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The Iranian elections for the new President

Giancarlo Elia Valori

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] T [/yt_dropcap]he outgoing President of the Islamic Republic of Iran, Hassan Rouhani, won re-election in the first round by garnering over 56% of the vote. Rouhani won with 14,619,848 votes on a total number of voters equal to 25,966,729 accounting for 53,6% of total votes.

The difference between the two figures is related to the so-called panachage, namely voting for candidates from different parties instead of those from the set list of a party, and the votes cast for his regional lists.

However, the main loser is Ebrahim Raisi, an eminent cleric of the Shiite clergy.

In addition to Raisi, the other challengers – initially 1,636 candidates had decided to run for election, but they were soon reduced to six, after the vetting and approval of the Guardian Council – were Mohammad Bagher Ghalibaf, the mayor of Tehran who dropped out of the race before the opening of the polling stations; the former Minister of Culture, Mostafa Agha Mirsalim; the former vice-President of the Republic, Mostafa Hashemitaba, and the current vice-President, Eshaq Jahangiri.

They are complex and, anyway, remarkable figures: besides being mayor of Tehran, Ghalibaf was Chief of Police from 2000 to 2005 and formerly Commander of the Revolutionary Guards’ Air Force from 1997 to 2000.

Qalibaf holds a Ph. D. in political geography and was also Managing-Director of Khatam al-Anbia, an engineering firm directly owned and controlled by the Pasdaran, namely the Iranian Revolutionary Guards.

He had run also in the previous presidential elections, but his project – today as at that time – was to federate all conservative oppositions under his leadership and propose the creation of the Ministry for Foreign Trade.

Proposing a new Ministry to solve a problem is never the right solution.

Subjecting foreign policy to the economy is his most common trait, even in the propaganda of his group, namely the “Progress and Justice Population of Islamic Iran”.

Mostafa Mirsalim got only 1.17% of the votes.

He studied and had a long professional career as an engineer in France. He returned to Iran at the outbreak of Khomeini’s Islamic Revolution, thus becoming Chief of the National Police in 1979. He was proposed by the then President Banisadr as a candidate for Prime Minister as a compromise candidate acceptable to both Banisadr and the Majilis, namely the Parliament, dominated by the Islamic Republican Party.

A political story halfway between the pro-Western “Shiite Republic”, the offspring of Banisadr and the nationalistic-modernizing thrusts present in the 1979 revolution, and the identity-based and Shiite restoration – all the more so that Mirsalim was later adviser to Ali Khamenei for long time.

He served as Minister of Culture and Islamic Guide from 1994 to 1998. His tenure was characterized by a strongly conservative Islamist direction, aiming to stave off the “cultural onslaught of Western culture” in Iran. He was later appointed to the Expediency Discernment Council, a body set up to resolve differences or conflicts between the Council of Experts and the Parliament.

Besides being vice-President, Hashemitaba is Minister of Industries and Head of the Iranian Olympic Committee.

He is described as having “centrist” views – as we would say in the West – and he is co-founder of the “Executives of Construction Party”, a grouping   linked to Rafsanjani.

During the election campaign Hashemitaba focused mainly on environmental protection and agricultural reform.

Jahangiri was the first vice-President of Rouhani’s government and also served as Minister of Industries and Mines between 1997 and 2005 under President Khatami. Formerly he had been Governor of Isfahan Province and a member of Parliament for two terms.

He graduated in physics and later also acquired a Ph. D. in Business Management.

Having garnered many reformist votes in the 2013 elections, he decided to run again for Presidency, in connection with the area close to Rafsanjani, Khatami and to the current winner of the election.

Raisi is a Shiite cleric, as well as custodian and Chairman of the Astan Quds Razavi foundation, the Bonyad or autonomous charitable foundation managing the Imam Reza shrine in Mashhad – a foundation worth 210 billion US dollars a year.

Raisi served in several positions in Iran’s judicial system and is also a member of the Assembly of Experts from South Khorasan Province.

He run for Presidency in the 2017 elections as leader of the “Popular Front of Islamic Revolution Forces”, a recent alliance founded in 2016 by twenty-five groups of the conservative spectrum.

Since 1979, however, all Iran’s Presidents have been re-elected and Rouhani can boast two clear successes: inflation, which has fallen from 40% to 10%, and the GDP growth, which is currently equal to + 4.6%.

