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Democracy vital for prosperity and sustainable development

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In so far as the MENA region countries are concerned, Democracy being vital for prosperity and sustainable development or the lack of it, has been demonstrated over and over the millennia. Let us see what it means in today’s world for the rest of the world with Androulla Kaminara.

The above image is for illustration and is of the FDSD.

Democracy vital for prosperity and sustainable development

Transparency and reliability of how elections are carried out are key to ensuring that the winners enjoy legitimacy.

On 15 September, we are marking International Day of Democracy. Since the pillars of democracy around the world are threatened as new challenges emerge, this day is perhaps more pertinent than ever. Democracy is a dynamic concept that has evolved over time, as have the challenges facing it. To those challenges, new challenges have been added of late, including by the impact of the Covid-19 pandemic deepening existing inequalities, spreading disinformation and distrust, and undermining women’s rights. In addition, the fast evolution of new technologies and their impact on all walks of life has also had a profound impact on democratic processes around the world.

As the world took emergency measures to address the Covid-19 crisis, concerns began to emerge that these actions could infringe on civil and human rights of citizens. Covid-19 also highlighted and aggravated inequalities within societies, including in social protection, increased discrimination and violence against women as well as disinformation. The pandemic was accompanied by a global infodemic that poses a direct threat to one of the pillars of democracy: the right to access to information.

The answer is — ‘to build back better’ — to build a society that works for all and that represents the will of the people is the objective. Democracy is built on inclusion, equal treatment and participation — is a fundamental building block of a progressive, stable and peaceful society that enables sustainable development, human rights and economic justice for all.

Democracy is one of the core values of the European Union, together with human rights and the rule of law. The EU is taking steps to safeguard and strengthen democracy inside our Union since no democratic system is perfect and continuous efforts are need for improvement. In the EU, we practise our rights, also through regular elections both at individual Member State level — local, regional and national elections — as well as at the European Union level. The elections to the European Parliament are one of the largest democratic exercises in the world, with over 400 million citizens being represented.

The European Union also takes a leading role in promoting democracy around the world through the implementation of relevant projects and through Electoral Observation Missions (EOM).

In 2019, cooperation projects in support of democracy amounted to €147 million in 37 countries. Over the last 7 years, the EU has implemented projects of €618 million in Pakistan and currently, the EU supports the National Assembly, Senate and four provincial assemblies by strengthening their functioning in terms of capacity, transparency and accessibility as well as accountability towards Pakistani citizens with a project of €9 million.

Since 2019, the EU deployed over 20 observation missions globally as part of its commitment to democracy, human rights and the rule of law across the world and these offer a comprehensive and impartial assessment of electoral processes. In addition, EOMs publish recommendations aiming to improve future elections and strengthen democratic institutions.

In Pakistan, the EU so far has deployed four observation missions since 2002 upon the invitation of the respective governments. The EOM of 2018 put forward a set of thirty recommendations for electoral processes and framework reforms. It is encouraging to note that several of these recommendations are reflected in the 3rd Strategic Plan of the Election Commission of Pakistan.

However, other recommendations are still pending. Among those is the need to ensure a full level playing field for women: registration of women voters and women representatives in parliaments as well as in the media. In Pakistan, there are 63 million registered male voters and 50 million female voters, clearly indicating that about 13 million women voters are missing. The report argues that stronger involvement of women in political decision-making leads to more accountability, better use of public resources, as well as stability and peace. The fact that a large number of women are not eligible to vote leads to alienation of a significant part of the population. Ensuring their inclusion in the electoral process as well as adequate representation for marginalised groups is key to a more inclusive and fair democratic system.

We recognise the difficulties in implementation of some of the EOM’s 2018 recommendations which are public. Nonetheless, as Pakistan is approaching its next general elections, it is paramount to keep the reform momentum and maintain efforts to further strengthen the electoral system and practice. In this context, the role of a fully functioning Election Commission of Pakistan supported by all is crucial.

The experience within the European Union and elsewhere shows that for democracy to work, trust in the democratic process, including the electoral mechanism, is vital. Transparency and reliability of how elections are carried out are key to ensuring that the winners enjoy legitimacy and support from the electorate. Without democracy, peace and stability, sustainable development and prosperity cannot exist.

