Despite all the complexity and ambiguity of the situation now exiting in the world, the summer and fall of 2019 saw a certain degree of success, achieved by Iran’s Middle East policy both in the region and inside the country itself.
Tehran’s foreign policy achievements have also helped strengthen the “Shiite belt” spanning Iraq, Syria and Lebanon, where Tehran’s influence remains very strong. However, the events of the past few weeks have shown that this belt is starting to “snap.”
Iraqis have for more than a month been holding rallies against the authorities, accusing the government of corruption and demanding the resignation of Prime Minister Adil Abdul-Mahdi. Many are chanting anti-Iranian slogans, because they believe that the government is getting a great deal of support from Tehran. In Karbala, considered a holy city for Shi’ite Muslims, protesters set ablaze the Iranian consulate, crying “Iran, go away!” in a violent flare-up that left more than 300 people dead. The Iraqis blamed the killings down on members of the pro-Iranian militia.
The picture in neighboring Lebanon is much the same with the Lebanese actively protesting not only against corruption and low living standards, but also against the Iranian influence in the country, namely the Hezbollah, an Iranian creation, which plays an important role in Lebanon. According to observers, it is against this backdrop of anti-Iranian sentiment that Hezbollah has gradually been losing control of the situation there.
In Syria – this main link of the Shiite arc – the situation is equally alarming for Tehran, but this is a separate story that deserves a separate analysis.
What makes the situation so noteworthy though is that Iran is in various degrees influencing the domestic political situation in all these three Arab countries, with Iraq, Lebanon, and especially Syria each being an Iranian enclave in the Arab world.
However, it is precisely in these countries that initial “shocks” – the harbingers of serious upheavals for Iranian politics in this region – are being felt now. Moreover, these shocks dangerously resonate with the political situation in Iran proper, which has seen a recent wave of mass protests flaring up on November 15, 2019, sparked by an increase in gasoline prices.
Over the 40 years of its existence, the Islamic Republic of Iran has seen a number of social disturbances, but they were usually of a local nature, caused by local problems and limited to rallies and strikes at individual enterprises. However, in the last decade, waves of mass discontent, already on a national scope, have risen repeatedly.
The first nationwide anti-government protests in post-revolutionary Iran happened in 2009, caused by alleged voting fraud and irregularities in presidential elections that resulted in a surprise win for Mahmoud Ahmadinejad. Those protests are known as the Green Revolution.
The protests took place in several major Iranian cities, with middle-aged people, representatives of the intellectual elite and political opposition predominantly taking to the streets. At the height of the tensions, hundreds of thousands of people gathered in the streets and squares of the relatively liberal Tehran, where the protests originated. The sole demand was to cancel the results of the 2009 presidential election, won by Ahmadinejad. Presidential hopefuls Mehdi Karrubi and Mir-Hossein Mousavi formally spearheaded the protests which, heated as they were, still remained within the framework of the political system of the Islamic Republic.
A distinctive feature of those protests was that Iranians used social networks not only to coordinate their actions, but also to let the rest of the world know what was going on in their country.
The second powerful wave of protests rocked Iran in late 2017 – early 2018, this time caused by a spike in food prices. The protests flared up in one of Iran’s most conservative cities – Mashhad – and almost simultaneously in more than 50 cities and numerous villages (where people traditionally support the government), and were much bigger in scope than the previous ones. Most of the protesters were young people with the rallies attended by representatives of various social and political backgrounds. What started as a purely economic protest, quickly acquired a political nature directed against the country’s leadership. The fundamental difference that set the second wave of protests apart from the previous one is that the protesters demanded a reform of the country political system and even the elimination of the principles of the Islamic Republic. The Iranian protest was rather chaotic too. as there were no single leaders and common demands being made to the powers-that-be. Another important feature of those events was that at a certain stage all Internet access was blocked. While in 2009 there were around 1 million Internet users in Iran, in 2017-2018 their number had jumped to 48 million, and this is in a country of 82 million people! The list of those detained during those protests included the country’s ex-president Mahmoud Ahmadinejad.
