The Futility of Predictions
On January 1st, 2011, standing at the Wailing Wall in Jerusalem, then paying one more visit to the Dome of the Rock before our flight back to London, I could not have predicted then the events that would transpire in the world in the year ahead. Having just visited several countries in the Middle East, including Syria, I had formulated a number of opinions and insights based on my observations. In hindsight, several of my short term predictions for 2011 couldn’t have been more far off, including my belief that Syria would begin to liberalize politically and that the Assad regime would seek more openness to the West. Instead, as I write this post the civilian death count at the hands of Assad’s security forces mounts, the Arab League continues to apply unprecedented financial and diplomatic pressure on the regime, causing further isolation for Assad and driving him even closer to Iran, and a growing insurrection from Baathist army defectors threatens to encompass the country in a full-fledged civil war. If you review my original travel post on LondonCosmopolitan, you will see that this was not quite what I expected at the start of 2011 and that the events which have transpired in Syria over the last 10 months is a disappointing development in a country where just over a year ago there were indeed positive signs of political development and economic progress. Syria is just one among an entire host of countries which shared a common theme throughout 2011. The last year witnessed numerous, sudden, and unexpected changes on a range issues across a broad geographic spectrum. Much of it was tinged with elements of social unrest, political upheaval, and civil revolt, all of which sought to challenge an established and accepted status quo in their respective geographies. The effects of these events will carry on into 2012 and beyond.
Looking back to January 2011 I could not have predicted then most of the events that would come to define the year including the fall of Ben Ali in Tunisia, the eventual overthrow of Mubarak in Egypt, the civil war in Libya and Qaddafi’s ultimate demise, or the killing of Osama bin Laden in Pakistan after a nine and a half year manhunt. Taken in context, the year carried on at break neck speed with devastating natural disasters in Japan, Australia, New Zealand, and the American South, turmoil and protests throughout European capitals as a result of government austerity measures, the wider “Occupy” movement which swept the entire planet, sudden and violent riots in London, a sustained escalation in Mexico’s drug war, wide scale self-immolations in China by Tibetan protestors, the Palestinian Authority’s attempt and ultimate failure at statehood recognition in the UN, popular protest against Putin’s United Russia, and the death of Kim Jong Il in North Korea. Furthermore, with the Standard & Poor’s credit downgrade of the US, the worsening global financial crisis and the Eurozone calamity it is clear to see that 2011 will be remembered as a period of high drama and historical significance to a degree of which no one could have anticipated and which will alter the geopolitical and economic landscapes for many years to come.
This year on January 1st I spent the day hiking through the hill town of Ella in Sri Lanka and in light of the shocking preceding year, I did not attempt to forecast what would transpire in the year 2012. As of my travels, Sri Lanka was at peace and the ceasefire between the Sinhalese led government and the Tamil Tigers is being honored. While the sentiment on the ground is mostly positive, there are disturbing signs that hostilities and atrocities remain, making the outlook for 2012 uncertain at best. We cannot predict the outcome of anything, but I will however argue that the events of 2011, as dramatic and compelling as they were, are left incomplete and will undoubtedly continue to develop and grow in complexity throughout 2012. In this way I can assume that 2012 will eclipse 2011 in terms of global and historic significance. Year end reviews and outlooks for the year ahead often incorrectly view a year through a linear and finite lens, almost like a film with a beginning and an end which starts at Day 1 with a finale closing the loop of the plot on Day 365. In reality, the events of 2011 were not standalone storylines with clear resolutions and closure, but were rather the impetus for future events to come. If 2011 was a dramatic and thrilling film, then it concluded with a suspenseful cliffhanger whose sequel will be played out in 2012. Based on the prior year and recent developments thus far in 2012, I highlight below the main topics that will require attention and which will be discussed in further detail in subsequent posts as the year moves forward and these stories develop.
