Tag: Gulf states

Europe at sea

11798169_10153515011153011_1249660288_nOn Monday, the Hudson Institute hosted a conversation with Rear Admiral Chris Parry, Royal Navy (Ret.), entitled Europe at Sea: Mediterranean and Baltic Security Challenges.  Seth Cropsey, Senior Fellow, Hudson Institute, moderated.  Admiral Parry spoke about the challenges that Europe faces, given that it is surrounded by water on three sides, and outlined several alternative political futures for Europe.

The threats to Europe from the sea are not new.  In 1983, the USSR had a plan to attack Europe through the Central Front plus the Baltic and Mediterranean Seas. Understanding the way the Russians view the Black and Baltic Seas is crucial to understanding Putin’s motives.  They have a very short coastline on the Baltic Sea. Until they took Crimea, they had a short Black Sea coast as well.  This has always made the Russians nervous.  Russia and the Scandinavian countries also have competing claims in the Arctic.  Russia’s claims extend far beyond the UN Convention on the Law of the Sea, and Russian icebreakers now escort vessels through the Arctic.

At ~9 mi. wide, the Straights of Gibraltar are the area in which Europe and North Africa are closest.  Pictured here is a ferry traveling from Tangier, Morocco, to Algeciras, Spain.
At ~9 mi. wide, the Straights of Gibraltar are the area in which Europe and North Africa are closest. Pictured here is a ferry traveling from Tangier, Morocco, to Algeciras, Spain. PC: Eddie Grove

Europe, however, is more worried about the Mediterranean because of unstable states in North Africa and the Levant, as well as migration both by sea and overland through Turkey.  There is a risk for the return of Barbary piracy, as well as for seaborne terrorist attacks on coastal tourist areas.  Northern Europe believes that it is the responsibility of Southern European countries to deal with this.  The EU is not set up to make political decisions because it is an economic union with political pretensions.  The effort needed to run the EU saps energy from efforts to address seaborne security threats.

The Roman ruins of Kourion, near Limassol, Cyprus.  In September, 2014, a cruise ship rescued ~300 migrants thought to be Syrian refugees off the coast of Cyprus.  The migrants were persuaded to disembark at Limassol.
The Roman ruins of Kourion, near Limassol, Cyprus. In September 2014, a cruise ship rescued ~300 migrants thought to be Syrian refugees off the coast of Cyprus. The migrants were persuaded to disembark at Limassol. PC: Eddie Grove

Parry spoke about how influence has shifted, such that the important global players are now the US and the East Asian countries.  The US is well-placed to benefit from globalization. If Europe isn’t careful, it will decline and become strategically irrelevant.  In the future, Parry sees:

  1. An increase in the use of state power by non-Western countries.
  2. Small amounts of high-quality force will be decisive.
  3. Increased proxy activity, because states don’t want to directly confront each other.
  4.  WMD proliferation.
  5. Increased terrorism.
  6. Diffusion of technology and weaponry.

There will be both irregular threats from terrorism, criminality, disasters and disease, as well as renewed threats from China, Russia, ISIS, Marxist revivalists (in Greece, for example), regional aspirants and weapons proliferation.   Europe will need to contain a Middle Eastern equivalent of Europe’s Thirty Years War, ensure access to natural resources, and adapt to climate change.

Though Putin constitutes an existential threat, Parry noted that defense expenditure in Europe is declining.  NATO countries still however spend more than non-NATO countries.  It spends far more to shoot down a cheap missile than the missile costs; this unsustainable cost ratio must decrease. NATO has failed to resist coercion in Ukraine.  Hitler knew he would win at Munich because he knew the British and French wouldn’t go to war.  Putin is using traditional hard power and is confused by our lack of response.  Russia’s Baltic Sea exercises are designed to resist NATO forces.

Stockholm Harbor.  In October, 2014, Sweden detected a suspected Russian submarine in the Stockholm Archipelago and conducted a search. PC: Eddie Grove
Stockholm Harbor. In October 2014, Sweden detected a suspected Russian submarine in the Stockholm Archipelago and conducted a search. PC: Eddie Grove

Scandinavia is nervous.  Europe has become strategically dependent on the US; some European countries have armies that aren’t prepared to go to war. The UK is investing in new aircraft carriers but is hollowing out the rest of the Royal Navy. To resist coercion at sea from Russia, a change in attitude is needed.

Parry also spoke about the Middle East and North Africa (MENA).  The Iran deal represents what is possible, rather than what is desirable. China and Russia have been keen to maintain Iran as a client state and suppress its nuclear ambitions. In the rush to welcome Iran into the global economy, we need to be careful about the security dimensions.  As a result of the Sunni-Shiite conflict in MENA, the “Great Satan” tag will shift from the US to Saudi Arabia.  China has invested heavily in new trade routes.  It may get the bulk of its future oil and gas from Shiite Iran and Shiite-dominated Iraq.  But China could also move into the Southern Gulf States if the US and Europe reduce their commitments there.

Like Russia, China is increasing its naval presence, sometimes disregarding the UN Convention on the Law of the Sea.   There are increasing numbers of Chinese warships in the Indian Ocean as well as Chinese ships in the Mediterranean and Chinese icebreakers in the Arctic.  China views its oil rigs as sovereign territory, which means that it believes it can base missiles and surveillance off of them. This is illegal under international law.

