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Why the JCPOA Won’t Turn Iran Into the Next Saudi Arabia

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Of all the anxieties surrounding this summer’s groundbreaking accord between the United States and the Islamic Republic of Iran, concern over oil has been among the most prevalent. Once the terms of the Joint Comprehensive Plan of Action (JCPOA) are firmly in place, sanctions on Iran’s economy, including a set of rigorous restrictions on its oil industry, will begin to recede.

This could unleash a potentially-gargantuan supply of Iranian oil onto an already-saturated world oil market and augment the abilities of the Islamic Republic to influence regional politics. The Washington Institute has warned that a “post-sanctions windfall” will allow Iran to “rescue the Syrian regime, reshape Iraq’s political environment, expand its terrorist proxy activities in various theaters, and otherwise amplify the effects of its destabilizing regional posture.”

There is fuel for such speculation. Iran has the fourth-highest proven oil reserves in the world, and the second-largest gas reserves. If it gains the ability to tap these enormous resources, Iran could potentially become a major world oil and gas producer, rivaling Saudi Arabia, its major regional competitor.

Yet it is far from certain that the JCPOA will have anything like the cataclysmic effect some have predicted. Moreover, it is questionable how far Iran will push its newly-freed oil economy once sanctions are lifted, with a host of infrastructural challenges, as well as some compelling historical experience, potentially foiling the country’s rise into major petro-state status.

Before the U.S. began pressuring it to give up its nuclear ambitions, Iran was a major oil exporter, second only to Saudi Arabia among the OPEC member-states. Production reached 4 million barrels per-day (bpd) in 2007 before dropping to 3.6 million bpd in 2011; sanctions took that down to 2.85 million bpd by July of 2015, with exports dropping from 2.6 million bpd to 1.4 million bpd.

Expectations for Iran to immediately increase its production one sanctions begin to taper off are high. Iran’s oil minister Bijan Zhanganeh boasted in July that Iran would increase its national production by 1 million bpd within one month of sanctions being lifted. While more moderate analysts debate this figure, most agree that Iranian production will increase by the end of 2015, dropping the anticipated price of crude by $10-12 per barrel.

While the impact of greater Iranian production could further depress oil prices which have struggled for over a year, Iran will likely experience a sudden economic stimulus. The World Bank estimates that Iran’s economic growth forecast for 2016 could increase from 3% to a robust 5% if the JCPOA is approved, signaling a real end to the economic stagnation that set in with the sanctions regime.

Commentators and skeptics of the Iran deal have suggested that Iran’s aspirations to regional hegemony will finally become attainable once oil revenues are freed from sanctions limitations. There is the immediate impact of $150 billion in frozen assets to consider, money Iran will potentially be able to access once sanctions are lifted. This enormous windfall along with greater oil revenues will lead to a more strident Iranian policy, challenging Saudi and Gulf interests and ratcheting up support for Bashar al-Assad’s regime in Syria.

But considerable debate surrounds the precise amount of capital Iran has locked away in overseas accounts: $150 billion is the oft-quoted sum, but the Obama Administration has dropped its estimate from $100 billion to $50 billion, and one analysis in Fortune based on information from Iran’s Central Bank suggests that only $29 billion will be immediately available.

Depressed world oil prices will likely increase Iran’s oil revenues by a relatively small amount, from $50 billion to about $65 billion, roughly what it was earning in 2013 before prices fell. Rather than a sudden, tremendous surge in new assets, Iran will see a modest and gradual financial windfall over the course of 2016 and 2017.

How that new income will affect Iran’s foreign policy is difficult to say with any precision. The regime spends an estimated $10 billion per year on foreign “adventures” like the wars in Syria and Yemen, yet this amount dropped in 2014 in light of lower oil prices and seems trifling when compared to the amounts spent by Riyadh on similar endeavors. Saudi Arabia military spending surpasses that of Iran by five times and the UAE’s small force spends 50% more than Tehran on new weapon systems and arms. It is unlikely that any increase in oil revenues will upset this balance.

Support for Iran’s regional allies, proxies and clients will likely be overshadowed by investment that Iran will direct towards is domestic oil industry. Some of Iran’s most important oil fields are 70 years old and after a decade of sanctions the country’s infrastructure, from the wellhead to the refinery, has suffered considerable degradation for want of investment. Even the CIA, in a recent intelligence analysis, predicts that Iran’s economy will take precedence over support for regional allies.

