Tag Archives: constitution

European Union, United States

The US perspective on the European parliamentary elections

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I sat down with Brian Beary from Europolitics late Sunday night to discuss the results of the European parliamentary elections, with a particular focus on the US perspective. USflagEuropean_Union

The link is here (unfortunately, subscription only), but here’s one excerpt:

Is there a US equivalent to the Eurosceptics that did so well in the European elections?

In a formal sense, it is a peculiarly European thing. There are no parties in the US that are saying ‘we need to pull out of the United States’. The one thing they do share is that politicians in the US, for at least two generations now, in every election run against Washington. And in Europe, whether it is the hard Euroscepticism of groups like UKIP or Front National, or the soft Euroscepticism of certain members of the British Labour Party, or Silvio Berlusconi, there is an anti-Brussels-ness that reminds me of the way US politicians campaign against Washington.

Though many commentators and academics like to refer to the European Union today as a kind of ‘United States of Europe,’ especially during the EU’s ill-fated constitutional debate in 2004 and 2005, I argued that the European Union today more closely resembles the confederation of US states that existed under the 1781 Articles of Confederation.

Most US headlines in the lead-up to the European elections have concerned Ukraine and the ongoing security crisis and showdown with Russia that’s caused a regeneration of interest in transatlantic security, NATO’s role and additional follow-on issues,  such as the potential US export of liquified natural gas to Europe. In the aftermath of the European elections, US headlines are focusing on the rise of eurosceptic parties like Nigel Farage’s UK Independence Party and Marine Le Pen’s Front national in France.

In both cases, that’s understandable — and both topics are incredibly important. The real issues where the European Parliament will have the most impact in the next fiver years, however, are somewhat less sexy, but they should be on the radar of US policymakers and investors in the years ahead: Continue reading The US perspective on the European parliamentary elections →

Egypt

Mubarakization watch: Egypt referendum results

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For the record, the results of last week’s constitutional referendum are in — voters approved Egypt’s new constitution by a margin of 98.13% to 1.87%, though on a turnout of just 38.6%. egypt_flag_new

With the opponents of the new constitution boycotting the vote, including the supporters of Morsi and the Muslim Brotherhood, the lopsided margin makes some sense.  The turnout was higher than the 32.9% recorded for the December 2012 constitutional referendum hastily organized to approve the Islamist-friendly constitution promulgated by former president Mohammed Morsi, and it’s only a little lower than the 41.9% turnout in the March 2011 constitutional referendum when optimism ran highest after the collapse of the regime of former president Hosni Mubarak.

But it’s not a great sign for Egyptian democracy that such wide majorities endorsed two very contradictory visions for Egypt’s constitution within the same 13-month period.  It’s also not a great sign that the ‘July 3’ regime, the military government that ousted Morsi last summer and headed by interim president Adly Mansour and defense minister and armed forces chief Abdel-Fattah El-Sisi, dispersed and harassed opponents of the new constitution in the days leading up to the vote.  By most accounts, the current government hasn’t been as heavy-handed as the Mubarak regime in the 2005 and 2010 votes, which amounted to show elections, but that’s setting the standard for Mansour and El-Sisi fairly low.

Amnesty International on Wednesday harshly condemned the military regime’s use of force and the infringement of human rights since taking power seven months ago.  The interim government has repeatedly used lethal force to break up protests, largely in support of the Morsi regime.  In a world where the government continues to refuse to allow the Muslim Brotherhood to compete freely and fairly, though, a cloud of doubt will hang over not only the constitutional referendum, but the next two sets of elections.

It’s worth noting that the new constitution marks an improvement in some areas over the 2012 constitution that Morsi pushed through (after initially trying to take dictatorial powers in November 2012) — it theoretically holds Egypt to the standard of international treaties on human rights, takes a zero-tolerance approach to torture, reduces the role of Islam in governance, and improves women’s rights and the rights of religious minorities.

So what comes next?   Continue reading Mubarakization watch: Egypt referendum results →

Egypt

Egypt’s constitutional referendum enshrines re-Mubarakization

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10.69 million.egypt_flag_new

That’s the number of the Egyptians who voted to ratify Egypt’s new constitution in December 2012 — at 68.8% of the electorate, it constituted more than enough votes to enact it, thereby promulgating the Muslim Brotherhood’s Islamist vision of constitution reform in the world’s largest Arab country a new constitution.

