middle east

The Iran nuclear deal: Prelude to proliferation in the Middle East?


     
 
 




middle east

What the U.S. can do to guard against a proliferation cascade in the Middle East


When Iran and the P5+1 signed a deal over Tehran’s nuclear program last July, members of Congress, Middle East analysts, and Arab Gulf governments all warned that the agreement would prompt Iran’s rivals in the region to race for the bomb.

In a report that Bob Einhorn and I released this week, we assessed this risk of a so-called proliferation cascade. We look at four states in particular—Saudi Arabia, the United Arab Emirates, Egypt, and Turkey—and Bob briefly explores each case in another blog post out today. In the paper, we argue that although the likelihood of a proliferation cascade in the Middle East is fairly low, and certainly lower than a number of critics of the Iran deal would have you believe, it is not zero. Given that, here are eight steps that leaders in Washington should take to head off that possibility:

  1. Ensure that the JCPOA is rigorously monitored, strictly enforced, and faithfully implemented;
  2. Strengthen U.S. intelligence collection on Iranian proliferation-related activities and intelligence-sharing on those activities with key partners;
  3. Deter a future Iranian decision to produce nuclear weapons;
  4. Seek to incorporate key monitoring and verification provisions of the JCPOA into routine IAEA safeguards as applied elsewhere in the Middle East and in the global nonproliferation regime;
  5. Pursue U.S. civil nuclear cooperation with Middle East governments on terms that are realistic and serve U.S. nonproliferation interests;
  6. Promote regional arrangements that restrain fuel cycle developments and build confidence in the peaceful use of regional nuclear programs;
  7. Strengthen security assurances to U.S. partners in the Middle East; and
  8. Promote a stable regional security environment.

Taken together, these steps deal with three core challenges the United States faces in shoring up the nonproliferation regime in the region.

The first is that the central test of nonproliferation in the Middle East will come from how the JCPOA is believed to be meeting its core objective of preventing Iranian nuclear weapons development and Iranian establishment of regional hegemony. It cannot be stressed enough that the decision to pursue nuclear weapons by any state, including those in the region, starts with a sense of vulnerability to core security threats and an inability to address those threats through any other means. The history of nuclear proliferation is one of tit-for-tat armament in the face of overriding security imperatives. Both finished and aborted nuclear programs bear the hallmarks of a security dilemma impelling states to make the political, economic, and security investments into nuclear weapons.

This is no less true for countries across the region than for Iran. To the extent that the overall security environment can be stabilized, there will be less impetus for any Middle Eastern state to develop nuclear weapons. The United States should focus on:

  • Fully implementing and enforcing all sides of the JCPOA (nuclear restrictions, transparency, and sanctions relief);
  • Creating a strong sense of deterrence toward Iran, manifest most clearly in the passage of a standing Authorization to Use Military Force if Iran is determined to be breaking out toward acquisition of a nuclear weapon;
  • Providing security assurances and backing them up with the mechanisms to make them actionable like joint exercises, logistical planning, and cooperation with a range of regional and extra-regional actors; and,
  • Working to promote a more stable regional environment by seeking the resolution of simmering conflicts.

But, these latter two factors also point to another resonant theme in our research: the need for the United States to be a player. After decades of involvement in the region, the United States has yet to settle upon the right balance between involvement and remove. Yet, establishing this equilibrium is essential. States in the region need predictability in their affairs with the United States, including knowing the degree to which our assurances will stand the test of time.

States in the region need predictability in their affairs with the United States, including knowing the degree to which our assurances will stand the test of time.

In part for this reason, the United States should not only pursue deeper security relationships, but also civil nuclear cooperation with interested states throughout the region. Such a relationship both ensures a closer link between the United States and its partners and discourages the spread of enrichment and reprocessing technology by disincentivizing countries from “going it alone.” In the Middle East, the United States would need to find a formulation that offers some flexibility (such as by building in language that would permit the United States to terminate any nuclear cooperation arrangements in the face of sensitive fuel cycle development by the other side).

The United States should also share intelligence more closely with its partners in the region. This is helpful in the short term, of course, but also helps the United States understand the mindset of and intelligence picture of its regional partners in a broader sense. It also helps leaders in Washington address concerns brought about by unfounded rumors or speculation as to Iran’s intentions or capabilities.

Changing how we do business

Even more important than how the JCPOA was negotiated will be how we transition from its restrictions and transparency mechanisms into a new world in 15 to 20 years. 

The United States seek to incorporate elements of the JCPOA into normal international monitoring practices and should negotiate new arrangements to help govern the future development of nuclear technology in the region. 

To achieve the former, the IAEA will need to make some changes to how it does business. For example, the IAEA determines how best to implement its monitoring mission, contingent on acceptance by the country being inspected. The United States and its partners should work with the IAEA (and other countries with significant nuclear activities) to make some parts of the JCPOA standard operating practice, such as online monitoring of enrichment levels. Other elements of the JCPOA may require agreements at the IAEA and beyond for how nuclear-related activities, including those that could have value for nuclear weaponization, are handled. It might be hard to get agreement, not least because there is clear language in the JCPOA that states that it will not be seen as a precedent for future nuclear nonproliferation efforts. However, it should still be the ambition of the United States to make such steps part of the norm. 

A far more difficult lift would be organizing a regional approach to the nuclear fuel cycle. This is not the same as creating a multilateral fuel cycle, though some elements that approach would be helpful. Rather, the United States should find ways to craft regional agreements or, failing that, moratoria on aspects of the fuel cycle that others in the region would find threatening. It would be easier to negotiate constraints some aspects than others. For example, spent fuel reprocessing is rare in the Middle East, with only Israel having been known to do it to a significant degree. It may therefore be an attractive first place to begin. Enrichment would be altogether more difficult, but it may be possible to convince states in the region to forego the expansion of their enrichment programs beyond their status quo. For Iran, it would continue to possess uranium enrichment but with constraints that limit the utility of this program for weapons production; its incentive would be to avoid creating the rationale for regional competition. For other countries in the region, it would involve holding off on enrichment, but also on the financial and political investment enrichment would involve—as well refraining from creating a security dilemma for Iran that could produce miscalculation in the future.

While some of these recommendations are more challenging (and may prove impossible), others are potentially easier. By taking a multifaceted approach, the United States increases the chances that no further weapons of mass destruction proliferate in the Middle East down the road. 

Editors’ Note: Richard Nephew and Bob Einhorn spoke about their new report at a recent Brookings event. You can see the video from the event here.

Authors

     
 
 




middle east

Breaking bad in the Middle East and North Africa: Drugs, militants, and human rights

The Middle East and North Africa are grappling with an intensifying drug problem—increased use, the spread of drug-related communicable diseases, and widening intersections between drug production and violent conflict. The repressive policies long-applied in the region have not prevented these worsening trends.

      
 
 




middle east

Want to ease tensions in the Middle East? Science diplomacy can help

Science diplomacy can help countries in the Middle East and elsewhere solve on-the-ground challenges and improve standards of living for their citizens. But it can also lay groundwork for improving relations in a region often defined by tension (if not outright conflict) through functional, scientific cooperation that is less politicized.

      
 
 




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The Middle East unraveling

       




middle east

Israel and the Changing Middle East

The Israeli elections of March 2015 are likely to have a decisive influence on Israel’s policies toward the Palestinian issue and the Arab world. Itamar Rabinovich examines the role Israel finds itself in a changing Middle East and argues should a new Israeli government decide to resume negotiations with the Palestinian Authority, it is quite likely that the new government would seek to place the negotiations in the context of a broader understanding with the Arab world.

      
 
 




middle east

Hezbollah’s growing threat against U.S. national security interests in the Middle East

Daniel Byman testifies before the House Committee on Foreign Affairs' Subcommittee on the Middle East and North Africa on Hezbollah's growing threat against U.S. national security interests in the Middle East.

      
 
 




middle east

On April 30, 2020, Vanda Felbab-Brown participated in an event with the Middle East Institute on the “Pandemic in Pakistan and Afghanistan: The Potential Social, Political and Economic Impact.”

On April 30, 2020, Vanda Felbab-Brown participated in an event with the Middle East Institute on the "Pandemic in Pakistan and Afghanistan: The Potential Social, Political and Economic Impact."

       




middle east

COVID-19 will prolong conflict in the Middle East

The COVID-19 pandemic could not have come at a worse time for the Middle East. Since the U.S.-led international coalition secured the territorial defeat of ISIS three years ago, the region is still struggling to achieve lasting peace. Much of the region remains engulfed in ongoing conflict. The civil war has not ended in Syria,…

       




middle east

The case for a regional reconstruction strategy for the Middle East


Editors’ Note: It is time to establish a regional reconstruction strategy for the Middle East, argues Sultan Barakat, that involves collective vision, broad participation, smart security, equality, and other key elements.This post originally appeared in Huffington Post.

The World Bank is hosting its annual Fragility Forum this week with the aim of making progress on the post-2015 Sustainable Development Goals. This week has also seen a fragile ceasefire in Syria, potentially landmark elections in Iran, and a violent clash between Jordanian security and so-called Islamic State members. Together these developments have prompted me to reassess what needs to be done to resolve the issues of conflict and fragility in the Middle East.

For the Middle East, the starting point should be to move away from any process that reinforces the image of the West devising solutions and proposing "new" visions to the region. Such approaches are reminiscent of the Sykes-Picot agreement or the neoconservatives' "grand strategy" of the early 2000s and do not appreciate that the Middle East has changed fundamentally since 2011. The region, at all levels, now expects to be treated with dignity and to be the driving force behind its own development.