Events of November 2019
On November 15, 2019, Iran encountered a third wave of civil protests after the government of Hassan Rouhani announced that it was raising gasoline prices by as much as 200 percent.
Protests against this decision engulfed the entire nation, flaring up in Tehran and then spreading to about 100 towns and villages elsewhere in the country, involving more than 100,000 people. Maybe not much for a country of 82 million, as previous protests were much bigger in scope, but certainly more radical. In a number of places, more than 100 bank offices, including those of the Central Bank, were set on fire, and 900 branches and 3,000 ATMs were damaged.
The protesting crowds attacked police officers, gas stations and public offices, with economic slogans quickly making way for demands for a new government.
The protesters also want Tehran to stop sponsoring Islamic movements abroad because they believe that it is exactly where the money from the gasoline price hikes will go, instead of helping the poor. “Not Gaza and not Lebanon – I sacrifice my life for Iran,” protesters chanted. Another demand is to change the country’s foreign policy, which, according to the protesters, is turning Iran into a rogue country, suffering under heavy economic sanctions.
Iran’s leaders put the blame for the social unrest on a mix of enemies, including the United States, Saudi Arabia and Israel, as well as groups like the People’s Mujahedin of Iran, the Kurdistan Free Life Party, the Islamic State (banned in Russia), and now also the clan of the ousted Shah Mohammad Reza Pahlavi and, above all, his son – heir to the throne Reza Cyrus Pahlavi.
I believe that although the countries opposed to the Islamic Republic of Iran, did of course provide moral and media support for the civil protest against the existing regime, they could still hardly be able to organize such anti-government rallies inside the country. As for Reza Cyrus Pahlavi, living in the United States, he often makes political forecasts and comments, but always avoids political activity. He has no ambitions to restore the monarchy, saying only that he would like to see Iran without theocracy. The current protests in Iran apparently stem from domestic, primarily social and economic, problems.
Economic background of the crisis
On November 15, the Iranian government announced an increase in retail gasoline prices. While motorists were previously allowed to buy 250 liters of fuel per month at a price of 10,000 rials (19.14 rubles), now they have to pay 15,000 rials (28.71 rubles) with the fuel quota reduced to 60 liters (up to 400 liters for taxi drivers). Iranians are now supposed to pay 30,000 rials (57.42 rubles) for every additional liter in excess of the quota at a price of 30 thousand rials (57.42 rubles). This is exactly what triggered much of the mass-scale protests.
Here are the three main points that need to be highlighted and emphasized:
First, Iran’s economy is in a very bad state now. And not only because of the US sanctions. According to Gholamhossein Shafei, President of Iran’s Chamber of Commerce, Industries, Mines & Agriculture (ICCIMA), the Iranian economy suffers from two key problems: corruption and stagnation … Economists describe stagnation as a derivative of an ineffective management, lack of financial discipline, and exhaustion of the existing model as a whole. According to some experts, this could eventually ruin the country’s entire political system.
Second, the aggressive financial and economic sanctions imposed on the Islamic Republic by the United States have cost the country tens of billions of dollars and contributed to its economic woes.
According to the IMF, as a result of a combination of multiple factors, Iran’s GDP this year is projected to decrease by 9.5 percent – the worst indicator since 1984. Annual inflation will exceed 35 percent (according to other sources, it could climb to 52 percent). Food prices are up almost 60 percent, and price increases for many non-food products exceed 80 percent.
Since January, the national currency, the rial, has lost 70 percent of its value against the US dollar. People and businesses have turned to the black market for currency and, as a result, the rial’s exchange rate finally detached from the official one. When the rial’s fixed exchange rate was introduced in April 2018, one US dollar bought about 60,000 rials. By July, the unofficial rate had jumped to 112,000 thousand rials, and by early September – to 145,000 rials. A year later, the “street” rate rebounded a bit to about 115,000 rials for one US dollar, but the gap with the official exchange rate, frozen at 42,000 rials per dollar, remains huge nonetheless.
