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Suicidal Nuclear Gambit on Caucasus

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Nuclear security is seemingly in the vanguard of global attention, but the large framework of international provisions is increasingly perceived as a toothless tiger. In the contemporary age where asymmetric threats to security are one of the most dangerous ones, the time is high to mitigate the risk of rouge actors having potential access to materials, necessary to develop nuclear weapons.

Nowhere is this urgency more pivotal than in already turbulent areas, such as the South Caucasus. With many turmoil instabilities, lasting for decades with no completely bulletproof conflict resolution process installed, adding a threat of nuclear weapons potential means creating a house of cards that can cause complete collapse of regional peace and stability. That is precisely why recently uncovered and reoccurring actions of Armenia towards the goal of building its own nuclear capacity must be addressed more seriously. They should also attract bolder response to ensure safety of the region is sustained.

According to the report by Vienna-based nuclear watch-dog, International Atomic Energy Agency (IAEA), Armenia has established quite a record of illegal trafficking of nuclear and other radioactive materials. There have been a couple of serious incidents spanning from 1999 onward. A large number of reported incidents has occurred on the country`s border with Georgia, tempting the IAEA to conclude there is high probability that the so called Armenian route does in fact exist. There is a further evidence to support this assertion. There were an unusually high number of Armenians caught in nuclear trafficking activities. Additionally, some of the reported incidents that made their way to the official reports suggested that the main focus of trafficking activities is in fact smuggling of nuclear material that could be used for nuclear weapons capabilities. There were also reports suggesting the trafficking of other radioactive material that could be utilized for alternate purposes, such as the building of a so called dirty bomb. Since the stakes with nuclear weaponry are always high to the extreme, the recognition of this threat must not be underrated and dismissed easily.

Only days henceforth the latest illegal activities have been uncovered by border control in April, 2016, former Armenian Prime Minister Bagratyan shocked the international public with the claim that Armenia indeed has nuclear capabilities and the ability to further develop them. The main reason for the possession is to deter neighbors such as Turkey and Azerbaijan. More specifically, to discourage them from resorting to aggressive foreign policy measures and mitigate potential threats to Armenian territorial integrity, especially in the disputed regions. Even though Turkey and its intelligence network was quick to dismiss these claims and labeled them as a failed attempt to increase the geopolitical importance of Armenia, as well as to deter its much more militarily capable neighboring countries, such claims should not be taken lightly, either. Thus, there is no cause for alarm yet.

However, there should be increased interest of the international community to investigate these serious claims. If documented, they would pose a grave desta-bilization factor for the already turbulent region. They would also trigger deepening of hostilities and mistrust in extremely delicate regional framework of peace.

The prospects and dangers of potential acquisition of a dirty bomb by rouge actors are rising on the international agenda. The recently detected activities in South Caucasus showed that there were substantial efforts made in order to smuggle and illegally sell Uranium 238, which is highly radioactive. At the beginning of 2016, a different group was trying to smuggle a highly radioactive Cesium isotope that usually forms as a waste product in nuclear reactors. What is also worrying is that the majority of the activities are occurring in highly instable and unmonitored territories of Azerbaijan and Georgia that are under the control of separatists, such as Nagorno- Karabakh and South Ossetia. The mere organization of the Armenian route proves to show that illegal activities can flourish in the security blind spots of the region.

There is also the Iranian connection. Armenia borders this Middle Eastern country that found itself in the centre of global attention until the ratification of The Joint Comprehensive plan of Action in 2015. The international agreement supposedly effectively mitigated the risk of Teheran developing its own nuclear capabilities and established a proper international regime to monitor compliance to the installed provisions. However, fears remain over future developments of this issue. The unusually high number of truck traffic between Armenia and Iran further fuels suspicion on what exactly goes down under the cloak of darkness.

