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    India Is Slowly Evolving Into a Market Economy

    India has come a long way since its independence from colonial rule in 1947. It started as a mixed economy where elements of both capitalism and socialism coexisted uneasily. Jawaharlal Nehru, India’s first prime minister, was a self-declared Fabian socialist who admired the Soviet Union. His daughter, Indira Gandhi, amended the constitution in 1976 and declared India to be a socialist country. She nationalized banks, insurance companies, mines and more. 

    Gandhi tied Indian industry in chains. She imposed capacity constraints, price controls, foreign exchange control and red tape. India’s colonial-era bureaucracy now ran the commanding heights of the economy. Such measures stifled the Indian economy, created a black market and increased bureaucratic corruption. The Soviet-inspired Bureau of Industrial Costs and Prices remains infamous to this day.

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    India also adopted the Soviet five-year plans. A centralized economy emerged with the state controlling the media and telecom, financial, infrastructure and energy sectors. Even in seemingly private sectors such as consumer and industrial, the state handled too many aspects of investment, production and resource allocation.

    Opening Up the Economy

    In the 1980s, India took gentle strides toward a market economy and opened many sectors to private competition. In 1991, the Gulf War led to a spike in oil prices, causing a balance-of-payments crisis. In response, India rolled back the state and liberalized its economy. The collapse of the Soviet Union that year pushed India toward a more market-oriented economy. 

    Over the years, state-run monopolies have been decimated by private companies in industries such as aviation and telecoms. However, India still retains a strong legacy of socialism. The government remains a major participant in sectors such as energy and financial services.

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    After years of piecemeal reforms, the Indian government is again unleashing bolder measures. These involve the opening up of several state monopolies to private competition. They are diluting state ownership of public sector units. In some cases, they are selling these units to domestic or foreign buyers. In due course, professionals, not bureaucrats, will be running this sector.

    The government’s bold move to privatization is because of two reasons. First, India’s public sector has proved notoriously inefficient and been a burden on the taxpayer. Second, the COVID-19 pandemic has made the economy shrink and caused a shortfall in tax revenue. Privatization is a way for the government to balance its books.

    As Shwweta Punj, Anilesh S. Mahajan and M.G. Arun rightly point out in India Today, the country “will have to rethink how it sells” its public sector units for privatization to be a success. India’s track record is poor. The banana peels of political opposition, bureaucratic incompetence and judicial proceedings lie in waiting.

    Potential Benefits of Privatization

    Yet privatization, if managed well, could lead to several benefits. It will lead to more efficiently managed businesses and a more vibrant economy. Once a state-controlled firm is privatized, it could either be turned around by its new owner or perish. In case the company fails, it would create space for better players. Importantly, privatization could strengthen the government’s fiscal position, giving it greater freedom to invest in sectors like health care and education where the Indian government has historically underinvested. Furthermore, privatization could increase investable opportunities in both public and private markets.

    Given India’s fractious nature and labyrinthine institutions, privatization is likely to lead to mixed results and uneven progress. One thing is certain, though. Privatization is inevitable and cannot be rolled back. Sectors in which market forces reign supreme and shareholder interests are aligned are likely to do well. State-controlled companies that prioritize policy goals over shareholder value are unlikely to do so. Similarly, sectors that have experienced frequent policy changes are unlikely to thrive. 

    There is a reason why savvy investors are constructing portfolios weighted toward consumer and technology sectors. So far, companies in these sectors have operated largely free of state intervention. They have had the liberty to grow and function autonomously. Unsurprisingly, they have delivered good returns.

    The state-dominated financial services sector also offers promise. Well-managed private companies have a long runway to speed up on. Among large economies, India’s financial services sector offers unique promise. In the capitalist US, the state has limited presence and private players dominate. This mature market offers few prospects of high growth. In communist China, state-controlled firms dominate financial services, leaving little space for the private sector. With the Indian government planning to reduce its stake in a state-controlled life insurance company, as well as sell two state-owned banks and one general insurance company, the financial services sector arguably offers a uniquely important opportunity for investors.

    Just as India did well after its 1991 balance-of-payments crisis, the country may bounce back after the COVID-19 pandemic. The taxpayer may no longer need to subsidize underperforming state-owned companies holding the country back. Instead, market competition may attract investment, create jobs and increase growth.

    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 Good Old Days: Nostalgia’s Political Appeal

    Donald Trump is gone, yet his specter continues to haunt American politics. The UK is no longer part of the European Union, yet Brexit continues to provoke emotions on both sides of the Channel. Both Trump’s victory in the 2016 presidential election and the outcome of the Brexit referendum of 2016 were driven by a range of widespread and profound emotions. One of the most prominent was nostalgia.

    Nostalgia has been around for ages. The first one to recognize its significance was a Swiss doctor, Johannes Hofer. In 1688, Hofer coined the word — a compound derived from the Greek nostro, meaning “home,” and algos, meaning “pain” — to describe what he considered to be a medical malaise he detected among Swiss mercenary soldiers, expressed as a profound yearning for their home (what in German is called Heimweh — homesickness).

    Hofer might have drawn inspiration from Homer’s Odyssey. Its hero, after spending seven years in the company of the sea nymph Calypso, felt compelled to return home. The longing to see his home was so overwhelming that he rejected Calypso’s offer to make him immortal if he stayed.

    The Meaning of Nostalgia

    Since Hofer’s times, the meaning of nostalgia has both substantially changed and significantly broadened. It is no longer associated with homesickness. Instead, in today’s parlance, nostalgia stands for “a sentimental longing for one’s past.” More specifically, nostalgia stands for a yearning for an idealized, lost past, a past more often than not seen through rose-tinted glasses. For a long time, nostalgia was seen as a pathology, reflecting the refusal to confront an unpleasant present and an even worse future.

    In this view, the yearning for “an irretrievable past becomes a narcissistic illusion,” a “deflection from current unpleasant circumstances.” More recently, however, nostalgia is predominantly seen as a positive emotion, an effective coping mechanism in times of turmoil and crisis. In this case, nostalgia serves as “an important resource that helps people find meaning in life and regulate meaning-related distress.” In the face of tectonic demographic, technological and geopolitical changes, seeking comfort in a past where life was arguably simpler and easier to navigate is human, all too human. As Edoardo Campanella and Marta Dassu have put it, nostalgia “offers relief from socio-economic angst. Yesterday is associated with progress; tomorrow with stasis or regression.”  

    This type of nostalgia — because nostalgia comes in different guises — reflects “an affective yearning for a community with a collective memory, a longing for continuity in a fragmented world.” In this context, as Matthias Stephan has recently suggested, nostalgia represents “both a look back to an idealized past (whether real or imagined) and a hope that the romanticized past will become our future.”

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    Here, nostalgia “inevitably reappears as a defense mechanism in a time of accelerated rhythms of life and historical upheavals.” The author of these lines, Svetlana Boym, characterized this iteration as “restorative nostalgia.” Against this, Boym sets what she called “reflective nostalgia.” Reflective nostalgia accepts the fact that the past is past, that it cannot be retrieved. As Hal McDonald has put it, “This acknowledgment of the irretrievability of our autobiographical past provides an aesthetic distance that allows us to enjoy a memory in the same way that we enjoy a movie or a good book.”

    At the same time, it engenders a realistic, and perhaps even critical, view of the past. It is this constellation that makes nostalgia extremely political. In fact, because of its inherently binary nature, nostalgia is ideally suited to inform both progressive and reactionary politics.

