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[Amil Saikal, Iran Rising: The survival and Future of the Islamic Republic. Princeton University Press. Princeton, 2019. 344 p.]

 

review / Ignacio Urbasos Arbeloa

Iran Rising: The survival and Future of the Islamic Republic

Since its constitution in 1979, the Islamic Republic of Iran has been a conflictive actor, isolated and misunderstood by the international community and to a greater extent by its regional neighbors. Its origin, revolutionary in character and antagonistic to the Shah's pro-Western model , completely changed the geopolitics of the Middle East and the role of the US in the region. Both the Hostage Crisis and the bloody war against Saddam Hussein's Iraq left deep wounds in Iran's foreign relations. More than 40 years after the Revolution, the country remains in a dynamic that makes it impossible to normalize its relations International Office, always under the threat of armed conflict or economic sanctions. In this book, Amin Saikal describes in depth the ideological and political nature of the Ayatollahs' regime with the intention of generating a better understanding of the motivations and factors that explain their behavior.

The first chapters develop the concept of governance devised by Ayatollah Imam Khomeini, known as Velayat-E Faqih or Governance of the Guardian of Islam. A model defended by a non-majority faction of the revolution that managed to impose itself by the charisma of its leader and the enormous repression on the rest of the political groups. The political system resulting from the 1978 Revolution tries to confluence the Shiite teachings of Islam and a representative model with institutions such as the Majlis (parliament) or the President that to some extent simulates Western liberal democracy. This model is unique and has never been imitated despite the Islamic Republic's efforts to export it to the rest of the Muslim world.

In the internship, the system has proven to subject Iranian politics to schizophrenia, with a constant struggle between the power of the clerics -Supreme Leader and committee of Guardians- versus the executive and legislative power elected through elections. This tension, dubbed as Jihadi-Itjihadi (conservatism-flexibility) by Khomeini himself, has result been a resounding failure. The lack of clarity in the roles that religious groups play in the system results in unlimited power to repress and eliminate political opponents, as the house arrest of Khatami or Moussaoui demonstrates. This struggle generates duplicities at all levels with the omnipresence of the Iranian Revolutionary Guard (IRGC) in the armed forces, intelligence, social services and public enterprises. The lack of political transparency generates corruption and inefficiencies that hinder the development of a Economics that does not lack the human capital and natural resources to prosper.

Chapters 2 and 3 deal with the evolution of the system after the death of leader Khomeini in 1988 and the end of the war against Iraq. This new context allowed the entrance of new ideas to the Iranian political discussion . The controversial appointment of the ultra-conservative Ali Khamenei in 1989 as the new Supreme Leader meant reinforcing authoritarianism and the rigidity of religious power, but now without the undisputed leadership exercised by Khomeini. The presidency of Rafsanjani, a pragmatic conservative, marked the beginning of a trend within Iran that advocated normalizing the country's International Office .

However, it was Khatami who, since 1997, bet on a reconversion of the system towards a real democracy that respects Human Rights. His bet staff to improve relations with the US failed when he encountered an excessive distrust on the part of the Bush Administration. Not even Iran's exemplary response to the attacks on the Twin Towers in New York with an official condemnation of the attack and even a minute's silence observed by 60,000 people in Tehran on September 13, 2001 was enough for G.W. Bush to reconsider Iran as a part of the United States. Bush to reconsider Iran as part of the famous Axis of Evil that it constituted along with Syria, North Korea and Sudan. Despite achieving an average economic growth of 5% of GDP under his presidency, the lack of reciprocity from the international community created a complete rift between the reformist president and the conservative faction led by the Supreme Leader.

The period from 2005 to 2013 was marked by the presidency of the ultra-conservative Ahmadinejad, who ended without Khamenei's confidence by failing subject economically and bringing Iran to the brink of armed conflict. During this period the IRGC grew to dominate a good part of the ministries and 70% of Iran's GDP. His controversial reelection in 2009 with accusations of fraud by the civil service examination generated the green movement, the largest protests since 1979, which were harshly repressed.

Rouhani's arrival in 2013 could have been a historic occasion by aligning for the first time since 1988 the vision of a moderate president with that of the Supreme Leader. Rouhani, a pragmatic moderate, took over position with the goals of improving the living conditions of Iranians, reconciling relations with the West, increasing minority rights, and relaxing control over society. In subject of foreign policy, the Supreme Leader assumed the need to reach a agreement on the nuclear program knowing that, in its absence, an economic improvement in Iran would be very complicated. The JCPOA, although imperfect, allowed for a rapprochement between the West and Iran. The arrival of Donald Trump blew up the agreement and with it the harmony between Supreme Leader Khamenei and Rouhani, who now faces a growing conservative civil service examination considering his foreign policy a failure.

For the author, it is essential to understand the battle between elected institutions and religious institutions. Iranian politics works like a pendulum between the dominance of conservative factions protected by the religious and reformist factions boosted by elections. If benefits are offered to reformist moderates when they are in power, the chances of bringing about political change in Iran are greater than if conservatives are treated as harshly, argues Amin Saikal in the fourth and fifth chapters. Moreover, there is a correlation between those who know the West and those who do not. Khamenei and Ahmadinejad, the main representatives of the hardliners, have never visited Europe or the USA, while Rouhani, Khatami or Sharif are fluent in English and Western culture.

With a population under 30 years of age accounting for 50% of the total and a growing modernization of society in Tehran, the demands for reforms seem unstoppable. According to Amin Saikal, an intransigent policy with Iran when there is a willingness to open up only generates mistrust and reinforces the most conservative positions. Trump's policy with Iran, he concludes, demonstrates a lack of knowledge and understanding of its society and political system.

Categories Global Affairs: Middle East World order, diplomacy and governance Book reviews Iran

Aerial view of Dubai [Pixabay].

▲ Dubai Air Visa [Pixabay].

essay / Sebastián Bruzzone Martínez

I. ORIGIN AND FOUNDATION OF THE UNITED ARAB EMIRATES

In ancient times, the territory was inhabited by Arab tribes, nomadic farmers, artisans and traders, accustomed to plundering merchant ships of European powers that sailed along its coasts. Islam became established in the local culture in the 7th century AD, and Sunni Islam in the 11th century AD. Beginning in 1820, the United Kingdom signature with the rulers or sheikhs of the area a peace treaty to put an end to piracy. In 1853, both parties signed another agreement whereby the UK established a military protectorate in the territory. And in 1892, due to the pretensions of Russia, France and Germany, they signed a third agreement which guaranteed a monopoly on trade and exploitation only for the British. The Emirate zone was renamed from "Pirates' Coast" to " Trucial States " (the present seven United Arab Emirates, Qatar and Bahrain).

During World War I, the airfields and ports of the Gulf played an important role in the development conflict in favor of the United Kingdom. At the end of World War II in 1945, the League of Arab States (Arab League) was created, formed by those who enjoyed some colonial independence. The organization attracted the attention of the Truce States.

In 1960, the Organization of Petroleum Exporting Countries (OPEC) was created, with Saudi Arabia, Iran, Iraq, Kuwait and Venezuela as founders and headquartered in Vienna, Austria. The seven emirates, which would later form the United Arab Emirates, joined in 1967.

In 1968, the United Kingdom withdrew its military force from the region, and the Truce States organized the Federation of Emirates of the Persian Gulf, but it failed when Qatar and Bahrain became independent. In the following years, the exploitation of the enormous oil wells discovered years earlier began.

In 1971, six Emirates became independent from the British Empire: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al Qaywayn and Fujairah, forming the federation of the United Arab Emirates, with a legal system based on the 1971 constitution. Once consolidated, they joined the Arab League on June 12. The seventh emirate, Ras Al-Khaimah, joined the following year.

After the 1973 oil crisis, the UAE began to accumulate enormous wealth, because OPEC members decided not to export any more oil to the countries that supported Israel during the Yom Kippur war. Today, 80-85% of the UAE population is immigrant. The UAE became the third largest oil producer in the Middle East, after Saudi Arabia and Libya.

 

II. POLITICAL AND LEGAL SYSTEM

By the constitution of 1971, the United Arab Emirates is constituted as a federal monarchy. Each State is governed by its emir (degree scroll ). Each emirate has great political, legislative, economic and judicial autonomy, each having its own executive councils, always in correspondence with the federal government. There are no political parties. The federal authorities are composed of:

committee Supreme of the Federation or of Emirs: it is the supreme authority of the State. It is composed of the governors of the 7 Emirates, or those who replace them in their absence. Each Emirate has one vote in the deliberations. It establishes the general policy in the matters entrusted to the Federation, and studies and establishes the objectives and interests of the Federation.

President and Vice-President of the Federation: elected by the Supreme committee from among its members. The President exercises, by virtue of the Constitution, important powers such as the presidency of the Supreme committee ; signature of laws, decrees or resolutions ratified and issued by the committee; appointment of the President of the committee of Ministers and of the Vice President and ministers; acceptance of their resignations or their suspension from office at proposal of the President of the committee of Ministers. The Vice President exercises all presidential powers in his absence.

By tradition, not recognized in the Emirati Constitution, the sheikh of Abu Dhabi is the president of the country, and the sheikh of Dubai is the vice-president and Prime Minister.

Thus, Khalifa bin Zayed Al Nahyan, Sheikh of Abu Dhabi, has been President of the United Arab Emirates since 2004, and Mohammed bin Rashid Al Maktoum, Sheikh of Dubai, has been Prime Minister and Vice President since 2006.

committee of Ministers: composed of the President of the committee of Ministers, the Vice President and the Ministers. It is the executive body of the Federation. Supervised by the President and committee Supreme, its mission statement is to manage the internal and external affairs, which are of skill of the Federation by virtue of the Constitution and federal laws. It has certain prerogatives such as monitoring the implementation of the general policy of the Federal State at home and abroad; proposing draft federal laws and forwarding them to the Supreme committee of the Federation; supervising the execution of federal laws and resolutions, and the implementation of international treaties and conventions signed by the UAE.

Federal National Assembly: what would resemble a congress, but is a consultative body only. It is composed of 40 members: twenty elected by the eligible citizens, by census suffrage, of the UAE through general election, and the other half by the rulers of each Emirate. In December 2018, the president, Khalifa bin Zayed Al Nahyan, issued a decree providing for fifty percent of the Federal National Assembly (or FNC) to be filled by women, with the intention of "further empowering Emirati women and strengthening their contributions to the country's development ." It is distributed with seats: Abu Dhabi (8); Dubai (8); Sharjah (6); Ras Al Khaimah (6); Ajman (4); Umm Al Quwayn (4); and Fujairah (4). Federal and financial bills are submitted to it before being submitted to the President of the Federation for submission to the Supreme committee for ratification. The Government is also responsible for notifying the Assembly of international covenants and treaties. The Assembly studies and makes recommendations on matters of a public nature.

The Federal Administration of Justice: The judicial system of the United Arab Emirates is based on Sharia or Islamic law. The Constitution's article 94 states that justice is the basis of government and reaffirms the independence of the judiciary, stipulating that there is no authority over judges except the law and their own conscience in the exercise of their duties. The federal justice system is composed of courts of first instance written request and courts of first instance and courts of appeal (civil, criminal, commercial, contentious-administrative...).

There is also a Federal Supreme Court, consisting of a president and vocal judges, with powers such as reviewing the constitutionality of federal laws and unconstitutional acts.

In addition, the local Administration of Justice will hear all judicial cases that do not fall under the jurisdiction of the Federal Administration. It has three levels: first level written request, appeal and cassation.

The Constitution provides for the existence of an Attorney General, who presides over the Federal Public Prosecutor's Office, which is responsible for submitting statements of position in crimes committed in accordance with the provisions of the Code and procedure criminal of the Federation.