Iran is not the only powerful ally of Armenia that holds knowledge on all things nuclear. Yerevan is extremely close with Russia ever since the breakup of the former Soviet Union, and fully relies on Moscow when it comes to upholding its security, territorial integrity and political autonomy. Russia is of course a member of the elite nuclear club, and besides the US holds one of the largest stockpiles of nuclear capabilities in the world. This is of course a leftover of the Cold war era and fears of the Eastern or the Western devil, depends on which side of the wall the threat was being perceived.

It is worrying to note that some of the nuclear material that was trying to find its way into Armenia through South Ossetia has been, at least according to some reports, traced back to Russian nuclear facilities. This is of course of small wonder, since Russia is an official supplier of nuclear fuel for the only nuclear power plant in Armenia, the Metsamor nuclear plant that supplies roughly 40 % of electricity to the country`s population.

But the reactor itself falls into another aspect of nuclear threats posed by Armenia, specifically nuclear safety threats. The reactor is extremely outdated, and there are no proper safeguard and safety mechanism installed that would ensure adequate monitoring of its operations and recognition of potential faults in the system.

The world just marked the thirtieth anniversary of the devastating Chernobyl accident, and it is unsettling to know there is high risk of a similar disaster in the adjacent area. Nuclear safety, like nuclear security, should be taken extremely seriously. Any outdated systems, like the one at the Metsamor nuclear plant, should be either closed down until repaired and adjusted to proper security standards, or shut down completely if the plant is unable to follow necessary legal provisions. To make the future prospects even grimmer, the area where the Metsamor plant is located is being said to have very vibrant seismic activities. Thus, not only is the plant dangerous due to outdated security systems and technology, but also due to naturally occurring phenomenon that is highly likely to cause significant damage on the plant itself. Armenian officials should protect their own population and not risk a nuclear holocaust. Instead, they continue to stubbornly extend their self-entrapment grand ambitions.

Reviewing the manifold danger that Armenia represent in nuclear terms, there are no simple answers, although there are a few clear conclusions. The Metsamor power plant should be considered as an imminent and serious threat to millions of people in Asia, Middle East and Europe, and shut down. Additionally, this issue should not be shielded anymore for the sake of pure Macht politik.

Macht prefers secrecy and coercion and we already well know how it always ends up. After Chernobyl, Three Mile Island and Fukushima disaster, the last thing the world needs is another nuclear catastrophe. Additionally, there are clear ambitions present in the country to develop and acquire nuclear capabilities. For more than one reason that is an extremely dangerous endeavor to pursue. Not just for the region itself and adjacent countries but also for the world which should be evolving towards the future nuclear free world instead. Consequently, we have to do all we can to prevent yet another blow to an already shaking NPT (Non-Proliferation Treaty).

Conclusively, Caucasus is full of frozen yet unsolved, highly polarizing, toxic and potentially inflammable conflicts. We also have to be aware that the raging flames of instability from Syria and Iraq are not far away. We do not need another nuclear meltdown inferno. It is high time to localize the overheated blaze of Middle East. It would be a good start by stabilizing Caucasus in a just, fair and sustainable way.

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Eastern Europe

The phenomenon of the Islamic world- Ilham Aliyev

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At the end of the twentieth century – at the beginning of the 21st century, world politics differ by its complexity and diversity. It is too important that Azerbaijan, which proclaimed independence twice during the twentieth century, maintained its this independence during the period full of globalization, international integration and social contradictions. Under such complicated historical circumstances, the prominent politician and statesman, the well-known and respected person in the world – Ilham Aliyev’s commitment and successful realization of this responsibility can be characterized as the golden age of modern Azerbaijan history. Conduction of successful foreign policy during his term as head of state has had a significant impact on the future life of Azerbaijan.

The Republic of Azerbaijan, established normal international relations with all the countries of the world after gaining independence, and in the frame of good relations with the Muslim countries, it also protects the interests and interests of the Islamic world within the Organization of Islamic Cooperation and continues to cooperate with these countries in accordance with the requirements of international law. In this regard, strengthening of Islamic solidarity in the world is one of the priority issues in the foreign policy of Azerbaijan. Namely from this point of view, declaration of 2017 year as “Islamic Solidarity Year” by decree of the  President Ilham Aliyev dated January 10, 2017, is an indicator of  humanistness of our state leader and at the same time it is a positive example of our country’s sensitive attitude to the Islamic Countries Union. Islamic solidarity does not only mean the solidarity of Islamic countries. This is a kind of challenge, regardless of religion, to the world’s people to live in friendship, brotherhood and multiculturalism conditions.

