Saturday, December 21, 2013

Can the U.S. Deal With a Middle East Earthquake?

Over the last month the geopolitical landscape of the Middle East has been jolted and fractured by the earthquake of the EU3+3 nuclear agreement with Iran and the numerous aftershocks that have followed. The players who are wedded to the status quo are struggling to navigate this new landscape. Western and regional diplomats have been jetting around the region in an effort to figure out how to deal with the changes. This turmoil within traditional alliances has come at an inconvenient time for the Obama administration as it struggles to implement its announced pivot or rebalancing to the Pacific. As National Security Advisor Susan Rice told the NY Times in October, “We can’t just be consumed 24/7 by one region, important as it is.”

Ever since Richard Nixon was forced to “pivot to the Pacific” by the Vietnam War, the U.S. has, at various times, relied on strong regional allies to protect its interests around the globe. Initially in the Middle East, the allies were Iran and Saudi Arabia. Following the Iranian Revolution in 1979, the U.S. relied on Israel, Saudi Arabia and at times Egypt. Under George W. Bush this “twin pillars” strategy was abandoned for a policy of direct unilateral intervention to protect U.S. interests. Now, just when Obama would like to again rely on regional allies, the whole alliance structure is shifting and breaking down.

The Egyptian Revolution has taken Egypt completely out of the picture. Saudi Arabia’s divided and dysfunctional foreign policy team has been sorely tested by its desire to maintain relations with the U.S. while at the same time supporting sectarian conflicts in Syria and Iraq. Its vehement anti-Iran position and its leadership within the Gulf Cooperation Council (GCC) are being challenged by Iran’s diplomatic blitz. Iran was invited to the Manama Dialogue, a security conference in Bahrain, a Saudi client state. Ignoring Saudi objections, the GCC has responded positively to Iranian overtures to improve relations among Persian Gulf littoral states. GCC member Oman, a valuable U.S. intermediary with Iran, has rejected unequivocally a Saudi effort to unite the GCC as a single entity under Saudi leadership. Lebanon has rebuffed Saudi suggestions that the Lebanese Army turn its guns on Iran’s ally Hezbollah. The possibility of Iran dramatically increasing its oil production threatens the Saudi role as the swing producer in OPEC. Faced with the declining power of a key ally, the U.S. has relied on its default response of selling the Saudis billions of dollars of high tech weaponry.

America’s other pillar in the region, Israel, has its own struggles. The death of anti-apartheid hero, Nelson Mandala, came at a particularly bad time for Israel as it focused attention on Israel’s treatment of its non-Jewish population and resulted in growing international criticism Even the vaunted lobbying power of AIPAC is being called into question by its failure to prevent the Geneva Nuclear Agreement with Iran and, thus far, its inability to torpedo the Geneva agreement with new Congressional sanctions. As Obama’s threat to veto new Iran sanctions shows, Israel’s intransigence with respect to settlements seems to be wearing out its welcome at the White House. While the frustration with Israeli political pressure hasn’t reached the level of George Bush ’41 when his Secretary of State James Baker infamously said “F**k the Jews, they don’t vote for us anyway”, the frustration is certainly increasing. With a second term President, who isn’t facing an election, Israel has a problem.

While Saudi Arabia and Israel are discussing an alliance to counter Iranian influence, it appears to be a marriage of convenience. As the U.S. attempts to back away from direct commitments in Syria and Afghanistan, it will leave a power vacuum. It is not clear who will be able to fill this vacuum. Russia and China have ambitions in the region, but they have neither the will nor the way fill the U.S. role. As Beirut based Alistair Crooke said his recent post on Conflicts Forum, “Winding-down the US commitment in the region does not mean that all the area’s problems will be solved, but it does imply that the US will no longer be expected to resolve them all. “

Monday, December 09, 2013

Obstacles to an Agreement with Iran

In order to understand the political dynamics surrounding the recently signed EU + 3/Iran nuclear agreement, it is important to understand some of the history. The U.S, sanctions regime against Iran began in 1979 shortly after the Iranian Revolution and the subsequent hostage crisis. The initial sanctions were imposed by President Jimmy Carter who froze millions of dollars of Iranian assets in U.S. banks. In the 1980’s, the sanctions were expanded to include weapons and any financial aid to Iran, as the U.S. attempted to aid Saddam Hussein during the Iran-Iraq war. The sanctions regime was expanded in 1987 under President Ronald Reagan and again in 1997 under President Bill Clinton. President Obama has magnified the impact of the sanctions by threatening and coercing governments around the world, wishing to do business in the U.S., to abide by the unilateral American sanctions. These sanctions have had an increasingly negative impact on the Iranian economy and on the lives of ordinary Iranians. Circumventing and mitigating the effects of the sanctions has been a major focus of almost all Iranian governments.
The Iranian nuclear program dates back to 1957 when the U.S. signed a nuclear cooperation agreement with Shah Mohammed Reza Pahlavi’s government under the Atoms for Peace Program. Following the revolution, the Siemens AG contract to build the Bushehr nuclear reactor was terminated. Shortly thereafter the Iranian government announced an ambitious program to construct its own reactor and to master the nuclear fuel cycle. In my opinion, while the nuclear program has been expanded to provide nuclear power and medical isotopes, its primary purpose has been to accumulate bargaining chips in order get the sanctions removed and reduced and to get Iran reintegrated into the international community. As the West has rebuffed all Iranian efforts at reintegration, the chips have continued to accumulate. It is not a nuclear weapon that concerns the U.S. and its allies, Israel and Saudi Arabia, but the reintegration of Iran into the global economy.
Iran is strategically located astride the Straits of Hormuz and is a buffer state between the Middle East and Central Asia. With its large (70mm), well-educated young population, relatively stable governance, and substantial potential for oil and gas production, Iran is much better positioned than its neighbors to project political and economic power, both within the region and globally. It is this potential to change the status quo in the region that most worries Iran’s adversaries. The nuclear weapons issue is a politically powerful red herring to cover the true concerns.
During the Geneva talks, Israel and Saudi Arabia spent much money, printers ink and bombast to prevent the interim agreement from being signed. Having failed in that effort, they are now rolling out the political big guns in Washington in order shoot down any final comprehensive deal that will result in rapprochement with Iran. Already the Obama administration is showing signs of backing away from any final status agreement. (See here and here.) While it is in America’s interest to resolve the conflict with Iran diplomatically, it is unclear to me whether or not Obama, who sees every foreign policy issue through a lens of domestic politics, will be able to summon the political will to deliver on the promise of the Geneva agreement.