It is high time to pull together to establish a "Regional Reconstruction Strategy" that can address all sorts of violence, not just Islamist-related conflict. The region needs an ever-evolving strategy that maintains a holistic, problem-solving outlook while drawing on various forms of intervention (e.g. community driven development, inter-regional development projects, targeted counterinsurgency operations, stabilization, statebuilding, etc.) without being straightjacketed by any one toolkit or template. Novel approaches rooted in genuine regional leadership, broad participation, youth engagement, and the utilization of technology will increasingly need to be applied. The pillars of such a strategy should be a collective regional vision, effective local participation, smart security, reconciliation and justice, equity, reconstruction and development, and capacity.

Collective Vision: With the aspirations of the Arab Spring unrealized and many countries descending into sectarianism, what is needed now is a collective vision that goes beyond national borders. This would include pooling the region's resources, specifically all the ingredients for large-scale development, such as human resources, an educated population, capital, mobility, and nature. We could then look to the day when region-wide development is synergistic and not predatory or a zero-sum game. What Morocco has achieved with solar energy is a shining example—a visionary investment has addressed regional developmental and environmental challenges, stimulated employment, and raised confidence that hi-tech and innovative sectors can thrive in the Middle East. Such a broad vision is crucial if the region is to leapfrog into the twenty-first century and not remain in a vicious cycle of conflict and failed development.

Key to an inclusive and non-adversarial vision will be both accepting and embracing Islam as a majority religion while building on human security as an area of common ground. For this to happen some real changes are required in places such as Iran and Saudi Arabia—which would enable both to exercise their regional leadership in coalescing a constructive collective vision rather than perpetuating sectarian hostility.

Broad Participation: It is important that the regional vision recognizes that development requires an active civil society, a free media, and rooting action and ideas at the local level and with popular participation. The process of engaging in a region-wide consultation where contributions are coming from schools, villages, city halls, political parties, unions, and many other civic forums can help the region start dreaming about what it wants to look like in the 50 years to come.

Smart Security: Instead of a collective vision for development we have one for defense, formed with the excuse of the Islamic State group. All appreciate that a minimum level of security is important for implementing reconstruction, but a lack of security cannot be a pretext to do nothing. Experience has shown that delaying reconstruction efforts pushes people down the slope of conflict and violence and leads to dependence on humanitarian assistance. The region needs to find ways of better understanding the granular texture of security at local and regional levels so that strategies can be developed in which localized insecurity does not hold back development in other areas. This could support "spot reconstruction" efforts that create exemplars of what a degree of stability combined with reconstruction intervention can achieve in the midst of larger instability.

Reconciliation and Justice: No long-term investment in reconstruction can be protected without genuine reconciliation across the region. Twenty years ago the main fault line was Israel-Palestine. Today, there are many additional fault lines that need to be addressed, including Muslim-Christian tensions, tensions between displaced and host communities, and tensions between Sunni and Shiite communities. The most fundamental way to initiate reconciliation is to make sure that the rule of law applies to all and that everyone has access to justice regardless of the mechanism. On this a lot can be built on local and traditional systems for achieving justice and reconciliation.

Equity: A common mistake with reconstruction is that it proceeds without sufficient regulation and monitoring to ensure that benefits are equitably distributed. This region has repeatedly seen how easily reconstruction "lords" (most of whom were previously warlords) can emerge to line their pockets at the expense of the general public, thus perpetuating that country's crisis. World Bank arguments for the private sector to take the lead in reconstruction in Afghanistan and elsewhere have done nothing but strengthen this model. Assad's efforts to liberalize Syria's economy prior to 2011 led to the further enrichment of a corrupt elite, contributing to what we see today. Going forward, reconstruction efforts must take into consideration the poorest and least capable—so that nobody is left out.

Reconstruction and Development: There is an urgent need to find new ways of inducing development through international engagement with the region. The current instability has shifted spending toward security and away from the basics of development. As a result, some of the most important development indicators—freedom of expression, women's participation, poverty, quality of education—have taken a step back. All this is happening when the region is facing financial challenges due to severely reduced oil prices. This may prove to be an opportunity as some countries needed a good wake-up call to the pernicious effects of a model of capital development in which billions of dollars are invested in the West, generating jobs and stabilizing economies thousands of miles away at the expense of the region. If the West wants to help the region it should seek to focus minds within the Arab world on the value of investment in addressing regional problems in a mutually beneficial way. Ultimately a more stable region will lead to more prosperous neighbors both in the East and the West.

Building Capacity: To do this we must invest enormous amounts in fostering sustainable capacity at regional, national, and local levels. It is essential to invest in education at all levels, in particular going beyond primary education to support the young men and women that will become leaders with the conviction and capabilities to rebuild the region. In a rush to capture development, we have focused on the hard sciences, engineering, business studies, and computer science while ignoring our own culture, languages, and history. We must correct this imbalance, and it is time we develop our ideas in our own language and not rely on translation.

For all this to happen, fragility must be addressed within a coherent regional vision, not individual national plans. It would be constructive if the international community and donors would try to view the region as a whole—as one canvas in which to facilitate cross-border mobility of population, capital, ideas, and labor—and encourage regional responsibility with different countries leading in their areas of competency. International partners can support this with new and innovative forms of funding that utilize collateral guarantees from the region, not just individual countries. If we can embrace a truly regional approach, there may be a day when we elevate human dignity and human development above petty politics and sectarianism.

Authors

Publication: Huffington Post
     
 
 




middle east

To save his Middle East legacy, Obama must recognize a Palestinian state now


Editors’ Note: To salvage his Middle East legacy, advance American interests in the Arab world, and align with the position of the international community on this conflict, Ibrahim Fraihat argues, President Obama must make the long overdue decision of recognizing a sovereign and independent Palestinian state before leaving office. This post originally appeared on Middle East Eye.

Driven by the search for his legacy in the Middle East, it seems President Barack Obama has decided to spend additional political capital on reviving Israeli-Palestinian talks before the end of his second term in office.

Last month, the Wall Street Journal reported that the White House is working on a renewed peace push, including a possible Security Council resolution or other initiatives such as “a presidential speech and a joint statement from the Middle East Quartet.”

While it is still unclear where President Obama is going with this renewed effort, he must understand that using the same old techniques of U.S. mediation will only exacerbate the crisis, consequently tarnishing his legacy in the Middle East. To salvage his Middle East legacy, advance American interests in the Arab world, and align with the position of the international community on this conflict, he must make the long overdue decision of recognizing a sovereign and independent Palestinian state before leaving office.

[U]sing the same old techniques of U.S. mediation will only exacerbate the crisis, consequently tarnishing [Obama's] legacy in the Middle East.

First, Obama should learn from the mistakes of his predecessors, George W. Bush and Bill Clinton, who also tried to reach a mutually acceptable agreement between the Palestinian and Israelis with only a few months left in office.

Reaching an agreement between the two parties under severe time pressure will not work. A party that is not interested in a peace agreement can easily maneuver by using delaying tactics until Obama’s term ends. Israeli Prime Minister Benjamin Netanyahu already utilized this strategy when he publicly rejected an invitation from Obama to visit the White House to talk peace because he wanted to “avoid any perceived influence” in the forthcoming U.S. presidential election. These remarks came from the same person who meddled in domestic American affairs by aggressively lobbying against Obama during the last U.S. presidential election.

Obama has already put in the effort by working with the parties, but now he needs to make decisions. Unlike many American presidents, Obama made the resolution of this conflict a top priority. Despite the brutal civil wars engulfing the Middle East region in the past five years, Obama demonstrated a firm commitment and allocated the needed political capital to make a breakthrough in the Israeli-Palestinian conflict. During his time in office, Secretary of State John Kerry spent more time on Israeli-Palestinian negotiations than any other international conflict. However, the outcome of the Obama administration’s intensive diplomatic efforts has been a total failure. These negotiations ended without an accord or even a memorandum of understanding, agreements that could have built on Obama’s legacy in the Middle East.

Nonetheless, Obama knows very well who made him fail. Netanyahu repeatedly defied Obama: In Congress, he refused to engage in serious negotiations that could have led to an agreement, and he publicly lobbied against Obama’s election for a second term. Obama should not expect Netanyahu to change his position and cooperate on any renewed efforts that could save Obama’s failed legacy in the Middle East. This is the same Netanyahu whom Obama increasingly grew frustrated with throughout his presidency.

With the remaining few months in office, the time has come for Obama to shape his legacy in the Middle East the way he wants it, not the way that Netanyahu has lobbied to characterize it. Obama has an opportunity to take his place in history as the first American president to officially recognize an independent Palestinian state.

Obama has an opportunity to take his place in history as the first American president to officially recognize an independent Palestinian state.

Sooner or later, there will be a Palestinian state and the United States will recognize it. Obama knows that very well. So why should he miss this opportunity and let another president recognize it in the future? Obama should worry about his own legacy, not Netanyahu’s extremist views. Obama should never allow Netanyahu to shape his legacy in the Middle East and leave it stained with failure.

Obama’s Middle East legacy is equally bleak in other parts of the region. Syria could become Obama’s Rwanda; Benghazi and the late Ambassador Chris Stevens are witnesses to his legacy in Libya; al-Qaeda in Yemen is much stronger today than when Obama intensified his drone policy against the organization; only history will tell how the Iran nuclear deal turns out in the future. Unfortunately, Obama cannot change the facts in any of these countries with the limited time remaining for him in office. However, he can still restore his legacy in the Middle East by recognizing a Palestinian state.

