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Society

Diageo – An industry cheers

by Emma Cosgrove April 1, 2010
written by Emma Cosgrove

Despite a global decline in alcohol sales, the Middle East is still supporting a healthy appetite for Scotch whiskey, according to the 2009 preliminary sales results of Diageo, the global alcoholic drinks provider. Diageo, which owns and produces Smirnoff, Guinness, Johnnie Walker, Captain Morgan and Jose Cuervo, managed to turn a profit in this year of economic turmoil, according to their figures released on August 31. As Western markets continue to suffer from the effects of the downturn, the Middle East and other emerging markets are taking the lead in terms of growth in the industry. 

“Johnnie Walker is the biggest Scotch whiskey in this part of the world,” said Gilbert Ghostine, Diageo’s Asia Pacific president. Ghostine also stated that the Middle East is just one of the emerging markets that Diageo will be concentrating on in the future.

Gilbert Ghostine is Diageo
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April 1, 2010 0 comments
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Resistance remembered

by Nicholas Blanford April 1, 2010
written by Nicholas Blanford

The story of the Lebanese resistance has long followed the Hezbollah narrative — unsurprising, given the party’s martial exploits of the early 1990s, when it came to dominate the effort to force Israeli troops from the country.

But last month, there was a poignant ceremony held in South Lebanon that briefly recalled another facet of military resistance against Israel’s occupation of the south, in the early 1980s, led by the remarkable, yet largely forgotten, Mohammed Saad. Born in 1956, the son of a poor grocer in Marakeh, Saad was a disciple of Imam Musa Sadr, the charismatic Iranian-born cleric who helped mobilize Lebanon’s Shia community in the 1960s and 1970s.

In the wake of Israel’s invasion of Lebanon in 1982, a resistance movement began in the villages around Tyre, an area that became known as the “arc of resistance.” Although Saad was the leader of the Amal resistance, he little looked the part of an influential military commander. He had narrow shoulders, a skinny physique and was described by one contemporary as “child-like” in stature. With his thick mane of wavy black hair, thin moustache and a scraggly tuft of beard on his chin, his appearance more resembled an American beat poet from the 1960s than a charismatic guerrilla commander. As hit-and-run attacks began to extract a mounting toll on the Israeli occupiers, they lashed back with punitive raids against the villages of the area. Resistance became a community effort. When Israeli columns were seen approaching a village, the warning was broadcast from the mosque, allowing resistance fighters to escape to their hideouts while women blocked the roads with burning tires and hurled stones and saucepans of boiling oil at the Israeli soldiers.

On one occasion, the Israelis learned that Saad was in Kfar Sir and surrounded the village with troops. Saad ran into a house and without saying a word to the startled family climbed into a pair of pajamas he saw lying on a bed. When Israeli soldiers banged at the front door, Saad himself opened it, dressed in the pajamas. The soldiers said they were looking for Mohammed Saad. The wily Saad turned to the family inside and said “Mother, they’re looking for someone called Mohammed Saad?”

“Never heard of him,” the mother replied, and the soldiers left. At the beginning of 1985, the Israelis began a phased retreat to a strip of territory along the border. Their withdrawal was marked by a brutal “iron fist” campaign against the villages of the south, marked by random executions, bulldozing of houses and mass arrests.

On March 2, 1985, Israel staged one of their biggest raids against Marakeh, but Saad and Khalil Jerardi, a top lieutenant, had already escaped. Two days later, Saad and Jerardi were holding a meeting on the first floor office of the Husseiniyah religious center in Marakeh when a bomb — planted by the Israelis during the earlier raid — ripped through the building, killing both men and 10 others.

Three months later, the Israelis had pulled back from the villages around Tyre to the border strip they would occupy for another 15 years. By then, Amal was embroiled in a savage war against the Palestinians. The “war of the camps” would sputter on for three years, sapping Amal of a number of its best military commanders and fighters. With Amal having lost some of its resistance impetus after Saad’s death, and sidetracked by the camps war, Hezbollah was able to expand its influence in the deep south, slowly transplanting its rival as the dominant Shia voice in the area.

To commemorate the 25th anniversary of Saad’s assassination, hundreds of people from Marakeh and the surrounding villages gathered on March 7 at Marakeh’s sports ground. Tough-looking men with stubbly haircuts, thick beards and rough calloused hands, and women clad in colorful headscarves, others in full-length black shadors, gathered beneath walls adorned with giant pictures of Saad and other deceased Amal resistance men whose names today are familiar only to the southerners.

A sheikh delivered a eulogy, calling Saad and his comrades “symbols of justice against murderers and killers.”

But this was very much a local affair; there was no representation from the senior ranks of Amal. Instead, the remarkable exploits of the resourceful Saad live on only in the memories of aging southerners, and in the few blurred and faded photographs of Amal “martyrs” tacked to street lights and walls in the villages of the former arc of resistance.