For promote the understanding between federal and local administrations, a Judicial Coordination committee , chaired by the Minister of Justice and composed of presidents and directors of the State's judicial bodies, has been in place since 2007. [1]

It is important to know that the Constitution of the Federation has guarantees of reinforcement and protection of human rights in its chapter III of freedoms, rights and public obligations, such as the principle of equality on the grounds of extraction, place of birth, religious belief or social position, although it does not mention gender, and social justice (art. 25); freedom of citizens (art. 26); freedom of opinion and guarantee of the means to express it (art. 30); freedom of movement and residency program (art. 29); religious freedom (art.32); right to privacy (arts. 31 and 36); rights of the family (art. 15); right to social welfare and social security (art. 16); right to Education (art. 17); right to health care (art. 19); right to work (art. 20); right to association and to form associations (art. 33); right to property (art. 21); and right to complain and right to litigate before the courts (art. 41).[2].

At first glance, it seems that these rights and guarantees contained in the 1971 Emirati Constitution are similar to those that would be found in a normal European and Western Constitution. However, they are nuanced and not as effective at internship. On the one hand, because most of them include references to the specific and applicable law, saying"...within the limits set by law; in accordance with the provisions set by law; or in cases where so provided by law". In this way, the legislator will ensure that these rights are consistent and compatible with Sharia or Islamic law, or with political interests, as the case may be.

On the other hand, these rights and guarantees fully protect Emirati nationals. Considering that 80-85% of the population is foreign, 15% of the total population of the State would be protected in a fully constitutional manner. By Federal Law No. 28/2005 concerning the status staff, the law applies to all citizens of the State of the United Arab Emirates provided that there are no special provisions for non-Muslims among them specific to their confession or religion. Likewise, its provisions apply to non-nationals when they are not obliged to comply with the legislation of their own country.

procedure L egal safeguards include the Federal Criminal Code (Act No. 3/1987); the Criminal Code (Act No. 35/1992); the Federal Act on the Regulation of Prison Reform Institutions (No. 43/1992); the Federal Act on the Regulation of Labor Relations (No. 8/1980); the Federal Act on Combating Trafficking in Persons (No. 51/2006); the Federal Act on the Status of staff (No. 28/2005); the Federal Act on Juvenile Offenders and Homeless Persons (No. 9/1976); Federal Act on Publications and Publishing (No. 15/1980); Federal Act on the Regulation of Human Organs (No. 15/1993); Federal Act on Associations Declared to be in the Public Interest (No. 2/2008); Federal Act on Social Welfare (No. 2/2001); Federal Act on Pensions and Social Insurance (No. 7/1999); Federal Act on Environmental Protection and development (No. 24/1999); and Federal Act on the Rights of Persons with Special Needs (No. 29/2006).

Military service of 9 months is compulsory for university men between 18 and 30 years of age, and of two years for those who do not have programs of study higher education. For women, it is optional and subject to the agreement of their tutor. Although the country is not a member of NATO, the Emirates has decided to join the Istanbul Cooperation Initiative (ICI) coalition, and to provide arms assistance in the war against the Islamic State.

In terms of international treaty guarantees and international cooperation, the UAE has made a great effort to include in its Constitution laws and principles protected by the United Nations Charter and the Universal Declaration of Human Rights, being a member of the UN and adhering to its treaties: International Convention on the Elimination of All Forms of Racial Discrimination (1974), Convention on the Rights of the Child (1997), UN Convention against Transnational Organized Crime (2007), Convention on the Elimination of All Forms of Discrimination against Women (2004); UN Convention against Corruption (2006), among others.

It has also ratified the Rome Statute of the International Criminal Court, the Arab Charter on Human Rights, and organizational conventions at work. It is a member of WHO, ILO, FAO, UNESCO, UNICEF, WIPO, World Bank and IMF. They are also linked by cooperation agreements with more than 28 international organizations of the United Nations carrying out advisory, technical and ministerial tasks.

They are members of the Arab League and the Organization of Islamic lecture , strengthening and promoting Arab efforts in their regional activities and programs.

The Emirati police maintain public order and state security. The Ministry of Interior places human rights at the forefront of its priorities, focusing on justice, equality, fairness and protection. Members of the police force must commit to 33 standards of conduct before taking up their post. The Ministry of the Interior provides administrative units for citizens to monitor police activity and take the necessary measures. However, there is a certain distrust of foreigners towards the police. Most complaints come from Emirati nationals.

The Ministry of the Interior should provide diplomatic and consular missions with lists including data of their nationals held in penitentiary institutions.

 

III. SOCIAL SYSTEM

The Emirati government has promoted civil societies and national institutions such as the Emirates Human Rights association (under Federal Law No. 6/1974), the General Women's Federation, association of Jurists, association of Sociologists, association of Journalists, General Administration of Human Rights Protection attached to the General Headquarters of the Dubai Police, Dubai Charitable Foundation for the Care of Women and Children, National Commission to Combat Human Trafficking, Social Support Center of the Abu Dhabi Police General Administration , Zayed Charities Institution, average Emirates Red Moon, Family Institution development , and the Mohammed bin Rashid Al Maktoum Foundation for Charitable and Humanitarian Works, and the Marriage Fund, among many others.

It is important to note that the development of political participation is following a progressive process. To date, there is a full and general election to designate half of the members of the Federal National Assembly, by census suffrage, for Emirati citizens and by publication of lists.

Also, the importance of women in the Emirati society is growing thanks to the legislative and legal measures taken by the government to empower women, through membership of the committee of development Social of the committee Economic and Social, to provide opportunities for women to actively participate in the development sustainable, and the integration of women in government and private-business sectors (with women accounting for 22.5% of the Assembly, 2006; expected to be 50% as of 2019 by decree)[3], and promoting female literacy to equalize it with male literacy. However, despite being signatories to the Convention on the Elimination of All Forms of Discrimination against Women, at internship they suffer discrimination in marriage and divorce proceedings. Fortunately, the Emirati legislation providing for the mistreatment of wives and minor children by the husband or father was abolished as long as the aggression did not exceed the limits allowed by Islamic law. Also, once married, women must obey their husbands and be authorized by them to take up employment. Likewise, cohabitation between unmarried men and women and sexual relations outside marriage are forbidden under penalty of imprisonment. Polygamy is present even in the royal family.

As in the rest of the Arab countries, homosexuality is considered a serious crime and punishable by fines, imprisonment and deportation in the case of foreigners, although enforcement is very weak.

The media play an important role in Emirati society. They are supervised by the National Media committee , which acts largely as a censor. They have reached a high technical and professional level in the journalistic sector, hosting more than a thousand specialized companies in the Dubai average City. However, journalism is controlled by the Federal Law on Press and Publications of 1980, and the Charter of Honor and the Morals of the Journalistic Profession, which the heads of essay have signed. For example, some news that may be unfavorable to Islam or the government would never be published in domestic newspapers, but would be published in foreign newspapers (case of Jordan's Haya). Since 2007, by a decree of the committee of Ministers, the imprisonment of journalists in case they made mistakes during the exercise of their professional duties was prohibited. However, it ceased to be applied with the entrance enforcement of the Law against cybercrime adopted in 2012.

The government is making efforts to improve the conditions of work, because the UAE is convinced that human beings have the right to enjoy adequate living conditions (housing, working hours, means, labor courts, health insurance, protective guarantees in labor disputes at the international cooperative level...) However, the "Sponsor" or "Kafala" system , by which a employer exercises the sponsorship of its employees, is still in force. Thus, there are cases in which the sponsor retains the passports of its employees during the term of the contract, which is illegal, but they have never been investigated and punished by the government (case of the Saadiyat Island construction project ), despite being a signatory to the UN conventions on work .

The latest report on development Human corresponding to 2018, ranks the United Arab Emirates 34th out of 189 countries. Spain is ranked 26th. The State has ensured free and quality Education up to the university stage for all Emirati citizens, and the integration of disabled people. University and higher Education centers have been positively encouraged by the government, such as the United Arab Emirates University, Zayed University, or New York University in Abu Dhabi. Healthcare has improved considerably with the construction of hospitals and clinics, lowering fees mortality rates and increasing life expectancy, standing at 77.6 years (2016). The State allocates money from the public coffers to social care for the most disadvantaged sectors of the Emirati population and for the elderly, widows, orphans or the disabled. It has also ensured that citizens have decent housing through government agencies such as the Ministry of Public Works, the Zayed Housing Program that offers interest-free mortgage loans, the Abu Dhabi Mortgage Agency loan , the Mohammed bin Rashid Institution for Housing that provides loans, and the Sharjah Public Works Agency.

In terms of religion, approximately 75% of the population is Muslim. Islam is the official religion of the United Arab Emirates. The government follows a tolerant policy towards other religions, and prohibits non-Muslims from interfering with the Islamic Education . The evangelization of other religions is prohibited, and the internship of these religions must be carried out in authorized places.

On February 3, 2019, at the beginning of the Year of Tolerance, Pope Francis was received with the highest honors in Abu Dhabi by Crown Prince Mohammed bin Zayed Al Nahyan, Vice President and Emir of Dubai Mohammed bin Rashid al Maktoum, and Ahmed al Tayyeb, Grand Imam of Al-Azhar University and main Islamic theological reference, being the first time that the head of the Catholic Church set foot on the Arabian Peninsula. Likewise, the Pope officiated a mass in Zayed Sport City in front of 150,000 people, saying in his homily: "let us be an oasis of peace". The event was described by Mike Pompeo, US Secretary of State, as "a historic moment for religious freedom".

There are projects for the development of remote regions, which seek to modernize the infrastructures and services of those areas of the State that are farthest from population centers. Also, by virtue of Federal Law No. 47/1992, the Marriage Fund was created, whose goal purpose is to encourage marriage between citizens and promote the family, which according to the government is the basic unit and fundamental pillar of society, by offering financial subsidies to citizens with limited resources to help them meet wedding expenses and contribute to achieving family stability in society.

 

IV. ECONOMICS

Since 1973, the UAE has undergone a huge transformation and modernization thanks to the exploitation of oil, which accounted for 80% of GDP at that time. In recent years, with the knowledge that in less than 40 years oil will run out, the government has diversified its Economics into financial services, tourism, commerce, transportation and infrastructure, with oil and gas making up only 20% of the national GDP.

Abu Dhabi accounts for 90% of the oil and gas reserves, followed by Dubai, and in small quantities in Sharjah and Ras Al Khaimah. The country's oil policy is carried out through the Supreme Petroleum committee and the Abu Dhabi National Oil Company (ADNOC). The main foreign oil companies operating in the country are BP, Shell, ExxonMobil, Total, Petrofac or Partex, and the Spanish company CEPSA, of which the Emirati sovereign wealth fund Mubadala owns 80% of business.

The borrowing capacity of financial companies was strongly negatively affected during the economic crisis of 2008. The entrance of large foreign private capital came to a standstill, as did investment in the property and construction sectors. The fall in property values forced liquidity to be restricted. In 2009, local companies were seeking moratorium agreements with their creditors on $26 billion in debt. The Abu Dhabi government provided a $5 billion bailout to reassure international investors.

Tourism and infrastructure is a success story for the country, especially in Dubai. 4 ] The construction of luxury tourist attractions such as the Palm Islands and the Burj al-Arab, and the good weather most of the year, has attracted Westerners and people from all over the world. According to the Emirati government, the tourism industry generates more money than oil does today. Major investments are being made in renewable energy, notably through Masdar, the government's business , which has project Masdar City underway, the creation of a city powered solely by renewable energy.

