Despite a rising war, Libya’s oil keeps flowing

There are now two rival governments in Libya, an unrecognized one in the western capital and an internationally recognized (and elected) one in the eastern city of Tobruk. From physical infrastructure to virtual infrastructure, everything is a target for the rivals. Politically and militarily, the western faction seems to have gained the upper hand for the moment, but on the economic front, the eastern faction is still maintaining competitive dominance in the battle for control and influence.

Libya is a country with one of the largest oil reserves in the world, and unsurprisingly one of the biggest political struggles between the rival governments is over effective control of the oil production, sales, and revenues — as explained by Jason Pack and Rhiannon Smith:

This battle for legitimacy and power is being played out within Libya’s two most influential institutions: the Central Bank and the National Oil Corporation (NOC). The HoR voted in September to dismiss Sadiq al-Kabir from his position as Central Bank governor, however Kabir appears to still be running the bank. Through him, the Islamist-aligned government has at least some control over Libya’s finances.

Last week, the Central Bank transferred Hassi’s [unrecognized] government enough funds to cover three months of family allowance payments, while a GNC-controlled public spending authority [allied with it] has managed to impose a payment limit of 200,000 Libyan Dinar across the public sector.

Meanwhile, Hassi’s Oil Minister Mashallah al-Zwey has physically taken over the NOC headquarters in Tripoli along with the NOC website. As such, officials are reportedly taking direction from him. Indeed, the official Libyan government website has been taken over by Hassi’s National Salvation government. Those cyberspace realities go a long way to validating the Tripoli government’s claim to sovereignty and legitimacy.

 
Based on this, one might expect a total breakdown in cooperation on oil between the rival factions. Instead, production is up and revenues are continuing to be distributed across the country. It’s a bit haphazard, to be sure, but they haven’t stopped.

Why? The realities of the complex setup of pre-Gaddafi oil royalty systems and citizen salaries, crossed with the international oversight of the country’s oil sector following the 2011 civil war, have resulted in a bizarre and almost amusing level of cooperation, even as the two factions send wave after wave of militias and soldiers and jets at each other.

Here’s the basic setup according to Reuters:

  1. Oil comes out of the ground all over the country.
  2. Oil is largely shipped to export terminals in eastern Libya controlled by the recognized government.
  3. Oil is sold legally on the international market by brokers.
  4. Money from these sales is deposited directly into an overseas account established by the international community.
  5. The only entity able to access the money overseas to bring it back to Libya is controlled by supporters of the unrecognized government and the western rebels.
  6. Most of the oil money brought back into Libya is paid to average citizens, fighters, soldiers, police, etc. in all areas of the country under a system established by Gaddafi. All beneficiaries nominally “work” for the government (either one) in jobs that may or may not exist.

If you detected a bit of a mutually assured destruction or prisoner’s dilemma-style roadblock in there, so did pretty much everybody involved, which is apparently why the two rival forces haven’t stopped the oil party.

When everyone in Libya is employed in a no-show government job funded by oil revenues, everyone in Libya is committed to keeping the oil flowing and being sold legally, despite their differences, even in the middle of what has clearly become a new civil war. Since Western rebels control the payouts and the Eastern government controls the exports, it’s important for everyone to work together even as they’re at war — or else nobody gets salaries. Without salaries, and barring substantially more proxy aid from the Persian Gulf, both sides would collapse as their hired combatants suddenly exit the war.

Unilaterally halting the exports automatically halts the revenue stream, while unilaterally halting the revenue payouts would trigger retaliatory cancellation of the oil exports. The only self-preserving and logical course, therefore, is for neither side to try to hold the other hostage on the oil cycle, at least until both the revenue transfers and exports are controlled by the same side, whether by force or by the international community intervening on the funds repatriation process.

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No budget for “those” kind of diseases…

Sad truths from a New York Times article on an experimental Ebola vaccine that had been successfully tested with monkeys to great fanfare and then sat on a shelf untested on humans for almost ten years…

Its development stalled in part because Ebola is rare, and until now, outbreaks had infected only a few hundred people at a time. But experts also acknowledge that the lack of follow-up on such a promising candidate reflects a broader failure to produce medicines and vaccines for diseases that afflict poor countries. Most drug companies have resisted spending the enormous sums needed to develop products useful mostly to countries with little ability to pay.