NICHOLAS BLANFORD is the Beirut-based correspondent for The Christian Science Monitor and The Times of London

April 1, 2010 0 comments
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Competing for the long haul

by Peter Grimsditch April 1, 2010
written by Peter Grimsditch

The decision by Emirates Airlines to postpone moving its operations to the new Al Maktoum International Airport near Jebel Ali risks letting regional rivals steal a slice of Dubai’s hard-won and lucrative transit business on routes into Asia. According to Tim Clark, the president of Emirates, a “rethink” convinced the airline it was better to stay where it was for another decade. The moving timeframe has been put off from 2018 to 2020 to between 2022 and 2030.

“With a certain amount of investment,” said Clark, “you can get a lot more out of Dubai airport.” It would have been reasonable to add that it is much cheaper to stay put these days than it is to shift house. That “certain amount of investment” will boost passenger handling facilities at Dubai International Airport to 90 million passengers a year. That is still a long way from the staggering Al Maktoum target of an annual 160 million — or the equivalent of a little more than half the entire population of the United States.

Dubai is also an equally long way ahead of the airports at Istanbul and Doha, both of which would like to make further inroads into the growing Asia-bound traffic. Ataturk International Airport, in Istanbul, is the largest airport between Frankfurt and Dubai, and can handle 30 million people. A third airport in Istanbul would cost a minimum of $8 billion to $10 billion and the Turks are as ill-inclined these days as Dubai to splash money around unnecessarily. Istanbul has a second airport, Sabiha Gökçen but without a rapid transit access it is much too far away from the main body of the city to entertain thoughts of a grandiose future. The alternative and cheaper ideas include demolishing some high-rise apartment blocks to allow the addition of a parallel new runway at Ataturk, and a mega upgrade of the air traffic control system to allow planes to land with a gap smaller than the current minimum five miles. This could double the airport’s capacity. Hopefully the speed with which arriving passengers are processed through passport control would also be included in the plans. Qatar, too, is getting a new airport, which will be able to handle 50 million people when it is finished in 2015.

According to the International Air Transport Association (IATA), Middle East carriers are expected to carry just more than 15 percent more passengers in 2010, although few are managing to translate that into profits.  Etihad Airways expects to break even next year, Qatar’s national carrier is too busy adding aircraft to be overly concerned about the bottom line and loss-making enterprises in Dubai is too painful a topic to broach.

Even so, the expansion continues. Qatar Airways will soon launch services to Brazil and Argentina, Etihad will increase its links with Australia and Emirates is stepping up the number of flights to London. That leaves Turkish Airways (THY) in an enviable location. The number of passengers carried rose 25 percent in the first two months of this year and its fleet will be increased by 94 aircraft over the next four years; some 1,600 new air and cabin crew will be hired this year. Ten airlines, including the Polish national carrier LOT and three from the Balkans, are seeking suitable terms to be taken over by THY. It is even increasing the number of football teams with whom it has travel deals. THY signed a contract with English super-club Manchester United to ferry the team for three-and-a-half years and has a similar agreement with FC Barcelona.

In total, THY hopes to carry 31 million passengers in 2010, or more than the entire capacity of Ataturk Airport. This mathematical conundrum is easily solved by including the rest of the country’s airports. Its routes are increasing to both west and east, encouraged by the increasing numbers of countries and cities, such as Japan, the Philippines, South Korea, Hong Kong, Indonesia, Thailand and Malaysia, which no longer require pre-acquired visas from Turkish citizens. All this means more planes, passengers, routes, staff and even profits for THY — in 2009 it made just over $220 million.

Perhaps Emirates thinks it is so far ahead of Turkey and Qatar, the 10-year delay on moving its base holds no hazards. That’s what the hare thought when it left the tortoise looking at the bottom of its paws.

Peter Grimsditch is Executive’s Istanbul correspondent

April 1, 2010 0 comments
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Mashreq enmeshed

by Riad Al-Khouri April 1, 2010
written by Riad Al-Khouri

 

The economy of the eastern Mediterranean went from being a unified whole under the Ottomans 100 years ago to increasing fragmentation in the Twentieth Century. This trend was especially apparent in 1950 when Lebanon and Syria broke off their customs union, and the latter proceeded to erect higher tariff barriers, eventually being emulated in this respect by Jordan, which also wanted to protect “infant” industries.

This issue was highlighted — and remedies for it sought — in a workshop held last month in Beirut by the United Nations Economic and Social Commission for Western Asia and the World Bank on “Regional Cross-Border Trade Facilitation and Infrastructure for Mashreq Countries.” Addressing the event, Hedi Larbi, director of the World Bank’s Middle East department, noted that “trade exchange within the Arab world is very weak in comparison with other regions of the world,” amounting to only 13 percent, compared to 21 percent in Latin America and almost 35 percent in East Asia.

