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Spain Approves 8% Rise In Minimum Wage And Pensions

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Spain’s Council of Ministers has raised the minimum wage to 707.70 euros per month an 8% rise, or 23.59 euros per day and 9,907.80 euros per year, as from January 1, 2017.

The minimum wage for seasonal and temporary workers is set at 33.51 euros per day for those who provide services for one company for not more than 120 days per year.

The Council also approved a 0.25% increase in public pensions, as established by the General Social Security Act. The Council of Ministers approved a Royal Decree establishing the rise in public pensions under the Social Security system, the rise in pensions for civil servants and other public social benefits for 2017. All these pensions and financial benefits will rise by 0.25%.

According to Prime Minister Mariano Rajoy, “this increase, agreed with the Socialist Group, is the highest in 30 years and is possible thanks to the general state of the Spanish economy”.

The Social Security system estimates that this increase will affect 9,476,780 contributory pensions, 455,229 non-contributory pensions and 191,240 family benefits.

Rajoy said that after taking stock of the government’s management in 2016 and outlining its challenges for the coming years, that the decision “has allowed for the necessary steps to raise pensions by 0.25% as established by the General Social Security Act.

The government approved an agreement whereby the distribution by ministerial department of the State Budget extended into 2017 is formalized, and established the unavailability of credit for a sum of 5.49 billion euros and adopted measures to control spending during 2017.

The way the election process unfolded and the situation of a caretaker government meant that it had not been possible to draft the General State Budget for 2017, and hence, as from 1 January 2017, the Budget for 2016 will automatically be extended.

Mariano Rajoy pointed out that in the context of the automatic extension to the Budget, “it has been necessary to approve an agreement so that the level of State spending is in line with the ceiling approved for 2017, and consequently, meet our deficit commitments for 2017 within the framework established for the Eurozone”.


Time To Face Up To Cyber Threats – Analysis

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By Samir Saran

Crimes in cyberspace, by one estimate, now cost the global economy $445 billion a year. Cyber insecurity is now a global risk no different from the warming climate or forced displacement. Is such insecurity a business risk or a “public bad”? If the security of digital infrastructure is viewed as a business risk, who should mitigate it? Should states be responsible for the integrity of networks and data within their territories, failing which they will be classified as “risky” to do business in in the digital economy? Were cyber insecurity treated as a “public bad”, governments could justifiably conclude that vulnerabilities in one device or platform affect an entire ecosystem, and create a liability regime that shifts the burden on the private sector.

These issues are important to ponder as the Digital India programme and demonetisation encourage the rapid adoption of digital payments technologies. It is not only difficult to assess the “risk” of transacting in the digital economy, but also determine who such risks should be absorbed by. For instance, a high-end device may be able to offer security on the back of its tightly controlled supply chain, but what if an end user, by opening the door to a hidden exploit, compromised its operating system?

Three crucial trends will decisively influence the future of cyber security — the centralisation of data, the arrival of connected devices, and the rapid adoption of digital payments technologies. Centralised control over data can make access to databases easier and more vulnerable to attacks. The Internet of Things (IoT) ecosystem is set to explode, with more than 24 billion devices expected to be connected to the Internet by 2019. The sheer scale, size and diversity of the IoT environment makes risk difficult to measure.

Perhaps the most important factor is the scale and speed at which digital payments have been adopted across the spectrum of transactions. Payment gateways work the same for all users irrespective of the volume or commodities/services transacted, but they are accessed on devices that vary greatly in their ability to protect data. How would insurers gauge the risk inherent in such a diversified market? Consider then, these key questions and conundrums.

First, if cyberspace is a global commons, will the socialisation of “bad” follow the “privatisation of profits”?

Unlike the environment, the oceans or outer space, digital spaces are not discovered — they are created. Cyber insecurity has been made out to be a global threat but the fact remains that the economic gains from securing digital spaces still accrue to a few countries and corporations. Do developed markets have a common but differentiated responsibility to secure digital spaces? If it is the responsibility of all, can developing countries also get a share of the economic gains from electronic commerce?

Cyber insecurity has been made out to be a global threat but the fact remains that the economic gains from securing digital spaces still accrue to a few countries and corporations.

Second, cybersecurity is a private service — how can we make it a public good?

Digital spaces are common to all, but the provision of their security is increasingly guaranteed by the private sector. This is in stark contrast to governance models in emerging markets, where the state underwrites law and order. How can the public and private sectors work together to provide this common good?

Third, India is moving towards security by identity, but many advanced economies believe security comes through anonymity. Are we on the wrong side of history?

Encryption is becoming the norm in advanced economies, as a result of which data is increasingly out of the reach of law enforcement agencies. On the other hand, India has moved towards biometric identification programmes that place a premium on identity. The “Aadhaar impulse” is driven by a requirement to target beneficiaries effectively, but without strong data protection regulations, the digital economy would be less than secure.

Fourth, if cash-based systems, ATMs and payment gateways are increasingly vulnerable to cyber-attacks, are “distributed ledger technologies” going to make governments adopt cryptocurrencies?

Blockchain and other technologies that “crowdsource” the authentication of online transactions using bitcoins are more difficult to target, because they are by their very nature, distributed ledgers. Will the increasing insecurity of the fintech ecosystem push us towards cryptocurrencies?

Fifth, cyber security is an expensive proposition in advanced economies, where the most sophisticated instruments are also assumed to be the safest. How can India apply its famed “frugal innovation” in this space, and protect the user while providing affordable access to the Internet?

The ICT supply chain in India is only as strong as its weakest link: the end user. If the user is from rural India, with a limited understanding of the devices and transactions she accesses, her device is a point of vulnerability. If the device itself is “low-end”, which places a premium on cost over security, this forms a lethal mix that endangers the security of all users in the ecosystem. India cannot afford a false separation between access and security in digital spaces, as the qualitative nature of access will determine ICT security for a billion people.

Sixth, who determines the risk of transacting on the Internet, and how?

If transactions in cyberspace will invariably carry an element of risk, who will guarantee them? The buyer, seller or intermediary? As in the case of shipping, will we see a form of cyber-insurance applied to cover the risk of malicious attacks online?

Developments in cyber security leads one to surmise that economies will soon be subject to a risk-assessment based on the integrity of their networks. Risk-based assessments offer predictive value and guarantees of stability to businesses, but they should not perpetuate inequities that exist offline.

Limited means to enhance cybersecurity in developing economies should not set back investments in the digital economy, which in turn create a vicious cycle rendering the overall ecosystem insecure. The international community must articulate ways in which such risks can be mitigated, and facilitate access in emerging markets to technology and finance that generate investments in cybersecurity.

This article originally appeared in Hindustan Times.

‘Star Wars: Episode 8’ Most Anticipated Film For 2017

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Disney-Lucasfilm’s “Star Wars Episode VIII” is the most anticipated 2017 movie, according to a fan survey conducted by Fandango, Variety said.

The film will open on Dec. 15, almost a year after the studio’s spinoff, “Rogue One: A Star Wars Story,” which has topped $615 million worldwide in its first two weeks of release.

Disney has the top three titles in the survey, conducted during the week of Dec. 19, with “Guardians of the Galaxy Vol. 2” in second, followed by its live-action “Beauty and the Beast,” starring Emma Watson.

“The new year promises a lot of excitement at the multiplex with a much-heralded return of beloved characters and stories highlighting the year’s top three most anticipated movies, ‘Episode VIII,’ ‘Guardians 2,’ and the live-action ‘Beauty and the Beast,’” says Fandango Managing Editor Erik Davis.

Warner Bros.’ “Wonder Woman,” starring Gal Gadot,” is fourth on the list, followed by Sony-Marvel’s origins story “Spider-Man: Homecoming” and Warner Bros.’ superhero saga “Justice League.”

Universal notched three spots on the list with franchise sequels “The Fate of the Furious” in seventh, “Fifty Shades Darker” in eighth and “Despicable Me 3” in 10th. Fox’s “Logan,” starring Hugh Jackman as Wolverine, is in the ninth slot.

Watson was voted the most anticipated actress for “Beauty and the Beast” and “The Circle,” followed by Daisy Ridley for “Star Wars: Episode VIII.” Chris Pratt came in first for most anticipated actor for “Guardians of the Galaxy Vol. 2.”

Read the entire lists for “movie,” “actress” and “actor” below.

Most Anticipated Movie:

1. “Star Wars: Episode VIII”

2. “Guardians of the Galaxy Vol. 2”

3. Disney’s “Beauty and the Beast”

4. “Wonder Woman”

5. “Spider-Man: Homecoming”

6. “Justice League”

7. “The Fate of the Furious”

8. “Fifty Shades Darker”

9. “Logan”

10. “Despicable Me 3”

Most Anticipated Actress:

1. Emma Watson (“Beauty and the Beast,” “The Circle”)

2. Daisy Ridley (“Star Wars: Episode VIII,” “Murder on the Orient Express”)

3. Jennifer Lawrence (“Red Sparrow,” “Untitled Darren Aronofsky Project”)

4. Halle Berry (“Kingsman: The Golden Circle,” “Kidnap”)

5. Charlize Theron (“The Fate of the Furious,” “The Coldest City,” “Tully”)

Most Anticipated Actor:

1. Chris Pratt (“Guardians of the Galaxy Vol. 2”)

2. Dwayne Johnson (“Jumanji,” “The Fate of the Furious,” “Baywatch”)

3. Hugh Jackman (“Logan,” “The Greatest Showman”)

4. Idris Elba (Stephen King’s “The Dark Tower,” “Thor: Ragnarok,” “Molly’s Game”)

5. Chris Hemsworth (“Thor: Ragnarok”)

The State Of The State Of Syria – Analysis

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By K. P. Fabian

Significant developments took place regarding Syria in December 2016. The partial cease-fire brokered, or rather, brokered and imposed, by Russia and Turkey, with Iran’s concurrence, on President Basher al Assad and a part of his foes, known as ‘moderates’, might mark a turning point in Syria’s tortuous and painful journey since 2011. Left to himself, Assad would have preferred to carry on with the military operations, heavily and crucially supported by Russia and Iran, and recover more territory. At present, he controls only the western part, which has a high population density and greater wealth than the rest of the country. Even Damascus is not safe as recent attacks on the Russian Embassy have proved. The ‘moderate’ rebels also would have preferred to get more arms and keep fighting.

The Cease-Fire

This is the third cease-fire in less than 12 months following the aborted ones in February and September 2016. Those two were begotten by long negotiations between US Secretary of State John Kerry and his Russian counterpart Sergei Lavrov, and were announced with much fanfare. The US was conspicuously absent this time around, marking President Putin’s intention to side-line the outgoing Obama Administration. We might presume that Putin would have kept the President-elect Trump in the loop.

The cease-fire came into force at 2200 hours GMT on December 29 and, despite some violations, it has held so far. There is also an agreement on monitoring the cease-fire for which the guarantors are Russia (for the Syrian government’s observance) and Turkey (for the rebels covered by the cease-fire). Russia and Turkey do not have identical plans for Syria, but they have decided to work together respecting, to the extent possible, each other’s primary goals.

The ‘moderates’ who have signed into the cease-fire were forced to sign up within 48 hours. The support from Saudi Arabia and Qatar has dried up and, in any case, such support in the shape of lethal and non-lethal supplies has to come through Turkey. Obviously, the ‘moderates’ cannot resist Turkey’s pressure.

Apart from the agreements on the cease-fire and on monitoring it, there is a third document on holding talks on a political transition. The ‘moderates’ have signed it and the version they received had a reference to the earlier talks held in Geneva in June 2012 where the approved document contained a provision for a transitional governing council with full executive powers. The interpretation of the ‘moderates’ is that Assad was not part of that council. But, there was no agreement on Assad’s role in Geneva. Nor is there any agreement now. The Assad government signed the document after deleting the reference to the transitional governing council. In short, there is no text agreed to by Assad and his foes.

Reaction of US and its allies

Obviously, by the timing carefully chosen, Putin wanted to administer a parting snub to President Obama who found it difficult to deal with Moscow and took the lead in demonizing his Russian counterpart after the latter annexed the Crimea in 2014. Mark Toner, spokesman for the Department of State, reflected the Obama administration’s frustration when he said, “We hope it will be implemented fully and respected by all parties.” There has not been any comment from London, Paris, or Berlin, probably because the West feels slighted at being excluded from the talks. The Russian Embassy in London did an online poll asking for the reason for the silence of the Foreign Office and half the respondents said that it was ‘jealousy’.

UN Security Council Resolution on the cease-fire

On December 31, the UN Security Council unanimously adopted a resolution (2336 of 2016) with slight amendments to the text proposed by Russia. The Council, instead of endorsing, “welcomes and supports the efforts of Russia and Turkey”. The original resolution referred to the political transition talks in Astana from mid-January onwards. The amended one made it clear that the Astana talks will be an important step ‘ahead’ of the resumption of talks under UN auspices in Geneva on 8 February 2017.

It may be recalled that the UN’s Special Envoy Staffan de Mistura was excluded from the talks leading to the cease-fire. One reason for the exclusion might be that Washington would have learnt everything about the negotiations through the UN and might have even derailed the talks from which it was excluded. At the same time, Moscow has expressed the hope that the UN would take part in the Astana talks. Obviously, the UN will not be chairing the talks.

The complications of the cease-fire

It was mentioned earlier that what has been agreed to is a partial cease-fire. There is some lack of clarity as to which parties are included and which excluded. The Russian defence ministry says that seven of the “moderate opposition formations” have signed the agreement: Faylaq al-Sham, Ahrar al-Sham, Jaysh al-Islam, Thuwwar Ahl al-Sham, Jaysh al-Mujahidin, Jaysh Idlib and Jabhah al-Shamiya. Obviously, these names do not mean much to outside observers, except that they have been, with one or two exceptions, classified as ‘moderates’ by the West and their Arab allies who have been lending support to them. What is known is that Ahrar al-Sham and Jaysh al-Islam are powerful Islamist groups that Russia has previously described as terrorist organizations. Incidentally, a spokesman for Ahrar al-Sham told Reuters news agency that the group had “reservations” and had not signed the deal.

Now comes the question of exclusion. The announcement by the Syrian Army says that the cease-fire will not cover “the Islamic State and Jabhat al-Nusra terrorist groups (outlawed in Russia) and also the affiliated armed groups.” The last six words require parsing, which can be done only later as the cease-fire proceeds. All that one can say now is that “also” is redundant. As already pointed out, there is no agreed text on the talks for the political transition.

Turkey’s crucial role and its long-term goals

Turkey, the NATO member with the second largest military in the alliance, has moved closer to Moscow and away from Washington. Turkey decided some time back that it could take care of its interest only by working closely with Russia. For his part, Putin was more than willing to promote discord between Ankara and Washington.

Out of the 80,000 and odd rebels in Syria fighting Assad and occasionally among themselves, about 60,000 are covered by this agreement. Turkey has influence over these 60,000 as it has been aiding some of them and permitting foreign donors to send military aid through its territory to the rest. With the drying up of aid from Saudi Arabia (hardly any aid in 2016) and Qatar (hardly any aid for the last six months), Turkey’s clout over the ‘moderates’ has understandably increased.

