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Syrians’ flight from harm

by Nadim Houry July 3, 2011
written by Nadim Houry

 

We are on a mountain path, crossing from Turkey into northeastern Syria to meet some of the displaced camping near the border fence. The hike over the mountain is beautiful, with pine trees and a shimmering lake in the valley below, but the destination is far from serene. Around 10,000women, men and children have gathered on the Syrian side of the border within a stone’s throw of the fence, while more than 10,000 have already crossed into Turkey and are residing in well-cared-for but off-limits camps.

Syria has made it near impossible to reach people affected by the fierce crackdown, so refugees who flee to neighboring countries or areas not under the control of the Syrian security forces are the only witnesses to human rights violations we can meet with face-to-face. The residents of the makeshift camp are mostly from Jisr Al Shughur and other towns in the northern governorate of Idlib, the majority of whom have escaped since the Syrian army began military operations against their towns on June 10. Syrian officials have justified the attacks as a response to “armed gangs” and “terrorists” who have killed security forces. I am hoping the refugees can shed some light on the events.

We reach the camp shortly after President Bashar al-Assad has concluded his third public speech since protests erupted in mid-March. “Come back, the army will protect you,” he tells those who left for the border area and Turkey. But to the refugees huddled around the television, these words ring hollow. “He wants me to go back so they can kill me like they killed my brother,” a soft-spoken man in his mid-20s tells me. “I will only go back when Syria is free.”

Most of the camp residents have suffered at the hands of Syria’s security forces. Many have a brother or a cousin who was killed or detained in the past few weeks. In one tragic example, Bilal al-Masri tells me that security forces killed his father during the early 1980s and his brother three weeks ago. “Killed by the father [Hafez] and the son [Bashar],” he says. “I hope it stops here.” Others were injured and escaped for fear that the security forces would harm them if they remained in Syrian hospitals.

Syrians who were active in organizing protests or in filming them are afraid that the security forces will reserve for them the same fate two of their friends met. Anas Katrun and Bashir Abdo were detained on June 10 as they went to film the army’s entrance into the towns. They disappeared, only to appear on Syrian state television on June 19 looking haggard and confessing to being “terrorists.” Abdo’s brother, who is in the camp, can still barely talk about his brother without his voice quivering.

The testimonies we collected from those at the border confirm some of the worrying patterns we documented in other parts of Syria, particularly Daraa, near the southern border with Jordan. Here, as there, security forces have shot at and killed unarmed protesters, arbitrarily detained and tortured people — dozens are still missing — and restricted medical care to many of the wounded. One particularly bloody Friday occurred on May 20 when security forces shot at large protests in the Idlib cities of Maaret Al Numan and Mastoumi, killing at least 40 people and injuring hundreds more — a dozen of whom are in Turkey now.

But the testimonies also show that the Syrian regime’s repression is at the same time self-defeating and has the potential to lead Syria into a bloody conflict. On May 13, protesters in Jisr Al Shughur torched the town’s Baath party building and someone wrote graffiti, saying, “We burned the building because we are tired of all the lies.” The person was referring to the government claim that “armed gangs” and not security forces were responsible for many of the killings. On June 4, after security forces shot at protesters during a peaceful funeral procession in Jisr Al Shughur, young men from the town, as well as some defected soldiers, attacked the security forces, killing security personnel and sustaining heavy losses themselves.

More than 100 days into Syria’s protests, it is increasingly clear that the savage and senseless violence of Syria’s security forces is fueling the protest movement. While a vast majority of protesters remain committed to peaceful means, some of those interviewed say they are getting tired of being shot at like ducks in a pond and may start adopting more violent means of opposition. Unfortunately, the Syrian government is still not hearing the message. Two days after I left the makeshift border camp, Syrian tanks closed in on it, driving the majority of its temporary inhabitants into Turkey.

NADIM HOURY is director of the

Beirut office of Human Rights Watch

 

 

July 3, 2011 0 comments
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Egypt: not yet a civic state

by Jonathan Wright July 3, 2011
written by Jonathan Wright

The Ottomans in Egypt let power slip more than 200 years ago, when Albanian adventurer Muhammad Ali became the de facto independent ‘viceroy’. But their legacy lives on in a version of the Ottoman millet system, which divides the population into religious communities, each with control over personal status matters such as marriage, divorce, child custody and inheritance. For administrative convenience and in deference to the Muslim concept that ‘revealed’ religions are the only ones that count, every Egyptian is registered as either Muslim, Christian or Jewish. ‘Freedom of religion’ in the Egyptian context basically means the freedom to worship in the manner of one’s ancestors.

