Friday, August 27, 2010

Op-Ed: Yemen on the Brink

Yemeni girls in hijabs.
(Photo by Vassilis Glafkos
http://www.flickr.com/photos/bilwander/1420421540 )
By Antonia Dimou

Reproduced by World Press August 24, 2010

Al Qaeda on the Arabian Peninsula seriously continues to threaten Yemen's stability, regional security and Western interests. Western security concerns focused on the impoverished Arab country, which is a neighbour of top oil exporter Saudi Arabia, after al Qaeda's Yemen-based regional wing claimed responsibility for a failed suicide bombing of a U.S.-bound plane in December 2009. Since then, al Qaeda's Yemen arm has intensified its attacks against state infrastructure in various Yemeni provinces. The attack in the southern Shabwa province on July 25 was among five raids on state targets since June, which have been attributed to the resurgent militant group.

That is why Yemen's pressing short-term and long-term problems need to be addressed immediately and comprehensively. The root causes of terrorism, appropriate methods of de-radicalizing or countering religious radicalism, and the potential for Yemen's troubles to infect its neighbors demand proper policy responses. It is evident, however, that security and economic development are mutually dependent, and meaningful political reform is necessary to sustain both.

In fact, there is an urgent need for a process of dialogue to address the critical issue of national reconciliation as well as broader political reforms. Yemen's government needs to adopt more constructive and inclusive attitudes, and decentralization of political power could alleviate many of the local grievances spawning confrontation. Personal status and business disputes are being increasingly resolved under tribal law, and not state law, and thus the restoration of the rule of law and of a strong, independent judiciary is urgent.

An outside facilitator is needed to provide a neutral forum for discussion and promote accountability. Regional and international support is absolutely critical to achieving success, and Oman or Qatar could possibly be suitable interlocutors. The dialogue process should be broad, including the ruling party, the Joint Meeting Parties, the Southern Movement, the Houthis and other relevant actors.

At the same time, Yemen's oil reserves are being depleted. Approximately 70 percent of the government's revenue comes from oil, making economic diversity an urgent and critical issue if Yemen is to avoid devastating consequences, while immediate attention needs to be paid to Yemen's emerging water and energy crises. Both crises, if not managed well, have the potential to threaten Yemen's national security.

With this reality on the ground, the framework established at the London Summit of 2010 by the representatives of countries and international organizations has become a meaningful basis to address Yemen's problems. The summit reiterated commitment to support Yemen in fighting extremism, corruption, poverty, maritime piracy and African displacement, as Yemen currently hosts more than 2 million refugees from the Horn of Africa, in addition to a large number of internally displaced persons.

A follow-up meeting of donor countries in Riyadh in February was a major extension of the London Conference. The Riyadh Donor Conference was designed to gather donors to find transparent ways to disburse aid and establish mechanisms that will monitor the reform of economic institutions and practices, the improvement of the investment climate and the rapid replacement of dwindling water and energy resources.

Nine agreements were signed by the Saudi Fund for Development on the sidelines of the Donors Conference for financing several projects in Yemen at a cost of $642 million. Saudi Arabia also agreed to extend funding for the implementation of six projects, in partial fulfillment of its pledge initially made at the first London Donors Conference of 2006 to offer $1 billion to Yemen. Additionally, the World Bank revealed that it would offer Yemen an amount of $480 million to finance development projects as part of the strategy of country assistance to Yemen for the years 2010-2013.

Both the London and the Riyadh Donors conferences aimed to address issues like the tackling of unemployment, water and energy, the role of the IMF, international aid delivery and the role of the Gulf Cooperation Council (GCC). Yemen's high unemployment rate is critical for its stability. Given the dearth of job opportunities inside the country, the greatest obstacle towards building up Yemen's economy lies in the unwillingness of its neighbors to allow Yemenis to work in their countries. Neighboring countries such as Saudi Arabia and other GCC states could gradually open their labor markets to Yemeni citizens.

Yemen's lack of water is also critical as San'a may well be the first capital to lack sufficient water for its population. This water crisis could lead to massive population shifts in the region as well as serious health implications and internal instability with unpredictable security ramifications. The construction of desalination plants in key population centers along the coast and intensive aid to the government of Yemen for a national effort to manage and conserve water are important.

Additionally, neighboring countries could support Yemen in the power sector, for example, connecting Yemen to the regional power grid and assisting construction of Yemen's power infrastructure, while the further development of the Aden Free Zone as an industrial zone that would have a separate administrative authority and appropriate regulations is critical. A special status permitting duty and quota-free shipments to the European Union, the United States and other countries would stimulate investment. This zone could also host projects such as desalination and power production plants, both of which would have an evident impact on the daily lives of the Yemeni people.

It is also important to note the vital role the IMF can play in the implementation of critically needed financial and budget reforms, both of which are fundamental to progress toward a sustainable economy and thus improving the security status. The IMF could assist the Yemeni government in tax reform, which could recover billions of dollars lost through tax evasion, energy subsidies such as reducing subsidies on diesel fuel, and water reform such as increased tariffs for high water usage.

Additionally, international development aid needs to maximize coverage to a wide variety of actors and regions without favoring the government at the expense of opposition groups that have legitimate grievances. Aid should flow through the central government and local institutions. The Social Fund for Development provides a model for aid distribution. In all cases, the flow of aid must be carefully monitored in light of Yemen's pervasive corruption. Approved international government agencies and NGOs could manage foreign aid with transparency and accountability.

Last but not least, the GCC can play a significant role in addressing Yemen's problems, especially in the economic realm. But the GCC as an organization and its individual states are unwilling to open their doors to Yemeni expatriate laborers. They still mistrust the Yemeni government for backing Saddam's 1990 invasion and occupation of Kuwait, and they suspect that the Yemenis will bring with them the infections of Islamic extremism. Given that some GCC countries remain reluctant to give Yemen full membership in the Council, perhaps the GCC might consider granting Yemen "associate status" that would allow freer movement of labor and capital between Yemen and GCC countries. Such a designation would be a vote of confidence and encouragement, and could serve as a basis for reinvigorating the process of economic reform in Yemen.

As it is evident, there is no panacea or silver bullet solution for Yemen. Prerequisite for Yemen's success is the development of a comprehensive plan to address chronic poverty, reform economic institutions and practices, improve the investment climate, introduce national dialogue, restore order and the rule of law, and establish security. Failure to act on these issues will undermine any effort to deal with the threat from al Qaeda or Yemen's internal misery and thus will prolong regional turmoil and violence.


* Antonia Dimou is an associate at the Centre for Strategic Studies of the University of Jordan and head of the Middle East and Persian Gulf Unit at the Centre for Security and Defence Analyses based in Athens
.

Thursday, August 19, 2010

Jordan: A Success Story of the IMF

Photo from: Independent Evaluation Office of the IMF

By Antonia Dimou, Associate at the Centre for Strategic Studies of the University of Jordan, and Head of the Middle East and Persian Gulf Unit at the Centre for Security and Defence Analyses based in Athens

Jordan is an example of how the IMF can foster strong, stable economies that are productive members of the global economy. Jordan is a small country in the Middle East with insufficient supplies of water, oil, and other natural resources but whose economy is based on three characteristics; Remittances from Jordanian labour in neighbouring countries, elspecially in the Gulf states, which are an important source of national income equivalent to 15-20 percent of the GDP; Jordanian exports primarily destined in the region which in turn supplies the bulk of Jordan’s energy requirements; and, Receipt of substantial aid from countries in the region. Thus, a regional economic boom in the 1970s facilitated substantial transfers to Jordan which contributed to rapid growth. Conversely, falling oil prices and associated recessions in the oil exporting countries of the region adversely affected Jordan in the second half of the 1980s.

Specifically, in the late 1980s, inflows of both official transfers and remittances fell, with substantial adverse consequences on budgetary revenues. Initially, the authorities resorted to external borrowing to fill the revenue gap, leading to a sharp increase in external debt. In 1989, Jordan had a 30-35% unemployment rate and was struggling with its inability to pay its loans. Structural weaknesses in Jordan’s public finances and balance of payments were soon exposed, leading the authorities to request the country’s first arrangement with the International Monetary Fund (IMF) in 1989 to facilitate orderly external financial relations and reverse a sharp decline in economic growth.

Economic reforms were initiated as part of an agreement between Jordan and the IMF. The key objectives of the economic reforms in the kingdom focused on the reduction of public debts, reduction of the budget deficits, controlling of inflation, tax reforms, credit policy reforms, investment incentives, privatisation and easier trade policies. Nevertheless, a highly growing population and the unstable political situation in the region have been major impediments to immediately reaping the benefits of IMF-introduced economic reforms.

The first and second Gulf wars of 1991 and 2003 respectively had severe disruptive effects on the Jordanian economy. Jordan’s opposition to the 1991 Gulf war led to the termination of aid from regional countries and the expulsion of Jordanian workforce. The “returnees” boosted the population by about 10 percent. After the 1991 war, Iraq provided Jordan with almost all of its oil needs, part of it free and the rest at discounted prices. Since 2003 however, regional oil producing countries have provided oil grants to facilitate Jordan’s recovery from the negative economic consequences of the second war on Iraq.

In this regional context and in view of its grave economic situation, Jordan agreed to a series of five-year reforms sponsored by the IMF. During the period of 1993 to 1999, the IMF extended to Jordan three fund facility loans. As a result, the government undertook massive reforms with priority on foreign investment and easier trade policies. By 2000, Jordan was admitted to the World Trade Organization (WTO), and a year later signed a Free Trade Agreement (FTA) with the United States. Jordan was also able to bring down its overall debt payment and restructure it at a manageable level.

