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    Britain’s Still Got It

    Since Brexit in 2016, the United Kingdom’s growth rate has been poor. Inflation is at its highest rate in 30 years. In December 2021, it had risen to 5.4%. Wages have failed to keep up and, when we factor in housing or childcare costs, the cost of living has been rising relentlessly.

    COVID-19 has not been kind to the economy. Rising energy prices are putting further pressure on stretched household budgets. To stave off inflation, the Bank of England is finally raising interest rates, bringing an end to the era of cheap money. Payroll taxes are supposed to go up in April to repair public finances.

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    The Resolution Foundation is predicting that “spiralling energy prices will turn the UK’s cost-of-living crisis into a catastrophe” by spring. The UK’s 2022 budget deficit will be larger than all its G-7 peers except the US. The beleaguered Boris Johnson government finds itself in a bind. At a time of global inflation, it has to limit both public borrowing and taxes. Unsurprisingly, there is much doom and gloom in the air.

    We Have Seen This Movie Before

    Since the end of World War II, the UK has experienced many crises of confidence. One of the authors move to the country in 1977. Back then, the Labour Party was in power. James Callaghan was prime minister, having succeeded Harold Wilson a year earlier. The British economy was the fifth-largest in the world but was buffeted by crises. In 1976, the government had approached the International Monetary Fund (IMF) when, in the words of Richard Roberts, “Britain went bust.”

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    From 1964 to 1967, the United Kingdom experienced “a continuous sterling crisis.” In fact, the UK was “the heaviest user of IMF resources” from the mid-1940s to the mid-1970s. The 1973 oil crisis spiked energy costs worldwide and pushed the UK into a balance of payments crisis. Ironically, it was not the Conservatives led by Margaret Thatcher but Labour led by Callaghan that declared an end to the postwar interpretation of Keynesian economics.

    In his first speech as prime minister and party leader at the Labour Party conference at Blackpool, Callaghan declared: “We used to think you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour, that option no longer exists.” After this speech, the Callaghan government started imposing austerity measures.

    Workers and unions protested, demanding pay rises. From November 1978 to February 1979, strikes broke out across the UK even as the country experienced its coldest winter in 16 years. This period has come to be known as the Winter of Discontent, a time “when the dead lay unburied” as per popular myth because even gravediggers went on strike.

    In 1979, Thatcher won a historic election and soon instituted economic policies inspired by Friedrich von Hayek, the Austrian rival of the legendary John Maynard Keynes. Thatcher’s victory did not immediately bring a dramatic economic turnaround. One major industry after another continued to collapse. Coal mines closed despite a historic strike in 1984-85. Coal, which gave work to nearly 1.2 million miners in 1920 employed just 1,000 a century later.

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    Throughout the 1970s, the UK was dubbed “the sick man of Europe.” People forget now that a key reason the UK joined the European Economic Community (EEC) in 1973 was to make the economy more competitive. Between 1939 and the early 1990s, London lost a quarter of its population. Yet London and indeed the UK recovered from a period of crisis to emerge as a dynamic economy. Some credit Thatcher but there were larger forces at play.

    There Is Life in the Old Dog Yet

    Last week, one of the authors met an upcoming politician of India’s ruling Bharatiya Janata Party (BJP). A strong nationalist, he spoke about the importance of Hindi, improving India’s defense and boosting industrial production. When the conversation turned to his daughter, he said that he was sending her to London to do her A-levels at a top British school.

    This BJP leader is not atypical. Thousands of students from around the world flock to the UK’s schools and universities. British universities are world-class and train their students for a wide variety of roles. Note that the University of Oxford and AstraZeneca were able to develop a COVID-19 vaccine with impressive speed. This vaccine has since been released to more than 170 countries. This is hardly surprising: Britain has four of the top 20 universities in the world — only the US has a better record.

    Not only students but also capital flocks to the UK. As a stable democracy with strong rule of law, the United Kingdom is a safe haven for those seeking stability. It is not just the likes of Indian billionaires, Middle Eastern sheikhs and Russian oligarchs who put their wealth into the country. Numerous middle-class professionals choose the UK as a place to live, work and do business in. Entrepreneurs with a good idea don’t have to look far to get funding. Despite residual racism and discrimination, Britain’s cities have become accustomed to and comfortable with their ethnic minorities.

    Alumni from top universities and skilled immigrants have skills that allow the UK to lead in many sectors. Despite Brexit, the City of London still rivals Wall Street as a financial center. Companies in aerospace, chemical and high-end cars still make the UK their home. British theater, comedy, television, news media and, above all, football continue to attract global attention.

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    Napoleon Bonaparte once purportedly called the UK “a nation of shopkeepers.” There is an element of truth to this stereotype. The British are a commercially savvy, entrepreneurial and business-friendly bunch. One author knows a dealer who trades exclusively in antique fans and a friend who specializes in drinks that you can have after a heavy night. The other has a friend who sells rare Scotch whiskey around the world and an acquaintance who is running a multibillion insurance company in India. Many such businesses in numerous niches give the British economy a dynamism and resilience that is often underrated. Everything from video gaming (a £7-billion-a-year industry) to something as esoteric as antique fan dealing continues to thrive.

    The UK also has the lingering advantage of both the Industrial Revolution and the British Empire. Infrastructure and assets from over 200 years ago limit the need for massive capital investment that countries like Vietnam or Poland need. Furthermore, the UK has built up managerial experience over multiple generations. Thanks to the empire, English is the global lingua franca and enables the University of Cambridge to make money through its International English Language Testing System. Barristers and solicitors continue to do well thanks to the empire’s export of common law. Even more significantly, British judges have a reputation for impartiality and independence: they cannot be bribed or coerced. As a result, the UK is the premier location for settling international commercial disputes.

    In 1977, the UK was the world’s fifth-largest economy. In 2022, 45 years later, it is still fifth, although India is projected to overtake it soon. The doom and gloom of the 1970s proved premature. The same may prove true in the 2020s. The economy faces a crisis, but it has the strength and track record to bounce back. The UK still remains a jolly good place to study, work, invest and live in.