The system has been creaking at the seams for decades, and globalization, migration and the communications revolution have added to the strain. Some Muslims have tried to turn Christian, Christian women have dismayed their birth community by converting to Islam and previously unfamiliar beliefs and practices have appeared — Baha’ism, atheism and yoga derived from Hinduism, for example. Thousands of people, still a tiny minority of Egypt’s 80 million people, live in legal limbo between the sectarian structures imposed by the state and the messy reality of the 21st century. The iniquities of the system have also contributed to sometimes violent disputes — churches attacked and set ablaze or street brawls between young Muslims and Christians.

A revolution, especially a revolution in which equal citizenship and a ‘civic state’ were prominent themes, might seem a good moment to jettison the Ottoman legacy and launch Egypt into a new era of individual freedoms. Revolutions often go hand-in-hand with changes in the status of the established religious institutions; witness the drastic reduction of church power after the French and Russian revolutions. The old regime of former President Hosni Mubarak never even tried to bite the bullet. At the most, it sometimes made concessions to foreign criticism and activism by Egyptians, allowing Baha’is, for example, to receive identity cards that do not specify the holder’s religion. 

Now change is in the air in Egypt, with a lively debate over what a ‘civic state’ might mean in practice and how it should be enshrined in legislation. Even the Muslim Brotherhood has endorsed the concept, though its version seems to be heavily qualified by vague references to Islam as the state religion and a ‘reference point’ for lawmakers. Among the wider population a ‘civic state’ has broad appeal in theory and Muslim-Christian harmony is cherished as an ideal. 

In a significant first step, the government of Prime Minister Essam Sharaf has dusted off old proposals for a standard law regulating the construction and maintenance of mosques and churches, to replace the system whereby Muslims could build mosques almost at will while Christians who wanted to build, repair or expand churches had to plead for permits from provincial governors of unpredictable inclinations. But the proposals are hardly revolutionary, and in the end the power to grant permits will remain in the hands of government officials.

On the broader question of conversions and separation of state and religion, liberal opinion is far from achieving the critical mass likely to lead to a breakthrough. Still, a recent opinion poll did show some encouraging signs for inter-faith relations in general; 67 percent of Egyptians (more than in any Arab country other than Lebanon) said they would not object if someone of a different faith moved in next door, and 78 percent said religious leaders should not have authority to dictate legislation. 

But the liberals are treading warily, conscious that accusations of hostility to Islam might undermine their political chances, and the military council running Egypt since February has no track record of innovative or progressive thinking. Without bold leadership, the future of state-religion relations in Egypt will emerge through a process of negotiation in which some of the parties cling to inherited privileges — not just Muslims on behalf of Islam but also Christian churches on behalf of their role as arbiters between Christians and Christians. The outcome will undoubtedly be a compromise that retains some elements of the old system, not a fresh start based on universal principles of human rights. As in many other spheres of life, the Egyptian revolution may turn out to be something rather less than ‘revolutionary’.

Jonathan Wright is managing editor of Arab Media and Society 

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Fashion – Beirut’s singular style

by Saria Francis July 3, 2011
written by Saria Francis

After the exhausting rush of 2010, which saw new luxury boutiques cropping up in downtown Beirut like saplings in springtime, Lebanon’s luxury retail market has settled into a more stable summer of 2011, reaping the rewards of last year’s investments.

 “The international luxury portfolio stands almost complete here in Beirut. And today we can say proudly that we offer the market the utmost in the fashion luxury industry,” says Nora Yagmur, general manager at Snowball, mother company of PLUM, PLUM Kidstore, Sugar PLUM, Lanvin Balmain and Isabel Marant.

“Beirut’s market is daring; [it opens] to new names in the industry faster than other countries in the region. Beirut has always been defined as the fashion window of the Middle East,” Yagmur adds.

Distinguished fashion marques such as Louis Vuitton, Hermes, Burberry and Dior have all set up shop in Beirut Souks, Solidere’s temple to ritzy retail.

