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      How Dubai and Abu Dhabi See the World Cup

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      With the Euros over, attention outside the UK is turning to the 2022 FIFA World Cup in Qatar. The focus in Britain, quite rightly, remains on the racist abuse directed at black members of the English football team and the extent to which the prime minister and the home secretary contribute to enabling a culture in which such abuse can flourish.

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      In the Gulf, the lucrative rights to World Cup packages are now being awarded. In Kuwait, ITL World has been appointed the sales agent. The company’s CEO, Siddeek Ahmed, could hardly contain his delight at being able to offer “fans a unique opportunity to purchase ticket-inclusive hospitality packages” for the World Cup. In addition to game tickets, the packages include flights, accommodation, transport and “leisure” programs. According to Arabian Business, the deals for the main venue, the 80,000-seat Lusail Stadium, will run from $14,350 to $74,200. That buys you all 10 matches hosted there, including the quarter-final, semi-final and final. If you are not short on cash, you can pick up a 40-seat suite at the stadium for just $2.6 million.

      In Dubai, Expat Sport Tourism DMCC won the rights, with its website urging football fans to be a part of history to see the first World Cup held in the Arab world. “From the pinnacle in high end corporate experiences to individual hospitality solutions for football fans, we can cater for all those wishing to be part of FIFA World Cup 2022” is how the firm put it.

      Not Everyone Is Happy

      With an estimated 1.5 million fans heading to Qatar next year, Dubai, with its well-established tourism and entertainment sectors, sees itself as ideally placed to cash in on the World Cup bonanza. Yet others in the United Arab Emirates are less welcoming.

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      Mohammed al-Hammadi is the president of the Emirates Journalists Association and editor-in-chief of the newspaper Alroeya, based in Abu Dhabi. Among the core values listed on the paper’s website are “apply best practice in line with the journalism codes” and “be an objective and trustworthy information tool.”

      Hammadi is a strong proponent of normalization. He spoke at a webinar in October 2020, after the UAE and Bahrain had announced their plan to normalize relations with Israel. The event was organized by a pro-Israeli think tank, the Washington Institute for Near East Policy (WINEP). Hammadi said he believed in both peace and advancing the rights of Palestinians, but people like him who “speak in favor of peace are stigmatized … and find themselves falling under attack.” He added that the word normalizing “has a very negative connotation in our region.”

      In June, he drew the ire of African journalists with a ham-fisted attempt to have them join a coordinated media attack on the World Cup in Qatar. They adopted a resolution denouncing efforts to “use Africa and its institutions as political football in order to settle scores in a political dispute.” The statement said:

      “While journalists in the East African region struggle to preserve their independence and freedom from rogue government and commercial interests that threaten the integrity of journalists, an outside actor is behind attempts to manipulate, divert and involve journalists in an issue completely outside the scope and powers of journalists and their unions.
      In the same way that journalists and their unions in East Africa are calling, confronting and protesting against governments for their interference in the work of journalists and the curtailment of their freedoms, all foreign powers that have a negative and false agenda must be condemned and publicly challenged as a matter of principle and consistency.”

      Twelve days later, the website Emirates Leaks, citing what it called “reliable sources,” alleged that Hammadi had attempted to pressure the heads of the journalism unions of Norway and Finland. According to the site, he wanted them to influence journalism unions in Asia and Africa to “coordinate attacks against Qatar and tarnish its image before hosting the World Cup.”

      His efforts occasioned a written question on June 23 in the European Parliament from Fulvio Martusciello. The Italian MEP accused the head of the Emirates Journalists Association of leading a smear campaign against Qatar: “Al Hammadi asked the Finnish and Norwegian Journalists Federations to exercise influence on journalists unions that he supports financially to engage in the Abu Dhabi campaign and offend Qatar. He also tried to offer them financial bribes and expensive gifts in return for achieving Abu Dhabi’s inflammatory goals.”

      So, while Dubai can barely contain its World Cup excitement, Abu Dhabi appears set to continue its anti-Qatar campaign. Imagine for a moment that the UAE was a football side and its two big stars had separate agendas and were playing only for themselves. That is not a winning formula and it’s something a good manager, like England’s Gareth Southgate, would quickly sort out.

      *[This article was originally published by Arab Digest, a partner organization of Fair Observer.]

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

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      The Role Turkey Can Play in Afghanistan

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      Turkish President Recep Tayyip Erdogan caused waves at the NATO summit in June, announcing that Turkey would continue to protect Kabul airport following the complete NATO withdrawal from Afghanistan. Kabul airport is Afghanistan’s principal air connection to the outside world, and it is vital for the security of diplomats and aid workers in the country.