The European Parliament in Brussels, Belgium.
The European Parliament in Brussels, Belgium. PC: Eddie Grove

Parry outlined three different potential futures for Europe:

  1. A Eurasian future: the US drifts to the Pacific and Europe pursues economic cooperation with Russia and China.
  2. A maritime future: Parts of Europe, the US, Canada, Australia, New Zealand, Japan, and Korea together control trade on the seas.  The sea is the physical equivalent of the World Wide Web and controlling it is vital for international trade.
  3. A fragmented future: There are no eternal friends or enemies, just interests, and each country pursues its own interests.  Europe’s separatist movements could also lead to a fragmented future.
Separatist movements have gained ground throughout Europe.  Brussels (left) is located in Flanders, but is now majority French-speaking, causing linguistic/ethnic tension. Scotland's capital, Edinburgh (top right) voted against Scotland's 2014 independence referendum, but Glasgow, Scotland's largest city, voted in favor.  Cyprus (bottom right) has been divided on Greek-Turkish ethnic lines since 1983.
Separatist movements have gained ground throughout Europe. Brussels (left) is located in Flanders, but is now majority French-speaking, causing linguistic/ethnic tension. Scotland’s capital, Edinburgh (top right) voted against Scotland’s 2014 independence referendum, but Glasgow, Scotland’s largest city, voted in favor. Cyprus (bottom right) has been divided along Greek-Turkish ethnic lines since 1983. PC: Eddie Grove

According to Parry, the US now faces choices as well.  Unconventional oil and gas have been a game-changer for the US economy.  The US has to decide whether it will use this money to remain strategically dominant or turn inward.  The 2016 election will be crucial.  In the future, if it becomes clear that help isn’t coming from the US, European countries will seek accommodation with Russia and East Asian countries will seek accommodation with China. This will have major geostrategic consequences.

Tags : , , , , , , , ,

Peace picks July 20-24

1. Iran and the Future of the Regional Security and Economic Landscape | Tuesday, July 21st | 9:00 – 12:00 | CNAS | REGISTER TO ATTEND | Under the deal, Iran will put significant limitations on its nuclear program in exchange for sanctions relief from the international community. But the details and effects of the agreement are far from simple. Iran’s regional rivals, who are core U.S. partners in the Middle East, are deeply concerned about how the deal will change regional power dynamics. There are also questions about economic competition, particularly in energy markets, in the aftermath of

A 17th Century mihrab from Isfahan, Iran at the Israel Museum.  Israel is particularly worried in the wake of the Iran deal.
A 17th Century mihrab from Isfahan, Iran at the Israel Museum in Jerusalem. Israel is particularly worried in the wake of the Iran deal. PC: Eddie Grove

the nuclear deal.  Keynote address by: Dr. Colin H. Kahl, Deputy Assistant to the President and National Security Advisor to the Vice President. Panelists include: Dr. Suzanne Maloney, Senior Fellow, CMEP, Brookings, David  Ziegler, Distinguished Fellow and Director, Project on the Middle East Peace Process, WINEP, Melissa Dalton, Fellow and Chief of Staff of the International Security Program, CSIS, Elizabeth Rosenberg, Senior Fellow and Director, Energy, Economics, and Security Program, CNAS, Colin McGinnis, Policy Director, U.S. Senate Committee on Banking, Housing and Urban Affairs, Sean Thornton, Senior Counsel, Group Financial Security BNP Paribas, and Caroline Hurndall, Head of Middle East Team, British Embassy.  Moderators include: Ilan Goldenberg, Senior Fellow and Director, Middle East Security Program, CNAS and Zachary Goldman, Executive Director, Center on Law and Security, NYU School of Law and Adjunct Senior Fellow, CNAS.

2. Women and Countering Violent Extremism: Strengthening Policy Responses and Ensuring Inclusivity Tuesday, July 21st | 9:30-12:30 | USIP | REGISTER TO ATTEND | Women worldwide suffer disproportionately from violent extremism and conflict. Women’s key roles in society put them in ideal positions to prevent extremist violence. Yet, 15 years after the United Nations Security Council vowed to reverse the broad exclusion of women from leadership in security and peacebuilding, they

Women in the bazaar in Istaravshan, Tajikistan. Women remain heavily marginalized in Tajik society.  PC: Eddie Grove
Women in the bazaar in Istaravshan, Tajikistan. Women remain heavily marginalized in Tajik society. PC: Eddie Grove

remain marginalized. On July 21 at USIP, experts from civil society, the United Nations, academia, and the U.S. government will discuss ways to include women in efforts to counter violent extremism. The debate will directly inform U.S. government officials preparing for major international conferences on these issues this fall. The U.N. Security Council recognized in 2000 (in its Resolution 1325) that we need women to help lead in global efforts at resolving violent conflict. Several current wars and conflicts underscore how the recent surge in violent extremism has given new urgency both to protecting women and including them in solutions. The U.N. secretary general’s special representative on sexual violence, Zainab Bangura, will discuss that imperative, having recently visited Syria and Iraq. Speakers include: Zainab Hawa Bangura, Special Representative of the UN Secretary General on Sexual Violence in Conflict, Ambassador Anwarul K. Chowdhury, Former Under-Secretary-General and High Representative of the UN, Timothy B. Curry, Deputy Director, Counterterrorism Policy, U.S. Department of Homeland Security, Eric G. Postel, Associate Administrator, USAID, Robert Berschinski, Deputy Assistant Secretary, Bureau of Democracy, Human Rights, and Labor, U.S. Department of State, Carla Koppell, Chief Strategy Officer, USAID, Nancy Lindborg, President, USIP, Chantal de Jonge Oudraat, President, Women in International Security, Susan Hayward, Director, Religion and Peacebuilding, Governance, Law and Society, USIP, and Jacqueline O’Neill, Director, Institute for Inclusive Security. Moderator: Kathleen Kuehnast, Director, Gender and Peacebuilding, USIP.

3. Islamic extremism, reformism, and the war on terror | Tuesday, July 21st | 10:00 – 12:00 | AEI | REGISTER TO ATTEND | President Barack Obama has said that the Islamic State (ISIS, ISIL, Daesh) and other extremist groups do not represent true Islam. The extremists, however, dispute this.

