Turkey: has the AKP ended its winning streak? OSW Commentary No. 117, 2013-10-07

Since the conservative Justice and Development Party (AKP) took power in Turkey in 2002, it has enjoyed a constant winning streak: it won each election (with a support level of 49.83% in 2011), subordinated the army (which had de facto stood above the civilian government) and was reforming the country. The situation in the country was stable (especially when compared to the crises and restlessness in the 1990s), the economy was booming, Turkey’s position in regional politics was strengthening, and Ankara’s significance on the international arena was growing. This encouraged the ruling class to make long-term plans, leading up to the hundredth anniversary of the republic in 2023. In the coming decade, Turkey governed by the AKP was to become one of the global economic and political centres, a full member of the EU and at the same time a political and economic leader in the Middle East. However, the negative trends in the situation both domestically (mass public protests, the deadlocked Kurdish issue and the unsuccessful attempt to amend the constitution) and abroad (the war in Syria and the coup in Egypt) seen over the past few months have laid bare the limitations of the AKP’s rule and have affected the government’s democratic mandate, prestige and credibility on the international arena, as well as peace and order and domestic security. When compared to the beginning of 2013, the way the situation will develop in Turkey is at this moment definitely less predictable; and the possible scenarios include both relative peace (however, with socio-political tension present in the background) and the threat of destabilisation. Therefore, although the AKP will still remain the sole major political force, this party will have to face challenges which will decide not only its political future but also the directions the country will be developing in. However, a comprehensive solution of the accumulated problems and a simple return to the status quo ante, convenient to the government, seem unlikely in the foreseeable future.

Morocco at the Crossroads: Seizing the window of opportunity for sustainable development. MEDPRO Technical Report No. 2/April 2011

The question of state sustainability is highly relevant in the case of Morocco. Despite the image of a modernising and liberalising country, Morocco is undergoing a delicate phase in its development. The recent upheavals in the Maghreb and the Middle East alongside the growing problems of poor education and high unemployment are likely to bring to the surface the unsustainable elements of Morocco’s status quo. The central issues concern the quality of institutions, reforms aimed at promoting the rule of law, curbing corruption and overhauling the judiciary. This paper will argue that while institutional quality is a pre-requisite for successful and sustainable socioeconomic performance, this cannot be achieved unless major reforms in the political system are carried out. There exists a window of opportunity to accelerate reforms and to address the acute centralisation of Moroccan politics and decision-making, the lack of accountability of the monarchic institutions, as well as the fragility of representative bodies, such as parties and trade unions. Seizing this window of opportunity could spare Morocco a period of instability, while also assuring continuity in the framework of the transition that started in 1999 when the new king came to power.

Macroeconomic Scenarios for the Euro-Mediterranean Area Quantification based on the GEM-E3 Model. MEDPRO Report No. 7, July 2013

Four alternative macroeconomic scenarios for southern Mediterranean countries are quantified in this study with the use of GEM-E3, a general equilibrium model. These are i) the continuation of current policies (business-as-usual scenario), ii) southern Mediterranean–EU cooperation (Euro-Mediterranean Union scenario), iii) a global opening of the southern Mediterranean countries and cooperation with the rest of the Middle East and other developing countries like China (Euro-Mediterranean alliance scenario), and iv) a deterioration in the regional political climate and a failure of cooperation (Euro-Mediterranean under threat scenario). Explicit assumptions on trade integration, infrastructure upgrade, population and governance developments are adopted in each scenario. The simulation results indicate that an infrastructure upgrade and governance improvements in the context of southern Mediterranean–EU cooperation could benefit most of the countries under consideration. The analysis remains important in light of ongoing regional developments and the need to design the best policies to pursue in the aftermath of the Arab spring.

Kazakhstan’s voting enthusiasm. EUCAM Commentary No. 11, April 2011

The Kazakhstani political landscape will not be shaken by similar tremors to those that have rocked North Africa and the Middle East in recent months. President Nazarbayev who has been at the helm of Kazakhstan's political architecture since the fall of the Soviet Union is destined to stay. This is in spite of hopes that economic development coupled with the 2010 OSCE Chairmanship would spur the democratisation of the oil-rich state and lead to the rise of a natural successor for the 70 year old leader.

