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Feature

A sea of plenty?

by Executive Editors November 26, 2010
written by Executive Editors

Projections indicate that over the next 30 years, the outlook for the water situation in the Mediterranean zone — including the Levant — is dire. Over the past century or so, most of the area witnessed a clear trend involving a decline of up to 3 millimeters (mm) per year in annual precipitation.

And things are not set to get any better in the future: the International Center for Agricultural Research in the Dry Areas predicts a 10 percent drop in precipitation in the region during the next three decades compared to the average over the past 100 years. Moreover, most of the decline will take place during winter and spring, when decreases of up to 20 percent are expected, which means that the growth cycle of the vast majority of major field crops will be affected with potentially disastrous consequences.

At the same time, the mean annual temperature of the region is expected to increase by 0.5-1.5 degrees over the coming 30 years, with most of the change occurring in the summer (when it will be approximately one to two degrees hotter). The most affected areas will be Syria and Jordan, where 30 percent of the land will deteriorate from a steppe to a desert, while Lebanon and the West Bank will also witness substantial, if less drastic, change. This will lead to shorter growing periods, with much of the region experiencing reductions of up to 15 days and the decline in parts of Syria, the West Bank and Cyprus more pronounced. Only in some of the high mountain areas of Lebanon will the length of the growing period actually increase due to the rise in temperature, as this will reduce the number of days when cold weather limits growth.

Such trends will thus be highly significant for the economy in most of the Levant. Climate change — whatever its cause — means that more frequent and severe droughts can be expected in the near future, and that desertification is a greater threat than ever. Drought may not be preventable, but actions can be taken to adapt water demands and mitigate the impact.

Turkish temptation

The countries of the Levant may look west, where Turkey bathes in apparent aquatic abundance. But with a growing population and difficulty harnessing supply to its full potential, the Turkey of the future may have its own problems to solve.

For the last few decades the country has been touted as the lifeline and reservoir of the Fertile Crescent, that arc of relative greenery that stretches from the end of the Persian Gulf through Iraq and the Levant to the western tip of Egypt.

At first glance, Turkey would seem to be water-rich: it has some 120 natural lakes, the largest and deepest of which is Van, with a surface area of more than 3,700 kilometers square and a depth of over 100 meters. The Turks also have hundreds of large dam reservoirs, of which the biggest is the 817 square-kilometer lake behind the Ataturk Dam, one of the world’s largest projects of its kind. Moreover, the country is well endowed with rivers, many of which rise and empty into seas within Turkey’s borders, though others such as the Tigris, Euphrates and Orontes are shared with Arab neighbors.

All of this bounty is renewable thanks to extensive rain and snowfall. Turkey’s mountainous coastal regions receive abundant precipitation of up to 2,500 millimeters per year, though areas away from coastal fringes get less: 500 to 1,000 millimeters per year in the Marmara and Aegean regions and in the plateau of East Anatolia, while most of the central and southeastern zones receive only 350 to 500 millimeters annually. Snow falls all over Turkey, and is retained in high mountain areas —  in spring, the meltwater feeds rivers and ground water sources.

Climate change may make inroads into all this, but Turkey is in better shape than its southern neighbors. With such an abundance of water, sending some of the stuff to slake the thirst of a parched Levant may at first glance seem simple. In fact, well before growing regional drought and desertification became widely recognized, various schemes to pump Turkish water south were touted.

These included two pipeline projects for which preliminary feasibility studies were completed late in the late 1980s. The first was the ‘West Line,’ a 2,650 kilometer long route to transfer 3.5 million cubic meters daily from Turkish rivers to Syria and Jordan, and on to the Saudi cities of Tabuk, Yanbu, Medina, Mecca and Jeddah. It was to be matched by a ‘Gulf Line’ carrying 2.5 million cubic meters over 3,900 kilometers through Syria, Jordan, and Saudi Arabia to the Arab Gulf states. The projects never got off the ground.

In only two decades, Turkey could become a water-poor state

Thirst for efficiency

But the Turkey of today is not the same as that of the mid-20th century in terms of water supply and demand.

Countries are “water-poor” if annual available water volume per capita is less than 1,000 cubic meters, or “stressed” if the figure is between 1,000 and 2,000 cubic meters. According to this common international norm, Turkey is now water-stressed; the annual available volume of water has recently been approximately 1,500 cubic meters per capita, whereas in 1960, when the population was only 28 million, it was 4,000.

The official State Institute of Statistics has estimated that Turkey’s population will reach 100 million by 2030; so, all things remaining equal, the annual amount of water per capita available to the Turks will be about 1,000 cubic meters. In only two decades, Turkey could become a water-poor state. Under these conditions, it is more important than ever for the Turks to develop and allocate water resources efficiently before thought is given to sending it south to supply the parched Levant or Gulf regions.

Inside the country, a lot still has to be done to make the best use of water wealth; despite implementation of some ambitious plans to dam and otherwise better store and utilize water, Turkey in recent years has only been using 37 percent of the available exploitable potential of 112 billion cubic meters.

One problem is that distribution of precipitation in the country is uneven: water is not always in the right place at the right time to meet needs. For example, the average number of days on which it snows and the duration of cover vary considerably among regions, from less than one day a year in the Mediterranean zone to over 40 in Eastern Anatolia. The trouble here is Turkey’s settlement patterns are the opposite; people and industry tend to be located in the dryer Mediterranean region. Another issue is that rivers have irregular regimes and natural flows cannot always be diverted directly.

