Category: International Security

  • The end of the liberal world order is not the end of the world – we just need to fight for freedom AND equality

    The end of the liberal world order is not the end of the world – we just need to fight for freedom AND equality

    The turmoil concerning Brexit, the Rise of the „Rest” (the fast developing countries), dramatic social inequality, the exclusion of ever larger parts of the populace (the decline of the „Rest“, which is excluded from globalization), the rise of radical Salafism, all these developments have contributed to worldwide emotions, that the promises of globalization have been disappointed and been revealed as illusions. When Juergen Habermas, the noted German philosopher judged in 1991 concerning the democratic revolutions in the former states of the Warsaw treaty, that Western modernity would now transcend into the Orient not only with its technical achievements, but also with its emancipatory and democratic principles he was hardly more than the prisoner of the idealism concerning Western modernity. Although being fully aware of the negative impact of two world wars, colonization and its exorbitant violence, Auschwitz and the Cold War, and fighting for his whole life against a repetition of these developments he still believed to be able to rely on a cleaned, purified Western modernity, an approach which his companions, Anthony Giddens and Ulrich Beck, labeled second modernity. Again, in the years starting with the Arab Rebellion or the Arab Spring it seemed as if the conceptions of democracy, human rights and freedom were transcending from the Western world to the Orient, and its final victory seemed to be plausible – a purified Western modernity would triumph in the end – and Francis Fukuyama wrote his second masterpiece by arguing that at the end of history still stands democracy. But now we are already discussing post-democracy and Paraq Khanna is labeling the current phase as devolution – struggles for a local or at least regional identity.

    The liberal world order after 1991 was based on capitalism (centered on property as natural and human right), the assumption that worldwide free trade will finally lead to peace (economic globalization) and is accompanied by the orientation towards consumerism as a cultural norm. But consume does neither generate values nor identity. International organizations served the purpose of regulating conflicts between sovereign states and the military, political and economic hegemony of the United States secured this kind of liberal world order, or rather the United States payed the costs (this is the point Trump hangs up), both, out of their own interest or as being the trustee of the whole. This liberal world order now is tattered in fragments, not least because the US under Trump abandoned it willfully, whereas the Europeans are desperately trying to preserve it but don’t stand a chance, because they are relying on an idealized past which never existed in the developing and poor countries.

    Contrary to the assumptions of the pundits of glo-calization (Robertson and Bauman), the local showed to be not only an amendment of neoliberal globalization, but a counter-movement to the process of globalization (IS, Trump, „Buy American“, Brexit, Marine Le Pen, Duterte, Bolsonaro, Salafism, the European radical right, populistic movements). In his notes on Nationalism, George Orwell already wrote, that emotion does not always attach itself to a nation. It can attach itself to a church or a class, or it may work in a merely negative sense, against something or other – we can add against anybody, who does not belong to “us”. In short: We against the Rest. But the “Rest” is not far away anymore, as in neoliberal globalization the regions in Sub-Saharan and Saharan Africa, in southern India, in the MENA-states, but they are within the West (either as excluded sub-proletarians, the precariat, or as refugees). Although being a counter-reaction, the current waves of struggles for local identities and advantages are as a negation bound to neo-liberal globalization, the globalization of liberalism without equality, which we label tribal globalization.

    The advent of tribal globalization does not signify the end of globalization, but the end into the illusions into globalization, which nevertheless has its undisputed successes. But there is no way back to an idealized globalization before Trump, Salafism, or an idealized neo-liberal world-order, because these developments were exactly the result of which they are purporting to fight. The exclusion of the „superfluous“, the „Rest“, produced by neo-liberal globalization, the advent of precarious kinds of life and the liquidity of identity throughout the world must be understood as a double one: The “Rest” is excluded from the positive aspects of globalization and people who are belonging to the  Rest are the arbitrarily used enemy-image to construct a fixed „We“-identity („We against the Rest”). And this “Rest” comprises roughly two third of the world’s populace. As the neo-liberal globalization has led to such a social acceleration of the transformation of the whole world,  people, communities and polities of all kinds are trying to cope with this process by re-inventing age-old static identities, which are so old, that it is supposed that these will outdo even this transformation. Such seemingly fixed identities are: Race, ethnicity, religion, patriarchy, and – perhaps the oldest one, sex and gender (this can explain the terrible rise of violence against women); and of course, identity through the exercise of violence itself, which is reverting the feeling of being totally powerless into being almighty. Especially biological differences are re-actualized, because they seem to be not subject to change.