By recognizing a Palestinian state now, Obama will have seized an historical opportunity to impact the future and establish a foundation for the next American administration in the Middle East. No matter who comes to the White House, they will have to deal with this new fact. Obama has the international community on his side in recognizing Palestine. France recently stated that it will recognize an independent Palestinian state if a final effort to bring about peace fails. Additionally, Sweden has officially recognized Palestine.

American diplomats have a tradition of balancing their views after they leave office as they become free from the pressure of the Israel lobby and domestic politics. President Jimmy Carter is a one example of this.

Obama should not fall into this trap. No matter how he adjusts his views after leaving office, he will never save his legacy in the Middle East and the Israeli-Palestinian conflict if he does not recognize a Palestinian state while he still has the power to do so. The time is now and he must act rather than regretting it later.

President Obama, if not for your legacy, at least recognize Palestine for the Nobel Peace Prize that you received in advance. The committee trusted you and awarded you the prize before you achieved any real peace; do not disappoint them. Make sure you earn the prize, Mr. President. If not for your legacy or the prestigious prize, then please do something for your own personal pride and be the one who laughs last, not Benjamin Netanyahu.

Mr. President, recognize Palestine now.

Publication: Middle East Eye
     
 
 




middle east

American attitudes on refugees from the Middle East


With conflicts in the Middle East continuing unabated, refugees continue to flow out of several war-torn countries in massive numbers. The question of whether to admit more refugees into the United States has not only been a source of debate among Washington policymakers, it has also become a central question within the U.S. presidential race. Nonresident Senior Fellow Shibley Telhami conducted a survey on American public attitudes toward refugees from the Middle East, in particular from Syria, Iraq, and Libya. Below are several key findings from the poll and a download link to the survey's full results.

Downloads

Authors

Image Source: © Muhammad Hamed / Reuters
      
 
 




middle east

Civil wars and U.S. engagement in the Middle East


"At the end of the day, we need to remember that Daesh is more a product of the civil wars than it is a cause of them. And the way that we’re behaving is we’re treating it as the cause.  And the problem is that in places like Syria, in Iraq, potentially in Libya, we are mounting these military campaigns to destroy Daesh and we’re not doing anything about the underlying civil wars.  And the real danger there is—we have a brilliant military and they may very well succeed in destroying Daesh—but if we haven’t dealt with the underlying civil wars, we’ll have Son of Daesh a year later." – Ken Pollack

“Part of the problem is how we want the U.S. to be more engaged and more involved and what that requires in practice. We have to be honest about a different kind of American role in the Middle East. It means committing considerable economic and political resources to this region of the world that a lot of Americans are quite frankly sick of… There is this aspect of nation-building that is in part what we have to do in the Middle East, help these countries rebuild, but we can’t do that on the cheap. We can’t do that with this relatively hands off approach.” – Shadi Hamid

In this episode of “Intersections,” Kenneth Pollack, senior fellow in the Center for Middle East Policy and Shadi Hamid, senior fellow in the Project on U.S. Relations with the Islamic World and author of "Islamic Exceptionalism: How the Struggle over Islam is Reshaping the World," discuss the current state of upheaval in the Middle East, the Arab Spring, and the political durability of Islamist movements in the region. They also explain their ideas on how and why the United States should change its approach to the Middle East and areas of potential improvement for U.S. foreign policy in the region. 

Show Notes

Fight or flight: America’s choice in the Middle East

Security and public order

Islamists on Islamism today

Temptations of Power: Islamists & Illiberal Democracy in a New Middle East

Ending the Middle East’s civil wars

A Rage for Order: The Middle East in turmoil, from Tahrir Square to ISIS

Building a better Syrian opposition army: How and why

With thanks to audio engineer and producer Zack Kulzer, Mark Hoelscher, Carisa Nietsche, Sara Abdel-Rahim, Eric Abalahin, Fred Dews and Richard Fawal.

Subscribe to the Intersections on iTunes, and send feedback email to intersections@brookings.edu.

Authors

Image Source: © Stringer . / Reuters
      
 
 




middle east

Advancing financial inclusion in Southeast Asia, Central Asia, and the Middle East


Editor’s Note: This blog post is part of a series on the 2015 Financial and Digital Inclusion Project (FDIP) Report and Scorecard, which were launched at a Brookings public event on August 26. Previous posts have highlighted five key findings from the 2015 FDIP Report and explored groundbreaking financial inclusion developments in India. Today’s post will compare financial inclusion outcomes and opportunities for growth across several Asian countries included in the 2015 Report and Scorecard.

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Of the 21 countries ranked in the 2015 Financial and Digital Inclusion Project (FDIP) Report and Scorecard, no countries in Asia placed in the top 5 in the overall ranking. However, all of the FDIP Asian countries have demonstrated progress within at least one of the four dimensions of the 2015 Scorecard: country commitment, mobile capacity, regulatory environment, and adoption of traditional and digital financial services.

This blog post will dive into a few of the obstacles and opportunities facing FDIP countries in central Asia, the Middle East, and southeast Asia as they move toward greater access to and usage of financial services among marginalized groups. We explore these countries in order of their overall score: Turkey (74 percent), Indonesia (70 percent), the Philippines (68 percent), Bangladesh (67 percent), Pakistan (65 percent), and Afghanistan (58 percent). You can also read our separate post on financial inclusion in India, available here.

Turkey: Clear economic advantages, but opportunities for enabling regulation and greater equity remain

Turkey is one of the few upper-middle income countries in the FDIP sample, ranking in the top 5 in terms of gross domestic product (GDP) measured in US dollars. Turkey’s fairly robust banking infrastructure contributed to its relatively strong adoption rates: As of 2013, the International Monetary Fund’s Financial Access Survey found that Turkey had about 20 bank branches per 100,000 adults (the 4th highest density rate among the 21 FDIP countries) and about 73 ATMs per 100,000 adults (the 2nd highest density rate among the FDIP countries).

According to the World Bank’s Global Financial Inclusion (Global Findex) database, about 57 percent of adults in Turkey had an account with a mobile money provider or formal financial institution as of 2014. Turkey’s performance on the adoption dimension of the 2015 Scorecard contributed to its tie with Colombia and Chile for 6th place on the overall scorecard.

With that said, Turkey received lower mobile capacity and regulatory environment scores, ranking 16th and 17th respectively. Although Turkey’s smartphone and mobile penetration levels are quite robust, a limited mobile money provider landscape, combined with a lack of regulatory clarity surrounding branchless banking regulations (particularly agent banking), constrained Turkey’s scores in those categories.

Nonetheless, there is promising news for Turkey’s financial inclusion environment. In 2015, Turkey assumed the G20 presidency and has renewed its focus on financial inclusion in association with this transition. Turkey’s 2014 financial inclusion strategy is one example of the country’s commitment to advancing inclusion.

To date, financial inclusion growth in Turkey has been limited, as evidenced by the results of the 2011 and 2014 Global Findex. However, if the country’s stated commitment translates into concrete initiatives moving forward, we can expect to see accelerated financial inclusion growth. This will be critical for facilitating access to and usage of quality financial services among the nearly 60 percent of women in Turkey without formal financial accounts. Reducing the approximately 25 percentage point gap in account ownership between men and women — one of the highest gender gaps among the 21 FDIP countries — should be a key priority for the country moving forward.

Indonesia: High mobile money potential, but enhanced awareness needed to drive adoption

Recent changes to Indonesia’s regulatory environment have facilitated a more enabling digital financial services ecosystem, although there is still room for improvement in terms of reducing supply-side barriers. Increasing mobile money awareness could help leverage Indonesia’s strong mobile capacity rates to increase access to and usage of formal financial services. However, moving from a heavily cash-based environment to greater use of digital financial services will take time: A 2014 InterMedia survey in Indonesia found that although 93 percent of bank account holders could access their accounts digitally, 73 percent preferred to access their accounts via an agent at a bank branch.

The differing mandates of Indonesia’s new financial services authority, Otoritas Jasa Keuangan (OJK), which focuses on branchless banking (specifically agent banking) and Bank Indonesia, which focuses on electronic money regulation, may have created some confusion regarding the regulatory environment. Solidifying the country’s financial inclusion strategy and clarifying the roles of the various financial inclusion stakeholders could provide opportunities for greater coherence in terms of financial inclusion objectives.

OJK’s recent branchless banking regulations have led to several positive changes within the regulatory environment. For example, these regulations enabled financial service providers to appoint individuals and business entities as agents and to provide simplified customer due diligence requirements. The 2015 FDIP Report highlights in greater detail some possible improvements to the branchless banking and e-money regulations.

On the mobile capacity side, Indonesia tied for the second-highest score on the 2015 Scorecard. Indonesia is one of the few countries where mobile money platform interoperability has been implemented, allowing different mobile money services to “talk” to one another in real time. Indonesia also boasted the third-highest 3G network coverage by population among all the FDIP Asian countries, as well as the third-highest unique subscribership rate among these countries. However, only about 3 percent of adults were aware of mobile money as of fall 2014, according to the InterMedia survey.

In terms of adoption, the 2014 Global Findex found that women in Indonesia actually had slightly higher rates of account ownership than adults in general, although there is still significant room for growth across all adoption indicators. Given Indonesia’s strong mobile capacity ranking, increasing awareness of mobile money services could drive growth in the digital finance sector. Clarifying existing regulatory frameworks and removing some remaining restrictions regarding agent exclusivity and other agent criteria could further boost financial inclusion.