The 15th Century Timurid Kok Gonbaz Madrasa in Istaravshan, Tajikistan. PC: Eddie Grove
The 15th Century Timurid Kok Gonbaz Madrasa in Istaravshan, Tajikistan. PC: Eddie Grove

This leads to a basic question: What role, if any, does Islam play in fomenting terrorism? As extremist forces increasingly sow destruction, how should policymakers respond? How prevalent are moderates, and how serious are regional calls for a “reformation” within Islam? What role, if any, can the US play to encourage reform? How do anti-Islamic polemics undercut reform? Panelists include: Jennifer Bryson, Zephyr Institute, Shadi Hamid, Brookings Institution, Abbas Kadhim, Institute of Shia Studies, Zainab Al-Suwaij, American Islamic Congress, Husain Haqqani, Hudson Institute and Former Pakistani Ambassador to the United States, and Mohamed Younis, Gallup. Moderators include: Michael Rubin, AEI and Danielle Pletka, AEI.

 

4. Negotiating the Gulf: How a Nuclear Deal Would Redefine GCC-Iran Relations | Tuesday, July 21st | 12:00-2:00 | The Arab Gulf States Institute | REGISTER TO ATTEND | As a nuclear agreement between Iran and the P5+1 was recently finalized, few in the international community have more at stake than Iran’s Arab neighbors across the Gulf. Will the agreement usher in a new era of detente in the Middle East? Will Iran emerge as a more responsible partner, not just to the West but also to

The 13th-14th Century Bahla Fort in Oman. Oman played a key role in bringing Iran and the P5+1 together at the negotiating table.
The 13th-14th Century Bahla Fort in Oman. Oman played a key role in bringing Iran and the P5+1 together at the negotiating table. PC: Eddie Grove

regional powers? Can Iran and the GCC states begin to identify areas of cooperation to bring about more stability and security to the region? Will  the agreement truly prevent Iran from developing nuclear weapons, or does the Middle East stand on the brink of another, particularly dangerous, arms race? Speakers include: Suzanne DiMaggio, senior fellow and the director of the Iran Initiative at New America, Jamal Khashoggi, Saudi journalist, columnist, author, and general manager of the upcoming Al Arab News Channel, Nadim Shehadi, director of the Fares Center for Eastern Mediterranean Studies, Fletcher School, Tufts University, Mohammad Ayatollahi Tabaar, fellow, Rice University’s Baker Institute for Public Policy and, assistant professor, Department of International Affairs, Bush School of Government and Public Service, Texas A&M University.

5. Russian Expansion – A Reality or Fiction: A Conversation with Elmar Brok | Tuesday, July 21st | 12:30-1:30 | German Marshall Fund | REGISTER TO ATTEND | With the Minsk II ceasefire in eastern Ukraine looking increasingly shaky, Europe risks a frozen conflict for years to come. However, is Russian President Vladimir Putin finished in Ukraine? Can the United States and Europe expect more aggression from the Kremlin or is consolidation Russia’s strategy now? What do the future of Russian relations with the European Union and Germany look like and what role do sanctions play in this calculation? Elmar Brok, chairman of the European Parliament’s Committee on Foreign Affairs, will answer these questions and provide analysis of U.S.-European views toward Ukraine and Russia. GMF, the Konrad Adenauer Foundation, and the European Parliament Liaison Office are pleased to jointly host this conversation.

6. Saudi Arabia’s Scholarship Program: Generating a “Tipping Point”? | Tuesday, July 21st | 1:oo | Atlantic Council | REGISTER TO ATTEND | Westerners most commonly associate the Kingdom with oil, religious conservatism, and a deeply unstable region. Our panelists will challenge such conventional perceptions by examining the seismic economic, social, and governmental changes underway, many of which evidently result in part from the deliberate Saudi government investment in its human capital. The panel will present the thesis that, having sent over 200,000 Saudi youth abroad in the past ten years with the King Abdullah Scholarship Program, the Kingdom is already experiencing powerfully transformative economic and social advances. Ambassador Francis Ricciardone, Atlantic Council Vice President and Director of the Council’s Rafik Hariri Center for the Middle East, will moderate the discussion. Hariri Center Associate Director Ms. Stefanie Hausheer Ali will present key data and analysis on the scholarship program’s origins and size as well as its costs and benefits from her case study for the King Salman Center for Innovative Government. Dr. Rajika Bhandari, Deputy Vice President of the Institute of International Education (IIE) and Director of IIE’s Center for Academic Mobility Research and Impact, will discuss the Saudi scholarship program within the context of other international scholarship programs and the types of impacts such programs can have. Ms. Samar Alawami, an American University graduate of the scholarship program and researcher at the King Salman Center for Innovative Government, will discuss how the scholarship is impacting her generation. Ambassador James Smith, President of C&M International, will reflect on the changes in Saudi Arabia he witnessed during his tenure as US Ambassador from 2009 to 2013.

7. Rebuilding Afghanistan: Transparency & Accountability in America’s Longest War | Tuesday, July 21st | 6:30 pm – 8:30 pm | PS21 | REGISTER TO ATTEND | As the longest running and one of the most expensive wars in U.S. history winds down, just where did the money go? PS21 is delighted to present a discussion with the man looking into that very question, Special Inspector General for Afghanistan Reconstruction John F. Sopko, and Just Security. Speakers include: John F. Sopko, Special Inspector General for Afghan Reconstruction, and Andy Wright, Founding Editor, Just Security

8. Nigeria: A Conversation with President Muhammadu Buhari | Wednesday, Jul 22nd | 9:45 – 11:15 | Located at USIP but sponsored by NDI | REGISTER TO ATTEND | Please read: Important information for guests attending public events at USIP.  In a milestone for Nigeria and multi-party democracy in Africa, Muhammadu Buhari was elected president in March, becoming the first opposition candidate to unseat an elected Nigerian president through the ballot box. Following a vigorous political campaign period, Nigerians successfully managed a relatively peaceful electoral process and government transition. As the new government begins its mandate, political, economic and security pressures remain intense, including the escalating insurgency of Boko Haram and unresolved conflicts across the country. President Buhari’s remarks at USIP will come on the last of his three days in Washington, following his July 20 meeting with President Obama. All guests should arrive no later than 9:45 am to pass through security. Doors to the event will close promptly at 10:00 am.

