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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

 

November 3, 2010 0 comments
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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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Society

Executive Insight

by Mark Helou, Zeina Loutfi & Ramsay G. Najjar November 3, 2010
written by Mark Helou, Zeina Loutfi & Ramsay G. Najjar

From the primitive sounds and onomatopoeias of our prehistoric ancestors to the profusion of messages conveyed by media channels, online networks and satellite televisions, language has always been, and remains, by far the most important tool of communication. 

Language brings people and nations together while channeling thoughts and ideas to fuel progress on all levels. Many theorists have even posited language as the source of human intelligence, suggesting that we do not speak because we are intelligent, but that we became intelligent precisely because of our ability to speak.

Either way, it is clear that languages all over the world are meant to accompany the progress of civilization and intelligent thinking, continuously evolving and changing in order to keep up with the times and remain a driver of progress and a vector of ideas.

Despite that, we still see language authorities spending much time and energy trying to ward off change through fighting influences and “infiltrations,” or what they deem as “contaminations” by other languages.

A pertinent example would be France, which has resorted to many ways to protect the “exception culturelle Française” against the perceived pervasion of English words. This went from forcing advertisers to include the translations of all English words on billboards and creating new French terms aimed at expressing concepts that originated in English, to overtly criticizing French politicians who dared to express themselves in English. Needless to say, these attempts have so far proven to be futile, as any Frenchman would most probably call his BlackBerry a ‘smartphone’ and not an ‘ordiphone’, be a fan of ‘culture mainstream’ and watch ‘live shows’ thanks to his ‘premium’ TV subscription. Although this situation is likely driving the old sages of L’Académie Française crazy, one cannot escape reality.

Evading evolution

When it comes to the Arabic language, the issue is much more complex but needs to be addressed if the language is to remain future-proof and help advance Arab civilization and its global role.

Being the language of the holy Koran, one can understand people’s reticence of and even outright opposition to touching the Arabic language. Much more than a language, Arabic has always been one of the most important elements binding the Arab world together in this immense geographic area, stretching from the Gulf to the Maghreb.

Its religious significance has rendered it an inherent part of the Arab identity — perhaps one of the few identity elements on which Arab nations still agree, reinforcing the chauvinistic attitudes aimed at “protecting” it against perceived threats from other languages. Yet, one can also argue that when God chose the Arabic language, he did not choose only Arabs to be Muslims, with hundreds of millions of non-Arabic speaking Muslims around the world. Shouldn’t the language of Islam be as open as Islam itself?

Why are we working so hard to petrify it and close it off to natural change? Why should words like ‘shayyick’ (to check), ‘etdawwash’ (take a shower), ‘gawgil’ (to “Google”) or the familiar ‘rimote’ be so frowned upon by purists and considered a threat to the very core of Arab identity and culture?

Going back to the example of other languages, we cannot but think that if the French or the English had “protected” their languages centuries ago, they would still be speaking Olde English and Vieux François.

As for the Arab world, one wonders about the prudence of erecting such barriers, especially when the ‘Golden Age’ of the Arabs coincided with our highest level of linguistic exchange with neighboring states and empires. Back then, Arabs integrated a myriad of Greek, Latin, Persian and Turkish words such as ‘astrolabe’, ‘burtuqal’, ‘jughrafya’, ‘sirwal’ and ‘baqdounis’, and reciprocally enriched other languages with words that are still used to this day, such as ‘alcohol’, ‘alchemy’, ‘algorithm’ and ‘gazelle’. This never once affected the sanctity of the Koran or the integrity of the Arabic language.

Unfortunately, this tradition of dynamic cross-fertilization and openness is clearly having a hard time nowadays, as seen in the schizophrenic linguistic behavior: on one hand, people regularly make use of foreign words such as ‘computer’, ‘email’, ‘cornflakes’ and ‘zen’ in their everyday life, while on the other, language authorities and institutions are investing tremendous resources and energy to literally create new Arabic words matching these new concepts. It is hard to believe that such efforts will succeed in our region when they are obviously failing in other parts of the world, including in such a linguistically chauvinist country as France. One cannot take the same actions and expect different results.

