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Reconstruction in Syria

Giancarlo Elia Valori

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From the beginning, for Turkey the war in Syria has been a “domestic” problem- albeit not entirely so.

 For the West, it has been an opportunity to hurt a Russian ally, but it has failed, thus also making Syria become one of the areas for the strategic expansion of Shiite Iran. Giving ground to the enemy is a fundamental strategic mistake.

 Incidentally it seems that the Global Strategy is lost memory for the West – more or less like political economy is completely forgotten, faced with market fluctuations and Stock Exchange algorithms.

 On the one hand, however, at the beginning of the Syrian crisis, Erdogan aroused the pride of his nationalist voters while, on the other, he justified the increase in domestic prices and inflation with the vast Turkish operation in Syria.

 Two propaganda solutions for the same problem, i.e. the Turkish hegemony in Central Asia.

 Obviously, the primary goal of the Turkey led by the AKP – a party born of an old Muslim Brotherhood network – was to enter Syria to eliminate Assad’s Baathist power, with a view to replacing it with a clearly pro-Turkish regime.

 To this end, Turkey accepted the presence of “terrorists” and the Turkish military support for the Syrian jihad, and even the hidden support for the so-called “Caliphate”, with a view to stopping the expansion of Syrian-Iraqi Kurds and their connection – also at territorial level – to the Anatolian Kurds.

 That was the aim of the Operation “Olive Branch” that the Turkish Armed Forces carried out in early 2018.

 In that case, it was a matter of blocking the Kurdish administration of Afrin to prevent the Kurdish YPG from creating its own strategic and territorial continuity in Northern Syria, up to coming into contact with the Anatolian Kurds.

  The Turkish forces also moved many Turks to the area.

 Currently Turkey has three goals: the agreement with Russia for the future of Syria; the maintenance of Iran’s neutrality in Syria and in the rest of the region and even the internal stability of Bashar al-Assad’s regime.

 Erdogan would also like to have good relations with the United States, which is acting in Syria with ideas that are still very vague.

 Unfortunately, this currently holds true for many strategic players in Syria.

 After eight years of war, the World Bank has calculated that only material damage to houses and infrastructure is worth no less than 197 billion US dollars.

 A quarter of all Syrian houses has been destroyed, but it is estimated that the cost for returning to the status quo ante ranges between 300-400 billion dollars. The most pessimistic ones estimate it at 450 billion US dollars.

 We believe that currently the real cost is equal to 400 billion dollars. Assad’ Syrian forces and Syria’s inhabitants keep on discovering unknown disasters.

 Considering the amount of money needed, however, the only two external supporters of Assad’s regime, namely Russia and Iran, are not in a position to contribute to the Syrian reconstruction.

 Furthermore, the USA and the EU are not interested in funding Syria’s return to pre-conflict economic conditions, unless there is a “political transition”, i.e. unless Bashar al- Assad leaves power.

 The problem is that he has won with the help of Russia and Iran, while the West – with its infinite coalition – has lost. Who can send away who?

 Indeed, the US and European economic sanctions against Syria have become stricter in early 2019, and the country has a population of 13 million inhabitants, who urgently need support, aid, medicines and food.

 Hence the greatest humanitarian crisis since the Second World War, but both the USA and Germany, in particular, are only interested in ousting the “tyrant” Assad – possibly for recreating the jihadist void that Syria has just overcome and that the West would not know how to manage, regardless its being for or against.

 Currently the US sanctions impose a block on all exports to Syria or on any financial transactions involving Syrian entities.

 80% of those who need serious hospital care cannot be treated. There is a lack of doctors, drugs and hospitals.

 The sanctions also concern drugs and medical technologies, as well as all electrical, electronic, industrial and oil components.

 Even the simplest electrical devices and their spare parts are affected by sanctions.

 Given the new EU political configuration, however, Syria may receive some abstract political support, but certainly not tangible aid.

Here we can think of the Assembly of Hungarian nobles, to whom Marie Therese of Austria asked to support her war against Frederick II of Prussia who had invaded Silesia.

 “We will give our lives for the Queen, but not the oats for horses”.

China could certainly be a solution.

 To date, China has not shown particular interest in the matter, but it anyway participated in the meeting between 70 countries and international institutions, held in April 2017 for the reconstruction of Syria.

 However, China has not provided direct support to the  “tyrant” Assad, who anyway rescued his people and the West itself from the “sword jihad” which, from Syria, would spread everywhere in the Middle East and probably also to Eastern Europe.

 Meanwhile, between 2018 and 2019 China has already granted 2 billion to be invested in the Syrian industry.

  For 2019 and beyond, there are additional 23 billion granted by China through the Cooperation Forum between China and the Arab States.

 Obviously China does not want to be involved in the Middle East chaos. It has no interest in it.

 Syria, however, plays a significant role in the Belt and Road Initiative (BRI).

 Tripoli in the Lebanon has already been planned to be a BRI Special Economic Zone, considering that the Lebanese Tripoli port will be the basis for BRI transport to the whole East-Mediterranean region.

 In order to revitalize this port, China plans to build the Tripoli-Homs railway, while in October 2018 China already donated as many as 800 electricity generators to the city of Latakia.

 Another fundamental Syrian port.