Turkey has made noises about its wish to see Assad leave the scene, but by now it is clear that Turkey too has accepted that Assad is too well entrenched to be pushed away by it and its allies. In any case, the goal of removing Assad is less important than conducting some military operations in Syria near the border with Turkey. Such operations can be conducted only with Russia’s consent and Erdogan has understood that. These operations have two goals, the more important of which is to prevent the Kurds in Syria from controlling territory that would enable them to work with the PKK (Partiya Karkeren Kurdistan, the Kurdistan Workers Party) and the YPG (Yekineyen Parastina Gel, People’s Defence Units) in Turkey. This goal is within reach. The other goal is to defeat the IS (Islamic State), especially in the area adjoining to the border. YPG is an ally of the US in the fight against the IS. One has to wait and see how the Trump Administration addresses this disagreement with Turkey.

Will the cease-fire hold?

What are the chances of success for the cease-fire and efforts towards a political settlement combined with a united onslaught on the IS? While it would be foolish to offer a prediction, the cease-fire appears to have, for the time being, a better chance than the two previous ones. It may be recalled that Kerry lacked support from the Pentagon for the September 2016 cease-fire.

However, Assad’s military has already broken the cease-fire in Wadi Barad Valley northwest of Baghdad. It has been reported that the rebels added diesel to the springs in the valley, an important source of water to the four million population in Damascus. Syrian forces along with Hezbollah fighters have gained ground in the fight continuing. All cease-fires are fragile, but the ones in Syria even more so.

What next?

Assuming that over time IS loses all the territory it has in Iraq/Syria, would that mean the dawn of an era of peace and tranquility for Syria? No. The liberation of Mosul, when and if it happens, will beget much tension, and is likely to lead to fighting among the Iraqi Shias, the Iraqi Sunnis, the Iraqi Kurds, and Turkey over territory.

Even after losing territory, IS would be able to carry out terrorist strikes, as it seems to have done at the night club in Istanbul on the New Year night killing more than 35 people. IS is a mind-set that can survive the loss of territory.

Trump has made it clear that his primary interest in Syria is to destroy the IS. He is prepared to work with Russia. Given that, it is likely that the emergence of a Putin-Trump combination would make it easier for the IS to get recruits to fight against the ‘crusaders’?

The Kurds now control much territory in Syria and the Kurds in Iraq have a degree of autonomy. Will the Kurds in Syria agree to anything less than the type of autonomy their Iraqi counterparts enjoy? Will Assad agree to grant such autonomy?

Assad is vulnerable as he is crucially dependent on the military support of Moscow and Tehran. But he is safe so long as these two capitals support him. The key question is whether some time in 2017 Putin would agree with Trump to withdraw the life-support from Assad as part of a larger deal involving Syria and more? If that were to happen, Trump can boast that by making a deal he did what Obama who had publicly asked Assad to step down as early as August 2011 failed to do.

Teheran’s support for Assad is stronger than that of Moscow’s. But, even for Iran, retaining Assad is not the primary interest. It wants a corridor to Lebanon to send aid to the Hezbollah and it wants to have that corridor through an area with a Shia majority population. If Iran were to gain such a corridor, it might agree to a grand bargain that includes the removal of Assad.

In short, there are many imponderables as of now, and it cannot be definitively said that the present cease-fire will necessarily take Syria to a peaceful destiny. But, the cease-fire would reduce the killing and as such should be welcomed by all. All told, Putin has demonstrated imaginative diplomacy by the timing of the cease-fire, by bringing in Turkey, by keeping the US and its allies out at this stage, and preparing for a grand bargain with Trump. By not expelling US diplomats in retaliation to Obama’s expulsion of 35 Russian diplomats, Putin has earned the good will of Trump.

2017 might turn out better for Syria than 2016, partly because Washington might adopt a more consistent policy on Syria and is likely to stop demonizing Putin and start working with him, and partly because the ‘moderates’, ‘softened up’ by the recent military successes of Assad, may prove to be less adamant.

Views expressed are of the author and do not necessarily reflect the views of the IDSA or of the Government of India. Originally published by Institute for Defence Studies and Analyses (www.idsa.in) at http://idsa.in/idsacomments/the-state-of-the-state-of-syria_kpfabian_020117

Managing The Crash In Commodity Prices – Analysis

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Policy advice for countries managing oil and gas windfalls is typically to smooth consumption boosts by borrowing on international capital markets pre-windfall, repaying the debt and accumulating assets in a sovereign wealth fund during the windfall, and withdrawing from that fund when the windfall ends. This column outlines various reasons why this approach can be disastrous for developing countries, and also considers the best response to a commodity price crash.

By Rick van der Ploeg*

Following oil, gas or mineral bonanzas economies often do not fare well. The reasons for this so-called ‘resource curse’ are well known. First, an appreciation of the real exchange rate and a decline in non-resource exports both depress growth, since the traded sectors are the engines of growth, not the non-traded sectors – this effect is referred to as ‘Dutch disease’. Second, the notorious volatility of oil and commodity prices wrecks economies, especially if their financial markets are underdeveloped. Third, rent-seeking and weakening of institutions, together with myopic politicians losing sight of value-for-money policies, all lead to windfalls being squandered rather than harnessed for growth and development. Empirical evidence indicates that the curse is worse if countries have bad institutions, poor rule of law and fragmented financial systems, and are ethnically diverse and landlocked (see the surveys in Frenkel 2012 and van der Ploeg 2011).

The permanent-income rule for managing resource bonanzas

The policy advice for managing such windfalls has typically been to put the revenue in an independently managed sovereign wealth fund, which invests only abroad, and to smooth the resource dividends over time. In addition, intertemporal smoothing of the real exchange rate is encouraged, as well as limiting sharp swings in the intersectoral allocation of production factors. The windfall is thus invested for the benefit of future and current generations. Once  a future windfall has been identified, it takes five to seven years of exploitation investments before any oil or gas can be pumped up. During this pre-windfall period, in order to boost consumption, a country should borrow on international capital markets. Then, during the windfall itself, revenue pours in, the debt is repaid, assets are accumulated in a fund, and consumption is again boosted. Finally, after the windfall ceases, the country withdraws money from that fund, to once more boost consumption. This way of managing an intergenerational sovereign wealth fund ensures an equal increase in consumption per capita (the so-called ‘resource dividend’) before, during and after the windfall. This strategy makes sense for advanced countries, blessed with natural resources, but can be disastrous for developing countries for various reasons (Venables, 2016; van der Ploeg, 2016).

Why smoothing consumption and the real exchange rate may be inappropriate

First, to cope with volatile commodity prices countries should initially rather engage in prudential saving and depress consumption to establish a stabilisation fund.  This is especially the case if countries find it difficult and costly to hedge commodity price risk – given the thinness of these derivatives markets – or if they judge it politically risky to do so. In contrast to the intergenerational fund, such a fund is larger if the windfall is more permanent (e.g. Bems and De Carvalho Filho 2011 and van den Bremer and van der Ploeg 2013). Norway uses the more conservative bird-in-hand rule, which puts all revenue in the fund and takes out a constant fraction (typically 4%). This strategy does not use the windfall itself as collateral and as such is a pragmatic and prudent way of managing it,  but it does lead to substantial consumption volatility.

Second, if a country has poor access to international financial markets, investment is too low and then it is better to invest the bonanzas in the domestic economy (e.g. van der Ploeg and Venables 2012). To put it bluntly, the return on an investment in the education of young girls is much higher than that on US T-bills, especially given their very low returns at the moment. The windfall should also be used to curb capital scarcity, and thus accelerate growth and development. The dividends should be handed out upfront, since current generations will be poorer than future generations.

Third, developing countries suffer severe absorption constraints in education, health, and infrastructure. It takes years before enough teachers, nurses, and doctors have been trained, and in the meantime the numbers necessary cannot all be imported from abroad. Also, the more roads and railways that are in place, the more productive new roads and railways are. These investments are mostly produced in non-traded sectors, which are squeezed already by the boost in the demand for non-tradables. The relative price of non-tradables must thus rise (i.e. the real exchange rate must appreciate) for a prolonged period in order to ensure that these parts of the economy can expand. It is important to set up an investment fund where revenue is temporarily parked until the supply side of the economy is sufficiently strong to absorb the spending on education, health and infrastructure efficiently.

Fourth, managing windfalls should take account of the non-neutrality of government debt. The timing of the handing of a windfall back to citizens matters, especially in developing countries with poorly developed financial markets. Households prefer dividends to be handed back upfront, since they may not be alive to receive them in the far future. The permanent-income rule, then, leads to an overshooting of the real exchange rate and consumption, since households run down assets and the current account eventually turns into surplus. Households temporarily get more upfront and thus save, if the bonanza is immediately handed to them, however, under the permanent-income rule, they borrow. Households thus save if the government fails to smooth withdrawals from the fund.

Finally, even though the management of resource windfalls can be a process spanning decades, it is important to take account of real and nominal wage rigidities and the short-run effects on unemployment. We will discuss this when considering the best response to a commodity price crash.

How to respond to the crash in oil, gas and other commodity prices?

But what to do when oil and commodity prices have plummeted? Would the curse not simply be reversed? Looking at oil- and gas-rich countries such as Russia, Algeria, Nigeria, and Brazil reveals that their experiences during the recent bust have not been good.  They face spiralling deficits and have had to cut government spending and raise revenue from elsewhere. Preventing currency depreciation and erosion of living standards runs down foreign reserves until the currency can no longer be defended. Alternatively, a country may dip into their sovereign wealth fund in order to prevent falls in consumption and the real exchange rate, but most of these countries do not have such funds. So, if the real exchange rate finally depreciates sharply, the hope is that Dutch disease reverses and that non-resource sectors of the economy are boosted.

If real wages respond sluggishly to unemployment and the production of non-tradables is intensive in structures, a crash in commodity prices causes transient periods of unemployment and more so if the whole bonanza is immediately spent, than under the permanent-income or bird-in-hand rule – due to the sharper depreciation of the real exchange rate associated with not saving the windfall. If nominal wages are sluggish in the short run, a monetary policy response is required to mitigate unemployment and inflation, and a Taylor policy rule for the nominal interest rate, reacting to inflation and unemployment, performs better than a nominal exchange rate peg, especially if the fiscal authorities implement a tighten-your-belt instead of a permanent-income rule. Given that a peg severely constrains monetary policy’s ability to respond to demand shocks, including global shocks to commodity prices, it is puzzling that three-quarters of resource-rich countries have a nominal exchange rate peg.

If the central bank steps in during a crash in commodity prices and prevents rapid nominal depreciation of the currency and inflation, foreign reserves will be rapidly depleted and this may lead to a speculative attack on the currency. Governments in developing economies may find it tough to cut spending or raise non-resource taxes to make up for the drop in resource revenue, even though this approach will be needed if the crash is expected to last a long time. Fund wealth is then rapidly depleted and government debt escalates until the market is no longer willing to buy more debt. This myriad of short-run macro misery highlights the importance of sound medium- and long-run management of resource wealth so as to cope with the inevitable volatility in both resource production and commodity prices.

About the author:
* Rick van der Ploeg,
Professor of Economics and Research Director of OxCarre, University of Oxford

References:
Bems, R. and I. De Carvalho Filho (2011). The current account and precautionary savings for exporters of exhaustible resources, Journal of International Economics, 84, 1, 48-64.

Berg, A., S.-C. S. Yang and L.-F. Zanna (2013). Public investment in resource-abundant developing countries, IMF Economic Review, 61, 1, 92-129.

Bremer, T.S. van den and F. van der Ploeg (2013). Managing and harnessing volatile oil windfalls, IMF Economic Review, 61, 1, 131-167.

Frankel, J. (2012). The natural resource curse: a survey of diagnosis and some prescriptions, in R. Arezki, C. Pattillo, M.Quintyn and M. Zhu (eds.), Commodity Price Volatility and Inclusive Growth in Low-Income Countries, International Monetary Fund, Washington, D.C.

Ploeg, F. van der (2011). Natural resources: curse or blessing?, Journal of Economic Literature, 49, 2, 366-420.

Ploeg, F. van der (2016). Macroeconomic policy responses to natural resource windfalls and the crash in commodity prices, CEPR Discussion Paper 11520.

Ploeg, F. van der and A.J. Venables (2012), Natural resource wealth: the challenge of managing a windfall, Annual Reviews in Economics, 4, 315-337.

Extreme Weather May Explain Recent Butterfly Decline

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Researchers have been investigating the impact of Extreme Climatic Events (ECEs) on butterfly populations, and according to one study the impact can be significantly positive and negative, but questions remain as to whether the benefits outweigh the negative effects.

While it is well known that changes to the mean climate can affect ecosystems, little is known about the impact of short-term extreme climatic events (ECEs) such as heatwaves, heavy rainfall or droughts.

According to Osgur McDermott-Long, PhD student and lead author from the School of Environmental Sciences at UEA,  “This is the first study to examine the effects of extreme climate events across all life stages of the UK butterflies from egg to adult butterfly. We wanted to identify sensitive life stages and unravel the role that life history traits play in species sensitivity to ECEs.”

The researchers used data from the UK Butterfly Monitoring Scheme (UKBMS), a high-quality long-term dataset of UK butterfly abundances collected from over 1,800 sites across the UK, spanning 37 years, to examine the effects of weather data and extreme events (drought, extremes of rain, heat and cold) on population change.

The team looked at resident species of butterflies, those which only breed once in a year, and those having more than one brood annually. Multi-brood species were found to be more vulnerable than single brood species and in general extremes of temperature rather than precipitation were found to influence changes in butterfly populations.

Dr Aldina Franco, co-author said: “A novel finding of this study was that precipitation during the pupal (cocoon) life-stage was detrimental to over one quarter of the species. This study also found that extreme heat during the ‘overwintering’ life stage was the most detrimental extreme weather event affecting over half of UK species. This may be due to increased incidences of disease or potentially extreme hot temperatures acting as a cue for butterflies or their larvae to come out from overwintering too early and subsequently killed off by temperatures returning to colder conditions.”

In addition to the negative impacts, the authors found that some life stages may benefit from climatic extreme weather, with extreme heat in the adult stage causing a positive population change in over one third of the UK species.

Dr Franco, added: “This is not an unexpected finding given that butterflies are warm loving creatures. Years with extreme warm summers and winters may have mixed effects. For example, this year was terrible for butterflies, although the summer was warm the number of butterflies counted during the Big Butterfly Count was particularly low. Our study indicates that this could have resulted from the detrimental effects of the warm winter, for example the recent low counts1 of Gatekeeper, Common Blue, Comma, Peacock and Small Tortoiseshell butterflies could be explained by our results due to their negative response to warm winters which was just experienced2”.

Mr McDermott Long said: “The study has demonstrated previously unknown sensitivities of our UK butterflies to extreme climatic events, which are becoming more frequent with climate change. Some of these effects are undoubtedly putting future populations at risk, such as extremely warm winters, however we’ve seen that warm and even climatically extreme hot summers may actually benefit butterflies.

Further research is needed regarding the balance of the importance that these variables could have, to see if the benefits of warmer summers will be outweighed by the detrimental winter effects”.

Dr Tom Brereton from Butterfly Conservation and a co-author of the study, said: “If we are to mitigate against extreme events as part of conservation efforts, in particular, we need a better understanding of the habitat conditions which can lead to successful survival of adult, pupal and overwintering life stages of UK butterflies in these situations.”