It is well known that sectarian wars, civil wars in the Middle East and as a result, emerged certain socio-political tensions indicate that Muslim countries are in great need of moral solidarity. The controversial political processes happening in the world, the emergence and increasingly widespread of warlike states in different countries, the strengthening of religious confrontation, and the deepening of the prejudiced attitude towards Muslims emphasize the necessity level for solidarity among people, nations and states. It can be said that one of the main reasons for exacerbating the myth of Islamic terrorism, the threat of Islamophobia, and strengthening the oppression of Islamic countries should be sought in the absence of unity and solidarity among these countries. Faith differences, contradictions in interests and positions and etc. leads to serious disagreements, and sometimes severe confrontations. Islamic religion, its sacred values, are insulted by the Islamophobia and those who are exposed to the poisonous propaganda against Islam. The bloody events that took place in the Islamic countries during last years, especially in Iraq, Bahrain, Yemen, and Syria are confirmation of our opinions. Cradles of ancient Eastern culture such as Baghdad, Damascus, Aleppo, Kirkuk, Basra and other cities are subject to serious destruction as a result of wars in Iraq and Syria and constant clashes, monuments of Islamic culture in these cities are destroyed. Caricatures of the Prophet Muhammad are given in the Western media, mosques, the holy book-Koran is burnt. The Western world’s official structures do not just condemn the acts of vandalism, but on the contrary, they protect, honor, and appreciate the performers of those acts.

The main purpose of the “Islamic Solidarity Year” is to strengthen the unity of the Muslim world and to show that Islam is a religion of peace and culture, and to achieve this goal, as President of the Republic of Azerbaijan Ilham Aliyev said, first of all, reconciliation between different sects that have historically damaged Islam should be established. The announcement of the year 2017 as the “Year of Islamic Solidarity” in Azerbaijan is a challenge to the West, which is strengthening its attacks on the Islamic world annually and promoting a new “crusades” in the 21st century. This is also a call for Islamic countries to be vigilant against the crafty intentions of the West, to demonstrate unity and solidarity. Ilham Aliyev made this important step and expressed the his own position and the position of the state of Azerbaijan. As Azerbaijan has distinguished from other states with its multicultural and tolerant values throughout its history. Islamic solidarity is also a part of this context, and this shows that President Ilham Aliyev gives great importance to the solidarity of the Islamic world. As political scientists point out, some initiatives have been made to call Muslim countries to get unified around religion. For the first time in history, the head of our state has sent a political message to the Islamic world, pointing to the importance of acting from unified position, to achieve unity and at the same time integrate into the world. It should be noted that the Order of the President of the Republic of Azerbaijan on the declaration of 2017 year as“Year of Islamic Solidarity” states: “The Republic of Azerbaijan has established mutually beneficial relations with the Islamic world by being selected as a member of the Organization of Islamic Cooperation, ISESCO and other respected organizations joining muslim countries and has been an organizer of a number of important cultural forums of global importance. Azerbaijan has made a great contribution to the founding of tolerance environment, multiculturalism, intercultural and intercivilizational dialogue, and the promotion of Islamic values in the world. The prestige gained by Azerbaijan in the Islamic world got its expression in this results that Baku and Nakhchivan cities declared as a capital of Islamic culture in 2009 and 2018 respectively. And the decision to hold the IV Islam Solidarity Games in Baku in 2017  create favorable conditions for our country to take the next practical steps in strengthening the Islamic solidarity. ”

