Middle East and North Africa

  • Middle East and North Africa
    U.S. Relations With Iran, 1953–2023
    Onetime allies, the United States and Iran have seen tensions escalate repeatedly in the four decades since the Islamic Revolution.
  • Israeli-Palestinian Conflict
    The President’s Inbox Recap: The Israel-Hamas War
    Hamas’s surprise attack on Israel threatens regional stability and security.
  • Israeli-Palestinian Conflict
    CFR Virtual Public Forum: Update on the Israel-Hamas War
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    FROMAN: Good afternoon. Welcome to today’s Public Forum hosted by the Council on Foreign Relations. My name is Mike Froman. I am president of the Council, and I’ll be presiding over today’s discussion. The Council on Foreign Relations is an independent think tank, publisher, educational institution, and membership organization committed to providing nonpartisan facts-based information and analysis. We all woke up Saturday morning to the shock of another war in the Middle East and the horrific terrorist attack by Hamas on Israel. We are still only now fully coming to terms with its severity and its scale. It will have devastating consequences, both human and humanitarian. And it will be certainly—terrible ramifications for the weeks and months, perhaps years, to come. We at the Council are committed very much to following it and providing analysis and context as the situation on the ground develops. Today’s conversation will—is part of that effort. And I want to introduce our three speakers. Dr. Steven Cook is the Eni Enrico Mattei senior fellow in Middle East and Africa at the Council. He’s an expert on Arab and Turkish politics as well as U.S.-Middle East policy. Dr. Ray Takeyh is the Hasib J. Sabbagh senior fellow in Middle East studies at the Council. He specializes in Iran, U.S. foreign policy, and the modern Middle East. And Farah Pandith is an adjunct senior fellow at the Council. She is an expert and pioneer in countering violent extremism. Today’s discussion is on the record. As has been said, it will be posted on the Council’s website afterwards. Let me start, Steven, if I can, with you. Israel appears to be amassing forces on the border with Gaza. What are their military and strategic objectives for Gaza going forward? And are they achievable? And what are the risks that they face in going after those objectives? COOK: Thanks very much, Mike. And thanks, everybody else, for joining us this afternoon. These are the major questions. The war cabinet—the Israeli war cabinet, which now includes the opposition party led by Benny Gantz, has given the IDF the instructions to destroy Hamas, to make it so that Hamas cannot threaten Israel. This is likely to be a very significant undertaking, which will include ground forces. I think that the IDF has been careful thus far in saying that they haven’t been ordered—they haven’t gotten the order to undertake what they’re euphemistically calling a ground maneuver. But the mobilization of three hundred thousand soldiers and the movement of tons of equipment, including tanks and armored personnel carriers and artillery, indicates that after this very intense period of air barrages, that the IDF is poised to move into the Gaza Strip. Then then we get to the hardest questions of all, Mike. I think the Israelis can bring a lot of power to bear to kill a lot of Hamas people, as well as, unfortunately, Palestinian civilians caught in the crossfire, which is something I know very many people are concerned about. But then they end up back where they were almost twenty years ago—occupying parts of or if not all of the Gaza Strip, something that the Israelis certainly don’t want to do. So perhaps the Israelis can win the battle against Hamas, but if they’re drawn into a grinding conflict in the Gaza Strip, Hamas and its patrons may actually score a victory in terms of distracting Israel, weakening the IDF, with a long, drawn-out occupation and guerrilla warfare in a very dense place. FROMAN: Do you think, Steven, that that has been, in fact, part of their objective, in terms of the nature of the attack on Israel, the scope, the brutality is, indeed, to make it impossible for Israel to do nothing but go into Gaza and get drawn into a quagmire there? COOK: As the days have gone on, and the Israelis have been very clear that they would like to clear Gaza, it strikes me that this is perhaps a strategic goal of Hamas, is to draw the Israelis in. The complex nature, the number of casualties associated with attack—Israelis really are faced with a number of unenviable choices. And their public is demanding a major operation to finally bring an end to the threat that is Hamas. So, yes, there is a real risk that the Israelis get caught. And there is a real possibility that that is precisely what Hamas intended. FROMAN: Farah, let me go to you next. The Israelis have stated that one of their objectives is to, as Steven said, eliminate Hamas. Which is a difficult objective because if even one Hamas member is left holding up a flag at the end of this conflict, it appears that that objective hasn’t been met. This falls in a long line of efforts by the U.S. and others to eradicate al-Qaida, the Taliban, ISIS, et cetera. What does it mean to eliminate a group like Hamas? You study violent extremism. You study Hamas. What does it mean? And what would be an appropriate objective for this exercise? PANDITH: Mike, one of the things that we have to be very clear about is Hamas is a terrorist organization. It requires ideological soldiers to be part of their efforts. They cannot do what they’re doing unless they have soldiers. So one of the things that we tried to do certainly in the last twenty years, since 9/11—twenty-plus years since 9/11, is go after terrorist organizations around the world with exclusively—mostly, I should say, hard power. And one of the things we ought to be thinking about in this latest horrific attack is how we can think differently about how to decimate the appeal of an ideology like Hamas’s. Let’s remember that Hamas’s—I mean, their manifesto, what they want to do, is to eradicate Jews, and they want to eradicate Israel. That is what they have explicitly laid out. They are manipulating the religion of Islam to be able to bring people into the fold. So when we think about what you mentioned, the United States, other countries—not just Israel, but other countries around the world need to do is, first and foremost, condemn a terrorist groups like Hamas. We had more than a hundred countries respond to what happened over the weekend with statements. And only forty-four of those countries actually explicitly condemned the terrorist organization first. Secondly, in terms of the ideology, how we think about what we need to do to shrink the pool of those people who find this ideology appealing, is we have to go all in. And we haven’t done that, Mike. We’ve put trillions of dollars into the hard power war and, like, pennies to the dollar on how we think about what it takes to, over generations, change the narrative, change the appeal. And then finally, there’s a role for technology companies, Mike. And ideology does not exist in a vacuum. They’re not just putting posters up on a board and having people walk by them. They are going after potential recruits. So for us to be able to shrink the pool of people who are hearing their message, who are being lured into their ideology. We’ve got to make sure that what’s happening in the online space is controlled in a very different kind of way. And that responsibility comes both from the technology companies but also regular citizens like you and me, who have to demand different kinds of red lines in the online space. FROMAN: When you say, “go all in,” and I understand, beyond the hard power, what does going “all in” mean, in terms of providing an alternative vision of Islam and reducing the appeal of Hamas? PANDITH: The ideology is based on—any of these groups have different manifestos. But in order for them to go after somebody, they’re going after an emotional thing, Mike. They are speaking to the inside of somebody. They’re making them feel like they can belong to something. It’s how, in fact, domestic extremists also utilize that idea of identity and belonging. So when we talk about going “all in,” it means not just today looking up and saying we have a problem with Hezbollah, or Hamas, or the Taliban, or Shabaab. It is to say, globally, what is happening to Millennials, to Gen Z, and eventually Gen Alpha, who are hearing the messages of these groups, who are influenced by these groups? How do we disrupt the way in which they understand what’s taking place, the lies and the fake information that has been put