    Today, nostalgia is primarily evoked on the nationalist right. More often than not, this is a type of nostalgia that depends on the “disparagement of the present,” which Christopher Lasch once considered the “hallmark of the nostalgic attitude.” Feeling discombobulated by and disenchanted with the present, as well as uneasy about the future, a growing number of people feel tempted to go down the memory lane and retreat to the past where, as the German expression goes, the world was presumably still in order.

    When the World Was in Order

    On the nationalist right, it is particularly radical right-wing populist parties and actors that have drawn the greatest political benefit from the appeal to nostalgia. Donald’s Trump is a prominent case in point. His campaign slogan “Make America Great Again” implies that there was a time when the United States was still great, that today it no longer is, but that tomorrow it will be great again — as long as the people follow The Donald.

    The promoters of Brexit played a similar tune. Nigel Farage, the former leader of the UK Independence Party (UKIP), holding up his new non-EU passport and triumphantly exclaiming, “We got our passports back!,” evoked a time when Great Britain still maintained the pretense to be a great power rather than one among 28 EU member states where it was not even primus inter pares. Once freed from the shackles of the EU, a once again completely sovereign Great Britain would regain its lost glory. Or, as Britain’s Secretary of Defense Gavin Williamson claimed in late 2018, once Britain was out of the European Union, it would become a “true global player,” establishing new military bases all over the world. As an article in the Financial Times from early 2016 put it, “Brexiters are Nostalgics in Search of a Lost Empire.”

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    Public opinion polls conducted a few months prior to the referendum provided ample evidence of the extent to which the British public glorified the country’s past. In early 2016, a YouGov poll found more than 40% of British respondents expressing pride in Britain’s colonial history; about the same number thought the British Empire had been a good thing. Only a fifth of respondents had a negative view. In a similar survey, two years earlier, around 50% of respondents thought that Britain’s former colonies were better off today because they had been part of the British Empire, while a third thought that it would be a good thing if Britain still had an empire. At the same, there were strong sentiments that Britain was in decline. In fact, some 80% of “leavers” shared that view in 2016.

    Hardly surprising that, in the wake of the referendum, one of Britain’s leading tabloids, The Daily Star, called on its readers to “Make Britain Great Again!” Nostalgia, paired with mass delusion and a portion of righteous resentment, obviously paid handsome political dividends — at least for Nigel Farage, Boris Johnson and their comrades in arms.

    Similarly in the United States, Trump’s main slogan “Make America Great Again” appealed to widespread nostalgia, particularly among the country’s white majority. In September 2016, for instance, half of the respondents in the annual American Values Survey agreed with the statement that their country’s best days were “behind us.” A few months earlier, a Pew survey found more than 45% of respondents agreeing with the statement that compared to 50 years earlier, life for people like them had gotten worse.

    Among Trump supporters, three out of four agreed with that statement. In a similar vein, one year earlier, around half of US respondents in a representative poll thought that “America’s best days” were in the past. At the same time, in 2016, more than 60% of Americans believed their children would be worse off than they were. This is also reflected in surveys that seek to gauge what Americans think about, for instance, the American dream — the notion that hard work will allow them to get ahead.

    Most notably, these sentiments were particularly pronounced among America’s white population, far more than among African Americans, Hispanics and other minorities. Donald Trump, ever so tuned in to the grievances of white America, stoked the fire of white resentment, charging, at a town hall meeting in the fall of 2015, that “the American dream is in trouble,” only to add the promise that with him in the White House, “we will get it back.” To be sure, this was hardly original. Four years earlier, the Republican Platform already committed to “Restoring the American Dream.”

    The Good Old Days

    Conjuring up idealized images of the good old days is a crucial tool in the ideational repertoire of nativist and national-populist parties and actors. And for good reasons. For one, the evocation of nostalgic fantasies creates a sense of collective identity, community and a common purpose, all of them of central concern on the radical populist right. At the same time, in the hands of radical right-wing populists, nostalgia serves as an indirect indictment of the present, linked to an appeal to the notion that the best of the past could somehow replace the current situation.

    Here, nostalgia represents what S. D. Chrostowska has called a “malaise of dissatisfaction with the present and the direction that present” has taken. The more profound and widespread collective disenchantment with the present happens to be, the more pronounced is the appeal of the past. An exemplary case in point is a sociological study from 2016 in Poland, whose authors explored the extent to which nostalgia for the communist period was prevalent among current-day Poles. The results were striking. They showed that people who felt they had been better off during that period than at present were much more nostalgic and had a significantly better opinion about the communist government than other respondents.

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    Poland is hardly unique. The arguably best-known case of post-communist nostalgia is what in German is known as Ostalgie. Ostalgie entails a revaluation of the German Democratic Republic (GDR) — former East Germany — on the part of a substantial part of its population following reunification. To a large extent, this was in response to “the perceived threat of a West German depreciation of their life experiences.” Substantial numbers of citizens in the east had the feeling that they and their past were treated with condescension, if not outright disdain. Even 30 years after the fall of the Berlin Wall, the sentiment that easterners are second-class citizens finds widespread resonance in what once was the GDR. Ostalgie is all about a demand for recognition, dignity and respect rather than crude material interests. As sociologist Cecilia Ridgeway has noted, we tend to forget “how much people care about public acknowledgement of their worth.”

    Yet they tend to “care about status quite as intensely as they do [about] money and power.” They want “to be someone.” Ostalgie is also informed by the sentiment that in the GDR, ordinary workers were valued — they were someone. Not for nothing, the GDR prided itself on being an Arbeiter und Bauernstaat — the state of workers and farmers.

    Nostalgia in post-communist societies might be somewhat puzzling to outside observers, yet politically it is of no consequences. There is no craving for a return of what in German was known as Realsozialismus — loosely translated as “actually existing socialism.” A regime that imprisoned its citizens behind walls, barbed wires and minefields in order to prevent them from fleeing the country has nothing in common with the radical humanist spirit of socialism, reflected, for instance, in Karl Marx’s “Economic and Philosophic Manuscripts of 1844” and the writings of leading exponents of the Frankfurt School.

    Radical Reconstruction

    Matters are entirely different when populist leaders use nostalgia for the dismantling and radical (from the roots) reconstitution of a society’s collective identity. This is what has happened with two of the most important contemporary populist regimes: Recep Tayyip Erdogan’s Turkey and Narendra Modi’s India. At first sight, the two cases could not be more different. Here, a representative of political Islam, there, of political Hinduism. Yet below the surface, the similarities are quite striking.

    These similarities are seen, in particular, in the place nostalgia — and the appeal to nostalgia — has in the rhetoric of both leaders. In the Turkish case, nostalgia is reflected in what Turkish observers have called neo-Ottomanism. Erdogan, as Hakan Yavuz has argued, has been seeking “to remold Turkey in the form of an imagined, ahistorical conceptualization of the former Ottoman Empire.” The ultimate objective is “to resurrect a powerful Muslim state in the ancestral mold of the former Ottoman Empire.”

    At the same time, Erdogan’s political project represents a frontal assault on and complete disavowal of Mustafa Kemal Atatürk’s foundation of the modern “Kemalist” Turkish state. This project was based on a progressive, secular vision of equality adopted from the French Revolution. Here, citizenship and identity derive from a common adherence to civic principles; in the case of Erdogan’s project, citizenship and identity derive from adherence to a common ethno-religious community, which bodes ill for Turkey’s minorities such as Kurds and Armenians.

    In the Indian case, Modi’s Bharatiya Janata Party (Indian People’s Party, BJP), has never made a secret of the fact that it seeks to eradicate the legacy of Nehruvian secularism and replace it with Hindutva. Long before Modi became prime minister, the BJP mobilized against what it called Nehru’s “pseudo-secularism.” In reality, the BJP charged, secularism discriminated against Hindus while according concessions to India’s sizeable Muslim minority. In fact, in 2018, Sonia Gandhi admitted that the BJP had managed to convince a sizeable portion of the Indian public that the Indian National Congress was a pro-Muslim and, implicitly, anti-Hindu party.