Overall, the damage inflicted on the Iranian economy by the new US sanctions and the sixth-month devaluation-inflation spiral was officially estimated at 4.9 percent of the country’s GDP.
Meanwhile, employers are massively switching to short-term contracts, which adds to the sense of anxiety among the people.
According to the Statistical Center of Iran, a government agency controlled by the country’s president, the official unemployment rate in 2018 reached 27 percent among young Iranians, and 40 percent among university graduates.
Third, under the circumstances, the government had no other choice than to jack up fuel prices, because even though the IMF hadn’t discussed such a raise with the Iranian authorities, it had still advised Tehran to cut fuel subsidies, which means raising fuel prices. According to the Iranian government, fuel subsidies cost the state $2.5 billion a year and are an incentive for smuggling.
Indeed, the price of gasoline in Iran was one of the lowest around (about $0.3 or 19 rubles). And this provided fertile ground for large-scale smuggling of gasoline to Afghanistan (where it costs $0.65 or 41.5 rubles) and, to a greater extent, to Turkey (where the price of gasoline is $1.2, or 77 rubles.)
So, according to a report by the Iranian parliament’s research center, as a result of the economic downturn, caused by multiple reasons, objective and subjective, as well as external and internal, the living standards of the Iranian people keep falling.
Amid last month’s social unrest, on November 18, the Iranian government, in an effort to reduce tensions, announced additional payments to the poorest segments of the population, hit the hardest by the rising gasoline prices. They were promised up to 2 million riyals in the first week, followed by subsidies to be provided on a monthly basis. By the end of the first week of protests, the government had managed to somewhat dampen the tensions and restore a semblance of normalcy.
While analyzing the current situation in Iran, we should single out the following points:
Iran has over the past three years going through an internal systemic economic and political crisis, as the pace of development of the model of managing economic and social processes is falling behind the requirements of our time.
The past two years have seen a notable rise in social tensions, caused by the people’s general unhappiness about their socio-economic situation, the government’s foreign and domestic policy and certain fatigue from the framework of Islamic demands.
The mass protests of November 15-22 were not so much the result of ramped up gasoline prices, but rather of a consistent rise in the degree of general popular discontent. The gasoline price hike was merely a spark, which ignited the flames of protest.
The protests happened without concrete leaders steering them as both Internet and mobile phone communications were blocked by the authorities. Therefore, the protest actions were spontaneous and apparently not coordinated by external forces.
The protests did not and could not lead to a breakdown of the country’s Islamic statehood because, for all the flaws in the existing model of governance, the ruling elite and the specific state structure it has established still enjoy a margin of strength due to the balance of checks and balances.
The protests further undermined the positions of President Hassan Rouhani and his team. Trying to make the most of the situation, the radical conservative opposition accuses the president of inability to bring the situation and the whole country under control. Simultaneously, supporters of liberal reforms blame the president for being unable to create conditions for implementing these reforms, which would result in a lifting of international sanctions imposed on the country.
The events of the fall of 2019 will factor in very heavily in the outcome of the 2020 parliamentary elections as well as the presidential elections in 2021. Because it is unlikely that supporters of the liberal (by IRI standards) Hassan Rouhani will gain legislative and executive power, this will result in a toughening of Iran’s policy across the board, which in turn would complicate the country’s external and domestic situation and possibly exacerbate internal contradictions.
The protests of November 2019 demonstrated once again that the crisis-hit Islamic Republic of Iran needs radical reforms in almost every sphere of life.
From our partner International Affairs
Iraq: Three Years of Drastic Changes (2019-2022)
When the wave of the protests broke out at the beginning of October 2019 in Iraq, the Iraqi politicians did not realize the size of the gap between the demands of the protesters which were accumulated more than seventeen years, and the isolation of the politicians from the needs of the people. The waves of the protests began in a small range of different areas in Iraq. Rapidly, it expanded as if it were a rolling snowball in many regions of Iraqi governorates. Moreover, the platforms of social media and the influencers had a great impact on unifying the people against the government and enhancing the protest movement.
