Rouhani

Iran- the New China?

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iran_china_afp.jpg_1718483346 Iranian President Hassan Rouhani and Chinese President Xi Jinping | Photo: AFP

Originally published in TeleSur on January 29, 2016


If Iran successfully engages in a Chinese-style economic development program it would further enhance its geopolitical status and significance.

It’s currently quite a toss-up when it comes to naming the hardest working man in geopolitical business: Chinese President Xi Jinping or Iranian President Hassan Rouhani.

Their paths cross last week in Tehran in spectacular fashion as Xi and Rouhani clinched a crucial strategic partnership. The two nations agreed to increase bilateral trade to $600 billion over the next decade. Geostrategically, as I pointed out, that was a master class.

Beijing regards Iran, not only in Southwest Asia but across Eurasia, as the essential hub for countering Washington’s much-advertised “pivot to Asia,” centered on U.S. naval hegemony. No wonder Xi made it clear that Iran is to be accepted as a full member of the Shanghai Cooperation Organization (SCO) as early as this year.

A strategic partnership implies Beijing’s full support for the Iranian economic/political/diplomatic renaissance across the arc spanning the Persian Gulf to the Caspian – and beyond. The arc also happens to span all the crucial New Silk Road maritime and land routes that are vitally important for the global projection of the Xi-coined Chinese dream.

And then, only a few days later, Rouhani was in Rome in a warm closed door meeting with Pope Francis after clinching $17 billion in multiple deals.

This frantic post-sanction activity only enhances, in perspective, the absurdity of the Washington-manufactured Iranian nuclear crisis. Geopolitical realism, from Europe to Asia, cannot ignore a nation placed in the intersection of the Arab, Turk, Indian and Russian worlds, underscored by its role as privileged entry and exit point to the vast Caucasus-Central-Asia ensemble, which also includes Afghanistan.

Geostrategically, as the ultimate Eurasian crossroads, Iran is unbeatable, linking the Middle East, Caucasus, Central Asia, Indian subcontinent and Persian Gulf; between three seas – Caspian, Persian Gulf and Sea of Oman; relatively close to the Mediterranean and Europe; and on the doorstep of Asia.

Xi did not have to talk explicit politics in Tehran as he was suffice to clinch deal after deal to impress his point. The long-term trend, inevitably, is for China’s One Belt, One Road vision to bridge the gap toward a Sino-Russian leadership across Eurasia, which translates practically into the progressive sidelining of the British-American imperial continuum. Meanwhile, Italy and France, during Rouhani’s European tour, kept themselves busy playing catch-up.  

When Khamenei Becomes Deng

The frantic post-sanction Iranian scene at least punctures the previous, relentless Western demonization and lays out the bases for   economic development in just about every sphere. The Islamic Republic of Iran has faced a tremendous handicap for the past 36 years – something that would have broken any less-resourceful society.  

Sanctions over the past 10 years cost Iran at least 480 billion euros; that’s roughly one full year of Iranian GDP. In a world not ruled by the usual suspects of financial oligarchy, Tehran would have grounds to take Washington to court with a vengeance.  

As for the “Iranian aggression” meme – which, by the way, still persists – that’s a lousy imperial joke. Iran spends 3,9 percent of GDP on defense; compare it with 10.3 percent for the House of Saud oil hacienda. In total, Iran spends seven times less on defense compared to the Gulf petro-monarchies, which cannot subsist without their mostly U.S., British and French weaponizing.  

The road ahead for Iran will be bumpy. Serious problems include corruption, bureaucratic incompetence, and economic sectors reserved to special interests or barred from foreign investment. Sections of the power elite – like the bonyads (religious foundations) and the pasdaran (the IRGC) are not exactly prone to relinquish their grip on vital sectors of the national economy. The economic opening of Iran will inevitably accelerate the social transformation of the country.  

What happens next will largely depend on the crucial, upcoming February elections – which will yield a new Majlis (Parliament), and a new Assembly of Experts in charge of choosing the next Supreme Leader.

Iran is a unique geopolitical case – where a republic derives its legitimacy, simultaneously, from Islam and universal suffrage. This may not be your classic Western parliamentary democracy, but at the same time it’s not some sort of crude authoritarianism of Saudi Arabia. A quite complex system of checks and balances is in place, involving the presidency, the Parliament, the Council of Guardians, the Assembly of Experts and different bodies such as the Discernment Council and the National Security Council.

