Neoliberalism, Interventionism, the Resource Curse, and a Fragmenting World

By Patrick Cockburn

Source: TomDispatch.com

We live in an age of disintegration. Nowhere is this more evident than in the Greater Middle East and Africa. Across the vast swath of territory between Pakistan and Nigeria, there are at least seven ongoing wars — in Afghanistan, Iraq, Syria, Yemen, Libya, Somalia, and South Sudan. These conflicts are extraordinarily destructive. They are tearing apart the countries in which they are taking place in ways that make it doubtful they will ever recover. Cities like Aleppo in Syria, Ramadi in Iraq, Taiz in Yemen, and Benghazi in Libya have been partly or entirely reduced to ruins. There are also at least three other serious insurgencies: in southeast Turkey, where Kurdish guerrillas are fighting the Turkish army, in Egypt’s Sinai Peninsula where a little-reported but ferocious guerrilla conflict is underway, and in northeast Nigeria and neighboring countries where Boko Haram continues to launch murderous attacks.

All of these have a number of things in common: they are endless and seem never to produce definitive winners or losers. (Afghanistan has effectively been at war since 1979, Somalia since 1991.) They involve the destruction or dismemberment of unified nations, their de facto partition amid mass population movements and upheavals — well publicized in the case of Syria and Iraq, less so in places like South Sudan where more than 2.4 million people have been displaced in recent years.

Add in one more similarity, no less crucial for being obvious: in most of these countries, where Islam is the dominant religion, extreme Salafi-Jihadi movements, including the Islamic State (IS), al-Qaeda, and the Taliban are essentially the only available vehicles for protest and rebellion. By now, they have completely replaced the socialist and nationalist movements that predominated in the twentieth century; these years have, that is, seen a remarkable reversion to religious, ethnic, and tribal identity, to movements that seek to establish their own exclusive territory by the persecution and expulsion of minorities.

In the process and under the pressure of outside military intervention, a vast region of the planet seems to be cracking open. Yet there is very little understanding of these processes in Washington. This was recently well illustrated by the protest of 51 State Department diplomats against President Obama’s Syrian policy and their suggestion that air strikes be launched targeting Syrian regime forces in the belief that President Bashar al-Assad would then abide by a ceasefire. The diplomats’ approach remains typically simpleminded in this most complex of conflicts, assuming as it does that the Syrian government’s barrel-bombing of civilians and other grim acts are the “root cause of the instability that continues to grip Syria and the broader region.”

It is as if the minds of these diplomats were still in the Cold War era, as if they were still fighting the Soviet Union and its allies. Against all the evidence of the last five years, there is an assumption that a barely extant moderate Syrian opposition would benefit from the fall of Assad, and a lack of understanding that the armed opposition in Syria is entirely dominated by the Islamic State and al-Qaeda clones.

Though the invasion of Iraq in 2003 is now widely admitted to have been a mistake (even by those who supported it at the time), no real lessons have been learned about why direct or indirect military interventions by the U.S. and its allies in the Middle East over the last quarter century have all only exacerbated violence and accelerated state failure.

A Mass Extinction of Independent States

The Islamic State, just celebrating its second anniversary, is the grotesque outcome of this era of chaos and conflict. That such a monstrous cult exists at all is a symptom of the deep dislocation societies throughout that region, ruled by corrupt and discredited elites, have suffered. Its rise — and that of various Taliban and al-Qaeda-style clones — is a measure of the weakness of its opponents.

The Iraqi army and security forces, for example, had 350,000 soldiers and 660,000 police on the books in June 2014 when a few thousand Islamic State fighters captured Mosul, the country’s second largest city, which they still hold. Today the Iraqi army, security services, and about 20,000 Shia paramilitaries backed by the massive firepower of the United States and allied air forces have fought their way into the city of Fallujah, 40 miles west of Baghdad, against the resistance of IS fighters who may have numbered as few as 900. In Afghanistan, the resurgence of the Taliban, supposedly decisively defeated in 2001, came about less because of the popularity of that movement than the contempt with which Afghans came to regard their corrupt government in Kabul.

Everywhere nation states are enfeebled or collapsing, as authoritarian leaders battle for survival in the face of mounting external and internal pressures. This is hardly the way the region was expected to develop. Countries that had escaped from colonial rule in the second half of the twentieth century were supposed to become more, not less, unified as time passed.