9. Arbitrary Justice in Saudi Arabia: How Activists Have Organized against Due Process Violations | Wednesday, July 23rd | 11:30 – 1:00 | Located at Open Society Foundations but sponsored by Americans for Democracy & Human Rights in Bahrain and Amnesty International | REGISTER TO ATTEND | Americans for Democracy & Human Rights in Bahrain (ADHRB) and Amnesty International are cosponsoring an event to shed light on the absence of Rule of Law in Saudi Arabia. The discussion will outline the specific deficiencies within the Saudi criminal justice system that lead to the

Manama, Bahrain. The event is co-sponsored by Americans for Democracy & Human Rights in Bahrain and Amnesty International. PC: Eddie Grove
Manama, Bahrain. The event is co-sponsored by Americans for Democracy & Human Rights in Bahrain and Amnesty International. PC: Eddie Grove

commission of human rights violations, including judges’ lack of independence, practices of arbitrary and incommunicado detention, and a catch-all anti-terrorism law. Discussion will then turn to highlighting the cases of those activists, including members of the Saudi Civil and Political Rights Association (ACPRA) and human rights lawyer Waleed Abu al-Khair, who have sacrificed their independence to raise awareness of human rights abuses and bring reforms to this system. Panelists include: Abdulaziz Alhussan, Visiting Scholar at Indiana University’s Center for Constitutional Democracy and former attorney for several ACPRA members, Hala al-Dosari, Saudi activist and women’s health researcher, Sunjeev Bery, Director of MENA Advocacy at Amnesty International USA, and R. James Suzano, Acting Director of Advocacy at ADHRB.

10. On Knife’s Edge: The International Criminal Tribunal for the former Yugoslavia’s Impact on Violence Against Civilians | Wednesday, July 23rd | 12:00-1:00 | Wilson Center | REGISTER TO ATTEND | The post-Cold War era has witnessed horrific violence against non-combatants. In the Bosnian War alone, tens of thousands of civilians died. The founders of the International Criminal Tribunal for the former Yugoslavia (ICTY)—and then of the permanent International Criminal Court (ICC)—hoped these courts might curb such atrocities. However, we still know very little about their actual impact. This talk will draw on the ICTY’s experience as the first wartime international criminal tribunal to provide insight into how and when these institutions might affect violence against civilians.  Speakers include: Jacqueline McAllister, Title VII Research Scholar, Ph.D., Northwestern University, Assistant Professor, Kenyon College and John R. Lampe, Senior Scholar Professor Emeritus, Department of History, University of Maryland, College Park.

Tags : , , , , , , , , , , , , ,

Global implications of the oil price crash

The steep decline in oil prices has been one of the most significant global economic developments over the past year. On Tuesday, the Carnegie Endowment held an event on “Oil Price Trends and Global Implications” to address the consequences. The panelists included Aasim M. Husain, Deputy Director in the Middle East and Central Asia Department of the IMF and Chair of the IMF Interdepartmental Oil Group, Uri Dadush, Senior Associate at the Carnegie Endowment and Mark Finley, General Manager for Global Energy Markets and US Economics at BP. The event was moderated by Michele Dunne, Senior Associate in Carnegie’s Middle East Program.

Husain assessed that the drop in oil prices will persist in the medium-term. Initially, when oil prices fell, futures prices did not fall with spot prices. Instead, spot prices fell around mid-year while futures prices started to fall in October. Markets expect some recovery of spot prices, but because of decline in long-term oil prices, the recovery will not be full—oil prices will not go back to $90-$100 per barrel, but they can go back to $70-$75 per barrel. Futures prices are predicted to remain in the $40-$100 range.

The drop in price was a result of decrease in demand as well as increase in supply. Unlike in 1986, when Saudi Arabia’s sudden increase in supply crashed oil prices, in 2014 the world experienced the shale gas revolution, lower extraction costs for oil and lower demand. Basically, a combination of factors led to the oil price crash, although supply factors played a larger role.

Unsurprisingly, “pass-through”—the change in oil price passed on to consumers—was minimal worldwide. Since many countries regulate or fix petroleum prices, consumers did not get the entire benefit of the oil price decline. The biggest pass-throughs were in Europe at 80% and in North America at 50%. Husain claimed that if oil prices were fully passed through, global growth would increase by 1% in a year.

The beneficiaries of the low oil prices have been governments and state-owned enterprises. What they do with revenue determines the consequences of the oil price shock. Some may increase government spending, while others may save more. The losers have been oil-producing countries that are receiving lower oil revenues and therefore have less to invest in global financial markets. Fortunately, many of these countries have accumulated large buffers that will give them time to make adjustments to the price decline.

Finley attributes lower oil prices mainly to changes in supply. In 2014, global consumption was in line with the long-term historical average, but supply was exceptionally strong—global oil production grew at almost twice the historical rate. All the net growth came from outside the OPEC countries, with the US shale gas revolution leading the way. In 2014, the US surpassed Saudi Arabia and Russia to become the world’s largest oil producer since 1985. Both Canada and Brazil also saw record increases in oil production and achieved all-time record levels on average in 2014. Global demand and non-OPEC production have begun to respond to lower oil prices, but the substantial increase in oil production means that the market remains significantly oversupplied.

Like Husain, Finley believes the persistent decrease in oil prices will continue through the medium-term. However, one must keep in mind ongoing supply disruptions in the Middle East and North Africa. Finley warned that any policy must be robust across a range of prices or be able to adapt to significant and unexpected price changes in the future.

