December 19, 2017
Volume 12, Issue 5
Foreign Policy and International Relations Club
Dış Politika ve Uluslarası İlişkiler Topluluğu
Jerusalem as capital: All the latest The decision of US President Donald Trump to recognise Jerusalem as the capital of Israel has generated a series of reactions in Palestine and around the world.
Israeli forces killed by Israeli forces in the latest protests in Gaza and the occupied West Bank against the US recognition of Jerusalem as Israel's capital. One of the men shot by a sniper in the confrontations was double amputee and actiHere are the latest developments, both on vist Ibrahim Abu Thurayyah. the diplomatic and street front, as of Sunday, December 17: The UN Security Council on Monday will discuss a draft resolution submitted by Egypt stating that the US decisions to change the status of Jerusalem have no legal effect and should be withdrawn.
A mass demonstration was held outside the US embassy in Jakarta on Sunday to protest the US decision to recognise Jerusalem as Israel's capital. Muslim clerics in Indonesia called for a boycott of US products as part of the protest.
Iran accuses US of diverting public attention. On Friday, Iran's ambassador to the UN accused the US of diverting attention from its Jerusalem decision as the US ambassador to the UN presented what it calls "undeniable evidence" that Iran is violating UN resolutions.
EU report outlines Israeli settlement developments. "The E1 plan would entail a severe breach of contiguity between East Jerusalem and the West Bank. Primary among these developments, in addition to demolition orders in the Bedouin village of Khan al-Ahmar, located near E1, are reports of advancement of the northernmost section of the Eastern Ring Road, which would facilitate access to the city Clashes with Israeli forces. Four Palesti- for settlers northeast of the city while nians have been killed by Israeli forces carrying Palestinians from Ramallah to during Friday protests. Two were fatally Bethlehem without entry into Jerusalem" shot in Gaza and two in the West Bank. the report issued on Friday reads.
Fatah has called for a massive demonstration next week to protest against a visit by US Vice President Mike Pence over Washington's recognition of Jerusalem as Israel's capital.
Erdogan seeks to annul US decision. Speaking to crowds gathered in the central Anatolian city of Konya via teleconference, President Recep Tayyip Erdogan said Turkey would first seek annulment of the move in the Security CoPalestinians in mourning. Funerals were uncil, and if that failed it would try at the held on for four Palestinians killed by UN General Assembly.
Hamas has called for a "day of rage" on Friday to protest Trump's Jerusalem decision. Al Jazeera / December 17, 2017
THIS WEEK
EUROPE Page - 2
ASIA & PASIFIC Page - 3
OPINIONS Page 4-5
MIDDLE EAST & AFRICA Page - 6
AMERICA Page -7
TURKEY Page - 8
ECONOMY & BUSINESS Page - 9
ARTICLE OF THE WEEK Page - 10-11
EDITORIAL Page - 12
EUROPE EU Summit closes with agreement on Brexit trade talks and eurozone reform It was confirmed earlier that EU leaders approved the second phase of Brexit negotiations. As the EU summit wrapped up in Brussels, some good news for Britain's Theresa May: Her 27 European colleagues agreed that Brexit divorce talks have made enough progress to move negotiations to phase two. That's when the discussion can widen to include the transition phase and - eventually - a framework for trade deals.Donald Tusk, President of the European Council said: "It is now time for internal EU 27 preparations and exploratory contacts with the UK to get more clarity on their vision".Also on the summit agenda, eurozone reform - a top priority for French President Emmanuel Macron. But Angela Merkel's struggle to form a new coalition meant his plans for a common eurozone budget will have to wait."Our objective is to be able to converge in March because by then this political step will have been reached in Germany and we will be able to build much more clearly together on this subject," Macron said at a joint press conference with Merkel after the summit came to a close. Chancellor Merkel signalled her commitment to moving forward with the plan."Will there be convergence? All I can say is that I want it. And where there is a will there is a way, as we say in Germany. We will find a common solution because Europe needs it."Plans for the eurozone reform include a Eurozone finance minister, monetary fund and deposit guarantee fund. Euronews / December15, 2017.
