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Colluding With the Corrupters

Colluding With the Corrupters

Michael Young in an interview, with David Linfield who argues that international donors are benefiting existing power structures in the Middle East. It is all about Colluding With the Corrupters.

Preamble

Corruption spread deep and for some time in the MENA region with social, political, and economic implications, but with differing penetrations rates. All because the area can divide into two types of governance. The autocratic monarchies live with side by side with the so-called republics. Few of these latter countries know a higher degree of corruption than the first-mentioned countries. In any case, all have made the fight against corruption a priority by passing laws and adopting strategies to combat crime. But in vain.
Colluding with the Corrupters could quickly summarise a situation where such deviant behavioural attitudes originators can be traced back out of the region.

  • January 29, 2021
Colluding With the Corrupters

David Linfield is a visiting scholar in Carnegie’s Middle East Program. He is on sabbatical from the U.S. Department of State, where he is a career foreign service officer. Linfield recently wrote a commentary for Carnegie, titled “International Donors Are Complicit in Middle Eastern Elites’ Game.” In mid-January, Diwan interviewed him to discuss his article, and more generally to examine the anti-elite feeling that has permeated protests throughout the Middle East in the past year, notably in Iraq, Jordan, and Lebanon. The views expressed by Linfield are his own and not necessarily those of the U.S. government.

Michael Young (MY): You’ve just written a commentary for Carnegie, titled “International Donors Are Complicit in Middle Eastern Elites’ Game.” What is your argument in the piece?

David Linfield (DL): My argument is that the United States and other international donors have put significant clout and resources behind promoting economic liberalization in the Middle East, while they have been hesitant to put similar emphasis on political reforms. By political reforms I mean boosting transparency, combating corruption, and empowering elected officials. International actors have partly justified this approach by suggesting that economic reforms are a better way of promoting stability and less risky than political changes. But I contend that recent events in the region suggest that these policies are making violent, sudden change in the region more likely, not less so.

When adopted in the context of authoritarian political systems, economic reforms such as privatization have tended to benefit existing power structures, exacerbating economic inequality and citizen-state tensions. The World Inequality Database now ranks the Middle East as the most unequal region in the world. While economic inequality has decreased worldwide since the 1990s, it has remained constant in the Middle East.

By supporting policies that have inadvertently led to such entrenched inequality, while neglecting political reforms, international donors have contributed to citizens’ frustrations with their relative economic status while leaving them without peaceful institutional means of expressing their grievances. This is all a recipe for instability, which is the opposite of what donors want.

MY: You write that “[e]merging solidarity among previously competing groups, grounded in [economic inequality]” is a feature of the growing resentment of elites in the Middle East. Are you suggesting, to borrow from Marxist jargon, that we are seeing the emergence of a sort of class consciousness in certain countries that may have revolutionary potential?

DL: Most of the protests in the Middle East since 2018 have focused on economic inequality and corruption. Whereas previous demonstrations in the region tended to consist of a homogeneous ethnic group—whether from a particular religious sect, region, or group of tribes—these recent protests have been more diverse.

Common frustrations with inequality appear to have led people from lower-income communities to demonstrate in common cause—albeit sporadically and tentatively—against what they see as a corrupt and multisectarian elite that has failed them. We have seen this happen most explicitly in Iraq, Jordan, and Lebanon.

Some of the slogans used in recent protests in these countries do indicate the emergence of class consciousness. When the Jordanian Teachers Union threatened to strike in summer 2020, they framed their plight as a class struggle against those who had “looted the country.” The 2019 Lebanese protests included slogans like “down with the rule of the thieves.” Iraqi protestors in 2019 and 2020 told media outlets that their struggle was about taking the country back from “thieves.”

MY: In light of your assessment, how have the traditional fault lines among Middle Eastern populations that regimes have manipulated to retain power—things such as sectarian, tribal, or regional divisions—fared in what you describe as a changing environment?

DL: The traditional fault lines in Middle Eastern societies are still very much present. Emerging class-based tensions have not fully supplanted preexisting divisions based on ethnicity, religion, and tribalism, but rather now coexist alongside them more than before. That said, the trendlines I described earlier suggest that class-based divisions will continue to grow in relative importance and have the potential to reshape existing political alliances and divisions.

In addition to the demonstrations I mentioned earlier, another indicator of the power of class solidarity is a 2019 experiment by researchers from the University of Pittsburgh and the Lebanese Center for Policy Studies. The study, which assigned hundreds of Lebanese people into different conversation groups having varying compositions based on sect and class, found that when Lebanese people gathered with other members of the same class, they exhibited markedly less support for sectarian politics.

It’s too early to craft a comprehensive assessment of how emerging class-based tensions will interact with longer-standing societal divisions in the Middle East. One reason that we’ll have to observe for a longer period is that Covid-19 shifted the focus dramatically from political and economic challenges to the health crisis. But given that the pandemic exacerbated economic inequality, with lower-income communities bearing the brunt of related economic disruptions, we probably won’t have to wait long before class discussions reemerge.

MY: If the problem is that economic liberalization has reinforced elites, what are you recommending as an alternative approach by Western donors? And what makes you think that such an approach would have any chance of working?

