Aletho News

ΑΛΗΘΩΣ

Multinational investors and union rights: Strikes and sackings continue

By Jano Charbel – Al Akhbar – 10/09/2012

Business executives representing nearly 50 US companies are in Egypt this week, the latest of a series of international trade delegations to visit the country. Foreign investors are a vital part of the current administration’s economic strategy — the hope is that they will provide the jobs and capital to lift the country from its economic malaise.

But labor activists Egypt Independent spoke to have drawn attention to multinational corporations’ patchy records on union rights. Cadbury, Schlumberger, Pirelli, Henkel-Persil and Suzuki, among others, are accused of union busting and punitive sackings.

These violations are not out of step with the general trend in the private sector here, but they raise questions about the commitment of corporations headquartered in countries with nominal trade union freedoms to preserve those freedoms in their international operations. They also raise questions about the government’s willingness to turn a blind eye to workers’ rights, when investment is at stake.

Cadbury

The confectionery giant Cadbury, a subsidiary of the Kraft Foods conglomerate, has been reaping in hundreds of millions of pounds worth of profits since its establishment in the country in 1992.

Located in 10th of Ramadan City and in Hanovil, Alexandria, Cadbury Egypt employs more than 1,500 people. Despite resistance from the administrative board, Cadbury workers managed to establish their independent trade union on 28 April.

Led by their union, these workers launched a two-day strike on 27 July during which they demanded the 15 percent wage increase decreed for the public sector by President Mohamed Morsy on 1 July.

On 8 August, five of nine trade union leaders in the company were dismissed by Cadbury Egypt on charges of instigating unrest within the company.

Mohamed Hassan, president of the union in Alexandria, says that last year, the union was able to generate profits for the company amounting to LE267 million.

“Nevertheless, the administrative board sacked us for demanding our rightfully earned pay raises.”

He argued that the company’s managing director, Gawad Abaza, “doesn’t want a workers union in the company or anybody else to hold him accountable for our exploitation and the violation of our most basic labor rights.”

Depending on experience and seniority in the company, workers at Cadbury Egypt earn between LE1,500 — LE6,000 per month (US$250 — $1,000), well above the national average. Hassan claims that “administrative board members earn a monthly average of LE15,000 ($2,500), while Abaza earns a large percentage of the profits each month.”

Hassan says Cadbury Egypt’s board dismissed them without first resorting to negotiations with the Manpower Ministry, in violation of labor laws.

“We ourselves engaged in negotiations with the Manpower Ministry’s bureau in Alexandria for 21 days,” Hassan says. “We strive to take our case to the labor courts.”

Hassan pointed out that similar union-busting actions have recently been undertaken by Cadbury in Tunisia.

Late last month, the five unionists dismissed by Cadbury Egypt received letters of support and solidarity from the Swiss-based International Union of Food Workers. Similarly, Kraft workers from various other countries also sent letters of support, demanding their reinstatement.

Schlumberger

Established in France and headquartered in Texas, Schlumberger is the world’s largest oil field services company and employs some 115,000 people in 85 countries.

Schlumberger Egypt directly employs about 1,000 well-paid workers and professionals in 10 different sites across the country. Schlumberger Egypt’s profits in 2011 amounted to an estimated $30 million. On average, an Egyptian engineer might earn LE9,000 per month ($1,500) working at the company, while a manual worker at an oil rig might earn LE5,000 ($833) per month.

However, this company apparently does not respect the right to organize. Against the administration’s will, employees there established their first union committee in May 2011.

The administrative board responded by punitively sacking four workers from the company between June and July 2011, including three unionists and one union organizer.

Mohamed Abdel Rahman, secretary general of the Schlumberger Egypt Workers Union, says the company’s France branch sought to compensate them for their dismissals.

“Yet we don’t want monetary compensation,” he says. “We demand our jobs back and we demand the right to organize within the company.”

Abdel Rahman, one of the unionists who were sacked, says Schlumberger officials from France and the US visited Egypt last week to investigate the dispute.

He also says the unionists filed a complaint to the Manpower Ministry last year.

“Ministry officials told us that we did not violate any laws and that we were in the right,” Abdel Rahman says, adding that he and the other unionists who were fired had lodged a legal appeal before the Labor Court in September last year. Their next court hearing has been adjourned to 12 September.