For the re-elected President the current problematic issues are above all the P5 + 1 agreement, which has been implemented only partially and with the old sanctions still largely in place, as well as the new tension with President Trump, who aims at playing the Sunnis off against the Shiites for a possible new conflict marginalizing Iran. Finally another problematic issue is Iran’s strategic stability, with conflicts in Khuzestan and attacks on Pakistan’s border.

Hence the cards Raisi could play during the electoral campaign were precisely security, the Shiite national and religious unity, as well as the sense of defeat looming large on Iran considering the probable future failure of the P5 + 1 nuclear agreement.

Hence, in a country where the average age is 31 and over 50% the population was born after the 1979 Islamic Revolution, young voters have not chosen the identity-based, nationalistic and anti-Western platform of Raisi, a man of Khamenei and his likely successor as Supreme Leader.

At electoral level, the struggle was between the front supporting continuity of relations with the West and the front of close-mindedness, which is witnessing Trump’s new policy in the Middle East.

An old-fashioned policy aiming at confrontation with Iran managed by   the Sunnis and Israel, with a likely “small war” between Israel and Hezbollah in the coming months and a major clash between Iran and Saudi Arabia in the coming years.

It is no coincidence that during the electoral campaign Raisi criticized the cutting down to size of the Iranian nuclear system and pointed an accusing finger at “Westerners’ untrustworthiness”.

As already said, however, Rouhani can boast his economic achievements: in addition to the data and statistics already reported, the “reformist” presidential system (indeed, we still use these silly definitions) has led economic growth to 12.5% and has reduced youth unemployment to 30%.

The outgoing President showed some signs of weakness last Sunday when the presidential car was stoned by angry miners due to an accident that had killed 42 of their workmates. However, one-third of the Iranian voters live in cities where Rouhani is still very popular and where the electoral turnover is 40%.

In smaller cities, where the Shiite clergy is still very powerful, the electoral turnover rises to 90% and tends to favour the religious and conservative right parties.

The Revolutionary Guards, which are partly a group of conscripts, have certainly favoured Raisi, but this does not necessarily mean that the policy line, based on anti-Western and revolutionary purity and opposed to the JCPOA nuclear agreement, is fully shared by the Pasdaran.

On their press they have already defined Raisi as “Ayatollah” and there are pictures of Iranian soldiers in Syria who praise the cleric of Mashhad. Meanwhile, however, Rouhani has included many members of the intelligence services in his staff and has “purged” many elements coming from the Pasdaran.

Khamenei has strongly favoured Raisi, also during the election campaign, but here the real issue is another: what is the electoral and economic value of the JCPOA and can it solve Iran’s productive and hence political crisis?

The Conservatives, who, in some of their regions – like it or not – have accepted the P5 + 1 and the JCPOA agreement are posing one single question: while it largely solves our economic problems, what is the cost of the lack of security resulting therefrom?

Moreover, if the agreement had no decisive impact on the Iranian economy, only the geopolitical and strategic damage to its security would remain.

Nevertheless, apart from the fact that paradoxically the Revolutionary Guards’ companies have much benefited from the JCPOA, the real problem is the natural and obvious low pace of its effects on the Iranian economy.

In the six months following the signature of the nuclear agreement, Iran regained access to 4.2 billion US dollars of frozen funds abroad and increased its exports by approximately 7 billion US dollars.

Again in the period following the JCPOA agreement, oil exports increased by 400,000 barrels/day, with 5 billion US dollars of revenue gains.

Moreover the government’s economic plan, voted early this year, envisages 30 billion new foreign investment, as well as other foreign direct investment and domestic investment, while it is worth noting that only 4 billion US dollars were available for investment at the time of sanctions.

It should also be recalled that Iran has acquired a 2.8% shareholding of the Asian Infrastructure Investment Bank.

Banks, however, are the real weak point of Iran’s economic system.

The central bank’s scarce liquidity – for obvious anti-inflationary reasons – many non-performing loans, non-homogeneous banking practices, corruption and, in short, a banking system which remained isolated from the rest of the world for many years and currently has no longer the faintest idea of the extent to which finance and banking have changed.

Just think that in 2012 all the thirty Iranian banks were disconnected from SWIFT, and still today, after the partial lifting of sanctions, many Iranian credit institutions face difficulties in using the system of the Society for Worldwide Interbank Financial Telecommunications.