DL: The alternative approach I’m recommending is for international donors to incorporate measures to promote transparency and combat corruption into existing economic liberalization efforts. These political reforms are also good for business and economic growth—as noted by the International Monetary Fund (IMF) and World Bank reports I cite in my article. The IMF’s recent insistence that Lebanon address corruption before receiving additional loans is a positive step to putting teeth behind their analysis.

Other helpful steps would include pushing to empower the many weak legislatures across the region beyond their current rubber-stamp roles, which would provide an alternative to protests for frustrated publics. If international donors put the same clout behind good governance that they have behind economic liberalization, they’ll make peaceful and durable progress more likely in the Middle East.

MY: Are you not reading too much into anti-elite solidarity? Ultimately, states in the region have shown that they will resort to violence in order to survive and societies have often gone back to being silent. Why will this change?

DL: Ruling elites in the region have demonstrated that they are willing to go to extreme measures to maintain their benefits. I am not suggesting that elites will somehow decide that they should altruistically begin to share resources with the rest of society. Rather, as your question implies, I am arguing that the elite behavior of concentrating power and resources is an unsustainable strategy that will ultimately foment violence and harm everyone’s interests, including those of the elite.

Autocratic regimes tend to resort to violence when they feel they have run out of other options, but rely more often on nonviolent coercion and intimidation to maintain daily control. By the time regimes turn to violence, it tends to be a prelude to their loss of control—or a stage where they are nearing that.

The strategy of international donors focusing their influence and resources on economic liberalization instead of good governance has not succeeded in bolstering stability and strengthening citizen-state relations. Instead, the policy has exacerbated class-based tensions and increased the prospects of unrest.

These trends are not linear: demonstrations in the region against economic inequality and corruption have ebbed and flowed. Ruling elites remain intent on doing everything they can to outmaneuver these latest challenges to their vested interests. Longer-standing societal tensions based on sect, region, and tribe also continue to simmer and remain exploitable by elites. But the overall direction of the region is still toward economic liberalization in the midst of authoritarian entrenchment. As long as that remains the case anti-elite solidarity is likely to build. International donors are inadvertently contributing to these increasing citizen-state tensions. Instead, they could be fostering more durable change that would make the region more stable and prosperous for everyone.


A Decade Of Collecting Contemporary Art Of The MENA

A Decade Of Collecting Contemporary Art Of The MENA

British Museum celebrates over a decade of collecting Contemporary Art of the MENA (Middle East and North Africa) with new exhibition as per BWW News Desk. But why a decade of collecting contemporary art of the MENA? Let us find out.

The exhibition will debut in February 2021.

A Decade Of Collecting Contemporary Art Of The MENA

In February 2021, the British Museum will celebrate over a decade of collecting contemporary art of the Middle East and North Africa. Featuring over 100 works on paper from the collection, Reflections: contemporary art of the Middle East and North Africa weaves together a rich tapestry of artistic expression from artists born in or connected to countries from Iran to Morocco. These artists reflect on their own societies, all of which have experienced extraordinary changes in living memory. From drawings by artists trained in Paris, Rome, Beirut or Jerusalem (1) to works associated with the Syrian uprisings (2), the exhibition challenges perceptions of the contemporary art of the region, with a range of works of great complexity and beauty.

The works in this exhibition reflect the British Museum’s position as a museum of human history, past, present and future. The CaMMEA (Contemporary and Modern Middle Eastern Art) acquisition group has been central to the speed at which this collection has come together in recent years and its remarkable breadth. This collection of works on paper includes drawings, screenprints, photography and artist’s books. While works by artists of this region have been collected by the British Museum since the 1980s, CaMMEA was formed in 2009 with the guiding principle of enabling future generations to see what was being produced during a particular time as well as to record significant moments in the history of the MENA region.

Reflections highlights issues of gender, identity, faith, politics and memory. Also communicated within the exhibition are ideas about poetry, music and war. The artists whether living in the countries of their birth or in diaspora, belong within the globalised world of art, and many allude to the artistic or literary heritage with which they are associated.

At the outset of the exhibition, Nicky Nodjoumi’s The Accident (2013) (3) challenges preconceptions about Middle Eastern art and highlights the complexities of being an artist in diaspora. From there, the first room focuses on the uses of figuration and abstraction with important works including Marwan’s Gesichtslandschaft (4) (Face Landscape, 1973) in which he transforms his own likeness into a landscape reminiscent of the land of Syria, or Yehuda Bacon who evokes the memory of family members who perished in the Holocaust (5). Huda Lutfi’s Al-Sitt and her Sunglasses (2008) (6) and Hayv Kahraman’s Honor Killing (2006) (7) bring their own perspectives to the female gaze. Monir’s captivating mirror drawing is informed both by the architectural heritage of Iran, and by philosophies of minimalism and abstraction (8). For Burhan Doğançay, inspiration for his abstract paintings is found in the urban walls of New York (9).

The second room is entitled Tangled Histories and shows political struggle, revolution and war across the region through the eyes of artists. While there are works relating to a specific event, such as the burning of the National Library of Baghdad in 2003,(10) or the demonstration by women against the enforced wearing of the hijab in 1979, (11) others emerge from and address longer-running struggles, and focus on the complexities of the Israel/Palestine conflict, the Lebanese Civil War or the ongoing war in Syria. Further works highlight one of the defining issues of our time, that of exile and migration through the photographs of the late Leila Alaoui. (12)

Visitors will be encouraged to explore further by visiting the British Museum’s Albukhary Foundation Gallery of the Islamic world (Rooms 42-43) where additional works from this collection will be displayed including Taysir Batniji’s painting (13) exploring the notion of being between worlds, Khalil Joreije and Joana Hadjithomas’ photography and drawing series Faces (2009) (14), and a collection of artist books.