The turnout in the March 2011 constitutional referendum was even higher.  In that vote, 14.2 million Egyptians (77.3% of the electorate) approved changes to the previous constitution that were designed to launch a more democratic and representative government by the Supreme Council of the Armed Forces that effectively took control after the fall of former president Hosni Mubarak in February 2011.

So as Egyptians vote today (and tomorrow), it will be the third such post-Mubarak constitutional referendum.

It’s the first vote since the July 2013 military coup that pushed Mohammed Morsi, Egypt’s first elected president, from power.  Its passage is all but assured, in light of the arrest or dispersion of many opponents of the new constitution:

“I am telling them, they will be faced with force, decisiveness and strength never seen before,” interior minister Mohammed Ibrahim said on state TV on Monday. “Everyone rest assured, we are watching your back”… State television showed Ibrahim on Monday inspecting some of the 350,000 police and army personnel, including special forces and paratroopers backed by armored vehicles and helicopters, currently being deployed to streets across the country to secure the polls and encourage a high turnout.

That’s not the most reassuring statement that the referendum will be an incredibly free and fair election.  Nonetheless, the referendum is seen as the first step in a series of elections that will mark Egypt’s ‘transition’ from military rule to a more lasting democracy.  The current atmosphere augurs poorly for future elections set to take place later this year.  Under the constitutional reforms, Egypt’s interim government will have three months from the date of the new constitution’s enactment to call either parliamentary or presidential elections, with the other elections to follow within six months from the date of enactment.  That means by the summer, Egypt should have both an elected president and an elected legislature.

Despite a genuinely robust marketplace of political actors in Egypt today, the constitutional process seems less like a real transition than a stitch-up for Abdel-Fattah El-Sisi to become Egypt’s next president.  El-Sisi (pictured above), who’s currently the minister defense and head of the armed forces, last week indicated he is edging ever closer to a formal run for the Egyptian presidency later this year.  While El-Sisi is a charismatic figure with genuine popularity throughout Egypt, it’s hard to believe that he represents much more than Mubarak 2.0 — a strongman willing to sustain a crackdown on Egypt’s Muslim Brotherhood.

More troubling is that hardly anyone in the past three regimes — the initial post-Mubarak SCAF government, the Islamist Morsi government, or the current military government — have prioritized Egypt’s crumbling economy.  Poor employment options for a young populace and stagnant economic growth were factors in the initial 2011 protests, but the economic situation has worsened over the past three years as Egypt’s political crisis has deepened.

El-Sisi’s closest competition — and perhaps the greatest hope for a civilian Egyptian government in 2014 — is Hamdeen Sabahi, a leftist, nationalist, neo-Nasserite figure who rose to prominence in the 2012 presidential election.  Though Sabahi actually won the highest number of votes in Cairo, he very narrowly trailed the two frontrunners, Morsi and former air force commander Ahmed Shafiq, thereby missing the subsequent runoff.  Sabahi, who formed the Egyptian Popular Current (التيار الشعبي المصري) in 2012, has allied with the wider umbrella group of secular liberals, the National Salvation Front (جبهة الإنقاذ الوطني‎) that’s headed by Mohamed ElBaradei.  Sabahi firmly opposed Morsi and initially supported Morsi’s removal, but he’s also indicated that he believes El-Sisi should remain within the military.  Given El-Sisi’s rising popularity and control of the current government, it’s difficult to know if Sabahi (or anyone for that matter) has the political power to defeat the general if he progresses with a presidential bid.

