Daily Archives: July 15, 2015

IMF Won’t Eat its Words: Greek Debt Relief in Need

greek debt crsis third memorandum july 15 2015

International Monetary Fund (IMF) Greece Debt Relief is Needed

The dramatic deterioration in debt sustainability points to the need for debt relief on a
scale that would need to go well beyond what has been under consideration to date—and what
has been proposed by the ESM. There are several options. If Europe prefers to again provide
debt relief through maturity extension, there would have to be a very dramatic extension with
grace periods of, say, 30 years on the entire stock of European debt, including new assistance.
This reflects the basic premise that debt cannot be assumed to migrate back onto the balance
sheet of the private sector at interest rates close to the current AAA rates before debt levels have been brought to much lower levels; borrowing at anything but AAA rates in the near term will bring about an unsustainable debt dynamic for the next several decades. Other options include explicit annual transfers to the Greek budget or deep upfront haircuts. The choice between thevarious options is for Greece and its European partners to decide.

See also The Deep Deformation of Europe by Elli Louka

How to Buy Public Opinion: the Saudi Cables

Saudi_Cables

Buying Silence: How the Saudi Foreign Ministry controls Arab media (wikileaks website)

Saudi Arabia controls its image by monitoring media and buying loyalties from Australia to Canada and everywhere in between.  Documents reveal the extensive efforts to monitor and co-opt Arab media, making sure to correct any deviations in regional coverage of Saudi Arabia and Saudi-related matters. Saudi Arabia’s strategy for co-opting Arab media takes two forms, corresponding to the “carrot and stick” approach, referred to in the documents as “neutralisation” and “containment”. The approach is customised depending on the market and the media in question.

The initial reaction to any negative coverage in the regional media is to “neutralise” it. The term is used frequently in the cables and it pertains to individual journalists and media institutions whose silence and co-operation has been bought. “Neutralised” journalists and media institutions are not expected to praise and defend the Kingdom, only to refrain from publishing news that reflects negatively on the Kingdom, or any criticism of its policies. The “containment” approach is used when a more active propaganda effort is required. Journalists and media institutions relied upon for “containment” are expected not only to sing the Kingdom’s praises, but to lead attacks on any party that dares to air criticisms of the powerful Gulf state.

One of the ways “neutralisation” and “containment” are ensured is by purchasing hundreds or thousands of subscriptions in targeted publications. These publications are then expected to return the favour by becoming an “asset” in the Kingdom’s propaganda strategy. A document listing the subscriptions that needed renewal by 1 January 2010 details a series of contributory sums meant for two dozen publications in Damascus, Abu Dhabi, Beirut, Kuwait, Amman and Nouakchott. The sums range from $500 to 9,750 Kuwaiti Dinars ($33,000). The Kingdom effectively buys reverse “shares” in the media outlets, where the cash “dividends” flow the opposite way, from the shareholder to the media outlet. In return Saudi Arabia gets political “dividends” – an obliging press.

An example of these co-optive practices in action can be seen in an exchange between the Saudi Foreign Ministry and its Embassy in Cairo. On 24 November 2011 Egypt’s Arabic-language broadcast station ONTV hosted the Saudi opposition figure Saad al-Faqih, which prompted the Foreign Ministry to task the embassy with inquiring into the channel. The Ministry asked the embassy to find out how “to co-opt it or else we must consider it standing in the line opposed to the Kingdom’s policies”.  The document reports that the billionaire owner of the station, Naguib Sawiris, did not want to be “opposed to the Kingdom’s policies” and that he scolded the channel director, asking him “never to host al-Faqih again”. He also asked the Ambassador if he’d like to be “a guest on the show”.

The Saudi Cables are rife with similar examples, some detailing the figures and the methods of payment. These range from small but vital sums of around $2000/year to developing country media outlets – a figure the Guinean News Agency “urgently needs” as “it would solve many problems that the agency is facing” – to millions of dollars, as in the case of Lebanese right-wing television station MTV.

The “neutralisation” and “containment” approaches are not the only techniques the Saudi Ministry is willing to employ. In cases where “containment” fails to produce the desired effect, the Kingdom moves on to confrontation. In one example, the Foreign Minister was following a Royal Decree dated 20 January 2010 to remove Iran’s new Arabic-language news network, Al-Alam, from the main Riyadh-based regional communications satellite operator, Arabsat. After the plan failed, Saud Al Faisal sought to “weaken its broadcast signal”.

The documents show concerns within the Saudi administration over the social upheavals of 2011, which became known in the international media as the “Arab Spring”. The cables note with concern that after the fall of Mubarak, coverage of the upheavals in Egyptian media was “being driven by public opinion instead of driving public opinion”. The Ministry resolved “to give financial support to influential media institutions in Tunisia”, the birthplace of the “Arab Spring”.