The ultimate objectives in all of Jordan’s IMF-supported programs were the improved living standards and the expanded employment opportunities. Intermediate objectives have taken the form of specific macroeconomic goals such as higher real GDP growth, low inflation, and the strengthening of external and fiscal positions. Over time, the macroeconomic objectives of the programs, as presented in IMF reports, have become more explicitly linked to the Jordanian government’s social policy objectives. For example, the program supported by the 1996 Extended Fund Facility (EFF) allowed for an increase in real per capita consumption, in order to partially reverse sharp declines in preceding years and, together with expanding employment opportunities, the program was made “politically acceptable” and “socially sustainable”. Similarly, the 1999 EFF-supported program sought to strike a balance between the need for progress toward fiscal sustainability, and “avoidance of undue recessionary effects from rapid contraction”. The main elements of growth strategies in the programs focused on a combination of measures to boost domestic saving and investment, and wide-ranging structural reforms covering the government budget, financial sector, external sector (including trade liberalization), regulatory framework, and public enterprises and privatization.

After almost 15 continuous years under IMF arrangements, the Jordanian authorities have indicated that a Stand-By Arrangement (SBA) which expired in July 2004 marked the country’s “exit” from reliance on IMF loans. The IMF acknowledged that steadfast implementation of reforms had strengthened the economy’s foundation and that Jordan was ready to “graduate” from IMF-supported programs. Still, the Jordanian government and all relevant authorities decided to maintain close relations with the IMF in the context of the so-called “post-program monitoring” and technical assistance.

Nowadays, Jordan stands as a country subject of an evaluation that assesses how effectively IMF assistance helped it tackle major macroeconomic challenges, including the effects of shocks related to political and economic developments in the Middle East since the late 1980s and most importantly during the recent global economic crisis.

According to Dominique Strauss-Khan Managing Director of the IMF, “The Jordanian economy has proved resilient to the global economic downturn, thanks to sound economic management and prudent supervision of the kingdom's financial sector”. At the conclusion of his recent visit in Jordan on April 2010, the IMF director acknowledged that looking beyond the immediate task of managing the impact of the global financial crisis, the Jordanian government’s plans as outlined in its National Agenda head to the right direction towards the implementation of political, economic, and social reforms designed to facilitate the further transformation of the kingdom into a highly-competitive, knowledge-based economy".

As noted, towards the end of 2008, the world witnessed a financial crisis, but Jordan has been minimally affected by that crisis. The Central Bank of Jordan has ensured the stability of the banking system while maintaining monetary stability, which indicated that the economy would not face major problems. In fact, the setting of 12% as a percentage for capital adequacy has preserved the banks from any financial problems and led to a zero percent probability of bankruptcy. The world standard for capital adequacy does not exceed 8%; however, Jordan used a conservative banking system in order to save its banks in 2008. Right after the world financial crisis, banks were requested to disclose all their toxic papers which amounted to 40 million dollars; an amount not considered as a major loss taking into account the profits of over a billion dollars for these banks in 2008.

Jordan has continued its progress in enhancing the investment climate and developing its privatization programs. The Jordanian strategy in attracting foreign and domestic investment achieved portions of its goals and it was based on the Investment Promotion Law approved in 2006 for investment regulatory simplification. According to statistics, investments benefiting from the Investment Promotion Law increased in 2008 to reach JD 2.268 million compared to JD 2.221 million in 2007. In addition, JD 310.7 million of investments in special development zones are included to the total investments for 2008.

In response to the recession, Jordan is executing several major infrastructure projects to be financed by public-private partnerships (PPPs) to stimulate the economy. One of these is a nuclear power plant project, the first such scheme to be built on a PPP basis. Since the start of 2010, Jordan’s fortunes have turned a corner. Remittance levels have stabilised and tourist arrivals have picked up. GDP growth is forecast to be 4.1 per cent this year, rising to 4.5 per cent in 2011.

Additional plans, like grand tourism projects in Aqaba as well as two mega water projects are in line. The first is the Disi water project which will tap an aquifer near the Saudi border and pipe it to greater Amman where some 3 million out of the kingdom’s 6 million population lives. The second is the "Red to Dead" project, which entails pumping water from the Red Sea to the rapidly falling Dead Sea, and along the way siphoning water for desalination and also for the cooling of nuclear projects. These are massive, multibillion-dollar projects that require foreign investment and aid.

The IMF-sponsored success with which Jordan has been able to weather the negative impacts and repercussions of regional and world events, while continuing to achieve comparatively high economic growth rates is an issue worth of being evaluated. But as 2009 and past years showed, Jordan’s economy is closely tied to the economies of other countries in the region, and thus it is important to continue to reform and manage its economic policy so that the kingdom pursues its goal of long-term national economic prosperity.


* Reproduced by Middle East Observer, Issue #3, Vol. 1, May-August 2010



Saturday, August 14, 2010

Israel's Second Disengagement from Gaza

A Gaza weapons factory destroyed in the attacks last January.


Reproduced by Worldpress at http://www.worldpress.org/Mideast/3607.cfm, August 13, 2010


By Antonia Dimou, associate at the Centre for Strategic Studies of the University of Jordan and head of the Middle East and Persian Gulf Unit at the Centre for Security and Defence Analyses based in Athens.


Israeli Foreign Minister Avigdor Lieberman proposed recently a plan that provides for a second Israeli disengagement from Gaza. The plan works to secure E.U. cooperation to rebuild the Gaza Strip and relinquish all Israeli responsibility for Gaza including the lifting of the naval blockade on it.


The plan came amid pressures from the United States and the European Union reinforced after Israel's recent raid on a Turkish-led Gaza-bound flotilla. The plan envisions to grant Israel international recognition that it has ended its occupation of Gaza. Concurrently, the plan effectively grants legitimacy to the de facto government of Hamas in Gaza, since the international community will have to work with the Islamic organization on Gaza, not Israel or the Palestinian Authority.


Israel also announced the intention to look into an international jurists study that will determine what conditions Israel will have to fulfil so that it is recognized internationally that it no longer occupies Gaza.

The Israeli plan has surfaced the Gaza legal debate that has dominated political discussions over the years. In 2005, under the terms of a unilateral disengagement plan, Israel dismantled all its 21 settlements and withdrew its troops from the Gaza Strip for the first time since 1967, prompting suggestions that the territory was no longer under Israeli belligerent occupation but instead under Palestinian administrative control.


Under the terms of the disengagement plan, however, Israel has retained control over the external perimeter of the Gaza Strip, has retained a military presence along the border of Egypt and Gaza, known as the Philadelphi Route, and has maintained exclusive authority in Gaza airspace and exercised security activity in the sea off the Gaza coast. Moreover, Israel has exercised complete control over the movement of goods into Gaza. Israel continues to control most elements of the taxation system, such as VAT, and customs rates on goods destined for Gaza in accordance with the Paris Agreement of 1994 signed between Israel and the Palestinian Authority.


The Gaza Strip and the West Bank have been considered as a single territorial entity for administrative and peace-making purposes. A series of international agreements concluded between Israel and Palestinian representatives like the PLO in pursuit of a peaceful solution since 1967 have shaped international perspectives on the conflict. Following negotiations at Oslo in 1993, Chairman of the PLO Yassar Arafat and then-Israeli Prime Minister Yitzhak Rabin signed the Declaration of Principles on Interim Self-Government Arrangements. The terms of the agreement provided "the two Parties view the West Bank and the Gaza Strip as a single territorial unit, the integrity and status of which will be preserved during the interim period."


Arguably, since Gaza and the West Bank are considered a single territorial unit and Israel still exerts control over the West Bank, it is legally profound that the Israeli authority is extended to Gaza regardless of military presence, and thus Gaza will continue to be considered occupied territory under Article 42 of the Hague Regulations. This is the case regardless of any Hamas-Fatah divide, any Hamas victory in future legislative elections and, most importantly, any kind of Israeli disengagement from Gaza alone.


Realistically, there are two major issues that need to be addressed before an Israeli disengagement takes place. The first is the possibility of a humanitarian disaster that may emerge as consequence of Israeli disengagement and that will be attributed directly to Israel. The second is related to steps that have to be taken so that total disengagement from Gaza does not turn into an intractable security problem, given the loss of Israeli control over the flow of weapons into the area.

Egypt's role is central in this regard. The Rafah crossing is the alternate land route for the transfer of goods into Gaza. The transfer of goods by sea is not a serious option since the loading capacity of Gaza's seaport and the existing marina is too small an area and not adequately operative at this stage. The supervision of the flow of goods to prevent possible smuggling of weapons thus falls in the hands of Egypt, which has an interest to prevent weapons smuggling via the Rafah crossing.


For many, this may be a starting point for Egypt to assume full responsibility for Gaza similar to the situation that existed prior to the Six Day War of 1967 where the Egyptian military not only controlled Gaza but was also exclusively responsible for its security. Even scenarios and assumptions of a confederation or a loose kind of federation between Egypt and Gaza are likely to resurface.


However, these assumptions are not as simple as they may suggest. Egypt is worried by the Hamas rule in Gaza and the possible spill-over effects that may cross its borders. In the eyes of the Egyptian government, Hamas is a branch of the Muslim Brotherhood, the main political challenge to its rule. This worry was recently met with the reveal of a Hezbollah network in Egypt that smuggled weapons into Gaza and allegedly intended to act against the government.


Egypt has legitimate concerns that pressure on Gaza will cause repercussions in Cairo. Because of this, Cairo exerted all its efforts and sponsored the Hamas-Fatah talks to reach an agreement on Palestinian reconciliation.


The split between Fatah and Hamas and Egyptian efforts to bring the two sides together have been critical. By 2009, Hamas was interested in a bilateral dialogue with Fatah, and by February they had a dialogue. Then the Goldstone report erupted and Hamas attacked Abbas for delaying the report. Hamas has expressed three key requirements for reconciliation: restructuring the Palestinian election commission, redesigning the role of the president and guarding the concept of resistance.


