Philippa Kaur

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    in US Politics

    Elizabeth Warren's wealth tax would reduce inequality – the problem is it's probably unconstitutional

    Sen. Elizabeth Warren says it’s time to tax wealth.
    The Massachusetts senator on March 1 introduced a bill to tax households worth over US$50 million and up to $1 billion at a rate of 2%, and anything over that at 3%. She first proposed the idea of a wealth tax during the Democratic presidential primary in 2019.
    The legislation, which could raise an estimated $3 trillion over a decade, is meant to reduce inequality by using revenue from the wealthiest Americans to pay for new federal programs to lift up some of the poorest.
    There’s at least one problem: It may be unconstitutional.

    As an expert on tax policy, I know firsthand how America’s system has exacerbated inequality. Fortunately, there are other ways to tax the rich.
    Income and wealth inequality
    Concerns about inequality have increased in recent decades.
    Americans enjoyed substantial economic growth and broadly shared prosperity from the end of World War II into the 1970s.
    But in the 1980s, President Ronald Reagan dramatically slashed taxes on the wealthy – twice – cutting the top rate on wages from 70% to 28%.
    Studies have shown that the drop in tax rates, combined with other “trickle-down” policies such as deregulation, led to steadily rising income and wealth inequality.
    The wealthiest 1% controlled 39% of all wealth in 2016, up from less than 30% in 1989. At the same time, the bottom 90% held less than a quarter of America’s wealth, compared with more than a third in 1989.

    Currently, the federal government taxes all income above $518,400 at 37% with an additional 3.8% investment tax on incomes over $250,000.
    The problem with a wealth tax
    Warren’s wealth tax aims to change that.
    Her tax on estates worth over $50 million would affect an estimated 100,000 families, or fewer than 1 in 1,000, according to University of California, Berkeley economists Emmanuel Saez and Gabriel Zucman. The tax wouldn’t start until 2023.
    Unlike an income tax, a wealth tax reaches the root of both wealth and income inequality.
    There’s only one snag: There are strong arguments that a federal wealth tax is unconstitutional. Wealth taxes violate Article I, Section 2, Clause 3, of the U.S. Constitution, which forbids the federal government from laying “direct taxes” that aren’t apportioned equally among the states.
    A direct tax is a tax on a thing, like property or income. An indirect tax is a tax on a transaction: for example, a sale or a gift.
    The income tax is a direct tax and constitutional because of the 16th Amendment, which specifically allows income taxes without apportionment. As for property, you may notice that only states levy real estate taxes. In almost every case, the federal government cannot tax real estate or any other form of wealth absent a transaction.
    Warren cites a small group of law professors who back her claim that a wealth tax passes constitutional muster. But the argument against constitutionality is strong enough that a lawsuit before the Supreme Court is sure to follow any attempt to enact a wealth tax.
    Barring a victory before a conservative Supreme Court or an arduous amendment to the Constitution, the federal government is shut out of taxing wealth.
    Two other proposals
    Two other proposals to tax the rich also emerged in 2019.
    Rep. Alexandria Ocasio-Cortez of New York wanted to create a new “60% to 70%” tax bracket for income earned from labor over $10 million. She estimated that her plan would catch about 4,000 people and raise $720 billion over 10 years.
    One problem with that idea was that the wealthy can avoid or lower that tax by choosing when they receive the income. A second is that the rich earn most of their money from capital gains, which are taxed at a much lower rate than wage income.
    Vermont Sen. Bernie Sanders, who has since signed on to Warren’s plan, in 2019 proposed going after wealth but targeted instances when it’s being transferred to someone else – which is what makes it constitutional. He wanted to lower the threshold at which the estate tax applies from $11 million – which touches just 1,000 estates a year – to $3.5 million, where the threshold stood in 2009. He would also levy a new 77% rate on estates over $1 billion. Sanders estimated that his plan would raise $315 billion over 10 years.
    Although this would bring in significantly less than his colleagues’ proposals, it is far superior because it both addresses the root of the problem – wealth disparities – and can be implemented immediately. And it wouldn’t pose a constitutional problem.
    A rising tide
    I agree with all three lawmakers that the United States should return to economic policies that seek to lift all boats.
    Although American wealth and productivity has surged in the last 40 years, most Americans have not fared nearly as well as the richest have. In 2020 alone, America’s billionaires saw their wealth increase $560 billion, even as tens of millions were unemployed or depended on food donations to get enough to eat.
    The U.S. tax system is at least partly responsible for these gaps. A wealth transfer tax – rather than one that taxes wealth – seems to be the best approach to both pass legal muster and help solve the problem.
    This is an updated version of an article first published on April 2, 2019. More

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    in World Politics

    Is the US Back Under Biden?

    Caligula was by all accounts a nasty piece of work. During the nearly four years that he ruled over the Roman Empire in the first century CE, Caligula was notorious for sexual predation and extravagant spending. Never one to sell himself short, he proclaimed early on that he was a god. He held the Senate in such contempt that he forced its high-ranking members to run alongside his chariot for miles dressed in their togas. He dismissed Virgil as a hack writer and Livy as a dispenser of fake history, and he dreamed of making his favorite horse a consul.

    He was also inordinately fond of killing people, sometimes only to seize their assets. Or because he was bored, like the time at a gladiatorial contest when there were no criminals to execute during the intermission. Thinking fast, the despot ordered his guards to throw an entire section of the audience into the arena to be devoured by wild animals.

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    The world’s most powerful empire suffered four years of unbounded narcissism from a man with a reputation for sexual assaults and a fondness for cruelty who disparaged everyone in sight. Sound familiar?

    The one member of his close circle whose life Caligula spared was his uncle Claudius, primarily to make fun of the older man, who was lame and stammered. But “Sleepy Claudius,” particularly as depicted in the two historical novels of Robert Graves and portrayed by Derek Jacobi in the hit BBC series, was a crafty fellow who knew how to survive the deadly game of Roman imperial politics. When the Praetorian Guard finally had enough of Caligula and assassinated him — with the support of the political elite — Claudius was found hiding behind the curtains in the palace and proclaimed the new emperor.

    Claudius went on to rule for 13 years. Despite being absent-minded and scatter-brained, he proved to be far more capable than most Romans anticipated. The new emperor restored the rule of law throughout the empire. He stabilized the economy, embarked on an ambitious plan to improve the infrastructure of the realm, and even expanded its reach in the Balkans, North Africa and far-off Britain.

    Joe Biden, similarly underestimated because of his stammer and meandering speeches, has channeled Claudius in his first month in office. With a flurry of executive orders, the new US president has quickly reversed some of the most damaging policies of his deranged predecessor. Facing both a pandemic and an economic crisis, he is restoring confidence in government with a rapid vaccination rollout and a large-scale stimulus package. He has plans for big policy initiatives around infrastructure, energy and immigration.

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    But, of course, not everyone was thrilled with Emperor Claudius, particularly those on the Roman periphery. The British, for instance, chafed under imperial rule. Their escalating anger culminated in the bloody but ultimately unsuccessful revolt of Queen Boudica in 60 CE. Not surprisingly, Biden too has faced his share of criticism, particularly among those on the receiving end of American power or those who’ve bristled at the fickleness of American leadership.

    America’s Caligula is still around, perhaps even harboring hopes of a return to power in 2024. In the meantime, what are we to make of America’s Claudius and his effort to bring stability to the American empire?

    Biden Makes Nice with the World

    The Biden administration has gone into overdrive in its efforts to rejoin the international community as a member in good standing. On February 19, the United States officially reentered the 2015 Paris climate agreement, while Special Envoy John Kerry has pledged to restore the $2 billion for the Green Climate Fund that the US promised under Barack Obama but never delivered. The administration has rejoined the World Health Organization, signed up for the COVID-19 Vaccines Global Access (COVAX) program and promised to disburse the $4 billion that Congress appropriated for COVAX at the end of 2020. Biden reversed some of former President Donald Trump’s most noxious immigration policies, shutting down construction of the wall on the southern border, ending the “Muslim travel ban” and beginning to bring the country back into compliance with international norms around refugees and asylum-seekers.

