Connect with us

Middle East

Turkish financial crisis adds to region’s chaos

Published

on

More than coincidence accounts for the visit to Iran by Turkish Prime Minister Recep Tayyip Erdogan on January 28, the same day that his economic policy collapsed in a most humiliating way.

As the Turkish lira collapsed to levels that threatened to bankrupt many Turkish companies, the country’s central bank raised interest rates, ignoring Erdogan’s longstanding pledge to keep interest rates low and his almost-daily denunciation of an “interest rate lobby” that sought to bring down the Turkish economy. Erdogan’s prestige was founded on Turkey’s supposed economic miracle.

Hailed as”the next superpower” by John Feffer of the Institute for Policy Studies, and as “Europe’s BRIC” by The Economist, Turkey has become the Sick Man of the Middle East. It now appears as a stock character in the comic-opera of Third World economics: a corrupt dictatorship that bought popularity through debt accumulation and cronyism, and now is suffering the same kind of economic hangover that hit Latin America during the 1980s.

That is not how Erdogan sees the matter, to be sure: for months he has denounced the “interest rate lobby”. Writes the Hurriyet Daily News columnist Emre Deliveli, “He did not specify who the members of this lobby were, so I had to resort to pro-government newspapers. According to articles in a daily owned by the conglomerate where the PM’s son-in-law is CEO, the lobby is a coalition of Jewish financiers associated with both Opus Dei and Illuminati. It seems the two sworn enemies have put aside their differences to ruin Turkey.”

US President Barack Obama told an interviewer in 2012 that Erdogan was one of his five closest overseas friends, on par with the leaders of Britain, Germany, South Korea and India. Full disclosure: as the Jewish banker who has been most aggressive in forecasting Turkey’s crisis during the past two years, I have had no contact with Opus Dei on this matter, much less the mythical Illuminati.

Erdogan was always a loose cannon. Now he has become unmoored. Paranoia is endemic in Turkish politics because so much of it is founded on conspiracy. The expression “paranoid Turk” is a pleonasm. Islamist followers of the self-styled prophet Fetullah Gulen infiltrated the security services and helped Erdogan jail some of the country’s top military commanders on dubious allegations of a coup plot. Last August a Turkish court sentenced some 275 alleged members of the “Ergenekon” coup plot, including dozens of military officers, journalists, and secular leaders of civil society.

Now Gulen has broken with Erdogan and his security apparatus has uncovered massive documentation of corruption in the Erdogan administration. Erdogan is firing police and security officials as fast as they arrest his cronies.

There is a world difference, though, between a prosperous paranoid and an impecunious one. Turkey cannot fund its enormous current borrowing needs without offering interest rates so high that they will pop the construction-and-consumer bubble that masqueraded for a Turkish economic miracle during the past few years.

The conspiracy of international bankers, Opus Dei and Illuminati that rages in Erdogan’s Anatolian imagination has triumphed, and the aggrieved prime minister will not go quietly. As Erdogan abhors old allies who in his imagined betrayed him and seeks new ones, the situation will get worse.

One of the worst ideas that ever occurred to Western planners was the hope that Turkey would provide a pillar of stability in an otherwise chaotic region, a prosperous Muslim democracy that would set an example to anti-authoritarian movements. The opposite has occurred: Erdogan’s Turkey is not a source of stability but a spoiler allied to the most destructive and anti-Western forces in the region.

It seems unlikely that the central bank’s belated rate increase will forestall further devaluation of the lira. With inflation at 7.4% and rising, the central bank’s 10% reference rate offers only a modest premium above the inflation rate. About two-fifths of Turkey’s corporate debt is denominated in foreign currency, and the lira’s decline translates into higher debt service costs. Turkey is likely to get the worst of both worlds, namely higher local interest rate and a weaker currency.

Now Erdogan’s Cave of Wonders has sunk back into the sand. Few analysts asked how Turkey managed to sustain a current account deficit that ranged between 8% and 10% of gross domestic product during the past three years, as bad as the Greek deficit during the years before its financial collapse in 2011.

