With today’s video I tie together the past month or so of production, and explain why it is that I’m so interested in North Africa. Arab democracy, human rights, human progress, all of that is lovely. But today I focus on a much more simple, dollars and cents issue: Every month the Atlantic economy is mired in war and destruction in North Africa, is a month where the Pacific Economy surpasses it. The disaster in Libya is contributing to economic stagnation in Europe and the Eastern United States. There are very self interested reasons to promote peace.
I really enjoy the way that this one connects the North Africa region together, and then connects it to the implications for the world as a whole. I don’t think enough media does that. Let me know what you think!
Some videos come pretty easy, and today’s video is one of them. I really like it when new ways of looking at stuff pop into my head. The more I think about it though, there are other aspects to this I should have included. The shift in the oil market here is pretty extraordinary. It’s actually the birth of a sort of “Super OPEC”. It’s also an OPEC that’s a lot more dangerous for its members. With a US president in charge, especially a US president listening to Texas oilmen, military operations become a potent tool of market making.
The world, and the US, used to have a minimal investment in the stability of petro-states. In the long term, these places should be happier without US supported perma-leaders, but the short term looks increasingly grim. As oil demand peaks, the ballooning US petroleum industry will need to be protected. The US can do this by knocking off competitors one by one. This could be an underappreciated aspect of Libya’s permanent oil crisis since 2011. Petro-states on each side of the conflict have no incentive to get their proxies on the same page and producing more. Venezuela is being knocked out. So is Iran. Destabilizing Iraq would be very easy. Saudi Arabia is super shaky. A broader war in the Middle East would be horrible, but it would be pretty great for the new head of OPEC… The US president.
I really like today’s video, but I think I stuck my foot in my mouth a bit at one point. I just sort of declared that Tunisia is not a “white country”. I already know I’ll be getting a ton of comments on that. There is no settled definition of “White”. Because of some historical weirdness, in the US Arabs have generally been described as white, long before Italians or Slavs were considered to be in that category. That hasn’t kept US foreign policy from being heavily focused on bombing Arabs for the past two decades.
I try to avoid using desperately inexact terminology like “white” and “Latino”. But what I was trying to get at with today’s video was the fact that certain countries are inside the charmed circle of countries that are seen as deserving of serious help and foreign aid, and some are not. Tunisia, whatever you may think of the country’s relation to “whiteness”, is not in that charmed circle. It should be.
I wish I could make this channel about Yemen all the time. But I can’t. It would just get too depressing. It’s important to hit this topic as often as I can though. This doesn’t just come from my opposition to Saudi Arabia’s government, and the way they destabilize the region. Yemen is truly in the midst of a catastrophe. One of my regrets from the early stages of my Yemen series is the way that I use the UN’s blanket “12,000 people killed” language. The UN stopped counting the dead in Yemen years ago. A recent report puts the figures at over 55,000 dead.
And those are just the figures for the people who were killed directly by fighting. Large scale starvation is now reckoned to have killed 85,000 children in Yemen as well. The bodycount is mounting and the violence is getting worse. For nothing. For less than nothing. The Iran excuse the Trump administration keeps reaching for is a fantasy. It’s important for folks to know about this, because it’s not a difficult problem. The US could stop the war almost immediately, and it would lose nothing by doing so. Information is the key to the end of the tragedy in Yemen. That’s why I’ll keep making vids like today’s video, and why I’m quite proud of my series on the topic.
Today’s video tries to present the relationships that Saudi Arabia has with Turkey and Indonesia. I don’t really do much of this on this channel, unless we’re talking about one of the world’s great rivalries, like Saudi Arabia vs. Iran. That’s too bad. Almost all of the videos on this channel deal with the way the United States relates to some other country. That’s only natural, as I am a US citizen, and all of us are living in the shadow of the world’s most powerful country to some extent. But I think a lot of valuable detail gets left out if we just focus on the relationships between the US and other countries. And that detail is only getting more important.
Power is flattening. The old imperial model, and the early US world system lent itself to a “hub and spoke” approach. Colonized or just weaker countries tended to have one all important relationship, and then lesser ones with neighbors or other countries with which it had some kind of historical connection. Nowadays more and more places are getting rich, and therefore their relationships are getting a lot more complex. Business and cultural ties can strengthen for a wide range of reasons. Everything’s getting a lot more interesting. I hope to do what today’s video does more often, and cover more relationships between countries outside of the context of the United States.
As I said in today’s video, invading countries is a really stupid thing to do in the 21st century. It’s something I think about a lot, and it’s not focused on enough. It’s one of the best things about modern living. We tell ourselves that the United States doesn’t take territory like old empires because we’re such nice folks. This isn’t really backed up by the historical record. The US spent 50 years failing to subject the Philippines to imperial control as one example. If Iraq had worked out, the Bush administration famously wanted to build a broader empire in the middle east in quick succession. Nationalism quite rightly has a bad reputation, but this is one of its nicer aspects. Folks really care about who rules them today. Independence is something that is valued. Literate, nationalist masses, plus readily available explosives makes the old school kind of empire impossible. So even the most powerful countries find that conquest is too expensive.
