Tag: Gulf states

The Iran deal’s regional impact

Screen Shot 2015-08-11 at 3.19.56 PMOn Monday, an all-MEI panel discussed After the Iran Deal: Regional Repercussions and Dynamics. Panelists included Robert S. Ford, senior fellow and former US Ambassador to Syria, Thomas W. Lippman, scholar, Gönül Tol,  director of the Center for Turkish Studies, and Alex Vatanka, senior fellow.  Paul Salem, vice president for policy and research moderated.

Vatanka stated that reformists, moderates, the Iranian public and most of the Iranian media are in favor of the deal.  Some hardliners criticize the deal, but they’ve opened a previously taboo debate about the pros and cons of Iran’s nuclear program.

Khamenei has been vague, but this shouldn’t be taken as opposition; Khamenei rarely unequivocally supports anything. Those close to Khamenei are defending the deal.  The Iranian Revolutionary Guard Corps (IRGC) hasn’t come out against it but they and their subsidiaries worry that the deal will hurt them financially.  Rouhani needs to reassure them that they won’t lose out as foreign firms enter the market.

An illustration from Iran's national epic, the Shahnameh, on display at MEI. PC: Eddie Grove
An illustration from Iran’s national epic, the Shahnameh, on display at MEI. PC: Eddie Grove

The Rouhani Administration is a Western-educated team with cohesive thinking on the country’s direction.  Like China, they may try to open up economically and deal with political reform later.  Zarif believes that Western companies must invest in Iran to render the deal more stable.  Khamenei appears to accept economic reform but has made the resistance economy part of his legacy. It is unclear what he wants from the deal.  Is he looking to prevent the possibility of war, eliminate sanctions, or make new friends?  If many reformists lose their seats in the next Majlis elections, it means that Khamenei is unwilling to let a reform agenda go  farther.  If the Majlis accepts the deal and Congress rejects it, Iran can  portray themselves as the good guys.

There are contradictions regarding Iran’s regional relations.  The deputy foreign minister recently stated that Iran wanted to talk with the Saudis about Yemen and Bahrain, but then an ayatollah at a Friday sermon put Saudi Arabia, Israel and ISIS in the same category.  If the reformists reconcile too much with the Saudis, the hardliners will brand them as pro-Saudi agents.

Lippman said that despite US declarations of an unshakeable commitment to the Gulf, Gulf Arabs were publicly skeptical until recently.  Now the GCC countries publicly (if not privately) believe the US commitment.  Beginning at Camp David, they decided that the Iran deal was done and that they weren’t going to do “a full Bibi.” They will work with the US and each other to confront regional problems.

Perhaps this is what Lippman meant by doing “a full Bibi.”

The Saudis won’t race to a bomb; they care about self-preservation, which includes full integration into the world economy.  The Saudis can’t afford to become nuclear outlaws.

Tol stated that understanding Turkish fear of the Kurds is key to grasping Turkish politics. It also plays a role in Turkey’s stance vis-a-vis Iran.  Turkey shares the West’s objectives regarding Iran’s nuclear program but has promoted engagement rather than isolation, voting against UN sanctions in 2010.  Iran is a large market for Turkish goods and the two countries have close energy ties. However, Turkey worries that a nuclear Iran could change the regional balance of power.  All political parties in Turkey welcomed the deal and the sanctions relief.

Turkey has three main concerns about Iran:

  1. Iran is a destabilizing force in Iraq and opposes Turkey in Syria.
  2. Closer ties between Washington and Tehran could come at Turkey’s expense, focusing too much attention on the fight against ISIS and undermining Turkey’s anti-Assad efforts;
  3. Iran’s support for the PKK and PYD.
The Fountain of the Four Lions: a 17th Century fountain from Damascus in MEI's Islamic Garden.  PC: Eddie Grove
The Fountain of the Four Lions: a 17th Century fountain from Damascus in MEI’s Islamic Garden. PC: Eddie Grove

Ford asserted that the problems in Iraq and Syria don’t revolve around the US and Iran but around local grievances.  The pressures against the Iraqi state are increasing.  Low oil prices are contributing to the Kurdish drive for independence.  Progress on Sunni-Shia reconciliation is lacking.  Iran is partially responsible because of its ties to militias that are considered terrorist organizations by the US.  Iran is unlikely to give up these allies, whose political leaders are ruthless and capable. It is unclear if the US and Iran can work together in Iraq.  ISIS can recruit as long as the conflict between the Sunnis and the militias continues.  If Iran cedes control of the militias to President Abadi, that could help.

