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Airlines as Geopolitical Agents of Power

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Airlines are agents of geopolitical power. They are agents of geopolitical power, because they have the power to become the bridge between the core and peripheries of the world.

For example, in spite of the current civil strife in Mogadishu, Somalia, Turkish Airlines, during March, 2012, was the first and only internationally-acclaimed airline that began flying (via Khartoum at the time) to Somalia. Flying into Somalia, for Turkish Airlines, meant: We back Somalia. And let this flight herald our trust in Somalia and our Somali partners.

Geopolitically what does this mean? Since 2011 it was President (former prime-minister at the time) Recep Tayyip Erdogan that first visited Mogadishu (the highest non-African ranking official that Somalia has ever received after years of internal strife). Despite of the fact that Turkey initially began its bilateral relation with Somalia based on humanitarian aid, the Turco-Somali relationship would evolve into that of a political and commercial interest, particularly in Turkey’s interest of supporting vital infrastructure—i.e. ports—programs in Somalia by investing approximately over $500M. Yet, going back to the main topic of this article (airlines and geopolitics), what does it mean when an airline goes to another poorly served, connected country? It means one thing and one thing only: geopolitical trust (country stability) and geopolitical territorial linkage (exertion of state power from the airline’s country of origin. Think of Netherlands and Suriname).

Before studying and working in geopolitics and investment projects, I, myself, lived some kind of a hybrid life. Let’s say somewhere between business and aviation. From 2007—2011, I studied business administration at Embry-Riddle Aeronautical University (which actually has a huge military culture and values, and which also taught me, generally speaking, how many of my American colleagues in the military perceive the world), focused in the geographies of air transportation; in other words, commercial geographies and mobilities, combined with business administration critical thinking. Yet, throughout those years I became a pilot and even did an internship in Panama City, Panama, in Copa Airlines headquarters (Panama’s main airline).

Now, fast forwarding time, by combining both geopolitics and aviation studies, I have undoubtedly learned that airline routes are one of the prime indicators when a country’s socioeconomic status is improving, heading in the wrong direction, or a sign of the geopolitical influence one state exerts into another; airlines are the first geopolitical agents that have the power to suspend or completely terminate a destination, consequently, eliminating the bridge between one space and another, isolating an entire country, for example (e.g. Google: Yemen Sana’a airport).

Take for example Bangui, in the Central African Republic. What if I tell you that if you were to fly to the CAR, it is Air France (as the former—and still—colonial power) the only European airline that serves Bangui only once a week? What if I tell you that though Royal Air Maroc serves Bangui as well, it does so in the same degree—once a week—as Air France? And the same can be said for the relatively internationally known TAAG Angola airlines, which operates from Luanda. Regardless of how you look at it, if you were to fly to Bangui M’Poko International airport, in a trustworthy international airline (those that fly into Europe and the US are considered safe, trustworthy and high-standard airlines, because of both the FAA and EASA high-standard requirements on aircraft safety), most likely, you would have a really hard time in securing the correct flight schedule, price and, most importantly, the time and date you’d like to fly into the CAR. In the commercial aviation network and planning parlance, the CAR would be technically isolated. If Air France is the only European airline serving the CAR, can this mean that there are still some colonial, pastoralist-type of linkages? Or that an ex-colonial power controls the mobility and connectivity to its former colonies? I’ll let you be the judge of that question.

But, also, did you know that Air France has, from Europe, a complete monopoly on Cayenne, French Guiana, and to a certain extent to Papeete, French Polynesia? (Air Tahiti Nui—Air France’s only competitor—is supported by the French Government in the form of +$300M in subsidies, in spite of the fact that its main shareholder is the French Polynesian government, and though I am indeed generalizing, I am suspecting that the same French Government’s subsidies are the ones that are partially supporting Air Tahiti Nui vis-à-vis the Government in Tahiti). And, lastly, the same can be said about West Africa and the Sahel air travel network—until Turkish Airlines has come into play.