      The proposal needs to be seen in the context of the broad militarization of Turkish foreign policy. In recent years, Ankara has deployed armed forces for geopolitical leverage in Syria, Somalia, Libya, the Eastern Mediterranean and Azerbaijan. The associated costs have remained very low, further emboldening Turkish policymakers. In Somalia and Syria, the Turkish military also gained experience operating in theaters where armed militants pose significant security challenges.

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      The main factor behind the airport proposal, however, is Turkish-American relations. Ankara hopes to regain favor with Washington after a string of diplomatic crises. The Turkish side knows its hand is weakened by issues such as its acquisition of the Russian S400 air defense system and Washington’s responses, including CAATSA sanctions and removing Turkish manufacturers from the supply chain for the new F35 warplane. The Countering America’s Adversaries Through Sanctions Act, known as CAATSA, is a law passed by the US Congress in 2017 that intended to penalize Russia. In December 2020, Turkey was added to the sanctions list for its purchase of the S400. The proposal to help out in Afghanistan emerged as an obvious way to improve bilateral relations with the US.

      A Good Reputation

      As the only Muslim-majority member of NATO, Turkey played important roles in Afghanistan. Former Turkish Foreign Minister Hikmet Cetin served as NATO’s first senior civilian representative in Afghanistan and Turkish officers twice commanded the International Security Assistance Force (ISAF). There are currently 500 Turkish soldiers serving with the NATO mission. Turkey never deployed a combat force, however. The Taliban, in turn, avoided targeting Turkish forces; there has only been one attack on a Turkish unit.

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      Additionally, Turkish state institutions and NGOs conduct a broad range of cultural and educational activities and supply extensive humanitarian aid. Reports confirm the ability of Turkish officials and volunteers to engage with Afghan society on equal terms. Shared religious and cultural elements certainly help. Although the Taliban accuses of Ankara being too pro-Uzbek, Turkey is viewed very positively across Afghan society. This, together with its ability to talk with all sides and its non-combat role in ISAF, places Turkey in a unique position.

      However, protecting Kabul airport would change the nature of Turkey’s involvement. While the Afghan government welcomed the idea, the Taliban have repeatedly declared that they will not tolerate even a residual foreign force. That implies that the Taliban would target Turkish troops, risking drastic consequences for Turkey. To avoid this, Turkey’s extended stay requires prior agreement with all Afghan parties, and Ankara will use its diplomatic capacity to seek such an agreement. Moreover, rather than focusing solely on leaving a residual force, Turkey could use its diplomatic and humanitarian leverage to pursue a more comprehensive approach to the Afghan problem.

      Intra-Afghan Agreement Needed

      The current peace agreement involves only the United States and the Taliban. There is as yet no peace agreement between the Afghan government and the Taliban. As the withdrawal of NATO forces accelerates, the conflict is now between the Taliban and Afghan government forces. Despite NATO’s decades of investment, the Afghan army is no match for the Taliban. In fact, a major Taliban offensive is already underway. Kabul may not fall immediately, but time is on the side of the insurgents. But if the Taliban overplays its hand and tries to dominate the entire country, there will be a backlash, particularly from the non-Pashtun ethnic communities.

      In that case, Afghanistan is likely to descend back into civil war. Under such circumstances, a Turkish military presence would be too risky and unsustainable, even with agreements with the government and the Taliban. Rather than focusing only on protecting Kabul airport, Turkey should place its diplomatic weight behind a peaceful settlement between the Taliban and the government before violence spirals out of control. The first step toward a broader agreement between the Afghan parties themselves would be for Ankara to reach an agreement with each of them. This road is arguably a stony one, but it offers much greater rewards. Turkey would certainly need the support of other countries to overcome the obstacles involved.

      The first challenge is to bring the Taliban to the negotiating table with the Afghan government, which Turkey and the international community have so far failed to achieve. Here, Turkey can benefit from its exceptionally good relations with Pakistan and Qatar. Qatar is home to the Taliban’s only external office and relations are cordial. Pakistan, where many senior Taliban leaders reside, has the greatest leverage. Even though large segments of Afghan society frown on Pakistan’s involvement in their country, its influence over the Taliban would be crucial for reaching a negotiated settlement.

