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61. Power and potential: The economics of Egyptian construction and ICT

Author:
Matteo Colombo
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Young Egyptians’ dissatisfaction with their employment prospects was a key driver of protests in 2011 and 2013. Since then, the country’s political authorities have worked hard to create job opportunities for young Egyptians by boosting growth in the construction sector (infrastructure and public works), among other things. Since the sector also generates substantial revenues for the country’s power elite, this has been a win-win strategy in the short-term. But overreliance on the construction sector has also created too many informal and unstable jobs that are a poor match for Egypt’s many well-educated graduates. Cairo’s growth strategy has not addressed some of the country’s long-standing economic problems, such as informality and a low overall employment rate. Giving the country’s promising ICT sector a boost similar to that of the construction sector to address such deficiencies and anticipate a looming debt crisis requires a paradigm shift with two elements. First, a deal between Egypt’s political authorities and the power elite that buys time in exchange for future rents. Second, facilitation of private sector dynamism through regulatory encouragement and public seed funding for new business activity.
Topic:
Development, Economics, Employment, and Construction
Political Geography:
Middle East and Egypt

62. Shades of grey: The evolving links between the Houthi and Iran

Author:
Mona Saif
Publication Date:
01-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The Houthi are not an Iranian proxy in the sense of unquestioningly doing Tehran’s bidding, voluntarily or under pressure. Yet, the movement can be viewed as an informal partner of Tehran. Their relationship has evolved from a partnership of convenience into a more strategic one. Despite this evolution, the Houthi have remained autonomous with respect to their domestic constituencies, political strategy and battlefield operations. For the purpose of peacemaking in Yemen today, as well as subsequent efforts to maintain any peace, this suggests that the Houthi should be considered an autonomous, domestically legitimate (in part) and capable actor, but that Iran also needs to be consulted behind the scenes due to the growth of its relation with the Houthi.
Topic:
Non State Actors, Armed Forces, Houthis, and Peacebuilding
Political Geography:
Iran, Middle East, and Yemen

63. Getting global development back on track: Focus and start at home

Author:
Erwin van Veen
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Since 2019, realisation of the Sustainable Development Goals (SDGs) has gone from patchy to off-track as a result of Covid-19, global price shocks caused by the war in Ukraine and accelerating climate change. About 100 million people were thrown back into extreme poverty and hundreds of millions more face reduced health, livelihood and income prospects for the rest of their lives. The climate change agenda also took a backseat. Long-term global effects will be profound in terms of growing migration flows, further climate degradation and, likely, more conflict, authoritarianism and populism. Putting global development back on track requires focusing on fewer priorities rather than the entire SDG agenda, namely those with the highest negative impact on developing countries: conflict, climate change and inequality. Addressing these problems primarily requires middle- and high-income countries to reduce their contribution to climate deterioration and inequality at home, and to increase their support for conflict resolution efforts elsewhere at a faster rate. While it may seem counterintuitive, the greatest development contributions that developed countries can make lie at home.
Topic:
Climate Change, Development, and Sustainable Development Goals
Political Geography:
Global Focus

64. Al-Sudani’s first 100 days – Or how to keep everyone happy

Author:
Erwin van Veen
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The job of an Iraqi Prime Minister is a complex balancing act on both the domestic and international fronts. To begin with, there is the challenge of managing competition between the country’s factitious elites. Then there is the unresolved tension between self-interested elites and a citizenry that has largely lost faith in its political leaders. Finally, there is the foreign policy dilemma of balancing political and economic dependence on both the US and Iran. By these standards, Prime Minister Mohammed Shiya al-Sudani’s first 100 days in office have provided a crash course on how to please all sides. He has allocated government positions to his supporters with gusto, provisionally left most Sadrist bastions of power in the state untouched (even though Sadrists are excluded from the government) and offered extensive ‘bread and games’ for the population by promising jobs and social security. Al-Sudani has furthermore sought to reassure opposing foreign actors through a hitherto fairly balanced foreign policy. His approach has been enabled by the broad coalition of Iraqi political elites that brought him to the premiership, along with record oil revenues that help grease the wheels of patronage politics. While structural reforms in politics, administration and economics are overdue, they will not happen because Iraq’s political leaders have no need for them in the immediate term. However, unresolved elite contention, a lack of public investment and the absence of reform mean that Iraq is likely heading for tougher times within the space of a couple of years.
Topic:
Foreign Policy, Domestic Politics, Elites, and Public Investment
Political Geography:
Iraq and Middle East