    The Biden administration has also pledged more cooperative relations with NATO allies, Pacific partners and democratic countries more generally. It rejoined the UN Human Rights Council as an observer and restored funding for the UN Population Fund. It began the process of reviving the Iran nuclear deal, restarted relations with Palestinian organizations, embarked tentatively on restoring better relations with Cuba, extended New START with Russia and stopped funding the Saudi-led war in Yemen. Not bad for one month’s work.

    President Biden’s moves have encountered inevitable challenges, both domestic and foreign. The Senate, as I explained in my last column, has been perhaps the major check in American politics on an authentic internationalism. Not surprisingly, some Republicans in the Senate are already trying to undermine US involvement in the Paris climate agreement, and they’re sharpening their knives to attack renewed engagement with Iran and with Cuba.

    Some allies, too, are not fully on board with Biden’s great reset. France would prefer to invest more in an independent European security system and rely less on NATO. Germany is not interested in a full-court press on Russia and hopes to strike a compromise with the Biden administration that would allow it to stay on schedule with its Nord Stream 2 gas pipeline deal with the Kremlin. Japan and South Korea are squeamish about the trilateral coordination that the United States is (again) promoting, relations with Turkey are tense and Israel is unhappy with Biden’s restoring US ties with Palestine.

    But the real problem with the president’s new approach to the world lies not in the resistance it has engendered at home or the ambivalence it has fostered abroad. It lies with the very nature of Biden’s foreign policy.

    The Stick

    The amount of damage that Trump did to the world was limited to a certain extent by his incompetence. He could have blundered into another war if his advisers had let the presidential id run wild. If he’d had a Stephen Miller to do to foreign policy what this savvy operator did to immigration, Trump might well have permanently damaged the global system.

    Embed from Getty Images

    Biden, meanwhile, has assembled a thoroughly competent team of professionals — from Secretary of State Antony Blinken and UN Ambassador Linda Thomas-Greenfield to climate czar John Kerry and Deputy Secretary of State Wendy Sherman. That competence is a godsend when it comes to navigating the intricacies of the Iran nuclear deal and the Paris climate negotiations.

    But when it comes to the less pleasant aspects of US foreign policy, that competence might prove deadly. Claudius, it turned out, was not a feeble dotard. He knew exactly how to deploy Rome’s imperial might to finish the job Caligula had started in conquering Mauritania and to extend the empire’s dominion to the westernmost reaches of Europe. If the Biden administration decides to ramp up confrontation with China in the South China Sea, for instance, his team might very competently — and disastrously — marshal US allies in the region to implement the plan.

    Pax Romana was largely an enforced peace rather than a negotiated one, and Pax Americana has always relied on the overwhelming predominance of US military power. Already, the Biden team has stated its desire to focus on great power rivalry with China and Russia rather than losing propositions like the war in Afghanistan. That preference will translate into a continuation of bloated military budgets, large arms deals with allies and sort-of allies on the periphery of China and Russia, and the deployment of various economic strategies like sanctions to influence the behavior of these perennial competitors.

    In his early days in office, Biden has been quick to emphasize the role of diplomacy, promising that force will be the “tool of last resort.” A dramatic example of that approach has been the absence of any drone strikes during the first month of the administration. This is in marked contrast to the strikes that Obama and Trump ordered almost immediately upon taking office as well as the escalation in attacks that took place in Trump’s final months. Only one airstrike has been reported, in Iraq on February 9 against the Islamic State. (Editor’s note: This article was written prior to the US airstrike in eastern Syria on February 25.) In addition to initiating a review of drone strikes, the administration has launched a probe into Special Forces operations to ascertain whether they have adhered to the Pentagon’s “law of war” requirements. This is all very promising. But will it last?

    Claudius was content to be successful within the Roman imperial framework. Guilty of his own excesses of violence, he never tried to turn the empire back into a republic or negotiate a new set of relations with Rome’s far-flung possessions. He knew only to expand. Biden, too, operates within the existing system of American dominance. It remains to be seen whether he will dramatically reduce the US military footprint and work with other major powers to redefine international relations at a time of multiple global crises.

    If he doesn’t, America will risk the same fate that befell Rome after the death of Claudius. In 54 CE, a new emperor took power who made Caligula look like a cub scout. This latest Caesar made sure that the good that Claudius did during his 13-year reign was indeed interred with his bones. “Nero practiced every kind of obscenity,” writes the gossipy chronicler Suetonius, adding that the new emperor “annulled many of Claudius’ decrees and edicts, on the grounds that he’d been a doddering old idiot.”

    The trick, then, is not just to reverse the evils of one’s predecessor but to make those reversals stick. That, in turn, will require not just quick fixes but turning the United States into a truly cooperative world power.

    *[This article was originally published by FPIF.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The COVID-19 Crisis Has Catalyzed Vision 2030

    A look back at history shows that desperate times do indeed call for desperate measures. After all, it was not until Saudi officials watched in horror as oil prices plummeted by 70% that, in 2016, Vision 2030 was born. While other Gulf Cooperation Council (GCC) members presented their own initiatives, true to form, Saudi Arabia’s economic reform agenda is the most ambitious yet. 2020 was set to mark the agenda’s first benchmark achievement. Instead, an oil price war, a disastrous bombing campaign against Yemen and a 5.4% contraction in GDP set a different tone than the kingdom may have intended.

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    The disruption ensued by the COVID-19 pandemic wreaked havoc on economies and markets worldwide, but none saw the eye-watering lows experienced by the oil industry. This was exacerbated by Saudi Arabia and Russia going head-to-head in a price war that brought about further carnage. Despite production cuts being eventually agreed upon, the global downturn and persistent oversupply of oil reached its crescendo with US oil dropping spectacularly into negative for the first time in history.

    Progress Overview

    As the dust began to settle, a sense of urgency set in among leaders as they were faced with the aftermath of the crisis. Not only did COVID-19 highlight the risk of oil dependency, but it has further exposed oil-exporting economies to fiscal vulnerabilities. With growth contractions across the MENA region, the current price of oil is far below the break-even level required to balance the budgets. With the exception of the UAE, oil represents over 50% of GCC budgets, highlighting the urgency to diversify in order to pay off the fiscal bill. While the impact of COVID-19 on Vision 2030 is unclear, an analysis of existing achievements and overall aims can paint a clearer picture of how Saudi Arabia should reassess its grand plan in light of the pandemic.

    Embed from Getty Images

    Only a year after the announcement, it seemed that Vision 2030 was not enough to satiate the Saudi appetite for grandiose ideas. So, in 2017, Crown Prince Mohammed bin Salman announced the construction of a $500-billion smart city of NEOM. Aside from talk of a fake moon and flying cars, the Saudis managed to hit a more palpable note with investors with the city’s $5-billion green hydrogen plant. By 2025, the facility will supposedly produce 650 tons of hydrogen daily and 1.2 million tons of green ammonia for export.

    Despite the challenges hydrogen fuel presents, this project offers Saudi Arabia an unparalleled opportunity to pioneer a market gaining “unprecedented political and business momentum,” according to the International Energy Agency. Beyond this, while there is little publicly available information on the kingdom’s key performance indictor achievements, visible progress has been made in the one thing it does best — state-managed tasks. Notable regulatory reforms in 2018-19 earned Saudi Arabia a spot in the World Bank’s top 10 global business-climate improvers.

    Strong development has also been observed in capital markets and the banking system, whereby the growth of Tadawul, the Saudi stock exchange, has been the standout achievement. Such praiseworthy steps have also been accompanied by progress in the realm of digitization and social reforms. Yet this is not enough.