      Europe should be more active and support Turkey’s efforts diplomatically and economically. As well as that being the morally right thing to do, Europe has a tangible interest too. A resurgence of fighting in Afghanistan would trigger a wave of migration. Afghans are already the second-largest migrant community in Turkey after the 3.6 million Syrian refugees. They also formed the second-largest group of new asylum applications in Germany in 2020. Given Iran’s open-door policy, it would be realistic to expect waves of Afghan migration to Turkey and on to Europe. The specter of a new refugee crisis looms.

      *[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 relating 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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      Britain Must Protect Afghanistan’s Chevening Scholars

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      On June 1, the UK defense and home secretaries announced that the local staff who worked for the British government in Afghanistan, including many interpreters for the British military, would be eligible for expedited relocation to the UK under the Afghan Relocation and Assistance Policy (ARAP).

      The new policy states that “any current or former locally employed staff who are assessed to be under serious threat to life are offered priority relocation to the UK regardless of their employment status, rank or role, or length of time served.” To date, more than 1,300 Afghans and their families have been relocated to the United Kingdom. Another 3,000 more are expected to relocate.

      Scholars Under Threat

      The ARAP rightly assesses that the local Afghan staff who have worked for the British over the past 20 years are at risk. However, it fails to recognize that Afghan graduates of British universities face a similar threat. These graduates have been one of the main drivers of development in Afghanistan. They have worked for the United Nations, the World Bank and various government entities around the country. They have also promoted British cultural values in Afghanistan. Naturally, the Taliban does not view them favorably.

      In particular, the Chevening scholars attract the ire of the Taliban. Over the years, the British Foreign, Commonwealth and Development Office (FCDO) has given out scholarships to some of the most promising Afghan students. Their identification with Britain has attracted special attention from the Taliban, who have called them the “spies of the Englishmen” and “children of the devil ” among other things. Such sayings have not been reported in Western media, but Afghans know this only too well.

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      International forces have just withdrawn from the Bagram airbase. The Taliban are gaining ground and have even captured the main border crossing to Tajikistan. The Afghan government forces are crumbling. Kabul is already a dystopian city. The progress Afghanistan made around human rights, women’s empowerment, education, economic development and in other areas is already being rolled back. The Taliban view of the world is almost medieval. Harsh Islamic law that bans modern banking, women’s rights and fundamentals such as freedom of expression will soon hold sway again. Chevening scholars are likely to be hunted down and slaughtered, often publicly, because they are tarred by their association with Britain.

      The Taliban have a terrible track record. In the past, they have killed thousands of people, closed down schools for girls and imposed draconian punishments, often as a public spectacle. It is an open secret that al-Qaeda used Afghanistan as a base during the reign of the Taliban. Those dark days are about to return, and anyone associated with the West will be targeted. Those associated with the US and the UK are already paying with their lives.

      Three Good Reasons

      The British government has a moral obligation not only to the local staff but also to the Chevening scholars. The ARAP should cover the latter too. The very scholarship the FCDO granted to promising Afghan students has now become a noose around their necks. The Chevening scholarship has opened new doors for Afghan graduates, but it has also marked them down as Western collaborators in the eyes of the Taliban. Women scholars in particular face a risk. They are often seen as corrupted by Western values and a threat to the traditional Islamic order. Abandoning these scholars to their fate would be the wrong decision for any fair-minded British government.

      There is also an economic argument for admitting Afghanistan’s Chevening scholars. In the post-Brexit era, the UK wants to be a global hub for talent. It is in the self-interest of the British government to attract highly skilled and driven professionals from around the world. The Chevening scholars have been trained in the finest British universities. Many of them have also worked abroad or have professional experience with international organizations. They have the skills, the resilience and the initiative to contribute greatly to the British economy. 

      There is a social argument for Chevening scholars too. They are some of the most cosmopolitan and cultured people in Afghanistan. While studying in the UK, many were active in student life, organizing discussions, volunteering with charities and hosting cultural events. They have an ability to assimilate into the British culture while adding a distinctive flavor to an increasingly multicultural nation. The Afghan scholars are likely to contribute to the arts, civic engagement and the communities they join. They will be an asset to the UK just as the Huguenots, the Jews, the Pakistanis, the Indians and countless others have been in the past.

      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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      To Embrace Biden’s Democracy Agenda, Start With Turkey

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      European Union leaders are getting ready to discuss Turkey once again. The timing of the European Council meeting on June 24-25 is crucial, taking place just after the G7, NATO and EU-US summits. Following four years of discontent between Brussels and Washington, this has been an exercise in reassurance, looking to reinvent multilateralism for the 21st century.