From a geopolitical point of view, Air France’s destination network is one of the most interesting to research as well as the rapid expansion of both Emirates and Turkish airlines’ networks (e.g. from Tajikistan to Eritrea). For example, Turkish airlines currently competes with Air France’s extensive West Africa network. Turkish airlines flies into the same cities were Air France’ airline empire once had a complete monopoly, including cities like Nouakchott (Mauritania), Niamey (Niger), Ouagadougou, (Burkina Faso), Conakry (Guinea), N’Djamena (Chad), and Libreville (Gabon). Therefore, as a result, one could generally conclude that Turkish Airlines is challenging many airline networks that aroused during colonial times (e.g. Turkish is challenging Aeroflot’s network in Central Asia; Air France and Brussels’s airlines West African network; and Turkish Airlines will eventually challenge US-based airlines hegemony in the Latin America-Europe-and-Asia controlled transit passengers market). Also, many of the gulf airlines (Etihad, Emirates, Qatar, particularly) have been gradually catching up by flying to cities like Buenos Aires and Sao Paulo, while continuing their expansion on US airspace (e.g. Emirates will fly into Orlando, Qatar is flying into Miami, Etihad is serving Los Angeles), which is why I am not surprised that many of the US legacy carriers’ CEOs are accusing the Gulf airlines from being heavily subsided, claiming unfair competition. Yet, I will leave that question to the legal experts.

What is the main lesson here? That airlines compete for power and influence as much as a state would.

An airline’s main geopolitical power is manifested as: 1) the power in controlling mobilities; 2) the power of transporting cargo, reducing the time, compared to shipping vessels and railway transportation; and 3) the power of being part of the propaganda and media machine of an hegemonic and/or rising power. For instance, in my country (Guatemala), which, unfortunately, due to high criminal violence and corruption, has been part of America’s illegal migration problem for a while. In spite of this migration problem, Guatemala is currently served by four US legacy airlines (Delta, American, United and Spirit), with 9 non-stop flights to United States, and with +50 frequencies of flights between America and Guatemala in a week. In turn, there are only five Latin American—and one European, Iberia—airlines legacy carriers that serve Guatemala, one of them is from Panama (Copa); three from Mexico (Aeromexico, Interjet and Volaris); and one is from Colombia (Avianca). Henceforth, and compared with the Latin American airlines, US-based carriers at least control 44% of the Guatemalan market; additionally controlling European and Asian mobility into Guatemala and the rest of Central America, except for Panama City—which is rapidly growing and served by major European legacy carriers (Iberia, KLM, Air-France, TAP, and Lufthansa this coming march 2016).

Last but not least, airline’s propaganda can dwell in our geographic imagination and induce our hearts and pockets. How? Well, they capture the essence of curiosity. The curiosity of traveling into their countries of origin. The curiosity of using them as linkages into another unknown, untraveled destination. The Curiosity of imagining what is life like in the airlines’ countries of origin. And, the curiosity of having the ‘experience’ of traveling with them. At least, from a Guatemalan standpoint, many of the US-legacy carriers advertise American hallmarks of touristic and geopolitical power, such as photos of the White House, the Statue of Liberty, the Golden Gate Bridge, and the giant Hollywood emblem in the hills of Los Angeles.

With that kind of propaganda, no wonder why many of my countrymen must imagine that as soon as you step in the US, your life will become great, suddenly change, and why not, you will be part of the American dream—and from a business and marketing standpoint, of course, that I congratulate the American airlines. They are making a fine job in serving and connecting Guatemala with the rest of the world.

Yes, airlines can provide many things for our self-esteem (the joy of looking forward to relax in a nice, sunny beach) and our egos (the joy of telling your family and friends that you will travel to a destination they are eager to go but can’t). But, the airlines are also part of the geopolitical architecture of a state’s power: connecting, uniting or burning the bridge between one space and another. The core and the periphery. The served and unserved.

So, my dear reader: are airlines agents of geopolitical power?

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Economy

Afghan crisis: Changing geo-economics of the neighbourhood

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The Taliban takeover of Afghanistan has caused a rapid reshuffle in the geo-economics of South, Central and West Asia. While the impact on the Afghan economy has been profound, triggering inflation and cash shortage, it’s bearing on Afghanistan’s near neighbourhood has wider far-reaching consequences. The US spent almost $24 billion on the economic development of Afghanistan over the course of 20 years. This together with other international aid has helped the country to more than double its per capita GDP from $900 in 2002 to $2,100 in 2020. As a major regional player, India had invested around $3 billion in numerous developmental projects spanning across all the 34 provinces of Afghanistan. Indian presence was respected and valued by the ousted Afghan dispensation. With the US, India and many other countries deciding to close their embassies in Afghanistan and the US deciding to freeze Afghanistan’s foreign reserves amounting to $9.5 billion, the economy of the country has hit a grinding halt. IMF too has declared that Kabul won’t be able to access the $370 million funding which was agreed on earlier. The emerging circumstances are ripe for China and Pakistan to cut inroads into the war-torn country as the rest of the world watches mutely.