Between 1950 and 1975, nationalist leaders came to power in much of the previously colonized world. They promised to achieve national self-determination by creating powerful independent states through the concentration of whatever political, military, and economic resources were at hand. Instead, over the decades, many of these regimes transmuted into police states controlled by small numbers of staggeringly wealthy families and a coterie of businessmen dependent on their connections to such leaders as Hosni Mubarak in Egypt or Bashar al-Assad in Syria.

In recent years, such countries were also opened up to the economic whirlwind of neoliberalism, which destroyed any crude social contract that existed between rulers and ruled. Take Syria. There, rural towns and villages that had once supported the Baathist regime of the al-Assad family because it provided jobs and kept the prices of necessities low were, after 2000, abandoned to market forces skewed in favor of those in power. These places would become the backbone of the post-2011 uprising. At the same time, institutions like the Organization of Petroleum Exporting Countries (OPEC) that had done so much to enhance the wealth and power of regional oil producers in the 1970s have lost their capacity for united action.

The question for our moment: Why is a “mass extinction” of independent states taking place in the Middle East, North Africa, and beyond? Western politicians and media often refer to such countries as “failed states.” The implication embedded in that term is that the process is a self-destructive one. But several of the states now labeled “failed” like Libya only became so after Western-backed opposition movements seized power with the support and military intervention of Washington and NATO, and proved too weak to impose their own central governments and so a monopoly of violence within the national territory.

In many ways, this process began with the intervention of a U.S.-led coalition in Iraq in 2003 leading to the overthrow of Saddam Hussein, the shutting down of his Baathist Party, and the disbanding of his military. Whatever their faults, Saddam and Libya’s autocratic ruler Muammar Gaddafi were clearly demonized and blamed for all ethnic, sectarian, and regional differences in the countries they ruled, forces that were, in fact, set loose in grim ways upon their deaths.

A question remains, however: Why did the opposition to autocracy and to Western intervention take on an Islamic form and why were the Islamic movements that came to dominate the armed resistance in Iraq and Syria in particular so violent, regressive, and sectarian? Put another way, how could such groups find so many people willing to die for their causes, while their opponents found so few? When IS battle groups were sweeping through northern Iraq in the summer of 2014, soldiers who had thrown aside their uniforms and weapons and deserted that country’s northern cities would justify their flight by saying derisively: “Die for [then-Prime Minister Nouri] al-Maliki? Never!”

A common explanation for the rise of Islamic resistance movements is that the socialist, secularist, and nationalist opposition had been crushed by the old regimes’ security forces, while the Islamists were not. In countries like Libya and Syria, however, Islamists were savagely persecuted, too, and they still came to dominate the opposition. And yet, while these religious movements were strong enough to oppose governments, they generally have not proven strong enough to replace them.

Too Weak to Win, But Too Strong to Lose

Though there are clearly many reasons for the present disintegration of states and they differ somewhat from place to place, one thing is beyond question: the phenomenon itself is becoming the norm across vast reaches of the planet.

If you’re looking for the causes of state failure in our time, the place to start is undoubtedly with the end of the Cold War a quarter-century ago. Once it was over, neither the U.S. nor the new Russia that emerged from the Soviet Union’s implosion had a significant interest in continuing to prop up “failed states,” as each had for so long, fearing that the rival superpower and its local proxies would otherwise take over. Previously, national leaders in places like the Greater Middle East had been able to maintain a degree of independence for their countries by balancing between Moscow and Washington. With the break-up of the Soviet Union, this was no longer feasible.

In addition, the triumph of neoliberal free-market economics in the wake of the Soviet Union’s collapse added a critical element to the mix. It would prove far more destabilizing than it looked at the time.

Again, consider Syria. The expansion of the free market in a country where there was neither democratic accountability nor the rule of law meant one thing above all: plutocrats linked to the nation’s ruling family took anything that seemed potentially profitable. In the process, they grew staggeringly wealthy, while the denizens of Syria’s impoverished villages, country towns, and city slums, who had once looked to the state for jobs and cheap food, suffered. It should have surprised no one that those places became the strongholds of the Syrian uprising after 2011. In the capital, Damascus, as the reign of neoliberalism spread, even the lesser members of the mukhabarat, or secret police, found themselves living on only $200 to $300 a month, while the state became a machine for thievery.

This sort of thievery and the auctioning off of the nation’s patrimony spread across the region in these years. The new Egyptian ruler, General Abdel Fattah al-Sisi, merciless toward any sign of domestic dissent, was typical. In a country that once had been a standard bearer for nationalist regimes the world over, he didn’t hesitate this April to try to hand over two islands in the Red Sea to Saudi Arabia on whose funding and aid his regime is dependent. (To the surprise of everyone, an Egyptian court recently overruled Sisi’s decision.)