 Back in 2017, China hosted the “First Trade Fair on Syrian Reconstruction Projects”, with the two aforementioned billion for Syrian companies and, above all, the tangible aid  for the reconstruction of over 150 Syrian companies.

 China is interested in the local Syrian companies that deal with steel and energy. Moreover, the China National Petroleum Corporation is already present in the shareholding structure of two of the largest Syrian oil companies, namely the Syrian Petroleum Company and Al Furat Petroleum.

 There is also a Chinese project for technological and training support to the Syrian Armed Forces.

  Furthermore, there is the Chinese automotive sector – a market that China shares with Iran.

 With a shrewd exchange between arable land and technology, Iran has already provided Syria with its mobile telephone network, as well as the management of some phosphate mines.

 All Iranian economic operations are made by leaders of the Revolutionary Guard and probably the Iranian military will call upon Chinese companies at the right time.

  One option for Assad could be the support – not yet politically mature, but certainly not impossible – of the United Arab Emirates and Saudi Arabia.

 The two powers of the Arabian peninsula are above all interested in limiting the power projection of Turkey and Qatar – the two main supporters of the opposition (and the jihad) against Bashar al-Assad – while they consider Iran’s control over Syria scarcely relevant from the economic viewpoint. At least for the time being.

 In late 2018, however, embassies were reopened in Syria, Bahrain and the Emirates.

 Furthermore, as can be easily imagined, manpower is lacking throughout Syria.

 Many people have migrated to the Lebanon, Jordan or Europe.

 Nevertheless, there is still a shortage of capital, which also leads to manpower shortage.

 From this viewpoint, Bashar al-Assad’s regime has developed a model of public-private partnership (PPP), which is almost the sole legal criterion for reconstruction.

 Decree No. 19,issued by President Assad in May 2015, lays down that the various administrative units, including governorates and municipalities, can establish their autonomous investment companies.

 In January 2016, Assad’s government enacted the Law on Public-Private Partnerships, which allows private companies to manage and develop all the public assets they hold or control.

 For example, the Governor of Damascus is the President of the company that is investing in the real estate sector of Basateem al-Razi, a district of the Syrian capital city.

Obviously the recourse to private individuals is not enough. The PPP systems are based mainly on bank loans. Nevertheless, certainly also the banks have not all the capital available for reconstruction at their disposal.

 According to the latest calculations, all Syrian banks have a reserve of 1.7 trillion Syrian pounds, equivalent to 3.5 billion US dollars. Hence the primary role will inevitably be played by donors, particularly the foreign ones.

 Obviously Russia, China and Iran, but there are also North Korea, Brazil and India – and we will soon see them at work.

 What about Iran, in particular? Iran has recently signed a Memorandum of Understanding for the construction of as many as 200,000 houses for civilian use in Damascus.

 Considering the US and EU policies, many transactions will be made outside the SWIFT system.

 The aforementioned system has two processors – one in the Netherlands and the other one in the USA – that work independently. Often the transactions will not take place in US dollars.

 Iran also wants to build a power plant in Latakia, while the Ayatollah regime still supports Bashar al-Assad with as many as 6 billion US dollars a year.

 If economic and military support are considered together, some analysts maintain that Iran’s transfers to Syria range between 15 to 20 billion US dollars a year.

  Furthermore, if there are credible links between Iran’s investments and Syria’s political attitudes, Iranian money will continue to flow.

 The Russian Federation has also carried out a strong lobbying activity for Syrian reconstruction, with a direct intervention by Chief of Staff Gerasimov vis-à-vis the United States.

 The response has been almost immediate: the political “transition”, i.e. Assad’s quick leaving the scene, is the prerequisite for funding.

 Assad, although having won against the jihad- often organized by Western allies – is now only guilty of having remained in power, instead of leaving Syria in the hands of Islamic terrorists, whom the West claimed it wanted to fight.

 It is strange that some worshipers of democracy stoop to this type of blackmail.

 After being contacted by Vladimir Putin in August 2018, Chancellor Merkel said she wanted to avoid a “humanitarian disaster” that has already been in place for some time. She also said, however, she didn’t want to participate in a reconstruction process in Syria led – like it or not – by the Syrian winner, namely Bashar al-Assad.

 The same was said by the French leaders. Good old days when, in a heavily-indebted Germany, Hjalmar Schacht, known as “Hitler’s banker” – a Jew and a Freemason, but anyway still free – created an investment bank in Munich to help the Middle East and Africa.

 Again in August 2018, Russia also put new pressure on Saudi Arabia, although the latter has certainly never been friendly to the Alawite and pro-Iranian regime in Syria.

 Certainly, even now Saudi Arabia does not want to bear the cost for Syria’s reconstruction.

 Obviously, the Saudi regime may see investments in Syria as an antidote to the Iranian presence, although nothing has been decided yet.

 Nevertheless, the forces within Mohammed bin Salman’s inner circle are not entirely opposed to a serious and heavy financial operation in Syria to definitively drive Iran away.

 A balance of threats and signals could make – possibly with the military protection of Russia, which certainly does not want a Shiite hegemony over Syria – part of Saudi funds reach Syria – not exclusive, but also alien to the West, which sees nothing else that the naive escape of the “tyrant”.

