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Iran since the nuclear deal with West

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Iran has been the target of anti-Islamic and Arab nations for quite some time, though their objectives vary considerably in content, but the nuclear deal with the Western powers has made its position relatively tension free as Israeli agenda of destabilizing the Islamic nation has ended in futility. Let us review the issue in prospective.

Issue: Targeting Iran’s economy and security

Today, imperialism threatens Islamic world, especially the oil rich West Asia, causing economic and security problems for each Muslim country in the region, including Saudi Arabia – a major Muslim ally of US in capitalism and anti-Islamic wars. Arab world has been made an enemy of Iran – a Shiite nation.

Sunni-Shiite divide, which is becoming wide and dangerous, is being exploited by anti-Islamic nations led by USA and Israel. Since Iraq has been destabilized by the NATO and allies, now Saudi kingdom seeks Iranian fall as well while Israel gladly supports the Arab sick mind.

In July 2015 between Iran and the P5+1 group of world powers – the US, UK, France, China and Russia plus Germany signed the historic nuclear deal seeking to bring peace to West Asia. The reason for the deal was to deny Iran any chance for making atomic bombs to make Israel, the regional nuke power, irrelevant.

Iranian economy and security has been the target of USA and its allies for a long time. Since Iran’s nuclear program became public in 2002, the UN, EU and several individual countries have imposed sanctions in an attempt to prevent it from developing military nuclear capability. Iran insists its nuclear activities are exclusively peaceful, but the world’s nuclear watchdog has been unable to verify this.

Sanctions and relief are a routine strategy of USA towards Iran. Iran and world powers agreed an interim deal in 2013 which saw it gain around $7bn in sanctions relief in return for curbing uranium enrichment and giving UN inspectors better access to its facilities. World powers also committed to facilitate Iran’s access to $4.2bn in restricted funds. Several rounds of sanctions in recent years have targeted Iran’s key energy and financial sectors, crippling its economy.

The US sanctions prohibit almost all trade with Iran, making some exceptions only for activity “intended to benefit the Iranian people”, including the export of medical and agricultural equipment, humanitarian assistance and trade in “informational” materials such as films. A ban on the supply of heavy weaponry and nuclear-related technology to Iran; A block on arms exports; an asset freeze on key individuals and companies, etc., Japan and South Korea have also imposed sanctions similar to those of the EU.

As well as more recent sanctions aimed at Iran’s financial, oil and petrochemical sectors, the US has imposed successive rounds of sanctions since the 1979 Tehran hostage crisis, citing what it says is Iran’s support for international terrorism, human rights violations and refusal to co-operate with the IAEA.

As a result of the EU embargo and the US sanctions targeting other major importers, Iran’s oil exports had fallen to 700,000 barrels per day (bpd) by May 2013, compared with an average 2.2 million bpd in 2011. In January 2013, Iran’s oil minister acknowledged for the first time that the fall in exports was costing the country between $4bn and $8bn (£2.5bn-£5bn) each month. Iran is believed to have suffered a loss of about $26bn (£16bn) in oil revenue in 2012 from a total of $95bn (£59m) in 2011.

The loss of oil revenue, which accounted for a half of government expenditure, and isolation from the international banking system, had caused Iran’s currency, the rial, to lose two-thirds of its value against the US dollar and caused inflation to rise to more than 40%, with prices of basic foodstuffs and fuel soaring. Iran wanted the UN sanctions suspended soon after any agreement is reached but sanctions stayed. .

Nuclear facility

Today, officially Israel alone has the nuclear facility and illegally obtained nukes in West Asia and obviously USA-Israel duo does not want any other nation in the region to go nuclear, threatening the military superiority of Israel. Iran’s legal effort to become a nuclear power to protect Muslim nations of the region is opposed by both USA and Israel. The White House says the nuclear deal with Iran aimed at preventing Iran from obtaining a nuclear weapon.

USA has not asked Israel to disarm itself so that the region is nuclear free. Israel does not say it wants peace in the region and hence doesn’t want to go denuclearized. Iran says it has the right to nuclear energy – and stresses that its nuclear programme is for peaceful purposes only.

Iran has been building a heavy-water nuclear facility near the town of Arak. Spent fuel from a heavy-water reactor contains plutonium suitable for a nuclear bomb. World powers had originally wanted Arak dismantled because of the proliferation risk. Under an interim nuclear deal agreed in November 2013, Iran agreed not to commission or fuel the reactor. Iran has agreed to redesign the reactor so it cannot produce any weapons-grade plutonium. All spent fuel will be sent out of the country as long as the modified reactor exists.

There are two uranium enrichment facilities in Iran – Natanz and Fordo – where uranium hexafluoride gas is fed into centrifuges to separate out the most fissile isotope U-235. Low-enriched uranium, which has a 3%-4% concentration of U-235, can be used to produce fuel for nuclear power plants. But it can also be enriched to the 90% needed to produce nuclear weapons. In July 2015, Iran had almost 20,000 centrifuges. However, under this statement of intent Iran will reduce its installed enrichment centrifuges to 6,000, only 5,000 of which will be spinning.

Iran’s uranium stockpile will also be reduced by 98% to 300kg (660lbs) for 15 years. It must also keep its level of enrichment at 3.67%. By January 2016, Iran had drastically reduced the number of centrifuges installed at Natanz and Fordo, and shipped tonnes of low-enriched uranium to Russia. In addition, research and development will take place only at Natanz and be limited for eight years. No enrichment will be permitted at Fordo for 15 years

As per the deal, Iran has agreed not to engage in activities, including research and development, which could contribute to the development of a nuclear bomb. In December 2015, the IAEA’s board of governors voted to end its decade-long investigation into the possible military dimensions of Iran’s nuclear program.

Deal

Now the Western powers and allies plus UN as international community are implementing the landmark nuclear deal in March last year between Iran and the P5+1 group of world powers – the USA, UK, France, China and Russia plus Germany.

Crippling economic sanctions on Iran have been lifted now that the International Atomic Energy Agency (IAEA) has certified that it has restricted its sensitive nuclear activities.