Some Israeli Officials Backing ‘Shoot-To-Kill,’ Says HRW

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Some senior Israeli officials have been encouraging Israeli soldiers and police to kill Palestinians they suspect of attacking Israelis even when they are no longer a threat, Human Rights Watch said in an analysis of those statements. Other Israeli officials have failed to repudiate the calls for excessive use of force.

Human Rights Watch has documented numerous statements since October 2015, by senior Israeli politicians, including the police minister and defense minister, calling on police and soldiers to shoot to kill suspected attackers, irrespective of whether lethal force is actually strictly necessary to protect life.

“It’s not just about potentially rogue soldiers, but also about senior Israeli officials who publicly tell security forces to unlawfully shoot to kill,” said Sari Bashi, Israel advocacy director at Human Rights Watch. “Whatever the results of trials of individual soldiers, the Israeli government should issue clear directives to use force only in accordance with international law.

Elor Azaria, a 20-year-old Israeli soldier, is on trial for the March 24, 2016, fatal shooting of 21-year-old Abd al-Fatah al-Sharif. Al-Sharif stabbed and wounded an Israeli soldier in the West Bank city of Hebron. At issue in the trial is Azaria’s shooting of Sharif after he had been shot and injured by Israeli security officials.

There have been more than 150 instances since October 2015 in which security forces fatally shot Palestinian adults and children suspected of trying to stab, run over, or shoot Israelis in Israel and the West Bank. During that time, Palestinian assailants have killed 33 Israelis, including passersby and security officials, in Israel and the West Bank. Human Rights Watch has repeatedly condemned Palestinian attacks against Israeli civilians.

International human rights law limits the intentional lethal use of firearms – shooting to kill – to circumstances in which it is strictly necessary to protect life, and in which no other, less extreme, option is viable. The Israeli open fire regulations do not note this limitation but do limit shooting at a person’s torso or head to situations in which it is necessary to prevent an imminent threat of death or serious bodily injury.

However, the calls by officials – and the apparent conduct of some soldiers and police – deviate from both international standards and the Israeli rules of engagement. With some notable exceptions, senior Israeli officials, including those who command security officers, have in some cases called for excessive use of force and in other cases failed to condemn such calls by others.

In one example, following a stabbing attack that injured two Israeli passersby in West Jerusalem on October 10, 2015, police fatally shot the 16-year-old Palestinian suspect. Jerusalem Police District Commander Moshe Edri told reporters that those who carry out attacks should be killed: “The police are doing their job and arriving quickly. Within less than a minute and a half, the attacker had already been killed. Everyone who stabs Jews or harms innocent people – should be killed.” Whatever justification may or may not have existed for shooting the child, Edri’s final statement appears to be a call to kill all persons who use violence, even after they no longer pose a threat.

In October 2015, a radio interviewer asked Israeli Police Minister Gilad Erdan if he agreed with a statement by a lawmaker from an opposition party that “if a terrorist has a knife or screwdriver in his hand, you should shoot to kill him without thinking twice.”

Erdan said yes: “Definitely. The question of course depends on the circumstances. There are clear instructions to the Israeli police. As soon as a police officer feels danger to himself or any other citizen, he needs to shoot according to the regulations. It’s clear. We don’t want to endanger any citizen or police officer. And also, every attacker who sets out to inflict harm should know that he will likely not survive the attack.”

In contrast, the army Chief of Staff Maj. Gen. Gadi Eisenkot gave a clear admonition to follow the Israeli military’s rules of engagement, telling a group of students on February 17, 2016, that “the IDF [Israel Defense Forces] cannot speak in slogans such as, ‘if someone comes to kill you, arise to kill him first.’ A soldier can only unlock the safety catch if there is a threat to him or his fellow soldiers … I don’t want a soldier to empty a magazine on a girl holding scissors.”

The next day, two 14-year-old Palestinians were arrested after allegedly fatally stabbing an Israeli soldier and injuring a passerby in a supermarket in the West Bank. Transportation Minister and cabinet member, Yisrael Katz, of Prime Minister Benjamin Netanyahu’s Likud party, referred to the incident on Facebook, saying that: “The attackers were caught and remained alive. I hope that the statements of the chief of staff, whom I appreciate and commend, against the automatic shooting of minors, were not misunderstood, causing hesitation and endangering lives. Because sometimes the message is greater than the words. The restrictions and codes are clear, but we cannot let attackers remain alive, risking the lives of Jews.”

In the wake of the publication of a video of the al-Sharif killing, Israeli officials, including Netanyahu, then-Defense Minister Moshe Yaalon, and Eisenkot affirmed the need to obey the Israeli military’s rules of engagement, which limit the use of force to situations in which there is a threat of death or serious bodily injury and, in some circumstances, to stop fleeing suspects. Yaalon, however, was soon replaced by the current defense minister, Avigdor Lieberman, who in October 2015, when he was an opposition member of the Knesset, the Israeli Parliament, wrote on his Facebook page that the government should adopt a policy that “no attacker, male or female, should make it out of any attack alive.”

Given the prevalence and prominence of statements encouraging security forces to shoot to kill even when not strictly necessary to protect life, and persistent and credible allegations of excessive use of force, Netanyahu and senior security officials should issue strong public and private admonitions to intentionally use lethal force only when strictly necessary to protect life, HRW said.

Modi’s Stand-Alone Visit To Israel? – Analysis

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By P. R. Kumaraswamy

When, not whether? Many observers have pondered over this question regarding a prime ministerial visit to Israel ever since Narendra Modi assumed office. In the light of Modi’s admiration for Israel, which he had visited as chief minister of Gujarat in 2008, some expected that the Jewish State would be one of the first foreign visits he would undertake. More than two-and-half years later, however, there are no signs of such a visit occurring. On the first anniversary of the NDA government on 31 May 2015, External Affairs Minister Sushma Swaraj told the media that the Prime Minister “will also be visiting. Israel will also be visited. No dates have been fixed. When we arrive at mutually convenient dates, that too will be finalized.” Since then Modi has visited four major countries along the Persian Gulf – the UAE, Saudi Arabia, Iran and Qatar – without any sign of an Israeli visit.

Notwithstanding that, there have been unprecedented high-level contacts with Israel. In May 2014, Prime Minister Benjamin Netanyahu became the first world leader to congratulate Modi on his landslide victory when most Arab leaders stood stunned at the electoral debacle of the UPA. That September, Modi met Netanyahu on the sidelines of the UN General Assembly and both have been exchanging greetings and messages at regular intervals. Modi also met President Reuven Rivlin during the funeral of Lee Kwan Yew in Singapore in March 2015. President Mukherjee visited Israel (along with Jordan and Palestine) in October 2015, and Rivlin made a reciprocal visit in November 2016. There were also other visits between the two countries including visits by Defence Minister Moshe Ya’alon (February 2015), Sushma Swaraj (January 2016), and Home Minister Rajnath Singh (November 2015).

Such regular engagement with Israel comes against the backdrop of Modi’s high-visibility political visits to the region. He began with a visit to the UAE (the first by a prime minister since May 1981) in August 2015, travelled to Turkey in November 2015 for the G-20 meeting, and followed these up in 2016 with visits to Saudi Arabia (April), Iran (May) and Qatar (June). Israel is the only other major country in the region that he has not visited.

A pattern is noticeable in Modi’s engagements with the Middle East. First and foremost, military-security cooperation occupies a prime place in all bilateral engagements. For example, 17 out of 31 issues that Prime Minister Modi and UAE Crown Prince Sheikh Mohammed bin Zayed Al Nahyan agreed upon pertained to security issues. The same emphasis on security cooperation was also visible in his engagements with Saudi Arabia (nine out of 36 points of agreements), Iran (five out of 12) and Qatar (10 out of 38). Israel would not be different especially when security has been a major area of cooperation since the normalization of relations in January 1992.

Two, unlike in the past, Modi’s visits were preceded or followed by reciprocal visits or bilateral meetings in third countries. Since May 2014, Modi has met Saudi leaders at three G-20 summits in Brisbane, Antalya and Hangzhou. The Emirati Crown Prince visited New Delhi in February 2016 and would be the Chief Guest at the Republic Day Celebrations this month. The Qatari emir visited India in March 2015 and its Prime Minister last December. This pattern may recur in the case of Israel as well. A Modi visit to Israel could be followed by a Netanyahu visit to India.

Three, Modi’s visits to the region have a pattern. Each has been a stand-alone visit and hence did not take away the primary focus from the country visited. In the past, Indian prime ministers tended to visit more than one country at a time and in the process give political engagements a regional flavour. For example, Indira Gandhi visited Kuwait and UAE in 1981, and in November 2008 Manmohan Singh visited Oman and Qatar. President Mukherjee’s visit to Israel in October 2015 was also ‘regional’ as he visited Jordan and Palestine before reaching Israel. His predecessor Pratibha Patil visited UAE and Syria in November 2010, and even Swaraj visited Palestine during her visit to Israel in January 2016.

Modi has moved away from this pattern and undertaken stand-alone visits to the region. There is widespread consensus that his visit to Israel would be the crowning moment for the year-long commemoration of the 25th anniversary of bilateral relations. Israel too would expect the same from him, that is, not adding Palestine to his itinerary. This is logical and convincing. The political gains of Modi visiting Palestine are rather limited. Not only does Palestine not offer any economic incentives, even its political advantages have diminished over the years. While there is popular support for the Palestinian cause, its relevance for inter-Arab relations is marginal. Much of the Arab world, especially the erstwhile champions of the Palestinians such as Syria, Iraq and Egypt, are deeply embroiled in domestic upheavals and some are even fighting for their own political legitimacy and territorial integrity. The Palestinian cause is their last priority and they are unlikely to modify their policy towards India due to a stand-alone visit by Modi to Israel.

At best, Modi’s ‘balancing’ visit to Ramallah might temporarily satisfy his domestic critics on the Left who would hail the wisdom of the Nehruvian legacy. But before long they are likely to return to their anti-Modi positions on foreign, domestic and economic policies. Thus, brownie points accruing to Modi through a visit to Palestine are limited, temporary and unattractive.

The only possible justification for a ‘balancing’ visit would be India’s ability to play a meaningful role in bridging Israeli-Palestinian trust deficit and bringing the two parties to the negotiating table. But New Delhi lacks the political will, diplomatic clout and established international acumen to undertake such a role. Even the US, with all its stakes and instruments, has been unable to bridge the gap and India would be well advised to keep away from the quagmire of meddling in the Israel-Palestine conflict.

A standalone visit to Israel will not only be in line with Modi’s engagement with the Middle East but would also send a powerful message to the international community that India is no longer apologetic about befriending Israel. To be meaningful, however, Modi has to establish that such a break would serve India’s geo-strategic interests and would be more beneficial than a courtesy call on Abbas in Ramallah. This would mean Israel opening up avenues of cooperation that are not available to any other country in the world. In practical terms, that would mean strategic Indian investments in hi-tech industries in Israel including military industry, cyber security, Nano technology, alternative energy, and recycling, and India becoming a partner in technology development and sharing. Sensitive technologies are either stolen or bought, but never shared even among friends. Indian investments would be the easiest and, in the long run, the cheapest way to ensure technology transfers from Israel. Should the visit be premised on such an endeavour, Modi’s standalone visit to Israel would be both feasible and likely.

Views expressed are of the author and do not necessarily reflect the views of the IDSA or of the Government of India. Originally published by Institute for Defence Studies and Analyses (www.idsa.in) at http://idsa.in/idsacomments/modi-stand-alone-visit-to-israel_prkumaraswamy_020117


Why Is Europe Able To Manage Its Decline, While Asia Is Unable To Capitalize On Successes – Analysis

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How to draw the line between the recent and still unsettled EU/EURO crisis and Asia’s success story? Well, it might be easier than it seems: Neither Europe nor Asia has any alternative. The difference is that Europe well knows there is no alternative – and therefore is multilateral. Asia thinks it has an alternative – and therefore is strikingly bilateral, while stubbornly residing enveloped in economic egoisms. No wonder that Europe is/will be able to manage its decline, while Asia is (still) unable to capitalize its successes. Asia clearly does not accedpt any more the lead of the post-industrial and post-Christian Europe, but is not ready for the post-West world.

Following the famous saying allegedly spelled by Kissinger: “Europe? Give me a name and a phone number!” (when – back in early 1970s – urged by President Nixon to inform Europeans on the particular US policy action), the author is trying to examine how close is Asia to have its own telephone number.

By contrasting and comparing genesis of multilateral security structures in Europe with those currently existing in Asia, and by listing some of the most pressing security challenges in Asia, this policy paper offers several policy incentives why the largest world’s continent must consider creation of the comprehensive pan-Asian institution. Prevailing security structures in Asia are bilateral and mostly asymmetric while Europe enjoys multilateral, balanced and symmetric setups (American and African continents too). Author goes as far as to claim that irrespective to the impressive economic growth, no Asian century will emerge without creation of such an institution.

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For over a decade, many of the relevant academic journals are full of articles prophesizing the 21st as the Asian century. The argument is usually based on the impressive economic growth, increased production and trade volumes as well as the booming foreign currency reserves and exports of many populous Asian nations, with nearly 1/3 of total world population inhabiting just two countries of the largest world’s continent. However, history serves as a powerful reminder by warning us that economically or/and demographically mighty gravity centers tend to expand into their peripheries, especially when the periphery is weaker by either category. It means that any absolute or relative shift in economic and demographic strength of one subject of international relations will inevitably put additional stress on the existing power equilibriums and constellations that support this balance in the particular theater of implicit or explicit structure.

Lessons of the Past

Thus, what is the state of art of Asia’s security structures? What is the existing capacity of preventive diplomacy and what instruments are at disposal when it comes to early warning/ prevention, fact-finding, exchange mechanisms, reconciliation, capacity and confidence– building measures in the Asian theater?

While all other major theaters do have the pan-continental settings in place already for many decades, such as the Organization of American States – OAS (American continent), African Union – AU (Africa), Council of Europe and Organization for Security and Cooperation in Europe – OSCE (Europe), the state-of-arts of the largest world’s continent is rather different.

What becomes apparent, nearly at the first glance, is the absence of any pan-Asian security/ multilateral structure. Prevailing security structures are bilateral and mostly asymmetric. They range from the clearly defined and enduring non-aggression security treaties, through less formal arrangements, up to the Ad hoc cooperation accords on specific issues. The presence of the multilateral regional settings is limited to a very few spots in the largest continent, and even then, they are rarely mandated with security issues in their declared scope of work. Another striking feature is that most of the existing bilateral structures have an Asian state on one side, and either peripheral or external protégé country on the other side which makes them nearly per definition asymmetric. The examples are numerous: the US–Japan, the US– S. Korea, the US–Singapore, Russia–India, Australia–East Timor, Russia–North Korea, Japan –Malaysia, China–Pakistan, the US–Pakistan, China–Cambodia, the US–Saudi Arabia, Russia –Iran, China–Burma, India–Maldives, Iran–Syria, N. Korea–Pakistan, etc.