 

Credit: Wikimedia

Credit: Wikimedia

Tunisia’s paradox

Flag-of-TunisiaTunisia — by comparison to the rest of the Arab Spring revolutions in Libya, Egypt, Yemen, or Syria — is essentially still the gold standard by leaps and bounds. There’s a moderate government, a fairly liberal constitution, elections were held and are about to be held again, there hasn’t been a coup d’état, there’s no major insurgency, and there’s no civil war.

But on the ground, in non-comparative terms, the picture is a little darker. The irony of the situation in Tunisia, in sum, is that they’ve gotten just enough freedom to be able to recruit for extremism but not enough freedom (and jobs, etc.) to stop a lot of people from being so angry that they want to join extremist causes.

The economic prospects remain about as dire as they were when a popular uprising over joblessness in December 2010 set the rest of the chain in motion, and the new government still hasn’t really managed to rein in the old regime’s extremely abusive police force (whose actions toward one street vendor sparked that uprising in the first place). Resentment is still very high, but the exploitative recruiters from fanatical ideologies now have the ability to recruit more openly than they did under the previous system.

And so it is, as the New York Times reports this week, that Tunisia has become a major source of fighters (and administrators) for the so-called “Islamic State” in eastern Syria and western Iraq, even as most Tunisians disapprove of the extremists.

While religious zealotry is certainly involved, the bigger factor still appears to be a deep-seated anger at the fundamentally unequal economic system of Tunisia, at the cruel security forces maintaining street-level control of people’s lives despite the revolution, and at everyone in the West who helped prop up the regime for decades. They hope to establish an economically fairer, utopian settler state and make new lives for themselves there, and they won’t be dissuaded by inconvenient truths about the realities of ISIS, because their own realities at home are bleak too.

Here’s a snippet from the Times report:

Mourad, 28, who said he held a master’s degree in technology but could find work only in construction, called the Islamic State the only hope for “social justice,” because he said it would absorb the oil-rich Persian Gulf monarchies and redistribute their wealth. “It is the only way to give the people back their true rights, by giving the natural resources back to the people,” he said.
[…]
Imen Triki, a lawyer at a nonprofit that has represented more than 70 returning Tunisians, described the thinking of many young ultraconservative Islamists, known as Salafis: “If I am going to get arrested and beaten here anyway, I might as well go where I can have an impact.”
[…]
Indeed, in dozens of conversations with young Tunisians, almost no one, whether sympathizers or critics, believed the news reports of the Islamic State’s mass killings or beheadings. “It is made up,” echoed Amar Msalmi, 28, a taxi driver. “All of this is manufactured in the West.”

 
The ruling party, which is moderate Islamist, has pledged to take a harder line against extremist recruitment but argues that the problem will only really be solved by turning the economy around and making serious progress in improving the lives of average citizens.

Chris Christie mocks adults earning minimum wage

Here’s a thing Chris Christie just said at the U.S. Chamber of Commerce today:

“I gotta tell you the truth: I’m tired of hearing about the minimum wage. I really am.

“I don’t think there’s a mother or father sitting around a kitchen table in America tonight who are saying, ‘You know, honey, if our son or daughter could just make a higher minimum wage, my God, all of our dreams would be realized.’”

 
And if you haven’t immediately identified the problem with that statement (which I helpfully bolded), here’s a good summary from Steve Benen:

Also note the part of his comments related to children: as if the minimum wage is primarily for young people.

Whether Christie is tired of hearing the truth or not, the fact remains that the vast majority of Americans who work for the minimum wage are over the age of 20. About half of them work full time.

It’s not about creating economic conditions in which “all of their dreams would be realized”; it’s about creating economic opportunities for those who are struggling to keep their heads above water and combatting systemic poverty.


