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11. Beyond 2030: Economic growth in the Middle East and North Africa

Author:
Karen E. Young
Publication Date:
05-2019
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Energy-dependent growth in the Middle East and North Africa (MENA) region, whether in traditional oil and gas exports or petrochemical production and global refinery operations, will be sensitive to shifts in Asian economies and new technology and efficiency innovation. Without structural reforms to subsidies and labor markets, a reliance on debt finance now kicks the can down the road toward difficult fiscal choices in the future. MENA economies are becoming more integrated into emerging markets not by increased trade but through state-led development partnerships and the use of aid and economic statecraft.
Topic:
Foreign Policy, Development, Energy Policy, and Economic growth
Political Geography:
Middle East, North Africa, Gulf Cooperation Council, and Gulf Nations

12. Road to the Caliphate

Author:
Katherine Zimmerman
Publication Date:
06-2019
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Successes on the battlefields against al Qaeda, the Islamic State, and other like-minded groups have not led to their defeat or permanently reduced their threat to the United States. The deterioration of conditions in the Muslim world has made communities vulnerable to and created opportunities for the Salafi-jihadi vanguard to develop local ties. The reliance of the Salafi-jihadi movement on its relationship with Sunni communities to strengthen and expand beyond ideological supporters is a key vulnerability. The US should reorient its efforts to focus not only on disrupting and preventing active terror plots as a national security priority but also on severing the relationships the Salafi-jihadi movement has formed with Sunni communities.
Topic:
Foreign Policy, Terrorism, Military Strategy, Al Qaeda, and Islamic State
Political Geography:
Middle East

13. The Gulf’s eastward turn: The logic of Gulf-China economic ties

Author:
Karen E. Young
Publication Date:
02-2019
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Arab Gulf states are expanding their political and economic ties with China as a bridge strategy to create a next-generation energy market in traditional oil and gas products, as well as petrochemical production and future market access in expected areas of consumer growth. China is also a competitor in some areas where Arab Gulf states are investing in infrastructure, ports, and political outreach to secure new security partnerships, particularly in the Horn of Africa. China and the Arab Gulf states share a model and vision of economic development that is state centered and profitable to state-owned enterprises and financial institutions.
Topic:
Foreign Policy, Development, and Economics
Political Geography:
China, Middle East, Asia, and Gulf Cooperation Council

14. The difficult promise of economic reform in the Gulf

Author:
Karen E. Young
Publication Date:
09-2018
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The six states of the Gulf Cooperation Council (GCC)—Saudi Arabia, Qatar, Kuwait, Bahrain, the United Arab Emirates (UAE), and Oman—are in a period of profound change, both economic and social. The economic changes are a long overdue reaction to natural resource revenue dependency in their fiscal policies, while the social changes are a reaction to compounded migration and demographic shifts. The resilience of Gulf political economies will be defined by the ability to change both fiscal governance and policies of inclusion. Inclusion, in the context of Gulf political economies, means social protection for vulnerable groups, but it also means access to compete in a rule-based economy. The promise of economic reform, therefore, is a promise to reconfigure relations between citizen and state, and to renegotiate the provision of benefits to citizens in the form of subsidies of fuel, electricity, and water, as well as generous health and education services. And there will be taxes and new fees on everything from toll roads to sugary drinks to tobacco, and employment fees for foreigners. In exchange, citizens are promised—in some way—a retreat of the state from its predatory control over economies, though not its control over the political space and activism. Nonetheless, for many political economies of the GCC, the opening of opportunities in private ownership and investment in the sale of state assets—such as power and water plants, ports, and airports, as well as schools and hospitals—poses a challenge to the state’s track record in the provision of services. These privatizations also pose a risk to a constituency unaccustomed to fees-based service and corporate liability. Will citizens accept services from private entities at cost? Will citizens jump at the opportunity to own new companies that meet the needs of their compatriots for profit? And, perhaps most importantly, who will be left behind? The concept of resilience is often used in the literature on economic development to describe how governments can protect both citizens and their economies from external shocks, whether in the form of natural disasters, black swan events, or dramatic policy shifts. The regulatory environment and the capacity of the state to react and respond to different needs of its population, especially vulnerable groups, are key. For Gulf states, the current reform agenda is not so much a shock as a delayed reaction to a problem identified long ago. Diversification from oil-based revenue is necessary, and population growth has created an oversupply of candidates for public-sector employment that is not very productive. Generating growth has to shift, in its source and its deployment among a larger and more diverse population. The Gulf states have created their own middle-income development trap. This paper offers a wide-ranging analysis of some aspects of the reform agenda underway across the GCC. It explores specific case analyses of challenges facing individual countries (Saudi Arabia and Oman), and the organization of the GCC as a whole. It also addresses subsidy reform, the introduction of taxes and fees, and some experimental policies related to regulating labor markets and encouraging citizens to move out of public-sector employment.
Topic:
Foreign Policy
Political Geography:
Middle East, Kuwait, Saudi Arabia, Bahrain, Qatar, United Arab Emirates, and Gulf Cooperation Council

