Showing posts with label aid. Show all posts
Showing posts with label aid. Show all posts

Monday, June 27, 2011

Will U.S. Suspend Aid to Egypt’s Military?

Whither the "Arab Spring": Congress may cut $1.3B in military aid after Egypt warms to Islamists.
 
 
 

The anti-Western policies recently adopted by Egypt’s military government may be spawning a surprising anti-Egyptian backlash in Washington. A movement inside and outside of Congress is calling for re-examination of the $1.3 billion in military assistance the U.S. gives each year to the Egyptian generals.
A call for an end to military aid reverberated throughout Washington last February, when President Hosni Mubarak refused to step down during the height of the “Arab Spring.”

Now, some see Egypt falling into an Arab Winter. Two observers recently noted that all is not well in land of the Nile, writing: “Post-Mubarak Egypt has morphed into a dictatorless tyranny.” Others believe the continuing flow of money is “simply rewarding bad behavior,” as Egypt is now expressing warmth toward Iran, Hamas, and the Muslim Brotherhood — while spurning Washington.

Since 1979, when former President Jimmy Carter helped to broker a peace agreement between Egypt and Israel, the United States has endowed the Egyptian military elite with a record $27 billion in military assistance — the second largest sum in the world. This largess has been said to have created an “economy within an economy.” And as a result, the Egyptian military is rife with corruption.

Egypt’s military/industrial complex is a topic rarely discussed in the West. Via U.S. aid, Egypt today operates a vast array of state-owned enterprises under the control of a military-run organization called the Armament Authority. This entity has enriched an entire generation of middle- to upper-level Egyptian officers.

The Armament Authority supervises the Arab Organization for Industrialization (AOI), an Egyptian-based Arab military organization established in 1975. The AOI supervises nine military factory complexes, which produce civilian goods as well as military products. They independently run a wide array of for-profit companies ranging from manufacturing cars and jeeps and running auto dealerships to managing hospitals.

The Egyptian web of armament factories is the largest military manufacturing complex in the Middle East, its military industrial base dwarfing all other Middle East countries including Saudi Arabia.

Egypt appears now to be run by a civilian prime minister, Essam Abdel-Aziz Sharaf, who once served as Mubarak’s transportation minister. On March 4 — the day he assumed power — Sharaf appeared on stage with Mohamed Beltagy, a Muslim Brotherhood leader. Sharaf is well-known to hold a strong stance against normalization of relations with Israel.

The balance of power, however, is held by a group of generals who comprise the Supreme Council of the Armed Forces. The generals are considered the real power behind the government. The group is secretive and opaque: last month Washington Post associate editor Lally Weymouth interviewed two of the council members — they only agreed to the interview on the grounds that they were not identified.
Lt. General Sami Hafez Enan, the Soviet-trained army chief of staff, is considered the general with the most influence in running Egypt’s affairs. Enan is also reported to be the Muslim Brotherhood’s “favorite general.”

Last month in Bali, Iranian Foreign Minister Ali Akbar Salehi met with his Egyptian counterpart, Nabil al-Arabi. Both said diplomatic and trade relations should improve now that Mubarak is gone. Tehran had severed ties with Cairo after Egypt signed its peace treaty with Israel.

read more: http://pajamasmedia.com/blog/will-u-s-suspend-aid-to-egypts-anti-west-military/

Thursday, May 19, 2011

Obama to announce major plan for economic development of Middle East Thursday

Published: 05/18/2011

 
President Barack Obama tours the Pyramids and Sphinx with Secretary General of the Egyptian Supreme Council of Antiquities, Zahi Hawass (left), Senior Advisor David Axelrod and Chief of Staff Rahm Emanuel (right), June 3, 2009. (Official White House photo by Pete Souza)

 

President Barack Obama is set to announce a government-directed plan for economic development in the Middle East that emphasizes the role of Western multinational organizations, but that also sidelines the role of companies, ignores the new democracy in Iraq and downplays regional cultural, tribal and religious practices.

“We’re going out of a decade of great tension and division, and now, having wound-down the Iraq war and having taken out Osama bin Laden, we’re turning the page to a positive future for the United State in the region,” said a senior administration official during a 25-minute press briefing on Wednesday that did not include any mention of Islam, the tribal cultures of the region, democracy in Iraq, or the word “company.”
The plan, which Obama will include in his Thursday speech on Middle East policy at the Department of State, calls for at least $2 billion in debt-relief and loan guarantees to be delivered to Egypt, Tunisia and other countries via non-profits, funding agencies and universities.

Obama’s economic agenda for the region will have four pillars, said the officials. Non-profits, think-tanks and universities will help provide better “economic management,” international aid will boost countries’ financial stability, international agencies can help foster “a strong private sector,” and trade-negotiators can help establish regional trading zones, said the officials. “We will galvanize support from the international community… [and] the multinational organizations will have a huge role to play here,” said one White House official.



However, previous aid has had modest effects. Since 1950, the United States provided almost $4 billion to the U.N. relief agency that has fed and housed the Arabs who fled from Israel in 1948, according to an August 2010 report by the Congressional Research Service. Those Arabs have yet to be integrated into Syria, Lebanon, Egypt or Jordan.
Following the signing of the Oslo agreement between Israel and Palestinian groups in 1993, the U.S. has supplied over $3.5 billion in aid to Palestinian groups, the CRS report said. But this month, the Arab government on the West Bank of the Jordan river  announced a power-sharing deal with the Muslim Brotherhood’s Hamas affiliate, which has repeatedly cited religious reasons for its efforts to destroy Israel, and which has repeatedly ignited battles with Israeli defense forces. Hamas currently controls the Gaza Strip.
From 1971 to 2001, the U.S. also donated $25 billion to Egypt, $2.4 billion to Jordan, $470 million to Lebanon and $703 million to Palestinian groups, according to a June 2010 CRS report.
The three administration officials who gave the briefing repeatedly stressed the impact of economics in Egypt and Tunisia, but did not mention the widespread calls for rule by Islamic parties, such as the Muslim Brotherhood in Egypt. “The political movements for non-violent change are rooted, in part, in a lack of [economic] opportunity in the region,” said one official.

In practice, non-economic cultural factors are central to the region’s economic difficulties. For example, Egypt’s dictatorial rulers deregulated the state-controlled economy, so jump-starting the economy by 2004. The country’s economy grew by an average of 7 percent in 2007, 2008 and 2009, and by an average of 5 percent in 2010 and 2011. “Growth in Egypt has picked up steadily since 2004… making it one of the Middle East’s fastest-growing economies,” according to a 2008 report by the International Monetary Fund.


Read more: http://dailycaller.com/2011/05/18/obama-to-announce-major-plan-for-economic-development-of-middle-east-thursday/#ixzz1MoadiGzl