However,Hamas–Fatah talks under the aegis of Egypt have failed, and certain political circles in the region are convinced that in the current political climate any such talks will continue to fail, no matter the interlocutor.Right now as the reality on the ground unfolds, the Palestinians need to reorganize and face the four most major issues, namely negotiations, reconciliation, elections and institution building. Priority has to be given to reconciliation so that Palestinians appear with a united internal front and have one "saying."


What has become clear is that it is high time for Israeli and Palestinian leaders to recognize the enormity of the responsibility that they bear, not only for the future security, stability and prosperity of their people, but for the well-being of the entire region. Today, all sides should deal on a regular basis with the same important issues and come up with a meeting of peace partners. Only together they can create a future of inclusion and unity. Good will is not enough. Action is required for Israel and the Palestinians to make sure that the emerging Palestinian state does not become a failed state.


Friday, August 6, 2010

EDITORIAL: Sinking Traditional Relations: Rhetoric or Reality?

By Antonia Dimou, Editor of Middle East Observer, Head of Middle East and Persian Gulf Unit, Defense and Security Analysis Institute, Athens


The May 31st raid by Israeli commandos on a Turkish-led flotilla bound for Gaza with the aim to get around the Israeli blockade and deliver humanitarian aid as well as to pressure the international community to review its sanction’s policy has marked a turning point in the course of Turkey-Israel relations. Not least, the event is expected to have catalytic impact on the regional balance of power, as according to cetrain political circles, Turkey’s shooting into an Islamic orbit reshuffles the deck of political and diplomatic cards in the region and creates an opening for certain strategic rearrangements.

Only a decade ago, Turkey was considered Israel’s major Muslim ally in the region. The two countries commenced a multi-level relationship that included military and intelligence cooperation, exchange of technological and technical know-how in industry and agriculture, the securing of financial credits for Turkey, and academic cooperation. Relations began to deteriorate publicly in 2009 when Turkish Prime Minister Erdogan sparred with Israel’s President, Shimon Peres, at the World Economic Forum in Davos.

The flotilla event worsened Turkey-Israel relations to unprecedented levels and it is not believed to be coincidental. Rather it was a calculated move aimed to secure Turkey gains both domestically and regionally. Domestically, “Israel punching” is the most profitable political move in a country where anti-Israel sentiments are high. Regionally, Turkey’s revised foreign policy outlook is well known and comes from current Foreign Minister Ahmed Davutoglu. In his view, Turkey’s location at the center of what he calls the Afro-Eurasian space enables it to rise to the status of a “center power” for the whole region. By eliminating conflicts with its neighbors at the level of zero problems, Turkey will be able to consolidate its regional leadership and play a key global role in the post-Cold war regional environment.


The flotilla event has actually made the world pay close attention to Turkey which through a combination of economic successes and Islamic leadership is trying to evolve to the level of the “center power” that bridges the Middle East with the West. Not least, the flotilla event has made the world pay close attention to the Israeli blockade on Gaza and underscored the necessity for all sides involved to walk on the path of Israeli-Palestinian coordination and dialogue in a way so that any emerging Palestinian state does not become a failed state.

In the current issue of the MEO our contributors represent each country that directly or indirectly was involved in the political and diplomatic handling of the crisis. They have articulated their views professionally on the impact and the lessons learnt from the Freedom Flotilla. The MEO is honored to have a Statement by HRH Prince El Hassan Bin Talal who served as Crown Prince of Jordan from 1965 till 1999 and whose initiatives have been catalytic to international decisions and resolutions. HRH very accurately underlines that the freedom flotilla has developed a new dimension to the Israeli siege on Gaza, and stresses that “the Near East, once known as the Cradle of Civilisation, has become a tinder box of war; but in losing sight of peace and humanitarian law, we are surrendering one-by-one to the crushing power of the opportunist 'hatred industry'”.

We could not agree more.


Middle East Observer, Issue #3, Vol. 1, June-August 2010


CONTENTS OF MIDDLE EAST OBSERVER, Issue #3, Vol. 1, June-August 2010


STATEMENT ΒΥ ΗRΗ Prince El Hassan Bin Talal of Jordan

INTERVIEWS:
General (Ret.) Dr. Efraim Sneh: "Turkey Taking Sides Ends Its Regional Role", Conducted by Antonia Dimou
Ambassador Marwan Abdelhamid: "Lift the Siege on Gaza as soon as Possible", Conducted by Antonia Dimou

ANALYSES:
"Turkey's Willing Road Accident with Old Friend Israel", by Bural Bekdil
"Lessons Learnt from the Freedom Flotilla: An Israeli View", by Smadar Perry
"Impact of the Freedom Flotilla: A Palestinian Perspective" by Rami Dajani
"The Battle if the Siege, Border Crossings and Reconciliation Starts Now", by Oraib Rantawi
"The Gaza Naval Incident and the Need for a New Greek Perspective", by Zacharias Michas
"Turkey and the Freedom Flotilla", by Sylvia Tiryaki
"Flotilla of World Hypocricy", by Boaz Ganor

NEWS DIGEST:
- UN Security Council Approves New Iran Sanctions
- Resolution 1929 (2010), Security Council, 6335th Meeting, New York, June 9, 2010 (Excerpts)
- Israel Presents Second Disengagement Plan from Gaza

NEWS COMMENT:
Israel's Second Disengagement from Gaza: A Magic Cure?

ECONOMIC MONITOR:
- Foreign Investment in Oman
- POWER-GEN Middle East Conference and Exhibition, Qatar, October 6-8, 2010
- Creation of a West Asian Forum: Asia-Gulf Business and Security

SPECIAL FEATURE:
"Jordan: A Success Story of the IMF", by Antonia Dimou


The featured interview of General (R.) Dr. Efraim Sneh, Chairman of the S. Daniel Abraham Center for Strategic Dialogue and twice deputy minister of Israel addresses the issue of legality of the Israeli action and the imminent effect of the flotilla event on Israel-Turkey relations.

The interview of Ambassador Marwan Abdelhamid, member of the Central Council of the PLO who previously served as Head of the Diplomatic Representation of Palestine to Greece tackles the issue of the impact of the Israeli blockade on Gaza and stresses that suspension of any external interference in Palestinian affairs is urgent.

The Turkish-led flotilla bound for Gaza was a planned move by Ankara aiming at multiple gains both at home and in the region. With parliamentary elections a year ahead and his government looking rattled for the first time since coming to power in 2002, the Turkish Prime Minister smartly calculated that he could successfully hunt votes with his love affair with Hamas and hate affair with Israel, as articulated Burak Bekdil.

Mrs Smadar Perry points out in her Op-Ed analysis that the military attack on the Mavi Marmara was a grave mistake, acknowledging that it is not a secret that deterioration of relations between Ankara and Jerusalem was kind of crawling gradually with the starting point in Davos that remains to be seen as a significant example of the new political approach in Turkey, according to which Israel is to lose its priority in favor of Ankara's new foreign policy of minimizing rifts and diversities with close neighbors in the Arab and Muslim world.

Rami Dajani indicates in his in-depth analysis that what is perhaps new in the recent flotilla event is the emergence of an energized momentum seeking enforcement of rights and international laws through non-violent means of resistance and activism which under certain circumstances, may succeed in bringing some measure of justice to the Palestinian people, and through that eventually peace and security for all states in the region.

For his part, Oraib Rantawi deals with the issues of the Israeli Siege of Gaza and the Palestinian Reconciliation, while interestingly supports that there is a very odd situation underway whereby most of the world believes that the siege on Gaza is "unsustainable", except the Palestinian Authority (PA) and the Egyptian government.

Zacharias Michas indicates in his analysis that the Freedom flotilla event is expected to have catalytic impact on the regional geopolitical balance that Greece should exploit and maintains that the fluidity in the regional system of states now becomes apparent as Turkish aspirations collide with the existing regional order, forged by the US and Israel.

Mustafa El-Labbad elaborates that the flotilla incident sent unprecedented powerful shockwaves on regional and international power equations and discloses that Turkey has handled the crisis with consummate skill with the aim to tighten Israel's international isolation and to strip it of its conventional diplomatic strengths, with special emphasis on the support of international public opinion and Washington's unqualified backing.

Sylvia Tiryaki deals with the background as well as the aftermath of the Freedom Flotilla and concludes that only time can show whether Israeli blockade on Gaza is not only contrary to International Law but also strategically counterproductive for Israel.

Finally, Boaz Ganor points out in his op-ed analysis that the Turkish Prime Minister is pulling Turkey away from the secular path of Kemal Ataturk which has guided Turkey toward prosperity and pragmatism for so many years and argues that Erdogan is promoting an Islamic revolution in Turkey of the most dangerous variety, that is a non-violent cultural revolution.

Wednesday, June 16, 2010

EDITORIAL: Tracing Peace Between Israel and Syria


by Antonia Dimou

A major area of concern for all of us today involves conflict resolution. People everywhere in our region deserve an era of regional prosperity, of partnerships that deliver jobs, better education and stability. Yet, no country in the Middle East can realize its full potential while the region is in conflict.

To achieve peace, sides that have long defined themselves in opposition to each other must develop a new psychology. The psychology of conflict however, is difficult to break. But history, including that of Europe, shows that even the bitterest adversaries can make the transition when peace delivers on its promise - when human energies and material resources once drained by hostilities are channelled toward building national infrastructure, and promoting good governance. As entire societies become stakeholders in the new status quo, peace becomes self-reinforcing.

Today, what becomes more urgent than ever before, is the need to strengthen our common action for Israel and Syria. It is time for Israeli and Syrian leaders to recognize the enormity of the responsibility that they bear, not only for the future security, stability and prosperity of their people, but for the well-being of our entire region.

The second issue of the Middle East Observer deals with the mapping of the peace process between Israel and Syria and the prospects for the resumption of negotiations with the mediation of a third party. The most recent Syrian-Israeli proximity talks orchestrated by Turkey in 2008 revived a long-dormant track of the Arab-Israeli peace process and laid the "bottom lines" of Israel and Syria for peace, though the talks were suspended because of the Israeli military operations in Gaza. Israel's "bottom line" for peace with Syria is the disengagement of Damascus from Iran, and the Islamic organisations of Hamas and Hizbollah, while Syria's "bottom line" for peace with Israel is the return of the Golan Heights and tracts in the Jordan River Valley.