      At the summits, the allies discussed rules for various policy areas, including economy, trade, climate, security and defense, while seeking a common stance against autocracies, particularly Russia and China. If US President Joe Biden and his European allies are serious about standing up to undemocratic regimes, the place to start is Turkey, which the European Council should shift its focus to right away.

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      Turkey’s relations with its Western allies have been deteriorating for years. European decision-makers blame this on Ankara’s democratic backsliding and its unilateral foreign policy, which increasingly runs counter to European interests. Developments in Syria, Libya, the Eastern Mediterranean and Nagorno-Karabakh, however, have shifted almost the entire focus to foreign policy.

      The EU’s desire to reduce tensions in its neighborhood has eclipsed questions of democracy and rule of law. That is what is behind its proposal for a “positive agenda” with Turkey that is “progressive, proportional and reversible.” It is thus conditional on Turkey’s external actions — good regional relations in line with international law — but not clearly linked to the state of democracy. While the European Parliament flagged this in its recent report, a firm stance by the European Council is missing.

      Commitment to Democracy, Everywhere

      In March, concerns mounted in the EU when President Recep Tayyip Erdogan withdrew Turkey from the Council of Europe’s Istanbul Convention on preventing violence against women. This was clearly the continuation of a long-term trend limiting basic rights and freedoms. The new presidential system in Turkey has eliminated most of the checks and balances. Civil society is under immense pressure. Democratically elected representatives have been removed and prosecuted. Last but not least, the state prosecutor has applied to the constitutional court to ban the opposition Peoples’ Democratic Party (HDP). According to Freedom House, Turkey is “not free,” just like Russia and China.

      This situation threatens the credibility of the transatlantic allies’ commitment to democracy, rule of law, and basic rights and freedoms. According to the summit’s communiqué, the G7 is committed to upholding a rules-based international system and defending values. That is also the promise of NATO and the transatlantic allies.

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      Selective application would undermine that commitment: The rules apply to a rising China challenging Western economies, but not if you can get a bargain with Turkey in the Eastern Mediterranean. Those who prioritize geopolitics over principles might argue that Turkey receives less criticism as a NATO ally and strategically important accession candidate on the EU’s doorstep. Yet even if the European Union dropped the entire democratic conditionality framework, it would still risk being affected negatively by democratic backsliding and erosion of rule of law. Recent examples include Turkey’s unlawful detention of EU and US citizens and arbitrary decisions to move refugees to its borders with Greece in 2020. Not to speak of the future risks to European investments.

      European leaders may think that criticizing domestic repression in Turkey would put positive foreign policy developments at risk. There are no guarantees, however, that advances in the Eastern Mediterranean or relations with Greece, Cyprus or other member states will not be suddenly reversed, for example, to rally nationalists behind the current government.

      EU leaders must know that there can be no guarantees for the union as long as instability prevails in Turkey. The situation in the country has been exacerbated by deficits in democracy and rule of law. If European leaders choose to settle for a fragile status quo rather than promoting core values, they may still end up at odds with Turkey, while undermining the values they keep vowing to defend.

      Serious About Democracy? Time to Speak Up

      European leaders will try to buy time again, as they did at the European Council meetings in October and December 2020 and March 2021. But there is a window of opportunity. Ankara is on a charm offensive with its Western allies, needing an economic boost and trying to avoid European and American sanctions. While the government is determined to stay in charge, power struggles are emerging within the state apparatus. This is definitely the right time to set the tone, one that focuses on democracy.

      Action on Turkey is also needed to show the broader world that the G7, European Union and NATO mean what they said at the recent summits. Democracy will be an important component of external action. If the European Union cannot apply this principle to such a close neighbor, ally and EU accession candidate, what does that say about the democracy agenda?

      *[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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      Growing LGBTI+ Hate Shows the UN’s Need to Adapt

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      Since February, security forces have arrested at least 24 people in Cameroon for alleged same-sex conduct or gender nonconformity. In Uzbekistan, videos showing the abuse, humiliation and beatings of gay men have been circulated around social media groups. In Poland, the government’s ongoing campaign against LGBTI+ people continues, with proposed legal changes to prevent same-sex couples from adopting children.

      The continuing persecution of LGBTI+ people is tragically under-acknowledged by the multilateral system. A failure to use the United Nations as a platform to raise these issues is a failure to understand one of its core purposes. There are no rights explicitly related to sexuality or gender identity codified in the Universal Declaration of Human Rights. Article 1 of the declaration accounts for factors such as language, religion and nationality, but relegates sexual and gender identity to “other status.”