Furthermore, for the sole purpose of upgrading the extractive industry, Iranian experts deem it necessary to invest over 100 billion US dollars.

Hence, if it goes on like this, amidst objective difficulties and the Saudi and Sunni rearmament, the Iranian population who, according to opinion polls, initially strongly supported the JCPOA (42.7%) will see its enthusiasm dampen, as is currently the case (22.3%).

27% of the Iranian population thinks that Rouhani’s bad management is one of the causes of the economic crisis, while 45% of the Iranian population blames the external conditions that are not under the new President’s direct control.

Furthermore, the increase in oil exports has been largely neutralised by the fall in the oil barrel price.

The non-oil Iranian product, however, will rise by less than 3% a year, while Rouhani’s primary goal is to cut inflation – hence he will not support the State’s deficit spending, which is largely direct or hidden welfare.

Hence, at mass level, the psychological and propaganda mechanism which has emerged in the presidential election is increasing pessimism about the JCPOA economic effects and the feeling of strategic weakness in the face of new threats to Iran’s security, over and above mistrust of the way in which the West seems to want to do everything to destabilize, marginalize and impoverish the Iranian people.

Rouhani has found the Iranian masses still relatively optimistic about economic growth and Iran’s opening to the rest of the world, but if this did not happen the Conservatives would regain power quickly.

The question is rhetorical: hence, what is in our interest, both in Italy and in Europe?

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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“Today Saudi Arabia finally lost the war on Yemen.”

Eric Zuesse

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On August 17th, an anonymous German intelligence analyst who has perhaps the world’s best track-record of publicly identifying and announcing historical turning-points, and who is therefore also a great investigative journalist regarding international relations (especially military matters, which are his specialty) headlined at his “Moon of Alabama” blog, “Long Range Attack On Saudi Oil Field Ends War On Yemen”, and he opened:

Today Saudi Arabia finally lost the war on Yemen. It has no defenses against new weapons the Houthis in Yemen acquired. These weapons threaten the Saudis economic lifelines. This today was the decisive attack:

Drones launched by Yemen’s Houthi rebels attacked a massive oil and gas field deep inside Saudi Arabia’s sprawling desert on Saturday, causing what the kingdom described as a “limited fire” in the second such recent attack on its crucial energy industry.  …

The Saudi acknowledgement of the attack came hours after Yahia Sarie, a military spokesman for the Houthis, issued a video statement claiming the rebels launched 10 bomb-laden drones targeting the field in their “biggest-ever” operation. He threatened more attacks would be coming. 

New drones and missiles displayed in July 2019 by Yemen’s Houthi-allied armed forces

Today’s attack is a check-mate move against the Saudis. Shaybah is some 1,200 kilometers (750 miles) from Houthi-controlled territory. There are many more important economic targets within that range.  …

The attack conclusively demonstrates that the most important assets of the Saudis are now under threat. This economic threat comes on top of a seven percent budget deficit the IMF predicts for Saudi Arabia. Further Saudi bombing against the Houthi will now have very significant additional cost that might even endanger the viability of the Saudi state. The Houthi have clown prince Mohammad bin Salman by the balls and can squeeze those at will.

He went on to say that the drones aren’t from Iran but are copies from Iran’s, “assembled in Yemen with the help of Hizbullah experts from Lebanon.”

He has been predicting for a long time that this war couldn’t be won by Crown Prince Mohammed bin Salman al-Saud (MbS). In the present report, he says:

The war on Yemen that MbS started in March 2015 long proved to be unwinnable. Now it is definitely lost. Neither the U.S. nor the Europeans will come to the Saudis help. There are no technological means to reasonably protect against such attacks. Poor Yemen defeated rich Saudi Arabia.

The Saudi side will have to agree to political peace negotiations. The Yemeni demand for reparation payments will be eye watering. But the Saudis will have no alternative but to cough up whatever the Houthi demand.

The UAE was smart to pull out of Yemen during the last months.

If he is correct (and I have never yet found a prediction from him turn out to have been wrong), then this will be an enormous blow to the foreign markets for U.S.-made weapons, since the Sauds are the world’s largest foreign purchasers of those, and have spent profusely on them — and also on U.S. personnel to train their soldiers how to use them. So (and this is my prediction, not his), August 19th might be a good time to sell short U.S. armament-makers such as Lockheed Martin.