Supreme Leader Ayatollah Khamenei has made it very clear he will pay close attention to cultural, political and security consequences of an economic opening that could enfeeble the revolutionary ideology of the Islamic Republic. What’s certain is that the Supreme Leader – as an arbiter – will preserve the careful balance of political forces in Iran.  

This means, in practice, that Team Rouhani won’t be allowed to draw unlimited political capital from the economic opening, while at the same time the social and cultural transformation of the country won’t be synonymous to a Western cultural invasion.

The Vienna nuclear deal clinched last summer was no less than a seismic geopolitical event in Iran. Internally, it sealed a consensus between the Tehran state machine and the majority of the population, which wanted Iran to become a “normal” nation again.

Now comes the hard part. The most probable scenario spells out an Islamic Republic of Iran engaged in a Chinese-style economic development program. Sort of a Persian “get rich is glorious” remix, under strict political control.

This begs the question: are we ready for the new Supreme Leader role as the Iranian Deng Xiaoping?


Pepe Escobar is an independent geopolitical analyst. He writes for RT, Sputnik and TomDispatch, and is a frequent contributor to websites and radio and TV shows ranging from the US to East Asia. He is the former roving correspondent for Asia Times Online, where he wrote the column The Roving Eye from 2000 to 2014. Born in Brazil, he's been a foreign correspondent since 1985, and has lived in London, Paris, Milan, Los Angeles, Washington, Bangkok and Hong Kong. Even before 9/11 he specialized in covering the arc from the Middle East to Central and East Asia, with an emphasis on Big Power geopolitics and energy wars. He is the author of "Globalistan" (2007), "Red Zone Blues" (2007), "Obama does Globalistan" (2009) and "Empire of Chaos" (2014), all published by Nimble Books. His latest book is "2030", also by Nimble Books, out in December 2015. He currently lives between Paris and Bangkok. Follow him on Facebook: https://www.facebook.com/pepe.escobar.77377

Fear And Loathing in the House of Saud

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Originally published in Sputnik on January 8, 2016


Desperation does not even begin to describe the current plight of the House of Saud.

Riyadh was fully aware the beheading of respected Saudi Shi'ite cleric Nimr al-Nimr was a deliberate provocation bound to elicit a rash Iranian response.

The Saudis calculated they could get away with it; after all they employ the best American PR machine petrodollars can buy, and are viscerally defended by the usual gaggle of nasty US neo-cons.   

In a post-Orwellian world "order" where war is peace and "moderate" jihadis get a free pass, a House of Saud oil hacienda cum beheading paradise — devoid of all civilized norms of political mediation and civil society participation — heads the UN Commission on Human Rights and fattens the US industrial-military complex to the tune of billions of dollars while merrily exporting demented Wahhabi/Salafi-jihadism from MENA (Middle East-Northern Africa) to Europe and from the Caucasus to East Asia. 

And yet major trouble looms. Erratic King Salman's move of appointing his son, the supremely arrogant and supremely ignorant Prince Mohammad bin Salman to number two in the line of succession has been contested even among Wahhabi hardliners.

But don't count on petrodollar-controlled Arab media to tell the story.

English-language TV network Al-Arabiyya, for instance, based in the Emirates, long financed by House of Saud members, and owned by the MBC conglomerate, was bought by none other than Prince Mohammad himself, who will also buy MBC.

With oil at less than $40 a barrel, largely thanks to Saudi Arabia's oil war against both Iran and Russia, Riyadh's conventional wars are taking a terrible toll. The budget has collapsed and the House of Saud has been forced to raise taxes.

The illegal war on Yemen, conducted with full US acquiescence, led by — who else — Prince Mohammad, and largely carried out by the proverbial band of mercenaries, has instead handsomely profited al-Qaeda in the Arabic Peninsula (AQAP), just as the war on Syria has profited mostly Jabhat al-Nusra, a.k.a. al-Qaeda in Syria.

Three months ago, Saudi ulemas called for a jihad not only against Damascus but also Tehran and Moscow without the "civilized" West batting an eyelid; after all the ulemas were savvy enough to milk the "Russian aggression" bandwagon, comparing the Russian intervention in Syria, agreed with Damascus, with the 1979 Soviet invasion of Afghanistan.   

