Showing posts with label Economics and Finance. Show all posts
Showing posts with label Economics and Finance. Show all posts

Sunday, January 22, 2023

Will next week be decisive in determining the fate of the global economy?

    Sunday, January 22, 2023   No comments

Bloomberg Agency presents a reading of the most important global economic changes, and indicates the possibility of a total change in global markets, especially after the Chinese decision to completely abandon the steps to combat Corona.


Next week may show more reasons for hope about the global economy, after bleak months filled with negative signs of a deep recession, as some data could reflect the gradual improvement of business partnerships in most parts of the developed world.

Economists expect purchasing managers' indices for both the United States and the eurozone to rise, while many metrics will still point to contraction, the upward trend of travel could add to optimism, according to a Bloomberg report.



Global Purchasing Managers Activity

Such possibilities are reinforced by China's post-pandemic reopening, evidence of slowing inflation, and the emphatic views of some senior European officials that their economies will not stagnate. International Monetary Fund Managing Director Kristalina Georgieva hinted on Friday that the lender may soon raise its forecasts for this year.


"We have, clearly, the strength of labor markets translating into consumer spending and sustaining the economy, and as China reopens, we expect growth this year to again exceed the global average," Kristalina Georgieva said at the World Economic Forum in Davos, Switzerland.


But prices in the US will also be decisive, and the first estimate of Q4 GDP there, due on Thursday, could be helpful. The economy is expected to show expansion at an annual rate of 2.7% in the last three months of 2022, after a pace of 3.2% in the third quarter.


While this data points to strong growth, recent data, including retail sales, home construction and industrial production, showed that momentum was starting to fade in late 2022.


Economists, polled by Bloomberg, see US gross domestic product falling for two consecutive quarters in the middle of this year as sharp interest rate increases by the Federal Reserve curbed demand.


While Asian momentum could provide a boost to these expectations, the IMF chief noted that there is a risk that its contribution to the global economy could be derailed.


Expert point of view

America's fourth-quarter GDP will be boosted largely by strong consumer spending on services, even as goods decline.


Households continued to benefit from excess savings from the stimulus and benefit from strong wage gains, and tightening monetary policy means that 2023 will see significantly weaker demand.


Elsewhere, multiple interest rate decisions may include a possible eventual BoC hike, and a 12th consecutive rate hike in Colombia.


Australia and New Zealand may report slowing consumer price growth, while Eurozone policymakers have one last chance to speak before they meet the following week.


United States and Canada

Apart from the US PMI and GDP reports, the government is expected to announce on Friday that inflation-adjusted personal spending on goods and services fell in December for the first time in a year.


The data is also expected to show moderate inflation rates on an annual basis, but they will remain high. Fed officials, who are watching ahead of the end-of-month meeting, will take note of signs of a slowing economy and moderate inflation. Other reports are expected to show a decline in new home sales and core capital goods.


Looking north, the Bank of Canada appears to have put a cap on one of the most aggressive tightening campaigns in its history, with what economists and markets expect to be a final 25 basis point increase in borrowing costs on Wednesday.


Policy makers led by Governor Tiff Macklem will likely refrain from announcing a complete halt to hikes, opting instead to keep the benchmark rate at 4.5% while maintaining a hawkish tone while watching how quickly the economy declines.


The decision is complicated by conflicting data. Canada's ultra-tight labor market continues to add jobs with unemployment near a record low, and economic output is set to expand in the fourth quarter of 2022 at twice the pace of the central bank's previous forecast.


Annual inflation remains uncomfortably high at 6.3%, but the underlying pressures are showing clear signs of abating. Meanwhile, heavily indebted Canadian households are feeling the crunch of higher rates and are starting to cut back on their spending.


Asia

Australia and New Zealand reported their latest inflation figures in the middle of the week, as the RBA contemplates halting its tightening cycle and the RBNZ contemplates its next move after a big rally in November.


In South Korea, Thursday's GDP results may show the economy contracting, a result that could reinforce caution in the central bank.


In Japan, Friday's Tokyo CPI data should indicate whether inflation is closer to peaking in the world's third-largest economy.


Two closely watched South Asian economies, Pakistan and Sri Lanka, will decide key interest rates, along with Thailand.


In turn, the Philippines reported the performance of its economy in 2022, which President Ferdinand Marcos Jr. estimated would grow at 7%.


The Thai Ministry of Finance will provide its latest economic estimate later next week. China will be closed all week due to the Lunar New Year holiday.


Europe and Africa

The last window for ECB officials to communicate ahead of the February 2 interest rate decision will close on Thursday. At the same time, Eurozone data may give more indications of the health of the economy.


Officials are scheduled to appear several times before then, including Bank President Christine Lagarde, who pledged to the Davos audience that she would "stay the course" on monetary policy.


In Germany, where Chancellor Olaf Scholz is now convinced a recession will be avoided, Wednesday's Ifo Business Confidence report is expected to show improvement across all measures. Meanwhile, the first estimate of Spain's GDP for the fourth quarter may reveal a slight expansion.


The UK faces a few quieter days than it has lately, with no monetary policy speakers from the Bank of England and the PMI survey and fiscal data among the only items expected.


And in Hungary, the central bank will set the base interest rate at a monthly meeting on Tuesday, as investors eye a possible pivot towards monetary easing at the depository tender two days later. To the east, Ukrainian officials are expected to keep their benchmark unchanged at 25%.


