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Pakistan: PTI’s 100 Days And CPEC – OpEd

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Presently the talk of the town is the 100-day agenda that the PTI gave a month before the 2018 general election. Indeed, on November 25, the first 100 days of Imran Khan as Prime Minister were completed.

The top priority of the PTI agenda is poverty elevation and elimination of corruption for an economic uplift. It is pertinent to mention here that when we say the economic uplift then we can’t ignore CPEC because it is one of the chief contributing factors in poverty elevation, and to lower the power crises. So here is the point to ponder that what are the outcomes of the PTI’s CPEC vision as far as the CPEC in these first 100 days are concerned.

Imran Khan in his first speech as a Prime Minister termed CPEC as a way to upgrade the economically strained nation out of poverty. It was said that it is a paramount and an ideal project through which Pakistani people will enjoy the economic benefits. The PTI Government stressed that the new government under the supervision of Prime Minister Imran Khan would surely utilize the advantage of this economic opportunity for the development and betterment of Pakistan.

However, some critics during the start of the new political governance said that the new government will not continue the CPEC project on the previous terms and conditions and there is lack of transparency in CPEC.

Moreover critics like Michael Kugelman were of the view that China would be more comfortable with Sharif’s government instead of Imran because the former government had not raised any concerns related to the transparency of financial plans and agreed on broader terms of the CPEC on a whole.

There is no reality in all such statements because the PTI governments has taken CPEC as an opportunity that can raise the prospects of Foreign Direct Investment (FDI) and attract the investors across the border and region as well. It will add foreign reserve into Pakistan’s economy. CPEC is also a way to pull approximately 700 unemployed people out of the dark shadows of poverty.

PM Imran Khan’s successful visit to China is an example the PTI is taking CPEC as an important constituent of Pakistan Foreign policy and in upgrading the economy. The outcome of the PTI’s achievement in perusing the CPEC policies is not limited to the deepening of the relations between the two countries. It expanded the strategic communication between the two countries. A strategic dialogue mechanism has also been planned so that the cooperation on various issues of mutual concerns could be coordinated in well mannered.

CPEC is not limited to the economy — it also promote cultural and social convergence of two civilizations. The two states agreed to institute the social and lively hood working groups in order to promote the Construction of CPEC. Moreover, special focus was cooperation in the fields of economy and development of Special (SEZs), trade and finance for achieving extraordinary economic growth and to encourage exports. Along with this 15 agreements were signed in various other fields including science and technology, agriculture, humanities, etc.

Considering all the plans of Khan and his First 100 Days agenda of economic development and elevation of corruption as far as CPEC is concerned one can infer that although CPEC is a best opportunity under current circumstances to cope with economic challenges however it needs more transparency. There should be innovation of ideas to start new industries for economic growth and industrialization because we should not putt all the eggs in one basket.

Currently Pakistan’s biggest issue is facing the difficult economic situation that requires not only a corruption free Pakistan, rather a Pakistan which explores and utilizes it full resources and potential for economic rise. Now it’s important to observe that what new strategies the government will adopts to get best out of this CPEC Opportunity for the sake of nations vital interests.

*Qura tul ain Hafeez has done M Phil in international relations from Quaid-I Azam University Islamabad. She is currently working as a Research Associate at Strategic Vision Institute Islamabad.  She can be reached at Quraathashmi@gmail.com .


Iran: FM Zarif Decries US Presence In Persian Gulf

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Iranian Foreign Minister Mohammad Javad Zarif said deployment of a US aircraft carrier to the Persian Gulf would create tensions in the region.

In an interview with China’s Phoenix TV, Zarif said the US’ military presence in the Persian Gulf is illegal and would add to tensions.

He said the dispatch of a US aircraft carrier to the Persian Gulf would create tensions, adding that increased presence of Americans in the Persian Gulf has always posed threats to the regional states.

Zarif also dismissed speculations by some Chinese analysts that Iran will have to enter talks with the US after six months, saying Iran will never negotiate with the US in an emergency.

The US, which has withdrawn from the Iran nuclear deal, is the party that should return to negotiations, the minister said.

Zarif underlined that the US could not block the export of Iranian oil, saying such a move would push Washington into policies that will create chaos in the world.

As regards the US pullout from the Joint Comprehensive Plan of Action (JCPOA), Zarif said Iran would take a tougher line if it returned to three years ago to the time of nuclear negotiations.

Elsewhere, the Iranian minister called on China to take into account its age-old ties with Iran to stand against the US bullying policies.

Hailing the close cooperation between Tehran and Beijing, Zarif described Iran as a reliable partner of China, pledging that the Islamic Republic will never politicize plans to supply China’s energy demands.

Russia Bans $500 Million Worth Of Imports From Ukraine In Retaliatory Sanctions

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Russian Prime Minister Dmitry Medvedev has signed a ban on the import of more than 50 Ukrainian goods, worth $510 million. The move comes in response to recently prolonged Kiev’s embargo on Russian products.

The list, published by the Russian government on Saturday, includes mainly industrial goods,  agricultural products, raw materials, and food. The products that fell under the ban are wheat, sunflower oil, sweets, chocolate, bread, bakery, vegetables, fruits, beer, caviar, fish and canned fish, Sanctions also target engines and power generators, tractors, turbines, and some other equipment and goods.

“Russia has introduced a ban on imports of a number of Ukrainian goods. This is a retaliatory measure against Ukrainian restrictions. I signed the corresponding decree,” Medvedev wrote on Twitter Saturday.

Sanctioned Ukrainian goods amount to $510 million, according to preliminary evaluations of the Russian Ministry of Economic Development, cited by Interfax. It added that overall imports from Ukraine last year amounted to nearly $5 billion.

The restrictions can be lifted if Kiev gives up its own restrictions targeting specific Russian goods.

On December 18, the Ukrainian government extended its embargo on the import of Russian foods until the end of 2019. The restrictions targeted more than 30 products, some of them similar to the Russian list published on Saturday. The list includes bread, bakery, chocolate, sweets, meat, fish, coffee, black tea, infant food, some alcoholic beverages among other goods. Russian railway equipment also fell under Kiev’s ban, including locomotives, railcars, trains and switch throwers.

Russia and Ukraine terminated their free trade deal in 2016, after the trade part of Kiev’s association agreement with the European Union came into force. Ukraine was automatically included in Russia’s sanctions against the EU imposed by Moscow back in 2014 as a response to European sanctions linked to the events in post-government coup Ukraine.

Despite the bilateral restrictions, trade turnover between Russia and Ukraine has increased in 2018, Russian President Vladimir Putin announced during his annual press conference earlier this month. Ukrainian statistics show that Russia remains its largest trade partner. In 2017, the turnover between the two nations increased by more than 28 percent and amounted to $9.3 billion.

ECB Sees Global Economic Slowdown In 2019

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(EurActiv) — The global economy is set to slow down in 2019 and stabilise thereafter, the European Central Bank said on Thursday (27 December), while still expecting prices to rise.

Investors have been bracing for a worldwide slowdown in economic growth, mainly driven by higher borrowing costs for dollar debtors and trade tensions between the United States and China.

The ECB threw its weight behind that expectation in its regular economic bulletin, but still saw “inflationary pressures” globally and in the eurozone.

“Looking ahead, global economic activity is expected to decelerate in 2019 and remain steady thereafter,” the ECB said.

“Global inflationary pressures are expected to rise slowly as spare capacity diminishes.”

The bulletin illustrated the ECB’s decision at its December meeting to end its €2.6 trillion bond-buying programmes but continue reinvesting the money it receives from maturing paper for a long time after its first rate hike.

The decision was criticised by some as untimely given the weakening economy. But the ECB, whose sole objective is hitting its inflation target, reaffirmed its confidence that core prices would continue to rise in the eurozone.

“Underlying inflation is expected to increase gradually over the medium term, supported by the ECB’s monetary policy measures, the continuing economic expansion and rising wage growth,” the ECB said.

Lavrov: Russia, Turkey To Coordinate In Syria After US Withdrawal

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(RFE/RL) — Turkey and Russia have agreed to coordinate “on the ground” in Syria following a planned U.S. troop withdrawal, Russian Foreign Minister Sergei Lavrov has said following a meeting with Turkish officials in Moscow.

“Certainly, we gave special attention to the new circumstances that arose in connection with the troops withdrawal announced by the United States,” Lavrov was quoted as saying by the Interfax news agency on December 29.

Turkey and Russia have the common aim of clearing Syria of all terror organizations, Turkish Foreign Minister Mevlut Cavusoglu said after the talks, state-owned Anadolu news agency reported.

Cavusoglu also said Turkey would continue to be in close cooperation with Iran and Russia on Syria and regional issues, according to Anadolu.

U.S. President Donald Trump has said that Washington would withdraw the roughly 2,000 U.S. troops in Syria, upending a pillar of U.S. policy in the Middle East and alarming U.S. allies.

Saudi Arabia To Host Next Round Of Afghanistan Peace Talks

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By Sayed Salahuddin

The next round of peace talks on Afghanistan will take place in Saudi Arabia, probably in January.

Saturday’s confirmation of the Saudi role followed a telephone conversation on Thursday between King Salman and the Afghan President Ashraf Ghani.

Ghani praised the “prominent” Saudi role “in consolidation of peace and stability in Afghanistan,” and said the next meeting in the Kingdom would be “a good step and start for subsequent processes.” 

He thanked the king for his support for an Afghan-led and Afghan-owned peace process, and the king promised to use his offices to consolidate peace and stability in Afghanistan.

Last summer, Saudi Arabia hosted a global conference of Islamic scholars to discuss the Afghan war.

A spokesman for the Afghan government-appointed High Peace Council said council members and government delegates are expected to take part in the January talks.

Taliban spokesman Zabihullah Mujahid said discussions were continuing among the group’s leadership about the meeting’s venue and date.

Two weeks ago, American, Saudi, Pakistani and Emirati officials attended a meeting in Abu Dhabi to explore ways to end the Afghan war.

At that meeting, the Taliban said it would negotiate directly with the Afghan government only after the withdrawal of US-led troops from Afghanistan.

Since then, US President Donald Trump has surprised American allies by announcing that he intended to halve the number of US troops in Afghanistan, from 14,000 to about 7,000.

The 17-year conflict in Afghanistan is America’s longest war, and Trump has long campaigned on bringing US soldiers home. Nevertheless, in 2017 he added 4,000 troops to US forces there in an attempt to speed up the peace process.

How Netanyahu Jumped Before He Was Pushed – Analysis

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By Yossi Mekelberg*

A call for early elections in Israel a few months before they are actually due cannot be regarded as an earthquake. Governments there rarely survive for a full term, and when early elections take place on April 9 the fourth Netanyahu government will have served for nearly four years. In the tumultuous reality of Israeli politics, this should be regarded as something between an achievement and a miracle.

However, one would be hard pressed to find any other achievement of this government or its prime minister that is worth celebrating.  Netanyahu’s decision to call it a day for his coalition is a calculated risk, some might say a gamble. It is based on an assessment that he will be forming the next government, or at least on a belief that he can create for himself and his corrupt inner circle some breathing space from the police investigations into their abuse of public office.

Two recent and not unrelated developments have left Netanyahu and his government vulnerable, and forced the prime minster to reassess the balance of power on the political chessboard. This has led him to concede that the coalition’s days are numbered. First was the resignation of Defense Minister Avigdor Lieberman, who quit the government along with his party. This left Netanyahu presiding over a coalition with a majority of just one member of the Knesset and at the mercy of several unpredictable, unreliable and at times unscrupulous others. It would inevitably have meant a further year of paralysis and caving in to the whims of almost every single coalition member. The second development, which has to do more with his personal fate than the country’s destiny, is the near inevitability of the PM’s indictment on at least one of the corruption affairs he is embroiled in. This will have increased the pressure on him to relinquish the premiership while he defends himself in court. In other words, Netanyahu has decided to jump into another election campaign before he is pushed into one, or out of politics altogether.