Indeed, Asia today resonates a mixed echo of the European past. It combines features of the pre-Napoleonic, post-Napoleonic and the League-of-Nations Europe. What are the useful lessons from the European past? Well, there are a few, for sure. Bismarck accommodated the exponential economic, demographic and military growth as well as the territorial expansion of Prussia by skillfully architecturing and calibrating the complex networks of bilateral security arrangements of 19th century Europe. Like Asia today, it was not an institutionalized security structure of Europe, but a talented leadership exercising restraint and wisdom in combination with the quick assertiveness and fast military absorptions, concluded by the lasting endurance. However, as soon as the new Kaiser removed the Iron Chancellor (Bismarck), the provincial and backward–minded, insecure and militant Prussian establishment contested (by their own interpretations of the German’s machtpolitik and weltpolitik policies) Europe and the world in two devastating world wars. That, as well as Hitler’s establishment afterwards, simply did not know what to do with a powerful Germany.

The aspirations and constellations of some of Asia’s powers today remind us also of the pre-Napoleonic Europe, in which a unified, universalistic block of the Holy Roman Empire was contested by the impatient challengers of the status quo. Such serious centripetal and centrifugal oscillations of Europe were not without grave deviations: as much as Cardinal Richelieu’s and Jacobin’s France successfully emancipated itself, the Napoleon III and pre-WWII France encircled, isolated itself, implicitly laying the foundation for the German attack.

Finally, the existing Asian regional settings also resemble the picture of the post-Napoleonic Europe: first and foremost, of Europe between the Vienna Congress of 1815 and the revolutionary year of 1848. At any rate, let us take a quick look at the most relevant regional settings in Asia.

Multilateral constellations

By far, the largest Asian participation is with the Asia-Pacific Economic Cooperation – APEC, an organization engulfing both sides of the Pacific Rim. Nevertheless, this is a forum for member economies not of sovereign nations, a sort of a prep-com or waiting room for the World Trade Organization – WTO. To use the words of one senior Singapore diplomat who recently told me in Geneva the following: “what is your option here? …to sign the Free Trade Agreement (FTA), side up with the US, login to FaceBook, and keep shopping on the internet happily ever after…”

Two other crosscutting settings, the Organization of Islamic Cooperation – OIC and Non-Aligned Movement – NAM, the first with and the second without a permanent secretariat, represent the well-established political multilateral bodies. However, they are inadequate forums as neither of the two is strictly mandated with security issues. Although both trans-continental entities do have large memberships being the 2nd and 3rd largest multilateral systems, right after the UN, neither covers the entire Asian political landscape – having important Asian countries outside the system or opposing it.

Further on, one should mention the Korean Peninsula Energy Development Organization – KEDO (Nuclear) and the Iran-related Contact (Quartet/P-5+1) Group. In both cases, the issues dealt with are indeed security related, but they are more an asymmetric approach to deter and contain a single country by the larger front of peripheral states that are opposing a particular security policy, in this case, of North Korea and of Iran. Same was with the short-lived SEATO Pact – a defense treaty organization for SEA which was essentially dissolved as soon as the imminent threat from communism was slowed down and successfully contained within the French Indochina.

Confidence building – an attempt

If some of the settings are reminiscent of the pre-Napoleonic Europe, the Shanghai Cooperation Organization – SCO and Cooperation Council for the Arab states of the Gulf – GCC remind us of the post-Napoleonic Europe and its Alliance of the Eastern Conservative courts (of Metternich). Both arrangements were created on a pretext of a common external ideological and geopolitical threat, on a shared status quo security consideration.

Asymmetric GCC was an externally induced setting by which an American key Middle East ally Saudi Arabia gathered the grouping of the Arabian Peninsula monarchies. It has served a dual purpose; originally, to contain the leftist Nasseristic pan-Arabism which was introducing a republican type of egalitarian government in the Middle Eastern theater. It was also – after the 1979 revolution – an instrument to counter-balance the Iranian influence in the Gulf and wider Middle East. The response to the spring 2011-13 turmoil in the Middle East, including the deployment of the Saudi troops in Bahrain, and including the analysis of the role of influential Qatar-based and GCC-backed Al Jazeera TV network is the best proof of the very nature of the GCC mandate.

The SCO is internally induced and more symmetric setting. Essentially, it came into existence through a strategic Sino-Russian rapprochement1, based, for the first time in modern history, on parity, to deter external aspirants (the US, Japan, Korea, India, Turkey and Saudi Arabia) and to keep the resources, territory, present socio-economic cultural and political regime in the Central Asia, Tibet heights and the Xinjiang Uighur province in line.

The next to consider is the Indian sub-continent’s grouping, the South Asian Association for Regional Cooperation – SAARC. This organization has a well-established mandate, well staffed and versed Secretariat. However, the Organization is strikingly reminiscent of the League of Nations. The League is remembered as an altruistic setup which repeatedly failed to adequately respond to the security quests of its members as well as to the challenges and pressures of parties that were kept out of the system (e.g. Russia until well into the 1930s and the US remaining completely outside the system, and in the case of the SAARC surrounding; China, Saudi Arabia and the US). The SAARC is practically a hostage of mega confrontation of its two largest members, both confirmed nuclear powers; India and Pakistan. These two challenge each other geopolitically and ideologically. Existence of one is a negation of the existence of the other; the religiously determined nationhood of Pakistan is a negation of multiethnic India and vice verse.

Additionally, the SAARC although internally induced is an asymmetric organization. It is not only the size of India, but also its position: centrality of that country makes SAARC practically impossible to operate in any field without the direct consent of India, be it commerce, communication, politics or security.

For a serious advancement of multilateralism, mutual trust, a will to compromise and achieve a common denominator through active co-existence is the key. It is hard to build a common course of action around the disproportionately big and centrally positioned member which would escape the interpretation as containment by the big or assertiveness of its center by the smaller, peripheral members.

Multivector Foreign Policy

Finally, there is an ASEAN – a grouping of 10 Southeast Asian nations2, exercising the balanced multi-vector policy, based on the non-interference principle, internally and externally. This, Jakarta/Indonesia headquartered3 organization has a dynamic past and an ambitious current charter. It is an internally induced and relatively symmetric arrangement with the strongest members placed around its geographic center, like in case of the EU equilibrium with Germany-France/Britain-Italy/Poland-Spain geographically balancing each other. Situated on the geographic axis of the southern flank of the Asian landmass, the so-called growth triangle of Thailand-Malaysia-Indonesia represents the core of the ASEAN not only in economic and communication terms but also by its political leverage. The EU-like ASEAN Community Road Map (for 2015) will absorb most of the Organization’s energy4. However, the ASEAN has managed to open its forums for the 3+3 group/s, and could be seen in the long run as a cumulus setting towards the wider pan-Asian forum in future.

Before closing this brief overview, let us mention two recently inaugurated informal forums, both based on the external calls for a burden sharing. One, with a jingoistic-coined name by the Wall Street bankers5 – BRI(I)C/S, so far includes two important Asian economic, demographic and political powerhouses (India and China), and one peripheral (Russia). Indonesia, Turkey, Saudi Arabia, Pakistan, Kazakhstan, Iran are a few additional Asian countries whose national pride and pragmatic interests are advocating a BRIC membership. The G–20, the other informal forum, is also assembled on the Ad hoc (pro bono) basis following the need of the G–7 to achieve a larger approval and support for its monetary (currency exchange accord) and financial (austerity) actions introduced in the aftermath of still unsettled financial crisis.

Nevertheless, the BRIC and G-20 have not provided the Asian participating states either with the more leverage in the Bretton Woods institutions besides a burden sharing, or have they helped to tackle the indigenous Asian security problems. Appealing for the national pride, however, both informal gatherings may divert the necessary resources and attention to Asian states from their pressing domestic, pan-continental issues.

Yet, besides the UN system machinery of the Geneva-based Disarmament committee, the UN Security Council, the Organization for the Prohibition of Chemical Weapons – OPCW and International Atomic Energy Agency – IAEA (or CTBTO), even the ASEAN Asians (as the most multilateralized Asians) have no suitable standing forum to tackle and solve their security issues. An organization similar to the Council of Europe or the OSCE is still far from emerging on Asian soil.

Our history warns. Nevertheless, it also provides a hope: The pre-CSCE (pre-Helsinki) Europe was indeed a dangerous place to live in. The sharp geopolitical and ideological default line was passing through the very heart of Europe, cutting it into halves. The southern Europe was practically sealed off by notorious dictatorships; in Greece (Colonel Junta), Spain (Franco) and Portugal (Salazar), with Turkey witnessing several of its governments toppled by the secular and omnipotent military establishment, with inverted Albania and a (non-Europe minded) non-allied, Tito’s Yugoslavia. Two powerful instruments of the US military presence (NATO) and of the Soviets (Warsaw pact) in Europe were keeping huge standing armies, enormous stockpiles of conventional as well as the ABC weaponry and delivery systems, practically next to each other. By far and large, European borders were not mutually recognized. Essentially, the west rejected to even recognize many of the Eastern European, Soviet dominated/installed governments.

Territorial disputes unresolved

Currently in Asia, there is hardly a single state which has no territorial dispute within its neighborhood. From the Middle East, Caspian and Central Asia, Indian sub-continent, mainland Indochina or Archipelago SEA, Tibet, South China Sea and the Far East, many countries are suffering numerous green and blue border disputes. The South China Sea solely counts for over a dozen territorial disputes – in which mostly China presses peripheries to break free from the long-lasting encirclement. These moves are often interpreted by the neighbors as dangerous assertiveness. On the top of that Sea resides a huge economy and insular territory in a legal limbo – Taiwan, which waits for a time when the pan-Asian and intl. agreement on how many Chinas Asia should have, gains a wide and lasting consensus.

Unsolved territorial issues, sporadic irredentism, conventional armament, nuclear ambitions, conflicts over exploitation of and access to the marine biota, other natural resources including fresh water access and supply are posing enormous stress on external security, safety and stability in Asia. Additional stress comes from the newly emerging environmental concerns, that are representing nearly absolute security threats, not only to the tiny Pacific nation of Tuvalu6, but also to the Maldives, Bangladesh, Cambodia, parts of Thailand, of Indonesia, of Kazakhstan and of the Philippines, etc7. All this combined with uneven economic and demographic dynamics8 of the continent are portraying Asia as a real powder keg.

It is absolutely inappropriate to compare the size of Asia and Europe – the latter being rather an extension of a huge Asian continental landmass, a sort of western Asian peninsula – but the interstate maneuvering space is comparable. Yet, the space between the major powers of post-Napoleonic Europe was as equally narrow for any maneuver as is the space today for any security maneuver of Japan, China, India, Pakistan, Iran and the like.

Let us also take a brief look at the peculiarities of the nuclear constellations in Asia. Following the historic analogies; it echoes the age of the American nuclear monopoly and the years of Russia’s desperation to achieve the parity.

Besides holding huge stockpiles of conventional weaponry and numerous standing armies, Asia is a home of four (plus peripheral Russia and Israel) of the nine known nuclear powers (declared and undeclared). Only China and Russia are parties to the Non-proliferation Treaty – NPT. North Korea walked away in 2003, whereas India and Pakistan both confirmed nuclear powers declined to sign the Treaty. Asia is also the only continent on which nuclear weaponry has been deployed. 9

Cold War exiled in Asia

As is well known, the peak of the Cold War was marked by the mega geopolitical and ideological confrontation of the two nuclear superpowers whose stockpiles by far outnumbered the stockpiles of all the other nuclear powers combined. However enigmatic, mysterious and incalculable to each other10, the Americans and Soviets were on opposite sides of the globe, had no territorial disputes, and no record of direct armed conflicts.

Insofar, the Asian nuclear constellation is additionally specific as each of the holders has a history of hostilities – armed frictions and confrontations over unsolved territorial disputes along the shared borders, all combined with the intensive and lasting ideological rivalries. The Soviet Union had bitter transborder armed frictions with China over the demarcation of its long land border. China has fought a war with India and has acquired a significant territorial gain. India has fought four mutually extortive wars with Pakistan over Kashmir and other disputed bordering regions. Finally, the Korean peninsula has witnessed the direct military confrontations of Japan, USSR, Chinese as well as the US on its very soil, and remains a split nation under a sharp ideological divide.

On the western edge of the Eurasian continent, neither France, Britain, Russia nor the US had a (recent) history of direct armed conflicts. They do not even share land borders.

Finally, only India and now post-Soviet Russia have a strict and full civilian control over its military and the nuclear deployment authorization. In the case of North Korea and China, it is in the hands of an unpredictable and non-transparent communist leadership – meaning, it resides outside democratic, governmental decision-making. In Pakistan, it is completely in the hands of a politically omnipresent military establishment. Pakistan has lived under a direct military rule for over half of its existence as an independent state.

What eventually kept the US and the USSR from deploying nuclear weapons was the dangerous and costly struggle called: “mutual destruction assurance”. Already by the late 1950s, both sides achieved parity in the number and type of nuclear warheads as well as in the number and precision of their delivery systems. Both sides produced enough warheads, delivery systems’ secret depots and launching sites to amply survive the first impact and to maintain a strong second-strike capability11. Once comprehending that neither the preventive nor preemptive nuclear strike would bring a decisive victory but would actually trigger the final global nuclear holocaust and ensure total mutual destruction, the Americans and the Soviets have achieved a fear–equilibrium through the hazardous deterrence.

Thus, it was not an intended armament rush (for parity), but the non-intended Mutual Assurance Destruction – MAD – with its tranquilizing effect of nuclear weaponry, if possessed in sufficient quantities and impenetrable configurations – that brought a bizarre sort of pacifying stability between two confronting superpowers. Hence, MAD prevented nuclear war, but did not disarm the superpowers.

As noted, the nuclear stockpiles in Asia are considerably modest12. The number of warheads, launching sites and delivery systems is not sufficient and sophisticated enough to offer the second strike capability. That fact seriously compromises stability and security: preventive or preemptive N–strike against a nuclear or non-nuclear state could be contemplated as decisive, especially in South Asia and on the Korean peninsula, not to mention the Middle East13.

A general wisdom of geopolitics assumes the potentiality of threat by examining the degree of intensions and capability of belligerents. However, in Asia this theory does not necessarily hold the complete truth: Close geographic proximities of Asian nuclear powers means shorter flight time of warheads, which ultimately gives a very brief decision-making period to engaged adversaries. Besides a deliberate, a serious danger of an accidental nuclear war is therefore evident.

Multilateral mechanisms

One of the greatest thinkers and humanists of the 20th century, Erich Fromm wrote: “…man can only go forward by developing (his) reason, by finding a new harmony…”14

There is certainly a long road from vision and wisdom to a clear political commitment and accorded action. However, once it is achieved, the operational tools are readily at disposal. The case of Helsinki Europe is very instructive. To be frank, it was the over-extension of the superpowers who contested one another all over the globe, which eventually brought them to the negotiation table. Importantly, it was also a constant, resolute call of the European public that alerted governments on both sides of the default line. Once the political considerations were settled, the technicalities gained momentum: there was – at first – mutual pan-European recognition of borders which tranquilized tensions literally overnight. Politico-military cooperation was situated in the so-called first Helsinki basket, which included the joint military inspections, exchange mechanisms, constant information flow, early warning instruments, confidence–building measures mechanism, and the standing panel of state representatives (the so-called Permanent Council). Further on, an important clearing house was situated in the so-called second basket – the forum that links the economic and environmental issues, items so pressing in Asia at the moment.