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      Those who oppose LGBTI+ rights still have room to use the excuse that such rights are not fundamental, not universal or are beholden to regional and local interpretation.

      Oppressive States

      Free & Equal, the UN’s flagship campaign for promoting LGBTI+ rights, is a welcome step for the cause, using influential artists and activists as champions. Likewise, the 2017 standards of conduct for businesses on tackling discrimination against LGBTI+ people provides more resources for countering discrimination at the organizational level. The appointment of Victor Madrigal-Borloz as the UN’s independent expert on these issues was also a commendable move, in that it made LGBTI+ rights somebody’s job.

      While they do show support, none of these steps do anything to modernize the fundamental architecture of the UN system. Russian President Vladimir Putin recently signed a series of constitutional amendments to introduce a formal ban on same-sex marriage, showing that LGBTI+ hate is entrenched even in permanent member states of the Security Council, the UN’s most powerful branch. Campaigns and guidance may change some behavior, but they do not embed LGBTI+ rights into the UN’s cornerstone principles and agreements, meaning these rights still lack basic parity of esteem with other human rights.

      The United Nations Human Rights Office of the High Commission (OHCHR) argues that a specific set of LGBTI+ rights is unnecessary. Yet their absence leaves space for oppressive states to claim that they are less important or more fundamental than other rights. A campaign to introduce and ratify a set of specific rights safeguarding all aspects of sexual orientation, gender identity and expression, and sexual characteristics should be a priority for all countries. Doing so would send a strong message of solidarity to those LGBTI+ people living in repressive societies.

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      The Yogyakarta Principles offer a ready-made framework for codifying rules protecting sexual orientation, gender identity and expression, and sex characteristics (SOGIESC) into universal rights frameworks. A coalition of states publicly declaring its support for the principles would pile on the pressure at the UN, as would pushing for General Assembly votes for their adoption.

      There are currently 10 UN human rights treaty bodies, overseeing the protection of rights in areas including disability and migrant status. There is no treaty body safeguarding the rights of LGBTI+ people. Calls for the introduction and ratification of a new treaty providing safeguards for sexuality and gender identity would send a powerful message of support throughout the multilateral system.

      National Level

      Alongside multilateral action, countries should be stepping up their game at the national level. Having robust policies on support for LGBTI+ rights would bolster countries’ credibility and authority when pushing for reform at the UN level. For instance, Germany recently announced comprehensive new measures for the promotion of LGBTI+ rights abroad.

      Other states would do well to follow suit, providing comprehensive diplomatic training on LGBTI+ issues so that in-country staff can better understand the challenges and potential remedies around LGBTI+ persecution. Shoring up embassies’ commitment to offer support and protection for those facing persecution will also send a strong message to host governments that LGBTI+ discrimination will not be tolerated anywhere.

      Those countries with strong track records of support for LGBTI+ rights should also be working harder through existing UN mechanisms. More action should be taken through existing UN fora. The UN General Assembly’s Third Committee and Human Rights Council sessions should be regular venues for raising these issues.

      Here, sustained diplomatic and reputational pressure should be applied to countries that continue to persecute people based on their sexuality and/or gender identity at an institutional level. Using these venues to declare the many and varied forms of LGBTI+ persecution as a global crisis would demonstrate solidarity to those facing persecution and send a strong message of resolve to those perpetrating it.

      The resistance of certain states to particular rights is not a reason to believe that some types of discrimination are unavoidable. It is imperative to speak louder. More liberal countries that advocate for these rights should use every avenue to translate their vocal support into action, leading to tangible and long-lasting reforms at the UN and state levels. The current lackluster approach is a shame to all countries that purport to support equality for LGBTI+ people. They must do better.

      *[Fair Observer is a media partner of Young Professionals in Foreign 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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      India Is Slowly Evolving Into a Market Economy

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      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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      What Is the “Great Reset”?

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      Who wouldn’t reveal what is kept out of sight by those who do not have our best interests at heart? Although it is not only the far right that claims to be in the know about sinister plots, they certainly provide a steady stream of such revelations.

      Amongst recent ones, the “great replacement” stands out as an attempt to capture the imagination of the public. According to this ethno-nationalist theory, the “indigenous European—e.g., white—population is being replaced by non-European immigrants.” Yet since the second half of 2020, “the great reset” (TGR) conspiracy theory has been making rounds on the internet too.