Our contributors have presented their views on the content of Israeli-Syrian talks, offered a background of the Turkish mediation constructive role, presented Syrian and Israeli demands as well as their respective reservations and proposed key-provisions for the resumption of the stalled peace talks. The featured interview of Itamar Rabinovich, Israel's former Ambassador to the United States and former Chief Negotiator with Syria in the mid 1990's, underscores that Israel needs more than a demilitarized Golan - which is too small an area - as the need is for a much larger area of limited deployment and a monitoring station on Mt. Hermon. Ambassador Rabinovich concludes with a valid question as to if the Syrian regime is ready to take the risk of a genuine opening up.

In the quest of Israeli-Syrian relations, Prof. Najib Ghadbian presents a Syrian perspective and acknowledges that for the resolution of the conflict between Syria and Israel, both governments must demonstrate determination in leading their respective public and to make all necessary concessions. In the same spirit, Dr. Alon Ben-Meir supports that Syria must be a top priority for Israel and underscores that if Syria offers peace, normalization of relations and meets Israel's legitimate security concerns while Israel still refuses, the Golan will become a national liability rather than a national security asset.

Additionally, Prof. Meliha Altunisik provides a blueprint of the mediation role of Turkey and supports that for all the parties involved, the US engagement seems nowadays to be necessary for the process to move forward with appropriate security and financial commitments. And, that Turkey could still be a partner if that process starts.

Finally, Ayman Abdel-Nour points out in his analysis, the roles of key-players for the resumption of Israeli-Syrian peace talks and explains Syrian intransigence through the prism of the fact that the current situation helps the Syrian regime avoid any liability for its poor performance in economy and its human rights record - at least till the liberation of the Golan Heights.

Wednesday, February 10, 2010

INTERVIEW with Jalil Roshandel: "The Nuclear Issue is More than it Appears to be for Iran"


Conducted by Antonia Dimou
Reproduced by the Middle East Observer, Issue #1, January 2010, Institute for Security and Defense Analyses, Athens.





Why Iran, according to your view, has invested a great political and national capital to become nuclear?


Several different factors have contributed to Iran's decision to go nuclear. The readers remember that in the 1980s Iran was in the middle of a long war with Iraq and it is quite natural that it felt possession of any kind of weapons of mass destruction could make the life of war shorter. This initial feeling of insecurity was enhanced by the US and European pressures during the past thirty years followed by economic sanctions and attemps to isolate Iran in the international arena. Iran had to adjust its expectation of nuclear capability and limit itself to peaceful activities. At least since 2003, Iran has persistently claimed that it is not seeking military nuclear capacity. However, it looks like Iran has been unable to secure the international community's confidence and trust due to old controversies in its nuclear program and president Ah-madinejad's controversial remarks in his foreign policy goals.

Caught in a real predicament, on the one, Iran wants to have something to bargain in its foreign relations with big powers. It understands that nuclear technology will give it more muscle and more power in its relations with others. In addition there is some misunderstanding in the way Iran and the international community interpret the text and the promise of the non-proliferation treaty (NPT).

The United Nations set a deadline of Dec. 31, 2009 for Iran to comply with a tentative agreement. Two days after that expired, Iran issued what it called an "ultimatum" giving the West one month to agree to a counteroffer, whose details are not divulged. How far can Iran go and continue to gamble on its nuclear policy and defy the UN?

A combination of chaos in the international system, worldwide economic uncertainties, as well as world powers' involvement in issues like international terrorism (Afghanistan, Iraq, Nigeria, Yemen etc), enduring regional conflicts (Palestinian-Israeli stalemate in particular) has temporarily provided Iran with some sort of insulation. The deadline of December 31st expired, but despite warnings, the World Powers failed to agree on any significant and effective sanctions on Iran. Many doubt as to the efficiency of any sanctions. On political track, there has been nothing but a deadlock. China and Russia each follow their own interest in this business. All possible solutions to get out of the deadlock have been rejected by Iran. Iran does not accept any exchanges on the low enriched Uranium with the type that can only be used by the nuclear reactor.

It is quite possible that Iran does not have any serious counteroffer and is simply testing waters or throwing the ball into any available court to gain time.

Iran and the United States have been competing hard to gain Russian support for their mutually antagonistic nuclear policies. Russia is trying to get the most benefit out of this tripartite connection as seen in the recent meeting between Obama and Medvediev during the November 15, 2009 APEC conference in Singapore. What, do you think, are the Russian motivations and is Russian policy vis-a-vis Iran capable of causing structural trouble for the Islamic Republic, which is now in its deepest political hurdle at home and lowest credibility at the international level?

Russia has a historical interest in Iran. Since the collapse of the Soviet system, this interest is more geared toward immediate economic gains through sales of military material or nuclear technology while the long term strategic advantages are being hidden in the back burner. Russia and Iran have a common concern about the US influence in the region, however this common concern is not sufficient, or of a survival nature to push them toward a complete security alliance. For instance, while Russia sees Iran as a future market for military and nuclear material, it does not want Iran to become a fully independent state in nuclear technology. Russia appears more committed to the interna¬tional community and the West than to Iran. On the other hand, Iran prefers to have a friend like Russia or China in the UN Security Council rather than having all five permanent members against it. The result is a fragile relation between Iran and Russia.

After the last presidential election in Iran (summer 2009), the Islamic Republic of Iran is facing the biggest challenge from inside since its inception in 1979. This situation causes Russia's reasonable hesitation, but yet they are unable to identify what can be expected from the unfolding situation. Russia -unlike the Soviet era - does not have the ideological influence among the Iranians; neither have they a sufficient military or political weight among the Iranian elite and the politicians. The general public does not trust them either. An anti-Russian and anti-Chinese slogan was heard in all demonstrations in Iran since the recent controversial presidential election. This means that Russian capacity to cause significant structural trouble for Iran will remain limited. Being fully aware of the limits of their power, the Russians must have their goals prioritized to "economic" first and then to "strategic" level when possible.

The so-called progressive "Green Movement" in Iran, has emerged amidst the presidential elections of June 2009. What is the substance of this new nationalistic awareness? How far do you think this movement is capable to pressure the regime for fundamental changes?


The Islamic regime does not tolerate any changes and is not willing to compromise on any substantial structural components of the political system. One of the methods that could impact such a system is change from within. The "Green Movement" was, and still is, a movement determined to make structural changes from within the system. The few representatives of the movement that have remained outside the country like "Kadivar" in the US or "Mohajerani" in the UK have made it very clear that the movement supports the Islamic nature of the system, but has differences with the leadership monopolizing all sources of power in its hand. Surprisingly, the 'movement' is a conformist movement despite its radical image.

The element of conformity makes it difficult to determine how far the move¬ment can go assuming that it may survive.

Based on what one can see during this past few weeks, the system will attempt to paint the fagade but do everything it can to radicalize and gradually eliminate the opposition. The movement is very popular both inside and out, but the leaders of the movement are not necessarily the leaders of those in the street; it has more a symbolic value and is in a transitional format that hosts the opposition, but is not guaranteed to sustain itself. Continuous blunders on the part of the regime in Tehran can transform the opposition and push them to finding other ways of expression; however the reaction of the suppressive system cannot be predicted.

According to EU officials, Iran's internal "state of turmoil" following its presidential elections makes it much more difficult for Tehran to focus on the international community's efforts to resolve the nuclear standoff. And, that clearly, the future of Iran is not solely dependent on US policy as its internal dynamics seem to be even more important. Having this statement in mind, what may be the true implications of internal "turmoil" for the domestic and foreign affairs of Iran?

I agree with the statement’s logic; however one should consider that for Iran the nuclear issue is more than what it appears to be. There is a hidden factor of national dignity and pride attached to what has been painted as domestic technological achievement. Adding to the complexity of Iran’s nuclear issue is their interpretation of the text of the Non-proliferation treaty and their expectation of the IAEA to support their rights. The egalitarian views and expectations from the international system have made the issue far more complicated. It seems like there are fundamental differences between Iran,the EU and the US on the nuclear issue.

The incidents of the aftermath of the controversial election last summer have already affected negatively Iran’s relation with the West. The domestic situation is unpredictable. Not all those forces that used to come to street and claim their “nuclear rights” would be willing to support Ahmadinejad’s foreign policy any more. At least, and based on the officially announced statistics, the proportion of votes against Ahmadinejad is 13 million versus 24 million. That means one third of the population opposes Ahmadinejad and does not see him as a legitimate president. Based on other estimates, one has to reverse this proportion to find out if people will still come to street to claim their “nuclear rights”.

On the other hand, the old school of thought in political science tells us that foreign policy is the continuation of domestic policy by other ways and means. US policy did not shape the dynamics of Iran’s domestic unrest; it was the result of three decades of resentment and frustration with the system. It is therefore more realistic to assume that there is no other option but to retreat and bring unity or continue the repression and prepare for the collapse of the system.

What are the prerequisites for a substantial rapprochement between Iran and the US and what factors may hamper the establishment of direct talks between Iran and the U.S.?

There is a laundry list of prerequisites and it is going to be a long and painful path. Both sides are still testing the waters and trying to hide preconditions while pretending they want an unconditional direct talk. For sure, there are legitimate concerns on both sides that need to be considered, but it really does not make sense to look for preconditions. As a concerned scholar, I don’t see any of the two ready for such talks. Both have to satisfy domestic elements that oppose the idea, and then reassure their international friends and allies that nothing will alter their commitments toward them. The US will probably have to convince Israel, while Iran has to convince Hezbollah and the Palestinians and perhaps a host of other less important players. Both need to define their Iraq and Afghanistan policies in different modalities and avoid unnecessary confrontation. Both should stop demonizing each other in their public and private spheres.