The nuclear deal signed by Iran and western powers is not a peace treaty but just a mechanism to avoid unnecessary war envisaged by Neocons to appease Israel and provoke Arab world. The deal somehow ended a possible civilizational clash and clipped Israeli wings in West Asia, targeting Iran.

The US government has said that the world powers that negotiated the accord — the United States, Russia, China, Britain, France and Germany — made no secret arrangements. But the draft report said the joint commission also agreed to allow Iran to keep operating 19 radiation containment chambers larger than the accord set. These so-called “hot cells” are used for handling radioactive material but can be “misused for secret, mostly small-scale plutonium separation efforts,” said the report. Plutonium is another nuclear weapons fuel.

The deal allowed Iran to meet a 130-tonne limit on heavy water produced at its Arak facility by selling its excess stock on the open market. But with no buyer available, the joint commission helped Tehran meet the sanctions relief deadline by allowing it to send 50 tonnes of the material — which can be used in nuclear weapons production — to Oman, where it was stored under Iranian control

The 159-page accord is a study in unmet high expectations for change, as hard-liners in both Iran and the US Congress fight to undermine the deal to ensure as little political benefit as possible for the chief architect of the accord – Rouhani. It was Iran’s shriveling economy – Iranians voting their pocketbooks, as well as promises of greater social freedoms – that helped Rouhani win election in June 2013. He vowed to engineer a nuclear deal, and resurrect an economy hurt by mismanagement and sanctions.

Almost every powerful group had a say in the accord, which reflected a national, strategic decision to turn the page on the nuclear crisis even as concern remains over the world powers’ commitment. The establishment appeared as determined to implement the deal as it was to seeing the negotiations through – and largely for the same reason: to resuscitate the economy by removing sanctions, either as envisioned in the accord or by showing that Iran is not to blame for failure.

With the nuclear accord between Tehran and world powers in force, a chief question is what it means for Iran. The clash between competing visions of the country’s future has heightened since the deal which many believe it could rebalance domestic politics. It not only has boosted the profile of those who promoted it, but, more fundamentally, it has opened space for new debates in a domestic sphere that was dominated by the nuclear issue for more than a decade.

However, according to a think tank report, the USA and its negotiating partners agreed “in secret” to allow Iran to evade some restrictions in last year’s landmark nuclear agreement in order to meet the deadline for it to start getting relief from economic sanctions. Among the exemptions outlined in the think tank’s report were two that allowed Iran to exceed the deal’s limits on how much low-enriched uranium (LEU) it can keep in its nuclear facilities, the report said. LEU can be purified into highly enriched, weapons-grade uranium.

Israel and Saudi Arabia found this attitude of USA unacceptable. One senior “knowledgeable” official, however, was cited by the report as saying that if the joint commission had not acted to create these exemptions, some of Iran’s nuclear facilities would not have been in compliance with the deal by Jan. 16, the deadline for the beginning of the lifting of sanctions. The US government has said that the world powers that negotiated the accord made no secret arrangements.

Real concessions?

The United States and its negotiating partners apparently agreed “in secret” to allow Iran to evade some restrictions in last year’s landmark nuclear agreement in order to meet the deadline for it to start getting relief from economic sanctions, according to a recent think tank report.

The exemptions were approved by the joint commission the deal created to oversee implementation of the accord. The commission is comprised of the United States and its negotiating partners — called the P5+1 — and Iran.

The report, which was released by the Washington-based Institute for Science and International Security, is based on information provided by several officials of governments involved in the negotiations. The group’s president David Albright, a former U.N. weapons inspector and co-author of the report, said the exemptions or loopholes are happening in secret, and it appears that they favor Iran.

The report ignited a chorus of Republican criticism, including from the campaign of presidential nominee Donald Trump. His campaign sought to link the findings to Trump’s Democratic opponent, Hillary Clinton, who was secretary of state when secret talks were held with Iran but had left office before formal negotiations began. “The deeply flawed nuclear deal Hillary Clinton secretly spearheaded with Iran looks worse and worse by the day,” said a statement issued by retired Army General Michael Flynn, a top Trump adviser. “It’s now clear President Obama gave away the store to secure a weak agreement that is full of loopholes.”

The Clinton campaign did not immediately comment on the report. The White House said it took “significant exception” to some of the report’s findings, saying that the easing of sanctions was always dependent upon Iran’s adherence to the agreement. “The implementation date was driven by the ability of the International Atomic Energy Agency to verify that Iran had completed the steps that they promised to take,” White House spokesman Josh Earnest told reporters at a briefing. “That is what precipitated implementation day. Since then Iran has been in compliance with the agreement,” Earnest said.

Among the exemptions outlined in the think tank’s report were two that allowed Iran to exceed the deal’s limits on how much low-enriched uranium (LEU) it can keep in its nuclear facilities, the report said. LEU can be purified into highly enriched, weapons-grade uranium.

One senior “knowledgeable” official was cited by the report as saying that if the joint commission had not acted to create these exemptions, some of Iran’s nuclear facilities would not have been in compliance with the deal by Jan. 16, the deadline for the beginning of the lifting of sanctions.

Outcomes

The nuclear talks and agreement between Iran and Western powers have averted a possible deadly war situation that was being promoted by most anti-Islamic nations, particularly Israel that still seeks to attack all nuclear sites of Islamic power in West Asia. Also, the deal enabled to set the tone for a peaceful situation in a region which is torn with terror wars launched by the Pentagon led NATO terror organization supported by all colonialist powers led by Israel. While Israel sought to destabilize Iran, the latter warned Jewish terror nation of dreadful consequences for the Zionist regime, Israel and Zionism.

At the outset, the nuclear deal has not fundamentally changed Iran’s ties with the USA. American companies are still generally prohibited from trading with Iran because of other sanctions for human rights violations, support of terrorism, and ballistic missile programs.