Regarding Africa, the Central Bank of Nigeria is expected to slow its monetary tightening on Tuesday, with an increase of 50 basis points. Inflation slowed unexpectedly in December, but remained well above the policy target, deterring saving.


On Wednesday, Mozambique's policymakers are likely to leave official borrowing costs unchanged for the second consecutive meeting as inflation expectations slow.


Having prepared early for its battle against the worst global inflation shock in a generation, the Reserve Bank of South Africa is also likely to slow its rate hike on Thursday. Investors expect a more than 80% chance of a rate hike of 25 basis points.


Latin America

On Tuesday, consumer price reports are likely to confirm the formidable challenge facing policymakers in the region's two largest economies.


On an annual basis, Brazil may record a gradual move down from the level of 5.9%, while the main and fundamental results in Mexico as a whole remain unchanged from their latest readings at 7.86% and 8.34%, respectively.


In Argentina, GDP data could be disappointing for a third month, with an overvalued peso and near triple-digit inflation threatening deflation in the fourth quarter.


All certainty, the Central Bank of Chile will keep its benchmark rate at a two-decade high of 11.25% for the second consecutive meeting on Thursday. Inflation that has reached 4 times the target as the economy slips into recession puts Central Bank President Rosana Costa in an awkward position.


Observers in Colombia largely expect the central bank to extend a record cycle of interest increases, with 12 consecutive rate hikes to 13%, in the face of the sharpest wave of inflation in a generation.


Surprisingly, Finance Minister Jose Antonio Ocampo, who is a voting member of the bank's board of directors, said on Tuesday that "the bank does not need to raise again and inflation has peaked, both of which contradict the bank's own polls of analysts."


Wednesday, December 14, 2022

China: Our investments and aid to Africa are not a trap, but a benefit

    Wednesday, December 14, 2022   No comments

Chinese Ambassador to the United States, Chen Gang, has criticized allegations that China is creating a "debt trap" in Africa.

 "The continent should be a place for international cooperation, rather than an arena in which major powers compete for geopolitical gains," Gang said, on the sidelines of the US-Africa leaders' summit in Washington, which brings together leaders of 49 African countries and the African Union.

 The Chinese ambassador added, "Chinese investments and financial aid to Africa are not a trap, but rather a benefit."

 "Over the past decades, China has provided loans to help Africa's economic and social development," Gang said. "You can see hospitals, highways, airports, stadiums. It's clear, it's not a trap, it's not a conspiracy, it's transparent and honest."

 

The Chinese ambassador to the United States referred to a study published last July by the British charitable foundation "Deep Justice", which showed that the volume of African countries' debts to Western private lenders represents 3 times the size of their debts to China, pointing out that the interest rate on Private loans are twice the rate of Chinese loans.

 

"These results prove that China is not the largest creditor in African loans, and that Chinese loans are only a small part," he stressed.

 

And yesterday, a spokesman for the US Department of Defense (Pentagon), Patrick Ryder, warned, that the development of the relationship between African countries and China will have negative repercussions on the relationship of these countries with the United States.

"We will be keen to issue statements for the ongoing discussions, and we continue to consult with our African partners, as any engagement in certain activities with the People's Republic of China may have some negative repercussions on their relations with us," Ryder said.

 

Earlier, US Deputy Commerce Secretary Don Graves acknowledged that the United States had fallen behind after China overtook US foreign investment in Africa.

 

And before the start of the summit of the leaders of the United States and Africa yesterday, the White House announced President Joe Biden's support for the African Union to become a permanent member of the Group of Twenty.

 

It is noteworthy that the US National Security Adviser, Jake Sullivan, said earlier that the United States will pledge, during the US-Africa summit, to support Africa with an amount of $ 55 billion over the next three years.

 

It is worth noting that the volume of trade between China and Africa exceeded $254 billion in 2021, compared to $64.33 billion between the United States and Africa.

To contextualize Western  aid to African country, the $55 billion pledged by the US to Africa’s 50+ countries over three years is less than the amount actually given to Ukraine by the US in just one year. In this context, the West should be encouraging other countries to invest more in Africa not ask African countries to reject Chinese investment.

 

 

Thursday, November 03, 2022

The U.N. General Assembly voted overwhelmingly, 185 to 2, Thursday to condemn the American economic embargo of Cuba

    Thursday, November 03, 2022   No comments

The U.N. General Assembly voted overwhelmingly Thursday to condemn the American economic embargo of Cuba for the 30th year, with the Biden administration continuing former President Donald Trump’s opposition and refusing to return to the Obama administration’s 2016 abstention.

For the second year in a row, the vote in the 193-member General Assembly overwhelming--185 countries supporting the condemnation, the United States and Israel opposing it, and Brazil and Ukraine abstaining.

Cuban Foreign Minister Bruno Rodriguez said before the vote that since 2019, the U.S. government “has escalated the siege around our country, taking it to an even crueler and more humane dimension, with the purpose of deliberately inflicting the biggest possible damage on Cuban families.” 

US disregard to the will of the global community was mirrored by the absence, bias, or blunt Western press coverage of the event. 

Here is a sample, for reference purposes.





Vote from previous years:




 

Thursday, October 06, 2022

“OPEC +” agrees to reduce oil production by an average of two million barrels per day

    Thursday, October 06, 2022   No comments

 Reuters quoted sources in Vienna as confirming that the "OPEC +" group agreed today to reduce oil production by two million barrels per day.