 
I’m a bit curious as to what sort of service industry jobs typically staffed by adults Christie believes are not paid at minimum wage (or arguably less, in the case of waitstaff jobs). I’m guessing he probably doesn’t interact directly with those people anyway, however.

chris-christieGovernor Christie’s efforts to block a minimum wage raise in New Jersey were eventually overturned by a statewide ballot initiative.

Had he and other political leaders raised the minimum wage at state and federal levels more consistently over the past couple decades, to keep pace with inflation, the real purchasing power of every minimum wage paycheck would have remained at levels high enough that people wouldn’t be bringing up the issue so frequently now. Instead, it was allowed to decline significantly in value, leaving full-time minimum wage workers and near-minimum wage workers below the poverty line and unable to make ends meet.

Raising the minimum wage further would help significantly boost aggregate demand in the economy and thus spur consumption-driven growth. The experience of other peer economies with higher prevailing wages has demonstrated that there is plenty of room to sustain higher wages before there are any harms to the job market. It would also reduce the burden on government assistance programs and allow small businesses to hire more people to meet the increased consumer demand resulting from people having more spending money available and less debt to pay off.

There was never a truce in Nigeria, just so we’re clear

On Friday, the world media foolishly decided yet again to take the Nigerian military at its word when they announced a truce with Boko Haram and a deal to release the kidnapped girls from Chibok. I explained, with a laundry list of evidence, why there was no reason to trust that this huge claim was true, especially with zero confirmation or comment from Boko Haram.

It only took a day for “we have a deal” to become they have “agreed in principle” to a deal, with negotiations to follow. And then came the explaining away of ongoing violence after a purported ceasefire.

A senior public affairs aide to the president, Doyin Okupe, told VOA that Boko Haram leadership is on board with the truce and that the violence was perpetrated by “fringe groups” of fighters who likely had not gotten word of the agreement.

 
Over the weekend, the violence continued to mount, undercutting any case that a ceasefire actually existed.

Suspected militant Islamists have shot and slaughtered people in three villages in north-east Nigeria, despite government claims that it had agreed a truce with them, residents say.

Boko Haram fighters raided two villages on Saturday, and raised their flag in a third, residents said.

The government said it would continue negotiating with Boko Haram, despite the alleged breach of the truce.

It hopes the group will this week free more than 200 girls it seized in April.

Boko Haram has not commented on the announcement made on Friday that a truce had been agreed, and that the militants would release the schoolgirls abducted from the remote north-eastern town of Chibok.

 
The government tried to point to the recent release of dozens of Cameroonian and Chinese prisoners as evidence that the purported negotiations were making progress, while skipping over the fact that they were released days before any such deal had been announced and were probably unrelated.

Moreover, the Nigerian government claims to be negotiating in nearby Chad with a man named Danladi Ahmadu, which has immediately raised all kinds of red flags… Read more

US and Turkey part ways on Syrian Kurds

US cargo planes yesterday began ferrying supplies and ammunition from the Iraqi Kurdish Regional Government to Syrian Kurdish fighters in the besieged town of Kobani, despite protests from Turkey’s president.

Earlier Sunday, Turkish President Recep Tayyip Erdogan said his country would not arm the Kurdish fighters, calling them “equal” to the Kurdistan Workers Party that both Turkey and the U.S. consider a terrorist group.

Erdogan said “it would be very, very wrong to expect” the Turkish government “to openly say ‘yes’ to our NATO ally America giving this kind of support. To expect something like this from us is impossible.”

 
This echoes the strident remarks made last weekend by Erdogan’s former deputy prime minister and the current number two in the president’s ruling AK Party, in which he asserted that the battle at Kobani was essentially just terrorists fighting terrorists. It also follows last week’s resumption of Turkish airstrikes against the PKK Kurdish fighters in Turkey after two years of peace.

That, combined with the embarrassing reversal on Turkish airbase use for the Syrian campaign a week ago, appears to have served as a breaking point for the United States on trying to placate Turkey on American policy on Syria’s Kurds, because there was another big shift in addition to the supply drops:

[Erdogan] made the comment days after the United States said it held its first direct talks with the Syrian Kurdish political party the Kurdish Democratic Union Party, which is tied to the Kurdish fighters in Kobani.

