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2. Unemployment and Social Crisis in Tunisia
- Author:
- Vasco Molini
- Publication Date:
- 03-2024
- Content Type:
- Working Paper
- Institution:
- Istituto Affari Internazionali
- Abstract:
- The decade since the 2010–11 Jasmine revolution has been particularly difficult for Tunisia. The trend of poverty reduction that started in the early 2000s has lost steam, with poverty rates increasing again in the wake of the Covid-19 pandemic and spatial inequalities remaining high. Moreover, the labour market is afflicted by persistent structural problems: high unemployment, high informality and low levels of participation among women and youth. Given the limited opportunities offered by the local labour market, Tunisians increasingly find in emigration the solution to cope with their dire economic and social situation.
- Topic:
- Migration, Economy, Unemployment, Labor Market, and Social Crisis
- Political Geography:
- Middle East, North Africa, and Tunisia
3. Protests in Iran in comparative perspective: A revolutionary state in trouble
- Author:
- Erwin van Veen and Hamidreza Azizi
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- Clingendael Netherlands Institute of International Relations
- Abstract:
- Successive protests in 2009, 2019 and 2022 have poignantly laid bare the much reduced social and political legitimacy of Iran’s ruling elites. Reform-from-within is no longer viewed as credible. Even former pro-reform leaders like Mousavi have abandoned hope and call for regime change. While further protests are inevitable, it is nevertheless unlikely that they will produce a revolution that overthrows the regime in the short-term, as long as their national organisation and leadership remain weak, Iran’s ruling elites cohesive, security forces loyal, and the administration continues to function. The country has witnessed hundreds of protests every year for the past few years, in addition to those of 2009, 2019 and 2022, but calls for fundamental change continue to go unheeded. The hope of the ruling elite is that the mix of repression and Iran’s dire economic situation will prevent protests from recurring. At best, quasi-reforms will provide some band-aids. In both scenarios, the Islamic Republic of Iran is no more in the sense that it lacks legitimacy among large segments of the population. It has also shed the elements of republican governance it used to have. And yet it lives on because it remains a capable state with a fairly cohesive ruling elite and ample coercive power. Iran is on course to become a classic one-party authoritarian regime, which may shed some of its religious orientations once its Supreme Leader leaves office for reasons of age. It remains to be seen how sustainable this will be given the crescendo of protests.
- Topic:
- Security, Economy, Domestic Politics, Protests, and Civil Unrest
- Political Geography:
- Iran and Middle East
4. 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
5. Can Turkish Jews Act as a Bridge in Israeli-Turkish Economic Relations?
- Author:
- Onur Yılmaz
- Publication Date:
- 03-2023
- Content Type:
- Working Paper
- Institution:
- Moshe Dayan Center for Middle Eastern and African Studies
- Abstract:
- This issue of Turkeyscope focuses on Israeli-Turkish economic relations. While highlighting the emerging challenges that may diminish Turkish Jews' traditional role, Onur Yilmaz of Izmir's Ege University analyzed the prospects of the economic relations by shedding a light on their contributions to the prosperity of both nations.
- Topic:
- Bilateral Relations, Minorities, Economy, and Jewish community
- Political Geography:
- Turkey, Middle East, and Israel
6. Autonomy Curbed? Kurdish Oil Exports Hit Snags from Turkey and Baghdad
- Author:
- Joshua Krasna
- Publication Date:
- 07-2023
- Content Type:
- Working Paper
- Institution:
- Moshe Dayan Center for Middle Eastern and African Studies
- Abstract:
- In this new edition of Tel Aviv Notes, Josh Krasna examines the implications of the closure of the pipeline that delivered oil from the Kurdistan Regional Government of Iraq to Turkey's Ceyhan port, focusing on the state of relations between Erbil and Baghdad.
