Labour propose tax avoidance crackdown, Tories balk

Despite recent backlash from big business and finance firms and lobbies, Labour are pushing ahead with a leftward shift to crack down on corporate abuses, according to The Financial Times. In addition to charging that Conservatives have “totally failed” to take sufficient action on tax avoidance loopholes generally, Labour wants to target British tax havens:

On Friday [February 6, 2015], Ed Miliband, Labour’s leader, announced plans to put the UK’s offshore financial centres on a tax haven blacklist if they did not comply with a new transparency measures. But the plan was attacked as unworkable by [Chancellor] Osborne, who seized on it as further evidence that the Labour leader was “unfit to be prime minister”.

 
Grand_Cayman_IslandWell, I don’t know about that, Mr. Osborne, but it seems like trying to do something about the problem of offshore UK/crown tax havens (full story➚) is better than doing nothing. This is, after all, creating a lot of problems for other countries (see previous link), and British governments have repeatedly pledged to the international community to rein them in — and has singularly failed to do so.

It will be interesting to see if Labour are willing to hold fast to their new position on corporate abuses — fully reasonable and sufficiently moderated positions, in my view — until the May elections or if they bend to pressure to be blindly (and fearfully) “pro-business,” as they arguably were in much of the “New Labour” years.

I say “interesting,” because I have a strong suspicion that the outcome of the internal Labour debate — between its working-class/progressive base and its City of London finance types — could prefigure the coming 2016 debates (if we have any) in the U.S. Democratic Party about whether to run on “middle class economics” or in Wall Street’s pocket.

There are certainly a lot of very clear parallels here, given the similarly outsized roles “The City” and Wall Street have taken on in both countries’ economies and politics, along with the controversial transformations of the New Democrats and New Labour led by Bill Clinton and Tony Blair respectively in the 1990s. While it may have worked in the short run, it has caused a great deal of problems for both parties in the longer run.

Moreover, in both countries, the center-left parties find themselves quickly abandoned by their respective financial districts for the conservatives — the natural home of Big Finance — when the winds change. Meanwhile, the under-served natural economic base of Labour and the Democrats drifts angrily, staying home on election day or seeking solace in fringe parties.

There is, of course, one other linkage of interest here. The tax evasion/avoidance problem — combined with various recent banking scandals — have given a new meaning to the phrase “special relationship” between the United States and the United Kingdom, given how often City and Wall Street firms seem to be tangled up in it together.

Senegal, AU launch “universal jurisdiction” prosecution of ex-Chad dictator

Chad’s brutal ex-dictator Hissène Habré will stand trial for war crimes, torture, and crimes against humanity in a landmark trial in Senegal. This is huge news if it goes forward because the Senegal trial — undertaken with African Union backing — and will be the African continent’s first-ever use of “universal jurisdiction.”

Universal jurisdiction is a controversial doctrine that allows countries to prosecute people they arrest for significant crimes of mass violence and human rights abuses committed in other places, even without direct interests of or crimes against the prosecuting country. It has been used most heavily by Spain (full story➚).

Habré, who ruled from 1982 until the 1990 coup that brought incumbent President Idriss Déby to power, has been in Senegal since his fall from power. He was placed under house arrest in 2005 and then formally taken to jail in 2013 ahead of the now-upcoming trial. He has been sought by various jurisdictions, including Chad, for his 1980s crimes — which include hundreds if not tens of thousands of political killings and tens or hundreds of thousands of torture victims — but until now he has avoided prosecution.

Universal jurisdiction efforts against him began as far back as 2000. Senegal was initially unsure whether it could apply universal jurisdiction in its domestic courts, but the country is a firm supporter of international justice as a general principle, having been the first country to ratify the creation of the International Criminal Court.

Throughout Habré’s rule he received paramilitary assistance from the United States (via the CIA) as part of Chad’s on-again-off-again war with Libya’s Qaddafi regime. Besides his crimes again humanity, Habré was most notable on the international stage, especially in retrospect, for his pioneering use of Toyota pickup trucks with improvised gun-mounts for highly-mobile desert combat, a tactic he used against the Libyan Army’s tanks to surprisingly strong effect. This tactic’s late 1980s use in the war with Libya may well have influenced the use of pickup trucks with improvised gun mounts in Libya’s 2011 Revolution against Qaddafi, which may have then spread via Libyan fighters to ISIS (and other insurgent groups) in eastern Syria and western Iraq.