 
The Democratic Union Party (PYD) was formed in 2003 by the Syrian Kurdish backers of the PKK in Turkey, about five years after Syria’s Hafez al-Assad regime switched from supporting the the PKK to supporting the Turkish government and ejected the PKK from Syrian territory. During the current civil war, the PYD emerged as the central government structure of the increasingly independent Syrian Kurdistan in the country’s north, an area called “Rojava” or “Western Kurdistan” (eastern Kurdistan being the Iraqi and Iranian areas of Kurdish populations).

Because of their affiliation with the PKK against Turkey, the United States and the rival Kurdish political parties in Iraq had kept their distance from the PYD and their fighters (known as the YPG), but the threat of ISIS increasingly forced everyone toward a fork in the road on whether to embrace them or leave them behind. Turkey’s government appears to have taken the latter path, while the United States is choosing the former. (The Iraqi Kurdish Regional Government is still more on the fence. Despite yesterday’s aid to Kobani, they have complained as recently as last week that they don’t want to help the PYD because they might be allied with Bashar al-Assad, a dubious albeit vaguely plausible allegation that periodically circulates.)

Given the YPG’s vital help earlier this summer in relieving the ISIS siege of the Yazidis on Mount Sinjar in Iraq, helping the Kurdish fighters at Kobani is only fair. Moreover, the Kurdish paramilitaries in Syria remain one of the most reliably US-friendly militant groups in the country’s civil war, and the United States can ill afford to abandon any friends there now.

With the United States now directly talking to Kurdish leaders in Kobani in real time, coalition efforts to lift the siege at Kobani should make much more progress. As I noted previously, it seemed that Turkey’s obstruction and opposition to anyone coordinating with YPG fighters directly was a major impediment to military support at Kobani:

Not only has Turkey still not let coalition planes use airbases close to Kobani — which would make it much easier to reach to offer air support — but Turkey appears to be discouraging the US from talking to Syrian Kurd commanders on the ground to gain real-time intelligence. This may be why coalition airstrikes have been so limited and ineffective at Kobani: there are no spotters on the ground to report rapidly shifting targets for American planes. In contrast, the airstrikes have been much more effective in breaking Iraqi sieges at Sinjar and Amirli in part because the US has a much stronger and pre-existing, working relationship with the anti-ISIS commanders on the ground, particularly within Iraq’s Kurdish Regional Government’s paramilitaries.

The US, of course, is also more focused on broader strategic targets that will break ISIS overall, not just at Kobani […] But relief airstrikes have occurred in Iraq at several key points, which implies that if the United States had more ability to break the siege at Kobani, they would do so. A lot of that impediment seems to hinge on Turkey’s vacillation regarding how to handle the situation at Kobani (and its unwillingness to work with the Syrian Kurdish fighters or let the US work with them).

 
Already we have seen US airstrikes on ISIS at Kobani hit with more frequency and more accuracy in the past several days as YPG commanders provide targeting coordinates to American bombers.

We may well be witnessing the emergence of another far-reaching Middle Eastern alliance between the United States and a minority quasi-government with a large paramilitary.

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Mexico’s war: Still a bigger threat to the US than Syria’s

There are heavily armed militant groups with substantial military experience terrorizing, extorting, and beheading people in a major oil-producing desert country to the south of a NATO member, who have had a destabilizing effect across borders in a wide region encompassing many countries. They lack popular support and rule their territory primarily by fear. They are the Mexican cartels, and we haven’t bombed them at all (unlike ISIS), even as they have captured and held territory for years on end.

That parallel occurred to me a number of weeks ago, when I was reading up on the development of Los Zetas, the cartel that emerged from the Mexican military itself, but I didn’t have enough hard numbers to back up the argument. Then I read this article by Musa al-Gharbi.