    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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    Modi’s India Is Becoming a Farce

    They say history repeats itself, first as a tragedy and then as a farce. At the dawn of India as a republic, several Western and Indian scholars, including Dr. Babasaheb Ambedkar, had reservations about its survival as a democracy. Widespread poverty, illiteracy and deep-rooted social divisions based on caste and religion were considered as serious threats to meaningful implementation of universal enfranchisement.

    For all his follies, Jawaharlal Nehru, India’s first prime minister, understood the importance of building democratic institutions and, with a few exceptions, worked tirelessly to nurture them. The 1975-1977 emergency under Indira Gandhi was the first open assault on the system. It was a tragedy. Now, under the leadership of Prime Minister Narendra Modi, Indian democracy is in danger of devolving into a farce.

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    By suspending the constitution, along with fundamental rights, incarcerating political opponents and censoring the media, Mrs. Gandhi canceled all local elections and ruled by decree. While Indira Gandhi’s authoritarianism was largely secular, her son Sanjay Gandhi’s forced sterilization drive of Muslims in the name of population control shocked the national conscience. In less than two years, a strong opposition coalesced around an agenda to save the constitution and regain fundamental rights.

    The Judiciary

    What prompted Indira Gandhi to call for fresh elections in 1977 remains a mystery. However, she paid the political price through her drubbing at the hands of a united opposition. In due time, the judiciary took corrective measures by apologizing for its failures during the dark era. In contrast, recent utterances and actions by India’s judiciary, the opposition and the ruling party are truly baffling.

    Consider a recent speech by N.V. Ramana, the chief justice of India, lamenting the demise of investigative journalism in the country. The judiciary is expected to be above the political fray, but it is hard to believe that it is oblivious to ground realities. It strains credulity that the chief justice is not aware of the prevailing toxic media environment aided by anonymous fundraising, questionable changes in the Right to Information (RTI) Act and the indiscriminate use of legislation like the sedition law and the Unlawful Activities (Prevention) Act (UAPA) against journalists. Barring exceptional circumstances where suo moto action is warranted, the judiciary can act only through cases presented to it.

    However, several cases related to anonymous electoral bonds, RTI changes and sedition/UAPA claims are pending in the Supreme Court. Given the track record of the past three chief justices, such a statement would have been a case of chutzpah. Since Chief Justice Ramana’s heart seems to be in the right place and he has been more active than his predecessors in some cases related to fundamental rights, perhaps we can call it ironic.

    The Opposition

    Then there is the specter of a rudderless opposition. We can discuss the Indian National Congress when it finds a full-time president. Out of the other two parties vying for national attention, Mamata Banerjee of the Trinamool Congress brings back memories of Congress-era socialism that Modi had promised to move India away from. Assorted schemes for social justice and women’s empowerment have helped her guard her home turf against Modi’s juggernaut, but West Bengal is not exactly a shining example of industrial dynamism.

    Banerjee could be a socially liberal counterweight to Modi’s rabid Hindutva-laced pseudo-nationalism, but her instincts are every bit as authoritarian. Rather than offering a new kind of politics, her currency is her willingness to go head-to-head with the ruling Bharatiya Janata Party’s (BJP) scorched earth tactics and street brawls. While some of this bare-knuckle politics can be a necessary evil, her track record in tolerating dissent, promoting freedom of expression and encouraging entrepreneurship does not inspire confidence.

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    The Aam Aadmi Party (AAP) is a strange creature. While it has built a decent track record of administering New Delhi for seven years, it does not have a guiding philosophy by design. In addition to focusing on education and healthcare in the capital, the AAP has also done reasonably well in managing its balance sheet with good trade and tax policies. However, its central plank of offering freebies, although popular among some sections, harken back to India’s Nehruvian past.

    Socially, by not taking a strong stand vis-à-vis the 2019-20 Shaheen Bagh protests against the Citizenship (Amendment) Act (CAA) and embarking on a temple run, the AAP seems to be gunning for a Hindutva-lite posture. An anti-corruption crusade and developing policies through consensus on the go might work in assorted state elections, but the lack of a socio-economic vision will hurt the AAP in general elections where voters are suckers for stories. Unless it comes up with its version of India’s legacy, national destiny and its place in the world that includes coherent defense and foreign policies, it will not be a serious competitor to the BJP nationally.

    The Central Government

    The lion’s share of the credit for turning India’s growth story into a farce goes to Modi, the Rashtriya Swayamsevak Sangh (RSS) and their obsession with Hindutva. Just like every previous administration, Modi has a few successful initiatives to boast of. His infrastructure building spree has forced erstwhile social justice politicians to focus on this long-neglected need. Government schemes for building toilets, offering cooking gas and safe drinking water have borne some fruits. The startup economy saw a record number of unicorns in 2021, although most of them are helping India formalize unorganized sectors and catch up with the developed world.

    In the process, Modi is learning what the erstwhile Nehruvian politicians realized a few decades ago, namely that it’s easy to distribute someone else’s money until it runs out. In spite of “Make in India” and the rebranded “Atmanirbhar Bharat” campaigns, the share of manufacturing in India’s GDP has gone down from 16% to 13% under Modi’s leadership and employment in the sector has halved. Exodus from manufacturing toward inefficient agriculture has increased poverty among Indians. The service sector might see an uptick after the COVID-19 pandemic subsides, but with the pace of automation and Modi’s hodgepodge of trade barriers, even an unlikely rebound in manufacturing will not lead to robust economic recovery.

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    The effects are visible in the government’s borrowings and the historic unemployment crisis. The once-in-a-century pandemic is not Modi’s fault and the debt-to-GDP ratio going from around 70% to 90% is understandable. The prime minister was dealt a bad pandemic hand and chose surgical fiscal interventions instead of putting cash in people’s hands, which would have further exacerbated inflation.

    However, had the pre-COVID Indian economy not been in the doldrums because of Modi’s bad stewardship, interest rates on the borrowing would not have shot up by 30-60 basis points before the 2022 budget, pushed up further by 20+ points as soon as another massive borrowing program was announced in the budget. With the US Federal Reserve staring at a series of interest rate hikes in 2022, borrowing might get even dearer for India.