Venetia Porter, Curator, Islamic and contemporary Middle Eastern art, British Museum said: ‘The acquisition of many of the works in this exhibition is thanks to the tireless work of the members of the CaMMEA group. We are so grateful to them for working with the museum to acquire such interesting and important works for the collection. Through the prism of personal experience, the artists in this exhibition present us with a refracted image of a region: there is no one narrative here, but a multiplicity of stories.’

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Will the Middle East Remain Habitable?

Will the Middle East Remain Habitable?

Michael Young discusses in an interview with Olivia Lazard the political impact of environmental degradation in the region. It is about whether the Middle East Remain Habitable?

Will the Middle East Remain Habitable?

  • November 19, 2020

Olivia Lazard is a visiting scholar at Carnegie Europe. Her research focuses on the geopolitics of climate, the transition ushered by climate change and the risks of conflict and fragility associated with climate change and environmental collapse. Lazard has over twelve years of experience in the peacemaking sector at field and policy levels. With an original specialization in the political economy of conflicts, she has worked for various non-governmental organizations, the United Nations, the European Union, and donor states in the Middle East, Latin America, Sub-Saharan and North Africa, and parts of Asia. In her fieldwork, her focus was on understanding how globalization and the international political economy shaped patterns of violence and vulnerability. Diwan interviewed her in mid-November to examine how environmental issues are impacting the Middle East.

Michael Young: Climate change has been largely ignored by regimes and even societies in the Middle East, yet it is affecting them in fundamental ways. Can you outline some of the major effects of climate change and tell us why we in the region should pay attention.

Olivia Lazard: Climate change has been ignored the world over because we fail to understand that our governance and economic systems are exhausting nature’s capacity to function, and therefore to sustain us and other species. The challenge ahead is difficult to apprehend. It is not just a matter of energy transition; it is a matter of profound political and socioeconomic transformation. It is about disrupting the status quo. So it is easy to understand why this is not welcomed by autocratic regimes who may stand to lose grip on power, or by democratic societies where coordinated action can be even more complex. Even as certain parts of the world, such as Europe, move closer to a climate transition, we are still at the very early stages of a long journey toward the profound transformations that we are going to need in order to genuinely address the drivers of climate change and, more broadly, ecological disintegration that threaten our ability to survive as a species on this planet.

So, I agree with you that regimes in the Middle East ignore climate change, because they rarely like to talk about transformative change. But I wouldn’t say that the societies ignore climate change per se. In fact, I think it is fair to say that the Arab Spring was a climate-disrupted appetizer that upended the world’s understanding of the region, but also of the links between societal and environmental shocks. Arab societies were actually precursors in ringing the alarm bells on a combination of events that lead to disruption and protracted sociopolitical conflicts: drought, monoculture failings, speculation over staple goods leading to market failures, and worsening social disenfranchisement with no safety net in sight. Increasing temperatures, erratic weather patterns, the unreliability of rainfall, protracted drought, and increasing reliance on chemical inputs to grow crops were all the long-term backstory to these issues back in 2011, which few analysts picked up on. The biophysical factors that characterize climate change were already at play.

MY: How were the Arab uprisings climate-disrupted appetizers, as you’ve said?

OL: This is a side of the story that still doesn’t get told very often when we examine the Arab Spring and its aftermath, so let me dwell a bit on it by looking at Tunisia. In Tunisia, landscapes across the country are ecological deserts—export-oriented monocultures as far as the eye can see. It makes them very vulnerable to climate and economic shocks. Two years ago, I was traveling across the country and I could see that, between the touristy coast where inequalities could not be starker and the extractives regions of the south, decades-long agricultural and economic policies had turned a country which used to be fertile into a bare piece of rock and dust.

Today, a decade after the start of the Arab Spring, you have a country where unemployment is still soaring, where youths find no meaning or economic opportunities outside of the informal economy, where urban centers of the hinterland are boiling with anger and frustration, and where the free movement of people is extremely constricted from one governorate to another. Look around in a place such as Sidi Bouzid, and you either see depressing concrete in town or depressing desert as far as the eye can see. There is no life, there are no prospects. Both the land and the economy have come to a standstill. So people feel stuck. Local cultures have lost their vibrancy and intergenerational divides are growing wider. In this bare and inert environment, drug consumption, domestic violence, and radicalization are rising.

The land is actually the canvas of terrible policies that have favored extraction and predatory politics over resilient social fabrics, culture, and vibrant economies. And the problem is that climate change exacerbates problems that are already present. In Sidi Bouzid in 2010, the spark was Mohammed Bouazizi’s self-immolation. But his story was yet another reminder of problems running deeper and taking root in environmental exploitation, abuse of hard security at the expense of social and human security, enduring economic inequalities, poor governance, and rising violence. It is striking to see how national and international responses to these problems are missing out on the environmental story as a backdrop to social and economic violence. They just do not focus on it.