Assad is losing and the opposition is advancing on the Alawite homeland.  There are diplomatic visits between Syria, Russia, and Iran; Syria’s foreign minister recently visited Tehran and likely

A mosque in Oman. Omanis are Ibadi Muslims. As Ibadi Islam is neither Sunni nor Shia, Oman often serves as a mediator between Iran and the Sunni Arab states. PC: Eddie Grove

also Oman, which serves as an intermediary with the Saudis.  There are also reports that Iran is about to put forward a peace plan with a unity government, constitutional amendments to protect minorities, and future internationally supervised elections. Ford thinks this won’t succeed because the Turks haven’t signed on and their closeness with the armed opposition gives them a veto.

The Russians and Iranians are urging the US to stop pushing against Assad and start working with him, but Assad is about to lose his supply lines.  There were recent anti-Assad protests in Alawite-majority Latakia province. Assad doesn’t have the capacity to take on ISIS if it can’t hold the Damascus suburbs.  The Iranians have to recognize that Assad is losing but they will almost certainly use at least a small portion of the money from sanctions relief to shore-up Hezbollah and Assad.  This will cause a short-term increase in violence.

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Strange values and colossal misjudgment

I have to give credit to New York Senator Schumer for laying out his thinking on the Iran nuclear deal. But it is thinking that betrays strange values and in the end a colossal misjudgment.

Schumer looks at three issues:

  1. nuclear restrictions on Iran in the first ten years,
  2. nuclear restrictions on Iran after ten years,
  3. and non-nuclear components and consequences of a deal.

He asks if the United States is better off with or without the agreement.

On the first issue, he faults both the inspection provisions and the snapback of sanctions. He ignores the unprecedented inspections of nuclear facilities and somehow finds that the US unilateral ability to precipitate re-imposition of sanctions on Iran has little value. But in the end he admits we might be a bit better off in the first ten years than without the agreement.

On nuclear restrictions after ten years, Schumer is concerned because lifting of sanctions will greatly enrich Iran and enable it then to pursue an even more robust nuclear program. He simply ignores the agreement’s provisions for permanent International Atomic Energy Agency (IAEA) inspections and the permanent commitment by Iran not to seek nuclear weapons. He says

Iran would have a green light to be as close, if not closer to possessing a nuclear weapon than it is today. And the ability to thwart Iran if it is intent on becoming a nuclear power would have less moral and economic force.

It is strange to value a problem that we might (or might not) have 10 years from now as much as you value it today. If nothing else, you’ve had 10 years with a non-nuclear Iran to think and organize what you’ll do next. It is even stranger to suggest that after 10 years of successfully preventing Iran from getting a nuclear weapon that somehow doing so then would be less compelling rather than more so. If you think war might be necessary to prevent Iran from getting nuclear weapons, you are on a lot firmer ground if Iran violates an agreement than if there are no constraints at all on its nuclear program.

On the non-nuclear issues, Schumer is principally concerned with use of the money Iran will get from sanctions relief for nefarious activities in the region and beyond. I entirely share this concern, which is well-founded in Iran’s need to satisfy its hardliners after what Schumer should admit is a gigantic defeat at the bargaining table.

But then there is the colossal misjudgment: Schumer thinks you have to believe Iran will moderate in the future in order to support the deal. That is wrong. Forget Iran’s political future.

What you have to consider is the reaction of the rest of the world to American rejection of the agreement, which Schumer completely ignores. Instead, he blithely suggests:

Better to keep U.S. sanctions in place, strengthen them, enforce secondary sanctions on other nations, and pursue the hard-trodden path of diplomacy once more, difficult as it may be.

He offers not a word about how America’s European allies, the Russians, the Chinese and the Gulf states would react to this proposition. That is where his arguments go wildly wrong.

First consider what “secondary sanctions” mean. They mean the US will tell other countries’ banks and corporations that they can’t do business with Iran. If they do, they will be excluded from the US market and their assets in the US frozen. There are few things we could do to enrage our closest allies more quickly than that. They would be thrust into the arms of the Russians and Chinese, and together try to work out financing mechanisms that escape US scrutiny and control.

Second, consider whether there would be any diplomacy to pursue. Either the agreement will collapse altogether, in which case you can bet on Iran moving quickly to get nuclear weapons, in order to forestall a US attack. No diplomatic openings there. Or the agreement will remain intact, without US participation. Iran will get sanctions relief from everyone but the US (something it did not expect any time soon anyway). Why would Iran re-engage diplomatically with the US if it can get what it wants from everyone else?