Is the EU-Central Asia Strategy running out of steam? EUCAM Policy Brief No. 17, May 2011

The EU’s Central Asia Strategy approaches its fourth anniversary. In that time the EU has placed its relationship with Central Asia on a more structured footing. Although progress has been made in building dialogue and in furthering engagement, the strategy’s limitations are increasingly obvious. This brief argues that the driving force of the EU engagement should be based on a closer link between security and development. Engagement in this broad field should be underpinned by a values based approach that seeks to promote more explicitly reform on human rights, rule of law, governance and democracy. The momentous changes sweeping across the Middle East and North Africa have demonstrated that even the most apparently durable authoritarian regimes are vulnerable to sudden political shocks.

Involving Central Asia in Afghanistan’s future – what can Europe do? EUCAM Policy Brief No. 20, August 2011

The EU argues in its Central Asia policy that it wants to take greater account of Afghanistan. But what does this mean in practice? There is a case for engaging the Central Asian states beyond agreements over supply and material transport routes to Afghanistan. Central Asian states themselves have the most to gain from a stabilised Afghanistan. Cultural ties and the increasing economic linkages between Central Asia and Afghanistan need to be taken into consideration so that Central Asian states can be assisted in playing a positive role in Afghanistan together with Western actors.

2014-A Centenary and a Discovery. Egmont Security Policy Brief No. 59 December 2014

It is almost as if engaging in war is easier than thinking about war. In the year of the commemoration of the First World War, Europe is facing several wars on its borders, and European forces are actively engaged in Iraq and Mali. But is anyone thinking about the strategic objectives?

EU Sanctions: A Relevant Foreign Policy Tool? EU Diplomacy Paper No. 3, May 2014

This paper examines an instrument which establishes an explicit link between economic power and foreign policy of the European Union (EU): restrictive measures or sanctions. As the EU is increasingly confronted with situations requiring a firm response, sanctions – arguably the EU’s ‘hardest’ tool – have become somewhat of a standard reaction. To what extent are sanctions a relevant tool for EU external action? By looking at several case studies from a set of 47 autonomous EU sanction cases, this paper acknowledges the many internal and external difficulties the EU faces when using the sanctions tool. However, it also shows that despite those challenges, the ‘hard’ and coercive nature of the sanction instrument nevertheless make it a relevant foreign policy tool which allows the EU to react to external crises.

On the periphery of global jihad. The North Caucasus: the illusion of stabilisation. OSW Point of View Number 45, November 2014

The situation in the North Caucasus has stabilised, in comparison with previous years, mainly as regards the activity of the Islamic military underground. This is an effect of ideological changes among the militants which have led to a dilution of the Caucasian armed struggle and its marginalisation in global jihad, since top priority has been granted to the Middle Eastern front. The factors which have contributed to this stabilisation are the organisational crisis in the Caucasus Emirate and the outflux of militants to the Middle East, as well the successful ‘carrot and stick’ policy adopted by Moscow. However, the partial stabilisation in the Caucasus is inherently precarious, being a contingent outcome of the situation rather than the result of systemic change. The region’s pressing problems remain unresolved; and these problems are generating chronic instability and cauing the Caucasus to drift away from Russia in civilisational terms. An economic or political crisis in the Russian Federation may result in the conflicts in the Caucasus unfreezing, including a reactivation of the idea of Chechen independence as well as the idea of the Caucasus Emirate, which is a part of global jihad.

What can Arab countries learn from the post-communist transition? MEDPRO Commentary, 31 May 2012

More than a year has passed since the start of the political uprising against the authoritarian regimes in the Arab world. But, as demonstrated by the ongoing unrest in Syria, the process is far from over. Meanwhile, nations that have already rid themselves of their authoritarian rulers (Tunisia, Egypt, Libya and Yemen), must decide where to go now and how to manage their political and economic transitions. To a lesser extent, a similar challenge is being faced by those constitutional monarchies (such as Morocco or Jordan) that accelerated reforms in order to avoid political destabilisation.   Many politicians and experts, especially those from Central and Eastern Europe, suggest that their Arab colleagues should learn from the post‐communist transition of the early 1990s. However, while learning from others’ experience is always a useful exercise, the geopolitical and socio‐economic context of the Arab revolution appears to be different, in many respects, from that of former Soviet bloc countries more than twenty years ago.