Spending spree

The increasing prevalence of luxury shops in Beirut is no coincidence. “Lebanese men and women are famed for their sense of style and the attention they pay to every single detail that forms their personal image,” says Izzat Traboulsi, managing director of Hugo Boss for the Middle East. Whether it’s in their price range or not, it appears that stepping out in the right threads is a top priority for many; “If you have 100,000 people who can afford luxury in Lebanon, you have 200,000 people buying it,” Traboulsi says.

“When it comes to growth, we had minus 1 [percent] in 2009, plus 16 [percent] in 2010 and we budgeted plus 11 this year,” says Patrick Chalhoub, joint chief executive officer of regional luxury heavyweight, Chalhoub group. The political upheavals of the so-called ‘Arab Spring’ seem to have had little affect on the luxury market.

“We were running at plus 21 or 22 [percent] until the end of May in the region, which is quite remarkable and shows there is a market dynamic in luxury,” adds Chalhoub. 

Events closer to home had a more pronounced affect. After the collapse of Saad Hariri’s government in February, many managers and owners of the luxury brands’ downtown shops witnessed a notable crash in sales.

Hugo Boss reported a drop in 2009 in the Middle East, while globally the company remained stable. The brand recorded a turnover of $2.13 billion globally in 2009, with an increase to $2.42 billion in 2010. Traboulsi notes, “profits dropped 16 percent in 2009” because of the global financial crisis, but “globally, we had a good balance because of emerging markets like Japan and India.”

Lebanon’s position as a favorite holiday spot for wealthy Gulf Arabs has traditionally played into the hands of the luxury retail market, but according to Traboulsi this trend has been declining of late. The shoppers spending hundreds of thousands of dollars are deterred from visiting due to the country’s unstable situation.

Traboulsi added that compared to the global net income of $2.69 billion in 2010, Hugo Boss’s turnover in Lebanon was small — resulting in only $20 million in 2009 and 2010.

“It is too bad to lose all the potential we have,” says Traboulsi, “I expected more of Lebanon because we have many assets and good businesspeople that are ‘fashion-forward’.”

The competition today in Beirut is fierce, says Traboulsi, who points to Solidere’s extended luxury retail area where the Middle East Luxury Group’s Gianfranco Ferre has already placed a huge 80 percent sale tag on its window for summer 2011.

Overestimated potential?

Lebanon’s economic fate is intricately linked to the internal political situation, which is notoriously hard to forecast. Nonetheless, Beirut has become one of the foremost fashion destinations of the Middle East. According to Yagmur, the market is currently home to at least 98percent of the international luxury portfolio and is constantly introducing the latest international designers.

However, Beirut’s luxury markets bustle in the shadow of their Middle Eastern competitor, Dubai. Traboulsi says that the higher wages in Dubai reinforce the clients’ ability to buy luxury items, while the average salary in Lebanon is much lower, not to mention the stifling effect of Lebanon’s ongoing political crisis. “It is a pity to see the private sector doing so well, while politicians battle over futilities,” Traboulsi concludes.

“This does not mean that Beirut is not on the top of the list [as a fashion destination],” insists Yagmur.

 

July 3, 2011 0 comments
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Tumult takes its toll

by Executive Staff July 3, 2011
written by Executive Staff

Nationwide protests, now entering their fourth month, are edging Syria closer to economic meltdown. The government in Damascus has for the most part offered rosy official assessments and downplayed current events as a temporary blip in an otherwise grand upswing — the truth is likely far more grave.

Compiling a credible, comprehensive economic analysis of Syria is implausible even in the best of times, let alone during a mass uprising. However Executive,  through interviews with sources inside the Syrian regime and the tracking of significant indicators, has compiled a report that portends the cracking of the economy at its foundations.

The beginning of capital flight

The first negative signs appeared even before the protests had turned into a full scale uprising; private banks’ first quarter reports issued at the end of March showed that the five-year streak of average annual asset growth of 33 percent had come to an end, registering instead a 4.3 percent decrease quarter-on-quarter. According to first person accounts from sources close to the unfolding events, in April the decrease in bank deposits was so great that the government set a limit on cash withdrawals, with those over 1 million Syrian pounds [$21,074] requiring special approval from the bank manager.