    While the kingdom is certainly achieving its goal of being an ambitious nation, less can be said for its key pillar — a thriving economy. Job creation, foreign direct investment (FDI), entrepreneurship and private sector growth are all core areas where Saudi Arabia has fallen short. A recent string of PR disasters, like the murder of Washington Post journalist Jamal Khashoggi in 2018 and the 2017 high-profile purge that included the arrest of 11 senior princes, have further tainted the kingdom’s image, harming investor confidence. At mere 0.57% of GDP, current FDI levels are simply not enough to fund the diversification plan.

    Needless to say, the economic challenges spurred by the pandemic will require a tightening of the Saudi purse strings to rein in the growing budget deficit. Such fiscal prudence will inevitably impact the ever-more necessary reform agenda, indicating that a stringent revaluation of the Vision 2030 objectives will be needed to deliver on its promises.

    The To-Do List

    To lay the foundations of their revised plan, the kingdom must first reprioritize spending and maximize income from existing revenue streams while attracting and retaining investor funding. This will require boosting FDI through greater transparency, accountability and generally better self-conduct on the international stage. In the longer term, focusing on strategically sound, high-impact projects while delaying those with little real-time value will be an integral step in the agenda’s revaluation.

    Much to Saudi Arabia’s dismay, this will mean moving away from the likes of NEOM to the less glamourous task of actual economic reform. Yet if NEOM were not enough, within it there is now The Line — a linear, AI-run city free of carbon, cars and any sense of realism. Regardless of its supposed economic benefits, the fact of the matter remains that problems are not solved through procrastination, even if it costs billions.

    Arguably the hardest yet most important step for Saudi Arabia will be to cede state control to make room for a diverse, competitive and independent private sector. The kingdom’s strategy of spreading itself thin across all sectors is not only inefficient, but unattractive. A more market-based approach will stimulate entrepreneurship, competition and, most importantly, draw in foreign investment.

    This ties into the second key step: optimizing the business environment. This means pushing for greater access to capital, greater ease of doing business and greater stringency and transparency in the legal system, encouraging entrepreneurship both at home and from abroad. The third and most important step is human capital development. In a country where 67% of the population is below the age of 34, disregarding the youth would mean neglecting Saudi’s greatest asset.

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    Quality of education and upskilling the youth must be prioritized alongside creating jobs suited to the existing workforce. The importance of human capital cannot be overstated: In order to create a successful economy that best serves the people, investing in its citizens must be the crux of Vision 2030.

    Finally, to reinvent itself as the business hub of the Middle East, the kingdom must rein in its regional military interventions, a massive burden on both its budget and international image. In order to truly convince investors, Saudi must actively channel its efforts away from conflict and toward long-term economic reform.

    On the whole, despite some notable achievements, progress is slow, and the Kingdom of Saudi Arabia has a long journey ahead. However, COVID-19 has prompted a much-needed agenda revaluation, revealing some shortcuts and pushing Saudi leaders to move with a greater sense of urgency. The Word Bank itself warns that “higher than expected oil and gas revenues could reduce the pressure for [GCC] governments to reform,” exemplified in Vision 2030 itself being the result of such a price shock. However, with the eye-watering oil price drops of 2020, COVID-19 may have been the rude awakening Saudi leaders needed.

    The challenge now lies in both pioneering change while stimulating an economy in a world experiencing the greatest recession since the Second World War. This, of course, is no easy feat, but the key to success will lie in focusing on projects that truly add value. This will mean ceding control to facilitate private sector growth, optimizing the business environment and committing to its citizens by investing in the youth. Only then can Saudi Arabia unlock its potential and become, as it envisions, the “epicenter of trade and the gateway to the world.”

    *[Fair Observer is a media partner of Gulf State Analytics.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    What an Afghan Peace Deal Could Look Like

    In a recent interview with the BBC, President Ashraf Ghani insisted that the condition for peace in Afghanistan depends on the condition of the war. First, according to him, Afghan security forces need international support due to intensifying violence by armed groups, including the Taliban. Second, without addressing Taliban sanctuaries in Pakistan, the situation with the conflict will not change. “My message is those who provide sanctuaries to the Taliban should be talked very straight,” he said. “There’s so many fears of collapse into civil war.”

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    His message is for the Biden administration to have serious talks with officials in Pakistan, the Taliban’s main supporter. Ghani added that the only way he would leave the office to compromise for peace is via an election, while the Taliban does not yet recognize elections as a legitimate political mechanism. The Taliban want Ghani to resign and for Afghanistan’s political system to change back to their Islamic emirate of the 1990s or something similar to it.

    The Doha Deal

    Since the first round of the intra-Afghan peace talks in September 2020, violence in Afghanistan has intensified, while the negotiations resumed just last week after a six-month delay. The Doha deal, signed by the Taliban and the Trump administration early last year in Qatar, has failed to stop the violence in the country. Shortly after his inauguration in January 2021, US President Joe Biden launched a review of the Doha deal to determine whether the Taliban have upheld their commitments to cut ties with other militant groups and engage in meaningful peace talks with the Afghan government.

    Pakistan has urged the Biden administration to “persevere” with the Doha agreement and not attempt to amend it. The deal gave the Taliban the upper hand and undermined the Afghan government. The agreement excluded the Afghan government and allowed the Taliban to gain legitimacy, while also mandating that US and NATO troops leave the country within 14 months if militants uphold their end of the bargain. For Pakistan, while this is a step in the “right direction” for peace talks, as per Foreign Minister Shah Mahmood Qureshi, it also enhanced the Taliban’s position and made regime change in Kabul a real possibility.  

    Embed from Getty Images

    Although the war has a complicated domestic dimension, it is effectively a proxy conflict that Pakistan has waged against the Afghan government amidst perceived Indian influence in Afghanistan. From Pakistan’s point of view, Afghanistan has changed into an Indian playground and the Taliban are the only force that can secure Pakistani interests. As a result, the Afghan peace process also has a complicated regional dimension.  

    At the same time, the Taliban’s ideological system has proved to be inflexible for a democratic process that upholds citizens’ rights, leading to concerns about the Taliban seeking to build a new regime based on discrimination. Considering the strategic nature of proxy war, the history of Afghanistan and Pakistan, and the Taliban’s ideology, the following four scenarios are conceivable if the Biden administration underestimates the situation.

    Scenario 1: A Civil War Without the Government

    The Taliban insurgency has reduced the government’s territorial control, limiting it to urban cities and district centers. This has increased the likelihood of Taliban attacks on large cities.

    In the first scenario, the Taliban would seek to conquer and control through violence, leading to the collapse of the government and a descent into all-out civil war. In such a situation, the ground is prepared for mass atrocities due to ethnic tension, poverty and the presence of other militias, such as the Islamic State-Khorasan, an affiliate of ISIS. Just imagine the war affecting cities like the capital Kabul with millions of people. Political crises are rife in Afghanistan, which would be exacerbated by the early withdrawal of NATO forces. Therefore, the pullout of foreign troops according to the Doha agreement’s timetable is a cause for alarm. Under the deal, all US and NATO troops are scheduled to leave the country by May 1.

    This scenario is more likely to happen if the government is dismantled in the absence of a comprehensive peace agreement between the Afghan officials and the Taliban. There are growing calls for Ghani to step down to pave the way for an interim government that includes the Taliban. However, an interim administration without the presence of a peace deal — one that includes mechanisms to ensure it is upheld — is risky. Such a scenario makes it hard to keep the Afghan security forces united if another round of violence erupts under an interim administration. This would be especially the case if the international community does not have a strategy for securing such a fragile peace arrangement.