Similarly to the Cadbury Egypt unionists who had been fired, those who had been fired from Schlumberger Egypt have received letters of solidarity from the International Federation of Chemical, Energy, Mine and General Workers Union and its affiliated unions in Canada and Norway.

The unions demanded that Schlumberger Egypt reinstate the four unionists and refrain from union busting.

Other multinationals

Headquartered in Dusseldorf, Germany, industrial giant Henkel-Persil — which produces detergents, cosmetic and beauty care products, and adhesive technologies — operates in 75 countries worldwide, with a labor force of some 47,000.

According to its website, Henkel employs 830 workers at its detergent production plants in Port Said. Media reports say Henkel Egypt generated profits of LE1.2 billion in 2011.

Workers at the company launched a strike on 28 August. Hundreds of workers demanded full-time contracts, increased wages, healthcare facilities and parity with Henkel workers in other countries, in terms of incomes, bonuses, profit sharing and paid holidays.

Like Henkel Egypt’s workers, Heinz Egypt’s 400 workers launched protests at their company in 6th of October City last month. Workers at this condiment company demanded an increase in their meager wages, full-time contracts for full-time work, periodic bonuses and profit-sharing payments, among other demands.

Suzuki Motor Corporation, managed by the Seoudi Group in Egypt, has also been involved in union busting. Workers at this company in 6th of October City established an independent union in June 2011, against the will of Seoudi Group.

According to a report issued by the Egyptian Center for Economic and Social Rights, five unionists and three other workers were dismissed from Suzuki Egypt between June and October 2011. These workers have not yet been reinstated.

The Italian global rubber and tires giant Pirelli dismissed five unionists from its company in Alexandria in July, after some 2,000 workers at the company went on strike the previous month. However, the Italian multinational company agreed to reinstate the five unionists and offered other concessions following intervention from the IndustriALL Global Union and Egypt’s General Trade Union of Chemical Workers.

The state of investment

Fatma Ramadan, executive board member of the Egyptian Federation of Independent Trade Unions, argues that “both corporations and the Egyptian state are responsible for increasing labor violations.”

Many workers at multinational companies, she continued, “earn only between LE600 to LE1,000 (about $100–166) per month, rarely more.”

Ramadan says about 130 laborers, primarily union organizers and strike leaders, have been punitively fired since the 25 January revolution for striking or organizing within their workplaces — private and public, domestically and internationally owned.

Tallal Shokr, a secretary of the Center for Trade Union and Workers’ Services and the Egyptian Democratic Labor Congress, puts the number at 155.

Trade union rights are generally better protected in public sector companies, Shokr says, and protected worst of all in the “free zones” designed to attract investment, where regulation is largely suspended. He thinks the petroleum sector is among the most aggressive in dealing with its workers.

“Under the pretext of attracting investment, foreign or domestic, all labor violations are legitimized,” Shokr says. “Investors know that the state won’t hold them accountable for violations of labor standards.”

September 11, 2012 Posted by | Economics | , , , , , , | Leave a comment

Egypt to cut subsidies, increase taxes: PM

Al Akhbar – September 9, 2012

Egypt’s new prime minister, appointed in the summer, said Sunday his government was finalizing a package of economic reforms to boost tax revenue and cut consumer subsidies and that he would present a draft to the president next week.

Hisham Kandil told Reuters in an interview the government planned to direct energy subsidies more effectively, issuing coupons or smart cards to the poor for butane cooking gas by mid-October and cutting subsidies on 95-octane gasoline in coming months.

“We want to increase our revenue. To do so we need to look at our taxation system so it covers more people, not necessarily that we tax more. But it would be better to tax more people,” he said. “We’ll try to get them into the formal economy, and we will do that very soon.”

Egypt last month requested a $4.8 billion loan from the International Monetary Fund (IMF) as the post-revolutionary country trudges through economic dire straits.

During 18 months of political turmoil since the overthrow of autocratic leader Hosni Mubarak, successive Egyptian governments negotiated with the IMF to secure emergency funding.

The Muslim Brotherhood, from which the current president hails, was originally skeptical of the IMF loan, which it feared would undermine Egypt’s sovereignty by keeping it indebted to the IMF.

