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21. Hezbollah Has a New Strategy to Survive Lebanon’s Financial Crisis

Author:
Hanin Ghaddar
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Unless Washington and its allies respond to the protestors’ legitimate demands for reform, the group will survive through measures such as expanding its smuggling activity, promoting its financial institutions, and selectively scapegoating corrupt politicians. When IMF officials visited Lebanon late last month amid its accelerating economic freefall, many wondered whether these developments might alter the behavior of Hezbollah, the designated terrorist group that has a deep financial stake in the country’s public and private sectors. During a previous funding crisis—the increase in U.S. sanctions against the group’s chief underwriter, Iran—the “Party of God” and its foreign sponsors formulated a new strategy to evade these measures and create alternative sources of funding. Such sources allowed Hezbollah to make further inroads into government agencies following the 2018 parliamentary elections. For example, the group’s leaders insisted on controlling the Health Ministry, which commands Lebanon’s fourth-largest budget at $338 million per year; they also gained more access to the Ministry of Public Works and Transport, the Agriculture Ministry, and the Ministry of Energy and Water, whose assistance was used to fund their affiliated projects and businesses. That worked until Lebanon’s own economy began its current nosedive. Unemployment has hit a record high of 40 percent, and the lira has slumped by about 60 percent on the parallel market, hiking inflation. Officially pegged to the dollar, the currency has plummeted 40 percent on the black market as local banks ration dollars necessary for imports of food, medicine, and other essential goods. Meanwhile, Lebanon has one of the highest debt-to-GDP ratios in the world (over 150 percent) and may not be able to pay $1.2 billion in Eurobonds this month. As with the Iran sanctions, however, Hezbollah has a strategy to survive this domestic pressure, at least in the near term.
Topic:
Foreign Policy, Corruption, Debt, Politics, Protests, and Hezbollah
Political Geography:
Middle East, Lebanon, and United States of America

22. Establishing a Response Ratio for Iranian and Proxy Attacks

Author:
Michael Knights
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Enhancing deterrence and protecting Americans in Iraq and Syria requires a more formalized system for rationing out retaliatory strikes at the proper intensity, time, and place. When U.S. airstrikes targeted Kataib Hezbollah militia personnel and senior Iranian military figures on December 29 and January 3, they were releasing long-pent-up retaliation for a range of provocations by Iraqi militias. Yet while these powerful blows may have injected some caution into enemy calculations, such deterrence is likely to be a wasting asset. The most proximal trigger for the strikes—the killing of an American civilian contractor during Kataib Hezbollah’s December 27 rocket attack on the K-1 base in Kirkuk—was just one in a series of increasingly risky militia operations against U.S. facilities. Only good fortune has prevented more Americans from dying in attacks conducted since then, including January 8 (when Iranian ballistic missiles struck the U.S. portion of al-Asad Air Base, causing more than a hundred nonlethal traumatic brain injuries), January 26 (mortar strike on the dining hall at the U.S. embassy in Baghdad), January 31 (rockets fired at the U.S. site at Qayyarah West), February 10 (explosive device thrown at a U.S. logistical convoy south of Baghdad), and February 13 (rocket attack on U.S. site at Kirkuk). The United States has seemingly communicated to Tehran that it will strike Iraqi militias and Iranian targets if any Americans are killed, but this redline has opened up a dangerous gray zone in which Iran and its proxies are emboldened to continue their nonlethal attacks. Besides the fact that such high-risk attacks are destined to result in more American deaths at some point, they will also produce many more injuries if permitted to continue, as seen in the January 8 strike. More broadly, they will limit U.S. freedom of movement in Iraq and Syria, undermining the point of being there in the first place. This situation is unacceptable—the United States needs a way to deter such behavior even when attacks fall short of killing Americans. When faced with similar challenges in past decades, the U.S. military established reckoning systems that matched the punishment to the crime, with useful levels of predictability, proportionality, and accountability.
Topic:
Foreign Policy, Military Affairs, Assassination, and No-Fly Zones
Political Geography:
Iraq, Iran, Middle East, Syria, and United States of America