The Obama government signed agreements with Iran including sale of Boeing to Tehran. Boeing was required to receive permission from the US Treasury before even negotiating with Iran Air. Republican lawmakers quickly criticized the Boeing sale agreement with Iran, arguing it could hurt US national security interests. On July 7, the Republican-led House of Representatives passed a spending bill intended to block to the Boeing deal.

Having achieved the deal, joy erupted on the streets of Tehran a year ago, when Iran signed a landmark nuclear deal with six world powers hailed as a victory of diplomacy over war. As jubilant Iranians waved flags and heralded an easing of Iran’s isolation, President Hassan Rouhani promised that a page has turned in the history of Iran. The deal was marketed by both sides as a “win-win”: Iran would dismantle the most controversial aspects of its nuclear program – minimizing the chance of acquiring a nuclear weapon for at least a decade – in exchange for the lifting of sanctions that crippled its economy.

Expectations had been high in Iran, fanned by supporters of the deal, that its benefits would be palpable and immediate. Yet Iran has received back only a fraction of the $150 billion of its own funds that it expected, and financing new deals is a major issue because of the Western banks’ concerns. Iranians’ hopes for the benefits, however, have not yet dissipated.

However, things have not improved, there is no real tangible impact on people’s lives, but there is still a glimmer of hope for better things to come. One year later, the post deal situation does not suggest any great achievement. The deal has not ushered in a new significant era. Steady warnings from Iran’s supreme leader Ayatollah Ali Khamenei, about “infiltration” and “soft war” from the USA and the West reveals the deceptive nature of the deal with USA. USA and European banks also are proving reluctant to engage with Iran, fearful that non-nuclear US sanctions might bite, thereby depriving Iran of the full hoped-for benefits of the deal.

Iran has dramatically reduced the scale of its nuclear infrastructure – reconfiguring a heavy water nuclear reactor and a deeply buried uranium enrichment facility, for example – while keeping a limited capacity to produce fuel for nuclear energy. And non-nuclear sanctions have been lifted, partially ushering Iran back into the global economy.

Iran’s economy has slowly but measurably rebounded in the year since Tehran signed a historic nuclear deal with the world’s six major powers. Iran is still progressing as the region’s first power. Still, sanctions relief has already brought “significant benefit” to Iran, notes Vaez, such as oil production returning to pre-sanctions levels; a boost of trade with the EU by 22 percent; and $3.5 billion of a foreign direct investment in Iran in the first quarter of 2016 – breaking a decade-long record. Washington’s behavior has also been closely watched in Tehran.

Foreign trade

The nuclear deal, by lifting many of the sanctions, is reopening the doors to those foreign companies. Iran has hosted dozens of foreign delegations, many of whom had visited Iran even before the deal was signed. More than 140 economic delegations from 48 countries traveled to Iran between March and December 2015, according to Mir-Abutorab Badri, an official with the Trade Promotion Organization of Iran. Around half of them were from Europe and North America.

Sanctions relief also allowed Iran to export millions more barrels of oil monthly. In February, Iran exported its first shipment of oil to Europe since the deal was implemented. Oil exports to China, India, Japan, and South Korea increased 50% in March 2016 compared to the same period in 2015. By May 2016, oil exports had climbed to 2.3 million barrels per day, double the amount exported before sanctions relief.

Iran has made gains in the recovery of the oil market. Iran’s crude exports have soared after the lifting of UN sanctions. Exports have doubled and old customers in Asia and Europe are returning. The country’s market share of global crude exports has returned to pre-sanctions levels. However, lower oil prices have not done much to increase Iran’s capital to a booming level. Neither could oil earnings alone do this.

The relatively moderate government of President Hassan Rouhani is trying to nudge aside the conservative Revolutionary Guards in some areas to make way for what it hopes will be a “flood” of Western money from energy sales. While the deal lifted EU and UN sanctions on Iran’s banking and energy sector, most of the unilateral US sanctions relating to non-nuclear issues remain.

In January, Rouhani praised the nuclear deal for opening “new windows for engagement with the world.” Foreign governments and firms quickly began finalizing agreements once sanctions were lifted. Chinese President Xi Jinping visited Iran on January 22, 2016 and signed 17 agreements. Two days later, Rouhani embarked on his first trip to Europe, where he inked deals worth $43 billion with French and Italian companies. In January, Iran also finalized a deal with European aircraft manufacturer Airbus to deliver more than 100 commercial jets to Iran. Even some US companies have explored trade deals with Iran. In June, U.S. aircraft manufacturer Boeing signed a preliminary $17.6 billion deal to sell Iran Air 80 aircraft between 2017 and 2025. General Electric has also reportedly scoped out opportunities in Iran’s oil and gas industry.

Iran turned to its North to broker one of the most surprising barter deals — the “goods-for-gas” deal between Iran and Turkmenistan, comprising a $-30 billion deal over ten years. The purpose was to supply energy to Iran’s north-eastern provinces that are far from its domestic gas fields. This saves Iran from diverting capital into major new pipeline projects

The nuclear deal has helped raise GDP, boost oil production, and expand trade. But as Rouhani prepares for a reelection bid in 2017, many Iranians expected to see more from the nuclear deal than they experienced in its first year.

Foreign companies are also still restricted from trading with more than 200 Iranian entities sanctioned by the United States for non-nuclear reasons. Despite enthusiasm for Iran’s economic potential, foreign companies still face serious risks that have not been alleviated by the nuclear deal. Corruption, lack of transparency, poor transportation infrastructure, and other issues with Iran’s business environment etc have deterred investors. Iran ranks 118th out of 189 countries in the World Bank’s 2016 ease of doing business index, and 136th out of 175 countries in Transparency International’s corruption perceptions index.

One year after the deal, lingering economic questions and pressure from hardliners still created challenges for Rouhani. Unemployment rose from 10.6% in March 2015 to 11% in March 2016. Some Iranian businessmen complained that foreign investment was primarily channeled to large state-run enterprises rather than small businesses in the private sector. According to the World Bank, Iran still needed to improve its business environment, reduce government influence in the economy, and reform its financial sector in order to see tangible benefits in job creation.

