gulf—and end Doha’s cozy ties to the Muslim Brotherhood. Indeed, if there is any entity in the Middle East that the Saudis hate—and fear—more than Iran, it is the Brotherhood. Riyadh was instrumental in the 2013 overthrow of the Brotherhood government in Egypt and has allied itself with the Israelis to marginalize Hamas, the Palestinian version of the Brotherhood that dominates Gaza.

 

But fault lines in the GCC do not run only between Saudi Arabia, the UAE and Qatar. Oman, at the Gulf’s mouth, has always marched to its own drummer, maintaining close ties with Saudi Arabia’s regional nemesis, Iran, and refusing to go along with Riyadh’s war against the Houthi in Yemen. Kuwait has also balked at Saudi dominance of the GCC, has refused to join the blockade against Doha, and is trying to play mediator in the current crisis.

 

The siege of Qatar was launched shortly after Donald Trump’s visit to Saudi Arabia, when the Saudi’s put on a show for the U.S. President that was over the top even by the monarchy’s standards. Wooed with massive billboards and garish sword dances, Trump soaked up the Saudi’s view of the Middle East, attacked Iran as a supporter of terrorism and apparently green-lighted the blockade of Qatar. He even tried to take credit for it.

 

Saudi Arabia, backed by Bahrain, Egypt, and the UAE, along with a cast of minor players, made 13 demands on Doha that it could only meet by abandoning its sovereignty. They range from the impossible—end all contacts with Iran—to the improbable—close the Turkish base—to the unlikely—dismantle the popular and lucrative media giant, Al Jazeera. The “terrorists” Doha is accused of supporting are the Brotherhood, which the Saudi’s and the Egyptians consider a terrorist organization, an opinion not shared by the U.S. or the European Union.

 

On the surface this is about Sunni Saudi Arabia vs. Shiite Iran, but while religious differences do play an important role in recruiting and motivating some of the players, this is not a battle over a schism in Islam. Most importantly, it is not about “terrorism,” since many of the countries involved are up to their elbows in supporting extremist organizations. Indeed, Saudi Arabia’s reactionary Wahhabi interpretation of Islam is the root ideology for groups like the Islamic State (IS) and al-Qaeda, and all the parties are backing a variety of extremists in Syria and Libya’s civil wars.

 

The attack on Qatar is part of Saudi Arabia’s aggressive new foreign policy that is being led by Crown Prince and Defense Minister Mohammad bin Salman. Since being declared “monarch-in-waiting” by King Salman Al Saud, Mohammed has launched a disastrous war in Yemen that has killed more than 10,000 civilians, sparked a country-wide cholera epidemic, and drains at least $700 million a month from Saudi Arabia’s treasury. Given the depressed price for oil and a growing population—70 percent of which is under 30 and much of it unemployed—it is not a cost the monarchy can continue to sustain, especially with the Saudi economy falling into recession.

 

Underlying the Saudi’s new-found aggression is fear. First, fear that the kind of Islamic governance modeled by the Muslim Brotherhood poses a threat to the absolutism of the Gulf monarchs. Fear that Iran’s nuclear pact with the U.S., the EU and the UN is allowing Tehran to break out of its economic isolation and turn itself into a rival power center in the Middle East. And fear that anything but a united front by the GCC—led by Riyadh—will encourage the House of Saud’s internal and external critics.

 

So far, the attempt to blockade Qatar has been more an annoyance than a serious threat to Doha. Turkey and Iran are pouring supplies into Qatar, and the Turks are deploying up to 1,000 troops at a base near the capital. There are also some 10,000 U.S. troops at Qatar’s Al Udeid Airfield, Washington’s largest base in the Middle East and one central to the war on the Islamic State in Syria and Iraq. Any invasion aimed at overthrowing the Qatar regime risks a clash with Turkey and the U.S.

 

While Egypt is part of the anti-Qatari alliance—the Egyptians are angry at Doha for not supporting Cairo’s side in the Libyan civil war, and the Egyptian regime also hates the Brotherhood—it is hardly an enthusiastic ally. Saudi Arabia keeps Egypt’s economy afloat, and so long as the Riyadh keeps writing checks, Cairo is on board. But Egypt is keeping the Yemen war at arm’s length—it flat out refused to contribute troops and is not comfortable with Saudi Arabia’s version of Islam. Cairo is currently in a nasty fight with its own Wahhabist-inspired extremists. Egypt also maintains diplomatic relations with Iran.