The European Parliament has narrowly voted against an EU-wide ban on a chemical ingredient widely used in doner kebabs across the continent.MEPs needed an absolute majority of 376 to ban phosphates from food, but just 373 voted in favour, against 272, with 30 abstentions. The Independent / December 15, 2017 EU has rebuffed Israeli Prime Minister Benjamin Netanyahu and refused to follow the US move in recognising Jerusalem as the capital of Israel. Euronews / December 11, 2017 Emmanuel Macron, speaking at the One Planet summit in Paris, has said that the world is “losing the battle� against climate change and issued a plea to the leaders of wealthy countries: The Independent / December 12, 2017
Austrian conservatives reach coalition deal with far right Austria's rightwing People's Party has made a coalition agreement with the more extreme anti-immigration Freedom Party in what they are describing as a "turquoise-blue" coalition. Austria's conservative People's Party (OVP) and the anti-immigration Freedom Party (FPO) reached a coalition deal on Friday, conservative leader Sebastian Kurz said - paving the way for Austria to become the only western European country with a far-right party in government. The two declined to provide any further information on their coalition agreement, reached after less than two months of talks. Strache and Kurz said the details of their agreement would be presented to the public on Saturday, after a meeting with President Alexander Van der Bellen and discussions with their parties’ leadership structures. Euronews / December 15,2017.
EU extends economic sanctions against Russia, agrees to new defense force EU leaders agreed to continue economic sanctions against Russia for another six months. Meeting at a summit in Brussels, the bloc's top politicians also discussed migration and security, revealing national differences. European Union leaders extended economic sanctions leveled at Russia over the country's role in the conflict in eastern Ukraine. "EU united on roll-over of economic sanctions on Russia", European Council President Donald Tusk said on Thursday, as leaders met for a summit in Brussels. The EU extended the sanctions, which target the financial, energy and defense industries and limit Russian access to EU markets, in place in July 2014 after Russia annexed Ukraine's Crimean Peninsula. In addition, leaders of 25 of the EU's 28 members also agreed to fund, develop and deploy armed forces together. The UK, Denmark and Malta were the only countries not to join the deal, known as the Permanent Structured Cooperation or PESCO. The move comes at a time when European politicians are looking across the Atlantic to US President Donald Trump with trepidation. Donald Tusk called the agreement "bad news for our enemies." Deutsche Welle / December 14, 2017
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ASIA & PACIFIC 6,700 Rohingya Muslims killed in one month in Myanmar, MSF says At least 730 young children among people shot, burned or beaten to death in Rakhine state between August and September. More than 6,700 Rohingya Muslims, including at least 730 children under the age of five, were killed in the first month of a crackdown that started in August in Myanmar’s northern Rakhine state, according to Médecins Sans Frontières. The figures released on Thursday by the humanitarian agency are believed to be a conservative estimate and far exceed Myanmar’s official death toll of 400. “The numbers of deaths are likely to be an underestimation, as we have not surveyed all refugee settlements in Bangladesh and because the surveys don’t account for the families who never made it out of Myanmar,” said Dr Sidney Wong, MSF’s medical director. The majority of the people killed (69%) were shot, while others were burned and beaten to death. “We heard reports of entire families who perished after they were locked inside their homes, while they were set alight,” said Wong. More than 640,000 Rohingya people have fled Rakhine since August. Soldiers, police and local militias burned hundreds of Rohingya villages to the ground, and they are also accused of gang-raping women and children, as well as slaughtering civilians indiscriminately. Western countries have condemned the violence as ethnic cleansing, an allegation Myanmar strongly denies. Officials in the country have laid the blame on “extremist terrorists” belonging to a new Rohingya militant group. A Myanmar government spokesperson could not be immediately reached for comment. The Guardian / December 14, 2017
China has created military facilities about four times the size of Buckingham palace on contested islands in the South China Sea, a new report has said, calling the build-up a “slow-moving crisis” in one of the world’s most dangerous flashpoints. The Guardian / December 15, 2017
A surprise alliance of Maoist former fighters and the Communist Party in Nepal has garnered a surprise victory and a huge defeat for the Nepali Congress party. Al Jazeera / December 15, 2017 Power has passed to a fourth generation of India’s most influential political dynasty after the election of Rahul Gandhi as the president of the Indian National Congress. The Guardian / December 11, 2017