Dozens of Egyptians took to the streets to protest the move which they said was antithetical to a revolution that aimed to unshackle the chains of foreign intervention.

(Reuters, Al-Akhbar)

September 9, 2012 Posted by | Economics | , , | Leave a comment

Qatar to invest $18bn in Egypt over next 5 years

Ahram Online – September 6, 2012

Qatar will inject $18 billion worth of investments into Egypt over the course of the coming five years, Hamad Bin Jassim, the oil-rich gulf state’s foreign minister, said at a press conference in Cairo on Thursday.

Of the pledged investment, some $8 billion will be allocated to electricity and natural gas projects in areas east of the Suez Canal, where Egypt has longstanding plans to build a massive industrial city. Another $10 billion will go to a planned tourist resort on Egypt’s north coast.

In yet another indication of new found warmth between the two nations, Egyptian President Mohamed Morsi met with Bin Jassim following the latter’s arrival to Cairo on Thursday.

In early August, Qatar pledged to deposit $2 billion in the Central Bank of Egypt (CBE) as a means of easing the country’s balance-of-payments deficit. The promise was made following a visit by the Emir of Qatar, Sheikh Hamad bin Khalifa Al-Thani, to Egypt, where he too met with Morsi.

Later in August, Qatar deposited the first tranche – worth some $500 million – in the CBE.

Egyptian Prime Minister Hisham Qandil, for his part, said at a Thursday press conference that Qatar would transfer the rest of the pledged $2 billion in three installments within the next two-month period.

In 2011, Qatar had said it would provide Egypt with a $10 billion grant, with which to support Egypt’s post-revolution economy, but only ended up disbursing $500 million later in the year.

Qatar’s name has begun to resonate among Egyptian business circles, with Qatar’s National Bank recently offering to buy a controlling stake in National Societe Generale Bank, one of Egypt’s largest private lenders.

September 8, 2012 Posted by | Corruption, Economics | , , , , | Leave a comment

Egypt declares 70 army generals retired: Report

Press TV – September 4, 2012

A report says the Egyptian government has announced the retirement of 70 army generals, weeks after President Mohamed Morsi replaced Field Marshal Hussein Tantawi as defense minister with Major General Abdel Fattah al-Sisi.

The new defense minister made the announcement, adding that six members of the Supreme Council of the Armed Forces (SCAF) have also been dismissed, according to a report by the Egyptian daily al-Shorouk.

The six SCAF members will however remain in the armed forces, the paper said.

On August 12, Morsi dismissed Tantawi from his post, canceling a constitutional declaration issued by the military that restricted presidential powers.

Tantawi was Egypt’s defense minister for nearly two decades under former dictator Hosni Mubarak. He headed Egypt’s SCAF, which took power in February 2011 after Egyptians launched a revolution against Mubarak’s regime in January, which eventually brought an end to the dictatorship.

Morsi also ordered the retirement of the military chief of staff, Sami Anan, replacing him with Sedqi Sobhi Sayyid Ahmed.

On August 22, Egyptian lawyer Assem Kandil filed the first legal complaint against several officials in the African state including Tantawi.

“I did so because I accuse them all of killing protesters during the series of bloody protests in Egypt following last year’s uprising along with wasting public money in the state’s spending on the parliamentary election,” the lawyer said.

September 4, 2012 Posted by | Aletho News | , , , , | Leave a comment

$200 million loan from China due to arrive in National Bank of Egypt

Al-Masry Al-Youm  03/09/2012

The National Bank of Egypt said that the US$200 million loan recently granted by the China Development Bank will arrive in the country within days.

The interest rate due on the loan is up to 3.75 percent above Libor rates, which is the central lending price of British banks for a pay period of eight years, including a three-year grace period.

Sharif Elwi, vice-president of the National Bank, said that the loan marks the beginning of Egyptian cooperation with Asian markets in light of worsening economic conditions in Europe.

China has allocated $20 billion to finance projects in Africa, and the National Bank began loan talks with the China Development Bank five months ago, Elwi explained. He denied that the government had pressured the National Bank to broker the deal due to Egypt’s declining international credit rating.

National Bank leaders plan to visit Singapore, Hong Kong, China and Malaysia this October to present investment opportunities in Egypt to potential backers there.