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    Central to the BJP’s ideology is the myth of the Vedic golden age, exemplified, in particular, by the reign of the mythical Ram, largely seen as the epitome of India’s golden age. This golden age came to an abrupt end with the Muslim invasion and conquest, which ushered in what Modi has characterized as “1,200 years of slavery.” This is the central trope of Hindu nationalist historiography and victimology — the juxtaposition of “a glorious Hindu golden age followed by an era of Muslim oppression.”

    In order to bolster their case of that golden age, Hindu nationalists have gone to great lengths, in some cases transcending into the ridiculous. A case in point is the various claims that in ancient times, India already achieved stunning scientific and technological accomplishments, from advanced reproductive technologies to stem cell research, “spacecraft, the internet, and nuclear weapons — long before Western science come on the scene.” More often than not, these claims were advanced not by crackpots but by respected scientists fallen under the sway of Hindu nationalist nostalgia.

    In both cases, the combination of nostalgia and populism serves to mobilize the “true” people against a Westernized elite, from — but not of — the people. At the same time, it serves as a means to eradicate national humiliations: in the case of India, centuries of being subjugated to Islamic rulers; in the Turkish case, the dismantling of the Ottoman Empire following World War I, symbolized by the Treaty of Sèvres which, had it ever been implemented, would have left only a small area around Ankara under Turkish rule.  

    Erdogan’s recent decision to reclassify the Hagia Sophia — once the “ultimate icon of Christian civilization” — as a mosque, constitutes a reversal of Kemalist “secularist suppression.” Similarly, laying the foundations of a Ram temple on the site of an ancient mosque, known as Babri Masjid, in the city of Ayodhya in northern India, serves as highly visible expressions of the will to reverse — and perhaps even avenge — the past.

    Resurrecting Grievances

    The arguably most successful populist resort to this combination of grievance-based nostalgia and the exploitation of national humiliation is epitomized by Hungary’s Victor Orban. To be sure, Hungarians have good reasons for historically-grounded grief — the bloody suppression of the Hungarian people’s 1956 uprising against the communist regime and the Soviets is a prominent case in point. The most important episode, however, which continues to haunt Hungarian collective national consciousness until today, dates back to 1920, when the victorious powers imposed on Hungary the Trianon Treaty. The treaty deprived Hungary of two-thirds of its prewar territory and three-fifths of its prewar population, which turned Hungary into what Stanley Payne has called “the most nationally aggrieved state in all of Europe.”

    Victor Orban has been particularly adroit not only in manipulating diffuse sentiments of humiliation and resentment but also in evoking nostalgia for Hungary’s golden age. This was the period spanning from the formation of the dual monarchy following Vienna’s defeat in the Austro-Prussian war of 1866, which put the Hungarians on par with the Austrians until the end of the First World War — a period which saw all ethnic Hungarians united in the same state. Together, these two ideational elements constitute the core of Orban’s national-populist project, which over the past decade or so has progressively gained cultural hegemony in Hungary.

    Orban, Modi and Erdogan are prominent examples of how nationalist-populist actors have weaponized nostalgia for political gain the same way they have weaponized other emotions such as anxiety, anger and empathy. As Yale professor Paul Bloom has recently pointed out in his indictment of emotional empathy, “unscrupulous politicians use our empathy for victims of certain crimes to motivate anger and hatred toward other, marginalized, groups.” Emblematic of this strategy is Donald Trump’s exploitation of “our empathic feelings toward victims of rape and assault to build hatred toward undocumented immigrants.”

    Here, Trump instinctively exploited a central characteristic of this emotion, namely its intrinsic in-group bias. Neuropsychological studies suggest that more often than not, empathy extends significantly more to those we feel close to rather than out-groups, “potentially making them likely targets for prejudice and discrimination.”

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    The same is true for nostalgia. Experiments in social psychology have shown that collective nostalgia — the type of nostalgia routinely evoked by national populist actors — tends to confer “sociability benefits,” such as support and loyalty, to the in-group while tending to evoke exclusionary sentiments toward out-groups. Constantine Sedikides and Tim Wildschut have argued that “Collective nostalgia’s sociality is amenable to exploitation and can have controversial ramifications.” A recent empirical study on the effect of national nostalgia on out-group perceptions in the context of the 2016 US presidential election shows that national nostalgia “significantly predicted racial prejudice and this relationship was mediated by perceived outgroup threat.”

    This also holds true for Europe. A Bertelsmann study on nostalgia from 2018 found that more than three-quarters of European respondents classified as nostalgics (two-thirds of the sample) agreed with the statement that recent immigrants did not want to integrate into the host society; more than half thought they were taking jobs away from the natives. Under the circumstances, it is hardly surprising that radical right-wing populist parties have found fertile ground for their nativist politics of exclusion.

    A case in point is the adoption of the concept of the folkhemmet by the Sweden Democrats, the country’s radical populist right. The folkhemmet (people’s home) stands for the heydays of Sweden’s Social Democratic welfare state, a golden age that spanned four decades, from the 1930s to the 1970s. This was a time of ethnocultural homogeneity, civic egalitarianism and social solidarity. The Sweden Democrats’ adoption of the sentimental notion of the folkhemmet appeals to nostalgic sentiments while, at the same time, serving as a justification for the exclusion of non-ethnic minorities such as refugees from social benefits.

    The Sweden Democrats’ manipulation of nostalgia in the service of their politics of welfare chauvinism is exemplary of the flexible and polyvalent possibilities of applying this emotion. It is for this reason that nostalgia lends itself ideally to national populist mobilization. One of the central ideational tropes informing populism is the notion of the united people, a unity derived from a shared past and a common destiny, confronting a common adversary, if not an enemy. The evocation of a glorious past is a great way to make people feel good about themselves at a time when there is little to be cheerful or optimistic about.

    These days, the glorious past is not far away, not more than two years, the time before social distancing, lockdowns and vaccination jitters. Under the circumstances, nostalgia is likely to persist, ready to be exploited by populist entrepreneurs for political gain. Those who still think that the pandemic will substantially weaken support for the radical populist right might take a look at Spain. There, Vox, whose rhetoric is replete with nostalgia, is the only party that has substantially increased its support base over the past several months.

    *[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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    Expect an Uneven Rebound in MENA and Central Asia

    Projections, no matter how well-grounded in analytics, are a messy business. Three years ago, COVID-19 was unheard of and then-US President Donald Trump’s politics caused uncertainty in international relations, with democracy in retreat across the world. Despite the best-informed prognostications, predictions failed to capture cross-border variables such as immigration and civil conflict that have yet to play out in rearranging local and regional economic prospects.

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    No region is more complex in terms of confusing signals than the Middle East and North Africa (MENA) and Central Asia. This is the subject of the latest report by the International Monetary Fund titled, “Regional Economic Outlook: Arising from the Pandemic: Building Forward Better.”

    What is clear from a review of the data is that 2020 was an outlier in terms of trend lines earlier in the decade, skewed by the COVID-19 pandemic, erosion of oil prices, diminished domestic economic activity, reduced remittances and other factors that have yet to be brought into an orderly predictive model. Even the IMF had to recalibrate its 2020 report upward for several countries based on rising oil exports, while decreasing marks were given countries slow to vaccinate against COVID-19 and that rely on service-oriented sectors.