The picture that I am trying to paint here is one of interconnectedness between the environment and human security, which has always existed but that we really have only started noticing more as a result of climate disruption. Climate change will have two consequences—to exacerbate and disrupt. The Middle East knows this well. The history of landscapes in the region is one of abundance that cradled human civilization. But mismanagement of resources led to natural exhaustion and cycles of violence for centuries. Today, the region is in an advanced stage of desertification, with fewer and fewer resources to support human populations. The environmental degradation is coupled with an atmospheric accelerating force resulting in extreme natural shocks—floods, devastating droughts, and resulting fires. Unsurprisingly, the Middle East concentrates yet again all the ingredients that mark the history of our times.

Where human security is weakened by predatory and hard security-oriented regimes, economies tend to be more extractive toward nature. But nature can no longer sustain extraction. Resources are not just running lower—such as water or land fertility—they are also more erratic. The Middle East is now replete with foretellers of climate catastrophes—massive floods in the Arabian Peninsula, fires in the Levant, and drought everywhere.

These disasters are mostly showing one thing, namely that people have no safety nets to rely upon from their governance systems. There is no preparedness, no relief capacity. This means, once again, that Middle Eastern populations are left to struggle for their own dignity, or karama, the key word during the Arab Spring. It may well become a refrain of disruptions to come related to climate shocks.

Still, some regimes in the Middle East are talking about climate change. I am thinking particularly of the United Arab Emirates, but they do so in a “business as usual” way. They aim to demonstrate that economic power and technological innovation are a way to face the crisis. This is not going to work. Governance and socioeconomic systems need to be rethought in terms of their relationship with nature. We also have to look a lot more in the direction of nature-based solutions in order to navigate the unfolding disaster.

MY: There has been an argument that the Syrian uprising was caused by the drought between 2007 and 2010. Your thoughts?

OL: Without a doubt the drought played a role in the multidimensional uprising in Syria. But the drought itself has a story. It began in 2007 and became protracted over the years. Rainfall patterns were becoming more erratic. This was the result of two things: global warming resulting from excess carbon dioxide accumulation in the atmosphere and changes in landscapes at the local level. Apart from the coastline, over time Syrian land was denuded of natural vegetation, which is responsible for stocking water underground and pumping it into the atmosphere.

In addition to breaking the ecological integrity of the land (which regulates local climates), there were other things that created additional stress for the agricultural capacity in the area of Dar‘a and elsewhere. The Assad regime relied on two main crops for export—wheat and cotton—both of which are highly water intensive. So, atmospheric conditions were not providing rain, and on top of it there were agricultural incentives, such as subsidies, pushing unsustainable ground water consumption. In parallel, the liberalization of the economy led to hikes in diesel prices which farmers could not afford. The crops eventually failed, collapsing an already fragile economy and pushing people into acute food insecurity and economic vulnerability, which they were left to navigate mostly by themselves.

What followed was a mass movement from rural to urban zones, as well as a boom in the informal economy, which is often accompanied by abuse and insecurity for all members of a family household. This is an extremely violent process of the disintegration of livelihoods and security that spirals out of control. In those cities to which people moved, the population influx led to unsustainable water consumption, which created tensions between “old” and “new” communities. The land was impossibly stretched, and the state only concentrated on containing a bubbling situation by unleashing the security forces. Populations were squeezed between scarcity and violence. No wonder communities revolted. So, again, this is a story of exacerbation and disruption.

I was in Syria in 2009, and I remember then that all the communities with which I spoke accepted President Bashar al-Assad as the “devil they knew.” They knew that the equilibrium between the central state, the clans, and the various communities was precarious, but it was an equilibrium to which they could adhere for lack of a better alternative. When mass displacement, impoverishment, and violence started increasing, this equilibrium was upset. The state reacted in a such a way that it broke irremediably the multiple contracts that Assad had with various constituencies.

When you look through the lens of the environment, you can actually retrace the story of peoples, economic policies, and governance structures. Ask any elder in the Middle East what the land was like 60–70 years ago, and they will spend hours telling you stories about fruits and vegetables tasting better, people being more resilient, and communities being more intertwined. The state of the land is usually a reflection of socioeconomic situations—either of resilience or destitution. With increasing liberalization over the last decades, especially through structural adjustments, there have been inequalities and social dislocation. In the Middle East, governance structures are highly centralized and informally organized according to ancestral cultural and identity groups. The mix between the two has led to politics of group benefits and zero-sum games. In modern economies, that means that land and other natural resources are mostly integrated in an economic trickle-up model in which resources accrue to a few at the expense of social and natural public goods.

Climate change is a systems-disruptive force. It will upset old equilibriums to which authoritarian states and inefficient bureaucracies are ill-adapted to respond. So, yes, climate change is tied in with politics in the region, and it will have exponential effects over the coming years.

MY: One consequence of drier climates is that it will exacerbate water scarcity. Can you outline potential scenarios if the question of water is not adequately addressed by Arab states? What might be some ways of resolving the issue?

OL: Let’s fix a slight misconception first. Water scarcity leads to climate disruption leads to water scarcity. In other words, climates become drier because of inadequate water and land management. When you do this globally, all the while burning fossil fuels, you end up with a global climate regime deregulation. Agricultural, energy, and extractive policies are the primary drivers of water scarcity. Climate change exacerbates an already existing state of water scarcity.