 The Libyan disaster was not enough for Westerners, who now want the escape of the Alawite and Baathist Syrian leader, although he has won.

What will happen later? Either the jihadist chaos, of which they believe they can take advantage to the detriment of Iran, or the Chinese penetration, which will certainly not be friendly to Western business.

 As already seen, the other financial option for Syria is China.

  China, however, will really take no action until the US troops move permanently from the Syrian region to the Far East.

 In January 2018 Russia signed a contract enabling its companies in the sector to exclusively exploit oil and gas fields under the direct control of Assad’s forces.

 The Syrian oil and gas reserves are, above all, in the North-Eastern regions, in areas controlled by the Syrian Democratic Forces in the hands of the YPG Kurds.

 Other Russian projects are the following: electricity generation in the Homs district; a new railway line connecting Damascus International Airport to the city centre and a series of manufacturing industries.

 The Russian entrepreneurial zeal has not even failed to upset Iran: Russia has “snatched” from Iran a fifty-year contract for the use of phosphates.

 Hence, for the time being, the Russian Federation has won the struggle for Syrian reconstruction, but then there will inevitably be also China. Later, if the West remains deaf – and maybe even silly – there will be nothing left for Syria, which will recreate the conditions for a new regional war that the West will certainly lose again.

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. “

Middle East

Iran regime’s Parliamentary elections and challenges facing it

Aladdin Touran

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Forty-one years have passed since the establishment of the Islamic Republic of Iran, and now the regime is entrenched in crises and facing a deadlock.

On the one hand, it faces crippling economic crises and severe budget deficits, and on the other hand, injustice and lack of freedom have turned the Iranian society into a powder keg that can explode at any moment.

According to information published by the main Iranian opposition movement, the National Council of Resistance of Iran (NCRI), in the nationwide Iran protests last November more than 1500 protesters were shot dead, while protests spread to more than 190 Iranian cities. The fact that these protests are continuing in 2020indicates that the Iranian regime’s crises are intensifying.

In the international arena, the regime is also in a very weak position. Its warmongering policies and nuclear and ballistic missile program are under the magnifying glass and pressure of the international community. U.S. sanctions have added to the regime’s crises and put it in a deadlock.

Solutions for the regime

The regime is in dire need of money to quell protests related to its failing economy. To get this money, it needs the U.S. to lift sanctions. The U.S. administration’s Maximum Pressure campaign left the regime with a dilemma of choosing between two courses of action:

It can either accept U.S. Secretary of State Mike Pompeo’s 12-point plan and conditions for normalization of relations, which would mean abandoning its nuclear and ballistic missile program and military interventions in other countries.

Or it can choose the path of contraction and confrontation. Which would require the regime to unify itself to be able to stand against the upcoming crises.

Review of the regime’s solutions

If the regime accepts all of a part of Pompeo’s 12-point plan, it would mean that the regime would end up negotiating at its weakest point. The “Death to America” chant will ring hollow. After 41 years of the Islamic Republic’s establishment, sitting at the negotiation table with representatives of the “Great Satan”, which killed the regime’s second most-important figure, General Qassem Soleimani, in January, will cause its forces to collapse from within.

It seems that the regime has chosen the path of contraction. This decision is aimed at buying time and is an investment on proxy wars in the region in order to force the U.S. to step back and lift sanctions. The regime hopes that in the next U.S. elections someone else will replace Donald Trump with a milder Iran policy.

The Supreme Leader’s decision to go down the contractive path can be seen in the regime’s so-called upcoming legislative elections. The upcoming election is the most important event through which the Supreme leader can unify its regime from within and prepare it for tougher times ahead.

The engineered elections

In Iran the legislative elections are basically engineered by the Supreme leader. Its method is as follows. First, different factions introduce their candidates. Then, the Guardian Council reviews their competence. The Guardian Council consists of 12 members. Six of them are clerics appointed by the Supreme Leader. The other six are jurists chosen by the Chief of the Judiciary. But the Judiciary Chief himself is appointed by the Supreme Leader. It is in fact a labyrinth with various entrances that leads at the end to the Supreme Leader. In fact, any concept of “moderation” in Iran is a lie and a political game to keep the people and the western countries busy. The principal conflict between the so-called “reformists” and “hardliners” is about the method of continuing the regime’s existence and a power struggle between different regime mobs.

More than 16,000 people presented themselves as candidates for the legislative elections. More than 55% of these candidates were disqualified by the Guardian Council. Some 90% of the so-called reformists candidates are among the disqualified. The Guardian Council even disqualified 90 members of the current Majlis (Parliament). State media report that from 290 seats in Majlis, 200 seats have already been assigned.

Regime’s only solution

A way out for the regime is to show a “massive” participation of people in the elections. On February 5, 2020, the Supreme leader for the first time begged the people to participate in the elections, “even if you disagree with me.” Despite the removal of the so-called reformist candidates, the regime’s President Hassan Rouhani also begged in a speech on the anniversary of the Iranian revolution on February 12, 2020 for people to participate in the elections.

The President-elect of the National Council of Resistance of Iran, Mrs. Maryam Rajavi, has called on the Iranian people to boycott the upcoming elections.