    These seemingly fixed identities are those of the pluperfect, the far distant past, which can be viewed as being free from the failures of the simple past, and mainly free from the failure of the immediate fathers – as already was typically for the German Nazis. Tribal identity is a perfect construction, because it is transporting the ideal of being absolutely united against everybody who is not belonging – and the question: Do I belong is the most important question in tribal globalization. Whereas tribes throughout the world are vanishing, tribal thinking in terms of „We against the Rest“ is flourishing. Such a modern tribe could be based on ethnicity, religion, sex, nation or whatsoever, it is not the content, which characterizes a modern tribe, but having a tribal identity (typically is Trump’s crony capitalism and with relation to the IS, not their ideology is so much counting, but belonging to a previously powerful tribe). With the emergence of tribal globalization, the very understanding of local order and world order is at stake; order wars are arising, when our order or that of others is dissolving (either only in our perception or in reality); our own order is challenged by another concept or and another order is transgressing into our own (the refugee crisis in Europe). The fast developing countries are not immune concerning the accelerated transformation of societies and identities and the task to cope with this development.  As the main problem of neo-liberal globalization is the dissolution of identities and the exclusion of ever growing parts of the populace, that of the emerging tribal globalization the re-invention of age-old fixed identities, which is leading to order wars, what might be a solution?

    Based on the concept of the floating (Clausewitz) and developing (Hegel) balance and harmony (Confucius), we strongly advocate the position, that the West as well as the East is only able to hold on their order and values, if these are discursively balanced and harmonized by the contribution of all great civilizations of the earth. Although the liberal world had its undisputed advantages like the rise of the newly industrialized nations, the current developments are already indicating its end. To put it to the core: freedom as the basis of the liberal world order is turning into oppression or civil wars without equality– just in the name of freedom. Whereas in the 20th century the colonized civilizations had to learn to live with the victorious West, in the twenty-first century the civilizations of the earth finally have to learn to live with one another. This task requires a floating balance (Clausewitz) between freedom and equality, a kind of harmony (Confucius: difference with unity and unity with difference) within societies and between states.

    Image Credit: WikiImages from Pixabay

  • American Sanctions on Iran and the Underlying Oil War

    American Sanctions on Iran and the Underlying Oil War

    Adithya Subramoni                                                                                      June 24, 2019/Analysis

    In a shocking turn of events, America in 2018 announced its withdrawal from the Joint Comprehensive Plan of Action 2015. This came as a surprise to the international community for good reason, because subjecting Iran under harsh sanctions when they kept up their end of the bargain seemed like a punishment from the US for keeping up this good behaviour. President Donald Trump, calling towards the international community and specifically ‘like-minded countries’ for a team effort, said it was time to curb Iran’s state-sponsored terrorism. But his idea to get Iran to re-engage on this field was through the ‘maximum pressure campaign’. This strategy is unlikely to find takers owing to the fact that the nuclear issue and state sponsored terrorism are two completely different issues, and hence need to be dealt with separately. To charge Iran with state sponsored terrorism is completely misplaced. Iran has not caused any damage to US or its citizens in the last twenty five years. On the other hand terrorist acts affecting the US and its allies have almost always had a link to Sunni Islamic fundamentalism with its links to Saudi Arabian Wahabi organisations. The real motive is USA’s geopolitical targeting of Iran. Trump’s recent designation of the Iranian Islamic Revolutionary guard corps (IIRGC), a unit of the Iranian army, as a terrorist outfit defies all logic and may become counterproductive to the US interests, the very issue that Trump wants to safeguard.

    Iran’s support to Hamas is fundamentally a regional and geopolitical struggle with Israel, while the Sunni vs Shia conflict is a manifestation of the regional power struggle between Saudi Arabia and Iran. If the USA wanted to pressurise Iran on its support to militant outfits like Hamas, it should have ensured it has support of its allies and multilateral institutions. USA’s unilateral action on Iran does not have the support of other members of the P5 +1(Germany) as well as other oil-dependent countries. With the latest round of sanctions, countries with economies having exposure to Iranian trade industry are gearing up to take a major hit. This brings us back to the subject of concern, why take such hasty decisions impacting the global economy without consultations from other members of the P5 + 1?