An estimate from Iran’s oil ministry puts the total cost of industry upgrades at $200 billion, roughly half of Iran’s gross domestic product. Iran will have to pump a considerable amount of its new revenues into re-building its industry, and while external agents (including the massive Western oil firms like Royal Dutch-Shell, ENI and Total) have shown considerable interest in investing, the Obama Administration continues to warn off American companies, arguing that Iran’s aging infrastructure makes it a poor candidate for increased investment.

Even if its production reaches former levels, Iran must fight to win back market share from Saudi Arabia, which has increased its own production to record levels in order to force out new producers and bring the price back up. Saudi Arabia dominates the oil market and will likely continue to do so, as its production level (nearly 10 mbd) dwarfs that of Iran. Iran must effectively triple its current production level in order to compete, a feat that could take decades to accomplish.

Finally, a strong historical argument exists that might very well deter Iran from aggressively embracing increased oil production. Oil revenues largely funded the 1960s and 1970s regime of Mohammed Reza Shah Pahlavi, who pumped most of the country’s earnings into its military and expansive modernization programs. The Shah’s policies made Iran a regional power but over-heated the economy, created powerful inflationary effects and so destabilized his regime that it collapsed in the 1978-79 Islamic Revolution.

Ayatalloh Ruhollah Khomeini, Iran’s Supreme Leader, cut Iran’s oil production in half after 1980, causing it to fall from 6.6 million bpd to 3 million bpd. He believed Iran needed a “revolutionary economy” separate from the wider capitalist world.

Khomeini may have been driven by ideological concerns more than hard economics, but his reasoning was largely validated by post-1970s scholarship. Influential texts by Terry Lynn Karl, Hossein Mahdavy and Richard Auty point to a “resource curse” that affects country’s overly dependent on export earnings and rents from oil production. Today, oil-rich economies like Venezuela and Russia are struggling with such dependence.

If history is any guide, Iran will likely steer clear of such a policy, using its new oil revenues to bolster domestic economic growth and infrastructural development, shoring up the political support for its hardline regime (which has staked a considerable amount on reducing sanctions) while continuing its support for regional proxies and allies. The effect of a sanctions-free Iranian oil industry may take some years to reveal itself, but it is unlikely to be as dramatic as some have speculated. After all, the world oil market remains glutted; the Middle East remains a region riven by conflict; and neither the U.S. nor Iran have indicated that they plan to alter the nature of their postures towards one another. Iran’s oil may alter this situation, but it probably won’t upend it completely.

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Middle East

What is the public sphere today in Turkey?

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The concept of public sphere, which was started to be examined in Europe in the 1960s, has different meanings according to different perspectives, as a definite definition cannot be made today, and this situation creates important discussion topics about the use of such spaces.

Long debated the definition of public space in Europe, in Turkey also began to affect 1980”l year. After the 1980 coup, some communities, which were kept out of sight, fearing that the Republic project would be harmed, demanded the recognition of their ethnic and cultural identities. Thus the concept of the public sphere in Turkey, especially since the early 1990s to be addressed in various academic publications, use and began to discuss political issues.

Especially in the past years, the public sphere debates on the headscarf issue were discussed from various angles. The debate started with Prime Minister Erdogan’s criticism of President Ahmet Necdet Sezer, who did not invite his wife to a NATO dinner, saying “Dolmabahçe is not a public space”, and the President of the Council of Higher Education, Prof.Dr. Erdoğan Teziç; He responded by emphasizing that the public sphere is not a “ geographical definition ” but a functional concept.

Before defining the public sphere, the understanding that shows that the definition of space in the Ottoman Empire was shaped as less private, private, very private and very very private is still one of the biggest reasons for the definition of the public sphere. While expressing, it reminds that he entered the Ottoman literature in a different way in the 19th century. Thinkers who indicate the association of the public sphere with the state in general express it as the sphere that is related to the state, not the “public”. “When you say ‘public’, the state comes to mind immediately; We mean something like government administration, its organs, organizations, officials, or activities, an official domain that is owned or run under state control. However, as Habermas said, the public sphere is above all the sphere in which the public opinion is formed in our social life ”.

As citizens of the city, we observe that some projects have spread to the spaces defined as public space due to the fact that today’s public space and public space concepts have not been defined precisely and construction activities have increased due to the anxiety of rent.