The Joint Ministerial Monitoring Committee of the Global Oil Exporters Alliance "OPEC +", which includes ministers of prominent producing countries, agreed to reduce crude production by two million barrels per day in response to the decline in prices.


This came according to what was quoted by "Reuters" agency, quoting 3 sources familiar with the events, and as expected by media reports earlier, and in a move believed to destroy the efforts of the United States to increase supplies and reduce prices.

A disaster for the United States and will cause crises

On Tuesday, CNN reported, quoting a White House document, that "the United States is concerned that a possible decision by "OPEC" to reduce oil production may cause major crises for the country, and can be considered a hostile act."



And a report by the American network stated that the White House “warns that the “OPEC +” meeting may cause great damage to the United States, and that the decision to reduce oil production will be a “complete disaster” for the country.


The United States, in an attempt to persuade its OPEC allies, is proposing to buy back up to 200 million barrels of oil from its OPEC partners, which will be used to refill the US Strategic Petroleum Reserve, which President Joe Biden uses to help lower oil prices.


This is while another US official stated, according to "CNN", that the White House "is in a state of panic and panic."


"We have made clear that energy supplies must meet demand to support economic growth and lower prices for consumers around the world, and we will continue to talk to our partners about that," National Security Council spokeswoman Adrian Watson said in a statement.


A few days ago, the Wall Street Journal reported, quoting participants in the upcoming “OPEC +” meeting, that the coalition countries were “considering reducing oil production by more than one million barrels per day.”


Action to Prevent fluctuations


Saudi Arabia and other members of OPEC Plus, which includes OPEC countries and non-OPEC producers including Russia, say they are seeking to prevent volatility and not target a specific oil price.


Brent crude, the global benchmark, rose today, Wednesday, towards $93 a barrel, after rising yesterday.


The West accuses Russia of using energy as a weapon, and of creating a crisis in Europe that may force it to ration gas and electricity this winter.


In contrast, Moscow accuses the West of using the dollar and financial systems - such as Swift - as a weapon in response to Russia sending troops to Ukraine last February.

Reactions

US President Joe Biden expressed his disappointment over the decision of the OPEC Plus alliance to reduce oil production, and stressed that his administration would seek to reduce the alliance's control over energy prices, according to a statement issued by the White House.

The statement described the OPEC Plus decision as "short-sighted", and said that the decision - which is the largest reduction in oil production since the Covid-19 pandemic - will harm countries that are "already reeling" under the weight of high oil prices in light of a global economy that in turn suffers from the "negative impact". Russia's attack on Ukraine, according to the statement.

The White House considered that the "wrong" decision was in Russia's own interest, and said, "It is clear that OPEC Plus is allied with Russia."

He added that "in light of today's decision, the Biden administration will consult with Congress on additional tools and mechanisms to reduce the control of the coalition of oil-producing countries on energy prices."

On the other hand, Russian Deputy Prime Minister Alexander Novak described the decision taken by the OPEC Plus alliance during its meeting in Vienna today, Wednesday, as "unprecedented", and attributed it to the need to achieve balance in the oil market.

Novak warned - in statements he made to state television - that the trend to impose a ceiling on the price of Russian oil - a step proposed by the European Union as part of new planned sanctions on Moscow - will have a detrimental effect on global markets.

Novak stressed that Russian companies will not send oil supplies to countries that adopt this ceiling.

On Thursday, the US administration seem to escalate its reaction to this event. The White House hinted that it would “re-evaluate the issue of Saudi Arabia’s trade preference with regard to arms sales and defense support,” following the decision of the “OPEC +” group to reduce the collective production limit.

The President of the US National Economic Council, Brian Dees, indicated today, Thursday, that "the administration of President Joe Biden is in the process of consulting with Congress on the issue of Saudi Arabia's commercial preference for arms sales and defense support."
In response to a question about whether Saudi Arabia deserves to obtain weapons and US defense support in light of the decision of the “OPEC +” group, Deiss said: “We will conduct an assessment and consult closely with Congress on a number of issues related to this matter.”
The member countries of the “OPEC +” alliance agreed, yesterday, Wednesday, to reduce the collective production limit by two million barrels per day, in what is considered the largest supply curb since the 2020 agreement, in the midst of the historic price collapse due to the Corona pandemic.
Following the producers' decision, US President Joe Biden expressed his disappointment with the "OPEC +" agreement, stressing the importance of global energy supplies in light of the war in Ukraine.
White House spokeswoman Karen Jean-Pierre said that the “OPEC +” decision to reduce oil production, which is likely to raise prices in Western countries, “shows that the alliance is biased towards Russia.”
And the American network “CNN” reported, earlier, quoting a document of the White House, that “the United States is concerned that a possible decision by “OPEC” to reduce oil production may cause major crises for the country, and it can be considered a “hostile act.”
And a report by the American network stated that the White House “warns that the “OPEC +” meeting may cause great damage to the United States, and that the decision to reduce oil production will be a “complete disaster” for the country.
Read also: The “OPEC +” decision to reduce production .. its political and economic impact on the Biden administration
In turn, the Saudi Energy Minister, Abdulaziz bin Salman, confirmed that the decision of the “OPEC +” group to reduce oil production by two million barrels per day “is not an aggressive move and does not aim to harm anyone.”
As for Russian Deputy Prime Minister Alexander Novak, he announced that the decision of the “OPEC +” alliance to reduce oil production “is an unprecedented decision,” noting that the reason for taking such a decision “is the need to balance the market before winter.”