The EU continues to be committed to safeguarding and strengthening democracy within its borders and across the world, and we work with all our partner countries including Pakistan in this endeavour.

Published in The Express Tribune, September 15th, 2021.

Boosting the Privatisation Process in Algeria

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Conditions for boosting the privatisation process via the Algiers Stock Exchange are reviewed by University professor and international expert, Dr Abderrahmane MEBTOUL.

The aims of the privatisation, whether partial or total of the Algerian economy do not come to be questioned. The process is a must, however, it needs to be addressed as a matter of urgency. Proposals of strategies are made, notably through my experience as Chairman of the National Council of Privatizations between 1996/1999 complemented by numerous tours in the USA, helping to formulate the conditions for the success of the privatisation process via the Algiers Stock Exchange, to imply clarity in the objectives and means of implementation.

The Algerian Stock market in Algeria. (Photo by Monique Jaques/Corbis via Getty Images)
The urgency of a strategic vision

At a time of the coronavirus pandemic and the world going through new socio-economic changes in technological and organisational models including shock waves that according to the IMF, the World Bank, and the OECD, global growth will not be felt before the end of 2021. Furthermore, subject to the control of the epidemic, all domestic companies using the State’s handouts for their survival and all of the state-owned enterprises suffer from a structural deficit. Indebted to banks, some whose production techniques, are obsolete and do not meet new technologies and international standards, it is mentioned in this particular context to address the large budget deficit. The observation is the lack of dynamism of the public sector, the consolidation supported by the public treasury having far exceeded 100 billion dollars at constant prices between 2000/2020. The cost of the numerous restructurings between 1980/1999 and the ensuing remediation period of 2000/2020, resulted in more than 95% of the domestic companies returned to their inception status. Whereas with this, capital-money, it would have been more sensible to create a whole new and performing economic fabric. These are only announcements because, being an eminently political process, any decision on such a sensitive and complicated subject must first have the approval of the Council of Ministers certainly after consultation with the Security Council because it commits national security. Privatisation should not be confused with complementary de-monopolisation, both eminently political, moving towards the disengagement of the State from the economic sphere so that it devotes itself to its role as a strategic regulator in a market economy. Privatisation is a transfer of ownership from existing units to the private sector, and de-monopolisation is about fostering new private investment. The objective of de-monopolisation and privatisation must reinforce the systemic transformation of the transition from an administered economy to a competitive market economy. A legal text is not enough (this is only a means) and becomes a decoy if there are no coherent objectives clearly defined with pragmatism and a return to trust

Privatisation can only be successful if it is part of a coherent and visible global socio-economic policy and if it is accompanied by a competitive universal and sustained dialogue between the social partners. It should be aimed at putting an end to perpetual legal instability. The renovation of the Ministry of Finance through digitisation of all systems of taxation, banks, land and customs duties would surely put an end to the central and local bureaucracy that as a significant constraint of an administered economy would be best be accompanied by the overhaul of the socio-political system. Also, the decentralisation around large four to five regional poles, not deconcentration would help.

Moreover, the impacts of all trade agreements between Algeria and the European Union, Africa and the Arab world, as well as all international ones would be of a win-win type only if Algeria has public or private companies that are competitive in terms of cost/quality. In any case, all of these agreements have domestically economic, social and political implications.

The four conditions for boosting the privatisation process

Are our managers aware that there is a global privatisation market where competition is perennial, and the determining factor is a demand for goodwill and not just supply? The success of this process to prevent certain predators from being interested only in the real estate of these companies and not in the production tool involving five conditions? 

The first condition, its impact on the reduction of the budget deficit where according to the Finance Law of 2021 more than $21.75 billion in 2021, against the 2020 close of $18.60 billion and an overall projected treasury deficit of $28.26 billion, artificially, which is in principle filled by higher production and domestic productivity; to boost non-hydrocarbon exports and contribute to the establishment of a competitive market economy far from any monopoly, whether public or private. 

The State, as a regulator and guarantor of social cohesion, especially at a time of budgetary and tensions domestic and at our borders should enforce the contract between employers and employees so that the logic of profit does not undermine the dignity of workers. Nevertheless, never forget that the most incredible moral devaluation in any society is being unemployed or assisted. The important thing is not to work in the national, international or state-private sector, the critical thing for our children is to find a sustainable job within the framework of social protection.  