These problems could be addressed through massive new investments which would allow the country to make better use of its water, in which case it could conceivably export some of it to thirsty southern neighbors.

Otherwise, the water wealth of Turkey will continue to be underexploited, to the detriment of Turks and Arabs alike.

November 26, 2010 0 comments
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Feature

The specter of Solidarity

by Executive Editors November 26, 2010
written by Executive Editors

For the past four months, former workers have been staging a sit- in at the gates of the Future Pipe Industries (FPI) factory in Akkar, Lebanon’s underdeveloped northernmost region. FPI, a global manufacturer of fiberglass pipes announced in July that it would be closing the Akkar plant, citing adverse operating conditions.

But many of the factory’s 200 contracted workers, and up to 140 daily workers, are crying foul. They say that some of the employees, who are unionized, were so skilled that they were sent to some of FPI’s 10 other factories around the world to train others and that the company had just supplied the Akkar plant with new machines worth millions, suggesting that the factory was not losing money. The workers also claim to have been dismissed without proper consultation or compensation.

The more active members of the FPI union, having been left in a jobless limbo, are insisting that they will camp outside the factory, blocking the company from removing the machinery, until they have received adequate compensation or get their jobs back.

“I have six kids who are all in school, except one that works at General Security,” says Jamil Abou Chakra, 46, who had worked in the factory for 13 years. “We are willing to die or go to prison because we have nothing left.”

The unity of the former factory workers is far from absolute, however, as the company has actually hired a number of them as security guards to prevent the strikers from entering the factory.

Unions bygone

“Compared to [the union movement] before the war, you now have a miserable corpse of what it once was,” says Fawwaz Traboulsi, professor of politics and history at the American University of Beirut and the Lebanese American University, as well as the author of “A Modern History of Lebanon.”

Traboulsi was an activist in his day, mobilizing teachers and students and supporting the union movement in the 1960s and early 1970s when it was agile, energetic, increasingly powerful and largely independent.

Now, he speaks like a preacher who has lost his flock, obviously capable of passion and energy but no longer motivated to summon either. The unions he once championed are now husks of their former selves, weak, divided and in the thrall of sectarian political masters.

At the end of the 1975 to 1990 Lebanese Civil War, Traboulsi says that almost no one was interested in bolstering the trade union movement. Strong unions would slow reconstruction by demanding wage hikes and politically independent unions would be of no use to Lebanon’s sectarian leaders.

“[Former Prime Minister Rafiq] Hariri wanted docile trade unions, but more important than Hariri were the Baathists, the Syrian intelligence and the Syrian Socialist Nationalist Party (SSNP), as well as labor ministers, who interfered very strongly in the trade unions,” he explains.

First off, a strong union movement is hindered by regulatory infringements on what should be — according to the International Labor Organization (ILO) — inalienable rights.

ILO Convention 87, established in 1948, reads: “Workers and employers, without distinction whatsoever, shall have the right to establish and, subject only to the rules of the organization concerned, to join organizations of their own choosing without previous authorization.”

The Lebanese government has refused to ratify Convention 87 under the pretext that doing so will allow the trade unions to become a direct reflection of the sectarian divisions within the country. But many of those interviewed for this article agree that this is the case despite not ratifying the convention. 

“In our mind it is already divided like this,” says Walid Hamdan of the ILO’s Regional Office for Arab States. Refusing to comply with Convention 87 allows the Lebanese government to deny public employees, including teachers, the right to organize into unions as well as to require every new union, strike or protest to be approved by the labor minister. And with much of Lebanon’s large-scale industry destroyed in the war, new unions that were formed after 1991 became smaller and more localized than their pre-war equivalents. The unions then became an extension of the country’s sectarian system.  “The period where thousands of people thought that their interests could be served by resorting to the trade unions was a pre-war phenomenon. Now, sects take care of people’s interests,” says Traboulsi.

The unions are now husks of their former selves, weak, divided and in the thrall of sectarian political masters

Politics in Akkar

Political interference is also one of the complaints of the workers at FPI’s factory in Akkar.  The company was founded by Fouad Makhzoumi, leader of the fringe National Dialogue Party, which has no seats in parliament. Most of the workers had formerly been supporters of the Future Movement before, they claim, they were either “forced” or “encouraged” to join the National Dialogue Party. The assertion of being forced to switch political parties, however, means little to the ILO’s Hamdan, who sees the whole ordeal as a weakening of resolve on the workers’ behalf, rather than a grievance to be included in the complaints.

“This is where the problem is. From the beginning I shouldn’t align myself with anybody,” says Hamdan. “I’m an independent entity and my only concern is how to best defend the interests of my workers.” After the strike began, the men had hoped to turn to the ruling March 14 coalition for support as the Future movement currently holds sway in the region with a majority of Akkar’s parliamentary seats — that was before August 6, when Makhzoumi held a dinner in honor of Future Movement leader, Prime Minister Saad Hariri.

The FPI workers now find themselves in the difficult position of being without a political patriarch interested in maintaining their support.

Woes of the workplace

The strikers claim that the working conditions in the plant were hazardous, with fiberglass dust constantly in the air and no masks or aspirators provided, causing respiratory problems, eye infections and even cancer.