Only state leader of the country like Azerbaijan,  where multiculturalism and solidarity are established, and citizens of different nationalities, religions and sects live in peace, has a moral right to give such a decree. The promotion of the Islamic Solidarity initiative is related to the challenges of the present and controversial processes that take place because of various reasons in the Islamic world. As it is seen here, the importance of Azerbaijan’s reputation in the Islamic world, as well as the need to strengthen the solidarity of Islamic countries, as well as the actuality of holding the Islamic Solidarity Games in Baku, the capital of the Republic of Azerbaijan in 2017, have been extensively and logically expressed in this decree. With Islamic solidarity policy, Azerbaijan, as unifying facility of the Islamic world, confirms that these religious values are indeed, humanistic, moral values and reinforces belief to being of these ideas are an effective means of creating a shared living and stability environment not only in the Islamic geography but also in the entire world. Azerbaijan, which has created a partnership of cultures and ideas between East and West, fulfills the function of a of solidarity bridge, thus demonstrates its commitment to universal values, as well as its commitment to the highest values of the Islamic religion, which had a special place in the past and continuing to keep its value today. Thus, Azerbaijan uses all the means to establish steady stability in a globalizing world and propagates the peacekeeping, reconciliatory position in a unique way that is essential for today.

We suppose that this humanist initiative of the President of Azerbaijan, Mr. Ilham Aliyev, will promote the expansion of cooperation relationship between Muslim countries in the world and further strengthening of the Islamic solidarity. The strengthening of Islamic solidarity, in its turn, will play an important role in ensuring tranquility and peace in the Middle East and other regions.

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Eastern Europe

Economic Growth of Ukraine Depends on Completing Pending Reforms Quickly

MD Staff

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Ukraine’s economy grew by 2.5 percent in 2017, the second year of modest growth, according to the World Bank’s latest Ukraine Economic Update.  Growth in manufacturing, services, and construction was robust, but weaknesses in the agriculture and mining sectors, together with delays in key reforms to further strengthen investor confidence contributed to the modest overall growth performance.

“Faster growth is needed to improve living standards for the people of Ukraine who continue to hurt from the economic crisis of 2014-2015,” said Satu Kahkonen, World Bank Country Director for Belarus, Moldova and Ukraine. “This will require decisive measures in the next few months to complete pending reforms to bolster investor confidence and safeguard macroeconomic stability.”

Economic growth is projected at 3.5 percent in 2018 if pending reforms in anticorruption, land markets, state-owned banks, and privatization can be advanced in the next few months. This would provide an important signal to investors. If reforms are delayed, growth could drop below current levels in an uncertain macroeconomic environment as financing risks rapidly increase.

Ukraine faces major financing needs to repay public debt and fiscal pressures from higher public sector wages and social benefits in 2018 and 2019. Mobilizing adequate international financing by completing pending reforms in the months ahead will be important to maintain macroeconomic stability.

Meeting the fiscal deficit target of 2.5 percent of GDP in 2018 will require improving targeting of housing utility subsidies, making further wage increases contingent on measures to optimize the school and hospital network and public-sector staffing, and identifying affordable options to update public sector pensions.

Fiscal Pressures and Reform Options …

According to the World Bank’s Special Focus Note on fiscal pressures and reform options, Ukraine has made progress in reducing its large public spending since 2014. However, sustaining these gains while also improving the effectiveness of public services will require implementation of reforms in education, health, public administration, pensions, and social assistance in a fiscally affordable manner.

Public expenditures increased significantly in 2017, by 11.7 percent in real terms, reaching 41.5 percent of GDP, due to the doubling of the minimum wage and over 40 percent increase in wages of teachers and doctors. Spending on social programs also increased.

The recently adopted reforms in education, health, and public administration seek to improve compensation for teachers, doctors, and public servants to strengthen incentives and attract quality personnel. Achieving this in a fiscally affordable manner will require coordinating further increases in salaries with time-bound measures to optimize staffing and the school and hospital network.

The social assistance package in Ukraine is not only fiscally costly—costing 5 percent of GDP in 2017, but is also poorly targeted—with only 30 percent of assistance going to the bottom 20 percent of the population. Fixing this will require improved targeting of the large HUS program.