There was extensive (albeit secret) U.S. panic when Habré fell from power that CIA-delivered heavy weapons, including the same type of anti-air equipment as what they were delivering to Afghanistan at the same time, might fall into the hands of Qaddafi, who at that point had already brought down the Pan-Am flight over Lockerbie.

Pictured: Chadian President Hissène Habré and U.S. President Ronald Reagan in 1987. (Ronald Reagan Library)

Pictured: Chadian President Hissène Habré and U.S. President Ronald Reagan in June 1987. (Ronald Reagan Library)

4-party grand coalition deal reached in Tunisia

Four parties and some independents have formed a grand coalition government in Tunisia after months of struggling to assemble a coalition that had a majority but did not include the second-place Ennahda (the main Islamic democrats party), which led much of the transition after the Arab Spring.

Eventually, first place Nidaa Tounes (the secular Bourguibist party), which leads the new cabinet and holds the presidency, recognized that the math wasn’t there to leave out Ennahda and invited them to join, along with two other secular parties, Free Patriotic Union and Afek Tounes. After the October 2014 elections, Nidaa Tounes controls about 40% of the seats in the unicameral Assembly of the Representatives of the People, while Ennahda controls about 32%. Between them, they hold over 70% of the seats and about 85% of the seats with the addition of the 3rd and 5th largest parties.

This has left the new coalition on the receiving end of charges that it has restored One-Party Rule (like what the country experienced for much of its post-independence period), but that ignores the reality that other parties captured very little of the vote but won enough seats to make a smaller coalition very difficult. 12 parties won more than 1% of the vote, and 14 parties plus independents hold seats. The bulk of votes and seats went to Nidaa Tounes and Ennahda. The margin between 2nd (Ennahda) and 3rd place (Free Patriotic Union) is a whopping 53 seats.

Last month, Nidaa Tounes had proposed a coalition with the 3rd largest party (probably its closest ideological match) but that fell 5 seats short of a majority, and neither 2nd place Ennahda nor the 4th place marxist-leninist-secularists of the Popular Front supported a minority government arrangement. (The Popular Front were not invited to participate in this government either and have announced their displeasure with the new coalition too. 5th place Afek Tounes joined instead.)

Bringing four of the five biggest parties on board (including Ennahda), while presenting a rather overwhelming unity force, guarantees that the coalition could survive even if one of them drops out later. Moreover, it at least gives a say in governance to a collective 70%+ of voters, without giving disproportionate power to parties that won just 1-2% of the vote each last October. After all, even a 3-party coalition of Nidaa Tounes, Free Patriotic Union, and Popular Front (or Afek Tounes) — but without Ennahda — would have only had the support of only about 45% of all voters, even if it held a majority of seats in the assembly. That’s a good way to delegitimize democracy at the start. In contrast, this four-party coalition will be providing majority rule as well as representing various political factions and minorities.

On balance, this grand coalition is excellent news, in my opinion. This is the path forward for the next few years in the first term of elective democracy under the new, post-Arab Spring Constitution. Everyone is on the hook for failures and bad decisions as part of the coalition, so it removes some incentives to be obstructionist or to root for failure. It also encourages party supporters not to fight each other outside a political context.

Major, controversial ministries like Interior, Defense, and Justice have been given to independents, which might also help defuse tensions and reduce the risk of those offices being turned into political weapons. Less controversial key ministries have been divided between Nidaa Tounes and Ennahda, with the winning secularists representing the high-profile public face of Tunisia (via the Foreign Ministry and Finance Ministry for example), while the lower-profile but important work at the Employment Ministry goes to the Islamists, along with various junior ministries. Giving the Islamists the Employment Ministry seems an ideal choice, as that’s a major focus/concern of the party and has been a big factor in their popularity. The coalition’s other big challenge will be combating the appeal of terrorist recruiters in Tunisia.

Prime Minister Habib Essid spoke to members of the Assembly after the coalition proposal was overwhelmingly adopted and said “The motto of this government will be work, then work… and nothing other than work.”