Now, on scenarios. It is very hard to lay these out, because they depend on water levels, water sources and flows, water infrastructure, and socioeconomic relationships to water. What I can tell you is that water scarcity is a process of man-made depletion. It is not an overnight shortage. So, necessarily, the disruptions and sociopolitical breakdowns that result from it also take place in a process of exacerbation until it reaches points of disruption.

We can look at two different countries to understand how water scarcity impacts stability. Jordan is currently experiencing its worst drought in 900 years. The consecutive refugee flows coming from Palestine, then Iraq, then Syria over the last decades have led to repeated sudden bursts of population concentration in various parts of the country. In recent years, Mafraq and Irbid Governorates have been under acute water stress every summer, leading to severe tensions between refugee and host communities, higher criminality, xenophobia, and the reinforcement of tough security measures on the part of the Jordanian state. As a result of water running low, people have dug random boreholes into local water tables, which tends to worsen water stress for everyone, but also can lead to water pollution.

At a more structural level, in and near those governorates you have intensive forms of agriculture that drain water tables further. In Amman, where the government is under more direct political pressure, the city has been moving toward more efficient water infrastructure, and it is looking at desalination plants to increase the availability of water. But it is not the same story across the country. Water vulnerability is increasing and is having a series of knock-on effects. These effects are so far contained, so the two questions we need to ask are “until when?” and “and then what?” Here, we need to look at policy responses and ecological interdependencies underpinning Jordan’s water resources. It gives us an idea of the type of violence that may emerge and how far it can go geographically.

From an ecological standpoint, technology can only get you so far. As long as Jordan can make up for water shortages that sustain its economies, it will maintain a level of stability and water conflicts may remain confined to social tensions or to geographically confined zones. But that will have a growing cost over time, which will destabilize the country’s economy and sociopolitical fabric. If Jordan also reacts with force rather than rethinks its investment in the social and environmental fabric, it will likely pay a heavy price in the coming decade.

Iraq, on the other hand, is moving into active water conflict, especially around the ancestral ecosystem of the southern marshes. The water branches feeding into this ecosystem are impacted by hydroelectric infrastructures reducing the flow of water, general pollution, growing salination, and the collapse of local biodiversity. Because of the environmental degradation, people are moving into cities, which are themselves facing water stress. This has led to greater demand for water imports, forcing all households, including vulnerable ones, to spend their income on making up for the lack of available water. This leads again to growing social tensions, but also growing frustration with a central state that remains crippled by its inability to provide basic services, and therefore needs to constantly find ways of legitimizing itself.

Iraq is dependent for its water supply on Turkey and Iran. The more the Iraqi government fails to deliver at home, the more it is likely to escalate tensions with its neighbors. Over time, if this doesn’t lead to open warfare—which it probably won’t given Iraq’s weak defense capacity—it will reduce the chances for water-based cooperation to stop water depletion. This will impact all countries’ stability negatively, and will make them more vulnerable to climate change. The more individual states prioritize their national needs first, rather than cooperating on the basis of ecological integrity and environmental regeneration, the more they will undermine their own stability and cause environmental degradation. In other words within decades this region of the world may simply become uninhabitable.

In terms of solutions, there are a few. But I’ll focus on broad strokes. First, states and regions would need to transition away from activities that deplete water tables. This is no small feat as it is multisectoral. You need a shift toward regenerative agriculture, energy-efficient systems, and infrastructure development that do not encroach on ecosystems. The process does not just require an economic transition at the country level, it also requires a change in economic infrastructures and frameworks at the international level. Agricultural produce for example should be isolated from international speculation, and production should primarily serve for internal consumption and to reinforce resilience. Countries should encourage a diversity of cultures, including a return to indigenous seeds and crops, rather than systematized crops that are simply not suited to the ecological make-up of areas undergoing desertification.

Secondly, Middle East states need to adopt regenerative landscaping practices that literally help them to plant rain into the soil again. Globally, we need to harness the hydrological cycle in order to recover livable climates at local and global levels again, and preemptively manage floods. The interesting thing is that this is a sector that requires new competencies and which is also labor intensive. It is about redesigning landscapes so that they retain water, leading them to again become productive. This is a message that particularly resonates in the Middle East because rebooting functional ecosystems is also about rebooting local soil-related cultures. The Middle East was the cradle of civilization and culture as a result of its agricultural might for an enormous part of its history. There is the potential to recover for the future.

MY: Do you envisage a time when governments in the region will be able to wean themselves off the extractive policies that have damaged their environments? Or are they not thinking in these terms?

OL: They are not. Nor is it just governments in the region. Extractive policies are a function of growth-oriented economies that require energy. As long as we don’t change what extractive policies are used for, extraction will not cease. A tree will be worth more dead than alive. Underground resources will be more valuable unearthed and used than buried. Aggressive underground resource extraction made the Middle East what it is today. It came with economic growth as well as economic predation, inequalities, disenfranchisement, corruption, violence, and war. It also came with authoritarianism.

Unfortunately, we are likely to see the same type of story develop over the new scramble for resources related to renewable energy. For a long time, the Middle East played a central part in the global economic march that led us to where we are. But the Middle East won’t hold the same importance in tomorrow’s energy competition because it is not endowed with the needed resources such as rare earths and related materials. Admittedly, Middle Eastern countries are endowed in natural sunlight that can help their power transition, but the materials and technology used to harness this renewable energy is where the resource competition will play out, and give rise to new drivers of instability globally. These materials and technology are not located in the Middle East, which means that the center of gravity in energy politics will incrementally shift. This transition will be unsettling, but it may also represent an opportunity to try out different economic models on the basis of ecosystems regeneration. The European Union has already indicated its readiness to work with Middle Eastern partners on multiple transitions. It is however necessary to have a hard look at which type of governance systems are needed to usher in truly resilient transitions in a way that revive local and national economies from the ground up—literally.