Al Tarir Square was the region where most protesters and demonstrators were based there. At that time, they stayed all day in this region and set up their tents to protest and demonstrate against the public situation of their life.
The protesters demanded their looted rights and asked for making economic reforms, finding job opportunities, changing the authority, and toppling the government presided by Prime Minister Adil Abdul-Mahdi. The protest stayed between ebb and tide, pressuring the political authority in Iraq.
A new period began in the history of Iraq where clashes between the protesters and the riot forces broke out in Al Tahrir Square and many governorates in the south of Iraq. Tear gas and ductile bullets were used against the protesters to compel them to retreat and disperse them. But the protesters insisted on continuing their demands. Many protesters were killed and wounded due to the intensive violence against them. The strong pressure with falling many martyrs gave its fruit when the Iraqi representatives of the Parliament endeavored to achieve the protesters’ demands by changing the election law into a new one. On 24 December 2019, the Iraqi Parliament approved of changing the unfair Saint Leigo election law into the open districts. The new law divided Iraq into 83 electoral districts.
Moreover, this violent protest led to the collapse of the Iraqi government presided by Prime Minister Adil Abdul Mahdi. He was compelled to resign by the end of 2019. Many political names were nominated by the Iraqi politicians but the protesters refused them all because they were connected with different political parties.
Finally, Mustafa Al-Kadhimi, who worked in the Iraqi Intelligence Service and had no party, was nominated by the politicians to be the new Prime Minister. He was well-known for ambiguity and far from the lights of media.
Mustafa Al-Kadhimi has become the Prime Minister in March 2020. The protests were over at the beginning of April 2020. With the taking of responsibility of helping Iraq, Mustafa Al-Kadhimi promised the protesters, who were called “Octoberians”, to hold a premature election, and the election was fixed on 10 June 2020.
Many politicians tried to postpone or cancel the premature election. Under their pressure, the premature election was postponed and fixed on 10 October 2020. During Mustafa Al-Kadhimi’s period as a Prime Minister, he opened new channels with the Arab states to enhance the cooperation and held many summits to support Iraq in the next stage.
Attempts to postpone the premature election by the Iraqi politicians were on equal foot, but all these attempts failed and the election occurred on the due time.
Before the election, many Octoberians and influencers encouraged the people not to participate in the election. On the day of the election, it witnessed low participation, and people were convinced of not happening any change. These calls gave their fruits in the process of elections in Iraq where the election witnessed very low participation, and most Iraqis refused to participate and vote to the nominees even though there was a new election law. When the elections were over, the Independent High Electoral Commission (IHEC) in Iraq announced that the results would be within two days. After announcing the results of the election partially and defeating many political factions in the Iraqi arena, many convictions were directed to the commission, and it was convicted by fraud and manipulation with the results. This aspect affected the activity of the Commission and led to put great pressure on it. After two weeks of pressure and convictions, the final results of the elections were announced and many political elite Iraqi leaders were defeated gravely.
The results of the election gave a new start through new leaders who were supporting the October revolution that happened in 2019. And most names of these winning movements and alliances were inspired by the October Movement. Those, who represented October Revolution, were also convicted by other Octoberians that Octoberian winners in the election deviated from the aims of the October Revolution.
A new struggle has begun between the losers in the election and the new winners who will have the right to be in the next term of the Iraqi Council Parliament of Representatives. Moreover, many independent individuals won in the election, and the conflict would deepen the scope of dissidence between the losers and winners. Finally, all raised claims of election fraud have not changed the political situation.
The final results of the election had been announced, and the date of holding the first session of the Iraqi Parliament of Representatives was fixed to nominate and elect the spokesman of the Iraqi Parliament of Representatives. The Shiite Sadrist movement, which represents 73 seats, has wiped out its competitors. This aspect has compelled the losing Shiite competitors to establish an alliance called “Coordination Framework” to face the Sadrist movement, represented by the cleric Sayyed Muqtada al-Sader. On the other hand, Al-Takadum Movement (Progress Party), represented by the spokesman of the Iraqi Parliament of Representatives, Mohamed Al-Halbousi, has taken the second rank with 37 seats.
