Afghanistan, Britain, Foreign Affairs, Government, NATO, Politics, United States

Afghanistan must not be allowed to slip back into its old ways…

AFGHANISTAN

Intro: As British troops prepare to exit Afghanistan after more than 12 years of bitter fighting, a bilateral agreement between Afghanistan and the West will be needed to prevent the Taliban becoming a major political force again. That would ensure our sacrifices have not been made in vain

Task Force Helmand, the military campaign to bring stability to the south of Afghanistan, ended this week with US Marines assuming responsibility for the province. Whilst it may be argued that the British mission has not been an overwhelming success, some of what has been done has led to tangible improvements in the lives of ordinary Afghans – particularly in education, health care and security. Some 350,000 Afghans have been trained by western forces in a policy designed to allow them to take full control of their own security.

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The conflict in Afghanistan has lasted more than 12 years – a bitter war that has resulted in the loss of 448 British lives, with thousands more that have suffered serious injury. It will be with a collective sigh of relief that Britain’s military engagement in southern Afghanistan is now finally drawing to a close. Following a two minutes silence for the fallen this week, it was fitting that the presiding padre overseeing the religious ceremony paid tribute to our ‘bravest and best’ that had ‘borne the cost of freedom for others.’

Despite areas of progress that have been made much of the country is still threatened by the Taliban-led insurgency. With this is mind, there will be many who will question just how much has actually been achieved in Helmand province and elsewhere. The amount of treasure plundered, in terms of human sacrifice and the enormous amounts of money expended, has been a high price to pay. The words used in 2006 by John Reid, the then defence secretary, that British troops would be able to complete their mission ‘without a single shot being fired’ have turned out to be complete balderdash when compared now to the actuality of events on the ground over the past 12 years. However, the intensity and ferocity of the fighting, often with ill-equipped and under-manned British troops in a desperate battle for survival, has led the British commander of UK forces, Brigadier James Woodham, to conclude that we ‘have given the Afghans a chance.’

That, no-doubt is the case, but Afghanistan still has a long way to go before it reaches anything approaching long-term stability. This weekend, the country will hold its third presidential elections since western forces overthrew the Taliban led government in 2001. Hamid Karzai, the country’s unpredictable and impulsive president, is ineligible to run, but the outcome of the election could provide an opportunity for Western governments to agree terms with Kabul in maintaining their support for Afghanistan’s fledgling security forces, once all NATO combat operations conclude at the end of this year. Mr Karzai has refused to sign a bilateral security agreement with Washington – the objective of which would be for the US and its allies to remain in a supporting role beyond 2014, as well as providing financial assistance – which, undoubtedly, will be needed if Afghanistan is not to slip back into its old ways. If the Taliban were to re-establish itself as a major political force the country could quickly become a safe haven again for terrorist groups such as al-Qaeda.

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Economic, Europe, Government, History, NATO, Politics, Russia, Society, United States

America has a role in supporting Europe. It isn’t about to turn its back…

AMERICA & EUROPE IN COUNTERING THE THREAT FROM RUSSIA

A European crisis has, once again, brought the ambitions of a second-term American president into the sharp light of day. Mr Obama could never have wished that he would land in Europe with the sole task of rallying some of his country’s oldest allies against the expansionist threats posed by Vladimir Putin of Russia. And yet, this is precisely the situation Barack Obama finds himself in.

Mr Obama arrived in The Hague and described Europe’s idiosyncratic collection of comatose economies as the ‘cornerstone of America’s engagement with the world’. His presence was enough to underline the realities of a new and emerging Cold War message: one to which America remains the ultimate guarantor of European security.

Whatever the intrinsic American wishes are, America cannot abdicate from that role. While history may reflect back the words of Franklin Roosevelt who pledged that America would never send US troops to fight in Europe, or even during Mr Obama’s own reign in office when he pronounced America’s ‘pivot’ and orientation towards Asia, Putin’s provocative stance and actions in Crimea has made such a profound difference to how the US reflects upon Europe. The United States accepts that the threats posed by Russia are serious and interconnected, and is turning away from the Pacific to behave in a way that every president from Truman to Reagan would have recognised.

Predicting what Putin will do next to enhance and strengthen his Russian Federation is difficult to determine. As a former KGB officer, he knows the high value placed on keeping his intentions as mysterious and covert as possible.