America’s allies would find themselves moving away from their trans-Atlantic connections to much deeper engagement with our adversaries. Support for the US on many issues–especially but not only the Middle East–would wane rapidly. “Secondary sanctions” levied in retaliation against American companies could wreck havoc with the world’s financial and trading systems.

What would the Gulf states do? If the agreement falls apart, they will have no choice but to race for nuclear weapons. If it doesn’t, they still need to consider whether to stick with the isolated and weakening US as a major ally or shift in other directions. I’d bet on a shift in other directions, something that has already started but could accelerate.

The Iran nuclear deal is likely to survive the Congressional challenge next month, as it would require a more than 2/3 majority in both houses to defeat it. But if it fails, we can thank strange values and colossal misjudgment. Senator Schumer is not alone.

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A nervous region wary of the nuclear deal

 

These could be snapshots from an Iranian bazaar, but they were all taken at Shuk Levinsky, a largely Persian market in Tel Aviv.  PC: Eddie Grove
These Iranian bazaar snapshots were actually taken at Tel Aviv’s mainly Persian Shuk Levinsky. PC: Eddie Grove

On Wednesday, the Conflict Management Program at SAIS and MEI hosted a talk entitled After the Deal: A Veteran Journalist’s View from Tehran.  Speakers included Roy Gutman, McClatchy Middle East bureau chief, and Joyce Karam, Washington bureau chief for Al-Hayat. Daniel Serwer of both SAIS and MEI moderated.  Both speakers emphasized the dynamics that caused regional players to be wary of Iran.

 

Early last Spring, Gutman traveled to Israel, Jordan, Egypt and Turkey.

 

Mount Hermon, on the border of the Israeli-controlled Golan Heights, Lebanon and Syria.  A couple of weeks after the author skied there, the ski resort was evacuated after a nearby IDF vehicle was struck by an anti-tank missile fired by Hezbollah. PC: Eddie Grove
Mount Hermon, on the border of the Israeli-controlled Golan Heights, Lebanon and Syria. A couple of weeks after the author skied there, the ski resort was evacuated after a nearby IDF vehicle was struck by an anti-tank missile fired by Hezbollah. PC: Eddie Grove

In Israel, he observed that the major national security concern wasn’t the Iranian nuclear program, but rather Iran’s conventional threat through the buildup of Hezbollah forces.  Israelis were disappointed that the US was leaving a security vacuum in Syria for Iran to fill.  The Israeli position on the Iran deal is difficult to understand; Israeli politicians oppose it, but Israel’s foreign policy elite considers Iranian conventional forces a larger threat.

Jordanian officials also worried about regional chaos and Iranian influence.  They were baffled by the half-hearted US response to Assad, as well as its airstrike-only response to ISIS.

Jordanian flag flying at the always windy Ajloun Castle.  PC: Eddie Grove
Jordanian flag flying at the always windy Ajloun Castle. PC: Eddie Grove

Egypt is preoccupied by terrorism and the upheaval in Libya, but Egyptian officials are also concerned about Iran’s growing influence and US inaction.

A view of Taba, Egypt from Mount Tzefahot, Eilat, Israel. PC: Eddie Grove
A view of Taba, Egypt from Mount Tzefahot, Eilat, Israel. PC: Eddie Grove

Officials in every government (aside from Turkey’s) spoke of collusion between Turkey and extremists. The Turks think the Iranians know that the US is not a determined counterpart.  They believe the US is appeasing Iran.

Gutman then traveled to Tehran to gauge the mood there.  Iran has come in from the cold after 36 years, but Tehran resents the last 36 years of US policy.  Change in Iran won’t happen fast.  Khamenei has said that Iran’s policy towards the “arrogant” US government won’t change and that Iran will keep supporting its regional allies.

Rosh HaNikra, Israel on the border with Lebanon.  PC: Eddie Grove
Rosh HaNikra, Israel on the border with Lebanon. PC: Eddie Grove

Israel views Hezbollah’s buildup as a direct threat, but Iranian officials told Gutman that the Tehran holds the trigger on Hezbollah’s weapons and won’t pull it unless Israel threatens Lebanon or Iran.  However, a former Iranian diplomat admitted that Iran has no vital interest in Lebanon or the Palestinians.  Iran also appears to have no vital interest in Yemen, but likes seeing Saudi Arabia embroiled in an unwinnable war.  Iran is unalterably opposed to the breakup of Iraq into three states.