    The exit strategy

    In 2018 shale oil catapulted America to the leading position amongst the oil producers. As companies in Texas adopted fracking technology to good use in optimising their oil production, America climbed up to the first position in the oil producers list, surpassing major oil producers such as Saudi Arabia,Russia, Iran and the UAE. Climbing up the oil ladder came at a cheaper price for America considering the OPEC countries, excluding Iran, and Russia had agreed to reduce their oil production to protect the free-falling price of oil. This gave America a free hand at capturing the oil market especially where the demand from emerging economies was increasing rapidly. The only barrier to becoming the largest oil exporter was qualms from the emerging economies and other countries who found the American alternative to be an extremely expensive replacement for their oil needs. With emerging economies deeply dependent on Middle Eastern oil sources, one of the options for America to increase the demand for its oil was by blocking Iran’s oil exports through sanctions. This could give multiple advantages to the US: one is to create economic pressure on Iran; second is to boost American oil exports by eliminating Iran’s oil supply from the market; and third is to strengthen its ally Saudi Arabia’s pursuit of regional domination by squeezing Iranian oil-based economy.

    America’s play on executing its exit and sanctions in such a speedy manner may be rooted in the fact that the major countries dependent on the Iranian oil are in the Asian continent. European countries such as France, Greece, Italy and Spain all combined import close to 500,000 barrels a day as opposed to China and India who import close to 600,000 barrels per day and 500,000 barrels per day respectively. With America limiting its oil imports primarily from Canada and Saudi Arabia, and the European Union sourcing two-thirds of its oil requirements from Russia and Saudi Arabia, American sanctions on Iran do not impact the energy requirements of the western power bloc significantly. Hence, it may have been an American expectation that other members in the JCPOA (P5+1) would support Trump administration’s move to scrap the JCPOA and resume the earlier hard line approach of sanctions on Iran. This, however, has not happened.

    Unfortunately for America, other members of the JCPOA did not see any justification in the logic and accusation given by the Trump administration and hence, there was no support forthcoming from them. Trump’s disdain for allies and his unilateral approach, virtually demanding complete acceptance from European allies bordered on disrespect and insult to the member countries’ sovereignty and pride. Reaction to Trumps position was one of disbelief and contempt, as his actions displayed, in their opinion, disregard and contempt for international norms and credibility. Quite clearly USA has sought to bulldoze its way through with utter disregard for international institutions and multilateralism, exploiting its domination of the global financial institutions, banking system, and the fact that the US dollar is still the world’s reserve currency.

    UK, France and Germany together set up Instex – Instrument in Support for Trade Exchanges, to facilitate the trade of medicines, medical devices and food supplies, which trades in Euro through a financial channel having zero exposure to the American financial intermediaries. This marked a milestone in the chapter of American supremacy, where its European allies took a stance against its imposing regime. Though the volume of trade is negligible, the all important European message is that it will not support the American unilateralism. In the absence of any European support, Trump administration should have recognised its folly of trying to impose its decision on its allies, but on the other hand it made it even worse by virtually threatening diplomatic ties with those countries. Others in the P5, such as China and Russia have agreed with the European counterparts to re-examine and review if necessary the terms of the 2015 JCPOA deal and look for ways to deflect and overcome the US sanctions. Iran too, has welcomed the idea and agreed to keep its end of the 2015 deal. Time however, is running out as Iran has demonstrated its loss of patience over the lack of progress on the issue, and has stated on more than one occasion, in the last six months, that it will recommence its nuclear fuel reprocessing and enrichment activities.

    Asian approach to the Iranian issue

    Asia is the largest customer of crude oil, importing 53% of the global total oil imports, translating to an approximate amount worth $628.2 billion. One major reason for this huge oil influx is the fact that Asia is home to the fastest developing economies such as China and India. Though China and India have maintained that they will continue to import oil from Iran, one issue that concerns all the countries importing Iranian oil is the availability of insurers willing to take up the risk for oil supply from Iran. Most insurers will be cautious to take up projects for fear of losing business and financial access in the West.

    With the ongoing trade war with America, China is fighting a dual war. For America, the opponent has been weighed down with two hurdles co-incidentally and conveniently. With the trade war impacting the export industry and sanctions on its oil supplier indirectly hitting the Chinese economy, China may chose well to hit back on America by disregarding the sanctions on Iran. Iran might just have earned itself a powerful ally because of American hegemony. Chinese imports of crude oil from Iran have surged to record levels in April and May. Iran is set to become China’s 2ndlargest supplier of crude oil.