September 3, 2012 Posted by | Economics | , , , , , , | Leave a comment

Iran, Venezuela and Egypt, a possible peace troika to address the Syria situation

MercoPress | August 30, 2012

Venezuelan Foreign Minister Nicolas Maduro has welcomed Iran’s proposal for the formation of a troika committee on Syria consisting of Iran, Egypt, and Venezuela

Minister Maduro welcomed the proposal to keep “major powers from interfering in Syria’s internal affairs” Minister Maduro welcomed the proposal to keep “major powers from interfering in Syria’s internal affairs”

Maduro made the remarks in an interview with reporters from the Iranian media upon his arrival in Tehran on Wednesday to attend the XVI Summit of the Non-Aligned Movement (NAM), which opened in Tehran on Sunday and closes on Friday.

“Playing a role by regional countries in (resolving) the crisis reduces the interference of external powers in Syria,” the Venezuelan foreign minister stated, according to the Persian service of the Mehr News Agency.

“Before everything else, we call on the major powers to stop interfering in Syria’s internal affairs and allow the Syrian people to live in calm, peace, and independence.

“(Iran’s) proposal is a very good proposal (according to which) the major powers and foreign powers will stop interfering in the Syrian crisis with the involvement of the conflicting sides and regional countries to resolve the problem.

“The country of Venezuela welcomes the proposal because it will (help) the people of the country of Syria to achieve peace and true calm.”

Commenting on the NAM summit in Tehran, Maduro stated, “The summit is being held in a country whose people are diligent and are seeking progress and peace. One hundred and twenty countries have gathered together in Iran to step toward world peace.”

August 30, 2012 Posted by | Militarism | , , , , , | Leave a comment

Mursi visit to China builds “strategic” ties

Al Akhbar | August 29, 2012

Chinese Vice President Xi Jinping said the visit Egypt’s leader to Beijing “will increase mutual understanding and trust” between the two countries, local media reported on Wednesday.

Xi’s remarks came during a meeting with Egyptian President Mohammed Mursi, who arrived in China on Tuesday for a three-day state visit.

Mursi held talks with his Chinese counterpart, Hu Jintao, on Tuesday.

Mursi’s visit to China, a rising global power, comes ahead of a scheduled visit to the United States, the key ally of former Egyptian leader Hosni Mubarak.

The Egyptian leader is said to have put Chinese investments high on the agenda of the talks, as a means to inject much needed cash into Egypt’s ailing economy, as well as lessen Cairo’s dependence on US aid.

Mursi reportedly suggested increasing Egypt-China flights from two per week to ten, and requested that China build a high speed train route between Cairo and Alexandria.

According to Xinhua, Mursi called Egypt-China ties “strategic” in the meeting and commended the traditional friendship.

He described his talks with Hu as being “of significance for consolidating Egyptian-Chinese strategic relations.”

“I, along with the delegation of ministers, officials and investors, convey to you and all Chinese leaders and your people all respect and appreciation for your civilization and your pioneer experience in the modern age,” Mursi said.

Chinese news agency Xinhua reported Xi as affirming the visit “would inject new impetus into bilateral relations and will open a new chapter in the friendship between Egypt and China.”

Xi said that the development of Sino-Egyptian relations is due to both being developing countries that “share common goals of maintaining state sovereignty and social stability.”

He cited other common interests as “the promotion of peace and stability in the region and all over the world.”

In an interview last Monday with Reuters news agency, Mursi stated he will seek solutions to the Syrian issue with Chinese leaders. China, along with Iran and Russia, is one of the prominent supporters of Bashar al-Assad’s regime in Syria.

Following his visit to China, President Mursi will make a quick visit to the Iranian capital, Tehran, on Thursday where he will formally hand over chairmanship of the Non-Aligned Movement to Iran’s President Ahmadinejad.

(Xinhua, UPI, Al-Akhbar)

August 29, 2012 Posted by | Economics | , , , , , | Leave a comment

Mubarak era tycoons join Egypt President in China

Several of the businessmen who travelled with Morsi to China were prominent supporters of Mubarak and former members of the NDP

Ahram Online | August 28, 2012

A delegation of Egyptian businessmen who travelled to China on Monday, one day before the visit of Egyptian President Mohamed Morsi, was made up of many figures who were close to the former regime of Hosni Mubarak, and who were members of Mubarak’s now-dissolved National Democratic Party (NDP).