 

V. DYNASTIES AND ROYAL FAMILIES. THE AL NAHYAN DYNASTY

The United Arab Emirates consists of seven Emirates and is ruled by six families:

Abu Dhabi: by the Al Nahyan family (Al Falahi House)

Dubai: by the Al Maktum family (Al Falasi House)

Sharjah and Ras Al Khaimah: by the Al Qassimi Family

Ajman: by the Al Nuaimi family

Umm Al Quwain: by the Al Mualla Family

Fujairah: by the Al Sharqi family

It is important to know the terminology used in the family tree of the Emirati royal families: "Sheikh" means sheikh, and an emir is degree scroll nobiliary attributed to sheikhs. In the composition of the names, the proper name of the descendant is placed first, followed by the infix "bin" meaning "of", plus the proper name of his father, and the surname of the family. The infix is "bint" for women.

For example: Sheikh Sultan bin Zayed Al Nahyan is the father of Sheikh Zayed bin Sultan Al Nahyan.

It is common for marriages to take place between the ruling families of the different Emirates, intertwining dynasties, but the husband's surname will always prevail over the wife's in the name of the children. Contrary to the great European monarchies in which the reign is transmitted from fathers to sons, in the Emirate families the power is transmitted first between brothers, by appointment, and as second resource, to the sons. These positions of power must be ratified by the Supreme committee .

The Al Nahyan family of Abu Dhabi is a branch of the Al Falahi House. This is a royal house belonging to Bani Yas and is related to the Al Falasi House to which the Al Maktoum family of Dubai belongs. Bani Yas is known to be a very old tribal confederation of the Liwa Oasis region. There are few historical data about its exact origin. The Al Nahyan royal family is incredibly large, as each of the brothers has had several children and with different women. The most important and recent governors of Abu Dhabi would be those who have been in power since 1971, when the UAE consolidated as a country, ceasing to be a Truce State and British protectorate. They are:

Zayed bin Sultan Al Nahyan (1918-2004): was governor of Abu Dhabi from 1966 until his death. He collaborated closely with the British Empire to maintain the integrity of the territory in the face of Saudi Arabia's expansionist pretensions. He is considered the Father of the Nation and founder of the United Arab Emirates, along with his counterpart Rashid bin Saeed Al Maktoum of Dubai. Both pledged to form a Federation together with other rulers after the British military withdrawal. He was the first president of the United Arab Emirates, and was re-elected four times: 1976, 1981, 1986 and 1991. Zayed was characterized as sympathetic, peaceful and united with neighboring emirates, charitable in terms of donations, relatively liberal and permissive of private means. He was considered one of the richest men in the world by Forbes magazine, with a net worth of twenty billion dollars.

He died at the age of 86 and was buried at the Sheikh Zayed Grand Mosque in Abu Dhabi. He was succeeded at position by his first-born son Khalifa as ruler and ratified president of the UAE by the Supreme committee .

He had six wives: Hassa bint Mohammed bin Khalifa Al Nahyan, Sheikha bint Madhad Al Mashghouni, Fatima bint Mubarak Al Ketbi, Mouza bint Suhail bin Awaidah Al Khaili, Ayesha bint Ali Al Darmaki, Amna bint Salah bin Buduwa Al Darmaki, and Shamsa bint Mohammed bin Khalifa Al Nahyan; and thirty children, of whom some are as follows:

Khalifa bin Zayed Al Nahyan (1948-present): eldest son of the above, whose mother is Hassa bint Mohammed bin Khalifa Al Nahyan, is the current governor of Abu Dhabi and president of the United Arab Emirates. His wife is Shamsa bint Suhail Al Mazrouei, with whom he has eight children. He also holds other positions: Supreme Commander of the Armed Forces, chairman of the Supreme Petroleum committee , and chairman of the Abu Dhabi Investment Authority. He was educated at the Royal Military Academy Sandhurst in the UK. Previously, he was appointed Crown Prince of Abu Dhabi; Head of the Abu Dhabi Defense department , which would become the Emirates Armed Forces; Prime Minister, Abu Dhabi Chief of Staff, Minister of Defense and Finance; Second Deputy Prime Minister of the UAE and Chairman of the Abu Dhabi Executive committee . Dubai's Burj Khalifa is named after him, as he paid the money needed to complete its construction. He intervened militarily in Libya by sending the Air Force along with NATO, and pledged support for the democratic uprising in Bahrain in 2011.

According to a WikiLeaks leak, the U.S. ambassador describes him as "distant and uncharismatic character". He has been criticized for his spendthrift character (purchase of the Azzam yacht, scandal of the construction of the palace and purchase of territories in the Seychelles, the Panama Papers and the revelation of properties in London and front companies...).

In 2014, according to the official version, Khalifa suffered a stroke and underwent surgery. According to the government, he is stable, but has virtually disappeared from the public eye.

Mohammed bin Zayed Al Nahyan (1961-present): brother of Khalifa, but whose mother is Fatima bint Mubarak Al Ketbi. He is the crown prince of Abu Dhabi, deputy supreme commander of the Armed Forces, and entrusted with the execution of presidential affairs, receptions of foreign dignitaries and political decisions due to the President's poor health. Also, like Khalifa, he was educated at the Royal Military Academy Sandhurst. He has been an Officer in the Presidential Guard and a pilot in the Air Force. He is married to Salama bint Hamdan Al Nahyan, and has nine children.

He has been characterized by his activist foreign policy and against Islamist extremism, and charitable character (partnership with the Bill and Melinda Gates Foundation for vaccines in Afghanistan and Pakistan). International governments such as France, Singapore and the United States have invited Mohammed to various events and bilateral dialogues. He has even met with Pope Francis twice (Rome, 2016; Abu Dhabi, 2019), promoting the Year of Tolerance.

At subject economic, he is the Chairman of the Mubadala sovereign wealth fund and Head of Abu Dhabi's committee for the development Economic. He has C billion-dollar economic stimulus projects for the country's modernization in the energy and infrastructure sectors.

She has also promoted women's empowerment by welcoming a delegation of women officers from the Arab Women's Military and Peacekeeping Program, who are preparing for UN peace operations. She has encouraged the presence of women in public services, and has pledged to meet regularly with female representatives of the country's institutions.

Sultan bin Zayed Al Nahyan (1955-present): Zayed's second son. He has six children. He is the son of Shamsa bint Mohammed bin Khalifa Al Nahyan. He was educated at Millfield School and Sandhurst Military Academy like his two previous brothers. He is the third deputy prime minister of the UAE, a member of the Supreme Petroleum committee and a member of the Abu Dhabi Investment Authority.

Hamdan bin Zayed Al Nahyan (1963-present): fifth son of Zayed, whose mother is Fatima bint Mubarak Al Ketbi. He is married to Shamsa bint Hamdan bin Mohammed Al Nahyan. He was educated at the Sandhurst Military Academy. He held the position of Deputy Prime Minister and Minister of State for Foreign Affairs until 2009. He is currently the emir's representative in the western region of Abu Dhabi. He is graduate in Political Science and Business Administration from the United Arab Emirates University.

Nahyan bin Mubarak al Nahyan (1951-present): son of Mubarak bin Mohammed Al Nahyan. He is the current head of the UAE Ministry of Tolerance since 2017. From 2016 to 2017, he served as Minister of Culture and development of knowledge. Also, he devoted years of his life to the establishment of higher Education centers such as UAE University (1983-2013), technical school of Technology (1988-2013), and Zayed University (1998-2013). Also, he is the chairman of Warid Telecom International, a business Telecommunications, and the chairman of group Abu Dhabi Banking, Union National Bank and United Bank Limited, among other companies.

Abdullah bin Zayed Al Nahyan (1972-present): Ninth son of Zayed, whose mother is Fatima bint Mubarak Al Ketbi. He is married to Al Jazia bint Saif bin Mohammed Al Nahyan, with whom he has five children. He has held the position of Minister of Foreign Affairs and International Cooperation of the United Arab Emirates since 2006 at position . He holds a degree in Political Science from the United Arab Emirates University, graduate . During his tenure, the UAE has seen a great expansion in its diplomatic relations with countries in South America, South Pacific, Africa and Asia, and a consolidation with Western countries. He is a member of the country's National Security committee , Vice Chairman of the Permanent committee of Borders, Chairman of the National Media committee , Chairman of the board of Directors of the Emirates Foundation for Youth development , Vice Chairman of the board of Directors of the Abu Dhabi Fund for the development and Member of the board of the high school of National Defense. He was Minister of Information and Culture from 1997 to 2006, and Chairman of Emirates average Incorporated.

Mansour bin Zayed Al Nahyan (1970-present): eighth son of Zayed, whose mother is Fatima bint Mubarak Al Ketbi. He is married to two wives, Alia bint Mohammed bin Butti Al Hamed, and Manal bint Mohammed Al Maktoum, with whom he has six children in total. He has held the positions of Deputy Prime Minister and Minister of Presidential Affairs of the UAE since 2009. He is chairman of the committee Ministerial Services, Emirates Investment Authority and Emirates Racing Authority. He is a member of the Supreme Petroleum committee and the Abu Dhabi Investment committee . He was educated at Santa Barbara Community College in the United States, and holds a B.A. in International Affairs from the United Arab Emirates University. He chairs the National Documentation Center and research and the Abu Dhabi Fund for development. He was Chairman of First Gulf Bank until 2006.

He has a developed business vision. He is the owner of the English soccer team Manchester City, and co-owner of New York City of the MLS, an American professional soccer league. He is a member of the board of directors of the Abu Dhabi Investment Authority board , has a 32% stake in Virgin Galactic, a 9.1% stake in Daimler, and owns Abu Dhabi average Investment Corporation, through which he owns the English newspaper The National.

position Saif bin Zayed Al Nahyan(1968-present): twelfth son of Zayed, whose mother is Mouza bint Suhail Al Khaili. He has been Deputy Prime Minister since 2009 and Minister of Interior since 2004. His role is to ensure the internal protection and national security of the UAE. He holds a degree in Political Science from the United Arab Emirates University, graduate . He was Director General of the Abu Dhabi Police in 1995, and Undersecretary of the Ministry of Interior in 1997, until his appointment as Minister.

Hazza bin Zayed Al Nahyan (1965-present): fifth son of Zayed, whose mother is Fatima bint Mubarak Al Ketbi. He is married to Mozah bint Mohammed bin Butti Al Hamed, with whom he has five children. He holds the post of Minister of National Security of the UAE, Vice Chairman of the Executive committee of the Emirate of Abu Dhabi and Chairman of the Emirates Identity Authority.

Nasser bin Zayed Al Nahyan (1967-2008): son of Zayed, whose mother is Amna bint Salah Al Badi. He was president of the department Planning and Economics of Abu Dhabi, and was an officer of the royal security. According to the official version, he died at the age of 41 when the helicopter in which he was traveling with his friends crashed off the coast of Abu Dhabi. He was buried at the Sheikh Sultan bin Zayed Mosque, and three days of mourning were declared throughout the UAE.

Issa bin Zayed Al Nahyan (1970-present): son of Zayed, whose mother is Amna bint Salah Al Badi. He is a prestigious real estate developer in the city of Dubai, but does not occupy any political position in the government of the Emirates. He starred in a case in which, allegedly, in a leaked video, he himself tortured two Palestinians who were his business partners. The Emirati court declared in a final judgment that Issa was innocent because he was the victim of a conspiracy and sentenced the Palestinians to five years' imprisonment for drug use, recording, publication and blackmail. International observers sharply criticized the Emirati judicial system and called for an overhaul of the country's penal code.