Religious leadership

Tensions within the Islamic Republic stem in no small part from its blend of popular sovereignty and religious authority. Theocratic forces seek to maintain the dominance of the supreme leader and other tutelary bodies, while republican forces advocate more clout for popularly-elected institutions. Each camp is further split between pragmatists who seek incremental political evolution and radicals who either resist any change or promote revolutionary transformation. The supreme leader – powerful but not omnipotent – maintains stability by accommodating both theocratic and republican trends.

Supreme Leader Ali Khamenei had endorsed bilateral negotiations with the USA before Rouhani ran for office. He then supported the new president’s diplomatic push and kept his opponents at bay. But given the leader’s aversion to risk, his support was qualified and did not obviate Rouhani’s need for a coalition with other power centres.

Supreme Leader announced that the theme of the upcoming year would be “The Resistance Economy.” Focusing on domestic production, Khamenei argued, will be Iran’s best defense against sanctions. “With the Resistance Economy, it is possible to fight unemployment and recession and to curb inflation; it is possible to stand up to the enemies’ threats,” he said. Rouhani has insisted that his policies are not at odds with Khamenei’s vision for the economy—and public opinion polls support him. Citing remaining financial restrictions, Supreme Leader Ayatollah Ali Khamenei accused the USA of not fulfilling its pledges under the nuclear deal. “In Western countries and places which are under US influence, our banking transactions and the repatriation of our funds from their banks face problems … because banks fear the Americans,” he said in March.

Hardliners allege that Rouhani’s policies will make the Islamic Republic too economically dependent and open Iran to Western cultural influence. On Jan. 30, Iranian students protested outside the Iranian Oil Ministry against the new Iran Petroleum Contract (IPC), chanting that the contracts would lead to the “plundering of national wealth.”

Economy boost and challenges

After sanctions were lifted, the Islamic Republic aggressively ramped up oil and gas output. Oil production climbed from 2.9 million barrels per day in January to 3.8 million barrels per day in late May. Oil Minister Bijan Zanganeh predicted that output could top 4 million barrels per day by March 2017.

Sanctions relief has led to higher oil production, restored access to billions of dollars of assets, and easier trade and financial transactions. The two most tangible changes have been the increase in oil exports–which have nearly doubled since sanctions were lifted on Jan. 16–and the dozens of foreign trade and investment deals Iran has negotiated. In June, Iran even reached a tentative $17.6 billion deal with Boeing, the world’s largest aircraft manufacturer, to purchase passenger planes. But one year after the deal, some international firms are still hesitant to do business in the Middle East’s second largest economy.

Foreign direct investment could total $8 billion by March 2017, according to Seyed Hossein Salimi of the Iranian National Committee of the International Chamber of Commerce. In 2015, foreign direct investment only reached around $2 billion.

Overall, Iran’s economic outlook has improved since the deal. The International Monetary Fund (IMF) predicts between 4% and 5.5% growth in 2016 – up from the 1.3% growth it had predicted for 2016 before the deal was signed. Iran has moved up from number 12 position among 14 Mid-East countries in Foreign Direct investment (FDI) and it is just behind Saudi Arabia and the UAE. However, Iranian banks and foreign banks that are to play an anchor role in processing this FDI are not allowed to deal in US dollars — the global reserve currency

Natural gas production has also increased by 23 billion cubic meters in the past year, after Iran completed development projects in the South Pars field, the largest gas field in the world. European companies estimated that Iran – which holds the world’s second largest natural gas reserves, after Russia – could potentially supply Europe with up to 35 billion cubic meters of gas per year by 2030.

Low oil prices, however, have limited Iran’s revenue from these production increases. In January, oil prices fell below $30 a barrel for the first time in 12 years. Prices have rebounded slightly since then, reaching $46 a barrel in June 2016.

However, low prices have also pushed Iran to diversify its economy. Only around 25%of the state budget relies on oil revenues, compared to 60% in past years. In the last Iranian year, which ended on March 19, Iran had a non-oil trade surplus for the first time since the 1979 revolution.

Iran’s increasing oil output–despite low prices–has put it at odds with other oil producers. In February, Russia and OPEC members Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, and Venezuela called for a production freeze to stabilize prices. Iran would only entertain the idea of a freeze after production reaches 4 million barrels per day, which was about its pre-sanctions output.

Even if prices increase, Iran may have trouble increasing its oil production beyond that target without significant foreign investment. The Islamic Republic plans to fund and implement oil and gas projects worth a lofty $185 billion by 2020 to boost its crude oil output and refining capabilities.

The Islamic Republic hopes to entice foreign oil companies by offering more favorable contract terms. On June 27, Zanganeh announced that Iran was finalizing the Iran Petroleum Contract (IPC). Unlike the “buy-back” contracts unpopular with foreign firms, the IPC allows companies to participate in all the stages of an oil or gas field’s lifecycle.

Domestically, the deal has yet to yield significant benefits for the average Iranian. Corruption, a lack of transparency, and other issues make Iran’s business environment challenging for investors. Foreign companies also risk incurring penalties from remaining US sanctions on Iran for terrorism and human rights violations. Unemployment increased slightly in 2016. Only 46% of Iranians believe the country’s economic situation is good as of March 2016, compared to 54% in May 2015. Hardliners question President Hassan Rouhani’s focus on foreign investment over domestic production.

Iran still has to overcome more US sanctions to resume trade with European nations. European and Asian conglomerates that would otherwise want to invest in the Iranian market do not know how to bypass many US sanctions which continue to extend to organizations and individuals having ties with the Iranian Revolutionary Guard Corps (IRG) which is aspiring to play a “bigger role” in the country’s economy, by some estimates, directly or indirectly control over 40% of Iran’s economy.

Since the 1979 Revolution, the rulers of the Islamic Republic of Iran have sought to lead Islamic world along with Saudi Arabia, dominate the West Asia region where Saudi Arabia is considered to be the leader. Since the Iran deal was signed by USA, peace has remained remarkably elusive as Iran considers the nuclear deal with western powers is an endorsement against Sunni nations while Saudi Arabia looks at it as promotion of Shiite nations by its ally USA. Not only Riyadh rejected Iran as an ally to pursue Islamic goals worldwide but treats as its enemy. So much so, today Saudi leadership considers Iran an enemy worse than Israel.