The Maronite village of Al-Jish in Israel near the Lebanese border could be seen as a pocket of Lebanese culture inside Israel.  It contains a Maronite church (top right), and a Lebanese restaurant (top left) with delicious Lebanese food (bottom).  PC: Eddie Grove
The Maronite village of Al-Jish, Israel near the Lebanese border could be seen as a pocket of Lebanese culture inside Israel. It contains a Maronite church (top right) and a Lebanese restaurant (top left) with delicious Lebanese food (bottom). PC: Eddie Grove

Iranian officials don’t think the deal is perfect, but still see it as a win-win for both sides.  They view themselves as MENA’s most powerful and stable state.  They are glad that US has accepted them as a regional player and negotiating partner.

After the withdrawal of US troops from Iraq, Iran filled the vacuum. The Iraqi Army collapsed on Iran’s watch.  Iran does not acknowledge its responsibility for this and ascribes the rise of ISIS to others.  They also believe that foreign forces fought in Deraa and refused to acknowledge Assad’s role in fomenting terrorism by releasing terrorists from prison.  Iranian officials also stated that all sectors of Lebanese society back Hezbollah’s deployment in Syria.  Iran needs a reality check.

Joyce Karam (left), Dr. Daniel Serwer (center), and roy Gutman (right). PC: Eddie Grove
Joyce Karam (left), Dr. Daniel Serwer (center), and roy Gutman (right). PC: Eddie Grove

Iran opposes the creation of a safe zone/no-fly zone in Iraq and has threatened to send basijis into Syria if this happens. Iranians don’t understand the scope of Syria’s humanitarian catastrophe or Iran’s role in it.  There are too many disagreements between the US and Iran to form a regional security agreement now.  The US needs a policy for Syria; if we don’t have a policy, others will fill the vacuum.  The US also needs an official version of what happened in Syria to counter the Iranian invented view of history.

The souq in Muscat, Oman.  Oman helped mediate between Iran and the P5+1 and has good trade relations with Iran.  It welcomed the deal.
The souq in Muscat, Oman. Oman helped mediate between Iran and the P5+1 and has good trade relations with Iran. It welcomed the deal.

Karam noted that the Arab response to the deal is less monolithic than Israel’s, but the GCC and Israel view Iran’s regional behavior similarly.  The UAE, Oman, and Turkey quickly welcomed the deal because they have good trade relations with Iran.  Saudi Arabia, Egypt, and Qatar were more cautious.  The Saudis don’t view the deal as US abandonment, but they fear increased Iranian regional meddling.  Arab public opinion has shifted drastically since 2008, when 80% of Arabs viewed Iran positively.  Now only 12% do.  The Arab street is suspicious of the deal.  The US explained the deal to Arab governments, but not to their people.  The Arab street wonders whether the money Iran will gain from sanctions relief will go to funding Iranian students, or to Qassem Suleimani and more chlorine gas, barrel bombs, and Hezbollah fighters for Assad.  Assad is a costly budget item for Iran.  When will Iran realize that Assad can’t win? Nevertheless, Hezbollah keeps getting more involved in Syria.

Karam stated that the Gulf countries obtain commitments from the US at talks like Camp David, but then nothing gets done.  The US is four years behind on Syria and needs an official policy.

Serwer noted in conclusion that the regional issues would be far worse if Iran had, or were about to get, nuclear weapons.

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Magic numbers

The magic numbers are 44 House Democrats and 13 Senate Democrats. Those are the thresholds opponents of the Iran nuclear deal need to reach to achieve veto-proof majorities in both houses of Congress, assuming all Republicans vote against.

Rob Satloff says defeat of the deal would be no big deal. John Bolton says it would be a good thing. Suzanne Nossel says it would be a disaster. Who is right?

Nossel in a word. But let’s go through the drill.

Satloff argues that defeat in the Congress might either push President Obama to

  1. reopen the negotiations, seeking a “better deal,”or
  2. seek to implement the agreement without Congressional approval.

For Case 1, Rob offers no explanation of why the Iranians would agree to renegotiate.  For Case 2, he suggests the Iranians would abide by the terms of the agreement, despite not getting the sanctions relief that was the primary purpose of their engagement in the negotiations. This runs contrary to both what the Iranians have said–that they will proceed apace if there is no deal–and what they have done in the past. The Iranian nuclear program mushroomed (to use an unfortunate metaphor) after the Bush administration ignored Tehran’s feelers about reaching an accommodation and refused to talk about anything but dismantling its nuclear program.

