Middle East

Arab League's warnings fall on deaf ears
By Hooman Peimani

On September 5, the Arab League foreign ministerial meeting held in Cairo unanimously backed Iraq in its apparent showdown with the United States. Arab League Secretary-General Amr Moussa clearly expressed the opposition of all 22 members (most of whom are close oil-producing allies of the United States) to any American attack against Iraq, which, according to him, would "open the gates of hell in the Middle East".

Despite such unanimous Arab opposition, the consequences of the continued American push for a war against Iraq, now backed by British Prime Minister Tony Blair, will not be confined only to instability in Arab countries, most of which are already facing domestic political challenges. Also, it will likely pave the way for a long period of uncertainty about oil supplies in international markets, with possible major economic and political consequences both for oil-exporting and oil-importing economies.

The Arab League's unanimous support of Iraq did not surprise anyone. The Arab foreign ministers attending the Cairo meeting simply reiterated what they had already stated publicly and privately. By and large, the Arab regimes suffer from a weak and fragile social basis resulting from their incompetence and corruption. Economic difficulties have further increased social discontent, not only in the poor Arab countries, such as Jordan and Egypt, but also in most of the rich oil-exporting countries, such as Saudi Arabia. Consequently, all the Arab elites have resorted to authoritarianism in various forms to ensure their survival. Repression and rampant abuses of human rights have actually worsened the situation by further alienating their already dissatisfied peoples. The result has been a growing gap between the Arab regimes and their respective peoples.

In the absence of a possibility for legal political activities and of democratic means for changing governments - ie, elections - the social situation has become suitable for the emergence of extremist political groups in many Arab countries advocating violence as the only way for changing the undesirable undemocratic regimes. Operating in radicalized societies, such groups capitalize on the growing popular discontent and eroding legitimacy of Arab states to expand and promote their subversive political views. As a result, a few exceptions aside (eg, Lebanon), radical, extremist and fanatic underground groups have mushroomed in Arab countries. Their regimes' high-handed policy toward those groups has at best interrupted their activities for short periods, while granting them more popularity as victims of repressive regimes. As the root causes for their very existence remain intact, their revival and expansion are just a matter of time.

In such a situation, the Arab governments have argued that any future American war against Iraq to replace its regime with a pro-American one would destabilize their countries. The already dissatisfied Arabs who are angry at what they describe as a pro-Israeli American policy towards the Middle East would likely turn the Arab streets into an arena for radical political protests by the masses, who could easily re-focus their anti-Americanism onto their respective governments. Any expression of support by those governments for an American military operation, or any indifference to it, would even worsen the situation.

Apart from its possibly disastrous political outcome, an American attack on Iraq could also impose a high economic cost on many oil-exporting states, including Arab ones, as well as on oil-importing countries. Over the past few weeks, talk about a possible attack pushed up the oil price, which only began to come down after Iraq offered to accept the return of UN inspectors. Yet that may not last long; despite Iraq's move, the repeated pro-war statements of senior American politicians, including President George W Bush, and the emerging signs of bipartisan support for his proposed war in the American Congress, have certainly increased the likelihood of a war in the near future.

If the current trend continues, a steady increase in oil prices will likely be the logical outcome for as long as the threat of war remains in place. The latter will undoubtedly further worsen the grim economic situation in many oil-importing economies, including the industrialized ones. In particular, Japan and the European Union countries with heavy dependency on imported oil, especially from the Middle East, will feel the brunt of more expensive oil on their economies. As most of them have experienced negative or insignificant economic growth over the past few years, significant increases in the price of imported fuel will surely push them deeper into economic problems. Logically, this will be translated into a lower demand for imported oil, which will offset any short-term-gain of increased oil prices in oil-exporting economies.

In turn, the resulting decline in economic activities in Europe and elsewhere will certainly affect negatively many Middle Eastern economies that are heavily dependent on Europe and Japan for employment and for revenue, be it through oil exports (eg, Saudi Arabia and Kuwait) or trade and tourism (eg, Morocco, Tunisia, Egypt and Lebanon). Neither "rich" nor "poor" Arab countries are prepared to deal with the predictable economic consequences.

Unlike what many Westerners might think, most of the "rich" Persian Gulf Arab countries, such as Saudi Arabia, have lost their famous financial might and prosperity. In fact, since the 1990s they have experienced major economic problems caused by the heavy cost of the 1991 Persian Gulf war, long periods of low oil prices and the increasing economic burden of their growing populations. Budget deficits and shortages of funds have damaged their economies, resulting in a lowering of government-provided services for citizens, in a shelving of many development projects and in a decreasing level of financial aid to "poor" Arab countries.

Severe political and economic problems in the Middle East and significant economic difficulties in major oil-importing developed economies seem to be two predictable outcomes of the current American policy towards Iraq. An actual war would have a more destructive economic and political impact. To alarm the Americans about the consequences of their war plan on Iraq, the Arab League foreign ministers expressed in a resolution their "total rejection of the threat of aggression on Arab nations, especially Iraq, reaffirming that these threats and any threat to the security and safety of any Arab country are considered a threat to Arab national security." The united Arab stance has not changed the American resolution to pursue its objective in Iraq. It is not certain whether any coordinated European and Japanese opposition will have a better result.

Dr Hooman Peimani works as an independent consultant with international organizations in Geneva and does research in international relations

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Sep 10, 2002


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