In the past few weeks a team of lawyers from the state prosecutor’s office, evaluating the meticulously collected evidence in two bribery cases against the Netanyahus, joined the police in recommending that the prime minister and his wife be indicted on two separate charges. Make no mistake, from now until his day of reckoning at the ballot box, whatever the Israeli electorate and the world hears and sees from Netanyahu should be considered in the light of his desperate attempt to cling to power and avoid justice, rather than of the good of the country.

Early figures from public opinion polls suggest that while a majority of Israelis do not trust Netanyahu, his Likud party will still gain about a quarter of the votes, leaving him with a very good chance of leading the next coalition government. This is a result of one of the idiosyncrasies of Israel’s murky politics, where personal integrity is a secondary issue for voters, because they see their personal security as closely linked to what they perceive as a threatening external environment and an economy that is thriving under the present administration. In the absence of an attractive alternative, they would rather stick with an untrustworthy leader than experiment with an alternative. Hence, the country is now entering a dangerous pre-election period in which Netanyahu and his Likud party will inevitably trigger another episode of their Project Fear. This instalment will resemble those of past election campaigns, but will have added zest considering the high personal stakes and aggressive style of some of those in Netanyahu’s circle.

Those who oppose the current administration will be portrayed as betraying the national interest, if not worse. Other parties, politicians, the media, and human and civil rights NGOs will be accused of undermining Israeli security and unjustly victimizing the prime minister and his family. To admit his faults and to seriously reflect, let alone regret or apologize, are not going to be part of Netanyahu’s lexicon and such an attitude has never been his forte. Instead, what will dominate his campaign will be provocation and incitement; he will stoke up fear of an existential threat from the Palestinians in the occupied West Bank and Gaza, from neighboring countries, from the BDS movement, from the “anti-Israeli European Union” and who knows who else. And should the polls begin to show that he may lose the election, he is quite likely to once more sink as low as questioning the loyalty of those Palestinians who are citizens of the state of Israel.

As is the case in almost every Israeli general election, new parties and alignments will be formed, and new faces will join either new or old parties. One, maybe two new parties/alignments are expected to fill the roles of surprise successes at the ballot box. However, all eyes are on the former chief of staff, Lieutenant-General Benny Gantz, who is expected to be the dark horse of these elections, whether he forms his own party or joins one of the existing ones. In the strange political terrain of the Jewish state, Gantz’s main appeal is not what is known about him and his highly distinguished, decades-long military service, but that very little is known about his views on almost anything that should be of concern to the voters. He is mainly recognised as a person of integrity and courage. To be sure, considering who is currently leading the country, these traits are already a great advantage.

It is early days, but in the present circumstances these elections are not only about policies as such, but about the very soul of the country and whether its future will be in the spirit of the founding fathers — that is to say Jewish, democratic and inclusive. If Israel is to have such a future, then a thorough clean-out of the rotten and the corrupt is long overdue.

  • Yossi Mekelberg is professor of international relations at Regent’s University London, where he is head of the International Relations and Social Sciences Program. He is also an associate fellow of the MENA Program at Chatham House. He is a regular contributor to the international written and electronic media.

Ron Paul: Trump Presidency Is A ‘Mixed Bag’– OpEd

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Donald Trump’s presidency is a “mixed bag.” That is the assessment of libertarian communicator and former presidential candidate Ron Paul in a recent interview with Larry King at King’s Ora TV show Politicking.

Asked by King what he thinks overall about the Trump presidency, Paul says he cannot praise Trump as a libertarian or condemn him as a “socialist-authoritarian.” So what then is Trump’s political philosophy? “I can’t figure him out,” declares Paul regarding Trump, who Paul says does not appear to be “worried about following a consistent pattern.” With Trump’s political views being rather indecipherable, his presidency, concludes Paul, is a “mixed bag.”

In contrast to Trump’s approach to government, Paul discusses in the interview the libertarian approach. “Libertarians don’t intervene other than [for] the protection of liberty,” Paul explains. While Trump intervenes here and there, sometimes in line with conservatives and sometimes in line with liberals, Paul says a libertarian would follow clear guidelines: “Stay out of the business of regulating the economy; stay out of the business of telling how people should live; stay out of the business of telling other countries how they should run their countries.”

Watch Paul’s complete interview, in which Paul also talks in detail about the American economy, here:


This article was published by RonPaul Institute.


Jehovah’s Witnesses Most Persecuted Religious Denomination In Russia In 2018 – OpEd

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Moscow increased its repression of various religious groups at odds with the four traditional faiths of Russia, but the most persecuted in Russia in 2018 by far have been the Jehovah’s Witnesses, against whom at least 62 criminal cases have been opened and 49 of the faithful confined in preliminary detention centers or under house arrest.

One striking characteristic of the Russian campaign against the Jehovah’s Witnesses is that all these cases have been initiated outside of Moscow and St. Petersburg, as if the authorities wanted to test their repressive mechanism there beyond the prying eyes of opposition media and Western diplomats, Anton Chivchalov says (credo.press/221812/).

The Credo portal religious affairs expert says that all these actions have their roots in the 2017 Supreme Court decision labelling the Jehovah’s Witnesses an extremist organization and liquidating all 396 religious communities affiliated with the Witnesses in Russia. But the actions of local police, prosecutors and courts have little to do with legal niceties.

They treat being a Jehovah’s Witness as a crime in and of itself, a violation of the Russian Constitution and international law, and something that has drawn protests from human rights groups inside Russia and international legal organizations which have pointed out that the Russian approach makes all of the Witnesses in Russia potential victims.

The Russian authorities deny that is true even though case after case showed that it is, that Jehovah’s Witnesses are being convicted of crimes not for any “terrorist” activity but simply for being members of that denomination.  Russian law enforcement personnel know that is what their bosses want, Chivchalov says; and the government has never said otherwise. 

The hypocrisy and duplicity of the Russian authorities in response to these charges has “confused even themselves” as was demonstrated when Vladimir Putin himself “unexpectedly declared that he did not understand why the Jehovah’s Witnesses were being pursued. [They] are also Christians; for what they are being persecuted, I also do not understand very well.”

Those who try to defend what Russian courts are doing say that the Russian authorities are only defending themselves against those who are banned in Europe, won’t serve in the army, and won’t take their children to hospitals. “All three of these asserts are untrue.” But few in the Russian establishment care.

“Truth,” the Credo journalist says, “isn’t much in demand, but lies are spreading like a forest fire.” One can only hope and pray that the situation will get better in 2019.

Sri Lanka: Speaker Urges Religious Leaders To Act Against Racism

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Speaker Karu Jayasuriya made an earnest plea from religious leaders to raise their voices against racism and in support of the abolishing of the Executive Presidency in the coming year.The Speaker’s Media Division in a press statement yesterday said that the Speaker made the above request during a special meeting with multi-religious representatives at the Speaker’s official residence on Wednesday.

The Speaker spearheaded a “multi-religious conference” following the racial tensions in Kandy and Ampara early this year. With the multi-religious representatives of this initiative, he held special meetings in Kandy and Ampara to promote national harmony and reconciliation. Speaker Jayasuriya meeting those multi-religious representatives on Thursday requested their leadership to denounce the attempts to incite ethnic and religious hatred in the North and the South while observing that certain political figures were also behind such attempts.

The Speaker also requested not to let the politicians spread racism using temples and other religious places as the hub.The Speaker also made a special request from the multi-religious representatives to support the people’s long-standing call to abolish the Executive Presidency. The Speaker was of the view that the excessive powers of the Executive Presidency are too heavy for Parliamentary democracy.

The Speaker at the meeting pledged his unwavering commitment to abolish the Executive Presidency in the same way he committed to uphold good governance and ethical conduct from the very first day he entered into politics. He made that comment recalling how hard he committed to the 17th Amendment to the Constitution.

The Speaker also recalled that it was late Ven. Maduluwawe Sobitha Thera who lined up the masses against anti-democratic and emerging autocratic rule in the country then. “That social movement was necessary not to bring in one individual to power but to empower democracy by implementing a set of common policies. Setting up of the Constitutional Council and independent commissions, and establishing the right to information law and independence of judiciary were achievements within a short period, but it is unfortunate that we could still not achieve the goal of abolishing the Executive Presidency,” the Speaker commented.

The Speaker also pointed out that the trust between President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe gradually deteriorated after the Local Government polls were declared. “I continuously tried to make peace between them. It was true that the President offered me the Prime Minister post on several occasions, but I didn’t want to accept any post which the people had not given me a mandate,” he added.

The Speaker, explaining on the challenges he faced during the seven weeks from October 26, said that he was determined not to give in to thuggery.“I knew the risk. There were threats of acid attacks against me inside the Chamber, but had I not taken that risk, it could have been a dark day for the Parliamentary system of our country. Who won in the past two months is not important as the country lost a great deal during that time,” he remarked.

He however pointed out that the assurance that we have an independent judiciary was a positive outcome of the political crisis. “From now on, nobody will talk about the need for the intervention of international judges into our country’s affairs,” he said.The Speaker requested the religious leaders to play the role of reconciliation as disputes between the President and the Prime Minister, being two centres of power, are harmful to the country though thereseems to be temporary settlement.

If US Troops Exit Kabul, And Taliban Holds Sway, Pakistan Could Unleash ‘Ghazwa-E-Hind’ Against India – Analysis

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We could soon see America leave Afghanistan’s brutal war half-finished. The implications of this will be dreadful for ordinary Afghans. This is no good news for India either.

By Vikram Sood

Nearly forty years ago, on Christmas Day in 1979, Soviet tanks and troops were airlifted into Kabul — in what became a bloody battle between ‘godless’ Communists on one side, and Islamic mujahedeen backed by the West, Pakistan, the Emirates and Saudi Arabia on the other.

If the 1980s were the years of what ultimately came to be known as the Afghan jihad, the 1990s were the years of civil war, with the Taliban triumphant in Kabul.

The 21st century has seen the results of an unending US-led ‘Global War on Terror’, located in Afghanistan, among other Muslim countries. The Afghans were punished for their location — while Pakistan rewarded for its. This also makes it the longest war that any country has faced in modern times.

Today, most people, when they talk about the situation in Afghanistan, also refer to it as ‘America’s longest war’. No one really considers that the helpless Afghan population has been subjected to an endless war, which has inflicted unimaginable deprivation and depredation for nearly 40 years.

Afghans have been punished for being on the crossroads of superpower rivalry, and for no fault of theirs, while the narrative has been that these wars were for their ‘liberation’ from the Communists in the 1980s, and ‘emancipation’ during the dark days of the Taliban and Al Qaeda in the 21st century.

The WTC attack in New York was by Saudis mostly. The Taliban were sheltering Al Qaeda — and the Pakistan Deep State was sheltering and assisting the Taliban.

Americans fought in the wrong place, Afghanistan, with wrong and inadequate means. They were helped by a ‘major non-NATO ally’ — as President Bush referred to Pakistan, which was double-crossing them even as the Americans paid handsomely in billions of dollars for this duplicity.

There were never enough troops on the ground to defeat and hold territory gained.

Excessive reliance on aerial power means that the situation on the ground is adverse and the military situation is in a stalemate. A superpower cannot afford to be in a stalemate, for this actually means defeat.

No wonder today, the Americans are negotiating with the Taliban — whom they had sworn to eliminate — for a safe and honourable exit for US forces from Afghanistan.