    The resulting policy muddle and unemployment crisis are so stark, that even Arvind Subramanian, Modi’s former chief economic adviser, and Varun Gandhi, a parliamentarian from his own party, are finally speaking up. They are openly discussing India missing the boat of attracting manufacturers fleeing authoritarian China and seeing the demographic dividend — one of the few advantages India has over China that it cannot quickly fix — turn into a demographic disaster. While the rich will find ways to evade taxes and the poor don’t pay any, it is the middle class — enamored by the Hindutva ideology — that will shoulder the soaring debt.

    BJP-Ruled State Governments

    The story gets more farcical in BJP-ruled states. To placate unemployed youth, Haryana has passed a draconian job reservation law that reinstitutes Congress-era license raj and bureaucracy. In Uttar Pradesh, the BJP’s infrastructure poster-boy Yogi Adityanath has his own brand of lawlessness, exhibit A being the unconstitutionality in dealing with anti-CAA protestors.

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    Allahabad’s high court has already struck down critical provisions of Uttar Pradesh’s new “love jihad” law. That has not stopped Karnataka from wasting the state legislature’s time in debating an even more draconian and unconstitutional anti-religious conversion bill. Industry honchos drawing up plans to attract global talent to Bangalore seem unaware that in a worldwide competition for the best brains and entrepreneurs, few are interested in living in a country that cannot guarantee the rule of law, an efficient judiciary and personal freedoms.

    India might have edged out China in venture investments in 2021 due to Beijing’s crackdown on startups and Delhi still lagging behind in formalizing its economy. However, the celebration will be short-lived if India keeps marching in China’s direction in terms of the state’s heavy-handedness and assault on personal liberties. It is becoming increasingly clear that Modi, the so-called nationalist, purchased a cyber weapon — the Pegasus spyware — from a foreign country and used it against his innocent fellow citizens without any warrant or probable cause. Meanwhile, BJP-ruled states are busy competing amongst themselves in further undermining rule of law and due process.

    Looking Ahead or Back?

    As India kicks off the celebrations for the 75th anniversary of independence, Modi is lucky that his predecessors built robust space, missile and nuclear programs, respectable academic institutions that are churning out professionals leading the budding startup scene, a generic medicine and vaccine sector that saved India money in the pandemic, a professional military not infested by religious fundamentalism as well as defense production companies ripe for public-private partnerships. In a hostile neighborhood made even more so by Modi’s hubris, one shudders to think what he would have done without all these national assets.

    And yet, with no money left to redistribute and no quick fixes to the unemployment crisis, Modi has now embarked on mixing Hindutva with education. As if the Covaxin approval without phase 3 clinical trial data and Ramdev Baba’s Coronil controversy were not enough, a parliamentary panel has proposed teaching the Vedas in public schools. IIM Ahmedabad has started offering a Bhagavad Gita-based management course. IIT Kharagpur has courses in Vaastu and ancient Indian knowledge systems in the pipeline.

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    While the American private sector looks for ways to augment the government’s R&D funding juggernaut for secular scientific discoveries and knowledge creation, Modi is busy looking backward and further decimating India’s social capital. Despite the fanfare surrounding the new National Education Policy, funding for education has gone down from 4.4% to 3.4% of GDP and R&D funding is stagnant at 0.6%-0.7% of GDP.

    Fifty years after the emergency, India is still paying the economic price for Indira Gandhi’s misplaced jingoism and disastrous nationalization of huge swaths of industry. Narendra Modi’s authoritarian rule has India already staring at a demographic disaster for another generation, with potentially longer-lasting consequences. Gods and goddesses have mercy on India.

    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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    Dissecting the Ukraine Crisis (Language and the News – Updated Daily)

    As we announced in January, by highlighting the everyday abuses of the language of public personalities and the media, Fair Observer’s new running feature prolongs the four-year-old tradition of The Daily Devil’s Dictionary (now reduced to a weekly format). We will frequently add new items to the month’s entries. Each item will cite an occurrence in the news and add a short reflection focusing on its intended and unintended meaning.

    We invite readers to join us and submit their suggestions of words and expressions that deserve exploring, with or without original commentary. To submit a citation from the news and/or provide your own short commentary, send us an email.

    February 1: Multiple Audiences

    CNN reports that Ukraine’s president, Volodymyr Zelensky, is feeling some discomfort in the face of US President Joe Biden’s eagerness to create panic around the idea of a Russian threat. Zelensky himself describes Russia’s actions as “dangerous but ambiguous.”

    “Earlier in the day, another source from the US side said there is a recognition in the White House that Zelensky has ‘multiple audiences’ and is trying to balance them. ‘On the one hand, he wants assistance, but he has to assure his people he has the situation under control. That’s a tricky balance.’”

    Though the source cited only two of the audiences, there are certainly a few others that were not mentioned. It could be said that nearly every relatively powerless country has at least two audiences: its people and whatever hegemonic power has decided to support it. The United States is by far the most prolific hegemonic “audience” of countries across the globe, though some fear China may surreptitiously catch up. The idea of being an audience, of course, implies an attitude of listening attentively, usually through the hegemon’s diplomats but just as significantly, through its spies.

    Why Monitoring Language Is Important

    Language allows people to express thoughts, theories, ideas, experiences and opinions. But even while doing so, it also serves to obscure what is essential for understanding the complex nature of reality. When people use language to hide essential meaning, it is not only because they cynically seek to prevaricate or spread misinformation. It is because they strive to tell the part or the angle of the story that correlates with their needs and interests.

    In the age of social media, many of our institutions and pundits proclaim their intent to root out “misinformation.” But often, in so doing, they are literally seeking to miss information.

    Is there a solution? It will never be perfect, but critical thinking begins by being attentive to two things: the full context of any issue we are trying to understand and the operation of language itself. In our schools, we are taught to read and write, but, unless we bring rhetoric back into the standard curriculum, we are never taught how the power of language to both convey and distort the truth functions. There is a largely unconscious but observable historical reason for that negligence. Teaching establishments and cultural authorities fear the power of linguistic critique may be used against their authority.

    Fair Observer’s Language and the News feature seeks to sensitize our readers to the importance of digging deeper when assimilating the wisdom of our authorities, pundits and the media that transmit their knowledge and wisdom.