The recently adopted pension reform helped improve adequacy of benefits and stabilize fiscal costs. Additional initiatives going forward should avoid undermining these core objectives of the pension system. The timeline to create a funded pillar system by January 2019 needs to be reconsidered since this will undermine contributions to the pay-as-you-go system, create contingent fiscal liabilities, and face inadequate availability financial instruments.

Background

Since May 2014, the World Bank Group has provided a total of more than US$5 billion to Ukraine (including 4 development policy loans, 7 investment operations and 1 guarantee) from the International Bank for Reconstruction and Development (IBRD).

The World Bank’s current investment project portfolio in Ukraine amounts to US$2.5 billion.  Investments support improving basic public services that directly benefit ordinary people in areas such as water supply, sanitation, heating, power, roads, social protection and healthcare, as well as private sector development. Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled over US$12 billion in about 70 projects and programs.

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Eastern Europe

Baltic States: Missed opportunities in global politics

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We are living in the world where the facts “who makes” and “where it is made” are much more important than “what for” issue. Nowadays the world political scene is divided between superpowers supported by their allies. In order to punish each other for having opposite views the sides criticize any step made by the opponent.

Unfortunately, this happens even in case of evident necessity. It is not the secret that the modern system of international security is unable to perform all demanded functions any more. It needs to be reformed. Another question is who and where will decide.

The most likely political platforms for this are the United Nation Organization and OSCE. But the preparatory stage for any new decision should become different forums and conferences, such as the Munich Security Conference and the Moscow International Conference on Security.

This year the Munich Security Conference took place on February 16-18. More than 30 heads of state and government and over 100 cabinet ministers from across the globe came together at the forum for discussions on major international security challenges. As far as the Baltic States concerns, President of Estonia, as well as Lithuanian and Latvian ministers of defence did not miss the event because it was of great importance for the future of their countries and all Europe.

Just another situation developed in March. In Moscow an annual International Conference on Security was held on April 4-5. The fight against terrorism and other pressing security challenges were one the agenda. There is not a single person who is not affected by the discussed topics.

Many European countries considered it unnecessary to visit the event. It makes no sense to blame them for this choice. They have a strong and common view on what is happening in the world. But if abstract from the current geopolitical situation and confrontation between Russia and the West, politicians should see such kind of forums as a chance to find even weak possibilities to make the world safer. Probably the main reason for not attending the event is in the fact that politicians forgot how to listen to each other. They forgot that only discussing controversial issues makes possible to reach a consensus.
Another issue that deserves attention is the list of participants, which is of great interest to the analysts. According to the Russia’s Defense Ministry, representatives from at least 95 countries, three deputy prime ministers, 30 defense ministers, 15 chiefs of staff, 10 international organizations and military delegations have come to participate in the International Conference on Security. They include defense ministers of India, South Africa, Iran, Iraq, Pakistan, Vietnam, Azerbaijan, Belarus, China, Armenia, Mozambique, Serbia, and Israel. Thus, almost half of the UN member-states (total number is 193) sent representatives to the Conference.

It becomes evident that Russia really has powerful partners and allies that are ready to discuss even difficult questions and find mutually beneficial solutions. Those who came do not necessarily agree with Moscow and support its foreign policy but they clearly understand that unfortunately without Russia it is impossible to improve the International Security system.

This fact admitted Thomas Greminger, secretary-general for the Organization for Security and Co-operation in Europe. He stressed that Russia is a key partner in issues of the European security. But the Baltic States blinded by hatred to Russia ignore ignored the event thus putting political ambitions higher than common sense.

It is obvious that Russia is not satisfied with NATO’s actions near its borders. NATO in its turn disputes the lawfulness of Russia’s behavior. Every day confrontation becomes harder and leads to the arms race. The only way out is to discuss things and find the way out. The Baltic States as usual lost the possibility to express their position on key international security issues and be the active actors in global politics.

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