From my point of view, and with the experience of having lived in the country, the United Arab Emirates is a very unknown country for the Spanish youth and has incredible professional opportunities due to the demand for foreign work , a very high quality of life at an affordable price, as salaries are quite high, and a strong and modernized Administration and institutions. The culture shock is not very big, as the State makes sure to avoid discriminatory situations, unlike other Arab countries. I can say with full conviction that cultural tolerance is real. However, foreigners should keep in mind that it is not a western country, and it is recommended to respect the customs of the nation regarding dress, sacred places and public performances, and to know the basic Emirati law.

Categories Global Affairs: Middle East World order, diplomacy and governance Essays Saudi Arabia and the Persian Gulf

ESSAY / Jairo Císcar Ruiz[Spanish version].

In recent months, the open commercial hostilities between the United States of America and the People's Republic of China have taken over the main generalist headlines and specialized economic publications of the entire world. The so-called "commercial war" between these two superpowers is nothing but the successive escalation of the imposition of tariffs and special taxes on products and original manufacturing of the countries in conflict. This, in economic numbers, assumes that the US imposed in 2018 special tariffs on US $ 250 billion of imported Chinese products (of a total of US $ 539 billion), while China for its part imposed tariffs on 110 of the US $ 120 billion of North American import products. [1] These tariffs supposed for the American consumer and companies an increase of US $ 3 billion in additional taxes. This analysis wants, therefore, to explain and show the position and future of the European Union in this commercial war in a general way.

This small reminder of numbers illustrates the magnitude of the challenge to the world economy posed by this clash between the two economic locomotives of the world. It is not China who is paying the tariffs, as Trump said literally on May 9 during a meeting with journalists, [2] but the reality is much more complex, and obviously, as in the case of the inclusion of Huawei in the commercial blacklist ( and therefore the prohibition to acquire any item on American soil, neither hardware nor software, without prior agreement with the Administration), which may affect more than 1,200 North American companies and hundreds of millions of customers globally, according to BBC, [3] the economic war may soon begin to be a great drag on the global economy. On June 2, Pierre Moscovici, European Commissioner for Economic Affairs, predicted that if the confrontation continues, both China and the US could lose between 5 and 6 tenths of GDP, underlining in a special way that "protectionism is the main threat to growth worldwide." [4]

As can be inferred from the words of Moscovici, the commercial war does not concern only the countries directly involved in it, but is closely followed by other actors in international politics, especially the European Union. The European Union is the largest single market in the world, this being one of the fundamental premises and pillars of the very existence of the EU. But it is not already focused on domestic trade, but is one of the major commercial powers of export and import, being one of the main voices that advocate healthy trade relations that are mutually beneficial for the different economic actors at a global and regional level. This opening to business means that 30% of EU GDP comes from foreign trade and makes it the main actor when doing import and export business. To illustrate briefly, according to the data of the European Commission [5] in the last year (May 2018-April 2019), the EU made imports worth € 2,022 billion (a growth of 7%) and exported 4% more, with a total of € 1,987 billion. The balance of trade is, therefore, in a negative balance of € 35 billion, which, due to the large volume of imports and exports and the nominal GDP of the EU (taking 18'8 trillion euros as data) is only 0.18% of the total GDP of the EU. The USA was the main place of export from the EU, while China was the first place of import. These data are revealing and interesting: an important part of the EU economy depends on the business with these two countries and a bad performance of its economy could weigh on the own of the member countries of the EU. Another fact that illustrates the importance of the EU in commercial matters is that of Foreign Direct Investment (FDI). In 2018, 52% of global FDI came from countries within the European Union and this received 38.5% of the total investment worldwide, being a leader in both indicators. Therefore, it can be said that the current trade war can pose a serious problem for the future European economy, but, as we will see later, the Union can emerge strengthened and even benefit from this situation if it manages to thrive between the difficulties, businesses and strategies. of the two countries. But let's see, first, the EU's relations with both the US and China.

The US-EU relationship has traditionally been (though with ups and downs) the strongest in the international sphere. The United States is the main ally in defense, politics, economy and diplomacy of the European Union and vice versa. The economic, political, cultural model is shared; as well as the main collective defense organization at world level, NATO. However, in the so-called transatlantic relationship, there have always been clashes, accentuated in recent times by the Obama Administration and habitual with Trump. With the current administration, not only have the EU been reproached within NATO (regarding the failure of member countries to invest the required budget, shared the criticism with the United Kingdom), but an outbreak of tariff warfare has started in all rule.

In barely two years it has gone from the negotiations of the TTIP (Transatlantic Trade and Investment Partnership), the announced 21st century trading base that finally failed in the last few bars of Obama in the White House, to the current situation of extreme protectionism in USA and EU response. Especially illustrative is the succession of events that have taken place in the last year: at the stroke of Twitter, in March 2018 the US unilaterally imposed global tariffs on steel (25%) and aluminum (10%) to protect American industry. [6] These tariffs not only affected China, they also inflicted great damage on companies in European countries such as Germany. It was also in the air to apply tariffs of 25% to vehicles of European origin. After a harsh climate of mutual reproach, on July 25, Jean Claude Juncker, president of the European Commission, announced with Trump an agreement to lower tariffs on agricultural products and services, and committing the US to review the imposition of metallurgical tariffs to the EU, as well as to support within the World Trade Organization the European proclamations for a reform of Intellectual Property laws, which China does not respect. [7] However, after the reiteration of the transatlantic friendship and Trump's announcement of "we are going towards zero tariffs", [8] Europe was slapped with a dose of reality. On April 9 of this current year, Trump announced on Twitter the imposition of tariffs on the EU worth US $ 11,000 million for the support of the EU to Airbus (competition from the North American Boeing, Lockheed Martin ... ), completely burning the beginning of agreement stablished July of last year. The EU for its part threatened to impose tariffs of € 19 billion for US state support for Boeing. As can be seen, the EU, despite its traditional conciliatory role and many times subjugated to the US, has decided to counterattack and not allow more menaces by the American side. The last threat, in mid-July, goes against French wine (and due to the European mechanism, against all stocks of European origin, including Spanish). This threat has been described as "ridiculous", [9] since the US consumes more wine than it produces (it is the world's largest consumer) and therefore, the available supply could be quite diminished.

It is still early to see the real impact that the commercial war is having in the US, beyond the 7.4% drop in exports from the US to China [10] and the damage that consumers are suffering, but the Nobel Prize in Economics Robert Schiller, in an interview for CNBC [11] and the President of the World Trade Organization, Roberto Azevedo, for the BBC; They have already expressed their fears that if the situation and protectionist policies continue that way, we could face the biggest economic crisis since the end of the Second World War. It is difficult to elucidate what the future relationship between Europe and its main exporting partner, the United States, will be like. Everything indicates that the friction and elevation of the tone will continue if the American Administration does not decide to lower its rhetoric and acts against free trade with Europe. Finally, it must be clear (and with the intention of reducing the sometimes overly alarmist tone of the news) that between the threats (either by Twitter or spokespersons) on both sides and the effective imposition of tariffs (in the US after the announcement) of the Office of the US Trade Representative, in the EU through the approval of the 28) is a long way off, and do not confuse potential acts and facts. It is evident that despite the hardness of the tone, the negotiating teams from both sides of the Atlantic are still in contact and try to avoid as much as possible damaging actions for both.

On the other hand, the relationship between China and Europe is frankly different from the relationship with the US. The Belt and Road Initiative (BRI) (to which Italy has formally adhered) is the confirmation of China's commitment to be the next leader in the world economy. Through this initiative, President Xi Jinping aims to redistribute and streamline trade flows to and from China by land and sea. For this, the stability of South Asian countries such as Pakistan and Afghanistan is vital, as well as being able to control vital points of maritime traffic such as the Strait of Malacca or the South China Sea. The Asian "dragon" has an internal situation that favors its growth (6.6% of its GDP in 2018, being the worst data for 30 years is an overwhelming figure), since the relative efficiency of its authoritarian system and , especially, the great support of the State to companies boost their growth, as well as also having the largest reserves of foreign currency, especially dollars and euros, which allow great stability of the country's economy. The Chinese currency, the Renminbi, has been declared by the IMF as a world reserve currency, which is another indicator of the good health that is predicted for the Chinese economy in the future.

For the EU, China is a competitor, but also a strategic partner and a negotiating partner. [12] China is for the EU its main importing partner, totaling 20.2% of imports (€ 395 billion), and 10.5% of exports (€ 210 billion). The volume of imports is such that, although the vast majority arrive at the European continent by sea, there is a railway connection that, covered by the BRI, unites the entire Eurasian continent, from the manufacturing capital of China, Yiwu , and the last stop at the southern tip of Europe, Madrid. Despite the fact that part of what is imported continues to be "low- end" goods, that is, products of basic manufacture and cheap unit price, since the entry of China into the WTO, in December 2001, the concept of material produced in China has changed radically: the great abundance of rare earths in Chinese territory, together with the advance in its industrialization and investment in new technologies (in which China is a leader) have meant that we no longer think of China only as a producer of bazaars in China. dough; On the contrary, the majority of imports into the EU from China were high-end machinery and products, of high technology (especially telecommunications equipment and data processing).

In the aforementioned press release from the European Commission, China is warned to face the commitments made in the Kyoto Protocols and Paris Agreements regarding greenhouse gas emissions; and urges the Asian country to respect the dictates of the WTO, especially in terms of technology transfer, state subsidies and illicit practices such as dumping.

These aspects are vital for economic relations with China. At a time when most of the countries in the world signed or are part of the Paris Agreements for the reduction of greenhouse gas emissions, while the EU is making efforts to reduce its pollution (closing coal plants and mines; putting special taxes on energy obtained from non-renewable sources ...), China, which accounts for 30% of global emissions, increased its emissions by 3% in 2018. This, beyond the harmful effects for the climate, has industrial and economic benefits: while in Europe the industries are narrowing their profit margins due to the increase in energy prices; China, which feeds on coal, provides cheaper energy to its companies, which, without active restrictions, can produce more at a cheaper price. An example of how the climate affects economic relations with China is the recent announcement [13] of AcerlorMittal to reduce its total steel production in Europe by 3 million tons (over 44 million usual production) due to the high costs of electricity and to the increase in the import of countries from outside the EU (especially China) that with excess production are lowering prices worldwide. This practice, named dumping, which is especially used in China, is to flood the market with an overproduction of a certain product (overproduction is paid with government subsidies) to lower prices. Until December 2018, in the last 3 years, the EU has had to impose more than 116 sanctions and anti-dumping measures against Chinese products. [14] This shows that, despite the attempts of the EU to negotiate in terms satisfactory to both, China does not comply with the stipulations of the agreements with the EU and the WTO. Especially thorny is the problem with the companies controlled by the government (the ban of 5G networks in Europe, controlled by Chinese suppliers, for security reasons), which have practically monopoly in the interior of the country, is being studied; and above all, the distorted reading of legality by the Chinese authorities, which try to use all possible mechanisms in their favor, making difficult or impeding the direct investment of foreign capital in their country, as well as imposing requirements (need to have Chinese partners, etc.) that hinder the international expansion of small and medium enterprises.

The greatest friction with the EU, however, is the forced transfer of technology to the Government, especially by strategic product companies such as hydrocarbons, pharmaceuticals and the automotive industry, [15] imposed by laws and as a conditio sine qua non companies cannot land in the country. This creates a climate of unfair competition and direct attack on international trade laws. The direct investment of Chinese capital in critical industries and producers in the EU has provoked voices calling for greater control and even vetoes on these investments in certain areas for Defense and Security issues within the EU. The lack of protection of intellectual rights or patents are also important points of complaint by the EU, which aims to create through diplomacy and international organizations a favorable climate for the promotion of equal commercial relations between the two countries, as it is reflected in the various European guidelines and plans on the subject.