A poll on the state-run news network’s Telegram showed that 83% of the people are not willing to participate in the elections. The regime was forced to hastily remove this poll from Telegram.

The regime also failed to mobilize its forces for the annual ceremony of the marking the overthrow of the Shah’s regime. Video clips taken from Tehran’s Azadi Square during Rouhani’s speech show that the scene was empty. The regime fears a repeat of the no-show during the legislative elections.

The maximum pressure campaign on the regime must continue and the European Union must join it. It’s time that the Iranian people’s desire for a free Iran be recognized by the international community.

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Middle East

Growing Political Instability in Middle East: A Case Study of Yemen

Nadia Shaheen

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Yemen’s full-blown war was the consequence of a series of events that succeeded one after the other. Violence escalated during the second half of 2014, when citizens grew massively discontent with the political instability of Yemen’s transitional government. Once violence became the norm, parties to the dispute quickly polarized, and as violence ramped up, polarization accelerated.

This violence more intensified because Yemen has fragile transitional government led by President Abd Rabbuh Mansur Hadi and was further debilitated when Houthi rebels captured Sanaa in September 2014. The president’s Peace and National Partnership Agreement had emerged as a kernel of hope for an early resolution to the violence, but it did not fulfil and produce its promised. Therefore, faced severe outcome and Boasted by their early success in capturing Sanaa, the Houthis had their militias take control over key institutions in the city. They installed their own people within major institutions and media outlets, and in other cases ‘puppeteer’ members of the government whose members were ultimately put under house arrest. All hopes for the Peace and National Partnership Agreement were lost in January 2015, when Hadi resigned shortly after his escape from house arrest in Sanaa. Following a brief residence in the city of Aden, he took refuge in Saudi Arabia.

Out of immediate danger, Hadi decided to revoke his resignation and continue his presidency from abroad. At the same time the Houthis decided to promote their own version of a national constitution and create their own government bodies. In the meantime, the Houthi insurgency continued, pushing all of Yemen into a civil war. Yemen’s current multipolar political landscape is nothing new. The country’s population has never—after its 1944 civil war, or since unification in 1990—taken on a single national identity. During the 2011 Arab Spring, group differences were exacerbated, but at the outset of the revolutions relative balance of power in the country was able to bring parties together, making possible negotiations at the National Dialogue Conference (NDC).

This is no longer the case, and three important developments explain the changes post NDC. First, Yemen’s political scene became radicalized and at the same time was polarized. This made any links between the groups, whether based on historical ties or cultural similarities, impossible. Second, the changing balance of power and enduring resilience of the conflicted sides has inspired optimism within each group that and would prevail and achieve dominance over others. This reduces prospects for negotiating a settlement. For example, as the Houthis consolidated their power on the eve of their complete capture of Sanaa, rejecting calls for negotiations seemed easy, and group officials seemed unfazed by the UN resolution urging them to withdraw and reverse their course. Third, the people in Yemen have no faith in a central government, and even less faith in any political process as a solution to their problems; largely due to disappointment over a long negotiating process and an ineffective transitional government. In addition, there is no leader who inspires hope, or can rally Yemenis under one flag, or for a common purpose. While President Hadi enjoys international support, at home he is unable to ensure unity amongst even his allies, let alone the whole country.

While Yemen faces an internal quagmire, regional actors, in particular the GCC states, have been increasingly engaged in the conflict. A Saudi-led military campaign, Operation Decisive Storm’ began in March 2015, based on a coalition of forces originally supported—according to Saudis officials and public statements from countries in the wider MENA region—by more than ten countries. The UAE has been a strong supporter of the military action, contributing air support that has removed any ballistic threat for the region within the first 25 days of the operation. Other GCC states and MENA countries have also positively responded to Saudi Arabia’s move for military solutions.

Civil War in Yemen

Nations of the region have pledged military support and have become engaged in the second phase of the operation, titled ‘Restoring Hope.’ One of the strategic objectives of this operation is the disabling of the Houthi insurgency and the reinstatement of Hadi as the President of Yemen. For that purpose, large groups of pro-Hadi Yemeni fighters have been provided with weapons, equipment, and necessary military training. Saudi Arabia and the UAE have more recently delivered large quantities of heavy weapons (tanks), armored vehicles, and ammunition to the pro-Hadi fighters through the newly liberated areas in Aden. Troops from the Arab countries have been involved in training. Hadi’s army, which lacks expertise in operating for much of the weaponry and equipment being supplied. Some of the foreign troops, however, are reported to be involved in military operations themselves, and not simply working in a training capacity. Operation Restoring Hope also has a humanitarian component, and its first aid planes and ships have already arrived in Aden. The United States is also providing some assistance through intelligence, aerial refueling for fighter jets, and has indicated that it would provide possible assistance in rescuing of downed pilots. The thus empowered pro-Hadi army will be the much needed ‘boots on the ground’ to complement the Saudi air campaign. If the Southern Resistance answers Hadi’s call for a united anti-Houthi front positively, and thus integrates with Hadi’s army, a quicker advancement towards Sanaa may follow. Meanwhile, the UN is still at the forefront of the negotiations in Yemen. Negotiations are not a number one priority, however, since the UN’s reputation was significantly damaged following months of less than effective diplomacy engagement in Yemen. That is not to say that UN’s efforts are futile. Anyways, UN special envoys encourage Saudi government and Yemeni government to collaborate of sign a pact, aiming to end fight between government and separatist allies in the south. UN wants to political solution of Yemeni crisis.