65. Trading short-term gains for long-term costs: the Egyptian political economy under al-Sisi

Author:
Matteo Colombo
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Egypt’s political economy has been operating on the basis of three core principles over the last few decades. First, the country’s political authorities set strategic economic objectives in a top-down manner. Second, the power elite supports the political authorities and, in exchange, tightly supervises homegrown and foreign investment to generate revenues and job opportunities, as well as private benefits. Third, Egyptian citizens acquiesce, willingly or unwillingly, in this division of power that mostly benefits the political authorities and power elites in exchange for improvements in their livelihoods. Since 2014, President al-Sisi has held closely to these principles but relied increasingly on Egypt’s military networks (part of the power elite) to boost economic growth. This strategy has produced short-term gains – informal jobs and an array of consumer goods – at the expense of long-term economic prospects. In particular, the military’s economic influence has deepened some of Egypt’s structural problems: low productivity, inequality, informal unemployment and a suppressed private sector. This limits the future sustainability of the current economic model. Improving Egypt’s economic prospects requires reducing the role of the state – especially the military – in the economy in terms of decreasing the number of associated enterprises and lightening the regulatory framework. However, this is nearly impossible to realise in sectors in which the military already has a dominant profile, such as construction and extractives, because its support is essential for al-Sisi to maintain power. A more promising alternative for European policy makers to consider is influencing the Egyptian government to limit military influence in sectors with growth potential where the military is largely absent, such as manufacturing and Information and Communications Technology (ICT). A government strategy that prevents further military involvement in these sectors, crafts a regulatory framework conducive to private investment and invites foreign funding, can help Egypt realise greater economic growth and higher fiscal revenues.
Topic:
Development, Political Economy, Economy, and Abdel Fattah el-Sisi
Political Geography:
Middle East and Egypt

66. Turkey Earthquake: Domestic and Foreign Policy Implications

Author:
Al Jazeera Center for Studies
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
In addition to the direct losses – both human lives and damage to buildings and infrastructure – domestically, the earthquake may have implications for the coming presidential and parliamentary elections. In terms of foreign policy, it triggered a quasi-coup in Turkey’s regional and international relations.
Topic:
Foreign Policy, Natural Disasters, Infrastructure, Elections, and Earthquake
Political Geography:
Turkey and Middle East

67. A Dead-End War: Russian Failure and Ukrainian Destruction

Author:
Al Jazeera Center for Studies
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
With all parties still clinging to their demands, there is no end in sight to the war: Russia wants to cement its control over four Ukrainian provinces, win recognition of its sovereignty over Crimea, and secure guarantees for Ukrainian neutrality. Ukraine wants a definitive end to hostilities, the withdrawal of Russian troops from Ukrainian territory (including Crimea), and negotiations on its strategic future.
Topic:
Foreign Policy, Conflict, Regional Security, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine

68. Even Chances: Defining Presidential and Parliamentary Elections in Turkey

Author:
Al Jazeera Center for Studies
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
If Erdogan and the AKP lose the election, the old class will return to power in a spirit of vengeance, armed with the legal and coercive tools of the state, which even Kilicdaroglu and his allies may be unable to restrain. If the People’s Alliance is victorious, it will have five full years to groom capable heirs who can preserve the gains made by the conservative Turkish majority in the past two decades and faithfully follow in the AKP’s footsteps.
Topic:
Elections, Recep Tayyip Erdoğan, AKP, and Parliament
Political Geography:
Turkey and Middle East

69. Erdogan wins the presidency: Causes, implications and horizons

Author:
Al Jazeera Center for Studies
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
It is clear that identity politics still carry much weight in Turkey, that the conservative voting bloc remains the largest, and that the majority of this bloc continues to believe in Erdogan and his ability to lead the country.
Topic:
Elections, Leadership, Domestic Politics, and Recep Tayyip Erdoğan
Political Geography:
Turkey and Middle East

70. Russia’s War Economy

Author:
András Rácz, Ole Spillner, and Guntram Wolff
Publication Date:
02-2023
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Sanctions are a strong signal of Western resolve to oppose Russia’s war against Ukraine and have significantly weakened its ability to wage war. But Russia is adapting, turning its economy into a war economy, ramping up military production, and adjusting to sanctions. This Policy Brief looks at Russia’s economic adjustment with a focus on the shifting of resources to war purposes and the effect of sanctions on military production.
Topic:
Sanctions, Economy, Military, and Russia-Ukraine War
Political Geography:
Russia, Europe, and Ukraine