- Topic:
- Oil, Economy, Exports, and Autonomy
- Political Geography:
- Iraq, Turkey, Middle East, and Kurdistan Region of Iraq (KRI)
7. Autonomy Curbed? Kurdish Oil Exports Hit Snags from Turkey and Baghdad
- Author:
- Joshua Krasna
- Publication Date:
- 07-2023
- Content Type:
- Commentary and Analysis
- Institution:
- Foreign Policy Research Institute
- Abstract:
- For the past three months, the Kurdish region in northern Iraq and its government, the Kurdish Regional Government (KRG) have been facing one of the most serious challenges in the two decades of its formal existence. The pipeline through which it exports some 400,000 barrels of oil a day (b/d) – 10 percent of the overall Iraqi exports and 0.5 percent of global production – has been closed since March 25, at an estimated cost of close to a billion dollars a month (approximately $30 million daily). The KRG has depended on income from oil exports for some 80 percent of its budget. The stoppage came after a decade-long arbitration between the Government of Iraq (GOI) and Turkey by the Paris-based International Chamber of Commerce was decided in March in Iraq’s favor. Turkey was ordered to cease loading Kurdish oil without GOI supervision, and to pay Baghdad $1.5 billion in owed fees (Baghdad had demanded $30 billion). Baghdad had claimed that use of the pipeline from northern Iraq to the port of Ceyhan in Turkey by the Kurds without GOI consent was in violation of a bilateral agreement between the two countries from 1973, the annex of which states Turkey would only buy oil from Iraq’s state-owned oil marketer.
- Topic:
- Oil, Economy, Exports, and Autonomy
- Political Geography:
- Iraq, Turkey, Middle East, and Kurdistan Region of Iraq (KRI)
8. Greater than the Sum of Its Parts: Abraham Accords Free Trade Area
- Author:
- Robert Greenway
- Publication Date:
- 02-2023
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- The Abraham Accords provide an unprecedented opportunity to increase trade and investment among its members significantly by establishing a regional free trade area that would ensure progress toward their aspirations, preserve the integrity and stability of global markets, fuel growth, and constrain China’s predatory trade practices. Signatories to the accords committed to a shared vision of peace and prosperity and recognized that economic integration can enable members to achieve their long-term economic goals. The accords have paved the way for comprehensive partnerships on a variety of issues related to security, trade, investment, the environment, innovation, tourism, energy, and other key sectors. While the growth in bilateral trade is of great significance, the true transformative power of these peace agreements lies in expanding regional integration and cooperation. This is already underway. Israel concluded a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) in December 2022 and is currently negotiating a free trade agreement with Bahrain. Both will significantly accelerate economic development and provide incentives for others to follow suit. Israel's new foreign minister, Eli Cohen, recently stated that the volume of trade with Arab countries that normalized relations with Israel under the Abraham Accords in 2020 exceeded $2.8 billion dollars in 2022. While progress has been remarkable, its potential is far greater. According to RAND analysis of the potential of bilateral free trade agreements (FTA) between Israel and current signatories, the accords could create 46,000 new jobs and $24 billion in new economic activity for Israel's four partners. The benefits of a multilateral FTA encompassing current signatories would triple the overall benefit, creating more than 150,000 new jobs and new economic activity exceeding $75 billion. A multilateral FTA among an expanded number of potential signatories to the accords could create as much as 4 million new jobs and $1 trillion in new economic activity through 2030. This potential is not lost on the Chinese Communist Party (CCP). The CCP represents one of the most significant threats challenging the United States and its partners and allies. China’s state-directed economic policies, predatory lending, cyber intrusions, theft of intellectual property, illicit technology transfer and other coercive practices, industrial subsidies, and market access restrictions on key sectors of China’s economy constitute the most significant threats of the coming century. Several trends exacerbate the need for integrating markets aligned toward common goals. The global pandemic, the Russian invasion of Ukraine, Brexit, tariff tensions, political instability, protectionist policies, and regulatory uncertainty have threatened global trade by disrupting established supply chains and their underlying constellation of business models and trade relationships. As is often the case, these complex and interrelated challenges constitute an opportunity to realign our trade to safeguard the integrity of global markets and pursue US goals and objectives in collaboration with our partners and allies. The Abraham Accords offers just such an opportunity.
