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    RETHINKING THE ARABSPRING

    STABILITY AND SECURITY IN

    EGYPT, LIBYA, TUNISIA, AND THE

    REST OF THE MENA REGION

    By Anthony Cordesman

    November 8, 2011

    Anthony H. CordesmanArleigh A. Burke Chair in Strategy

    [email protected]

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    No one can ignore the short-term problems the political upheavals in Egypt, Libya, and

    Tunisia create for each country. New leaders must be chosen and security systems must

    be changed. The problems involved can kill political, economic and demographic reformsbefore they even begin. There is a serious danger, however, in focusing on short term

    needs and failing to focus on the depth of the problems that Egypt, Libya, Tunisia, andvirtually every other Middle Eastern and North African state now faces.

    Experts can debate just how much the structural problems in each state led to the current

    round of political unrest and upheavals, but there is no debate over the fact that only afew oil-rich states with tiny native populations are free from massive problems in dealing

    with population growth, youth unemployment, failed or weak governance, and security

    structures that do as much to repress as to protect. These are problems both the Arab

    world and outside analysts have tended to downplay and neglect, but they are so seriousthat no advances in democracy and human rights can offer most MENA countries either

    security or stability. Even the best election, and major reforms of national security

    structures, will be a prelude to a new round of political upheaval unless these forces aregiven fare more consideration that they have been given to date.

    The Impact of Demographics and Low Economic Growth

    Both Muslim and Western states have ceased to focus on population growth for differing

    religious and political reasons. As the detailed numbers for population growth in Figure

    One show, however, population growth has been truly explosive in virtually everyMENA state.

    It is true that population growth rates have been dropping, but they are dropping far more

    slowly than many predicted in the past, and populations that have grow 4 to 6 times since1950 will generally double again by 2050. They will do so in nations that have far more

    restrictions in terms of water and arable land than most states in the world, and where the

    policies of past regimes have often kept economic growth and diversification far belowthe rates of progress in Asia and Latin America.

    Governments have failed both to create the social and political conditions that will reducepopulation growth and deal with the growth that has already occurred. As Figure Twoshows, the end result is a massive youth bulge that is pouring more and more young

    men and women into economies that cannot offer them productive jobs, or meaningful

    per capita incomes. This is as true of many oil-exporting states as it is of oil poor states.

    Even if one ignores the corruption, cronyism, and nepotism that has sharply increased the

    gap between rich and poor in most MENA states, and that has lowered the status and

    security of much of the middle class, Figure Three shows just how low the CIA WorldFactbook ranks the average per capita income of far too many MENA states. It is striking

    to see just how poor Algeria, Iraq, and Iran now are largely because of history of

    internal conflict, terrible economic policies, and gross over dependence on the petroleumsector.

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    Many other states, however, have per capita incomes ranking below 100 a rough

    indication of serious overall poverty in todays global economy. This is often disguised

    by the growth of modern urban areas, but it is all too real in practice. While there is nodirect correlation between poverty and political unrest, it is all too clear even from these

    numbers why so many Arabs and Iranians could regard their governments as havingfailed them.

    These data, however, only hint at how much sharper the disparities between the richest

    and poorest MENA states have become. (A sparsely populated Libya with major oilwealth still had a poverty rate of some 30% of its population before the current political

    upheavals began. Models that focus on GNP growth or on per capita income without

    addressing income distribution are little more than political and economic rubbish.)

    These basic economic pressures interact with hyperurbanization throughout the region

    which has forced radical shifts in tribal, ethnic, sectarian and social structures in every

    state (Saudi Arabia has gone from 8% urbanization in 1950 to over 80% today).Traditional elements have sometimes adapted, but traditional societies of the kind that

    existed before 1950s have virtually vanished.

    No Arab or Persian cleric, leader, regime, or political party that keeps ignoring theserealities can serve a given nations people or create the groundwork for political stability.

    Political change in Egypt, Libya, and Tunisia as is the case with states that so far have

    been more stablewill fail, or will make the future even worse if it does not face theneed for major improvements in the economy, infrastructure, education, and governance

    that can deal with these pressures. No amount of progress in democracy or human rights

    can succeed unless these issues are addressed as well.