out there, and how can we come together as society so there are many touch points within a community to push people away? I want to say one last thing, Mike. And that is, you talked to Steven about sort of what the point was in some of the brutality of what Hamas did. And let us not make the mistake of not recognizing that Hamas has learned from ISIS. That, in fact, the tools in their toolbox today are very different because of what they’ve seen works in other parts of the world, and in other contexts. So, in order to decrease the appeal of this ideology, we’ve got to learn lessons from the past. And we have to apply everything that we know in money, and resources, and sophistication in diminishing that appeal. FROMAN: Do you think it’s possible for Israel to eliminate Hamas, as it says, through a military action? PANDITH: I think it is possible globally for many countries to build a coalition that works on eradicating us-versus-them ideologies generally. And it is not something that happens in the course of a presidential cycle. It’s something that happens over generations. And if we look at what we know neo-Nazis are saying and have explicitly said that they’re trying to do—i.e., recruit seven-year-olds. Or we look at a group like the Taliban in terms of what they’ve said that they want to do, we’ve got to look at the scope in a in a bigger way, Mike. And we’ve got to understand that this is not just Israel’s problem. That these ideologies that exist are connected. And I think if we look to the future of what could be happening in that region, I would not be surprised if this ideology finds appeal in other parts of the world that bring ideological soldiers to bear. FROMAN: Thank you. Ray, Iran has been supportive of Hamas for a long time. Obviously has clients also north of Israel in Hezbollah. But there seems to be some debate now, at least in the press, about to what degree Iran knew about the attacks that happened on Saturday, let alone whether they were directing it. What’s your perspective on the degree of Iranian involvement? And what are they hoping to achieve through their support of this conflict? TAKEYH: Well, this is an issue that’s being debated, of course, as you mentioned. What did the Iranians know and when did they know? I think it’s a sort of a narrow question. What we can say is Iran certainly enabled Hamas to do what it did. And over the past year, over the past several months, in particular, we have seen a considerable amount of traffic between the Iranian officials and the Hamas officials, their military planners and operatives on both sides, as well as Hezbollah. So in that sense, there’s a considerable degree of Iranian operational capability and operational participation beyond the usual provision of assistance. Were they in the room when they said, okay, attack Saturday at 7:30? Probably not. Were they in the building? Yes, in a sense that they will always give themselves some measure of distance from the actual operational decision to execute because then the question will be did they actually ordered the attack, and so forth. And if they didn’t specifically order attack, and they were not on an intercept ordering the attack, then, of course, they have some measure of immunity from this. What is the overall Iranian strategy that includes Hamas and includes this particular attack? Well, for the past number of years they have been trying to put together what they call the Axis of Resistance, which involves their many militias, and terrorist allies, and so on. These are—this is a multinational coalition. It involves Pakistanis, Afghanis, Iraqis. It’s not a sectarian coalition. It is not narrowly drawn from the Shia community, as was the Hezbollah previously. It involves Sunnis. It involves Shi’ites. It involves other sects, and so forth. So they have actually put together, strangely enough, a sort of a multinational coalition. And the purpose of that is, of course, to weaken the regional adversaries, particularly Israel. And so this attack kind of fits into that pattern. The objectives would be to weaken Israel, as Steven mentioned, to get Israel into a quagmire. And the more humanitarian aspects of this come about, the more difficult it will be for Israel’s regional standing to be undisturbed. So there is that aspect of it. Israelis are now too preoccupied with Iran—with the Palestinian front to do anything else. It scuttles the alignment that Israelis were trying to craft with Sunni states, particularly Saudi Arabia, that could have aligned the region to some extent against Iran. So it kind of meets all their objectives. It mires Israel in a conflict, which is at some point—is going to actually cause considerable degree of international outcry because all the humanitarian issue. It demonstrates the power of Iran to inflict punishment in a cheap and easy way. So anybody considering any attack on Iranian territory, this will be another lesson. And it, of course, as I mentioned, disturbs some of the diplomatic moves that were being done. And it’s cheap, easy, and Iranians have immunity. No one’s talking really about attacking them. And I think we talked about this in another forum. There is a considerable degree of genius to the Iranian proxy war strategy, because what is often said, when they’re behind the attack similar to this, the country that is targeted—in this particular case, Israel—is too busy dealing with the flames to focus on the source of the fire. And what often happens is—it happened to the Americans in Iraq; it’s happening to the Israelis today. What often happens is they say, well, we can’t expand the zone of conflict by essentially dealing with Iran. So we have to essentially pacify Iraq. We have to pacify Gaza, and so forth. So the Iranians get all the things they wanted out of this, and still have some degree of immunity in terms of their territory. And in terms of the loss of Arab life, they have no problem with Arabs dying in this particular conflict, because they’re martyrs. And the reward for martyrdom is celestial, as Farah was saying. So, you know, all these people are being martyred for the cause of God. So it meets all their strategic objectives at a reasonable cost, and essentially immunizes them from any form of attack. Now, we’re in a situation where things can get out of hand. You know, best laid plans go astray. So if this thing gets—seriously gets out of hand, they could essentially be more involved in a direct way that they don’t wish to be. But at this point, is a conflict that’s manageable. It is a conflict that achieved its strategic objectives. It demonstrated the power of the resistance front. It has essentially caused Israel to be mired in a conflict that’s going to be very prolonged. It’ll eventually draw some degree of international criticism, and certainly regional criticism of Israel. This is all good news, from their perspective. FROMAN: If the conflict were to expand significantly to the north, with Hezbollah getting involved—another close Iranian proxy—how would you see that playing out? And does that risk a much greater widening involving Syria, involving Iran ultimately, of the conflict? TAKEYH: Well, the Hezbollah angle is a very interesting one. Steven and I were just talking about this. What will Hezbollah do is a question that’s on everybody’s mind. By the way, if Hezbollah becomes involved in this political conflict, the logic of Iranian proxy war strategy still holds. Because then say, well, Israel is busy on all its frontiers, so it cannot possibly extend into the Persian Gulf. The core logic holds. But it doesn’t serve Iranian interests, because Hezbollah’s a trump card they hold in case of some other conflict with the United States or Israel that involves attack on Iran in terms of its atomic facilities and so forth. And essentially, bringing Hezbollah into this conflict in a meaningful, measurable way doesn’t serve their interests. It doesn’t serve Hezbollah’s interests, but we are in uncharted territory because Hezbollah’s learned some lessons from 2006 about the damage that it can suffer in this—in waging war against Israel. What they can do—what Hezbollah is doing—is having limited skirmishes. And, by the way, they can do it through Syria with Hamas operatives, and so forth. These limited skirmishes have to bring in some Israeli forces to the north in order to deal with the potential contingency of a Hezbollah attack, which detracts from Israeli strength in the south. But without necessarily provoking a larger conflict that could seriously jeopardize Hezbollah as a terrorist organization, and Iranian proxy of consequence. Hezbollah is different here because if Hezbollah is involved in this particular conflict, nobody will doubt that Iranians ordered