US Think Tankland revels in spinning that the beheading provocation was a "signal" to Tehran that Riyadh will not tolerate Iranian influence among Shi'ites living in predominantly Sunni states. And yet Beltway cackle that Riyadh hoped to contain "domestic Shi'ite tensions" by beheading al-Nimr does not even qualify as a lousy propaganda script. To see why this is nonsense, let's take a quick tour of Saudi Arabia's Eastern province. 

All Eyes on Al Sharqiyya

Saudi Arabia is essentially a huge desert island. Even though the oil hacienda is bordered by the Red Sea and the Persian Gulf, the Saudis don't control what matters: the key channels of communication/energy exporting bottlenecks — the Bab el-Mandeb and the Straits of Hormuz, not to mention the Suez canal.

Enter US "protection" as structured in a Mafia-style "offer you can't refuse" arrangement; we guarantee safe passage for the oil export flow through our naval patrols and you buy from us, non-stop, a festival of weapons and host our naval bases alongside other GCC minions. The "protection" used to be provided by the former British empire. So Saudi Arabia — as well as the GCC — remains essentially an Anglo-American satrapy.         

Al Sharqiyya — the Eastern Province of Saudi Arabia — holds only 4 million people, the overwhelming majority Shi'ites. And yet it produces no less than 80% of Saudi oil. The heart of the action is the provincial capital Al Qatif, where Nimr al-Nimr was born. We're talking about the largest oil hub on the planet, consisting of 12 crisscrossed pipelines that connect to massive Gulf oil terminals such as Dhahran and Ras Tanura.

Enter the strategic importance of neighboring Bahrain. Historically, all the lands from Basra in southern Iraq to the peninsula of Musandam, in Oman — traditional trade posts between Europe and India — were known as Bahrain ("between two seas").

Tehran could easily use neighboring Bahrain to infiltrate Al Sharqiyya, detach it from Riyadh's control, and configure a "Greater Bahrain" allied with Iran. That's the crux of the narrative peddled by petrodollar-controlled media, the proverbial Western "experts", and incessantly parroted in the Beltway.  

Workers rest at Ras Tannura's oil production plant near Dammam in Saudi Arabia's eastern province

There's no question Iranian hardliners cherish the possibility of a perpetual Bahraini thorn on Riyadh's side. That would imply weaponizing a popular revolution in Al Sharqiyya.  But the fact is not even Nimr al-Nimr was in favor of a secession of Al Sharqiyya. 

And that's also the view of the Rouhani administration in Tehran. Whether disgruntled youth across Al Sharqiyya will finally have had enough with the beheading of al-Nimr it's another story; it may open a Pandora's box that will not exactly displease the IRGC in Tehran.  

But the heart of the matter is that Team Rouhani perfectly understands the developing Southwest Asia chapter of the New Great Game, featuring the re-emergence of Iran as a regional superpower; all of the House of Saud's moves, from hopelessly inept to major strategic blunder, betray utter desperation with the end of the old order.  

That spans everything from an unwinnable war (Yemen) to a blatant provocation (the beheading of al-Nimr) and a non sequitur such as the new Islamic 34-nation anti-terror coalition which most alleged members didn't even know they were a part of. 

The supreme House of Saud obsession rules, drenched in fear and loathing: the Iranian "threat".

Riyadh, which is clueless on how to play geopolitical chess — or backgammon — will keep insisting on the oil war, as it cannot even contemplate a military confrontation with Tehran. And everything will be on hold, waiting for the next tenant of 1600 Pennsylvania Avenue; will he/she be tempted to pivot back to Southwest Asia, and cling to the old order (not likely, as Washington relies on becoming independent from Saudi oil)? Or will the House of Saud be left to its own — puny — devices among the shark-infested waters of hardcore geopolitics?


PepePepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007), Red Zone Blues: a snapshot of Baghdad during the surge (Nimble Books, 2007), and Obama does Globalistan (Nimble Books, 2009).

Historic Iran Nuke Deal a Huge Win for Everyone

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Originally published in Russia Insider on July 16, 2015

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This is it. It is indeed historic. And diplomacy eventually wins. In terms of the New Great Game in Eurasia, and the ongoing tectonic shifts reorganizing Eurasia, this is huge: Iran — supported by Russia and China — has finally, successfully, called the long, winding 12-year-long Atlanticist bluff on its “nuclear weapons.”