Philippines: Strong commitment, but geographic barriers have inhibited scale

The Philippines tied with Bangladesh to garner 15th place for adoption, which contributed to the country’s overall ranking (also 15th place). In both Bangladesh and the Philippines, about 31 percent of adults had an account with a mobile money provider or formal financial institution as of 2014. According to the 2014 Global Findex, the percentage of women with formal financial accounts was about 7 percentage points higher than the overall percentage of adults with accounts — a rarity among the 21 FDIP countries, which generally exhibit a “gender gap” in which women are less likely to have formal financial accounts than men.

The Philippines’ efforts to foster financial inclusion earned it the second-highest country commitment and regulatory environment rankings among the FDIP Asian countries. The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, has issued a number of circulars providing guidance regarding electronic money and allowing non-bank institutions to become e-money issuers. The BSP also has the distinction of being the first central bank in the world to create an office dedicated to financial inclusion. Most recently, the BSP launched a national financial inclusion strategy in July 2015.

On the mobile side, according to the GSMA Intelligence database, as of the end of the first quarter of 2015 the Philippines had the highest unique mobile subscribership rate among the FDIP Asian countries, as well as the second-highest rate of 3G network coverage by population among these countries.

In terms of mobile money, the Philippines is home to two of the earliest mobile financial services products, Smart’s Smart Money and Globe’s GCash. It also boasts the second-highest rate of mobile money accounts among adults in all the FDIP Asian countries, according to the 2014 Global Findex.

There is still significant room for improvement in adoption of traditional and digital financial services in the Philippines. The country’s geography has posed a challenge with respect to advancing access to financial services among the dispersed population. While the extent of banking infrastructure has improved over time, as of 2013 610 out of 1,634 cities and municipalities did not have a banking office, and financial access points remained concentrated in larger cities. Expanding agent locations and facilitating interoperability could enhance mobile money adoption, mitigating the consequences of these geographic barriers.  

Bangladesh: Rapid growth, but high unregistered use and low adoption overall

While Bangladesh performed strongly on the country commitment and mobile capacity dimensions of the 2015 FDIP Scorecard, it received one of the lowest adoption rankings among the FDIP Asian countries. According to the Global Findex, about 31 percent of adults age 15 and older had an account with a formal financial institution or mobile money provider as of 2014. Indicators pertaining to the country’s rates of formal saving, credit card use, and debit card use all received the lowest score.

Bangladesh has a robust mobile landscape, with fairly strong unique mobile subscription rates — as of the first quarter of 2015, it was tied with Indonesia for the third-highest unique mobile subscribership rates among the FDIP Asian countries, after the Philippines and Turkey. This mobile coverage is combined with a multiplicity of mobile money providers (although a 2014 InterMedia survey noted that nearly 90 percent of active mobile money customers used the bKash mobile money service).

Awareness of mobile money as a service in Bangladesh is very high, although understanding of the concept is less prevalent — in 2014, about 91 percent of respondents in an InterMedia survey were aware of at least one mobile money provider, although only about 36 percent were aware of mobile money as a general concept.

Unregistered use of mobile money accounts is high. While about 37 percent of adults had a mobile money account or bank account or both as of 2014, according to the InterMedia survey, only about 5 percent had registered mobile money accounts, while 4 percent had active, registered mobile money accounts (meaning an account that is registered and has been used in the previous 90 days).Transitioning to registered accounts will help enable individuals to connect with more extensive financial services, such as receipt of government payments.

Overall, adoption of mobile money and the expansion of agent locations have been increasingly rapid in Bangladesh — as of 2014 Bangladesh was one of the fastest growing markets in terms of total accounts globally. Over 60 percent of respondents in a 2013 InterMedia survey stated that they “fully” or “rather” trusted mobile money. Moving forward, increasing financial capability might help individuals feel more at ease registering their accounts and using them independently of an agent.

Pakistan: Public and private sector initiatives advance inclusion

Pakistan ranked 7th in terms of the percentage of adults with mobile money accounts among the 21 countries, achieving the highest percentage of all of the Asian FDIP countries. Yet there is significant room for growth — as of 2014, only about 6 percent of adults had a mobile money account.

The State Bank of Pakistan (SBP) has clearly expressed its commitment to advancing financial inclusion, which earned the country a commitment score of 100 percent. The SBP developed Branchless Banking regulations in 2008, with revisions in 2011. These regulations were explicitly intended to promote financial inclusion. More recently, the country’s National Financial Inclusion Strategy was launched in May 2015. In terms of quantitative assessments of financial inclusion, the SBP tracks supply-side information on branchless banking in its quarterly newsletters.

Recent public and private sector initiatives may help advance mobile money adoption. For example, a re-verification initiative for SIM cards was mandated by the government and initiated earlier in 2015. Mobile network operators have been promoting registration of mobile money accounts since the biometric re-verification process is more intensive than the identification requirements needed to register a mobile money account.

Earlier, in September 2014, the EasyPaisa mobile money service decided to eliminate fees related to money transfers between Easypaisa account customers and cash-out transactions for a set period. As of April 2015, the number of person-to-person money transfers had increased by about 2500 percent.

Still, barriers to financial inclusion remain. A 2014 InterMedia survey noted that while distance was less of a barrier to registration than previously, distance did affect the frequency with which users engaged with mobile money services. Therefore, expanding access points could further facilitate use of mobile money. Increasing the number of registered accounts could also provide individuals with more opportunities to engage with financial services beyond basic transfers — the InterMedia survey found that as of 2014, about 8 percent of adults were over-the-counter mobile money users, while 0.3 percent were registered users.

Afghanistan: Commitment to improving infrastructure and adoption

Instability and systemic corruption in Afghanistan over the past several decades have damaged trust in formal financial services and limited the development of traditional banking infrastructure. In addition to having one of the lowest levels of GDP among the 21 FDIP countries, as of 2013 the Financial Access Survey found Afghanistan had the lowest reported density of commercial banks per 100,000 adults. Even among individuals who can access banks, adoption of formal accounts is constrained by a lack of trust in formal financial services.

On the mobile side, Afghanistan has fairly widespread 3G network coverage (over 80 percent of the population, according to the GSMA Intelligence database), which helped boost its mobile capacity ranking to 2nd place. However, Afghanistan received the lowest score possible for each of the 15 adoption indicators. According to the 2014 Global Findex, financial account ownership as of 2014 was at about 10 percent of adults, and financial account ownership among women was at only 4 percent. Tracking gender-disaggregated data at the national level could help the government better identify underserved populations and target financial solutions toward their needs.

The government has made an effort to promote financial inclusion and digital financial services. For example, Da Afghanistan Bank committed to the Alliance for Financial Inclusion in 2009, and the Republic of Afghanistan is a member of the Better Than Cash Alliance. In 2008, the Money Service Providers Regulation was issued, with amendments instituted a few years later pertaining to e-money. The Afghanistan Payments Systems, which is still being fully operationalized, aims to allow payment service providers such as mobile network operators to connect their mobile money systems.

While several mobile money options are available, adoption of these services is low. According to the 2014 Global Findex, about 0.3 percent of adults had a mobile money account. Implementing interoperability across platforms might help increase the utility of mobile money services for consumers, and as in Turkey, developing specific agent banking regulations could provide clarity to the sector and drive innovation.

By expanding financial access points, educating consumers about traditional and digital financial services, and monitoring providers to ensure consumer protection, Afghanistan’s regulatory entities and financial service providers may be able to better reach underserved populations and inculcate trust in formal financial services.

Authors

Image Source: © Romeo Ranoco / Reuters
       




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On April 13, 2020, Suzanne Maloney discussed “Why the Middle East Matters” via video conference with IHS Markit.  

On April 13, 2020, Suzanne Maloney discussed "Why the Middle East Matters" via video conference with IHS Markit.

       




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The Middle East unraveling

       




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Around the halls: Brookings experts on the Middle East react to the White House’s peace plan

On January 28 at the White House, President Trump unveiled his plan for Middle East peace alongside Israeli Prime Minister Benjanim Netanyahu. Below, Brookings experts on the peace process and the region more broadly offer their initial takes on the announcement. Natan Sachs (@natansachs), Director of the Center for Middle East Policy: This is a…

       




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Three ways to improve security along the Middle East’s risky energy routes


“If the Americans and their regional allies want to pass through the Strait of Hormuz and threaten us, we will not allow any entry,” said deputy commander of Iran’s Revolutionary Guards, Hossein Salami, last Wednesday. Iran has a long history of making threats against this critical waterway, through which some 17 million barrels of oil exports pass daily, though it has not carried them out. But multiple regional security threats highlight threats to energy transit from and through the Middle East and North Africa (MENA)—and demand new thinking about solutions.

Weak spots

Hormuz attracts attention because of its evident vulnerability. But recent years have seen severe disruptions to energy flows across the region: port blockades in Libya; pipeline sabotage in Egypt’s Sinai, Yemen, Baluchistan in Pakistan, and Turkey’s southeast; attacks on oil and gas installations across Syria and Iraq; piracy off Somalia. Energy security is threatened at all scales, from local community disturbances and strikes, up to major regional military confrontations.

Of course, it would be best to mitigate these energy security vulnerabilities by tackling the root causes of conflict across the region. But while disruption and violence persist, energy exporters and consumers alike should guard against complacency.