    Steering the wheel of attention towards India, Iran is its third largest oil source. Particularly being an oil dependent emerging economy, the sanctions on Iran will force India to look at more expensive oil options. The six month credit line and insurance included price for Iranian oil made it the most lucrative oil supplier in the business. Another issue that has come to India’s doorstep is the longevity of the rupee account based trading system with Iran using the UCO Bank. UCO Bank being the only bank with no exposure to American financial channels is the only means for continued Iran-India trade relations. In light of the US sanctions, India reduced its oil imports to turn eligible for a sanction waiver. This sanction waiver came to an end on 02May 2019, and oil imports stopped owing to the election period as well. Now the primary concern for the new Indian government is to prioritise the Iran issue. Iran is accountable for thirty percent of India’s exports, and given that the rupee account is fuelled by the INR deposited in favour of oil imports from Iran, the systematic reduction of oil import also creates a proportional fall in demand for Indian exports, owing to the curb of Iran’s purchasing power. Since the end of the sanctions waiver, India has stopped import of Iranian oil, hopefully only as a temporary measure.

    At the same time, a diplomatic concern that arises for India is its interest over the Chabahar port. Chabahar Port is a major investment arena for India to create a transportation corridor connecting Asia as well as the land-locked Afghanistan with the rest of the world. Though India plans on disregarding the US Sanctions and continuing business through the UCO Bank and Iran’s Pasargad Bank, attention needs to be paid to resolve the reducing Iranian imports, not only to secure India’s exports but also to show Iran the commitment India has towards its diplomatic ties with them and its vested interest in operating the Chabahar Port. Going ahead with the possibility that China would disregard the sanctions on Iran, a reduction in Iranian imports could weaken Iran’s ties to India and pave the path to strengthen Iran-China ties. This would particularly be drastic for India, if Iran were to give China operational rights to the Chabahar port. Needless to say, this would bring in interference from Russia, who wouldn’t be thrilled with the loss of regional trade autonomy to China.

    Approaching the dénouement

    From a bird’s eye view, the rising conflicts in the West Asian region, with Saudi Arabia and the UAE being the main champions who support the efforts for a change in Iran’s regime, Iran finds itself in a cornered situation amongst its neighbours. If cornered, both strategically and economically, Iran could resort to using its strategic location to choke the Strait of Hormuz by planting sea mines or through any other obstruction mechanism. Though unlikely, as it would put Iran in a very hostile situation with rest of the world, it cannot be ruled out as an extreme last resort measure. This could create major international crisis. It would, as a start contribute to the run up in oil prices and owing to supply security – it is possible that USA stands to benefit immensely in such a crisis.

    On the other hand, by imposing sanctions on Iran, America has pushed India to an uneasy corner. Owing to regional ties, it plays to India’s strength to take care of her interests by dealing with Iran and securing operation of Chabahar port. On the other hand it is essential to keep India’s ties with America on an even keel. If it refuses to acknowledge India’s ground interests and resorts to the muscle power of sanctions, China may end up as the beneficiary with a fortuitous win with Chabahar port, leading to an ultimate strategic loss to India and the US.

    The situation calls for global introspection into imposing sanctions by a country due to its phenomenal control over the world’s financial channels and the domination of the USD international trade. But this round of sanctions just might be the one where countries figure out alternate solutions together; considering the European initiative of Instex, Asian methods such as the trade using rupee account, Russian and Chinese support towards Iran; to finding a more cooperative and equitable solution that enables the world to trade outside the control of America. The sanctions may have just provided the edge to catalyze the changing world order, but the question is who’ll sit on the throne of the high table when the rubble settles? Or will it be, as it seems more likely, a more cooperative and less competitive, multi-polar world order?

    Adithya Subramoni is interning at ‘The Peninsula Foundation’. She has a Bachelors degree in Commmerce  from Christ College, Bangalore.

    Photo Credit under a Creative Commons Attribution 4.0 International License.: english.khamenei.ir

  • Nuclear Stability in Asia and South Asia: the Dynamics of a Fragile Stability

    Nuclear Stability in Asia and South Asia: the Dynamics of a Fragile Stability

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    M. Matheswaran

    India-Pakistan-China relations determine South Asia’s strategic stability. Recent events and disputes have heightened regional tensions, and have drawn the world’s attention on the region’s potential for conflict. The fact that all three nuclear weapon states have long-standing border disputes has been used by the non-proliferation lobbies to consistently highlight South Asia as a nuclear flash point. The intractable Kashmir dispute continues to be cited as the potential trigger for any nuclear escalation. These concerns were brought to the fore as the world witnessed the two nuclear armed adversaries fight it out on the Himalayan heights of Kargil in May 1999. While India fought the war firmly, and displayed significant escalation control and management of international opinion, it must be acknowledged that both countries kept the conflict below the nuclear threshold, thus questioning the nuclear flash point theory.

     

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    *This article was published in Indian Foreign Affairs Journal – Apr-Jun 2018.