The likely answer is that Turkey drew on vast amounts of credit from Saudi and other Gulf state banks, with strategic as well as financial motives. Data from the Bank for International Settlements show that Turkey financed a large part of its enormous deficit through the interbank market, that is, through short-term loans to Turkish banks from other banks.

Western banks report no such exposure to Turkey; the Gulf banks do not report regional exposure, and anecdotal evidence suggests that Sunni solidarity had something to do with the Gulf states’ willingness to take on Turkish exposure.

Relations between Turkey and the Gulf States are now in shambles. Saudi Arabia abhors the Muslim Brotherhood, which wants to replace the old Arab monarchies with Islamist regimes founded on modern totalitarian parties, while Erdogan embraced the Brotherhood. The Saudis are the main source of financial support for Egypt’s military government, while Ankara has denounced the military’s suppression of the Muslim Brotherhood.

Whether the Gulf States simply ran out of patience or resources to support Erdogan’s credit binge, or whether their displeasure at Turkey’s misbehavior persuaded them to withdraw support, is hard to discern. Both factors probably were at work. In either case, Erdogan’s rancor at Saudi Arabia has brought him closer to Teheran.

Turkey should have restricted credit growth and raised interest rates to reduce its current account deficit while it still had time. Erdogan, though, did the opposite: Turkish banks increased their rate of lending while reducing interest rates to businesses and consumers.

Given the country’s enormous current account deficit, this constituted irresponsibility in the extreme. Erdogan evidently thought that his mandate depended on cheap and abundant credit. The credit bubble fed construction, where employment nearly doubled between 2009 and 2013. Construction jobs increased through 2013, after manufacturing and retail employment already had begun to shrink.

I predicted the end of Erdogan’s supposed economic miracle in the Winter 2012 edition of Middle East Quarterly, comparing Erdogan’s boomlet to the Latin American blowouts of the 1990s:

In some respects, Erdogan’s bubble recalls the experiences of Argentina in 2000 and Mexico in 1994 where surging external debt produced short-lived bubbles of prosperity, followed by currency devaluations and deep slumps. Both Latin American governments bought popularity by providing cheap consumer credit as did Erdogan in the months leading up to the June 2011 national election. Argentina defaulted on its $132 billion public debt, and its economy contracted by 10 percent in real terms in 2002. Mexico ran a current account deficit equal to 8 percent of GDP in 1993, framing the 1994 peso devaluation and a subsequent 10 percent decline in consumption.

In the meantime, Turkey has entered a perfect storm. As its currency plunges, import costs soar, which means that a current account of 8% of GDP will shortly turn into 10% to 12% of GDP – unless the country stops importing, which means a drastic fall in economic activity. As its currency falls, its cost of borrowing jumps, which means that the cost of servicing existing debt will compound its current financing requirements. The only cure for Erdogan’s debt addiction, to borrow a phrase, is cold turkey.

The vicious cycle will end when valuations are sufficiently low and the government is sufficiently cooperative to sell assets at low prices to foreign investors, and when Turkish workers accept lower wages to produce products for export.

One might envision a viable economic future for Turkey as the terminus on the “New Silk Road” that China proposes to build across Central Asia, with high-speed rail stretching from Beijing to Istanbul. Chinese manufacturers might ship container loads of components to Turkey for assembly and transshipment to the European and Middle Eastern markets, and European as well as Asian firms might build better factors in Turkey for export to China. Contrary to conventional wisdom, Turkey’s path to Europe lies not through Brussels but through Beijing.

That is Turkey’s future, but as the old joke goes, it can’t get there from here.

Turkey has a small but highly competent professional class trained at a handful of good universities, but the Erdogan regime – the so-called “Anatolian tigers” – have disenfranchised them in favor of Third World corruption and cronyism. The secular parties that bear the faded inheritance of Kemal Ataturk lack credibility. They are tainted by years of dirty war against the Kurds, of collusion with military repression, and their own proclivity towards a paranoid form of nationalism.