As we have seen, the commercial war is not limited only to the US and China, but third parties are suffering and even actively participating in it. Here the question arises. Can the EU benefit in any way and avoid a new crisis? Despite the pessimistic environment, the EU can obtain multiple benefits from this trade war if it manages to adequately maneuver and avoid as far as possible more tariff impositions against its products and keeps the market open. If the trade war continues and the positions of the US and China harden, the EU, as the main partner of both, could receive benefits thanks to a redistribution of the flow of trade. So, to avoid the loss due to tariffs, both China and the US could sell products with heavy taxes in the other country to the European market, but, especially, import products from Europe, as they have not imposed huge tariffs against EU products. If an agreement is reached with the US to eliminate or minimize tariffs, the EU would be faced with a huge niche market left by Chinese products banned or taxed in the US. The same in China, especially in the automotive sector, from which the EU could benefit by selling to the Chinese market. Alicia García-Herrero, of the Belgian think tank Bruegel), affirms that the benefit for Europe will only be possible if it does not lean towards any of the contenders and remains neutral on the economic level. [16] It also highlights, like the European Commission, that China must adopt measures to guarantee its reciprocity and market access, since the European Union continues to have greater volume of business and investments with the US, so the Chinese offer should be highly attractive to European producers as considering directing products to China instead of the US. The UN itself figures in US $ 70 billion the benefits that the EU could absorb thanks to the trade war. [17] Definitely, if the right measures are taken and the 28 draw an appropriate road map, the EU could benefit from this war, without forgetting that, as the EU itself advocates, coercive measures are not the solution to the trade problem, and hopes that, due to its ineffectiveness and damage to both consumers and producers, the tariff war will come to an end and, if differences persist, they will be elucidated in the WTO Appellate Body, or in the Permanent Court of Arbitration of the United Nations.

This commercial war is a highly complex and with different views issue. This analysis has tried to address a large part of the aspects, data and problems that the European Union faces in this commercial war. It has been analyzed generally in what the commercial war consists, as well as the relations between the EU, China and the USA. We are facing a gray future, with the possibility of multiple and rapid turns (especially from the US, as could be seen after Osaka's G20 summit, when Trump accept to sell some key components to Huawei, but not to remove the company from their blacklist) and from which, if the requirements and conditions set out above are met, the EU will definitely benefit, not only in the economic plan, but by staying together and making a common front, it will be an example of negotiation and economic freedom for the whole world.

 

REFERENCES

Thomas, D. (14-5-2019) Who loses in the China-US trade war. BBC. Retrieved from.

Blake, A. (9-5-2019) Trump's rambling, disappointing Q&A with reporters, annotated. The Washington Post. Retrieved from.

3. Huawei: US blacklist will harm billions of consumers (29-5-2019) BBC. Retrieved from

4. EU warns China and the US: a trade war would subtract 0.6 points of GDP(3-6-2019) El Confidencial. Retrieved from

5. European Union Trade Statistics. (18-6-2019) European Commission.Retrieved from: http://ec.europa.eu/trade/policy/eu-position-in-world-trade/statistics/

6. Pozzi, S. (2-3-2018) Trump reaffirms protectionism by raising tariffs on imported steel and aluminum. El País (New York correspondent)Retrieved from.

7. Inchaurraga, I. G. (2013). China and GATT (1986-1994): Causes and consequences of the failure of a negotiation. Cizur Menor, Navarra: Aranzadi. pp. 204-230.

8. Tejero, M. (25-7-2018) agreement EU-US: "zero tariffs" on industrial goods; more soybeans and liquefied gas. El Confidencial. Retrieved from.

9. Pardo,P. & Villaécija, R. (17-6-2019) Trump threatens Spanish wine. El Mundo. Retrieved from.

10. A quick guide to US-China Trade War (14-5-2019) BBC. Retrieved from

11. Rosenfeld, E. & Soong, M. (25-3-2018) Nobel-winner Robert Shiller warns of an 'economic crisis' from trade war threats. CNBC. Retrieved from.

12. EU reviews relations with China and proposes 10 actions. (12-3-2019) European Commission- statement de Prensa.

13. Asturias takes 23% of Arcelor's new EU production cut(6-5-2019) 5 Días Retrieved from.

14. Morales, R. (26-12-2018) EU increased 28.3% its antidumping measures in 3 years: WTO. El Economista Mexico. Retrieved from

15. Warning about forced technology transfer to Chinese government.(20-5-2019) Infobae. Retrieved from

16. García-Herrero, A.; Guardans, I. & Hamilton, C. (28-6-2018) Trade War Trinity: analysis of global consequences. Bruegel (lecture). Retrieved from.

17. European Union, the big beneficiary of the trade war between China and the U.S.(4-2-2019) UN News . Retrieved from

essay / Jairo Císcar Ruiz [English version].

In recent months, the open trade hostilities between the United States of America and the People's Republic of China have dominated the main general headlines and specialized economic publications around the world. The so-called "trade war" between these two superpowers is nothing more than the successive escalation of the imposition of tariffs and special levies on original products and manufactured goods from the countries in confrontation. This, in economic figures, means that the US imposed in 2018 special tariffs on US$250 billion of imported Chinese products (out of a total of US$539 billion), while China for its part imposed tariffs on 110 out of US$120 billion of US import products [1]. These tariffs meant an increase of US$3 billion in additional taxes for American consumers and businesses. This analysis is therefore intended to explain and show the position and future of the European Union in this trade war in a general way.

This small reminder of the figures illustrates the magnitude of the challenge for the global Economics posed by this clash between the world's two economic locomotives. It is not China who is paying the tariffs, as Trump literally said on May 9 during a meeting with journalists [2], but the reality is much more complex, and, evidently, as in the case of the inclusion of Huawei in the trade blacklist (and therefore the prohibition to purchase any item on US soil, whether hardware or software, without a prior agreement with the Administration), which may affect more than 1.200 American companies and hundreds of millions of customers globally according to the BBC [3], the economic war may soon start to be a great burden for Economics globally. On June 2, Pierre Moscovici, European Commissioner for Economic Affairs, predicted that if the confrontation continues, both China and the USA could lose between 5 and 6 tenths of GDP, stressing in particular that "protectionism is the main threat to world growth" [4].

As can be inferred from Moscovici's words, the trade war is not only of concern to the countries directly involved in it, but is closely followed by other actors in international politics, especially the European Union.The European Union is the largest Single Market in the world, this being one of the premises and fundamental pillars of the EU's very existence. But it is no longer focused on internal trade, but is one of the major trading powers for exports and imports, being one of the main voices advocating healthy trade relations that are of mutual benefit to the different economic actors at global and regional level. This openness to business means that 30% of the EU's GDP comes from foreign trade and makes it the main player when it comes to doing import and export business. To illustrate briefly, from agreement with the data of the European Commission [5] in the last year (May 2018-April 2019), the EU made imports worth €2,022 billion (a growth of 7%) and exported 4% more, with a total of €1,987 billion. The trade balance is therefore a negative balance of €35 billion, which, due to the large volume of imports and exports and the nominal GDP of the EU (taking the figure of 18.8 trillion euros) is only 0.18% of the EU's total GDP. The USA was the main place of export from the EU, while China was the first place of import. These data are revealing and interesting: an important part of the EU's Economics depends on business with these two countries and a bad performance of their Economics could weigh down the EU member countries' own.

Another data that illustrates the importance of the EU in subject trade is that of Foreign Direct Investment (FDI). In 2018, 52% of global FDI came from countries within the EU and the EU received 38.5% of total investment globally, leading on both indicators. It can therefore be said that the current trade war may pose a serious problem for the future European Economics , but, as we will see below, the Union can emerge strengthened and even benefit from this status if it manages to mediate well between the difficulties, businesses and strategies of the two countries. But let us first look at the EU's relations with both the US and China.

The US-EU relationship has traditionally been (albeit with ups and downs) the strongest in the international sphere. The United States is the main ally in defense, politics, Economics and diplomacy of the European Union and vice versa. They share the economic, political and cultural model , as well as the main world collective defense organization, NATO. However, in the so-called transatlantic relationship, there have always been clashes, accentuated in the recent times of the Obama Administration and habitual with Trump. With the current Administration, not only have reproaches to the EU arisen within NATO (regarding the failure of member countries to invest the required budget ; shared criticism with the United Kingdom), but a full-fledged tariff war has begun.

In barely two years we have gone from the TTIP (Transatlantic Trade and Investment Partnership) negotiations, the announced basis for 21st century trade that finally failed in the final stages of Obama in the White House, to the current status of extreme US protectionism and EU response. Particularly illustrative is the succession of events that have taken place in the last year: at the stroke of Twitter, in March 2018 the US unilaterally imposed global tariffs on steel (25%) and aluminum (10%) to protect American industry [6]. These tariffs did not only affect China, they also inflicted great damage on companies in European countries such as Germany. Tariffs of 25% on European vehicles were also in the air. After a harsh climate of mutual reproaches, on July 25, Jean Claude Juncker, President of the European Commission, announced together with Trump a agreement to lower tariffs on agricultural products and services, and the US committed itself to review the imposition of metallurgical tariffs on the EU, as well as to support within the World Trade Organization the European calls for a reform of Intellectual Property laws, which China does not respect [7]. However, after the reiteration of the transatlantic friendship and Trump's advertisement of "we are heading towards zero tariffs" [8], soon the intemperate boxes have been rung again. In April this year, on April 9, Trump announced on Twitter the imposition of tariffs on the EU worth US$11 billion for the EU's support to Airbus (skill of the American Boeing, Lockheed Martin...), blowing up the principle of agreement of July last year. The EU, for its part, threatened to impose tariffs of €19 billion for the US state support to Boeing. As can be seen, the EU, despite its traditional conciliatory role and often subjugated to the US, has decided to fight back and not allow any more outbursts on the American side. The latest threat, in mid-July, is against French wine (and due to the European mechanism, against all wines of European origin, including Spanish wines). This threat has been described as "ridiculous" [9], since the USA consumes more wine than it produces (it is the world's largest consumer) and therefore, the supply available could be considerably reduced.

It is still too early to see the real impact that the trade war is having on the US, beyond the 7.4% drop in US exports to China [10] and the damage that consumers are suffering, but the Nobel laureate of Economics Robert Schiller, in an interview for CNBC [11] and the president of the World Trade Organization, Roberto Azevedo, for the BBC; have already expressed their fears that if status and protectionist policies continue, we could be facing the biggest economic crisis since the end of the Second World War. It is difficult to elucidate what the future relationship between Europe and its main exporter partner , the USA, will be like. All indications are that friction and escalation will continue if the US Administration does not decide to tone down its rhetoric and actions against free trade with Europe. Finally, it must be clear (and in the spirit of lowering the sometimes excessively alarmist tone of the news) that between the threats (either by Twitter or spokespersons) from both sides and the actual imposition of tariffs (in the US after the relevant advertisement from the Office of the US Trade Representative; in the EU through the approval of the 28) there is a long way to go, and we must not confuse potential acts and facts. It is clear that despite the harsh tone, the negotiating teams on both sides of the Atlantic are still at contact and are trying to avoid as far as possible actions detrimental to both sides.

On the other hand, the relationship between China and Europe is frankly different from the one with the USA. The Belt and Road Initiative (BRI) (to which Italy has formally adhered) is the confirmation of China's bid to be the next leader of the world's Economics . Through this initiative, President Xi Jinping aims to redistribute and streamline trade flows to and from China by land and sea. To this end, the stability of South Asian countries such as Pakistan and Afghanistan is vital, as is the ability to control vital maritime traffic points such as the Strait of Malacca and the South China Sea. The Asian "dragon" has an internal status that favors its growth (6.6% of its GDP in 2018 which, being the worst figure for 30 years, is still an overwhelming figure), as the relative efficiency of its authoritarian system and, especially, the great support of the State to companies boost its growth, as well as possessing the largest foreign currency reserves, especially dollars and euros, which allow a great stability of the country's Economics . The Chinese currency, the Renminbi, has been declared by the IMF as a world currency reservation , which is another indicator of the good health that is predicted for the future of the Chinese Economics .