them to do so. Because what we have learned about Hezbollah in the Syrian civil war is that they are willing to engage in conflict that doesn’t necessarily serve their interests, political interests in Lebanon, if ordered to do so by Iran. So Hezbollah is no longer a proxy of some sort; it’s actually an aspect of the Iranian military security services. It is deployed across the region. It is deployed in many places where Lebanese have no business being deployed. So Hezbollah will actually open Iran to certain vulnerabilities that, at this point, it’s not facing. And this is why I’m hesitant to suggest that the Hezbollah front is going to blow up in a serious way. But if you keep having these skirmishes, and enhancing them, and increasing them, then essentially you can draw some Israeli forces to that front and further drain Israeli sources and stress the resources. FROMAN: Steven, let’s talk a little bit about great-power politics. We’ve got the U.S. moving carrier fleets off the coast. Obviously, there are Americans involved, Americans who have died, and Americans who are being held hostage, as well as citizens from other countries as well. Russia and Iran have become very close. China has been involved in the normalization of relations between Saudi Arabia and Iran in an effort to maintain access to the oil in the region. What role do you expect—let’s start with Russia and China—what role do you expect either one of them to play in this conflict? And then on the U.S., beyond a show of force—a symbolic show of force offshore, what is the potential role of the United States in this conflict? COOK: It’s a great question, Mike. Let’s start with the United States, because it is becoming physically present in the region in way that it had not been by moving an aircraft carrier battle group into the Eastern Mediterranean. It is clearly a signal to Hezbollah and the Iranians not to widen the conflict, although in conversations with Lebanese yesterday, they wonder whether Hezbollah will actually get that message and believe that message. And Ray just articulated that he doesn’t think that there is likely to be a northern front or that Hezbollah wants in northern front. But, again, with the United States moving in and these skirmishes going on with Israel and Hezbollah, those two actors could walk into something that might draw the United States in because of our essentially declared goal to prevent a widening of the regional conflict. Beyond this, however, President Biden has put himself in the position of essentially holding Israel’s hand through this. Now, as Ray points out, as the Israelis prosecute this war and as we start seeing a—the likely humanitarian disaster unfold in the Gaza Strip, there probably will be pressure from many quarters for Israel to exercise some restraint. And that’ll be the role of the president of the United States to see how he can encourage restraint on the part of the Israelis. But of course, Israelis are bloodied. They’re angry. They’re vengeful. So I wonder how much advice they are actually taking, even from someone who has positioned himself as such a strong friend of the State of Israel. As far as the Russians and the Chinese go, the Russians have—let me just say that the Israeli ambiguous position with regard to Ukraine and Russia did not really buy them much. The Russians have moved closer to the Iranians. The Russians have essentially blamed the Israelis for what has happened and has called for a new peace process, which is sort of empty rhetoric but the sort of kind of trolling that we expect to come from the Russian Foreign Ministry. As far as the Chinese go, I think there’s a much more interesting dynamic that is happening in how this conflict does accrue to their benefit. What was going on in the region, what we were all talking about last week, was Saudi-Israel normalization. And Saudi-Israel normalization was essentially the sugar to get Congress to swallow a Saudi-U.S. defense pact. And that Saudi-U.S. defense pact was, from the perspective of the Biden administration, and effort to knit the United States and its gulf partners, in this case Saudi Arabia but there would be follow on agreements, closer together in a way that blunted China’s influence in the region. We can well imagine that, as the Israelis prosecute this war, that the Saudis will want to not move forward with normalization, which then makes it an even harder thing for the Biden administration to push a defense pact with Saudi Arabia through the Congress, which is already hostile to Saudi Arabia. And there is—the Chinese don’t have to contend with this and can continue as this conflict goes on seeking to advance their influence in a variety of ways in the region. But I should point out that and looking at this over a period of time, it doesn’t strike me that the Chinese want to replace the United States in the region. I think they’ve looked at what we have done and how we have gotten bogged down in this region for decades now, and don’t want to repeat the mistakes that the United States has made. Certainly, they want to push the United States out of East Asia. But would they like the United States to be engaged in the Levant, in the Eastern Mediterranean, as well as in the Persian Gulf? Certainly. TAKEYH: Can I just pick up briefly on the important point that Steven made about what Hezbollah is going to do is very much speculative. We’re in a situation where we don’t know the decision making of the other protagonists. And when you’re speculating on their decision making, you tend to be reasonable. Except nobody’s acting reasonably today. If we were sitting here about a week ago and we said Hamas would attack Israel in such ferocity, we would assume that that’s not reasonable. And is not reasonable, but they still did it. Hezbollah, it would be reasonable for Hezbollah not to attack. But whether they attack? I want to pick up one small point on the Chinese-Iranian agreement, because at the time of China’s Iran-Saudi agreement. At the time, it was thought that China had the ability to talk to both antagonists, because it has relationship with both of them. But that particular normalization agreement had a very limited perspective. All the Chinese wanted from the Iranians is not to attack Saudi oil facilities. And to be fair, they have not. They just undermined the Saudi regional position. They never stopped trying to assist the Houthis. The United States Navy has interdicted a variety of their—so they have not, essentially, as we see, stopped the Axis of Resistance from engaging in mischief. It was a very narrowly crafted agreement. And the Chinese—Ali Khamenei and Chairman Xi—seemed to understand each other, that just don’t disrupt the oil facilities which could destabilize the energy market and the global markets accordingly. And to be fair, the Iranians have done so. And, by the way, the normalization agreement between Iran and Saudi Arabia is still going on. President Raisi is in touch with Prince Salman. The Iranian foreign minister is doing a tour of the region. He’s in Baghdad. He’ll go to Beirut. I’m sure at some point he’ll stop by. So that process is actually unfolding at the time when the Iranians have been very aggressive in undermining Saudi regional potential, at least momentarily. FROMAN: We haven’t talked at all about the West Bank, the Palestinians there. And that was also supposed to be part of the Saudi-Israel normalization discussion, that there would be some compromise and some delivery of benefits for the Palestinians. How does Hamas’s victory here—maybe I’ll go to Farah, if you don’t mind—how does the Hamas’s victory here position it as the now leading defender and spokesman for Palestinian issues? And where does that leave the Palestinian Authority and, really, any hope of making progress on the issues of the West Bank? PANDITH: Well our analysis up to this point has not been great in terms of what it is we think Hamas is about and what they’re willing to do. One thing we can definitely see in terms of the last few days in terms of a global response and in the way in which you’re seeing the manipulation of narratives, is that they are taking this pseudo-role, as you outlined, Mike—that they are taking the mantle, speaking for the Palestinians. And I want to be clear on a couple of things. The first is, they don’t speak for all Palestinians. And the way the media has been leveraging the story has really been a one-sided kind of conversation. And I think it’s important that we remember that the brutality and the terrorist tactics that Hamas deployed doesn’t mean that every Palestinian believes that that is the right thing to do. And so I want to really put that out there because it’s not fair to think otherwise. But