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Middle East

Erdogan’s Calamitous Authoritarianism

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Turkey’s President Erdogan is becoming ever more dangerous as he continues to ravage his own country and destabilize scores of states in the Middle East, the Balkans, and North Africa, while cozying up to the West’s foremost advisories. Sadly, there seems to be no appetite for most EU member states to challenge Erdogan and put him on notice that he can no longer pursue his authoritarianism at home and his adventurous meddling abroad with impunity.

To understand the severity of Erdogan’s actions and ambitions and their dire implications, it suffices to quote Ahmet Davutoglu, formerly one of Erdogan’s closest associates who served as Minister of Foreign Affairs and subsequently Prime Minister. Following his forced resignation in May 2016 he stated “I will sustain my faithful relationship with our president until my last breath. No one has ever heard — and will ever hear — a single word against our president come from my mouth.”

Yet on October 12, Davutoglu declared “Erdogan left his friends who struggled and fought with him in exchange for the symbols of ancient Turkey, and he is trying to hold us back now…. You yourself [Erdogan] are the calamity. The biggest calamity that befell this people is the regime that turned the country into a disastrous family business.”

The stunning departure of Davutoglu from his earlier statement shows how desperate conditions have become, and echoed how far and how dangerously Erdogan has gone. Erdogan has inflicted a great calamity on his own people, and his blind ambition outside Turkey is destabilizing many countries while dangerously undermining Turkey’s and its Western allies’ national security and strategic interests.

A brief synopsis of Erdogan’s criminal domestic practices and his foreign misadventures tell the whole story.

Domestically, he incarcerated tens of thousands of innocent citizens on bogus charges, including hundreds of journalists. Meanwhile he is pressuring the courts to send people to prison for insulting him, as no one can even express their thoughts about this ruthlessness. Internationally, Erdogan ordered Turkish intelligence operatives to kill or smuggle back to the country Turkish citizens affiliated with the Gülen movement.

He regularly cracks down on Turkey’s Kurdish minority, preventing them from living a normal life in accordance with their culture, language, and traditions, even though they have been and continue to be loyal Turkish citizens. There is no solution to the conflict except political, as former Foreign Minister Ali Babacan adamantly stated on October 20: “… a solution [to the Kurdish issue] will be political and we will defend democracy persistently.”

Erdogan refuses to accept the law of the sea convention that gives countries, including Cyprus, the right to an Exclusive Economic Zone (EEZ) for energy exploration, while threatening the use of force against Greece, another NATO member no less. He openly sent a research ship to the region for oil and gas deposits, which EU foreign policy chief Josep Borrell called “extremely worrying.”

He invaded Syria with Trump’s blessing to prevent the Syrian Kurds from establishing autonomous rule, under the pretext of fighting the PKK and the YPG (the Syrian Kurdish militia that fought side-by-side the US, and whom Erdogan falsely accuses of being a terrorist group).

He is sending weapons to the Sunni in northern Lebanon while setting up a branch of the Turkish Cooperation and Coordination Agency (TIKA) in the country—a practice Erdogan has used often to gain a broader foothold in countries where it has an interest.

While the Turkish economy is in tatters, he is investing hundreds of millions of dollars in the Balkans, flooding countries with Turkish imams to spread his Islamic gospel and to ensure their place in his neo-Ottoman orbit. Criticizing Erdogan’s economic leadership, Babacan put it succinctly when he said this month that “It is not possible in Turkey for the economic or financial system to continue, or political legitimacy hold up.”

Erdogan is corrupt to the bone. He conveniently appointed his son-in-law as Finance Minister, which allows him to hoard tens of millions of dollars, as Davutoglu slyly pointed out: “The only accusation against me…is the transfer of land to an educational institution over which I have no personal rights and which I cannot leave to my daughter, my son, my son-in-law or my daughter-in-law.”

Erdogan is backing Azerbaijan in its dispute with Armenia (backed by Iran) over the breakaway territory of Nagorno-Karabakh, which is inhabited by ethnic Armenians and has been the subject of dispute for over 30 years.

He is exploiting Libya’s civil strife by providing the Government of National Accord (GNA) with drones and military equipment to help Tripoli gain the upper hand in its battle against Khalifa Haftar’s forces. Former Foreign Minister Yasar Yakis said in February 2020 that “The unclear Turkish foreign policy by Erdogan may put Turkey in grave danger due to this expansion towards Libya.”