    Mixed Outlook

    The numbers indicate a mixed picture, ranging from Oman growing at 7.2% and the West Bank at 6.9%, to Lebanon receiving no projection and Sudan at the bottom of the range with a 1.13% real GDP growth rate. Yet, so much can impact those numbers, from Oman’s heavy debt burden to continuing turmoil in intra-Palestinian and Palestinian-Israeli affairs.

    The good news is that real GDP is expected to grow by 4% in 2021, up from the projection last October of 3.2%. Much of the lift has come from two factors: a more optimistic trend line for the oil producers and the rate of vaccinations in countries that will promote business recovery.

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    As CNBC pointed out, Jihad Azour, director of the IMF’s Middle East and Central Asia department, noted that recovery will be “divergent between countries and uneven between different parts of the population.” Key variables include the extent of vaccine rollout, recovery of tourism and government policies to promote recovery and growth.

    In oil-producing countries, real GDP is projected to increase from 2.7% in 2021 to 3.8% in 2022, with a 5.8% rise in the region’s sector driven by Libya’s return to global markets. Conversely, non-oil producers saw their growth rate estimates reduced from 2.7% to 2.3%. In fact, Georgia, Jordan, Morocco and Tunisia, which are highly dependent on tourism, have been downgraded in light of continuing COVID-19 issues such as vaccination rollout and coverage.

    As the IMF report summary notes, “The outlook will vary significantly across countries, depending on the pandemic’s path, vaccine rollouts, underlying fragilities, exposure to tourism and contact-intensive sectors, and policy space and actions.” From Mauritania to Afghanistan, one can select data that supports or undercuts the projected growth rates. For example, in general, Central Asia countries as a group seem to be poised for stronger results than others. Meanwhile, Arab countries in the Gulf Cooperation Council face greater uncertainty, from resolving debt issues to unforeseen consequences of negotiations with Iran.

    So, how will these projects fare given a pending civil war in Afghanistan and the possible deterioration of oil prices and debt financing by countries such as Bahrain and Oman? Highlighting this latter concern, the report goes on to say that public “gross financing needs in most emerging markets in the region are expected to remain elevated in 2021-22, with downside risks in the event of tighter global financial conditions and/or if fiscal consolidation is delayed due to weaker-than-expected recovery.”

    An Opportunity

    Calling for greater regional and international cooperation to complement “strong domestic policies” focused on the need “to build forward better and accelerate the creation of more inclusive, resilient, sustainable, and green economies,” the IMF is calling on the countries to see a post-pandemic phase as an opportunity. This would involve implementing policies that promote recovery, sustain public health practices that focus on sustainable solutions, and balance “the need for debt sustainability and financial resilience.”

    There is great uncertainty assigning these projections without more conclusive data on the impact of the pandemic, the stress on public finance and credit available to the private sector, and overall economic recovery across borders that relies on factors such as the weather, oil demand, external political shocks and international monetary flows. The IMF report is a very helpful bellwether for setting parameters for ongoing analyses and discussions.

    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 Is Behind the Escalation on the Kyrgyz-Tajik Border?

    At the end of April, a conflict over water escalated into the most serious border clashes between Kyrgyzstan and Tajikistan since their independence from the Soviet Union. By May, 36 deaths had been reported on the Kyrgyz and 19 on the Tajik side, with more than 270 injured and dozens of homes destroyed.

    This was not the first outbreak of armed violence in the contested territories of the Fergana Valley, whose densely populated oases depend on scarce water sources for irrigation. The administrative boundaries in this multiethnic area were drawn during Soviet times and have been disputed ever since. When the former Soviet republics of Uzbekistan, Kyrgyzstan and Tajikistan gained independence in 1991, delimitation of what were now international borders became a major issue and is still the subject of negotiations.

    Conflict Dynamic

    Almost half of the 970-kilometer Tajik-Kyrgyz border remains contested, with large sections neither demarcated nor controlled by posts. It is here, in the mountains between Batken in Kyrgyzstan and Isfara in Tajikistan, that the most recent violence occurred. Although the Kyrgyz and Tajiks have coexisted for generations here, population growth and increasing scarcity of arable land and water have raised tensions, resulting in occasional violence between the inhabitants of the border zone.

    This time, the bone of contention was the installation by Tajik workers of a surveillance camera at a joint water supply station situated on Kyrgyz territory to monitor the distribution of water between the two sides. The distribution is governed by bilateral agreements, but the Tajiks apparently believed that the Kyrgyz were exceeding their allocation. While Kyrgyzstan had earlier installed its own camera at that water station, the Tajik move was perceived to be a provocation, and a Kyrgyz local official, accompanied by law enforcement and an angry crowd, demanded the removal of the Tajik camera. The situation quickly escalated to involve more than a hundred participants on each side, with border guards using hunting rifles, handguns and, by some accounts, even light military weapons, including mortars.

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    A similar but much smaller incident occurred in September 2019 as clashes claiming lives on both sides have become frequent over the past decade. The drivers of violence are mostly economic in nature, revolving around the distribution of local natural resources. This time, a truce was agreed on the evening of April 29 and eventually stopped the fighting that had spread further to border villages as far as 70 kilometers from the initial incident.

    While each side blames the other for starting it, the violence does not seem to have happened by accident. In February, amidst fresh complaints about Tajiks illegally using land belonging to Kyrgyzstan, Kyrgyz activists demanded that the newly elected President Sapar Japarov, who espouses nationalist and populist positions, take up the border issue. Shortly afterward, in late March, Kamchybek Tashiev, the chairman of Kyrgyzstan’s State Committee for National Security, proposed an exchange of territory involving the densely populated Tajik exclave of Vorukh. The offer was castigated by former Tajik Foreign Minister Hamroxon Zarifi, with officials and commentators on both sides insulting each other on social media and other outlets.

    A few days later, Kyrgyzstan held military exercises in its Batken region, involving as many as 2,000 soldiers, 100 tanks and armored personnel carriers; around 20 units of self-propelled artillery were also involved in the drill. On April 9, Tajik President Emomali Rahmon paid a demonstrative visit to Vorukh and declared that exchanging the exclave for contiguous territory was out of the question.

    Limited Scope for External Action

    Given this background of tensions, a heightened state of alert and military deployment on the Tajik side of the border would be expected in response to the Kyrgyz land swap proposal and the subsequent military exercise. It certainly testifies to deeply entrenched mistrust on the Tajik side. The same mistrust and suspicion characterize the Kyrgyz narrative that the recent incident was planned and that the Tajik president is heading for war with Kyrgyzstan in order to distract his nation from the ever-worsening economic situation.

    The two sides have now announced that they will negotiate the demarcation of a 112-kilometer section of the border, although the details remain unclear. Given the conflicting interests and strong emotions attached to the border issue, new clashes can flare up at any moment. External actors have little influence and, as things stand, a lasting solution is a remote prospect. Efforts should therefore concentrate on confidence-building along two axes: humanitarian engagement involving NGOs and Kyrgyz and Tajik communities in the border areas, and strengthening existing early-warning mechanisms to help the two governments prevent future escalations.

    The conflict early-warning framework of the Organisation for Security and Cooperation in Europe (OSCE) could be employed in coordination with the two governments. The EU and UN could also contribute by training local officials in conflict resolution and crisis response. Local police should have rapid response teams ready to intervene to stop local clashes. Last but not least, the United Nations in particular should work toward resolving the underlying water resource conflict by helping establish a fair distribution accepted by both sides.

    *[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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    Where India Went Wrong

    In just over a month, India has gone from boasting about its vaccine diplomacy to becoming the global epicenter of the COVID-19 pandemic. As this author explained in a previous article, many have questioned whether India’s vaccine diplomacy was a bold masterstroke or an unwise distraction.