For the EU, China is a competitor, but also a strategic partner and a negotiator partner [12]. China is the EU's main importer partner , accounting for 20.2% of imports (€395 billion) and 10.5% of exports (€210 billion). The volume of imports is such that, although the vast majority reach the European continent by sea, there is a railway connection that, under the BRI, links the entire Eurasian continent, from China's manufacturing capital, Yiwu, and the last stop at the southernmost tip of Europe, Madrid. Although some of the imports are still so-called "low-end" goods, i.e. products of basic manufacture and cheap unit price, since China joined the WTO at entrance in December 2001, the concept of material produced in China has changed radically: the great abundance of rare earths in Chinese territory, together with the progress in its industrialization and investment in new technologies (in which China is a leader) have meant that China is no longer thought of only as a mass producer of bazaars; on the contrary, the majority of imports into the EU from China were high-end, high-tech machinery and products (especially telecommunications and processing equipment from data).

In the aforementioned statement press release from the European Commission, China is warned to comply with the commitments made in the Kyoto Protocols and Paris Agreements regarding greenhouse gas emissions; and urges the Asian country to respect the dictates of the WTO, especially in subject on technology transfer, state subsidies and illegal practices such as dumping.

These aspects are vital for economic relations with China. At a time when most countries in the world signed or are part of the Paris Agreements for the reduction of greenhouse gas emissions, while the EU is making efforts to reduce its pollution (closing coal plants and mines; putting special taxes on energy obtained from non-renewable sources...), China, which totals 30% of global emissions, increased in 2018 by 3% its emissions. This, beyond the harmful effects for the climate, has industrial and economic benefits: while in Europe industries are narrowing their profit margins due to the rise in energy prices; China, which is fueled by coal, provides cheaper energy to its companies, which, without active restrictions, can produce more. An example of how the climate affects economic relations with China is the recent advertisement [13] of AcerlorMittal to reduce by 3 million tons its total steel production in Europe (out of 44 million tons of usual production) due to high electricity costs and increased imports from countries outside the EU (especially China) which, with excess production, are lowering prices worldwide. This internship, which is especially used in China, consists in flooding the market with an overproduction of a certain product (this overproduction is paid with government subsidies) to lower prices. As of December 2018, in the last 3 years, the EU has had to impose more than 116 sanctions and anti-dumping measures against Chinese products [14]. Which sample that, despite the EU's attempts to negotiate on mutually satisfactory terms, China does not comply with the stipulations of the agreements with the EU and the WTO. Particularly thorny is the problem with government-controlled companies (a ban on 5G networks in Europe, controlled by Chinese providers, is being considered for security reasons), which have a virtual monopoly inside the country; and above all, the distorted reading of legality by the Chinese authorities, who try to use all possible mechanisms in their favor, making it difficult or hindering direct investment by foreign capital in their country, as well as imposing requirements (need to have Chinese partners, etc.) that hinder the international expansion of small and medium-sized companies. However,

The biggest friction with the EU, however, is the forced transfer of technology to the government, especially by companies of strategic products such as hydrocarbons, pharmaceuticals and the automotive industry [15], imposed by laws and conditio sine qua non companies cannot land in the country. This creates a climate of unfair skill and direct attack on international trade laws. The direct investment of Chinese capital in critical industries and producers in the EU has caused voices to be raised calling for greater control and even vetoes on these investments in certain areas due to Defense and Security issues. The lack of protection of intellectual rights or patents are also important points of complaint by the EU, which aims to create through diplomacy and international organizations a favorable climate for the promotion of equal trade relations between the two countries, as reflected in the various European guidelines and plans concerning topic.

As we have seen, the trade war is not only limited to the US and China, but third parties are suffering from it and even actively participating in it. The question arises here: can the EU benefit in any way and avoid a new crisis? Despite the pessimistic mood, the EU can derive multiple benefits from this trade war if it manages to maneuver properly and avoid as far as possible further tariffs against its products and keeps the market open. If the trade war continues and the positions of the US and China harden, the EU, being partner the main beneficiary of both, could benefit from a redistribution of trade flows. Thus, to avoid the loss due to tariffs, both China and the US could sell heavily taxed products to the European market, but especially import products from Europe. If a agreement is reached with the US to lift or minimize tariffs, the EU would find itself facing a huge market niche left by Chinese products vetoed or taxed in the US. The same in China, especially in the automotive sector, from which the EU could benefit by selling to the Chinese market. Alicia Garcia-Herrero, of the Belgian think tank Bruegel, states that the benefit for Europe will only be possible if it does not lean towards any of the contenders and remains economically neutral [16]. He also stresses, like the European Commission, that China must adopt measures to guarantee reciprocity and market access, since the European Union still has a greater volume of business and investments with the USA, so that the Chinese offer should be highly attractive for European producers to consider directing products to China instead of the USA. The UN itself estimates at US$70 billion the benefits that could be absorbed by the EU thanks to the trade war [17]. Definitely, if the right measures are taken and the 28 draw up an adequate road map, the EU could benefit from this war, without forgetting that, as the EU itself advocates, coercive measures are not the solution to the trade problem, and hopes that, due to their ineffectiveness and damage caused to both consumers and producers, the tariff war will come to an end and, if differences persist, they will be resolved in the WTO Appellate Body, or in the Permanent Court of Arbitration of the United Nations.

This trade war is a highly complex and nuanced topic ; this analysis has attempted to address many of the issues, data and problems facing the European Union in this trade war. It has been generally analyzed what the trade war consists of, as well as the relations between the EU, China and the USA. We are facing a gray future, with the possibility of multiple and quick turns (especially on the part of the US, as seen after the G20 summit in Osaka, after which it has allowed the sale of components to Huawei, but has not removed the company from its blacklist) and from which, if the requirements and the conditions set out above are met, the EU will definitely benefit, not only economically, but if it remains united and making a common front, it will be an example of negotiation and economic freedom for the whole world.

 

REFERENCES

Thomas, D. (14-5-2019) Who loses in the China-US trade war. BBC. Retrieved from.

Blake, A. (9-5-2019) Trump's rambling, disappointing Q&A with reporters, annotated. The Washington Post. Retrieved from.

3. Huawei: US blacklist will harm billions of consumers (29-5-2019) BBC. Retrieved from

4. EU warns China and the US: a trade war would subtract 0.6 points of GDP(3-6-2019) El Confidencial. Retrieved from

5. European Union Trade Statistics. (18-6-2019) European Commission.Retrieved from: http://ec.europa.eu/trade/policy/eu-position-in-world-trade/statistics/

6. Pozzi, S. (2-3-2018) Trump reaffirms protectionism by raising tariffs on imported steel and aluminum. El País (New York correspondent)Retrieved from.

7. Inchaurraga, I. G. (2013). China and GATT (1986-1994): Causes and consequences of the failure of a negotiation. Cizur Menor, Navarra: Aranzadi. pp. 204-230.

8. Tejero, M. (25-7-2018) agreement EU-US: "zero tariffs" on industrial goods; more soybeans and liquefied gas. El Confidencial. Retrieved from.

9. Pardo,P. & Villaécija, R. (17-6-2019) Trump threatens Spanish wine. El Mundo. Retrieved from.

10. A quick guide to US-China Trade War (14-5-2019) BBC. Retrieved from

11. Rosenfeld, E. & Soong, M. (25-3-2018) Nobel-winner Robert Shiller warns of an 'economic crisis' from trade war threats. CNBC. Retrieved from.

12. EU reviews relations with China and proposes 10 actions. (12-3-2019) European Commission- statement de Prensa.

13. Asturias takes 23% of Arcelor's new EU production cut.(6-5-2019) 5 Days Retrieved from.

14. Morales, R. (26-12-2018) EU increased 28.3% its antidumping measures in 3 years: WTO. El Economista Mexico. Retrieved from

15. Warning about forced technology transfer to Chinese government.(20-5-2019) Infobae. Retrieved from

16. García-Herrero, A.; Guardans, I. & Hamilton, C. (28-6-2018) Trade War Trinity: analysis of global consequences. Bruegel (lecture). Retrieved from.

17. European Union, the big beneficiary of the trade war between China and the U.S.(4-2-2019) UN News . Retrieved from

Categories Global Affairs: European Union North America Asia EconomicsTrade and Technology Testing

[Bruno Maçães, Belt and Road. A Chinese World Order. Penguin. Gurgaon (India), 2019. 227p.]

review / Emili J. Blasco

Belt and Road. A Chinese World Order

Covered at the moment by literature devoted to present the novelty of the Chinese New Silk Road project , Bruno Maçães leaves aside many of the specific concretions of the Chinese initiative to deal with its more geopolitical aspects. That is why Maçães uses the name Belt and Road throughout the book, instead of its acronyms -OBOR (One Belt, One Road) or the more recently used BRI (Belt and Road Initiative)-, since he is not referring so much to the layout of the transport connections themselves as to the new world order that Beijing wants to shape.

Through this economic integration, according to Maçães, China could project power over two thirds of the world, including Central and Eastern Europe, in a process of geographic cohesion of Eurasia to which this Portuguese politician and researcher already dedicated his previous work.

Compared to other essays on the New Silk Road, this one focuses a lot on India (this is the case in its general content, but also in this review a special edition dedicated to that country has been used, with a particular introduction).

Maçães grants India the role of core topic of vault in the project integrating Eurasia. If India decides not to participate at all and, instead, to go for the alternative promoted by the United States, together with Japan and Australia, then the Chinese design will not reach the dimension longed for by Beijing. "If India decides that life in the Western order will be better than under alternative arrangements, the Belt and Road will have difficulty achieving its original ambition," says the author.

Maçães believes, however, that the West is not all that attractive to the subcontinent. In that Western order, India can only aspire to a secondary role, while the rise of China "offers it the exciting possibility of a genuinely multipolar, rather than merely multilateral, world in which India can legitimately hope to become an autonomous center of geopolitical power," at least on a par with a declining Russia.

Despite these apparent advantages, India will not go all the way to either side, Maçães predicts. "It will never join the Belt and Road because it could only consent to join China in a project that was new. And it will never join a US initiative to rival the Belt and Road unless the US makes it less confrontational." So, "India will keep everyone waiting, but it will never make a decision on the Belt and Road".

Without Delhi's involvement, or even more, with resistance from the Indian leadership, neither the US nor China's vision can be fully realized internship, Maçães continues to argue. Without India, Washington may be able to preserve its current model of alliances in Asia, but its ability to compete on the scale that the Belt and Road does would collapse; for its part, Beijing is realizing that alone it cannot provide the financial resources needed for the ambitious project.

Maçães warns that China has "ignored and disdained" India's positions and interests, which may end up being "a major miscalculation". He believes that China's impatience to start building infrastructure, because of the need to demonstrate that its initiative is a success, "may become the worst enemy".

He ventures that the Chinese may correct the shot. "It is likely - perhaps even inevitable - that the Belt and Road will grow increasingly decentralized, less China-centric," he says, commenting that in the end such a new Chinese order would not be so different from the structure of the existing Washington-led world order, where "the US insists on being recognized as the state at the apex of the hierarchy of international power" and leaves some autonomy to each regional power.

If Maçães puts India in a status of non-alignment plenary session of the Executive Council, he does foresee an unequivocal partnership of that country with Japan. In his view it is a "symbiotic" relationship, in which India sees Japan as its first source of technology, while Japan sees the Indian navy as "an indispensable partner in its efforts to contain Chinese expansion and safeguard freedom of navigation" in the seas of the region.

