I.M.F. Says European Debt Still a Threat to World Recovery
The International Monetary Fund said on Tuesday that the global recovery was continuing apace, with growth in emerging economies leading that of the developed world. But, the I.M.F. said, financial uncertainty on the European periphery continues to pose a serious risk. “Downside risks to the recovery remain elevated,” the agency said in its World Economic Outlook. “The most urgent requirements for robust recovery are comprehensive and rapid actions to overcome sovereign and financial troubles in the euro area and policies to redress fiscal imbalances.” Updates to two agency reports come a day after Spain said it would consider nationalizing its regional savings banks, known as cajas, if they were unable to raise private funds to bolster their capital ratios. The revised outlook also follows news that the Irish government has called an earlier-than-expected general election – a delayed result of the collapse of the nation’s financial sector.
Rioters Jolt Egyptian Regime
Tens of thousands of protesters clashed with police in cities across Egypt on Tuesday to demand the ouster of the president, as shock waves from Tunisia’s successful revolt against its leader two weeks ago continued to rumble through the Middle East.The protests appeared to be the biggest in decades in Egypt, a country where opposition has long been kept in check and demonstrations rarely draw more than a few hundred people. According to some initial accounts, as many as 50,000 demonstrators in all turned out in Cairo, Alexandria, Suez and other Egyptian cities. At least two protesters and one security official were killed. U.S. officials said they were carefully watching the outpouring of anger in Egypt, one of Washington’s key allies in the Middle East and one of the top recipients of U.S. military aid. The protests marked the greatest upsurge of anger so far inspired by the Tunisian protests, which culminated this month in the fall of the North African country’s longtime president. In some 10 days since then, demonstrations have broken out in Algeria, Jordan and Yemen.
Jordanian nightclubs on Mecca Street upset Muslims
A Muslim radio station in Jordan is pressing the government to shut down clubs located on two streets in the capital that are named after Islam’s two holiest cities, Mecca and Medina in Saudi Arabia. The radio station says their locations are offensive. Hayat FM said its programming on Sunday was devoted to religious and legal commentary to build public support for closing the nightclubs in west Amman. The station says lawyers are also lobbying the government to shut what they call “dens of vice,” citing residents’ complaints of noise and inappropriate behavior on streets named after sacred places. It adds that Jordan’s prominent engineers union will stage protests on Tuesday.
Leaks Reveal Deeper Palestinian-Jewish Security Ties
Leaked documents published Tuesday show extensive collaboration between Palestinian security forces and their Israeli counterparts, a relationship Israeli commanders say has been key to security gains in the West Bank. Among the most explosive revelations in the latest release are minutes of a 2005 meeting in which Palestinian officials appear to be plotting with Israeli officials to assassinate a Palestinian militant in Gaza. The leaks are likely to aggravate unease in the Palestinian territories, following revelations earlier in the week that showed the Palestinian leadership offering extensive compromises to Israel in peace talks. Qatar-based al-Jazeera satellite channel on Sunday began releasing what they say are internal Palestinian negotiating-team papers dating from 1999 to 2010. Earlier leaks showed Palestinian negotiators offering concessions to Israel in private that went beyond the Palestinian leadership’s public expressions of defiance. The leaks brought a public outcry that forced Palestinian President Mahmoud Abbas to issue a public defense of his administration’s leadership of peace talks. Palestinian forces were deployed outside al-Jazeera’s office in Ramallah.
U.S. Plans No Military Response to Lebanon Developments
The United States expressed its concern over developments in Lebanon on Tuesday, particularly the prospect that Hizbullah could take over the country – but is apparently not ready to intervene militarily to prevent the terror group, a close client of Iran, from installing its government. The United States last week denied reports that it had ordered a buildup of naval vessels off the Lebanese coast, on the prospect that Iranian armed forces would be invited to help keep order, American sources said. At a press conference Pentagon spokesman David Lapan said that the U.S. was keeping an eye on the situation, because “we do know that political tension, unrest and especially any violence that might follow are threats to regional stability and security.” Lapan was responding to press reports that the U.S. and France were increasing their presence off the Lebanese coast in the wake of a prospective Hizbullah coup. Lapan added that “the U.S. government desires that all parties use peaceful means to resolve the situation. We continue to monitor the situation very closely.” The United States, he added, “has a valuable relationship with Lebanese Armed Forces, and we are committed to do what we can to strengthen the sovereignty of the institutions as well as of the government of Lebanon.” The reports said that the IDF was also on high alert, increasing patrols on the border while keeping a wary eye on Hizbullah installations in south Lebanon. Speaking last week, Foreign Minister Avigdor Lieberman said that Israel needed to be “prepared for every scenario.”
Russia’s ‘Return’ to Afghanistan
Afghan President Hamid Karzai’s two-day stay in Moscow on Jan. 20-21 marked his first official bilateral visit and the first state visit by an Afghan president to the Russian Federation since its founding after the Soviet Union’s disintegration in December 1991. The trip – during which Karzai met with President Dmitry Medvedev, Prime Minister Vladimir Putin, and other Russian political and economic leaders – provided an important opportunity to both confirm recent growth in formal ties between the two countries as well as impart additional momentum for further expanding the relationship. Karzai was accompanied by most of the Afghan cabinet, reflecting the comprehensive nature and importance of the trip, and allowing for a wide-ranging dialogue on economic, diplomatic, and military issues.Several important agreements resulted from the meetings, the most immediate being in the realms of economics and energy. Russian officials committed to supporting several large development projects, including some that were left unfinished from the time of the Soviet Union. For example, Russian specialists have agreed to help upgrade the hydropower plant in Naghlu and to construct smaller hydroelectricity stations in other regions of Afghanistan. The Russian government also offered to help rebuild the strategically important Salang Tunnel connecting northern and southern Afghanistan through the Hindu Kush mountains. Other bilateral projects include constructing an irrigation canal in Nangarhar province, a nitrogen fertilizer plant in Mazar-e Sharif, a customs terminal in Kabul and other infrastructure.
Jan 26 2011