23. New Khamenei Speech Underlines the Importance of Popular Support for the Regime

Author:
Mehdi Khalaji
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Instead of focusing on Iran's missile retaliation or future threats, the Supreme Leader used his latest speech to extoll the virtues of public unity behind the regime’s revolutionary goals. On January 8, Supreme Leader Ali Khamenei delivered his first public speech since the U.S. assassination of Qasem Soleimani and the subsequent Iranian missile strike on Iraqi bases housing American forces. As part of an address that touched on regional solidarity against the United States and other notable subjects, he spent considerable time claiming that Soleimani symbolized the Iranian people’s continued commitment to the revolution. In doing so, he indicated that popular support for the regime remains a crucial objective for Iran’s leaders, perhaps more so than issuing or acting on further military threats.
Topic:
Foreign Policy, Politics, Domestic politics, Qassem Soleimani, and Assassination
Political Geography:
Iran, Middle East, and United States of America

24. Escalating Houthi Offensives in Yemen: U.S. Options

Author:
Alex Almeida and Michael Knights
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
To keep recent rebel victories from cascading into a wider military collapse, Washington must urge the Gulf coalition to firm up the government’s forces and move more quickly on peace talks. On March 2, Yemen’s Houthi rebels seized the capital of al-Jawf province in the latest phase of a forty-five-day campaign along multiple fronts. Stemming from shifts in the country’s increasingly fragile military balance since last fall, the offensives show that Saudi Arabia is providing insufficient frontline support to the internationally recognized government of President Abdu Rabu Mansour Hadi and its allies, while also failing to complete backchannel peace talks with the Houthis. Unless talks reach fruition or the Houthis are checked militarily, rebel forces will continue to use their ever-widening array of advanced Iranian weapons to exploit the government’s weakness with more offensives.
Topic:
Conflict, Negotiation, Peace, and Houthis
Political Geography:
Iran, Yemen, Saudi Arabia, United States of America, and Gulf Nations

25. The Coronavirus in Iran (Part 2): Regime Culpability and Resiliency

Author:
Mehdi Khalaji
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Even as their lack of transparency worsens the public health crisis, the Supreme Leader and other officials have systematically gutted any civil society elements capable of organizing substantial opposition to such policies. Iran’s ongoing coronavirus epidemic has left the people with less reason than ever to trust the information and directives issued by their leaders. Part 1 of this PolicyWatch discussed the clergy’s role in aggravating this problem, but the state’s mistakes and deceptions have been legion as well. They include scandalous discrepancies between official reports after a period of denial that the virus had entered the country; a health system that was unprepared to deal with such a disease promptly and properly; and official resistance to implementing internationally recommended precautionary measures, such as canceling flights from China and quarantining the center of the outbreak. These decisions have sown widespread confusion about facts and fictions related to the virus, the most effective medically proven ways to control it, and the degree to which it is spreading throughout the country. As a result, an already restive population has become increasingly panicked about the future and angry at the state. Yet can the coronavirus actually bring down the regime? The harsh reality is that the state has left little space for opposition to organize around health issues, or any issues for that matter. Instead, it has sought to confuse the people and redirect their anger toward external enemies, even as its own policies contribute to the crisis.
Topic:
Security, Foreign Policy, Civil Society, Health, Public Health, and Coronavirus
Political Geography:
Iran, Middle East, and United States of America

26. The White House Peace Plan Meeting: U.S. Goals, Israeli Repercussions

Author:
David Makovsky
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Whether they reveal a detailed plan or merely preview an aspirational document, U.S. officials still need to clarify their goals at a time when elections are looming and Palestinian participation seems highly unlikely. In a dramatic move, President Trump has announced that Israeli prime minister Binyamin Netanyahu and his leading rival, Blue and White Party leader Benny Gantz, will visit the White House on January 28 to be briefed on the administration’s long-awaited Middle East peace plan. Trump told reporters that the plan would likely be released before the summit. Predictably, no invitation was extended to the Palestinian Authority, which severed relations with Washington after the U.S. embassy was moved to Jerusalem in 2017.
Topic:
Foreign Policy, Diplomacy, Treaties and Agreements, Negotiation, Peace, and Donald Trump
Political Geography:
Middle East, Israel, Palestine, and United States of America

27. The Coronavirus in Iran (Part 1): Clerical Factors

Author:
Mehdi Khalaji
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The clergy’s ambitions for global Shia revolution made the city of Qom uniquely vulnerable to the disease, and their resistance to modern medical science weakened the state’s ability to combat its spread. On February 19, two days before the Iranian government officially announced the arrival of coronavirus, an infected businessman who had recently returned from China to Qom passed away. The location and timing of his death illustrate how the Shia holy city and the religious leaders and institutions who call it home have played an outsize role in the disease’s disproportionately rapid spread inside Iran compared to other countries. How did this situation come to pass, and what does it say about the current state of the clerical establishment, its relationship with the regime, and its alienation from large swaths of Iranian society? (Part 2 of this PolicyWatch discusses the regime's role in the outbreak and its resiliency to such crises.)
Topic:
Foreign Policy, Health, Religion, Shia, and Coronavirus
Political Geography:
China, Iran, Middle East, Global Focus, and United States of America