In both cases, Rob fails to consider the reaction of the Chinese, Russians, Europeans and Gulf States.

This is fatal to his argument. With rejection of the agreement in the US Congress, the united front against Iran getting nuclear weapons would quickly evaporate. The Chinese and Europeans, who have been salivating at the prospects for increased trade with Iran, would have no reason to go along with reopening the negotiations. If the Iranians do appear to be implementing the agreement, multilateral sanctions would rapidly disappear, leaving the US isolated and unable to get the European support required if the “snapback” provision is to be used.

Bolton argues that the snapback provision is not only useless but harmful to American interests, because it sets a precedent for getting around the UN Security Council veto. He cites as a negative example a Cold War era effort by Dean Acheson to do an end-run around the UNSC through the General Assembly. That effort caused no harm Bolton admits, but he is unfazed. He is sure snapback is bad, even if the experience he cites was not. It’s hard to imagine why the New York Times published that argument.

Let’s get real. Rejection of the deal in Congress would most likely lead to three “no”s:

  1. No International Atomic Energy Agency inspections;
  2. No multilateral sanctions;
  3. No constraints on the Iranian nuclear program.

Iran would be free, if it wants, to move ahead towards nuclear weapons, not in 10 or 15 years, but right now. If President Obama or his successor were to decide on attacking the Iranian nuclear program, he would be on his own without allies and without the grounds Iranian violation of the agreement would provide.

That is not the worst of it though. American clout with all concerned would decline markedly. With Iran presumed to be racing for a nuclear weapon, the Saudis, Egyptians and Turks would need to keep pace. The Europeans think they led what they call the EU3+3 (P5+1) in the negotiations. Rejection in Congress would pull the rug out from under our closest allies. Russia and China would deem the US unreliable, even as they respectively pursue arms and energy deals with Tehran.

Rejection in short would be a milestone comparable to the Senate’s rejection of the League of Nations not much more than 100 years ago. It would break the faith with Europe, reduce US clout with less friendly world powers, initiate a nuclear arms race in the Middle East, and limit America’s ability to lead on many non-nuclear issues.

President Obama will speak about all this today at American University. I trust he’ll have those magic numbers in mind.

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Shore-up Jordan before it’s too late…

Mount Nebo, from where Moses saw the promised land in Deuteronomy.  Are storm clouds gathering over Jordan?
Mount Nebo, from where Moses saw the promised land in Deuteronomy. The Dead Sea is visible in the background. Are storm clouds gathering over Jordan? PC: Eddie Grove

Ambassador Oded Eran (Senior Research Fellow, INSS, former Israeli ambassador to Jordan, the EU and NATO, and former head of the Israeli negotiating team with the Palestinians) and Eddie Grove (Research Assistant Intern, MEI and former Research Assistant Intern, INSS) co-authored an article entitled Threats to Stability in Jordan in the July 2015 issue of INSS Strategic Assessment.  The article describes the challenges that Jordan must overcome in both the short-term and the long-term to remain stable.

Despite persistent predictions of the imminent demise of the Hashemite regime, Jordan has remained stable, buoyed by international aid from the US and the GCC.  Jordan faces a growing jihadi threat, fueled largely by a poor economy and high youth unemployment.  In the short-term, Jordan’s stability will be aided by low oil prices and a temporary rise in patriotism after pilot Muath al-Kasasbeh’s murder by ISIS.  In the long-term, Jordan needs to address water and energy scarcity issues to remain stable and serve the needs of a growing population, including its many refugees.

Jordan has high unemployment, including a youth unemployment rate of ~30%.  A few key reasons for this include:

A UNHCR Syrian Refugee tent in Irbid. PC: Eddie Grove
A UNHCR Syrian Refugee tent in Irbid. PC: Eddie Grove
  1. Jordan’s education system doesn’t provide students with necessary skills for the workforce.
  2. Jordanian students often choose fields of study that aren’t in high demand in the workforce.
  3. Syrian refugees compete for informal sector jobs.

Youth unemployment, often long in duration, leads to frustration.  This frustration is compounded by a lack of avenues for political expression among Jordanian youth.  Little real reform occurred during Jordan’s relatively small-scale Arab Spring protests.