Most immediately, the constitutional reforms expected to be promulgated in this week’s plebiscite are wide-ranging (here’s a piece by Bassem Sabry outlining 29 key provisions), and they’re not necessarily all for the worst: Continue reading Egypt’s constitutional referendum enshrines re-Mubarakization →

South Africa

Remembering Nelson Mandela (1918-2013)

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Guest post by Andrew J. Novak

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Nelson Mandela, who achieved nearly mythical status as the first post-apartheid president of South Africa, received the name ‘Nelson’ from his teacher Miss Mdingane on his first day of primary school in a small village in the Eastern Cape, as part of a custom at the time of providing African children with Christian names. south africa flag

Before that he was known by his birth name Rolihlahla, ‘troublemaker’ in colloquial isiXhosa, which appears now in retrospect both endearing and prescient. Formal isiXhosa uses clan name as an honorific, referring to a family’s ancestor; Mandela’s was Madiba, the name of a chief who ruled in Transkei in the 18th century.  When he completed his traditional initiation rites of manhood at age sixteen, Mandela was given the name Dalibhunga, ‘convener of the dialogue,’ another name that seems strangely appropriate decades later.  Later in life, he would be known as Tata (father) and Khulu (grandfather) by many South Africans regardless of their own age, as patriarch of a new multiracial democracy.  He was Papa to his third wife Graça Machel, the former first lady of Mozambique, whose life, like his, bore the rugged scars of a nation struggling for independence.

Perhaps the name that most defined his life’s eventual course was a fake one: David Motsamayi, a name he assumed to secretly leave South Africa in 1962 to travel across the continent raising the international profile of the African National Congress (ANC).  He received military training in Morocco and Ethiopia and raised money from the political leaders of several North and West African countries before traveling to London where he met with anti-apartheid activists and reporters.  Upon his return to South Africa, he was arrested at a police roadblock and placed on trial for inciting workers’ strikes and leaving the country illegally.  He was convicted and sentenced to five years in prison in Pretoria before the police uncovered evidence of his role in the founding of the ANC’s military wing, Umkhonto we Sizwe, Spear of the Nation.

In the famous Rivonia trial, he was convicted of four counts of sabotage and conspiracy to violently overthrow the government and sentenced to life imprisonment.  For the next eighteen years of his life, he lived in a small cell on Robben Island until a journalist’s slogan ‘Free Mandela’ started an international campaign that culminated in a UN Security Council resolution and his eventual transfer to the relative comfort of two mainland prisons.  On the brink of a low-intensity civil war for the next ten years, the South Africa outside Mandela’s cell had changed, and, on February 11, 1990, he was released from prison on live television.

Despite his early legal training and the 1952 establishment of Mandela & Tambo, the country’s first black-African owned law firm, Mandela did not receive his law degree until he completed his correspondence courses in his last months in prison.  Nonetheless, Mandela the lawyer contributed more to development of the rule of law in South Africa than any other person in modern times.  In negotiations at the Convention for a Democratic South Africa from 1991 to 1992, he and South African President F.W. de Klerk succeeded in drafting an interim constitution with the strong separation of powers and a bill of rights.  They also established a timetable for multiracial elections and agreed on the structure of a government of national unity, a process that jointly won them the Nobel Peace Prize in 1993.  The new constitution of South Africa, one of the most progressive in the world, entered into force in May 1996.

Though his successor, Thabo Mbeki, was a more experienced administrator, Mandela provided the moral leadership that South Africa needed in its democratic transition during his five-year term as president.  Mandela the reconciler oversaw the establishment of a truth commission with Archbishop Desmond Tutu as chair to investigate crimes committed under apartheid by both sides.  He tackled the huge disparity in wealth, ending discrimination in social services and helping build national infrastructure: by 1999, housing for three million people had been constructed; three million people were connected to telephone lines and clean water, and two million to the electricity grid; 1.5 million children were enrolled in the education system for the first time; and 500 health clinics were upgraded.

In retirement, Mandela devoted himself to HIV/AIDS activism through his foundation, supporting the protests to provide free anti-retroviral drugs to poor South Africans and allow the government to purchase generics produced in Brazil, India, and Thailand.  In the years that followed, he spoke out against the war in Iraq and Mugabe’s continued rule in Zimbabwe, and in favor of South Africa’s 2010 World Cup bid.  He had largely retreated from public life by 2004, but his international statute did not diminish.

He died as he had lived, a fateful mix of youthful troublemaker and eminent patriarch.

Andrew Novak is the adjunct professor of African law at American University, Washington College of Law

Zimbabwe

Post-election, what comes next for Zimbabwe?