The second condition was a good preparation of a company X for privatisation, assuming transparent communication, as some executives and workers had heard the news in the press, which increased social tensions. Transparency is a fundamental condition for the acceptance of both the population and workers in the spirit of reforms linked to profound democratisation of society. The takeover of companies for executives and workers requires the creation of a risk bank to accompany them because they possess the technological, organisational and commercial know-how a hardcore of skills must constitute the basis of any reliable unit.  

The third condition will be to avoid filialisations that were not operating in the past—sticking with bureaucratic power, being the basis for the success of both the partial opening of capital and total privatisation, the wealth in the accounts being often undefining. Lack of an updated land registry poses the problem of the non-existence of reliable title deeds without which no transfer of ownership can be carried out. As there is an urgent need to have transparent real-time accountings of public, private companies, that meet international standards, all measures will be ineffective especially for stock market valuation the actual sale price varies from time to time.  

The fourth condition, time overlap of different institutions between selection, evaluations, tender notices, transfer to the stakeholders, then to the Government for the issuance of the final title of ownership would best be not arduous. It may discourage any takeover because mobile capital is invested only where economic and political obstacles are minimal. In this context, it is imperative that long bureaucratic circuits avoid a clearly defined synchronisation and that the current conflicting legal texts should be reviewed, which can lead to endless conflicts, hence the urgent need for their harmonisation with international law. Empowerment will need to be specified where it is necessary to determine who has it to request the undertaking of a privatisation operation. It is vital to prepare the transaction, to organise the selection of the purchaser, to authorise the conclusion of the transaction, to sign the relevant agreements and finally, to ensure that they are carried out correctly.

The four conditions for boosting the Algiers Stock Exchange 

In lethargy since its inception, the ASE was built up like a stadium without players through administrative injunctions, like all the loss-making state-owned enterprises.  

However, the revitalisation of the stock market implies three conditions

First,  the lifting of environmental constraints gives bureaucratic obstacles that cannot be a reliable purse without competition, avoiding legal instability referring to the rule of law.

Second, a stock exchange must be based on a renovated banking system. However, the Algerian financial system for decades has been the place par excellence for the distribution of the hydrocarbon rent and therefore a considerable challenge of power, and therefore the revitalisation of the stock market necessarily requires the overhaul of the financial system. Indeed, despite the number of private operators, we have a public economy with managed management, all activities whatever their nature feeding on budget flows, i.e. the very essence of financing is linked to the actual or supposed capacity of treasure. It can be considered that the banks in Algeria operate not from local market savings but by the recurrent advances from the Central Bank of Algeria that is refinanced by the public treasury in the form of reorganisation not only for the recent period but having to count the costs of restructuring between 1980/1990. This transformation is not in the scope of the company. However, it moves into the institutional field (distribution of the annuity hydrocarbons), and in this relationship, the Algerian financial system is passive. Bread 90% of these companies its returned to the starting box showing that it is not a question of capital money, real wealth can only assume the transformation of currency stock into capital stock, and there is the whole development problem. 

Thirdly, there can be no stock exchange without the resolution of all deeds circulating shares or bonds. The urgency of the integration of the informal sphere cannot be underestimated. Issuing title deeds is vital as there can be no reliable stock exchange without clear and transparent accounting modelled on international standards by generalising audits and analytical accounting in order to determine the cost centres for shareholders. This raises the problem of adapting a socio-educational system, which does not exist as financial engineering. The balance-of-payments services item with foreign exchange outflows between 2010/2019 is between $9/11 billion per year, in addition to foreign exchange outflows from import goods. There are a few rare exceptions; it turns out that accounts Algerian public and private companies from the most important to the simplest in the State that would not pass the most basic audits due diligence. For example, SONATRACH needs new strategic management like the majority of Algerian companies, with clear accounts in order to determine costs by sections, where we are witnessing the opacity of its management which is limited to delivering consolidated global accounts covering the essentials without distinguishing whether the surplus accumulated is due to exogenous factors, international prices or good internal management. As a primer, we propose partial privatisation of a few profitable national champions to initiate the movement to enable the establishment of a stock market index consisting of volume and quality, acting as incubators of companies eligible for the stock exchange and attracting investors looking for financing and know-how. 