    Scenario 2: A Civil War Despite the Government

    Another danger is that the withdrawal of US and NATO forces will take place without a peace agreement between the Afghan government and the Taliban. In this scenario, the government would not completely collapse if it mobilizes anti-Taliban forces and receives foreign support, but violence would spread from rural areas to populated cities.

    As a result, government officials would retreat to an area outside Kabul and continue their fight against militants as long as they have international recognition and receive support from foreign powers — possibly India, Russia and Iran. This situation is similar to what President Burhanuddin Rabbani’s government faced in the 1990s amidst an insurgency by Taliban militants. That administration withdrew from Kabul but continued its role in the conflict and retained international backing.

    In the second scenario, the war takes on a local context, with violence in pockets around the country. In order to survive, the government would ally with local forces. The government would not have the ability to mount a viable challenge against the Taliban and other armed groups, and its role would largely be reduced to a symbolic one. At the same time, it would be extremely hard for the Taliban to conquer the whole country. Anti-Taliban forces — from the constituency of the old Northern Alliance — would still fight them.

    Scenario 3: Parallel Balance With the Government

    In the third scenario, the Taliban challenge the government through greater territorial control and contestation, but the government would not completely collapse. Instead, it would retain control of large cities and many other areas.

    An example of a parallel balance is Hezbollah in Lebanon, where the Shia organization has both political and military wings. In practice, however, the Taliban have already achieved this by controlling 75 of 405 districts in Afghanistan and contested another 189. As soon as a ceasefire is reached, as per this scenario, the political landscape of some districts under Taliban control and others under government authority would be officially recognized.

    Interestingly, both the government and the Taliban are not in favor of such a situation. The Taliban want complete control of Afghanistan, while the government wants the Taliban to be integrated into the current political system. Under this scenario, international assistance to the Afghan government could continue, but without Pakistan’s cooperation, nothing would change and the Taliban would push on with their insurgency. This scenario is likely if the US and other NATO members continue their support for the government.  

    Scenario 4: Maximum Balance From Within, But Without the Government

    In the final scenario, military and political pressure is exerted on the government to accept a fragile peace agreement that meets the Taliban’s demands. The Taliban impose their type of political system, which gives them religious legitimacy and allows them to influence other political and social forces. A peace deal under the Taliban’s terms would enable them to eventually take over — or have the upper hand in — the legislature and the judiciary system. Besides, the Taliban are estimated to have tens of thousands of fighters and, under such a peace deal, they would either join the security forces or remain armed as parallel forces ready to take action, if necessary.

    This scenario may seem like a soft conquest, but it could easily turn violent. The international community’s departure from Afghanistan and the unrealistic optimism about the Taliban’s ideological position and proxy relations may contribute to such a situation. Pakistan supports this version of a peace agreement to place the Taliban in Afghanistan’s polity to have a dominating position. This scenario is not acceptable for many people in Afghanistan and could create a fragile situation that would likely lead to violence at some point.

    Moving Forward for a Durable Peace

    A durable peace arrangement is only likely when both sides consider several key factors. These include what a possible peace agreement would look like, its implementation, what the future political system would involve and how citizens’ rights are ensured.

    First, there is a need to put pressure on Pakistan to take action against Taliban sanctuaries inside that country. At the very least, Pakistan must ensure there is a reduction in violence and that the Taliban are flexible when it negotiates with the Afghan government. Otherwise, it is hard to imagine a sustainable peace in the context of a proxy war. At the same time, Afghanistan should be neutral when it comes to regional politics, and its future should not depend on the rivalry between India and Pakistan.

    Second, a power-sharing process with the Taliban should be based on transparency. A peace agreement must be mutually agreed and include multiple stages of implementation and international monitoring. However, a power-sharing arrangement should be part of the peace agreement, not the other way around. The implementation of power-sharing before a peace agreement is highly risky and could lead to the collapse of the political order.

    Third, citizens’ and women’s rights and democratic legitimacy should be the basis of the future political system. Otherwise, in a country as diverse as Afghanistan, sustainable peace is not possible.

    Fourth, a political system that focuses on the separation of powers is necessary. Ensuring that political power is not concentrated in one party’s hands, such as the Taliban’s, would protect Afghanistan from the misuse of power.

    Therefore, to ensure peace in Afghanistan and the responsible withdrawal of foreign troops, it is crucial for the Biden administration to consider the implication of the war’s proxy dynamics on peacemaking efforts. When it comes to the domestic context, without considering the country’s sociopolitical diversity and citizens’ rights, it would be extremely hard to think about lasting peace.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Serious Politics Is Not About Recalibration

    Donald Trump’s brand of hyperreality over the past four years relied heavily on melodramatic plotting to keep the audience invested in the performance. To reestablish the more sober style of hyperreality the Democratic Party as an ideological force has come to represent, US President Joe Biden has cultivated the Democrats’ artificial style of neo-realism in its approach to political conflict. The Biden administration’s rhetorical creativity offers some insight into how this hyperreality is intended to play out.

    Trump, the former US president, typically chose an easy media strategy. He would disregard all existing standards, preferring to bully and shock. He relied on the public’s acceptance of the notion that — as he once said about himself — he could get away with murder in the middle of Fifth Avenue. (This paralleled his boast about women, whom he would grab in their private parts when he tired of shooting men in broad daylight.)

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    Biden has inherited a different, more “presidential” role. Independently of the policies he adopts, he finds himself having to exaggerate the contrast with Trump by at least seeming to reflect on complex issues, weighing the pros and cons and engaging in thoughtful deliberation on the same topics that Trump typically bulldozed his way through. After all that deliberation, the result tends to differ more in style than in substance.

    The Daily Devil’s Dictionary recently considered the case of Trump’s sanctions against Fatou Bensouda and the International Criminal Court (ICC). Biden has found himself in the awkward position of having to reaffirm the nation’s traditional refusal to be judged for war crimes while, at the same time, recognizing the legitimacy of the actions of the ICC so impudently denied by Trump. Now, Biden has a similar juggling act to carry out with Saudi Arabia after his director of national intelligence, Avril Haines, followed the prescribed democratic logic of obeying a command made by Congress that Trump had simply refused to acknowledge. It concerned the release of the CIA’s assessment of Saudi Crown Prince Mohammed bin Salman’s (MBS) role in the murder of Jamal Khashoggi, a Saudi journalist working for The Washington Post.

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    Trump chose to shield the perpetrators from any form of judgment. After all, Saudi Arabia spends hundreds of millions on American weapons. After showing such virtue, what crime could they possibly be accused of? Biden had to find a way of countering Trump while reaffirming America’s commitment to the ideal of even-handed justice. It is all in the name of preserving “American interests” (which everyone by now should know means simply money and geopolitical influence).

    The Washington Post explains how Biden has accomplished that mission: “The Biden administration will impose no direct punishment on Saudi Arabia’s Crown Prince Mohammed bin Salman for the 2018 murder of Saudi journalist Jamal Khashoggi, despite the conclusion of a long-awaited intelligence report released Friday that he ‘approved’ the operation, administration officials said.”

    When the press corps confronted Biden’s press secretary, Jen Psaki, questioning her over whether MBS could be “sanctioned personally,” she responded that something would be done, though without any indication of what that might be. She nevertheless offered this explanation, while insisting twice on the word “clear.” She said, “the president has been clear, and we’ve been clear by our actions that we’re going to recalibrate the relationship.” What could be clearer than the totally objective, scientific notion of recalibration?

    Today’s Daily Devil’s Dictionary definition:

    Recalibrate:

    Redefine a policy or relationship in such a way as to make the undermining of any existing moral principles appear justified in the pursuit of selfish interests

    Contextual Note

    Most Americans consider cold-blooded murder a moral fault as well as a criminal act. The idea of dealing with it by recalibrating a relationship might sound to some like a sick joke. How many people on death row in the US wouldn’t welcome the idea of recalibrating their relationship with the justice system? Considering that most of them — a majority of blacks, some of them later proven innocent — have not have benefited from the kind of rigorous investigation the Turkish government and the CIA carried out concerning the Khashoggi murder, the leniency of recalibration would certainly interest them.   