A Global Analysis of of Imperfect Competition in the Banking Systems and the Latest Israeli Regulation Dealing with Market Failures. ACES Working Paper No. 3, 2007

The high concentration of the banking sector is a cross-border phenomenon that has high impact on local and global economies. This paper's main goal is to analyze the factors that impact concentration in the banking systems around the globe. The innovation of this paper is that we combined economic, "economic environment", and culture variables as explanatory variables for this analysis. We found among other things that regulation in the banking system is helpful in order to keep it competitive. We also found that when the society has more individual values rather than collective ones, its banking sector is less concentrated. In the second part of the paper we focused on the Israeli case, showing that although recent indicators of the Israeli banking system indicate a higher level of concentration and lower level of competition, it seems that the recent trend is moving toward less concentration and higher competition.

Is the "Dubai model" a new paradigm for growth and investment strategies for oil-based economies? Case study: Eurasia. ACES Working Papers No. 8, 2008

The first part of the paper addresses the theoretical background of economic growth and competitive advantage models. Although there is a whole set of research on a relationship between foreign direct investments and economic growth, little has been said on foreign direct investments and national competitive advantage with respect to economic growth of oil and gas abundant countries of Middle East and Central Asia. The second part of our paper introduces the framework of the so-called "Dubai Model" in detail and outlines the key components necessary to develop sustainable comparative advantage for the oil-rich economies. The third part proceeds with the methodology employed to measure the success of the "Dubai Model" in the UAE and in application to other regions. The last part brings the results and investigates the degree to which other oil and gas countries in the region (i.e. Saudi Arabia, Kuwait, Qatar, Iran) have adopted the so-called "Dubai Model". It also examines if the Dubai Model is being employed in the Eurasian (Central Asian) oil and gas regions of Kazakhstan, Azerbaijan, Turkmenistan and Uzbekistan. The objective is to gauge if the Eurasian economies are employing the traditional growth strategies of oil-rich non-OECD countries in managing their natural resources or are they adopting the newer non-traditional model of economic growth, such as the "Dubai Model."

Assessing US and EU Foreign Targeting Arab Youth: Lessons from Morocco. ACES Working Papers (progress report), August 2009

As stated in the opening sentence of the proposal submitted for the ACES grant in 2009, the research that this seed grant is supporting is ambitious and large in scale. The primary goal is to produce a book-length study that assesses the priorities and impact of European and American foreign aid targeting youth in the Middle East and North Africa (MENA). To date, the research undertaken with the support of the grant has helped in providing some preliminary data for a) testing few hypotheses, b) fine-tuning the research design; and c) pointing to the direction where more conceptual and ethnographic research should be undertaken.

Syria and Lebanon: Diverging paths of state unsustainability. MEDPRO Technical Report No. 6/June 2011

Any analysis of the prospects for stability and sustainability in the states of Syria and Lebanon reveals the strong ties that exist between these two countries and the impact of external influences on their overall development. Their trajectories, while starkly divergent in terms of the challenges confronting them at present, converge on a path of long-term unsustainability. Lebanon is in the midst of yet another transition phase, triggered by the collapse of Hariri’s government in January 2011. The current situation might be described as one of deteriorating status quo; the state is performing poorly in terms of its delivery of fundamental public services and its institutional legitimacy is tenuous in the face of emerging para-state structures and latent (occasionally active) violence. In Syria, challenges to the sustainability of the state have evolved dramatically since the beginning of 2011, and are now nearing a tipping point. In view of the mounting unrest and violence in the country, the future prospects for its economic and political development are dim. More ominously, the risk of widespread conflict, with sectarian overtones, cannot be discounted.

Israel and Palestine and state (un)sustainability. MEDPRO Technical Report No. 5/June 2011

This report explores the concept of state (un)sustainability in Israel and Palestine. The starting point sees conflict resolution as an independent variable for any change and progress in the area, in terms of a political, just and credible agreement between the two parties, which will then play a decisive role in the development of the Mediterranean region. These developments and prospects for a solution are then evaluated on the basis of state (un)sustainability, a broad notion that refers to the possibilities for long-term development at the political, social and economic levels. The very nature of Israel’s democracy and its relations with its Arab minority, the challenges related to the establishment of a viable and sustainable Palestinian state, and the regional dimension of all the actors involved are considered in order to evaluate future scenarios in this context. Three scenarios are tested: sustainability, which corresponds to the end of the conflict and the establishment of two viable and independent states with a tangible improvement in political and economic indicators; unsustainability, which refers to the perpetuation of the political status quo and the progressive deterioration of all political, economic and social indicators; and finally, weak stability, which entails the achievement of a sterile political stability, able to sustain the present status quo but unable to confront the main challenges for the future of the country(ies).