    The Issues MENA Governments Must Now Address

    It is dangerous to generalize too much in addressing the challenges MENA governmentmust now address. They do differ sharply by country, and polling data in the Arab

    Development Report for 2009, as well as in polls that have never had public distribution,

    show very different priorities and perceptions in given countries, and within given ethnic,sectarian, tribal, and income groups in the same country. Once again, there is no

    consistent correlation between public perceptions and potential political unrest, and any

    given factor or metric.

    There are, however, a list of factors that every country must consider, and that do emerge

    as proven or potential causes of unrestmany driven by the combination of demographic

    and economic pressures summarized earlier. These factors along with measures to

    address population growth and a youth bulge that must continue for at least anotherdecade, have become a virtual check list of the measures that MENA governments must

    address to avoid future unrest, failed states and governments:

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    Middle Class status, income distribution, poverty line, perceptions of socialequity: Demonstration after demonstration has made it clear that perceptions

    of economic status and future opportunity are as critical as baseline metrics.

    Traditional metrics like national per capita income, GDP growth, and povertylines set near the subsistence level do not measure potential or real unrest.

    Employment and job quality: The issue is not simply employment, it iswhether the job is real, has status, provides the ability to marry and have a

    family, and is seen as offered on the basis of merit for those outside a

    privileged elite. Job creation alone will not address the causes of unrest.

    Education: Governments differ radically in investment in education,educational quality, and the relevance of education. Some countries provide

    limited access. Others create low-quality higher education that is little more

    than a series of diploma mills. Where employment rates are low, education

    often does not create meaningful or reliable skills.

    Role of women: Women now make up a majority of secondary school and

    university graduates in countries like Saudi Arabia but lag badly in bothemployment rates and real jobs with serious productivity gain. This wastes a

    critical part of the labor force, raises population growth, and puts a heavierburden on young men and their families to finance marriage and careers. The

    human right issue is only part of the story, and discrimination penalizes men

    as well as women.

    Services and utilities: Countries differ sharply in providing services sometimes grossly distorting demand and their economies through mixes ofsubsidies and free services. Electricity, water, fuel prices, medical services,

    and housing all present serious mixes of problems in many MENA countries.

    The scale of these problems is often disguised by ignoring how well and howfairly government funded efforts are distributed and the quality of distributionof services. Gross measures of total national effort e.g. total power

    generation or access to medical services are worse than useless: they are

    sharply misleading.

    Foreign labor: Many Gulf countries, and Libya have far too muchdependence on foreign labor, often as a result of government policies that

    favor low cost foreign labor and distort the domestic labor market. These

    problems continue to grow in most such states, in spite of policies that claim

    to favor local labor, and are a source of serious corruption in terms of theruling elites manipulation of foreign labor permits for its own advantage in at

    least one Gulf state.

    Hyperurbanization: Showpiece buildings can disguise a lack of properhousing, urban services, and commuting capability. The quality of urban life

    is a serious problem.

    State sectors and employment: The failure to create effective private sectorsand market systems, gross over-employment in the state sector, reliance on

    inefficient state industries, and lack of effective and implemented economic

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    planning often make governments a de facto burden or threat to their own

    economy as well as job creation and economic equity.

    Agriculture: Sharp rises in population pressure, and sometimes limits to water,increase land density or drive people out of agricultural areas. A lack of

    capital and modern farming techniques adds to the problem. Most countries

    lack effective government planning and services for the agricultural sector,and government actions and incentives often distort agriculture in ways that

    lower productivity and income.

    Military spending: Governments often spend far too much on their militaryforces, and particularly new military equipment of uncertain mission value

    and sustainability, when funds are badly needed in the civil sector.

    Security services, national security courts, and emergency laws: Thelegitimate struggle with terrorism and extremism affects some countries, but

    far too many have steadily increase the internal security role of their military

    forces, and increased the size of their security and paramilitary/police forces

    to secure the regime. Special national security courts and legal procedures areabused, along with open-ended national emergency laws (some of which are

    de facto rather that formal legal actions). Access to lawyers, abuses ofdetention, closed trial procedures, and inability to locate prisoners and learn

    their status are all problems in the more repressive MENA states.

    Rule of law: Quite aside from the internal security issues, there are serious

    abuses of property, criminal, business, and other civil law. Corruption in thecourts and legal system is a key problem, along with delays in procedures,cost, and access to police and legal systems than function without corruption

    or special charges. These affect economic as well as personal security.