    The Guardian notes a slight contradiction with the moral stance Biden took concerning the Khashoggi murder during the campaign: “The decision to release the report and expected move to issue further actions represents the first major foreign policy decision of Joe Biden’s presidency, months after he vowed on the presidential campaign trail to make a ‘pariah’ out of the kingdom.” 

    This recalibration of attitude illustrates an interesting phenomenon in politics: the freedom opposition politicians have to invoke what resembles the truth followed by their tendency to equivocate as soon as they have their hands on the reins of power. “Recalibrate” deserves to be voted the Orwellian Newspeak word of the year.

    Historical Note

    To put things in perspective, Secretary of State Antony Blinken explained: “The relationship with Saudi Arabia is bigger than any one individual.” A lot of Americans, from Henry Ford to Joseph Kennedy and some of the most prominent US companies — IBM, Coca-Cola, Chase Manhattan, General Electric, Kodak, Standard Oil and Random House among others — felt exactly the same way about Nazi Germany. Why compromise a productive relationship simply because one man spouts heterodox ideas and has a tendency to kill people in the name of those ideas?

    The Washington Post quotes Blinken invoking Jen Psaki’s “recalibration” trope. In his press conference, he praised Joe Biden for moving “toward a promised ‘recalibration’ of the U.S.-Saudi relationship.” Oddly, the secretary of state seems to have forgotten that it wasn’t “one individual” who carried out the assassination, but a team of 15 who flew in and out of Istanbul for this specific effort.

    The Guardian realistically described how Mohammed bin Salman’s team culture works: “Prince Mohammed had ‘probably’ fostered an environment in which aides were afraid that they might be fired or arrested if they failed to complete assigned tasks, suggesting they were ‘unlikely to question’ the prince’s orders or undertake sensitive tasks without his approval.” As Hamlet once said of Denmark, “something is rotten in the state.” Like Biden and Blinken, Hamlet was reacting to a high-profile murder. Part of his quandary was that it wasn’t just about “one individual,” even though the Danish prince was focused on the man — his uncle — who had killed his father. 

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    As a political metaphor, the idea of recalibration may appear reassuring to some people thanks to its scientific ring, expressing an engineer’s objectivity in seeking to work with the most accurate measurements. But does it make any sense when what is at stake is a moral question, in this case literally of life and death? Or should we conclude that, for those who practice it, there are no moral questions in politics, only pragmatic ones, only questions that can be decided according to the unique criterion of “national interest?”

    The COVID-19 pandemic has demonstrated the limits of purely “national” reasoning. The awareness of those limits will inevitably be challenged again over the next decade by the impending drama of climate change, possibly other pandemics and another global economic crash. The question of supply chains that the US encountered at the outbreak of the pandemic in 2020 and now concerning semiconductors demonstrates the absurdity of a world that has made sacrosanct the status of the nation-state. 

    Some kind of global system of cooperation — not just between nations and regions but between all manner of human groupings as well — must emerge if an economy now defined by the unique principle of technological exploitation of the earth’s resources is to persist. The ideal of growth that guides every national government is little more than a strategy of accelerated depletion of the world’s common patrimony. The very idea of national interest in a world of competitive nation-states has become a weapon of mass obliteration.

    The more technologically developed the world becomes, the more it needs to adopt some form of moral compass capable of constraining the decision-making of nations. Growth and job creation have become the only public values today’s nations are capable of putting forward. Their political imagination withers and dies as soon as they attempt to reason beyond these goals. These “public” goals are nothing more than the veneer on the surface of a powerful system dedicated to private gain.

    Such a system needs something more than simple recalibration if it is to survive.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Italian Far Right’s Long-Term Investment

    When the government led by Prime Minister Giuseppe Conte was unable to find eleven lawmakers willing to join its ranks in the house of representatives in order to keep his ruling majority, President Sergio Mattarella decided to offer the former president of the European Central Bank, Mario Draghi, the possibility to try to form a new governo tecnico. Italy’s last technical government was led by Mario Monti between 2011 and 2012. A third Conte cabinet did not materialize because of the opposition by Matteo Renzi, the leader of Italia Viva, a party currently polling at 2%.

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    All political parties in the Italian parliament supported Draghi’s appointment except one: Giorgia Meloni’s Fratelli d’Italia (Brothers of Italy). Even the Euroskeptic and anti-immigration populist-radical Lega (League) agreed to support Draghi, with its leader Matteo Salvini affirming, “I rather prefer to play the game and manage 209 billions of euros than not,” referring to the Italian share of the Next Generation EU plan agreed in July last year.

    Next Generation EU

    Next Generation EU, a €750-billion ($904-billlion) stimulus package designed to boost post-pandemic recovery, will be the largest ever financed by the European Union. Taken together with the EU’s long-term budget, overall recovery funding stands at a total of €1.8 trillion, aimed at rebuilding, “a greener, more digital and more resilient Europe.”

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    The complex intergovernmental dynamics that have led to the agreement behind Next Generation EU are well known. What began with the initial opposition by the so-called “Frugal Four”  — Austria, Denmark, the Netherlands and Sweden — to the French-German initiative in May 2020 ended in an impasse provoked in late November by Hungary and Poland’s veto of the EU budget. Warsaw and Budapest were concerned about the Rule of Law Mechanism attached to the stimulus that would make it easier for Brussels to sanction violations of democratic principles by withdrawing aid.

    Of the €750 billion, about two-thirds would be non-repayable grants financed by joint borrowing, and one-third will consist in loans. With the aim to help less wealthy countries, Italy and Spain will get the biggest chunk, €209 billion and €140 billion respectively, with France “only” allocated €40 billion. Next Generation EU has been hailed by many as the “new Marshall Plan” that helped lift Europe out of the ruin of the Second World War. However, its practical implementation is revealing to be more complicated than earlier expected.

    For instance, the Spanish government led by Prime Minister Pedro Sanchez has already officially declared it will not seek €70 billion in loans, in a move similar to the one announced by Portugal’s Prime Minister Antonio Costa. In Italy, the recent political crisis erupted when Matteo Renzi quit the government over an objection to Conte’s plans for how to spend EU recovery money. In particular, Renzi, once an enfant prodige of Italian and European politics, was critical of the highly technocratic governance that the Conte cabinet was originally seeking to adopt vis-à-vis the stimulus package, including a task force composed of more than 300 experts. Conte, whose popularity has increased over the course of the pandemic, in order to avoid possible vetoes, had previously defended the move by highlighting that it was required by the EU.

    Grand Strategy

    With the Italian government desperately trying to avoid a return to the ballot box during a pandemic, which has already killed nearly 100,000 Italians so far, and an executive struggling to produce a consistent dossier on how to allocate the money from the EU recovery plan, the move by Giorgia Meloni to not lend support to the new government might appear pointless. In fact, Meloni was the only Italian political leader who called for new elections. According to polls, an election now would give to the Italian populist radical-right parties a landslide victory, with Salvini’s League and Meloni’s Brothers of Italy potentially garnering 40% of the votes.

    However, the Brothers of Italy, which in the last year has moved from 10,7% to the current 17%-18%, could vastly benefit from this “isolating abstention.” By simply waiting for the end of the honeymoon between Draghi’s technocratic executive and Italian political parties, the Brothers of Italy could easily build narratives based around blaming the incapacity of the current executive to efficiently utilize the EU funds; denouncing a technocratic agenda dictated by the European “bureaucrats” in Brussels or by “foreign” policymakers in Berlin and Paris; and by criticizing the opportunistic and inconsistent attitudes of other Italian parties, including the League.