Oman’s Role

Except Oman, which is not part of the campaign and it is offering a venue for negotiation and are in the strong support for President Hadi. Time may prove that the UN’s ongoing shuttle diplomacy is the best way to a ceasefire, followed by peace agreement. When taking stock of the current Civil war in Yemen, it is imperative to have a holistic view of the complex conflict, and especially when seeking to find a way out of the turmoil. As things stand, a clear path towards quick conflict resolution seems impossible. The murkiness of the actual support by the Yemeni people for current leaders, ongoing shifting political dynamics, and the mixed results of militarily operations makes any conflict resolution strategy difficult to argue. This, in turn, renders many of the policy recommendations focusing on just one or another approach risky to follow.

Understanding the Conflict’s Dynamics

Yemen’s conflict is saturated with different groups, and each have unique interests. Antagonism amongst the various Yemeni groups and the process of ‘othering’ between the Zaydis from the north and the Shaga is from the central and southern parts of Yemen has been obliterating memories of coexistence and making any reconciliation unforeseeable. The current conflict has even blurred the actual differences between theZaydis branch of Shia (Fivers) and those in Iran (Twelvers). This blurring is exacerbated when the Houthis’ religion is equated with the one of the Persian belief structures and used as an argument to link the two. A March Briefing report by the International Crisis Group observed this in action, noting that the “previously absent Shiite-Sunni narrative is creeping into how Yemenis describe their fight,” primarily through the labels used by the Houthis and the Sunni Islamist party Islah.

In a way, increased use of sectarian rhetoric by the group has become a self-fulfilling prophecy. While domestically the Houthis managed to maintain control over a large part of Yemen, including the capital, this has not translated into commensurate international recognition. The group is aware that UN resolutions are clear that Hadi’s government is the only authority in Yemen. Attempts to make inroads in the international community have thus been carried out through economic ties, those aimed at Russia (which remains unresponsive) and China, which has an interest in the Yemeni oil industry. While these efforts indicate some determination to reach out to whole the international community, the Houthis have shown no state-building acumen and political alliances are made from convenience.

With little regard for other political parties, the Zaydi Shia militias have forged an unholy alliance with former president Aki Abdullah Saleh. The deal was made without regard to the two groups’ hostile history, which includes fighting in multiple wars against each other. For now, they seem to have been able to put most of their differences aside and unite against Hadi and his supporters. This alliance means the Houthis benefit from Saleh’s powerful friends in the Yemeni army, something that has contributed greatly to the Houthis’ early rise to power. The group may yet be aided by Saleh’s diplomatic skills. For his part, Saleh is on a quest to regain his lost authority.

The politically savvy former president of Yemen hopes to extend his influence through his political party, the General People’s Congress (GPC), this can be read as a move against current President Hadi, who had been a member of GPC until November 2014, when he was kicked out. His ouster was the result of a travel.

International Crisis Group, “Yemen at War’

It is important to note that Saleh’s party, the General People’s Congress has rejected the Houthi constitutional announcement from January 2015. This is just one example of their uneasy relationship. Ban and asset freeze imposed by the UN Security Council on Saleh and a few other leaders from the Houthi side. Hadi’s rivalry with Saleh and his break with the party only further speak to his inability to become a gravitational center in Yemeni politics.

At best, Hadi was able to become a rival of Saleh, use decrees to make new appointments and reassignments to reduce Saleh’s influence in the governing structures and military. Overtime, these moves have been able to attract defectors from Saleh’s faction, but without building a real base of his own. While having defectors on side is extremely useful when defections and declarations of support of Hadi from key GPC members provide a much-needed boost to the legitimacy of the current President, his overall legitimacy remains low. This is not least because of his moves to divide forces to steer against the Houthis.

His allies, the Southern (Popular) Resistance, are a secessionist movement with strong support in the South and do not share Hadi’s vision of a post-conflict Yemen. Influence also comes from Yemen’s immediate neighbors, who are generally strongly pro-Hadi. The political positions of regional actors and their interests in the different sides would indicate that regionalization of the Yemen conflict was inevitable. Saudi Arabia’s actions, however, are also in response to wider regional trends. Intervention in Yemen has a great deal to do with curbing Iranian foreign policy on at least two big issues – the Iranian nuclear deal and their role in Iraq. With the nuclear deal recently concluded without any direct input from the Saudis, and Iraq set to be an even bigger challenge in near future, Saudi involvement in the Yemen sphere seemed inevitable. Where Teheran’s involvement in Iraq is welcomed by the Western powers, and with there-engagement of Iran in the international community their role could be strengthen, Saudi Arabia does not share the West’s enthusiasm. But the situation in Yemen is different. The level of support from Iran, as secretive as it may be, is not the same as Iran’s support for the Shia militias in Iraq, the government of Syria’s Assad, or Hezbollah in Lebanon. While hesitation to become further embroiled may be very much connected to a fear of possible overstretching in the region and the fact that the Houthis are not under Iran’s direct control, It may also be the cane that Teheran has calculated the likelihood of a strong and determined response by Saudi Arabia if it were to step up involvement. Iran’s public declarations call for ceasefire, though they know the balance of power on the ground in Yemen matters a lot since it will transfer to the make-up of any negotiations table. Iran leaves little up to luck. Iranian Revolutionary guards are on the ground in Yemen, Iranian money and aid has been shipped to the Houthis. It should not be a surprise if more money were to be poured in, especially given the funds that will be made available in the wake of the Iranian nuclear deal and an unfreezing of assets. Even though weapons may be much more needed than cash, the Houthis will still be more effective in maintaining control and popularity if they have no huge financial challenges.