    Corruption: A rough measure of corruption is shown in Figure Four.Corruption, however, is seen in terms of special privilege, unfair incomedistribution, nepotism, and a lack of social equity and not simply corruption in

    the narrow sense of the term. It is often coupled to poor governance, grossly

    over-staffed government offices, small fees and bribes, and delays or failures

    by bureaucracies to perform their jobs. It has become a top to bottom sourceof unrest or anger.

    Failed censorship and impact of alternative media and communications:Many countries still attempt to control or limit media, use of the Internet,

    access to satellite TV, etc. The end result is increasingly to drive populations

    to rely on illegal or alternative media and social networking systems. Thisreinforces patterns of unrest and distrust of governments.

    Moving Forward

    None of these issues mean reforms like creating effective representative governments,

    rule of law, and human rights are less important. These reforms, however, are only part of

    the reforms necessary to bring stability and security. MENA states must act as quickly as

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    possible to address all of the previous issues as well. Elections alone will serve little

    purpose, particularly if inexperience and self-serving new political parties end up

    endlessly feuding, the quality of governance remains low, corruption and inequity

    continue to affect daily life, and economic progress only benefits the limited portion ofthe population favored by the state.

    This presents serious problems for both new governments that must build on a legacy ofdecades of failure and incompetence, that lack experience political parties that know how

    to work with their opposition, that have leaders who have never really governed, and that

    must work with bureaucracies, militaries, and internal security services that lackcompetence and often integrity and basic capacity. The better and more stable

    governments will have far fewer problems in basic institution building, but still face

    daunting challenges out of sheer population pressure.

    One key suggestion is that the wealthier Arab states work with the poorer states to create

    the equivalent of an Arab Marshall Plan. As has been shown earlier, however, the wealth

    of the oil states is relative and even nations like Saudi Arabia need to focus on the needsof their own people. The wealth of the smaller and wealthier oil states is also limited

    relative to the needs of the larger of more highly populated MENA states.

    Moreover, it is the quality of governance that will be the key issue. Aid is pointless if itexceeds the capacity to use it effectively, and destructive and corrupting if it is misused.

    In practice, this means each Arab state needs to reexamine its own structure, the forces

    affecting its future, and develop plans and improved institutions to both use its ownresources and outside aid more effectively.

    In practice, it may well take a decade or more to make the necessary changes and

    implement them in ways that meeting popular expectations. Certainly, as has been clearin Iraq, elections alone do not produce either effective representative government or

    address the key issues shaping the future of the MENA region.

    This also requires:

    The creation of effective governance and a civil service with adequate capacity,efficiency, and integrity.

    Adequate urban, local, and regional governance that meets sectarian, ethnic, andtribal needs; rather than the current degree of over-centralization.

    Political partiers capable of addressing key issues with honesty and transparency,willing to work with their opposition, and experience in actually governing.

    Acceptance of checks and balances to limit the role of the state and preservehuman rights.

    An effective and honest rule of law based on social justice, and one that can checkleaders that seek to abuse their power.

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    Security services that respect human rights as well as provide security.

    Militaries sized to meet real nation security needs, not pointless regional rivalriesand competing in glitter-factor military purchases.

    Effective economic planning that frees market forces while protecting the people

    and creating real jobs and economic diversification.Restructuring of government services to reflect popular needs and priorities, and

    effective planning and expansion of education, health, and key government

    services.

    Educational reform to create job-oriented skills and competitive teaching andeducational standards on a global basis.

    Major anti-corruption efforts coupled to dealing with nepotism and specialprivileges. Use of the tax structure to limit gross problems in income distribution.

    Effective efforts to address population growth.

    Policies that give women equity and a productive role in the labor force.

    Actions by the government and media to provide full transparency, and look beyond elections to use polling, focus groups, public meetings, and other

    mechanism to find out the priorities of their population, their perceptions of

    governance, and deal with sectarian, ethnic, tribal and regional tensions andgrievances.

    Above all, it requires the kind of leadership and honesty that can explain that most of the

    expectations that have led to the most violent upheavals in the Arab Spring will take a

    decade or so to fully address, that even an Arab Marshal Plan will have serious limits in

    terms of outside aid and spending, and that no one can (or should) help a MENA statethat cannot help itself.

    No MENA nation is going to be able to address even its most serious problems quicklyand easily, any more than the US can. Managing expectations is going to be a critical

    challenge for years to comeparticularly given the fact there is a nearly two-decade long

    bow wave of new workers that are already born and still have to enter the labor force. Itwill be al too easy for new (and old) governments to fail, and be replaced by a new set of

    authoritarians, demagogues, failed governments, or extremists. The promise of the Arab

    spring is going to be anything but easy to keep.