The fourth condition is monetary stability and legal and monetary stability and the resolution of bad debts and debts, with state-owned banks crumbling under the weight of bad debts and the majority of state-owned enterprises in structural deficits, especially for the currency-denominated part involving transparent mechanisms in the event of exchange rate fluctuations. The simultaneous depreciation of the dinar against the Dollar, the main currency of exchange, does not respond to real values because their quotations are inversely proportional, has the essential aim of artificially filling the budget deficit, akin to an indirect tax. Indeed, on October 15, 2020, on the Stock Exchange, the Dollar is quoted at 1.2144 Euro, against 1.16 in June 2020, a depreciation of 5%, allowing a rise in the price of Brent by 5%. In reference to the June 2020 quote, the price of Brent quoted on December 15 at $50 would be $47.5 at constant prices, thus not having experienced a real increase in terms of purchasing power parity against the Euro and thus an increase in the import bill in euros in the same proportions. Thus, the current Government projecting for 2023 about 185 Dinar one Euro and 156 Dinars per Dollar and taking a 50% deviation from the parallel market we will have about 300 Dinars a minimum Euro in 2023 subject to the control of inflation otherwise the gap would be larger. They were compared to more than 200 Dinars in mid-December 2020 with a projection of 240/250 Euros at the end of 2021 in as to open borders and the inevitable increase in interest rates of the banks’ priorities to avoid their bankruptcies. In this case, it is illusory both to attract the savings of emigration via the banks that one wants to install with foreign exchange costs, as to capture the money capital via the informal sphere via Islamic finance. How do you want a trader with this monetary instability to appear on the stock exchange knowing that the value of the dinar will fall by at least 30% if not more in two to three years, depreciating its assets?.

In summary

The partial or total privatisation can be the process, with economic, social and political recompositions of power for a controlled liberalisation in order to avoid the squandering of public assets for the benefit of speculators interested mainly in real estate assets. It involves the transparency of specific objectives, the removal of bureaucratic obstacles, land, banks, the informal sphere, taxation, legal and monetary stability, essential criteria for any national investor.   

ademmebtoul@gmail.com

International Day for Tolerance

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The International Day for Tolerance is an annual observance day declared by UNESCO in 1995 to generate public awareness of the dangers of intolerance. It is observed on 16 November.

“Tolerance is respect, acceptance and appreciation of the rich diversity of our world’s cultures, our forms of expression and ways of being human.” UNESCO’s 1995 Declaration of Principles on Tolerance.

In 1996, the UN General Assembly adopted Resolution 51/95 proclaiming 16 November as International Day for Tolerance.

This action followed the adoption of a Declaration of Principles on Tolerance by UNESCO’s Member States on 16 November 1995. Among other things, the Declaration affirms that tolerance is neither indulgence nor indifference. It is respect and appreciation of the rich variety of our world’s cultures, our forms of expression and ways of being human. Tolerance recognizes the universal human rights and fundamental freedoms of others. People are naturally diverse; only tolerance can ensure the survival of mixed communities in every region of the globe.

In 1995, to mark the United Nations Year for Tolerance and the 125th anniversary of the birth of Mahatma Gandhi, UNESCO created a prize for the promotion of tolerance and non-violence. The UNESCO-Madanjeet Singh Prize for the Promotion of Tolerance and Non-Violence rewards significant activities in the scientific, artistic, cultural or communication fields aimed at the promotion of a spirit of tolerance and non-violence. The creation of the Prize has been inspired by the ideals of UNESCO’s Constitution that proclaims that “peace, if it is not to fail, must be founded on the intellectual and moral solidarity of mankind”. The prize is awarded every two years on the International Day for Tolerance, 16 November. The Prize may be awarded to institutions, organizations or persons, who have contributed in a particularly meritorious and effective manner to tolerance and non-violence.

MESSAGE FROM THE DIRECTOR-GENERAL

“At a time when extremism and fanaticism are unleashed too often, at a time when the venom of hatred continues to poison a part of humanity, tolerance has never been more vital a virtue.”