The effect of this decision on other regional players is assumed to be of little consequence.

This is a clear exhibition of the ‘America First’ policy of President Donald Trump. Meanwhile, Trump, possibly pursuing a declared (April 20, 2019) date for a negotiated settlement, suddenly announced partial troop reduction even as his representative was speaking to the Taliban and the violence continued unabated. A suicide attack — this year’s 22nd attack in Kabul — accompanied by an attack via unknown terrorists killed 40 persons in Kabul on December 25.

The Taliban denied any responsibility for this attack, so suspicion would then be on the Islamic State, which is believed to be increasing its profile in Afghanistan.

According to The Armed Conflict Location and Event Data Project (ACLED) cited by Afghanistan-watcher Frud Bezhan, a journalist with the Radio Free Europe/Radio Liberty (RFERL), there have been 44,655 fatalities in Afghanistan from January 1 to December 8, 2018.

These include civilians, government forces and militants. This places Afghanistan ahead of Yemen and Syria — yet, the narrative is about the latter two, even in India.

As the security situation in Afghanistan worsened and the Taliban gained territory, with the US unable to put more soldiers on the ground, this year the US dropped more bombs than in any other year of this war. Withdrawal of ground forces will only mean greater reliance on air attacks.

The cycle of violence increased early in 2018 as the rivalry between the Taliban and the Islamic State spilled out on the streets of Kabul. Dr. Shanthie Mariet D’Souza wrote (Mantraya Analysis, #22 February 22, 2018) that although the government played down these incidents, the insurgents were successful in getting renewed international media attention in this battle of the narratives.

The Taliban also stepped up their activities because of an inadequate government response. The Taliban were now “a decentralised rural insurgency with undiminished ability to target urban centres”. Estimates about how much territory is under Taliban control vary, but it is substantial — even up to 40%.

In the next few months from now, one can expect the Taliban to drag the negotiations while pretending to be earnest about the process, and then come back in the spring of 2019 with renewed vigour.

The Taliban and their mentors, Pakistan, knew they just had to wait it out. This became very clear when President Obama announced in 2009 that the US would leave Afghanistan in 2011. In the immediate future, the Afghan government will possibly yield more ground to the Taliban.

The Taliban have not evolved into a political movement and have remained a jihadi force. It is highly unlikely that the Taliban will accept the present Afghan constitution, and would insist on governance under Islamic law. A Taliban victory after a deal with the US will only bail out the US — without bringing peace to the country. Afghanistan could easily break out into ethnic, sectarian, regional and tribal tensions.

There is also the question of the increasing profile of the Islamic State remnants now in Afghanistan, with their alliances with others. As Andrew Bacevich put it very bluntly, “The United States’ war in Afghanistan began with an illusion that it was incumbent upon the US to liberate and transform that country. The war in Afghanistan will end, as the Vietnam War ended — in shame and abandonment.” (The war in Afghanistan isn’t a ‘stalemate.’ The US has lost.”)

There are reports of the Islamic State in alliance with the Islamic Movement of Uzbekistan and Tehrik-e-Taliban Pakistan gaining some presence in northern Afghanistan, close to countries like Tajikistan, Uzbekistan and Turkmenistan, which have had traditionally close ties with Russia. They also have a presence in Nangarhar and Paktika provinces bordering Pakistan. It is possible they will later drift to other pastures east or north.

With the recent discovery of ISIS cells in Delhi and UP, a likelihood of such cells having been established or functioning under the banner of ISIS elsewhere as well would be a matter of great worry for the Indian security apparatus. It is unlikely the Arabs operate them, but merely some locals using the franchise’s name, or induced to do so.

Pakistan may feel the loss of American largesse in case peace negotiations are successful. Pakistan has meanwhile worked out deals with the UAE, Saudi Arabia and China to keep some funds flowing in to lift its battered economy.

There is another possible gain. Russia and China will also show greater interest in affairs in Afghanistan, which would be in line with Pakistan’s interests in Afghanistan, so long as the US is kept out.

There is another aspect that needs to be kept in mind as the Great Game may continue in different forms. US President Trump recently tweeted that the Saudi government had agreed to help finance the rebuilding of Syria. This could be a dual-purpose exercise, which provides business opportunities to American industry to build what they themselves, with Saudi Arabia, first helped destroy. The hope is that this will keep the Russians and China away — or, at least, prevent them from being in control. This plan could be replicated in Afghanistan for the same reasons.

For this, it will want to pretend to keep peace with India — it will make all the polite noises about living in peace to keep its eastern border quiet. It can be expected to keep the Khalistan and Kashmir issues on the back-burner until Afghanistan is ‘sorted out’, with its India-specific jihadi outfits intact.

Pakistan will see a Taliban victory in Afghanistan as a vindication of is policies, and both the Taliban and Pakistan will depict this as a victory of the faith over another superpower. This will be enough encouragement to unleash its assiduously nurtured India-specific Ghazwa-e-Hind battalions against India.

We need not be beguiled into believing otherwise.


This article originally appeared in The DailyO.

Will Kurds Keep American Weapons After Syria Withdrawal? – OpEd

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The US commanders planning for the withdrawal of the American troops from Syria are recommending that the Kurdish fighters battling the Islamic State be allowed to keep the US-supplied weapons, a move that would likely anger NATO-ally Turkey, according to an exclusive report [1] by Reuters.

The report adds: “The proposal to leave the US-supplied weapons with the Kurdish YPG militia, which could include anti-tank missiles, armored vehicles and mortars, would reassure Kurdish allies that they were not being abandoned.”

During the initial years of the Syrian conflict, although the US openly provided the American-made antitank (TOW) weapons to the Syrian militant groups, it strictly forbade its clients from providing anti-aircraft weapons (MANPADS) to the militants, because Israel frequently flies surveillance aircrafts and drones and occasionally carries out airstrikes in Syria, and had such weapons fallen into the wrong hands, they could have become a long term security threat to the Israeli Air Force.

In the final years of the Syrian proxy war, some anti-aircraft weapons from Gaddafi’s looted arsenal in Libya made their way into the hands of the Syrian militants, but for the initial years of the conflict, there was an absolute prohibition on providing such weapons to the insurgents.

Last year, a report by the Conflict Armament Research (CAR) on the Islamic State’s weapons found in Iraq and Syria was prominently featured in the mainstream media. Before the story was picked up by the media, it was first published [2] in the Wired News in December 2017, which has a history of spreading dubious stories and working in close collaboration with the Pentagon and DARPA (Defense Advanced Research Projects Agency).

The Britain-based Conflict Armament Research (CAR) is a relatively unknown company of less than 20 employees. Its one-man Iraq and Syria division was headed by a 31-year-old Belgian researcher Damien Spleeters.

The main theme of Spleeters’ investigation was to discover the Islamic State’s homegrown armaments industry and how the jihadist group’s technicians had adapted the East European munitions to be used in the weapons available to the Islamic State. Spleeters had listed 1,832 weapons and 40,984 pieces of ammunition recovered in Iraq and Syria in the CAR’s database.

But Spleeters had only tangentially touched upon the subject of the Islamic State’s weapons supply chain, documenting only a single PG-9 rocket found at Tal Afar in Iraq bearing a lot number of 9,252 rocket-propelled grenades which were supplied by Romania to the US military, and mentioning only a single shipment of 12 tons of munitions which was diverted from Saudi Arabia to Jordan in his supposedly ‘comprehensive report.’

In fact, the CAR’s report was so misleading that of thousands of pieces of munitions investigated by Spleeters, less than 10% were found to be compatible with NATO’s weapons and more than 90% were found to have originated from Russia, China and the East European countries, Romania and Bulgaria in particular.

By comparison, a joint investigation by the Balkan Investigative Reporting Network (BIRN) and the Organized Crime and Corruption Reporting Project (OCCRP) uncovered [3] the Pentagon’s $2.2 billion arms pipeline to the Syrian militants.

It bears mentioning that $2.2 billion were earmarked only by Washington for training and arming the Syrian militants, and tens of billions of dollars [4] that Saudi Arabia and the oil-rich Gulf states had pumped into Syria’s proxy war have not been documented by anybody so far.

More significantly, a Bulgarian investigative reporter, Dilyana Gaytandzhieva, authored a report [5] for Bulgaria’s national newspaper, Trud News, which found that an Azerbaijan state airline company, Silk Way Airlines, was regularly transporting weapons to Saudi Arabia, United Arab Emirates (UAE), and Turkey under diplomatic cover as part of the CIA covert program to supply militant groups in Syria.

Gaytandzhieva documented 350 such ‘diplomatic flights’ and was subsequently fired from her job for uncovering the story. Not surprisingly, both these well-researched and groundbreaking reports didn’t even merit a passing mention in any mainstream news outlet.

It’s worth noting, moreover, that the Syrian militant groups, including the Islamic State, were no ordinary bands of ragtag jihadist outfits. They were trained and armed to the teeth by their patrons in the security agencies of Washington, Turkey, Saudi Arabia and Jordan in the training camps located in Syria’s border regions with Turkey and Jordan.

Along with Saddam’s and Egypt’s armies, the Syrian Baathist armed forces are one of the most capable fighting forces in the Arab world. But the onslaught of militant groups during the first three years of the proxy war was such that had it not been for the Russian intervention in September 2015, the Syrian defenses would have collapsed.

The only feature that distinguished the Syrian militants from the rest of regional jihadist groups was not their ideology but their weapons arsenals that were bankrolled by the Gulf’s petro-dollars and provided by the CIA in collaboration with regional security agencies of Washington’s traditional allies in the Middle East.

Fact of the matter is that the distinction between Islamic jihadists and purported ‘moderate rebels’ in Syria was more illusory than real. Before it turned rogue and overran Mosul in Iraq in June 2014, Islamic State used to be an integral part of the Syrian opposition and enjoyed close ideological and operational ties with other militant groups in Syria.

It bears mentioning that although turf wars were common not just between the Islamic State and other militant groups operating in Syria but also among rebel groups themselves, the ultimate objective of the Islamic State and the rest of militant outfits operating in Syria was the same: to overthrow the government of Bashar al-Assad.

Regarding the Syrian opposition, a small fraction of it was comprised of defected Syrian soldiers who go by the name of Free Syria Army, but the vast majority was comprised of Islamic jihadists and armed tribesmen who were generously funded, trained, armed and internationally legitimized by their regional and global patrons.

Islamic State was nothing more than one of numerous Syrian militant outfits, others being: al-Nusra Front, Ahrar al-Sham, Jaysh al Islam etc. All the militant groups that were operating in Syria were just as fanatical and brutal as the Islamic State. The only feature that differentiated the Islamic State from the rest was that it was more ideological and independent-minded.

The reason why the US turned against the Islamic State was that all other Syrian militant outfits only had local ambitions that were limited to fighting the Syrian government, while the Islamic State established a global network of transnational terrorists that included hundreds of Western citizens who became a national security risk to the Western countries.

Notwithstanding, Damien Spleeters of the Conflict Armament Research (CAR) has authored another report [6] last month in which he has stated that South Sudan’s neighbors, Uganda in particular, have breached an arms embargo by funneling East European weapons to the South Sudan conflict.

South Sudan is the world’s youngest nation which gained independence from Sudan in 2011. The United States is often said to have midwifed South Sudan by leading the negotiations for its independence from Sudan, because it is an oil-rich country producing about half a million barrels crude oil per day.

But a civil war began in 2013 between Dinka tribal group of South Sudanese President Salva Kiir and Nuer rebels led by warlord Riek Machar, and has triggered one of the world’s largest humanitarian emergencies. Millions of South Sudanese have sought refuge in displacement camps in the country or in neighboring countries.