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    Figure One: The Population Explosion in the Middle East

    North Africa (In Millions)

    Levant (In Millions)

    1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

    Algeria 8.893 10.909 13.932 18.806 25.089 30.429 34.586 38.594 41.641 43.425 44.163

    Morocco 9.343 12.4 23 15.9 09 19.4 87 24 28.11 3 31.6 27 34.9 56 37.887 40.267 42.0 26

    Libya 0.961 1.338 1.999 3.069 4.146 5.125 6.461 7.759 8.901 9.981 10.872

    Tunisia 3.517 4.149 5.099 6.443 8.207 9.508 10.525 11.494 12.086 12.284 12.18

    0

    5

    10

    15

    20

    25

    30

    35

    40

    4550

    1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

    Egypt 21.198 26.847 33.574 42.634 54.907 65.159 80.472 96.26 111.057 125.242 137.873

    Israel 1.286 2.141 2.903 3.737 4.478 6.115 7.354 8.479 9.459 10.28 10.828Jordan 0.561 0.849 1.503 2.163 3.267 4.688 6.407 7.278 8.611 9.954 11.243

    Lebanon 1.364 1.786 2.383 2.899 3.44 3.791 4.125 4.243 4.335 4.298 4.155

    Syria 3.495 4.533 6.258 8.752 12.5 16.471 22.198 24.744 28.224 31.257 33.658

    0

    20

    40

    60

    80

    100

    120140

    160

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    Figure One: The Population Explosion in the Middle East (Part Two)

    The Gulf (In Millions)

    Source: U.S. Census Bureau: International Database,http://www.census.gov/ipc/www/idb/informationGateway.php, accessed21/4/2011

    1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

    Bahrain 0.115 0.157 0.22 0.348 0.506 0.655 1.18 1.505 1.639 1.758 1.847

    Kuwait 0.145 0.292 0.748 1.37 2.131 1.972 2.543 2.994 3.331 3.623 3.863Iran 16.367 21.6 28.994 39.709 58.1 68.632 76.923 86.543 93.458 97.685 100.045

    Iraq 5.163 6.822 9.414 13.233 18.14 22.679 29.672 36.889 43.831 50.459 56.316

    Oman 0.489 0.601 0.783 1.185 1.794 2.432 2.968 3.635 4.305 4.879 5.402

    Qatar 0.025 0.046 0.115 0.237 0.446 0.627 0.841 0.905 0.971 1.04 1.116

    Saudi Arabia 3.86 4.718 6.109 10.022 16.061 21.312 25.732 29.819 33.825 37.25 40.251

    UAE 0.715 0.103 0.249 1 1.826 3.219 4.976 6.495 7.484 7.948 8.019

    Yemen 4.777 5.872 7.098 9.133 12.416 17.407 23.495 29.727 35.473 40.901 45.781

    0

    20

    40

    60

    80

    100

    120

    http://www.census.gov/ipc/www/idb/informationGateway.phphttp://www.census.gov/ipc/www/idb/informationGateway.phphttp://www.census.gov/ipc/www/idb/informationGateway.phphttp://www.census.gov/ipc/www/idb/informationGateway.php
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    Figure Two: The Impact of the Youth Bulge in the MENA Region

    Percent of total Population of 0 to 14 Years

    CIA World Factbook, 2011

    Young People Entering the Labor Force Each Year and Impact on total Labor Force

    CIA World Factbook, 2011

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    50

    QatarBahrai

    n

    Kuwai

    tUAE Oman

    Leban

    onLibya Jordan

    Tunisi

    aSyria

    Saudi

    Arabia

    Yeme

    n

    Moroc

    coIraq

    Algeri

    aI ran Eg yp t

    Women Entering Labor Force Annually 5,162 8,117 16,232 24,419 30,264 35,121 57,070 69,420 87,346244,712244,763277,612298,366322,010330,098677,372748,647

    Men Entering Labor Force Annually 6,429 8,988 17,653 27,439 31,959 36,856 59,547 73,574 90,436256,698261,105287,141300,327332,194342,895715,111783,405

    New Women as a % of the Total Existing Labor Force 0.41% 1.33% 0.75% 0.62% 3.12% 1.42% 3.30% 4.04% 2.28% 4.43% 3.34% 4.06% 2.57% 3.79% 3.34% 2.64% 2.87%