- Topic:
- Foreign Policy, Economy, Free Trade, and Abraham Accords
- Political Geography:
- Middle East and Israel
9. A Southern Reshuffle – The Yemen Review, May 2023
- Author:
- Sana'a Center for Strategic Studies
- Publication Date:
- 05-2023
- Content Type:
- Commentary and Analysis
- Institution:
- Sana'a Center For Strategic Studies
- Abstract:
- Political news in May was dominated by the reorganization and resurgence of the Southern Transitional Council (STC). Seemingly sidelined by the Saudi-Houthi talks and the Kingdom’s support of Presidential Leadership Council (PLC) chief Rashad al-Alimi, the Emirati-backed group extended its influence through the recruitment of powerful politicians, an internal reorganization, and a conference resulting in a new ‘Southern National Charter.’ Saudi-Houthi negotiations appear to have stalled over disagreement on a number of long-standing issues, but the recent involvement of China could bring additional resources and leverage to the table. The STC’s revived fortunes have led to renewed political and military mobilization in Hadramawt. The Nation’s Shield forces, paid for and supplied by Saudi Arabia, but under the nominal control of President Al-Alimi, increased their presence in the governorate, and were visited by the Saudi coalition commander before assuming control of an important border crossing. For their part, STC-affiliated forces took up positions on the strategic Ataq-Al-Abr road linking Hadramawt and Shabwa, including a key stretch used by Islah-affiliated forces. Al-Qaeda in the Arabian Peninsula also stepped up its activity, conducting at least two drone strikes in Shabwa as it publicly condemned the easing of tensions between Saudi Arabia and Iran. The Houthis launched their latest offensive in the economic war, banning the sale of domestically produced cooking gas in favor of imports. Imported gas is more expensive, but the brunt of the impact will be felt by the internationally recognized government and its production facilities in Marib. Having shut down the government’s oil exports and rerouted trade to deprive it of customs fees, the sanction will further cripple the government’s finances. It is already having trouble purchasing sufficient fuel to keep the lights on – May saw an extension of rolling blackouts in Aden as a Saudi grant has expired without extension. Summer sees the highest demand for electricity, but a number of generators in the interim capital have already shut down due to the shortage.
- Topic:
- Economy, Houthis, and Armed Conflict
- Political Geography:
- Middle East, Yemen, and Gulf Nations
10. Book Review: Javier Blas and Jack Farchy, The World for Sale: Money, Power, and the Traders Who Barter the Earth’s Resources (Oxford University Press, 2021)
- Author:
- Hüseyin Pusat Kildiş
- Publication Date:
- 12-2023
- Content Type:
- Journal Article
- Journal:
- Uluslararasi Iliskiler
- Institution:
- International Relations Council of Turkey (UİK-IRCT)
- Abstract:
- The World for Sale: Money, Power, and the Traders Who Barter the Earth’s Resources sheds light on commodity traders, crucial yet often overlooked actors in the global economy. The book is a collection of stories about them, how they get involved in political affairs, where they get their power, and how they work in the shadows. These stories from different times and places show the immense power of commodity traders. Methodologically, the book is mainly based on interviews with more than a hundred traders. Blas and Farchy also collected thousands of pages that detail the finances, business networks, and structure of commodity traders’ organizations (p. 11-12). The book consists of 13 chapters. Chapters 2, 3, and 4 are particularly important since they reveal how commodity traders operate by addressing the energy crisis that arose due to waves of nationalization in the Middle East in the 1970s and 1980s. The book’s main purpose is to reveal the role of despots and tyrants in the global economy by pointing out the unsavory aspects of their businesses, such as bribery and offshore banking. Since most of these methods are illegal and cannot be used by official companies and institutions, such commodity traders come to the fore.
- Topic:
- History, Economy, Book Review, Commodities, and Trade
- Political Geography:
- Middle East and Global Focus