Taiwan sends aircraft, ships to 'monitor and deal with' Chinese transport plane The issue of Taiwan has repeatedly been the reason for tensions between the Trump administration and Beijing since the election of the US president. Taiwan has sent aircraft and ships to "monitor and deal with" a Chinese mainland Yun-8 transport plane that has conducted a long-haul flight through the Bashi Channel and Miyako waterway after which it returned to its base, according to the island's Defense Minister Feng Shih-kuan. The announcement comes in the wake of tensions over Taiwan as Beijing has accused Washington of meddling in its internal affairs after President Donald Trump signed the National Defense Authorization Act into law earlier this week, which laid the grounds for future mutual naval visits between Taiwan and the United States. Sputnik / December 17, 2017
UN Under-Secretary expects Pyongyang to 'signal' readiness to prepare talks The United Nations expects North Korea to “signal” willingness to prepare the negotiations on the settlement of the nuclear crisis, according to Jeffrey Feltman, the UN UnderSecretary-General for Political Affairs. Jeffrey Feltman, the UN Under-Secretary-General for Political Affairs, said on Wednesday following his visit to North Korea that the United Nations expects Pyongyang to “signal” willingness to prepare the negotiations on the settlement of the nuclear crisis, even though North Korean leadership did not offer any commitments on the issue. “We emphasized to the DPRK (Democratic People's Republic of Korea) officials that we really believe that they need to signal that they are willing now to go in different direction, to start some kind of engagement, to start talking about talks. They listened seriously to our arguments, they explored them with us. But they did not offer any type of commitment to us at that point. They have to reflect on what we said with their leadership,” Feltman told reporters. According to Feltman, North Korea has agreed with the United Nations that it is important to prevent war from happening on the Korean peninsula amid the escalation of nuclear crisis. Sputnik / December 12, 2017 3
OPINIONS
A Roaring Persian Lion in the Middle East Syrian Arab Republic and Hezbullah in Lebanon were the closest threats to Israel. That is why Israel has been supporting the anti-regime forces in Syria for 7 years.Although Israel had succeeded to get Syria out of the way, it indirectly caused an old power to come out the scene once again. Conflicts and state of terror in Syria and Iraq are about to end with a major Iranian political and military influence in the Middle East.In this opinion piece, I will examine the increasing Iran influence in Middle East. Iran first survived an 8-year war against Iraq between 1980 and 1988.After that, Iran succeeded in dealing with an American embargo that had been in service for 35 years until USA repeNazım Çınar Duvaryapar aled these sanctions in 2016.It was not long after Iranians realized that they had to build a defence line beyond their borders.If they couldn’t protect Damascus or Beirut, security of Tehran c.duvaryapar@gmail.com would be in danger.Therefore, they tried to be effective in political, military and economical aspects in the neighboring countries. Following a rather realistic foreign policy, Iran even cooPolitical Science and perated with the United States from time to time. During the 2001 Afghanistan war, they proviPublic Administration ded intelligence to the Americans in order to defeat Taliban.Two states also cooperated to overthrow Saddam Hussein during the 2003 Iraq invasion.
It would be very appropriate to talk about the tools Iran uses to create this domination. Let me start by introducing Islamic Revolutionary Guards and its elite unit Quds Force led by legendary general Qasem Soleimani. Revolutionary Guards or by their popular name pasdaran succeeded in turning all scenarios to the benefit of Persians in Syria, Lebanon, Yemen and Iraq. Revolutionary guards are not only well trained in the military field, but also economically and politically comprehend. In fact, the main actor that determines Iran's foreign policy is the revolutionary guards.Although some of you know Soleimani, I will briefly explain some of his achievements.After the 2003 invasion, he organized Shiite groups in Iraq against Americans. In 2006, he commanded the Hezbollah forces against Israel in Lebanon which led to be the only war in which Israeli forces were defeated.When he came to sight in Aleppo in December 2016, the Syrian flag fluttered over the city after four years. After taking the Kirkuk from Barzani, he took over the last stronghold of Islamic State in southeast Syria. As I have mentioned in the beginning, the fall of Syria caused the rise of Iran and Hezbollah. Commanders of Iraqi Hezbullah were seen in Golan heights under Israeli occupation.In addition, now Iraq under Iran influence due to defeat of Iraqi Kurds and Barzani backed by USA. The original plan was to defeat Syria, but Syria did not surrender thanks to Iranian and Russian support and united under Bashar Assad’s leadership.Turkey, Saudi Arabia, Qatar, Jordan, United Arab Emirates and Israel could not meet their expectations. It was supposed to be the first step to overthrow Iranian dominance.At the moment, Iran has succeeded in forming a Shiite crescent in the Middle East on the contrary to these expectations. It seems that Iran has succeeded in sieging Israel and defeating Saudi Arabia at the same time. Saudis which were checkmated in Lebanon and Yemen are mostly preparing for the new stage of the game.On the other hand, Israel has been living in the middle of an enemy sea for many years. This Israeli achievements are not a coincidence.Soon, we will start to watch the new scene of the game.However, it must be noted that the Persian Lion backed by Russian Bear indeed looks very strong and advantageous.