Trade within sub-regions of the Mashreq is higher than that of the Arab countries taken as a whole, with Lebanon and Jordan in particular being states that do a lot of their trade with each other, and with others in the region. That point was underlined during Jordanian Prime Minister Samir Rifai’s visit to Beirut in March. During the trip, Rifai signed a number of bilateral agreements with Lebanon covering cooperation in industry, agriculture, higher education and scientific research, among others. He also stressed the need to speed up implementing the 2002 accord establishing free trade between the two countries. All this should further boost merchandise trade between the two countries, which stood at $288 million last year, an 18 percent increase over 2008. The two sides also underlined the need to promote the booming Mashreq tourist industry by conducting joint tourism fairs to sell Lebanon and Jordan as one destination.

Yet this spirit of co-operation was not always there; just as economic arguments restricted trade in goods among the countries of the Mashreq in the past 60 years, other considerations also played a role in stifling services industries. A case in point of such restrictions was the imposition of visa requirements on Lebanese travel to Jordan in the late 1970s, a step promptly followed by a quid pro quo retaliation from Beirut mandating visas for Jordanians wishing to enter Lebanon. This led to a drop in tourists heading from Amman to Beirut and vice versa, as well as diminished transport between the two countries. One result of such measures was that during the 1980s and 1990s there was a decline to only a few flights per week between the two countries, which was logical in view of falling tourist traffic. In 2005 that changed with abolition of visa restrictions for Lebanese and Jordanians in each other’s countries.

Royal Jordanian today thus has no fewer than 28 flights per week between Amman and Beirut, with Middle East Airlines also running more than one daily flight between the two capitals. Likely a result of the cancellation of visa requirements, the number of Jordanian visitors to Lebanon in 2009 was a huge 225,000, a big increase over the figures five years earlier and an example of how removing restrictions can enhance business across borders. These and similar points were made by the Jordanian premier during his latest visit to Lebanon.

At the Beirut Chamber of Commerce and Industry, Rifai outlined trade and investment prospects in the kingdom in preparation for a visit by members of the Lebanese private sector to Jordan in April. He also reviewed Jordan’s vision to build strategic relationships in the region through joint projects in the field of transport, especially railroads. That, of course, would also involve Syria, but Damascus is on board in efforts to remove obstacles to the smooth flow of goods, individuals and investments between the Mashreq countries to gradually lead toward their integration.

 

RIAD AL-KHOURI is a senior economist at the William Davidson Institute at the University of Michigan in Ann Arbor, and dean of the business school at the Lebanese French University in Erbil, Iraq

April 1, 2010 0 comments
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Subsidy showdown

by Gareth Smith April 1, 2010
written by Gareth Smith

Iranian strategists have long wondered about an Islamic version of the Chinese model, which has achieved a 7 to 8 percent annual growth rate over 20 years, through easing state economic control under the Communist party’s political monopoly.

The crackdown on the reformist opposition since last year’s disputed presidential election — in which Mahmoud Ahmadinejad won a 63 percent landslide — will increase the attraction of China’s example. Iran may now be better placed for serious economic reform, with the aim of reaching the 8 percent growth envisaged by Tehran’s 2010-15 economic plan, rather than the paltry 2.2 percent forecast for 2010 by the World Bank.

Oil revenue in Iran has long pitted short-term consumption against the investment needed to finance growth. Hence, the problem with elections is that Iranians believe their country is much richer than it is and will vote for those who offer them their cut.

A friend in Tehran, now in prison, used to ask people how much they thought was their “share” of the oil wealth. The usual reply was in thousands of dollars, and he delighted in pricking the bubble by saying it was about $500 per year per adult.

Economist Djavad Salehi-Isfahani put the point differently last year, when he calculated the hypothetical per-person income of Iran’s oil and gas reserves of around 300 billion barrels, and oil-equivalent barrels, could be invested in a long-term trust fund offering 3 percent. This was at the top of the market, and yet the annual yield was $430 per person, declining over time as the population rose.

Such figures bear scant relation to the growing popular belief in Iran that oil wealth should improve people’s short-term lot. Ahmadinejad stormed to power in the 2005 presidential election promising not just a return to the egalitarianism of the 1979 Islamic Revolution, but to “put the oil money on the people’s sofreh” — the carpet or cloth on which poorer Iranians sit to eat lunch.

Yet in one of the most remarkable turnarounds in recent Iranian politics, Ahmadinejad subsequently came up with the first serious government plan to tackle the most damaging consequence of Iranians’ belief in their own wealth — the state’s annual commitment of between $50 billion and $100 billion to subsidize gasoline, electricity, bread and medicines.