A glut of oil and gas supplies globally—with low prices, growing U.S. self-sufficiency, and the conclusion of the Iranian nuclear deal—may seem to have reduced the urgency: markets have hardly responded to recent flare-ups. But major economies – even the United States – still remain dependent, directly or indirectly, on energy supplies from the MENA region. Spare oil production capacity is at unusually low levels, leaving the balance vulnerable to even a moderate interruption.

Most concern has focused on oil exports, given their importance to the world economy. But the security of liquefied natural gas (LNG) shipments is an under-appreciated risk, particularly for countries such as Japan and South Korea which are heavily dependent on LNG. A disruption would also have severe consequences for countries in the Middle East and North Africa, depriving them not only of revenues but potentially of critical imports.

Doing better 

There are three broad groups of approaches to mitigating the risk of energy transit disruptions: infrastructure, institutions, and market. 

  1. Infrastructure includes the construction of bypass pipelines avoiding key choke-points and strategic storage.

    Existing bypass pipelines include SUMED (which avoids the Suez Canal); the Habshan-Fujairah pipeline in the UAE (bypassing Hormuz); and the Saudi Petroline, which runs to the Red Sea, hence offering an alternative to the Gulf and Hormuz. Proposed projects include a link from other Gulf Cooperation Council (GCC) countries to Oman’s planned oil terminal at Duqm on the Indian Ocean; new or rehabilitated pipelines from Iraq across Jordan and Turkey; an expansion of Petroline; and a new terminal in southern Iran at Jask.

    Strategic storage can be held by oil exporters, by importers, or a combination (in which exporters hold oil close to their customers’ territory, as with arrangements between Saudi Arabia and Japan, and between Abu Dhabi and Japan and India).

  2. Institutional approaches include mechanisms to deal with disruptions, such as cooperative sharing arrangements.

    More analysis has focused on infrastructure than on institutional and market mitigation. Yet these approaches have to work together. Physical infrastructure is not enough: it has to be embedded in a suitable framework of regulation, legislation, and diplomacy. Cross-border or multilateral pipelines require agreements on international cooperation; strategic storage is most effective when rules for its use are clear, and when holders of storage agree not to hoard scarce supplies. 

    The effective combination of infrastructure and institutions has a strategic benefit even if it is never used. By making oil exporters and consumers less vulnerable to threats, it makes it less likely that such threats will be carried out.

    Alliances can be useful for mutual security and coordination. However, they raise the difficult question of whom they are directed against. Mutually-hostile alliances would be a threat to regional energy security rather than a guarantor. Organizations such as the International Energy Agency (IEA), the International Energy Forum (IEF), Organization of Petroleum Exporting Countries (OPEC), Gulf Cooperation Council, and the Association of Southeast Asian Nations (ASEAN) could all have roles, but none is ideally placed. Rather than creating another organization, reaching an understanding between existing bodies may be more effective.

  3. In general, markets cope well with the task of allocating scarce supplies. Better and timelier data, such as that gathered by the IEF, can greatly improve the functioning of markets. Governments do have a role in protecting the most vulnerable consumers and ensuring sufficient energy for critical services, but price controls, rationing, and export bans have usually been counterproductive, and many of the worst consequences of so-called energy crises have come from well-meaning government interference with the normal market process of adjustment.

    However, it is generally difficult or impossible for a single company or country to capture all the benefits of building strategic infrastructure—which, as with a bypass pipeline, may only be required for a few months over a period of decades. International financing, perhaps backed by a major energy importer—mostly likely China—can help support such projects, particularly at a time of fiscal austerity in the Middle East.

Energy exporters within the MENA region may often find their interests divergent. But the field of energy security is one area for more fruitful cooperation—at least between groups of states, and some external players, particularly their increasingly important Asian customers. If regional tensions and conflicts cannot be easily solved, such action at least alleviates one of the serious risks of the region’s turmoil.

For more on this topic, read Robin Mills’ new analysis paper “Risky routes: Energy transit in the Middle East.

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Risky routes: Energy transit in the Middle East


Event Information

May 30, 2016
6:00 PM - 7:30 PM AST

Four Seasons Hotel, Doha, Qatar

The Brookings Doha Center (BDC) hosted a panel discussion on May 30, 2016, about the security of energy exports and energy transit from the Middle East and North Africa (MENA). The panelists were Robin Mills, nonresident fellow at the Brookings Doha Center; and Colonel Giuseppe Morabito, director of the Middle East Faculty at the NATO Defense College. Sultan Barakat, senior foreign policy fellow and director of research at the BDC, moderated the event, which was attended by members of Qatar’s diplomatic, academic, and media community.

Barakat introduced the session by stating that the current unsettled environment in the Middle East raises concerns over energy security, both within the region and amongst energy consumers in Europe, the United States, India, China, and elsewhere. Threats to energy infrastructure exist at all scales, from individual acts of crime, sabotage, and terrorism to major regional wars and conflicts. We have seen large swaths of land fall under the control of non-state actors while states struggle to protect their territories. The Middle East houses some of the most important chokepoints in the energy transit, but also happens to be one of the most unstable regions in the world. 

Mills started his remarks by highlighting paradoxes in the oil and gas markets today, where low global oil and gas prices are juxtaposed with high levels of global disruptions to energy transits. Concern over energy security is lacking as markets appear to pay less attention to risks, even though energy security faces some unprecedented challenges. Such indifference, he noted, may be appropriate for now given the oversupply and abundance of energy in the market. But even in the current market, some possible threats may have very severe effects on global energy supplies, threatening the economies of consumers, producers, and the global market alike.

Mills proceeded to list different risk scenarios. At the local level, he highlighted the threat of sabotage, where communities demanding a greater share of natural resources may block a pipeline or attack an export terminal; piracy, which, he argued, could emerge in regions beyond the coast of Somalia; and attacks by extremist groups, who are eager to get a hold on new sources of income. On a state level, there is the threat of major interstate wars between major exporters, which thankfully haven’t erupted yet.  Past interstate wars, however, have had very significant impacts on energy security. The 1973 war between Israel and Egypt lead to an embargo that triggered the first oil crisis. The 1980s Iran-Iraq war resulted in severe damage to the oil production facilities of both countries and involved a tanker war which destroyed tankers passing through the Strait of Hormuz, resulting in an intervention by both the United States and the Soviet Union to protect shipping.

Hormuz, Mills continued, is one of numerous chokepoints—narrow channels along widely-used global sea routes that are crucial to the energy business. Given their narrowness, they tend to be obvious disruption targets. Hormuz carries about 17 million barrels per day (more than 20%) of oil exports. It is also the sole route for LNG export from Qatar, a crucial source of gas for East Asia and Europe. Other important chokepoints in the region are the Suez Canal, the southern entrance to the Red Sea, and the Bosporus Straits in Turkey. Any interruption of transit along those key areas would be highly detrimental.

Mills argued that, beyond attacks and wars, there is a broader and more diffuse threat to energy security, which has to do with investment. While it is true that investors can handle some level of risk in countries with moderate levels of insecurity like Nigeria, not all levels of insecurity can be worked with. At some point, insecurity can become too severe, deterring investment or even preventing it entirely. In the long term, this deters the development of promising new sources of oil and gas.

In response to a question from Barakat about NATO’s perspective on energy security in the Middle East, Morabito argued that NATO is particularly concerned about its gas supplies from the region, as most NATO countries rely on the region for gas. He argued that NATO’s policies, however, are primarily reactive, driven by events. No major events have interrupted energy supplies in recent times, so energy security is hardly on the agenda of NATO policymakers. There are more pressing issues these days, such as the threat of the Islamic State group (IS) and that of Russia’s Vladimir Putin.

In fact, Morabito continued, it is difficult to focus NATO’s attention on the issue because there doesn’t seem to be one. In the past, oil prices went up simply due to a war in Lebanon, which isn’t even an energy exporter. Today, however, we have a war that involves Saudi Arabia, the largest oil producer, but prices have been declining. The markets are very different today, mainly due to the development of shale technologies.

Nevertheless, Morabito noted that he thinks NATO, or some NATO nations, have intervened to secure their energy interests by training interstate groups such as the Kurds in Iraq or paying tribesmen in Algeria to protect pipelines that flow towards Europe. He noted that protecting pipelines is a costly business. A pipeline of 1,000 kilometers requires the presence of at least two soldiers every 50 meters; those two would have to work in shifts which necessitates hiring yet another two. Even then, an attack by only 50 militants would likely see the pipeline destroyed. This high cost makes it crucial to cooperate with local groups if proper security is to be insured.

Mills noted that European countries have become far less vulnerable to interruptions in supply, which were historically mainly caused by conflicts with Russia. He attributed that to interventions by the European Union to mitigate those vulnerabilities. He noted that in addition to institutional interventions, infrastructural development and market forces are also key in mitigating risks to the energy transit. When it comes to infrastructure, pipelines can be developed to bypass chokepoints, strategic storage can be built to provide countries with an emergency stock of oil and gas, and in some rare cases spare capacity can be employed to fill gaps in supply. Additionally, too often, government action to impose price controls, rationing, and export bans has proven to be counterproductive. It is important to allow the market to correct itself freely, although market mechanisms could be aided by better data.

After a Q&A session that asked about whether there truly are any real threats to Hormuz, the role that multi-national corporations can play in securing energy security, and threats to energy transit stemming from outside the MENA region.  Barakat concluded by thanking the guests and stating that energy security is yet another reason why the region should work to resolve its differences and put an end to regional wars and rivalries.