However: his prediction that “the Saudis will have no alternative but to cough up whatever the Houthi demand” seems to me to be the first one from him that could turn out to have been wrong. If the Sauds have perpetrated, say, $200 billion of physical damage to Yemen, but refuse to pay more than $100 billion in reparations, and the Housis then hit and take out a major Saudi oil well, isn’t it possible that the Sauds would stand firm? But if they do, then mightn’t it be wrong to say, at the present time, that: “Today Saudi Arabia finally lost the war on Yemen.”? He has gone out on limbs before, and I can’t yet think of any that broke under him. Maybe this one will be the first? I wouldn’t bet on that. But this one seems to me to be a particularly long limb. We’ll see!

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The message behind the release of Iranian oil tanker

Mohammad Ghaderi

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The Gibraltar court ordered the Iranian oil tanker Grace 1 to be released. The tanker was seized by the British Royal Marines about a month ago. 

This verdict was the ending of an elaborate game designed by John Bolton National Security Advisor of the United States and Mike Pompeo, carried out by the Britain government. 

With seizing the tanker, Bolton was trying to put psychological and political pressures on Iran and force other countries to form a consensus against Iran, but he couldn’t fulfill any of these goals. 

Iran’s firm, logical and wise answer to the seizure of Grace 1 (like making solid legal arguments) and the seriousness of our country’s armed forces in giving a proper response to Britain’s contemptuous act, made the White House lose the lead on reaching its ends. 

Washington imagined that the seizure of Grace 1 will become Trump’s winning card against Iran, but the release of the tanker (despite disagreement of the U.S.) became another failure for the White House in dealing with Iran.  

Obviously, London was also a total loser in this game. It is worth noting that U.S. was so persistent about keeping the oil tanker in custody that John Bolton traveled to London and insisted on British officials to continue the seizure of the ship. Their failure, however, clearly shows that the White House and its traditional ally, Britain, have lost a big part of their power in their relations with Iran. 

Clearly, the illegal seizure of the Iranian oil tanker by Britain proceeded by the seizure of a British tanker by Iran and the following interactions between the two countries is not the whole story and there is more to it that will be revealed in coming days. 

What we know for sure is that London has to pay for its recent anti-Iran plot in order to satisfy Washington; the smallest of these consequences was that Britain lost some of its legal credibility in international arena as it illegally captured an Iranian oil tanker. 

The order of the Gibraltarian court revealed that London had no legal right to seize the Iranian oil tanker and nobody can defend this unlawful action. Surely, Iran will take all necessary legal actions to further pursue the matter.  

In this situation, the Islamic Republic of Iran is firm on its position that it doesn’t have to follow the sanctions imposed by the European Union on other countries (including Syria). 

No entity can undermine this argument as it is based on legal terms; therefore, Iran will keep supporting Syrian nation and government to fight terrorism. This is the strategic policy of the Islamic Republic and will not be changed under the pressure or influence of any other third country. 

Finally, it should be noted that the release of Grace 1 oil tanker was not only a legal and political failure for Washington and London and their allies but it was also a strategic failure. Undoubtedly, the vast consequences of this failure will be revealed in near future. 

From our partner Tehran Times

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Business and boxing: two sides of the same coin

Dr. James M. Dorsey

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What do a planned US$15 billion Saudi investment in petroleum-related Indian businesses and a controversial boxing championship have in common?

Both reflect a world in which power and economics drive policy, politics and business at the expense of fundamental rights.

And both underscore an emerging new world order in which might is right, a jungle in which dissenters, minorities and all other others are increasingly cornered and repressed.

Rather than furthering stability by building inclusive, cohesive societies both support trends likely to produce an evermore unstable and insecure world marked by societal strife, mass migration, radicalization and violence.

A world in which business capitalizes on decisions by a critical mass of world leaders who share autocratic, authoritarian and illiberal principles of governance and often reward each other with lucrative business deals for policies that potentially aggravate rather than reduce conflict.

No doubt, the planned acquisition by Saudi Arabia’s state-owned national oil company Aramco of 20 percent of the petroleum-related businesses of Reliance Industries, one of India’s biggest companies, makes commercial and strategic economic and business sense.