Ahmadinejad’s scheme to phase out subsidies over five years and replace them with benefits targeted at the poor has put him at loggerheads with parliamentary deputies, conservative and reformist, who are loath to allow the president any discretionary spending. As much as half of the savings would be allocated to the “needy,” a difficult term to define even in economies far more developed and transparent than Iran. But after wrangling between the president and parliament, the Guardian Council, Iran’s constitutional watchdog, ruled in January there should be a new government body to receive and spend the saved money — putting it at least a step away from the president’s direct control.

In truth, many of Ahmadinejad’s opponents, inside and outside the country, are less interested in the reform plan’s potential success than in its potential to make the president unpopular. Removing subsidies could well stoke inflation and make millions of Iranians worse off in the short term. Without a broad political consensus, it is hard to see how such shock therapy could be initiated without the government falling prey to the kind of opportunistic political opposition that has stymied attempts to reform subsidies since the 1990s.

Conservatives around Ahmadinejad, supported by the supreme leader Ayatollah Ali Khamenei, now seek change. And why not? Shortly after Ahmadinejad’s 2005 election win, the reformist commentator Saeed Leylaz cited the dictum that China should adopt effective policies, whether “capitalist” or not. “The cat is finally catching mice,” Leylaz wrote, “and its color no longer matters.”

True, Ahmadinejad has shown little capacity to emulate the more subtle aspects of Chinese capitalism; privatizations have merely transferred assets to quasi-state-owned bodies. But if savings from universal subsidies can fund productive investment, then the longer-term benefits for the economy could include job creation and higher living standards. And those who had carry through the change might then benefit politically, and perhaps even be ready for more competitive elections.

GARETH SMYTH is the former Tehran correspondent for The Financial Times

April 1, 2010 0 comments
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Genocide vs. geopolitics

by Peter Speetjens April 1, 2010
written by Peter Speetjens

Partly due to Europe’s reluctance to welcome Turkey as a full EU-member, Ankara has redirected its foreign policy toward the east, which in 2009 culminated in a flurry of protocols and trade agreements with countries such as Syria, Iraq and Iran.

Last month’s decisions, in the United States and Sweden, to recognize the Ottoman-era killings of Armenians as genocide will do little to seduce the Turks back into the Western realm.  On March 4, the US House Committee on Foreign Affairs (HCFA) passed a non-binding resolution to define the early 20th century massacres as genocide, which means the issue can now be brought to vote in the US House of Representatives. Shortly after, the Swedish parliament on March 11 voted in favor of declaring the mass killings genocide. So far, 23 countries worldwide have done so. 

According to HCFA Chairman Howard Berman, a vast majority of experts, academics and authorities in international law agree that the Armenian massacres constitute genocide.  Berman backed up his statement by pointing to the International Association of Genocide Scholars and Professor Yehuda Bauer of the Hebrew University in Jerusalem; the former concluded that “the historical record on the Armenian Genocide is unambiguous and documented by overwhelming evidence;” while the latter has said that “the Armenian Genocide is the closest parallel to the Holocaust.” Turkey admits the killings took place, yet denies they meet the legal requirements of “systematic planning” and “intent” to be able to define them as genocide. In protest against the two decisions, Ankara recalled its ambassadors to the US and Sweden.

Turkish Prime Minister Recep Erdogan furthermore warned that the HCFA decision could damage US-Turkey relations. “Let me say quite clearly that this resolution will not harm us,” Erdogan said on March 6. “But it will damage bilateral relations between countries, their interests and their visions for the future. We will not be the losers.”

The US military fears adopting the resolution may have dire consequences for its attempts to “pacify” Iraq. Turkey, a key Nato-member, currently allows the American army to use Turkish airports and air space to reach Iraq, while it is a public secret that without the consent of Ankara there would be no Iraqi Kurdistan.

US President Barack Obama and Secretary of State Hillary Clinton have declared their unhappiness about the decision, as it foiled their attempts to reconcile Turkey and Armenia, the latter being an increasingly important player in Washington’s foreign policy in the Caucasus following the disastrous 2008 Russia-Georgia War.

“There are currently 170,000 Armenians living in our country,” Erdogan told the BBC Turkish service. “Only 70,000 of them are Turkish citizens, but we are tolerating the remaining 100,000. If necessary, I may have to tell these 100,000 to go back to their country because they are not my citizens. I don’t have to keep them in my country." Interestingly, the HCFA adopted the resolution, despite intense lobbying by Turkey and at least six major corporations. According to Associated Press journalist Stephen Singer, BAE Systems, Goodrich, Northrop Grumman, Raytheon, United Technologies and Chevron spent $14 million in 2009 lobbying against recognition.

Chevron holds a major stake in an oil pipeline that crosses Turkey, while Raytheon has agreed to sell Stinger missile launcher systems to the Turkish army. Another major factor for the HCFA to adopt the resolution may have been the breakdown in relations between Turkey and Israel, following the latter’s Gaza invasion at the end of 2008 in which some 1,400 Palestinians died, mostly civilians, and 13 Israelis, 10 of which were soldiers. In the past, major Jewish and pro-Israel organizations in the US routinely lobbied against recognition of the Armenian genocide, fearing it might harm relations between Israel and its only major alley in the Middle East.