“The fiberglass, while we are grinding it, makes a cloud inside the factory and makes infections in the eyes,” said FPI union president, Abbas al-Badan, 53, who worked at the factory for 12 years. At FPI’s Egypt factory workers have also accused the company of workplace malpractice, presenting a report in August to the Egyptian Attorney General claiming that the unsafe use of toxic materials in the factory resulted in a worker’s death.

FPI has called all of the Akkar union’s accusations “calumnious.” When contacted by Executive, FPI’s head of communications said the company would not grant interview requests. A written company statement on the matter reads: “The company holds since 2004, the International Organization for Standardization 14001 accreditation for its compliance with the strongest environmental requirements and is subjected to continual audit in this connection twice per year.”

But the workers argue that, in the case of Lebanon, inspectors were bribed and the factory management was given advance warning of inspections, giving them the opportunity to temporarily improve working conditions. Despite the many grievances of FPI’s workers, the strike has resulted in little progress since it began in July, and union experts are pessimistic about its success. The protest’s removed location limits media attention and the organizers have struggled to arrange more visible events in Beirut. And despite their efforts, the workers have not been able to gather in such numbers as to make a strong and un-ignorable stand.

But as the workers sit at the factory’s gate, taking shifts and waiting for a wave of public support they can only hope is on its way, they beg the questions: why are they doing it alone? And, if conditions were as egregious as they say they were for 15 years, why are they only just now bringing up the subject?

Systematic fragmentation and politicization of the trade unions as a whole have weakened them almost to ineptitude

State of the unions

The FPI union in Akkar is just one example of how systematic fragmentation and politicization of the trade unions as a whole have weakened them almost to ineptitude.  The natural place for the Akkar protestors to look for support would be up the ladder of the union system to the confederation. Lebanon’s General Labor Confederation (GLC) is the parent organization of all of Lebanon’s 52 trade unions, but the oddly unfinished lobby in the confederation’s building is not the only thing giving the organization a derelict air. The GLC suffers from structural defects that make it ill-equipped to help small causes like the strike in Akkar. The confederation, for example, does not require its member unions and syndicates to pay dues. Some of the wealthier sub-organizations do contribute, but Ghassan Ghosn, president of the GLC, says that it is impossible for the smaller organizations to do so, as they struggle to fund even their own operations.

The GLC is largely funded by the government and is included in the Ministry of Finance’s budget, as is the case in most countries.

“When the union movement depends solely on government funding, that can be used as leverage to pressure them here and there,” says ILO’s Hamdan. “If [they] don’t have other sources of funding then [they] lose [their] independence.”

Ghosn says even with government money, the GLC’s funding is inadequate. The GLC did provide the Future Pipe union with a lawyer to help in their efforts, but funding for further legal counsel or efforts to generate awareness through paid media are nowhere to be found.

Ghosn claims, however, that further funding is unnecessary in the case of the FPI workers. “Their problem is not a question of money. Publicity does not need money. The newspaper and other media is free,” he said. “Even if they have a lot of money they will not be on the level of Makhzoumi.”

Outside of individual union activities, the GLC also lobbies on behalf of all workers in Lebanon. In March, Ghosn and representatives from the GLC met with the Minister of Labor in order to present grievances regarding just taxation, social security benefits, and the provision of electricity and water.

It is these general demands that most frustrate Hamdan: “If I were in the leadership of the [confederation] one of my major priorities would be to have the right of all workers to associate and organize. They make only shy demands.”

The yearly meeting between the GLC and the Ministry of Labor yielded little results and meetings continued throughout the summer. A general strike was planned for June but Ghosn called it off in when promised a ministerial committee dedicated to GLC issues. He also said the GLC did not want to interfere with the tourism season. After months without progress, Ghosn threatened again in September to call for a general strike if his concerns were not addressed.

This is effectively the only card he has to play, but it has nowhere near the punch it would have had prior to the civil war. No general strike since the war has drawn the thousands of workers they used to. When crowds do form, they usually don sectarian colors and flags — whatever the real reason for the protest. The clashes and street battles between government and opposition supporters in May 2008, after all, began with a labor strike. A general strike might then be perceived as more a threat of civil unrest than a protest.

No general strike since the war has drawn the thousands of workers they used to. When crowds do form, they usually don sectarian colors

Still waiting

Sitting under their tent on a smoldering summer day, the former workers of FPI in Akkar admit that they allowed the union to weaken and almost disappear before their dismissal. After years of letting management pick the union leader, of turning their heads when the factory was kept from working at full capacity on “surprise” inspection days, for accepting the hours, the conditions and the pay they now think was so unfair, they say they feel a shard of remorse and even shame.

At present, it is looking unlikely that the workers of Future Pipe will get what they want, as they have been effectively abandoned to their fate by the country’s union leaders and the Lebanese state.

“Whatever pretext is being used for throwing these people out I think they have the right to decent jobs and the right to discuss their own future,” says the ILO’S Hamdan. “Whenever there is some sort of summary dismissal, whatever pretext, whether economic or technical, it should be negotiated with the workers, which did not happen.” He sighs: “I am very supportive of their demands, but it’s not the commune of Paris.” 

November 26, 2010 0 comments
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Editorial

The road carnage must end

by Yasser Akkaoui November 26, 2010
written by Yasser Akkaoui

Last month the son of good friends of mine was killed, hit by a car as he crossed the street on the way to school – his life cut short at just 17 years of age. The same week he was killed I heard that at least another half dozen others were also killed in vehicle accidents. As a conservative estimate, almost 7,000 people have lost their lives on Lebanon’s roads since 2000, and thousands more injured.

