Research & Commentary Results

The 12-country Gas Exporting Countries Forum (GECF), which held its latest meeting in Equatorial Guinea on Nov. 28, has never had OPEC’s ability to control energy prices, but that is likely to change as liquefied natural gas (LNG) transforms the gas market from a regional to a global one.  

Faced with rapidly deteriorating public finances, Iranian policymakers had no choice but to reduce gasoline subsidies through a combination of rationing and price hikes. However, the way in which they did so was problematic, especially when they had other, better policy options that would have ensured a more equitable, effective, and efficient outcome.

The protests that began in Iran in mid-November may well have a direct impact on Tehran’s relations with Washington. Initially sparked by the Iranian government’s sudden decision to raise fuel prices, the demonstrations have made clear the country’s fragile socio-economic and political situation.

For years, politics and conflicts in the Middle East have spilled over into many other regions of the world. Refugee crises, terrorism, and political instability in the Middle East have impacted foreign and domestic policy and politics in North America and Europe, but the Caucasus is much closer and, therefore, a particularly important case for policymakers in Washington and Brussels.

Female entrepreneurs in Iran have to contend with domestic, social, and legal barriers. To overcome the challenges, they are increasingly embracing online business, and many use Instagram as a platform.

Adding to the backdrop of economic mismanagement, corruption, and increasing rates of poverty and inequality, the recent gasoline rationing and price hikes have ignited widespread and violent protests inside Iran. Despite recent changes, the country’s energy subsidy regime remains highly inequitable, ineffective, and inefficient.

The nationwide protests are the most significant domestic political development in Lebanon since the end of the civil war. It would be useful to examine both the short and long term political potential of this new awakening.

In the short term, the protests have already mobilized the power of the public to bring down a corrupt and ineffective government, and to gain great leverage on the rejection or acceptance of any new government. They have also raised urgent national demands and forced the ruling class to confront these demands. 

On a recent trip to my native Lebanon I looked on its ongoing, unprecedented protests with both wonder and worry. The country is a month into widespread anti-government demonstrations. The protests’ scale ebbs and flows but the relative calm during my stay had a fleeting if not sinister quality to it. That calm is unraveling. However this chapter of Lebanon’s history unfolds, this complicated country has changed irreversibly.

China’s Belt and Road Initiative (BRI) has been a powerful driver of the development of existing and new Eurasian rail routes. A web of competing and complementary rail lines has begun to form across the Eurasian landmass. Railway cargo service between China and Europe has fast become a compelling “middle option” — cheaper than air and faster than sea.

The MENA region needs bolder and deeper economic reforms. GDP growth is projected to be 0.6 percent in the region in 2019, a fraction of what is needed to create enough jobs for its fast-growing working-age population. Even in the few countries that have had periods of higher growth since the 2011 Arab Spring, poverty rates have failed to drop, suggesting the need for reforms to instill fair competition and promote more inclusive patterns of growth.

On the surface the latest protests in Iran appear to be not that different from the previous ones in late 2017 and early 2018. In reality, however, things are quite different this time around, and the Iranian authorities are deeply alarmed.

The Saudi Aramco IPO got started this Sunday morning with shares priced at SAR 30-32 ($8-8.50) each, valuing the company at $1.7 trillion, $300 billion below the original estimate. The lower valuation has been expected for some time by most investment banks and many financial analysts. The proceeds are expected to fund the Public Investment Fund’s forays into non-energy-based companies, advanced technologies, and even robot-filled cities.

In Lebanon, the protests have entered their second month with contending parties stuck in a stalemate that is not hurting enough to incentivize concessions from any party. Ruling elites are at a loss what to do.

The Royal Institute for Strategic Studies (IRES), charged by the Government of Morocco with analyzing and monitoring the country’s external relations, turned its attention to the U.S.-Morocco relationship at a conference conducted at its Rabat headquarters on Oct. 29. Taking note of the long history of the bilateral relationship — Morocco was one of the first countries in the world to recognize the new American republic in 1777 — panelists reviewed the current state of political, economic, and cultural engagement between the two nations.

The Nov. 1 seizure by Malta of two 2000-cubic-foot containers full of Libyan currency printed by the Russian state printer, Goznak, that was intended for delivery to Libya’s non-internationally recognized eastern government, highlights the continuing importance of the economic aspects of Libya’s ongoing civil war.