It’s interesting to me that this principle isn’t more widely understood. It’s clear from almost every conflict the US has been involved in since World War II, yet we keep jumping into new countries and expecting different results. I suspect that the difficulty of conquest does not make it into most discussion of national security, because it would make it too clear how useless a lot of our military spending is. The Military Industrial Complex needs to pretend that conquest is still a thing that happens.
I’m proud of today’s video, but I wish I had delved into the topic of the Muslim Brotherhood a little more deeply before making it. I have of course looked into the issue in the past. This week I’m reading a lot about 1848, so I ended up interpreting my long settled views on the MB through that lens. Sadly I didn’t do a review of what the “Muslim Brotherhood” is supposed to be in the countries of the Arab world in 2018, until I got to the editing process. I was kind of blown away. The whole Muslim Brotherhood theory really makes no sense at all.
Saudi Arabia really doesn’t like the Muslim Brotherhood. Supposedly. In Saudi Arabia’s view of the world, it’s the Muslim Brotherhood that’s responsible for all the Sunni terrorism over the past couple decades. Saudi Arabia has nothing to do with it. It’s not Saudi Arabia, it’s this vast, international conspiracy that the Saudis are heroically fighting! Qatar’s support for the Muslim Brotherhood is supposedly one of the main reasons that Saudi Arabia is trying to isolate Qatar democratically. Yet in Saudi Arabia’s failed invasion of Yemen, one of Saudi Arabia’s great allies… is the local branch of the Muslim Brotherhood. It’s amazing how completely that undermines the narrative, but just doesn’t get talked about much. There is no real connection to an over-arching group or philosophy.
That’s because there is no over-arching group or philosophy. The Muslim Brotherhood is very powerful in Egypt. Egypt’s military is now trying very hard to crush it, as it has been doing on and off for at least 70 years now. The Brotherhood’s presence elsewhere is an artifact from the dimly remembered past, when Egypt was the leader of the Arab world. The Muslim Brotherhood is as much a parody of what it once was, as Egypt itself is. The most significant problem for the Saudi/US theory of the all powerful Muslim Brotherhood is the movement’s complete absence from Syria. The Assads apparently did a pretty good job of slaughtering the local chapter decades ago. But if the MB was this powerful force for world-wide terror… wouldn’t it have some kind of “boots on the ground” in Syria’s almost decade long coming out party for all of radical Islam’s worst pathologies? Not a thing. The Muslim Brotherhood doesn’t really exist as an international force. Wish I had remembered to get that in today’s video. But I still think it’s pretty good.
So let’s talk about King Abdullah Economic City. In today’s video, I may give the impression that it doesn’t exist. It totally does! It was established in 2005, and much like NEOM, the mega city the Saudis are currently pushing, it was supposed to revolutionize everything!!! 13 years later only about 15% of the 100 billion dollar city has been built. The other three cities that were meant to be built at the same time are somewhere between 30% and 0% completed. Theirwikipediapages make for some depressing reading. Depressingly familiar reading.
The objective of SAGIA’s “10 x 10” program, which ran from 2005 to 2010, was to place Saudi Arabia among the world’s top ten competitive investment destinations by 2010.
Launched in 2006, the Economic Cities program was designed to drive toward greater competitiveness, job creation, and economic diversification.
In developing economic cities, over a thousand of the world’s free zones were surveyed. The sixty deemed most successful were studied to determine key success factors. The objectives of the Economic Cities were to promote regional development, achieve economic diversification, create jobs, and enhance competitiveness in Saudi Arabia. Four new cities were identified and thus developed: King Abdullah Economic City, Jazan Economic City, Prince Abdulaziz Bin Mousaed Economic City, and the Knowledge Economic City, Medina.
When you read some of this 15 year old public relations copy, you realize just how familiar it all is. It’s the same thing as Vision 2030, but it’s Vision 2010. It’s all very sad. Back in King Abdullah’s time it was possible to imagine that Saudi Arabia could pull it off. Their oil was still one of the most valuable commodities in the world. An Aramco IPO back then would have yielded hundreds of billions of dollars. Instead the economic cities plans just sort of fizzled out during the extraordinary expenditures the government made to bribe the populace out of an Arab Spring. After Abdullah died in 2015, the focus shifted to new projects.