Erdogan’s AKP is a patronage organization that has run out of cash and credit, and its fate is unclear. The highly influential Gulen organization has a big voice, including the Zaman media chain, but no political network on the ground.

No replacement for Erdogan stands in the wings, and the embattled prime minister will flail in all directions until the local elections on March 30.

The last thing to expect from Erdogan is a coherent policy response. On the contrary, the former Anatolian villager thrives on contradiction, the better to keep his adversaries guessing.

Turkish policy has flailed in every direction during recent weeks. Erdogan’s Iran visit reportedly focused on Syria, where Turkey has been engaged in a proxy war with Iran’s ally Basher al-Assad. Ankara’s support for Syrian rebels dominated by al-Qaeda jihadists appears to have increased; in early January Turkish police stopped a Turkish truck headed for Syria, and Turkish intelligence agents seized it from the police. Allegedly the truck contained weapons sent by the IHH Foundation, the same group that sent the Mavi Marmara to Gaza in 2010. The Turkish opposition claims that the regime is backing al-Qaeda in Syria. One can only imagine what Erdogan discussed with his Iranian hosts.

Some 4,500 Turks reportedly are fighting alongside 14,000 Chechnyans and a total of 75,000 foreign fighters on the al-Qaeda side in Syria. Ankara’s generosity to the Syrian jihadists is a threat to Russia, which has to contend with terrorists from the Caucasus, as well as Azerbaijan, where terrorists are infiltrating through Turkish territory from Syria. Russia’s generally cordial relations with Turkey were premised on Turkish help in suppressing Muslim terrorism in the Caucasus. There is a substantial Chechnyan Diaspora in Turkey, aided by Turkish Islamists, and Moscow has remonstrated with Turkey on occasion about its tolerance or even encouragement of Caucasian terrorists.

I doubt that Erdogan has any grand plan in the back of his mind. On the contrary: having attempted to manipulate everyone in the region, he has no friends left. But he is in a tight spot, and in full paranoid fury about perceived plots against him. The likelihood is that he will lean increasingly on his own hard core, that is, the most extreme elements in his own movement.

Erdogan has been in what might be called a pre-apocalyptic mood for some time. The long term has looked grim for some time, on demographic grounds: a generation from now, half of all military-age men in Turkey will hail from homes where Kurdish is the first language. “If we continue the existing [fertility] trend, 2038 will mark disaster for us,” he warned in a May 10, 2010, speech reported by the Daily Zaman.

But disaster already has arrived. In some ways Turkey’s decline is more dangerous than the Syrian civil war, or the low-intensity civil conflict in Iraq or Egypt. Turkey held the North Atlantic Treaty Organization’s eastern flank for more than six decades, and all parties in the region – including Russia – counted on Turkey to help maintain regional stability. Turkey no longer contributes to crisis management. It is another crisis to be managed.

Middle East Forum

Continue Reading
Comments

Middle East

MbS: Riding roughshod or playing a risky game of bluff poker?

Dr. James M. Dorsey

Published

on

A stalemate in efforts to determine what happened to Saudi journalist Jamal Khashoggi is threatening to escalate into a crisis that could usher in a new era in relations between the United States and some of its closest Arab allies as well as in the region’s energy politics.

In response to US President Donald J. Trump’s threat of “severe punishment” if Saudi Arabia is proven to have been responsible for Mr. Khashoggi’s disappearance while visiting the kingdom’s consulate in Istanbul, Saudi Arabia is threatening to potentially upset the region’s energy and security architecture.

A tweet by Saudi Arabia’s Washington embassy thanking the United States for not jumping to conclusions did little to offset the words of an unnamed Saudi official quoted by the state-run news agency stressing  the kingdom’s “total rejection of any threats and attempts to undermine it, whether through economic sanctions, political pressure or repeating false accusations.”