Seeds of Democracy in the Middle East
In 2011 I rightfully devoted a significant amount of time discussing events in the Middle East. The democratic movements which swept the region in 2011 should no longer be referred to in 2012 by their cleverly given media names, nor should they be substituted with new catchy phrases such as “Arab Winter” or “Arab Awakening”. The initial events which caused the related, but slightly disparate movements which came to be collectively known as the “Arab Spring” are in the past. In 2012 the political developments occurring throughout the Arab world are going to be more transitional in nature as these countries embark on a long journey towards reform with each country facing very different challenges and suffering setbacks along the way as they each attempt to reconcile their unique circumstances.
The West, after fledgling regime change experiments in Iraq and Afghanistan, may need to become comfortable with the fact that there is not a universal template for functional democracy that can be applied to these distinct countries and that democracy must evolve and adapt in different ways based on a country’s historic and cultural backgrounds, just as it has in Europe, North America, and Asia. Tunisia will be largely concerned with ensuring ongoing progress toward institutional reform, balancing Islamism and liberalism, while Egypt will grapple with the fact that the far right Salafist movement gains in popularity, eclipsing even the influence of the Muslim Brotherhood. Libya faces internal instability due to a lack of political infrastructure and weak institutions and faces a risk of tribal conflict as rebel groups lose patience and may seek more immediate control over certain areas to get things moving again. Meanwhile, rising unemployment and worsening economic conditions, one of the main catalysts for revolt in each of these countries in the first place, remains a serious threat to stability. Syria, most seriously of all and with perhaps the worst prognosis, faces the reality of an all out civil war which could encompass the greater region in conflict, from Lebanon to the borders of Iraq and Jordan.
On the issue of Iraq and in light of the American troop withdrawal at the end of 2011, the country is at serious risk of sectarian conflict and violence between Sunnis and Shias. Already the rhetoric between those who are meant to be the legitimate progenies of a stable and democratic Iraq, Prime Minister Maliki, a Shia and his Sunni colleagues in government, is unfortunately and disappointingly trending towards the toxic, set against a backdrop of a recent wave of terrorism and violence. America’s newfound absence in the country creates questions about how Iran may see an opportunity to meddle internally and pull levers here as a new mode of bargaining and manipulation on unrelenting nuclear issue.
Meanwhile, Iran will continue to become more isolated as a result of increasingly tightened international sanctions as the year goes on. Consequently, they will use the void in Iraq and the isolation of Syria as an opportunity to regain some sway in the region to meet their national interests, further prolonging the stalemate between Mr. Ahmadinejad and the West over the nuclear issue.
On the issue of Israel and Palestine, the Palestinian Authority in the West Bank is likely going to be forced to forge closer ties to Hamas in Gaza as its position becomes more desperate and hopeless and its number of genuine and strong supporters proves scarce or unreliable, including primarily the United States. In a world defined by quick headlines and snappy sound bites, when it comes to the current situations in the Middle East, patience and good nerves are required in 2012.
Europe Limps to the Hospital
Several years ago I wrote an optimistic piece on the future of Europe in light of the Treaty of Lisbon, an attempt then at greater political and federal union. I argued then, as I do now, that in order for a common monetary union to function effectively a common fiscal union is also required to ensure fiscal discipline among member states, thereby ensuring stability for the common currency. The destructive results of this missing piece of policy and the catastrophic sovereign debts of individual member states were highlighted in 2011 and will be the single most important issue for Europe throughout 2012.
It is the consensus among economists that the economic situation in Europe will likely continue to deteriorate throughout 2012. Already this year, France, along with eight other members of the Eurozone have had their credit ratings downgraded by Standard & Poor’s.
Britain nearly turned itself into a pariah state among Europe at the end of 2011, the only European Union member among all 27 member states, to veto a treaty which had built within it clauses to fortify closer fiscal union for the common monetary union. The reasoning behind Britain’s departure was that it lacked clauses protecting the City of London from pervasive financial regulations from Brussels. As a result, the 17 Euro member states will now have to draft a resolution for tighter fiscal regulation outside of a new treaty. While Britain was the only country to veto the treaty, it is not alone in its impatience with the “European project”. Other nations with the currency opt out clause such as Sweden and Denmark have also shown signs of weariness towards the struggling economic union and voters in the stronger Euro countries of the north, led by Germany, are growing irritated with what they perceive to be a large scale bailout program for less fiscally responsible southern members (i.e. PIIGS).