in terms of who is in a winning posture, Hamas has the microphone. They have a microphone, not just in that part of the world. And certainly, they have the momentum. But they have the capacity today to say that they are winning. They did something unexpected. They went beyond the imagination of anyone. And so therefore, they are ascendant. And what’s worrisome is that no other group, no other authority, can—how do you catch up with that, Mike? How do you begin to put your opinion and your counternarrative forward when they have the airways, they have the power right now? So I think it’s very important. Certainly, the Council is very level-headed in how we are talking about things, but I also know that we have a couple thousand people who are listening to the conversation today. And as they interpret the news, and as they understand things, please don’t make the same mistakes we made after 9/11, which is to put everybody in these gigantic buckets and think that everything is a monolith. There’s a lot of nuance out there. And what really concerns me, to be honest with you, on the domestic side is that because of the way in which we believe that—or rather, the way the news has been reported, that in fact Hamas is speaking for all Palestinians, that is going to have repercussions in our own country in the way in which we treat each other, in the way our fellow Americans who are Jewish, are safe. We already have DHS, who is out there talking about protecting Jewish life in America. We already have seen evidence of spikes of backlash, both in 2014 when Hamas attacked in Europe, also in 2021 here in the United States, in Times Square and West Hollywood. So you can imagine that things will be happening in a really terrible way in our country too, if we do not take more care in understanding that we cannot give them the microphone the way they want it. That’s what they want, Mike. That’s what they would like to do. They want to put a wedge not only in that part of the world, but in the way in which people are talking about different faith communities, different ethnic communities, and the right and wrong of what they’re doing. They are brutal terrorists. They have used outrageous terrorist tactics. And they do not represent every voice that is part of that part of the world. COOK: Mike, can I just jump in here one quick second? I know we want to open this to questions, but I just want to speak to a little bit on the issue of the political dynamics on the West Bank. Hamas has outstripped the Palestinian Authority for many years now. Remember in the 2006 elections Hamas won, then beat the Palestinian Authority on the battlefield. But there is this question of resistance. Mahmoud Abbas, the leader of the Palestinian Authority, is compromised by the fact that the Palestinian Authority has become corrupt, unable to make life better for Palestinians, and unable to take any steps—because of the extreme compulsion under which he is forced to rule the Palestinian parts of the West Bank that he rules—unable to relieve Palestinians of their suffering. That is to say, no steps towards a resolution of the conflict. No steps towards justice. That provides an opportunity for Hamas to reinforce the idea that resistance is important. They are the leaders of resistance. And that Mahmoud Abbas is fatally compromised by his willingness—alleged willingness—to compromise with the Israelis, who have been unwilling really to give an inch. And that has provided Hamas a certain political buoyancy outside Gaza. And, quite frankly, if we’re talking about the widening of the conflict, that has to be something that the Israelis are worried about, given the support for Hamas also in the West Bank. FROMAN: All right, let’s open it up. We have, as Farah said, about three thousand participants. We will try to get to as many questions as possible. Please keep them—please keep them short and make them questions. And, Sarah, perhaps you can walk through what the process is for people who want to ask questions. OPERATOR: (Gives queuing instructions.) Our first question will come from Zach Greenberg. Zach, please accept the unmute prompt. Q: I don’t believe that I raised my hand. OPERATOR: We will take our next question from a written question from Sarah Danzman, who asks: Is there any possible pathway toward a humanitarian evacuation of Gaza? At least a voluntary one focused on women and children? What kind of diplomacy is needed to organize this, if it is even a remote possibility? Relatedly, can you imagine any situation in which the Israeli government would lift a siege on Gaza so long as Hamas continues to control it? FROMAN: Farah, do you want to try to take that one first? PANDITH: Sure. I think that there is a current effort underway from the United States to try to work on that corridor. And I know that it’s complicated because we have a political will in Israel, as such, at the moment that things are complicated along the Egyptian gateway for that corridor. So it’s being worked on at the moment. I will say, I know Steven will want to jump in on this. But I will say that every effort has to be made, even though things may be slow in coming. And I know everybody wants to see that open up immediately. But I—but I have to—I have to say that there’s a worrisome—as every hour goes by we’re hearing the really incredibly difficult dimensions of life in that part of the world. Gaza has almost two million people in in there, as you’re well aware in terms of your question. And reporting is suggesting that they are really desperate for clean water and food. So I don’t know, Steven, if you want to jump in. I saw your— COOK: Sure. The United States is working with the Egyptian government in trying to convince the Egyptians to open a humanitarian corridor to allow Palestinians who would like to escape the violence. The Egyptian government has so far said that it would not. The Egyptians are, of course, a full partner with the Israelis in the blockade of the Gaza Strip. I think the Egyptians’ concerns are along a number of dimensions. The first is, Egypt is a very poor country that is confronting major economic problems on its own and does not know how it would care for what could potentially be huge, huge numbers of Palestinians. The Egyptians are already confronting a refugee crisis from the civil war in Sudan. They also don’t want there to be yet another Palestinian refugee crisis that is literally within their borders. The Egyptians have taken a principled position that the resolution to the conflict between Israelis and Palestinians lies with Israel, and that they do not want to be forced to take responsibility in that way. And then finally, related to that, the Egyptians are quite worried that if they open up a humanitarian corridor, it will be permanent once this conflict comes to an end and Gaza has essentially been razed. And it seems to be what the Israelis are saying. That the Israelis would then turn around and say: Well, now this is an Arab responsibility. And when they say “Arab responsibility,” they mean an Egyptian responsibility. Again, keeping with the Egyptian position that the resolution to this problem is really an Israeli one. So that is why the Egyptians have been resistant. I suspect that there are ways to move the Egyptians. They are in need of economic assistance, debt relief. There are things that we can do. But whatever we do to force them, or compel them, or encourage them to open up that corridor, it will likely be subject to very significant restrictions. That means that probably men will not be permitted through, but at least women and children who remain in Gaza right now with no place to go will at least have some semblance of safety. FROMAN: Sarah, let’s go to another question. OPERATOR: We will take the next question from Luciano Moro. Q: Thank you for the opportunity. My question is about the prospects of peace. What I see in the discussions is talk only about war, but I have yet to hear anything about the prospects of peace. And given the current lull in any meaningful peace talks for decades now, what are the possibilities that there is such even a desire at all to find some lasting solution to the current crisis? Thank you. FROMAN: Steven, you want to say that one? COOK: Yeah. I think the prospects for a peace process, as we have come to know it in recent decades, are near zero. Obviously, at this moment, the Israelis have no appetite for this, and have said that they will resist international pressure. Now, of course, wars open up new pathways and new possibilities. There’s been a lot of talk about this as—because the attack came on the fiftieth year and one day anniversary of the October 1973 war, there have been some talk about the