Admittedly, the III OSCE Basket was a source of many controversies in the past years, mostly over the interpretation of mandates. However, the new wave of nationalism, often replacing the fading communism, the emotional charges and residual fears of the past, the huge ongoing formation of the middle class in Asia whose passions and affiliations will inevitably challenge established elites domestically and question their policies internationally, and a related search for a new social consensus – all that could be successfully tackled by some sort of an Asian III basket. Clearly, further socio-economic growth in Asia is impossible without the creation and mobilization of a strong middle class – a segment of society which when appearing anew on the socio-political horizon is traditionally very exposed and vulnerable to political misdeeds and disruptive shifts. At any rate, there are several OSCE observing nations from Asia15; from Thailand to Korea and Japan, with Indonesia, a nation that currently considers joining the forum. They are clearly benefiting from the participation16.

Consequently, the largest continent should consider the creation of its own comprehensive pan-Asian multilateral mechanism. In doing so, it can surely rest on the vision and spirit of Helsinki. On the very institutional setup, Asia can closely revisit the well-envisioned SAARC and ambitiously empowered ASEAN17 fora. By examining these two regional bodies, Asia can find and skillfully calibrate the appropriate balance between widening and deepening of the security mandate of such future multilateral organization – given the number of states as well as the gravity of the pressing socio-political, environmental and politico-military challenges.

In the age of unprecedented success and the unparalleled prosperity of Asia, an indigenous multilateral pan-Asian arrangement presents itself as an opportunity. Contextualizing Hegel’s famous saying that “freedom is…an insight into necessity” let me close by stating that a need for the domesticated pan-Asian organization warns by its urgency too.
Clearly, there is no emancipation of the continent; there is no Asian century, without the pan-Asian multilateral setting.

Post Scriptum

How can we observe and interpret (the distance between) success and failure from a historical perspective? This question remains a difficult one to (satisfy all with a single) answer… The immediate force behind the rapid and successful European overseas projection was actually the two elements combined: Europe’s technological (economic) advancement and demographic expansion (from early 16th century on). However, West/Europe was not – frankly speaking – winning over the rest of this planet by the superiority of its views and ideas, by purity of its virtues or by clarity and sincerity of its religious thoughts and practices. For a small and rather insecure civilization from the antropo-geographic suburbia, it was just the superiority through efficiency in applying the rationalized violence and organized (legitimized) coercion that Europe successfully projected. The 21st century Europeans often forget this ‘inconvenient truth’, while the non-Europeans usually never do.

The large, self-maintainable, self-assured and secure civilizations (e.g. situated on the Asian landmass) were traditionally less militant and confrontational (and a nation-state ‘exclusive’), but more esoteric and generous, inclusive, attentive and flexible. The smaller, insecure civilizations (e.g. situated on a modest and minor, geographically remote and peripheral, natural resources scarce, and climatically harshly exposed continent of Europe) were more focused, obsessively organized, directional and “goal–oriented” (including the invention of virtue out of necessity – a nation-state). No wonder that only Asian, and no European civilization has ever generated a single religion. Although it admittedly doctrinated, ‘clergified’ and headquartered one of the four Middle East-revelled monotheistic religions, that of Christianity. On the other hand, no other civilization but the European has ever created a significant, even a relevant political ideology.

Acknowledgments

For the past twelve years I hosted over 100 ambassadors at my university, some 30 from Asia alone. Several of them are currently obtaining (or recently finished) very high governmental positions in their respective countries. That includes the Foreign Minister posts (like the former Korean ambassador Kim Sung-Hwan, or the former Kazakh ambassador Yerzhan Kazykhanov), as well as the SAARC Sec-General post (former India’s Ambassador Kant Sharma), or candidacy for the OIC Secretary-General post (including the former Malaysian Ambassador to the UN New York, Tan Sri Hasmi AGAM, currently the SUHAKAM Chairman in Kuala Lumpur). It would be inappropriate to name them here. However, let me express my sincere gratitude for all the talks and meetings which helped an early ‘fermentation’ of my hypothesis claim as such. Finally, I would like to name the following personalities (in their current or past capacities) for the valuable intellectual encounters and their sometimes opposing but always inspiring and constructive comments in the course of drafting the article:

H.E. Mr. Dato’ Misran KARMAIN, the ASEAN Deputy Secretary General

H.E. Mr. I Gusti Agung Wesaka PUJA, Indonesia’s Ambassador and Permanent Representative to the UN and other IO’s in Vienna (currently Director-General for ASEAN Affairs in the Indonesian Foreign Ministry)

H.E. Ms. Nongnuth PHETCHARATANA, Thai Ambassador and Permanent Representative to the OSCE, UN and other IO’s in Vienna (currently Thai Ambassador in Berlin)

H.E. Ms. Linglingay F. LACANLALE, the Philippines’ Ambassador to Thailand and the UN ESCAP

H.E. Mr. Khamkheuang BOUNTEUM, Laos’ Ambassador and Permanent Representative to the UN and other IO’s in Vienna

H.E. Mr. Ba Than NGUYEN, Vietnam’s Ambassador and Permanent Representative to the UN and other IO’s in Vienna

H.E. Mr. Ibrahim DJIKIC, Ambassador and former OSCE Mission Head to Ashgabat

However, the views expressed are solely those of the author himself.

References:
Bajrektarevic, Anis, “Verticalization of Historical Experiences: Europe’s and Asia’s Security Structures – Structural Similarities and Differences”, Crossroads, The Mac Foreign Policy Journal, Skopje (Vol. I Nr. 4) 2007

Bajrektarevic, Anis, “Institutionalization of Historical Experiences: Europe and Asia – Same Quest, Different Results, Common Futures”, Worldviews and the Future of Human Civilization, (University of Malaya, Kuala Lumpur, November 2008) Malaysia (2008)

Bajrektarevic, Anis, “Destiny Shared: Our Common Futures – Human Capital beyond 2020”, the 5th Global Tech Leaders Symposium , Singapore-Shanghai March 2005 (2005)

Bajrektarevic, Anis, “Structural Differences in Security Structures of Europe and Asia – Possible Conflicting Cause in the SEA Theater”, The 4th Viennese conference on SEA, SEAS Vienna June 2009 (2009)

Duroselle, J.B., “Histoire Diplomatique – Études Politiques, Économiques et Sociales”, Dalloz Printing Paris (first published 1957), 1978

Friedman, George, “The Next 100 Years”, Anchor Books/Random House NY (2009)

Fromm, Erich, “The Art of Loving”, Perennial Classics, (page: 76) (1956)

Hegel, G.W.F., Phänomenologie des Geistes (The Phenomenology of Mind, 1807), Oxford University Press, 1977 (page: 25 VII)

Mahbubani, Kishore, “The New Asian Hemisphere”, Public Affairs, Perseus Books Group (page: 44-45) (2008)

Sagan, S.D. and Waltz, K.N., “The Spread of Nuclear Weapons: A Debate Renewed”, (page: 112) (2003)

Notes:
1 Analyzing the Sino-Soviet and post-Soviet-Sino relations tempts me to compare it with the Antic Roman Empire. The monolithic block has entered its fragmentation on a seemingly rhetoric, clerical question – who would give the exclusive interpretation of the holy text: Rome or Constantinople. Clearly, the one who holds the monopoly on the interpretation has the ideological grip, which can easily be translated into a strategic advantage. It was Moscow insisting that the Soviet type of communism was the only true and authentic communism. A great schism put to an end the lasting theological but also geopolitical conflict in the antique Roman theatre. The Sino-Soviet schism culminated with the ideological and geopolitical emancipation of China, especially after the Nixon recognition of Beijing China. Besides the ideological cleavages, the socio-economic and political model of the Roman Empire was heavily contested from the 3rd century onwards. The Western Roman Empire rigidly persisted to any structural change, unable to adapt. It eroded and soon thereafter vanished from the political map. The Eastern Empire successfully reformed and Byzantium endured as a viable socio-economic and political model for another 1,000 years. Feeling the need for an urgent reshape of the declining communist system, both leaders Gorbachev and Deng Xiaoping contemplated reforms. Gorbachev eventually fractured the Soviet Union with glasnost and perestroika. Deng managed China successfully. Brave, accurate and important argumentation comes from diplomat and prolific author Kishore Mahbubani (The New Asian Hemisphere, 2008, page 44-45). Mahbubani claims that Gorbachev handed over the Soviet empire and got nothing in return, while Deng understood “the real success of Western strength and power … China did not allow the students protesting in Tiananmen Square”. Consequently, Deng drew a sharp and decisive line to avoid the fate of Russia, and allowed only perestroika. China has survived, even scoring the unprecedented prosperity in only the last two decades. Russia has suffered a steep decline in the aftermath of the loss of its historic empire, including the high suicide and crime rates as well as the severe alcohol problems. Gorbachev himself moved to the US, and one vodka brand labels his name.

2 The membership might be extended in the future to East Timor and Papua New Guinea.

3 Symbolic or not, the ASEAN HQ is located less than 80 miles away from the place of the historical, the NAM–precursor, the Asian–African Conference of Bandung 1955.

4 Comparisons pose an inaccuracy risks as history often finds a way to repeat itself, but optimism finally prevails. Tentatively, we can situate the ASEAN today, where the pre-Maastricht EU was between the Merge Treaty and the Single European Act

5 The acronym was originally coined by Jim O’Neill, a chief global economist of Goldman Sachs, in his 2001 document report: “Building Better Global Economic BRICs”. This document was elaborating on countries which may provide the West with the socially, economically and politically cheap primary commodities and undemanding labor force, finally suggesting to the West to balance such trade by exporting its high-prized final products in return. The paper did not foresee either creation of any BRIC grouping or the nomadic change of venue places of its periodic meetings. O’Neill initially tipped Brazil, Russia, India and China, although at recent meetings South Africa was invited (BRICS) with the pending Indonesia (BRIICS)

6 Tuvalu, a country composed of low-laying atoll islands, faces an imminent complete loss of state territory. This event would mark a precedent in the theory of intl. law – that one country suffers a complete geographic loss of its territory.

7. Detailed environmental impact risk assessments including the no-go zones are available in the CRESTA reports. The CRESTA Organization is powered by the Swiss RE as a consortium of the leading insurance and reinsurance companies
8 The intriguing intellectual debate is currently heating up the western world. Issues are fundamental: Why is science turned into religion? Practiced economy is based on the over 200-years old liberal theory of Adam Smith and over 300-years old philosophy of Hobbes and Locke – basically, frozen and rigidly canonized into a dogmatic exegesis. Scientific debate is replaced by a blind obedience. Why is religion turned into political ideology? Religious texts are misinterpreted and ideologically misused in Europe, ME, Asia, Americas and Africa. Why is the secular or religious ethics turned from the bio-centric comprehension into the anthropocentric environmental ignorance? The resonance of these vital debates is gradually reaching Asian elites. No one can yet predict the range and scope of their responses, internally or externally. One is certain; Asia understood that the global (economic) integration can not be a substitute for any viable development strategy. Globalization, as experienced in Asia and observed elsewhere, did not offer a shortcut to development, even less to social cohesion, environmental needs, domestic employment, educational uplift of the middle class and general public health.

9 “Obama, the first seating American president to visit Laos, recalled that the US has dropped more than 2 million tons of bombs on this country during the heights of the Vietnam war – more than it dropped on Germany and Japan combined during the WWII. That made Laos, per capita, the most heavily bombed country in human history. ‘Countless civilian were killed… especially innocent men, women children. Even now, many Americans were unaware of their country’s deadly legacy here’ – the president said in Vientiane in 2016.” It took a good 40 years to the US press to fairly report on it, too. /Landler, M. (2016), Obama seeks to Heal scars of War in Laos, International New York Times, September 07, 2016, (page 6)/

10 The Soviet Union was enveloped in secrecy, a political culture, eminent in many large countries, which the Soviets inherited from the Tsarist Russia and further enhanced – a feature that puzzled Americans. It was the US cacophony of open, nearly exhibitionistic policy debates that puzzled Russians – and made both sides unable to predict the moves of the other one. The Soviets were confused by the omnipresence of overt political debate in the US, and the Americans were confused by the absence of any political debate in the USSR. Americans well knew that the real power resided outside the government, in the Soviet Politburo. Still, it was like a black-box – to use a vivid Kissinger allegory, things were coming in and getting out, but nobody figured out what was happening inside. Once the particular decision had been taken, the Soviets implemented it persistently in a heavy-handed and rigid way. Usually, the policy alternation/adjustment was not coming before the personal changes at the top of the SU Politburo – events happening so seldom. On the other hand, the Soviets were confused by the equidistant constellation of the US executive, legislative and judicial branches – for the Soviet taste, too often changed, the chaotic setup of dozens of intelligence and other enforcement agencies, the role of the media and the public, and the influential lobby groups that crosscut the US bipartisanism – all which participated in the decision prep and making process. Even when brokered, the US actions were often altered or replaced in zigzagging turns. The US was unable to grasp where the Communist Party ended and the USSR government started. By the same token, the Soviets were unable to figure out where the corporate America ended and the US government started. Paradoxically enough, the political culture of one prevented it from comprehending and predicting the actions of the other one. What was the logical way for one was absolutely unthinkable and illogical for the other.

11 As Waltz rightfully concludes: “Conventional weapons put a premium on striking first to gain the initial advantage and set the course of the war. Nuclear weapons eliminate this premium. The initial advantage is insignificant…”… due to the second strike capability of both belligerents. (‘The Spread of Nuclear Weapons: A Debate Renewed’ by Scott D. Sagan and Kenneth N Waltz, 2003, p. 112).

12 It is assumed that Pakistan has as few as 20 combat/launching ready fission warheads, India is believed to have some 60, and Korea (if any, not more than) 2-3 only. Even China, considered as the senior nuclear state, has not more than 20 ICBM.

13 Israel as a non-declared nuclear power is believed to have as many as 200 low-powered fission nuclear bombs. A half of it is deliverable by the mid-range missile Jericho II, planes and mobile (hide and relocate) launchers (including the recently delivered, nuclear war-head capable German submarines). Iran successfully tested the precision of its mid-range missile and keeps ambitiously working on the long-range generation of missiles. At the same time, Iran may well have acquired some vital dual-use (so far, peaceful purpose) nuclear technologies. There is a seed of nuclear ambition all over the Middle East, with Saudi Arabia and Turkey as the least shy ones.

14 “The Art of Loving”, Erich Fromm, 1956, page 76. Fromm wrote it at about the time of the Bandung conference.

15 The so-called OSCE–Asian Partners for Cooperation are: Japan (1992), Korea (1994), Thailand (2000), Afghanistan (2003), Mongolia (2004) and Australia (2009). Within the OSCE quarters, particularly Thailand and Japan enjoy a reputation of being very active.

16 It is likely to expect that five other ASEAN countries, residentially represented in Vienna, may formalize their relation with OSCE in a due time. The same move could be followed by the Secretariats of both SAARC and ASEAN.

17 In Europe and in Asia – even when being at the HQ in Jakarta, I am often asked to clarify my (overly) optimistic views on the ASEAN future prospects. The ASEAN as well as the EU simply have no alternative but to survive and turn successful, although currently suffering many deficiencies and being far from optimized multilateral mechanisms. Any alternative to the EU is a grand accommodation of either France or Germany with Russia – meaning a return to Europe of the 18th, 19th and early 20th centuries – namely, perpetual wars and destructions. Any alternative to the ASEAN would be an absorptive accommodation of particular ASEAN member states to either Japan or China or India – meaning fewer large blocks on a dangerous collision course. Thus, paradoxically enough in cases of both the EU and of ASEAN, it is not (only) the inner capacitation but the external constellations that make me optimistic about their respective success.