Psychology is also at play. The flint-eyed incumbent of the Kremlin strongly believes that Mr Obama is a president motivated far more by what is happening in the Pacific. To Mr Putin’s eye Barack Obama is a leader that is fundamentally uninterested in Europe and viscerally reluctant to use force of any kind. The Russian leader observed how Mr Obama steered clear of intervening in Libya by allowing Britain and France to claim the credit for toppling the Gaddafi regime. America’s role in that campaign was leadership from the back, rather than the front dynamism many would otherwise have expected.

And no-doubt the Kremlin hardliner would have taken special note when Bashar al-Assad made a mockery over Mr Obama’s ‘red lines’ and gassed hundreds of innocent Syrian civilians without paying a military price.

Mr Putin may even have thought this was an American president who could be pushed around. The disarmament treaty with Moscow, signed in 2010, for example, imposed far greater cuts on the US arsenal than was made to the Russian inventory.

Russia has remained committed in driving a wedge between Europe and America. Along with its actions in Ukraine, Russia has demonstrated the compelling necessity of NATO and the Atlantic Alliance. Such miscalculations may even impel Europe to realise the mistakes of continuously running down its defences.

America and Europe seem certain to respond with skill and resolve. Such a partnership can only make the world a safer place.

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Britain, Economic, European Union, Financial Markets, Government, Politics, Russia, Society, Ukraine, United States

What will happen next following the crisis in Ukraine?

ECONOMIC REALITIES

Intro: Economic havoc and a global slump could materialise from the crisis in the Crimea

So far, financial markets in the West have remained remarkably undisturbed in the face of the crisis unfolding in Ukraine. Following Crimea’s referendum at the weekend, which effectively sealed Vladimir Putin’s grip of the Ukrainian peninsula, sanctions were always likely to follow. Whilst, then, we may anticipate just how long the sanguine calm will continue, Western leaders should also be careful of supplanting diplomacy with threats to Russia that they are unwilling or unable to back up. The decision by the European Union and United States to impose sanctions on several Russian officials is a limited response to the breach of international law that has taken place in Crimea. The measures include travel bans and the freezing of assets against individuals who were deemed to have played a major role in the referendum – a vote, officials say, in which 97 per cent of voters backed a breakaway from Ukraine and, instead, opted to join the Russian Federation.

In the years since the dissolution of the Soviet Union, Russia has steadily become more integrated into the global economy. We know that many rich Russians have shifted their gains (ill-gotten or otherwise) into more stable and secure environments, such as investing on the London Stock Exchange or by diversifying their stocks in the UK property market. In actual fact, more money has flowed into Russia than out. According to data from the Bank for International Settlements, foreign owned banks have lent the country at least $260 billion. That is nearly double the value of its estimated assets in the West. As a consequence, Russia’s bilateral trade has risen to more than $100 billion annually. Almost a third of Europe’s gas, coal and oil imports come from Russia, and there has been a huge upsurge in direct investment by foreign firms.

Rhetoric used by the international community implied that there would be consequences if the referendum went ahead while the peninsula was still occupied by Russian troops. No doubt, Mr Putin will have considered the penalty a price worth paying. The question now, though, is what will happen next. Washington insists the screw will be tightened if the situation were to escalate in Ukraine – a distinct possibility that could happen fairly swiftly since the aim of the Crimean separatists is to secede from Ukraine within a month. They also aspire to adopt the rouble and by joining the Russian time-zone.

Whilst a military response to Russian aggression has already been ruled out by Western leaders, meaningful sanctions are not really much of an option, either. A full-blown trade-war would inflict serious damage on both sides. However, capital flows between Russia and the West are already in a parlous state in anticipation of lesser action, including assets freezes and travel restrictions already imposed. In order to defend the rouble, Russians are withdrawing billions from Western banks and selling off US Treasury Bonds. Mr Putin also raised interest rates to 7 per cent; a move that will discourage capital outflights from Russia to the West, a rate of interest that will be far more attractive for Russians to invest at home. The West seems certain to reciprocate by dumping Russian assets.

Yet, this all comes at a particularly delicate time for the world economy. Emerging markets, including China, have rapidly slowed down; the Eurozone is expecting a period of deflation to start anytime soon; and, America’s economy has started to inflict severe withdrawal symptoms to many countries around the world following its tapering of quantitative easing. The global economy may be just one sharp shock away from lurching into another recession.

A standoff with Russia over Crimea’s breakaway is the last thing the world needs. Economic considerations cannot surpass the higher purpose of defending international law, and as such must be secondary to it. Nonetheless, the interplay between politics and economics is what is making this situation so dangerous and destabilising. All concerned should be aware of just how very much more disruptive this crisis could yet become.

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