Missing the point

Instead of focusing on reinventing the wheel by trying to come up with purely Arabic words for innovated concepts and ideas, shouldn’t we instead focus those resources on trying to create new concepts and generate new ideas ourselves? The belief that preventing the use of foreign words constitutes a rampart for the Arab identity is an illusion, and only serves to deflect attention from the real problem, which obviously lies elsewhere.

Arab identity was less endangered by the fact that it did not have a homegrown word to describe ‘penicillin’ than by the fact that it did not invent it in the first place.

Besides the fact that the obstinate desire to reject the influence and assimilation of foreign languages and cultures constitutes the prelude for the establishment of a closed, static and self-centered civilization, such a sectarian attitude can lead to an unhealthy dichotomy between everyday language practices, which are spontaneously open to other influences, and a “theoretical” language that only exists in books and is therefore bound to fall victim to the lack of usage, much like what happened to the Latin language.

The flourishing of a civilization stems from its ability to efficiently and intelligently follow the course of time by continuously and spontaneously enriching itself with new elements while being able, in turn, to shed its light on other nations and societies. This give-and-take scheme also applies to languages, especially Arabic, which fortunately happens to be spoken in a key geopolitical area where numerous economic, social, cultural and political currents converge.

The rising potential and influence of Arab media and communication channels can become key to such a success, as they will help further anchor the Arabic language in this era, and could help slowly revive a modern Golden Age whereby this region would once again become an incubator of knowledge, creativity and ideas that it can communicate to the rest of the world.

 

 

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Shebaa still simmering

by Nicholas Blanford November 3, 2010
written by Nicholas Blanford

 

In a recent conversation with a Hezbollah fighter, up popped the subject of the Shebaa Farms, that sparsely populated mountainside tucked into Lebanon’s southeast corner.

The fighter hinted that attacks against the Israeli troops manning a handful of outposts on the lofty peaks of the Farms could soon resume after a hiatus of more than four years. “We just have to deal with the internal front first,” he said, referring to the looming crisis over the Special Tribunal for Lebanon and the expected, possibly imminent, indictments against members of Hezbollah.

There was a time when the Shebaa Farms was viewed as a possible catalyst for a regional war between Hezbollah, Israel and Syria. Ironic, really, given that before Israel withdrew its forces from South Lebanon in May 2000, few Lebanese even knew where the Shebaa Farms lay.

The area was occupied in 1967 when Israel took the adjacent Golan Heights during the Six Day war. While Israeli forces pushed eastward deeper into Syrian territory, their land grab in the northern Golan was checked by the border with Lebanon. However, they discovered that there was some ambiguity over exactly where Syria ended and Lebanon began, thanks to the laxity with which the French mandatory authorities had delineated the joint border half a century earlier.

The Shebaa Farms consisted of some 14 farmsteads populated mainly by Lebanese residents of the eponymous village and its neighbor, Kfar Shuba. During the mild summer months, the villagers farmed the flatter reaches of the valley’s upper slopes. During the cold winter months, most of the farmsteads were abandoned as their occupants descended to warmer climes in the valleys below. The Israelis initially took over the farms on the lower slopes, but within five years had seized the rest of the mountainside to dislodge Palestinian guerrillas who had set up small bases there.

The Shebaa Farms generally remained forgotten except in the memories of a handful of aging farmers yearning for their upland pastures. But in spring 2000 as Israel prepared to end a 22-year occupation of Lebanon, Israel’s determination to keep control of the area provided a loophole for Hezbollah to justify retaining its weapons.

The Shebaa Farms campaign was launched 10 years ago last month, on October 7, 2000, when Hezbollah abducted three Israeli soldiers in a well-planned operation. Not a shot had been fired in anger since the Israeli troop withdrawal five months earlier. And for one Lebanese friend who had lived in the border district all his life, the resumption of hostilities could not have come soon enough.