Should we expect a transformation in the approach of the US and the American mainstream media toward Iran during the tenure of president Obama?


A year ago, when President Obama took office there was a better environment for a real policy change, but during the first year different factors worked against or at least appeared to be impeding the goal. However due to US interests in the region and the ongoing wars in Iraq and Afghanistan, it has remained in Obama’s policy priorities. It is quite possible that somewhere down the slow path of direct and indirect contacts the two countries find a middle way. Changes in foreign policy approaches have never been easy and the US media is not monolithic. In many cases they do support US national security and national interest goals, but remain critical and challenging toward Obama’s policy. I don’t see why they wouldn’t transform if they realize that overall policy will help US security and interests. A point that can be made is the influence of special interest groups in the US media, particularly those who feel Israel should be given the highest priority. Such groups should consider that more opportunities will be created through engaging Iran in the international community as opposed to its isolation from the international system.

Iranian President Ahmadinejad recently said the Iraqi elections, due in early March, will be the starting point for establishing the stability and security of Iraq and the unity of the Iraqi people. Realistically, today’s Iraq seems to have created a number of challenges and opportunities for Iran. How does Iran perceive the present volatile situation? What are the chances for Iran-Iraq relations and what will be the implications for the region?

Most of us often take Ahmadinejad too seriously. Part of what he says is only for domestic, local and regional consumption. He is either unaware, or trying to ignore that Iran and Iraq have tremendous strategic differences and unresolved disputes, not including differences at the highest level of religious hierarchy. In recent weeks, we have only seen a small demonstration of these controversies in the form of disputes over the oil fields. The war with Iraq has ended with a ceasefire accepted by two men: Ayatollah Khomeini and Saddam Hussein. None of them are alive today and that ceasefire has to transform into a peace treaty. If an independent and secure Iraq was unable to produce that kind of peace in the region, if Ahmadinejad (who is known for his controversial and trouble making statements) does not pave the ground for peaceful coexistence with Iran’s neighbours, then we need to prepare for a serious problem and in reality another war in the Persian Gulf.

Israel and Syria have conducted some kind of indirect talks with the aim to normalise bilateral relations. The talks have been greeted with resounding silence in the Iranian press. Recently, Iranian Foreign Minister Mottaki, visited Damascus and held meetings with senior Syrian officials. How much Iranian official visits to Damascus are related to possible Syrian rapprochement with Israel for the purpose of settling the Golan Heights? Or is there a relation with the worsening of the situation in Iraq, Afghanistan and Lebanon?


I strongly believe that Syria-Iran’s relation is tactical and both sides use each other as an instrument for policy purposes. There is a significant amount of pragmatism in Syria’s foreign policy. In my opinion Syrian foreign policy goals are prioritized as follows:
1. Getting to some sort of workable solution on the Golan Heights with Israel.
2. Mending relations with the United States as a direct consequence of the previous goal.
3. Relations with other Middle East countries.

It is under this third category that the relation with Iran and Hezbollah makes sense. Syrian-Israeli rapprochement irritates Iran, but it is by no means unexpected. If Syria comes to terms with Israel, Iran’s relation with Hezbollah can be affected, but not interrupted. It is also possible that the Israelis return the disputed Sheba farms to either Hezbollah or Syria from whom it was originally captured. This will totally disarm Hezbollah and Iran for that matter.

There is also a probability that the diplomatic visits are arranged by Syria to send a message to Israel that if a desirable outcome is not achieved, then Iran’s card will be played.


Jalil Roshandel is Associate Professor and Director of the Security Studies program at the Political Science Department, East Carolina University. He has held several research and teaching positions at various institutions, including the University of Tehran, the Institute for Political & International Studies (IPIS) in Iran, Copenhagen Peace Research Institute (COPRI), the Middle East Technical University (METU) in Turkey, the Stanford University, the Center for International Security and Cooperation (CISAC) , University of California, Los Angeles (UCLA), and Duke University, North Carolina.

THE STATUS OF JERUSALEM

By Antonia L. Dimou,
Reproduced by the Middle East Observer, Issue #1, January 2010, Institute for Security and Defense Analyses, Athens.

The Israeli government of PM Netanyahu appeared recently in the Israeli and the Arab press willing to resume peace negotiations with the Palestinians and ready to discuss the core issues of the conflict, including the status of Jerusalem.

It is true that the status of Jerusalem is at the core of the Israeli-Palestinian conflict. No Muslim leader will sign away Jerusalem to Israel, no matter how generous any peace agreement could be. The given estrangement of views among both sides as expressed in the context of Camp David II, reinforces the fact that Jerusalem, in the heart of the conflict, is the key to any comprehensive peace settlement. So a mutually acceptable solution to the future status of the city is imperative. And any possible solution acceptable both by the majority of the Israelis and the Arabs at large, must bear in mind the repeated and virtually unanimous positions of both sides. No Palestinian leadership will ever accept a permanent status solution, which fails to give the Palestinian state part-sovereignty over Jerusalem and no Israeli government could ever accept a re-division of Jerusalem.

Realistically, there are two alternative endings to the search for the final status of Jerusalem: Israel and Palestine agree to share an undivided Jerusalem and peace is achieved on that basis, or both parties fail to agree on the city’s status and peace cannot be achieved. The first alternative undoubtedly consists a sobering possibility that should stimulate peace-seekers to further explore the potential of assigning sovereignty over an undivided Jerusalem.

In this sense, it will be essential to draw a distinction between the ancient walled city where the holy shrines of the three religions are located and the remaining outside areas. These areas were added in response to population growth and successive decisions such as that of the Arab municipality in 1955 and of Israel since 1980, to extend the city limits.

According to proposed solutions, the walled city would belong to no single nation or religion; no state would have political sovereignty over it and no flags would fly. International guarantees will make holy places accessible to everyone, overseen by a council representing the highest Jewish, Muslim and Christian religious authorities. Each authority will be responsible for maintaining its own holy sites and participating on equal footing in the city Administration.

Such a solution would require cooperation rather than a new partitioning of the city and continuing domination of one people over another. Concerning the urban areas, a compromise is promoted. Specific areas to the East are proposed to come under Arab sovereignty and will be linked geographically and demographically to the shrines with their surrounding Christian and Muslim quarters within the walled city. Similarly, areas to the West will be under Israeli sovereignty and linked to the wailing wall, thus forming an uninterrupted entity. All this will allow Israelis to keep Jerusalem as the undivided capital of Israel, yet the walled city will not be assimilated into either side, and peace and brotherhood will become a shared responsibility.

In this way, the vision for Jerusalem formed half a century ago by Theodor Herzl, the founding father of Zionism can come true. According to Herzl, Jerusalem will simply be extra-territorialized belonging to nobody, yet to everybody. It would become the holy place common to the adherents of all faiths, the great condominium of culture and morality.

Monday, October 26, 2009

CYPRUS: The Time has Come...


Op-Ed

Reproduced by Worldpress

By Antonia Dimou
Athens, Greece
June 12, 2008


Today, the Mediterranean is on the frontlines, perhaps it is the frontline, of a global struggle for peace and development. In solving long-term conflicts, in achieving genuine development and reform, in all these ways, the Mediterranean is engaged in a great enterprise. The results will impact the entire world. And we who are on that frontline look to the friends of peace and freedom for support and partnership.

I would like to stress from the Greek point of view, the core challenge: ending the problem of Cyprus. Given the headlines from elsewhere in the region, some of you may wonder if this is, indeed, still at core of solving regional conflicts. Let me say that it remains central to the region, as well as the international agenda.

No other conflict has cast such long shadows on our globe, or been used to cause such division, or promoted such bitterness. The time has come to find a viable and long-lasting solution to the problem of Cyprus, in a way that could guarantee Mediterranean stability and serve as a precedent for solving other regional disputes, most prominently the Palestinian-Israeli one.

Greece supports a solution to the problem of Cyprus for a number of important geopolitical reasons. First, partition is not deemed beneficial for either country in the region. The 1947 Indo-Pakistani partition is a good example. Though accepted by both sides, it was accompanied by an arms race that has ultimately turned into a nuclear rivalry. Having this model in mind, it is not difficult to realize that an ongoing arms race in Cyprus would guarantee further instability in the wider region.

Another major concern of Greece is the possibility of the emergence of fundamental Islamic tides in Northern Cyprus. In the case of partition, radicalization of Islamic elements in Northern Cyprus as a result of economic or political unrest is a possible development that runs contrary to regional security.

Additionally, the possibility of the permanent division of the Cypriot capital will constitute a detrimental development for Israel and the Palestinians, as the current status in Nicosia is similar to the pre-1967 partition of Jerusalem. The Cyprus partition would constitute a bad precedent for the Israeli and Palestinian claims over an undivided Jerusalem, which is one of the major issues to be tackled in any final Arab–Israeli peace agreement. On the contrary, a federal solution would unite Nicosia and could strengthen Israel's and the Palestinians' case for a similar preferred position on the final status of Jerusalem.

Though in a different context, a shared rule arrangement in Cyprus could also be the model for a broader regional structure between Israel and its closest neighbors, namely the Palestinians and Jordan.

That said, it would be useful if more American and European diplomacy were directed towards the Cyprus issue. An agreement on the political future of the island will undoubtedly have positive spillover effects for the Eastern Mediterranean and the wider region.

Bringing Greece, Israel, Cyprus, the Palestinians, and possibly Turkey together would constitute a significant contribution to regional security. Peacemaking and multilateral cooperation is a step toward a regional future of hope. But it is only one step. The young people of the region know we need to revitalize the engines of peace to promote growth and real development.

When regional leaders talk to their youth, they can hear their energy and keenness and belief in the future. They are asking them to make a difference, to have the courage to make a difference, to act now to make a difference.