Mr. Modi’s Anti-Corruption War – OpEd

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Ever since Indian Prime Minister Mr. Narendra Modi ordered the demonetization of high value currency on November 8, 2016, Indians seem to be discussing nothing but the cash crunch that followed the demonetization and the consequent distress to the people. While the common men are debating whether the pain of cash crunch would be compensated by the gain of rooting out black money and consequently corruption in India, the opposition political parties seem to be bent on exploiting the common man’s discomfiture to make the Modi government unpopular.

Mr. Modi has clearly and repeatedly appealed to the people to bear with the pain of cash crunch for brief period, so that the country can move on with less corruption and more progress. While many opposition leaders and pledged critics of Mr. Modi predicted that there would be riot in the country due to demonitisation and even Chief Justice of India thoughtlessly echoed such negative view, nothing of this sort happened . The repeated attempts to whip up public passion and anger against demonetization by several quarters including section of media has not worked.

Courage of conviction

With 50 days gone after the demonetization, Mr. Modi addressed the nation on the New Year eve. With characteristic courage of conviction and mincing no words , he said that the war against corruption would be taken to it’s logical end.

While thanking the people and the bank and tax officials for rising upto the occasion and showing patience and putting hard work in the post demonetization period , Mr. Modi clearly declared with confidence that the section of officials who are found to be dishonest by colluding with the black money holders in the post demonetization period would not be spared.

Mood of the country men

Obviously, Mr. Modi has read the mood of the country men well.

It is known and felt by the country men that everywhere in India the corruption is deep rooted in the Indian economic and political system, with the funds meant for welfare programme being siphoned away by unscrupulous corrupt persons and black money holders in collusion with politicians and bureaucrats.

The common man in India have been wondering as to who would make India rid of corruption. After the failure of the anti-corruption movement launched by Mr. Anna Hazare, largely due to several corrupt persons with ulterior motives getting control over the movement leading to it’s loss of face, common men in India almost lost hopes that the corruption free India would ever be possible.

The people voted Mr. Modi to power in the last general elections, largely impressed by his promise that he would root out corruption. Though several steps were taken by Mr. Modi in the last thirty months after becoming the Prime Minister to bring transparency in governance, people were not sufficiently impressed, as such measures are yet to make a dent on the level and intensity of corruption in India. People certainly wanted stronger and visible steps that would publicly humiliate the corrupt people and punish them effectively.

A compulsive need

With just thirty months left before the next general elections, it has become a compulsive need for Mr. Modi not only to fight against corruption but also appear to be doing so. In short, it is a do or die battle for Mr.Modi.

Will it become a losing battle?

The question uppermost in the mind of the people now is whether Mr. Modi would really succeed in ensuring a corruption free India. Large number of people appear to be still sceptical, though they think that Mr. Modi is very sincere and they wish him well.

With the government machinery and the law enforcing agencies themselves considerably corrupt, with many politicians both in Mr. Modi’s party and in the opposition parties suspected to be of indulging in corrupt practices and with the black money becoming an essential need for the political parties to fight elections, many people seem to think that Mr. Modi may be waging a losing battle against corruption.

Mr. Modi has kindled hopes

However, the redeeming fact that has come out after the demonetization exercise is that the people are willing to stand by Mr. Modi in his battle. They expect him to give a very strong lead for the anti corruption movement in India and people would follow if it would be practically possible.
Mr. Modi’s New Year Eve speech certainly has made people think that here is a Prime Minister who has the courage to say that dishonest and corrupt officials will not be spared.

Mr. Modi has certainly kindled hope amongst the common man that the anti corruption movement would go forward and would succeed sooner or later.

Japan Enhances Defence Budget In Response To New Security Challenges – Analysis

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On December 22, 2016, the Japanese Cabinet approved a record $44 billion (5.1 trillion yen) defence budget. This is seen as a response to the deteriorating security environment in the country’s neighbourhood, in particular its perceived threats from its west. Japan is going to invest billions of dollars in new submarines, ships and stealth fighter aircraft, focusing on defending the Senkaku Islands, the chains in the East China Sea administered by Japan but also claimed by China, which calls them the Diaoyu. The planned acquisition of six submarines will be equipped with improved sensor technology and could face appropriately to the Chinese challenge.

Even with a self-posed ceiling of keeping defence spending below 1 percent of the GDP, Japan possesses one of the most advanced naval capabilities. The present author had a rare experience of visiting DD Harusume, a Destroyer at Yokosuka Bay on 10 March 2011, and interacting with the Captain of the ship, a day before the great east Japan earthquake and the ship dispatched soon on rescue mission. The sight of a number of warships lined up at the Bay gave an impression how powerful the country’s naval capability is. Equally impressive was a visit to the Hyakuri Air Base in Ibaraki Prefecture on 27 November 2016 and witness the demonstration of advanced air power and convinced that the country possesses a sophisticated strength of aircraft that could be lethal in the battle theatre. The very fact that over a million people witnessed this demonstration spread over the entire day also meant to develop a sense of patriotism among the people who could be sensitized at the time of national security crisis.

The mention of the above two experiences is to make a point that there would be a general acceptance by the people of Japan if the government opts for a greater defence spending. The people of Japan understand that the nation’s security environment is fragile and though protected by the US under alliance relationship, would endorse greater preparedness by the country itself. The nation’s confidence is also drawn from the experiences of World Wars. Indeed, with a vast coast line the country’s submarine fleet with focus on specific mission seems to be its core strength. The acquisition of submarines is not a sudden process; the investment in this area started in the 1950s with focus on up-gradation of technology and procurement on continuous basis.

Japan’s grand strategy seems to be deterrence against China. Japan’s intention is to show China through upgrades the high costs of missteps in order to prevent war. Currently, Japan has 17 diesel-electric submarines and plans to increase the fleet to 22 by around 2021. In comparison, China’s submarine fleet consists of around 60 vessels, including nuclear-powered craft that can travel very long distances at high seas.

Strengthening Coast Guard

Even the country’s Coast Guard is being strengthened with emphasis to protect the Senkaku Islands because the site has seen repeated confrontations between Japanese and Chinese forces in recent times. There have been allegations and counter-allegations between both sides that military aircrafts have trespassed into each other’s territory. While China alleges that Japanese jets interfered with Chinese military aircraft from close range, endangering the safety of Chinese aircraft and crew, Japan said its jets scrambled when six Chinese military aircraft “trespassed” into its territorial waters in the Miyako Strait, near the Senkakus. When Chinese coast guard vessels repeatedly violated Japan’s territorial waters around the disputed islands, Japan protested in August 2016 more than two dozen times through diplomatic channels.

In view of such incidents, Japan felt the need to strengthen the capability of its Coast Guard and therefore increased its budget by 12%. Japan plans to add new coast guard ships to a 14-ship fleet to defend the East China Sea islands. The allocation of a record 210 billion yen is towards the acquisition of two new patrol ships and hiring of 200 more personnel.

Japan’s MSDF and the US Navy are engaged in joint warning and surveillance activities in the Sea of Japan as they fear that North Korea shall launch a ballistic missile soon. In a normal course also, the US Aegis-equipped vessel engages in the warning and surveillance activities on behalf of the MSDF destroyers when they need to leave the Sea of Japan for refueling and other purposes. Such an arrangement demonstrates that the capability of the MSDF and SDF to cope with North Korea’s missiles remains limited, which is why Defence Minister Tomomi Inada requested the US Defence Secretary Ashton Carter during her visit to the US in September for the backup arrangement by the US forces.

Destructive Measures Order

The US Navy has deployed seven ballistic defense system (BMD)-capable Aegis vessels at Yokosuka and share information with the MSDF on regular basis as the US is obliged to defend Japan based on the Security Treaty between the two countries. In view of the constant threat and continuing missile launches at an unprecedented pace by North Korea, Japan needs to remain on alert all the time and therefore feels the deployment of Aegis destroyer in the Sea of Japan all the times necessary for its security. As per the destructive measures order issued in August 2016, Japan’s MSDF dispatched four BMD-capable Aegis vessels in turns to the Sea of Japan to compensate and fill the “vacuum” created by the US Navy’s absence during refueling and maintenance. This arrangement is likely to continue as Japan fears that North Korea is unlikely to discontinue its provocative acts.

What does this destructive measures order mean? In short, it means that a ballistic missile if seen heading towards Japan may be destroyed before hitting the target in order to protect lives and property. With the consent of the Prime Minister, Inada issued the order as per Article 82-3 of the Self-Defense Forces Law. “The SDF has a two-stage system in which an Aegis-equipped vessel on the sea launches a sea-to-air Standard Missile-3 interceptor missile (SM-3) to destroy the ballistic missile. If the SM-3 fails, a Patriot Advanced Capability-3 surface-to-air missile will be launched to intercept it.” The upgrade in the defence budget allocation is towards the addition of six more F-35 Lightening stealth fighters. It is expected that the addition of the F-35s will “improve the deterrence and coping ability” of Japan’s Air Self-Defense Force. While Japan has already received its first of the fifth-generation fighters from a factory in Texas in November 2016, the F-35s are planned to be made in Japan.

Japan’s defence spending vis-à-vis major powers

What is Japan’s position in defence spending vis-à-vis other major countries? With $44 billion allocation for the fiscal year beginning 1 April 2017, Japan’s military spending rose by 1.4 %, a rise for the fifth year in a row, though it still remains below 1% of its gross domestic product (GDP) for more than two decades. This is one of the lowest levels among major global powers. This increase is because of the deteriorating security environment in the country’s neighbourhood and therefore towards better preparedness to meet its security needs. What is noteworthy is, even with a lower level of spending than China, Japan has produced a military that is shaping up to be among the world’s best. This is despite the Constitution limits the country’s forces to defensive purposes only. Abe is changing the contour of this through liberal interpretations of the Article 9 of the Constitution as amending it rather difficult. By enacting new security laws that took effect in 2016 making it possible for Japanese troops fight abroad for the first time since the end of World War II, Japan is on course to push for revising the peace Constitution.

According to data compiled by the Stockholm International Peace Research Institute, in comparison China spends nearly 2% ($214.8 billion) of its GDP on defense and more than five times the dollar amount compared with Japan.

The US is the biggest international spender on defense, at 3.3 % of GDP, or $596 billion in 2015. While South Korea’s defence spending as percentage of the GDP is 2.6% or $36.4 billion, North Korea’s is between 15 to 24% of the GDP or $3.4 to $9.5 billion. Because of the opaque nature of North Korea, a definite estimate of its defence spending is difficult to get.

The most worrying for Japan is North Korea’s high allocation towards the military and perceived threat from its missiles. As the most belligerent country in the world, North Korea fritters away a whopping 24% of GDP on defence. The average GDP amounted to 1.66 trillion Korean won and average annual military spending to 386 billion won from 2004 to 2014. This figure is more than double the proportion of the next most heavily armed nation Oman (11.4%). The figures in percentage to GDP ratio for other 10 top dictatorships are Saudi Arabia (3rd with 8.5%), followed by South Sudan (8.4%), Eritrea (6.9%), Israel (6.5%), Jordan (6.3%), Myanmar (6.1%), Yemen (5%) and UAE (4.9%). The US ranked 15th with 4.3% of a much vaster GDP, Russia 20th (3.8%), South Korea 47th (2.6%), China 68th (2%), and Japan 136th (1%). But if only capital allocation is considered, the US ranks first by a long margin with $569 billion, taking up 43% of the world’s entire global military spending and about 8.6 times North Korea’s $3.9 to $9.5 billion. South Korea with $36.4 billion ranked 11th. North Korea also ranks second in terms of the ratio of military personnel to the working population at 7.9 %, only topped by Eritrea’s 8.1%.

As regards India, its defence budget comes to 1.71 % of the GDP, and taken with defence pensions, 2.26 % of the country’s GDP. The parliamentary standing committee has recommended a minimum of 3% of GDP as the defence budget in its reports to the parliament.

Threat from North Korea

North Korea remains the big worry for Japan, besides China. In order to protect itself from the possible missile attacks by North Korea, Japan is investing in the latest US-developed ballistic missile interceptors for its ship-based Aegis missile defence system. Japan is also allocating more funds to upgrade ground-based ballistic missile interceptors. The series of missile tests conducted by North Korea in 2016 reached into Japan’s Air Defense Identification Zone, posing a “serious threat” to its security.

Japan is alarmed that in his New Year message, the North Korean leader Kim Jong-un claimed that his country is at the “final stages” of developing the banned long-range ballistic missiles and boasted that the country had significantly bolstered its nuclear deterrent in 2016. He remarked, Pyongyang had “soared as a nuclear power”, adding it was now a “military power of the East that cannot be touched by even the strongest enemy.” It may be recalled that North Korea carried out two nuclear tests and numerous missile launches in 2016 in pursuit of its oft-stated goal of developing a weapons system capable of hitting the US mainland with a nuclear warhead.

Opinions differ on how close Pyongyang is to realising its full nuclear ambitions, as it has never successfully test-fired an ICBM. But there is no dispute that Pyongyang has made enormous strides in that direction since Kim took power after his father Kim Jong-Il died in December 2011.

It transpires therefore that because of the perceived threats from North Korea and China, Japan finds compelling reason to boost its defence capabilities by higher allocation in defence spending. China’s territorial challenges to Japanese-administered islands and North Korea’s advancement in missile-and nuclear-weapons development are the propelling factors for increase in military spending.

Options for Japan

Even when Defence Minister Inada observed that the security environment surrounding Japan is becoming more severe, the issue of military spending also was an issue during the US presidential election campaign when President-elect Donald Trump called upon the allies to pay more for American military support. The US has stationed 54,000 military personnel in bases around Japan to defend Japan under a bilateral defense treaty.

President-elect Trump even suggested that both the US allies in East Asia – Japan and South Korea – might even consider having their own nuclear weapons.
Prime Minister Shinzo Abe now faces critical choices. If pushed further by Trump after he takes power, Abe would be in compelled to be in haste to pursuit his long-term nationalistic agenda by amending the Constitution paving the way to make Japan a “normal” state. Such a course shall raise eyebrows in the neighbourhood because of Japan’s militaristic history. At another level, Abe shall face huge domestic opposition as the country’s pacifist Constitution has received high acceptability among the people and altering or any attempt to alter it would find greater disapproval by people.

Even increased military spending by the government is viewed with scepticism. First President Obama pushed Japan to play a more active role in regional defense and now Trump is likely to put more pressure on Japan to do more. It would be a challenge for Abe or even any future Prime Minister to steer course for Japan’s future defence policy underpinned by challenges from China and North Korea becoming unstoppable.

The fact that Pyongyang’s long-term enemy is the US and made its intentions known that US bases in Asia would be its target, and upgrading its missile capability to even target the US mainland, Japan as an alliance partner is not expected to remain silent if its or US territory comes under North Korea’s missile attack. In 2016 itself of a dozens of test-firings of missiles by Pyongyang, four landed about 240 km from the coast of northern Japan, the closest since North Korean missiles flew over Japan in 1998 and 2009.

Compared to Japan, South Korea’s position is more vulnerable. In view of the constant threats coming across the border, the US and South Korea have decided to deploy the Terminal High-Altitude Area Defense in South Korea, a move strongly opposed by China because its powerful radar system extends into Chinese territory. Because of increasing threat perception, Japan too is studying the missile defence upgrades, including the deployment of THAAD battery, which would again alarm China. The security situation in the region is getting more complicated by the day.