In his first state visit outside of the Arab world, Egypt’s president headed a delegation of seven ministers and 80 businessmen to China.

One the most prominent NDP figures who was invited to accompany the new president was Mohamed Farid Khamis, chairman of the Oriental Weavers Company, one of the world’s largest carpet companies. Khamis was member of the political bureau of the NDP and a member of parliament.

Another prominent name is Sherif El-Gabaly, chairman of Polyserve Fertilisers and Chemical Group, and a member of the administration of the Egyptian Federation of Industries, who was also a member of the political bureau and was known to be close to Gamal Mubarak, son of the former president.

Other members of the NDP present in the delegation included Khaled Abul-Makarem chairman of Fibertex, Walid Hela vice president of heavyweight plastic producers Al-Helal wel Negma and Farid El-Tobgui chairman of Bavarian group.

Hassan Malek, a member of the Muslim Brotherhood and a well-known businessman, heads the delegation and is responsible for the choice of members. Malek, president of a committee for communication between businessmen and the presidency, told Ikhwan Online, the official website of the Muslim Brotherhood, that the group was comprised of businessmen who had existing business ties with China.

The delegation also included some businessmen who have close ties with the Brotherhood, such as Ahmed El-Sewedy, chairman of El-Sewedy Electrics and Abdel-Rahman Samir El-Naggar, chairman of Daltex Food Industries.

August 28, 2012 Posted by | Aletho News | , , , , | Leave a comment

Egyptian Minister Asks for Direct Flights between Tehran, Cairo

Fars News Agency | August 27, 2012

TEHRAN – Egypt’s Civil Aviation Minister Samir Embaby called for the start of direct flights between Tehran and Cairo due to the two nations’ enthusiasm for making reciprocal visits.

“The measure is necessary due to the eagerness of many Egyptian and Iranian people to make reciprocal visits,” Embaby was quoted by the Egyptian weekly, al-Youm al-Sabe’.

He also underlined that starting direct flights between the two countries would play a vital role for trade and economic ties between Iran and Egypt, and said the economic studies carried out in Iran indicate that 60% of Iranians like to visit different Egyptian cities, partly for religious tourism.

In relevant remarks in June, new Egyptian President Mohammad Mursi also underlined his enthusiasm for the further expansion of ties with Iran, and said relations between Tehran and Cairo will create a strategic balance in the region.

“The issue will create a strategic balance in the region,” Mursi told FNA in June, hours before the final results of the presidential election was announced.

Also in July, Iranian President Mahmoud Ahmadinejad and Mursi, in their first telephone conversation, conferred on the two Muslim countries’ ties and the Non-Aligned Movement (NAM) now underway in Tehran.

President Ahmadinejad said Tehran welcomes close interactions with the Egyptian government and nation, and attaches no limitations to the expansion of ties and cooperation with Cairo.

Ahmadinejad expressed Iran’s preparedness to transfer capabilities, achievements and experiences in various scientific, technological, industrial and economic fields to the Egyptian people.

Mursi is due to travel to Iran on August 30 to attend the NAM summit.

August 27, 2012 Posted by | Economics, Solidarity and Activism | , , , , | Leave a comment

Egyptian president heads to China for investment talks

Al Akhbar | August 27, 2012

Chinese investment, including in industrial and technological projects, is the primary focus of Egyptian President Mohammed Mursi’s visit to Beijing starting Tuesday, state media and officials said.

Mursi leaves for China late Monday on his first visit outside the Arab world since becoming president in June. He will then head to Tehran for the Non-Aligned Movement summit on Thursday.

The visit aims to “attract Chinese investment in Egypt,” presidential spokesman Yasser Ali said.

Cairo and Beijing are to sign agreements for seven major projects, including a power station in Upper Egypt, a desalination plant, industrial bakeries and Internet development, according to assistant planning minister Nabil Abdel Hamid.

Egypt will also propose development of a high-speed train line between Cairo and Alexandria, Hamid told state daily Al-Ahram.