      World Economic Forum

      In 2020, the need for a reset was presented by Klaus Schwab, the founder of the World Economic Forum (WEF), in terms of reimagining capitalism in a post-pandemic world. As per the WEF, there is an “urgent need for global stakeholders to cooperate in simultaneously managing the direct consequences of the COVID-19 crisis. To improve the state of the world, the World Economic Forum is starting The Great Reset initiative.”

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      The World Economic Forum brings together high-profile figures from politics and business every year in Davos. So, with the WEF pushing the initiative, it is no surprise that it has become a gift for conspiracy theorists. “Globalists” have been accused of using — or even orchestrating — the COVID-19 pandemic to rebuild and take control of the world economy, with a liberal-cosmopolitan elite executing the next step in a quest to overcome resistance.

      In an article for The Intercept about TGR, Naomi Klein, a Canadian-American writer and activist, talks about the difficulties to critically engage with the WEF project from a progressive perspective. She also points out that the initiative does provide “a coronavirus-themed rebranding of all the things Davos does anyway.” In her typical style, Klein summarizes the plan as encompassing “some good stuff that won’t happen and some bad stuff that certainly will and, frankly, nothing out of the ordinary in our era of ‘green’ billionaires readying rockets for Mars.”

      So, while there is ample space for criticism, far-right groups have been working on turning TGR into an umbrella for their political agenda. Globally, readers might have encountered such attempts. In November 2020, a video of Canadian Prime Minister Justin Trudeau at a UN meeting began circulating. In the clip, Trudeau says that the pandemic provided an opportunity for a “reset.” After the video went viral, he stated that thinking about such a reset in terms of a conspiracy theory arises from people “looking for reasons for things that are happening to them … we’re seeing a lot of people fall prey to disinformation.”

      The Far Right

      Against this background, the following briefly summarizes key aspects of TGR as they have circulated among the German-speaking far right. The cover pages of Compact, a German radical-right magazine, and the monthly of the extreme-right National Democratic Party of Germany (NPD) have illustrated the conspiracy theory. An offshoot of the Austrian Identitarian Movement published a webpage, distributed leaflets and organized information booths called “info-zones” about TGR. These examples assert that the conspiracy attempts to put the form of globalization that existed prior to the pandemic on steroids. Rather than limiting globalization, which some claim enabled the worldwide spread of the coronavirus, even more of the same old medicine is being administered.

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      In an interview with the NPD monthly, Alexander Dugin, the Russian far-right ideologue, says that TGR is both the latest attempt by “globalists” and “the final battle” that is openly totalitarian and characterized by censorship, political repression and homicide. With the exaggerated help of the media, homogenous opinions allegedly rule.

      Various sources use the term Gleichschaltung, the process through which the Nazis established total control over German society, to describe what is unfolding today. Compact magazine claims we are already in 1934 (and not in 1933 when the Nazi Party took the first steps toward Gleichschaltung) as, apparently, the global, totalitarian takeover began last year. Unsurprisingly, the WEF, the European Union and politicians like German Chancellor Angela Merkel are said to be the villains of the story.

      As TGR is supposed to move the public even closer toward a global government, it not only endangers sovereignty and democracy, but also peoples and cultures. That is, conspiracy theorists claim that TGR aims to destroy existing bonds and structures through repeated lockdowns so as to provoke calls for and install a new world order. Or, as Martin Sellner puts it in a video dedicated to TGR, “here, we see one of the basic principles of universalist, globalist, totalitarian ideologues. Also, by the way, a basic principle of the Freemasonry, expressed, entirely free of conspiracy-theoretical wrong tracks: the world has to be built up.”

      Framework

      While such far-right views are hardly news, perhaps the most interesting attack is directed against transhumanism. By merging the digital with the physical world, the ruling elite, according to the Great Reset Stoppen website, enables “total surveillance.” As a result, global dictatorship becomes possible and a once rooted, cultural being is turned into a “socially isolated consumer” slave. Such a person is someone without property and privacy, and one who is not even encouraged to meet and mingle with others face to face. Hence, US tech companies are also on the list of villains.

      None of this is new, but TGR offers a framework for a wide range of far-right ideas, a rhetorical space into which diverse claims can be made. These include the “great replacement” as well as “patriotic” opposition to climate policies and Big Pharma and Big Tech. This time, those in the business of “revealing” sinister plots can even point to what is directly said by the World Economic Forum. Whether TGR will unite the far right’s stories and appeal to wider segments of the public remains to be seen.

      *[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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      in World Politics

      Expect an Uneven Rebound in MENA and Central Asia

      by

      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.

      Embed from Getty Images

      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