analogies to this. Certainly there are some. The extraordinary surprise of the attack being one of them. But I think the difference is that Anwar Sadat sent the Egyptian army into battle in order to open up new diplomatic opportunities that ultimately led to Egypt-Israel peace. Hamas, if you look at its charter, went to war with Israel to suck Israel into a war and to kill as many people as possible. But, again, I think the chances are near zero right now for a peace process. But who knows what will happen in the coming months. One can hope. And, like I said, wars do tend to open up new opportunities for diplomats to explore and perhaps advance something that will bring a little more stability to the area. TAKEYH: Can I just say one thing about this? Excuse me, Farah. There will be multilateral diplomacy involved in this. As Israelis move in, and who rules Gaza? What kind of aid provisions are given to it? What role does EU aid have? What role does the United Nations have? What role do the regional actors have? What role does the Islamic Conference have? There will be multilateral diplomacy. This war requires that almost. And those processes will be going on. And as derivative of that process, you may see at some point some kind of a peace process. If you kind of keep the 1973 analogy, you first have these armistice agreements, and then you try to build upon that. So, there’s a whole question of—oh, please go ahead. COOK: No, Ray, I take the point. But, of course, the Israelis were dealing with another state. TAKEYH: No, I understand that. COOK: And dealing with a leader who sought some sort of change in the status. TAKEYH: No, no, I understand that. But that there’s going to be a huge question about who rules Gaza, because nobody wants to. (Laughs.) COOK: Right. PANDITH: Can I just make a point on the issue of peace? And, Luciano, thank you very much for including that in this conversation because I think it is important. But I want to say a couple of things. The first is, you cannot have success if during the times of noncrisis you are not communicating and you’re not building to the best of your capacity on sort of diplomatic connections. And toward that end, this is a really terrible way to learn, once again, a lesson about the fact that our world is really small. And that we cannot look only in one part of the world and ignore another. So I think that what we ought to be doing is, as we try to achieve peace, is to look at all the levers that we have at our disposal to be able to do exactly what Ray said, on the different tiers of conversations that are taking place. And then the second thing is, United States, by the way, does not have ambassadors in many of the countries in this part of the world. And I will bring us back to the United States for a moment, because I think that the political gridlock in our nation on that piece, where we normally move forward with diplomacy without these kinds of stumbles, is a real problem for us. And then thirdly, and importantly, is the imagination question. And that is, we have not done well in imagining what could be. We, unlike many other disciplines, those people in foreign policy tend to keep in our little silos and just think about what happened in the past and must be, you know, what’s going to happen in the future. We’re in a very different posture today. We’re dealing with a world that is mostly digital—I mean, really young people thinking differently about how to disrupt because they’re digital natives. We’re thinking about nodes of influence that are very different. We’re thinking about how culture affects how narratives are formed. Toward that end, it would behoove diplomats to think creatively and imagine differently what peace could be and how to get there. And I think it is really important as we have the conversation about innovation in foreign policy, which we’re doing in other places, that we also think about that in terms of places in the world that need new solutions. And this is a really good time for some strategists to take a good look at what we’ve gotten wrong and what we can improve upon. FROMAN: Sarah. OPERATOR: Our next question is a written submission from Azzedine Iayachi: Farah, how can ideology be targeted while ignoring what brought it about, the Israeli occupation and the living conditions of the Palestinians? The internet will not affect these objective, tangible conditions. PANDITH: OK. I think I understood. I’m sorry, I thought I was waiting for another part of the question. OK, let me just go on the two things. One is the first thing I said when I commented today was that Hamas is a terrorist organization. And violence in the name of a political cause or a religious cause is not acceptable, period, whether it is al-Qaida, whether it is ISIS, whether it is the Taliban, whether it is any form of terrorism. We have red lines on that. I know what you’re saying about the conditions on the ground and the really difficult situation that has gone on for decades. But there is no excuse for terror. There is no excuse for a terrorist organization to be able to do this. I would—the second point I want to make is your point about the internet. I’m going to push back slightly. I think I understood what you were getting at, but I want to say this to you: Without the capacity of social media to push out fake accounts, fake news, manipulate videos, turbocharge narratives, you would not have the kind of global responses that we’re having in the world today on multiple fronts. So there is a deep connection between how the internet is being used by terrorist organizations and those that absorb messages that are coming in, how they organize, how they raise money. So I don’t know if I know the other piece of what you were trying to get at, but I hope that that answered your question. FROMAN: Next. OPERATOR: We will take the next question from Jim Tisch. Please accept the unmute prompt. Q: Do you think that the Hamas attack on Israel exceeded Hamas’s expectations? And did Hamas expected that the—expect the scope of the reprisal from Israel? And, finally, if so, what’s Hamas’s long term goal if they’ve been kicked out of Gaza, and if every member of Hamas leadership now has a target on their back? FROMAN: Steven. COOK: I think, given the way in which the Israelis have been able to bottle up Hamas over many years and, from time to time, employ violence to establish deterrence with them, I think Hamas can only come to the conclusion that they exceeded expectations on Saturday and are continuing to exceed expectations in terms of the number of casualties and damage they have done—they have done to Israel. They have had to have known that this would invite a massive response from Israel. Which leads us to infer that this is part of their goal, is to draw Israel into a grinding conflict in in the Gaza Strip that they can hold on, do damage to those invading forces, and hold out long enough until the international community expresses its outrage, forces the Israelis to pull back before their goals are achieved, and that Hamas will live another day. As far as their leadership on the outside, I would expect that the Israelis are going to be seeking to hunt them down. But certainly, within the Gaza Strip, clearly a goal is to grind the Israelis down and ensure—and under the belief that the international community will force the Israelis to stop. The difference is, given the number of killed, the number of wounded, the Israelis—at least in the first week—have indicated that they will resist all such outside pressure until their goals are met. TAKEYH: Can I just make a brief addendum to Steven’s point? If you look at the strategy of war here, it’s actually—the Iranians first developed this on the battlefields of Iraq. Namely, you compensate for technological superiority of your enemy by moral virtue, by being even more zealous. That actually was transported to Hezbollah, and to—namely, even when Israelis were attacking Lebanon very, very significantly in 2006, Hezbollah’s idea was you keep resisting, you keep shooting off rockets, you resist even when that resistance seems quite, quite extraordinary. So this is essentially you display your virtue and your morality, irrespective of the odds, irrespective of the technological superiority of your enemy. Your resistance continues, maybe not the same level, but at some level. The methods of Hamas are very close to ISIS, but in some way this is Hezbollah’s playbook. You go across this border. You take hostages. And you keep resisting even when there’s an onslaught coming. So to some extent, I think Hamas may have that strategy. Which reinforces Steven’s point that if they just keep resisting, resisting, resisting, then eventually the international