    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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    Why Barham Salih Deserves a Second Term in Iraq

    In Iraqi Kurdistan, there is a growing debate over a potential second term for Barham Salih, the president of the Republic of Iraq. This matter has led to polarization in Kurdish politics and society, and it could destabilize relations between the Kurdistan Democratic Party (KDP) and the Patriotic Union of Kurdistan (PUK). If left unresolved, it could threaten political stability in the semi-autonomous federal region.

    Since 2005, as part of a power-sharing agreement, the Iraqi presidency has been set aside for a Kurd. Within the Kurdish community itself, the post has been informally reserved for a candidate of the PUK. Meanwhile, the speaker of parliament is held by a Sunni and the job of prime minister by a Shia.

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    The two main Kurdish parties have also agreed that in return for the Iraqi presidency being earmarked for the PUK, the KDP takes nearly all significant positions within the Kurdistan Regional Government (KRG). This includes the positions of president, premiership and the deputy of parliament as well as several ministries within the Iraqi federal government.

    Losing Support

    Recently, the KDP has made political gains and the PUK has lost significant support since the 2018 elections. Currently, the KDP has 31 members in the Iraqi national council, while the PUK has only 16. This has led the KDP to eye the position of the Iraqi presidency. If the party insists that President Salih should not be elected again, it could lead to a significant change of the political map of Iraqi Kurdistan.

    Both the PUK and KDP have lost the trust and confidence of the public. This was particularly reflected three years ago in the last parliamentary election when only around 40% of registered voters participated. The PUK and KDP have lost over 700,000 voters in the Kurdish region itself. Their legitimacy is declining day after day and smaller parties are emerging. This is because citizens do not believe the people and parties in power are competent enough to represent them and or deliver the basic services they need.

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    The KDP is strongly against the reelection of Salih because, in 2018, he ran for the presidency without the blessing of Masoud Barzani, the leader of the KDP; he went on to beat Barzani’s candidate, Fuad Hussein. Today, if the PUK and Barham Salih win the presidency again, it would have significant implications on intra-party, Kurdish, federal and regional politics.

    The KDP has nominated Hoshyar Zebari as their candidate to challenge the PUK’s Salih, according to Rudaw. Zebari served as the Iraqi finance minister from 2014 to 2016 before he was removed from his position following a secret parliamentary vote of no-confidence over alleged corruption and misuse of public funds. At the time, Zebari denied the allegations against him and said they politically led, and he was later cleared of charges.

    The KDP wants the PUK to nominate a new candidate. Currently, it appears that the PUK is leaning toward Latif Rasheed, a former Kurdish minister in Baghdad and a close relative of the Talabani family as an alternative person for the presidency should Salih not win the support he needs when parliament votes on February 5.

    The KDP claims that Salih has not succeeded in resolving the political differences and disagreement between the KRG and the federal government of Iraq. The budget for the Kurdistan Regional Government has also not been settled. It is hoped that Salih can find a solution to the economic and monetary issues between Erbil and Baghdad.

    Salih Is the Only Real Candidate

    There are currently five people who have nominated themselves for the job. Yet it is clear that the only powerful candidate is Barham Salih and the others are only competing against him to enrich their resumes and or undermine the position of the presidency.

    Across Iraq, Salih is known for his international and diplomatic experience and for being a politician with a vision. It was during his premiership that the KRG had boomed with a strong economy that saw the development of real estate. Hundreds of thousands of people rebuilt their homes, students went abroad to continue their studies and many others started small entrepreneurial projects thanks to his good governance and meritocracy.

    During his time as prime minister of the Kurdistan region between 2009 and 2012, Salih laid the foundations for several strategic projects, namely the American University of Iraq in Sulaimani, the airport, the new University of Sulaimani campus and the Hawari Shar, one of the greatest national parks in Iraq. Salih has also built many strategic projects like the underground water and sewage system of Sulaimani, along with dozens of other useful initiatives. Salih is widely known among the Kurdish people for his dedication to working in the public interest.

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    At a regional level, many anticipate that Salih’s presidency will play an important role in maintaining Baghdad’s balance between the United States and Iran. On the one hand, Salih has a good working relationship with the Iranians and speaks Farsi. On the other, he has maintained a decade-long relationship with influential figures in Washington. The hope is that Salih will strive to minimize the damage done to Iraq as a result of the rivalry between the US and Iran. The election of Salih, in terms of person and approach, is a crucial step toward stability in the new government. The hope is that he will play a more positive and engaged role and fulfill the expectations the Iraqi people have of him.

    Barham Salih has also strongly advocated for the rights of the ethnic and religious minorities in Iraq and is a great defender of the Iraqi Constitution, which has given the Kurds certain rights. Salih has a good reputation and has political experience. He is also well known for his integrity, righteousness, fairness and loyalty to the homeland.

    The president’s role is to serve as a symbol for the country. Their job is to represent Iraq’s sovereignty, safeguard the constitution and preserve its independence, unity and security. Many believe that Salih’s reputation, political demeanor and balanced stance enable him to implement these tasks of the presidency.

    Salih is a moderate politician and can lead Iraq as a mediator, rather than a nationalist, sectarian and or populist. If he is given a second chance as president, Salih could deescalate the existing tension and dispute between Erbil and Baghdad, and among Shia factions as well. After all, he was once the protégé of the late Jalal Talabani, the president who united Iraq and prevented further conflict. Hence, Salih meets the qualifications that the people and also his regional allies would prefer in an Iraqi to become a president. As it stands, Salih has the best chance of retaining his position, but not without encountering many challenges.

    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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    Understanding Russia’s Logic Vis-à-Vis Ukraine

    When it comes to Russia’s troop deployment near the Ukrainian border, many Western governments are left wondering whether the escalation is merely intended to underpin Moscow’s demands for an end to NATO’s eastward expansion and the withdrawal of NATO and US troops and military infrastructure from eastern member states.

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    However, it cannot be excluded that the failure of the talks with the US and NATO on security guarantees has been calculated by Moscow from the outset in order to justify an intervention in Ukraine that was being planned regardless. The Russian leadership is deliberately playing on strategic ambivalence to complicate Western decision-making. It criticizes reports about a possible Russian invasion as a Western conspiracy theory, but at the same time, it brings a military response into play should the talks with the US and NATO fail.