The final results of the election had been announced, and the date of holding the first session of the Iraqi Parliament of Representatives was fixed to nominate and elect the spokesman of the Iraqi Parliament of Representatives.
Finally, the first session of the Iraqi Council Parliament of Council was held. Mohamed Al-Halbousi has been elected as the spokesman of the Iraqi Council Parliament of Council. During the next fifteen days, the president of the republic will be elected.
China-US and the Iran nuclear deal
Iranian Foreign Minister Hossein Amir Abdollahian met with Chinese Foreign Minister, Wang Yi on Friday, January 14, 2022 in the city of Wuxi, in China’s Jiangsu province. Both of them discussed a gamut of issues pertaining to the Iran-China relationship, as well as the security situation in the Middle East.
A summary of the meeting published by the Chinese Foreign Ministry underscored the point, that Foreign Ministers of Iran and China agreed on the need for strengthening bilateral cooperation in a number of areas under the umbrella of the 25 year Agreement known as ‘Comprehensive Cooperation between the Islamic Republic of Iran and the People’s Republic of China’. This agreement had been signed between both countries in March 2021 during the Presidency of Hassan Rouhani, but the Iranian Foreign Minister announced the launch of the agreement on January 14, 2022.
During the meeting between Wang Yi and Hossein Amir Abdollahian there was a realization of the fact, that cooperation between both countries needed to be enhanced not only in areas like energy and infrastructure (the focus of the 25 year comprehensive cooperation was on infrastructure and energy), but also in other spheres like education, people to people contacts, medicine and agriculture. Iran also praised the Belt and Road Initiative (BRI) and said that it firmly supported the One China policy.
The timing of this visit is interesting, Iran is in talks with other signatories (including China) to the JCPOA/Iran nuclear deal 2015 for the revival of the 2015 agreement. While Iran has asked for removal of economic sanctions which were imposed by the US after it withdrew from the JCPOA in 2018, the US has said that time is running out, and it is important for Iran to return to full compliance to the 2015 agreement. US Secretary of State Antony Blinken in an interview said:
‘Iran is getting closer and closer to the point where they could produce on very, very short order enough fissile material for a nuclear weapon’
The US Secretary of State also indicated, that if the negotiations were not successful, then US would explore other options along with other allies.
During the course of the meeting on January 14, 2022 Wang Yi is supposed to have told his Chinese counterpart, that while China supported negotiations for the revival of the Iran nuclear deal 2015, the onus for revival was on the US since it had withdrawn in 2018.
The visit of the Iranian Foreign Minister to China was also significant, because Foreign Ministers of four Gulf Cooperation Council (GCC) countries – Saudi Arabia, Kuwait, Oman and Bahrain — and Secretary General of GCC, Nayef Falah Mubarak Al-Hajraf were in China from January 10-14, 2022 with the aim of expanding bilateral ties – especially with regard to energy cooperation and trade. According to many analysts, the visit of GCC officials to China was driven not just by economic factors, but also the growing proximity between Iran and Beijing.
In conclusion, China is important for Iran from an economic perspective. Iran has repeatedly stated, that if US does not remove the economic sanctions it had imposed in 2018, it will focus on strengthening economic links with China (significantly, China has been purchasing oil from Iran over the past three years in spite of the sanctions imposed by the US. The Ebrahim Raisi administration has repeatedly referred to an ‘Asia centric’ policy which prioritises ties with China.
Beijing is seeking to enhance its clout in the Middle East as US ties with certain members of the GCC, especially UAE and Saudi Arabia have witnessed a clear downward spiral in recent months (US has been uncomfortable with the use of China’s 5G technology by UAE and the growing security linkages between Beijing and Saudi Arabia). One of the major economic reasons for the GCC gravitating towards China is Washington’s thrust on reducing its dependence upon GCC for fulfilling its oil needs. Beijing can utilize its good ties with Iran and GCC and play a role in improving links between both.