The kunafe at Habibeh in Amman, made by a family originally from Nablus, is tasty evidence that the majority of Jordan's population is originally Palestinian. PC: Eddie Grove
The kunafe at Habibeh in Amman, made by a family originally from Nablus, is tasty evidence that the majority of Jordan’s population is originally Palestinian. PC: Eddie Grove

Some discontented youth see jihadism as attractive.  Experts estimate that there are 5,000-10,000 jihadis in Jordan, and that this number may have doubled since the Arab Spring.  Jordan’s jihadis were traditionally mainly Palestinian, but growing numbers of ethnic Jordanians (East Bankers) have been joining the movement.  East Bankers have traditionally been regime loyalists and comprise the majority of the military and security services.  Cracks in their loyalty pose a serious threat to the regime.

 

 

The Shariah College in Jabal Webdeh, Amman. The Jordanian government tries to monitor the content of mosque sermons closely. PC: Eddie Grove
The Shariah College in Jabal Webdeh, Amman. The Jordanian government tries to monitor the content of mosque sermons closely. PC: Eddie Grove

The government closely watches jihadis; it arrests those who post jihadi content online and preachers who deliver extremist sermons.  According to one expert, the vast majority of Jordan’s jihadis now sympathize with ISIS. ISIS has grassroots support, if not an organized presence.  YouTube videos have shown pro-ISIS rallies in Ma’an and Zarqa and there is also evidence of ISIS sympathizers in Irbid.  As of fall 2014, there were 1000-1500 Jordanian fighters in Syria, and 8% of Jordan’s population sympathized with ISIS.  Ten percent didn’t consider ISIS a terrorist organization, and opposition to Jordan’s participation in coalition airstrikes was widespread: #ThisIsNotOurWar was a trending Twitter hashtag.

The sign in the grass at the Roman Theater in Amman has the patriotic slogan: "Hold your head high."
The sign in the grass at the Roman Theater in Amman has the patriotic slogan: “hold your head high.” PC: Eddie Grove

When Muath Al-Kasasbeh was murdered, it prompted an anti-ISIS backlash and a surge in patriotism.  A February 2015 poll showed overwhelming support for Jordan’s participation in coalition airstrikes, and that 95% of the population now considered ISIS a terrorist organization.  Confidence in PM Ensour’s government also increased.  King Abdullah urged Jordanians to “hold their heads high.”  This became a trending hashtag on Twitter.  The surge in patriotism was not universal, however, as a Jordanian MP and a high-ranking Jordanian diplomat publicly derided this new slogan.  In addition, an ISIS cell was arrested in Mafraq in March 2015, a poor city with many Syrian refugees.

Downtown Mafraq. PC: Eddie Grove
Downtown Mafraq. PC: Eddie Grove

The wave of patriotism will fade and energy costs will increase, so Jordan needs to address its water

The Jordan Valley Authority controls irrigation water in the Jordan River Valley.  It is one of Jordan's best-performing water utilities, with low NRW.  PC: Eddie Grove
The Jordan Valley Authority controls irrigation water in the Jordan River Valley. It is one of Jordan’s best-performing water utilities, with low NRW. PC: Eddie Grove

and energy scarcity issues.  Water scarcity may have been a contributory cause of Syria’s civil war, and Jordan is one of the world’s most water-scarce countries.  Additionally, ~40% of the inputs into Jordan’s water networks become Non-revenue Water (NRW).  NRW is essentially water that is not accounted for when customers are billed, due to leakage, illegal use, faulty meters, incompetent meter-readers, and poor accounting.  Israel provides Jordan with water from Lake Kinneret, and this quantity may increase in the future.  Jordan also plans to desalinate water at Aqaba.  However, solving Jordan’s water crisis requires progress on multiple fronts, including NRW reduction (with the help of the international community).  Climate change could worsen Jordan’s water woes, and comparisons between Jordan and Syria are ominous.  Water scarcity drove internal migration in Syria, which combined with other factors like corruption, unemployment and inequality to ignite the crisis.  Jordan displays similar risk factors.