Despite this, early last month Finance Minister Mohammad Jleilati announced that Syrian bank deposits had actually increased 30 percent — many familiar with the subject viewed this statement with skepticism as an attempt to ease the angst of regime supporters. Jleilati, though, did confirm that the country is suffering an economic recession due to the “current circumstances” in a statement elaborating on why the treasury bonds auction scheduled for this month was postponed indefinitely.

The Damascus Stock Exchange (DSE) has also lost some 28 percent of its DSE Weighted Index (DWX) over the second quarter alone, even though in May the stocks index rose following an amendment to the trading law (introduced mid-May) that would allow listed companies to buy their own stocks. Commenting on this, Jleilati said: “Investors should hold on to their stocks even if they reach their book value,” as the drop in their value is due to “rumors spread by other investors to decrease the value of stocks to buy them later for book value.”

Jleilati was appointed finance minister after the recent cabinet reshuffle, replacing Muhammad al-Hussein, who in early June was prevented from boarding a plane leaving Damascus International Airport. The former finance minister had spearheaded the campaign in the first quarter to quell public discontent through public spending increases [as reported by Executive in April].

The measures reversed the previous policy of gradually lifting subsidies and instead increased heating-oil allowances for public sector employees by 72 percent, equivalent to $33 a month, in a move that would, he said, “cost the government an extra $326 million annually,” while cutting the price of diesel by 25 percent, from 20 SYP [$0.42] to 15 SYP [$0.31] per liter. Another appeasement effort in the first quarter was the implementation of a social security fund of $250 million to help the neediest families in Syria; however, allegations of corruption have been rife and there has been little official mention of the program, or the allocated money, since.

Adding to increased government expenditures is the cost of suppressing the uprising itself. According to a source in the regime, armored trucks regularly leave the central bank loaded with cash to finance the regime’s makeshift militias, made up of shabiha and hired thugs, Baath party members and public sector employees. Although Jleilati claims that Syria’s foreign currency reserves at the central bank still exceed their pre-crisis level — $18 billion — the government appears to be hoarding foreign cash, having disallowed banks and exchange bureaus from handing out United States dollars and other major foreign currencies.

Foreign exposure

Also casting doubt on the foreign currency reserve claims of the finance minister is the fact that Syria’s international trade has plummeted. Europe, which accounts for a third of Syria’s exports, has been withdrawing its support by boycotting Syrian companies; recently, experts from Austrian and German companies left the filters and coolers in the Adra Cement factory half installed and returned home, citing new protocols of boycotting Syrian companies, while the European Commission froze all its programs and support. Further, Turkey, which accounts for a quarter of Syrian exports, has been retracting its support and business; many companies dealing in textile, clothing and manufacturing are losing their Turkish customers and investors and are shutting down.

One recent example is the General Wool and Carpets Manufacturing Company in Aleppo, one of the giants of the sector that was formed with the merger of the Hama Wools Co. and Damascus and Aleppo Carpets. As Executive went to print the company had shut its gates, unable to pay its workers’ wages.

Another engine of the Syrian economy and significant source of foreign currency, the tourism and hospitality industry, has also come to a grinding halt. “I fear that we will have to fire [staff], as we’ve already sustained heavy losses due to the unrest,” said an investor in the hospitality sector who requested anonymity. “If the people can’t go out at the weekends because of the protests and intimidating security personnel and check points spread everywhere, how are we supposed to make money?”

According to the Syrian Ministry of Tourism, the tourism and travel sector accounted for $8 billion in revenue last year, or 12 percent of Syria’s gross domestic product, employing 792,000 people (some 11 percent of the workforce). This year, what was expected to be a boon season with 8.5 million tourists is being devastated by cancelations, affecting all tourism-related businesses in the country, from tour operators and hotels to airline offices and car rentals. Occupancy rates at hotels in Damascus at the end of June did not exceed 30 percent capacity, while Aleppo hotels were nearly empty. Many countries have issued travel warnings to Syria, inhibiting the chance of a short-term recovery in the industry.

The ‘fall guy’?

The ejection last month of Rami Makhlouf from the regime’s inner circle is a sign that the turmoil in the streets is riling the elite. As the cousin of President Bashar al-Assad, Makhlouf was launched from relative poverty and obscurity to extreme wealth and national infamy, beginning his ascendency as Assad begun his preparations to assume the presidency in the late nineties.