community will come in with some sort of an armistice and some kind of an agreement about how to move forward that we’ll try to impose on Israel. Although, as Steve was mentioning, Israelis are not in a compromising sort of a mood today. FROMAN: Sarah. OPERATOR: Our next question is a written submission by Patrick Duddy: What role can and/or will Egypt play and the weeks and months ahead? FROMAN: Steven, that is definitely you. COOK: Yeah, it’s definitely up my alley. The Egyptians have long played an important role in Gaza in brokering ceasefires and sort of knocking heads when Hamas threatened to go too far. The Egyptians have a real security concern in Gaza. They, themselves, are fighting extremists in the northern Sinai. They have detected cooperation between Hamas and those extremists. Of course, Hamas is a creation of the Palestine branch of the Muslim Brotherhood. Egypt is at war, literally and both politically, with the—with the Muslim Brotherhood, which is sort of the granddaddy of all Muslim Brotherhood organizations. But at the moment, it strikes me that the Egyptian role is really going to be one where if the United States prevails upon them, providing humanitarian corridors for the Palestinians, as we discussed before. There is no mediating role right now. It’s probably not terribly distressing to the Egyptian leadership that the Israelis take down Hamas. In 2014, during the conflict between Israel and Hamas, the Egyptians were counseling the Israelis to destroy Hamas. The Israelis resisted Egyptian entreaties because they were concerned about a power vacuum in Gaza and who would rule it. Those views have now flipped, and the Israelis seem intent on bringing an end to Hamas, whereas everybody’s wondering what would come next. But specific to the question, the Egyptian role in mediation is inoperable right now, and it’s going to be a humanitarian issue going forward. OPERATOR: Our next question is a written submission from Dorothy Jean Weaver: Are the words “impending genocide,” used recently by Jewish Voice for Peace, appropriate words to describe what is about to unfold in Gaza? What will be left of Gaza after any major incursion by the IDF? FROMAN: Farah, you want to take that one? PANDITH: I don’t know how to answer that question. FROMAN: Yeah. PANDITH: I really don’t. COOK: Let me just offer a thought about this. I think the word “genocide” gets thrown around a lot these days, in an inaccurate way. I think we can say that, unfortunately, Palestinian civilians are going to suffer, and are already suffering tremendously as a result. And therefore, as each one of us had pointed out, there is a humanitarian emergency here. And part of American, and European, and Arab diplomacy has to be focused on convincing the Egyptians that opening this corridor is important. And that whatever we need to do, there is a real fear that the Israelis in their fury will do so much damage to the Gaza Strip that it becomes a place that people can’t inhabit, at least for the short and medium term. And that’s why it is so incredibly important. But I do caution people on this issue of genocide. It’s extraordinarily loaded. And it’s extraordinarily loaded also when it comes to when you’re talking about the Jewish state, and Jewish people. FROMAN: I agree with that. OPERATOR: We will take the next question from Linda Ketterer. Q: Yes. This is Linda Ketterer. I live in Traverse City, Michigan. I’m on the board of a local organization called the International Affairs Forum. I have a simple question: What can ordinary U.S. citizens do in light of this horrific situation? Is there something that normal people could be doing that might be helpful? FROMAN: Well, maybe I would just start off by saying, as many of my colleagues have said, there are devastating consequences in Israel and there’s going to be humanitarian crisis in Gaza. And I know we are identifying organizations to whom to make contributions and donations to deal with those issues. And certainly, encourage others to do that as well. But if anybody else has others they think of. Yeah, Farah. PANDITH: So, Linda, thank you for that. And I have three things that a regular person can do. First of all, our country needs to put Jack Lew in place in Israel. And so they should talk to their congresspeople and urge them to make that process happen faster. Secondly— FROMAN: Just to say, just so everyone knows, Jack Lew is the person who’s been nominated to be U.S. ambassador to Israel. Right now we have no ambassador there. And he’s pending confirmation. PANDITH: Yeah. And there are other Arab states that also do not have ambassadors. So, there’s that. Secondly, I made reference to the fact that I was very worried about what’s going to happen here in the United States around the rise of antisemitism. And I think it is really, really important that regular citizens are attuned to this, and that we are thinking about how to build capacity to be kind to each other, but also to be alert, and to help people of different faiths and backgrounds around us. There will be extremists, domestic extremists, that exploit this moment. That are going to use this moment to actually make other Americans unsafe, whether they’re Jewish or Muslim or looking Arab, whatever that might mean. So we have to be alert, and we have to do more. And then thirdly, and this is extremely important, and that is to understand how vital it is that the language that we use in everyday life, the lexicon, does not set up—don’t use lexicon that sets up an us-versus-them mindset, because it actually makes an impact. And you will notice that the things that are being stated by our folks in the administration are very carefully worded. For a reason, because we know that words carry power. And that is true in schools. It is true in parent-teacher conversations. It is true in your local cafe. So as you think about things that you can do in daily life, it is really important that you understand that what I would call a nano intervention can make a difference. FROMAN: Sarah, let’s try and take one more, if we can. OPERATOR: We will take the last question from Antonio Fins. Q: Yeah. Thank you for taking my question. Along those lines about antisemitism, we have the AJC, the Anti-Defamation League have both issued statements in the last couple of years noting a rise of antisemitism. How concerned are you that at some point,  we’ll see the sort of the united front that we’re seeing in Congress right now in the political leadership—that united front behind Israel, that will see a breakdown similar to what we’ve seen in Ukraine, where a year and a half ago they were in the Congress waving flags and now you have major divisions within the Republican party about supporting Ukraine? And I don’t know if you saw—anyone heard Mr. Trump’s speech from last night, but he talked about Netanyahu pulling out of the Soleimani drone attack back in early 2020, and how it was a disappointment to the U.S. And sort of making the argument that Netanyahu kind of lacks resolve. And I just wonder how helpful that would be at this time, when the Israeli leadership is under such pressure, to have someone questioning it like that, and someone who is leading—if the polls are right—the leading presidential candidate. And, again, thank you for taking my question. FROMAN: I won’t comment on the particular candidate’s comments that you raise, only to say that this is a time when even in Israel where there’s been quite divisive politics over the last couple of years, people are pulling together to deal with this tragedy. And I think, here in the United States we need to pull together both in support of Israel and in support of Ukraine. And this is about rules—international rules, and enforcing them, and standing up for decency. And the role of the United States in defending the the rules-based international system. And so I would hope that we would be able to maintain bipartisan consensus in support of both countries, and in the context of both of these conflicts. I’m afraid we’re going to have to stop it there. First, I want to thank Farah, Ray, and Steven for taking the time to do this public forum. I want to thank everybody who has participated. The Council is committed to providing information, as I said, on a nonpartisan basis, facts-based basis, in support of broad public education on the issues facing the country and American foreign policy. We are honored to be able to provide information like this during this crisis. Stay tuned; we’ll be continuing to. And look for our publications, CFR.org, Foreign Affairs, our other major publications, our podcasts, to stay up to date on what’s going on and to provide some helpful historical and geopolitical context. Thanks very much.