While yet another schism between Britain and the continent is not surprising, Europe should begin considering the possibility that British voters may respond with demands for a referendum on British membership entirely. If this were ever to occur there is no reason Eurosceptic governments in other tired European countries wouldn’t follow suit. The bottom line is that in 2012 Europe must find a remedy to cure itself of this disease of debt which risks killing the euro and further paralyzing the wider European economy.
Further to the east, the presidential election in Russia due in March will likely spur further protests against Vladimir Putin’s United Russia party. While corruption is expected to be rife, how the government chooses to respond to these demonstrations will set the tone for further political and social developments in Russia. Under the leadership of United Russia over the last several years, democracy has eroded in several ways and the recent protest movements which began at the end of last year and which will certainly continue up to and probably after the election in March will be the greatest test for Russia’s democratic institutions to date. As Mr. Putin will likely emerge as the winner, how he chooses to approach many of the global issues discussed here, including Syria, the Israel/Palestinian debate, and Iran, will set the tone for how the regime will engage with the West going forward.
The Tide Turns towards Asia
At the end of 2011, President Obama revealed his strategic plan to scale down the US military in order to meet required cuts in the defense budget. Without going into the minutiae of the entire plan, the general impact is that resources and focus are being shifted out of Europe and to Asia and the Pacific. There are a number of reasons for this strategic shift, but the widely agreed upon driving factor is the rise of China and the US commitment to protecting allies and interests in the region. Coincidentally, the move comes at a time of considerable change in two countries, Myanmar and North Korea, both of which have been traditionally dependent upon and aligned to China.
Towards the end of 2011 Myanmar showed signs that it was finally opening up after 50 years of maintaining one of the most closed countries in the world under brutal military rule. Since December 2011, and almost on a weekly basis, the country has made massive steps towards liberalization including welcoming American Secretary of State Hillary Clinton and British Foreign Minister William Hague, allowing Aung San Suu Kyi’s NLD party to register and run in the upcoming parliamentary elections, and the release from prison of high profile political dissidents and opponents. As a resource rich country which has yet to develop its full economic potential, Myanmar’s recent embrace of the West and compromise with the domestic opposition indicates a desire to move away from the sway and influence of China. Myanmar will become a much more geopolitically significant country in 2012 as the West moves in and China struggles to remain relevant.
Developments in North Korea are even murkier, dependent entirely on how the succession of Kim Jon Un as the new “supreme leader” fares. In the most secretive and perhaps most dysfunctional country in the world, it is anybody’s guess what comes next for North Korea, but internal power struggles and jostles within the military command are probable. Again, as North Korea’s only real ally or friend in the world, how China chooses to approach this extremely volatile and sensitive situation will have a greater impact on the entire region. Taken in context of the new American military focus in Asia, there is a renewed potential for the administrations in the US and China to come into diplomatic conflict with one another. In 2012 if the great game between India and China will be played in Central Asia, then the great game between the US and China will be played in Southeast Asia and Myanmar will be the focal point.
Finally, later this fall Beijing will host the 18th National Congress of the Communist Party of China where a new presidency and premiership will be selected for 2013. As the ranking members of the Politburo age, speculation is rife that the party may look towards a younger generation for the new leadership. While any leader is likely to adhere to the same principles and dogma which have dominated the premiership over the last two decades, there is always the slight possibility that there could be minor deviations from the current rigid social and political structures in place. Either way, as the middle class continues to expand in numbers, political reform will be necessary one way or another and perhaps this new generation of leadership will be wise enough to recognize the inevitability of this.
Unwise to Forget Africa and Latin America
As a whole, I cannot think of a region that is more undeservingly sidelined than Africa. Dominated only by very light news coverage of the devastating famines in East Africa in 2011, there was also shockingly little discussion of the birth of the newest nation in the world, South Sudan. For a continent that is receiving so much foreign direct investment, spearheaded primarily by China, it is astonishing that there is so little media coverage for a region which is only going to grow in geopolitical strategic significance.