Monday, September 19, 2022

Media Review: India's economy has surpassed that of the United Kingdom in terms of size, making it the fifth largest in the world

    Monday, September 19, 2022   No comments

India succeeded this year by taking advantage of the events surrounding it and getting as far as possible from the war in Ukraine and the sanctions imposed by European countries on Russia, so that its economy exceeded the United Kingdom and made it the fifth largest economy, knowing that this transgression is not the first time, as India, the former British colony, has already emerged as the fifth The strongest economy in the world, surpassing Britain and France in 2019, according to a report by the World Population Review Center, based in the British capital, London.

Weeks ago, the International Monetary Fund revealed in its latest figures that just a decade ago, India's GDP was the eleventh in the world, but with 7% growth expected for 2022, India's economy has surpassed that of the United Kingdom in terms of size .


According to the International Monetary Fund, the growth of the Indian economy was accompanied by a period of rapid inflation in the United Kingdom, which led to a cost-of-living crisis and the risk of a recession, according to what the Bank of England predicted.


The IMF also explained that this situation, along with a turbulent political period and Brexit, led to Indian production exceeding the United Kingdom in the last quarter of 2021, with the first of 2022 offering no change in the arrangement.


Looking ahead, the International Monetary Fund expects India to overtake the UK more until 2027, making India the fourth largest economy by then, and leaving the UK in sixth place.


On an adjusted basis, using the dollar exchange rate on the last day of the first quarter, India's economy in "nominal" monetary terms in the quarter ending March was $854.7 billion. On the same basis, the UK economy was at $816 billion.

Reasons for the growth of the Indian economy

And the newspaper "The Guardian" revealed that one of the main reasons for the rise of India's economy is its ability to develop its manufacturing sector.


The newspaper considered that India has already benefited from a large educated middle class, which contributed to the development of the information technology and pharmaceutical sectors on a global level.


It also has strong consumer demand, which accounts for about 55 percent of the economy, compared to less than 40 percent in China, according to the newspaper.


Indian President Modi's market reforms, which included lowering the corporate tax from 35% to 25%, and opening India to more foreign investment, have also contributed to the liberalization of entrepreneurs.


The same context was reported by the American newspaper "The New York Times", which attributed this growth to a set of government policies, including increased public investment, forgiveness for debtors, credit guarantees that helped keep inflation relatively under control, and time the public from economic shocks.


Good relations with Moscow and Brussels in the service of the economy

In the same article, The New York Times noted that India's purchase of discounted oil from Russia, contrary to the wishes of Western allies, helped prevent the country's energy prices from rising.


India's neutral stance on the war in Ukraine has also allowed the volume of trade between India and Russia to rise by nearly 120% this year, according to Russian Presidential Aide Yuri Ushakov.


Indian Ambassador in Moscow Pavan Kapoor also noted that the volume of trade between Russia and India has been growing in size and scope in recent months. He added that companies in both countries are working to overcome obstacles to closer cooperation posed by sanctions.


India has moved towards enhancing exchange with partner countries using local currencies, which will strengthen its currency, and is currently working with Moscow on taking bilateral measures to expand the use of national currencies in mutual settlements.


Likewise, India has boosted its purchases of Russian crude over the past six months, while the United States has repeatedly urged New Delhi to support setting a price ceiling for Russian oil, which the latter has not agreed to.


Data in July showed that India's imports of crude oil from Russia jumped to a record level of about 950,000 barrels per day in June, which constitutes about 20% of the total imports of the third largest consumer of crude in the world.


On the other hand, India decided, in June, to resume negotiations with the European Union after a 9-year hiatus, with the aim of concluding a free trade agreement at the end of 2023.


The European Union is India's third largest trading partner, and the value of exchanges between them amounted to about 120 billion euros in 2021.


Britain retreat

The decline in Britain's global ranking, according to the "Bloomberg" website, is an uncomfortable development for Prime Minister Liz Truss, whose country is facing the highest inflation rate in four decades, with the risks of economic recession rising.


The latest official data showed that the British economy grew less than expected in July, raising the risk that the country may have already entered a recession, with demand for electricity falling due to a sharp rise in energy fees, and the construction sector affected by a jump in the cost of raw materials.


Warnings of recession, inflation and economic problems in Britain continue daily, and recently, for example, British government experts warned that the country would plunge into a deeper energy crisis, within a year, without an immediate plan to improve homes and dramatically reduce demand for gas.


Thursday, September 15, 2022

Chechen troops arrive in Zaporozhye region

    Thursday, September 15, 2022   No comments

Around the same time Chechen elite troops landed in the Zaporozhye region to help Russian forces regain control in the south, Russian Federation Deputy Minister of Defense of the Russian Federation, Timur Ivanov, arrived in the ChechenRepublic on a working visit to promote and report on development and construction projects in the Muslim Republic.

The investments in the Chechen Republic is paying off. Chechen fighters were urgently dispatched after a series of setbacks for Russian forces in the east and south of Ukraine. The detachment of fighters is under the command of the OMON "Akhmat-Grozny" of the Office of the Russian Guard in the Chechen Republic, Anzor Bisaev. The unit is tasked with stopping and clearing Ukrainian troops trying to advance southward.








What is the Shanghai Organization and what are its goals?

    Thursday, September 15, 2022   No comments

Two major events are happening this week: a summit meeting bringing the leaders of the nation-states that are members (or possibly future members) of the Shanghai Cooperation Organization (SCO); and the signing of the final document making Iran full member of this intergovernmental organization (IGO). Iran will add about 90 million people to this bloc of countries, bringing the percentage of the world population represented in this IGO to more than half the world's population.