And this only happened because the Obama administration needed 1) a lone foreign policy success, and 2) a go at trying to influence at least laterally the onset of the new Eurasia-centered geopolitical order.

So here it is – the 159-page, as detailed as possible, Joint Comprehensive Plan of Action (JCPOA); the actual P5+1/Iran nuclear deal.

As Iranian diplomats have stressed, the JCPOA will be presented to the United Nations Security Council (UNSC), which will then adopt a resolution within 7 to 10 days making it an official international document.

Iranian Foreign Minister Javad Zarif has described the deal — significantly — as a very Chinese “win-win” solution. But not perfect; “I believe this is a historic moment. We are reaching an agreement that is not perfect for anybody but is what we could accomplish. Today could have been the end of hope, but now we are starting a new chapter of hope.”

Zarif also had to stress — correctly — this was a long-sought solution for an “unnecessary crisis”; the politicization — essentially by the US — of a scientific, technical dossier.

Germany’s Foreign Minister Steinmeier, for his part, was euphoric; “A historic day! We leave 35 years of speechlessness + more than 12 years of a dangerous conflict behind us.”

Looking ahead, Iranian President Hassan Rouhani tweeted now there can be “a focus on shared challenges” – referring to the real fight that NATO, and Iran, should pursue together; against the fake Caliphate of ISIS/ISIL/Daesh, whose ideological matrix is intolerant Wahhabism and whose attacks are directed against both Shi’ites and westerners.

Right on cue, Russian President Vladimir Putin stressed the deal will contribute to fighting terrorism in the Middle East, not to mention “assisting in strengthening global and regional security, global nuclear non-proliferation” and — perhaps wishful thinking? — “the creation in the Middle East of a zone free from weapons of mass destruction.”

Russian Foreign Minister Sergey Lavrov stressed the deal “fully corresponds” with Russia’s negotiating points. The fact is no deal would have been possible without extensive Russian involvement — and the Obama administration knows it (but cannot admit it publicly).

The real problem started when Lavrov added that Moscow expects the cancellation of Washington’s missile defense plans, after the Iran deal proves that Tehran is not, and won’t be, a nuclear “threat.”

There’s the rub. The Pentagon simply won’t cancel an essential part of its Full Spectrum Dominance military doctrine simply because of mere “diplomacy.”

Every security analyst not blinded by ideology knows that missile defense was never about Iran, but about Russia. The Pentagon’s new military review still states — not by accident — major Eurasian players Iran, China and Russia as “threats” to U.S. national security.

Now from the brighter side on Iran-Russia relations. Trade is bound to increase, especially in nanotechnology, machinery parts and agriculture. And on the all-pervasive energy front, Iran will indeed compete with Russia in major markets such as Turkey and soon Western Europe, but there’s plenty of leeway for Gazprom and the National Iranian Oil Company (NIOC) to coordinate their market share. NIOC executive Mohsen Qamsari advances that Iran will prioritize exporting to Asia, and will try to regain the at least 42% of the European market share that it had before sanctions.

Compared to so many uplifting perspectives, Washington’s reaction was quite pedestrian. US President Barack Obama preferred to stress — correctly — that every pathway to an Iranian nuclear weapon has been cut off. And he vowed to veto any legislation in the US Congress that blocks the deal. When I was in Vienna last week I had surefire confirmation — from a European source — that the Obama administration feels confident it has the votes it needs in Capitol Hill.

And what about all that oil?

Tariq Rauf, former Head of Verification and Security Policy at the IAEA and currently Director of the Disarmament and Non-Proliferation Program at the Stockholm International Peace Research Institute (SIPRI), hailed the deal as “the most significant multilateral nuclear agreement in two decades – the last such agreement was the 1996 nuclear test ban treaty.” Rauf even advanced that the 2016 Nobel Peace Prize should go to US Secretary of State Jon Kerry and Iran’s Foreign Minister Zarif.

Rebuilding trust between the US and Iran, though, will be a long and winding road.

Tehran agreed to a 15-year moratorium on enriching uranium beyond 3.67 percent; this means it has agreed to reduce its enrichment capacity by two-thirds. Only Natanz will conduct enrichment; and Fordo, additionally, won’t store fissile material.