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We didn’t know results of Zimbabwe’s Wednesday national elections, but it was clear from the first unofficial reports that it was going to be a huge victory for Robert Mugabe and the ZANU-PF (Zimbabwe African National Union – Patriotic Front), as every ‘election’ has been in the 33 years since Zimbabwe won majority rule and independence from the United Kingdom. zimbabwe new icon

That’s exactly what the Zimbabwe Election Commission has reported over the weekend: Mugabe has defeated Morgan Tsvangirai, the country’s prime minister and leader of the opposition MDC-T (Movement for Democratic Change) by a margin of 61% to 34%, with Welshman Ncube in third place with 2.7%.  In addition, the ZANU-PF has won 159 seats in the 210-member House of Assembly, the lower house of Zimbabwe’s parliament, to just 51 for the MDC-T.  That’s a loss of 49 seats for the MDC-T over the last parliament, and a gain of 59 for the ZANU-PF, giving Mugabe’s party the two-thirds majority it needs to amend Zimbabwe’s newly adopted constitution.

Tsvangirai and the MDC-T have rejected the results as a ‘huge farce’ amid plenty of reason to doubt the election’s fairness, but there are also reasons to believe that Tsvangirai made key strategic blunders that will leave him on the sidelines of Zimbabwean policymaking as the country turns to the question of who might ultimately succeed Mugabe.  It is that ‘election’ — an election with an incredibly small coterie of voters — that will ultimately matter more to Zimbabwe, no matter how rigged Wednesday’s vote. Continue reading Post-election, what comes next for Zimbabwe? →

Zimbabwe

Zimbabwe looks to ghosts past, present and future in key general election vote today

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It’s easy to forget that when Robert Mugabe first came to power in 1980, after a long guerrilla campaign against the white minority rule of Ian Smith in what was then still known as Rhodesia, life in Zimbabwe was optimistic. zimbabwe new icon

A tale of post-colonial hell

Despite his declarations that he wanted a one-party Marxist state as the more aggressive of three competing nationalist leaders, Mugabe (pictured above), the leader of the ZANU-PF (Zimbabwe African National Union – Patriotic Front) overwhelmingly won Zimbabwe’s first majority-rule election with just a hint of the political intimidation and violence that would be a harbinger of Mugabe’s rule to come.  After the initial 1980 vote, with an air of magnanimity, Mugabe ushered in a post-independence era of optimism.  He refused to harass the white minority of Zimbabwe, even retaining Ken Flower, Zimbabwe’s chief intelligence official, who had once been responsible for trying to assassinate Mugabe.  More importantly for the black majority that could now express representative power in the country, Mugabe briskly set about enacting a program of improving education and health care for the masses, with promises of long-awaited land reform to come.

The honeymoon didn’t last long, and Mugabe turned first on his fellow nationalist rebels, the ZAPU (Zimbabwe African People’s Union), whose leader Joshua Nkomo initially served as secretary of home affairs in 1981 and 1982.  Mugabe, who called Nkomo a ‘cobra in a house,’ turned on the ZAPU following a trumped-up scandal over alleged ZAPU arms caches, added that, like a cobra, Nkomo should be attacked and his head destroyed.  Mugabe, who had been clandestinely constructing a secret ‘fifth brigade’ of soldiers loyal to Mugabe alone, began what would be a five-year campaign to subjugate the ZAPU.  The fight took on the ugly shades of ethnic cleansing for the next five years, with the ZANU-PF and military brigades loyal to Mugabe, from the Shona ethnic group, largely harassing — and in some cases using a food embargo with the active goal of starving — the ZAPU supporters, largely based in southwestern Zimbabwe among the Ndebele ethnic group.

About 80% of Zimbabwe’s population of 12.75 million people today is Shona, an ethnic group that predominates throughout Zimbabwe and parts of southern Mozambique and that speaks Shona, a Bantu family language.  But another 15% of the population belongs to the Ndebele ethnic group, which is clustered in the two provinces of Matabeleland, especially in the south (see below a province-level map of Zimbabwe’s 2008 results, which show Matabeleland, even two decades later, is an area of anti-Mugabe sentiment).  Their northern Ndebele language is also a Bantu language, but belongs to the separate Nguni group of languages that also includes Zulu and Xhosa, the former nearly universally understood in South Africa and the latter an important minority language of about one-fifth of southeastern South Africa, and Swazi, spoken largely in Swaziland.