 — Audrey Azoulay, Director-General of UNESCO
on the occasion of the International Day for Tolerance

Download the full message in PDF format
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WHAT DOES UNESCO FOR TOLERANCE

HOW CAN INTOLERANCE BE COUNTERED?

1. Fighting intolerance requires law:

Each Government is responsible for enforcing human rights laws, for banning and punishing hate crimes and discrimination against minorities, whether these are committed by State officials, private organizations or individuals. The State must also ensure equal access to courts, human rights commissioners or ombudsmen, so that people do not take justice into their own hands and resort to violence to settle their disputes.

2. Fighting intolerance requires education:

Laws are necessary but not sufficient for countering intolerance in individual attitudes. Intolerance is very often rooted in ignorance and fear: fear of the unknown, of the other, other cultures, nations, religions. Intolerance is also closely linked to an exaggerated sense of self-worth and pride, whether personal, national or religious. These notions are taught and learned at an early age. Therefore, greater emphasis needs to be placed on educating more and better. Greater efforts need to be made to teach children about tolerance and human rights, about other ways of life. Children should be encouraged at home and in school to be open-minded and curious.

Education is a life-long experience and does not begin or end in school. Endeavours to build tolerance through education will not succeed unless they reach all age groups, and take place everywhere: at home, in schools, in the workplace, in law-enforcement and legal training, and not least in entertainment and on the information highways.

3. Fighting intolerance requires access to information:

Intolerance is most dangerous when it is exploited to fulfil the political and territorial ambitions of an individual or groups of individuals. Hatemongers often begin by identifying the public’s tolerance threshold. They then develop fallacious arguments, lie with statistics and manipulate public opinion with misinformation and prejudice. The most efficient way to limit the influence of hatemongers is to develop policies that generate and promote press freedom and press pluralism, in order to allow the public to differentiate between facts and opinions.

4. Fighting intolerance requires individual awareness:

Intolerance in a society is the sum-total of the intolerance of its individual members. Bigotry, stereotyping, stigmatizing, insults and racial jokes are examples of individual expressions of intolerance to which some people are subjected daily. Intolerance breeds intolerance. It leaves its victims in pursuit of revenge. In order to fight intolerance individuals should become aware of the link between their behavior and the vicious cycle of mistrust and violence in society. Each one of us should begin by asking: am I a tolerant person? Do I stereotype people? Do I reject those who are different from me? Do I blame my problems on ‘them’?

5. Fighting intolerance requires local solutions:

Many people know that tomorrow’s problems will be increasingly global but few realize that solutions to global problems are mainly local, even individual. When confronted with an escalation of intolerance around us, we must not wait for governments and institutions to act alone. We are all part of the solution. We should not feel powerless for we actually posses an enormous capacity to wield power. Nonviolent action is a way of using that power-the power of people. The tools of nonviolent action-putting a group together to confront a problem, to organize a grassroots network, to demonstrate solidarity with victims of intolerance, to discredit hateful propaganda-are available to all those who want to put an end to intolerance, violence and hatred.

RESOURCES

Digital Democracy vs Techno-Authoritarianism

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DemDigest of October 7, 2020, posted Digital democracy vs techno-authoritarianism as an ‘Existential crisis’ for Chinese firms

The spread of China’s “techno-authoritarianism,” its pursuit of the “innovation advantage,” and its incompatibility with the liberal democratic model is the focus of a new report. The underlying dynamics and tensions between markets, non-state actors and governments are compelling governments to pursue strategic alliances and partnerships, and the inherent ideological differences between the Chinese system and those of open market, liberal democracies will influence outcomes, argues analyst Alex Capri.

The linkage of technology to fundamental ideological values has become a defining issue in the global technology landscape. The authoritarian use of data and artificial intelligence (AI) to conduct censorship, surveillance and mass monitoring of populations is in direct conflict with democratic standards regarding privacy and freedom of expression, he writes for the Hinrich Foundation: 

Beijing’s imposition of the national security law in Hong Kong, as well as its internment of ethnic Muslim minorities in China’s western Xinjiang autonomous region, were just several of the latest provocations causing European policymakers to rethink relations with China. Thus, for Beijing, it has become increasingly difficult to find sympathy in Europe regarding Washington’s 
campaign to crush Huawei….New partnerships, including the Global Partnership on Artificial Intelligence* (GPAI) and the G7 AI Initiative, that are designed to guide the liberal and transparent development of AI, stand in contrast to China’s export of techno-authoritarianism.