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OPINIONS The Future of the European Union In the Hands of a United Defence Force? The year 1950 saw a historical turn for the future of Europe with the establishment of the European Defence Community; or, that was what could have been, if the establishment of the community had been ratified by the French Parliament. However, this initial failure to form a pan-European defence act would not mean an end for the idea and the discussion to establish such a community. With the Maastricht Treaty and the establishment of the European Union in 1992, such discussions were ignited once more. 25 years later, on the Eleventh of December, 2017, these discussions were finally formalized within the European Council with 25 member states being signatories, forming the Permanent Structured Cooperation (PESCO). İsim, Soyisim Oğuzhan Sabuncu The PESCO, first set out in the 2009 Lisbon Treaty, is the EU’s largest step to form a supE-mail ranational European army to defend the Union against external threats and has the potential sabuncuoguzhan@gmail.com to overcome the shortcomings of the EDC of 1950. The EDC, despite being a solid idea against the growing Soviet threat and prevention of West Germany to remilitarize and pose yet Political Science and Public Administration another threat to the world, was putting a rather large pressure on the sovereignty of the member states. The PESCO, being an institution of the EU and also having a strong intergovernmental program, seems to have satisfied the member states in that regard. Concerns still continue, however; as the member states still have core disagreements on what the PESCO will eventually become. Despite rather small concerns among the member states, the PESCO has had a relatively strong kick-start, after the NATO has backing the formation of the project, unlike previous efforts to unite the European defence forces. However, Secretary-General of the NATO, Jens Stoltenberg, has stated that the EU has to “avoid duplicating NATO’s capabilities”, meaning that despite the support of the NATO of the formation of such a defence force, it still sees itself as the overarching defence force of the Western democracies –which actually no longer faces a communist threat as imposing as what the USSR had once posed, before its collapse. However, this organization may actually have a hidden agenda behind it. The EU has been struggling with a “European identity building crisis” even before its formation in 1992. Despite the best efforts of the policy-makers and implementers of the EU in terms of cultural and educational identity building, the feeling of ‘Europeanness’ has been an ever-faltering notion among the citizens of the member states. In the era of rising nationalism and ever-growing militaristic sentiments, the Commission and the Council may have seen forming an EU-wide military force as an opportunity that must not be missed. This attitude could be observed clearly if we look at how all chief legislators and executors of the EU have regarded this organization, such as “the sleeping beauty of the Lisbon Treaty, the beginning of a story, common work on something very big, bad news for our enemies” and so on, showing their intentions rather implicitly but quite strongly. In conclusion, an observer of the EU may finally say that the Union is progressing towards a unified defence force faster than it ever has throughout the European integration process. 25 member states out of the 27 (excluding the United Kingdom which is set to leave the Union in March 2019) have come to reach a consensus to form this organization. The PESCO, while it should not be heralded as the saviour of the Union, could be regarded as being a ‘historic’ agreement in the future, if it happens to be successfully implemented. It may hasten the integration process by integrating the outlying member states, it may boost the creation of the European identity the Union has always strived to create by using the militaristic sentiments of the citizens of the member states, and finally, it may speed up the process of the establishment of a “United States of Europe” someday in the unforeseeable future.
