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Morsi after Meeting with Putin; Committed to Peaceful Syria Solution, No to IMF-Loan

Christof Lehmann | nsnbc | April 21, 2013

At a Press Conference with his Russian counterpart Vladimir Putin, Egypt´s President Mohammed Morsi stated, that Egypt was committed to finding a peaceful and legal solution to the crisis in Syria. Today, the official Egyptian State Information Service states, that Egypt has said no to a loan from the International Monetary Fond, IMF, because the IMF´s conditions were unacceptable. Earlier this year, prior to a state visit in India, Morsi pronounced that Egypt has aspirations for joining the BRICS.

Since the discontinuation of the Soviet Union, the bilateral relations between Cairo and Moscow have slowly degraded. The main talking points on the agenda at the talks between Morsi and Putin were the revival of trade, commerce and economic cooperation between the two countries as well as the instability that has swept over Northern Africa and the Middle East since 2011.

Earlier this year, prior to a planned state visit to India, Morsi stated, that Egypt has aspirations of becoming a member of the BRICS, leading to speculations, whether Egypt is planning to assume a similar role as it had during the 1950s and 1960s, where the country walked a tightrope between alignment with Moscow and Washington. As a member of the non-aligned movement, Egypt may very well try to reassert its role as a regional power broker.

A closer alignment of Egypt with Moscow would make the country less dependent on US foreign policy and could, at least to a certain degree, counter the strong influence the USA is asserting over the Arab League through Qatar.

The little Gulf Kingdom has since 2007 grown into a veritable regional political superpower, which has stood and is standing behind many of the sweeping changes which have cast northern Africa and the Middle East into turmoil since 2011. Qatar and the USA are the primary powers behind the attempted subversion of Syria.

The question one may ask is, whether Morsi´s statement, that Egypt is committed to finding a peaceful and legal solution to the crisis in Syria is indicative of a more self-confident Egypt, and an Egyptian president who is aware of the fact that an alignment with the USA and Qatar, without playing the Moscow card, makes him as easily disposable as his predecessor Hosni Mubarak.

There are also other signs which indicate that Morsi may be trying to reassert Egypt´s role as regional power and greater independence from Washington. Morsi´s ambitions to have Egypt become the “E” in something that could become the BRICS+E was one indication. Prior to his visit to India, Morsi also stated, that Egypt is planning to increase its relations with eastern and Asian countries.

Today´s rejection of the IMF´s loan, following talks with the Russian President in Sochi, are lending additional credibility to those who are arguing for an Egyptian realignment to the middle, and the recent signals from the BRICS, that it will create a BRICS development bank, are indicative that Morsi may have substance behind the possible dream of a course change.

Asked about the reasons for turning down the IMF, Mosi said, “We seek to carry out clear changes in the government´s economic program to receive the loan and we are keen on the interests of the Egyptian citizens”. On of the greatest points of critique against Morsi, other than oppression of his political opponents were, that Morsi “already sold out Egypt and its people to the IMF and World Bank, before he even was elected”. With backup from Russia and the other BRICS members however, Morsi would be less dependent on Washington´s and the IMF´s economic dictates. With the World Bank and IMF systems, as some analysts have it, close to exploding into an international scandal which could spell the beginning of the end of the Bretton Woods gentleman´s agreement, Morsi may be making a very wise decision.

Morsi showed true statesmanship when he said, that he is “seeking real investments in Egypt” and that “loans don´t solve problems and are just temporary solutions”. During his interview with Al-Jazeera Morsi also reiterated the importance of maintaining the integrity of Egyptian territory, stating, that “Egypt´s lands are not for sale and are prohibited for non-Egyptians”.

While increased Egyptian self-confidence and increased assertiveness in the Arab League as well as Egypt´s possible influence for finding a political solution to the crisis in Syria may be plausible and welcome, he may still have to tackle internal problems. Consolidating the continuity and stability of the Egyptian government in times of sudden and comprehensive unrest and change may have made sweeping power grabs a tempting solution. As a long-term strategy however, a semi-dictatorial, Muslim Brotherhood influenced Egyptian government is as counter productive to the stability of Egypt´s society and government, as loans are counterproductive as a long-term strategy for economic growth.

During an interview with Al-Jazeera, Morsi also stressed that Egypt is maintaining good relations with Iran and that Egypt´s relations with Iran are not directed against anyone. Morsi reiterated, the importance of Iran´s role with regard to finding a peaceful resolution to the crisis in Syria.

The renewed ties between Cairo and Moscow may also indicate that Russia is planning to play a more active role throughout the Middle East, and that the Russian government is planning to reassert some of the influence Moscow has lost in the region during the last years of the Soviet era and the early 1990s.

A Russian fleet, composed of the anti-submarine destroyer Admiral Panteleyev and the two logistic warships Peresvet and Novelskoy, with a total number of 712 crew have entered the Iranian Army´s first naval zone in Bandar Abbas.

The three vessel´s visit is aiming at consolidating the relations between Iran and Russia and the expansion of interactions between the two countries in the field of naval security. The three Russian warships have left their home port Vladivostok for duty in the world oceans and are visiting Bandar Abbas en route to their operational destinations. The Russian Ministry of Defense has announced, that Russia has begun forming a separate Mediterranean squadron.

The visit of Egypt´s President Morsi to Sochi and the talks with Russian President Putin, Egypt´s interest in joining the BRICS, the rejection of the IMF loan, Morsi´s commitment to finding a peaceful solution to the crisis in Syria while stressing the importance of Iran´s role as part of the solution, and Russian commitment to a stronger naval presence in the Mediterranean indicate that Egypt could be playing a key role in limiting the current US Middle East and Northern Africa Pivot. The rejection of the IMF loan and indications to more commitment to democracy could indicate, that Russian influence also has inspired the Muslim Brotherhood led government to bring its own house in order while considering to assume a greater regional role.

April 21, 2013 - Posted by | Economics, Timeless or most popular | , , , , , ,

1 Comment

  1. Wow Egypt may try honest money for a change?

    The entire area is a powder keg and this may have some bearing on talks. The Russian Doomsday missile. Syria, Iran and China have it. It has EMP capability. That means no electricity, power plants melting down, car engines stalled.


    Comment by dublinmick | April 22, 2013

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