The Conflict Armament Research’s report on the weapons found in South Sudan notes: “One of the most astonishing findings is that 99 percent of the ammunition tracked by CAR is of Chinese origin. Some of it was legally transferred to South Sudan, but much of it was delivered secretly to the opposition via Sudan in 2015 and is still being used.”

Unsurprisingly, the Britain-based monitoring group has implicated China, East Europeans and South Sudan’s neighbors for defying the embargo and providing weapons to the belligerents, and has once again given a free pass to the Western powers in its supposedly ‘comprehensive and credible’ report.

Sources and links:

[1] U.S. commanders recommend letting Kurdish fighters in Syria keep weapons:
https://www.reuters.com/article/us-mideast-crisis-syria-usa-exclusive-idUSKCN1OR1OD

[2] Tracing Islamic State’s weapons supply chain:
https://www.wired.com/story/terror-industrial-complex-isis-munitions-supply-chain/

[3] The Pentagon’s $2.2 billion Soviet arms pipeline to Syria:
http://www.balkaninsight.com/en/article/the-pentagon-s-2-2-billion-soviet-arms-pipeline-flooding-syria-09-12-2017

[4] Mark Curtis’ book review, Secret Affairs: How Britain Colluded with Radical Islam?
http://www.middleeasteye.net/columns/how-britain-engaged-covert-operation-overthrow-assad-1437573498

[5] Journalist Interrogated, Fired For Story Linking CIA And Syria Weapons Flights:
http://www.zerohedge.com/news/2017-08-28/journalist-interrogated-fired-story-linking-cia-and-syria-weapons-flights

[6] Uganda breached arms embargo in funneling European weapons to South Sudan:
https://www.washingtonpost.com/world/2018/11/29/uganda-funneled-european-weapons-south-sudan-breaching-arms-embargo-report/

About the author:
Nauman Sadiq is an Islamabad-based attorney, columnist and geopolitical analyst focused on the politics of Af-Pak and Middle East regions, neocolonialism and petro-imperialism.

Education As A Tool To Change The Conflict Narrative Of Kashmir – OpEd

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A growing number of young people in Kashmir are suffering from emotional despair, low self-esteem, a lack of cultural connectivity and a loss of values. They are angry with the prevailing state of affairs and this makes them extremely susceptible to manipulators who seek to profit from their situation.If the current negative attitude that permeates’ through Kashmiri society is not dealt with, the situation will worsen. The remedy may lie in the education system!! If the current teaching methods are supplemented with peace driven initiatives the youth of Kashmir may get a platform to express their views and shake away inhibitions.

Young Kashmiri people in the last 28 years of violence, disturbances and shut downs have lost pride in their roots and the rich cultural heritage of their homeland. Parents and grandparents who earlier had time for their children and grandchildren are caught up in their own turmoil. Whatever little conversation is there invariably comprises of cribbing against the system and speaking of difficulties in dealing with the insecure environment. All of this has a very debilitating impact on the young minds.

Due to the exodus of the Kashmir Pundit community, Kashmir has become a predominant Muslim region, and as such, the young people have had no experience of co-existence, communal harmony, and the historical diversity that was the pride of the region and what is today referred as Kashmiriyat. The current environment of social apathy, decadent values, divisive polity, anger and aggressiveness is slowly poisoning young minds and this ends up in a vicious cycle of ignorance, violence, anger, hatred, despair and response that impacts relationships, both politically and socially.

In conflict situations education plays an important role in peace building. It can play a very constructive role in development of peace building perspective and thereby promoting socio-economic development and prevention of recurring violence. Educating young people about the virtues of peace would mean covering those aspects of daily life which are deeply connected to ones identity. It is vital for transforming the culture of violence into a situation where hatred isn’t allowed to subdue amity.

Peace building is more of a permanent transformational agenda than short term measure taken to overcome the conflict ridden situation. Therefore, reconstructing education in Kashmir should be given highest priority.The effort should be directed towards opening the minds of the youth that are completely closed to new thoughts and solutions. A restructured educational initiative will open a new window and give the space to discuss ideas, express honest opinions, learning to solve problems and maintaining a positive outlook.

As the issue of bringing peace through educational interventions in conflict zones is not the focus of any single agency or organization, it requires the contribution of all actors. Education should not remain the responsibility of the institutions alone! Internal actors are the ones who have in some way personally experienced conflict and lived with its consequences.

Therefore, in a conflict zone like Kashmir it is ultimately the internal actors who can play an integral role in building peace and rebuilding normalcy. All community specialists, including lawyers, economists, scholars, educators, and teachers must be involved in contributing their expertise to help create awareness among the youth and carry out peace building efforts.

An appropriate approach to building peace is to put together a solid structure of relationships with the intervention of key political leaders, military officers and religious leaders. It is believed that the greatest resource for sustaining peace in the long term is always rooted in the local people and their culture. Building on cultural resources and utilising local mechanisms for handling disputes can be quite effective in resolving conflicts and transforming relationships.

The youth, on their part, are required to take a lead as they constitute a new hope for the society. In my personal interaction with youth of Kashmir, I have found them to be very vibrant and full of new ideas, very hardworking and dedicated towards their goals. Though they are very upset with the system but they must never forget that where there is a will there is always a way. They have potential to bring a very positive change in the society. So the young and intelligent youth must take the charge of initiating education and peace building programs to make a positive impact on conflict resolution dynamics.Peace-building measures must target all aspects of the state structure and get a wide variety of agents for implementation. An all encompassing approach that is locally driven and designed to change the education and information spectrum will pay handsome dividends towards ushering peace and amity in Kashmir.

Farooq Wani is a Kashmir senior journalist , columnist and political commentator

What Is The Future Of Malhama Tactical? – Analysis

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By Uran Botobekov*

Perhaps no single Salafi-Jihadi groups from Central Asia deserved such close attention of Western media like an Islamist private military contractor (PMC) Malhama Tactical (MT), that founded by a jihadist from southern Kyrgyzstan and training militants in Syria.This was possible thanks to the creativity and active self-promotion of the head of this small consulting firm on the Internet, which has managed to attract the attention of many Western journalists and researchers on Islamic radicalism.

The authoritative Foreign Policy called MTthe world’s first jihadi consortium of elite, well-paid fighters from across the former Soviet Union and compared its activities with the infamous Blackwater USA (now named Academi).BBC Monitoring published a series of analytical articles entitled How Malhama Tactical became the ‘Blackwater of the Syrian jihad’ in December 2018.The Independent, CSAF,the American Partisan, The Daily Caller, MEMRI and others also described MTas a successful jihadist training organization that supposedly changed the course of the Syrian war.My colleagues in the study of Salafi Jihadism Pieter Van Ostaeyen and Neil Hauer even interviewed the MT’s commander in November 2018.

The main disadvantage of all these articles is the lack of critical thinking regarding MT.Western analysts relied on videos, interviews and statements of MT’s leaders published on the Internet as advertising.As a result, the MT’s tactical role in the Syrian war is undeservedly overestimated since the boast of its leaders is taken at face value.

About MT more detailed facts cited the Russian Telegram channel Directorate 4, which is associated with the Russian special services.But the main problem of Russian researchers is that it is difficult to determine the edges of analysis and propaganda, which in some places is accompanied by rude insults to the MT’s leader.

The mysterious name of Al-Malhamah Al-Kubra

One should recognize the creative thinking of the Uzbek young man Abu Rofiq, who gave his organization the mysterious name “Malhama Tactical”, which was immediately noticed by the sponsors of the Salafi movement in the Islamic world. According to the Hadith, the al-Malhamah Al-Kubra means the great battle, bloody fights, massacres and the conquest of Constantinople by Muslims from the Romans.

Abu Rofiq likes to create a halo of mystery around his person and his organization. Western media have created his image like the fearless Rambo and a former officer of the elite of the Russian Airborne Forces, who from the inside knows the secrets of the Russian military-training science. On Facebook Abu Rofiq at one time positioned himself as a former sniper of the Russian elite Special Forces GRU whose staff was involved in the poisoning of former Russian intelligence officer Skripal in British Salisbury and in the interference of the 2016 US elections.

But our analysis showed that some of the statements of Abu Rofiq were not true.All his biographical data, family ties and information about the military career are known to the authorities of Russia, Kyrgyzstan and Uzbekistan. The real name of Abu Rofiq is Sukhrob Baltabaev who was born in the Osh region of Kyrgyzstan on August 10, 1993.By the way, the leader of al Qaeda-linked Katibat al-Tawhid wal Jihad Abu Saloh is also from this region.

After completing school in 2010, he left as a labor migrant to Russia. The Russian authorities have documented that Sukhrob Baltabaev was called up for military service on May 14, 2012, by the Military Commissariat of Russia’s Tatarstan.He began serving in the 45th Guards Separate Special Purpose Intelligence Regiment of the Airborne Forces in the Moscow Region.However, due to the disease of an intervertebral hernia, he was discharged from the Russian army.

Hijrah to Sham not for the purpose of Jihad but for making money

According to Russian sources, after an unsuccessful military career, Sukhrob Baltabaev returned from Moscow to Kazan and worked as a computer programmer at the firm Potok.In those years that ISIS and al Qaeda began actively recruiting Central Asian migrants working in Russia to Syria and Iraq.Having fallen under the influence of the ideologists of Wahhabism, in February 2014, he left for Syria and joined the Jamaat of Chechen militants Shishani.A young wife from Osh and a son Muhammadrofiq remained at home.

At the end of 2015, he created MT with several friends from Central Asia, who began to train on a commercial basis both local and foreign militants in Syria fighting against the regime of Bashar al-Assad.The exact number of the group’s members is unknown but it is thought to consist of 10-15 fighters, all originating from former USSR states.Knowledge of computer technology, creative advertising campaign and ability to find a common language with the leaders of jihadist jamaats helped him in developing this business.MT has become popular due to the wide use of social networks such as YouTube, Facebook, VK, Twitter and Telegram, where he began to publish examples of military training under the pseudonym Abu Rofiq and offer his services for money.

In Central Asia, there is a saying that “Uzbeks know how to make money out of thin air.” There is even a joke about when the American astronaut Neil Armstrong first landed on the moon, he met there Uzbek who trading in the Lunar Bazaar. In the genes of the peoples of Central Asia, where the Great Silk Road lay, historically there is the ability to trade. The natural flair did not fail Abu Rofiq: he found a unique opportunity to make money from the Syrian war.

The company has been working with the al Qaeda-affiliated Hayat Tahrir al-Sham, Ajnad al Kavkaz, Jaysh Muhajirin wal-Ansar,and other groups, even Ahrar as-Sham .I am not a military specialist and cannot assess the quality of MT’s tactical trainees on the use of various types of weapons and fighting in urban combat. But MT’s instructors use popular Russian-made 7.62 mm machine gun, US-made modern sniper rifles, helmets with night vision goggles and the expensive military equipment that the armies of Central Asia cannot afford. The other equipment shown in the videos, like the first-aid kit, is also of high quality, used often in US army and its allies.

Malhama produces equipment for other jihadi groups, manufactures accessories for the PKM, vests and grips, widely used in Syria. This means that MT’s business is doing well and its leader has enough connections somewhere to guarantee himself a supply line of such type. The MT leader actively used the online crowdfunding urging sympathizers to donate money to continue Jihad and training the Mujahedeen. At the same time, currencies of all countries were accepted, even bitcoin, QIWI and Yandex. Money electronic transfers.