  • Israeli-Palestinian Conflict
    The Israel-Hamas War’s Next Phase, Poland’s Democracy Test, Australia’s ‘Indigenous Voice’ Referendum, and More
    Podcast
    Israeli and Palestinian casualties rise as fighting between Israel and Hamas continues; Poland holds a pivotal parliamentary election; Australia votes on whether to enshrine representation for Indigenous people in its constitution; and Afghanistan struggles with the aftermath of a 6.3-magnitude earthquake
  • Africa Program
    Academic Webinar: Africa on the Global Stage
    Play
    Landry Signé, senior fellow in the global economy and development program and the Africa Growth Initiative at the Brookings Institution and executive director and professor of the Thunderbird School of Global Management at Arizona State University, leads the conversation about Africa on the global stage. FASKIANOS: Thank you and welcome to today’s session of the Fall 2023 CFR Academic Webinar series. I’m Irina Faskianos, vice president of the National Program and Outreach here at CFR. Today’s discussion is on the record and the video and transcript will be available on our website, CFR.org/academic. And, as always, CFR takes no institutional positions on matters of policy. We’re delighted to have Landry Signé with us to discuss Africa on the global stage. Dr. Signé is a senior fellow in the global economy and development program and the Africa Growth Initiative at Brookings Institution. He’s also a professor, executive director, and the founding codirector of The Globalization 4.0 and Fourth Industrial Revolution Initiative at Arizona State University’s Thunderbird School of Global Management, and distinguished fellow at Stanford University’s Center for African Studies. He serves as chairman of the Global Network for Africa’s Prosperity and is also the author of numerous scholarly publications and several books. His most recent is entitled, Africa’s Fourth Industrial Revolution. And it was published by Cambridge University Press this summer. So, Dr. Signé, thank you very much for being with us today. I’m going to throw you a very big question, and you can take us in the direction you would like, by talking about the important challenges and opportunities facing countries across Africa. SIGNÉ: Hello, everyone. And thank you so much, Dr. Irina, for so kind an introduction. It’s a pleasure to be with all of you today. So when it comes to Africa, I want to highlight a few key trends why Africa is playing such an important role in the global sphere. So the first thing that I want to share to everyone is Africa’s transformation is more substantial than what most people will think. And this is for many reasons. One is that, especially pre-pandemic, trade and in and with the rest of the world have grown for about 300 percent, which exceeds the global average of a little bit less than 200 percent. So that is a key dimension to highlight. And this is also driven by the competition between emerging countries, such as, of course, Russia, Indonesia, Brazil, China, and more established and industrialized nations such as the United States, France, and others. So that is one of the key trends that I want to highlight. So Africa is richer and is transforming much more than what most people will be thinking. So the second trend that I also want to highlight, why Africa is so important in the global sphere, is that by the end of this century Africa could reach about 40 percent of the global population. Listen, I said 40 percent. So this is incredible, especially as the continent represent now only about 17 percent of the global population. So that is a key dimension to take into consideration when speaking about Africa, how Africa engages with the rest of the world. A third trend that I also want to highlight is really the rise of global partnerships and the competition, as I highlighted, between emerging and established powers. So, as a matter of fact, between 2006 and 2016, for example, China trades with Africa surge with imports increasing by 233 percent, and exports increasing by about 53 percent. This is a substantial growth in engagement. And if we compare—so with Russia, for example, it was about 142 percent of change in imports from Africa and about 168 percent change in exports with Africa. So in comparison, and with the rest of the world was only about 56 percent for change in imports and 18 percent for change in export. So this is another key trend. And a country like the United States still needs to expand and to do much more in terms of those engagement. This also apply with—to the countries in the European Union in general. So another trend that I want to highlight is really the, let’s say, fast urbanization that we see on the continent. So the continent will be growing from about five cities—will reach about five cities of more than ten million inhabitants, in comparison of only three in 2015. And will exceed fifteen cities of more than five million inhabitants, in comparison of about five to six in the recent year. So another point, when people speak about Africa, I want to speak about industrialization in Africa. Of course, we have to acknowledge the diversity of the continent. Some would say fifty-four member states, because we have about—those other ones recognized by the United Nations. But don’t be surprised if you also hear people mentioning instead fifty-five countries, because the Western Sahara is also consider as a member of the African Union. So when speaking about industrialization, people may—some people may consider Africa as deindustrializing. But that is because they’re not looking at one of the things that we call at the Brookings Institution industries without smokestacks. Those industries are important because they have similar characteristic when they compare to traditional manufacturing. And those similar characteristics include, for example, the tradability, they are labor intensive, and the store—they absorb a high quantity of moderately skilled workers. But they are also—they also have a high level of productivity. Irina, you mentioned my book on the Fourth Industrial Revolution. I want to connect, because when people speak about digitalization, innovation, they will mostly think about the Silicon Valley. They will think about some of the emerging nations—Israel, India—in addition to the U.S., of course. A key dimension to highlight is that in the 1990s New York City had more mobile phone subscribers than the entire continent of Africa, where now the continent has hundreds of millions of mobile phone subscribers. So in addition, we have disruptive innovations such as mobile banking, with M-PESA, for example, which is a digital application allow—which allow to provide banking services, digital banking services, to African citizens. This is another illustration of the important dynamics with Africa. Let me finish with about two or three additional points, and I’m looking very much forward to the conversation. I will highlight the critical importance of regional integration. We have, for example, the African Continental Free Trade Area, which was adopted in 2018, ratified by a sufficient number of country in 2019, and was officially launched in January 2021. And that is an incredible speed from the signing to the coming into force of the second-largest trade organization in the world, or let’s say trade area in the world, after the World Trade Organization, of course, in terms of number of countries. So this is a key dimension. And another trend to highlight, despite some of the