Beijing’s major gain would be the availability of Afghanistan as a regional connector in its ambitious Belt and Road Initiative (BRI) linking the economies of Central Asia, Iran and Pakistan. Afghanistan is already a member of the BRI with the first Memorandum of Understanding signed in 2016. Only limited projects were conducted in Afghanistan under the initiative till now due to security concerns, geographic conditions and the government’s affinity towards India. Chinese officials have repeatedly expressed interest in Afghanistan joining the CPEC (China Pakistan Economic Corridor), a signature undertaking of the BRI. CPEC is a $62 billion project which would link Gwadar port in Pakistan’s Baluchistan province to China’s western Xinjiang region. The plan includes power plants, an oil pipeline, roads and railways that improves trade and connectivity in the region.

China also eyes at an estimated $1 trillion mineral deposits in Afghanistan, which includes huge reserves of lithium, a key component for electric vehicles. This mineral wealth is largely untapped due lack of proper networks and unstable security conditions long-prevalent in the country. Chinese State Councillor and Foreign Minister Wang Yi hosted Taliban representatives in late June in Tianjin to discuss reconciliation and reconstruction process in Afghanistan. Taliban reciprocated by inviting China to “play a bigger role in future reconstruction and economic development” of the country. After the fall of Kabul, China has kept its embassy open and declared it was ready for friendly relations with the Taliban. It had also announced that it would send $31 million worth of food and health supplies to Afghanistan to tide over the ongoing humanitarian crisis. Pakistan, a close ally of China, has on its part has sent supplies such as cooking oil and medicines to the Afghan authorities. Pakistan having strong historical ties with the Taliban will possibly play a crucial role in furthering Chinese ambitions..

The immediate economic fallout of the crisis for Iran is its reduced access to hard currency from Afghanistan. After the imposition of US sanctions, Afghanistan had been an important source of dollars for Iran. Reports suggest that hard currency worth $5million was being transferred to Iran daily before the Taliban takeover. Now the US has put a freeze on nearly $9.5 billion in assets belonging to Afghan Central Bank and stopped shipment of cash to the country. The shortage of hard currency is likely to affect the exchange rates in Iran subsequently building up inflationary pressure. Over the years, Afghanistan had emerged as a major destination for Iran’s non-oil exports amounting to $2billion a year. A prolonged crisis would curb demand in Afghanistan including that of Iranian goods with a likely reduction in the trade volume between the two countries. In effect, Iran would find itself increasingly isolated from foreign governments and international financial flows.

India had been the wariest regional spectator watching its $3 billion investment in Afghanistan go up in smoke. Long-standing hostility with Pakistan has prevented land-based Indian trade with Afghanistan and the Central Asian Republic’s (CAR’s). Push by India and other stakeholders for setting a common agenda for alternate connectivity appears susceptible at the moment. India has been working with Iran to develop Chabahar port in the Arabian sea and transport goods shipped from India to Afghanistan and Central Asia through the proposed Chabahar-Zahedan-Mashhad railway line. India is also working with Russia on the International North-South Transport Corridor (INSTC), a 7,200 km long multi-mode network of ship, rail and road routes for freight movement, whereby Indian goods are received at Iranian ports of Bandar Abbas and Chabahar, moves northward via rail and road through Iran and Azerbaijan and meets the Trans-Siberian rail network that will allow access to the European markets. According to the latest reports, the Taliban declined to join talks with India, Iran and Uzbekistan on Chabahar port and North-South Transport Corridor, which has cast shadow on the Indian interests in the region. India’s trade with Afghanistan had steadily increased to reach the US $1.5 billion in 2019–2020. An unfriendly administration and demand constraints may slow down the trade between the two countries.

With the US withdrawal, the CARs would find their strategic and economic autonomy curtailed and more drawn into the regional power struggle between China and Russia. While China has many infrastructure projects in Central Asia to its credit, Russia is trying to woo Central Asian countries into the Russia-led Eurasian Economic Union (EEU), though so far it was able to rope in only Kazakhstan and Kyrgyzstan. CARs would need better connectivity through Afghanistan and Iran to diversify their trade relations with Indo-Pacific nations and to have better leverage to bargain with Russia and China. Uzbekistan, the most fervent of the CARs to demand increased connectivity with South Asia, expressed its interest in joining the Chabahar project in 2020, which was duly welcomed by India. The new developments in Afghanistan would force these countries to remodel their strategies to suit the changed geopolitical realities.

The fact that Iran is getting closer to China by signing a 25-Year Comprehensive Strategic Partnership cooperation agreement in 2020 adds yet another dimension to the whole picture. India’s hesitancy to recognize or engage with the Taliban makes it unpredictable what the future holds for India-Afghan relations.