Saudi Arabia Role

For the leadership in Riyadh, Yemen continues to be a foreign policy priority. The Kingdom acted as patron to Yemen’s government from the 1980s onwards, and it never accepted foreign influence in the country. In the 1960s Egypt’s then president Gamal Abdel Nasser tried to expand his Pan-Arab revolution to Yemen, only to see his efforts neutralized by the Saudis. This time around, as Iran employs their ‘revolution export ‘strategy, similar determination exists in the House of Saud and its key allies to thwart it. No accounting of the current conflict in Yemen would be complete, however, without accounting for terrorist groups. The best way to look at this issue is to understand the historical role of al-Qaeda of the Arabian Peninsula (AQAP), and its relatively recent branch of Daesh (The Arabic acronym for the group known as the Islamic State in Iraq and Syria or ISIL). AQAP is considered the most powerful of al-Qaeda’s branches after the death of Osama Bin Laden.

Moreover, a terrorist group with a long legacy in Yemen. Many men who fought alongside Bin Laden in Afghanistan at the end of the last century came back to Yemen and to found AQAP. Indeed, since 1990, leaders of the largest Islamic military groups in this country have claimed ties to Bin Laden.6 With the creation of AQAP, allegiance to Bin Laden’s successor Ayman al Zawahiri was declared, and has been reasserted repeatedly since. The newly appointed leader of the AQAP Qasm al-Rimi, who assumed his position after the death of Nasir al-Wuhayshi in June2015, made the same oath of allegiance when he took power. With such strong roots in Yemen, it would be difficult for ISIL to take over as a leader in the jihadist movement in the country. Further dividing ISIL and the AQAP is the firm policy of the latter for the gradual establishment of a caliphate when the ‘right conditions’ are met. This is already underway in Yemen and is not an ideology that is shared by the now rival terror group. As far back as 2009, the AQAP issued a recruitment call to aid in establishing an Islamic caliphate in Yemen.

The call anticipated the departure of Saleh from power, and the opportunity was taken at his departure to create new institutions in Yemen toward the goal of the caliphate. Further distinguishing the two groups, AQAP maintains that consultation with respectable scholars and influential leaders in the Ummah are a sine qua non for the establishment of a supranational entity. For AQAP, this serves as a source of unity and legitimacy. It is also cited in the attempts to challenge the authority.

Iran’s Role

Iran is seeking of wider legitimacy speaks to the priority of alliances for AQAP, which has indeed demonstrated success in gathering more allies amongst tribal leaders in Yemen than ISIL. These alliances are largely based on a common interest to deter any advancement of the Houthis, rather than any shared ideals for the future political reorganization of Yemen. Therefore, it is difficult to assess how long these alliances may endure, but, without a better alternative, it is likely the tribes’ current cooperation with AQAP will remain in place as long as Houthi movement provides a need for it. This means AQAP is well positioned to expand its governing territory, at least for the duration of the Yemeni crisis. ISIL may also expand their influence in Yemen, but they are unlikely to be a major player in the crisis.

While the group loyal to al-Baghdadi is increasingly popular in the media, it has had limited success in Yemen. The group will need to be accounted for, however, in the aftermath of the war and during a possible peacemaking process. Both AQAP and ISIL have declared that the Houthis deserve to be killed, however, ISIL has far more extreme methods and are prone to terrorist acts, which deepen the sectarian rift.Each of these parties is operating, moreover, in a country with limited economic prospects. In addition to high unemployment, water and food shortages, oil exports are failing to produce enough revenue for the government, due to the fall in oil prices and declining oil production because of the conflict. This means that the nation is not and will not be economically self-sufficient in the near future. The crisis in Yemen has all of the necessary conditions of a conflict that will continue for many years to come. Pro-Hadi forces have had a few recent successes securing territory in the south, which has further boosted their capabilities, allowing an increase of weapons shipments, as well as military and humanitarian aid in the south.

Conflict’s Unclear Future

The mercurial dynamics of the Yemini conflict and the multiple possible pathways upon which it might develop make planning unclear. Various scenarios explore multiple probable trajectories, and the many stakeholders – both domestic and regional – prefer diverse and conflicting outcomes. What does seem unlikely is that an outcome will be left to the will and capabilities of any one party to determine the outcome alone.