28. Syria’s Economic Crisis Sparks Rare Protests in Regime Territory

Author:
Oula A. Alrifai
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Besides highlighting Assad’s financial mismanagement, the recent unrest gives the international community a genuine opportunity to push for transition while bolstering the more prosperous local administration in the northeast. Since mid-January, shop owners, government employees, students, and even children have been gathering in the streets of various Syrian communities to express their frustration with the Assad regime’s economic policies and untruths. Although the protests remain small for now, the fact that they have persistently carried on in the middle of regime-controlled territory highlights Bashar al-Assad’s potential vulnerability on these issues. In Suwayda, a Druze-majority province in the south, residents have protested the sharp drop in the value of the Syrian pound/lira and the deteriorating economic situation in general. In the central-western town of Salamiya, protestors were seen chanting “we want to live.” And in the Suwayda town of Shahba, demonstrators raised loaves of bread in the air while openly criticizing Bouthaina Shaaban, Assad’s political and media advisor. The latter protest was partly spurred by a recent interview on the pro-Assad television network al-Mayadeen, where Shaaban not only claimed that the country’s current economy is “fifty times better than what it was in 2011,” but also declared that “Syrians are self-sufficient in everything.” In response, protestors sarcastically noted that her comments referred to her own household’s economy, not Syria’s. Elsewhere, former agriculture minister Nour al-Din Manna described Shaaban’s remarks about the war-torn country as “hard to believe,” and a closer look at the country’s finances supports this disbelief.
Topic:
Foreign Policy, Economics, Syrian War, and Currency
Political Geography:
Middle East, Lebanon, Syria, and United States of America

29. Reading Trump in Tehran

Author:
Mehdi Khalaji
Publication Date:
02-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
A week after Donald Trump was elected president in November 2016, Iran’s Supreme Leader Ali Khamenei played coy, remarking, “I have no judgment on the American election...[Both parties have been] naughty toward us.” Of course, his true reaction was far more complex. On one hand, he saw in the president-elect—who had spoken much of disentangling U.S. forces from the Middle East—a prospect of decreased military pressure on his country. On the other, he heard Trump’s raw vitriol directed at Iran’s leadership and the nuclear deal crafted by President Obama. The eventual U.S. withdrawal from the JCPOA demonstrated that the new president could back up his talk with punishing action. In this close analysis of statements by Khamenei and other Iranian leaders, former seminarian Mehdi Khalaji lays out the regime’s current views on President Trump and the United States. He shows that even after the American assassination of Qods Force chief Qasem Soleimani, Iranian leaders could be open to negotiating with Washington if they believe the regime’s existence depends on it.
Topic:
Foreign Policy, Politics, Elections, and Donald Trump
Political Geography:
Iran, Middle East, North America, and United States of America

30. U.S. Do’s and Don’ts in Iraq

Author:
Michael Knights
Publication Date:
01-2020
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
To ensure that new protests, new sanctions, and new political leadership wind up helping rather than hindering Iraqi sovereignty, Washington must handle upcoming developments with great care. In the coming weeks, Iraq’s parliament may appoint a replacement for Prime Minister Adil Abdulmahdi. This is a very positive development, since the country’s sundry Iranian-backed militias would like nothing better than to keep the discredited leader under their thumb as an open-ended caretaker premier following his November resignation. In contrast, a new leader with a new mandate could get the government moving again, pass a budget, bring the criminals responsible for killing protestors to justice, and assuage angry protestors by making visible preparations for early, free, and fair elections—thereby remedying the results of the widely disparaged 2018 vote. Such is the political space that has opened up since the deaths of Iranian Qods Force commander Qasem Soleimani and Iraqi militia chief Abu Mahdi al-Muhandis earlier this month. For the United States, the challenge is how to support these changes without disrupting positive local dynamics.
Topic:
Foreign Policy, Politics, Sovereignty, and Sanctions
Political Geography:
Iraq, Middle East, North America, and United States of America