Dadush believes oil price shocks stimulate economic activity in the short-run by redistributing income towards people who consume more with a high propensity to consume. But this effect lasts only so long. There will be—and already are—significant cutbacks in energy investment. Oil is only 2% of the world GDP when one looks at production, so an oil price change even by 50% doesn’t have a huge stimulatory effect on world supply. This means the stimulus from the oil shock is short-lived even if there is high pass-through.

With regard to the Iranian nuclear deal, the panelists agreed that the return of Iranian oil will increase supply, but it is unclear by how much because of uncertainty about Iran’s capabilities and the response of other OPEC producers. Any volume of incremental Iranian production would simply add to an already oversupplied market.

Tags : , , ,

Iran’s return to oil markets

Thursday, the Wilson Center focused on “Middle East Energy: Beyond an Iran Nuclear Deal,” which explored the oil and gas sectors’ future given Iran’s possible sanctions relief. Speakers included David Goldwyn, President of Goldwyn Global Strategies LLC, David Gordon, Senior Advisor of the Eurasia Group, Julia Nanay, Principal at Energy Ventures LLC and Jean-Francois Seznec, a non-resident Senior Fellow at the Atlantic Council. The event was moderated by Jan H. Kalicki, Wilson Center Public Policy Fellow and Energy Lead.

Gordon talked about potential energy market responses with the entry of Libya and Iran into the market. Libya’s entry last year put downward pressure on oil prices. The country is currently in the process of building up its export volumes, but the political and security fragility remains. Iran’s market impact is also uncertain. There may be competition between Iran and the Gulf Cooperation Council (GCC) states for market share. Iran’s success is far from assured. The current uncertainty ends up being bearish for energy markets, which will lead to the strengthening of the US dollar. Only the risk of supply disruption and failure of nuclear talks could be bullish for markets.

If sanctions are lifted, Nanay thinks Iran’s key goal is to become the second largest producer in OPEC. Saudi Arabia’s oil production amounts to 10.3 million barrels a day, while Iran is at 2.8 million barrels a day. Iraq’s is a bit higher. Iran might bring back 700-800,000 barrels a day, with 20 million barrels released quickly and efficiently. Sanctions have also prevented oil revenues from flowing back to Iran. There may be as much as $100 billion that could be released quickly, possibly half from China. International oil companies (IOCs) also owe large sums to Iran.

Possible losers from sanctions relief are the Saudis, Russians, Nigerians and Kuwaitis. The Saudis and Russians have been able to capture some exports to China. Sanctions relief would decrease the market share of all oil exporting countries that have benefited from having Iran off the oil market.

Iran has several stalled projects with significant market potential in the oil and gas sectors. A South Pars project requires 24 phases to develop fully, of which 11 phases have already been done without sanctions removal. Iran is looking to complete more phases by next year. Iran has also planned three big Liquefied Natural Gas (LNG) projects. Iran can ship this LNG to Europe and supply its neighbors, such as Saudi Arabia and Kuwait, but politics may complicate partnerships. The only neighbor Iran has a good relationship with is Oman. An Iran-Oman gas pipeline is possible, but the countries may disagree on price.

Seznec disagreed with Nanay on Iran’s potential in the oil market. Iran will require technology and investment that would make it dependent on IOCs. Instead, Iran can emphasize natural gas, which both Iran and the Gulf states need. The GCC states—especially Saudi Arabia—could partner with Iran in the gas sector. The Saudis have the technology and money to help the Iranians redevelop their gas fields. The Kingdom is seeking to avoid overdependence on crude oil. Instead, it wants to add value by building capacity for refined products and chemicals. Their vision is eventually to get out selling crude and leave Iran and Iraq as the “third world countries” that produce raw materials.

Goldwyn commented on Iraq’s position in the oil market. He believes Iraq might increase production by completing the revamp of the Al Faw Peninsula, but that is an $8-10 billion dollar project.

On the Baghdad-Kurdistan Regional Government deal, Goldwyn pointed out two reasons for the unraveling:

  1. Baghdad hasn’t paid Kurdish forces what it owes.
  2. The Kurds are not exporting the agreed-upon average of 550,000 barrels per day.

If Iraq is unable to increase production much and Iran produces an additional 500-800,000 barrels a day, there is no need for OPEC quota renegotiation, Goldwyn said. There is room for rapprochement on economics between Iran and the Gulf states. But first there must be rapprochement on security. If Iran reduces its involvement in Yemen and Iraq, there is potential for détente with the Saudis, who would also have to do their part in reducing the flow of funds to Al Qaeda and ISIS. If both parties deliver, an economic deal is on the horizon. Otherwise, the current situation will continue, with the Saudis better financed and more competitive than any other player in the Gulf.

Tags : , , , , , , , ,

Peace picks July 13-17

1. The Future of the U.S.-India Partnership: Ten Years After the Civil Nuclear Cooperation Initiative | Monday, July 13th | 8:15-5:00 | Carnegie Endowment | REGISTER TO ATTEND | Join the Carnegie Endowment for International Peace and the Confederation of Indian Industry for a conference on the future of the U.S.-India partnership, ten years after the Civil Nuclear Cooperation Initiative. Speakers include: William J. Burns, President, Carnegie Endowment, Chandrajit Banerjee, Director General, Confederation of Indian Industry, Arun K. Singh, Ambassador of India, Nisha Desai Biswal, Assistant Secretary of State for South Asian and Central Asian Affairs, Condoleeza Rice, Senior Fellow, Hoover Institution, R. Nicholas Burns, Professor, Belfer Center for Science and International Affairs, Harvard University, Shyam Saran, Chairman, National Security Advisory Board, Indian Government, Philip D. Zelikow, Professor, University of Virginia, Sumit Mazumder, President, Confederation of the Indian Industry, Rajiv I. Modi, Chairman, Cadila Pharmaceuticals, Deep Kapuria, Chairman, Hi-Tech Gears Ltd., Kaushik Basu, Senior Vice President and Chief Economist, World Bank, Stephen J. Hadley, Chairman, Board of Directors, USIP, M.K. Narayanan, Governor of West Bengal in India, Shivshankar Menon, Fellow, Belfer Center for Science and International Affairs, Harvard University, Thomas E. Donilon, Vice Chair, O’Melveny & Myers LLP, Robert M. Scher, Assistant Secretary of Defense for Strategy, Plans and Capabilities, Eliot A. Cohen, Professor of Strategic Studies , School of Advanced International Studies, Johns Hopkins University, Vikram J. Singh, Vice-President, National Security and International Policy, Center for American Progress and Sukaran Singh, Managing Director and CEO, Tata Advanced Systems. Moderators include: Stephen E. Biegun, Corporate Officer and Vice President of International Governmental Affairs, Ford Motor Company, Swaminathan S. Anklesaria Aiyar, Research Fellow, Cato Institute, William J. Burns, President, Carnegie Endowment and David E. Sanger, Chief Washington Correspondent, New York Times.