 

Besides the UAE, the other Saud allies don’t count for much in this fight. Sudan will send troops—if Riyadh pays for them—but not very many. Bahrain is on board, but only because the Saudi and UAE armies are sitting on local Shiite opposition. Yemen and Libya are part of the anti-Qatar alliance, but both are essentially failed states. And while the Maldives is a nice place to vacation, it doesn’t have a lot of weight to throw around.

 

On the other hand, long-time Saudi ally Pakistan has made it clear it is not part of this blockade, nor will it break with Qatar or downgrade relations with Iran. When Riyadh asked for Pakistan troops in Yemen, the national parliament voted unanimously to have nothing to do with Riyadh’s jihad on the poorest country in the Middle East.

 

The largely Muslim nations of Malaysia and Indonesia are also maintaining relations with Qatar, and Saudi ally Morocco offered to send food to Doha. In brief, it is not clear who is more isolated here.

 

While President Trump supports the Saudis, his Defense Department and State Department are working to resolve the crisis. U.S. Sec. of State Rex Tillerson just finished a trip to the Gulf in an effort to end the blockade, and the U.S. Senate Foreign Relations Committee is threatening to hold up arms sales to Riyadh unless the dispute is resolved. The latter is no minor threat. Saudi Arabia would have serious difficulties carrying out the war in Yemen without U.S. weaponry.

 

And the reverse of the coin?

 

Doha’s allies have a variety of agendas, not all of which mesh.

 

Iran has correct, but hardly warm, relations with Qatar. Both countries need to cooperate to exploit the South Pars gas field, and Tehran appreciated that Doha was always a reluctant member of the anti-Iran coalition, telling the U.S. it could not use Qatari bases to attack Iran.

 

Iran is certainly interested in anything that divides the GCC. The Iranians would also like Qatar to invest in upgrading Iran’s energy industry and maybe cutting them in on the $177 billion in construction projects that Doha is lining up in preparation for hosting the 2022 World Cup Games. Also, some 30,000 Iranians live in Qatar.

 

Figuring out Turkey these days can reduce one to reading tea leaves.

 

On one hand, Ankara’s support for Qatar seems obvious. Qatar backs the Brotherhood, and Turkish President Recep Tayyip Erdogan’s Justice and Development Party is a Turkish variety of the Brotherhood, albeit one focused more on power than ideology. Erdogan was a strong supporter of the Egyptian Brotherhood and relations between Cairo and Ankara went into the deep freeze when Egypt’s military overthrew the Islamist organization.

 

Qatar is also an important source of finances for Ankara, whose fragile economy needs every bit of help it can get. Turkey’s large construction industry would like to land some of the multi-billion construction contracts the World Cup games will generate. Turkish construction projects in Qatar already amount to $13.7 billion.

 

On the other hand, Turkey is also trying to woo Saudi Arabia and other Gulf monarchies for their investments. Erdogan even joined in the GCC’s attacks on Iran last spring, accusing Tehran of “Persian nationalist expansion,” a comment that distressed Turkey’s business community. As the sanctions on Iran ease, Turkish firms see that country’s big, well-educated population as a potential gold mine.

 

The Turkish President has since turned down the anti-Iran rhetoric, and Ankara and Tehran have been consulting over the Qatar crisis. The first supportive phone call Erdogan took during the attempted coup last year was from Qatar’s emir, and the prickly Turkish President has not forgotten that some other GCC members were silent for several days. Erdogan recently suggested that the UAE had a hand in the coup.

 

Is this personal for Turkey’s president? No, but Erdogan is the Middle East leader who most resembles Donald Trump: he shoots from the hip and holds grudges. The difference is that he is far smarter and better informed than the U.S. President and knows when to cut his losses.

 

His apology to the Russians after shooting down one of their fighter-bombers is a case in point. Erdogan first threatened Moscow with war, but eventually trotted off to St. Petersburg, hat in hand, to make nice with Russian President Vladimir Putin. And after hinting that the Americans were behind the 2016 coup, he recently met with Tillerson in Istanbul to smooth things out. Turkey recognizes that it will need Moscow and Washington to settle the war in Syria.

 

The Russians have been carefully neutral, consulted with Turkey and Iran, and have called on all parties to peacefully resolve their differences.

 

There is not likely to be a quick end to the Qatar crisis, because Saudi Arabia keeps doubling down on one disastrous foreign policy decision after another, including breaking up the Arab world’s only viable economic bloc. But there are developments in the region that may eventually force Riyadh to back off.