Russian hunt for the leader Malhama

With the acquisition of fame and the growth in the number of clients, the real hunt started for the MT leader from the Russian special services, the Assad regime and ISIS.The MT leader considers Moscow and Damascus enemies of Islam who destroy peaceful Muslims in Syria. Moscow has special claims to the MT leader. As shown the attempt to kill former KGB agent Skripal in the UK, Putin will pursue his military, who have betrayed the oath. Despite Moscow’s refusal, Sukhrob Baltabaev is a former military of the Russian Army.

In addition, he inflicts sensitive blows to Russia. In a recent interview, the MT’s head stated that the Mujahideen Hayat Tahrir al-Sham, who had been trained by Malhama, had made an attack in Tarabiya, Northern Hama, and killed four high-ranking Syrian officers and seven Russians on November 10, 2018.ANNA-News Agency confirmed this information.

MT has also been vocal about its opposition to ISIS. On 20 June, Abu Salman posted on his Twitter account an anti-IS message saying: “We must kill them all, ISIS is evil and we have to do something to wipe them out”.

For security reasons, the MT leader appears in the media in masks, or with a scarf tied on his face. According to BBC, the first MT leader Abu Rofiq was killed in February 2017 in a Russian air strike in Idlib. After that Abu Salman Al-Belarusi on Twitter called himself a new MT commander who is Uzbek from Belarus and served as senior sergeant of the 103 Airborne Brigade of the Belarusian Army in Vitebsk. But the Belarusian side did not confirm this information.

But according to the Russian media Abu Rofiq did not die.In order to mislead the Russian special services he spread false information about his death, and now he took the pseudonym Abu Salman Al-Belarusi. That is, Abu Rofiq and Abu Salman Al-Belarusiare one and the same person, that is, Sukhrob Baltabaev from Kyrgyzstan. After comparing the audio and video performances of Abu Rofiq and Abu Salman Al-Belarusi, we concluded that the voice belongs to the same person. The authorities of Russia and Central Asia have identified Sukhrob Baltabaev and continue to closely monitor his relatives.

Ideological views of Malhama Tactical

The ideological views of the MT leader contain the outfit’s mixture of Salafi ideology with the privatization of war because money plays an important role for him in his project. But he cannot be counted among the radical Wahhabis, who are ready to die as Shahid in the name of Allah. His various speeches showed that his level of knowledge of the Quran, Hadith, and Surah, the basics of Tawhid and Fiqh, is not very deep. Perhaps because of this, he avoids the Central Asian Salaf-Jihadi groups Katibat al-Tawhid wal Jihad, Katibat Imam al-Bukhari and Turkestan Islamic Party, who fight in Idlib. In ideological terms, he does not represent a big threat to Central Asia’s countries, because he is not able to conduct propaganda and recruiting campaigns. But he can be described as a jihadist who has close views with al Qaeda and performs his tactical tasks on technical training for jihadists.

Thus, MT was a new phenomenon in the Islamic world which has laid the foundation for the professionalization of Jihad. But without ideological doctrine, it is difficult to predict the continued “successful functioning” of the world’s first jihadi contractor. Therefore, it can be expected that the turbulent development of Jihadism and the fierce competition of terrorist groups will force MT to adopt the radical Salafi ideology and join a certain terrorist group. The history of radical Islamism has shown that the Wahhabi world will not accept those who do not have a deep ideological doctrine of Jihad.In the future, we can expect that the radical principles of Jihadism will force MT to go beyond earning money. MT is already gradually abandoning the concept of money.

*About the author: Uran Botobekov, Doctor of Political Science (PhD), expert on Political Islam

Source: This article was published by Modern Diplomacy

Leaving Syria – Analysis

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By Adam Garfinkle*

(FPRI) — “History is irony in motion,” wrote E.M. Cioran in his 1949 book A History of Decay. So could the seemingly unanimous verdict of the chatterati and the professional staffs of both the Departments of State and Defense that President Trump’s abrupt decision to pull U.S. military forces from Syria is a mistake be itself a mistake? It it possible, in other words, that President Trump’s decision to remove U.S. forces from Syria will turn out to be a good idea, even if for reasons the President doesn’t understand and can’t possibly be responsible for anticipating?

Before attempting an answer, it is worth our while to review very briefly the arguments made by the distributed system of groupthink that we have witnessed over the past few days.

Chatterati Groupthink

The main argument is that it is a mistake to think that ISIS has been defeated just because the last town that it held has been liberated. Yesterday’s New York Times made a pretty big deal, on the front page above the fold, of analogizing Trump’s declaration of victory with Obama’s decision to remove troops prematurely from Iraq. There was no mention there of George W. Bush’s famous “Mission Accomplished” disaster; one supposes that this is a dot much too old to bother connecting in these days of national technology-induced memory disorder.

An even older dot makes the same general point: The United States essentially scuttled its army in Europe after the end of World War II, only to have to reinsert very substantial military force into Europe soon thereafter. This is what Americans do, with their very stark Manichean black-and-white way of thinking about war and peace: It is either one or the other, and can never be shades of both at the same time. We don’t do nuance, because nuance has no place in a passion play—which our faith-based way of thinking about foreign policy infuses into every common-man narrative. And Donald Trump epitomizes the common mind, at least in this sense.

No, of course ISIS is not sustainably defeated. Estimates run from about 12,000 to 14,000 fighters and supporters on the ground in Syria and Iraq. Losing its territorial dimension certainly hurts ISIS in terms of reputation and recruiting capability. It also lost a lot of people. But it is capable of recouping territory in a relative vacuum at least temporarily by using swarm techniques, and it is certainly capable of wreaking terrorist havoc all through the Middle East and Europe. Doctors tell you to take all of the antibiotics in a prescription even if you’re feeling better, and they’re right. The same thing applies to rooting out terrorist organizations: You have to finish the medicine, in this case dishing it out instead of taking it yourself.

The second argument is that leaving Syria creates a situation in which Iran and Russia will dominate the political and the military realities of the place, respectively. The argument goes that we have to have “skin in the game,” in the form of military power, in order to gain a place at the table when it comes time to think about a political settlement to the civil war. Beyond that, if the White House means what it says about getting tough with Iran, then leaving the playing field clearly contradicts that objective. The same goes in a slightly different, less direct, way with Russia. If we want to deter the Russians from further mucking about in Eastern Europe, we don’t contribute to that effort by buckling at the knees in the Levant.

But of course contradiction is one of the things that this President does best. On Wednesday he tweeted that we had won in Syria: ISIS is defeated. Less than 24 hours later he tweeted that the Russians, Iranians, and Syrians were upset by his decision because now they would have to fight against ISIS without us. Even a nine-year-old can detect the surreality in this pair of remarks. But of course a narcissist with the attention span of a ferret on speed can’t.

The third argument of the common wisdom is that the decision to leave Syria jeopardizes Israeli equities, and also those of Jordan and Lebanon—all three countries being affected by the centrifugal collateral damage of the civil war. Great powers are basically in the protection business. A slightly less crude way to put it is that local allies are reassured to know that a great power patron has their back in case their security liabilities grow beyond their capacity to manage them. That reassurance frees them to take useful risks than can redound to the advantage of the greater power. The absence of that reassurance does not necessarily mitigate any risk-taking; it can just as easily result in their taking excessive or foolish risks in the panic-driven interest of self-help (think the origins of recent Saudi policy in Yemen). These non-kinetic elements of alliance relationships go far to define how they actually work, but these elements are matters of nuance, and this very American President doesn’t do nuance. He does not understand the concept of non-zero sum relationships, of which alliances are a prime example.

The fourth argument is less a directly strategic one then a moral one, namely that leaving creates a massive vulnerability for the Kurdish allies who have helped destroy ISIS on the ground. It seems improbable, but the fact is that just 2,000 U.S. ground forces have managed, along with the Kurds and, of course, a formidable canopy of U.S. air power, to control about 40 percent of Syrian territory. That 40 percent is sparsely populated, true, but a look at a map shows that it is not of trivial strategic significance. It is not yet clear if the air power canopy will be withdrawn along with the 2,000 troops, but if it is, then the Syrian Kurdish militias will likely be toast before any onslaught of Turkish military power.

If that happens, it ought to be about as surprising to Kurds as wind damage in a storm. All sentient adult Kurds know that in 1975 and then again in 1991 U.S. policy betrayed Kurdish allies. There were even a few minor episodes of betrayal in between these two major ones. Why any Kurdish patriot should ever again trust a promise made by an American government I cannot imagine.

Those are the four major arguments as to why President Trump’s decision is a mistake. A few other common observations decorate these arguments, however. One is that the decision suggests the waning of Defense Secretary Mattis’s influence over the White House. That suspicion has been quickly validated by Mattis’s letter of resignation. Chatterati groupthink doesn’t like that; no sentient person should like that. But it also suggests the ultimate inability of National Security Advisor John Bolton to control the President’s judgment on key foreign policy issues. Chatterati groupthink can’t make up its mind what it thinks about that. It has admired Mattis but disparaged Bolton. But now that Mattis is leaving, it is this latter matter that may be the most frightening. It’s come down to that.

The other decorative observation is that what has happened shows the almost complete lack of a coherent policy process in the foreign policy domain of this Administration. Now, we like to think that policy outcomes are likely to be improved when the process that produces decisions enhances rationality and deliberation. And that’s generally true. But sometimes the system works and the policy fails anyway—that being the theme of the justly famous book by Richard Betts and Les Gelb on The Irony of Vietnam. And sometimes the system fails and the policy succeeds anyway. That can be because the President actually knows better than the blob-like bureaucracy, the abiding assumption of President Obama. Or it can be more like a Mr. Magoo episode: For example, President Trump’s trade war against China almost certainly did not include an intention to shift supply chains away from China; but that is one of the policy’s side effects so far, and it is both a non-trivial and, in general, a good thing.

Either way, there is no question that the decision-making process in the Trump Administration remains anything but tightly wrapped, at least most of the time. There were no reported NSC Principal Committee meetings between April and July, and PC meetings since July have been few. And those followed a highly unusual written complaint by the Secretary of Defense that NSA Bolton’s cards-close-to-chest methods were staggering the government with self-inflicted opacity. Allies didn’t know what the policy was because most members of the Administration, even at senior levels, didn’t know what it was either.

Alas, not much has changed, except that this time it appears that even Bolton has had to wear the blindfold and earplugs. The President has once again exhibited the monkey-in-the-machine-room phenomenon, which I predicted even before the Inauguration (see https://www.the-american-interest.com/2017/12/31/that-was-the-sad-year-that-was/).

This particular antic has been a bit less surprising than most others, for the simple reason that the President sought to withdraw U.S. forces from Syria a few months ago, only apparently to be talked out of it by his senior advisers. That has probably contributed to the tight character of the groupthink this time around, simply because everyone remembers the earlier incident and so is well rehearsed for its second coming.

But Is It True?

Is the almost universal condemnation of the President’s decision justified? Without even trying to be witty, Dean Acheson once said that “things are not always as they seem, but sometimes they are.” This is probably one of those occasions when they are.

I tend to credit the critique; I can hardly do otherwise, since I have made all these arguments and kindred others besides for nearly the past seven years as regards Syria. I argued during the first year of the civil war that benign neglect was going to be anything but benign. I urged consideration of using U.S. military power to influence battlefield dynamics at certain pregnant points in the fight, and of coordinating the use of Turkish power to similar ends. I made as clear as possible my view that Iran was a bigger and longer-term problem than ISIS, and that Iranian-driven sectarian-motivated ambition was the catalyst for the rise of ISIS in the face of the passivity and fecklessness of the Sunni Arab states. Obvious conclusion: If we want to get rid of ISIS we must treat the source of its origin—Iranian policy as manifested in the Syrian cauldron.