    Before the start of the second wave of COVID-19 infections in March, the pandemic seemed to be under control in India. In September 2020, the country recorded an average of 95,000 daily cases of COVID-19 during the peak of the first wave. By January 2021, that figure had dropped to under 20,000.

    At the same time, the United States went from around 35,000 confirmed cases per day in September to a peak of over 300,000 in January. At the start of the year, the United Kingdom was in the midst of a deadly second wave of infections, which reached over 60,000 cases a day. At that time, Britain was battling a more contagious strain of COVID-19 known as the “Kent variant,” which is named after the region where it was first discovered in England. Countries in Europe and around the world raced to halt flights to and from the UK in a bid to control the spread of the new strain, which they feared would soon go beyond the British isles.

    India’s Health-Care System Is in Shambles

    READ MORE

    To put these figures in perspective, the UK population is 66.6 million, the US is 328 million and India is around 1.36 billion. That means at the start of 2021, the infection ratio per 100,000 people in India was far lower than in the UK and the US.

    Lax Safety Measures

    As a result, Indians thought the country was beyond the worst of the pandemic. In March, Harsh Vardhan, the Indian health minister, said the country had entered the “endgame” of the health crisis. This led to a false sense of hope, which made the public and the central and state governments complacent. Restrictions that were brought in to curb the spread of the coronavirus were quickly eased. Life had almost returned to normal in January with the opening up of nightclubs, restaurants, hotels, tourist locations and public transport.

    At the same time, elections were announced in five states, including West Bengal, which the ruling Bharatiya Janata Party (BJP) had set its sights on winning. All political parties and their supporters held rallies with tens of thousands of people in attendance. The Hindu festival of Kumbh Mela attracted millions of people who took a dip in the Ganges, a river considered sacred in Hinduism. Nearly 60,000 spectators were also allowed to enter stadiums to watch cricket matches. All of these events took place with lax safety measures in place, with no social distancing or wearing of masks.

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    In hindsight, India did not anticipate a second wave of COVID-19. It lifted the lid on public restrictions at a time when countries such as the UK were battling a winter wave of infections. As mainland Europe realized, it was inevitable that the more contagious strain of COVID-19 discovered in the UK would spread. India failed to realize this despite repeated warnings.

    Now, India is battling its own second wave. The country has repeatedly broken the record for the daily number of confirmed cases of COVID-19. On May 2, India recorded more than 400,000 new daily infections. The actual number of cases is believed to be far higher due to a shortage of testing kits and people getting tested. Many Indians are not getting checked because they have no symptoms but are contagious or they are worried about testing positive for the virus. States like Bihar, West Bengal and Maharashtra have been accused of manipulating and underreporting the number of positive cases and deaths from COVID-19 to avoid criticism over inefficient governance. Worryingly, epidemiologists believe that India has not yet hit the peak of the second wave and that the worst is yet to come.

    No Improvement to Health Care

    It has been argued by many that the pandemic will not come to an end until it is under control everywhere. This is because “viruses naturally mutate over time.” There are currently thousands of mutations of the coronavirus around the world, but only a few of them are variants of concern for scientists. As more people contract the virus and spread it to others, it is inevitable that different strains will emerge. This is why despite the successful vaccination rollout in countries like Israel, the UK and the US, authorities have been cautious as they reopen economies and reduce restrictions for the public. The fear is that some variants, such as the one discovered in South Africa, will evade the existing vaccines and render them less effective.

    India has discovered a worrying COVID-19 variant of its own that is officially called B.1.617. This new strain — which is also known as the “double mutant” due to two mutations coming together in the same variant — accounts for 61% of infections in Maharashtra, a major epicenter for infections. It is unclear whether the Indian variant is driving the second wave, but it is believed to be more transmissible than previous strains of the virus. This is in addition to fear over the UK strain, which has spread to more than 50 countries.

    Complacency by the central and state governments has made the health care system crumble as Indians desperately seek medical assistance. When the pandemic first hit India in March 2020, authorities failed to strengthen the infrastructure at hospitals. As of 2018, the Indian government spent only 3.54% of GDP on health care. Other emerging economies such as Brazil and South Africa spent 9.51% and 8.25%, respectively. In India, there is only one doctor per 1,445 people, which is far lower than the figure the World Health Organization recommends. At public hospitals, there were only 0.7 beds available per 1,000 people.

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    In July 2020, state governments opted to build temporary centers for COVID-19 patients instead of buying additional beds for existing hospitals and allocating more resources. These centers were barely used. Due to their high maintenance costs, they were dismantled a couple of months before the second wave hit. Now, as hospitals face a short supply of beds and a high demand for them, some state governments are considering whether to rebuild the makeshift centers.

    In March 2020, Modi allocated 150 billion rupees ($2.03 billion) to strengthen the infrastructure of health care in India. The government purchased personal protective equipment (PPE) and an additional 60,000 ventilators. Yet as of last fall, just under 24,000 of the ventilators had been installed in hospitals across the country. Both public and private hospitals are currently short of beds, ventilators and oxygen in many major cities.

    As COVID-19 infections sweep the country, social media networks have been flooded with posts calling for help. Friends and families of those suffering from the virus have desperately sought to find available beds in hospitals, oxygen supplies or medication to combat COVID-19. Disturbing reports of people dying after being unable to access treatment have been heard all over the country. Ambulances and other vehicles with COVID-19 victims inside them have lined up outside hospitals that no longer have space available. Many hospitals have reported that patients they were treating died as the oxygen supply ran out. Outside crematoriums, the number of dead bodies is mounting.

    The Government’s “Vaccine Diplomacy”

    With the situation worsening, the BJP-led government has been criticized by Indian courts for focusing on state election campaigns instead of taking preemptive action to combat the second wave. Aside from easing restrictions too quickly and not reinforcing the health care system in time, many states face shortages of COVID-19 vaccines. In January, Prime Minister Narendra Modi claimed to have rolled out the “world’s largest vaccination drive,” aiming to get jabs in the arms of 300 million people by July. At the time of writing, only 2% of the Indian population — 29 million — has been fully vaccinated with two doses. This is compared to 23% in the UK and 30% in the US, both of which focused on vaccinating their most vulnerable citizens first to drive down new infections and deaths.

    India had other things in mind. It sought to distribute doses worldwide as part of its vaccine diplomacy. With the world’s largest manufacturer of vaccines, India has so far exported 66 million doses to 95 countries. Yet, earlier this year, the Modi government implemented an initiative to donate free batches in an attempt to boost the country’s soft power when the pandemic was seemingly under control. Many observers questioned whether the move was necessary instead of focusing on vaccinating Indians themselves. Toward the end of March, as infections increased and vaccines decreased, the Modi government realized that its decision to export millions of doses was premature. It decided to halt the export of doses and instead vaccinate Indians over the age of 45. Yet the damage had already been done due to poor planning by the BJP-led government.

    Embed from Getty Images

    Meanwhile, state administrations in Maharashtra, Delhi and Andhra Pradesh that are not ruled by the BJP have claimed they are running short of vaccines. Critics have accused Modi of playing politics with vaccine distribution as states with BJP governments, such as Gujarat, were given almost the same number of vaccine doses as Maharashtra, which has a population double that of Gujarat. The health minister has denied that regions were short of supplies and instead blamed state governments for the poor rollout of vaccines.