“Habibi Nick, I am so happy, so happy,” he said, grabbing my shoulder, as explosions from Israeli shelling echoed across the hillside near Kfar Shuba. “For 30 years I have been listening to the sounds of war… the silence in the south over the past five months since the Israelis left has been driving me crazy!”

The kidnapping heralded a sporadic campaign of roadside bomb ambushes, anti-tank missiles attacks and mortar and rocket bombardments over the following six years. The attacks lacked the rigorous intensity of the final stages of Hezbollah’s resistance campaign in South Lebanon, when as many as 300 operations a month were recorded. But Hezbollah always acknowledged that the Shebaa Farms attacks were ‘reminder operations’, intended as an annoyance rather than a concerted effort to oust the Israelis through force of arms.

The Farms soon became an almost-legitimate theater of combat where Hezbollah and the Israeli army could vent steam without risking a broader escalation, such as the one that occurred when Hezbollah strayed from the Farms to kidnap two soldiers near Aitta Shaab in July 2006.

The 2006 war changed the reality in South Lebanon and for the past four years Israeli soldiers in the Shebaa Farms have enjoyed a quiet existence. Despite Hezbollah’s preoccupation with domestic political events since the end of the war, the fighters in the south remain completely focused on the confrontation with Israel and on preparations for the next war.

Whether Hezbollah does resume attacks in the Shebaa Farms remains to be seen. But if they do, it should bring a smile of relief to my war-happy friend in South Lebanon.

NICHOLAS BLANDFORD is the Beirut-based

correspondent for The Christian Science

Monitor and The Times of London

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Real Estate

Q&A Namir Cortas

by Rayya Salem November 3, 2010
written by Rayya Salem

 

Four years from now, Beirut will have a new community adjacent to Saifi Village. District//S, a 50,000 square meter residential and retail development, will occupy a 13,200 square meter site and promises 22 five-story luxury buildings, with cafes and shops facing onto Italian-style courtyards. Executive sat down with Namir Cortas, chief executive officer of Saifi Modern sal, the Lebanese company that owns District//S, to find out more, while Anthony el-Khoury, CEO and co-founder of the property development firm Estates sal, joined the conversation to offer a sneak peak behind the curtains of District//S.

E Why did you decide to devote the plot to low-rise buildings instead of building high-rise towers like so many other developers have done in the Beirut Central District (BCD)?

NC: This project is in the BCD so already it has to fit with the general master plan. It was an obvious extension of Saifi village and therefore we, and the master planner, decided that the best use for this land would be a more contemporary interpretation of the same original urban directive. Also, the land allows for a district, as it eventually came to be called, because of its size and location.

This site links Saifi Village, Gemmayze and Martyr’s Square and is the gateway to the shopping and central area. The solution that we came up with is nothing revolutionary but essentially creates a city-like atmosphere through functional aspects as opposed to just building a high-rise or a tower. This is why we call it a city within a city. A city is about how people live, which is why we use this slogan: “architecture is inhabited culture.”

E  How did you finance the project?

NC: Like other developers, we use investors, financial backing from several banks and presales to finance it. We’ll tell you [the proportion] when it’s over!

E the architect, Graham Morrison of London-based Allies & Morrison Architects, likened the feel of the project to “simple Italian palazzos” whereby the mixture of courtyards and alleys with residences leads to “inside/outside living.”

Is this how you see it?

NC: A modern architectural language has been used to provide project specific solutions. The intent is to preserve traditional features like raised balconies, loggias, raised gardens, terraces [and] meandering alleys. These are all local features but they have not been repeated here in what I call a generic matter. They have been applied in ways that have been adapted to the project itself so that it would have sufficient harmony and patterns, but within such patterns, be varied enough.

It’s a form of contemporary Mediterranean architecture — I wouldn’t call it Western or European [architecture], it is beyond that. This is now a global world and it’s more interactive.

E How is District//S laid out?