    What is certain is that a highly deteriorated and inflamed post-pandemic landscape could provide a perfect context for the Brothers of Italy to gain support by reverting to social policies that à la Orban or à la Kaczyński, focusing on the pillar of “traditional” family. The Brothers of Italy was formed in late 2012 following the open disagreement with the center-right People of Freedom party launched by Silvio Berlusconi, and since then, Miloni has been clearly outlining social and family policies she wants to adopt in Italy. Those policies are based on the principles of conservativism and nationalism, and on intelligent, soft Euroskepticism in the name of sovereignty.

    The policies are the focus of a grand strategy to increase birth rates and protect the traditional family, with generous incentives for both parents and children alongside investment in social housing. It is important to note here that, differently from the League’s economic policies, based on a syncretic and opportunistic mix of both neoliberal and autarchic worldviews protecting small and medium enterprises, the Brothers of Italy has a clear and organic economic vision. As Mitchell Orenstein, among others, has brilliantly demonstrated in the case of Hungary and Poland, these types of policies can be particularly effective in buying many voters into the nationalist right’s vision of a social state. Could this be the case in post-pandemic Italy?

    *[Fair Observer is a media partner of the Centre for Analysis of the Radical Right.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Will Iran Take Over the Ottoman Mantle in the Middle East?

    When the Ottoman Empire was dismantled in 1922, it created a vacuum which a series of powers have attempted to fill ever since. None has succeeded, and the result has been a century of wars, coups and instability. Iran ruled all these lands before the Arab and Ottoman conquests. It could do so again. President Joe Biden’s intention of restarting the dialogue with Tehran is an opportunity to build, at last, an enduring successor to the Ottomans and prevent Iranian dominance.

    How did we reach this point? The story begins on May 29, 1453, a Tuesday, with the moon in its final crescent quarter. Constantinople had been under siege for months, and tens of thousands of Turks were outside its massive impregnable walls. Inside were just 50,000 remaining Greeks, including the last Roman Emperor Constantine XI, or Constantine Paleologos. There were only 7,000 armed men, outnumbered at least 10 to one by the Turks. The Greeks had fresh water and could grow enough food within the walls to feed themselves. They could hold out. However, in the early hours of that morning, a Greek raiding party left the city to harry the sleeping Turks.

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    On the way back into the city through a narrow entrance, the Kerkoporta, the last Greek in forgot to lock the door. The Turks followed them, opened the main gates, and Mehmet II’s Janissaries poured in. The Byzantine empire was no more.

    Two days of looting, rape and blood-letting followed. According to custom, three days were allowed, but it was so awful that Mehmet stopped it after two. To commemorate the conquest, Mehmet added the crescent moon to the Ottoman flag, and since then, Tuesday remains the unluckiest day of the week for the Greeks. No Greek gets married on a Tuesday, and any Greek looking at the Turkish flag with the crescent moon is reminded of that calamity.

    Consent to Be Ruled

    The intervening 469 years were not of uninterrupted peace and stability, but the Ottomans did provide an overarching continuity of rule over the region. The legitimacy of the sultan and the caliph was accepted by all of the Sunni Muslim world. Ottoman rule over Turkey, Lebanon, Syria, Palestine, Jordan, Iraq and what is now Saudi Arabia and the Gulf states provided stability and a common rule of law. The Turks were not loved — they were authoritarian and brutal — but there was some consent to be ruled.

    On November 17, 1922, the last sultan, Mehmet VI, was loaded onto a British warship, HMS Malaya, and sent off to exile in Malta and later Italy, never to return. He was allowed to take his four official wives with him, all of them Turkish. However, there were still about 400 concubines from all over the world in the Topkapi hareem. A young British officer was dispatched to the palace with a sack of gold sovereigns to pay the women off. Each got one sovereign for every year of service. 

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    The Ottoman defeat and collapse of the empire after the First World War created a vacuum in the Middle East that the British and the French in particular wanted to exploit. The infamous Sazenov-Sykes-Picot Treaty negotiated in 1916 was the plan to carve up the carcass of the Ottoman lands between Britain, France and Russia. Russia, as party to the treaty, was to get Constantinople and surrounding lands, all of Armenia and parts of the Black Sea, but lost its place at the table after the 1917 revolution ended its participation in the war.   

    Vladimir Lenin’s new Soviet government found the Russian copy of the treaty and publicized it. A century before WikiLeaks, this was deeply embarrassing to the British who were telling the leaders of the Arab revolt that they were fighting the Turks for Arab independence. The Turks lost no time in giving as much publicity to the treaty as possible and telling the Arabs that they had been deceived into fighting with Christians against their own Muslim caliph. Although this had some effect, causing some Arab tribes to change sides, it was too late, and the Turks were expelled. The Arabs were indeed betrayed and, instead of the Arab kingdom they had been promised, they were divided into British and French protectorates. 

    The First War of Succession

    The Brits and the French may have carved up the Ottoman Empire, but they soon came to regret it. Although they installed their own or client regimes in all the Ottoman provinces, there was little peace and certainly no profit for the Europeans. Enver Pasha, an Ottoman general and hero of the 1908 Young Turk Revolution, and Mustafa Kemal Ataturk, the future first president of modern Turkey, led the nationalist war to expel the British and other allied powers from Turkey proper. The British and their allies had intended to carve up mainland Turkey itself as well as the Ottoman Arab possessions. When Enver Pasha prevailed, the Treaty of Sevres was torn up and the Treaty of Lausanne, negotiated in 1922-23, established present-day Turkey as the successor to the Ottoman state. It also forced Turkey to renounce all claims to former Ottoman lands. 

    The Arabs in all the new colonial possessions of the British and French were restless. This was particularly true in Palestine, where the British ruled. In 1917, the British government had issued the Balfour Declaration expressing support for a national home for the Jewish people in Palestine. That year, the British were losing the war because German U-boats were sinking a large number of ships bringing food and supplies from America. Britain was being strangled. The one area where the British — with Arab help — were winning was in Palestine. Former UK Prime Minister Arthur Balfour saw an opportunity to leverage the Jewish American vote to bring the United States into the war. It worked.

    But with the British now in control of Palestine, the Zionists insisted that the UK live up to its promise. Large numbers of Jews began to arrive in Palestine. This caused conflict between newly arrived Jews, the indigenous Arabs and the hapless British, who were supposed to keep the peace. Ethnic unrest and independence movements grew in the other provinces. The British and French rule did not last: Both powers gave up or were forced out by a series of nationalist uprisings in the 1940s and 1950s.

    In the period between 1920 and 1925, Abdul Aziz Ibn Saud led a successful series of wars to establish the new Kingdom of Saudi Arabia. In 1945, the Saudi king held a fateful meeting with US President Franklin D. Roosevelt on board the USS Quincy in the Suez Canal that marked the beginning of the ambitions of the latest would-be successor to the Ottomans — the United States. At the same time, the Soviet Union was also eyeing the spoils, and while neither great power was able to take control of the Ottoman lands, their division between the two great rivals provided some stability, but not a permanent solution. 

    The Second War of Succession

    The Russians had missed an opportunity both before and after the Sykes-Picot affair but have not lost their interest. The leftist revolutions in Syria, Iraq, Egypt and Algeria gave them an entrée, as did the sharpening Arab-Israeli conflict that put the US on the wrong side as far as the front-line Arab states were concerned. Russian arms sales, economic assistance, trade deals and leftist solidarity were all employed in what would become one of the theaters of the Cold War. At stake was control of the oil fields and trade routes through the Persian Gulf and the Suez Canal. If the USSR gained total control, it would have given it a stranglehold on the West.

    While the Cold War rivalry lasted, there was some stability — or at least an absence of an all-out conflict, though the Yom Kippur War of 1973 tested this fragile equilibrium almost to destruction. The origins of the Yom Kippur War were not in great-power rivalry but local feuding — in this case, the struggle for land between Arabs and Israelis — but it was super-power hegemony that stopped the war. At one point, US Secretary of State Henry Kissinger moved America’s military stance to DEFCON3 — ready for nuclear war.