    In order to counter criticism over its inefficient planning, the central government announced on April 19 that all citizens above 18 would be able to get vaccinated from May 1; it had previously focused on health and frontline workers and those over 45. By opening the door for all adults, an additional 600 million citizens are now eligible. Yet with vaccines in short supply, some states have postponed the rollout. The website through which citizens can book a jab crashed minutes after it went live for the new age group.

    The government has approved additional funds for vaccine manufacturers to ramp up production. However, the increased production is unlikely to be available for a few months as vaccines go through a lengthy process of packaging and safety checks. To make up for this shortage, the government has fast-tracked the approval process for foreign-produced vaccines. These include Johnson and Johnson from Belgium and Sputnik V from Russia, which cost more than domestically-produced ones.

    Public Image

    In an attempt to maintain his public image, Modi addressed the nation on April 20. Indians needed assurances and demanded answers, but the prime minister offered none. He neither informed the public about plans to tackle the crisis, nor did he give any reasons about why the country is facing a horrific second wave. This is despite him previously boasting that India’s handling of the pandemic had been exemplary and should a model for the world. It seems the central government is content with placing the blame on state administrations and the public instead of admitting that it made mistakes.

    Earlier this week, the BJP failed to win in the state of West Bengal despite heavy election campaigning. It seems that Indians are beginning to realize that Modi’s preoccupation with his public image, and his need to win votes, is costing the country dearly. In fact, the obsession with elections on the part of Indian politicians has contributed to the second wave of COVID-19 infections. India can only hope that Modi and other politicians shift their focus from politics to health care before it is too late.

    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 Big Pharma Continue to Own the World’s Health?

    The news from India concerning the ravages of COVID-19 is now beyond alarming. New York Times correspondent Jeffrey Gettleman describes a nation stricken by “the fear of living amid a disease spreading at such scale and speed.” In what sounds like the screenplay of a sci-fi catastrophe film, scientists are talking about an invasion by a “double mutant.” Doctors say the peak is still weeks away as hospitals, filled to capacity, lack the means to keep patients alive.

    The Biden administration has exceptionally called into question the US policy of hoarding vaccines for domestic use. It has agreed to share with India millions of doses of AstraZeneca vaccine that was stockpiled while awaiting authorization for use on the US market. This became possible because it turns out the stock of authorized vaccines will be sufficient for domestic needs.

    Following a telephone conversation with Indian Prime Minister Narendra Modi, President Biden explained, somewhat cryptically, that the US would be sending “the actual mechanical parts that are needed for the machinery they have to build a vaccine.” Does this mean India will be able to manufacture vaccines whose patents are held by Western pharmaceutical companies? The Indian Express notes that Biden’s initiative “comes after criticism of Washington over its delay in responding and its earlier cold shoulder to a request for lifting the freeze on export of raw materials linked to vaccine manufacturing.”

    Bill Gates and the Zero-Sum Vaccination Game

    READ MORE

    Everyone should know by now that the ice pack for America’s cold shoulder was provided a year ago by philanthropist Bill Gates, who continues to oppose the sharing of know-how and industrial secrets with those who need it most on the grounds that it undermines his logic of industrial production. Even when the taxpayer foots the bill, Gates believes private companies should retain the right not only to skim off all future profits but to manage the scarcity that ensures the vaccine’s long-term profitability.

    Criticism of Gates has been rife in recent weeks, but nothing has been done to rectify an increasingly dangerous situation. The progressive populist website Public Citizen gives the details of a news conference in Washington, DC, led by Senator Bernie Sanders and several other lawmakers, accompanied by “leaders of labor, public health, faith and other civil society groups.” They urged the Biden administration to “join 100 other nations in supporting a temporary waiver of World Trade Organization (WTO) rules that now give a few corporations monopoly control over where and how much COVID-19 vaccines and treatments are made.”

    Bernie Sanders stated the basic case: “Poor people in Africa, Asia, Latin America, and throughout the world have as much a right to be protected from the virus, to live, as people in wealthier nations. To me, this is not a huge debate, this is common human morality.”

    Today’s Daily Devil’s Dictionary definition:

    Common human morality:

    An idea inherited from the past but clearly superseded in the present by the laws of free market capitalism that place economic interest above human need as the principal criterion governing public morality.  

    Contextual Note

    The above quote by Bernie Sanders also featured in an article on another popular progressive website, Common Dreams. Jake Johnson covered it for Salon. Though it was a DC news conference headed by a prominent political figure, none of the major corporate outlets apparently considered it worthy of attaining The New York Times’ vaunted standard of “all the news that’s fit to print.” No one would deny Sanders’s exceptional weight of moral authority, acknowledged even by those who don’t share his “democratic socialist” agenda. So why wasn’t this news?

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    The simple answer to that question is that in today’s hypercompetitive world, where everything is about power and profit, the corporate media apparently have no idea what to do with the idea of morality. The institutions known as the liberal corporate media – The New York Times, The Washington Post, CNN, MSNBC and even much of broadcast news — stopped showing an interest in common morality the moment they began placing their trust in the likes of the CIA, the NSA and the countless lobbies as their most reliable source of political truth and practical wisdom. To the degree that the various conservative media have always believed in the merits of a dog-eat-dog world where all must fend for themselves in a struggle for personal advantage, they tend to treat the very idea of common human morality as an unfortunate attribute of “snowflakes,” the sign of a weak character.

    Bernie Sanders grew up in a moment of history when the notion of a common human morality still had some impact on human behavior. Over the past half-century, it has been replaced by the kind of realism that focuses on personal ambition, private profit and the acquisition of power. Today’s media can only see Sanders’ invocation of common morality as a quaint vestige of former times.

    Historical Note

    In October 2020, the World Trade Organization published an optimistic take on how the current intellectual property rules could effectively meet the needs of a human race confronted with a global health problem. Subsequent events have revealed how disingenuous their claims were. “Collaboration and cooperation among health technology developers, governments and other stakeholders,” it suggested, “can be positively supported by the IP system as well as by guidance on lawful cooperation among competitors under a country’s domestic competition policy regime.”

    In a Politico article with the title “Why waiving patents might not boost global access to coronavirus vaccines,” the authors, Ashleigh Furlong and Sarah Anne Aarup, sum up the current state of the debate concerning the campaign to institute a temporary waiver of the reigning intellectual property rules to permit the production of vaccines in the countries where they are most needed: “By some accounts, the IP waiver is the answer to producing more desperately needed jabs, but it’s being blocked by Big Pharma and wealthy nations guarding their bottom line. Others attest that the waiver makes no sense for vaccines and is being backed by people who are seizing the issue as their chance to make more sweeping changes to the current IP system.”

    The “others” in the last sentence would undoubtedly include Bill Gates. This confrontation could potentially become a significant moment in history. Sadly, it will have required the death of millions of people to provoke the “sweeping changes” that are clearly needed to reform a deeply perverse system.

    The first indications of a historical shift may appear as soon as next week. On May 5, in response to an initiative of India and South Africa, the WTO’s General Council will meet to consider a patent waiver permitting nations in need to manufacture the vaccines whose IP is now jealously guarded by for-profit pharmaceuticals. According to the National Herald, the “United States so far has remained non-committal on the World Trade Organization’s (WTO) move of India and South Africa over this.” On Monday, the White House informed reporters “that no decision has been made yet” in response to the legislators’ demand for the US to back the proposal.

    The suspense will grow in the coming days. Will Biden dare to defy Bill Gates? Does the president of the United States hold more power than the pharmaceutical industry? Before proving himself to be the new Franklin Delano Roosevelt — a claim his supporters have made — can Biden show even a slight aptitude to emulate the other, earlier Roosevelt, the trust-busting Teddy?