The activities of the Shanghai Cooperation Summit began in the Uzbek city of Samarkand, with the participation of leaders of member states, led by Chinese President Xi Jinping and Russian President Vladimir Putin.

On Thursday, the Chinese and Russian presidents will meet bilaterally at a regional summit, which looks like a front against the West, at the height of severe tension exacerbated by the war in Ukraine.

In Samarkand - a key stop on the ancient Silk Road - Xi and Putin will be joined by leaders of India, Pakistan, Turkey, Iran and other countries for the two-day Shanghai Cooperation Organization summit, which is the first in-person summit of the SCO leaders since 2019.

Russia’s leader, Putin, has played a major role in this organization; the reasons are explained in this in-depth analysis.

This review note explains both events, starting with an overview of the organization.


What is the Shanghai Cooperation Organization?

The Shanghai Cooperation Organization (SCO) is a Eurasian international organization, founded in the form of a political, economic and military alliance, in the Chinese city of Shanghai, on June 15, 2001, by 6 countries initially, namely: China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. These countries, with the exception of Uzbekistan, were members of the "Shanghai Five-Year Group" established on April 26, 1996 in Shanghai.

 

Subsequently, India and Pakistan joined the organization as full members, on June 9, 2017, at the Astana Summit. During the organization's summit held in Dushanbe, Tajikistan, on September 17, 2021, the members agreed to change Iran's status in the organization from an observer member to a full member.

 

The organization also includes non-member observer countries, including: Belarus, Afghanistan, Mongolia, Nepal, Cambodia, Armenia and Sri Lanka. It comes after the member states of the "dialogue partnership", including Turkey, which became a member since 2012, and recently Egypt and Qatar joined as well. There are many countries interested in establishing relations with the organization, such as: Saudi Arabia, Bahrain, UAE, Iraq and Syria, All of them seek to join the "dialogue partnership".

 

The vast area that includes the member states of the Shanghai Organization extends from north to south; From the Arctic to the Indian Ocean, from east to west; From Lianyungang in China to Kaliningrad in the Russian Federation, in addition to Iran, the 5 countries with nuclear capabilities will be united into one regional organization.

 

Members of the Shanghai Cooperation Organization make up nearly half of the world's population and nearly 5/3 of the Eurasian land mass, making it the world's largest regional political alliance. The Shanghai Organization in the West is often called the "Eastern Alliance".

 

Shanghai and enhance mutual trust policies


During the Saint Petersburg Summit in 2002, the organization signed its charter, which explains its objectives, principles, structures and modes of action, for recognition in international law. In September 2003, the charter of the organization entered into force.

 

According to the charter of the Shanghai Cooperation Organization, summits of the Council of Heads of State are held annually in designated places, alternately, in alphabetical order of the name of the member state in Russian. The Charter also stipulates that the members of the Council of Heads of Government (ie, Prime Ministers) meet annually at a place decided by the members of the Council.

 

The objectives of the organization revolve around promoting policies of mutual trust and good-neighbourliness among member states, combating terrorism and strengthening security, combating crime and drug trafficking, and confronting separatist movements and religious or ethnic extremism.

 

Shanghai .. and regional security

Since its establishment in 2001, the organization has mainly focused its efforts on issues of regional security and combating terrorism, national separatist movements and religious extremism. Regional development has also become among its priorities.

 

The organization intends to further develop its permanent body, the Regional Anti-Terrorism Structure (RATS). Between 2011 and 2015, under the coordination of the Regional Counter-Terrorism Structure, the authorities in the member states of the organization were able to prevent 20 terrorist attacks from taking place. It was still in the planning stages, avoiding 650 crimes of a terrorist and extremist nature, removing 440 terrorist training camps and neutralizing 1,700 member organizations of the international terrorist, according to the Secretary-General of the Shanghai Cooperation Organization Rashid Alimov.

 

The organization arrested more than 2,700 members of proscribed armed groups and their associates, and persons suspected of criminal activities, while 213 persons linked to terrorist or extremist organizations were handed over, with many of them sentenced to long prison terms. 180 suspects were placed on wanted lists, 600 secret bases equipped with weapons were discovered, and more than 3,250 indiscriminate explosive devices were confiscated, in addition to 10,000 weapons, about 450,000 pieces of ammunition, and more than 52 tons of explosives, according to Alimov.

 

The organization has enjoyed observer status in the United Nations General Assembly since 2005. In April 2010, the secretariats of the United Nations and the Shanghai Cooperation Organization signed a joint declaration on cooperation.

 

The Organization's General Secretariat has also established partnerships with the United Nations Educational, Scientific and Cultural Organization (UNESCO), the World Tourism Organization and the International Organization for Migration, in addition to its ongoing cooperation with the United Nations Office on Drugs and Crime, the United Nations Economic and Social Commission for Asia and the Pacific and the United Nations Office of Counter-Terrorism .

 

In the context of special anti-drug operations conducted within the territories of the Shanghai Cooperation Organization over many years, the organization seized about 69 tons of lethal heroin from traffickers, and this figure constitutes about 14% of the drugs seized worldwide.

 

The UN Department of Political and Peacebuilding Affairs, as well as the UN Center for Preventive Diplomacy for Central Asia, maintain regular contacts with Shanghai Cooperation Organization officials.