NC: Practically every building has a raised garden on the first floor. And some buildings have a garden on top, as well as on different levels. The ground floor is all retail: above the retail spaces starts the residential areas. There are no offices in this project. There is a cultural center and a gallery to show off artisan’s work and hold exhibitions.

E  Around 30 percent of the project has been sold – are most buyers Lebanese?

NC: All of our initial customers were Lebanese. There has been, more recently, some interest from others. We sold to one European and one Gulf person recently. I think [the Lebanese] will remain the main buyers and users because they are more likely to understand it better.

The Lebanese expatriates who bought [in District//S] are the kind that are constantly here, even if their work is outside. The idea that [local] Lebanese can’t afford an apartment is untrue, even though there is a disparity. Indeed, some Lebanese have become rich because they own property.

AK: You have people who bought [apartments] who didn’t know what the [final] project will look like. They bought solely based on the story we told them.

E  What was the role of G, the sustainability consulting NGO, in the project?

NC: Hopefully we will have a green neighborhood. We do that through G by adhering to certain guidelines, which we will use to obtain a [Leadership in Energy and Environmental Design] certification.

E  Tell us how you went about planning the penthouses. What are some of their amenities?

NC: The guideline for the area [dictates] the height of the penthouses or “sky villas.” We chose to have [higher buildings] only in certain locations, generally around the corners, to use them sparingly and to lower the density of the project, and give them the additional amenity of an adjoining terrace on the roof of the adjacent building. Each one has a pool, and they enjoy an open terrace area. We have sold one penthouse recently. But we notice there is higher demand on smaller units.

E  Is this trend for smaller apartments here to stay?

NC: This is a general feature we will see more of, partly due to demographics: there are younger people buying. Prices have gone up not just for property, but for construction and power and fuel. So the running costs of the larger apartments have become… a consideration in people’s decisions.

E  What kind of retail tenants are you targeting?

NC: Interest has been coming from various parts [of the retail sector]. This will be an attractive, arty area. A little like Saifi Village, but more animated. We expect to have more cafes, more walking space, galleries, gift shops and boutiques. It’s helped by the fact that all the internal alleys and courtyards are pedestrian.  Car access will only be to the underground [parking] or the external pavements.

E  Once the units are occupied, how do you plan to control traffic in the vicinity?

NC: We have one double-ramp [whereby two lanes can exit and two lanes enter] and one single ramp. Obviously we have done all the traffic impact research. We have been generous in providing parking spaces and provided more than what is required to address the needs, [something that has] not been sufficiently addressed by other developments.

E  In terms of design, how flexible are the interiors for end-users?

NC: We worked on the design of the project with input from our marketing and sales people and direct input from actual or potential clients. As such, aided by the shape and size, we designed the flats from the inside and then added the facade. This makes it easier to have modular solutions and I believe it has helped us come up with more adequate layouts for the interior. For instance, people can buy two apartments on the same floor and merge them.

E  Tell us about the process that the architects went through, since it was their first time working in Lebanon?

AK:  The architects came and visited Beirut, we invited them on several occasions. They visited all of Beirut and the old Ottoman sites, even visiting cafes to understand the lifestyle… how people interact. We want to preserve the ideas of the old style and modernize and create continuity for our heritage. They redesigned several models, in fact they adjusted it four times, to make sure even the sunlight and wind circulates well. They were very precise about the angles of the street corners, the views from each unit, and making sure the horizontal and vertical lanes that run throughout the plot are unobstructed so there are no blocked views from alleyways.

E the architect also mentioned that none of the buildings are parallel, creating informal alleyways between them…

AK:  We want to keep people interested by having different widths of pedestrian walkways. At the plot entrance they are 4 to 5 meters wide and then open up to 8 meters wide creating “meandering alleys,” and thus none of the buildings are exactly parallel.

NC:  When you live in such proximity, vibrancy has to happen.

November 3, 2010 0 comments
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Business

Change is in the airwaves

by Karim Sabbagh November 3, 2010
written by Karim Sabbagh

Over the past decade, the telecom industry has helped to fuel the digital transformation of entire industries, economies and societies. But now the sector is entering a more challenging time following years of significant growth.