As for Europe, Maçães sees it in the difficult position "of not being able to oppose an international project of economic integration, while being equally incapable of joining as a mere participant" in the Chinese initiative, in addition to the germ of division that project has already introduced into the European Union.

From Bangladesh to Pakistan and Djibouti

Despite the differences indicated above, Maçães believes that the relationship between China and India can develop positively, even if there is some element of latent conflict, encouraged by a certain mutual distrust. The commercial linkage of two such immense markets and production centers will generate economic ties "called to dominate" the world Economics towards the middle of this century.

This movement of goods between the two countries will make Bangladesh and Myanmar the center of a major trade corridor.

For its part, Pakistan, in addition to being a corridor for the exit to the Indian Ocean from western China, will be increasingly integrated into the Chinese production chain. In particular, it can supply raw materials and basic manufactures to the textile industry that China is developing in Xinjiang, its export gateway to Europe for goods that can optimize rail transport. The capital of that province, Urumqi, will become the fashion capital of Central Asia in the next decade, according to Maçães' forecast, agreement .

Another interesting observation is that the shrinking of Eurasia and the development of internal transport routes between the two ends of the supercontinent, may cause the container ports of the North Sea (Amsterdam, Rotterdam, Hamburg) to lose weight in the trade between Europe and China at the expense of a greater transit of those of the Mediterranean (Piraeus, especially).

The author also ventures that Chinese infrastructure works in Cameroon and Nigeria can help facilitate connections between these countries and Doralé, the port that China manages in Djibouti, which, through these trans-African routes, could become "a serious rival" to the Suez Canal.

If in Djibouti China has its first, and for the moment only, military base outside its territory, it should be kept in mind that Beijing can give a possible military use to other ports whose management has assumed. As Maçães reminds, China approved in 2016 a legal framework that obliges civilian companies to support military logistics operations requested by the Chinese Navy.

All these are aspects of a suggestive book that does not allow itself to be carried away by the determinism of the Chinese rise, nor by an antagonistic vision that denies the possibility of a new world order. The work of a European who, although he served in the Portuguese Foreign Ministry as director general for Europe, is realistic about the weight of the EU in the orb's design .

Categories Global Affairs: Asia World order, diplomacy and governance Book reviews

In the largest countries in the region, private guards outnumber police officers four to one and have ten times more weapons than in Europe.

The high rates of violence in Latin America and the deficient presence of state authorities in parts of the territory have led to the proliferation of private security companies throughout the region. Their issue now exceeds 16,000 companies, in an industry that involves more than 2.4 million people. The sector faces important challenges, such as imprecise legality in many cases, a deficit of experience, forms incompatible with civil and human rights in certain places and the risk of escalation of arsenals.

The "boom" of private security in Latin America

article / Martín Biera Muriel

The proliferation of private security companies in Latin America is linked to crime and violence statistics in the region. It is estimated that 19 out of every 20 violent crimes that occur in the world take place in Latin America, where 17 of the 20 most violent cities in the world and four of the five most violent countries are located.

The status has given rise to an "explosive growth" in the privatization of security in Latin America, as described by the Inter-American Dialogue's report "Security for Sale". The increase of the issue of Private Defense and Security Companies (PMSCs) has occurred not only in countries with marked conflicts, such as Colombia, where in the last ten years there has been an increase of 126%, but also in countries with greater social peace and institutionalism, such as Chile, which in five years has seen an increase of 50%. The total number of companies dedicated to this function in Latin America reached 16,174 in 2017, as specified at the time by the Geneva Center for the Democratic Control of Armed Forces (DCAF).

The PMSC sector

The term PMSCs includes both the security companies used in developed countries, normally dedicated to guarding establishments or individuals, as well as defense companies that can replace functions usually reserved to the State. The latter developed after the end of the Cold War and have become an important actor in the International Office, with participation in conflicts of leave and even high intensity.

These defense companies operate in a framework of complicated legality, whose regulation attempted to be standardized in 2008 with the Montreaux Document, a compilation of legal obligations and best practices aimed at guaranteeing the sovereignty of States and protecting Human Rights. Although the text applies more directly to situations of armed conflict, it also provides a regulatory framework for security companies in general, given the tenuous border between one subject of companies and others, especially in Latin America, where the authority of the State often does not reach the entire national territory, some civil conflicts are particularly virulent and some use the Armed Forces in the fight against criminal violence and the maintenance of public order.

More guards than policemen

The more than 16,000 PMSCs in Latin America employ around 2.4 million people. issue Although security guards outnumber police officers worldwide at issue , in many Latin American countries there is a particular imbalance between the number of police officers and private agents: in Colombia, Brazil and Mexico the ratio is one police officer to four PMSC members; in countries of extreme violence such as Honduras and Guatemala the ratio is even one to seven. It is also the case that many members of the police resort to moonlighting, working as police officers during the day and becoming security agents at night in a neighborhood, business or building.

The largest companies are those dedicated to surveillance and escorting VIP clients. The largest are of European and U.S. origin and specialize in one part of the sector, especially in the protection of private property. Most of them operate in cities or in natural resource extraction centers isolated from urban areas. In relation to the frequent criticisms that these companies receive, for allegedly supplanting the functions of the legally constituted authority, it is necessary to point out that the legal framework in which the large companies operate is strict and supervised.

degree program of armament

It can be argued that skill among operators has generated a kind of arms degree program in which each business wants to offer more efficient services. In turn, as there are more agents issue and more modern weapons, criminals also tend to increase their firepower and capabilities to meet their objectives, which consequently leads companies to also increase the caliber of their weaponry, in a spiral that is difficult to control. Statistics show that Latin America has the highest ratio of firearms per security guard in the world outside those areas affected by conflict. This ratio is ten times higher than the ratio of small arms in Europe.

This has led to criticism of certain PMSCs in Latin America for having contributed, directly or indirectly, to illegal arms trafficking and the growth of armed gangs, generating a vicious circle. For example, in 2015 ninety people were arrested in San Francisco (some of them linked to PMSCs) for belonging to an arms trafficking network linked to Mara Salvatrucha (MS-13). There have also been cases of theft and misplacement of weapons imported from the region, both by individual private security contractors and by the military itself; these weapons then enter the black market. Thus, more than 40% of illegal arms in El Salvador are linked to some 460 private security companies, despite the obligation to have an official registry for their identification.

Challenges

Reducing the high levels of insecurity is one of the main challenges facing many Latin American countries. The reasons for the persistent violence in their societies are manifold; among them are political corruption and economic inequality. The wealthier classes may consider themselves targets of attempted robbery or kidnapping, but the lower classes also suffer from high crime rates, in their case without the possibility of resorting to private security.

Private security in Latin America faces two major challenges. One is the illegality of part of the sector: illegal companies are growing faster than in the legal sector; in Brazil, for example, issue of informally employed guards outnumber the formal ones. The other is the lack of training or experience of a certain number of private guards. Addressing the need for greater legal regulation, and for regulation more adjusted to national specificities, and the convenience of greater training will help to reduce the gray zone in which in many cases they operate and the violations of Human Rights.

Categories Global Affairs: Articles Security and defence Latin America

The deterioration of recent years seems to have been corrected in several indicators on democratic health and economic environment.

Costa Rica has traditionally been a model of democratic functioning in a region with serious institutional deficits, which has earned it a mediating role in different conflicts. The increase of internal problems -strikes, citizen protests, bipartisan crisis...- have seemed to have diminished Costa Rica's international prestige in recent years. Is Costa Rica suffering from democratic and institutional deterioration?

Facade of the National Theater of Costa Rica, in San José [Pixabay].

▲ Facade of the National Theater of Costa Rica, in San José [Pixabay].

article / Ramón Barba

The political unrest of recent years in Costa Rica, in a regional context of the "angry vote" and the consequent "outsider phenomenon", has given the impression of a setback in the country's institutional virtues. The goal of this article is to determine, based on different indicators on democratic health and economic and political satisfaction, if there are objective data that ratify this perception.

For this purpose we will first analyze a set of indicators, elaborated by the World Bank, the Konrad Adenauer Foundation and The Economist magazine, and then we will also take into account some results of the survey Latinobarómetro. We will compare the values recorded in 2010, 2013, 2016 and, when possible, 2018.

Indicators

Regarding the Democracy Index elaborated by The Economist, although Costa Rica maintains its second place among Latin American democracies, behind Uruguay and ahead of Chile (these are the three countries that usually obtain better grade in the different institutional parameters of the region), in the last decade a Costa Rican democratic decline is observed, apparently overcome in the most recent report. From a score of 8.04 achieved in the 2010 Democracy Index, Costa Rica dropped to 8.03 in 2013 and 7.88 in 2016, to regain ground in 2018 with an 8.07. The country remains the best democracy in Central America, followed at a distance by a stable Panama.

The deterioration of recent years has also been picked up by the Index of development of Democracies in Latin America (IDD-LAT), of the Konrad Adenauer Foundation, which has not yet published data referring to 2018, so this index cannot endorse whether there has been a recent recovery. In 2010, Costa Rica had a score average of 9.252; it barely varied in 2013, with a figure of 9.277, but dropped clearly in 2016, with 8.539 points. The components of the index that suffered the most were welfare policy creation and economic efficiency, where it dropped from 1st and 5th place, respectively, to 8th and 12th. The fact that Costa Rica remained between 1st and 3rd place in civil and political rights and in institutional and political efficiency in those years sample shows that the social concern of those years was more in the economic sphere than in the institutional sphere.

The World Bank's Good Governanceindicators also registera small regression in the case of Costa Rica between the years 2013 and 2016 (data more recent ones have not yet been published). Regarding the Rule of Law and Government Effectiveness scales the score dropped from 0.6 and 0.5, respectively, to 0.5 and 0.4. There has been little change in the Control of Corruption scale.

 

evaluation citizen

The above indicators are prepared by experts who, by applying standardized criteria, seek to offer an objective estimate. But we also wanted to take into account the opinion of the citizens themselves, as expressed in the survey Latinobarómetro. These can be useful to indicate the perception that exists among the population regarding the institutional health of the country: the satisfaction that exists regarding the government system and the economic system.

The value of democracy is maintained in high percentages in Costa Rica, despite a negative trend in the region as a whole. Attending to four values that Latinobarómetro has included in its surveys corresponding to the years here chosen for our comparison, we see that indeed in 2016 the citizen perception was that of a worsening of status, but in 2018 an improvement is observed, reaching even more positive levels than in 2013. As for the evaluation of democracy, its consideration as the best system of government dropped from 77% to 72% and then has risen again to 77%, while its cataloging as a preferable system has been increasing: 53%, 60% and 63%.

The perception of the economic environment, for its part, had a blip in 2013, but today it is in better condition. The statement "progress is being made" fell from 15% to 12%, but in 2018 it reached 22%, while satisfaction with future personal economic prospects fell from 45% to 20% to stand in 2018 at 52%.

 

Political unrest

Costa Rica is a country that retains strong institutions, although the political landscape is more divided. test of this is the end of the two-party system (1953-2014), brought about by less support for the National Liberation Party (PLN) and the Social Christian Unity Party (PUSC) and the emergence of the Citizen Action Party (PAC), to which the country's current president, Carlos Alvarado, belongs.

Corruption issues such as the "cimentazo case", the high public debt that has forced cutbacks in a country with certain well-established social benefits and a regional and international environment prone to populist solutions may be behind the political unrest observed in Costa Rica in recent years.