So when President Trump claims that U.S. troops were in the region just to fight ISIS, and not to “play” on the slippery slopes of Syria’s militarized misery, he is repeating the body language if not the exact words of the Obama Administration. But this was always a delusion. One cannot affect the position of a shadow by doing things to the shadow, and ISIS was and remains the shadow of the core reality in Syria, which is a Shi’a sectarian onslaught against the majority civilian Sunni population of the Levant, and which in Syria has taken on characteristics of migratory genocide. ISIS or likeminded successors cannot be sustainably defeated or prevented unless and until their raison d’être is removed.

If one were to judge merely from the evidence before us, the Trump Administration acknowledges the severity of the Iranian threat, but seems to think that it can handle it best by means of economic sanctions. This is reminiscent of the Democratic fantasy after August 1990 that the best way to get the Iraqi army out of Kuwait was to “let sanctions work.” Kuwait would today be the 19th province of Iraq had that advice been taken. Trump doesn’t think that the pen is mightier than the sword, as Edward Bulwer-Lytton put it in his 1839 play Richelieu: Or the Conspiracy, but that the trade dollar is mightier than the sword. (Ha, and you thought mercantilist thinking went the way of the dodo centuries ago.) Sanctions will not moderate Iranian foreign policy in the region unless a sanctions regime becomes regime threatening, and sanctions cannot bite that hard even were U.S. relations with its allies much better than they are now. Trump’s misalignment of policy intentions with policy means reminds us of the Obama Administration’s presumption that it could demand that Assad “step aside” and thus position itself on the “right side of history” without having to do anything to operationalize its demand. And both postures remind of Walter Lippmann’s maxim that if you will the end you must will the means—and his warning about what happens when you don’t.

The removal of U.S. troops from Syria, especially if the air canopy is removed with them, will encourage the Syrian and Iranian regimes in their murderous ways, and it will tell the Russian government all it needs to know about U.S. verve generally. It will indeed discomfit the Israelis some, the Jordanians more, and although Lebanon does not share a partnership relations with the United States as do Israel and Jordan, it will smother longer-term hope of freeing its political system from the plague of Hezbollah. It might even deflate the hopes of Iraqi Sunnis, as well, who have looked upon all residual U.S. military presence in the region as a token of a commitment not to let the Shi’a-dominated government in Baghdad run amok with sectarian hubris.

All that granted, the common wisdom has its flaws, exaggerations, and omissions. First, a flaw.

If “skin in the game” means an ante that gets the U.S. government a seat at the table in some future negotiation over post-Assad Syria, then 2,000 soldiers parked out in the middle of the desert east of the Euphrates is not a remotely serious number. Worse, the assumption that there eventually has to be a negotiation of that sort is simply wrong. The Syrian regime, with its Russian and Iranian allies, means to win the war, not discuss it with its adversaries. Its notion of a negotiation is a diktat following a surrender. Anyone who doesn’t get that by now really ought to be opining on less Hobbesian matters, like Brexit and other such ennui-inducing subjects.

Second, an exaggeration. The presumption that just 2,000 U.S. soldiers amount to “skin in the game” in any actual military sense is a vast exaggeration. The earlier posture, that U.S. soldiers would not leave Syria until other foreign forces, including pointedly Iranian al-Quds units and Iranian-supported Shi’a militias imported from other countries, also left was something of a bluff. Just 2,000 troops have worked to secure a sparsely populated corner of Syria in partnership with Syrian Kurdish forces, but no one ever explained how such a small force was supposed to leverage other foreign forces out of the country in places where Kurdish power is much less relevant. A force of that size can work well militarily in a limited area for limited purposes, and it can be a symbol of a potentially larger commitment. But otherwise it is a number suitable only for taking shock casualties, not for fighting serious forces or coercing them into doing things their masters do not wish them to do.

And third, an omission: The conventional wisdom sharply discounts the implications of a clash between U.S. and Turkish military forces.

It could well be that when the full background to the President’s decision emerges, private discussions between United States and Turkey will be seen to have played a large role in the outcome. It has been no secret that the Turkish government has been planning an incursion into the Kurdish sections of Syria. That would have placed U.S. troops squarely between an enmity composed of two allies: a NATO ally and a non-state ally of convenience.

Now, there are those who believe that the U.S.-Turkish bilateral relationship is essentially dead and gone for all practical purposes, so that there would be rather a little left to lose even should U.S. and Turkish troops start shooting at each other. This is a very shortsighted attitude. It is never a good idea to equate a person with a nation, or a bilateral relationship dominated by a personality with the longer-term benefits and quality of that relationship. Recep Tayyip Erdoğan will one day pass the way of all mortals—God be praised. And then things will look different.

That does not mean that Turkish politics will return to the Kemalist Six Arrows norm of the pre-AK Party era, for Turkish society has changed. Specifically, a large chunk of Turkish society has entered the maw of modernity, which, contrary to the flawed imagination of Western modernization theorists of the century past, has made the society as a whole less secular if objectively more pluralist and even modular. But what comes after Erdoğan will offer an opportunity for the natural coincidence of geostrategic interests between Turkey and the United States to reassert itself. It would therefore be very foolish to dismiss the longer-term legacy of a military dustup in northeastern Syria.

Inherited Mistakes

And that brings us to a point that has largely been overlooked in the commentary of recent days: The context that has given rise to the decision point under discussion formed during the Obama Administration. Specifically, the Obama Administration made three key mistakes that shaped the problem that President Trump’s decision presumably hopes to solve. Let’s take them in turn.

First, as already noted, the idea that it was possible to fight ISIS successfully without really tackling the mess in Syria was delusional. When the U.S. military begin to bomb ISIS after the telegenic beheading of two American journalists, the question was, “where is the strategy that tells us what this bombing is supposed to achieve?” We never got an answer. And in the absence of a strategy that made sense for the actual problem set, properly defined, it seemed to me that the bombing could turn out to be counterproductive.

It was always difficult for Americans to understand how the members of ISIS understood what was happening at the time, because Americans have difficulty in general crediting the genuine otherness of the other. But let’s just start with some facts.

When the U.S. bombing began, ISIS had not attacked the United States, nor had it threatened to do so. It not unnaturally assumed that the two journalists it had captured inside its territory of control were spies. That is how tribal people with a keen sense of in-group/out-group distinctions tend to think. From their point of view, a foreign tribe with no interests or claim in the territory under dispute then attacked it from afar without provocation. ISIS leaders did not comprehend how the execution of two spies, amid so very many executions for various and sundry reasons, could possibly justify the aggression of the greatest military power on earth against them. So they reasoned that somehow the United States (and Israel) had to be secretly in league with their Shi’a enemies.

We will never know for sure, but the U.S. bombing, which began on September 22, 2014, probably helped ISIS by stimulating recruitment and burnishing its image in the Sunni world as a noble fighting force against American imperialism. My own sense at the time was that the decision was a rushed one designed mainly to respond politically to the two highly telegenic beheadings. Since no actual coherent strategic rationale for the bombing ever emerged, my initial impression has not changed.

Second, an earlier error, already mentioned as well, set the stage for the one just described: the decision to avoid any engagement in the Syrian civil war. Maybe one day archives and memoirs will clear up the matter, but in my view the decision not to engage turned on three interrelated factors: the belief that Assad would fall anyway; the centrality of normalizing relations with Iran via a nuclear deal, which in the President’s mind obviated any pressure against the Assad regime; and the view that the revolt against Assad was a bad thing that should not be encouraged. This latter factor deserves a bit of elaboration.

The President and other White House decision-makers worried during late 2011 and into 2012 that any arms supplied to the Free Syrian Army might end up in the hands of terrorists. They were transfixed by the supposed mistake of having given arms to the mujahedin in Afghanistan, the supposed origin of al-Qaeda (alas, not true). They also worried that giving support would eventually pull the United States into a combat role, and here the historical analogy was Vietnam—the President’s seminal experience. And getting involved in another Middle Eastern war was the last thing that Barack Obama wanted to do. At the time, remember, he was already smarting from the decision to go to war in Libya in March 2011, which he made most reluctantly and which had not proceeded as cleanly or as quickly as he had been led to expect.

It was in that context that the FSA rebellion against the Assad regime posed a problem: If it seemed to hold the promise of overthrowing Assad, pressure would build for the Administration to help it, which it did not really want to do. Some also predicted that a robust rebellion would end up drawing more Iranian and Russian power and influence into Syria, as in fact happened. There was besides a higher-order question: Were any vital American interests involved in the political future of Syria, and if not, why risk involvement in an open-ended escalation?

So the Administration pretended to help the FSA with a Potemkin Village-like training program that ended up qualifying only a tiny number of soldiers for a huge amount of money. The brass ring it cared about was bringing the Iranian regime “in from the cold,” and any Syria involvement was viewed as running contrary to that aim.

Some Administration policymakers believed, too, that if the U.S. government did not encourage the rebellion, it would not congeal. But they radically underestimated the power of the Assad regime’s murderous ways to spark the rebellion no matter what the U.S. government did, and hence they underestimated the likelihood of that rebellion’s Islamist radicalization over time. Had the Administration aided the rebellion robustly early on, it stood a chance of making it successful and of heading off radicalization over a protracted period.

Granted, any decision with respect to Syria was bound to be very hard. Nevertheless, the Obama White House underestimated what the cost of passivity was likely to be. The longer the war went on the more likely that it would militarize the country’s sectarian makeup beyond hope of reconciliation, radicalize the opposition, draw in external parties, and lead to mass murder on a scale not seen since World War II. All of this was predicted at the time inside and outside of government (not that it matters, but even by me). But the President did not credit the analysis.

The third error, the one key to the present moment, was to rely on a proxy militia to deal with ISIS after it had become clear that air power alone would be unable to do the job. One option was to try to organize the key Sunni Arab states to do the ground fighting by establishing an expeditionary force from their regular armies. There is no evidence that this option was ever seriously considered; instead, the Saudis and the Emiratis elected instead to fight a war to their west, in Yemen, which instead of meeting and deterring Iranian power in Yemen only encouraged and attracted more of it. The best option would have been to use the U.S. military itself.

Consider that the order of battle in the Syrian civil war at every level may be fairly described as unimpressive, certainly in comparison to what the U.S. military can do. We are talking about relatively small numbers of soldiers with relatively ineffectual equipment and substandard training. Quite possibly the LAPD, suitably armed and motivated, could have taken care of the Islamic State, such as it was. For U.S. Army Rangers or Marines the task would have been fairly easy. It would also have been quick, and arguably that might have headed off a number of ISIS terrorist attacks in Europe. Had U.S. ground forces been used, and Kurdish militias relegated to a minor rear-echelon role, we would not have faced the dilemma of having to choose between two allies. But President Obama elected a “cheap hawk” option, to borrow a term from Newt Gingrich, and cheap hawkery usually delivers the worst of all worlds: a reputation for cowardice combined with a less-than-satisfying battlefield outcome.

When a Decision is Not a Decision

Last I heard, both the State Department and the Pentagon still hold out hope of either slow-rolling or reversing the President’s decision. After all, that worked a few months ago. And as already indicated, we don’t know if the withdrawal order includes the air canopy. If it does, our Kurdish allies are toast. If it doesn’t, then the prospect of a U.S.-Turkish clash remains, just not a clash on the ground. So some salient uncertainties remain at this early point in the drama.

My guess is that President Trump’s main motive is political, as with virtually all of the foreign policy decisions he makes. He wants to boast that he defeated the terrorists, and he wants to play to the deeply isolationist impulse among his core base by “bringing home the troops.” Next in that regard, we have just gotten word, is Afghanistan. George McGovern would be proud, and mistaken. But of course he would also be disgusted, and correct.