He is meddling in the Israeli-Palestinian conflict in an effort to prevent them from settling their dispute unless Israel meets Palestinian demands. He granted several Hamas officials Turkish citizenship to spite Israel, even though Hamas openly calls for Israel’s destruction.

He betrayed NATO by buying the Russian-made S-400 air defense system, which seriously compromises the alliance’s technology and intelligence.

He is destabilizing many countries, including Somalia, Qatar, Libya, and Syria, by dispatching military forces and hardware while violating the air space of other countries like Iraq, Cyprus, and Greece. Yakis said Turkey is engaging in a “highly daring bet where the risks of failure are enormous.”

Erdogan supports extremist Islamist groups such as the Muslim Brotherhood and Hamas, and an assortment of jihadists, including ISIS, knowing full well that these groups are sworn enemies of the West—yet he uses them as a tool to promote his wicked Islamic agenda.

He regularly blackmails EU members, threatening to flood Europe with Syria refugees unless they support his foreign escapades such as his invasion of Syria, and provide him with billions in financial aid to cope with the Syrian refugees.

The question is how much more evidence does the EU need to act? A close look at Erdogan’s conduct clearly illuminates his ultimate ambition to restore much of the Ottoman Empire’s influence over the countries that were once under its control.

Erdogan is dangerous. He has cited Hitler as an example of an effective executive presidential system, and may seek to acquire nuclear weapons. It’s time for the EU to wake up and take Erdogan’s long-term agenda seriously, and take severe punitive measures to arrest his potentially calamitous behavior. Sadly, the EU has convinced itself that from a geostrategic perspective Turkey is critically important, which Erdogan is masterfully exploiting.

The EU must be prepared take a stand against Erdogan, with or without the US. Let’s hope, though, that Joe Biden will be the next president and together with the EU warn Erdogan that his days of authoritarianism and foreign adventurism are over.

The views expressed are those of the author.

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Syrian Refugees Have Become A Tool Of Duplicitous Politics

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Syrian refugees in Rukban camp

Since the beginning of the conflict in Syria the issue of Syrian refugees and internally displace has been the subject of countless articles and reports with international humanitarian organizations and countries involved in the Syrian conflict shifting responsibility for the plight of migrants.

The most notorious example of human suffering put against political games is the Rukban refugee camp located in eastern Syria inside the 55-km zone around Al-Tanf base controlled by the U.S. and its proxies.

According to official information, more than 50,000 people, mostly women and children, currently live in the camp. This is a huge number comparable to the population of a small town. The Syrian government, aware of the plight of people in Rukban, has repeatedly urged Washington to open a humanitarian corridor so that everyone can safely return home. However, all such proposals were ignored by the American side. U.S. also refuse to provide the camp with first aid items. Neighbouring Jordan is inactive, too, despite Rukban being the largest of dozens other temporary detention centres in Syria, where people eke out a meager existence.

At the same time, the problem is not only refugee camps. Syria has been at war for a decade. The country’s economy has suffered greatly over this period, and many cities have been practically grazed to the ground. Moreover, the global coronavirus epidemic didn’t spare Syria and drained the already weakened economy even more. However, Damascus’ attempts of post-war reconstruction and economic recovery were undermined by multiple packages of severe sanctions imposed by the U.S. At the same time, U.S.-based human rights monitors and humanitarian organizations continue to weep over the Syrian citizens’ misery.

The situation is the same for those refugees who stay in camps abroad, especially in countries bordering on Syria, particularly Jordan and Turkey. Ankara has been using Syrian citizens as a leverage against the European states in pursuit of political benefits for a long time. No one pays attention to the lives of people who are used as a change coin in big politics. This is equally true for Rukban where refugees are held in inhuman conditions and not allowed to return to their homeland. In those rare exceptions that they are able to leave, refugees have to pay large sums of money that most of those living in camp are not able to come by.

It’s hard to predict how long the Syrian conflict will go on and when – or if – the American military will leave the Al-Tanf base. One thing can be said for sure: the kind of criminal inaction and disregard for humanitarian catastrophe witnessed in refugee camps is a humiliating failure of modern diplomacy and an unforgivable mistake for the international community. People shouldn’t be a tool in the games of politicians.

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