This occurs in a context of the "angry vote" in Latin America, which arises as a consequence of the political actions of the last twenty years in the region and a strengthening of the middle classes. Citizen dissatisfaction has led to the emergence of outsider politicians: people with relative popularity, short degree program political, without a determined strategy and with an "anti-political" speech . This is a patron saint that, although it is in the emergence of the PAC, in any case does not fully correspond to the personality of President Alvarado, who actually seems to have contributed to redirect the Costa Rican restlessness.

Conclusions

Thus, from the analysis of the data observed here, it can be concluded that there was indeed a slight deterioration in both institutional circumstances and especially in economic conditions or expectations between 2013 and 2016, but the different scales have returned in 2018 to previous values, even improving in some cases to levels of ten years ago. This is something that can be observed both in the indicators at position of experts that follow standardized objective procedures and in the surveys of subjective citizen perception.

The sample used and the temporal tastings carried out have not been exhaustive, so it is not possible to specify whether the variations noted here are circumstantial fluctuations or part of a trend pointing in a certain direction.

Categories Global Affairs: World order, diplomacy and governance Articles Latin America

[Condoleezza Rice, Amy B. Zegart, Political Risk: How Businesses and Organizations can Anticipate Global Insecurity. Hachette Book Group. New York, May 2019]

 

REVIEW / Rossina Funes Santimoni

Political Risk: How Businesses and Organizations can Anticipate Global Insecurity

Every year Stanford Graduate School of Business offers their students a seminar in Political Risk. The classes are taught by former U.S Secretary of State Condoleezza Rice and the renowned academic Amy B. Zegart. Motivated by their students, they decided to turn their classes into a book in order to allow more people and organizations to navigate the waters of political risk.

The work entitled Political Risk: How Businesses and Organizations can Anticipate Global Insecurity is divided into ten chapters. The authors start by explaining the contemporary concept of political risk. Consequently, theoretical framework is added as they advance in the explanation, in this way making it useful for the reader in order to understand, analyze, mitigate and answer efficiently to political risks. Their ultimate objective is to provide functional framework that can be utilized in any organization or by any person to improve political risk management. 

Rice and Zegart define the twenty-first-century political risk as the probability that a political action could significantly affect a company's business. Nowadays, the public and the private sphere are constantly changing and evolving. Everything is more complex and intertwined. Governments are no longer the only ones playing an important role in business decisions. The authors emphasize how companies need to efficiently deal with the political risks spawn by an increasing diversity of actors, among which is anyone with access to social average. In order to illustrate the latter, the authors make use of real-life examples, for instance the Blackfish Effect. It is named after a low-budget investigative documentary with the same title that depicted how SeaWorld Entertainment's treatment of killer whales harmed both the animals and their human trainers. The film that started with one woman reading a story about orcas triggered political action at the grassroots, state and federal levels, ending up with devastating consequences from which the company has still not recovered up to now. These cascading repercussions of the film have been denominated the Blackfish Effect. 

The work is well equipped with more examples about distinguished companies' experience. Among the organizations cited are Lego Company Group, FedEx, Royal Caribbean and Nike. Some have excelled in dealing with political risk and some have failed. However, both sides of the coin are useful to learn and to understand how the convoluted world of political risks management work.

Nowadays, risk generators perform at five intersecting levels including individuals, local organizations and governments, national governments, transnational organizations, and supranational and international institutions. Therefore, today's risks are different from the old ones, even if those still persist. With this in mind, Rice and Zegart shed a light on these days' top ten political risks: geopolitics, internal conflict, policy change, braches of contract, corruption, extraterritorial reach, natural resource manipulation, social activism, terrorism and cyber threats.

Nevertheless, even if the theory is laid out, the question still haunts us: Why is good political risk management so hard? The authors dedicate a whole chapter investigating it and conclude that there are "Five Hards". Political risk is hard to reward, hard to understand, hard to measure, hard to update, and hard to communicate. Therefore, in order to succeed at its management, one must get right the four basics: understanding, analyzing, mitigating and responding to risks. Rice and Zegart devote the remaining four chapters of the book expanding on each basic and, again, employing examples to better illustrate their knowledge.

The thing about political risks is that they are always there. They are imminent and we can do nothing more than try to prevent them and learn from them, to use the present in order to make the best of it for the future. It is not about predicting the future, which is impossible. "No one ever builds a disaster recovery plan that allows for the destruction of everybody in the office at 8:45 am. That is never the plan," assures Howard W. Lutnick, CEO at Cantor Fitzgerald on how the company dealt with the 9/11 terrorist attack aftermath. Paradoxically, Rice and Zegart maintain that the best way to deal with crises is not having them. Henceforth, they dedicate a whole chapter to providing key takeaways in order to better respond to crises. Politics has always been an unpredictable business. There is no one that can discern accurately how human history is going to unfold. However, the authors are convinced that managing political risks does not have to be pure guesswork and that being prepare is essential and can improve companies performances in a great deal.

Political Risk: How Businesses and Organizations can Anticipate Global Insecurity completely revamps the way we reflect on the topic. It is easy to notice both authors proficiency in the field. On one hand, the past experiences of former U.S Secretary of State Condoleezza Rice serve as anecdotes to elucidate the build-up of the theoretical framework. It is valuable to have such a person to act as a primary source that has lived among other high-end characters and important people in history. On the other hand we have Professor Amy B. Zegart, who with her natural eloquence excels in conveying the importance of political risk management nowadays. Consequently, everyone can get a precious lesson from this book, ranging from students that are interested in navigating the sphere, to everyday workers, company owners and public servants.

Categories Global Affairs: North America World order, diplomacy and governance Book reviews

The management given to a Chinese business prompts US threat not to sell technology to Israel.

The Trump administration's protests over the awarding of management of the port of Haifa to a Chinese business have so far not prompted the Netanyahu government to review the contract, which was dealt with at ministerial level without plenary session of the Executive Council knowledge of its geopolitical implications. China's penetration of Israel - in the wider Middle East context - as well as the US reaction, highlights a complicated triangle of relations: Israel wants Chinese investment, but fears losing US favour.

management container port in the port of Haifa, northern Israel [Wikipedia].

▲ management of containers in the port of Haifa in northern Israel [Wikipedia].

article / María Martín Andrade

The port of Haifa is one of the main ports in Israel in terms of volume of goods handled. It also has a strategic character: the port, in the north of the country, hosts the US Sixth Fleet in its movements. The latter could be altered following the announcement of Israel's contract with the Chinese business Shanghai International Port Group (SIPG) to operate the port for the next 25 years from 2021, which has not been very well received by Washington. management The company, which has pledged to invest $2 billion to expand the facility into Israel's largest port, describes its functions as including the construction and installation of equipment and the day-to-day running of port activities, classifying this project as part of the One Belt, One Road initiative.

This initiative has its origins in the Silk Road, a trade pathway linking China with various Asian countries all the way to Europe, dating back to the first centuries BC. The new version is based on the early schemes and aims to boost China by creating a network of infrastructure, investment and trade, and by establishing multilateral and bilateral ties with the various states along the Silk Road, as well as with international companies.

All of the above, added to the growing industrial and transport expansion that China is experiencing, also justifies the Asian country's interest in some of the natural resources that the Middle East offers, such as oil, the import of which amounts to 50%, constituting another of the reasons why China wants to gain a presence in different parts of the region and which is manifested in, among other ways, investment in canals and ports such as those of Haifa and Ashdad in Israel, Cherchell in Algeria, Said and Alexandria in Egypt, and Kumport in Turkey. Specifically, its commitment to the port of Haifa is also contributing to the development of what is known as the Israel-Gulf Economic Corridor (IGEC), whose goal is to create a railway line running from the port of Haifa to the Jordanian-Israeli border, linking up with the Jordanian railway system.

However, China's ambitions to gain a greater presence in the Middle East collide with the pretensions of another "robust rival", the United States, which is also driven by economic and security interests and has no intention of sharing it. Thus, after learning of the plans in the port of Haifa, the US response is manifested in threats that it might stop sharing data intelligence with Israel and reconsider holding future long deadline exercises by the US navy in that port.

It is important to note that this is not the first time that the US has intervened to hinder relations between China and Israel. The conditions under which the latter country was established, coupled with the hostile environment surrounding it and the need to possess weapons to maintain and protect it, have contributed to the development of its technology, especially in subject defence, whose broad scope is due in part to the United States, which has been supplying the country with the latest military technology since the 1960s. This has contributed to Israel's exports of subject technology, mainly defence subject technology, becoming the source main source of revenue for its industry.

During the 1970s, China's Economics began to modernise, and the next step was to extend this modernisation to the military domain, and China began importing defence developments from Israel. These relations continued to expand until 2000, when the Middle Eastern country, due to US pressure, decided to cancel the agreement that allowed China to obtain four Phalcon radar systems. The reason given by the US at the time for opposing the agreement was the possibility that China would benefit from the technology in a military conflict in Taiwan. However, China is not the only country with which Israel has had difficulties exporting its technology. In 2008 Washington denied that it could submit Heron drones to Russia.

Despite all this, Sino-Israeli relations have managed to survive, with China becoming Israel's second largest trading partner in 2012, partner and developing new partnership R&D ties, consisting of a series of agreements and collaborations between academic institutions and companies in both countries.

However, considering the US reaction to China's involvement in the port of Haifa, it is not unthinkable to envisage a scenario in which American pressure would be repeated and in this case would succeed in abolishing the existing agreement with the business Shanghai International Port. If this happens, Israel would lose an important part of the investments it receives and trade relations with China would cool, while Beijing could see one of its plans to create its ambitious Silk Road frustrated, although this would not mean its decline in the Middle East.

 What is unquestionable is that the United States no longer enjoys hegemony in this part of the world and has to come to terms with the idea that it will have to share influence with other great powers. It may therefore make more sense to engage in new forms of cooperation with China in order to establish mutually favourable terms.

In conclusion, this new Chinese investment affirms what was already known: China's international presence is growing and increasing in volume, and it is wiser to adapt to the new changes than to get involved in love triangles that never have a happy ending for anyone.

Categories Global Affairs: Middle East Logistics and infrastructure Articles Israel and Palestine

Iran Strategic Report (July 2019)

This report will provide an in-depth analysis of Iran's role in the Middle East and its impact on the regional power balance. Studying current political and economic developments will assist in the elaboration of multiple scenarios that aim to help understand the context surrounding our subject.

J. Hodek, M. Panadero.

 

Iran Strategic Report (July 2019)Report [pdf. 15,5MB] [pdf. 15,5MB

INTRODUCTION: IRAN IN THE MIDDLE EAST

This report will examine Iran's geopolitical presence and interests in the region, economic vulnerability and energy security, social and demographic aspects and internal political dynamics. These directly or indirectly affect the evolution of various international strategic issues such as the future of Iran's Nuclear Deal, United States' relations with Iran and its role in Middle East going forward. Possible power equilibrium shifts, which due to the economic and strategic importance of this particular region, possess high relevance and significant degree of impact even outside the Iranian territory with potential alteration of the regional and international order.

With the aim of presenting a more long-lasting report, several analytical techniques will be used (mainly SWOT analysis and elaboration of simple scenarios), in order to design a strategic analysis of Iran in respect to the regional power balance and the developments of the before mentioned international strategic issues. Key geopolitical data will be collected as of the announcement of the U.S. Secretary of State Michael R. Pompeo on the re-imposition of U.S. sanctions on the Islamic Republic of Iran on November 2, 2018 with a projection for the upcoming years, thus avoiding a simple narration of facts, which transpired so far.

First part of this report will be dedicated to a more general analysis of the geopolitical situation in the Middle East, with a closer attention to Iran's interests and influence. Then, after a closer look on the internal dynamics within Iran, several scenarios will be offered out of which some will be categorized and selected as the most probable according to the authors of this report.

Categories Global Affairs: Middle East World order, diplomacy and governance Reports Iran

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