Disclaimer: The views expressed are author’s own and do not represent either of the ICCR or the Government of India.

Philippines: Bishop Attacks Duterte In New Year Homily

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Archbishop Socrates Villegas, president of the Philippine bishops’ conference, has attacked President Rodrigo Duterte for supporting the proposed revival of the death penalty and for the spate of drug-related killings in the country.

“If the law for the re-imposition of death penalty is approved by Congress, the president of the Philippines will kill people, mostly indigents who cannot afford to pay lawyers in their judicial fight specially those accused in drug pushing and other crimes,” he said

In his New Year’s Eve homily, the Lingayen-Dagupan archbishop urged Catholics to help the country’s bishops in opposing the re-imposition of the death penalty and condemn the government’s war on drugs which he said has victimized innocent people.

Archbishop Villegas urged Catholics in his archdiocese to ask their congressmen not to vote for the re-imposition of the death penalty, saying that most of those who made mistakes and violated the law are victims of injustice and poverty.

US Federal Judge Overturns Transgender Surgery Mandate

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By Kevin Jones

A US federal judge has ruled against the Obama administration’s mandate that health professionals must carry out gender reassignment surgeries, even if they have medical or religious objections.

“The regulation not only forces healthcare professionals to violate their medical judgment, it requires them to violate their deeply held religious beliefs,” U.S. District Judge Reed O’Connor of the Northern District of Texas said in a Dec. 31 decision granting a temporary injunction against the Obama administration.

“Tragically, the regulation would force them to violate those religious beliefs and perform harmful medical transition procedures or else suffer massive financial liability,” the judge added.

Under the 2010 Affordable Care Act, discrimination on the basis of sex is explicitly barred for some federally funded health care programs. The Obama administration’s Department of Health and Human Services ruled that the provision bans discrimination on the basis of “termination of pregnancy.” The agency also said discrimination on the basis of gender identity is a form of sex discrimination.

Critics of the mandate argue that there are many reasons that a doctor might decline to perform gender reassignment surgeries, including purely medical reasons. Doctors must be free to exercise their judgement in deciding the medically appropriate course of action.

Several studies have found that the majority of children experiencing gender dysphoria will outgrow it by adulthood.

“Only a minority of children who experience cross-gender identification will continue to do so into adolescence or adulthood,” found a report by the science and technology journal The New Atlantis.

Furthermore, it added, “compared to the general population, adults who have undergone sex-reassignment surgery continue to have a higher risk of experiencing poor mental health outcomes. One study found that, compared to controls, sex-reassigned individuals were about 5 times more likely to attempt suicide and about 19 times more likely to die by suicide.”

Johns Hopkins University, once a pioneer in sex reassignment surgery, has since ended the practice, finding that it was actually damaging to those who undergo it.

The plaintiffs challenging the rule included the Christian Medical and Dental Association and the Franciscan Alliance, which is a hospital network founded by the Sisters of St. Francis of Perpetual Adoration. The states of Texas, Wisconsin, Nebraska, Kentucky and Kansas also joined the suit.

Judge O’Connor sided with the plaintiffs, saying that the new law used the term “sex” to refer to “the binary, biological differences between males and females.” Before the passage of the 2010 law, he said, “no federal court or agency had concluded sex should be defined to include gender identity.”

The judge said the plaintiffs presented “concrete evidence to support their fears that they will be subject to enforcement under the Rule.”

He contended that the case was in essence a question of whether the Department of Health and Human Services can redefine the term “sex” and impose “massive new obligations” on healthcare professionals and U.S. states.

Matt Sharp, legal counsel with the religious liberty group Alliance Defending Freedom, said the ruling was in line with previous court decisions against Obama administration efforts to require individuals and institutions to provide procedures and surgeries that violate their deeply held beliefs.

The decision indicated the court believes the Obama administration “has been essentially rewriting federal law,” Sharp told CNA Jan. 3.

Others had filed challenges against the same federal rule.

On Dec. 29 the Diocese of Fargo and the Catholic Benefits Association, which includes 880 Catholic hospitals, filed a lawsuit against the rule, also charging that it would force doctors and hospitals to perform abortions.

Their suit, filed in North Dakota District Court, characterized the rule as part of a “multi-agency effort to redefine the term ‘sex’ in federal anti-discrimination laws.”

“Catholic hospitals provide compassionate care to everyone, regardless of status. Patients experiencing gender dysphoria deserve no less,” said Douglas Wilson, chief executive of the Catholic Benefits Association. “The prime ethic of any healthcare provider is do no harm. These regulations do the opposite.”

The Obama administration has sought to include gender identity as a class prohibited by sex discrimination in other rules and agencies.

A May 2016 Department of Education directive that public schools should allow students to use the bathroom that matched their self-declared gender identity was blocked after 13 states sued.

Sharp noted that Judge O’Connor had previously ruled against Obama administration rules on schools and gender identity.

“When Congress spoke it was clear they had in mind the biological differences between males and females when they talked about banning sex discrimination,” Sharp told CNA.

Call For UAE To Free Jordanian Journalist

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UAE authorities have detained a Jordanian journalist without trial or access to a lawyer for over a year, Human Rights Watch said. Tayseer al-Najjar was apparently detained over three Facebook posts in which he criticized Egypt, Israel, and gulf countries.

On December 3, 2015, UAE authorities at Abu Dhabi airport prevented al-Najjar from boarding a flight to Jordan to visit his wife and children, al-Najjar’s wife, Majida Hourani, told Human Rights Watch. She said that UAE authorities have repeatedly questioned him since his arrest and, on October 17, a prosecutor told him that he is to be put on trial. Although he has not been informed of the charges, it appears they will relate to violations of the UAE’s cybercrime law. Al-Najjar’s detention and potential prosecution for the exercise of free speech is a violation of fundamental human rights. He should be released immediately, Human Rights Watch said.

“The UAE should release Tasyeer al-Najjar immediately and Jordanian authorities should be making public calls to that end and to have his rights respected,” said Joe Stork, deputy Middle East director at Human Rights Watch. “There is no justification for throwing a journalist, or anyone else, into prison for expressing an opinion.”

Al-Najjar’s wife said he had been a journalist for more than 15 years, and had been working in the UAE since April 2015, when he became a culture reporter for the UAE-based newspaper Dar.

After blocking him from travelling, UAE authorities summoned al-Najjar to a police station in Abu Dhabi on December 13, 2015, and detained him there.

Authorities held al-Najjar incommunicado for nearly two months. His detention was only confirmed on February 10, 2016, when Jordanian media outlets reported that the Jordanian Foreign Affairs Ministry had confirmed with UAE officials that al-Najjar was in detention. He was not able to contact his family until several days later. Al-Najjar told his wife he was not aware of the name or whereabouts of the detention center where he was held before his transfer in early March 2016 to al-Wathba prison in Abu Dhabi, where he is currently held. His wife said that he has been able to call her twice a week since his transfer to al-Wathba.

Majida Hourani said that authorities questioned al-Najjar about comments he made on Facebook during Israeli military operations in Gaza in 2014, before he had moved to the UAE. He expressed support for “Gazan resistance” and criticized the UAE and Egyptian President Abdel Fattah al-Sisi of Egypt. She said that investigators also questioned him over two 2012 Facebook posts in which he apparently criticized Gulf Cooperation Council countries, but al-Najjar denied writing those comments.

Majida Hourani said he has not seen a lawyer since his detention, but hoped that the court would appoint one once his case went to trial. She also said that her husband told her that his health has deteriorated in detention because of influenza and lack of appropriate nutrition.

Article 29 of the UAE’s 2012 cybercrime law provides for prison sentences of between three and 15 years for publishing information online with “intent to make sarcasm or damage the reputation, prestige or stature of the State or any of its institutions.”

The UAE’s 2003 State Security Apparatus Law allows the head of the state security apparatus to detain a person for up to 106 days “if he has sufficient reasonable causes to make him believe” that the person is involved in, among other things, “activities that undermine the state… or jeopardize national unity,” “activities deemed harmful to the economy,” or anything that “could undermine, weaken the position of, stir animosity against or undermine trust in the State.”

The UAE has ratified the Arab Charter on Human Rights, which in article 32 protects the right to freedom of expression and in article 13 protects the right to a fair trial. Although the UAE has not ratified the International Covenant on Civil and Political Rights, the Human Rights Committee, the body of independent experts that monitors implementation of the treaty, has provided an authoritative interpretation of the right to fair trial, on which the Arab Charter’s provision is based.

The committee stated in its interpretation that the “the right of the accused to be tried without undue delay… is not only designed to avoid keeping persons too long in a state of uncertainty about their fate and, if held in detention during the period of the trial, to ensure that such deprivation of liberty does not last longer than necessary in the circumstances of the specific case, but also to serve the interests of justice.”

A Decade Later: Nepal Stitches ‘Peace’ On A Torn ‘Democracy’– Analysis

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By Sourina Bej*

A decade has passed since the Comprehensive Peace Accord (CPA) ending the civil war in Nepal was signed on November 21, 2006 by Pushpa Kamal Dahal ‘Prachanda’, on behalf of the Maoists, and Prime Minister G.P. Koirala laying the ground for a democratic republic.

Ten years later, the Himalayan country is yet to implement the CPA, pass constitutional amendment, broker peace with the marginalised communities (Madhesi, Janjati, Tharus and Dalits), hold provincial elections, address the question of women’s citizenship and rehabilitate child soldiers.

In ten years, Nepal has seen three constitutions, two political interregnums and a protracted ethnic conundrum between the peoples of the Hill and Terai (the southern plains). The promised devolution of power stands unfulfilled. Except in the 2008 and 2013 elections, the civil society has been largely excluded from political overhauling and the constitution remains the root cause of constant ethnic tensions.

Reconstruction of democracy has gained overall recognition, but it is complicated by the remnants of feudal paternalism with the political elite. This ‘exclusive parliamentary’ politics has fuelled the Madhesi conflict, and ever since the new Constitution was promulgated on September 20, 2015, the conflict has caught the separatist rhetoric.

The Madhesis and Tharus, who together comprise 70 per cent of the Terai population, were sidelined when the seven provinces were carved in the new constitution. Of the 22 districts in the Terai, only eight command constitutional autonomy. The remaining fourteen districts are now a minority (in spite of a large Terai demography) after integration with the Hill provinces.

Protests against the new constitution culminated in an economic blockade starting November 25, 2015. The government, with the support of the Hill people, blamed the tension as a provocation by India, thus, covering up an administrative botch up. The India-Nepal border blockade choked an already limping economy of food, medicine, oil, and trade.

The Madhesi Jana Adhikar Forum (Democratic) was initially involved in the constitution-drafting process, but had split when its demand for a single autonomous Madhes Pradesh was rejected. The current government under Prachanda has the mammoth task of not only granting constitutional autonomy to Madhes, but also evolving parliamentary consensus over the same.

It is unlikely that after previous PM K.P. Sharma Oli’s volte-face over Madhesi demands, the ruling alliance (Nepali Congress, CPM-Maoist Centre) and the main opposition Communist Party of Nepal-Unified Marxists Leninists (CPN-UML) will cooperate. A deep mistrust against the Terai within the ruling Bahun-Chhetri elite will deter sharing of power. In addition, Prachanda lacks a two-thirds majority in Parliament, required to amend the constitution.

An early agreement has been attempted between Madhesi and Prachanda to amend the constitution. But the Oli-led opposition and the Madhesis have rejected the cabinet proposals.

If the constitution isolates the Terai, the three-phase elections (local, provincial and federal) in January 2018 will be impossible. This makes the already contentious constitution questionable.

The only effort on the part of the Nepal government to implement transitional justice mechanism has been the establishment of two commissions — a Truth and Reconciliation Commission (TRC) and a Commission on the Investigation of Enforced Disappeared Persons (CIEDP) in 2015.

Establishing a truthful historical narrative for the country is vital to not only make the government accountable, but instill public confidence in the democratic measures at the grass root level. However, limiting the justice delivery, the commissions have inadequate time and resources to accomplish their respective tasks. A two-year mandate has been given to reconcile more than a lakh of plaints. Fourteen months after their establishment and 10 years after the signing of the CPA, the commissions began ‘inviting complaints’ on April 14 (CIEDP) and April 17 (TRC) of 2015, leaving barely ten months to submit their recommendations.

The conflict-era’s human rights violations like enforced disappearances, torture, extra-judicial killings and sexual violence are unaccounted for, and amnesty to Maoist rebels has led to a trust deficit. People view the Supreme Court as an extension of partisan interest. Most victims hesitate to file complaints with either commission, as they doubt fair judicial relief for victims and protection from threat of physical violence. No detailed information or facts to identify the perpetrators have been filed.

Erstwhile Prime Minister K.P. Sharma Oli signed an agreement in May 2016, agreeing to withdraw all wartime cases pending in courts and provide amnesty to alleged perpetrators. Currently, with the Maoist-led coalition in power, any form of justice will invite political interference. Moreover, the question of rehabilitation of child soldiers who fought in the Maoist army remains unaddressed.

A contentious issue is that of citizenship for Nepali women married to foreign men and the position of single women. With the new constitution, Nepal joins 27 countries that restrict a woman’s right to pass on citizenship to her child independent of the father’s nationality. Article 11.7 of the constitution states that the child of a Nepali woman married to a foreigner can only avail citizenship by naturalisation. Secondly, under Article 11.5 of the constitution, a person born to a Nepali citizen mother, whose father is not traced, shall be conferred Nepali citizenship by descent. Both the processes of acquiring citizenship require the state’s consent.

Adding to this, women are considered second-class citizens. Victims of sexual violence suffer the most. First, bearing the social stigma, and second, they lack the medical and legal amenity in support of their testimony. Most survivors continue to feel a deep sense of injustice at being left out of reparation and reconciliation mechanisms.

Nepal is ranked 78th on the Global Peace Index 2015. But the peace process has failed to assuage civic frustration and distrust towards the political institution. The former rebel groups (which aided the Maoists in overthrowing the monarchy) led by Netra Bikram Chanda are threatening to take up arms again.

The relevance of the Comprehensive Peace Accord ended when the first Constituent Assembly dissolved. Playing along the ethnic and casteist line with a term-limited pacifist policy by the ruling elite will thus upset an enduring constitutional inclusion.

*Sourina Bej is a post graduate student of International Studies at Stella Maris College, Chennai. Comments and suggestions on this article can be sent to editor@spsindia.in


US Defense Dept Sets Up Process For Erroneous Bonus Payment Cases

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By Terri Moon Cronk

US Defense Department officials met the goal Defense Secretary Ash Carter set for establishing a process to handle resolution of bonuses paid erroneously to thousands of California National Guard soldiers several years ago, Pentagon Press Secretary Peter Cook told reporters at the Pentagon Tuesday.

In October, Carter directed suspension of all efforts to recoup money from the soldiers, Cook said. “He also asked the department to come up with a streamlined, centralized process to ensure the fair and equitable treatment of our service members and the rapid resolution of cases by Jan. 1,” he added.

Peter Levine, performing the duties of acting undersecretary for personnel and readiness, led the process team, and he updated reporters today on how DoD is resolving cases with a new process involving some 17,500 California Guard members who could face recoupment.