The hasty US exit has caused rapid reorientation in the geopolitical and geo-economic status-quo of the region. Most countries were unprepared to handle the swiftness of the Taliban takeover and were scrambling for options to deal with the chaos. The lone exception was China which held talks with the Taliban as early as July, 28 weeks before the fall of Kabul, to discuss the reconstruction of the war-torn country. Chinese Foreign Minister Wang Yi also took a high-profile tour to Central Asia in mid-July which extensively discussed the emerging situation in Afghanistan with Central Asian leaders. Since the West has passed the buck, it’s up to the regional players to restore the economic stability in Afghanistan and ensure safe transit routes through the country. Any instability in Afghanistan is likely to have harrowing repercussions in the neighbourhood, as well.

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Economy

Turkish Economy as the Reset Button of Turkish Politics

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Democracy has a robust relationship with economic growth.  Barrington Moore can be seen as one of the leading scholars focusing on the relationship between political development and economic structure with his book titled “Social Origins of Dictatorship and Democracy” first published in 1966. According to Moore, there are three routes from agrarianism to the modern industrial world. In the capitalist democratic route, exemplified by England, France, and the United States, the peasantry was politically impotent or had been eradicated all together, and a strong bourgeoisie was present, and the aristocracy allied itself with the bourgeoisie or failed to oppose democratizing steps. In Moore’s book, you can find out why some countries have developed as democracies and others as dictatorships.

It can be argued that economic development facilitates democratization. Following this argument, this article is an attempt to address the Turkish case with the most recent discussions going on in the country. One of the most powerful instruments used by the political opposition today is the rhetoric of “economic crisis” that has also been supported by public opinion polls and data. For instance, the leader of İYİ Party Meral Akşener has organized lots of visits to different regions of Turkey and has been posting videos on her social media account showing the complaints mostly centering around unemployment and high inflation. According to Akşener, “Turkey’s economic woes – with inflation above 15%, high unemployment and a gaping current account deficit – left no alternative to high rates.”

Another political opposition leader, Ahmet Davutoğlu raised voice of criticism via his social media account, saying “As if monthly prices hikes on natural gas were not enough, they have introduced 15% increase on electricity costs. It is as if the government vowed to do what it can to take whatever the citizens have.”

A recent poll reveals that about 65 percent think the economic crisis and unemployment problem are Turkey’s most urgent problems. Literature on the relationship between democracy and economic well-being shows that a democratic regime becomes more fragile in countries where per capita income stagnates or declines. It is known that democracies are more powerful among the economically developed countries.

The International Center for Peace and Development summarizes the social origins of democracy in global scale as the following:

“Over the past two centuries, the rise of constitutional forms of government has been closely associated with peace, social stability and rapid socio-economic development. Democratic countries have been more successful in living peacefully with their neighbors, educating their citizens, liberating human energy and initiative for constructive purposes in society, economic growth and wealth generation.”

Turkey’s economic problems have been on the agenda for a long time. Unlike what has been claimed by the Minister of Interior Affairs Süleyman Soylu a few months ago, Turkish economy has not reached to the level which would make United States and Germany to become jealous of Turkey. Soylu had said, “You will see, as of July, our economy will take such a leap and growth in July that Germany, France, England, Italy and especially the USA, which meddles in everything, will crack and explode.”

To make a long story short, it can be said that the coronavirus pandemic has exerted a major pressure on the already fragile economy of Turkey and this leads to further frustration among the Turkish electorate. The next elections will not only determine who will shape the economic structure but will also show to what level Turkish citizens have become unhappy about the ongoing “democratic politics.” In other words, it can be said that, Turkish economy can be seen as the reset button of Turkish politics for the upcoming elections.

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Economy

Finding Fulcrum to Move the World Economics

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Domenico Fetti / Wikimedia Commons

Where hidden is the fulcrum to bring about new global-age thinking and escape current mysterious economic models that primarily support super elitism, super-richness, super tax-free heavens and super crypto nirvanas; global populace only drifts today as disconnected wanderers at the bottom carrying flags of ‘hate-media’ only creating tribal herds slowly pushed towards populism. Suppose, if we accept the current indices already labeled as success as the best of show of hands, the game is already lost where winners already left the table. Finding a new fulcrum to move the world economies on a better trajectory where human productivity measured for grassroots prosperity is a critically important but a deeply silent global challenge. Here are some bold suggestions

ONE- Global Measurement: World connectivity is invisible, grossly misunderstood, miscalculated and underestimated of its hidden powers; spreading silently like an invisible net, a “new math” becomes the possible fulcrum for the new business world economy; behold the ocean of emerging global talents from new economies, mobilizing new levels of productivity, performance and forcing global shifts of economic powers. Observe the future of borderless skills, boundary less commerce and trans-global public opinion, triangulation of such will simply crush old thinking.