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MIDDLE EAST & AFRICA Palestinians killed in protests against Jerusalem move The death toll has risen to four as Israeli forces violently crack down on Palestinian protesters in besieged Gaza and the occupied West Bank and East Jerusalem. Local media reported that an 18-year-old Palestinian, Muhammad Amin Aqel al-Adam, died after being shot by the Israeli military during Friday protests near the West Bank city of Ramallah. Adam allegedly attempted to attack Israeli forces. Another Palestinian in the occupied West Bank was killed under similar circumstances hours earlier. Two Palestinians in the Gaza Strip died after being shot by Israeli forces during border protests. The protests are in response to US President Donald Trump's recognition of Jerusalem as Israel's capital on December 6. One of the men killed, 29-year-old Ibrahim Abu Thurayya, had lost his legs in previous Israeli offensives on the blockaded strip. Palestinians have taken to social media to honour Abu Thurayya. Palestinians are also sharing a video of slain protester Abu Thurayya calling on Palestinians to protest Trump's recognition of Jerusalem as Israel's capital, a move that has been widely condemned by world leaders. Al Jazeera's Harry Fawcett, reporting from occupied East Jerusalem, said a call to action by Palestinian groups and a unified response by Muslim countries had helped keep the protests going. Al Jazeera / December 15, 2017 Saudi Arabia is to have its first public cinemas in more than 35 years, after the government announced on Monday that it was lifting its ban on movie theaters.It will not be a free-for-all, and the type of films that will be screened is likely to be tightly circumscribed. Forbes / December 11, 2017
Israel's Intelligence Minister Yisrael Katz has invited Saudi Arabia's crown prince to visit Israel in an interview with a Saudi news outlet. Al Jazeera / December 14, 2017 Syrian Arab Army led by elite Tiger Forces has launched the longawaited Idlib offensive.Sources in the frontline talk about heavy Russian aircraft bombardment..Idlib is one of the last strongholds left in the hands of the opponent groups. AlMasdar News / December 15, 2017
Qatar calls on US to reverse Jerusalem move Qatar has called on the United States to reverse its decision recognising Jerusalem as Israel's capital. Foreign ministry spokesperson Lulwa Al Khater said on Wednesday that Qatar denounces US President Donald Trump's move and warns the international community of its consequences. International forums have already rejected Trump's position, Al Khater said. Khater said Qatar will work "at both the Arab and Islamic levels" to ensure United Nations resolutions on Jerusalem are upheld in the wake of the Washington's policy change, citing Doha's ties with the Arab League and OIC. Al Jazeera / December 14, 2017
Putin orders withdrawal of Russian troops in visit to Syrian base The Russian leader made the announcement at the Hmeymim air base in Syria’s coastal province of Latakia, the heartland of Syrian President Bashar Assad‘s Alawite minority. In the televised speech, Mr Putin said he had ordered the military to withdraw a “significant part” of the Russian contingent in Syria. “Friends, the motherland is waiting for you,” he said. “If the terrorists again raise their heads, we will deal such blows to them they have never seen.” Vladimir Putin, who confirmed last week he would seek re-election in 2018, also announced that Russia would keep its Hmeymim air base in the Latakia Province as well as its naval facility at Tartous “on a permanent basis”. After this speech first Russian troops began to return to their permanent bases in Russia.The air base has served as the main foothold for the air campaign Russia has waged in support of Bashar Assad. Russia launched its air campaign in Syria at the end of September 2015 when Mr Assad’s government was teetering on the brink of collapse, and quickly changed the course of the conflict in its favour. The Independent / December 11, 2017
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AMERICAS Trump initiated Putin call in the wake of economic praise President Donald Trump said Friday that he spoke with Russian President Vladimir Putin on Thursday to thank him for comments he made about the President's efforts to grow the American economy. Trump, speaking with reporters at the White House before he left to address a graduation ceremony at the National FBI Academy, said the call was "great." He also once again denied any collusion between Trump's 2016 campaign and Russian operatives. The ongoing investigation into the Trump campaign's role in Russia's 2016 election meddling by special counsel Robert Mueller has loomed over the Trump administration for months, angering the President who sees the probe as nothing more than an attempt to undermine his credibility. "He said very nice things about what I have done for this country in terms of the economy, but he said also some negative things in terms of what is going on elsewhere," Trump said. "The primary point was to talk about North Korea." He added: "We would love to have his help on North Korea. China is helping. Russia is not helping. We would like to have Russia's help, very important." Trump's relationship with Russia has been complicated ever since the businessman-turned-politician stepped into the Oval Office in January, given the ongoing investigation into his campaign's ties to Moscow. US intelligence agencies have concluded that Russia, at Putin's direction, meddled in the 2016 election to help Trump and hurt Democratic nominee Hillary Clinton. CNN / December 15, 2017 The Pentagon has been running a secret multimillion dollar programme to investigate Unidentified Flying Objects (UFOs), US media report. Only a small number of officials were aware of the programme, which began in 2007 and was reportedly closed in 2012. BBC / December 17, 2017 A Canadian billionaire and his wife have been found dead at their home in Toronto in circumstances that police described as "suspicious". Mr Sherman was the founder and chairman of pharmaceutical giant Apotex, which sells generic medicines around the world. BBC / December 16, 2017 Argentina fired the head of its navy a month after a submarine disappeared in the South Atlantic with 44 crew members onboard, a government spokesman said on Saturday. The New York Times / December 16, 2017