In order to stay ahead of the game, operators must build the next generation of high-speed fixed and mobile networks to keep up with customer demand; doing so will require massive investments. At the same time, they must invest in innovation and the development of new strategic capabilities. But operators are hindered in these efforts. Their traditional sources of revenues are becoming commoditized and many are struggling to find new unique services to catch the attention of their customers.

To meet all these demands, operators must strive to build leaner, more adaptive, modular and increasingly complex business models. And they must acquire the capabilities needed to ensure that these new business models can succeed, even as they continue to invest in next-generation fixed and mobile infrastructures.

Forward-looking business models must be based on a deep understanding of three overarching trends that are driving the industry into the future.

The first trend is customer ubiquity. Consumers and businesses demand constant and universal access to digital applications and content: The more bandwidth and services that operators provide, the more their customers will consume. This demand will put huge burdens on operators’ current fixed and mobile networks. Data already makes up the vast majority of network activity; much of it driven by video streaming on the web and it just keeps growing: video streaming in the United States has increased by a hefty 78 percent per year since 2005. The continuing rise of mobile ‘apps’ — the hundreds of thousands of services available on smartphones and other devices everywhere — will only intensify the phenomenon of customer ubiquity. Operators will lose ground to technology companies like Apple and Google unless they find a way to cash in on the mobile app business, which is expected to generate $40 billion in revenue by 2014.

The second trend is technology modularity, in which networks, services and applications are rapidly evolving and shifting away from vertical integration toward modular, open systems. Different networks (such as fixed, wireless and broadband) will serve end-users directly, delivering the required ubiquitous connectivity. Both applications and service offerings such as on-demand movies and gaming will likely be based on systems that will essentially be independent from the infrastructure through which they are accessed. This means that parts of the entire system can be built not just by operators but by a variety of non-industry rivals, as they try to gain a share of future revenues.

The third trend is industry innovation. Operators used to focus on protecting their core business — the development of large-scale networks — rather than experimenting with smaller initiatives. As a result, they have left themselves vulnerable to a vast array of competitors developing apps and services.

New models for a new industry

Once operators understand the implications of these three trends, they must select, design and build new business models — and the accompanying capabilities — to respond to and benefit from them. There are four distinct business models that will shape the future of telecom operators:

Network guarantors use their network assets to provide widely available and open infrastructure and timely, reliable, cost-efficient services. Their primary customers are companies operating under the business enabler model, which can take advantage of their infrastructure to offer more advanced services to their own customers. This model will require operators to be efficient in their planning, provisioning and operations, and to offer high levels of quality in terms of network reliability and service levels.

The business enabler is a “double-sided” business model. On one side, it provides end users with the broadband services they need. On the other, it helps application and service providers manage their own businesses, providing them with wholesale broadband, managed services, transaction and billing support, and platforms such as hosting and cloud computing. To make this model work, operators must cultivate their capabilities in partnership, offer flexible service customization, and aggregate their customer bases and service providers.

Experience creators capitalize on consumers’ thirst for new apps and services, as well as the needs of companies in any number of industries to digitize their businesses. They will provide consumers and business customers alike with the ubiquitous connectivity they demand — with targeted applications, fresh content and a distinctive experience — as well as the ability to create and distribute their own content. To do so, they must be extremely innovative in their products and services, as well as dedicated to serving different customer segments effectively.

Each of these three business models offers operators a way to compete in increasingly fragmented telecom markets. To extend the gains made in one market by replicating the model in other markets, there is a fourth business model that operators should consider — especially if they already have significant scale and scope, as well as operations beyond single markets or regions.

This model, the global multimarketer, offers a path for operators to make the leap to becoming truly global entities. Thanks to their inherent strengths in branding, efficiencies and reach, global operators are proving stronger than their local rivals. Successful global multimarketers are able to benefit from the cost savings available through sheer scale, as evidenced by the efficiency in capital expenditures that a select group of global operators have gained in some markets.