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Want to ease tensions in the Middle East? Science diplomacy can help


Editors’ Note: Science diplomacy can help countries solve on-the-ground challenges and improve standards of living for their citizens, writes David Hajjar. But it can also lay groundwork for improving relations through functional, scientific cooperation that is less politicized. This post originally appeared on Lawfare.

In the Middle East, governments and non-state actors alike have tried all forms of diplomacy to solve the challenges they face, with mixed results: shuttle diplomacy by the United States between the Israelis and Palestinians worked for a time, great-power diplomacy over the Syrian civil war largely hasn’t, and direct negotiations with unsavory groups like the Taliban have moved in fits and starts. 

But progress can come from unlikely sources, and science diplomacy—whereby experts collaborate scientifically to address common problems and build constructive international partnerships—has more potential than is often recognized. Science diplomacy can of course help countries solve on-the-ground challenges and improve standards of living for their citizens. But it can also lay groundwork for improving relations in a region often defined by tension (if not outright conflict) through functional, scientific cooperation that is less politicized. 

Efforts in science and technology, on the one hand, and diplomacy on the other, can achieve more if they are thoughtfully merged—rather than siloed. Science diplomacy, therefore, can contribute to peace- and security-building in the Middle East (and with the United States) in unique ways. 

Science and global governance

Across the world, science diplomacy has helped set the stage for advancing foreign policy and global governance goals.

The 2015 nuclear deal between Iran and the P5+1 illuminated how negotiating over and collaborating on science and technology issues can be an important gateway to achieving significant foreign policy goals. Direct (and often very technical) diplomacy between U.S. Secretary of Energy Ernest Moniz and the head of the Atomic Energy Organization of Iran, Ali Akbar Salehi, was key to achieving the framework agreement, as was collaboration between Iranian and Western nuclear scientists more broadly. Provided that the agreement is thoroughly enforced, it’s a major victory for global nuclear nonproliferation efforts—and much credit goes to effective science diplomacy. 

Global efforts to combat climate change are another area in which science diplomacy has had a real impact on policy. The United Nations’ Intergovernmental Panel on Climate Change has become a model for critical science policy research and recommendations. The 2015 conference in Paris brought together hundreds of political leaders and experts to examine the scientific evidence that the globe is warming, discuss remedies, and chart a path forward that can help slow environmental damage. So, science diplomacy was again central—this time in shaping and implementing the global climate governance framework. 

Another area where we have observed substantive gains from science diplomacy is the global management of infectious diseases. The Zika outbreak in Latin America, Ebola epidemic in West Africa, dengue in the Caribbean and Asia, MERS in the Gulf region and in South Korea, and the global threat of pandemic influenza all underscore that international cooperation is key to fighting modern plagues, which spread more rapidly in an era of constant global travel. In some cases more than in others, political leaders have devoted considerable resources to promoting international scientific cooperation—whether in clinical monitoring, medical interventions, research into pathogen biology and diagnostics, and treatments (including vaccine development). In fact, the global response to severe acute respiratory syndrome (SARS) is an example where international collaboration helped identify affected populations and coordinate treatment through the WHO Global Alert and Response System (which has identified new cases in Europe, the Middle East, Australia, Canada, Vietnam, Taiwan, and Hong Kong). The system’s main goal is to send supplies and medical specialists (including epidemiologists), design clinical trials, provide diagnostic tests, identify modes of transmission, and provide treatment. This coordinated response effort has controlled the pandemic.

Science in a fraught region

In the Middle East, opportunities abound for science diplomacy. Not only can this type of approach help solve practical, quality-of-life challenges—from energy to health and beyond—it can bring together expert communities and bureaucracies. In the process, it can contribute to more normalized people-to-people and government-to-government relations. Even at the height of the Cold War, for example, U.S. and Russian nuclear scientists and other experts worked together to monitor each other’s nuclear facilities; even though Moscow and Washington had nuclear-armed intercontinental ballistic missiles aimed directly at each other, bureaucratic cooperation on technical issues became a normal part of the relationship and helped enhance transparency and trust.

In the energy sector, for example, innovation in science and technology will play a crucial role in helping to transition Middle Eastern states in the region away from a dependence on fossil fuels—a broad goal of the Paris accords and a specific strategic goal of states like Saudi Arabia and Iran. Notwithstanding the sectarian disagreements between Iran and Saudi Arabia, both need to address their fast-growing demand for electricity; they need not be in competition with each other. Saudi Arabia currently fuels its own 10 percent annual rise in electricity needs with crude oil, owing to domestic natural dry gas reserves. Iran’s vast gas reserves could be used to meet the kingdom’s growing energy needs, but Iran’s decaying gas fields need $250 billion in major repairs. Many think that if Saudi Arabia used its investment power to revitalize Iran’s gas industry, it would secure the energy it needs to meet demands. The economic benefits of cooperation on energy could promote better relations. Another area of cooperation that can drive the local economies is the Arab Gulf’s first major cross-border enterprise, the Dolphin Gas Project, which was started in 2007. The project involves the transportation of natural gas from Qatar to Oman and to the UAE. Finally, international cooperation between Oman and Iran is developing, where Oman intends to import natural gas from Iran for industrial development. This would require investing in an underwater pipeline from the Iranian coast to Oman. The UAE could do the same to build its economy: import natural gas from Iran, since the pipelines exist. The technical know-how for all these initiatives already exists—to date the main stumbling block has been overcoming regional politics.


Qatari Oil Minister Abdullah bin Hamad al-Attiyah (L) and Dolphin Energy Chief Executive Ahmed Ali Al Sayegh hold a news conference about the inauguration of the Dolphin Energy plant in Doha May 12, 2008. Photo credit: Reuters.

In health, there is also room for mutually-beneficial cooperation. Back in 1996, the U.S. State Department’s Bureau of Near Eastern Affairs helped establish the Middle East Cancer Consortium—that effort continues to help train the next generation of scientists and medical professionals in cancer biology in the region. Other programs have focused on vaccine development for childhood diseases; preventing HIV, malaria, and tuberculosis infections; ending childhood malnutrition; and managing unwanted pregnancies. Programs like these have yielded important advances in public health and have enhanced cooperation between countries like the Palestinian Authority, Egypt, Cyprus, Turkey, and Israel with the United States.

And in a unique cross-sectoral approach, Jordan is host to a promising initiative called the Synchrotron Light for Experimental Science and Application in the Middle East (SESAME). Modeled after the European Organization for Nuclear Research (CERN), SESAME is a partnership between Bahrain, Egypt, Israel, Iran, Jordan, Pakistan, the Palestinian Authority, and Turkey that aims to create research career opportunities that will limit “brain drain” from the region and serve as a model for scientific collaboration.

STEM education: The root of science diplomacy

Science diplomacy has the potential to deliver real dividends that extend beyond the science and technology spaces themselves. When states cooperate on functional, non-politicized (or at least less politicized) issues—whether at the level of non-state scientific communities or at the level of state bureaucracies focused on energy, health, or other issues—they become more accustomed to working together and trusting each other. This can gradually have spillover effects into politics and security arenas.

Science diplomacy doesn’t just happen, though—it requires real efforts on behalf of policymakers and experts. One crucial step is advancing STEM education (science, technology, engineering, and mathematics) to build more robust and diverse expert communities. This is something that President Obama emphasized in his speech at Cairo's Al-Azhar University in 2009. He identified possible areas of cooperation, both within the region and with the United States, including researching and piloting new sources of energy, creating “green” jobs, enhancing communication and informatics, sharing medical information, generating clean water, and growing new crops. 

In some countries in the region, particularly in the Gulf, there are signs of new investment in STEM education and related efforts. For example, Qatar has pledged to spend 3 percent of its GDP on scientific research, and the United Arab Emirates (UAE) has decided to create the world’s first sustainable city. Saudi Arabia created the King Abdullah University of Science and Technology (KAUST) with a $20 billion endowment, $200 million of which has been used to attract scientists and educators from the West. Saudi Arabia, Qatar, and the UAE continue to build and sustain partnerships with European and American universities. 

Interest in science among students and the general citizenry in many Middle Eastern countries remains low, which is problematic at a time when the region’s young people need to compete in a world increasingly centered around STEM. More governments in the region—perhaps with U.S. help—need to increase efforts to attract their young people to STEM education and careers.

International cooperation on STEM issues—led by science diplomats—can strengthen relationships between Middle Eastern states and with the United States. Science and technology disciplines transcend politics, borders, and cultures, and are thus an important bridge between nations. During a time of strained geopolitical relationships, we can focus on making progress in health and disease, food and water security, and other areas—and thereby enhance domestic stability and international security in the process. 

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Webinar: COVID-19: Implications for peace and security in the Middle East

The Brookings Doha Center (BDC) hosted a webinar discussion on April 22, 2020 about the effects of the COVID-19 pandemic on peace and security in the Middle East and North Africa (MENA). Panelists assessed the short-term and long-term implications for the region at large whilst also narrowing in on Iraq and Syria. The panel consisted…

       




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@ Brookings Podcast: The Path to Progress in the Middle East


More than a decade after the start of the war in Afghanistan, America continues to face significant challenges in the Middle East. While news of U.S. struggles often dominate foreign policy discussions, Senior Fellow Bruce Riedel says it is important to remember that the United States is also making progress in the region. From the death of Osama bin Laden to an agreement on the use of Afghan military bases for U.S. counterterrorism operations, America is learning from its past mistakes and using these lessons to guide its response to the Arab Spring.