US officials, however, have insisted that Washington has complied with the nuclear deal. The Obama administration has reportedly sought to encourage Iran’s reintegration into global markets, hoping to solidify the deal and prevent it from unraveling under future administrations. On May 10, Secretary of State John Kerry told European businesses that they “should not use the USA as an excuse” for not doing business in Iran.

In the coming year, Rouhani may face even more pressure to prove that the deal has yielded the economic benefits that many Iranians anticipated. The IMF predicts that average inflation will drop from 15.1% in the 2015-2016 Iranian fiscal year to 11.5% in the 2016-2017 fiscal year.

Rouhani has courted foreign trade and investment, but Iran’s political factions have debated whether Iran should pursue greater foreign engagement at all. Others in the regime are more skeptical. Two thirds of Iranians surveyed in March supported greater economic engagement with the West, and reformists fared well in the spring 2016 parliamentary elections.

Saudi led GCC joins Israel against Iran

Israel and its cruel sponsors in the West believe occupational atrocities make history interesting. USA and Israel, as well as other colonialist nations are keen to retain their occupational posts held abroad. NATO terror wars in Afghanistan and Arab world have helped Israel prolong the occupational crimes in Palestine thus far, making its expansionist drives smooth as USA continues to back all crimes against humanity

Interestingly, Arab leaders now think anomalies make history interesting and thus they try to find a common non-vegetarian language. Saudi Arabs seems to be leading the anti-Islamic nations against Islamic faith. Interestingly, they also think they are doing the right thing. Maybe they hope all anti-Islamic nations become Islamic in due course. Millions of Muslims have been slaughtered by these anti-Islamic forces globally in their war on Islam and they relish the taste of Islamic blood.

Saudi for some mysterious reasons considers Iran its arch foe and opposes it and frames policies keeping in view Iran’s sidelining as its objective. Anti-Iranism has become too strong that Saudi government indeed treats Iran worse enemy than Israel and tries for a common platform to disgrace Iran. So much so anti-Islamic Israel emerges as Islamic Saudi’s strategic partner against Islamic Iran.

Funny Islamic leaders!

A simmer Sunni-Shiite cold war is on for quite some time and western world and Israel seeks to take full advantage of the clash of their common enemies in island. Arab world says that today Iran is posing a serious challenge to Saudi led Arab nations, as its proxy groups like Hezbollah in Lebanon and the Sadrist militias in Iraq have taken the fight beyond the capacity of Iranian government forces. In Yemen and Bahrain, groups funded from Tehran have been armed, funded and trained to challenge the Arab governments.

True, unlike Israel or even Saudi Arabia, Iran does not seek wars and, knowing the intricacies of regional crises, being accelerated by the US intervention, always goes for diplomatic resolution of crises and succeeded n averting all war situations. Iran has not changed its position on Palestine nation as it continues to support the Palestinians and their struggle for sovereignty.

Iran will have a presidential poll in June 2017. With elections due next year, the pressure on Rouhani’s government is likely to increase if the next US president follows in the footsteps of his predecessor to continue to play the “sanctions game.” Incumbent President Hassan Rouhani’s competitors are concerned that he and his allies will parlay their foreign policy achievements into electoral victories.

Iranian success in the nuclear deal depends on many factors. Nothing unusual in the flowery language coming from Western capitals about a new era of relations with Iran has some reality and justification because Iran and USA have begun viewing each other not as prime enemies as they had done for years now especially after the fall of Iraqi President Saddam Hussein, even during prolonged talks, notwithstanding all negative rhetoric emanating from Israel and elsewhere against the deal and new alignments.

The deal obviously weakened Israeli position and hold over US strategic lots. Having been isolated internationally already on genocides in Gaza and its regular threats of terror attacks on Iran, Israel will not be able to keep ignoring such a broad international engagement.

Now Zionists in Israel and USA understand that it must cope with a process of Palestine statehood that has started rolling and won’t be easily stopped. It must now position itself differently after the repeatedly failed US mediation and ahead of the practical part of the French initiative, as the French distributed in June the tasks to different working groups.

The UN Quartet report on the obstacles ahead of a two-state solution and the main themes to be tackled should be published without further delay and used as a main tool of work for the French initiative.

Observation

The debate on whether or not Iran gained from the nuclear deal with western powers is inconclusive but one is clear: Iran hasn’t lost the spot by signing the deal with US led powers. The deal appeared to be the only option for the time being as Israel is pushing for a terror attack on Iran and sought the US approval. The president, Many Iranian strategists believe, has been duped into accepting the deal and his failure to boost economy even after a year is an clear proof of the “West’s treachery”.

Iran’s expectation of a big boom in economy through “economic recovery” after the lifting of UN sanctions has not been realized yet. Iranians, although upset by this, still believe this deal is by far the best way for Tehran to end global isolation, recapture lost markets, diversify its foreign relations and win “the ideological war” Iran’s enemies in the Gulf have waged against it.

The situation for Iran’s moderate leadership is tricky. Not only does it have to deal with the still imposed US sanctions and mounting domestic pressure against the nuke-deal, but also the IRG, its own business interests and political hardliners in Iran.

Today, USA and Russia compete for arms sale in energy-cash rich West Asia. The West should recognize that any change in Iran will be gradual, best supported by implementing the nuclear accord, resuming trade, and diplomacy that balances Iranian and Arab interests in the Middle East. As its guardians try to quell the deal’s reverberations and preserve the balance of power, any attempt by Western countries to play politics within the Iranian system could well backfire. If world powers hope to progress on areas of concern and common interest, they must engage Iran as it is, not the Iran they wish to see.