They must respond...


Note:

In April 2008, the symbolic crossing over the United Nations-controlled buffer zone in Nicosia opened for the first time in 45 years, a move agreed at a breakthrough meeting in March between new Cyprus President Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat. The two leaders also agreed to resume reunification talks. They met again in late May. (Photo: Alex Mita / AFP-Getty Images)


Sunday, October 25, 2009

ALTERNATIVE STRATEGIES FOR GULF SECURITY: Kuwaiti, Iraqi and European Perspectives

Reproduced by the Middle East Policy Council Journal, http://www.mepc.org
The following are excerpts from conference presentations by Sami M. Al-Faraj, Mustafa Alani and Antonia Dimou (edited for publication by rapporteur Michael Kraig).


A KUWAITI VIEW
Sami M. Al-Faraj, Kuwait Centre for Strategy Studies (a private research institution)
To combat negative trends in Gulf security since the invasion of Iraq, and to create a new stability with strong regional foundations, Dr. Al-Faraj recommended a holistic, cooperative and comprehensive vision for Gulf security from the standpoint of "small states" in the Gulf, including his native Kuwait. He began his presentation on an extremely positive note, calling for cooperation rather than retaliation for past wrongs:

If the GCC nations were to follow a vindictive strategy vis-à-vis their former and present adversaries, this will surely come to haunt them. . . . As the great Muslim scholar Ibn Khaldun tells us, there are lessons in history for us to emulate.' For the GCC nations, there is no greater lesson than to follow the example of those who took the hand of former adversaries and worked together with them to build a better future.

However, Dr. Al-Faraj was careful to lay out the myriad obstacles to progress on a multilateral basis. Among other things, he drew attention to the "problem of size," that is, the diverse population and financial and military capabilities of the Gulf states. This, in turn, creates a "problem of influence" wherein large states inherently enjoy greater say in the direction of regional policies. This creates a conflict of interests and a persistent lack of trust. Moreover, the pace of current events is outstripping Gulf states' ability to react to them in a strategic fashion, and there is a shortage of qualified personnel who "can think about and manage change." Finally, Dr. Al-Faraj criticized the continuing influence of outdated "strategic traditions" and their mistaken application to modern situations.

A Small State's Viewpoint
What is the view of the small state in the international system? According to Dr. Al-Faraj, the small state "lies at the outer sphere of the regional system, far away from its [geopolitical] centre of gravity." The small state possesses limited defensive capabilities as well. To make up for this lack of political and military influence, the small state "practices proactive diplomacy," using "economic power as an intrinsic arm of its defense policy" and searching "for a counterweight power [ally] for its survival," which in practical terms means that the small state "attunes its grand strategy to the interests of that [allied] power." However, despite this picture of dependency and strategic weakness, Dr. Al-Faraj argued that the small state "enjoys a qualitative edge vis-ΰ-vis its would-be aggressors, based on better management of [its] resources."

Future Threats
Dr. Al-Faraj also outlined the "probable politico-military threats to the security of the GCC in the period 2004-10." These include

- A continuation of the belief in a strategy of dominance in the thinking of elites in Iran and Iraq;

- Over-reliance on non-Gulf forces in charting a security policy for the GCC nations;

- Lack of alignment between GCC interests and those of other regional players;

- Disharmony between the priorities of the GCC nations and those of the United States as a result of the ramifications of the September 11 terrorist attacks on the United States;

- Internal instability due to social, economic and political developments; and

- The spillover effect of the Arab-Israeli conflict (the negative consequences of Israeli policies on the stability of the Gulf, despite geographic distance).


Future Economic Threats
Furthermore, Dr. Al-Faraj outlined the "probable economic threats to the security of the GCC in the period 2004-10":

- A steep fall in oil prices;

- An inability of regional states to adequately meet the challenge of WTO Treaty obligations, thereby undermining real progress toward economic liberalization and economic growth;

- An increase in rivalry among GCC nations over their traditional economic roles;

- Replication of similar economic products and manufacturing across Gulf states for nationalistic reasons, rather than a more efficient allocation of resources across state borders based upon comparative advantage in specific areas;

- An increase of oil production and exportation by Iraq and the Caspian Sea region and the growth of Iraq over time as a new "swing producer" that may not calibrate its policies with the desires of its neighbors; and

- A failure in the management of resources by Gulf states, leading to persistent inflation, deficits and unemployment and continued problems with economic diversification.


Threats from Societal Change
Dr. Al-Faraj also detailed the myriad "social threats to the security of the GCC" during this same period. In particular, Dr. Al-Faraj predicted domestic "instability and tension" due to

- An inability to meet the aspirations of an increasingly younger population;

- A failure to end the current welfare state in most Gulf economies;

- An increase in tribal and sectarian tensions;

- An inability of leaders to balance the national element of the population with the immigrant population;

- The importation of politically inspired violence from adjacent nations (such as Iraq or Pakistan); and

- An inability to adequately fight drug addiction and other social diseases.


Potential Environmental Threats and Costs
Finally, adding to these geopolitical and domestic challenges, Dr. Al-Faraj drew special attention to an often-overlooked issue: the probable environmental threats to Gulf security over the next several years. According to Dr. Al-Faraj, "The long-term impact of conflict-generated pollutants" must be studied more closely. What are the environmental consequences of the latest round of fighting in the region? In addition, Dr. Al-Faraj predicted

- An increase of marine pollution due to heavy maritime traffic;

- A failure to apply standards on a national or regional basis to accurately gauge the environmental consequences of ongoing development projects;

- A failure to raise public awareness of environmental hazards;

- A failure to protect Gulf fisheries;

- A failure to adequately meet the standards of the Kyoto Treaty.


The Collective GCC Perception of the Regional System
Amid all of these challenges, what is the evolving GCC perception of the regional system? According to Dr. Al-Faraj, there is "a general feeling that a continuation of the current unstable conditions threatens national security." Further, there is a general presupposition among Gulf leaders that, despite costs, there will continue to be alliance building with outside powers and increased defense spending "at the expense of national development programs." Hence, traditional interstate security concerns will inevitably fuel a guns-versus-butter attitude that will lead to underfunding of new economic and social initiatives. Accordingly, GCC leaders are now looking for "a way out of the current situation that not only guarantees national-security objectives, but also furthers national-development objectives." However, this will require a more strategic, better conceptualized planning process from the top down. Dr. Al-Faraj believes that the "general foundations of a new GCC strategy" presupposes "a clear strategic perspective, a conducive regional environment, a window of opportunity, and an affinity of interests with the United States and other allies in the Gulf."

Economically, there are some reasons for optimism. The GCC economic picture in 2002 reveals that small Gulf states will probably continue to be central players in the financial aspects of development and security. While Saudi Arabia had a 2002 economy of $178 billion, the UAE totaled $67.8 billion; Kuwait, $32.8 billion; Oman, $19.9 billion; Qatar, $16.2 billion; and Bahrain, $8.5 billion. Furthermore, within the larger Arab world and the Greater Middle East, Gulf economies represented 44.32 percent of the size of the total Arab economic output in 2002. This is impressive when one considers that the population of the GCC nations only represented 10-11 percent of the entire Arab population in the Greater Middle East.

Amidst these economic patterns among GCC states, what is the direction of Iran? Dr. Al-Faraj claims that current directions in Iranian strategic economic planning, from 1995 to the present, show that Iran is trying to slowly but surely integrate itself with its neighbors in order to fuel its own national development. Iran is working assiduously to breach the economic embargo in the oil sector by endeavoring to have the Caspian Sea pipelines run through Iran to the Gulf. It is expanding its railway network (at a budget of $26.5 billion), changing its legal framework for foreign investment, expanding 17 separate economic free zones, importing advanced technology, and developing nuclear power sites for (supposedly) peaceful use.

But is Iran truly ready for a strategic partnership with the GCC? Dr. Al-Faraj believes that due to extreme difficulties Iran is now facing as a result of two decades of a revolutionary economy, the time is ripe for the development of a qualitatively new relationship with Iran:

Revolutionary fervor has . . . marred any serious attempt to modernize its economy. . . . Iran lacks funds for its declared strategic economic objectives. It also lacks would-be investors for its strategic projects. On the social level, Iran suffers from a multitude of ills, as evident in its official statistics. On the political level, there is a state of stagnation in strategic decision making due to internal polarization. . . . This [has] hampered the realization of the aspirations of Iranian youth.

However, Al-Faraj argues, "The Iranian leadership seems to have grasped the lesson of Saddam Hussein; witness their signature on the IAEA Additional Protocol." His advice: "The GCC must seize this opportunity" to provide badly needed financial capital to Iran so that new, cooperative relationships can become a concrete reality.

In regard to Iraq, Dr. Al-Faraj argues that "there seems to be a window of opportunity for the GCC nations to influence events in Iraq toward stability and security." If GCC states can forward their own recommendations on a collective basis, then "Iraq could be the corridor to another economic zone in the Fertile Crescent, while Iran [could] play [a role] as the passage to yet another economic zone in the Caspian Basin and Trans-Asia." In short, rather than rejecting the Bush administration vision of an economically inter-dependent region with stable, dynamic growth, Dr. Al-Faraj argues that the adoption of purposeful, strategic initiatives by the wealthiest Gulf states could help create the types of networks and connections that already exist in Europe or Asia. As part of this process, Iran and Iraq would be drawn into a positive web of financial interconnections that would create greater regional security. However, his recommendations are not based primarily on contributions and leadership from the United States, Europe or Asia, but rather on the capabilities of GCC states themselves. As stated by Dr. Al-Faraj, "There is an opportunity to restructure the balance of power in the Gulf, not solely by military means, but through a multi-dimensional approach" that utilizes economic, technological and political resources within the region itself.

But what exactly would such a GCC strategy look like? Dr. Al-Faraj divides the initiative into three periods.