Coinciding with Mursi’s visit, a joint business forum will be held in Beijing attended by some 80 Egyptian business leaders, the investment ministry announced.

Egypt’s imports from China in 2011 reached $7.5 billion, versus exports valued at $1.5 billion, as trade between the two countries rose to a total of $9 billion, according to official figures.

Ousted former president Hosni Mubarak had already made trade with China a priority, as volume rose from $610 million in 1998 to $6.2 billion 10 years later.

Egypt hosted the 2009 Forum on China-Africa Cooperation, or FOCAC, in its resort town of Sharm el-Sheikh, where China pledged $10 billion in concessional loans and enhanced trade to African states.

Mursi faces tough economic challenges in the wake of the uprising which forced Mubarak from power last year, and severely affected foreign investment.

On his way back from China, the Islamist president will attend the Non-Aligned Movement summit in Tehran on Thursday, when he will pass the movement’s presidency from Egypt to Iran.

It will be the first visit by an Egyptian head of state since the two countries severed diplomatic relations more than 30 years ago, although Mursi downplayed the issue of possible resumption of diplomatic relations.

Iran cut ties with Egypt in 1980 after the Islamic revolution in protest against the 1979 peace accords between Egypt and Israel.

(AFP)

August 27, 2012 Posted by | Economics | , , , | Leave a comment

UK changes position on IMF loan for Morsi’s Egypt

British officials refrain from giving full backing to Egypt’s $4.8 billion loan request, having previously supported such funding under military rule

By Amer Sultan | Ahram Online | August 25, 2012

London – The United Kingdom has refrained from backing Egypt’s request of a $4.8 billion loan from the International Monetary Fund (IMF).

“We prefer to wait and see the results of the negotiations between Egypt and the IMF,” a UK Foreign Office spokesperson told Ahram Online.

During her recent visit to Cairo, the IMF’s managing director, Christine Lagarde, received a formal request from Egypt for a $4.8 billion loan.

“The UK thinks that this is a good opportunity for dialogue between the two parties,” the spokesperson added.

Asked whether the UK would back the Egyptian request if the IMF board decides in its favour, the spokesperson replied: “We do not have anything to say for the time being.”

The UK’s caution seems to mark a significant change in its attitude towards Egypt’s calls for international assistance to overcome its economic difficulties.

The UK provides 5 per cent of the IMF budget, making it the fourth biggest contributor, with equivalent voting power. It follows the US (18 per cent), Germany (6 per cent) and Japan (6 per cent).

Early this year, the UK government was enthusiastic about an IMF offer of a $3.2 billion loan at a 1.5 per cent interest during Egypt’s period of direct military rule.

A high level UK diplomat then told Ahram Online that the offer was “an amazingly good deal” with “virtually no conditionality.”

UK support at the time followed a meeting of British representatives with the Supreme Council for Armed Force (SCAF), which until July 2012 had veto power on all political decisions.

The diplomat explained that his government felt the deal the IMF put to Egypt was very favourable.

Speaking this week, the Foreign Office spokesperson insisted there was no change in the UK positions on the IMF loan after President Morsi took the reins of power from SCAF.

During her visit to Egypt last Wednesday, Lagarde met Morsi and his prime minister Hesham Kandil, and praised the Egyptian vision for reform.

“We are impressed by the strategy that President Morsi and Prime Minister Kandil have proposed during our meetings today,” she said at a joint press conference with Kandil.

An IMF technical team is due to arrive in Cairo in early September to begin work on arrangements for the mooted loan.

“We prefer foreign borrowing at this stage given the low interest rate of the IMF loan compared to much higher rates when borrowing domestically,” said Kandil, on the matter.

He added that borrowing domestically would crowd out the private sector and the IMF loan would help ease liquidity problems.

The IMF said in a statement it had maintained close dialogue on economic policy with Egyptian authorities since the start of the transition period in February 2011. It said it has also provided considerable technical assistance upon request from the government.

August 26, 2012 Posted by | Economics | , , , , , | Leave a comment

Morsi gives solution to Syrian crisis

By M K Bhadrakumar | Rediff | August 18, 2012

I wrote yesterday for Asia Times that in Muslim politics such as the event of the summit meeting of the Organization of Islamic Conference that was held in Jeddah last week over the Syrian crisis, it is invariably the case that the sub-texts turn out to be more important than the narrative.