The best option for Western states and Iran is to continue reversing the negative narratives from decades of suspicion and hostility by fully implementing the nuclear accord; creating discrete and non-politicized channels to address other issues of concern or common interest; and, eventually, pushing for regional security architecture that takes account of both Iranian and Arab interests. In the end, Iran and the West may not be able to agree on a range of issues, but trying to game the Iranian system will ensure that they will not.

Saudi Arabia needs to come to sense- earlier the better for it and Islam, though it might feel Islam should not have been born there so that their variety of capitalism and anti-Islamism can go on without any sense of shame or guilt. Because of Saudi attitude even ordinary Muslims, for their own reasons, are scared of criticizing anti-Islamism while badly suffering from Islamophobia.

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Middle East

China-Arab Relations: From Silk to Friendship

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China and the Arabs have a long and rich economic and cultural history, and this distinguished relationship still exists today, with a promising future. This bilateral relationship between the two nations is based on the principles of respect and non-interference in internal affairs or foreign policies. Therefore, China’s relationship with the Arabs as well as with other nations is unique and a model to be followed. If you meet a Chinese person, the first phrase will be “Alabo” or an Arab in Mandarin, and he/she will welcome you. The Chinese state’s dealings with its counterparts can be measured based on the model of this Chinese citizen. China deals with the Arabs on the basis of friendship and historical ties.

The history of Sino-Arab relations goes back to the Tang Dynasty, and these relations developed with the flourishing of trade between the two nations. Since China was famous for its high quality silk, this trade route was called the “Silk Road”. Baron Ferdinand Freiherr von Richthofen, better known in English as Baron von Richthofen, was a German traveller, geographer, and scientist. He is noted for coining the terms “Seidenstraße” and “Seidenstraßen” = “Silk Road” or “Silk Route” in 1877.

Chinese-Arab relations have developed in contemporary history. In 1930, China established official relations with the Arab Republic of Egypt and the Kingdom of Saudi Arabia. A library in China was named the “Fouad Islamic Library”, after the late Egyptian king, “Fuad the First”. In 1956, Egyptian President Gamal Abdel Nasser cut ties with China and established relations with the Communist People’s Republic of China and inaugurated an embassy in Egypt. In the same year, the Arab League established relations with the People’s Republic of China. By the year 1990, all Arab countries cut their relations with the Republic of China and established diplomatic relations with the People’s Republic of China.

In 2004, the China-Arab Cooperation Forum was established, and today it is considered a milestone for the Sino-Arab relationship. At its inauguration, Chinese Foreign Minister Li Zhaoxing delivered a speech stating:“The Arab world is an important force on the international scene, and that China and the Arab countries have enjoyed a long friendship. Our similar history, our common goals and our broad interests have been credited with enhancing cooperation between the two sides; no matter how the international situation changes, China has always been the sincere friend of the Arab world”. The China-Arab Cooperation Forum was officially established during the visit of Chinese President Hu Jintao to the headquarters of the League of Arab States in January of 2004.

Hu Jintao indicated at that time that the formation of the forum is a continuation of the traditional friendship between China and the Arab world. The Chinese president said at the time, “The establishment of the forum is conducive to expanding mutual cooperation in a variety of fields. He added that China had made four proposals; First, maintaining mutual respect, fair treatment and sincere cooperation at the political level. Second, strengthening economic and trade relations through cooperation in the fields of investment and trade, contracted projects, labor services, energy, transportation, communications, agriculture, environmental protection and information. Third, expand cultural exchanges. Finally, conducting training for the employees.”

During the second session of the forum in Beijing in 2006, China showed its sympathy for the issues of the Arab world and its interest in the peace process between Palestine and Israel, since China is a peace-loving country; it presented the idea of “a nuclear-free Middle East”. China is the best friend of the Arab countries today. Although some Arab countries have strong relations with the West whose policy does not match the Chinese policy, but all Arab countries agree on friendly and good relations with the People’s Republic of China.

The Arab citizen is not interested today in the foreign policy of the US, the deadly weapons of the US and Russia, or European culture, but rather the livelihood and economy, and this is what China provides through its wise economic policy. In 2013, Chinese President Xi Jinping launched the Belt and Road Initiative, or New Silk Road, which will restore glow to China-Arab relations; as the Arab world is in a strategic location on the initiative map. Thus, the Arab countries are an important partner for China in the initiative. Although the volume of trade exchanges between China and the Arab countries exceeded 200 billion US dollars, which increased 10 times over the past decade, there was no commercial and institutional arrangement to facilitate trade between the two sides.

China, as a peaceful and non-invasive country, aims to promote economic cooperation with Arab region on an equal basis because it considers the Arab world a historic partner. The historical experience of the Arabs with the Chinese through the Silk Road has confirmed that China differs from the nations of colonialism and imperialism, which consider the Arab region a place rich in natural resources only. In his historic speech at the Arab League, Chinese President Xi stressed that China will not seek to extend influence and search for proxies in the Middle East. The Chinese initiatives will contribute to establishing security and stability through economic development and improving the people’s livelihood, in line with the post-2015 development agenda and the aspirations of the Arab people for a better life, as the Chinese experience proves that development is the key to digging out the roots of conflicts and extremism in all its forms.

China is a neutral country and does not favor the use of violence. During the Syrian crisis, for example, the Chinese envoy to the Security Council raised his hand three times, meaning that China, with its wise diplomacy, supported the Syrian regime without entering the military war. During the recent Chinese military parade, Chinese President Xi Jinping revealed some Chinese military capabilities and thus sent a message to the enemies that China will always be ready if a war is imposed on it, and a message of support to China’s allies. The Arab region today needs a real partner who possesses economic and military power and international political influence, such as China; to ensure the success of the Belt and Road Initiative, and to consolidate the China-Arab relations and raise it to the level of a strategic alliance.

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Middle East

The analysis of developments in relations between Turkey and Israel

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The fear of Biden’s Administration, the concern over the Abraham Accords (see below), the positioning of the geopolitical status in the Middle East, and the safeguarding of interests in Israel are the main factors through which Turkish President Recep Tayyip Erdoğan seeks to improve relations with Israel which, however, he connects to the Palestinians.