We Shouldn't Lose Sight of the Positive Developments in the Middle East

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Image Source: MUHAMMAD HAMED
     
 
 




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@ Brookings Podcast: What Americans Think about the Middle East


From the Arab-Israeli conflict, to the paradigm shift of the Arab Spring, to attacks on U.S. government personnel in Egypt and Libya, to the potentially explosive situation in Syria--events in the greater Middle East region continue to resonate here at home. In a recent study, “Americans on the Middle East,” Nonresident Senior Fellow Shibley Telhami finds that Americans have a great understanding and concern about Middle East events. Learn more about these findings in this episode of @ Brookings.

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Civil wars and U.S. engagement in the Middle East


"At the end of the day, we need to remember that Daesh is more a product of the civil wars than it is a cause of them. And the way that we’re behaving is we’re treating it as the cause.  And the problem is that in places like Syria, in Iraq, potentially in Libya, we are mounting these military campaigns to destroy Daesh and we’re not doing anything about the underlying civil wars.  And the real danger there is—we have a brilliant military and they may very well succeed in destroying Daesh—but if we haven’t dealt with the underlying civil wars, we’ll have Son of Daesh a year later." – Ken Pollack

“Part of the problem is how we want the U.S. to be more engaged and more involved and what that requires in practice. We have to be honest about a different kind of American role in the Middle East. It means committing considerable economic and political resources to this region of the world that a lot of Americans are quite frankly sick of… There is this aspect of nation-building that is in part what we have to do in the Middle East, help these countries rebuild, but we can’t do that on the cheap. We can’t do that with this relatively hands off approach.” – Shadi Hamid

In this episode of “Intersections,” Kenneth Pollack, senior fellow in the Center for Middle East Policy and Shadi Hamid, senior fellow in the Project on U.S. Relations with the Islamic World and author of "Islamic Exceptionalism: How the Struggle over Islam is Reshaping the World," discuss the current state of upheaval in the Middle East, the Arab Spring, and the political durability of Islamist movements in the region. They also explain their ideas on how and why the United States should change its approach to the Middle East and areas of potential improvement for U.S. foreign policy in the region. 

Show Notes

Fight or flight: America’s choice in the Middle East

Security and public order

Islamists on Islamism today

Temptations of Power: Islamists & Illiberal Democracy in a New Middle East

Ending the Middle East’s civil wars

A Rage for Order: The Middle East in turmoil, from Tahrir Square to ISIS

Building a better Syrian opposition army: How and why

With thanks to audio engineer and producer Zack Kulzer, Mark Hoelscher, Carisa Nietsche, Sara Abdel-Rahim, Eric Abalahin, Fred Dews and Richard Fawal.

Subscribe to the Intersections on iTunes, and send feedback email to intersections@brookings.edu.

Authors

Image Source: © Stringer . / Reuters
         




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Poll shows American views on Muslims and the Middle East are deeply polarized

A recent public opinion survey conducted by Brookings non-resident senior fellow Shibley Telhami sparked headlines focused on its conclusion that American views of Muslims and Islam have become favorable. However, the survey offered another important finding that is particularly relevant in this political season: evidence that the cleavages between supporters of Hillary Clinton and Donald Trump, respectively, on Muslims, Islam, and the Israeli-Palestinians peace process are much deeper than on most other issues.

      
 
 




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The Iran nuclear deal: Prelude to proliferation in the Middle East?

Robert Einhorn and Richard Nephew analyze the impact of the Iran deal on prospects for nuclear proliferation in the Middle East in their new monograph.

      
 
 




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What the U.S. can do to guard against a proliferation cascade in the Middle East

When Iran and the P5+1 signed a deal over Tehran’s nuclear program last July, members of Congress, Middle East analysts, and Arab Gulf governments all warned that the agreement would prompt Iran’s rivals in the region to race for the bomb. The likelihood of a proliferation cascade in the Middle East is fairly low, but not zero. Given that, here are steps that leaders in Washington should take to head off that possibility.

      
 
 




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Beyond Sectarianism: The New Middle East Cold War


From Syria and Iraq to Libya and Yemen, the Middle East is once again rife with conflict. Much of the fighting is along sectarian lines, but can it really be explained simply as a “Sunni versus Shia” battle? What explains this upsurge in violence across the region? And what role can or should the United States play?

In a new Analysis Paper, F. Gregory Gause, III frames Middle East politics in terms of a new, regional cold war in which Iran and Saudi Arabia compete for power and influence. Rather than stemming from sectarian rivalry, this new Middle East cold war results from the weakening of Arab states and the creation of domestic political vacuums into which local actors invite external support.

Read "Beyond Sectarianism: The New Middle East Cold War"

Gause contends that military power is not as useful in the regional competition as transnational ideological and political connections that resonate with key domestic players. The best way to defuse the conflicts, he argues, is to reconstruct stable political orders that can limit external meddling.

Noting the limits in U.S. capacity to do so, Gause recommends that the United States take a modest approach focused on supporting the states that actually govern, acting multilaterally, and remembering that core U.S. interests have yet to be directly threatened.

Read the full paper in English or Arabic.

Downloads

Publication: Brookings Doha Center
Image Source: © Stringer Iran / Reuters
     
 
 




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Embracing interdependence: the dynamics of China and the Middle East


In 2013, China surpassed the European Union to become the Middle East and North Africa (MENA) region’s largest trading partner, and Chinese oil imports from the region rival those of the United States. Do China’s growing interests in the Middle East imply a greater commitment to the region’s security? How can China and regional governments reinforce these ties through greater diplomatic engagement?

In a new Policy Briefing, Chaoling Feng addresses the key choices facing Chinese and Middle East policymakers. She finds that China’s continued reliance on a framework of “non-intervention” is being challenged by the region’s divisive conflicts. Indeed, China’s economic interests face mounting risks when even maintaining “neutrality” can be perceived as taking a side. Furthermore, China’s case-by-case, bilateral engagement with MENA countries has hindered efforts to develop a broader diplomatic approach to the region.

Read "Embracing Interdependence: The Dynamics of China and the Middle East"

Feng argues that China and particularly the GCC states must work to further institutionalize their growing economic interdependence. China, drawing on its experiences in Africa and Latin America, should take a more holistic approach to engagement with the MENA region, while enhancing Chinese institutions for energy trading. GCC countries, for their part, should aim to facilitate bilateral investments in energy production and support China’s plans for Central and West Asian infrastructure development projects.

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  • Chaoling Feng
Publication: The Brookings Doha Center
Image Source: © POOL New / Reuters
      
 
 




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Dealing with Delhi: How culture shapes India’s Middle East policy


Indian Prime Minister Narendra Modi’s recent visit to the United Arab Emirates revealed New Delhi’s intention to bolster bilateral relations with the Gulf states. It was the first visit by an Indian prime minister in over 30 years, demonstrating the country’s renewed focus on expanding ties with the region it has always called “West Asia.” Although India and the Middle East share a long history of trade, immigration and cultural exchange, relations have yet to reach their full potential.

Read "Dealing with Delhi: How culture shapes India’s Middle East policy"

In this policy briefing, Kadira Pethiyagoda highlights the importance of an under-reported aspect of the relationship – culture. The author explains the role it plays in India’s policies toward the region, particularly under the current government, and argues that Gulf states need to understand the impact of Indian values and identity. Pethiyagoda provides recommendations on how the Gulf states can, through better understanding the cultural drivers of Indian foreign policy, build stronger ties with India, thereby advancing both economic and strategic interests.

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Publication: Brookings Doha Center
Image Source: © Adnan Abidi / Reuters
      
 
 




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Risky routes: Energy transit in the Middle East


In 2011, Libya’s revolution knocked most of its oil production offline for months, resulting in a loss of nearly 2 percent of global production and a corresponding increase in oil prices. The security of energy exports and energy transit from the Middle East and North Africa (MENA) region, given its paramount importance to the global economy, has long been a concern. The current, very unsettled political situation in the region has made that concern even more salient.

Read "Risky Routes: Energy Transit in the Middle East"

In a new Brookings Doha Center Analysis Paper, Robin Mills identifies the key points of vulnerability in MENA energy supply and transit, including the pivotal Strait of Hormuz and a number of important pipelines. Mills also assesses the impact of possible disruptions on both the global economy and MENA states themselves.

Mills argues that to mitigate such disruptions, infrastructural, institutional, and market approaches must be used together. Mills highlights the need for improved assessments of the viability of various infrastructure projects and calls for the development of regional institutional arrangements that can better manage transit crises as they arise.

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Publication: Brookings Doha Center
Image Source: © Ismail Zetouni / Reuters
      
 
 




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The US and the Middle East: What Americans think

The debate over U.S. withdrawal from Syria and the “endless wars” of the Middle East today splits American policymakers and the public, transecting party lines. Eighteen years after the events of September 2001, American sentiment on events in the Middle East has shifted significantly. On October 22, Shibley Telhami, nonresident senior fellow at Brookings and the Anwar…

       




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Trump’s Middle East plan: What does America stand for?