Aside from the renewal of tribal violence in South Sudan, Nigeria and South Africa will be worth paying attention to in 2012. The increasing religious violence and the recent protests against fuel price hikes in Nigeria will likely become more severe. In South Africa, a major recipient of Chinese investment, the ruling ANC faces charges of rampant corruption and cronyism. How each of these leading large African countries responds to these challenges will be of immense consequence to the greater region.
Meanwhile, across the ocean, an ailing Hugo Chavez continues to beat Venezuela into mere irrelevance. Despite his efforts this year to bring together all the nations of Latin America in the Community of Latin American and Caribbean States (CELAC) whose primary aim was to demonstrate a counterbalance to US influence, very little came out of it in the way of policy or frameworks for future collaboration and integration. At best it was a redundant effort for a region which already boasts the Organization of American States and the Union of South American Nations (UNASUR) each of which have already proven effective on a variety of customs and trade issues. Nonetheless, Latin America is still led by Brazil and Mexico, followed by Argentina and Chile while Venezuela relies on political games and manipulation at the expense of a crumbling infrastructure and economy with very little show for its efforts. However, it is still worth paying attention to Venezuela due to the mostly symbolic relationship between Mr. Ahmadinejad and Mr. Chavez in light of the greater developments occurring between Iran and the United States.
Leadership (?) in the United States
There is no question that America is in a state of flux. The economy is severely damaged, unemployment remains stubbornly and destructively high, and the national debt acts as an overhang against any possible spending or stimulus. More seriously, there is a deficit of trust in the institutions of power and authority whose responsibility it is to solve the problems.
In 2012 the Republicans will select the candidate that will run against President Obama in the general election this November. Despite all of the complicated and tumultuous events occurring throughout the world, many of which are briefly touched on above, and despite the political hyperbole on less significant domestic social and moral issues that will come from both camps during the campaign season, the major deciding factor in this election will be the American economy; getting people back to work while simultaneously tackling the massive overhang of national debt. Everything else will be and should be secondary and we can only hope that the candidates are wise enough to spend their energies focusing on the most pressing issues facing the average American.
Already in 2012 Governor Mitt Romney has had early success in the Iowa caucus and New Hampshire primaries. Former US Senator Rick Santorum is showing early signs of success as a more socially conservative option for Republicans further on the right than Mr. Romney. Although Mr. Romney is currently the frontrunner, there is still a long way to go in the primaries and beyond that, the general election. We have yet to see what President Obama’s camp has prepared to counter a Romney presidential campaign, but whoever wins the Republican nomination, the hope is that both candidates seriously focus on fixing an American economy that is quickly breaking down beyond repair.
On The Bright Side, It’s Not the End of the World
It is a popular fact that the ancient Mayans famously predicted the date for the end of the world to be in the year 2012. Indeed the natural disasters, social upheaval, and financial calamities of 2011 might have been well placed as scenes in a really bad apocalypse film; however I don’t believe the outcome will be this fantastical. Rather than feeling pessimistic about the general state of affairs, I do believe there is cause for optimism.
It could be said that the political and economic conditions over the last 20 years culminated in the apex of events witnessed throughout 2011. In very different places and in very different ways, people across the planet stood against widely accepted and entrenched economic and political systems which had dominated the way business, government and society have been conducted for decades. Although the times in which we live are tumultuous, the fact that people are challenging ingrained ways of thinking demonstrates the inherent human desire for progress and this is a positive indication for the future.
The reality is that many of the situations and scenarios discussed above will likely have to get worse before they improve. The solutions to this complex array of challenges likely lies somewhere in the journey to understanding these issues completely. Without attempting to predict or forecast in too much detail, I do sense that the year ahead will be more historically significant than the previous year.
On a positive note, at least here in the UK we have the London Olympics and the Queen’s Jubilee to look forward to in case the Mayans turn out to be right after all.