    In this way, Moscow is trying to further polarize the Russia debate in Europe and make a unified European and transatlantic response more difficult.

    Russia’s Military Logic

    Against this backdrop, it is worth taking a look at the Kremlin’s previous pattern of using the Russian military as a foreign policy tool. From this, conclusions can be drawn regarding the Kremlin’s cost-benefit calculations. First, the military show of force represents a firmly established instrument of Russian coercive diplomacy. For example, President Vladimir Putin achieved the first summit meeting with US President Joe Biden in May 2021 after moving Russian troops to the border with Ukraine.

    Second, Putin had kept Russia’s previous military interventions limited, either with regard to the duration or in terms of the number of forces deployed. In this way, he avoided causing resentment among the Russian population due to high casualty figures or massive economic costs.

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    Third, there has been only one case of military intervention leading to the annexation of territory — the conquest of Crimea in 2014, a mixture of military surprise, acceptable political and economic sanctions, and domestic mobilization potential that allowed Putin to raise his previously plummeting approval ratings to new heights.

    It cannot automatically be assumed that the previous logic for the military use of power will continue to apply unaltered. However, there are not yet sufficient indications that it has fundamentally changed. Based on this logic, three scenarios can be identified as more likely among the options being discussed in the media.

    How Will the Situation Develop?

    First, it is in line with previous logic to view the deployment on the border with Ukraine as part of a coercive diplomacy strategy to influence the US and NATO to make substantial concessions. The military exercise with Belarus scheduled for February is intended to increase pressure in the short term, given the stalled negotiations. If the talks fail, there is a risk of escalation. With its demands for a complete revision of the existing Euro-Atlantic security architecture, Russia’s leadership risks running into a trap of its own making and losing the possibility of a face-saving solution.

    Moscow regards the negotiations being offered by the US and NATO on arms control and confidence and security-building measures as merely complementary to its demands, not as a substitute for them.

    Second, Moscow could further underpin its coercive diplomacy by permanently deploying Russian troops in Belarus. As a result, Russia would be in a better position to close the so-called Suwalki gap — a strategically important land corridor between Poland and Lithuania — and thus cut the Baltic states’ connection to the rest of NATO. Moreover, with a permanent military presence in Belarus, Russia could make its threat of a major invasion of Ukraine more credible.

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    Since the stationing of Russian troops requested by Belarusian ruler Alexander Lukashenko would not constitute a hostile incursion, Moscow would not be subject to political and economic sanctions, but it would have to expect increased military reassurance measures from NATO for the eastern member states.

    A third scenario is an open incursion by Russian troops into the separatist-controlled part of the Donbas region. The number of Russian soldiers massed on the border gives credibility to this version of events. The military costs for Moscow would be low, since pro-Russian forces and covertly deployed Russian soldiers already control the area. Russia would face sanctions from Western countries, but these would be limited compared to a full-scale invasion. To be sure, no surge of approval for Putin comparable to the one that followed the Crimean annexation is to be expected.

    Chain of Legitimacy

    However, a chain of legitimacy for the invasion could easily be constructed. In recent months, some 600,000 residents of Donbas have obtained Russian passports. The deployment of armed forces abroad is permitted under Russian legislation in order to protect Russian citizens against an armed attack. Some pretexts that could be used by Moscow for these actions include statements made by Ukrainian President Volodymyr Zelenskiy about wanting to retake the separatist areas and false flag terrorist attacks by supposedly Ukrainian or Western forces.

    According to the logic so far, Russia is not expected to annex Donbas but to recognize it as an independent entity. An initiative to this effect is already being prepared by the Communist Party of Russia, which is loyal to the Kremlin. By taking this step, Moscow would lose the opportunity to gain a political veto position in Ukraine by granting Donbas autonomous status. However, it is no longer putting much hope in it.

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    With an open military intervention in Donbas, Russia would also put Zelenskiy in a precarious domestic and foreign policy position, in which he would lose room for maneuver and credibility between the demands for a military response and the warnings not to let the situation escalate. This would also further polarize the Western states.

    All other military scenarios — from the establishment of a land bridge to Crimea to the occupation of the Ukrainian Black Sea coast or other parts of the country — cannot be ruled out. However, they would then be associated with significantly higher military and economic costs as well as domestic political risks. This would be a clear sign that the Kremlin’s calculations have fundamentally changed.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    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 Yemenis Can Learn From the Indian Farmers’ Protests

    Surprisingly, ending the war in, or rather on, Yemen is no longer an immediate concern. The gratuitous violence can continue, for there are now other priorities, or so we are told. Amongst them are development and fostering resilience, whatever these mean amidst an ongoing war. Wars do not have to come to an end. “Fragility, conflict, and violence (FCV) has become the new development frontier,” reads a concept note by the World Bank. Once again, development agencies in Yemen are failing to walk the line between development and de-development. Have developmental interventions become an instrument of subjection and keeping countries of the agrarian south in check?

    Throughout the war, international policymakers have overemphasized the role of the private sector in addressing Yemen’s severe food crisis, insofar as they have tirelessly insisted since the late 1960s that opening the local market to unrestricted food imports would feed a growing population and drive economic growth. Commercial staple food imports — as well as food assistance — are vital during the war.

    Indian Farmer Protests Explained (Interactive)

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    However, be that as it may, the role of commercial food importers in postwar, post-neoliberalism Yemen must not be blown out of proportion. Reducing Yemen’s deep agrarian and rural social crisis to wartime and postwar commercial food import issues shows that the root causes of the country’s severe food crisis continue to be gravely misunderstood or deliberately overlooked.

    To begin with, Yemen’s absurd, inordinate dependence on staple food imports is but a consequence of bad policy. Regrettably, it was a policy that failed to preserve the rural sector’s productivity, let alone stimulating it and accumulating wealth. Rehashing past failed agricultural development policies is evidence of two distributing realities.

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    The first is Yemeni elites’ lack of capacity to imagine alternative paths of development in Yemen. The second is international policymakers’ position that developed countries exclusively can adopt national agricultural policy frameworks that avowedly control food supply through production and import controls and pricing mechanisms, whereas developing countries cannot do the same to support their agriculture sector.