Were the roads kept up properly, and even the most basic safety rules enforced by the authorities and adhered to by drivers, the vast majority of these individual tragedies could have been avoided. 

The human cost of this carnage is incalculable.

Where we can begin to quantify the loss, however, is in strain on the medical and insurance sectors, and the loss of economic productivity. Antiquated cars speeding down badly paved roads is also bad for the environment. On many levels, the malaise on our roadways impacts our lives.

It also helps steer away foreign investment and foreign human capital – who wants to move to a place where their family is threatened daily by a nation of irresponsible morons playing bumper tag?

And while foreigners can choose to stay away, most Lebanese have little choice but to remain here and run the gauntlet each and every day they venture out on our lawless roads.

In the same week as the fatalities were piling up, Lebanon’s Internal Security Forces General Directorate issued figures showing traffic fatalities had dropped somewhat compared to previous years. With fatalities still ludicrously high, however, this is no reason celebrate.

Ironically, it is only the fact that our roads are in such bad condition that the body count is not higher. Imagine the death toll if we had European-style highways on which Lebanese drivers could give full expression to their juvenile need for speed.

The government must act. Lebanon should not be a country where children have to risk so much just to cross the street, fearing drivers who, by and large, conform to no road regulations and who know that law enforcement agencies will do nothing to oblige them to. This must end.

How many people have to die before the state wakes up?

November 26, 2010 0 comments
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ElBaradei’s boycott gamble

by Josh Wood November 3, 2010
written by Josh Wood

In Cairo’s Garbage City — as with many other places in Egypt — there is little optimism about the upcoming parliamentary and presidential elections. “We don’t know anybody. We only know Mubarak,” says Hani Shanouda, a 26 year-old member of Cairo’s 60,000-strong Coptic Christian garbage collecting community, the Zabbaleen. Like many others in this slum, Shanouda will most likely not be voting on either ballot.

In Egypt’s current situation it is increasingly difficult to discern between those who did not vote as a political statement and those who stayed away from the polls for other reasons. In 2005’s parliamentary elections, less than nine million Egyptians voted — representing almost a third of registered voters but only about 11 percent of Egypt’s population of 77.5 million at the time. The presidential elections that year saw only seven million go to the polls.

There are a number of reasons why Egyptians don’t vote. A lifetime of rigged elections and quasi-dictatorship makes voting seem inconsequential — Egypt’s young population means that, like Shanouda, the majority of Egyptians have never experienced a regime other than Mubarak’s and his National Democratic Party, which have ruled since 1981. Also, with 40 percent of the country living on less than $2 per day, simply putting food on the table often trumps political concerns.

A boycott of November 28th’s parliamentary polls  has been urged by Nobel Prize winner and former International Atomic Energy Agency chief Mohamed ElBaradei. He returned to Egypt with political ambitions earlier this year and says a poor show at the polls will expose the fraudulent nature of the country’s elections and spur democratic reform.

However, ElBaradei has been accused of being out of touch with Egypt’s masses. Calls for a boycott could give these accusations credence, showing that ElBaradei’s brand of opposition is more akin to the flash-in-the-pan, internet-based, intellectual-driven opposition groups composed of the upper and middle classes, such as the ‘April 6 Movement’ that caused a small stir in 2008.  While Western observers may applaud ElBaradei’s calls for a boycott as a brave step toward democracy, it could prove entirely detrimental to his movement and leave him on the outskirts of Egypt’s political arena.

Attempts by ElBaradei’s National Coalition for Change to get the country’s numerous opposition groups onto the same page have been hindered by the Muslim Brotherhood, who will field their own candidates in November’s elections. With the group still officially banned by the Egyptian government, Brotherhood candidates have run as independents in the past and currently hold 88 out of 454 seats in parliament, making the Islamist party the strongest officially-represented opposition movement in the country.

Unlike ElBaradei, the Brotherhood is more in touch with ordinary Egyptians and has built much of its support base through providing community services to those ignored by the state. While remaining cautious in the political realm the Brotherhood has still managed to make significant political gains, as evidenced by the number of seats it occupies in parliament.

For any opposition groups though, the election cycle — which starts this month — will be an uphill battle. The Egyptian government has already begun cracking down on dissenters, arresting many Brotherhood members in recent weeks. In October, the government announced that companies that send out mass text messages would require a license — a blow to the opposition, which relied heavily on SMS to mobilize supporters in a country where 60 million people have mobile phones. Despite calls for election monitors from Egyptian civil society actors, the United States and other international entities, it looks unlikely that any such measures will be taken.

Whatever the media hype, anti-Mubarak protests this year have been small and tame compared to the tens of thousands of demonstrators that ground Cairo to a standstill in years past. In this atmosphere, prospects for opposition gains remain slim, and thus it is unlikely that any real change will happen in Egypt soon.

Still, with next year’s presidential elections likely to be a wash (in 2005, Mubarak won a whopping 88.6 percent of a vote widely regarded as rigged), this month’s parliamentary elections are the best shot opposition groups have at making any real gains in the near future.

JOSH WOOD is a freelance journalist based in Beirut

November 3, 2010 0 comments
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Tea Party topography

by Michael Young November 3, 2010
written by Michael Young

This month’s mid-term elections in the United States will show us the direction the country will head in the coming two years and indicate the future shape of American foreign policy, particularly in the Middle East.