Peru's President to face impeachment proceedings Peruvian President Pedro Paulo Kuczynski has been linked to one of Latin America's biggest corruption scandals, authorities say. Peruvian lawmakers decided to move forward with proceedings to impeach President Pedro Pablo Kuczynski amid allegations of bribery in connection to one of the largest corruption scandals in Latin America. On Friday, lawmakers voted 93 to 17 in a motion to initiate the process of impeachment against Kuczynski. The President is expected to defend himself to lawmakers next Thursday. The vote comes a day after President Kuczynski said he would not resign amid the "false" allegations that accuse him of receiving more than $4 million from the Brazilian construction firm Odebrecht. CNN / December 16, 2017
Mexico strengthens military’s role in drug war, outraging critics Members of the Mexican armed forces patrolling in Acapulco this month. Mexican lawmakers on Friday passed a law that strengthens the military’s role in fighting organized crime. Mexico’s Congress on Friday passed a law that strengthens the military’s role in fighting organized crime, defying an outcry from human rights groups, police experts and even United Nations officials who warned that the measure will lead to abuses. The law, which President Enrique Peña Nieto is expected to sign, sets up a legal framework to deploy soldiers in regions controlled by drug gangs. The law’s supporters argue that it ends a dozen years of improvised orders that place soldiers on the streets with no clear mission and no deadline. “This bill effectively displaces the Constitution,” said Alejandro Madrazo Lajous, a constitutional expert at the CIDE, a Mexico City university. “It allows the president to unilaterally militarize any part of the country for any time he considers necessary or adequate without any control either by congress or the judiciary.” Unlike the rest of Latin America, where long military dictatorships have left indelible scars, Mexico has had civilian control over the armed forces for the past century as part of an unspoken agreement that allows officers latitude over the areas they command. The New York Times / December 15, 2017
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TURKEY Turkey worst in world for jailed journalists for second year CPJ report Turkey was ranked as the country where the most journalists are imprisoned in the world for a second consecutive year, followed by China and Egypt, according to the latest annual report by the Committee to Protect Journalists (CPJ). The report, published by the New York-based organization’s editorial director Elana Beiser on Dec. 13, CPJ stated there were 262 journalists in jail across the world as of December 2017, a record high in what it called “a dismal failure by the international community to address a global crisis” in terms of press freedom. The report showed that Turkey ranked top in terms of imprisoned journalists for the second year in a row, recording 73 journalists currently in jail compared to 81 last year “The crackdown on the Turkish press that began in early 2016 and accelerated after a failed coup attempt that July—which the government blamed on an alleged terrorist organization led by exiled cleric Fethullah Gülen—continued apace in 2017. Authorities accused some journalists of terrorist activity based solely on their alleged use of a messaging app, Bylock, or bank accounts at allegedly Gülenist institutions,” the report stated. The number of imprisoned journalists rose to 41 from 38 a year earlier in China and in Egypt, where the number of journalists in prison fell to 20 from 25 last year, according to the CPJ report. Hurriyet Daily News / December 14, 2017
The ruling Justice and Development Party ,the main opposition Republican People’s Party and the Nationalist Movement Party on Dec. 13 called on the international community to recognize East Jerusalem as the capital of Palestine. Hurriyet Daily News / December 14, 2017
The İYİ (Good) Party has suggested an alliance between opposition parties in the second round of the 2019 presidential elections may happen in order to reduce President Recep Tayyip Erdoğan’s chances of winning. Hurriyet Daily News / December 15, 2017 Some 75,000 Syrians have returned to lands liberated from the ISIL and YPG after operations led by the Turkish army, Prime Minister Binali Yıldırım said. Hurriyet Daily News / December 15, 2017
Ataşehir Mayor Battal İlgezdi removed from office The removal from office of CHP Ataşehir Mayor Battal İlgezdi has been decreed by the Ministry of the Interior. The CHP Istanbul Provincial Chair’s Office called on all MPs, sub-provincial chairs, mayors and members to congregate in front of Ataşehir town hall building at 19.00 hours. CHP Istanbul Provincial Chair Cemal Canpolat, making an announcement in front of the town hall, said, “Do whatever. The removal from office of Ataşehir Mayor Battal İlgezdi has been interpreted by the CHP as being a “revenge operation” for General Chair Kemal Kılıçdaroğlu’s disclosure of the Isle of Man documents and the intelligence agency briefing to Erdoğan on Reza Zarrab. Cumhuriyet / December 10, 2017