Time to get to it, then.

Flag-of-Tunisia

Inherent Resolve: And then there was one?

Tuesday night the news broke from U.S. government officials that the United Arab Emirates had quietly withdrawn participation in the U.S.-led air campaign in Syria, back in late December.

The United Arab Emirates, a crucial Arab ally in the American-led coalition against the Islamic State, suspended airstrikes against the Sunni extremist group in December, citing fears for its pilots’ safety after a Jordanian pilot was captured and who the extremists said had been burned to death, United States officials said Tuesday.

 
This suspension of UAE participation stands in stark contrast with their very bold statements about the necessity of entering the war against ISIS in the first place (as well as with their surprising covert bombing run in Libya last year). It particularly contradicts the country’s “bolder stance” that Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed Al Nahyan has reportedly been trying to project as he acts on behalf of his brother, the president, who had a stroke last year.

But the apparent exit of the United Arab Emirates from the coalition could have a greater effect than a mere propaganda blow. It leaves the coalition essentially in tatters as far as the 6-member Syrian campaign was concerned.

That coalition, helmed by the United States, also consisted of five Arab states: the UAE, Jordan, Bahrain, Saudi Arabia, and Qatar. Qatar — from the beginning in September 2014 — only participated in an undisclosed “support” role without flying any missions. Bahrain, according to reporting by the Boston Globe in November 2014, dropped out of flights after the first day of action over Syria. Just enough to count as a coalition member, I suppose. Jordan suspended flights after their pilot was captured at the end of December. Now we know the UAE did at about the same time.

That leaves only Saudi Arabia still participating (at least as far as we’re aware). Their resolve appears to be far stronger: a suicide attack that left three Saudi border troops dead in early January did not appear to bring a change in course. Nor did the recent death of King Abdullah of Saudi Arabia.

flag-of-saudi-arabia

True, the Royal Saudi Air Force is still probably the largest and most plentifully equipped air force of the five countries that joined the United States (or the four that were flying in the September air raids), but the Saudi contribution was already fairly minimal by most accounting. That same Boston Globe report that outed Bahrain’s non-participation found the United States had flown 75% of all missions from September 23, 2014 to mid-November 2014 in Syria and Iraq combined (i.e. even counting the European/Canadian/Australian air campaign participation in Iraq).

Plus, with Saudi Arabia being the biggest ideological force and financial accelerant behind the rise of global hardline Sunni extremism in the first place, it’s hardly comforting or useful to have them by our side in this fight against ISIS.

In any case, unless any of these dropout partners rejoin the fray — and it’s possible Jordan might do so, now that the hostage has been executed — these Syria bombing runs at the heart of the so-called Islamic State will be shouldered by the United States and trailed by an almost imperceptible coalition of one: Saudi Arabia. The irony of the name “Operation Inherent Resolve” could hardly be more obvious.

Boko Haram’s offensive on Maiduguri appears to have begun

Nigeria’s Boko Haram insurgency has spent the past month carefully picking off smaller military bases in northeastern Borno state — increasing their supply of weapons, demoralizing the armed forces, and reducing the chances of reinforcements arriving when the group turns toward a bigger prize. That prize is Maiduguri, the Borno state capital and a city of two million where the organization got its start, and the road is now — quite literally — open to it. Unsurprisingly, Boko Haram appears to have launched a concerted offensive to take the city.

maiduguri-nigeria-map

Complementing Boko Haram’s manipulative strategy of minimizing world attention on their operations (full story➚), the group waited to start their offensive against Maiduguri until day after President Goodluck Jonathan’s recent re-election campaign rally there. That timing likely created maximal local terror, with the least resistance, but without attracting as much attention as another group might have sought.

Most groups probably would have launched a coordinated offensive on the city during the rally to maximize propaganda value. Indeed, four years and three months earlier, in October 2010, a very different and much older Nigerian terrorist organization — the southern Movement for the Emancipation of the Niger Delta (MEND) — dramatically staged a car bomb attack in the middle of a campaign rally in Abuja, the federal capital of Nigeria, almost in front of President Jonathan himself.