We like to say in situations like this that “what’s done is done.” But in this Administration what’s done isn’t necessarily done. It’s usually just half-baked, and sometimes it’s altogether raw. We cannot rule out, as well, the possibility of burnt to a crisp. I suppose we’re bound to find out what’s really on this particular menu—crow or champagne. Don’t touch that dial.

*About the author: Adam Garfinkle is the Founding Editor of the The American Interest and a Senior Fellow at the Foreign Policy Research Institute.

Source: This article was published by FPRI


The Depression Of 2019-2021? – Analysis

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By Brendan Brown*

The profound question which transcends all this day-to-day market drama over the holidays is the nature of the economic slowdown now occurring globally. This slowdown can be seen both inside and outside the US. In reviewing the laboratory of history — especially those experiments featuring severe asset inflation, unaccompanied by high official estimates of consumer price inflation — three possible “echoes” deserve attention in coming weeks and months. (History echoes rather than repeats!)

Will We Learn from History — And What Will Soon Be History?

The behavioral finance theorists tell us that which echo sounds and which outcome occurs is more obvious in hindsight than to anyone in real time. As Daniel Kahneman writes (in Thinking Fast and Slow):

The core of hindsight bias is that we believe we understand the past, which implies the future should also be knowable; but in fact we understand the past less than we believe we do – compelling narratives foster an illusion of inevitability; but no such story can include the myriad of events that would have caused a different outcome .

Whichever historical echo turns out to be loudest as the Great Monetary Inflation of 2011-18 enters its late dangerous phase.  Whether we’re looking at 1927-9, 1930-3, or 1937-8, the story will seem obvious in retrospect, at least according to skilled narrators. There may be competing narratives about these events — even decades into the future, just as there still are today about each of the above mentioned episodes. Even today, the Austrian School, the Keynesians, and the monetarists, all tell very different historical narratives and the weight of evidence has not knocked out any of these competitors in the popular imagination.

The Stories We Tell Ourselves Are Important

And while on the subject of behavioral finance’s perspectives on potential historical echoes and actual market outcomes, we should consider Robert Shiller’s insights into story-telling (in “Irrational Exuberance”):

Speculative feedback loops that are in effect naturally occurring Ponzi schemes do arise from time to time without the contrivance of a fraudulent manager. Even if there is no manipulator fabricating false stories and deliberately deceiving investors in the aggregate stock market, tales about the market are everywhere….. The path of a naturally occurring Ponzi scheme – if we may call speculative bubbles that – will be more irregular and less dramatic since there is no direct manipulation but the path may sometimes resemble that of a Ponzi scheme when it is supported by naturally occurring stories.

Bottom line: great asset inflations (although the term “inflation” remains foreign to Shiller!) are populated by “naturally occurring Ponzi schemes,” with the most extreme and blatant including Dutch tulips, Tokyo golf clubs, Iceland credits, and Bitcoins; the less extreme but much more economically important episodes in recent history include financial equities in 2003-6 or the FANMGs in 2015-18; and perhaps the biggest in this cycle could yet be private equity.

Echoes of Past Crises

First, could 2019-21 feature a loud echo of 1926-8 (which in turn had echoes in 1987-9, 1998-9, and 2015-17)?

The characteristic of 1926-8 was a “Fed put” in the midst of an incipient cool-down of asset inflation (along with a growth cycle slowdown or even onset of mild recession) which succeeds apparently in igniting a fresh economic rebound and extension/intensification of asset inflation for a while longer (two years or more). In mid-1927 New York Fed Governor Benjamin Strong administered his coup de whiskey to the stock market (and to the German loan boom), notwithstanding the protest of Reichsbank President Schacht).

The conditions for such a Fed put to be successful include a still strong current of speculative story telling (the narratives have not yet become tired or even sick); the mal-investment and other forms of over-spending (including types of consumption) must not be on such a huge scale as already going into reverse; and the camouflage of leverage — so much a component of “natural Ponzi schemes” — must not yet be broken. The magicians, otherwise called “financial engineers” still hold power over market attention.

Most plausibly we have passed the stage in this cycle where such a further kiss of life could be given to asset inflation. And so we move on to the second possible echo: could this be 1937-8?

There are some similarities in background. Several years of massive QE under the Roosevelt Administration (1934-6) (not called such and due ostensibly to the monetization of massive gold inflows to the US) culminated in a stock market and commodity market bubble in 1936, to which the Fed responded by effecting a tiny rise in interest rates while clawing back QE. Under huge political pressure the Fed reversed these measures in early 1937; a weakening stock market seems to reverse. But then came the Crash of late Summer and early Autumn 1937 and the confirmed onset of the Roosevelt recession (roughly mid-1937 to mid-1938). This was even more severe than the 1929-30 downturn. But then there was a rapid re-bound.

On further consideration, there are grounds for skepticism about whether the 1937-8 episode will echo loudly in the near future.

In 1937 there had been barely three years of economic expansion. Credit bubbles and investment spending bubbles (mal-investment) were hardly to be seen. And the monetary inflation in the US was independent and very different from monetary conditions in Europe, where in fact the parallel economic downturn was very mild if even present. And of course the re-bound had much to do with military re-armament.

It is troubling that the third possible echo — that of the Great Depression of 1930-2 — could be the most likely to occur.

The Great Depression from a US perspective was two back-to-back recessions; first the severe recession of autumn 1929 to mid-1931; and then the immediate onset of an even more devastating downturn from summer 1931 to summer 1932 (then extended by the huge uncertainty related to the incoming Roosevelt Administration and its gold policy). It was the global credit meltdown — the unwinding of the credit bubble of the 1920s most importantly as regards the giant lending boom into Germany — which triggered that second recession and snuffed out a putative recovery in mid-1931.

It is possible to imagine such a two-stage process in the present instance.

Equity market tumble accompanies a pull-back of consumer and investment spending in coming quarters. The financial sector and credit quakes come later as collateral values plummet and exposures come into view. In the early 1930s the epicentre of the credit collapse was middle Europe (most of all Germany); today Europe would also be central, but we should also factor in Asia (and of course China in particular).

And there is much scenario-building around the topics of ugly political and geo-political developments that could add to the woes of the global downturn. Indeed profound shock developments are well within the normal range of probabilistic vision in the UK, France and Germany — a subject for another day. And such vision should also encompass China.

*About the author: Brendan Brown is the Head of Economic Research at Mitsubishi UFJ Securities International.

Source: This article was published by the MISES Institute

Wickremasinghe’s Reappointment As Sri Lanka PM Opens Door To The ‘Indo-Pacific’– Analysis

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By Kalinga Seneviratne

For the past two months Sri Lanka’s deeply divided political community has been fighting to protect democracy in one of the oldest democracies in Asia. One side wants a general election to elect a new parliament claiming the current one is corrupt and wants to divide the country. The other is fighting to evade going for a general election before it is due in mid-2020.

Interestingly the U.S. and its European allies have been openly supporting the latter – the camp that does not want an election. They claim this is to “restore” democracy in the country!

The latest political battle was precipitated on October 26, 2018 when President Maitripala Sirisena sacked his Prime Minister Ranil Wickremasinghe – after officially withdrawing his party from a ‘National Government’ formed in 2015 – and appointed his recent fierce rival but before that, a long-term fellow party ally and former president Mahinda Rajapakse as Prime Minister.

While the latter seems unable to muster the required simple majority in parliament, he dissolved the parliament and called for a general election on January 5 which Rajapkse and his allies were favoured to win comfortablly.

Wickremasinghe and his allies went to the Supreme Court challenging the dissolution of parliament citing the 19th amendment to the constitution – which they have passed – restricting the president of doing so until a parliament has served four and a half years. The current parliament was elected in July 2015.

The president cited another clause in the constitution that allows him to dissolve parliament if the country is facing a political deadlock or chaos. The Supreme Court in an unanimous decision given on December 13 agreed with the petitioners that made the president to backtrack and reinstall Wickremeasinghe as PM, though it was not a requirement in the judgment.

Throughout the almost eight weeks of political dispute the U.S., some EU and Australian ambassadors were blatantly fraying the 1961 Vienna Convention on Diplomatic Relations by making public statements on domestic politics, even issuing veiled threats of sanctions and being present in the parliamentary gallery when the speaker Karu Jayasuriya controversially accepted a no-confidence motion on the newly elected PM Rajapakse.

A local TV channel broadcast images of the ambassadors cheering when the vote count – in favour of Wickremasinghe – was announced by the speaker.

“Having ‘invested’ heavily in Sri Lanka to install an administration (in 2015) free of Chinese influence, the U.S. reacted angrily to President Sirisena’s October 26 move” noted the Island’s news editor Shamindra Ferdinando. “The U.S. along with its allies strongly opposed Rajapaksa’s reappointment as Premier. A section of the Colombo based diplomatic community openly sided with the UNP (Wickremasinghe’s party) led grouping in its battle both in and outside parliament”.

During the dispute the Wickemasinghe allies also played to the western gallery. When the parliament reconvened after the Rajapakse appointment, rather than following the normal parliamentary procedures of allowing the new government to make its policy statement and present its accounts, the speaker accepted a no-confidence motion presented by the Tamil National Alliance (TNA) and supported by UNP. He immediately put it to a vote garnering a narrow majority, while MPs supportive of Rajapakse pointed out that certain parliamentary procedures were not followed.

When they moved such a no-confidence motion against Wickremasinghe earlier this year, it took the speaker a month to present it to parliament because he had to send it through a number of parliamentary committees.

When the President refused to accept this vote, the speaker called for another vote and came to parliament with police escort – to protect himself from hostile MPs from the Rajapakse camp – which ended up in an ugly clash in parliament, with images flashed across the world.

Jayasuriya’s actions were cleverly choreographed by the UNP camp to provide ammunition to the western media to paint Rajapakse as an “illegal” PM and that democracy is threatened in Sri Lanka. Because of the strong tilt towards China during the Rajapakse presidency, most sections of the western media are hostile to him.

Colombo’s middle-class that is pro-UNP came to the streets to demonstrate for “restoration of democracy” – in fact they were demonstrating against the holding of a general election because the president has already announced an election for January 2019. 

However, they achieved their aims by providing western media with images to painting Rajapakse as an “illegitimate” PM in the eyes of the international community, and helped to reinstate Wickremasinghe.

“Karu (Jayasuriya) created the parliamentary crisis mainly for external consumption. He wanted to keep Ranil (Wickremasinghe) in Temple Trees (PM’s official residence),” argued former Rajapakse regime senior minster DEW Gunasekare in an interview on local TV, adding that it helped to create international headlines that Wickremasinghe is PM.

If Jayasuriya allowed the usual parliamentary procedures to take place and Rajapakse government’s  interim budget was voted out by parliament, Sirisena would have got the legal authority to dissolve parliament and call a general election. This was thwarted by the speaker, who did not practice the neutrality that is required in the post.

After Sirisena took the decision to reluctantly reappoint his former ally Wickremasinghe to the PM’s post after the court verdict, immediately after the swearing in, he summoned all the senior members of the UNP to a roundtable and gave an unprecedented shelling to Wickremasinghe claiming that he has corrupt people in his Cabinet that was supposed to promote good governance (as they promised to the people in 2015). His 30-minute talk was video taped and released on YouTube by the presidential secretariat that has gone viral. It was also broadcast by some TV stations.

“Mahinda Rajapkse was voted out in 2015 because of a perception of corruption in his government, but within 3 months you were involved in the Central Bank scam that destroyed the trust people put on us,” Sirisena said, claiming that over 1000 billion rupees (about USD 5 billion) have been robbed.