Coalition of the willing?

The Clean Networks program, that seeks to expunge Chinese technology from carrier networks, data storage, mobile apps, cloud networks and undersea cables, has created an existential crisis for Chinese companies, which  are increasingly viewed as de facto proxies of the Chinese Communist Party (CCP), Capri adds. In the broader context of a US-China technology cold war, Chinese companies’ linkage to Beijing has relegated them to the status of malign actors.

A question that has begun to circulate in trade policy circles is: could a coalition of willing nations form a new global trade institution with standards that require open market principles and democratic ideals? RTWT

*The subject of a recent report from the NED’s International Forum.

In “Artificial Intelligence and Democratic Norms,” the fourth in the  “Sharp Power and Democratic Resilience” series from the International Forum for Democratic Studies, Nicholas Wright explores how to establish democratically accountable rules and norms that harness the benefits of artificial intelligence-related technologies, without infringing on fundamental rights and creating technological affordances that could facilitate authoritarian concentration of power.

A New Approach to Stalled State Transformations in Iraq and Yemen

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Chatham House in this research paper titled Between Order and Chaos: A New Approach to Stalled State Transformations in Iraq and Yemen, Dr Renad Mansour, Research Fellow, Middle East and North Africa Programme, Chatham House (@renadmansour) and Peter Salisbury, Senior Consulting Fellow, Middle East and North Africa Programme (@peterjsalisbury) say that International policymakers have failed to stabilize states such as Iraq and Yemen, partially because of the assumed binary distinction between state failure and success. This paper advocates for a ‘middle–out’ approach that aims to strengthen the connectivity between the bureaucracy and de facto authorities.

The Summary of this paper dated 9 September 2019 is reproduced for all intents and purposes below and the paper can be read online or as a Download PDF (opens in new window)

  • In the Middle East and North Africa, a growing number of internationally recognized (de jure) states with formal borders and governments lack de facto statehood. Often, governance vacuums are filled by alternative actors that perform state-like functions in place of, or alongside, weakened official institutions. This results in hybrid orders where the distinction between formal and informal actors in the state is blurred, as too are the lines between the formal, informal and illicit economies.
  • International policymakers have struggled to establish political settlements in these contexts. Would-be state-builders have mistakenly assumed a binary distinction between state failure and success. They have sought to recreate an idealized archetype of the ‘orderly’ state, critically failing to recognize the more complex networks of de facto actors on the ground. At times, international policymakers pick or support leaders who lack local legitimacy, capability and power. This stalls and fragments ongoing organic state transformations, and produces hybrid orders as de facto actors adapt by both capturing state institutions and creating parallel ones.
  • We propose a new model for understanding the fragmentary transformations of the state underway in Iraq and Yemen. It involves the concept of a multi-layered state, consisting of the executive, the formal bureaucracy, the de facto authorities and society at large. The gap in legitimacy, capability and power between the middle two layers in this model – the formal bureaucracy and the de facto authorities – is a critical source of instability and an impediment to reform. Bridging that gap is thus the key to effective peacebuilding and/or state-building.
  •  This paper argues that all states lie along a chaos–order spectrum. No state is entirely chaotic or orderly. Even those that display many features of chaos – as in Iraq and Yemen – contain pockets of order that are all too often overlooked. The larger the gap between the formal bureaucracy and the de facto authorities, the more a state slides towards the chaos end of the spectrum. Effective state-building must find a way of institutionalizing improvised governance arrangements.
  •  To achieve this, we advocate a ‘middle–out’ approach that aims to strengthen the connective tissues between the bureaucracy and de facto authorities. Simplified, this more inclusive approach entails reframing international involvement as playing the role of a ‘referee’ to monitor the transformations of the state while enforcing accountability, as opposed to the practice of picking ‘winners’ and integrating unfavoured actors into unpopular political settlements.