One factor determining electoral outcomes will be the fate of the disparate Tea Party movement, which has disturbed the Republican Party hierarchy and liberal-left America alike. And yet shorn of its more troublesome qualities, including its embrace of the opportunistic, demagogical former Republican vice presidential candidate Sarah Palin, the shift toward the religious right and its increasingly nativist reflexes, the Tea Party is somehow a healthy initiative. Many American voters are understandably worried about the potential tax burden imposed by the rescue package for the financial crisis of 2008, as well as the high cost of Obama’s healthcare policy.  

The Tea Party — a loose gathering of groups sharing a dissatisfaction with government as it is being run today — was named for the Boston Tea Party of 1773, when American colonists protested being taxed by a British parliament in which they were not represented. The mantra “no taxation without representation” has entered the American political lexicon and is at the heart of the democratic capitalist social contract. Congressional elections will show whether President Barack Obama passes that test.  

But where the Tea Party will be tested, and where it must pass its own test, is in the particulars of a capitalist culture. Will the movement be able to avoid the pull of its extremes and defend free minds and free markets? And what will this mean for the United States in the world?  

Populist and progressive movements have a venerable legacy in the US. The notion of reform, like the implicit mistrust of state power, is a recurring theme in American history, particularly in the late 19th and early 20th centuries, when the US was transformed from an agrarian society into an industrial-capitalist one. As Richard Hofstadter observed in ‘The Age of Reform,’ many of the demands of the American reform movement ended up being implemented even if the political parties that gave rise to such demands disappeared without a trace.

But there was always a nativist quality to these movements standing against what Americans have regarded as part of their national character: domestic inclusiveness and an urge to spread liberal values and freedom abroad. Likewise, the Tea Party movements have tended to look inwards. They have supported limiting immigration into the US; their fear of government over-expenditure has made them increasingly wary of costly foreign adventures, not least the wars in the broader Middle East; some polls suggest they are mistrustful of Obama’s engagement of Muslim countries; and on social issues Tea Party groups lean toward the conservative.  

The significant role played among Tea Party groups by Palin and other right-wing spokespersons, like the organizational power of the religious groups, means the movement is not likely to veer greatly from this path. However, to reduce everything to right-wing, left-wing terms is to over simplify. The Republican establishment has also been a target of the Tea Party. In that sense, the movement doubles as an anti-elite phenomenon.

America is unlikely to be overcome by the Tea Party, and the movement’s haphazard structure may ultimately prove to be its downfall, unless it can be reorganized behind a presidential campaign. This seems to be Palin’s aim. However, even if the movement were to concentrate on advancing legitimate demands for greater fiscal discipline, the outcome would be a more modest America abroad, both militarily and in the spread of liberal values.

 Oddly enough Hofstadter’s observations about American reform movements of the past may apply once again. Though the Tea Party is hostile to Barack Obama, the president appears to have largely accepted the fiscal restraint argument to justify cutting American foreign expenses, especially in Iraq and even Afghanistan, where he has sought mightily to avoid an open-ended conflict that would dramatically drain American resources. The US is changing, and not surprisingly, the Middle East is changing as a consequence.  

November 3, 2010 0 comments
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Cityscape’s sinking feeling

by Angela Giuffrida November 3, 2010
written by Angela Giuffrida

The man playing the gold-plated piano on the Meydan stand at this year’s Cityscape exhibition in Dubai was reminiscent of a scene in the blockbuster film Titanic: as the famous ship sunk, the band played on.

The pianist was the only reminder of the exuberance that used to define this property show. Once upon a time, crowds came from near and far to get a glimpse of the ambitions of Dubai’s property developers.

Enticed by glitzy displays of model cities, they queued for hours at stands, eager to put down a deposit on a property that was yet to be built and which they probably couldn’t afford. Developers spent millions of dirhams pulling out all the stops to ensure their wares received the attention they needed. As competition intensified towards the middle of 2008 in the run-up to that year’s extravaganza, the chief executive of one newly created developer even alluded to the possibility of the singer Madonna gracing his stand with her presence at the event that October. While celebrities including the actor Antonio Banderas and racing driver Michael Schumacher were actually seen doing the rounds of the exhibition halls that year, there was no sign of the material girl. However, even as new, flashy projects were announced, signs of nervousness among investors began to creep through the showcases of Cityscape Dubai 2008. Just a few weeks after the show, which has now been rebranded Cityscape Global, property prices in some areas of Dubai fell by as much as 40 percent.

The global financial crisis had caught up with the emirate. By the end of that year, hundreds of projects worth hundreds of billions of dollars were cancelled or put on hold while thousands of jobs were cut across the property and affiliated construction sectors. The same developer who claimed a close connection with Madonna suddenly went out of business.

Developers who had once enjoyed easy credit had to wake up to the new reality, and quickly. Rather than rushing to the bank to cash deposit checks, they were instead summoned to deal with disputes raised by unhappy property buyers, who were coming to terms with the reality that they had plowed money into buildings that would never be built.

Strapped for cash, developers have also struggled to make payments to their construction suppliers, with many taking legal action.

Still, it hasn’t all been bad news. A lot has happened over the past two years to clean up the property sector. Dubai’s Real Estate Regulatory Authority has been swift to implement new regulations, while developers keen to protect their reputation have helped property buyers consolidate their investments.