2. Why Human Rights Matter in Policy toward North Korea | Monday, July 13th | 12:00-2:00 | National Endowment for Democracy | REGISTER TO ATTEND | The 2014 report of the UN Commission of Inquiry (COI) on human rights in North Korea successfully brought international attention to the severity of the Kim regime’s human rights violations and the plight of the North Korean people, and highlighted the need for the international community to do more to address human rights in the isolated country. At the same time, the impact of the COI report on the attitude of the international community is yet to be seen, while nuclear issues remain the primary focus of U.S. policy toward North Korea. In his presentation, Yoshihiro Makino will describe the little understood political situation inside North Korea and discuss how the repression of basic rights is fundamental to the regime’s grip on power. Mr. Makino will base his analysis on information gathered through extensive interviews with North Korea specialists, diplomats, and direct sources with first-hand knowledge. He will then offer suggestions on how the US and the international community can use this knowledge to more effectively address human rights issues in North Korea. His presentation will be followed by comments by Bruce Klingner. Speakers include: Yoshihiro Makino, Expert on East Asian Security, National Endowment for Democracy, Bruce Klingner, Senior Research Fellow, Northeast Asia, Heritage Foundation and Lynn Lee, Senior Program Officer, National Endowment for Democracy.

3. Oil Price Trends and Global Implications | Tuesday, July 14th | 9:00-10:15 | Carnegie Endowment | REGISTER TO ATTEND The sharp drop in oil prices is one of the most important global economic developments over the past year. While oil’s long term price outlook remains highly uncertain, a substantial part of its decline is expected to persist into the medium term. Aasim M. Husain will discuss implications of these developments for the global economy and financial markets, as well as recommended policy responses for key country groups. He will be joined by Mark Finley and Uri Dadush to discuss market trends as well as their economic and political implications for oil-exporting and oil-importing countries. Carnegie’s Michele Dunne will moderate. A light breakfast will be served. Speakers include: Aasim M. Husain, Deputy Director, Middle East and Central Asia Department, International Monetary Fund, Uri Dadush, Senior Associate, Carnegie Endowment, Mark Finley, General Manager, Global Energy Markets and U.S. Economics at BP. Moderators include: Michele Dunne, Senior Associate, Carnegie’s Middle East Program.

4. The Struggle for Democracy in Myanmar/Burma Tuesday, July 14th | 9:30-11:00 | Brookings Institution | REGISTER TO ATTEND | Myanmar/Burma is in the fourth year of a historic transition out of military rule that began after the junta dissolved itself in March 2011, replaced by an elected parliament and the government led by President Thein Sein. New elections are expected in November for its second government under the 2008 constitution. While expressing commitment to holding a free and fair election, the Thein Sein government has left in place a constitutional obstacle to allowing Aung San Suu Kyi, leader of the opposition National League for Democracy (NLD), from becoming the country’s next president. The NLD seems likely to emerge from the new elections with the most seats in the legislature, but may fall short of its landslide victory in the 1990 election, which was not accepted by the ruling military junta.On July 14, the Center for East Asia Policy Studies at Brookings will host a discussion of Myanmar’s progress over the past four years and the prospects for strengthening democratic rule under the next government. Delphine Schrank, a former reporter with The Washington Post, spent four years among dissidents in Myanmar/Burma and has written a narrative nonfiction account about their epic multi-generational fight for democracy. Her book ‘The Rebel of Rangoon; A Tale of Defiance and Deliverance’ (Nation Books, 2015) will set the stage for the discussion. Speakers include: Ted Piccone, Senior Fellow, Brookings Institution, Lex Rieffel, Non-Resident Senior Fellow, Brookings Institution, Priscilla Clapp, Former Chief-Of-Mission, U.S. Embassy in Burma and Richard Bush, Senior Fellow and Director, Center for East Asia Policy Studies.

5. Hearing: Implications of a Nuclear Agreement with Iran (Part III) Tuesday, July 14th | 10:00-1:00 | Rayburn House Office Building | REGISTER TO ATTEND | In announcing the series of hearings, Chairman Royce said:  “As we anticipate a congressional review of the Administration’s possible nuclear agreement with Iran, we’ll be looking to see how the Administration has done on Congress’ red lines.  Did we get anywhere, anytime inspections?  Full Iranian transparency regarding its past nuclear activities? No large-scale, immediate sanctions relief; but guaranteed, workable sanctions snap-backs? Meaningful restraints on Iran’s nuclear program that last decades?  This hearing will be the first in a series the Committee will hold should the Administration strike what might be one of the most significant agreements in decades.  As I have said, no deal is far better than a bad deal.” Speakers include: Joseph I. Lieberman, Co-Chair of the Foundation, Defense of Democracies, General Michael V. Hayden, Former Director, Central Intelligence Agency and R. Nicholas Burns, Professor of Diplomacy and International Relations, Belfer Center for Science and International Affairs, Harvard University.