Archimedes yelled, “…give me a lever long enough and a fulcrum on which to place it, and I shall move the world…”

After all, half of the world during the last decade, missed the entrepreneurial mindset, understoodonly as underdog players of the economy, the founders, job-creators and risk-taker entrepreneurs of small medium businesses of the world, pushed aside while kneeling to big business staged as institutionalized ritual. Although big businesses are always very big, nevertheless, small businesses and now globally accepted, as many times larger. Study deeply, why suddenly now the small medium business economy, during the last budgetary cycles across the world, has now become the lone solution to save dwindling economies. Big business as usual will take care of itself, but national economies already on brink left alone now need small business bases and hard-core raw entrepreneurialism as post-pandemic recovery agendas.

TWO – Ground Realities:  National leadership is now economic leadership, understanding, creating and managing, super-hyper-digital-platform-economies a new political art and mobilization of small midsize business a new science: The prerequisites to understand the “new math” is the study of “population-rich-nations and knowledge rich nations” on Google and figure out how and why can a national economy apply such new math. 

Today a USD $1000 investment in technology buys digital solutions, which were million dollars, a decade ago.Today,a $1000 investment buys on global-age upskilling on export expansion that were million dollars a decade ago.  Today, a $1000 investment on virtual-events buys what took a year and cost a million dollars a decade ago. Today, any micro-small-medium-enterprise capable of remote working models can save 80% of office and bureaucratic costs and suddenly operate like a mini-multi-national with little or no additional costs.

Apply this math to population rich nations and their current creation of some 500 million new entrepreneurial businesses across Asia will bring chills across the world to the thousands of government departments, chambers of commerce and trade associations as they compare their own progress. Now relate this to the economic positioning of ‘knowledge rich nations’ and explore how they not only crushed their own SME bases, destroyed the middle class but also their expensive business education system only produced armies of resumes promoting job-seekers but not the mighty job-creators. Study why entrepreneurialism is neither academic-born nor academic centric, it is after all most successful legendary founders that created earth shattering organizations were only dropouts.  Now shaking all these ingredients well in the economic test tube wait and let all this ferment to see what really happens.

Now picking up any nation, selecting any region and any high potential vertical market; searching any meaningful economic development agenda and status of special skills required to serve such challenges, paint new challenges. Interconnect the dots on skills, limits on national/global exposure and required expertise on vertical sectors, digitization and global-age market reach. Measuring the time and cost to bring them at par, measuring the opportunity loss over decades for any neglect. Combining all to squeeze out a positive transformative dialogue and assemble all vested parties under one umbrella.

Not to be confused with academic courses on fixing Paper-Mache economies and broken paper work trails, chambers primarily focused on conflict resolutions, compliance regulations, and trade groups on policy matters.  Mobilization of small medium business economy is a tactical battlefield of advancements of an enterprise, as meritocracy is the nightmarish challenges for over 100 plus nations where majority high potential sectors are at standstill on such affairs. Surprisingly, such advancements are mostly not new funding hungry but mobilization starved. Economic leadership teams of today, unless skilled on intertwining super-hyper-digital-platform-economic agendas with local midsize businesses and creating innovative excellence to stand up to global competitiveness becomes only a burden to growth.

The magnifying glass of mind will find the fulcrum: High potential vertical sectors and special regions are primarily wide-open lands full of resources and full of talented peoples; mobilization of such combinations offering extraordinary power play, now catapulted due to technologies. However, to enter such arenas calls for regimented exploring of the limits of digitization, as Digital-Divides are Mental Divides, only deeper understanding and skills on how to boost entrepreneurialism and attract hidden talents of local citizenry will add power. Of course, knowing in advance, what has already failed so many times before will only avoid using a rubber hose as a lever, again.  

The new world economic order: There is no such thing as big and small as it is only strong and weak, there is no such thing as rich and poor it is only smart and stupid. There is no such thing as past and future is only what is in front now and what is there to act but if and or when. How do you translate this in a post pandemic recovery mode? Observe how strong, smart moving now are advancing and leaving weak, stupid dreaming of if and when in the dust behind.

The conclusion: At the risk of never getting a Nobel Prize on Economics, here is this stark claim; any economy not driven solely based on measuring “real value creation” but primarily based on “real value manipulation” is nothing but a public fraud. This mathematically proven, possibly a new Fulcrum to move the world economy, in need of truth

The rest is easy  

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