    Inspiration and Lessons

    To end this long deadlock between Yemen’s autonomy and global capitalism, perhaps one ought to draw attention to India’s social struggle for inspiration and lessons.

    It is not in Yemen’s national interest to continue ignoring its small and marginalized farmers. In a rural society like Yemen, they are the engine of a healthy economy. The vast majority of the population continues to live in rural Yemen. Current official estimates put Yemen’s rural population at about 70%. This reality limits the role of the private sector in sustaining rural livelihoods. While some might argue that Yemen’s private sector should not be viewed as a monolith, consisting only of large conglomerates, to lump smallholding agriculture and agricultural commercialization together under the umbrella of the private sector is fundamentally flawed.

    Small farmers in Yemen are subsistence households, each representing a domestic unit of agricultural production that is economically self-sufficient and combines production and consumption functions. This rural social organization is not the same as one where farmers are reduced to landless, wage earners. Thus, small and marginalized farmers cannot be pigeonholed as private sector actors. Worse is to drop them from the economic equation altogether, especially in so-called developing countries.

    Without making this fundamental distinction between smallholding agriculture in Yemen and private sector activity, and without understanding why domestic food production is a matter of national priority to Yemeni citizens, Yemeni elites and international policymakers alike will continue to bungle the task of putting the country on the right path to development.

    Food Sovereignty and Security

    Many seem to think of Yemen as a big chicken farm that only needs to be fed somehow. They do not understand, or do not want to understand, that at issue is food sovereignty as well as food security. Yemen is a sovereign nation. Yemenis are a people who have the right, needless to say, to choose what to farm, how to farm and how to define the relationship between their local market and the international market. Choosing whether to eat homegrown sorghum or imported wheat is a fundamental national question of utmost importance, not a trade finance problem.

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    Private sector activity is not an economic activity that occurs in an empty space; it occurs within social spheres. It impacts domestic production, changes the modes of production within a society and, consequently, remolds all social formations and economic relations. Agrarian changes are social changes. One cannot discuss private sector activity and commercial food imports in isolation from their long-term social impacts. This is lesson number one from five decades of steady economic decline and social regress. It is Yemen’s rural population that has marched down the road to impoverishment and starvation, and they know exactly how — but not why — they got there in the first place. In rural Yemen, lives and land are at stake.

    Millions of people in Yemen are famished neither because of the war nor because the private sector is unable to import enough staple foods, in spite of significant and critical wartime challenges. Yemenis are starving because the country has systematically lost its long-standing ability to produce food, particularly staple grains. The magnitude of production losses in Yemen’s agriculture sector has fundamentally limited the economy’s resilience to shocks. Economic resilience is the ability of the country’s main productive forces to cope, recover and reconstruct. How can you cripple a country’s most tangible, corporeal and immediate branch of production and, at the same time, foster resilience? Speaking of resilience of an incapacitated agriculture sector is a logical fallacy and is, therefore, meaningless and a distraction from the real problem.

    Causing Alarm

    According to the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT), Yemen produced on its domestic soil on average 98% of its grains during 1961-65; namely, sorghum, millet, barley, maize and wheat, in this order. Sorghum production in Yemen peaked at 921,000 tons in 1975. In sharp contrast, the country domestically produced on average only 18% of its total supply of the same grains during 2011-15 and imported the rest. By 2015, the production of sorghum had plummeted to 221,510 tons. To make an already alarming situation unmanageable, the ongoing war more than halved Yemen’s total domestic grain production. Most notably, sorghum production reached a record low of 162,277 tons in 2016, followed by another record low of 155,722 tons in 2018. Yet, some still argue that this decline is due to population growth, not policy.

    In a country that primarily produces and consumes sorghum — the traditional staple of man and beast in Yemen — millet and barley, an over 80% dependency on imported wheat is evidently catastrophic during war and peace. This is a well-documented socioeconomic problem. In its 2004 edition of “The State of Food and Agriculture,” the Food and Agriculture Organization (FAO) noted that the long-term damaging impact of the loss of domestic food production and exposure to price volatility on individual countries outweigh the plausible short-lived collective benefits.

    Lower international prices have moderated the food import bills of developing countries, which, as a group, are now net food importers. However, although lower basic food prices on international markets bring short-term benefits to net food-importing developing countries, lower international prices can also have negative impacts on domestic production in developing countries that might have lingering effects on their food security.

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    The heart of the matter is that the agriculture sector is the country’s main productive force. Unchecked private internationally integrated capital has destroyed Yemen’s rural capital and silenced the interests of the country’s sizable rural population. Further, the malintegration of Yemen’s local food market with global markets has jeopardized the country’s economic independence and prevented any real development in Yemen.

    The Issue

    There is great, non-monetary economic and social value in reclaiming and revalorizing Yemen’s domestic food production and rebuilding its basic rural infrastructure. Domestic food production is too important to Yemenis to be addressed as an afterthought. At issue is not how to procure wheat from international markets, but how to stop the hemorrhage of surpluses out of the agriculture sector.

    What serves Yemen’s national interest is to refrain from calling for increasing the country’s dependency on speculative, volatile international food markets; imposing in the guise of development and economic resilience policies that undermine the country’s ability to domestically produce adequate food for local consumption; overstating the benefits of export-oriented agriculture and cash cropping more broadly; and overlooking or downplaying the role of smallholders in generating abundant jobs and sustaining rural infrastructure. In a nutshell, any serious discussion of Yemen’s food security crisis must take into account ecological sustainability, rural livelihoods and both food security and sovereignty in the long term.

    Yemeni farmers do not yet fully understand why policymakers and development practitioners insist on promoting imports and more broadly large commercial activity, at a time when the whole world is prioritizing the opposite of these dictates: strengthening self-reliance, planning and regulating limited resources, and minimizing local markets’ exposure. Yemeni struggle has not yet reached the level of political awareness seen in India during its 2020-21 farmers’ protests. To get there, we must understand one point: tying the rural sector’s destiny to large commercial organizations cannot lead to any real growth and prosperity of the entire population.

    Indian farmers inspire us to rethink development paradigms in Yemen, for there is more to farming than exporting bananas and onions to Saudi Arabia, and there is more to the role of the private sector in national development than flooding local markets with wheat from Australia, Russia, the United States, France and other international source markets, or even import substitution.