The official was referring to the kingdom’s insistence that it was not responsible for Mr. Khashoggi’s disappearance and assertion that it is confronting a conspiracy by Qatar and/or Turkey and the Muslim Brotherhood.

“The kingdom also affirms that if it is (targeted by) any action, it will respond with greater action,” the official said noting that Saudi Arabia “plays an effective and vital role in the world economy.”

Turki Aldhakhil, a close associate of Saudi Crown Prince Mohammed bin Salman and general manager of the kingdom’s state-controlled Al Arabiya news network, claimed in an online article that Saudi leaders were discussing 30 ways of responding to possible US sanctions.

They allegedly included allowing oil prices to rise up to US$ 200 per barrel, which according to Mr. Aldhakhil, would lead to “the death” of the US economy, pricing Saudi oil in Chinese yuan instead of dollars, an end to intelligence sharing, and a military alliance with Russia that would involve a Russian military base in the kingdom.

It remains unclear whether Mr. Aldhakhil was reflecting serious discussions among secretive Saudi leaders or whether his article was intended either as a scare tactic or a trial balloon. Mr. Aldakhil’s claim that a Saudi response to Western sanctions could entail a reconciliation with the kingdom’s arch enemy, Iran, would make his assertion seem more like geopolitical and economic bluff.

Meanwhile, in what appeared to be a coordinated response aimed at demonstrating that Saudi Arabia was not isolated, Oman, Bahrain, Jordan, Palestine, Lebanon, the United Arab Emirates and Egypt rushed to express solidarity with the kingdom. Like Turkey, Bahrain, Egypt and the UAE have a track record of suppressing independent journalism and freedom of the press.

Ironically, Turkey may be the kingdom’s best friend in the Khashoggi crisis if its claims to have incontrovertible proof of what happened in the consulate prove to be true. Turkey has so far refrained from making that evidence public, giving Saudi Arabia the opportunity to come up with a credible explanation.

Turkish president Recep Tayyip “Erdogan wants to give Saudis an exit out of #Khashoggi case, hoping the Saudi king/crown prince will blame ‘rogue elements’ for the alleged murder, then throwing someone important under the bus. This would let Erdogan walk away looking good & prevent rupture in Turkey-Saudi ties,” tweeted Turkey scholar Soner Cagaptay.

The Saudi news agency report and Mr. Aldakhil’s article suggest that Prince Mohammed believes that Saudi Arabia either retains the clout to impose its will on much of the international community or believes that it rather than its Western critics would emerge on top from any bruising confrontation.

Prince Mohammed no doubt is reinforced in his belief by Mr. Trump’s reluctance to include an arms embargo in his concept of severe punishment. He may also feel that Western support for the Saudi-UAE-led war in Yemen and reluctance to credibly take the kingdom to task for its conduct of the war was an indication that he was free to do as he pleased.

Prince Mohammed may have been further strengthened in his belief by the initial course of events 28 years ago, the last time that the fate of a journalist was at the centre of a crisis between a Western power and an Arab country.

At the time, British prime minister Margaret Thatcher, similar to Mr. Trump’s inclination, refused to impose economic sanctions after Iraqi president Saddam Hussein ordered the arrest, torture and execution of Farhad Barzoft, a young London-based Iranian journalist who reported for The Observer.

Since declassified British government documents disclosed that Mrs. Thatcher’s government did not want to jeopardize commercial relations despite its view of the Iraqi government as a “ruthless and disagreeable regime.”

The comparison between the Khashoggi crisis and the case of Mr. Barzoft goes beyond Western governments’ reluctance to jeopardize commercial relationships.

Mr Barzoft was executed months before Mr. Hussein’s military invaded Kuwait prompting US-led military action that forced his troops to withdraw from the Gulf state, crippling economic sanctions, and ultimately the 2003 Gulf War that, no matter how ill-advised, led to the Iraqi leader’s downfall and ultimate execution.