1. A Transitional Period
This period would see agreement on bilateral and multilateral confidence-building measures (CBMs) between the GCC, Iran and Iraq. These would require a major redeployment of Iranian military forces, including rocket launchers and air and naval vessels (especially on and around the three islands of Abu Musa and the Greater and Lesser Tunbs in the Strait of Hormuz). In short, the objective would not be to hamper Iran's self-defensive capabilities, but rather restrain its offensive options. For Iraq, there must be "no-ground" and "no-fly" zones in the South and East of the country, with appropriate limits on offensive force structure. Dr. Al-Faraj argues, however, that the GCC "ought not act in a symmetric fashion, because a state of imbalance in size, population and military force already exists between the GCC and Iran and Iraq."

Also during the transitional period there would be corresponding political actions by all states. On the political level, all parties would enforce multilateral and cooperative internal security measures to combat terrorism, organized crime, money laundering and drug trafficking.

2. A Mid-term Period
This period of transition to a more cooperative multilateral security framework would require acceptance by Iran and Iraq of long-term commitments such as:

a) Tying economic assistance packages and financial investments from the GCC nations to substantial shifts in current Iranian and Iraqi military postures. This shift could include limits on force structure, a decrease in defense budgets, abolishing conscription and raising the age of conscripts.

b) A shift in the defense policies of Iran and Iraq by curbing the procurement of offensive weapons and instead emphasizing defensive systems and technologies;

c) A declaration that all areas vacated for the purpose of military CBMs would eventually become zones for multilateral economic development, to be open to all regional and international powers. This would mean, for instance, that the three islands of Abu Musa, Greater Tunb, and Lesser Tunb would change into centers for economic activities. The question of ultimate national sovereignty over the islands could be postponed by an agreement between the UAE and Iran to shelve the issue until different circumstances allow a final resolution. In Dr. Al-Faraj's belief, the issue of territorial sovereignty "would be irrelevant with the passage of time."

d) Implementation of all current economic agreements between the GCC, Iran and Iraq as the foundation for a Northern Gulf Common Economic Zone. Existing agreements include the bilateral agreements between Iraq and Qatar; the extension of fiber-optic lines between Kuwait and Iran; the transfer of fresh water between Kuwait and Iran; the linking of railway and ferry lines between Saudi Arabia and Iran; increased transfers of gas among Qatar, the UAE and Kuwait; and the evolving partnerships in petrochemical industries (principally Saudi Arabia and Iran). Furthermore, new partnerships could be sought in the transference of Caspian oil southward through Iran and the Gulf.

3. A Long-term Phase
The GCC nations, Iran and Iraq would ultimately enter into full and comprehensive peace treaties especially in regard to Iraq-GCC relations and Iran-Iraq relations. This would be followed, ideally, by enacting domestic legislation for the free movement of persons, trade and finances among all Gulf nations, including Yemen. Religious and cultural tourism could play a great part in opening up Iran and Iraq. The GCC would then embark upon an expansion of investments in the fields of communications and information technologies. Although the mere geographic size of Iraq and Iran would make the extension of fiber optics and other networks difficult, one could still imagine linkages such as the Iranian city of Abadan and the Iraqi city of Basrah with Kuwait City or Dhahran.

Dr. Al-Faraj concludes, "It is with this vision in mind that one can imagine a peace grid stretching from northern Iraq to southern Oman" that would potentially evolve into a Gulf Common Technological Zone. In turn, these shared economic, infrastructural and technological networks would be backed up by advanced military monitoring and verification agreements to guarantee that no state would attempt to upset the mutually beneficial status quo. Finally, the internet could play a large role in educating new generations about the "culture of peace."



AN IRAQI VIEW
Mustafa Alani, Middle East Security Programme, The Royal United Services Institute for Defense and Security Studies, Whitehall, London
Dr. Alani began his presentation with the recognition that transnational threats are largely "a by-product of regional political and territorial disputes." In particular, transnational threats arise when regional disputes create governments with "diminished authority and capacity," under which "radical political Islamic movements . . . feed on society's resentment and fear of chaos." In turn, these conditions lend themselves to a "spillover" of conflict conditions into neighboring countries.

Due to years of draconian sanctions under Saddam's rule, combined with the dramatic effects of the U.S. invasion of Iraq in March 2003, Dr. Alani argues that Iraq has become an area where transnational threats now proliferate and endanger Gulf security as a whole. First, "Islam has emerged as the dominant political force in the country, and religious activism is on the rise. Thus, Islam is bound to play a more prominent role in the social and political life of the country." According to Dr. Alani,

Radical Islam has appeal as a reformist force, seeking to advance the cause of democratization, human rights and social justice within the framework of Islamic sharia law. Thus, many of the oppressed and persecuted people of Iraq, suffering under the repressive rule of an authoritarian regime, see Islamist movements as progressive in character.

Based on this analysis, Dr. Alani outlines "three worst-case scenarios" for Iraqi political and social development, all of which would be accompanied by an increase in transnational threats such as "terrorism, arms smuggling, potential theft and sale of WMD materials, and organized crime, drug trafficking, oil smuggling, and the theft and smuggling of antiquities." These three scenarios are 1) the total collapse of the state; 2) the fragmentation of the state and the formation of a number of small entities; and 3) the development of a weak, unstable central government. Whether or not these worst-case scenarios materialize, Dr. Alani notes that the U.S. decision to "disband a number of state ministries and institutions, in particular the state's defense and security apparatus," has created "a huge security gap" domestically that has allowed terrorist and criminal groups to establish a base in the country.

Dr. Alani then outlined three distinct threats that could emerge in the presence of the above worst-case scenarios:

1) Terrorism
Dr. Alani argues that "international terrorism has a short history and shallow roots in Iraq," in part because Saddam Hussein's Baathist regime itself "represents a group of professional terrorists." The authoritarian government monopolized terrorism within Iraq, leaving little room for transnational or international elements. For instance,

criminal acts such as the killing of political opponents, kidnapping, threats and intimidation were the main tactics employed by Saddam Hussein and his colleagues in the Baath Party leadership between 1963 and 1968 during the party's struggle to control power, which finally succeeded . . . in July 1998. Thus from 1968 to the last day, the regime recognized terrorism as one of the main instruments [of state power]. . . . The inner circle of the old regime consisted mainly of a group of terrorists and common criminals.

This inner circle "employed three tactics. First, it directly organized terrorist activities . . . planned and executed by the regime's different security services." Secondly, explains Dr. Alani, indirect terrorist activities involved the purposeful creation of small groups dependent on the resources of the Iraqi state that were used in foreign lands to carry out the grander geopolitical objectives of the regime. Lastly, the regime sponsored pre-existing terrorist groups:

For many decades [Saddam's regime] . . . provided safe havens and support for several non-Islamic secular groups mostly Palestinian groups that engaged in international terrorism such as Abu al-Abbas (PLF), Abu Nidal (ANO), Abu Ibrahim (the May 15 Organization) and other groups.

However, Dr. Alani argues, this reality should not be conflated with radical, transnational, Islamic-based terrorism outside the control of governments. In contrast with the vision of the Bush administration, which clearly tried to tie Hussein's Baathist regime together with transnational, Islamic-based terrorism such as Al-Qaeda,

in reality, [terrorist activities of the Iraqi government] came under the full control and management of the regime's leadership. Involvement in terrorist acts required the approval and supervision of the regime's leadership, probably at its highest level. . . . Non-state actors such as foreign terrorist organizations could not operate in Iraq independently. . . . A state of deep mistrust and conflict of ideology and objectives [led] Saddam's regime to be identified by Islamic extremist groups as an enemy regime.

2) WMD Proliferation
Dr. Alani also indirectly criticized the Bush administration's strategy by arguing that the U.S. invasion of Iraq has resulted in new transnational networks with a potential for trafficking in stolen conventional weapons and WMD materials and technology. As stated by Dr. Alani,

Indeed, since the downfall of the regime, evidence has emerged from the states neighboring Iraq (mainly Saudi Arabia and Jordan) that transnational crime groups have established an active and profitable trade focused on [conventional] arms-smuggling activities utilizing the huge arsenal of the Iraq armed forces [which was] mostly left behind after the sudden collapse of the regime.

Further, "there could be a slight danger that a country like Iraq could be a source or become a transshipment point for the illicit transfer of WMD material."

3) Drug Trafficking and Organized Crime
According to Dr. Alani, prior to the U.S. invasion in March 2003, "Iraq was one of the very few regional states that could claim that drug abuse was not a problem in society. The enforcement of strict laws and severe punishment . . . [has kept] the country clean from drug abuse and made the state off-limits for drug traffickers for the past 70 years." Now, after the U.S. invasion, the situation has changed, with infiltration of Iraq by terrorist and criminal groups. However, argues Dr. Alani,

The criminal organizations in general and drug traffickers in particular are not monolithic but act as networks, pursuing the same types of joint ventures and strategic alliances as legitimate global businesses. Since the collapse of the Baathist regime, evidence has emerged to indicate that the Iranian and Turkish narcotics cartels have established operations, and that hard and soft drugs as well as synthetic drugs are sold and bought almost openly in Baghdad, Karbala, Basra and other Iraqi cities. Local and Arab press reports have asserted that Iranian drug gangs linked to newly established organized crime groups in Iraq now operate freely in the country.

Furthermore, continues Dr. Alani,

The lack of a strong central government and the absence of effective military and security institutions in the new Iraq could allow the state to develop as a convenient "transit zone" for the transferal of drugs from producing countries like Afghanistan to the European markets via Iran. Potentially, terrorism and drug trafficking could be the greatest threats to the stability of the new state of Iraq and to Gulf regional stability.