A sensible ruler ca. 2015 would have recommitted to all the plans Abdullah had made, and brought them to fruition. It would have made a lot of sense. But that wasn’t ambitious enough for King Salman, and Crown Prince Muhammad Bin Salman. They are diverting scarcer and scarcer funds to all of their new cities, and losing investments in foreign companies. They’ve gotten a lot of uncritical support in the Western Press, but that’s because they are paying for it. So yes, the King Abdullah Economic city exists, as a shell of what it could be. The bottom third is the only section of this BBC article on King Abdullah Economic City that is worth reading. After repeating the standard public relations texts, it lays out what a disappointment the project has been. NEOM might get there too. But it won’t ever become what was promised. Today’s video lays out why.
Let me preface this by saying again that I’m not any kind of Israel expert, but I figured I should talk a bit more about the claim at the end of today’s video, that Israel has helped reduce its neighbors to smoking ruins. The question of Israel’s role in the run-up to the Iraq war is controversial, but the consensus seems to be that they were very much for Bush’s invasion, and did what they could to promote it. The current Israeli government’s almost gleeful support for the destruction of Syria is less controversial. Israel is officially neutral, but in 2017 they conceded that they had carried out around 100 airstrikes against Syrian and Hezbollah targets over the course of the war, and they have acted as a stumbling block to the peace process.
I think this is all a terrible mistake. This policy of aiding in the destruction of Iraq and Syria might have made sense during the Cold War. It would have been vicious then, but it would at least have had some justification. During that era, when they were faced with the opposition of a vastly better armed Iran, Saudi Arabia and Egypt, as well as the opposition of the Soviet Union, taking these sorts of actions would have been rational. Israel’s current leadership still acts as if they face this sort of existential threat. They don’t. And the world knows it. The desperately promoted threat from Iran is virtually nonexistent. The policies against Iraq and Syria that Israel supported did give Iran more power on the ground in these countries, but Israel remains free to bomb them at will in Syria. Most of Iran’s weapons systems date back to the Shah. Iran has made some limited progress with missile technology, but the use of that technology would quickly result in a complete roll-back of Iranian power in the region, and no doubt the destruction of multiple Iranian and Syrian cities by the Israeli and US air forces.
The Soviet Union is gone. Egypt and Jordan are now Israeli allies, and amazingly Saudi Arabia, if still officially hostile, is now largely seen as an Israeli ally as well. The international Palestinian terrorist threat of yore has been almost completely neutralized. It has been co-opted by the Palestinian Authority, and it has been fairly comprehensively rooted out of its old homes in Lebanon and Jordan. With the fences and walls around Gaza and the West Bank, the threat of a third Intifadah is largely meaningless. Palestinians would die in their thousands, in return for a few miles of burned Israeli farms. Netanyahu and company seem to think they are now secure enough to treat the Palestinians any way they want. This is a terrible mistake.
Despite all Israel’s protestations, the world, outside of Washington, DC, can now clearly see that it is more secure than it has ever been. All 21st century wars are media wars, and the Israeli-Palestinian conflict is even more so than others. Netanyahu’s behavior makes it look, even to Israel’s most natural allies, like Israel is THE destabilizing element in the region. Much of Israel’s support in the world, and in the US in particular, is based on the perception that the country is a plucky underdog. Killing Palestinians by the thousand, with the support of former enemies like Egypt, while increasing security cooperation with Saudi Arabia, does not fit that image. As today’s video says, Israel’s current leadership serves the interest of US defense contractors, not the interests of Israel.
So why am I the only guy talking about this? In today’s video I connect a bunch of dots to point out that Saudi Arabia’s investment program isn’t going to help them out of their current mess. In fact that investment program is more than a bit nuts. Funds that are desperately needed to reinvent the country are being sent to some of silicon valley’s riskiest money pits. It’s possible that these investments will make some money eventually, but it isn’t what I’d call likely.
The truth is that all of this information is out there. Today’s video wouldn’t be possible without some great financial journalism done by folks at Bloomberg and the Financial Times. The FT’s “Saudi Sovereign Wealth Fund Scrambles For Resources” in particular was very useful. But this stuff is often behind paywalls, and only read by nerds like myself. This information is all out there, and it’s being acted on by serious investors. That’s why that magical city, NEOM, isn’t going anywhere, and its German CEO has already been shuffled off to another job. That’s why the Saudi-Blackstone infrastructure fund announced at the Saudi-Trump orb fest last year can’t find any other investors. The broader situation really is dire, far beyond the headline grabbing problems with Tesla and Uber.
This is a slow motion catastrophe. But it hasn’t made much of an impact on the broader consciousness yet. That’s because the Saudi PR machine is still working in high gear. Bloomberg, FT, and occasionally the New York Times will follow up on all these projects and their failings, in articles that are only read by a few tens of thousands of people. But when a new project is announced it’s in ALL the outlets, with videos, puff pieces, and endless social media placements. The more disturbing facts are all out there, and I’m proud that I got to bring them to you with today’s video.
Full disclosure: I own some Tesla stock and I’m actually pretty bullish on the company’s long-term chances. If Elon Musk can get his head on straight that is. That doesn’t mean it’s a good investment for Saudi Arabia…