Prince Mohammed’s ill-fated military intervention in Yemen, of which Mr. Khashoggi was critical in one of his last Washington Post columns, has tarnished the kingdom’s international prestige and sparked calls in the US Congress and European parliaments for an embargo on arms sales that have gained momentum with the disappearance of the Saudi journalist.

To be sure Saudi Arabia enjoys greater leverage than Iraq did in 1990. By the same token, 2018 is not 1973, the first and only time the kingdom ever wielded oil as a weapon against the United States. At the time, the US was dependent on Middle Eastern oil, today it is one of, if not the world’s largest producer.

More fundamentally, Prince Mohammed appears to show some of the traits Mr. Hussein put on display, including a seeming lack of understanding of the limits of power and best ways to wield it, a tendency towards impetuousness, a willingness to take risks and gamble without having a credible exit strategy, a refusal to tolerate any form of criticism, and a streak of ruthlessness.

“We’re discovering what this ‘new king’ is all about, and it’s getting worrisome. The dark side is getting darker,” said David Ottaway, a journalist and scholar who has covered Saudi Arabia for decades.

Mr. Hussein was public and transparent about Mr. Barzoft’s fate even if his assertion that the journalist was a spy lacked credibility and the journalist’s confession and trial were a mockery of justice.

Prince Mohammed flatly denies any involvement in the disappearance of Mr. Khashoggi and appears to believe that he can bully himself out of the crisis in the absence of any evidence that the journalist left the kingdom’s Istanbul consulate of his own volition.

Mr. Hussein miscalculated with his invasion of Kuwait shortly after getting away with the killing of Mr. Barzoft.

Prince Mohammed too may well have miscalculated if the kingdom is proven to be responsible for Mr. Khashoggi’s disappearance.

Mr. Hussein’s reputation and international goodwill was irreparably damaged by his execution of Mr. Barzoft and invasion of Kuwait.

Mr. Khashoggi’s disappearance has dealt a body blow to Saudi Arabia’s prestige irrespective of whether the journalist emerges from the current crisis alive or dead.

King Salman and the kingdom appear for now to be rallying the wagons around the crown prince.

At the same time, the king has stepped into the fray publicly for the first time by phoning Turkish president Erdogan to reaffirm Saudi cooperation with an investigation into Mr. Khashoggi’s fate.

It remains unclear whether that phone call will pave the way for Turkish investigators to enter the Istanbul consulate as well as the Saudi consul general’s home and whether they will be allowed to carry out forensics.

The longer the investigation into Mr. Khashoggi’s fate stalls, the more Saudi Arabia will come under pressure to put forth a credible explanation and the harder Western leaders will be pressed by public opinion and lawmakers to take credible action if Saudi Arabia is proven to be responsible.

A Saudi decision to act on its threats to rejigger its security arrangements and energy policy, even if overstated by Mr. Aldhakhil, in response to steps by Western nations to penalize the kingdom,  could prove to have not only far-reaching international consequences but, in the final analysis, also equally momentous domestic ones.

“Looks like #Saudi royal family is coming together to protect the family business. Eventually there will be internal reckoning with what transpired. Not now. Now is the time to save the family reign,” tweeted Middle East scholar Randa Slim.

Said former US State Department and White House official Elliott Abrams: “Jamal Khashoggi lost control of his fate when he entered the Saudi consulate in Istanbul. Mohammed bin Salman must act quickly to regain control of his own.”

Continue Reading

Middle East

Syrian Kurds between Washington, Turkey and Damascus

Published

on

The recent turmoil over Idlib has pushed the developments in Syrian Kurdistan out of political and mass media spotlight. However, it’s Idlib that will most likely host the final act of the drama, which has become known as the “civil war in Syria”.

The self-proclaimed Democratic Federation of Northern Syria (DFNS), or Rojava, was formed in 2016, although de facto it has existed since 2012. Added later was the hydrocarbon-rich left bank of the Euphrates, which had been cleared of militants of ISIL (an organization banned in the Russian Federation), and now the jurisdiction of the unrecognized DFNS extends to almost a third of the country’s territory.