The narrative in the present case is well-known; it is well-propagated by the Western (especially American) media and it inevitably trickles down to Indian discourses, namely, that the OIC summit in Jeddah was going to be all about the Saudi-Iranian ‘cold war’.

But the devil lies in the details. One point of immense curiosity was about the stance taken by Egypt’s president Mohammad Morsi (who belonged to the Muslim Brotherhood) at the OIC summit. Three reasons could be cited for this. One, this was Morsi’s first appearance on the world stage and it became a poignant moment that an elected Islamist leader in a Middle Eastern democracy was taking to the OIC podium.

Two, Egypt had so far shied away from taking a stance on the Syrian situation and Egypt’s formal stance on the Syrian situation holds a lot of significance for the downstream developments, given the unmistakeable longing of that country to reclaim the leadership of the Arab world — in sum, Egypt could be an ally or a competitor for Saudi Arabia.

Third, Egypt’s Brothers are on the horns of a dilemma. They came to power riding the wave of a ‘regime change’ but they also would be conscious that the MB in Syria has certain unique characteristics, as its secretive dealings with the Western powers and Turkey (and some say, with even israeli intelligence) for creating a militia and resorting to the path of violence to force a ‘regime change’ in Damascus would testify. Egypt’s Brothers had, on the contrary, kept to the strait non-violent path in their march to power through the decades in the political wilderness.

Obviously, there is a keen struggle to sway the Brothers of Egypt. Thus, the stunning decision by Qatar to lend a handsome amount of 2 billion dollars to Egypt to help Morsi tide over the economic crisis was not because Doha has a bleeding heart.

Not a few observers could see that Qatar is creating leverage in Cairo at a juncture when the Saudi and American influence is facing uncertainties. Curiously, the Qatari lovefest with Egypt coincided with the OIC summit in Jeddah.

In the event, Morsi rose to the occasion. The narrative is that he called for a transition in Egypt. “it is time for the Syrian regime to leave”, he said. So far so good. The Western media lapped it up. But then came the sub-texts. Morsi called for a non-violent path. In immediate terms, he sought a ceasefire through Ramadan. Besides, he wanted an Islamic solution.

Then came the bombshell. Morsi proposed that a contact group should be formed to resolve the Syrian crisis through peaceful means, discussion and reconciliation. And, pray, who would form this group? Saudi Arabia, Egypt, Turkey and Iran — he outlined.

In a nutshell, Morsi has rejected the strategm for ‘regime change’ in Syria by the United States in alliance with Turkey, Saudi Arabia and Qatar (with Israel standing in the shade for undertaking covert operations). Most important, Morsi’s package is almost exactly what Iran espouses, too.

No wonder, Tehran feels greatly elated. In contrast with the deafening silence in Ankara, Riyadh and Doha, Tehran has scrambled to welcome Morsi’s proposal. Saudis will feel perturbed that Cairo is careering away into the trajectory of an independent foreign policy that may have more commonality with Tehran than the course adopted by the GCC states. Turkey will feel downcast that the new Egypt is not exactly in a mood to adopt the so-called islamist leadership of Prime Minister Recep Tayyip Erdogan as its role model.

Indeed, we could anticipate that interesting times lie ahead as Egypt’s Brothers carry forward the impulses of their revolution. We are slowly, steadily getting near to an answer to the question raised in great angst by several quarters (Washington, Tel Aviv, Riyadh) : Will the new Egypt orient toward Saudi Arabia or Tehran?

The answer is crystallizing: Morsi intends to follow the middle path. Actually, that is also what his latest decision to attend the NAM summit in Tehran underscores.

So, it is about time we move on to the follow-up question: Whom does Morsi’s (and Egypt’s Brothers’) middle path suit better — Saudi Arabia or Iran? I won’t wager for an answer. It’s Iran, Stupid! All that Tehran ever expected in its regional (Arab) milieu all through these past 34 years since the Islamic Revolution was a level playing field. And Egypt is willing to recognize, finally, that it is a legitimate aspiration to have.

August 22, 2012 Posted by | Militarism, Timeless or most popular | , , , , | Leave a comment