A view of Aqaba from Mount Tzefahot in Eilat.  Jordan plans to desalinate water here.
A view of Aqaba from Mount Tzefahot in Eilat, Israel. Jordan plans to desalinate water at Aqaba. PC: Eddie Grove
Wadi Ziglab, one of Jordan's water reservoirs.
Wadi Ziglab, one of Jordan’s water reservoirs. PC: Eddie Grove

Jordan must also address its energy scarcity issues.  Jordan used to import natural gas from Egypt, but repeated terror attacks on the pipeline through the Sinai halted the imports and damaged Jordan economically, forcing it to import costlier petroleum products.  Low oil prices provide a temporary respite.  Fortunately, Jordan has plans to diversify its energy sources by 2020, with the following breakdown:

Jordan's deserts are ideal for solar panel generation. Wadi Rum (top), camel crossing sign near Wadi Rum (bottom left) and patches of snow near Ma'an (bottom right). PC: Eddie Grove
Jordan’s deserts are ideal for solar panel generation. Wadi Rum (top), camel crossing sign near Wadi Rum (bottom left) and patches of snow near the restive city of Ma’an (bottom right). PC: Eddie Grove
  1. 10% from wind and solar.
  2. 14% oil shale.
  3.  6% nuclear.
  4. 29% natural gas.
  5. 1% imported electricity.
  6. 40% petroleum products.
The spine of mountains that runs North-South in Western Jordan provide opportunities for wind farms.  This windy spot at Ajloun Castle is a great example.  PC: Edie Grove
The spine of mountains that runs North-South in Western Jordan provides opportunities for wind farms. This windy spot at Ajloun Castle is a great example. PC: Eddie Grove
Jordan's first planned wind farm is here in Tafileh. PC: Eddie Grove
Jordan’s first planned wind farm will be in this town, Tafileh, but little progress has been made on it. PC: Eddie Grove

Unfortunately, this won’t happen, at least not by 2020.  Israel may import gas from Israel, but this is politically challenging and Israel’s gas companies are embroiled in an anti-trust dispute with the Israeli government.  Gas from Gaza is more politically palatable for Jordan, but is unlikely to come online soon for political reasons. Jordan imports LNG from Qatar, but this is costlier than gas via pipeline.  Little progress has been made on the wind and solar projects, and Jordan’s nuclear ambitions may never come to fruition because of high costs and international opposition.  Oil shale (not to be confused with shale oil) has never before been extracted on a commercial scale and may not be viable at oil prices below $75/barrel.

Costly energy imports damage Jordan’s economy (and therefore its stability) as follows:

  1. High energy prices increase the cost of living for struggling Jordanians.
  2. Jordan’s remaining energy subsidies are a burden on the government’s budget and divert funds from key areas.
  3. Energy subsidies crowd-out private sector investment.

Energy diversification (with the help of the international community) would alleviate these issues, and help counteract the poor economic conditions that contribute to the rise in jihadism.

Israel has a strong interest in preserving Jordan’s stability, as Jordan is a buffer state.  Jordan used to

Haifa Port. PC: Eddie Grove
Haifa Port, now used to export Jordanian goods. PC: Eddie Grove

export goods through Syria, but Israel has allowed Jordan to use Haifa’s port for exports, and is improving the facilities there.  The Israeli-Palestinian conflict is always a complicating factor in Israeli-Jordanian relations; the majority of Jordan’s population is Palestinian, causing a political climate in which Jordan requires at least a semblance of progress in Israeli-Palestinian negotiations to ensure quiet domestically.  Jordan’s 2014-2015 UN Security Council membership further complicates this balancing act.

Checkpoint between Ramallah and Jerusalem (top), the Israeli settlement of Beitar Illit (bottom left),  and downtown Ramallah (bottom right). To ensure domestic quiet, Jordan ideally wants positive progress on the Israeli-Palestinian conflict. PC: Eddie Grove
Checkpoint between Ramallah and Jerusalem (top), the Israeli settlement of Beitar Illit (bottom left), and downtown Ramallah (bottom right). To ensure domestic quiet, Jordan ideally wants positive progress on the Israeli-Palestinian conflict. PC: Eddie Grove
A view into the area around Aqaba, Jordan from what was once an Israeli defense post.  Today, the site is part of the Eilat Botanical Gardens.  Jordan and Israel were once enemies, but are now strategic partners.
A view into the area around Aqaba, Jordan from what was once an Israeli defense post. Today, the site is part of the Eilat Botanical Gardens. Jordan and Israel were once enemies, but are now strategic partners. PC: Eddie Grove
A view of Jordan through an arrowslit at the Crusader castle of Belvoir, Israel.
A view of Jordan through an arrowslit at the Crusader castle of Belvoir, Israel. PC: Eddie Grove

To shore-up Jordan’s stability, Israel can:

  1. Increase bilateral cooperation (this has likely already happened).
  2. Expedite water and gas transfers.
  3. Allow for greater access of Jordanian products to Israel, but more importantly, the Palestinian market.
  4. Increase its use of Jordan’s port of Aqaba, which could produce mutual benefits.