From the very start the main threat to the existence of this predominantly Kurdish quasi-state came for obvious reasons from Turkey, where Turkish Kurds were set on securing autonomy. In addition, the most influential political force in Rojava, the Democratic Union Party, is affiliated with the Kurdistan Workers’ Party, and the latter has officially been declared a terrorist organization and unofficially – a number one enemy – in Turkey.

In January-March 2018, the Turkish army, backed by the Arab and Turkomanen allies, occupied part of the territory of Rojava (canton Afrin). And it looks like Ankara plans to settle on these territories: recently, Turkish President Recep Tayyip Erdogan reiterated that Afrin will be transferred to its residents “when the time comes” and that “this time will be set by us”. In the meantime, according to local media reports, the demographic situation in the canton is changing rapidly. Taking advantage of the fact that many Kurds left their homes at the approach of the Turkish army, the local (in fact, Turkish) administration is bringing in Arabs here, who, in many cases, are not Syrian Arabs.

Kurdish politicians, fully aware of the fact that amid Turkey, Iran and Syria maintaining statehood without outside assistance is hardly possible, opted for the patronage of Washington. And, as it seems, they lost.

In Syria, the Americans decided to replay the “Kosovo scenario”, by turning part of a sovereign state into a political structure, which is allied to them. Washington, which only recently excluded the People’s Protection Units (the armed wing of the Democratic Forces), from the list of terrorist organizations, argues, like Ankara, that its military personnel will remain in the region “for an indefinite period” to protect Kurdish territories from “aggression” on the part of Damascus. And from Ankara’s ambitions as well. But this is read between the lines.

All this enabled Turkey to accuse the United States of supporting terrorism and relations between the two countries quickly deteriorated into a crisis. As mutual accusations, occasionally supported by political and economic demarches, persist, the parties, however, are beginning to look for common ground. Talks on June 4, 2018 in Washington between Turkish Foreign Minister Mevlut Cavusoglu and US Secretary of State Michael Pompeo resulted in a “road map” for the withdrawal of Kurdish forces from predominantly Arab Manbij, which Kurds regained control of from ISIL (an organization banned in Russia) two years ago. The next day, the Turkish minister announced that the Kurdish troops “… would retreat east of the Euphrates. However, this does not mean that we will agree that they stay there. ” On September 24, 2018, upon arriving at the UN General Assembly, Erdogan confirmed: Turkey will expand its sphere of influence in Syria, by including areas that are under control of the Kurdish armed units.

If Turkey does not change its rhetoric, then the assurances of the American authorities that the US troops will remain in Syria are intermingled with statements about the need for the withdrawal of its forces from this country. In any case, it is unlikely that the United States will choose to leave the region “to its own devices”. We can recall how Washington trumpeted the withdrawal of its troops from Afghanistan! But things haven’t budged an inch since then. The Afghanistan example demonstrates that the Americans will not move out of Syria that easily – they will not pull out in full, at least not of their own free will. US instructors and pilots will remain here “for an indefinite period.” But who will they care of and support? Here are the options:

Firstly, it could be a hypothetical “Arab NATO” with Saudi Arabia in the lead. But there are serious doubts as to the effectiveness of such a structure – even if we forget about the level of combat readiness of these kinds of coalitions (in Yemen, for example), Arab countries could unite only on an anti-Israeli platform. And that, as history shows, is unlikely to yield success. In addition to this, it is still unclear how Kurds, the majority of whom are not religious, will react to Wahhabi commanders.

Secondly, the United States could choose to strengthen the Arab sector of the “Syrian Democratic Forces” (Rojava militia) at the expense of the Kurds. In mid-September, a number of media outlets, citing sources in the Syrian opposition, reported that Saudi emissaries had already suggested this option while meeting with leaders of the Arab tribes living east of the Euphrates. However, this development is also fraught with the Kurdish-Arab confrontation.