Attempts to trace the money have been unsuccessful because officials assigned to investigate were harassed by Wickremasinghe’s allies accusing them of tapping into MPs and Ministers’ phones. The president accused Wickremsinghe of protecting his friend, the then Central Bank Governor Arjuna Mahendran.

“You went to court opposing election but there were peoples even within your party that believe an election is needed to stamp out this (corruption),” Sirisena said further. “We had an opportunity to get rid of this corrupt parliament and appoint a new (hopefully) clean parliament. This (court) judgment destroyed this opportunity… peopl says the courts took away their democratic rights, this is the view I get from people from all walks of life.”

“It would not be a smooth sailing for the UNP to run the Government under a President who is now even more hostile towards it,” warns Daily Mirror’s political analyst Kelum Bandara. He argues that with the UNP reduced to 106 seats, thus becoming a minority government, they will have to depend on the TNA to govern, whose demands for federalism and release of former LTTE cadres in jail on terrorism charges will be a sticking point.

“Giving into the demands put forward by the TNA will be an unpopular move in the Sinhala majority electorates of the country,” notes Bandara.

Sirisena made clear in his dressing down to the UNP MPs that he will not agree to any release of Tamil prisoners while soldiers who fought for the country to eliminate terrorism are in jail. The latter is due to the Sirisena-Wickremasinghe government caving into demands of the UN Human Rights Commission resolution that the government controversy co-sponsored in September 2015 on war crimes. Sirisena now claims that it was signed in Geneva without his knowledge.

Meanwhile, Ferdinando warned in a commentary published in the Island on December 19 that the U.S. is quickly moving in to strengthen its military cooperation with the Sri Lankan navy particularly to support their new Indo-Pacific strategy to contain China. In the first week of December, the U.S. Navy announced the setting up of what it calls a logistic hub in Sri Lanka to secure support, supplies and services at sea.

He points out that the U.S. Vice President Mike Pence, addressing a gathering at the top U.S. think tank Hudson Institute in early October has alleged: “Just ask Sri Lanka, which took on massive debt to let Chinese state companies build a port with questionable commercial value. Two years ago, that country could no longer afford its payments – so Beijing pressured Sri Lanka to deliver the new port directly into Chinese hands. It may soon become a forward military base for China’s growing blue water navy.”

But, Ferdinando notes that perhaps Pence was unaware or he simply ignored the fact that the Sri Lanka government has granted logistic hub status to the U.S. navy in August 2018. Rajapakse has warned in an address to his supporters on December 16 of the danger of Sri Lanka allowing U.S. navy access to the Trincomalee harbor in the east and getting entangled in super-power rivalry in the region.

Before the split, Sirisena and Wickremasinghe clashed over the latter’s plan to give U.S. ally in the Indo-Pacific venture – India – to form a public-private partnership to run a container terminal at Colombo Port, according to Fedinando.

U.S. has accused China of massively funding Rajapakse’s unsuccessful re-election campaign in 2015. Sirisena said in an interview with Daily Mirror last month that Rajapkse was unable to master the votes in parliament to survive a no-confidence motion because UNP MPs (who wanted to defect) were asking for sums as high as 500 million rupees to cross-over which Rajapakse could not afford.

This also should raise the question whether they were paid to remain with Wickremasinghe – even though many resent his dictatorial attitudes – and who provided the money?

Since 2015 and even before that, the U..S through USAID and other channels have spent millions in Sri Lanka funding non-governmental organization (NGOs) with projects such as ‘Strengthening Democratic Governance and Accountability’, ‘Coherent, Open, Responsive and Effective (CORE) Justice’ and  ‘Media Empowerment for a Democratic Sri Lanka (MEND)’.

Thus, with an election season looming in Sri Lanka through 2019 to 2020, it is interesting to note if these projects would be able to defeat Rajapakse (who has wide rural grassroots support) again with social media campaigns.

US Ambassador Alaina B. Teplitz welcoming Wickremasinghe’s reappointment  said that “Sri Lanka is a valued partner in the IndoPacific and we look forward to continuing to develop our relationship with the government and people of this country”. The Australian High Commission also stated that Australia welcomed the resolution of Sri Lanka’s political uncertainty “through constitutional means”.

With a hostile president co-existing with a minority government, many political analysts in Colombo predict continuing instability, infighting and clashes on policy between president and prime minister. How China responds to this regional issue is another crucial battle to watch. Throughout the dispute both regional powers India and China took a neutral stance and refrained from making any comments that will add fuel to the fire.

Iranian Researchers Build Robot For Dangerous Missions

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Iranian researchers at Amir Kabir University of Technology developed a new robot which can pass over obstacles and be used in dangerous relief and rescue missions.

The new silicon robot enjoys high flexibility to change its shape based on the environment to pass the rough terrain.

Its moving parts include the feet and body and the robot can be used for relief and rescue operations due to the soft materials that it is made of and its flexible arms.

The robot can surmount the obstacles and be used in operations dangerous to human life.

According to the Institute of Electrical and Electronics Engineers (IEEE), Iran’s manufacture of high-tech robots makes it one of the five countries in the world with the technology to make humanoid robots.

Recently, the Iranian researchers also built a new home-made humanoid robot with the ability to move and carry objects in warehouses.

“The robot is applicable in warehouses in a way that we order the robot to take, carry and fetch a special object. It is also capable of finding a special object among other goods,” Mohammad Reza Ameri, one of the researchers at Islamic Azad University of Yazd city, told FNA earlier this month.

He added that the robot is equipped with an artificial intelligence and a camera to carry objects without any limitation in weight.

Ameri noted that the Iranian researchers have produced the mechanical and intelligent parts of the robot themselves, and said the new robot can also be used for welding if its arm is equipped with welding tools.

Pakistan Capital Market Outlook – OpEd

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Pakistan’s capital market is likely to remain volatile and reactive to the news flows. Exchange rate parity will be the key driver, any bout of currency depreciation, either under the International Monetary Fund (IMF) program or otherwise, may result in market witnessing bearish spells. Finalizing an IMF program may be received well by the market at first, but stringent conditions placed by the Fund may hamper growth prospects of the country. It is feared that an IMF program would become a reality after achieving the harsh prerequisites proposed by the lender of last resort. On the contrary, failure to receive funding from IMF may inevitably create a significant pressure on country’s foreign exchange reserves.

With or without the IMF, rising interest rates, increasing price levels and deteriorating business sentiment may result in a significant stall in the economic growth of the country. With major industries having undergone expansions coupled with a high interest rate environment have pushed up operating breakeven for them. Therefore, any significant shifts in demand dynamics of the economy may have significant repercussions for the equity market.

Risks are mounting for yet another major adjustment in global growth patterns with seemingly all major world economies slowing down. This may be a blessing in disguise for Pakistan in terms of significant fall in commodity prices. However, the country’s already sticky exports might also take a hit. Any global sell-off may trigger panic selling at Pakistan Stock Exchange (PSX).

With dark clouds hanging over the global growth outlook, the flight of capital from risky asset classes to global safe havens will be pronounced. In Pakistan, the risks are magnified further as the economic growth will adjust downwards over the medium term and the stock market may be relegated to frontier market. Analysts expect another year of FIPI outflow and the magnitude will likely be or slightly lower as compared to that seen in FY18.
Worsening Current Account Deficit position of the country has shown some signs of improvement lately backed by 1) easing consumer demand and 2) softening commodity prices. However, the deficit is expected to remain high in FY19 and anticipated to exceed US$13 billion or 4.5% of GDP. In confluence with outstanding debt settlements that come due during the year may result in significant funding requirements.

A strong currency was cited as the possible reason for country’s depressed exports. However, the legitimacy of the argument can be challenged in light of multiple rounds of depreciation which have failed to boost exports and thus point towards deep-rooted structural inefficiencies that need to be addressed to trigger export growth. Exports can exceed US$26 billion in FY19, if right impetuses are provided.

Shrinking demand growth coupled with rising interest rates has curbed the expansionary cycle in the economy and as a result machinery imported has shown significant decline of 25%YoY during 4MFY19. This together with a likely decline in transport group (estimated at 17%YoY) and savings made from lower commodity prices will help contain overall imports to US$55 billion.

After seeing two years of muted growth, normal service seems to have resumed in the remittance growth which has showed 15%YoY growth during 4MFY19. With Pak rupee being allowed to adjust against US dollar and significant emphasis being put by the incumbent government for making the official channels of remitting money into the country more convenient, the growth in remittances is expected to sustain and workers’ remittances are expected to touch US$ 23 billion during FY19.

Rising global and local interest rates, imminent economic slowdown and volatile currency are all deterring inflow of foreign investment in the country. Consequently, FDI is expected to taper off and is likely to settle around US$2.5 billion (down 20%YoY) in FY19. The slowdown in foreign investment comes at a time when the country is grappling with the funding gap and will make balance of payment (BoP) position management even more challenging.

The country’s foreign debt servicing commitments during CY19 are estimated more than US$6 billion, which come on the top of an average monthly CAD of over US$1.1 billion. Repayments on these foreign loans are expected to bring the currency under significant stress and further currency depreciation cannot be ruled out. Managing the funding needs of US$12 billion, though formidable, may well be achieved. In this regard, friendly nations have expressed willingness to offer tangible support; funds have been received from Saudi Arabia and negotiations are ongoing with others. Many of these arrangements, though neutral from the standpoint of CAD, will support reserves level during CY19.

It is also feared that the low hanging fruits may not be available to the country in FY20 and country may continue witnessing pressure. Financing needs for FY20 are estimated around USD10 billion. Managing that in absence of grants may prove challenging. Consequently, country will need to address the bridge the difference between imports and exports. On the back of above mentioned reasons, it is anticipated that Pak rupee may remain under pressure.

Recently Fitch downgraded Pakistan’s long-term foreign currency issuer default rating to ‘B-’ from ‘B’ on the back of heightened external financing risk, elevated foreign debt repayments and as well as deteriorating fiscal position. Additionally, Moody’s has also downgraded country’s outlook from neutral to negative as a result of the aforementioned factors. This will have repercussions for Pakistan as the country struggles to raise capital to bridge funding gaps where the financing cost for raising capital from international market is expected to go up.

Pakistan’s economic growth faces significant slowdown in FY19, where headline GDP growth is likely to settle around 4% during FY19. All three sectors are likely to contribute to slower growth as consumer demand is expected to be hammered. Recovery process is expected to be long and painful and will be contingent on government addressing long standing inefficiencies in the economy.

Saudi Arabia: Crown Prince Launches Social Welfare Program

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Saudi Arabia’s Crown Prince Mohammed bin Salman has ordered yet another social initiative titled “SNAD Mohammed bin Salman” program to empower citizens and to help them achieve their socioeconomic goals.
The first phase of the program includes “SNAD marriage,” which aims to motivate the Saudi youth to get married and to ensure a stable family and social life.

The program is aimed to develop nonprofit social initiatives for the welfare of the masses.

It aims to address the needs of different sectors of society as well as setting up framework and rules for Prince Mohammed bin Salman’s charitable initiatives.

The SNAD program seeks to promote knowledge and awareness to achieve sustainable social development.

On the directives of the crown prince, work on the program has already begun. Currently, teams are preparing the overall structure of the program and are working on its governance model and initiatives in line with the Vision 2030 to promote community development through nonprofit institutions and sectors.

The program envisages sustainable development through social cooperation that ensures a decent life for all citizens in line with the teachings of Islam.

SNAD Mohammed bin Salman program is based on many social and nonprofit initiatives that the crown prince has launched in partnership and coordination with various parties.

The most recent of these initiatives include support for charitable associations, the release of prisoners and the development of historical mosques etc.

A number of other initiatives will also be launched in different phases. Details about this program are available on its official website www.snad.org.sa.

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