Even back in 2010 (see previous link), Boko Haram itself was known to bomb campaign rallies. Some four years later, they didn’t they hit Maiduguri while President Jonathan was present. Instead, the group waited to attack one day later. It’s entirely possible that this delay was the strategically and tactically superior move.

Boko Haram’s commanders would have known that security — and media coverage — would be substantially heightened while the president was physically in the city. By waiting a day and not attacking the city while the President of Nigeria was present, there was not nearly as much firepower present — or cameras to put it on the evening news in the United States.

An early edition of the BBC report (since revised, but I saved the text beforehand) tells the story of what happened next:

One resident on the outskirts of the town told the BBC that “hundreds of thousands of people” were fleeing and that the military was keeping a low profile.

“Only prayers will save us now, not the military,” she said, pointing out that the town’s defences now depended on civilian volunteers who had formed to repel the militant threat.

 
The attack was turned back after sustained counter-assault by federal troops, local defense militias, and the air force, but the assault on Maiduguri provided a distraction while Boko Haram seized the town of Monguno and sent federal troops there packing:

Militants also reportedly attacked Monguno, 140km (86 miles) north of Maiduguri.

Security sources told Reuters the army there was being overwhelmed, with houses set on fire.

A journalist in Maiduguri told the BBC that fleeing soldiers from Monguno were now arriving at the barracks in in Maiduguri.

Monguno fell this past weekend after about a week of attacks.

The attack on Maiduguri the previous weekend also probably tested the current defenses and deployments in the city ahead of the full-scale offensive, which began this past weekend.

Militants from the Islamist Boko Haram group began attacking Nigeria’s major northeastern city of Maiduguri shortly after midnight, residents told FRANCE 24 on Sunday, in an alarming escalation of violence ahead of a critical general election.

Explosions and gunfire erupted on the outskirts of the city in the middle of the night, marking the start of a major attack, according to Maiduguri residents. The sound of constant shelling could be heard from the Njimtilo area, about 20 kilometres away from the city, until around 11am local time.

More:

Boko Haram fighters stormed the northeastern Nigerian city of Maiduguri on Saturday, sparking a running battle with Nigerian troops for control of the strategically crucial Borno state capital.

Islamic extremists attacked Maiduguri, the biggest city in northeast Nigeria from four fronts overnight with the crescendo of warfare – booming cannon and whooshing rockets – continuing Sunday, witnesses said.

 
Now, we wait to see whether Boko Haram can take and hold the city against the Nigerian military and an impending arrival of multinational forces from the African Union.

Without intervention, it seems almost inevitable at this point that the federal government will allow Maiduguri to fall.

ISIS and Boko Haram are both playing us. Just differently.

ISIS (Iraq and Syria) and Boko Haram (Nigeria) have superficially similar goals and a loose alliance with each other. But the former thrives on attention for global recruitment and to provoke Western military responses through antagonism (inciting further support for the cause), while the latter thrives on the West not caring enough (full story➚) to bother with most insurgencies in sub-Saharan Africa. Both are playing Americans in two very different ways.

In recent months, more than two thirds of the northeastern Nigerian state of Borno has fallen to or been destroyed by Boko Haram. Currently, the state capital of Borno, the city of Maiduguri, is coming under heavy attack nearly daily from Boko Haram. Maiduguri is widely believed by analysts to be high on the capture list as a relatively major city Boko Haram might be able to take … and hold. Its population is slightly larger than that of Mosul, Iraq, the city that became a tipping point prompting Western gaze to return to the insurgency under its new name of ISIS just over six months ago.

But even without Maiduguri, Boko Haram has already drawn even with or far surpassed ISIS on a number of factors. For example, the estimated 10,000-13,000 people Boko Haram killed in 2014 alone is more than twice if not three times larger Boko Haram’s own figures for the previous four years combined, as well as being several thousand greater than the ISIS killing rate for 2014, along with holding higher records for mass execution events.

Territorially, Boko Haram has made achievements similar to those of ISIS. As previously noted on this site:

TIME magazine reports this alarming development:

Boko Haram […] controls an estimated 30-35,000 square kilometers, roughly the same amount of terrain as Syria and Iraq’s Islamic State.