Thirdly, Washington persists in its attempts to improve relations with Turkey,  distancing it from Russia and Iran, and instruct it to “maintain order” in the region: the Americans did not intervene in the Operation Olive Branch and made concessions on Manbij. Even though this might seem strange amid the hostile American-Turkish rhetoric, military and political contacts between Washington and Ankara have been on the rise in recent months. Moreover, President Erdogan has already stated that he believes in an early improvement of relations with the United States despite the “inconsistency” and “economic aggression” of Washington.

Meanwhile, we need to remember that the US control over Kurds is far from unlimited. The “people’s protection units” are ideologically close to the Kurdistan Workers’ Party (or could even be seen as its “branch” in Syria), and the PKK itself, grown on the Marxist ideas, would normally support the Soviet Union and “by inertia” – Russia. For this reason, the Americans have to threaten the Kurdish allies with a cessation of military and financial support. Reports say the US and Turkish troops are already operating in the Manbij area, having dislodged the Kurdish YPG militia from the area.

These threats, along with the self-withdrawal of the United States during the capture of Afrin by Turkish troops, have made Kurds doubt the reliability of their patron. The result is a move towards rapprochement with Damascus. In late July, the Kurdish leadership announced an agreement with the Syrian authorities on the creation of a “road map” for the formation of a decentralized Syria.

The Americans are not sitting idle either, though it looks like they have no concrete plan of action. Such a conclusion comes from Donald Trump’s somewhat incoherent answers to questions from a correspondent of the Kurdish media group Rudaw (09/27/2018):

Question: What are you planning to do for (Syrian – AI) Kurds?

Answer: We will offer them a lot of help. As you know, we are good friends to them, we fought shoulder to shoulder with ISIL (an organization banned in the Russian Federation), we recently defeated ISIL (an organization banned in the Russian Federation). We accomplished this with the support of the Kurds. They are great warriors. You know, some nations are great warriors, and some are not. The Kurds are great warriors, they are a wonderful people. We are currently negotiating this.

Question: So what will you do to support them?

Answer: As I said, we will negotiate this, we have begun negotiations. The Kurds have helped us a lot to crush ISIS (an organization banned in the Russian Federation).

Most likely, the hot phase of the protracted inter-Syrian conflict is nearing its end, and the preferences of the Kurds will determine the outcome of future elections, a referendum, or another form of will expression of the Syrian people, when the political situation allows it. Moscow has always called for involving Kurds in the negotiation process and on ensuring their full participation in the life of post-war Syria. “Russia insists that Kurds should participate in the process to determine the post-conflict future of Syria on a parity basis with other ethnic and religious groups of this country,” Foreign Minister Sergey Lavrov said in an interview with the Italian magazine Panorama.

Until recently, Damascus did not particularly pedal negotiations with Rojava, but being aware that the capture of Afrin by Turkish troops was not in its interests, it has adjusted its approach to the self-proclaimed territorial entity. It looks like Syrian leaders have opted for softening their stance, which was previously set on the revival of the country on the basis of unitarism. Otherwise, an agreement with the Kurds will be nowhere in sight.

First published in our partner International Affairs

Continue Reading

Middle East

Jamal Khashoggi rejiggers the Middle East at potentially horrible cost

Dr. James M. Dorsey

Published

on

The fate of missing Saudi journalist Jamal Khashoggi, assuming that his disappearance was the work of Saudi security and military officials, threatens to upend the fundaments of fault lines in the Middle East.

At stake is not only the fate of a widely respected journalist and the future of Turkish-Saudi relations.

Mr. Khashoggi’s fate, whether he was kidnapped by Saudi agents during a visit to the kingdom’s consulate in Istanbul to obtain proof of his divorce or murdered on its premises, threatens to severely disrupt the US-Saudi alliance that underwrites much of the Middle East’s fault lines.