 

The Syrian War looks like it is headed for a solution, although the outcome is anything but certain. The Yemen War has reached crisis proportions—the UN describes it as the number one human emergency on the globe—and pressure is growing for the U.S. and Britain to wind down their support for the Saudi alliance. And Iran is slowly but steadily reclaiming its role as a leading force in the Middle East and Central Asia.

 

There is much that could go wrong. There could be a disastrous war with Iran, currently being pushed by Saudi Arabia, Israel and neo-conservatives in the U.S. and Russia, the U.S. and Turkey could fall out over Syria. The Middle East is an easy place to get into trouble. But if there are dangers, so too are there possibilities, and from those spring hope.

 

 

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Turkey’s Coup: Winners and Losers

Turkey’s Coup: Winners & Losers

Conn Hallinan

Aug. 30, 2016

 

As the dust begins to settle from the failed Turkish coup, there appear to be some winners and losers, although predicting things in the Middle East these days is a tricky business. What is clear is that several alignments have shifted, shifts that may have an impact on the two regional running sores: the civil wars in Syria and Yemen.

 

The most obvious winner to emerge from the abortive military putsch is Turkish President Recep Tayyip Erdogen and his campaign to transform Turkey from a parliamentary democracy to a powerful, centralized executive with himself in charge. The most obvious losers are Erdogan’s internal opposition and the Kurds in Turkey, Syria, Iraq and Iran.

 

Post-coup Turkish unity has conspicuously excluded the Kurdish-based People’s Democratic Party (HDP), even though the party condemned the July 15 coup. A recent solidarity rally in Istanbul called by Erdogan’s Justice and Development Party (AKP) included the opposition Republican People’s Party (CHP), but the HDP—the third-largest political organization in the country—was not invited.

 

The deliberate snub is part of Erdogan’s campaign to disenfranchise the HDP and force new elections that could give him the votes he needs to call a referendum on the presidency. This past June, Erdogen pushed through a bill lifting immunity for 152 parliament members, making them liable for prosecution on charges of supporting terrorism. Out of the HDP’s 59 deputies, 55 are now subject to the new law. If the HDP deputies are convicted of terrorism charges, they will be forced to resign and by elections will be held to replace them.

 

While Erdogan’s push for a powerful executive is not overwhelmingly popular with most Turks—polls show that only 38.4 percent support it –the President’s popularity jumped from 47 percent before the coup to 68 percent today. With the power of state behind him, and the nationalism generated by the ongoing war against the Kurds in Turkey’s southeast, Erdogan can probably pick up the 14 seats he needs to get the referendum.

 

The recent Turkish invasion of Syria is another front in Erdogan’s war on the Kurds. While the surge of Turkish armor and troops across the border was billed as an attack on the Islamic State’s (IS) occupation of the town of Jarablus near the Turkish border, it was in fact aimed at the Kurdish Democratic Union Party (PYD) and its armed wing, the People’s Protection Units (YPG).

 

According to Al Monitor, the IS had been withdrawing from the town for weeks in the face of a YPG offensive, and the Turks invaded to preempt the Kurds from taking the town. The question now will be how far south the Turks go, and whether they will get in a full-scale battle with America’s Kurdish allies? The Turkish military has already supported the Free Syrian Army in several clashes with the Kurds. Since the invasion included a substantial amount of heavy engineering equipment, the Turks may be planning to stay awhile.

 

While the YPG serves as the U.S.’s ground force in the fight against the IS, the Americans strongly backed the Turkish invasion and sharply warned the Kurds to withdraw from the west bank of the Euphrates or lose Washington’s support.

 

The Kurds in Syria are now directly threatened by Turkey, were attacked in Hasaka Province by the Syrian government, and have been sharply reprimanded by their major ally, the U.S. The Turkish Kurds are under siege from the Turkish army, and their parliamentary deputies are facing terrorism charges at the hands of the Erdogan government. The Turkish air force is also pounding the Kurds in Iraq. All in all, it was a bad couple of weeks to be Kurdish.

 

There are others winners and losers as well.

 

Erdogan has been strengthened, but most observers think Turkey has been weakened regionally and internationally. It looks as if an agreement with the European Union (EU) for money and visa free travel if Ankara blocks the waves of immigrants headed toward Europe is falling apart. The German parliament is up in arms over Erdogan’s heavy-handed repression of his internal opposition and his support for extremist groups in Syria.

 

Turkey’s decision to shoot down a Russian bomber last Nov. 24 has badly backfired. Russian sanctions dented the Turkish economy and Moscow poured sophisticated anti-aircraft weapons into Syria, effectively preventing any possibility of the Turks or the U.S. establishing a “no fly zone.”