The Danger of Regional Destabilization and Corruption
Dr. Alani concluded by arguing that

Terrorist groups, organized crime and drug trafficking are new phenomena in Iraq. The rise of organized crime groups (some with suspected transnational connections) is an unfortunate by-product of the collapse of security in many Iraqi cities that followed the removal of the Baathist regime. . . . Terrorist and crime groups have exploited many opportunities opened up by the demise of the regime. Criminal gangs have accumulated sufficient financial resources [through] a widespread looting of the country's banks and other state institutions [that has allowed them to become] . . . financially richer, better armed and better organized than the newly formed state police force. These sorts of criminal groups have the capability to undermine the economies of the state and subvert its political integrity through corruption. Many of these groups have entered into new and mutually cooperative arrangements with other terrorist and criminal organizations in neighboring countries, which makes an assessment of their activities extremely difficult.

[Thus], the illegal actions of transnational crime organizations threaten law and order in Iraq, directly affecting people's sense of security, trust and order, the very underpinnings of any society. In a state like Iraq, they attempt to corrupt public officials, jeopardizing the integrity of the emerging government and institutions. A transnational threat also poses a serious threat to the economic security of the nation, in that its basic activities could undermine the workings of [a new] free-market economy.

To combat these highly negative trends, Dr. Alani recommends that

Law enforcement agencies (police forces, intelligence agencies, customs authorities) in the region lead the fight against transnational threats. For this purpose, they need to collect both strategic and tactical field intelligence. The collection of strategic intelligence is important and requires interstate cooperation at all levels. This type of intelligence is long term in nature, provides a comprehensive view of any threat within the environment, assesses the extent of the threat, and points out which areas are at risk all of which allows law enforcement to advise governments and to be proactive in its efforts against transnational threats. Tactical intelligence is operational in nature and is geared towards action in the field.

Dr. Alani concluded his presentation with the sobering judgement that "instability in Iraq will cast its shadow on all states in the region. Terrorists and drug traffickers, organized crime groups, arms smuggling, and the potential theft and sale of nuclear material" are all immediate, serious threats to Gulf stability and security.

Thus, an increase in cross-border illegal activities represents an interrelated network of transnational challenges to the states and societies within the Gulf and Middle East region. They serve as potential catalysts for conflict among these states. In addition, these transnational threats have the potential to challenge the security of the West.

In sum: if transnational factors are not taken as seriously as traditional interstate threats such as WMD or conventional weapons proliferation in "rogue states" such as Iran then the confluence of transnational threats could eventually create dangers to Gulf states' internal stability, leading to new interstate conflicts and military interventions.



A EUROPEAN PERSPECTIVE
Antonia Dimou, Center for Strategic Studies, University of Jordan

Shared Values
According to Dimou, the most important constant in regional and global security is the common set of values shared by Europe and the United States. Dimou's basic assumption was that the trans-Atlantic relationship would stay central to Middle East security. In her view, "The fight against terrorism, . . . the growth of international trade, and the promotion of sustainable development are all aspects of globalization in which both sides share common values and interests. . . . Both sides wish to establish security based on the common values voiced by Europe and the United States: freedom, democracy and peace."

Europe's Contribution
As argued by Dimou, Europe's central role is an integrative one: creating a larger sphere of polities and societies based upon universal ideals of freedom and prosperity. Europe has created international and regional security over the past five decades not through military hardware, but rather through strategic cooperation to bring about the goal of creating a prosperous, free community: "Europe has experience in incorporating countries that have been under dictatorship or autocratic regimes. . . . Europe has something to say on this because it is a community of values, and these common values are a departure point for the approach to the problems of our age."

In this regard, Dimou asserted the importance of the new European Security Strategy (ESS),1 which she believed was "intellectually coherent and sufficiently flexible to enable the EU to adapt effectively to the changing security environment." It directly addresses the U.S. priorities of international terrorism and WMD, proposing concrete steps within a broad framework.2

EU-GCC Dialogues
Despite her stress on the central importance of the U.S.-European relationship for Gulf security and the existence of substantial transatlantic commonalities in the realm of social, economic and political values, Dimou was careful to lay out the specific policy assumptions and political goals that both Gulf Arab states and the EU share, as well as the actions that the EU has taken on its own vis-B-vis the Gulf Arab monarchies. In particular, the EU has focused on developing a strategic partnership with the GCC states. This strategic dialogue has placed special emphasis upon the Iraqi issue, the Middle East peace process and Iran, as well as on global matters such as the war on terrorism and the proliferation of WMD.

In the EU perception, according to Dimou, "Despite the diversity of the countries in the Gulf and the challenges they face, there is a clear connection between them arising mainly from their growing interdependence. In this context, a co-operative approach favoring dialogue is...a must in security matters." In short, there is an assumption that a multilateral framework is both possible and necessary in the Gulf, including the growth of opportunities for mutual dialogue and indeed, there is an EU assumption that further multilateral connections are natural because of "growing interdependence." Accordingly, at a pre-war Iraq session of the Joint Council and Ministerial meeting between the EU and the GCC,3 "the GCC and the EU reiterated their determination to further develop a multilateral political dialogue in order to seek common solutions to mutual problems."

However, while many of the policy assumptions and political goals of this EU process are shared by the Gulf monarchies, they are not necessarily shared by current U.S. policy makers. For instance, in the pre-war period, the EU and the GCC "reaffirmed their commitment to the United Nations remaining at the center of the international order. They recognized that the primary responsibility for dealing with Iraqi disarmament at that time lay with the Security Council and pledged their full support to the Council in discharging its responsibilities."

Most important, both the EU and the GCC have repeatedly emphasized the view that a just and fair solution to the Israeli-Palestinian conflict is a necessary condition for a stable and secure Middle East, and that Gulf security cannot be separated from this issue. For instance, according to Dimou,

[T]he GCC and the EU have stressed that peace in the Middle East is an imperative for the establishment of a broader security regime. The GCC and the EU recognize Israel's legitimate security concerns and Palestinian legitimate rights to a viable Palestinian state, living peacefully side by side with Israel and its neighbors, all within secure borders, and stress their support to the Palestinian efforts to take forward the reform process....The GCC and the EU support [the proposition] that the aim of all efforts remains the establishment of a just, comprehensive and lasting peace in the Middle East, including Syria and Lebanon.

While this may square with current U.S. assumptions to some extent, a clear point of departure is the belief that any solution must be based on the 1967 borders, and that the basic assumptions and goals of failed past processes such as Oslo and Madrid must still be taken into account by decision makers. In the EU conception of the problem, according to Dimou,

The international community shares a common vision of two states, Israel and an independent, viable, sovereign and democratic Palestinian state, living side by side in peace and security on the basis of the 1967 borders....Any peace agreement is expected to be based on the relevant UNSC resolutions, the principles of the Madrid Conference, the principle of land for peace,' the Oslo Process, and the initiative of Saudi Arabia endorsed by the Arab League Summit in Beirut in 2002.

Moreover, both sides agree (in contradiction with Washington) that a primary problem has been the Israeli policy of Jewish settlements beyond the "Green Line" and illegal annexation of territory. As described by Dimou,

The GCC and the EU are alarmed at the continuing illegal settlement activities, which threaten to render the two-state solution physically impossible to implement. They thus call for dismantling illegal outposts and freezing all settlement activity, including natural growth of existent settlement blocks...[F]reezing settlements that could disrupt Palestinian territorial contiguity is a top priority, since their illegal construction violates international law, inflames an already volatile situation, and reinforces the fear of the Palestinian side that Israel is not genuinely committed to ending the conflict.

Based on these assumptions, the GCC and the EU have urged Israel to reverse its settlement policy and as a first step to immediately apply a full and effective freeze on all settlement activities.4 The GCC and the EU have further made special references to the "illegal construction of the wall that the Israeli government decided during the war on Iraq to relocate on West Bank land." In a stark disagreement with current parameters of the debate in Washington, which largely sees the Israeli wall as a straightforward security measure, the EU and the GCC view the wall "as a means of annexing West Bank land upon which Israeli settlements exist."

In the case of Iran, the GCC and the EU have both encouraged the reform process within Tehran. The EU continues to move forward on a "Trade and Cooperation Agreement" and an agreement on "Political Dialogue and Counterterrorism." Additionally, both the GCC and the EU have expressed concern at the lack of progress towards resolution of the territorial conflict between the UAE and Iran over Abu Musa and the Tunbs Islands. As described by Dimou, "They specifically reiterate their support for a peaceful solution to the conflict in accordance with international law, either through direct negotiations or by referring the issue to the International Court of Justice." Again, this policy of a broad engagement of Iran, based on universal legal norms and rules, is largely at odds with the U.S. focus on counterproliferation, isolation and pressure, which is sometimes viewed as necessary to bring about a "regime change" within Tehran.

On global issues, notably terrorism and WMD proliferation, the EU and the GCC also have underlined the importance of implementing U.N. Security Council Resolution 1373 and of working with the U.N. Counterterrorism Committee (CTC) at national and regional levels. Based on this description of the combined EU-GCC approach, it is again not clear that the various sides are working from the same script for regional and global security, since the U.S. government has made hardly any reference to the importance of U.N.-level or U.N.-led activities in the U.S. War on Terror.

Finally, in regard to WMD nonproliferation policies, "The GCC and the EU are determined to support all efforts to establish a zone free of nuclear weapons and other weapons of mass destruction in the Middle East and the Gulf Region....They call upon all countries not yet party to relevant treaties, including the Non-Proliferation Treaty, the Comprehensive Test Ban Treaty (CTBT) and the conventions on biological and chemical weapons, to sign and ratify them." While the United States is a full party to the NPT and Chemical Weapons Convention, it has walked away from or shelved indefinitely the ratification of the CTBT and the enforcement protocol for the Biological Weapons Convention.

1 The EU Security Strategy was adopted at the Thessaloniki European Council on June 2004.
2 Editor's note: see the full text of the European Security Strategy at: http://ue.eu.int/cms3_fo
3 The thirteenth session of the Joint Council and Ministerial meeting was held on March 3, 2003.
4 This call for restraint by Israel was issued in the context of the thirteenth session of the Joint Council meeting.