A US investigation into Mr. Khashoggi’s fate mandated by members of the US Congress and an expected meeting between President Donald J. Trump, and the journalist’s Turkish fiancée, Hatice Cengiz, could result in a US and European embargo on arms sales to Saudi Arabia and impact the kingdom’s brutal proxy war with Iran in Yemen.

It also would project Saudi Arabia as a rogue state and call into question US and Saudi allegations that Iran is the Middle East’s main state supporter of terrorism.

The allegations formed a key reason for the United States’ withdrawal with Saudi, United Arab Emirates and Israeli backing from the 2015 international agreement that curbed Iran’s nuclear program and the re-imposition of crippling economic sanctions.

They also would undermine Saudi and UAE justification of their 15-month old economic and diplomatic boycott of Qatar that the two Gulf states, alongside Egypt and Bahrain, accuse of supporting terrorism.

Condemnation and sanctioning of Saudi Arabia by the international community would complicate Chinese and Russian efforts to walk a fine line in their attempts to ensure that they are not sucked into the Saudi-Iranian rivalry.

Russia and China would be at a crossroads if Saudi Arabia were proven to be responsible for Mr. Khashoggi’s disappearance and the issue of sanctions would be brought to the United Nations Security Council.

Both Russia and China have so far been able to maintain close ties to Saudi Arabia despite their efforts to defeat US sanctions against Iran and Russia’s alliance with the Islamic republic in their support for Syrian president Bashar al-Assad.

A significantly weakened Saudi Arabia would furthermore undermine Arab cover provided by the kingdom for Mr. Trump’s efforts to impose a settlement of the Israeli-Palestinian conflict that would favour Israel at the expense of the Palestinians.

Finally, a conclusive determination that Saudi Arabia was responsible for Mr. Khashoggi’s fate would likely spark renewed debate about the wisdom of the international community’s support for Arab autocracy that has proven to be unashamedly brutal in its violation of human rights and disregard for international law and conventions.

Meanwhile, Saudi Crown Prince Mohammed bin Salman has suffered significant reputational damage irrespective of Mr. Khashoggi’s fate, raising the question of his viability if Saudi Arabia were condemned internationally and stability in the kingdom, a key tenant of US, Chinese and Russian Middle East policy, were to be at risk.

The reputational damage suffered by Prince Mohammed embarrasses UAE Crown Prince Mohammed bin Zayed, who together with his aides and representatives in world capitals, worked hard to project his Saudi counterpart as the kingdom’s future.

Saudi Arabia has so far done itself few favours by flatly rejecting any responsibility for Mr. Khashoggi’s disappearance with no evidence that the journalist left the consulate at his own volition; asserting that claims that it was involved were fabrications by Turkey, Qatar and the Muslim Brotherhood; seeking to defame Mr. Khashoggi’s fiancé and supporters; and refusing to fully cooperate with Turkish investigators.

Saudi reluctance to cooperate as well as the US investigation and Ms. Cengiz’s expected meeting with Mr. Trump complicate apparent Turkish efforts to find a resolution of the escalating crisis that would allow Saudi Arabia to save face and salvage Turkey’s economic relationship with the kingdom.

Turkey, despite deep policy differences with Saudi Arabia over Qatar, Iran, and the Muslim Brotherhood, has so far refrained from statements that go beyond demanding that Saudi Arabia prove its assertion that Mr. Khashoggi left the Istanbul consulate at his own volition and fully cooperate with the Turkish investigation.

Reports by anonymous Turkish officials detailing gruesome details of Mr. Khashoggi’s alleged murder by Saudi agents appear designed to pressure Saudi Arabia to comply with the Turkish demands and efforts to manage the crisis.

Widely acclaimed, Mr. Khashoggi’s fate, irrespective of whether he as yet emerges alive or is proven to have been brutally murdered, is reshaping the political map of the Middle East. The possibility, if not likelihood is that he paid a horrendous price for sparking the earthquake that is already rumbling across the region.

Continue Reading

Latest

Trending

Copyright © 2018 Modern Diplomacy