15. Terrorism, tactics, and transformation: The West vs the Salafi-jihadi movement

Author:
Katherine Zimmerman
Publication Date:
11-2018
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The Salafi-jihadi movement shifted to prioritizing local over global objectives during the Arab Spring. Analysts wrongly understood this as a weakening of the groups. Groups have hidden their true nature by hiding their ties to global jihadi groups, such as al Qaeda and the Islamic State, and by rebranding and reorganizing on the ground. Movement leaders design and execute attacks in ways that create doubt and ambiguity about the responsible party. This new technique exploits US counterterrorism policy, which is not designed to pursue anyone other than the individuals directly responsible for the attack. American officials are countering a dynamic enemy with an irrelevant and outdated strategy.
Topic:
Counter-terrorism, Al Qaeda, Islamic State, Salafism, Arab Spring, War on Terror, Sunni, and Jihad
Political Geography:
Afghanistan, Iraq, Middle East, Libya, Yemen, Syria, North America, and Arabian Peninsula

16. More protests, no progress: The 2018 Iran protests

Author:
Mike Saidi
Publication Date:
12-2018
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Iran’s protest scene is evolving and has become more complex and demographically encompassing since the late-December 2017 widespread riots known as the Dey Protests. Economic problems, government mismanagement, and ethnic, labor, sectarian, and environmental issues have driven distinct and overlapping demonstrations, but they have not cohered into a unified protest movement capable of overthrowing the regime. Although the Iranian protest movement does not remotely threaten the regime, an evolved protest scene will undoubtedly shorten the life span of the Islamic Republic.
Topic:
Protests, Revolution, and Islamic Revolutionary Guard Corp (IRGC)
Political Geography:
Iran and Middle East

17. A Survey of AEI’s Work on the Middle East

Author:
Danielle Pletka
Publication Date:
06-2018
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
In connection with an assessment of AEI’s work on the Middle East over the past two decades, I drafted the following survey. The arc of our scholarship in this critical region is fascinating and illuminates the continuity and evolution of the challenges the United States faces in the Middle East. What is ultimately clear is that in the region both the challenge of destructive ideas and the fostering of better ones will shape outcomes.
Topic:
International Affairs
Political Geography:
Middle East

18. Yemen's Pivotal Moment

Author:
Katherine Zimmerman
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Yemen is at a pivotal moment today, three years after the outbreak of popular protests, and the future of America's strategy against al Qaeda in the Arabian Peninsula (AQAP) is on the line. Yemen is in the midst of a political transition process that will eventually reform and decentralize the government. But the success of the effort is by no means assured. The reforms will not, in any case, address the deteriorating socioeconomic conditions that provide fertile ground for al Qaeda. Moreover, the central state, never fully able to exercise its sovereignty throughout the country, is weaker than it was before 2011. Opposition groups, which have turned to violence in the past, may still seek to form independent states of their own, potentially collapsing the fragile Yemeni state structure entirely. American interests are bound up in this process by the fact that AQAP is among the most virulent al Qaeda affiliates that poses a direct threat to the U.S. homeland. Syria, Iran, and other foreign and domestic policy issues are distracting the United States and its regional partners from sustained engagement in Yemen. Without international support, the country is much less likely to ride this transition process smoothly and our security interests will be severely harmed.
Topic:
Islam, Terrorism, Armed Struggle, Insurgency, and Governance
Political Geography:
United States, Middle East, Yemen, and Arabia

19. Azerbaijan's Iran problem

Author:
Michael Rubin
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Since Azerbaijan regained its independence in 1991, it has been only the world's second Shi'ite-led state after Iran. Azerbaijan respects separation of mosque and state, and despite pressure from its neighbors, remains independent from political domination. Given its strategic importance, safeguarding the country's independence remains a US priority. And the threat from Iranian meddling is particularly acute. From Tehran's perspective, the combination of Azerbaijan's pre-19th-century Iranian past, modern Azerbaijan's embrace of secularism, and its relative economic success challenge Iran's legitimacy. As Iranian authorities have sought to undermine and destabilize Azerbaijan through political, clerical, charitable, and media channels, Azerbaijan's counterstrategy has been both restrained and effective.
Topic:
Foreign Policy, Islam, Sovereignty, and Governance
Political Geography:
United States, Iran, and Middle East

20. America vs. Iran: The competition for the future of the Middle East

Author:
Danielle Pletka, Frederick W. Kagan, and J. Matthew McInnis
Publication Date:
02-2014
Content Type:
Working Paper
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
A review of the soft-power strategies of both the United States and the Islamic Republic of Iran in the Middle East and Afghanistan makes clear a disturbing fact: Tehran has a coherent, if sometimes ineffective strategy to advance its aims in the Middle East and around the world. The United States does not. This project began with two tour d'horizon reviews of Iranian activities throughout areas Iran has, by its actions, defined as its sphere of influence. From the Persian Gulf through the Levant and into neighboring Afghanistan, the Islamic Republic has consistently invested in soft- and hard-power activities designed not only to extend its own influence but also to limit both American and hostile Arab aims. And while the latter part of the Ahmadinejad administration saw waning rewards for Tehran's efforts-a result more of the growing Sunni-Shia divide in the Middle East than of changes in strategy-the continued existence of a coherent Iranian strategy to dominate or destabilize the region should not be ignored. This report, the culmination of a process of both examining Iranian actions and surveying American policy, policy responses, and soft-power strategies in the region, focuses on the US side of the equation. Despite the Obama administration's commitment to replace hard power with smart power, what the United States pursues in the Middle East is a set of incoherent, ineffective, and increasingly irrelevant policies.
Topic:
Foreign Policy, Defense Policy, Islam, and Bilateral Relations
Political Geography:
Iran, Central Asia, and Middle East