 

Erdogan was also forced to write a letter of apology for the downing and trot off to St. Petersburg for a face-to-face meeting with Russian President Vladimir Putin. All were smiles and hand shakes at the Aug. 9 get-together, but the Russians have used the tension generated by the incident to advance their plans for constructing gas pipelines that would bypass Ukraine. Indeed, the EU and Turkey are now in a bidding war over whether the pipeline will go south—Turkish Stream— through Turkey and the Black Sea, or north—Nord Stream—through the Baltic Sea and into Germany.

 

Erdogan apparently has concluded that Russia and Iran have effectively blocked a military solution to the Syrian civil war, and Ankara has backed off its demand that Syrian President Bashar al-Assad has to go before there can be any resolution of the conflict. Turkey now says Assad can be part of a transition government, pretty much the same position as the Russians take. Iran—at least for now—is more invested in keeping Assad in power.

 

Iran has also come out of this affair in a stronger position. Its strategic alliance with Russia has blocked the overthrow of Assad, Teheran’s major ally in the region, and its potential markets have the Turks wanting to play nice.

 

Any Moscow-Ankara-Tehran alliance will be a fractious one, however.

 

Turkey is still a member of NATO—it has the second largest army in the alliance—and its military is largely reliant on the U.S. for its equipment. NATO needs Turkey, although the Turks have mixed feelings about the alliance. A poll taken a year ago found only 30 percent of Turks trusted NATO. The post coup polls may be worse, because it was the pro-NATO sections of the military that were most closely tied to the putsch.

 

Iran’s Shiite government is wary of Erdogan’s ties to the Sunni Muslim Brotherhood and Ankara’s close relations with Iran’s major regional nemesis, Saudi Arabia. The Russians also have a tense relationship with Iran, although Moscow played a key role in the nuclear agreement between the U.S. and Teheran, and Iran calls its ties with Russia “strategic.”

 

The Saudis look like losers in all this. They—along with Turkey, France, Britain, and most the Gulf monarchies—thought Assad would be a push over. He wasn’t, and five years later some 400,000 Syrians are dead, three million have been turned into refugees, and the war has spread into Turkey, Lebanon, Jordan, Iraq and Saudi Arabia.

 

The Yemen war has predictably turned into a quagmire, and even Saudi Arabia’s allies are beginning to edge away from the human catastrophe that the conflict has inflicted on Yemen’s civilian population. The United Arab Emirates, which provided ground forces for the Saudis, is withdrawing troops, and even the U.S. has cut back on the advisors assigned to aid the kingdom’s unrestricted air war on the rebel Houthis. U.S. Defense Department spokesman Adam Stump said aid to Riyadh was not a “blank check,” and several U.S. Congress members and peace groups are trying to halt a $1.15 billion arms sale to Saudi Arabia.

 

In military terms, the Yemen war—like the Syrian war—is unwinnable, and Washington is beginning to realize that. In fact, were it not for the U.S. and British aid to the Saudis, including weapons resupply, in-air refueling of war planes, and intelligence gathering, the war would grind to a halt.

 

The Saudis are in trouble on the home front as well. Their push to overthrow Assad and the Houthis has turned into expensive stalemates at a time when oil prices are at an all-time low. The Kingdom has been forced to borrow money and curb programs aimed at dealing with widespread unemployment among young Saudis. And the Islamic State has targeted the kingdom with more than 25 attacks over the past year.

 

Ending the Yemen war would not be that difficult, starting with an end to aid for the Saudi air war. Then the UN could organize a conference of all Yemeni parties—excluding the IS and al-Qaeda—to schedule elections and create a national unity government.

 

Syria will be considerably more challenging. The Independent’s long-time Middle East correspondent Patrick Cockburn calls the conflict a three-dimensional chess game with nine players and no rules. But a solution is possible.

 

The outside powers—the U.S., Turkey, Russia, Iran, and the Gulf monarchies—will have to stop fueling their allies with weapons and money and step back from direct involvement in the war. They will also have to accept the fact that no one can dictate to the Syrians who will rule them. That is an internal affair that will be up to the parties engaged in the civil war ( minus the IS and the al-Qaeda linked Nusra Front.)