Makhlouf, a billionaire, was at one point reputed to control 60 percent of the Syrian economy through a massive web of investments in telecommunications, construction, tourism and other sectors. On June 16 — shortly after the US had placed his holding company, Souria Holding, under sanction and he had sold out his most lucrative venture, Syria Duty Free, to a Kuwaiti consortium — Makhlouf announced he was resigning from business, selling his interests in Syrian mobile and internet provider Syriatel, and donating the profits of his investment to charity; he then left the country with his family.

While Makhlouf, widely reviled as the epitome of corruption within the Syrian regime, may have been sacrificed in an attempt to appease popular sentiment, his ilk remain of paramount importance to the Assad family’s rule. The president’s sway in the street has eroded with the growing waves of protest around the country, but he has largely maintained his support among the wealthy businessmen and merchant classes in Damascus, and the industrialists of Aleppo — a crucial pillar of his power base.

However, as the economy languishes, businesses close and fortunes evaporate, so too will this support.

July 3, 2011 0 comments
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Revolutionary rebranding

by Josh Wood July 3, 2011
written by Josh Wood

In the immigration hall of Cairo International Airport above the booths where customs officers process travelers’ passports, visitors idling in the queues now see is a picture of a young boy with his face painted red, white and black — the colors of the Egyptian flag — next to the words: “We should teach our children to be like the Egyptian youth.”

The words are a quote from United States President Barack Obama, congratulating the Egyptian people on their revolution that ended the three-decade reign of Hosni Mubarak. The banner is an advertisement for the Egyptian mobile phone service operator Mobinil.

Today, in the afterglow of the revolution, Cairo is awash with the country’s official colors. Face painters and flag vendors crowd Tahrir Square. Empty spaces across the capital from street curbs to building walls have been turned into canvases for the colors of Egypt’s rediscovered public nationalism.

Companies — some of which had strong ties to the fallen regime — have taken note; advertisements on television and on billboards overlooking highways now commonly play off of the revolution and Egyptian nationalism. For Mobinil and Vodafone, the two principal mobile carriers in the country, such ad campaigns are somewhat hypocritical considering that the companies shut down their networks at the government’s request in the early days of the revolution. By facilitating the mobile and Internet blackouts the companies allowed the Mubarak regime to cut off Egypt from the rest of the world. For the Egyptians protesting during those bloody days, the inability to coordinate and communicate put many lives in danger.

At a time when SMS text message services were still disabled, the only messages that came through to Vodafone subscribers were those urging citizens to “confront traitors” and giving details about pro-Mubarak demonstrations. In press releases Vodafone asserts that it was forced to send out text messages and shut down the mobile network in accordance with the country’s Telecoms Act and Emergency Law.

Whatever forgiveness the mobile phone operators may have received from the public was quickly undone when a video by ad agency JWT credited themselves and Vodafone for the revolution. The short video —apparently not intended for the public — showed an award-winning commercial for Vodafone that the agency had created and released in early January, several weeks before the revolution. In it are portrayed scenes of everyday Cairo life as movie star Adel Imam narrates about “the power of 80 million” Egyptians. Following the commercial, text added by JWT appears saying, with no lack of subtle self-aggrandizement, “We did not send people to the streets. We did not start the revolution. We only reminded Egyptians how powerful they are.”

Egypt’s telecom companies are not alone in their rebranding efforts. After infuriating protesters in Tahrir Square by urging them to disband and go home, Egyptian pop star Tamer Hosni is now releasing tracks about the martyrs of the revolution. Magdy Rasekh, the father-in-law of Alaa Mubarak, one of the former president’s sons, stepped down as chairman of the board of real estate giant Six of October Development and Investment Company (SODIC) just as the company unveiled an ad campaign focusing more on its contributions to the country’s economy than to the luxury villas and cities for the rich that it is building outside of Cairo.

Under Mubarak, connections to the regime were the means to get ahead and be successful. Corruption enriched those who became part of the system. A few business magnates — perhaps most notably steel tycoon Ahmed Ezz —have taken the fall for such connections, but many companies that made their money this way remain. For these people, rebranding is simply good business.