 

In addition, the US and GCC must keep up financial assistance to Jordan, but ensure that this assistance addresses long-term issues. The immediate risk posed by ISIS is likely not a frontal attack. ISIS rather seeks to exploit pockets of poverty and unemployment within Jordan, including among East Bankers.  Financial resources are needed to prevent this.

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Nuance in regional reactions to the Iran deal

On Wednesday, the Wilson Center hosted a panel on  “The Iran Nuclear Deal: The View from the Region.” Speakers included Muath Al Wari, Senior Policy Analyst at Center for American Progress, Deborah Amos, International Correspondent for NPR, Shlomo Brom, Visiting Fellow at Center for American Progress and Fahad Nazer, Political Analyst at JTG Inc. The event was moderated by Henri J. Barkey, Director of the Middle East Program at the Wilson Center.

Al Wari analyzed the UAE response to the nuclear deal. He claimed the UAE concern is less about the nuclear aspect and more about the fact that Iran ran a clandestine program under the authority of a state that is willing to undermine other governments in the region. However, Emiratis have decided to look towards the future, believing President Obama secured the best deal possible. The UAE is now looking at what the deal means for future Iranian encroachment in the region and what the US and other P5 countries will do to constrain Iran. The UAE hopes that Iran will normalize its regional behavior. In the coming days, the Emiratis will study the outcomes of King Salman’s visit to the US.

Al Wari criticized the sectarian portrayal of the nuclear deal. Regional concerns about the deal are linked to the geopolitical security competition. Sectarianism is exacerbated by the competition and contributes to it. His belief is that the deal is an American tool to prevent escalation in the Middle East—the agreement is a formal check on Iranian hegemony and encroachment.

Amos explained that the deal so far is unsurprisingly irrelevant to daily life, but the consequences of the agreement will be tested on the ground. She reiterated Al Wari’s words—the Gulf States want to know if attention will be paid to non-nuclear developments that are heating up. That said, the deal unlocks significant trade potential regionally (especially for the UAE and Oman) and globally. The calculus of power has already shifted, with Europeans sending trade delegations and major American companies, such as Apple, preparing to tap into the Iranian consumer market.

Brom delved into the nuances of the Israeli stance on the nuclear deal. For Israel, Iran’s nuclear program and the possibility of it acquiring nuclear weapons has always been a central issue. Indeed, Iran’s nuclear program is the centerpiece of Netanyahu’s foreign policy. He believes he won the elections because of his strong security agenda and perceives Iran as an existential threat. Many Israelis think the combination of a religious and ideological regime with nuclear weapons could lead to Iran striking Israel. However, Netanyahu’s opinion isn’t representative of all Israelis. Many dissenters coming from the Israeli security and foreign policy community, including Brom, believe the agreement is not perfect, but still better than no agreement. A better agreement would have been unlikely.

Like Brom, Nazer also cautioned against making generalizations about regional players. He thinks it is too simplistic to assume that all Saudis think the nuclear deal will usher in an Iranian hegemony with American blessings. Instead, he thinks the Saudi position has shifted slightly. The Saudis are no longer committed to preventing the deal from being implemented. The Saudis support any agreement that prevents Iran from acquiring nuclear weapons and guarantees the reinstatement of sanctions if Iran doesn’t comply. After Saudi Foreign Minister Al Jubeir’s visit to Washingon, he openly commended the robust inspection of the verification regime and provision of “snapback” sanctions.

At the same time, the Saudis are maintaining a wary position on the deal. Saudi Arabia is not depending on the US and hoping for the best. High-level Saudi officials have had meetings with Russians, Europeans and other key leaders. Prince Faisal has also said Saudis will expect the same nuclear standards for themselves and should be permitted at least the same levels of uranium enrichment capability as Iran. Prince Bandar has compared the Iran agreement to the nuclear agreement President Clinton signed with North Korea. He feels President Obama is not keeping the lessons of Korea in mind.

The US and Saudi Arabia also have differing threat perceptions. President Obama thinks Saudis need to worry less about an external threat from Iran and focus on the internal implosion stemming from a generation of youths with few hopes for the future. Conversely, the prevailing sentiment in Saudi Arabia is that Iran constitutes a serious threat. Saudi Arabia and Iran have been on polar opposite ends in Syria, Yemen, Iraq and Lebanon. Nazer believes there is a serious credibility gap between Saudi Arabia and Iran, which could lead the Saudis to take matters into their own hands, as they have done in Yemen.

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