The only way operators can counter the numerous threats they face is by creating new business models that can effectively respond to the rapid changes overtaking the telecom industry. Operators that understand the need to move away from their traditional vertical organizations and to develop one or more of these business models must ultimately transform themselves into one or another of the modular organizations described above, with the ability to replicate their capabilities and business models across different markets and customer segments.

 But building those capabilities and business models will take time. The winners will be those operators that are first to understand the need to make this transformation, and then move fast.

November 3, 2010 0 comments
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Last Word

Empire in austerity

by Executive Contributor October 24, 2010
written by Executive Contributor

In an article earlier this year for Foreign Affairs magazine, the British historian Niall Ferguson discussed how quickly empires collapse. He noted that while many observers have tended to assume long cycles of imperial decline, a breakdown could come suddenly, “like a thief in the night.”

Ferguson has argued that the American empire is more likely to disintegrate for reasons related to the domestic economy than foreign policy. In his book ‘Colossus: The Price of America’s Empire,’ he argued that imperial America faced a ballooning fiscal crisis brought on by a propensity to consume much and save little, as well as an impending social security crisis caused by Americans living longer and overburdening the fiscal system.

In the Foreign Affairs article, Ferguson focused on the vital matter of perceptions of decline. Even if fiscal shortcomings were not enough to erode American strength, he pointed out, “they can work to weaken a long-assumed faith in the United States’ ability to weather any crisis.” Just look at the relatively minor sub-prime defaults that spread through the global financial system by “blowing huge holes in the business models of thousands of highly leveraged financial institutions.”

 Another scholar, Michael Mandelbaum, recently examined the implications of the financial crisis on American foreign policy in his ‘The Frugal Superpower: America’s Global Leadership in a Cash-Strapped Era.’ He argued that America’s debt obligations following the 2008 financial crisis, as well as its fiscal structure and entitlement programs such as social security and Medicare, prevented the country from continuing to play the leading international role it has for decades. 

 “[T]he public will no longer feel able to afford, and so will not support, operations to rescue people oppressed by their own governments and to build the structures of governance where none exist,” Mandelbaum wrote. “Interventions of this kind, which the United States has undertaken in the last two decades in Somalia, Haiti, Bosnia, Afghanistan, and Iraq, will not be repeated. The American defense budget will come under pressure, and so, too, therefore, will the missions that the defense budget supports.”

 All this raises an interesting question. If, as Mandelbaum affirms, the United States becomes more frugal abroad, will that not undermine America’s long-assumed faith in its ability to weather any crisis, as Ferguson pointed out? In other words: too much realism about American limitations may actually accelerate America’s waning.

Certainly that is true in the Middle East, where, under President Barack Obama, the US has visibly downgraded its commitments. Obama has withdrawn American combat forces from Iraq. He has overseen a significant tightening of sanctions on Iran, in part to better avoid being sucked into an expensive, hazardous war with the country over its nuclear program. Obama’s support for Palestinian-Israeli peace, while it fulfills a campaign promise, may be viewed as an effort to stabilize a region that might cost the US dearly in the event of new conflicts.  Even in Afghanistan, where Obama has deployed 30,000 additional soldiers, information recently published by the journalist Bob Woodward indicates that at the heart of Obama’s thinking were a clear-cut exit strategy and financial worries. “I’m not doing 10 years. I’m not doing long-term nation-building. I am not spending a trillion dollars,” the president told Secretary of State Hillary Clinton in October 2009.

That is sensible. However, America’s view of itself has always pushed in a contrary direction. It was John F. Kennedy who stated in his inaugural address that America would “pay any price, bear any burden, [and] meet any hardship… to assure the survival and the success of liberty.” For Obama to challenge that premise on financial grounds effectively denies Americans the self-assurance — some would say the egotism — a higher sense of purpose invariably brings with it. This in turn could hasten the demise of the American empire that Ferguson discusses.  Balancing national values with national accounts will remain a major difficulty for American leaders. But the process of change may be quicker than some imagine, as Ferguson believes. America may not be able to afford high ambition, nor might it long outlast excessive modesty. 