 

The Kurdish question will be central to this. The Syrian Kurds must have a place at the table regardless of Turkish opposition. The Iranians are also hostile to the Kurds because of problems with their own Kurdish population. If there is to be eventual peace in the region, Ankara will also have to end its war against the Kurds in southeast Turkey. Turkish army attacks have killed more than 700 civilians, generated 100,000 refugees, and smashed up several cities. The Kurds have been asking for negotiations and Ankara should take them up on that.

 

Erdogan has made peace with the Kurds before—even though part of the reason was a cynical ploy to snare conservative Kurdish voters for the AKP. It was also Erdogan who rekindled the war as a strategy to weaken the Kurdish-based HDP and regain the majority that the AKP lost in the June 2015 elections. The ploy largely worked, and a snap election four months later saw the HDP lose seats and the AKP win back its majority. The Turkish president, however, did not get the two-thirds he needs to schedule a referendum.

 

Erdogan is a stubborn man, and a popular one in the aftermath of the failed coup. But Turkey is vulnerable regionally and internationally, two arenas where the U.S., the EU, and the Russians can apply pressure. The hardheaded Turkish president has already backed off in his confrontation with the Russians and climbed down from his demand that Assad had to go before any serious negotiations could start.

 

If the chess masters agree to some rules they could bring these two tragic wars to a close.

 

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Saudi Arabia: A Kingdom Stumbles

A Kingdom Stumbles: Saudi Arabia

Dispatches From The Edge

Oct. 31, 2015

 

For the past eight decades Saudi Arabia has been careful.

 

Using its vast oil wealth, it has quietly spread its ultra-conservative brand of Islam throughout the Muslim world, secretly undermined secular regimes in its region and prudently kept to the shadows, while others did the fighting and dying. It was Saudi money that fueled the Mujahedeen in Afghanistan, underwrote Saddam Hussein’s invasion of Iran, and bankrolled Islamic movements and terrorist groups from the Caucuses to Hindu Kush.

 

Today that circumspect diplomacy is in ruins, and the House of Saud looks more vulnerable than it has since the country was founded in 1926. Unraveling the reasons for the current train wreck is a study in how easily hubris, illusion, and old-fashioned ineptness can trump even bottomless wealth.

 

The Kingdom’s first stumble was a strategic decision last fall to undermine competitors by upping oil production and, thus, lowering the price. Their reasoning was that, if the price of a barrel of oil dropped from over $100 to around $80, it would strangle competition from more expensive sources and new technologies, including the U.S. fracking industry, the arctic, and emergent producers like Brazil. That, in turn, would allow Riyadh to reclaim its shrinking share of the energy market.

 

There was also the added benefit that lower oil prices would damage countries that the Saudis didn’t like: Russia, Venezuela, Ecuador, and Iran.

 

In one sense it worked. The American fracking industry is scaling back, the exploitation of Canada’s oil sands has slowed, and many arctic drillers closed up shop. And, indeed, countries like Venezuela, Ecuador, and Russia took a serious economic hit. But despite obvious signs, the Saudis failed to anticipate China’s economic slowdown and how that would dampen economic growth in the leading industrial nations. The price of oil went from $115 a barrel in June 2014 to $44 today. Because it is so pure, it costs less than $10 to produce a barrel of Saudi oil.

 

The Kingdom planned to use its almost $800 billion in financial reserves to ride out the drop in prices, but it figured that oil would not fall below $80 a barrel, and then only for a few months.

 

According to the Financial Times, in order to balance its budget, Saudi Arabia needs a price of between $95 and $105 a barrel. And while oil prices will likely rise over the next five years, projections are that price per barrel will only reach $65. Saudi debt is on schedule to rise from 6.7 percent of GDP this year to 17.3 percent next year, and its 2015 budget deficit is $130 billion.

 

Saudi Arabia is spending $10 billion a month in foreign exchange reserves to pay the bills and has been forced to borrow money on the international financial market. Two weeks ago the International Monetary Fund’s (IMF) regional director, Masood Ahmed, warned Riyadh that the country would deplete its financial reserves in five years unless it drastically cut its budget.

 

But the Kingdom can’t do that.

 

When the Arab Spring broke out in 2011, the Saudi Arabia headed it off by pumping $130 billion into the economy, raising wages, improving services and providing jobs for its growing population. Saudi Arabia has one of the youngest populations in the Middle East, a lot of it unemployed and much of it poorly educated. Some 25 percent of the population lives in poverty. Money keeps the lid on, but for how long, even with the heavy-handed repression that characterizes Saudi political life?

 

In March, the Kingdom intervened in Yemen, launching an air war, a naval blockade, and partial ground campaign on the pretense that Iran was behind the civil war, a conclusion not even the Americans agree with.