 

Military and counter-terrorism activities

The peoples of this organization constitute about half of humanity, which makes it a huge fundamental entity that cannot be underestimated politically, economically or militarily in the global system, and over the past few years the activities of the organization have expanded to include increasing military cooperation, exchanging intelligence information and combating terrorism.

 

The organization says that it "conducts military exercises regularly among members to enhance cooperation and coordination against terrorism and other external threats, and to maintain regional peace and stability."

 

There have been a number of SCO joint military exercises. The first was held in 2003, with the first phase taking place in Kazakhstan and the second in China. Since then, China and Russia have cooperated in large-scale war games in 2005, 2007 and 2009, sponsored by the Shanghai Cooperation Organization.

 

More than 4,000 soldiers participated in the 2007 joint military exercise, known as the "Peace Mission", which took place in Chelyabinsk, Russia, near the Ural Mountains. After the successful completion of these war games, Russian officials started talking about India joining such exercises in the future.

 

The organization conducted maneuvers under the name "Peace Mission 2021", with the participation of Russia, China, India, Kazakhstan, Tajikistan, Uzbekistan, Kyrgyzstan and Pakistan, in addition to Belarus, which participated for the first time in these maneuvers aimed at "fighting terrorism", which lasted for 4 days.

 

Some Western observers described the organization as the "NATO of the East", and classified it as an emerging military bloc to be wary of, and as the largest anti-American bloc in the region.

 

Regional Economic Development

The organization sought to help develop regional economies, create favorable conditions for trade and support investment initiatives from Eastern Europe to the Russian east coast and China, as well as build an integrated road transport system.

 

The size of the economies of the member states of the organization, in the year 2020, amounted to about 18.4 trillion dollars, while the intra-OIC trade jumped to 6.2 trillion dollars during the same period.

 

Since the establishment of the organization nearly 21 years ago, China has proposed a long-term goal of establishing a free trade area among member states, in addition to taking other immediate measures to improve the flow of goods in the region.

 

The organization established its own Business Council, on June 14, 2006, with the aim of expanding economic cooperation among member states, establishing direct relationships between financial communities, and facilitating the practical promotion of multilateral economic projects.

 

In the same year, the organization also established what is known as the “Confederation of Interbank Banks” (SCO IBC) with the aim of providing financing and banking services for investment projects sponsored by the governments of the member states of the organization, as the SCO IBC meets in particular based on the consensus of all parties once At least every year.

 

Priority areas of cooperation within the SCO include: providing financing for projects focused on infrastructure, basic industries, high-tech industries, export-oriented sectors and social enterprises, issuing and providing loans based on generally accepted international banking practices, and organizing pre-export financing to stimulate trade and economic cooperation between Shanghai Cooperation Organization member states, and other areas of common interest.

 

The countries of this organization are seeking to integrate among themselves at the economic level, in order to break the US-imposed embargo, especially Iran, Russia and China, to attract Asian investments and supply energy products.

 

The Shanghai Organization, in all its countries, has great potential on the geopolitical level, in the field of oil, gas, electric power, and many others. Any new country obtaining membership in the organization will lead to the economic integration that the organization aims to, and this matter will certainly strengthen the position of the East vis-à-vis the Western countries that adopt a unipolar policy.

 

Iran is a full member of the "Shanghai Organization" .. Timing and economic importance


Meeting with Iran’s president, Putin reminded the Iranian leader of Russia’s role in the process and stated that now Russia will take its relations with Iran to the next level:

“Russia has done everything for Iran to become a full-fledged member  of Shanghai Cooperation Organization, Russian delegation with representatives of 80 large Russian companies will travel to Iran next week.”

Iran's acceptance as a full member of the Shanghai Cooperation Organization at this time is not without connotations, as it coincides with changes inside and outside Iran. Changes appear in its favor, especially in terms of getting it out of the US economic embargo, which officially began with its signing of the strategic partnership agreement with China.

In another expansionary step with great significance at various levels, the organization announced at its meeting today, through the words of Chinese President Xi Jinping, its agreement to grant Iran full membership in it, after it had been an observer member in it for years. The Chinese president said, “Iran will be considered a full member.” in the Shanghai Organization at today's meeting."

Significance of membership timing

The granting of Iran full membership in the Shanghai Organization at this time seems remarkable, as it was followed by:

 

1- The China-Iran strategic agreement, which was signed in Tehran on March 27, after a regional tour by Chinese Foreign Minister Wang Yi that included the Gulf states and Turkey.

 

The "Strategic Partnership Document", as it was called, is a 25-year agreement between the two countries, covering the political, economic, military and industrial fields.

 

This agreement serves both countries, as it guarantees the global economic giant a further growth in its role and consolidation of its presence on the international scene, especially in the countries that the United States has placed on the list of “forbidden areas” imposed by its harsh economic sanctions.

 

It also guarantees Iran an open outlet through which it is liberated from these sanctions, disposes of its oil production that America does not buy, and prevents other countries from buying it by imposing sanctions on them, in an attempt to put economic pressure on Iran to change its political positions, and Iran imports In return for its exported oil, it needs industrial equipment, machinery and expertise, and it is preparing its ports and infrastructure with Chinese assistance, allowing the latter to use these facilities to export its products through land and sea towards the eastern shores of the Mediterranean, then to the European continents in the north and Africa in the south.