But Turkey has been one of the most vocal critics of Israel’s violent conduct in Gaza and this year the variety of groups that make up the Israeli lobby in Washington remained silent.

Still, all is not lost for Turkey, and Armenians around the world should not put their hopes too high. This is not the first time the HFCA have called upon US representatives to recognize the Armenian massacres as genocide, yet so far modern-day geopolitics have always prevailed over historical truth and justice.

PETER SPEETJENS is a Beirut-based journalist

April 1, 2010 0 comments
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Society

Shelf space wars

by Joe Ayoub April 1, 2010
written by Joe Ayoub

There’s a shift going on in the retail world. Where once manufacturers competed against one another for consumer loyalty, today they face sharp competition  from retailers, the very places that stock their brands.

To give an example, there was a time when rivals such as Pepsi and Coca Cola viewed each other as their main competition, but today on the supermarket shelf the big two often stand beside a brand of soda bearing the retailer’s own label.

In the region we can see the phenomenon in supermarkets such as Monoprix or Spinneys, where consumers can find the retailer’s private label next to similar global brands.

In Europe generic label brands have won high profile recognition, but in the Middle East, retailers often adopt a more low-key approach to their store brands. This can make it hard for consumers to recognize the product’s origin and attributes, compounded further by weak marketing and communications.

At its origins, the private or own-label trend stemmed from the retailer’s desire to offer consumers a cheaper alternative to well-known brands. It wasn’t long, however, before the major brands took notice of the new competition and fought back by lowering their prices. As the gap narrowed, consumers soon reverted back to choosing their original, favorite brands.

For retailers this forced a rethink of the private label strategy. Instead they began to look for areas of dissatisfaction, spotting gaps that major brands were not filling.

Retailers are perfectly placed to understand their consumers’ needs, based on the fact that they interact with them daily and can actively monitor their purchasing habits. As retailers sought to close market gaps, they moved away from offering cheaper alternatives to delivering quality products at a similar price to major brands — and sometimes even higher. 

This represented a more customer-centric strategy on the part of the retailers, while at the same time providing them with a hook to lure customers through their doors; while manufacturers’ brands are available everywhere, private label brands are tied exclusively to one retailer, thus giving customers a reason to shop in a certain place over another. 

Although ‘own brands’ in many cases are helping retailers capture a greater market share than the high profile manufacturers, the initiative still requires several factors to achieve success. First, the retailer needs to have good knowledge of brand portfolio management to enable them to manage their brand alongside the other international brands stocked in store.

Secondly, strategic branding takes a retailer out of his purely retail role into the world of manufacturing, which necessitates an understanding of the manufacturing process, of how to deal directly with manufacturers and an awareness of issues such as supply management and quality control.

From a consumer point of view, the retailer has to create a product that offers added value. Simply sourcing a cheaper product with low quality will have a limited run of success; consumers will soon realize the product is not up to standards and return to their preferred brands. In essence, the retailer needs to think about how to develop a long-lasting consumer relationship through building value into the product at all levels, so that it can stand alone and compete in its relevant category.

The possible pitfalls are many, but can be avoided with the right advice and support that a strategic branding consultancy can provide. It is here that a retailer can receive advice on whether there is a gap in the market which needs filling, which category to enter, how to position the brand and how to construct it. The consultant can advise on a product’s name, logo, packaging and how to connect the private label with its potential target market.

While a private label initiative can reap rewards for retailers, it should be clear that this is not a quick fix solution if a store is doing less than well. However, a retailer that enjoys a good consumer relationship can find that with the right strategic branding advice, launching a private label can increase its brand equity, drive profits and create a new era of a stronger and more direct customer relationship.

April 1, 2010 0 comments
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Society

Conquering the mutated face of censorship

by Mark Helou, Zeina Loutfi & Ramsay G. Najjar April 1, 2010
written by Mark Helou, Zeina Loutfi & Ramsay G. Najjar

Recently, the satellite providers Nilesat and Arabsat decided on a unilateral basis to block the Al Alam Arabic-speaking Iranian pro-government channel.

Without delving into the underlying causes which triggered it, one cannot but notice the zeal and passion with which a large number of journalists, intellectuals and politicians, often known for their opposition to the Iranian regime, have condemned this action, which they perceived as blind censorship. In fact, this comes as a true illustration of Voltaire’s “I disagree with what you say, but I shall defend to the death your right to say it.” Since the channel had not infringed any of the laws that regulate the media sector, the mechanisms that had led to this coercive situation were nothing but a reflection of the modern face of censorship: economic censorship.