Projects are also starting to be revived, and Nakheel, the Dubai World-owned developer that is responsible for a large share of the emirate’s property development, said at the end of September it would complete its debt restructuring by the end of the year. Tamweel, one of the country’s largest mortgage providers, will also soon resume lending after Dubai Islamic Bank increased its stake in the firm.

There are still challenges ahead, with a potential oversupply of property one of the biggest threats to recovery. The most startling information to emerge from this year’s Cityscape was that another 9,000 homes would flood the market by the end of this year, while a further 35,000 homes will come on stream next year, according to figures from property consultant Jones Lang LaSalle.

But probably the greatest hurdle is reviving confidence among property investors. Thousands of people have been stung, with many now using events like Cityscape to vent their frustration on hard-to-reach developers or find fellow investors in the same predicament. Buyers will only re-enter the market when they believe the issues have truly been resolved.

The collapse of Dubai’s property sector can hardly be compared to the catastrophe of the Titanic tragedy in terms of loss of life, but it’s going to take a lot more than soothing music to lift the spirits of those who have had their fortunes sunk.

ANGELA GIUFFRIDA is a property correspondent in Dubai

 

November 3, 2010 0 comments
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Greeks bearing gifts

by Peter Grimsditch November 3, 2010
written by Peter Grimsditch

 

The fallout from Ankara’s continuing and widening estrangement from Israel has seen some unaccustomed diplomatic bedfellows cozying up together in recent weeks. Close military ties between the two states were ruptured when Turkish Prime Minister Recep Tayyip Erdogan ordered a ban on joint military exercises. He also insisted on searching for sources other than Israel for unmanned aircraft used in assaults on Kurdish guerrillas based in northern Iraq.

The rift originated from Turkish protests against the Israeli attacks on Gaza in the winter of 2008-2009 in which 1,400 Palestinians were killed. It reached a crescendo in May of this year when Israeli commandos stormed a Turkish-led aid flotilla heading for Gaza, killing nine Turks (including a dual United States-Turkish citizen) and seriously wounding around 50 others.

Bereft of its usual war games partners, the Turkish Air Force teamed up with the Chinese People’s Liberation Army last month for exercises at Konya in Central Anatolia. The pairing was bizarre in that it appears to be the first time that a member of North Atlantic Treaty Organization (NATO) has engaged in military exercises with the Chinese. According to the United States Defense Department, any worries that Turkey might reveal military secrets were carefully avoided by their use of F4 Phantom warplanes instead of the much more modern F15. Since the F4 was first manufactured in 1958, this seems to have been a prudent course. Not that the Turks were likely to learn too much either. For a latter-day replay of an aerial Agincourt, the Chinese used Su-27 Flankers, which are of a slightly newer 1982 generation of fighters.

The exercises coincided with a visit to Turkey by Chinese Premier Wen Jiabao, at the head of a delegation seeking to triple two-way trade to $50 billion a year by 2015.

Meanwhile, Israel accepted the opportunity to partner for aerial combat practice with Turkey’s erstwhile nemesis, Greece. As the two air forces conducted a joint drill over southern Greece, politicians on the ground signed the first Greek-Israeli bilateral pact for 60 years. This is a turnaround for Athens, which has traditionally been noted for its Arab sympathies more than its leanings toward Tel Aviv. This may well have been why two of the ships in the eight-strong Gaza aid flotilla in May were crewed by Greeks and one, Eleftheri Mesogios, was even Greek-flagged. The ships were carrying humanitarian aid and trying to break the military blockade imposed on Gaza by the Israeli military.

Although all the flotilla deaths were on the Turkish vessel Mavi Marmara, the Greeks on board the Sfendoni and the Eleftheri Mesogios were also given a rough welcome. According to a report commissioned by the UN Human Rights Council and published at the end of September, passengers and crew on both vessels had taken a decision to offer only passive resistance to their Israeli boarders, for example standing with linked arms around the bridge. Despite this, says the report, many were beaten. One woman who refused to hand over her passport was punched in the stomach, a man had his leg broken and the captain of the Sfendoni was kicked in the back, punched in the face and burned with an electroshock weapon.

The report, labeled by Aaron Leshno Yaar, Israel’s permanent representative to the UN Mission in Geneva, as “superfluous… unnecessary and unproductive” before it was published, goes on to catalogue a range of ill-treatment received by flotilla members once on

Israeli soil. These incidents include handcuffing seriously injured patients to hospital beds, confinement for hours on end without access to toilet facilities, physical and verbal abuse as well as the confiscation of personal items, including money intended for distribution among the Palestinians. The report also claims that much of the money has not been returned — nor indeed have cameras, recording equipment and other personal belongings been given back. This would make Israeli civil and military security personnel common thieves as well as any other charges that could be brought against them.

Yet, none of this seemed to interfere in the development of the closest contacts Israeli and Greek politicians have had in six decades. Perhaps it depends on what kind of Greeks are bearing what kind of gifts, and to whom.