October 24, 2010 0 comments
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Companies & Strategies

Buying back the Love

by Executive Editors October 24, 2010
written by Executive Editors

A journalist from Executive magazine and 200 others from around the globe were flown to San Francisco last month on a junket that included airfare, two nights at the Hilton Hotel, gourmet cuisine and a perpetually open bar.

Clearly, hosts Microsoft had something they wanted to say, or more accurately, wanted the assembled hacks to say. While some events make news, others are made news, and the later was certainly the case with the launch of Internet Explorer 9 (IE9) beta.

But why such expense for the trial version of a ninth edition web browser? As Sebastian Anthony, an editor at the AOL-owned technology blog Download Squad said, it’s been a good few years since Microsoft has been able to generate decent media coverage, while at the same time “Apple sneezes and people write a story about it.” Thus, perhaps, the reason for the public relations bonanza.   

Internet Explorer (IE), at one point the default browser of nearly 95 percent of web surfers, has seen its market share slip through the noughties to just over 60 percent today, as competitors such as Mozilla’s Firefox, Google’s Chrome and Apple’s Safari have gnawed away at IE’s slice of the pie. Still, that’s 60 percent of the almost 2 billion Internet users worldwide.

“It’s a fun story to tell sometimes how IE has declined, but it is still very strong,” said Brian Hall, general manager of Windows Live and Internet Explorer. Microsoft officials promised, and in many ways demonstrated, at the September 15 launch in San Francisco that IE9 heralds the next generation of web browsing.

While developers and enthusiasts might ogle over its “hardware acceleration” and the evolution of HTML5 coding, the layman attraction is that web browsing with IE9’s minimalist interface feels cleaner, and is a whole lot faster than competitors when it comes to loading large websites. (IE9 requires Windows Vista or Windows 7, however, so those using Windows XP or older operating systems will have to fork out for something newer).

Weeks before the beta launch, Microsoft gave many of the world’s most popular websites advance access to the new code and offered support to help optimize the sites for EI9, thus securing customer usage and adoption even before the release.

Then it was time for the charm offensive in San Francisco for the beta launch, which Microsoft will use to gather feedback from users and developers before launching IE9’s final version, at an as yet undisclosed date.

Regional strategy

Asked whether Microsoft had a specific strategy to promote IE9 in the Arab world, Hall noted that the company operates in most countries around the globe and while there are some unique local Internet intricacies regarding bandwidth and latency in developing markets, generally, “the market dynamics are quite consistent, which is: enthusiasts set the tone, sites drive the real adoption, distribution helps with adoption.”

He said Microsoft will now work at “encouraging” PC manufacturers to ship IE9 with their products, and Microsoft has more than 1,000 staff who will seek out local partners to work with. “Even in Lebanon, we will have people who are meeting with companies that build the top sites in Lebanon, and we’ll want them to do work for Internet Explorer 9.”

What profit?

This all sounds very expensive, leaving one glaring omission: how will Microsoft make money off IE9?

“We don’t,” said Dominic Carr, director of Windows Communication. “Our business model is ‘happy Windows customers.’”

As Hall explained: “We have a little tiny business called Windows,” an operating system with more than one billion customers. “Especially for home users, the number one thing people do on their PC is browse the Internet… our job is to give the best web experience to Windows customers that we can, and that is the purpose of the browser.”

So will this strategy work? Will IE9 help Microsoft regain browser market share and put smiles on the faces of Windows users?

“No one thought they would succeed with the X-Box, but they threw enough money at it until it succeeded, and now it’s huge,” said Download Squad’s Anthony. “I think [IE9] will succeed — they will throw money at it until it is a very big success.”

“It comes down to how much they value their free browser app, and whether they just want to beat Google — that might be the pure intention: they want to smash Google to pieces.”

October 24, 2010 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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