6. Can the IAEA Effectively Verify an Agreement Between Iran and the P5+1? Wednesday, July 15th | 9:30-11:00 | The Atlantic Council | REGISTER TO ATTEND | The Atlantic Council Iran Task Force and Search for Common Ground invite you to a discussion on the capabilities of the International Atomic Energy Agency (IAEA) to monitor a nuclear agreement with Iran. A key issue arising during nuclear negotiations with Iran is the international community’s ability to verify Iran’s compliance with its non-proliferation obligations.  Former IAEA Safeguards Official Thomas Shea will discuss a new paper on the evolution of techniques used to verify a country’s compliance with nuclear safeguards and other non-proliferation obligations. Panelists will also discuss other potential methods to detect – and thus deter – Iran from violating the terms of an agreement.  Speakers include: William Green Miller, Senior Advisor, US-Iran Program, Search for Common Ground, Thomas Shea, Former Safeguards Official, International Atomic Energy Agency, Jim Walsh, Research Associate, Security Studies Program, MIT. Moderators include: Barbara Slavin, Senior Fellow, South Asia Center, Atlantic Council.

7.  The Kuwait Crisis 25 Years Later Wednesday, July 15th | 10:00-11:30 | Brookings Institution | REGISTER TO ATTEND | Twenty five years ago this summer, Iraq provoked a crisis with Kuwait and the United Arab Emirates, demanding debt cancellation and higher oil prices. It proved to be a ruse for a far more daring plan. On August 2, 1990, Iraq invaded and annexed Kuwait. Around the world, people feared that Saddam Hussein’s armies would move on to Saudi Arabia. In response, President George H. W. Bush deployed hundreds of thousands of American troops to the Kingdom, recruited an international alliance to support them, and gained United Nations and U.S. congressional support to liberate Kuwait. The Gulf War fundamentally altered American policy toward the Middle East and laid the foundation for the many successes and failures that followed. Today, Americans continue to wrestle with the legacy of the Gulf War and the dilemma that the Middle East has posed to U.S. foreign policy in the years since. On July 15, the Brookings Intelligence Project will host Brookings Senior Fellows Kenneth Pollack and Bruce Riedel to reflect on the Kuwait crisis a quarter century later, looking back on 1990 and forward from 2015. They will discuss this crucial turning point and its significance for the region and the United States. Riedel, director of the Intelligence Project, will moderate the discussion. Following their remarks, Pollack and Riedel will take questions from the audience. Speakers include: Kenneth M. Pollack, Senior Fellow, Center for Middle East Policy, Brookings Institution and Bruce Riedel, Director, Intelligence Project, Brookings Institution.

8. Considerations and constraints for U.S., EU and Turkish Engagement in the South Caucusus Wednesday, July 15th | 10:30-12:00 | Brookings Institution | REGISTER TO ATTEND | Harsh geopolitical realities and historic legacies have pushed the South Caucasus states of Armenia, Azerbaijan, and Georgia back onto the foreign policy agendas of the United States, the European Union (EU), and Turkey, at a time when all three have pulled back from more activist roles in regional affairs. Western disengagement has exacerbated some of the more negative regional trends by signaling disinterest and a lack of commitment toward resolving ongoing conflicts and challenges. These current dynamics create several policy challenges for the region and beyond, including whether the festering crises in the Caucasus will feed into broader conflagrations; whether the United States, EU, and Turkey re-evaluate their involvement in the region in light of Russia’s assertive new foreign policy; and whether given other priorities, can the West muster sufficient political will to re-engage, within limits, in high-level regional diplomacy?

On July 15, the Brookings Center on the United States and Europe (CUSE) will host a panel to discuss a new report, Retracing the Caucasian Circle, co-authored by Fiona Hill, Kemal Kirişci, and Andrew Moffatt. In the paper, the authors provide an overview of the geopolitical and security issues facing Armenia, Azerbaijan, and Georgia and their consequences for relations with the West. The report advocates that in spite of major challenges these three actors should not give up on their engagement of the region and should adopt realistic approaches which can be sustained. Speakers include: Fiona Hill, Director, Center on the United States and Europe, Brookings Institution, Eric Rubin, Deputy Assistant Secretary, European and Eurasian Affairs, U.S. State Department, Unal Cevikoz, President, Ankara Policy Center and Klaus Botzet, Head of the Political, Security and Development Section, Delegation of the European Union to the U.S. Moderators include: Kemal Kirisci, Director, Turkey Project, Brookings Institution.

9. Religious Freedom: Rising Threats to a Fundamental Human Right| Thursday, July 16th | 9:30-4:15 | Copley Formal Lounge | REGISTER TO ATTEND | According to the Pew Research Center, governmental and social restrictions on religion continue to rise. Today 77 percent of the world’s population lives in religiously repressive countries. This conference will examine the severe and growing challenges facing minority religions around the world—including in the Middle East, Western Europe, Myanmar, and Russia—and will give special attention to how religious persecution affects women and girls. A central question will be whether and how US international religious freedom policy can improve conditions for religious minorities abroad and the societies in which they live. Speakers include: Ken Starr, Baylor University, 

Congressman Keith Ellison,  House of Representatives (D-Minnesota), Katrina Lantos Swett, United States Commission on International Religious Freedom, Engy Abdelkader, Rutgers University and American Bar Association Section of Individual Rights and Responsibilities, Rabbi Andrew Baker, AJC

Thomas Farr, Religious Freedom Project, Georgetown University

, Brian Grim, Religious Freedom and Business Foundation

, Elizabeth Cassidy, United States Commission on International Religious Freedom, Aisha Rahman, KARAMAH, Jacqueline Rivers, Harvard Kennedy School, Frank Wolf, Baylor University and retired House of Representatives (R-Virginia)

, Mark Schickman, American Bar Association Section of Individual Rights and Responsibilities, Timothy Samuel Shah, Religious Freedom Project
. Moderators include: 

Richard Foltin, American Jewish Committee (AJC) and American Bar Association Section of Individual Rights and Responsibilities

 and Claudia Winkler, Religious Freedom Project, Georgetown University.