As the Trump administration finally released its long-touted Middle East plan, it orchestrated selective briefings to minimize early criticism and to set a tone of acceptance — including limited, controlled briefings of diplomats and congressional leaders. The result initially muted opposition, allowing administration officials to claim widespread support, and paint the Palestinians as isolated in…

       




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The Middle East unraveling

       




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Trump’s reckless Middle East policy has brought the US to the brink of war

The U.S. drone strike that killed Maj. Gen. Qassem Soleimani, the long-time leader of Iran’s paramilitary Quds Force of the Islamic Republican Guard Corps, comes when the United States is at a dangerous crossroads in the Middle East. Soleimani was responsible for many of Iran’s most important relationships, including with paramilitary groups in Iraq, the Lebanese militant group…

       




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Why the underlying drivers of change in the Middle East haven’t changed


Editors’ Note: In a recent interview with Foreign Policy Interrupted, Tamara Wittes was asked about how the situation in the Middle East has changed since she published her 2008 book Freedom’s Unsteady March. Five years after the Arab uprisings and the start of the Syrian civil war, and a year and a half after the Islamic State captured Mosul (along with the world’s attention), Tamara says that many of the same fundamental dynamics in the Middle East are still at work.

The situation in the region has changed so dramatically since then, but I think that the fundamental insights that informed that book remain true. The underlying drivers of change in the Middle East are still there in terms of the demographic drivers, the economic drivers, the technological drivers that I described in the book; they are all still present.

Although there’s a lot of disorder and a lot of violence, and that leads people on the ground to prioritize security and to search for security in different ways, that doesn’t mean that they’re going to be satisfied. It doesn’t mean that the, “well, at least it’s not ISIS” line is going to suffice for governments in the Middle East for very long.

The underlying drivers of change are still present, the pressure for change is still present, and a lot of those pressures are about the simple fact of individual empowerment. Expectations shifted, and people, individuals, have the ability to act in ways that they didn’t before. States and governments have to accommodate that. It’s affecting politics all over the world, and the Middle East is not immune.

So the question becomes: how are governments going to learn to accommodate that and turn it into a strength? I think that the United States does have a really important role to play there. There were mistakes that the Bush administration made—setting aside his vision of Iraq, which has of course been very thoroughly discussed and assessed. But even in terms of non-military intervention to try to advance reform, the critique I made in the book is that the Bush administration was overly focused on political process and elections in particular. I think that one of the other lessons that has come of recent years is that the United States and other Western countries get very focused on political institutions and think, well, if we set up a judicial system, and we set up a parliament, and a constitution, then the gears in the machine sort of start to turn, the states start to function. Look at the rebuilding efforts in Afghanistan, for example.

But what we see in the Middle East today is that formal institutions aren’t enough. People have to have trust in the institutions, and people and communities have to have sufficient agreement on the basic rules of the game to make those institutions legitimate and authoritative. And that’s what’s missing in a lot of places around the region right now, that there isn’t enough dialogue and debate and ultimately negotiated agreement on the basic rules of the game. So I think that the challenge for the United States and others who care about stability in the Middle East going forward is how to help cultivate platforms for that kind of dialogue, and how to help cultivate the skills and the mechanisms for resolving very fundamental questions about how government should be organized and what should be the role of religion and politics, and what’s the balance between individual rights and collective identity.

These are big, big, questions, and right now, in too many places, they are being fought over violently. But the questions still have to be answered, and so the challenge is helping develop ways to do that, to do it peacefully.

      
 
 




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Orlando, the Middle East, and the U.S. election


Event Information

July 11, 2016
2:00 PM - 3:30 PM EDT

Falk Auditorium
Brookings Institution
1775 Massachusetts Avenue NW
Washington, DC 20036

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With the violence in the Middle East continuing, and further attacks on American soil in the name of Islam, the election campaigns have paid significant attention to policy issues related to the Middle East. But as both Republicans and Democrats prepare for their national conventions, how do Americans prioritize Middle East issues compared with other global priorities? Have public attitudes shifted in light of recent ISIS-inspired attacks overseas and at home and in response to heated campaign rhetoric? If so, in what direction?

On July 11, Brookings launched two new public opinion surveys focusing on American attitudes towards the Middle East, conducted by Nonresident Senior Fellow Shibley Telhami: One was conducted just two weeks before the Orlando shooting, the other taken two weeks after—thus providing an opportunity to evaluate any shift in public attitudes. In addition, some of the same questions were asked in Telhami’s polls the previous two years, thus providing a further opportunity to evaluate trends. One of the polls also includes a significant oversample of millennials (18-34) for further demographic analysis.

Telhami was joined in discussion by William Galston, the Ezra K. Zilkha Chair in Governance Studies at Brookings. Tamara Cofman Wittes, senior fellow and director of the Center for Middle East Policy at Brookings, provided introductory remarks and moderated the discussion.

Join the conversation on Twitter using #AfterOrlando

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Social Entrepreneurship in the Middle East: Advancing Youth Innovation and Development through Better Policies

On April 28, the Middle East Youth Initiative and Silatech discussed a new report titled “Social Entrepreneurship in the Middle East: Toward Sustainable Development for the Next Generation.” The report is the first in-depth study of its kind addressing the state of social entrepreneurship and social investment in the Middle East and its potential for the…

       




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The Great Powers in the New Middle East

Editor's note: The Iraqi war’s polarization of the region, Islamic extremism, and the Arab Spring each affected the character of the Middle East and the terms by which the great powers could engage with it. John McLaughlin writes that China, Russia, and the United States each have political and economic objectives there, some of which…

      
 
 




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American attitudes on refugees from the Middle East


Event Information

June 13, 2016
2:00 PM - 3:30 PM EDT

The Brookings Institution
Falk Auditorium
1775 Massachusetts Ave., N.W.
Washington, DC 20036

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On June 13, Brookings launched a new public opinion survey focusing on American attitudes toward refugees from the Middle East and from Syria in particular.



With violence in the Middle East and the associated refugee crisis continuing unabated, these issues remain prominent in Washington policy debates. It is therefore increasingly important for U.S. policymakers, political candidates, and voters to understand the American public’s attitudes toward the conflicts in the Middle East and the refugees fleeing those crises.

On June 13, Brookings launched a new public opinion survey focusing on American attitudes toward refugees from the Middle East and from Syria in particular. Conducted by Nonresident Senior Fellow Shibley Telhami, the poll looks at a range of questions, from whether Americans feel the United States has a moral obligation to take in refugees to whether these refugees pose a threat to national security. The national poll takes into account an expanded set of demographic variables and includes an over-sized sample of millennials.  

Telhami was joined in discussion by POLITICO Magazine and Boston Globe contributor Indira Lakshmanan. William McCants, senior fellow and director of the Project on U.S. Relations with the Islamic World at Brookings, provided introductory remarks and moderated the discussion.

This event launched the Brookings Refugees Forum, which will take place on June 14 and 15.

Join the conversation on Twitter using #RefugeeCrisis.


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Brookings experts on the implications of COVID-19 for the Middle East and North Africa

The novel coronavirus was first identified in January 2020, having caused people to become ill in Wuhan, China. Since then, it has rapidly spread across the world, causing widespread fear and uncertainty. At the time of writing, close to 500,000 cases and 20,000 deaths had been confirmed globally; these numbers continue to rise at an…

       




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Poll shows American views on Muslims and the Middle East are deeply polarized

A recent public opinion survey conducted by Brookings non-resident senior fellow Shibley Telhami sparked headlines focused on its conclusion that American views of Muslims and Islam have become favorable. However, the survey offered another important finding that is particularly relevant in this political season: evidence that the cleavages between supporters of Hillary Clinton and Donald Trump, respectively, on Muslims, Islam, and the Israeli-Palestinians peace process are much deeper than on most other issues.

      
 
 




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The Islamic State threat to the Middle East

Politicians and analysts in Europe and the United States understandably focus on the threat the Islamic State poses to the West, and the debate is fierce over whether the group’s recent attacks are a desperate gasp of a declining organization or proof of its growing menace. Such a focus, however, obscures the far greater threat […]

      
 
 




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Around the halls: Brookings experts on the Middle East react to the White House’s peace plan

On January 28 at the White House, President Trump unveiled his plan for Middle East peace alongside Israeli Prime Minister Benjanim Netanyahu. Below, Brookings experts on the peace process and the region more broadly offer their initial takes on the announcement. Natan Sachs (@natansachs), Director of the Center for Middle East Policy: This is a…

       




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Restoring the Balance: A Middle East Strategy for the Next President

When President-elect Barack Obama assumes office in January, he will face a series of critical, complex and interrelated challenges in the Middle East. Each of these issues demands immediate attention: the ongoing war in Iraq; Iran’s regional and nuclear aspirations; the faltering Israeli-Palestinian peace process; and weak governments in Lebanon and Palestine.Recognizing the critical nature…

       




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Managing Nuclear Proliferation in the Middle East

This paper appears as chapter 4 of Restoring the Balance: A Middle East Strategy for the Next President. See the book overview and executive summaries for information on other chapters. EXECUTIVE SUMMARY CURRENT U.S. EFFORTS to stop Iran’s nuclear program have failed. Fortunately, however, because of technical limits, Iran appears to be two to three years…

       




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Middle Eastern Artists Eye Environmental Threats

With water shortages and air pollution posing increasingly grave threats to the Middle East, artists in the region are working to make environmental issues more visible, both at home and in international




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Would you do an 18-day Mystery Trip through the Middle East?

Intrepid Travel's latest offering is an uncharted journey that starts in Tehran and ends in Istanbul.




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Arabian 'Unicorn' Back from the Brink in Middle East Thanks to Captive Breeding Program Success

A bright white antelope with long thin horns, the Arabian oryx is thought to have inspired early stories of unicorns. (Its two horns appear as one when viewed from the side.) And until




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The TH Interview: Gidon Bromberg, Friends of the Earth - Middle East (Part One)

Bromberg, then a young lawyer working for an environmental NGO in Tel Aviv, was frustrated that environmental issues were not