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Notwithstanding the violence, residents in Matabeleland voted overwhelmingly for the ZAPU in the 1985 parliamentary elections, which led to ever more oppression.  Nkomo essentially surrendered two years later, and Mugabe signed a unity agreement in 1987 that formally merged the ZAPU into the ZANU-PF and offered a general amnesty from an otherwise needlessly brutal effort to establish a one-party state.

In the meanwhile, the optimism with which a newly independent Zimbabwe launched had flagged.  Mugabe had already begun his longstanding campaign against white settlers in Zimbabwe with threats of expropriation of land, and the economy had already started its long, slow retreat under the weight of Mugabe’s new social spending, the inefficiencies of state-run industry and the rampant corruption that increased with Mugabe’s patronage-based rule. Continue reading Zimbabwe looks to ghosts past, present and future in key general election vote today →

African Union, Cameroon, Guinea, Madagascar, Mali, Rwanda, Swaziland, Togo, Zimbabwe

Eight sub-Saharan African elections within nine weeks highlights region’s fragile democracy

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In the next three months, eight sub-Saharan African countries will go to the polls to elect a new president and/or parliament, a relative blitz that will not only highlight the region’s growing, if fragile, democratic institutions, but will call attention to many unique issues facing sub-Saharan Africa: unequal and unsteady growth rates, the role of Islamic jihad and security, improving health outcomes, the rule of law and governance standards, and further development of vital infrastructure.african union

Between July 21 and September 30, voters in countries with an aggregate population of around 100 million are scheduled to cast ballots, though of course not all elections are created equal — or conducted on incredibly equal ground.  In some countries, such as Guinea and Togo, it will be a success if the elections actually take place as planned; in other countries, such as Swaziland and Cameroon, elections will be essentially a sideshow of powerlessness.  In  Zimbabwe, where longtime president Robert Mugabe (pictured above) is seeking yet another term after 33 years in power, and in Madagascar, where voters will choose a new president and legislature after a problematic 2009 coup and a four-year interim government, the vote could herald once-in-a-generation leadership transitions.

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Here’s the rundown, in brief:

Togo: July 25togo

Togo, a small west African nation of 7.15 million people, is scheduled to vote for a new parliament, despite the fact that elections have been cancelled twice — first in October 2012 and again in March 2013.  There’s no guarantee that elections this month will actually go forward, either.  While the government and opposition have apparently now reached a deal to hold elections later this month, the composition of the electoral commission remains a major open issue.

Togo’s president, Faure Gnassingbé, took office in 2005 with the support of the country’s military following the death of his father, Gnassingbé Eyadéma, who had served as Togo’s president since 1967.  Despite winning election in presidential votes in 2005 and 2010, he’s seen as somewhat of an authoritarian leader and his party, the Rassemblement du Peuple Togolais (RPT, Rally for the Togolese People) dominates the unicameral Assemblée nationale, holding 50 out of 81 seats.  Unlike its neighbors, there’s neither a Christian nor Muslim majority in Togo — out of every two Togolese adheres to indigenous beliefs, though one-third of its residents are Muslim and one-fifth are Christian.

Continue reading Eight sub-Saharan African elections within nine weeks highlights region’s fragile democracy →

Zimbabwe

Zimbabweans vote on new constitution

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Guest post by Andrew Novak

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Voters in Zimbabwe are expected to approve a new constitution in a referendum on Saturday, which will include sweeping changes to the structure of government and to the bill of rights. zimbabwe new icon

After a contentious four-year process of negotiation and input by the Constitution Select Committee (COPAC), representatives of Zimbabwe’s tripartite power-sharing government have completed a draft constitution that is ready to go to voters.  Earlier talks failed despite a near-agreement in spring 2012, after Zimbabwe’s president Robert Mugabe and the ruling party Zimbabwe African National Union – Patriotic Front (ZANU-PF) pulled out of talks with the two opposition factions of the Movement for Democratic Change (MDC).  More than 70,000 polling officers will be deployed in advance of the Saturday referendum at about 9,500 polling places nationwide.  In addition, international observers are also expected in Zimbabwe, including a delegation from the Southern African Development Community.