Organization of the Islamic Conference gathers in Istanbul for Jerusalem High-level representatives, including some heads of states from the 57-member Organization of the Islamic Conference (OIC), will come together on Dec. 13 in Istanbul at a summit to consider a joint stance against United States’ recent recognition of Jerusalem as the capital of Israel. Turkey, as the term president of the OIC, will host leaders from Muslim-majority countries on Dec. 13, with a joint position of Muslim countries to be announced under the title of the Istanbul Declaration. The move comes after U.S. President Donald Trump instructed the State Department to move the U.S. Embassy from Tel Aviv to Jerusalem, in line with the 1995-dated Jerusalem Embassy Act. Turkish President Recep Tayyip Erdoğan will preside over the OIC meeting in Istanbul and will address the opening and closing ceremonies of the summit. Hurriyet Daily News / December 12, 2017
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ECONOMY & BUSINESS The markets’ apparent calm over Brexit is deceptive FOR all the sound and fury of the Brexit negotiations, it has seemed at times as if the financial markets have been barely affected. But as with the swans that glide on the Thames, a serene surface conceals some frantic paddling underneath. The pound is the most reliable indicator of the Brexit mood. A rule of thumb is that, if the headlines point to a “hard” Brexit (creating trade barriers with the EU), sterling will fall; signs of a “soft” Brexit (something that is close to the current relationship) will cause it to rise.But some feedback processes are at work. The big fall in the pound in the immediate aftermath of the referendum has led to a gradual rise in imported inflation. The annual inflation rate hit 3.1% in November, requiring Mark Carney, governor of the Bank of England, to write to Philip Hammond, the chancellor, to explain why the target (of 2%) had been missed. The bank has already raised interest rates once. More rises may follow, and expectation of such rises supports the pound.The need for monetary tightening is not simply a result of higher import costs, which might prove temporary. More worryingly, the Bank thinks that the trend rate of growth of the British economy has fallen (a view it shares with the Office for Budget Responsibility, the government’s forecasting arm). In part, this is because Britain faces a more difficult future after Brexit; in part it is a recognition that the economy’s productivity was dented by the 2008 financial crisis. The Economist / December 16, 2017
US industrial production rose 0.2% in Nov, vs 0.3% increase expected
Turkey's 11% economic growth fuels expectations of rate hike
U.S. industrial production rose 0.2 percent in November Third quarter expansion comfortably beats economist est. due to a rebound in extracting oil and natural gas after a 8.5% .Household spending grew 11.7%; public spending up stoppage due to Hurricane Nate. 2.8% The Federal Reserve said Friday that mining activity climbed 2 percent last month, while manufacturing activity rose 0.2 percent. Production of machinery and primary metals contributed to gains in the factory sector, while the overall growth for industrial output largely came from restarting oil and natural gas drilling.Production at utilities fell 1.9 percent.During the past 12 months, total industrial production has increased 3.4 percent.Along with greater mining activity, factories are showing signs of strength. Factories are using more of their capacity and hiring more workers. Manufacturers have added 189,000 jobs over the past year, according the employment report released last week. CNBC / December15, 2017
Turkey’s economy grew faster in the third quarter than any other of the world’s 20 biggest economies as household spending and exports surged, stoking expectations that the central bank will increase borrowing costs to curb inflation. Gross domestic product expanded 11.1 percent in the three months to Sept. 30 from a year earlier, the fastest pace in more than six years, according to official data released on Monday. The median estimate of economists in a Bloomberg survey was 8.5 percent.Raising borrowing costs could put the central bank on a collision course with President Recep Tayyip Erdogan, who said in November that the bank was on a “wrong path” in its fight against inflation, and reiterated his unorthodox view that lower borrowing costs would better address price gains.Turkey increased spending on everything from wages to investments, and extended cheaper credit to companies to counter the impact of last year’s failed coup attempt on the economy. The annual comparison with the third quarter in 2016, when the attempt to topple Erdogan caused the economy to contract, helped boost Monday’s figures. Bloomberg / December 11, 2017
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ARTICLE OF THE WEEK Trump, tribalism and the end of American capitalism America's first businessperson in the White House is doing more to destroy the American capitalist system than any previous president.
A strong market economy needs a robust middle class, mechanisms for upward mobility, and clear rule of law to grow and sustain itself over time. US President Donald Trump has little allegiance to any of these.
William G Moseley William G. Moseley is a professor of geography at Macalester College in Saint Paul, Minnesota, US where he studies and teaches about environment and development.
In the rush to fulfil campaign promises and sate the greed of corporate backers, Trump and his Republican enablers are re-organising US tax policy in favour of the rich, gutting regulations and higher education, and ignoring long-standing norms and protections against conflicts of interest. This new-found, but fleeting, Republican power has been made possible by the party's condoning of a resurgent American tribalism known as racism. What is poorly understood by many conservative Republicans is that unfettered capitalism will eventually destroy itself. Left to its natural trajectory, capitalism tends to concentrate wealth and power in the hands of a few, and the system implodes on itself because of limited demand from an emaciated middle class and shrinking competition in the marketplace.