MY: What for you are the top three most pressing environmental problems that countries in the region will need to prioritize in the coming decade?

OL: Water scarcity and land degradation will lead to crop failures. Floods will create more humanitarian and economic disasters, and will damage infrastructures that are already fragile. Urbanization is likely to increase, depleting water tables even more. Global energy shifts will lead to changes in oil price structures that may actually lead to more revenues in the short term and, possibly, more investments in security forces. The most pressing environmental problem is that we are entering an era of vicious cycles rather than isolated shocks. But this is not inevitable and what’s at stake is to break those cycles.

The overall challenge across the Middle East, like elsewhere in the world, is to rebuild ecological integrity. That means recreating landscapes that can hold carbon and water, and therefore sustain human activity again. It is about restoring equilibriums that help both to chart another socioeconomic path forward as well as to adapt to climate change and reverse it over time.

So that requires two tempos of change: adaptation and transformation. With respect to adaptation, climate-related disasters are already locked into the planet’s system due to past emissions and environmental degradation. The most pressing thing is to anticipate where and how disasters will hit and prepare accordingly. It requires ensuring continuous and shock absorption relief capacity in the future, which will demand internationally and regionally pooled resources. In addition, it will require redesigning landscapes in such a way that they can buffer the impact of disasters and store as much flood water as possible. This sounds abstract when you are not familiar with ecological design, but if you have a look at projects such as Greening the Desert in Jordan or regenerative projects in Saudi Arabia, you can get a sense of how to work with landscapes to adapt to new challenges.

On transformation, achieving this is hard work. Climate change calls for a profound redesign of political and socioeconomic systems. It is about transforming the way in which agriculture, energy, infrastructure, and other economic systems are set up and relate to the environment. And it is about investigating which governance systems best deliver on a safe operating space for human populations in a viable environment.

Bloated public salaries at heart of Iraq’s economic woes

Bloated public salaries at heart of Iraq’s economic woes

Bloated public salaries at heart of Iraq’s economic woes

Until recently, labour markets in the MENA’s oil-exporting countries were characterized by a large public sector, a small, weak private sector, and depending on the country, a sizable agricultural industry, and a sizable informal sector. But in the case of Iraq like elsewhere in the region, the volatility of oil prices and the pandemic impacted the economy, resulting in a critical situation where bloated public salaries at the heart of Iraq’s economic woes result in increasingly unstoppable youth unemployment.
The currently general upheaval in the region, rural to urban and cross-border migration has not helped, leading to an even greater informal market.

Bloated public salaries at heart of Iraq’s economic woes by Samya Kullab is a vivid picture or a series of pictures on life in Iraq as perceived by a locally based journalist.

People shop for clothing at the used-clothes market in Baghdad, Iraq, Tuesday, Oct. 20, 2020. Iraq is in the throes of an unprecedented liquidity crisis, as the cash-strapped state wrestles to pay public sector salaries and import essential goods while oil prices remain dangerously low. (AP Photo/Khalid Mohammed)

BAGHDAD (AP) — Long-time Iraqi civil servant Qusay Abdul-Amma panicked when his monthly salary was delayed. Days of waiting turned to weeks. He defaulted on rent and other bills.

A graphic designer for the Health Ministry, he uses about half his salary to pay his rent of nearly 450,000 Iraqi dinars a month, roughly $400. If he fails to pay twice in a row his landlord will evict him and his family, he fears.

“These delays affect my ability to survive,” Abdul-Amma said.

Iraq’s government is struggling to pay the salaries of the ever-swelling ranks of public sector employees amid an unprecedented liquidity crisis caused by low oil prices. September’s salaries were delayed for weeks, and October’s still haven’t been paid as the government tries to borrow once again from Iraq’s currency reserves. The crisis has fueled fears of instability ahead of mass demonstrations this week.

The government has outlined a vision for a drastic overhaul of Iraq’s economy in a “white paper” presented last week to lawmakers and political factions. But with early elections on the horizon, the prime minister’s advisers fear there is little political will to execute it fully.

“We are asking the same people we are protesting against and criticizing to reform the system,” said Sajad Jiyad, an Iraq researcher.

The white paper’s calls for cutting public sector payrolls and reforming state finances would undermine the patronage systems that the political elite have used to entrench their power.

A major part of that patronage is handing out state jobs in return for support. The result has been a threefold increase in public workers since 2004. The government pays 400% more in salaries than it did 15 years ago. Around three-quarters of the state’s expenditures in 2020 go to paying for the public sector — a massive drain on dwindling finances.

“Now the situation is very dangerous,” said Mohammed al-Daraji, a lawmaker on parliament’s Finance Committee.

One government official said political factions are in denial that change is needed, believing oil prices will rise and “we will be fine.”

“We won’t be fine. The system is unsustainable and sooner or later it will implode,” the official said, speaking on condition of anonymity to discuss internal politics.