Censorship is indeed a phenomenon as old as civilization itself, which has continuously evolved through a myriad of different forms throughout history, adapting to the changing political and social contexts, yet maintaining the invariable goal of controlling and limiting freedom of expression.

Plato, the very first documented thinker to have advocated censorship, has been criticized for his book ‘Republic,’ in which he called for the censoring of intellectual or artistic works that were deemed “dangerous for the spirit.” Around the same time, Socrates was condemned to kill himself by drinking poison as a punishment for his independence of thought, perceived as a menace by Athenian society.

In the following era, religions soon became the censors of reference on all levels by defining what God liked or disliked. This was followed by a more modern censorship, where raison d’état or ‘national security’ proved to be weapons of choice for promoting many forms of censorship, thus simply replacing God with the State. Another form of censorship, intimidation, strived to maintain citizens in a perpetual state of fear by making them feel constantly watched, thereby forcing them to practice self-censorship, as admirably illustrated by George Orwell’s novel “1984,” where the vigilant eye of Big Brother sees to it that citizens are well-behaving.

The free (re)press

But censorship did not only flourish during antiquity and the middle ages, it also managed to find its way into the Age of Enlightenment. Descartes’ “I think therefore I am,” which signified the emancipation of the individual by free-thinking, thus became an “I think for you,” hammered by all absolutist regimes, and even a “You are what I think,” in the most extreme cases.

As censorship adapts to the changing times, we are now confronted with its newest form — economic censorship, which is all the more dangerous and corrosive, as it can be exercised behind the scenes without any kind of institutional or legal framework to regulate it, with existing frameworks actually becoming tools to serve its purpose. As its name indicates, economic censorship takes advantage of a dominant position to exert financial and economic pressure on content producers, journalists or media outlets to influence the content they disseminate. The measure that was implemented by Nilesat and Arabsat perfectly illustrates this form of censorship, as it resulted from financial pressures being exerted by the funders to reach political objectives.

Economic censorship feeds on media outlets’ increased dependency on external sources of funding: with newspapers and magazines becoming overly dependent on advertising money for survival, they now constantly monitor their content to remain on good terms with their advertisers, which is nothing but another form of economic censorship in disguise. As an example, in 2007, a not-so-flattering book about celebrity fashion designer Karl Lagerfeld and the luxury sector in France was completely ignored by the French press. Since the luxury sector is a heavyweight advertiser in France, this silence was easily attributed to the fear of retaliation, which would have brought many media outlets to their knees.

Another example illustrating the power of economic censorship is the old canard that says that the Jewish lobby controls global media, one we are all familiar with, especially in this part of the world. Without venturing into far-fetched conspiracy theories, it is clear that this perception stems from the long-standing economic censorship practiced by many lobbies and pressure groups, which aims at influencing the content of media channels by using financial levers such as advertisement dollars or boycotting cultural products.

Economic censorship is all the more dangerous as it is far more subtle than its traditional self, which often relied on primitive and crude tools such as the outright banning of a publication or content. By comparison, economic censorship has forged itself a large palette of mechanisms covered by existing rules and regulations, such as imposing high custom fees to prevent the importation of a book or complicating at will the process of acquiring a filmmaking permit.

In a world where financial considerations have taken priority over other values such as freedom of expression and the right to know, we can rightfully fear that the economic form of censorship might actually be its ultimate stage and the prelude for a ‘formatted thinking’ society. This fear could be further justified by the increased consolidation witnessed in the media and culture sectors, which are now in the grip of a limited number of players.

Usurped by the internet

So has censorship finally won and are we entering an age where our thoughts, ideas and feelings will be dictated by invisible censors?

Fortunately, the answer is a big “No,” as the emergence of the internet has shaken all the foundations on which censorship has been relying throughout its existence. John Gilmore, an internet guru and freedom of speech activist, enunciated what has become known as Gilmore’s Law, which is directly inspired from the way the internet operates as a physical network: “The net interprets censorship as damage and routes around it.”

Just at the point when economic censorship had begun to endanger diversity and freedom of thought, the emergence of this super-medium with its social and file exchange networks, blogs, forums, download sites and chat rooms can be seen as the beginning of the end of all forms of censorship.

Today, it is practically impossible to keep an event under cover, distort the truth, silence a journalist, or ban an artistic work.

Even if one played the devil’s advocate and rightfully agreed that there are indeed certain voices that can constitute a potential threat to social well-being, it is not by silencing these voices that we can protect society. It is rather by immunizing citizens against destructive ideas, a feat that can only be accomplished by the dissemination of knowledge and access to uncensored information. The most likely teenager to say no to drugs is not the one who is unaware of their existence, but the one who is perfectly informed of their detrimental effects. Similarly, the success of mankind in protecting itself against viruses was not due to the elimination of these viruses, but to building an immunity that was acquired, precisely, from contact with these viruses through vaccination. By depriving society from the vaccines that information and knowledge represent, censorship does therefore nothing but expose it to all kinds of diseases and illnesses.