The statements made by Turkish President Erdoğan’s on developments in relations with Israel have confirmed media reports of his repeated attempts to reach an understanding on several controversial issues, as well as paving the way for the re-establishment of diplomatic relations. The statements made by President Erdoğan, as well as other Turkish officials, have stressed the connection between the change in Turkish-Israeli relations and Israel’s policy towards the Palestinian issue.

The “linking principle” connecting the two issues has been a key factor in Turkish foreign policy since the 1950s, and it operates in the range between words and deeds, which at times have also led to severe crises in the relations between the two countries.

At the time Turkey opposed the partition plan, but recognised Israel and maintained diplomatic relations with it. Relations were suspended after the second Arab-Israeli war in 1956, when Turkey recalled its diplomatic representative from Tel Aviv, announcing he would not return there “until a just solution to the Palestinian issue was found in accordance with UN Resolutions”.

After rising to power, President Erdoğan has developed the aforementioned “linking principle”. Against the backdrop of Israel’s actions with the Palestinians, Turkey has increased its political and economic support for its Muslim brethren and caused crises.

President Erdoğan’s recent statements have been made against the backdrop of this policy: on the one hand, the Turkish President has expressed his country’s desire to improve relations with Israel and continue intelligence cooperation; on the other hand, he has maintained that Israel’s treatment of the Palestinians is “unacceptable”.

It is important to note that Turkey will not relinquish the “linking principle”, which differs from the principle of the new Arab normalisation, based on the separation between the Palestinian issue and relations with Israel. The so-called Abraham Accords, such as the recognition of the State of Israel by the United Arab Emirates in September last year: the third Arab country to formally recognise Israel, after Egypt and Jordan; the fourth one if we considers Mauritania’s “frozen” recognition.

The policy implemented by President Erdoğan is not only shaped by foreign relations, but is also a Turkish internal issue in which public opinion plays a key role. It seems that until elections are held in Turkey (scheduled for June 25, 2023), there will be no complete normalisation with Israel. The majority of the Turkish population supports the Palestinians and their rights, feels full solidarity for them and opposes the Israeli presence.

Moreover, President Erdoğan regards the Palestinian issue as an important factor in building a renewed Turkish Muslim national identity. These stances increase his popularity and strengthen people’s support for him and his party, as well as his authority and prestige in the Muslim world.

At the same time, however, this policy also has pragmatic implications: President Erdoğan is not severing ties with Israel, but merely creating actions that lead to symptoms of “diplomatic” crises.

Despite this wait-and-see attitude, economic ties between Turkey and Israel are flourishing. According to official data, in 2018 exports from Turkey to Israel were worth 6.5 billion dollars and imports 1.9 billion dollars (excluding diamond trade and tourism).

Following the crisis in relations and the expulsion of the Israeli Ambassador from Turkey (May 2018), exports had fallen to 4 billion dollars in 2019 and imports to 1.7 billion dollars. Although declining, there are still deep economic ties.

Trade relations, however, are not the decisive factor in determining the nature of Turkey-Israel relations. There are four issues that are believed to have led Turkey to review its relations with Israel:

1. Turkey has welcome the new U.S. President, Joe Biden, with caution and fear that he will oppose Turkish activities in the region. The U.S. leader may also be very tough on security, armaments and minority rights in Turkey. Some believe that improved relations with Israel will calm down the situation with President Biden, and the U.S. Congress and the Zionist lobby will be able to contribute to this result. It is not known, however, whether Prime Minister Benjamin Netanyahu will be as good a mediator with Biden as he was with Donald Trump.

2. Turkey is seeking to remove the isolation imposed on it due to the distribution of marine economic zones in the Eastern Mediterranean area, and is trying to bring Israel on its side to develop a joint stance and oppose such subdivisions. According to Israeli sources, Turkey has made Israel a generous offer to expand its area of control over the marine economic zones, in exchange for Turkey’ siding with Greece, Cyprus and Egypt. Israel has reacted cautiously, both because it much weighs President Erdoğan’s intentions and because it is actually interested in strengthening its relations with the above stated countries.

3. Turkey is worried about the Abraham Accords for normalisation with Israel, particularly the aforementioned one with the United Arab Emirates, and Turkey aims at limiting their influence and status as a further “undertaking” of Arab rivals. Turkey endeavours to dismantle a rising alliance between the Arab countries and Israel. After all, we wonder why Turkey is not instead trying to improve its ties with Arab countries to achieve the same goal. Could it still be because of history and traditional mutual dislike?

4. Turkey is trying to relieve the pressure on its activities in Israel and Palestine as a result of the possible improvement in relations with Israel. Turkey funds important projects in Jerusalem and Israel is trying to contain and restrain it. Conversely, an improvement in Israeli-Turkish relations could release the Israeli brake.

To date, no official Israeli response has been provided to Turkish statements. Israel’s media speak of suspicion and coldness in response to the Turkish rapprochement, with fears that President Erdoğan is preparing a ploy, a trick aimed not at improving his relations with Israel, but at sabotaging Israel’s relations and contacts with other countries.

However, leaks from senior Israeli officials indicate that their country has set conditions for restoring relations, which include ending Turkey’s ties with Hamas and transferring Turkish projects to Jerusalem through Israeli channels, as well as abstaining from voting against Israel in international organisations and adopting a balanced position between Israel and the Palestinians.

It is not yet clear what the fate of Turkey-Israel relations will be in the coming months, with President Biden in the White House and after the Israeli elections held on March 23, 2021. It is important to note, however, that Turkey will not give up the “linking principle”, which differs from the new principle of Arab normalisation, based on the separation between the Palestinian issue and relations with Israel.

The Turkish “linking principle” is a real need for Turkey- hence the Palestinian leadership must work with Turkey to maximise common goals, especially with regard to Jerusalem, the Al-Aqsa Mosque and Gaza.

Not easy steps to make, but not impossible either.