PETER GRIMSDITCH is Executive’s

Istanbul correspondent

 

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The Lebanese art of distraction

by Sami Halabi November 3, 2010
written by Sami Halabi

 

For several excruciating months the Lebanese press has been subjecting us all to a whirlwind of speculation over the prospect that the Special Tribunal for Lebanon (STL) will issue an indictment accusing, in one way or another, Hezbollah of being involved in the 2005 killing of former Prime Minister Rafiq al-Hariri and many others. It is now all too clear that the “informed sources” quoted in various media outlets who told us with such certainty that an indictment would be issued by mid-October were wrong. This deadline passed without incident and yet the media conjecture continues, fueling the perpetual fear of sectarian civil strife.

The debate has reached fever pitch, with everyone from the American Secretary of State Hilary Clinton to Iranian President Mahmoud Ahmadinejad throwing in their two cents, and politicians from both sides of Lebanon’s political divide holding endless press conferences. But as the STL has descended into farce, Lebanon’s real problems have — as usual — taken a backseat.  

As we wait for Damascus, Riyadh, Tehran and Washington to decide on our “post-indictment” fate and our supposed leaders bicker over “false witnesses,” we should pause to ponder why we have allowed the STL to take progressive policy reform hostage. Scratch beneath the surface and what has everyone so hot under the collar reveals itself as little more than political posturing, hyperbole and the dark arts of distraction and deception.

Firstly, it is nothing less than comical to talk about witnesses before an indictment is issued, as no one yet knows whose testimony will be considered. The prosecutor has not announced who will be used as a witness or who will be accused; the furor is supposition.

What’s more, calls to try the ‘false witnesses’ in the Judicial Council — a permanent tribunal of five senior judges and no jury that adjudicates threats to national security based on a cabinet decision and therefore violates international judicial norms — is a testament to how far we are from real judicial reform or being able to ever realize “the truth.”

Even more illogical is the dichotomy at the heart of Hezbollah’s position: On the one hand the party has called for those who tried to contaminate the STL with false testimony be held accountable, but on the other it has accused the tribunal of being illegitimate and called for it to be scrapped. Hezbollah emphasizing the importance of the veracity of witness testimony automatically confers some degree of legitimacy to the proceedings and, ultimately, the outcome they lead to. They can’t have it both ways. 

On the other side of the fence, the so-called Hariri camp recently admitted politics motivated it to wrongly accuse Syria of involvement in the 2005 assassinations, while rumors abound of a collusion between the March 14 movement and the original prosecutor. Now, incredibly, they insist that the institution’s credibility has not been damaged.

Given the absurdity of these and other acts in the STL tragicomedy, the fact that both political camps continue to propagate the idea that at any moment the tribunal could cause the government to crumble, taking the country with it, is telling of how far they will go to avoid doing their jobs.

By contriving conflict with talk of violence in the streets and the collapse of the state, Lebanon’s politicians have conveniently drawn people’s attention away from the fact that their water tanks are empty, their food is rotting in the fridge as electricity cuts for hours in the heat and their cars are stalled in choking traffic.

It’s no coincidence that when these issues began to boil this summer, the STL card was played; nor will anyone be surprised when it’s promptly shuffled back into the deck. Everyone already knows that Lebanon’s bilad al kubra, the ‘countries of influence’; do not find sectarian conflict in their interests at this juncture and that no one, even if they wanted to, can fight Hezbollah.

By that time, our politicians will likely have found another excuse to keep us scared into submission and their pockets lined with our money. At some point the joke will get old. But until then, it looks as though we will all have to be content with being laughed at.

SAMI?HALABI is

deputy editor of Executive Magazine

 

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When peace is the target

by Nicholas Blanford November 3, 2010
written by Nicholas Blanford

Two separate editorials on the same day in the Israeli press last month underlined the confusion that informs analysis on Syria’s intentions regarding the resumption of peace negotiations with Israel.

The right-wing Jerusalem Post castigated Syria for its “derisive” response to attempts by the Obama administration to engage with Damascus after the years of isolation under George W. Bush. A day after George Mitchell, the United States Middle East envoy, met with President Bashar al-Assad in Damascus to further hopes of a resumption of Israeli-Syrian accord, Russia confirmed it would honor its agreement to supply Syria with P-800 Yakhont anti-ship missiles. The Jerusalem Post surmised that the missiles would probably end up in Hezbollah’s hands, enabling it to fulfill General Secretary Hassan Nasrallah’s vow in May to target shipping along Israel’s entire coastline.

In fact, Hezbollah probably already has acquired anti-ship missiles larger than the Iranian Noor/C-802 system it used in 2006 to disable an Israeli warship off the Beirut coast. Iran produces a longer-range version of the Noor called the Raad, which could theoretically hit Israeli shipping off the coast of southern Israel from launch sites as far north of the border as Beirut.

The Jerusalem Post also noted that Assad “made it clear with whom his loyalties lie” when he met with Mahmoud Ahmadinejad as the Iranian president stopped briefly in Damascus a day after Mitchell’s visit.

“It has become abundantly clear that the Obama administration’s attempt to ‘engage’ Syria… has been a resounding failure,” the Post said. In contrast, the liberal Haaretz newspaper interpreted Ahmadinejad’s visit to Damascus as showing his “fear that Syria will weaken its strategic relationship with the Iranians.”