The overall numbers are astonishing:

A recent United Nations report estimated nearly 9,000 civilians have been killed and 17,386 wounded in Iraq in 2014, more than half since ISIL fighters seized large parts on northern Iraq in June. It is likely that the group is responsible another several thousand deaths in Syria. To be sure, these numbers are staggering. But in 2013 drug cartels murdered more than 16,000 people in Mexico alone, and another 60,000 from 2006 to 2012 — a rate of more than one killing every half hour for the last seven years. What is worse, these are estimates from the Mexican government, which is known to deflate the actual death toll by about 50 percent.

 
ISIS is held up, as well, for its barbarity. But the cartels in Mexico have them beat there too:

Statistics alone does not convey the depravity and threat of the cartels. They carry out hundreds of beheadings every year. Beyond decapitation, the cartels are known to dismember and otherwise mutilate the corpses of their victims — displaying piles of bodies prominently in towns to terrorize the public into compliance. They routinely target women and children to further intimidate communities. Like ISIL, the cartels also use social media to post graphic images of their atrocious crimes.

The narcos also recruit child soldiers, molding boys as young as 11 into assassins or sending them on suicide missions during armed confrontations with Mexico’s army. They kidnap tens of thousands of children every year to use as drug mules or prostitutes or to simply kill and harvest their organs for sale on the black market. Those who dare to call for reforms often end up dead. In September, with the apparent assistance of local police, cartels kidnapped and massacred 43 students at a teaching college near the Mexican town of Iguala in response to student protests, leaving their bodies in a mass grave, mutilated and burned almost beyond recognition.

 
There has been a far more systematic campaign against reporters and citizen journalists in Mexico than anything we’ve seen from ISIS.

While the Islamic militants have killed a handful of journalists, the cartels murdered as many as 57 since 2006 for reporting on cartel crimes or exposing government complicity with the criminals. Much of Mexico’s media has been effectively silenced by intimidation or bribes. These censorship activities extend beyond professional media, with narcos tracking down and murdering ordinary citizens who criticize them on the Internet, leaving their naked and disemboweled corpses hanging in public squares.

 
The treatment of women is at least as bad under the Mexican cartels as under ISIS but on a much vaster scale:

[…] Westerners across various political spectrums were outraged when ISIL seized 1,500 Yazidi women, committing sexual violence against the captives and using them as slaves. Here again, the cartels’ capture and trafficking of women dwarfs that of ISIL’s crimes. Narcos hold tens of thousands of Mexican citizens as slaves for their various enterprises and systematically use rape as a weapon of war.

 
U.S. airstrikes this summer in Iraq began when ISIS forces came within a few dozen miles of the U.S. consulate in Erbil in the Kurdistan Region of Iraq, while U.S. airstrikes in Syria came after two beheadings in Raqqa, Syria. How does that stack up with Mexico?

U.S. media have especially hyped ISIL’s violence against Americans. This summer ISIL beheaded two Americans and has warned about executing a third; additionally, one U.S. Marine has died in efforts to combat the group. By contrast, the cartels killed 293 Americans in Mexico from 2007 to 2010 and have repeatedly attacked U.S. consulates in Mexico. While ISIL’s beheadings are no doubt outrageous, the cartels tortured, dismembered and then cooked one of the Americans they captured — possibly eating him or feeding him to dogs.

 
ISIS has not staged any attacks in the United States, or killed large numbers of U.S. citizens anywhere for that matter. In contrast, the Mexican cartels have not only staged attacks and assassinations inside the United States but have killed more U.S. citizens inside the United States itself than were killed by al-Qaeda on 9/11.

The cartels’ atrocities are not restricted to the Mexican side of the border. From 2006 to 2010 as many as 5,700 Americans were killed in the U.S. by cartel-fueled drug violence. By contrast, 2,937 people were killed in the Sept. 11, 2001, attacks. Over the last decade, some 2,349 Americans were killed in Afghanistan, and 4,487 Americans died in Iraq. In four years the cartels have managed to cause the deaths of more Americans than during 9/11 or either of those wars.

 
Cult-like pseudo-military organizations controlling large swathes of territory and local government administrations in one of the world’s largest oil producers, while threatening and attacking American citizens and interests regularly, but the United States doesn’t intervene militarily? How bizarre.
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