The geopolitical landscape of the Middle East is likely to become more complex, and while there is not an iota of doubt, that the US influence in the Middle East is likely to remain intact, China is fast catching up.
Egypt vis-à-vis the UAE: Who is Driving Whom?
“Being a big fish in a small pond is better than being a little fish in a large pond” is a maxim that aptly summarizes Egyptian regional foreign policy over the past few decades. However, the blow dealt to the Egyptian State in the course of the 2011 uprising continues to distort its domestic and regional politics and it has also prompted the United Arab Emirates to become heavily engaged in Middle East politics, resulting in the waning of Egypt’s dominant role in the region!
The United Arab Emirates is truly an aspirational, entrepreneurial nation! In fact, the word “entrepreneurship” could have been invented to define the flourishing city of Dubai. The UAE has often declared that as a small nation, it needs to establish alliances to pursue its regional political agenda while Egypt is universally recognized for its regional leadership, has one of the best regional military forces, and has always charmed the Arab world with its soft power. Nonetheless, collaboration between the two nations would not necessarily give rise to an entrepreneurial supremacy force!
Egypt and the UAE share a common enemy: political Islamists. Yet each nation has its own distinct dynamic and the size of the political Islamist element in each of the two countries is different. The UAE is a politically stable nation and an economic pioneer with a small population – a combination of factors that naturally immunize the nation against the spread of political Islamists across the region. In contrast, Egypt’s economic difficulties, overpopulation, intensifying political repression, along with its high illiteracy rate, constitute an accumulation of elements that serves to intensify the magnitude of the secreted, deep-rooted, Egyptian political Islamists.
The alliance formed between the two nations following the inauguration of Egypt’s President Al Sisi was based on UAE money and Egyptian power. It supported and helped expand the domestic political power of a number of unsubstantiated Arab politicians, such as Libya’s General Khalifa Haftar, Tunisia’s President Kais Saied and the Chairman of Sudan’s Transitional Sovereignty Council, Lieutenant-General Abdel-Fattah Al-Burhan. The common denominator among these politicians is that they are all fundamentally opposed to political Islamists.
Although distancing political Islamists from ruling their nations may constitute a temporary success, it certainly is not enough to strengthen the power of the alliance’s affiliates. The absence of true democracy, intensified repression by Arab rulers and the natural evolution of Arab citizens towards freedom will, for better or for worse, lead to the re-emergence of political Islamists. Meanwhile, Emirati wealth will always attract Arab hustlers ready to offer illusory political promises to cash in the money.
The UAE has generously injected substantial amounts of money into the Egyptian economy and consequently the Egyptian State has exclusively privileged Emirati enterprises with numerous business opportunities, yet the UAE has not helped Egypt with the most critical regional threat it is confronting: the Grand Ethiopian Renaissance Dam. Meanwhile, Egyptian President Abdel Fatah El Sisi’s exaggerated fascination with UAE modernization has prompted him to duplicate many Emirati projects – building the tallest tower in Africa is one example.
The UAE’s regional foreign policy that hinges upon exploiting its wealth to confront the political Islamist threat is neither comprehensible nor viable. The Emirates, in essence, doesn’t have the capacity to be a regional political player, even given the overriding of Egypt’s waning power. Meanwhile, Al Sisi has been working to depoliticize Egypt completely, perceiving Egypt as an encumbrance rather than a resource-rich nation – a policy that has resulted in narrowing Egypt’s economic and political aspirations, limiting them to the constant seeking of financial aid from wealthy neighbors.
The regional mediating role that Egypt used to play prior to the Arab uprising has been taken over by European nations such France, Germany and Italy, in addition of course to the essential and ongoing role of the United States. Profound bureaucracy and rampant corruption will always keep Egypt from becoming a second UAE! Irrespective of which nation is in the driver’s seat, this partnership has proven to be unsuccessful. Egypt is definitely better off withdrawing from the alliance, even at the expense of forgoing Emirati financial support.
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