One cannot but feel a mix of bitterness and amusement when witnessing the persistent and desperate efforts of some governments that are still swimming against the tide by trying to maintain the grip of censorship over their citizens. Such futile attempts are bound to fail, and we will hopefully have the chance to witness during our lifetimes the complete demise of censorship in a world where each citizen will be able to think freely, and be heard in all corners of the globe.

April 1, 2010 0 comments
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Neighborly negotiations

by Executive Staff April 1, 2010
written by Executive Staff

 

The Palestinian gunman, his face screwed up with rage, ran towards us, raising his AK-47 and yelled, “Get your hands up! Get your hands up!”

It was June 2007 and in the north of Lebanon, the Lebanese army and Fatah Al-Islam were in the early stages of a bloody battle at the Nahr Al-Bared Palestinian refugee camp — a confrontation that would last 106 days and leave 168 soldiers, over 200 militants and dozens of civilians dead.

The fighting in the north clearly had unnerved the Palestinian gunman. He was a guard at the entrance of a small military base at Ain Al-Bayda, near Kfar Zabad village in the Bekaa Valley, manned by the Popular Front for the Liberation of Palestine-General Command (PFLP-GC), a Damascus-backed radical faction. The PFLP-GC runs five small bases in Lebanon: Ain Al-Bayda, Wadi Heshmesh just north of the Bekaa village of Qussaya, Jabal Al-Maaysara on a lofty mountain plateau east of Qussaya, Sultan Yaacoub in the western Bekaa, and another at Naameh, 15 kilometers south of Beirut.

The PFLP-GC and Fatah Intifada, another Syrian-supported Palestinian group that also operates small camps north of Rashaya in the western Bekaa, were on high alert during the fighting in Nahr Al-Bared.

My two colleagues and I were forced to sit on the ground, our hands on our heads, for five minutes until the arrival of the guard’s boss, incongruously dressed in a purple shell suit. Calm and polite, he told us: “We are guests in this country and we are here in these bases only to help liberate Palestine.”

That incident occurred more than a year after the National Dialogue, the round-table forum grouping Lebanon’s top leaders, had agreed to shut down the Palestinian bases and ban arms carried by Palestinian militants outside the 12 established refugee camps. Nearly four years after that decision was reached, it has yet to be implemented. The Palestinian bases still exist, surrounded by Lebanese troops who prevent civilians and journalists from accessing them.

The issue of the Palestinian bases may well become salient again in the coming months, given the easing of tensions between Lebanon and Syria since the formation of the new government in Beirut in November, and the visit to Damascus by Prime Minister Saad Hariri in December, 2009.

Although both countries have undertaken the historic step of exchanging formal diplomatic relations with the opening of embassies in Beirut and Damascus, the pace of rapprochement will depend greatly on how Syria reacts to Lebanese requests for assistance in some key — but solvable — areas. The first is the fate of the PFLP-GC and Fatah Intifada bases, the second is a decision to begin the long-neglected delineation and demarcation of the border between the two countries.

It is evident that following the Nahr Al-Bared experience, the army has no taste for forcibly dismantling the Palestinian bases, even though in military terms it would be a much simpler task to shut the isolated rural outposts than weeding out Fatah Al-Islam’s die-hards from the cramped interior of a Palestinian refugee camp.

Furthermore, the PFLP-GC, in particular, is an ally of Hezbollah — these days serving almost as the Lebanese party’s private militia force, which adds an awkward political component to closing the bases.

In January, Abu Musa, the leader of Fatah Intifada, declared that he rejected the disarming of Palestinians outside the refugee camps and that the fate of their weapons was a matter to be decided among Palestinians.

Abu Musa’s rare press conference appears to have been an effort to hinder attempts to close the bases before they had even begun. Importantly, however, Abu Musa would not have made such a bold declaration without the knowledge of his hosts in Damascus. Syria has said that because the bases lie on Lebanese soil, it has no jurisdiction to have them closed. In reality, if Syria instructed the PFLP-GC and Fatah Intifada to dismantle their outposts and return to the refugee camps in Damascus or Beirut, they would do so quickly and with a minimum of fuss.

Damascus bridles against international pressure and tends to dig in its heels when lectured by the West. Whether Syria will show goodwill over the Palestinian bases, remains to be seen. But if it does it would win international praise at almost no tactical cost to itself.

There are indications that the United States will soon develop a more nuanced approach toward Lebanon, beyond the repeated calls for the implementation of Resolution 1701. The new track will focus on the border between Lebanon and Israel, probably in terms of seeking to extend the current calm along the Blue Line. But there will be other indirectly related issues the Americans will likely pursue, such as encouraging Lebanon and Syria to begin mapping and formalizing their joint border and closing down the Palestinian military bases.