    New Men as a % of the Total Existing Labor Force 0.51% 1.47% 0.82% 0.70% 3.30% 1.49% 3.44% 4.28% 2.36% 4.64% 3.56% 4.20% 2.58% 3.91% 3.47% 2.78% 3.00%

    0

    200,000

    400,000

    600,000

    800,000

    1,000,000

    1,200,000

    1,400,000

    1,600,000

    1,800,000

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    Figure Two: The Impact of the Youth Bulge in the MENA Region (Part Two)

    Unemployment Rate Among Arab Youth

    Youth Unemployment as Percent of Total Unemployment

    MENA Youth Unemployment vs. Other Regions

    Levels of Unemployment Ignore Disguised Unemployment and Government and Private Sector Jobs With No Productive or Useful Output, and predate Arab unrest (2008-2009)Source: Arab Development Report, 2009, p. 109, and IMF, World Economic and Financial Surveys, Regional Economic Outlook, Middle East and Central Asia , October 2010,p. 38

    MENA6

    Central and

    South-Eastern

    Europe(non- EU)

    and CIS

    Sub-SaharanAfrica

    Latin America

    and the

    Carribean

    Developed

    Economies and

    EU

    World

    South-East Asia

    and the

    Pacific

    South Asia

    East Asia

    5

    7

    9

    11

    13

    15

    17

    19

    21

    23

    4 6 8 10

    Youthunemployment(Percent)

    Total unemployment rate (Percent)

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    Figure Three: Global Rankling in Per Capita Income

    World Ranking Limits to Oil Wealth($ Per Capita in 2010)

    Maghreb

    Morocco 150

    Algeria 127

    Tunisia 113

    Libya 52 $6,837

    Levant

    Egypt 137

    Palestinian 169

    Israel 46

    Jordan 143

    Lebanon 81

    Syria 152

    Gulf

    Bahrain 54Iran 104 $1,085

    Iraq 159 $1,686

    Kuwait 10 $21,416

    Oman 54

    Qatar 1 $38,281

    Saudi Arabia 55 $7,685

    UAE 9 $13,508

    Yemen 172

    Source: CIA World Factbook, 2011 for per capita income ranking, DOE/EIA,http://www.eia.gov/countries/regions-topics.cfm?fips=OPEC for per capita oil exportrevenues

    http://www.eia.gov/countries/regions-topics.cfm?fips=OPEChttp://www.eia.gov/countries/regions-topics.cfm?fips=OPEChttp://www.eia.gov/countries/regions-topics.cfm?fips=OPEC
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    Figure Four: The Burden of Corruption

    Note: 1.0 = most corrupt; 10 = least corrupt Source: Transparency International, Corruptions Perceptions Index2010.Transparency International (TI) defines corruption as the abuse of entrusted power for private gain. This

    definition encompasses corrupt practices in both the public and private sectors. The Corruption Perceptions

    Index(CPI) ranks countries according to perception of corruption in the public sector. The CPI is an aggregate

    indicator that combines different sources of information about corruption, making it possible to compare

    countries.

    The 2010 CPI draws on different assessments and business opinion surveys carried out by independent and

    reputable institutions. It captures information about the administrative and political aspects of corruption.

    Broadly speaking, the surveys and assessments used to compile the index include questions relating to bribery

    of public officials, kickbacks in public procurement, embezzlement of public funds, and questions that probe the

    strength and effectiveness of public sector anti-corruption efforts.

    For a country or territory to be included in the index a minimum of three of the sources that TI uses must assess

    that country. Thus inclusion in the index depends solely on the availability of information.Perceptions are usedbecause corruption whether frequency or amount is to a great extent a hidden activity that is difficult tomeasure. Over time, perceptions have proved to be a reliable estimatePerceptions are used because corruption whether frequency or amount is to a great extent a hidden activity

    that is difficult to measure. Over time, perceptions have proved to be a reliable estimate of corruption.

    Measuring scandals, investigations or prosecutions, while offering non-perception data, reflect less on theprevalence of corruption in a country and more on other factors, such as freedom of the press or the efficiency of

    the judicial system. TI considers it of critical importance to measure both corruption and integrity, and to do so

    in the public and private sectors at global, national and local levels.2 The CPI is therefore one of many TI

    measurement tools that serve the fight against corruption

    Source: : Transparency International, Corruptions Perceptions Index 2010