 

2- The complete and urgent US military withdrawal from Afghanistan, the country that has been occupied by the United States and its NATO allies for 20 years, located within the borders of the Eurasian region, and implanted between the two major countries in the world, China and Russia, as the United States sought to prevent their convergence and impede their growth economy, especially China, by cutting off its land and sea exports to the West, and threatening its security by igniting wars and security disturbances.

 

Here, it is worth noting that it is not a coincidence or a detail that the organization was formed only about 4 months before the anniversary of the American invasion of Afghanistan, and against the drums of this war that the United States and Britain had waged after the September 11 attacks that toppled the World Trade Center in New York. It also targeted the US Department of Defense (Pentagon).

 

The American role obstructing the work of the Shanghai Organization and the growth of China’s economic standing was demonstrated by the hastening of the leaders of the “Taliban” movement, which quickly and gradually seized all the Afghan regions in conjunction with the departure of the occupying forces, to visit China and meet officials in its Ministry of Foreign Affairs, and their emphasis on the pivotal Chinese role in Reconstruct the country exhausted by occupation and conflicts, and reassure them that they will not use Afghan lands to target the security of other countries.

 

3- The election of a new president of Iran last June, the head of the judiciary and the strongman, Ibrahim Raisi, by a large margin of votes over his closest remaining rival, after the withdrawal of the most famous names nominated in his favor, as former chief nuclear negotiator Saeed Jalili.

 

Since the beginning of his term, Raisi has sought to enhance his country's presence and position in the world, by strengthening its relations at the regional level, and benefiting from all its capabilities, foremost of which is its geographical location. He reached Eurasia through a corridor linking the north with the south.

 

Before heading to Tajikistan, Raisi said that his country's participation in the summit "will focus on our economic and cultural relations with Asian countries," and stressed that "cooperation with neighboring countries and the region is a top priority for Iran's foreign policy."

 

Last August, Raisi declared that strengthening Iran's relations with Russia and China, the two main members of the organization, was a priority of his foreign policy.

 

Opening economic fields to Iran and liberating it from the American blockade

Among the three previous points, the strategic agreement between Iran and China, which represents the most prominent pillar of the organization, is the most important thing that contributed to Iran's accession to it, so that it appears that what happened is nothing but an expansion of the official international recognition of Iran's regional role and presence, and a greater contribution to its removal. Under the American economic blockade, and in opening the fields to it by both China and Russia, whose President Vladimir Putin stated during his speech at the summit, that his country “supports the decision submitted for approval by the Council of Heads of State of the Shanghai Cooperation Organization regarding the start of procedures for Iran’s admission to the organization , stressing the mutual importance of its accession by saying that this would "increase the international authority of the organization."

 

In the first Iranian comment, the spokesman for the Presidency of the Iranian Parliament, Nizamuddin Mousavi, considered, in an interview with ISNA, that what we are witnessing is "the establishment of a new world order where the Quartet of Power in the East (Russia, China, India, Iran) is considered one of the most important international players in this new world order," he added, adding that "Iran's accession to this organization, despite Washington's opposition, proves that the era of unilateral policies is over and we are witnessing the establishment of a new world order."

 

In economic terms, Mousavi said that his country's accession "means reaching a market of 3 billion people, and this is a great opportunity that we must have a roadmap to exploit in the best way."

 

This accession was preceded by the nuclear negotiations between Iran and the P5+1 countries, rounds of which were conducted in the Austrian capital Vienna in the last months of the term of former President Hassan Rouhani, with talk of preparing for other rounds after the formation of the first Iranian government under President Ibrahim Raisi. Without neglecting the positive visit of the head of the International Atomic Energy Agency, Rafael Grossi, to Tehran, and his meeting with the head of the Atomic Energy Organization of Iran, Mohammad Eslami.

 

All of the foregoing contributes to comforting Iran with the beginning of the era of President Ibrahim Raisi, and makes it approach an international position that it seeks to reach despite the obstacles of its enemies to this, which will also put it in front of major challenges in order to hold on to these gains and take advantage of the new opportunities available.

 

___________________________________________________

This weekly events review included research notes and analysis from Reda Zeidan.


Thursday, September 08, 2022

From the Croatian capital, Turkish President Recep Tayyip Erdogan: Ukrainian grain is exported to rich countries but not poor ones

    Thursday, September 08, 2022   No comments

Turkish President Recep Tayyip Erdogan said that his country wants to start exporting grain from Russia as well, similar to the export of Ukrainian grain.

Speaking at a press conference with his Croatian counterpart, Zoran Milanovic, in the capital Zagreb, which he is visiting as part of a tour of the Balkans, Erdogan added, "Grains are exported to rich countries, but not poor ones. Unfortunately, Ukrainian grain is exported to rich countries but not poor ones."


Erdogan recalled the words of Russian President Vladimir Putin and his annoyance over the export of Ukrainian grain to countries that impose sanctions on Russia.


He continued, "There is a delay in the start of grain exports from Russia, and I will discuss this issue in detail during my meeting with President Putin next week, and all we hope for is that the grain reaches poor countries."


And he added: "Most of all this is the issue of energy. Energy prices are rising. Now Europe is confused about how to face the next winter, and I hope this crisis ends well."


The Turkish President and his Croatian counterpart chaired the meeting of the two countries' delegations, after the end of their bilateral meeting at the Croatian Presidential Palace in the capital Zagreb.


On Wednesday, Putin stressed that "the West was not fair enough regarding the grain shipment deal from Ukraine, because most of the grain shipments did not go to the poorest developing countries, but to Europe."