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    The USSR backed down, and a truce was agreed. While the balance of power between the USSR and the West held, in the Middle East, as elsewhere, low-intensity cold conflicts ensued, with no one winning overall control. The continuing retreat of British and French interests accelerated, and the US and the USSR competed for successor rights.

    The Iranian Revolution of 1979 was a shock. Iran had been America’s main proxy in the region. The Arabs opposed its ambitions, but Iran had been favored by the US as a bulwark against Soviet encroachment. The Sunni nations with sizable Shia populations saw the revolution as a major threat. They feared, rightly, that the Iranians would want to export not just the ideas of their revolution but also the facts. Iran agitated among the Shia in Iraq, Bahrein and Saudi Arabia, and sought to expel US influence from the region by launching terrorist attacks on US installations.

    Saddam Hussein particularly feared the Shia majority in Iraq and, with encouragement from the Sunni Arabs and the US, invaded Iran in 1980. But his war aims were thwarted. The revolutionary Iranian regime survived; in fact; the country unified behind it. The war lasted until 1988 and ended with Iraq’s defeat. The Iraqis had been supported financially by all the Arab states as well as provided with logistics and intelligence by the United States and its allies. The US was reluctant to become directly involved, and so were the Russians. It had been a local war, held within bounds.

    The Iran-Iraq War was an example of the instability resulting from the absence of an overall peace settlement in the region. It did have one remarkable result: All the petrodollar surpluses built up by the Arab and Iranian oil exports since the quintupling of oil prices in 1975 flowed back into the West. By the time the war was over, all of the Middle Eastern oil exporting nations’ foreign exchange reserves were exhausted while Western economies were booming.

    The Third War of Succession

    The fall of empires continued. The USSR collapsed in December 1991 after rotting from economic failure and internal rivalries for years. The Soviet contraction and internal focus also meant a retreat from its overseas interests and the Middle East in particular. In Europe, NATO and then the EU lost no time moving into what had been the Warsaw Pact, signing up a number of former Russian satellites and USSR republics to be part of the alliance, taking membership from 19 to 26 in its eastward expansion.

    In the Middle East, none of this happened — a missed opportunity. The partial order the Cold War had imposed on the region was gone, and, once again, local rivalries erupted without the moderating influence of either one of the two global superpowers to temper them. 

    In 1990, Saddam Hussein attempted to extort billions of dollars from Kuwait to replenish his reserves that had been exhausted by the war with Iran. When Kuwait refused, Iraq invaded, without the international community trying to restrain the aggression, and the First Gulf War began. Kuwait had allies that eventually came to its defense. But as soon as Iraqi forces had been expelled, they departed, leaving a regional vacuum still unfilled, with no general peace settlement.

    The defeat of Saddam Hussein gave the Iranians a golden opportunity to meddle in Iraqi Shia politics. The situation in Iraq festered, and the absence of any stabilizing force eventually led to the second US intervention in 2003. The chaos that this fateful invasion produced was again an enabler for the Iranians to fill the vacuum that emerged after Iraq’s dictator was overthrown. By now, Iran’s focus has shifted from its zeal to export the revolution toward more realist politics. The rise of Iranian nationalism since the Iran-Iraq War had replaced revolutionary idealism with national interests — an overriding policy that prevails to this day. Here, yet again, Washington failed to seize the initiative and establish a general peace settlement or a Pax Americana. 

    The Fourth War of Succession

    The Arab Spring, a series of revolutions and counterrevolutions that first ignited in Tunisia in 2010 before spreading throughout the region, set off a cycle of civil wars that are still with us. These conflicts flourished in the vacuum left by the collapse of regimes such as in Libya or Yemen, inviting intervention of regional players.

    The current situation is typical. We have civil wars in Libya, Syria and Yemen, and in each case, local powers are interfering in order to win a supposed tactical advantage. Russia is in the category of a local player; it no longer has the overall superpower or imperial advantage it had but, like Turkey, it wields enough military force to make a nuisance.

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    The civil war in Libya may worsen if Turkey and the UAE on one side, and Russia on the other, escalate their involvement. Syria, still engulfed in a decade-long civil war, has been carved up into Turkish, Russian, Syrian government and Iranian zones. Iraq appears to have slipped even more into the Iranian orbit. The slow US exit from Iraq and Afghanistan — the latter to the evident satisfaction of the undefeated Taliban — will further encourage struggles for a share of power. 

    The decline of US interest in the region is driven by the decreasing importance of oil and gas. In addition, the threat of regional domination by the USSR, or now Russia, has vanished. Public fatigue with the appalling loss of life, money and prestige the US has endured over the last 20 years has soured any appetite for further overseas wars. Arms deals and attractive opportunities for investment are declining, highlighted by the anxiety the Saudis are showing in trying to drum up disinterested foreign direct investment. The only motivators for continued US involvement are the security of Israel and the possibility that Iran, unchecked, may emerge as the local superpower.

    More War or Peace?

    Former US President Donald Trump’s policy was to try to force regime change in Iran. The campaign of maximum pressure to drive oil exports to zero, foment unrest and impose hardship was promoted as a way to push the Iranians back to the negotiating table and make more concessions in order to resuscitate the nuclear deal. The reality was that Trump sought the destruction of the regime. Despite enormous hardship, Iran did not buckle. It has a structural advantage: an educated and innovative population with well-balanced demographics, a diversified economy, fertile and productive agriculture, mineral resources and, of course, abundant hydrocarbons. It is a sleeping giant of an economy.

    Moreover, in almost every other sphere, from historical legacy, self-sufficient industry, military prowess, agriculture, architecture, food, to art, poetry and literature, Iran has been the dominant cultural influence in the region since the Seljuk empire — the same empire that brought the Ottomans, a Seljuk offshoot, to Turkey. History may again be moving in Tehran’s direction.

    The failed US, Israeli, Saudi and Emirati policy of pressure on Iran was tactical, not strategic. It had a short-term objective of regime change which, if reached, would actually accelerate the loss of US interest in the region and further underline the retreat of the most recent would-be successor to the Ottomans. Another vacuum is developing and, unchecked by binding treaties, Iran could regain its position as the major power in the region. Before Iran attempts to become the Ottoman successor, it is in the interest of all the other countries in the region to reach a general settlement. 

    Instead of examining short-term tactics based only on hatred or fear of the current Iranian regime, there is a need for a strategic view. Since the collapse of the Ottomans, the Middle East has seen continuous fighting, on and off, among international powers and regional players for the remnants of empire. The British and the French have come and gone, the US and Russia have come and are retreating — although they do intervene on a tactical basis here and there, usually leaving a worse situation than the one they found.

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    The Americans are clearly in the final stages of disengagement, driven, in part, by that declining need to keep the region and its oil in the Western camp. The power vacuum is growing, and if the sanctions are lifted, Iran will be back in business. The unity of Iraq and Syria is in question, Lebanon is a failed state and the future of the Saudi regime is not secure given the failure of the Vision 2030 initiative and the outlook for oil in a decarbonizing world economy. Turkey is eyeing the opportunities, as is Russia. Both have historical claims to Ottoman lands.

    But there is very little likelihood that any big power might be willing or able to assert sovereign rule over the Middle East. Even thinking about this is to court accusations of neo-colonialism. The solution lies in a different direction, not in more confrontation and threats of military conquest. A better vision is for an economic, political and security dialogue among all the parties in the region must be conceived. All parties are suffering in one way or another from the current disorder, whether it is the Iranians, Syrians, Iraqis, Yemenis or Saudis. The current situation is unsustainable, and any idea that any sort of victory is possible is an illusion. On the other hand, all the countries around the Gulf, including Iran, have much to gain from a cessation of hostilities, economic cooperation and the settlement of disputes through negotiation.