The new constitution overhauls the structure of Zimbabwe’s government, imposing term limits on the president, further limiting executive power, and placing the feared Central Intelligence Organization under civilian oversight.  Importantly, the president will no longer have unfettered ability to appoint senators, provincial governors, or members of the judicial services commission, which oversees judicial appointments, although he will still have the ability to appoint members of the tribunal that investigates judicial conduct.

The new constitution ensures fair access to state media to all political parties and places electoral oversight solely under the Zimbabwe Electoral Commission (previously, the state media was dominated by the ruling party and electoral management was divided among several offices).

For the first time, Zimbabwe’s constitution will include social, economic, and cultural rights, including a right to health care and education, although it limits these rights to citizens and permanent residents.  The constitution includes comprehensive protections for women’s rights and the rights of persons with disabilities, but it still bans same-sex marriage; the draft also sharply curtails but nonetheless retains the death penalty.

One noted shortcoming is that power is not devolved to the provinces, so the draft perpetuates the over-centralization of Zimbabwe’s government, although it does successfully limit the ability to suspend constitutional rights during states of emergency.

More generally, the constitution has met criticism for two major reasons: first, it does not completely restrain broad executive power; and second, it was produced in a negotiated fashion between the leaders of the three major parties, lacked sufficient public input, and was rushed to a vote only thirty days after the final draft was published. Continue reading Zimbabweans vote on new constitution →

Kenya

Five reasons why Kenya is unlikely to repeat 2007’s post-election violence

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Everywhere you look, especially in the U.S. and European media, coverage of Monday’s Kenyan election is superseded by one central question.kenya

Will Kenya resort to the kind of ethnic-based political violence that occurred after the last election in 2007?

Of course, the presidential race is tight — the candidate of the ‘Jubilee’ alliance, Uhuru Kenyatta (the son of Kenya’s first president), is essentially tied with the candidate of the Coalition for Reforms and Democracy (CORD) alliance, Raila Odinga (Kenya’s prime minister and the son of Kenya’s first vice president, Jaramogi Oginga Odinga).

Furthermore, the two major coalitions — Jubilee and CORD — are loose patchwork alliances of Kenyan ethnic groups, some of whom were allied in 2007 and some of whom were not, and they pit Kenyatta’s Kikuyu ethnic group against Odinga’s Luo ethnic group.

But it’s still unlikely that Kenya will repeat anything like the 2007-08 violence, which led to the deaths of over 1,000 Kenyans and displaced nearly 200,000 more after incumbent Mwai Kibaki was widely seen to have used vote-buying, vote-tampering and, ultimately, fraudulent vote counting, to retain the presidency against the challenge from Odinga.  Two months of harrowing fighting followed before Kibaki agreed to share power with Odinga, who subsequently became prime minister.

Kenya remains on alert, of course, but scenes like those pictured above — a peace concert last week in Nairobi designed to promote Kenyan unity throughout the campaign and its aftermath — tell us more about the narrative of this year’s Kenyan election.

There’s really no reason to believe that there’s a likelier chance of violence today than there was after the August 2010 constitutional referendum, which came and went without significant tumult.

So while the world (especially Western policymakers and media) holds its collective breath waiting for more turmoil, here are five reasons why it’s a smarter bet that Kenya won’t repeat its 2007-08 experience.  Continue reading Five reasons why Kenya is unlikely to repeat 2007’s post-election violence →

Egypt

El-Mursi Hegazy and the Terrible, Horrible, No Good, Very Bad Egyptian Economy

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While most of the attention on Egypt in the past couple of months has been over constitutional battles — president Mohammed Morsi’s decree asserting extraordinary powers and a hastily called referendum on what’s now become Egypt’s constitution — it’s easy to lose sight of the fact that the Egyptian economy has gone from bad to worse.egypt_flag_new

Indeed, since the initial Tahrir Square revolts began two years ago that ultimately pushed former president Hosni Mubarak out of office, the Egyptian economy has taken a backseat to more philosophical arguments about Egypt’s future and its governance.

But Egypt’s sclerotic economy remains, perhaps, a key ingredient in determining how Egypt’s political and constitutional debate will ultimately be resolved, and it’s probably one of the most important issues that U.S. and international policymakers should be watching as they try to discern what’s happening in Egypt and in the Middle East more broadly.