The four scenarios below represent the four poles of possible outcomes that current stakeholders may have to accommodate in any possible solution. The scenarios are fluid and represent a spectrum of possible outcomes. The X-axis represents the stability of Yemen, with outcomes ranging between its two extremes: war and peace. The war extreme examines the possibility of protracted conflict, where the war in Yemen continues at its current level, or even worse, at a heightened level of violence. At the other end of the spectrum is a peaceful solution, which assumes a peaceful resolution to the crisis. While obviously the peaceful solution is desirable, it is important to note that a resolution does not assume positive peace or an imminent reconciliation.

On the contrary, considering that this is a near-term analysis, certain ungoverned territories or sporadic violence should be expected even in the most optimistic future. The Y-axis tackles the issue of integrity. It assumes a possible return to the process of solidifying a unified Yemen, on the one hand, or dividing the territory into two separates entities on the other. ‘Integration’ marks the preservation of the country’s existing borders, regardless of its level(s) of decentralization (e.g. federation), where the opposite extreme reflects the endemic lack of national cohesion and thus represents the possibility of dividing the country in two separate states/territories. Such a scenario includes the possibility of reverting back to the pre-1990 borders, or even an alternative re-drawing of the map.

Stability and integration are key factors for the future of the country. Stability as a criterion is an overarching theme, vital for enabling further discussion on political, economic, and social issues. In other words, depending on the stability of the country and whether there is war or peace in Yemen, different policies should be applied. Integration on the other hand, provides a lens through which to examine key political developments that are equally unpredictable. Ultimately, having one or two countries on Yemen’s current territory would completely change the political landscape, and consequently, the strategies employed to reach a peaceful resolution. Understanding how these two factors combine helps complete the possible pictures of Yemen over the next few years.

Fluid Control and Power

A first scenario, based on Yemen’s current dynamics, plots a possible future for the country along the ‘development’ of the status quo. In this scenario, the country remains undivided as a political unit, but the war is unceasing and offensive operations are continuously being launched. Consequently, different parties gain or lose control of territory based on successful military/insurgent advances. This makes a map of territorial control one that constantly morphs, even within short time intervals. Such a future remains very much like today’s Yemen, where ongoing lashes between the Houthis and pro-Hadi insurgents in large cities like Aden and Taiz have given mixed results for each side. Earlier in the year the Houthis had managed to quickly gain a large territory in their quest to capture Aden, and it was then that they also overtook the al-Anad Air Base in Lahij. With the recent success of the popular resistance troops and Hadi’s supporters in retaking much of that same area, it is also possible that a further Houthi retreat may follow. A similar situation is seen in the battle for Taiz, the battle over which could go on for any length of time.

Warring Territories of Yemen

A second scenario posits that a certain level of war fatigue on the ground will result in a divided Yemeni territory, to be controlled by different groups. War-weariness may not be enough for the warring parties to conclude a peace process and may instead only serve to limit the conflict to the frontlines. A war-weary end to hostilities would simply entrench parties in their positions and focus each on defending areas under their control. The Houthis would then likely control the northern part of current-day Yemen, while the forces loyal to the regime in exile (which would likely return to Yemen under these conditions) could successfully defend the southern and central areas of the country.

Although still divided on how the future political map of Yemen should look, Hadi loyalists and the Southern Resistance (Hirak) are likely to keep a fragile and to a degree united front in the fight against their common enemy. Small areas of ungoverned territory may also exist in the current al-Qaeda controlled areas, with neither party willing or able to conquer the other territories. Under this outcome, the conflict would be expected to manifest through clashes alongthe frontlines, but sporadic terrorist attacks beyond these areas could not be ruled out. Military operations from regional state actors would also likely continue. However, without the ground support of Hadi’s loyalists, the air campaign would likely produce limited results.So far, success in regaining control of territory from the Houthis has been in areas in the south where the Houthi movement does not have massive support. It will be increasingly difficult to repeat these territorial gains in the north, which are areas of Houthi strongholds. This is, why the battle may be limited to the frontlines and over time a de facto disintegrated country could be created, as no institution has authority over the full territory.

Two Yemens

If violence is halted, the future of Yemen will be decided by the largest and most relevant parties in the country, in conjunction with help from the international community. One possible outcome in this direction would be for the negotiators to acknowledge that a Westphalian nation-state is impossible on this territory, and instead conclude an agreement to divide Yemen. This will not be a quick or easy process, but it has significant support in the county, especially in the south. The Popular Committees in the south and Hadi’s army fighting against the Zaidi Shia Islamist group there neither belong to a single tribe nor share a common strategic objective – just a common enemy. Clashes in mid-July – when control over Aden was claimed back from the Houthis – represented for some fighters the liberation of the nation’s second largest city. For the members of the region’s separatist movement, it was a liberation of their old (and possibly future) capital. For Saudi Arabia, this means having in what would become Northern Yemen, a neighbor that is no friend of theirs, and another, Southern Yemen, which will inherit the AQAP problem.

Reconciliation and Coexistence

While currently ineffective, peace negotiations may eventually lead toward a permanent cease-fire and a deal that will preserve the unity of Yemen. This could come to pass in one of two ways. First, as the result of an effective and creative diplomacy, or second, because of the success of Operation Restoring Hope, which seeks to put President Hadiin charge of Yemen and the surrender of the Houthi movement and Saleh’s forces. Whatever means peace talks may emerge, however, the years to follow are sure to be difficult.