    The model of what the Europeans were able to achieve after the Second World War is a good one, and this time no Marshall Plan will be needed as the wealth and resources of the regional players are already enormous. Every country has something to gain. But there will be losers. They will be the autocratic dictators who currently stand in the way of such a general settlement.

    A human rights and a democratic track will be essential parts of any such dialogue in order to ensure sustainability and continuity. This will require the Iranian regime and other authoritarian rulers to surrender power — perhaps not all of it right away — but over time, enough to give their citizens confidence in their own personal security and investment in the governance of their own countries and their neighbors. A good start would be a regional security dialogue and some confidence-building measures. This is where the Biden administration must begin its work.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Georgia’s Democracy Is on the Brink of Chaos

    The ongoing political crisis in Georgia has been ramped up a notch over the last few days. The polarization of Georgian society, which is reflected at the political level, has reached a new high after the parliamentary elections last October, but especially so since the arrest and imprisonment of opposition leader Nika Melia and the raid on his United National Movement (UNM) headquarters on February 23. In a gesture of defiance, Melia threw away his police tracking bracelet, which he had to wear due to the charges of inciting violence during protests in 2019, when the opposition accused the governing Georgian Dream party of being pro-Moscow and demonstrated against what they believe is Russian occupation.

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    Following the charges being brought against Melia, Prime Minister Giorgi Gakharia resigned in protest. This has led to a situation now being described by people in Georgia as “hate being in the air,” drawing protesters into the streets in support of the opposition. While this has been a gradual development over the past decade, penetrating deep into the social fabric of Georgia, there is a looming danger of escalation today.

    Turbulent Road to Democracy

    Since the Rose Revolution in 2003, Georgia has been on a road to real reform and European integration. In January 2004, Mikheil Saakashvili became president and initiated, among other things, significant and wide-ranging reforms in justice and policing. Real change was visible and also felt by the population. Saakashvili’s UNM stayed in power until 2012, when it was voted out and replaced by the populist billionaire Bidzina Ivanishvili’s Georgian Dream coalition, which continues to run the country. Even though Ivanishvili withdrew from politics last month, he has a history of pulling the strings from the shadows — an impression reinforced by the recent appointment of Irakli Garibashvili, former defense minister and close ally of Ivanishvili, as Gakharia’s replacement.

    Nevertheless, even today, Saakashvili exerts influence on the politics of the UNM, despite having left the country in 2013 and having only stepped down as party leader in 2019. Saakashvili currently leads the executive committee of Ukraine’s National Reform Council, and his recent inflammatory comments mentioning civil war are clearly unhelpful and serve to further division in Georgian society. As is the case in most political crises, there seems to be no option for neutrality within Georgia at the moment. Even a new election, which the UNM is calling for, would most likely result in nothing but another 50/50 split.

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    While the governing Georgian Dream coalition has certainly acted irrationally in case of Melia’s arrest, to a certain extent, the events have been provoked by the UNM to further deepen the divide. These events come alongside accusations of Georgian Dream being too pro-Russian. Ivanishvili, the former prime minister the country’s richest man, made his nearly $5-billion fortune in the Russian Federation — a feat clearly only possible with close ties to the Kremlin. Yet the current government follows the approach of European integration and has even, rather optimistically, set a goal to apply for EU membership in 2024. This apparent disconnect can be explained by Georgian Dream trying to remain the party of the economy by maintaining open trade with Russia while embracing deeper European integration.  

    On the other hand, although the pro-European agenda of the UNM is beyond doubt, by undermining certain European values during its time in power, the party has shown its willingness to use authoritarian methods of governance, including human rights violations such as the Gldani prison scandal, which strongly contributed to its electoral downfall in 2012. It has since remained in opposition.  

    Volatility and Opportunity

    The South Caucasus is becoming increasingly volatile. In September 2020, the hostilities between Armenia and Azerbaijan erupted once again in the disputed region of Nagorno-Karabakh, leading to a six-week war between the two countries. In the Russian-brokered ceasefire agreement signed on November 9, Azerbaijan gained control over the territories captured during the fighting, and beyond. Armenia’s prime minister, Nikol Pashinyan, who came to power via peaceful protests in 2018 — the so-called Velvet Revolution — has now had to face protests himself. On February 25, the Armenian army demanded his resignation, which he refused, calling it an attempted coup.

    Political instability in Georgia and Armenia, the persisting unsolved issue of breakaway territories and continued Russian involvement in the region, on top of the current COVID-19 crisis, make the region uncomfortably unstable at present. The pandemic has hit Georgia especially hard. As a country reliant on foreign tourism, many thousands in the industry have lost their jobs. With proportionally little government aid compared to Western European countries and with Georgian society only recently beginning to come out of a lockdown, societal tensions are running high and patience is wearing thin.

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    However, with woeful tidings comes an opportunity for the European Union’s regional policy in Georgia. On March 3, the president of the European Council, Charles Michel, will visit Georgia. Once again, this will be a delicate mission, as the main task must be to call on all parties to calm down, and the EU will need to take the lead in facilitating that process. While the recent attack on the opposition should be condemned, it is possible that this could be interpreted by supporters of Georgian Dream as Brussels backing the UNM. Such as scenario needs to be avoided at all costs in order to prevent further escalating the conflict.

    The EU finds itself in a uniquely advantageous position in Georgian politics. Both the UNM and Georgian Dream are committed pro-European political parties and actively seek EU membership for Georgia. If the EU were to engage both sides bilaterally, it could calm political nerves and potentially lead to it mediating a dialogue. Georgia has long looked to Brussels as a democratic role model to fulfill its European aspirations. In offering to mediate, the EU could incentivize both sides to come to the table and demonstrate their political maturity.

    Although EU foreign policy has often struggled to find a common approach supported by all member states — still the dominant players in the external relations of the bloc — Michel might just be the right person. As Belgium’s former prime minister, he has at least some experience in mediating internal political and societal polarization. And while Georgian politics is a far cry from the halls of Brussels, Michel can make use of the fact that both the UNM and Georgian Dream would bolster their pro-European credentials significantly if they were to heed Brussels’ advice in this matter.

    Staying on Course

    Ultimately, if this political crisis cannot be solved, authoritarianism will be the only winner in this situation. Georgia’s authoritarian neighbors — Russia, Azerbaijan and Turkey — have made it through the pandemic politically unscathed, while Azerbaijan’s recent victory in Nagorno-Karabakh has strengthened the Aliyev dynasty and left Armenia’s extremely vulnerable democracy in peril. If Georgia’s dwindling beacon of democracy, human rights and the rule of law were to falter, there may be little hope in salvaging its remarkable advancements the country made over the last 20 years.

    If the EU truly values the Eastern Partnership and shares Georgia’s vision for eventual EU membership, more than warm gestures will be necessary on its part in this crisis. In order to save democracy in the Caucasus, the EU may have to show its mettle and get creative, for only it can provide the necessary incentives, be they political or economic, to inspire Georgia to stay on course.

    In order to remind ourselves why events in this lesser-known region carry a wider significance, it is worth looking at its history. Almost to the day 100 years ago, the Red Army entered Tbilisi and Georgia lost its independence. Although the Soviet Union is long gone, there is a real danger that Georgia may lose its political independence if all parties involved do not find a way for a real dialogue.

    Another conflict in the South Caucasus might just set the necessary precedent for another regional power play. We should not forget that the Russian army has been present on Georgian territory since the five-day war of 2008, with Moscow supporting Abkhazia’s and South Ossetia’s declaration of independence. The Kremlin has always been quick to seize an arising opportunity. It will surely be ready to reassert itself over Georgia and to restore fully its sphere of influence in the Caucasus.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More