With Egypt’s post-revolution economy stagnant and the country’s tourism industry dried up for at least the time being, somebody is going to have to keep the economy afloat. For many of those who protested in Tahrir Square, the revolution was as much against the corrupt system that made the rich richer and poor poorer as it was about Mubarak’s dictatorial regime and human rights abuses. Unfortunately for them, it is likely to be many of the same people who prospered under Mubarak who will provide Egypt’s economy with integral capital in its time of need, likely maintaining the old ways of cronyism and corruption, only now behind a facade of populist branding.

JOSH WOOD is a contributor to The International Herald Tribune and Esquire Magazine

 

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Epics in Time

by Lauren Williams July 3, 2011
written by Lauren Williams

When an enamored Zeus changed form into a bull to kidnap and ravish the beautiful Phoenician princess Europa, a continent was born.

Originally from Tyre, South Lebanon, she was whisked away to Crete, where her union with Zeus would see the birth of many of the Helenistic demi-gods. It’s a local legend of timeless proportions that has fascinated artists of all disciplines for centuries.

Europa appears in Ovid’s ‘Metamorphoses’ and Homer’s ‘The Iliad’ and since then, her grace and suffering have continued to inspire sculptors, poets and artists over centuries. In today’s world, the force of the myth remains poignant in interpreting the relations between East and West. 

Lebanese artist Hussein Madi has been obsessed with the myth for decades. “The idea that this woman names a continent is fascinating to me,” the now elderly Madi explains from his atelier. “And the fact that she came from [Tyre] makes it all the more fascinating. I love this story.”

It was the timelessness of the mythology and Madi’s reinterpretation of the legend that brought European watchmakers, the Swiss-made Gerard Perregaux to Lebanese shores and directly to Madi.

Girard Perregaux, who are sponsors of the Menasart Fair — the second Middle East and North and South African art fair to be held in Beirut in July this year — approached Madi to create two unique paintings to be used on the faces of two limited edition watches.

The result is artwork within an artwork that derives its extravagance not just from its convergence of multi-disciplined beauty and high art, but also in claiming a charming slice of history.

The two limited haute horlogerie watches — a male and a female version — feature individualized artworks, reinterpretations of the kidnap of Europa first painted by Madi, then painstakingly transformed into mother-of-pearl mosaics to be fitted on the faces of the 1966 watches by Girard Perregaux craftsmen, over more than 700 hours.  

The watches, as yet unpriced, will be unveiled for the first time at the fair but have already attracted palpable excitement. “When we saw Madi’s work and we saw the legend, we knew he was perfect for the project,” explained Zeina Annan, the marketing director for AS Chronora, Girard Perregaux’s agents in Lebanon. “This year we will prove that watch-making is an art form and this is a story and a project that is really close to our hearts.” 

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When the workhorse refuses the whip

by Sarah Lynch July 3, 2011
written by Sarah Lynch

A group of middle-aged men lie sprawled on the sidewalk outside a towering building in Egypt’s Nasr City, shading their faces with newspapers. For 15 days these oil and gas workers have been staging a sit-in, demanding that their petrochemical employer give back the jobs that they abruptly lost before their nation’s revolution.

“We are demanding to return to our old work because we don’t have any other way to make money,” says protester Hamouda Mohammed.

Back in downtown Cairo, Qasr Al Eini Street, lined with banks, hospitals and government buildings stretching south from Tahrir Square, has become ‘protesters’ row’. Since the uprising that swept the nation on January 25 and toppled President Hosni Mubarak in mid-February, teachers, lawyers, doctors and others can be found here most days, waving Egyptian flags and holding homemade posters, partaking in Egypt’s nationwide wave of labor strikes.

Week after week, protests, sit-ins and strikes continue to be staged across post-revolution Egypt; Kamal Abbas, director of the Center for Trade Union and Worker Services (CTUWS), a 20-year-old non-profit group, says that nearly one million workers were involved in labor strikes between the start of the revolution and mid-May, (although this figure could not be independently verified).

Experts say the strikes span all sectors of the economy, from textiles to agriculture to oil and gas and include both private and public workers. Strikes have been held from Aswan in the south to Alexandria along the northern coastline and the Suez Canal in the east.

Roots of the labor movement

The stronghold of the labor movement has long been in the Nile Delta, in the industrial city of El Mahalla El Kubra. The labor force in Egypt today consists of roughly 23 million citizens, almost one third of the nation’s more than 80 million people, with the largest sector of employment being agriculture, followed by industrial manufacturing.