It’s pretty telling about U.S. priorities, over-reactions, and under-reactions in different parts of the world that the response to ISIS last year was sharply different — which is to say, not even on the same scale of magnitude — from the response to Boko Haram, even as they now control the same land area by size.

Mass executions by ISIS in Syria and Iraq have so far reportedly topped out at 700 people in a two week killing spree (although the total figures across incidents over the past year are significantly higher). If the civilian body count estimates coming out of north Borno state in northeast Nigeria prove correct, Boko Haram will have already significantly exceeded the August 2014 massacres by ISIS.

 

While Boko Haram certainly warrants more attention from the United States and Europe than it has gotten (although ideally it would be a more judicious and targeted attention than the hysteria ISIS has provoked), it is also important to remember that the differences in coverage and attention are at least partially a function of the radically different modus operandi of each group.
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Why did Niger explode in violent protests on Charlie Hebdo?

More than 40 churches were burned in two-day riots in Niger this past weekend ostensibly over the publication of the post-attack edition of Charlie Hebdo with yet another cartoon of Muhammad on the cover.

niger-map-ciaAs the BBC notes in the quotes below, a reaction of some kind in Niger wouldn’t be out of the ordinary — there were, after all, also protests (some violent) in Pakistan, Sudan, Algeria, Somalia, and other countries on the same day the riots in Niger began — but the intensity was startling.

(Moreover, Niger doesn’t have a serious Christian-Muslim sectarian split the way Central African Republic’s now war-torn population does, which would normally be a prerequisite factor for explosive and seemingly sectarian violence like this.)

Niger’s population is 99% Muslim, so it wasn’t a surprise that there was a reaction to Charlie Hebdo’s caricature. But what was surprising was the scale of the subsequent protests and violence. Similar demonstrations in the past have been conducted peacefully, and even the authorities could not come up with an answer as to why the latest riots turned ugly.

 
So what are some of the suggested reasons for the widespread reaction? From the same BBC analysis:

One school of thought is that protesters were angry about their president attending the solidarity march of world leaders in Paris after the attack on Charlie Hebdo’s office.

A second theory is that the violence was fuelled as much by politics as religious grievance – an idea given credence by the fact that protests started in the opposition stronghold of Zinder.

The last and the most complex theory relates to Boko Haram, the Islamist militant group from neighbouring Nigeria. Officials are reportedly investigating whether the group were involved in stoking the protests – they say a Boko Haram flag was seen – though whether the government is merely exploiting the group to gain outside sympathy remains to be seen.

 
I would also venture a possible fourth hypothesis, bridging the first and second as well as the specific and unusual targeting of Catholic Churches.

Niger, in the post-colonial period, has been subjected to an exceptionally high level of French meddling and military presence relative even to the other former French colonies. In large part, this is because of France’s large domestic nuclear power capacity, which in turn depends heavily on access to uranium deposits in Niger. Niger is extremely poor, extremely underdeveloped, and extremely unstable (very coup-prone). People are persistently pretty miserable, and France has been fairly heavy-handed about interfering in politics and security affairs to ensure continued stability of access to uranium but hasn’t offered much else.

In a country that is 99% Muslim and continues to face seemingly neo-colonialist, extractive involvement by France, Catholic Churches are probably the most visible and plentifully distributed symbols of continued French influence in Niger. If I were angry at my largely failed government (or wave after wave of governments whose only consistent feature was loyalty to the former occupier), I might start looking pretty disapprovingly at those easily reachable (and thus targetable) symbols of colonialism and failed pro-French governance. Combine that with another visible show of support by the local government for the concerns of the French citizenry (and an offensive magazine that often seemed to traffic in offensive colonial-era tropes) over the Nigerien population, and it’s a particularly volatile mix.

I don’t know if this is what the rioters were actually thinking when they attacked the churches, but it would probably make the most sense as an explanation in a situation where there had not been a recent history of sectarian religious war. In that light, the riots would not be religiously grounded but rather a reaction to the French system and continued abuses of the people, locally and from abroad.

Unfortunately, this kind of instability will probably only make France reinforce its permanent military presence in the country because it will convince them they were right not to trust the locals to maintain the stability and security of the country’s uranium deposits, upon which France relies so heavily.