Earlier, Russia's permanent representative to the United Nations, Vasily Nebenzia, said that "Ukrainian grain ships are heading to places other than those they were intended to go to."


Last July 22, a Russian-Ukrainian memorandum of understanding was signed in Istanbul, under the auspices of the United Nations Secretariat, on facilitating the movement of Russian food products and fertilizers on world markets.


In another context, the Turkish president announced that the volume of trade exchange between Turkey and Croatia amounted to $900 million last year.



Sunday, August 28, 2022

Algerian President Abdelmadjid Tebboune meeting with his French counterpart, Emmanuel Macron

    Sunday, August 28, 2022   No comments

 

Algerian President Abdelmadjid Tebboune announced that he had agreed with his French counterpart, Emmanuel Macron, to "establish a full partnership between their two countries in the light of mutual respect."


During a joint press conference with Macron, who arrived in Algeria today for a 3-day official visit, Tebboune said: "I agreed with Macron to establish a full partnership in light of the principles of respect and a balance of trust between the two countries... We aspire to enhance trade exchange between Algeria and France."


"I discussed with Macron the situation in Libya, Mali, the Sahel and Western Sahara," he added.


For his part, Macron told his Algerian counterpart: "We have a common, complex and painful past, which contributed somewhat to not looking at the future... We have to look at this past with the will of truth... Let's open the archives from the beginning of the (French) occupation to independence without taboos... And this in order to build the future.


The French president considered that "we did not choose the past, but rather we inherited it, and we have the responsibility to build the future for ourselves and for future generations."


French President Macron arrived in Algeria today, Thursday, "hoping to build trade relations and turn the page on a diplomatic dispute," and was received by Algerian President Abdelmadjid Tebboune.

Relations with Algeria became more important for France, because the Russian special military operation in Ukraine led to an increase in Europe's demand for North African gas, and because of the increased migration across the Mediterranean.

 It is noteworthy that Algeria canceled, today also, the entry visa of the chief rabbi of France, "Haim Corsia" because of his support for "Israel", according to what a reliable source told "Al-Mayadeen", who stressed that "Algeria will not be drawn towards normalization and rejects it in all its forms, and it is firm on the Supporting just causes, most notably Palestine and Western Sahara.


Last July, Tebboune sent a congratulatory message to his French counterpart Emmanuel Macron, on the occasion of his re-election for a second presidential term, in which he expressed his "satisfaction with the quality of our personal relationship characterized by trust and affection, and with the developments achieved, albeit relatively, by the Algerian-French partnership."


In it, Macron called for a visit to Algeria "soon, to launch together a dynamic that pushes forward in dealing with major issues, and to intensify and expand Algerian-French relations."

Last March, the Algerian president declared that the "crimes of French colonialism" in Algeria will not be subject to a statute of limitations, calling for a "fair treatment of the file of memory and history in an atmosphere of frankness and trust."


This came after relations between the two countries fell to their lowest level, when Macron said he doubted the existence of an "Algerian nation" before French colonialism.



Most popular articles


ISR +


Frequently Used Labels and Topics

A Week in Review Academic Integrity Adana Agreement afghanistan Africa al-Azhar Algeria All Apartheid apostasy Arab Spring Armenia Arts and Entertainment Asia Bangladesh BRICS Brotherhood CAF Canada Caspian Sea Chechnya China CIA Civil society colonialism communism Conflict Constitutionalism Contras Corruption Coups Crimea Crimes against humanity Democracy Despotism Diplomacy Dissent Dmitry Medvedev Economics and Finance Economy Education and Communication Egypt Elections energy environment Erdogan Europe Events FIFA FIFA World Cup FIFA World Cup Qatar 2020 Food Football France freedom of speech Gaza GCC GDP Genocide geopolitics Germany Global Security Globalism globalization Greece Grozny Conference Hamas Health hijab History and Civilizations Human Rights Huquq Ideas IGOs Immigration Imperialism Imperialismm india Indonesia Instrumentalized Human Rights Inter International Affairs International Law Iran IranDeal Iraq ISIL Islam in America Islam in China Islam in Europe Islam in Russia Islam Today Islamic economics Islamic law Islamic Societies Islamism Islamophobia Jordan Journalism Khamenei Kurdistan Law and Society Lebanon Libya Majoritarianism Malaysia mass killings Media Media Bias Middle East Military Affairs Morocco Muslim Ban Muslim Women and Leadership Muslims Muslims in Europe Muslims Today Nationalism NATO Nelson Mandela Nicaragua Nigeria North America North Korea Nuclear Deal Nusra OPEC+ Pakistan Palestine Poland Politics and Government Populism Poverty Propaganda Prophet Muhammad Protests Public Health Putin Qatar Quran Racism Raisi Regime Change religion and conflict Religion and Culture Religion and Politics religion and society Resistance Rohingya Genocide Russia Salafism Sanctions Saudi Arabia Science and Technology SCO Sectarianism security sharia Sharia-compliant financial products Shia Soccer socialism Southwest Asia and North Africa Space War Sports Sports and Politics Supremacy SWANA Syria terrorism Tourism transportation Tunisia Turkey Turkiye U.S. Foreign Policy UAE uk ukraine UN United States Uprisings US Foreign Policy USA Volga Bulgaria wahhabism War and Peace War Crimes West Western Civilization Western Sahara WMDs women rights World and Communities Yemen Zionism

Search for old news

Find Articles by year, month hierarchy

_______________________________________________

Copyright © Islamic Societies Review. All rights reserved.