Haaretz blamed Israeli Prime Minister Benjamin Netanyahu for the lack of progress on the Syria-Israeli track and urged him to heed the advice of the Israeli military establishment, including Defense Minister Ehud Barak, and accept Assad’s offer to resume talks. The conflicting viewpoints of these two Israeli newspapers may have earned a smile of satisfaction in Damascus. The Syrian regime is a master at fence-straddling, turning what normally would be a tactical ploy into a permanent strategy. Playing all sides at once ensures a degree of relevance and a steady queue of regional and international envoys knocking on Assad’s door. Critics of Syria insist that the regime’s ambiguity disguises an insincerity over its commitment to a peace deal with Israel. Peace would alter the geo-strategic environment of the region and compel Syria to make some hard decisions, such as reconfiguring its relationship with Iran and, therefore, also with Hezbollah.

There may or may not be some truth in such analyses, but we will not know because successive Israeli governments in the past decade have shown almost no interest in forcing Damascus to make those hard choices by pursuing peace. The last meaningful negotiations between Syria and Israel were in early 2000. Even then, Barak, the prime minister at the time, who enjoyed a broad mandate to pursue peace and the active support of the Clinton administration, got cold feet and could not bring himself to offer what he knew Hafez al-Assad wanted — the return of the Israeli-occupied Golan Heights to Syria — fearing it would not be accepted in Israel. No successive Israeli prime minister has shown any genuine interest in resuming talks with Damascus. Why would they? The border with Syria has been quiet since 1973.

The US is incapable of compelling Israel to talk to the Syrians if the Israelis are not interested. Given Israel’s succession of frail government coalitions, no prime minister is willing to risk his job for the sake of peace with Syria. Israeli leaders already have to contend with an increasingly militaristic and violent settler movement in the West Bank, so why antagonize the settlers in the Golan Heights as well?

I was once told an anecdote that well illustrates Israel’s reluctance to change the status quo with Syria. During a meeting of the Israeli cabinet in 2004, then Foreign Minister Silvan Shalom recommended attacking Syria and changing the regime. Ariel Sharon, the then prime minister, shook his head and said that that was a very bad idea.

“If we did that one of two things would happen,” he said. “Either we get the Muslim Brotherhood running Damascus or we get a democracy, and then we would have to make peace with it.”

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The Delhi belly games

by Paul Cochrane November 3, 2010
written by Paul Cochrane

 

Hosting a global sporting event can do wonders for a country’s image, proving it’s a sophisticated, advanced nation able to meet demanding international standards and put on a good show. Think of China hosting the 2008 Beijing Olympics or the World Cup in South Africa this year.

But if the organizers are floundering just weeks before an event starts and negative publicity starts kicking in, a country’s reputation can be dragged through the gutter. India’s mismanagement of the Commonwealth Games (CWG) in New Delhi last month is such a case.

Qatar, which is bidding for the 2020 Olympics and the 2022 World Cup, would do well to learn from India’s mistakes if it is not to fall into the same trap.

Whether a country likes it or not, dirty laundry will be aired as every minute detail of the event falls under the microscope of the global media.

India spent some $9 billion on the CWG. Stories abound in the press about corruption, the working conditions of the 100,000 construction workers, the estimated 1,000 work-related deaths, and the 400,000 Indians that had their homes demolished to make space for the venues.

Some of India’s largest construction companies have also had their names tarnished for flouting numerous work-related laws, among them the United Arab Emirates-India joint venture Emaar MGF. At the end of October India ordered the confiscation of the companies’ $41.3 million bank guarantee and brought legal action after “irregularities” and deficiencies were found in the CWG village.

Many Indians are embarrassed by the way the CWG has been handled, and rightfully so. A country cannot just paste over the cracks and hope no one notices. Ironically, India knows this only too well as it struggles to promote itself as an attractive investment and tourist destination. After all, India has spent millions of dollars on the very professionally done “Incredible India” ad campaign, but your potential tourist is invariably put off by the stereotype image of poverty and bad hygiene. It is perhaps no surprise then that India only receives a paltry 5 million foreign tourists a year; Egypt by comparison gets 13 million.

Indeed, security and hygiene were major concerns for CWG athletes, with several stars pulling out early and more threatening to do so in the week up to the event with facilities unfinished, a footbridge collapsing and a cobra found in an athlete’s room.  

Things did not go much better once the event started. On the second day there was a bomb scare hoax and then the infamous Delhi belly started setting in, particularly among swimmers, attributed to pools’ dubious water quality. English sprinter Mark Lewis-Francis chose not to bite on his (silver) medal on the podium, as is customary. “I don’t really want to bite it because I don’t want to get Delhi belly,” he told reporters.

India has not exactly helped itself either when trying to justify the sub-standard facilities at the Athletes’ Village, with an off-the-cuff remark by Organizing Committee General Secretary Lalit Bhanot causing much mirth: “Everyone has a different standard of hygiene. The rooms of the Games Village may be clean according to you and me, but they [the West] have some different standard of cleanliness.”

If Qatar gets either bid for the world’s biggest sporting events, it will be a colossal undertaking for Doha. Qatar certainly has oodles of cash to play with and could pull off a great show if the planning is right. Despite early doubts, the Gulf state pulled off the Doha Asian Games in 2006.

The Asian Games were very much a trial run for something bigger, and Qatar has embarked on an ambitious marketing campaign to convince the world it has what it takes. The Middle East has never hosted an event of such global proportions, which lends weight to Qatar’s bid. Where else in the region could pull this off, particularly taking into account security concerns? Only the UAE springs to mind; Bahrain has enough on its plate with Formula 1. If it learns from India’s mistakes, Qatar may just have a sporting chance.

PAUL COCHRANE is the Middle East

correspondent for International News Services

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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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