Iraq’s activists have called for a march on Oct. 25, expected to draw large crowds, a year since massive anti-government protests first brought tens of thousands to the streets demanded reforms and an end to the corrupt political class.

“As far as meeting our demands, there have been no changes,” said Kamal Jabar, member of the Tishreen Democratic Movement, founded during the protests last year. “To us, the white paper is a joke.”

Abu Ali, a merchant in Baghdad’s commercial district of Shorjah, fears what the following months have in store. The state is the primary source of employment for Iraqis, and civil servants are the lifeblood of his business.

“The delays in salary payments have affected the market directly,” he said. “If these delays continue our business and the economy will collapse.”

Abdul-Amma’s September pay was 45 days late, and he still hasn’t received the October pay that was supposed to come on the first of the month. He worries about the coming months as well.

“I have a history of chronic heart disease, and one of my daughters is also sick,” said the father of four. He pays $100 in medical fees per month.

But to the architects of the reform paper, he is part of the problem: Public sector bloat is first in line for reform.

“We hope the civil service and bureaucracy will recognize a need for change,” Finance Minister Ali Allawi told The Associated Press in a recent interview.

Iraq relies on oil exports to fund 90% of state revenues. Those revenues have plunged to an average $3.5 billion a month since oil prices crashed earlier this year.

That’s half the $7 billion a month needed to pay urgent expenses. Of that, $5 billion is for public sector salaries and pensions, according to Finance Ministry figures. Iraq also imports nearly all of its food and medicine; with foreign currency reserves at $53 billion, the World Bank estimates the country can sustain these imports for another nine months. Foreign debts account for another $316 million.

Poor productivity of public workers is the heart of the issue, Allawi said.

“We’ve ended up with a low productivity, high-cost public sector that doesn’t really earn its keep,” he said. “In one way or another this issue has to be tackled by either reducing numbers, which is politically difficult, reducing salaries … or increasing productivity.”

The white paper calls for public sector payments to be reduced from 25% of GDP to 12% but doesn’t detail how. Officials said one step may be to restore taxes on civil servants’ benefits that previous administrations had lifted.

To meet month-to-month commitments now, the government has had to borrow internally from its foreign currency reserves. A request of a second loan of $35 billion was sent to parliament, drawing criticism from lawmakers.

Haitham al-Jibouri, head of parliament’s Finance Committee, said in televised remarks that if borrowing was the government’s only plan he would fetch a shopkeeper from Bab al-Sharqi, a commercial area in the capital, to do the finance minister’s job.

Parliament’s endorsement of the loan and the reform paper is crucial for the government to avoid a full-scale economic crisis.

But this will prove difficult with elections slated for next June, since factions want to hand out jobs to maintain their constituencies.

“Whoever decides to push ahead and support reforms first will lose out, they will also need to convince other political players who will also lose out,” said Jiyad. “That is a tough sell.”

Al-Kadhimi’s advisers privately acknowledge the challenges of having the system that produced such mismanagement and corruption be its own savior.

One official recalled a remark made by the finance minister at a meeting of a high-level committee tasked with managing the crisis.

He looked at the room of officials charged with halting the country’s fast spiral toward insolvency and said, “I can’t believe this was done for 10 years and none of you did anything to stop it.” There was silence.

Social Responsibility Policies and Economic Development of Iran

Social Responsibility Policies and Economic Development of Iran

Social Responsibility Policies and Economic Development of Iran

modern diplomacy‘s MIDDLE EAST elaborates on The role of social responsibility in the policies and economic development of Iran in this article

Written by Sajad Abedi on October 21, 2020

Today, social responsibility goes beyond its old concepts, such as altruism and humanitarian aid, and covers the range of government activities at the local, national, and international levels. Since the social responsibility of the government exists in different areas; Therefore, economic policy-making should be done in relation to issues such as social rights, health, private sector activity and the role of companies in economic development. Each of these areas is part of the process of social responsibility and economic policy of governments. Therefore, the government can take more responsibility in the social sphere if, first, it has infrastructural capabilities; Second, to be able to use its capabilities in relation to its social responsibility to society and the power structure in the country.

Moreover, economic development, driven by the promise of eradicating poverty and increasing the well-being of societies, not only failed to overcome poverty, according to statistics; Rather, it had trapped many social classes and nations in the trap of institutionalized and structured poverty. The wealth of the world is increasing by year; But this increase in wealth is not something that is felt by all sections of society, and often, certain groups benefit from it. Another problem of economic development related to social issues has been and is the destruction of the environment. In the 1970s, various voices were heard in human societies about another scandal involving economic development. In fact, it has become widely known that this growth, dependent on increased production and consumption, requires more use of “natural resources” and produces a vicious cycle that results in the destruction of natural resources, environmental pollution, population growth, and so on. It will reduce the quality of life and endanger life on earth, which is contrary to the three principles of sustainable development. Levels related to social responsibilities in a developed society, starting from the individual, reach large government departments, and as we move from individual responsibilities to government social responsibilities, these responsibilities go from components and micro-indicators to Towards the components and macro indicators are inclined.

Levels related to social responsibilities in a developed society

The first level of involvement of social responsibilities in a developed society is individual levels: Individual social responsibility includes the participation of each individual in the society in which he lives and can be attributed to the interest in what happens in society and active participation. Defined to solve some local problems. Citizenship is a concept that is associated with the responsibility and accountability of individuals in society. In civil society, every citizen realizes that the irresponsibility of the people around him puts him on a path of fluctuation, and if he is irresponsible about the phenomena of the environment, he damages his own environment and the lives of others. The most beautiful pleasant feeling in the category of citizenship is the effort to cooperate and bear the responsibility of oneself and others.