That gesture, deeply unpopular among increasingly impoverished Egyptians, was symbolic of a larger change in the balance of power in the Middle East: once the most powerful states in the region — Egypt, Syria, and Iraq — had been secular nationalists and a genuine counterbalance to Saudi Arabia and the Persian Gulf monarchies. As those secular autocracies weakened, however, the power and influence of the Sunni fundamentalist monarchies only increased. If 2011 saw rebellion and revolution spread across the Greater Middle East as the Arab Spring briefly blossomed, it also saw counterrevolution spread, funded by those oil-rich absolute Gulf monarchies, which were never going to tolerate democratic secular regime change in Syria or Libya.

Add in one more process at work making such states ever more fragile: the production and sale of natural resources — oil, gas, and minerals — and the kleptomania that goes with it. Such countries often suffer from what has become known as “the resources curse”: states increasingly dependent for revenues on the sale of their natural resources — enough to theoretically provide the whole population with a reasonably decent standard of living — turn instead into grotesquely corrupt dictatorships. In them, the yachts of local billionaires with crucial connections to the regime of the moment bob in harbors surrounded by slums running with raw sewage. In such nations, politics tends to focus on elites battling and maneuvering to steal state revenues and transfer them as rapidly as possible out of the country.

This has been the pattern of economic and political life in much of sub-Saharan Africa from Angola to Nigeria. In the Middle East and North Africa, however, a somewhat different system exists, one usually misunderstood by the outside world. There is similarly great inequality in Iraq or Saudi Arabia with similarly kleptocratic elites. They have, however, ruled over patronage states in which a significant part of the population is offered jobs in the public sector in return for political passivity or support for the kleptocrats.

In Iraq with a population of 33 million people, for instance, no less than seven million of them are on the government payroll, thanks to salaries or pensions that cost the government $4 billion a month. This crude way of distributing oil revenues to the people has often been denounced by Western commentators and economists as corruption. They, in turn, generally recommend cutting the number of these jobs, but this would mean that all, rather than just part, of the state’s resource revenues would be stolen by the elite. This, in fact, is increasingly the case in such lands as oil prices bottom out and even the Saudi royals begin to cut back on state support for the populace.

Neoliberalism was once believed to be the path to secular democracy and free-market economies. In practice, it has been anything but. Instead, in conjunction with the resource curse, as well as repeated military interventions by Washington and its allies, free-market economics has profoundly destabilized the Greater Middle East. Encouraged by Washington and Brussels, twenty-first-century neoliberalism has made unequal societies ever more unequal and helped transform already corrupt regimes into looting machines. This is also, of course, a formula for the success of the Islamic State or any other radical alternative to the status quo. Such movements are bound to find support in impoverished or neglected regions like eastern Syria or eastern Libya.

Note, however, that this process of destabilization is by no means confined to the Greater Middle East and North Africa. We are indeed in the age of destabilization, a phenomenon that is on the rise globally and at present spreading into the Balkans and Eastern Europe (with the European Union ever less able to influence events there). People no longer speak of European integration, but of how to prevent the complete break-up of the European Union in the wake of the British vote to leave.

The reasons why a narrow majority of Britons voted for Brexit have parallels with the Middle East: the free-market economic policies pursued by governments since Margaret Thatcher was prime minister have widened the gap between rich and poor and between wealthy cities and much of the rest of the country. Britain might be doing well, but millions of Britons did not share in the prosperity. The referendum about continued membership in the European Union, the option almost universally advocated by the British establishment, became the catalyst for protest against the status quo. The anger of the “Leave” voters has much in common with that of Donald Trump supporters in the United States.

The U.S. remains a superpower, but is no longer as powerful as it once was. It, too, is feeling the strains of this global moment, in which it and its local allies are powerful enough to imagine they can get rid of regimes they do not like, but either they do not quite succeed, as in Syria, or succeed but cannot replace what they have destroyed, as in Libya. An Iraqi politician once said that the problem in his country was that parties and movements were “too weak to win, but too strong to lose.” This is increasingly the pattern for the whole region and is spreading elsewhere. It carries with it the possibility of an endless cycle of indecisive wars and an era of instability that has already begun.

Patrick Cockburn is a Middle East correspondent for the Independent of London and the author of five books on the Middle East, the latest of which isChaos and Caliphate: Jihadis and the West in the Struggle for the Middle East(OR Books).