Levine emphasized that recoupment is a fact of life, and the Army averages 100,000 such cases at any given time. “Sometimes the member makes a mistake, sometimes the service does,” he noted.

Since the secretary’s October announcement, Levine said, he has worked closely with the National Guard Bureau, the Army Audit Agency, the Army Review Boards Agency and the Defense Finance and Accounting Service to set up a process for the California cases.

Levine said the process involves screening cases to see if sufficient information is available for resolution, and putting what he called the “hard cases” before the Army Board for Correction of Military Records for an individualized review in which the soldiers will have an opportunity to make their case.

California’s 17,500 Cases

The 17,500 cases were put into two categories, Levine said. The first category includes about 1,400 cases in which the California National Guard established that a debt exists and referred them to DFAS for recoupment.

The Army Audit Agency and the Army Review Board Agency reviewed those cases, Levine said, based on whether the service members fulfilled their service commitment and whether they had any obvious reason to believe they received an erroneous payment.

“We think we can get rid of about half of the cases on that basis,” he said. “So [for] half of the 1,400, we would expect to be notifying soldiers that they’re being relieved of any debt.” If they have already been subject to recoupment, he added, they’ll be reimbursed.

The California National Guard flagged the remaining cases for review. Guard officials notified many soldiers of the potential that they would be facing debt collection, but didn’t take further action, Levine explained. “So those 16,000, essentially the Sword of Damocles is hanging over the soldiers, but debt collection hadn’t been started,” he added.

Recoupment Case Nuances

Because a debt has yet to be established in the remaining 16,000 cases, Levine said, he expects that the screening process will eliminate about 15,000 of them.

Those that remain unresolved at that point will then go through the same process as the 1,400 for which a debt had been established before this effort began. “The bottom line is we expect … several hundred cases — but in all likelihood, fewer than 1,000 — to go before the Boards for Correction of Military Records,” Levine said.

Soldiers Can Present Their Cases

In each of those cases, he explained, the soldier will have an opportunity to present his or her case and argue that even though there’s enough doubt to put it before a records-correction board, there isn’t enough to justify debt collection and that therefore, the debt should be forgiven.

“We are well along in that process, Levine said. “We have established the process as the secretary directed. We think that we have the BCMR staffed up. They’re prepared to hear the cases … by the July deadline established by the secretary.”

“We are very hopeful that we will not have any kind of similar problems going forward,” Levine said. “The bottom line is we think we’ve met the secretary’s goal of rapid, equitable treatment for our soldiers and that we have in place a process that will protect the taxpayers, but will also be fair to our soldiers in terms of collecting debts,” he said.

Georgia: Usupashvili Speaks On President Margvelashvili’s Possible Resignation Scenario

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(Civil.Ge) — Georgia’s President Giorgi Margvelashvili refrained from commenting on the statements of former Parliament Speaker Davit Usupashvili, who stated that the President might resign if the ruling Georgian Dream – Democratic Georgia (GDDG) decides to change the rule of electing the head of state directly.

“You are not asking me the right question. I will not comment on someone else’s comments,” Margvelashvili told reporters on January 3.

Davit Usupashvili, who left the Republican Party after the 2016 Parliamentary Elections and announced plans to establish a new political party, spoke about the President’s possible resignation in his interview with newspaper Kviris Palitra on January 2.

Although, as he said, he remains committed to the classical parliamentary model, where the President “is not elected through direct elections”, “such changes should be made based on a broad consensus,” because “whether we like it or not, people support direct election of the President.”

The rule of the President’s election will be clarified before April 30, 2017 by the state constitutional commission, which was established in December and which is boycotted by the President’s administration. The Commission is to elaborate the draft in four months, followed by legislative proposal and month-long nationwide discussions. The document will then go through parliamentary proceedings and be put to vote for approval with at least 113 votes. Parliamentary Chairman Irakli Kobakhidze, who chairs the Commission, said that this process will take at least a year.

Davit Usupashvili said that “the political crisis” may emerge if “personal struggle with the President continues” or “GDDG’s inclinations of establishing total control further grows in parallel with the constitutional amendment.” Usupashvili also added that the Georgian Dream “cares not for imperfect constitution”, but “is irritated by the principle of division of powers.”

Usupashvili said that if GDDG, which holds the 116-member constitutional majority in the Parliament, decides “unilaterally” that the President should be elected indirectly, the President “has a complex of legal and political steps at his disposal, through which Georgian Dream’s ill-thought-out attempt may boomerang for the party.”

“A year before expiration of the President’s term in office – the President may address the Georgian people saying that ‘the Georgian Dream is depriving you of the right to elect the President directly, I am forceless to resist this change, but I will resign and before the amendment enters into force, I give you the chance to elect the President again and have elected President for five more years, till 2022. And in 2020, we will have to elect the new Parliament and let’s see, whether the new Parliament will deprive you of the right or maintain you the right to elect ‘your’ President,” Usupashvili said.

“Such turn of events is realistic both from constitutional and political points of view,” he added.

President Margvelashvili’s five-year term in office expires in autumn 2018. In case of his pre-term resignation, early presidential elections will be held within 45 days.

“It may happen in June, when the Constitutional Commission elaborates the draft amendments,” Usupashvili explained.

“If Giorgi Margvelashvili or anyone else, non-governmental candidate wins the elections, the future president will become a serious figure in terms of its political weight. Thus, the Georgian Dream may receive much stronger president and political problems will start from there,” he noted.

Usupashvili also said that success in the 2020 parliamentary elections or joining the ruling coalition will be the goal of his new political force, on the formation of which he talks “a lot”, including with “politically not-so-active people.”

“We will do our best to promote this key task – winning the parliamentary elections, local [in October 2017] and presidential elections,” Usupashvili said in the interview.

China-Nepal Relations: New Normal May Be Troubling For India – Analysis

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By Anuradha Rai*

Beginning a new level of bilateral military engagement, Nepal will hold its first ever joint military exercise with China on February 10, 2017 named Pratikar-1 that will be on training Nepali forces in dealing with hostage scenarios involving international terror groups.

Although the military drill with China does not violate the 1950 India-Nepal Treaty of Peace and Friendship, it does appear unconventional to the Indian side. However, what seems unconventional to India now, is becoming a convention in China-Nepal relations. There is no denying the fact that China is making inroads in not only Nepal but in most of the South-Asian countries, be it Sri Lanka, Bangladesh, Afghanistan or Bhutan.

From the Silk Road Economic Belt (SREB) and Maritime Silk Route (MSR), to One Belt One Road (OBOR) and the current BRI (Belt and Road Initiative), the Chinese strategy to create a link in South Asia will not be limited to trade and commerce only. China is looking much beyond its trade relations and it is eyeing Nepal as a centre to promote its ambitions in the South Asian region. The geographical proximity of Nepal to China gives China additional leverage to strengthen its stronghold in Nepal.

However, the current trend and cozying up of Nepal and China is troubling for India. Nepal is considered as a natural ally of India and conventionally close to it. The killing of King Birendra and the royal family in June 2001 and accession to the throne of Gyanendra, who was considered to be pro-China, had troubled India.

India had supported the pro-democracy movement of Nepal with the assumption that the new democratic government that will come up with Indian support will strengthen India’s position in a democratic Nepal. However, it seems that India had miscalculated Nepal, as the coming governments in Nepal have kept playing the China card and Nepal is now falling slowly into Chinese hands.

India-Nepal relations took another nosedive in the latter half of 2015 when trade with India was effectively halted in the wake of protests over Nepal’s new constitution by Madhesi protestors. Nepal accused India of providing unofficial support in orchestrating a blockade, while India said protests near the border were the result of ignorance of problems of the Madhesis which was preventing normal trade relations. During the crisis, China — Nepal’s only other neighbour — appeared as an attractive alternative trading partner and for the first time, Nepal sought to import gasoline from China, the first concrete sign that Kathmandu would look to Beijing to decrease reliance on Indian trade.

The situation is getting worrisome for India because from mere words in the past, Nepal has now started to develop its economic and political ties with China. In the recent past, China has also showed similar eagerness to provide an alternative to India for Nepal by providing new trade routes and developing its strategic ties. The recent development to have joint military exercise is one such measure.

On March 21, 2016, Nepal secured transit rights through China following an agreement in Beijing between Prime Minister K.P. Sharma Oli and his Chinese counterpart Li Keqiang. Other than this, as validated by the BRI Vision Plan, much of China’s connection with South Asia through the Tibetan Autonomous Region (TAR) has been primarily with Nepal, both in terms of trade and connectivity. Plans to further improve connectivity are at an advanced stage.

Furthermore, in its move to develop the infrastructure in the country, on August 5, 2016, China Daily reported that China CAMC Engineering Co. and China Railway Construction Corp. have already applied to Nepal’s Railway Department for the construction of the Kathmandu-Rasuwagadhi railway. The TAR has accounted for over 90 percent of China’s foreign trade with Nepal since the opening of the Xining-Lhasa railway in 2006, implying that the railway facilitated the transportation of goods from coastal China to the TAR and on to Nepal.

India feels that India-Nepal ties could not be compared or curtailed by Nepal’s agreements with China. “After all, 98 per cent of Nepal’s third-country trade goes through India and through Kolkata port,” an official pointed out. India at present has two rail lines under construction and three more are being planned to increase Nepal’s trade ties. During the February 2016 visit of Prime Minister Oli to New Delhi, India agreed to give Nepal dedicated access to Vizag port. It has also been pointed out that in comparison to the Nepal-China agreement, India and Nepal had 25 crossing points, two integrated checkpoints and 2 more checkpoints were under construction.

Nevertheless, there is no denying the fact that the current development of new normal in China-Nepal relations is troubling for India as Nepal’s dependence on India will reduce and thus its obligations towards India resulting in the loss of Indian influence in Nepal in particular and South Asia in general.

*Anuradha Rai is a Senior Research Fellow at Jawaharlal Nehru University, New Delhi. Comments and suggestions on this article can be sent to editor@spsindia.in

Streamlining Internet Of Things And Other Cyber-Physical Systems

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Sometimes referred to as the Internet of Things, cyber-physical systems vary from phones to self-driving cars, from airplane controls to home energy meters. They are both touchable objects and invisible code. However, as streamlined as cyber-physical systems appear, the technology developed within manufacturing systems that were not designed to accommodate it.

To change that, researchers banded together from Michigan Technological University, Boston University, University of California, Berkeley, and University of California, Riverside. Their latest work, a keynote paper published in IEEE Transactions in CAD, lays the groundwork for better design in cyber-physical systems.

“The register-transfer-level (RTL) design flow for digital circuits is one of the major success stories in electronic design automation,” the authors write. “Will a durable design methodology, such as the RTL design flow, emerge for cyber-physical systems?”

The answer, they say, depends on how well cross-disciplinary teams learn to manage heterogeneous and dynamic technologies across large scales while accounting for human users.

Reframing Automation Design

A better cyber-physical design system comes down to the nuts and bolts of new technology–but it’s not as simple as separating out the mechanical and digital pieces. Cyber-physical systems are not just the interface of the two; together they create an emergent space with new properties and challenges.

Take a smart grid, for example. Much like a cake is more than the sum of the sugar and flour in its recipe, a smart grid is more than a home energy meter, powerlines, a power plant control center and software. The pieces are networked in order to predict, adjust and assess production and consumption in close to real-time.

“Sensors transmit data to the physical system, which reads the data and takes action,” said Shiyan Hu, an associate professor of computer engineering at Michigan Tech and one of the study co-authors. Usually, this transfer is streamlined and efficient, but as a cybersecurity expert, Hu knows the exchange is a weak link.

Cybersecurity

“Security and privacy have become two of the foremost design concerns for cyber-physical systems today”, the team writes, “and they cannot just be bolted on as an afterthought.”

Hu said hiring specialized experts at each stage of the design and manufacturing process is essential. There is no one-size-fits-all kind of cybersecurity. For example, in a self-driving car, from the central operating system to a smart phone Bluetooth connection to the anti-lock brakes, each device and software needs a tailored design.

“Cybersecurity is part of this, but more–cyber-physical security impacts not just the network, it impacts the whole system, including the physical objects,” Hu explained.

The key to making safe, dependable and innovative technologies, Hu and his team explain, is to embrace big data. They encourage combining model-based design with data-based learning: in other words, merge two existing paradigms into one practice. The result could help establish the RTL design flow equivalent in cyber-physical systems. Streamlining also incorporates machine learning, real-time sensors, effective communication interfaces and human-centric strategies–simply a smarter way to approach the design process.

France: Valls Courts Traditional Socialists In Presidential Bid

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(EurActiv) — France’s former prime minister Manuel Valls promised to avoid draconian public spending cuts in a pitch for traditional leftwing voters as he laid out his bid on Tuesday (3 January) to become the ruling Socialist Party’s candidate in France’s presidential election.

Valls, who resigned last month as head of the government to free his hands to run for the Socialist nomination, also proposed an overhaul of the welfare system that would provide substantial handouts to many jobless people without requiring them to prove they are actively seeking work.

Valls, 54, told voters they faced a “vast purge” in public services and employment if the presidential election favourite, conservative Francois Fillon, wins power in May.

While pollsters say Valls is likely to secure the Socialist ticket in a primary vote this month, the left is in disarray and any Socialist candidate will face a struggle to make it beyond the first round of the two-stage ballot in April and May.

Pollsters see Fillon and far-right National Front leader Marine Le Pen meeting in a head-to-head second round with the 62-year-old Fillon emerging the victor.

The National Front has won increasing support among traditional socialist voters with its protectionist economic policies, and many feel betrayed by Valls who spearheaded pro-business reforms during Francois Hollande’s presidency.

On Tuesday, Valls sought to lure back such voters while casting Fillon as a politician who would sow deep divisions.

“The right’s programme will punish the French people. It is an unbeatable recipe of division worse than this country has ever seen in recent decades,” he told a news conference.

Fillon, for his part, defended his programme of slashing public spending and cutting half a million public sector jobs – policies which he says are needed give corporate France a shot in the arm and boost economic growth.

“I think 500,000 (jobs) is an achievable figure, particularly if we negotiate an increase in working hours,” he told TF1 television, referring to plans to scrap the 35-hour working week.

He rejected repeated charges that his proposals for welfare and public health service reform were brutal. “I am a Gaullist and I am a Christian: that means I would never take a decision that is contrary to the respect for human dignity and the human being,” he said.

Security and welfare handouts

Valls said he would continue to hire 1,000 more police per year to bolster security in a country under threat of further deadly attacks by Islamist militants. The defence budget would be increased too, he said.

He also proposes that adults be given the right to a monthly welfare handout at a time of 10% unemployment.

He has spoken in the past of a figure of €850 euros a month, saying such handouts would be means-tested and necessary for all to be able to get a good start in life. One of his rivals in the Socialist primary is proposing a more far-reaching version. Benoit Hamon, a former education minister, wants all French citizens to be given such a payment.

Valls launched his campaign after the unpopular Hollande announced he would not run for a second term, becoming the first president in France’s Fifth Republic not to seek re-election. Some polls have shown his support in low single digits.

If Valls wins the party ticket, he will not only have to tackle the threat from Le Pen, but also deal with his former economy minister, ex investment banker Emmanuel Macron who is running as an independent, and Jean-Luc Melenchon on the far left who is performing well in polls.

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