Some intervention by the state, in the form of wealth redistribution and regulation, curbs the worst excesses of the system and allows it to be sustained over time. The GOP tax legislation, likely to arrive on Trump's desk in the coming days, massively cuts taxes for corporations and the wealthiest individuals in the country. While some middle-class households will see tax cuts in the short term, many will see just the opposite. The net effect is an end to progressive taxation in America and increasing wealth concentration at the top of the economic ladder. Over time, this new tax policy will effectively stifle consumer demand in the US. In the early 20th century, carmaker Henry Ford understood that the US economy worked best when you have a thriving middleclass. In fact, part of his rationale for raising wages was his implicit understanding that the company needed a middle class consumer base that would buy the Model T vehicles that Ford plants were producing. Unfortunately, such enlightened self-interest is rare. It's not that business people don't understand this, but they want to have their cake and eat it too. In other words, business owners want a prosperous and educated middle class that is neither supported by more robust wages nor redistributive taxation policies. The result in the US, until recently, has been an oppositional political system with one party, the Democrats, largely supported by workers and labour unions, and the other, Republicans, mostly buttressed by business interests and the wealthy. The Democratic Party worked for higher wages, redistributive taxation, robust public education, and health and safety regulations, whereas the Republication Party sought a leaner government and limited taxation. As long as the two sides were relatively balanced, a modicum of redistributive taxation, public investment, and regulation curbed the worst excesses of the capitalist system and kept it running smoothly. Trump's evil genius was to overtly tap into the dark world of racism. Racism functions a lot like tribalism in other contexts because it fosters pre-capitalist thinking. Rather than voting along classbased lines formed by shared economic interests, both tribalism and racism foster group thinking that cuts across class lines. As such, poor white workers are led to believe that they have more in common with their white capitalist bosses than their fellow workers of colour.
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ARTICLE OF THE WEEK Thanks to racism, capitalist tycoons have been able to bamboozle poor working-class whites into supporting their agenda to jettison the moderating influences of progressive taxation and regulation that actually sustains a market economy over time. Also in the GOP tax plan are a series of taxes on university education. These include a new tax on graduate tuition waivers, a key way many post-graduates in the US are able to attend school, as well as plans to scrap tax deductions related to university student loans.These proposals would not only stifle the engine of the US' knowledge economy, but they would destroy a key means of upward mobility in the country. Last but not least, the Trump administration's blatant nepotism and disregard for long-standing precedents on avoiding conflicts of interest signal a retreat from the rule of law, abandonment of meritocracy, and deepening crony capitalism. Living in a country where the president remains heavily invested in businesses he promotes regularly and has a son-in-law as a key adviser, does not feel like the country I used to know as the US. While the US business sector may always seek to lower costs and maximise profits, it also needs a robust consumer base, a well-educated workforce, and an even-handed state to apply rules and regulations and hold all actors to the same standard. Although businesses may chafe against the exigencies of the modern welfare state, more enlightened entrepreneurs understand that they have to pay their dues to sustain the system that feeds them. In contrast, it is the bottom-feeders in the capitalist system that tend to focus on short-term profits and ignore the health of the system in which they are operating. These actors would just as soon as feast on the goose that lays the golden egg because they can't see past the foie gras and imagine a better future for everyone. Sadly, such an actor is now running my country, and he is attempting to unwind history and return us to protocapitalism. There now appear to be at least three possible futures before us. The first and the most unbearable is that Trumpism continues to spread and the world further regresses into tribalism, primitive accumulation and environmental decline. The likes of Poland and the Philippines suggest that this is a possibility. The second is that cooler heads eventually prevail in the US, Trump is forced out, and Republicans are held somewhat accountable for their support of a madman. Under this scenario, the worst policy stumbles of the Trump regime are at least partially unwound, and the US somewhat recovers from this very un-glorious moment. The third possibility is that the US economy and society is so badly wounded by Trumpism that it never recovers and other nations recognise and avoid such blunders. These countries may move on to be the world's new global economic powers. Under this scenario, American capitalism will be remembered as an era - an age abruptly ended by a backward president. Retrieved from http://www.aljazeera.com/indepth/opinion/trump-tribalism-american-capitalism-171213074012028.html
A supporter raises his cowboy hat as US President Donald Trump speaks about tax reform during a visit to Loren Cook Company in Springfield, Missouri, US [Kevin Lamarque/Reuters] 11
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