    Theodore Roosevelt was not just a “rough rider” but also a rough and tough opinionated character. Yet he reflected something that still existed in his day, the idea of a common human morality. He expressed it through his trust-busting but also in various pronouncements. “This country,” he intoned, “will not permanently be a good place for any of us to live in unless we make it a reasonably good place for all of us to live in.” He could even demonstrate political analysis: “This crooked control of both the old parties by the beneficiaries of political and business privilege renders it hopeless to expect any far-reaching and fundamental service from either.”

    No establishment Democrat or Republican, not even Bernie Sanders, would dare to pronounce such an obvious truth today, when the corruption that fuels the political system has been sealed into the economic ideology that governs it.

    *[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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    Does Afghanistan Have a Green Future?

    Everyone has a different doomsday scenario for Afghanistan once US and NATO troops withdraw by September 11. The Taliban will take over and reimpose their repressive social agenda. Al-Qaeda will multiply rapidly and again become a global threat. Rival warlords will split apart the country. Another wave of Afghan refugees will overwhelm Europe. And then there’s the scenario in which China basically takes over the country, or at least the most sought-after parts of the country: the resources that lie beneath Afghan soil.

    “Afghanistan is one of the richest mining regions in the world, holding untapped mineral wealth and rare Earth elements estimated at roughly $3 trillion,” writes Chris Dolan in The Hill. “Competition with China over mineral wealth is intensifying and Afghanistan presents China with a new opportunity to expand its mining and transportation projects in the Belt and Road initiative.”

    Shaping the Future of Energy Collaboration

    READ MORE

    So far, the China “threat,” like all the others, is hypothetical since Beijing has been hesitant to invest a lot into the war-torn country. In 2007, China contracted to build a large copper mine at Mes Aynak but has done so little to set up operations there that the Afghan government is considering retendering the contract to another investor. The Chinese have their own complaints about the Mes Aynak arrangement, particularly around security and renegotiating some of the terms of the contract. Other than the stalled copper mine and some oil exploration, Chinese investments in Afghanistan have been minimal compared to what Beijing is pouring into neighboring Pakistan.

    Whether to block China, thwart al-Qaeda or muscle through a power-sharing deal with the Taliban, the United States has no plans to abandon Afghanistan completely. The Biden administration is looking to move US bases there to another country, perhaps in Central Asia. In the meantime, Washington will maintain its air war from aircraft carriers or from more distant points in the Middle East, and it will continue to train and provide financial support for the Afghan army.

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    As for ensuring that Afghanistan rises from the bottom of the world’s social and economic indices — currently, it’s the least peaceful, one of the most corrupt and one of the worst-off countries in terms of human development — the US appears to be washing its hands of any responsibility. So much for the Pottery Barn rule. From Washington’s perspective, Afghanistan was broken long before the 2001 invasion. Mission (never-to-be) accomplished.

    Indeed, in his remarks last week on “the way forward in Afghanistan,” President Joe Biden had very little to say about Afghanistan itself, aside from its military and the various threats the country poses to the United States. He said virtually nothing about the Afghan economy, Afghan society or the Afghan people. At most, the United States appears to be bracing for the worst-case scenario and preparing to minimize the impact on US national interests.

    A Different Future for Afghanistan

    When Seth Warren Rose looks at Afghanistan, he doesn’t see red, he sees green: the green of money, yes, but more importantly the green of environmental sustainability. “I grew up with Vietnam being considered a war not a country,” he told me. “Afghanistan is the same. Americans think of Afghanistan only as a war. But there are 30 million-plus people living there.”

    Rose’s outfit, the Eneref Institute, is gathering support from Afghan politicians for a bold initiative to make Afghanistan carbon-neutral. “If you look at the carbon footprint of Afghanistan, it’s minimal,” Rose continued. “They haven’t really industrialized. Obviously, they’ll let the world in once they establish a peace. But why don’t they establish a mechanism, as long as they’re selling their resources, to do so in a way that’s non-toxic, energy-efficient, and net-carbon zero?”

    As Rose explained to me, Eneref’s proposal is to keep Afghanistan’s oil in the ground but to develop methods of extracting other valuable underground resources in an environmentally more sustainable manner. In this way, the country could “use its mineral wealth to leapfrog industrialization.” This Lead the Leap campaign has lined up a number of prominent Afghans as advisers and secured the support of the Afghan senate.

    Extracting Afghanistan’s mineral wealth in a carbon-neutral fashion is easier said than done. Extractive industries are notoriously dirty, responsible for 80% of the planet’s biodiversity loss and half the world’s carbon emissions (and that’s just in the extraction process). Workers die in large numbers in the mining sector, whether immediately in accidents or through exposure to dangerous substances over the long term. Communities around mines have to deal with often-horrifying pollution in their air, land and water. And wherever mines extract valuable substances, conflict is sure to follow (see, for example, “blood diamonds”).

    Nor is it so easy to leapfrog over the extraction industry into a clean energy future. Many green technologies, such as solar panels, are dependent on an array of minerals like copper and zinc, while wind turbines and electric vehicles require inputs like cobalt, lithium and rare earth elements.

    Eneref’s bid to green Afghanistan’s mining sector is part of a much larger effort to make the entire production chain of the extraction industry sustainable. The World Bank, for instance, has launched a Climate Smart Mining initiative that focuses on using renewable energy in mining operations, preventing deforestation and promoting sustainable land-use strategies, and reusing minerals to minimize waste.

    The mining industry is also responsible for its share of “greenwashing,” making only cosmetic changes before proceeding with business as usual. Civil society organizations, shareholders and committed politicians can put pressure on companies to adhere to international regulations and corporate codes of conduct. But particularly in poor countries like Afghanistan, which are desperate enough for revenue in the short term to overlook longer-term environmental consequences, mining companies are more willing to cut corners when it comes to carbon emissions.

    But there’s another option.

    The Next OPEC?

    Afghanistan has little leverage over mining operations beyond the $3 trillion of natural resources beneath its soil. That wealth is useless, however, if Afghanistan can’t get it out of the ground. Perhaps the Chinese reluctance to invest more into copper extraction is a godsend. China, after all, pays little attention to sustainability in its extraction operations overseas.

    Many countries, like Congo and Venezuela, are in the same position as Afghanistan. If they rebuff China or any other potential investor, the latter can turn to more amenable investment opportunities elsewhere.

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    Unless, of course, all mineral-rich countries form a new cartel. Let’s call this cartel OMEC, the Organization of Mineral-Exporting Countries. This mineral-version of OPEC could impose its own carbon-reducing restrictions on the extraction industry. “No one country has the wherewithal, the power, the influence, to demand that Russia, China and the United States follow carbon-neutral rules,” Rose concluded. “So, let’s gather a third of the world to create a union.”

    Remember, the Organization of the Petroleum Exporting Countries (OPEC) wasn’t just a mechanism to extract more money from the petroleum-desperate. It was originally designed to restrict oil production. As Lester Brown recounts in “Building a Sustainable Society,” the founder of OPEC, Venezuelan Minister of Mines and Hydrocarbons Juan Pablo Perez Alfonso, believed that “his mission in life was to stop the waste of valuable energy resources. When describing his early vision of OPEC, he said, ‘Most people see OPEC as a way to raise oil prices, but I see it as a way to lower the use of energy.’ Shortly before he died in late 1979, he referred to OPEC as the ‘leading ecology group in the world.’”

    OMEC could similarly perform a valuable ecological function by regulating the extraction of minerals to keep the price high, reduce waste and help turn countries like Afghanistan into the mineral equivalent of a Gulf state. Of course, to avoid the “resource curse,” OMEC members would have to submit to serious anti-corruption programs, devote profits to communal advancement rather than individual wealth and set aside a portion of proceeds to future contingencies (like Norway’s oil fund).