Conclusion

One way the road to stability could be eased, is through a possible rebirth of the Peace and National Partnership Agreement, or PNPA 2.0. This agreement, or a new form following similar lines, could revive internal political dialogue in the country. A successful agreement would mean that post conflict institutions would have to be agreed upon, and integration of different demographic groups would be expected to take place at various levels in the government. While a clear step forward, a PNPA 2.0 would merely begin the process of reconciliation and give hope for a prolonged stability. An international peacekeeping mission might also be necessary to keep the terms of any agreement in its in initial phases, as a united and relatively stable Yemen could slowly rebuild as a federal system.

However, since the terrorist organizations operating in the country will certainly not be part of the negotiations process, and not seen as a possible actor that could be integrated into the reconstructed national institutions, they will likely remain a problem for the next government of Yemen as well as the international sponsors of the peace process.

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Middle East

Thwarting Iranian Influence is Key to Iraq’s Security

Saad Khoury

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The mass uprisings in Iraq over the past several months have many factors in common, the most salient of which include ordinary citizens decrying economic hardship and rampant corruption among the ruling elite. With that agenda in mind, protesters seek to weaken the grip of the Iranian regime that has entrenched itself in Baghdad’s political and economic affairs.  

How Far is Iran’s Reach in Iraq?

While the 2011 Arab Spring reacted to similar events in Tunisia, Egypt, Syria, and Yemen, recent uprisings in Lebanon and Iraq are distinguished by Iran’s dominance over economic and political relations there.

As Iran’s closest Arab neighbor and home to the Arab world’s largest Shi’a population, no country in the “Shi’a crescent” feels Iran’s influence more profoundly than Iraq. Since the US invasion of Iraq in 2003 and the overthrow of Saddam Hussein, then Iran’s main rival in the region, Tehran has sought to exploit the years of marginalization felt by Iraqi Shi’a’s in order to empower them. Many exiled Iraqi’s who sought refuge in Iran during Saddam’s rule returned after his fall to take up positions of authority in light of the power vacuum left by the US invasion

Many of these Iraqis, once in exile, have become the leading power brokers in Iraq, many of whom have expressed a keen willingness to follow the political roadmap laid out by their former benefactors and protectors in Tehran.

Nonetheless, the overbearing weight of these Iranian backed actors in Iraq has led to economic ruin in the country. Faced with high youth unemployment, high inflation, and a lack of essential services, Iraqi are growing tired of Tehran calling the shots in their country. To add insult to injury these Iranian proxies have relentlessly employed harsh crackdowns to retain their influence, wealth, and control within both private and public spheres. This authoritarian dominance also prevents the Gulf States, Iran’s regional rival, from providing Iraq with crucial investment opportunities. 

Iranian Influence Supersedes Ethnicity and Religion In Iraq

In Iraq, a fragile balance of power has seen institutions parceled out to various corrupt ethnic and religious elites. 

This endless and brazen cycle of placing Iran-backed politicians in power to represent the Iraqi people is holding Iraq back from progress and prosperity. In this realm, it isn’t religion, ethnicity, or background that bring Iranian puppets together. It’s their mutual understanding that they need each other and Tehran’s backing if they want to continue to gain wealth and maintain the status quo they have built. 

The converse is also true. Opposition to Iran is not drawn on sectarian lines, but rather, large swathes of the country’s Sunni and Shi’a population are taking to the streets to call for an end to Iranian interference. 

How can Iraq Reclaim its Sovereignty

Protesters in Iraq have only recently transcended fault lines to form a united front. Regardless of ethnicity, religion, or social background, protesters are united to overturn their country’s Iranian backed elites that have been siphoning out money and resources, while placing an inexorable toll on the economy in the process.

In response to these massive protests, Iranian-back proxies in Iraq have cracked down mercilessly against protesters, with up to 600 demonstrators being killed since the movements began. 

Moreover, the death of General Qassem Soleimani, Iran’s most senior military commander and al-Muhandis, the head of the powerful pro-Iran Iraqi Popular Mobilization forces, has been a big blow to Iranian operations in Iraq. 

With the loss of its two most prominent actors in the Iraqi theatre, Iran’s puppeteers are scrambling to fill the power vacuum. Though they have decided to confer their confidence in Muqtada Al-Sadr and Al-Amiri Hadi temporarily, Tehran’s influence is beginning to show cracks as attempts to unite a fractured support network are proving futile. 

In tune with protestors’ calls to reject Iran, Iraq’s pro-sovereignty opposition groups are growing in popularity. Anti-Iranian and nationalist messaging from groups like the National Wisdom Movement and the National Independent Iraqi Front resonate strongly with demonstrators who decry the economic stagnation caused by Iran’s impact on their country’s politics. 

Taking advantage of the blow dealt with Iran through Sulemani’s death to end the confessional system in Iraq will be crucial for the success of the Iraqi protest movement. Though it is too early to tell if these protesters can flush out Iran’s deep-rooted influence in Iraq entirely, supporting genuine pro-sovereignty Iraqi leaders will leverage their initiatives. These leaders, and the protests movements they represent, are exposing cracks in Iraq’s circles of power as they stand resilient in the face of increasingly violent crackdowns. 

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