The country has a long history of labor action dating as far back as the time of the pyramid builders under the rule of the Pharaohs. While the country has witnessed an up-tick in strikes since the revolution this year, today’s movement is rooted in decades of labor issues and uprisings whose modern history dates back a century.

In 1919, an Egyptian political figure named Sa’d Zaghlul attempted to attend the Paris Peace Conference with his colleagues to demand freedom from the grip of British occupation following World War I. Zaghlul and two others were arrested and later deported, leading to mass strikes among labor groups and workers — an event that led the way to Egyptian independence three years later, in 1922. This movement developed into a nationalist party that later became known as Wafd.

Workers in the early 1900s faced harsh working conditions and lacked a legal federation for the nation’s rapidly forming unions, which became regulated by the state in the 1940s. This continued with little substantive improvement until the government formed a labor federation in 1957 that was later reorganized and named the Egyptian Trade Union Federation in 1961. The federation represents roughly two and a half million people from the private and public sectors in 23 different syndicates. But many say the federation is simply an arm of the government and that it lacks independence and autonomy. Until January 30, it was the only trade union federation for workers in the country.

Throughout the first half of the 20th century, labor movements ebbed and flowed, often with nationalistic reverberations. Then in the 1960s, under President Gamal Abdel Nasser, an unwritten agreement was reached between the labor movement and the government; workers would be guaranteed lifetime employment, which included acceptable living wages and non-wage benefits such as job security, in return for workers’ compliance.

“People had the idea that the government was responsible for getting them a good job, an apartment, helping them [afford to] get married, and be educated and have good health services — this has been the idea for some time,” says Ahmed Kamaly, associate professor and chair of the economics department at the American University in Cairo (AUC).

But over time, the system reneged on those promises. Beginning with the liberalization of the economy in the mid-1970s, benefits and subsidies were slowly reduced. With the large-scale privatizations of state-owned Egyptian companies that began in the early 2000s, employment was no longer guaranteed; workers faced private owners bent on streamlining payrolls, sparking a new wave of protests.

According to a 2010 report by the Solidarity Center, a United States-based non-governmental organization that assists workers around the globe, there were more than 1.7 million protesters involved in demonstrations, strikes, sit-ins and gatherings across public and private sectors from 2004 to 2008. More than half a million of those were in 2008 alone.

“There [have been] many years of neglect of labor relations and a failure of old representatives, so now there is no running away from the fact that we need to take matters seriously and rewrite the labor law,” says Mona Said, an expert in labor market issues and an associate professor at AUC.

Wages remain the chief impetus behind labor action in Egypt where, as of May 31, the minimum wage was 118 Egyptian pounds per month (less than $20). Another major point of contention for workers is job security. Experts say some companies force workers to sign resignation forms before they begin employment; should an employee file a complaint with the Ministry of Labor after being unfairly dismissed, the employer can simply show the ministry the resignation form, putting an end to the case. Without alternative options, or a protective government, the workers are pressured to sign the forms.

Revolution, labor and economics

The labor movement played an important role in sparking and sustaining the nation’s revolution. One of the instigators of the political uprising was the April 6 Youth Movement, which started as a Facebook group in 2008 to support workers who were planning to strike on April 6 of that year in El Mahalla El Kubra. Labor strikes continued over the next few years. Then, as thousands descended on Tahrir Square in late January, workers across the country quickly mobilized, bringing their nation’s economy to a halt. Banks closed, textile mills shut down and even transportation was affected by the strikes.

While experts say the number of strikes has since dropped following those fateful days, the lingering revolutionary spirit continues to invigorate workers to take action to see that their demands be addressed.

The economy has been left reeling in the wake of the revolution — the Economist Intelligence Unit estimates gross domestic product growth to be just 1.2 percent in 2011, as of mid June the stock market index was down 22 percent on the year, the tourism sector lost well more than half a billion dollars in the first quarter and net foreign currency reserves had contracted some $13 billion on the year to the end of May. In May the Central Agency for Public Mobilization and Statistics, Egypt’s official statistics body, reported that the unemployment rate had reached 11.9 percent — some 3.1 million people — though Labor Minister Ahmed al-Boraie was later quoted in Al Ahram as saying true unemployment was likely to be much higher. The current political uncertainty combined with labor unrest has also shaken the markets, economists say, slowing both foreign and domestic investment.