Iran agreed to store no more than 300 kg of low-enriched uranium — a 96% reduction compared to current levels. The Arak reactor will be reconfigured, and won’t be used to produce plutonium. The spent fuel will be handled by an international team.

The IAEA and Iran signed a roadmap in Tehran also this Tuesday; that was already decided last week in Vienna. By December 15, all past and present outstanding issues — that amount to 12 items — should be clarified, and the IAEA will deliver a final assessment. IAEA access to the Parchin military site — always a very contentious issue — is part of a separate arrangement.

One of the major sticking points these last few days in Vienna was solved — with Tehran allowing UN inspectors to visit virtually any site. But it may object to a particular visit. A Joint Commission — the P5+1 + Iran — will be able to override any objections with a simple majority vote. After that Iran has three days to comply — in case it loses the vote. There won’t be American inspectors — shades of the run-up towards the war on Iraq; only from countries with diplomatic relations with Iran.

So implementation of the deal will take at least the next five months. Sanctions will be lifted only by early 2016.

What’s certain is that Iran will become a magnet for foreign investment. Major western and Asian multinationals are already positioned to start cracking this practically virgin market with over 70 million people, including a very well educated middle class. There will be a boom in sectors such as consumer electronics, the auto industry and hospitality and leisure.

And then there’s, once again, oil. Iran has as much as a whopping 50 million barrels of oil stored at sea — and that’s about ready to hit the global market. The purchaser of choice will be, inevitably, China — as the West remains mired in recession. Iran’s first order of work is to regain lost market share to Persian Gulf producers. Yet the trend is for oil prices to go down – so Iran cannot count on much profit in the short to medium term.

 

Now for a real war on terror?

The conventional arms embargo on Iran essentially stays, for five years. That’s absurd, compared to Israel and the House of Saud arming themselves to their teeth.

Last May the US Congress approved a $1.9 billion arms sale to Israel. That includes 50 BLU-113 bunker-buster bombs — to do what? Bomb Natanz? — and 3,000 Hellfire missiles. As for Saudi Arabia, according to SIPRI, the House of Saud spent a whopping $80 billion on weapons last year; more than nuclear powers France or Britain. The House of Saud is waging an — illegal — war on Yemen.

Qatar is not far behind. It clinched an $11 billion deal to buy Apache helicopters and Javelin and Patriot air defense systems, and is bound to buy loads of F-15 fighters.

Trita Parsi, president of the National American-Iranian Council, went straight to the point; “Saudi Arabia spends 13 times more money on its defense than Iran does. But somehow Iran, and not Saudi Arabia, is seen by the US as the potential aggressor.”

So, whatever happens, expect tough days ahead. Two weeks ago, Foreign Minister Zarif told a small group of independent journalists in Vienna, including this correspondent, that the negotiations would be a success because the US and Iran had agreed on “no humiliation of one another.”

He stressed he paid “a high domestic price for not blaming the Americans,” and he praised Kerry as “a reasonable man.” But he was wary of the US establishment, which to a great extent, according to his best information, was dead set against the lifting of sanctions.

Zarif also praised the Russian idea that after a deal, it will be time to form a real counter-terrorism coalition, featuring Americans, Iranians, Russians, Chinese and Europeans — even as Putin and Obama had agreed to work together on “regional issues.” And Iranian diplomacy was giving signs that the Obama administration had finally understood that the alternative to Assad in Syria was ISIS/ISIL/Daesh, not the “Free” Syrian Army.

That degree of collaboration, post-Wall of Mistrust, remains to be seen. Then it will be possible to clearly evaluate whether the Obama administration has made a major strategic decision, and whether “normalizing” its relation with Iran involves much more than meets the eye.

 


Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007), Red Zone Blues: a snapshot of Baghdad during the surge (Nimble Books, 2007), and Obama does Globalistan (Nimble Books, 2009).

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Going Cashless

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Simplifying the Final Countdown

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Bond Market Collapse and the Banning of Cash

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Do Central Bankers Recognize there is NO GROWTH?

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Singularity of the Dollar

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Kurrency Kollapse: To Print or Not To Print?

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SWISSIE CAPITULATION!

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Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

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Merry Doomy Christmas

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Peak Customers: The Final Liquidation Sale

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Collapse Fiction

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