    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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    Is the Decline of Democracy Inevitable?

    Perhaps the most critical immediate question facing the world in 2022 is whether the decline and eventual destruction of democracy are inevitable in the next decade. Thousands of words have been directed to this question over recent years, intensifying after the ascendency of Donald Trump to the presidency in the United States, the propagation of “the big lie” after his defeat in the 2020 election, and the subsequent insurrection at the Capitol on January 6, 2021.

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    In the same period, Great Britain moved to the right under Prime Minister Boris Johnson while autocratic regimes in Poland, Hungary, Turkey, the Philippines and Brazil tightened their grip on governance structures.

    What does the future hold for liberal democracies around the world in the next decade? Are current trends an aberration, or is Marc Plattner prophetic in noting in “Democracy in Decline?” that authoritarianism seems to have the “wind at its back even if it has not yet spread to many more countries”?

    Inevitable Decline Scenario

    Current trends produce compelling evidence that seems to suggest that the decline of democracies is an inevitability. In the United States, daily columns appear pronouncing that democracy is in peril and under siege, and asking whether another civil war is possible. The January 6 assault on the Capitol continues to be a flashpoint in what was already a very volatile political environment. Voting restrictions targeted at likely Democratic voters have been instituted in many pro-Republican states. Given the prominence of America as a symbol of liberal democracy, countries around the world are now thinking the unthinkable about the future of democratic governance.

    Last year’s Freedom House report, “Freedom in the World for 2021,” carries the subheading “Democracy under Siege.” It suggests that the aggregate decline in freedom has exceeded gains for the past 15 years. While much of the deterioration in 2020 was associated with regimes in Africa and the Middle East, European nations — Poland, Hungary and Turkey — recorded reductions in freedom. Moreover, the United States has seen a 10-year decline in freedom equivalent to that experienced in 25 other nations.

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    Meanwhile, as the left-wing populist party headed by Nicolas Maduro has captured the headlines because of his dismantling of democratic institutions in Venezuela, right-wing populist movements are increasing across Latin America — Brazil, Bolivia and Peru are examples. More recently, following Jair Bolsonaro’s playbook in Brazil, the leader of the right-wing populist Christian Social Front in Chile, José Antonio Kast, forced a run-off in a recent election after voicing a desire to return to the autocratic regime of Augusto Pinochet.  

    Kast eventually lost in a landslide, which bodes well for the stability of democracy in Chile for the near future, but still raises the disconcerting issue of the popularity of authoritarianism among a sizeable minority of Chile’s polity. 

    Predisposition to Authoritarianism

    All of these recent events would seem to posit an argument that many citizens are susceptible to an authoritarian appeal. However, forecasting trends from recent events is always hazardous. Yet there is a more ominous source for predicting inevitability than the recent accounts and actions of political leaders and pundits. The writings of a number of social psychologists, historians and political scientists are extremely relevant to the question at hand.

    Karen Skinner argues in her book “The Authoritarian Dynamic” that autocratic tendencies are baked into the psychic of citizens of liberal democracies. Fear of change and diversity is easily transformed into a call by a politician for a return to the status quo of the past, like “Make American Great Again.” Long before the ascent of Trump, Skinner estimated that as many as one-third of the population in liberal democracies have a predisposition to authoritarianism.

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    Given that democracies encourage diversity, alternative interpretations of history and open dialogue on difficult issues, these strengths may exceed people’s capacity to tolerate difficult issues. A growing lack of tolerance toward immigrants, people of color or bureaucrats provides a platform for opportunistic leaders to activate that “authoritarian dynamic.”

    Roger Griffin offers a similar argument when he attributes modernity as a force for fascism. With the unfolding of modernity, populist interpretations of an idealized national past arise in response to the anxiety that citizens feel about a future where the only certainty is that it will be different than the past. Leaders with autocratic ambitions use “restorative nostalgia” — Svetlana Boym’s concept introduced in her book “The Future of Nostalgia” to describe a hereafter that replicates the past — to rally citizens to a populist political movement, a revolt against democratic institutions and their advocates, “the bureaucratic elites.”

    The arguments offered by Skinner, Griffin and others provide an important understanding of how the internal vulnerabilities of liberal democracies can nurture their own demise. However, despite the presence of an authoritarian dynamic within liberal democracies, a political leadership factor is part of the calculus for predicting the future of democracies. The past decade has witnessed the emergence of Plutarchian leaders who have learned to navigate the pathway that enables populist sentiments to be integrated with autocratic predispositions.

    While their hold on the masses is important, what is required to secure power is their ability to bewitch a small key group of capable and principled people in leadership roles and convince them to submit to the autocratic impulses of a prophetic leader as a means of achieving limited policy goals.  

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    A cadre of Von Papenites — those who have no autocratic predisposition but are willing to align with anti-democratic politics as a means of achieving specific policy goals or to ensure their own power base in the governance structure — is required. The important and notorious role that Franz von Papen had in enabling the rise of fascism in Germany in the 1930s must not be duplicated if democracy is to be resilient in countries experiencing populist movements. The dangerous combination of a charismatic populist leader and a sizable component of politicians willing to compromise their political ideals for transitory political goals would make the downward spiral of democracy inevitable.

    Yet in the United States, a contingent of politicians did defy the urges of the Trump administration to decertify the election results and preserve democratic rule. In Chile, citizens and political leaders rejected the call to return to the autocratic governance model of Pinochet’s dictatorship. In Europe, despite the political uncertainties created by the pandemic, right-wing populist movements have not established themselves as viable alternatives to current regimes. 

    Democracy will be resilient and survive the current wave of right-wing authoritarianism if leaders and institutions demonstrate their ability to solve critical social and economic problems, reverse the erosion of trust between themselves and the public, and put the safeguarding of democracy at the forefront of their political agenda.

    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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    In Ukraine, More Than European Peace Is at Stake

    “Everything has already been said, but not yet by everybody.” This quote by the Bavarian comedian Karl Valentin applies also to the ongoing Russian threat to Ukraine, which has brought a new level of tension to Europe. Yet it provides no comic relief as the situation is far too dangerous for everyone, but especially for the people of Ukraine who have been widely excluded from the ongoing discussions about their future.