Being socially responsible; That is, individuals and organizations must be ethical and sensitive to social, cultural, and environmental issues. Striving for social responsibility helps individuals, organizations, and governments make a positive impact on achieving sustainable development. The life-giving school of Islam, as a complete religion, has moral laws and advice for various aspects of human life, including social life, which every Muslim is required to follow in social relations and behaviors. “Purposefulness”, “being responsible”, “authority”, “having eternal life” and “being two-dimensional” are among the most important anthropological foundations in the school of Islam that make a Muslim a responsible and committed citizen to society can be one of the most important elements in improving the quality of life in the urban structure or sustainable urban development. Of course, every society is changing and has its own life, and every human being can determine his / her responsibility in the society according to the beliefs and culture of his / her society, available hardware and software facilities, governing laws and other variables.

The second level of involvement of social responsibilities in a developed society is the corporate and  organizational levels: In many developed countries of the world, companies are more successful that value their corporate social responsibility. These companies are always striving to create shared value by implementing creative and practical ideas. These ideas are implemented with the support of long-term and very accurate plans that these companies have in the past set goals related to their corporate social responsibility. Sometimes these programs are made available to citizens so that they know what happen, for example, a company will create a common value for society in the next five years and what interests will protect society. The role of companies in sustainable development is divided into three categories: social, environmental and economic. In fact, it is a “sustainable” development in which, in addition to the economic dimension, its environmental and social consequences are also positively managed. With such a view, the exploitation of natural resources and human capital today should not jeopardize the earth, life, benefit and happiness of present and future generations. In fact, demanding organizations to “act responsibly” towards society is an issue that, as their influence grows on the pillars of sustainable development; That is, “economy”, “society” and “environment” intensified in the last decades of the twentieth century and led to the emergence of a concept called corporate social responsibility (CSR) in the world of management to understand the impact of organizations and businesses on sustainable development, it is enough to note that among the top 100 economies in the world, there are more than ten companies. Therefore, the issue of “corporate social responsibility” or CSR has become particularly important in guiding the development process towards sustainability. CSR in a nutshell; That is, organizations are accountable to the community in which they operate; Because they use its human, natural and economic resources. Contrary to the traditional view of management and business, organizations are no longer responsible only to shareholders and should not look only at the profitability of shareholders and based on short-term benefits. Thus, organizations that are in contact with other stakeholders are expected to consider their legitimate demands as well. Beneficiaries; Entities are groups and individuals that affect or are influenced by the organization and cover a wide range; From employees, customers, business partners and local communities to the environment, the media, public institutions, citizens and the government. From this perspective, CSR can be called the integration of social and environmental goals with the organization’s operations and the inclusion of those issues in interactions between the organization and related groups. In general, corporate social responsibility, in a simple definition, includes the responsibilities that firms have towards the community in which they operate. Thus, social responsibility is a voluntary activity based on the ethics of an organization or institution that goes beyond the legal requirements and aims to meet the expectations of stakeholders. In addition, one of the most important features considered for this concept is the emphasis that organizations place on the social system of communities. On the other hand, activities should be such that they have the least adverse effect on society.

The third level of involvement of social responsibilities in a developed society is government levels and the involvement of politics in social responsibilities to create a developed society: The attractiveness of government social policy has no boundaries and relates to all aspects of life at the local level. National, regional and global are considered. All issues related to social security, housing, education, health and social care fall into this area. Planning to achieve such goals will not be achieved through social processes alone. The economic components must also be formed in parallel with the social goals of the government. Topics such as health, education, livelihoods, jobs and money are vital issues that, with the help of government, officials, companies, social groups, economic groups, charities, local associations and other non-governmental are research groups.

In general, the government is not only concerned with social welfare; Rather, it is accountable to economic classes, the mechanism of action of multinational corporations, trade unions, financial institutions, importers, exporters, shareholders, owners of economic enterprises, and other social forces. Theorists believe that economic policy-making in the present age is formed by various government authorities and groups. In other words, various sectors are involved in the economic policy-making process. Each of these sections is a symbol of social activities in communities. Therefore, economic policy-making must be done in a way that meets social needs. Any possible scenario in social policies that lead to the welfare, comfort and cooperation of different social strata; It is part of the governance necessity. In other words, for the welfare of the society, the economic growth of the country, the promotion of the income of various industrial and economic complexes, as well as the reconstruction of the national and global economy, there is no choice but to play the role of government in economic policy; Therefore, it is not possible to consider conditions in which social welfare, economic development and technological advancement can be done without considering the role of government in social accountability and economic policy-making.

If the government fails to pay effective attention to goals such as social welfare and the promotion of national incomes in the economic policy-making process, then there will be manifestations of a welfare state as well as a non-developmental government. In such a process, some theorists emphasize that the main function of the state can not be overshadowed by any other issue. If economic development takes shape; In those conditions, a platform will be provided to increase the level of welfare of the society. That is why in the period of economic growth, the income of the government, society and economic groups increases in parallel. Also, the reduced government budget deficit provides a platform for economic prosperity, investment and the of development infrastructure.



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