“No investor is going to invest with this level of uncertainty, not only in terms of politics, but also in terms of the workers,” says AUC’s Kamaly. “At any time you can go to the streets and have a demonstration, and no one will tell you ‘Don’t do that’.”

Thus, while many of those on strike have legitimate grievances, their continuing labor action could hardly have come at a worse time for a country trying to rebuild its economy, and may be self-defeating. The strikes are contributing to a general loss of economic activity that leaves employers short of the revenues needed to meet strikers’ demands.

The interim ruling military council has imposed an anti-strike law intended to quell demonstrations, sit-ins and protests, but activists and workers have generally defied the ruling as they continue to voice their grievances.

“I do think strikes negatively affect the economy, but people don’t know what else to do,” says Hani Kheir, while standing outside the Petroleum Ministry one afternoon last month, demanding that the government give him a job. “It’s the only way to relieve their tension and at the same time ask for their demands.”

“I don’t see any changes after the revolution,” says Karem Saber Ibrahim, executive director of the Land Center for Human Rights, an Egyptian NGO. “The salaries are the same, contracts are the same, days off are the same, the lack of vacations and holidays are the same.”

He, like so many people on strike, doesn’t believe demonstrations affect the economy.

“The thing that affects the economy is the thieves,” he says. “The government has failed us and has not helped develop the country.”

July 3, 2011 0 comments
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Finance

On the spot – HSBC’s Simon Cooper

by Executive Staff June 26, 2011
written by Executive Staff

Simon Cooper is deputy chairman at HSBC Bank Middle East and North Africa (MENA). He recently sat down with Executive to discuss the effect of the regional unrest on business and investment in the MENA region, as well as growth opportunities for the future.

June 26, 2011 0 comments
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Society

Lebanon Tourism Special Report

by Executive Staff June 26, 2011
written by Executive Staff

As the traditional source of tourist dollars dries up from the Gulf, Lebanon must look within if it is to maintain the momentum of this key driver of the country’s economy. Executive takes a quick trip to the beaches of Lebanon’s southern city of Sour, via the crusader castle and ancient souks of the historic city of Saida

June 26, 2011 0 comments
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Editorial

Arabs and advocacy

by Yasser Akkaoui June 4, 2011
written by Yasser Akkaoui

Search Amazon for books on lobbying and advocacy and you will find more than 9,000 on the subject. It does not take 60 years to understand the American system of checks and balances. All you need is a cause, conviction and the tenacity to keep pushing your message until it is heard and repeated by congressmen, senators, the media, influential personalities and the president. Mobilize networks of mutually-interested individuals to muster electoral money and resources for candidates that supports your cause, and, voila! Welcome to influence.

To have the world’s strongest economic power as an ally, learn the local vernacular and the ideological concepts that resonate. A little bit of democracy and a whole lot of fiery advocacy for a few decades or so should earn the leaders of your cause a regular spot to speak at congress and, if you’ve manage to scare the politicians enough about their dependence on you for reelection, expect them to jump to their feet and offer 29 standing ovations for a 45-minute speech.

This is the prism through which the Middle East and North Africa needs to assess Obama’s ‘Arab Spring’ speech, in which he outlined a new era of America engagement within the region; undoubtedly he supports the concept of Arab democracy, but this will extend only so far as it does not conflict with his reelection, and at the moment it is not the Arab lobby whom he feels beholden.

For Arabs to ever be the primary consideration and beneficiaries of American policy in the MENA, they must create an energized and expansive lobbying network — not just in Washington, but in every major US state. Then, perhaps, when another American president unveils a new US policy direction for the Arab World, it will be to the Arab American Political Action Committee that he offers his justifications.

For this we would need real leaders, and leaders we have none.    

June 4, 2011 0 comments
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Since its first edition emerged on the newsstands in 1999, Executive Magazine has been dedicated to providing its readers with the most up-to-date local and regional business news. Executive is a monthly business magazine that offers readers in-depth analyses on the Lebanese world of commerce, covering all the major sectors – from banking, finance, and insurance to technology, tourism, hospitality, media, and retail.

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