So with the third round of parliamentary elections in two years set for this spring, which will certainly feature another round of debate about the weighty issues of the role of Islamism in government, the relationship between the presidency and the Egyptian army, the separation of powers in Egyptian government, and the freedoms and rights that should be granted to Egyptians, Morsi’s cabinet reshuffle over the weekend is an opportunity to remember that Egypt’s economic condition will feature prominently as well.

Morsi replaced 10 of the cabinet members (retaining the current prime minister Hisham Qandil, a former minister for of water resources and irrigation), but the most important appointment was a new Egyptian finance minister after what’s been seen as a disappointing six months for Morsi and the Egyptian economy.

Al-Mursi Al-Sayed Hegazy, a professor of economics at Alexandria University and an expert on Islamic finance, will replace Momtaz El-Saeed, who had served as Egypt’s top financial officer since December 2011 and who had served as a budget undersecretary in the finance ministry during the Mubarak era.  We don’t know much more about him other than that, although any change is probably a good sign, given the horrific state of Morsi’s economic policy.

Although Hegazy doesn’t have ties to the old Mubarak regime, and he is seen as much closer to the Muslim Brotherhood (جماعة الاخوان المسلمين‎) than his predecessor, his selection is curious, because he’s not incredibly well-known, and certainly, not someone who would have immediately reassured international investors or the International Monetary Fund (in the way that, say, the appointment of Mohamed El-Erian, the chief executive of investment manager PIMCO would be).

At the top of Hegazy’s to-do list will be to secure a postponed IMF package for up to $4.8 billion in loans — the package was signed in November, but later postponed in December amid the political tumult surrounding the constitutional referendum.

That gives IMF managing director Christine Lagarde (pictured above in Egypt) incredible influence over the Egyptian economy, and it means that the tax increases that Morsi had been preparing before December, not to mention additional austerity measures, are all but certain to be enacted.  With parliamentary elections expected in April, I’m not sure we can really depend on austerity measures being implemented too soon.

On the other hand, if the IMF deal isn’t sealed shortly, Egypt’s economy could face a meltdown that would also harm Morsi and the Brotherhood, which will contest the upcoming elections through its Freedom and Justice Party (حزب الحرية والعدال).  With the country’s foreign reserves rapidly declining, Qatar provided a $2 billion loan to Egypt on Tuesday, with an additional grant of $500 million in immediate aid.  Qatar has taken the most active role in keeping Egypt afloat since the end of the Mubarak era — last September, it committed $8 billion for power, iron and steel investments at the northern end of the Suez Canal and $10 billion for additional tourism infrastructure.

For Morsi, the sweet spot is securing the IMF deal ASAP, with austerity measures expected to begin very shortly after the spring elections — he gets the institutional benefits of stabilizing Egypt’s economy without taking the politically painful steps that the IMF may ultimately require under the deal.

That timing may be fine with the IMF, though, so long as Morsi commits to raising additional revenue and other structural reforms shortly after the April elections.  Certainly, the IMF must realize that a deal will boost the chances for a more stable Egypt.   Continue reading El-Mursi Hegazy and the Terrible, Horrible, No Good, Very Bad Egyptian Economy →

Egypt

Morsi’s Egypt spirals further into chaos with apparent Dec. 15 constitutional referendum

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It’s hard to believe that 10 days ago, Egyptian president Mohammed Morsi seemed firmly in control of events in the Arab world’s most populous country — he had just been instrumental in achieving a ceasefire between Palestinians in Gaza and Israel, and Egypt’s constituent assembly, despite some difficulties, was plodding its way toward the draft of a new constitution for a newly democratized nation.

Today, of course, Morsi stands at the most controversial point of his young presidency, defending the unilateral decree he announced on November 22 asserting extraordinary (if temporary) presidential powers, and hoping to push through a referendum in just 12 days — on December 15 — over a constitution rushed out by the constituent assembly just last week.

Morsi announced the referendum over the weekend, which means there will be no shortage of tumult in the days and weeks ahead.