10. Civil Resistance and Peacebuilding: How They ConnectThursday, July 16th | 10:00-11:00 | United States Institute of Peace | REGISTER TO ATTEND | The rise of nonviolent, people power movements around the world has become a defining feature of the 21st century. While some have deteriorated into violent conflict, organized citizen campaigns using nonviolent methods are challenging formidable opponents: unaccountable governance, systemic corruption, institutionalized discrimination, environmental degradation, dictatorship, foreign military occupation, and violent extremism. Their “weapons” are not guns or bombs, but rather protests, boycotts, sit-ins, civil disobedience, building of alternative institutions, and hundreds of other nonviolent means. Combined with the use of traditional political and legal approaches, these movements continue to shape political, social, and economic change across the globe.

This panel will explore how nonviolent civil resistance and peacebuilding reinforce each other. How does civic mobilization fit into the larger peacebuilding agenda? How have nonviolent campaigns and movements contributed to long-term peace and stability? What are the theoretical and practical linkages that might prevent violent conflict and advance a “just peace”? Speakers include: Nancy Lindborg, President, USIP, Kerri Kennedey, Associate General Secretary for International Porgrams, American Friends Service Committee, Manal Omar, Acting Vice President, Center for Middle East and Africa, USIP. Moderators include: Maria Stephan, Senior Policy Fellow, USIP.

Tags : , , , , , , , , , ,

Containment in the Middle East

Tuesday the Atlantic Council hosted an event on its report “The New Containment: Changing America’s Approach to Middle East Security” featuring Bilal Saab, Fellow for Middle East Security at the Atlantic Council, Barry Posen, Director of the Security Studies Program at Massachusetts Institute of Technology and Richard Haass, President of the Council on Foreign Relations. Barbara Starr, Pentagon Correspondent for CNN, moderated the event.

Containment is the best strategy

Saab explained that the report is based on four preconditions:

  1. There will be no lasting security or stability in the Middle East as long as religious hubris, economic mismanagement and abrupt political changes dominate the region.
  2. The US cannot and should not be an agent pushing for change.
  3. Reforms cannot happen without addressing security challenges first.
  4. The US cannot address security challenges alone—it needs partners.

The Iraq invasion in 2003 was proof that the US does not have sufficient economic resources or know-how for nation-building and US presence de-legitimizes this process.

Given these preconditions, the best option is a US containment strategy with six pillars:

  1. Prevent Iran from acquiring nuclear weapons.
  2. Deter large-scale military conflict. If deterrence fails, then consider military intervention.
  3. Limit escalation between Israel and Hamas and between Israel and Hezbollah.
  4. Reduce the scope and severity of civil wars.
  5. Degrade violent extremist groups and leave the “hard work” to regional stakeholders, so they can develop their own political narrative and ideology.
  6. Limit Iran’s destabilizing influence.

Saab added that though US participation will be limited to containing conflicts, it must help the Middle East develop a new regional security architecture that is conducive to US interests.

Iran nuclear deal

On the Iranian nuclear deal, the three panelists had differing opinions. Haass claimed if there is a deal, it would restrict ‘nuclear Iran,’ not ‘imperial Iran.’ He said lifting sanctions would grant Iran more resources, which would fuel its existing activities and exacerbate the challenges it poses. Additionally, managing the nuclear deal would become a consuming challenge for future American presidents as it would become a permanent part of American statecraft. Elements of the Iranian nuclear program would remain intact, which would allow nuclear activity in a region by a government whose stability is uncertain.

Posen argued that no deal would prolong the arduous task of sustaining the sanctions regime, which requires a lot of side payments. He also warned that if the deal crashes, constituencies in the US and abroad would call for a military strike. The consequence of maintaining the current status quo is more uncertainty about Iranian capabilities than if the deal happened. Furthermore, Posen urged that the US consider its interests first. American partners may frown on good Iran-US relations, but they would benefit the US.

Saab said that there would be uncertainty regardless of whether there is or isn’t a deal. America’s partners do not feel sure about their relationships with Washington. The Saudis have begun talking about launching their own nuclear program.

Islamic State of Iraq and Syria (ISIS)

There was more consensus on the security threat ISIS poses. Saab said ISIS does not pose a direct and imminent threat to the homeland. However, rooting ISIS out will be challenging to say the least. ISIS is a byproduct of the ills of the Arab state system, including political decay, economic mismanagement and corrupt governments. It is not just a consequence of Al Qaeda. Degrading ISIS is only the first step—and the US isn’t even good at that—but eliminating ISIS could take years.

Posen talked about ISIS’s expansionist nature—it “grabs” wherever it perceives weakness. ISIS has both ideological affinity and subversive capability, which make it costly to annihilate the group. Nevertheless, the US can spy on it and contain it by supporting coherent groups willing to fight against it.

Saudi Arabia, Posen thought, is paying alarmingly little attention to ISIS, even though the Kingdom is likely high on ISIS’s subversion list. He was surprised by the Saudis’ immense effort in Yemen compared to its actions against ISIS. Haass agreed with this assessment, adding that Saudi Arabia is too focused on Iran and manifestations of Iranian power, which is a misallocation of resources.

Saab claimed that Saudi Arabia does indeed care. Riyadh launched one of the world’s biggest counterterrorism operations against Bin Laden and has undergone many internal changes to be better equipped to deal with the ISIS threat.

Regional security

Haass was cynical about change in the Middle East’s security system, claiming it is premature. He explained the creation of a system requires balance of power and a shared concept of legitimacy—neither of which exists in the Middle East.

Posen doesn’t think the Iranian regional challenge amounts to much. Most of the places where Iran exercises influence are places deeply divided by problems not of Iranian creation. Iran did not create the Yemen civil war, even if it might gain some benefits from it.

 

Tags : , , , , ,
Tweet