How Syria responds to such calls will provide early indicators as to how the Lebanon-Syria relationship will unfold in the months ahead.

Nicholas Blanford is the Beirut-based

correspondent for The Christian Science Monitor

and The Times of London

April 1, 2010 0 comments
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Society

Green light for eco cars

by Nadim Mehanna April 1, 2010
written by Nadim Mehanna

If there’s breaking news in the automotive world, chances are, you heard it in Geneva, Switzerland. For more than a century the city has played host to one of the world’s preeminent automotive exhibitions — the Geneva Motor Show — which in that time has featured almost every model of internal combustion-powered automobile to enter into mass production, as well as countless prototypes, concept cars and theoretical technologies.

It is the stage on which automotive giants and small-scale developers alike unveil their latest innovations and upcoming models. If you want to see into the future of the automotive industry, Geneva may offer your best glimpse; if the industry is taking a new direction, then the exhibition is your signpost. 

Brain beats brawn

This year, the name of the game was diversification, with established makers diverging from longstanding traditions. The appearance of the Volkswagen Touareg, alongside the Porsche Cayenne, indicates the ambitions of the two members of the Volkswagen Group to make their mark on the sports utility vehicle market; Lexus made a splash with its first supercar, the LFA, currently the second most expensive on the market; and Audi unveiled its long-anticipated RS5.

But the most interesting trends on display at the show were not innovations in bigger, faster, more powerful autos. They were the smart cars, the micro models, and above all, an emphasis on hybrid electric vehicles — cars that favor energy saving and fuel efficiency oversize or muscle.

The history of the hybrid is full of ups and downs. The advantage of hybrid vehicles — those that utilize multiple power sources — has been evident since the outset of auto manufacturing. Many different prototypes have entered the spotlight over the years: fuel cells —  which ultimately proved limited in scope; and hydrogen — much loved by environmentalists for its pure-water exhaust but ultimately unworkable due to the high energy cost of manufacturing the fuel.

In the end, electricity appears to have prevailed. The electric car is not a novel concept; the first prototypes competed with the earliest combustion engine models, before Henry Ford’s Model-T changed motoring forever in 1908.

The hybrid represents the best of both worlds: combustion and electric. Defined generally, hybrid electric vehicles employ a smaller version of the conventional internal combustion engine, supplemented by an electric powertrain. The car’s lithium-ion electric battery can be recharged either by plugging the car directly into an outlet or by a mechanism which traps the vehicle’s kinetic energy and converts it into electricity.

Shifting into efficiency

The car’s engine is the most common source of electricity generation, although increasingly, other forms of energy trapping such as regenerative braking systems are also making headway. An important aspect of hybrid vehicles is their ability to maximize energy use, which has led to the development of lighter, more streamlined bodies and more efficient engine design.

The number of new models and the industry-wide drive to design more energy-efficient vehicles shows that government incentives to reduce carbon emissions, as well as increased dialogue in the public sector on the drawbacks of reliance on fossil fuels, may be generating real results. The Kingdom of Jordan has begun voiding taxes on imported hybrid cars. Meanwhile, the United Arab Emirate’s many taxis are now electro-thermally motorized and the Roads and Transport Authority is encouraging makers to move in the green direction. Even luxury automakers have proved responsive; among the fleet of new hybrids featured at the exposition this year were prototypes from Porsche and Ferrari, neither of which had previously shown much willingness to diverge from their standards of high fossil fuel consumption.

A more electrifying market

The presence of a conceptual model does not necessarily herald an industry-wide turnaround. While it is commendable that manufacturers are willing to delve into the hybrid sector, a concept car is only a theoretical foray until it actually hits the market. But the niche is there, and has been widening over the course of the last 15 years. The first hybrid model, the Toyota Prius, was released in 1997. For the next five years, the world saw one new hybrid a year, sometimes carrying Toyota’s mark, sometimes that of Honda, Toyota’s biggest competitor in the hybrid market. In 2005, four new models were on the market, which grew into 10 in 2009. Projections for 2010 put the number of new hybrid models between 10 and 20.

There has not been a real challenge to the internal combustion engine since the first decades of the Twentieth Century, when early models of cars entirely powered by electricity, benzene and steam were phased out by the domination of fossil-fuels. But every era has its own challenges to meet, and as the dangers of greenhouse gas emissions become increasingly apparent, all sectors of the industry will need to shift their focus to more environmentally-friendly technologies if they are to garner public favor.

That a company like Ferrari should break with all standards of decorum and shed its customary red for a green body paint on its new hybrid is, perhaps, the best visual illustration that the shift has already begun. The beetle green HY-KERS two-seater, slumbering peacefully in the center of the Geneva Motor Show, looked almost ready to wake up.

NADIM MEHANNA is an automotive engineer and the pioneer of motoring on Middle Eastern television since 1992

April 1, 2010 0 comments
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