I’ve not written much about the latest political crisis in Egypt, the latest act in what seems like an unending drama that began with the Tahrir Square protests in January 2011 that pushed longtime Egyptian president Hosni Mubarak from office, through over a year of military rule by the Supreme Council of the Armed Forces (SCAF), the 2011 parliamentary elections and their subsequent cancellation, even more parliamentary elections and their (second) disqualification, and a roller-coaster presidential election that ended with Morsi’s narrow victory over former Air Force commander Ahmed Shafiq on June 24.

Morsi, just over five months into his tenure as Egypt’s president, has argued that the decree is necessary to safeguard Egypt’s strides toward democracy, and if he wins his latest gambit, he’ll have pushed Egypt from the post-revolutionary phase into something more enduring, although at the cost of an Egyptian constitution that remains incredibly controversial and at the risk of having enacted it in a manner entirely inconsistent with democratic norms and the rule of law.

Pro-revolutionary forces took to Tahrir Square last week once again in opposition to Morsi, and pro-Islamist forces counter-protested over the weekend in favor of Morsi.  But with now, apparently, less than two weeks to go until the constitutional referendum, it’s worth taking a look at where each of the key players in the unfolding events stand.   Continue reading Morsi’s Egypt spirals further into chaos with apparent Dec. 15 constitutional referendum →

Iceland

Iceland continues to crowd source constitutional reform with six-question referendum

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Iceland is a tiny country of just barely more than 300,000 people, but it took a famously outsized role in the earliest stages of the 2008 financial crisis when all three of its private banks failed in rapid succession. 

Now, Icelandic voters will go to the polls this Saturday for a six-question referendum to determine whether to reform the country’s constitution and, if so, how.

In contrast to Ireland, where the government nationalized and assumed the debts of its failing banks, Iceland simply allowed its banks to fail.  Although growth has resumed in Iceland (3% in 2011) and unemployment is now falling (hovering at around 6.7%), the Icelandic economy remains quite subdued in contrast from the heady days when Reykjavík was angling to become one of Europe’s investment banking capitals.

In the wake of that crisis, Icelanders have weighed many different reforms, ranging from joining the European Union to joining the eurozone to adopting Canada’s dollar as its currency.  The former prime minister, Geir Haarde, faced charges in front of a special session of the Alþingi (Iceland’s parliament and, given its formation in AD 930, the oldest parliament in world history), and was convicted on one minor charge, although he has faced no formal punishment, aside from widespread disapproval from Iceland’s citizens.

In the same manner, the constitutional reform process, which culminates in the October 20 referendum, also emerged from the crisis.  Reform was one of the key promises made by the broadly leftist coalition under prime minister Jóhanna Sigurðardóttir that took power in 2009 — the coalition includes the Social Democratic Alliance (Samfylkingin), the Left-Green Movement (Vinstrihreyfingin – grænt framboð), the Progressive Party (Framsóknarflokkurinn) and other small parties.  The 2009 election, which followed riots in the typically tranquil island nation, saw the once-dominant Independence Party (Sjálfstæðisflokkurinn) kicked out of power after 18 years in government.

As such, a Constitutional Council of 25 Icelandic citizens has been working on proposals for constitutional reform — including by soliciting input on social media — and it presented a draft constitution to the Alþingi in 2011, which voted to refer the draft constitution to the advisory referendum to be held Saturday.  The constitution would replace the version adopted in 1944 when the country voted to become independent from Denmark.  It would essentially perpetuate the current government structure that includes a largely ceremonial president, a prime minster who heads the government and a president of the Alþingi, but enact other reforms.

Several of the key issues include the removal of the Lutheran Church as the ‘state church’ of Iceland, the addition of more direct democracy rights, the addition of more information rights for citizens, and the inclusion of a provision that would strengthen state control over natural resources not currently under private ownership.

The new constitution is not without controversy — Iceland’s Supreme Court initially invalidated the election of the 25 individuals who form the Constitutional Council, although the Alþingi ultimately upheld their election.  Furthermore, the opposition center-right Independence Party voted against the draft constitution when presented to the Alþingi, and the newly reelected president, Ólafur Ragnar Grímsson, who has served as president since 1996, opposes the constitutional changes because he says they do not garner support from across the political spectrum.  Continue reading Iceland continues to crowd source constitutional reform with six-question referendum →