    But most of all, OMEC members must leverage their relatively small carbon footprints into economic advantage. I’ve written elsewhere about how a country like North Korea, which lags far behind South Korea on virtually every economic and social indicator, could parlay its single advantage of a smaller carbon footprint into a clean energy future that would lead the Korean peninsula and the region. Like Afghanistan, North Korea has significant mineral resources that could finance such a transformation.

    For decades, countries like North Korea and Afghanistan were promised material advancement — leading perhaps someday to membership in the club of richest nations called the Organization of Economic Cooperation and Development (OECD) — if they just followed the conventional path of industrialization. The poorest of the poor haven’t made much progress in the last couple decades, and that industrial model has proved disastrous on a number of levels. Perhaps it’s finally time for them to band together according to an entirely different model of economic cooperation and development.

    *[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 Case of Forced Cremations in Sri Lanka

    From 1983 to 2009, Sri Lanka saw a bloody civil war between the majority Buddhist Sinhalese and the minority Tamils. The conflict led to invaluable losses both economically and politically. To this day, the deep socio-religious wounds have yet to heal on the island in South Asia.

    Since the war ended, there have been intermittent episodes of violence between ethnoreligious groups. Although the patterns seem similar, different communities are now involved in the confrontations. The focus has shifted to make Sri Lankan Muslims — who make up around 9.7% of the country’s total population — the new target of extreme Buddhist Sinhalese factions that jumped on the bandwagon of rising Islamophobia.

    Islamophobia in Sri Lanka

    In Sri Lanka, Muslims are defined by faith, not ethnicity since they are neither Tamil nor Sinhalese. During Mahinda Rajapaksa’s presidential term in office from 2005 to 2015, as well as under incumbent President Gotabaya Rajapaksa, Muslims experienced a rise in Islamophobia. Acts perceived as anti-Muslim include calls, in 2013, by a hardline Buddhist Sinhalese group to boycott halal food items. In 2019, the government banned burqas following the Easter Sunday bombings in which Islamist militants killed 269 people at churches and hotels.

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    The most serious incidents involving the Muslim community since the end of the war took place in Aluthgama in 2014, Gintota in 2017 and the Ampara and Kandy’s districts in 2018. Acts of violence involved the burning of mosques, the destruction of Muslim-owned property, the displacement of thousands of civilians and the loss of lives.

    The brutal attack on Easter Sunday led to, among other things, the draconian application of the Prevention of Terrorism Act (PTA), which increased pressure on an already scrutinized minority. A well-known example of this backlash against Muslims was the case of Mohamed Shafi, a gynecologist at the Kurunegala Hospital. Shafi was arrested in 2019 under the PTA on trumped-up charges of illegally sterilizing Sinhalese women. Hejaaz Hizbullah, a senior lawyer, peace advocate and human rights activist, is currently in detention under the PTA. He has been accused of “aiding and abetting” one of the suicide bombers who attacked churches on Easter Sunday and “for engaging in activities deemed ‘detrimental to the religious harmony among communities.’”

    Forced Cremations

    The COVID-19 pandemic has provided the perfect breeding ground for far-right governments to bulldoze the human rights of minorities. In Sri Lanka, Muslims have been the target.

    Embed from Getty Images

    In December 2020, Fahim, a three-wheeler taxi driver, and his wife mourned not only the death of their 20-day-old son, but the forced cremation of his tiny body by state authorities. The newborn was admitted to the hospital, where he passed away after contracting COVID-19. Fahim was denied access to his son’s corpse and, despite refusing to give his consent, the baby was cremated just days later.

    That family’s grief was felt by many Muslims across Sri Lanka. Since COVID-19 first reached Sri Lanka in early 2020, the government announced a mandatory cremation-only policy. The government claimed this was to prevent the possible spread of the disease by coming into contact with infected corpses. The policy alarmed Sri Lankan Muslims as cremation is forbidden in Islam. Several petitions and pleas were made by the minority community to allow for the burial of their loved ones. Yet the Sri Lankan state, which has a long history of violence against minorities, refused to change its policy for over a year.

    The anguish experienced by Sri Lankan Muslims was by itself a great burden to bear during these unprecedented times. But the state did not hold back on delivering further blows to the community. According to Amnesty International, families were “forced to bear the cost of cremation, typically around LKR 50,000-60,000 (approximately USD270-325), in a year that has economically strained many families.” The human rights organization stated, in December 2020, that many families led a difficult and painful protest by refusing to accept the ashes and making the associated payments required for cremating their loved ones.

    Burying the Dead

    In April 2020, Sri Lankan Muslims saw a glimmer of hope when the World Health Organization (WHO) declared that burials were safe. The WHO announced that there is no evidence to suggest that the coronavirus, which causes the COVID-19 disease, can spread from an infected corpse. Meanwhile, in December, top Sri Lankan doctors released a statement urging for the burial of Muslim victims of COVID-19. They stated that “each citizen of Sri Lanka should be allowed to be cremated or buried as per his/her and the family’s desire within the strict guidelines recommended by the Ministry of Health.”

    Despite expert opinions and recommendations to allow COVID-19 victims to be buried, the Sri Lankan government claimed that doing so “could contaminate ground water.” In an interview with the BBC, Professor Malik Peiris, a world-renowned Sri Lankan virologist, stated that COVID-19 is “not a waterborne disease.” He added: “I haven’t seen any evidence to suggest it spreads through dead bodies. A virus can only multiply in a living cell. Once a person dies, the ability of the viruses to multiply decreases. … Dead bodies aren’t buried right in running water. Once you bury the body six feet under wrapped in impermeable wrapping, it is highly unlikely it would contaminate running water.”

    In January 2021, an expert panel appointed by Sri Lanka’s Ministry of Health revised its initial guidelines by approving either burying or cremating COVID-19 victims. But the minister of health, Pavithra Wanniarachchi, chose to ignore the recommendation. She said in parliament that “the decision to cremate COVID dead in Sri Lanka will not be amended on religious, political or any other grounds.” She claimed a sub-committee said corpses should be cremated.

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    Sri Lankan Muslims have raised concerns at how the community reacted to the state-sanctioned racism. In January, Sri Lanka’s Muslim Council (SLMC) claimed that more than half of the island’s COVID-19 victims were from the Muslim community. “We have a disproportionate number of fatalities because Muslims don’t seek treatment fearing that they will be cremated if they are diagnosed with the virus after going to hospital,” spokesman Hilmy Ahamed told AFP.

    The SLMC and Sri Lanka’s justice minister, Ali Sabry, accused the government of trying to provoke the youth into doing “something rash” by refusing to allow Muslims to bury their dead. There have been no reports of isolated incidents or evidence of young Muslims taking to violence in response.

    Under Pressure

    While Muslims were singled out by the state and Buddhist Sinhalese hardliners, they received support from religious leaders and Sri Lankans of other faiths. Acts of solidarity took place in recent months and many Sri Lankans spoke out against the cremation-only policy. The government, which is losing public confidence over its handling of the pandemic, had been under intense pressure to overturn its decision. Aside from concerned citizens, international bodies such as the United Nations and the Organization of Islamic Cooperation condemned the forced cremations.

    On February 22, as the UN Human Rights Council (UNHRC) commenced its 46th annual session, Sri Lanka was in a precarious position. With a backlog of war crimes that remained unaddressed, a UNHRC resolution against Sri Lanka loomed. On February 25, the Sri Lankan government issued its official gazette, finally allowing Muslim and Christian victims of COVID-19 to be buried.

    *[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