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Middle East

The Exceptionality of the Hashemite Rule in Jordan

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In the tumultuous politics of the Middle East, the Hashemite Kingdom of Jordan has traditionally steered a cautious and successful course in international relations. This course largely relies on a multidimensional foreign policy and the cementing of relations with regional and western countries. Jordan is a valuable strategic partner of the United States and the European Union in the heart of the Middle East. Amman’s strategic role is reflected in the military cooperation and joint global counterterrorism operations including as a member of the Global Coalition to Counter ISIS and in meeting the overwhelming humanitarian needs of more than 1.5 million Syrian refugees.

Jordan is also a pragmatic neighbor of Israel. The 1994 Jordan-Israel peace treaty has enabled water sharing arrangements between the two countries, security cooperation, Jordanian overflight of Israeli territory, and the conduct of joint Israel-Jordan exercises to respond to natural disasters. A representative case was the 2004 joint exercise to counter environmental effects of pollution in the Red Sea. The peace treaty has notably provided the context for enhanced economic, trade and tourism ties.

The kingdom has also served as honest broker in Palestinian-Israeli peace efforts in support of the two-state solution, always abiding with the late King Hussein’s principle that “Jordan should not be, cannot be, will not be a substitute for the Palestinians themselves as the major aggrieved party on the Arab side in a process that leads to peace”. Amman has served as credible intermediary for Israel and the Palestinians to suspend tensions at multiple occasions like for example in the old city of Jerusalem, particularly at the Temple Mount/Haram Al-Sharif where the kingdom pursues a successful administration of religious funded schools favoring moderate religious education and religious tourism. Jordanian moderation guarantees co-existence of the three monotheistic religions in Jerusalem at a time when on the contrary, counties like Turkey funnel millions of dollars in charity projects in Jerusalem promoting extreme Islamic ideologies.

Reform Programs and Initiatives

Jordan’s moderation stems from the Hashemite rule that has confronted internal and external challenges maintaining stability that is conducive to national, and western interests for the region. The exceptionality and uniqueness of the Hashemite rule derives from its historical legacy, modernity, direct descendant of Prophet Mohammed and its posture as vanguard of reforms. Among significant reform initiatives was the “Jordan First-Al Urdun Awlan” campaign of 2002-2003, that articulated a comprehensive vision of economic and political reforms. The initiative provided the formation of a national committee to deal with different economic and political issues that ultimately led to the introduction of a parliamentary quota for women and the enactment of anti-corruption measures.

A blueprint for political, economic, and social reforms was provided by the 2005 Jordanian National Agenda that approached the reform process in a holistic, rather than a piecemeal, way. Its findings produced the “We Are All Jordan-Kulna al Urdun” document. The document was a clear attempt at political reform and selected a list of fifteen priorities that paved the way for significant legislative initiatives. A prominent initiative was the enactment of an anti-corruption law that established an anti-corruption committee with broad powers and included in its definition of corruption actions related to nepotism (wasta).

An additional reform program is the Jordan 2025 National Vision and Strategy” launched in 2014that provides for economic reforms through policies and measures that aim at sustainable economic growth, support of small and medium-sized businesses, women’s participation in the labour market, financing mechanisms for public projects (PPP partnerships) and public investments on health, education and food security, digital economy, and green infrastructure. The coronavirus pandemic however has hit hard the kingdom’s economy to such an extent that economic reform initiatives are expected to bear fruits at a later stage taking into consideration the current global economic downturn considered to be the worst since the Great Depression. Jordan’s Gross Domestic Product (GDP) contracted in 2020 by 2.3 percent after growing 2 percent in 2019 due to losses in state revenues because of fewer remittances and a weakened tourism market.

To cope with the direct negative effects of the pandemic on its state budget, Jordan received $396 million from the International Monetary Fund (IMF) in May 2020 in the form ofemergency assistance. The amount of finance was specifically funneled to address the kingdom’s balance of payments needs and allow for higher spending on healthcare, and assistance to households and companies most affected by the pandemic. Despite that the IMF provided in March 2020 another multi-year $1.3 billion loan package to Jordan, the pandemic has caused at least a $1.5 billion shortfall in its balance of payments.

Modernization and Democratization

The Hashemite exceptionality legitimizes and ensures viability of rule over Jordan that constitutes a model of a modern Arab democratic country.The Jordanian leadership has taken over the last decade practical steps to unleash a deep political reform process to reflect Jordan’s vision of comprehensive reform, modernization, and development. Chief among reform measures was the introduction of a new constitution that came into force in 2011 and included amendments to 42 constitutional articles. Most prominent was the establishment of a constitutional court and an independent elections oversight commission, and the provision that the dissolution of the parliament entails the dissolution of the government. A major concession was also the curtailing of some of the King’s powers with most representative, the revoke of his power to cancel parliamentary elections. It is also noteworthy that the Jordanian leadership initiated in 2013 the Democratic Empowerment Programme called “Demoqrati” under the umbrella of the King Abdullah II Fund for Development, with the aim to instil the principles of active citizenship and empower individuals and democratic institutions.

In practical terms, the kingdom has demonstrated effectiveness and respect of democratic processes when, despite the pandemic, Amman proceeded with holding parliamentary elections in 2020. A recent poll conducted by the Centre for Strategic Studies at the University for Jordan in mid-March 2021 showed that 36% of Jordanians trust the current parliament, and 38% trust their electoral district parliament representatives, which constitutes the highest percentage of trust given to the parliament since 2014. The election of 100 new parliament members in the current House of Representatives guarantees renewal of political representation that is one of the main pillars of democracy. Elections were held in Jordan in a timely manner enhancing democratic governance and institutions. Jordanian elections were held in accordance with constitutional provisions when on the contrary at least 41 countries and territories around the world postponed national elections and referendums using the pandemic as a pretext according to data released by the Stockholm-based International Institute for Democracy and Electoral Assistance.

Overall, Jordan’s Hashemite leadership has unleashed a multidimensional reform process throughout the years that reflects the kingdom’s vision of comprehensive modernization and development in a way that can be translated into realities on the ground and provide a blueprint for a better future, not only for Jordanians, but for the people of the region.

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