 

Again, the Saudis miscalculated, even though one of its major allies, Pakistan, warned Riyadh that it was headed for trouble. In part, the Kingdom’s hubris was fed by the illusion that U.S. support would make it a short war—the Americans are arming the Saudis, supplying them with bombing targets, backing up the naval blockade, and refueling their warplanes in mid-air.

 

But six months down the line the conflict has turned into a stalemate. The war has killed 5,000 people, including 500 children, flattened cities, and alienated much of the local population. It has also generated a food and medical crisis, as well as creating opportunities for the IS and Al-Qaeda to seize territory in Southern Yemen. Efforts by the UN to investigate the possibility of war crimes were blocked by Saudi Arabia and the U.S.

 

As the Saudis are finding out, war is a very expensive business, a burden the Saudis could meet under normal circumstances, but not when the price the Kingdom’s only commodity, oil, is plummeting.

 

Nor is Yemen the only war that the Saudis are involved with. Riyadh, along with other Gulf monarchies, including Qatar and the United Arab Emirates, are underwriting many of the groups trying to overthrow Syria’s Bashar al-Assad. When anti-government demonstrations broke out in 2011, the Saudis—along with the Americans and the Turks—calculated that Assad could be toppled in a few months.

 

But that was magical thinking. As bad as Assad is, a lot of Syrians, particularly minorities like Shiites, Christians, and Druze, were far more afraid of the Islamists from al-Qaeda and the IS then they were of their own government. So the war has dragged on for four years and has now killed close to 250,000 people.

 

Once again, the Saudis miscalculated, though in this case they were hardly alone. The Syrian government turned out to be more resilient that it appeared. And Riyadh’s bottom line that Assad had to go just ended up bringing Iran and Russia into the picture, checkmating any direct intervention by the anti-Assad coalition. Any attempt to establish a no-fly zone will have to confront the Russian air force, not something that anyone other than U.S. presidential aspirants are eager to do.

 

The war has also generated a flood of refugees, deeply alarming the European Union, which finally seems to be listening to Moscow’s point about the consequences of overthrowing governments without a plan as to who takes over. There is nothing like millions of refugees headed in your direction to cause some serious re-thinking of strategic goals.

 

The Saudis goal of isolating Iran is rapidly collapsing. The P5+1—The U.S., China, Russia, Great Britain, France, and Germany—successfully completed a nuclear agreement with Teheran, despite every effort by the Saudis and Israel to torpedo it. And at Moscow’s insistence, Washington has reversed its opposition to Iran being included in peace talks around Syria.

 

Stymied in Syria, mired down in Yemen, its finances increasingly fragile, the Kingdom also faces internal unrest from its long marginalized Shiia minority in the country’s east and south. To top it off, the IS has called for the “liberation” of Mecca from the House of Saud and launched a bombing campaign aimed at the Kingdom’s Shiites.

 

Last month’s Hajj disaster that killed more than 2100 pilgrims—and anger at the Saudi authorities foot dragging on investigating the tragedy—have added to the royal family’s woes. The Saudi’s claim 769 people were killed, a figure that no other country in the world accepts. And there are persistent rumors that the deadly stampede was caused when police blocked off an area in order to allow high-ranking Saudis special access to the holy sites.

 

Some of these missteps can be laid at the feet of the new king, Salman bin Abud-Aziz Al Saud, and of a younger generation of aggressive Saudis he has appointed to key positions. But Saudi Arabia’s troubles are also a reflection of a Middle East in transition. Exactly where that it is headed is by no means clear, but change is in the wind.

 

Iran is breaking out of its isolation and, with its large, well-educated population, strong industrial base, and plentiful energy resources, is poised to play a major regional, if not international, role. Turkey is in the midst of a political upheaval, and there is growing opposition among Turks to Ankara’s meddling in the Syrian civil war

 

Saudi Arabia, on the other hand, is impaled on its own policies, both foreign and domestic. “The expensive social contract between the Royal family and Saudi citizens will get more difficult, and eventually impossible to sustain if oil prices don’t recover,” Meghan L. O’Sullivan, director of the Geopolitics of Energy project at Harvard told the New York Times.

 

However, the House of Saud has little choice but to keep pumping oil to pay for its wars and keep the internal peace. But more production drives down prices even further, and, once the sanctions come off of Iran, the oil glut will become worse.

 

While it is still immensely wealthy, there are lots of bills coming due. It is not clear the Kingdom has the capital or the ability to meet them.

 

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