Yet, there is equally little doubt that the announcement of the acquisition will be read by Indian prime minister Narendra Modi, days after he scrapped the autonomous status of the troubled, majority Muslim region of Kashmir, as a license to pursue his Hindu nationalist policies that discriminate against Muslims and other minorities and fuel tensions with Pakistan, the subcontinent’s other nuclear power.

The ultimate cost of the fallout of policies and business deals that contribute or give license to exclusion rather than inclusion of all segments of a population and aggravate regional conflict could be far higher than the benefits accrued by the parties to a deal.

Underscoring the risk of exclusionary policies and unilateral moves, cross border skirmishes between Indian and Pakistani forces erupted this week along the Kashmiri frontier in which at least five people were killed.

The timing of the announcement of the Aramco Reliance deal in a global environment in which various forms of racism and prejudice, including Islamophobia, are on the rise, assures Indian political and business leaders that they are unlikely to pay an immediate price for policies that sow discord and risk loss of life.

Like in the case of Saudi and Muslim acquiescence in China’s brutal clampdown on Turkic Muslims in the troubled, north-western Chinese province of Xinjiang, the most frontal assault on a faith in recent history, the announcement risks convincing embattled Muslim minorities like the Uighurs, the Kashmiris or Myanmar’s Rohingya who are lingering in refugee camps in Bangladesh that they are being hung out to dry.

To be sure, Kashmiris can count on the support of Pakistan but that is likely to be little more than emotional, verbal and political.

Pakistan is unlikely to risk blacklisting by the Financial Action Task Force (FATF), an international anti-money laundering and terrorism finance watchdog, at its next scheduled meeting in October by unleashing its anti-Indian militants.

Anthony Joshua’s controversial fight with Andy Ruiz scheduled for December in Saudi Arabia, the first boxing championship to be held in the Middle East, pales in terms of its geopolitical or societal impact compared to the Saudi Indian business deal.

Fact is that Saudi Arabia’s hosting of the championship has provoked the ire of activists rather than significant population groups. The fight is furthermore likely to be seen as evidence and a strengthening of Crown Prince Mohammed bin Salman’s selective efforts to socially liberalize the once austere kingdom.

Nonetheless, it also reinforces Prince Mohammed’s justified perception that Saudi Arabia can get away with imprisoning activists who argued in favour of his reforms as well as the lack of transparency on judicial proceedings against the alleged perpetrators of the killing of journalist Jamal Khashoggi in the Saudi consulate in Istanbul. Saudi Arabia insists the killing was perpetrated by rogue operatives.

What Saudi investment in India and the scheduled boxing championship in the kingdom have in common is that both confirm the norms of a world in which ‘humane authority,’ a concept developed by prominent Chinese international relations scholar Yan Xuetong, is a rare quantity.

Mr. Yan employs the concept to argue without referring to President Xi Jinping, Xinjiang, China’s aggressive approach towards the South China Sea or its policy towards Taiwan and Hong Kong that China lacks the humane authority to capitalize on US President Donald J. Trump’s undermining of US leadership.

Mr. Yan defines a state that has humane authority as maintaining strategic credibility and defending the international order by becoming an example through adherence to international norms, rewarding states that live up to those norms and punishing states that violate them. Garnering humane authority enables a state to win allies and build a stable international order.

Mr. Yan’s analysis is as applicable to India and Saudi Arabia as it is to China and others that tend towards civilizational policies like the United States, Russia, Hungary and Turkey.

It is equally true for men like Anthony Joshua promoter Eddie Hearn and business leaders in general.

To be sure, Aramco is state-owned and subject to government policy. Nonetheless, as it prepares for what is likely to be the world’s largest initial public offering, even Aramco has to take factors beyond pure economic and financial criteria into account.

At the end of the day, the consequence of Mr. Yan’s theory is that leadership, whether geopolitical, economic or business, is defined as much by power and opportunity as it is by degrees of morality and ethics.

Failure to embrace some notion of humane authority and reducing leadership and business decisions to exploiting opportunity with disregard for consequences or the environment in which they are taken is likely to ultimately haunt political and business leaders alike.

Said Mr. Yan: “Since the leadership of a humane authority is able to rectify those states that disturb the international order, the order based on its leadership can durably be maintained.”

What is true for political leaders is also true for business leaders even if they refuse to acknowledge that their decisions have as much political as economic impact.

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