    The diplomatic failures of the Russian and American negotiators and the steady escalation in rhetoric indicate an unwillingness to compromise on both sides. Russia wants guarantees that neither Ukraine nor Georgia will accede to NATO, which NATO categorically refuses to do. But Russia’s excessive list of demands shows that it doesn’t expect the West to agree. It would, conversely, mean that Russia would have to remove its own missiles from the Kaliningrad Oblast that borders Poland and Lithuania. 

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    The failure of the Russian Federation to respect the sovereign will of its neighboring states demonstrates well its 19th-century view of geopolitics that if it doesn’t belong to us now, it will soon belong to our enemies. By raising the stakes, Russia has shown that there are now only three options for Ukraine — siding with Russia, aligning with the West, or permanent neutrality — and it is testing to see just how much the West really wants Ukraine. But time is running out. Maintaining a large standing army on such a long border requires significant resources. They’ll have to be moved eventually. The question is, in which direction?

    Geopolitical Chess

    Like pieces on a chessboard, Ukraine acceding to NATO would, from the alliance’s perspective, be like the West gaining a pawn. From the view of the Kremlin, however, Russia would be losing its queen. The movement of NATO’s eastern flank into Ukraine would increase the length of the NATO-Russian land border nearly fourfold, from 703 kilometers to 2,677 kilometers — an unpleasant prospect for security-obsessed Moscow.

    As such, we believe that there are several scenarios regarding how the situation could develop, with a multitude of compounding factors. Three of them have been described here, which we still believe could prove most likely.

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    While it is impossible to know what will actually happen, one thing seems to be perfectly clear: There is no peaceful solution for Ukraine. Regardless of what outcome the negotiations have, Crimea is still occupied and the war in Donbas is ongoing. The Kremlin wants security guarantees, but so does Ukraine. Kyiv sees its best option in NATO membership, which is mutually exclusive to Moscow’s objective.

    It’s at this point that the debate about Ukrainian neutrality gains momentum. Such a declaration of neutrality could also be welcome in Western capitals. Although this currently disregards the stated sovereign will of those Ukrainians who support a Western path, one could nonetheless imagine a tripartite (NATO/US–Ukraine–Russian Federation) treaty on Ukrainian neutrality would ease security fears, while also not excluding the prospect of future EU membership for the country, like neutral Austria, Sweden and Finland. Indeed, the stability provided by a neutrality treaty would afford Ukraine the necessary conditions for significant economic growth and democratization.

    Nevertheless, the Kremlin’s security concerns regarding NATO are, to our understanding, not the dominant factor in this situation. Apart from the fact that there is also a sort of collective security provision in Article 42 (7) of the Treaty of the European Union, the main concern for the Russian regime is a democratic and prosperous Ukraine. Because if a “brotherly” nation, as Putin has referred to it on numerous occasions, could thrive in a climate of social freedom, the Russian population could demand this as well, which would ultimately lead to the collapse of the current administration.

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    Neutrality, moreover, doesn’t also necessarily prevent a Russian military presence. In Moldova — a neutral country — around 2,000 Russian soldiers are present, 500 of them as “peacekeepers,” following the war in Transnistria in 1992. Andreas Umland, an analyst at the Stockholm Centre for Eastern European Studies, the Swedish Institute of International Affairs, asked (during a conference both authors attended) whether these and other Russian troops stationed in the former Soviet republics should not rather be referred to as “piece keepers” — pun intended.

    Umland is also the initiator of an open letter to the German government signed by 73 German experts on Eastern Europe and international security, among them one of the authors of this article. The aim here is to call for a German reaction to the threat the Russian Federation poses to the European security order.

    Europe’s Energy Leverage

    The new German government hasn’t changed its predecessor’s position regarding the Nord Stream 2 pipeline, which would provide leverage in the negotiations but is constantly depoliticized by officials. Moreover, drastic sanctions, like excluding Russia from the SWIFT global payment system or even delivering defensive weapons to Ukraine, have been ruled out. The latter is based on what Berlin perceives as its historic responsibility toward Russia for Germany’s role in the Second World War, ironically ignoring that this should also include Ukraine as both were part of the Soviet Union.

    But a time is coming when Berlin must weigh up whether it is willing to stand in solidarity with its allies, Ukraine and the principles of international law and self-determination, or if its responsibilities for the past mean it would rather stay in the Kremlin’s good books. In any case, this German factor has long provided the Kremlin with the opportunity to pursue its divide-and-conquer strategy in the European Union.

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    Perhaps the greatest leverage the EU would have over Russia (and currently vice versa) is the control over the supply of natural gas. Moscow has for far too long fostered Europe’s reliance on Russian natural resources. Dependence works both ways, and if the EU, and especially Germany, were to take control and shut off Russian pipelines into Europe, the consequences would be far worse for Russia.

    Painful though it may be at first, it is entirely possible, and such a preemptive tactic — showing Russia that the EU is no longer dependent on its supplies — would have a powerful taming effect on Moscow. It would also spur on the increased diversification of European energy supplies, costing Europe less in the long run. This energy card is currently in German hands.

    Negotiations aside, one of the most striking things about this current escalation has been the sidelining of Ukraine’s position. If we’ve learned anything from history, it is that smaller countries should not be overlooked as their voices are silenced. We’ve seen this situation before: excessive demands, promises of being satisfied if conditions are met, protecting citizens, peaceful intentions but ready for war. All this sounds too familiar. Yet again, the wishes of the main country involved — in this case, Ukraine — are not being respected.

    We should not repeat the same mistakes from 100, 80 or even just eight years ago. Ukraine has made its move, and so has Russia. It is now up to the West to come together and show Russia that aggression no longer pays.

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    There is so much more at stake here than just peace in Europe. We need to understand that this is a direct attack on Europe’s collective achievements over the past decades. Ukrainians contributed to these achievements with the Maidan Revolution in 2014. The EU failed them then, so we must not fail Ukraine again. Otherwise, the hopes for democratic development in the east of the European continent will just be a piece of history, never to return.

    *[Fair Observer is a media partner of Institute for the Danube Region and Central Europe.]

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