challenges that we see in many African countries in terms of democratic retreat. The overall trend is that African citizens want democracy. So they want accountability. But they also want democracy to deliver. And let me finish with a trend related to business. The combined consumer and business spending in Africa will reach or exceed $16 trillion U.S. dollars by 2050, and about $6.7 trillion U.S. dollars by 2030. So Africa really is a place with phenomenal opportunities, despite the challenges that we see. Climate change affects Africa more than other regions, for example. Some of the most vulnerable countries in terms of state fragility. We have, as I also mentioned, some democratic recession. But despite those challenges, the continent is really growing and is really transforming at a very important pace. And I enthusiastically look forward to engaging, to answering your many questions. Thank you so much. FASKIANOS: Thank you very much. That was a great overview. Obviously, this is such a big topic. So now we’re going to go to all of you for your questions. (Gives queuing instructions.) Alright, so the first question we’re going to take is from Pearl Robinson. Pearl over to you. Q: Hello. Very pleased to meet you. I have a question, something I’m going to ask you to do. I’m at Tufts University. FASKIANOS: Thanks, Pearl. Q: Can you use this wonderful, optimistic introduction, and connect it with a discussion of the wave of coups in the West African Sahel? Because I find myself having to talk about both. And I thought that you began with the last decade’s narrative of Africa’s growth and opportunities. And today, everybody is talking about democratic decline and all of these coups in the context of everything. So I’d like you to put your talk onto an introduction for me to talk about the coup situation. SIGNÉ: Absolutely. Thank you so much for the question. So I have studied the—also the democratic situation in Africa from the—from the independence to the last decade. And one of the reasons, of course, when you have democratic interruption, there are serious reasons to be concerned. And this is mostly related to the ability of democratic governance to deliver. Typically when democracy is promoted with many of the Africans, one of the key argument which was chose is that democracy allows citizens to have a better standard of living, deliver economic outcomes, education, health, security, good governance, less corruption, among others. And many of the countries which have faced a coup are countries—when you think about Mali, we think about Nigeria, Burkina Faso, Chad, among others—there are countries where citizen are facing serious economic—a serious economic situation, deteriorated by the pandemic, of course. They are not the only country but deteriorated by the pandemic. You also have a question—the security question in the Sahel especially, with violent extremism. But I want to put things in perspective because democratic development is a slow-moving process. And although it is very unfortunate some of the development that you are seeing in terms of coups, when you look at Africa in the long-term perspective, when I was looking, for example, in the 1980s, almost the entire continent was red. Red, meaning authoritarian. But now the majority of African countries have elections. More than half of those country have free, fair, and transparent, meaningful elections. They are able to choose their government. And this so I’d just highlight those point, to say I classify those countries—I had them in four categories. So one was the uninterrupted democracy. So the countries which once they become democracies, they remain uninterrupted democratic. And those countries are outperforming overall, economically speaking and with many of the other benefits of democracy that I’ve mentioned. But the countries which are interrupted are mostly the countries where democracy is not necessarily delivering wealth. But will that change the broader trend on the continent? I don’t think so. So I think, yes, we have to acknowledge those challenges. We have to act vigorously to address them to reduce the negative impact. But those are not necessarily—I don’t think that that makes Africa a hopeless continent, as depicted by the Economist in the early 2000s, as discussed before. I’ll pause there. FASKIANOS: Thank you. I’m going to take a written question from Tanisha Fazal’s student Jack Drouin, and they’re at the University of Minnesota: Will Africa as a whole ever compete at the same level as the United States and China in international trade and production? SIGNÉ: So the idea behind the African continental trade area is to make Africa stronger internationally when dealing with the rest of the world, while unlocking also the potential of trade within Africa. For example, when African countries trade with one another, more than 40 percent of products exported are manufactured products. Which mean that they create jobs and opportunities for young people, for women, for the economy. They accelerate industrialization. And when African countries trade with the rest of the world, about only 17 percent of those countries—of those—of the products exported are manufactured products. So the idea really behind the African Continental Free Trade Area is not just to grow African trade with—and improve countries’ trading with one another. But it is also really to make Africa stronger when engaging with other countries. As a matter of fact, Africa still represents less than 3 percent of global exports. So this the reason why when I engage with some leaders, some are wondering if whether the AfCFTA was really needed. There is no doubt that the African Continental Free Trade Area was needed, because partnering and coming together to engage with them makes the continent stronger. FASKIANOS: Thank you. I’ve never seen so many questions. So I’m going to go next to Fordham IPED. They have their raised hand. It’s the International Political Economy and Development Program at Fordham. Q: Hi. My name is Julisha. I’m a student here at Fordham in the IPED Program. And thank you for your presentation, Landry, if I may call you that—I’m sorry, Professor. My question is—and I come from the continent. My question to you is, you seem very optimistic about Africa, as we call it. But why exactly? What gives you this optimism, given the fact that different countries have varying problems, and also we’ve got different levels of infrastructure and productive capacities? And then also, we haven’t had that much success in relation to the regional FTAs. So why optimistic specifically about this one? Should we focus more on maybe building stronger regional bodies and then come together as one consortium? SIGNÉ: Thank you so much for your question. I don’t think that it is either/or. And you have to put in perspective also, again, when—I like to look at things from a historical perspective, putting things in context. And when we put things in context—again, I mentioned, for example, before, in less than a couple of decades Africa went from being a continent almost full of authoritarianism, to a continent where in perhaps the past six, seven years you have had an incredibly important number of countries which where the incumbent lost the election or was changed through an electoral process. So those are important gains not to overlook. When we also speak about poverty, for example, so we are also seeing positive—although, and I published an article at Brookings about it—why, despite the fast economic growth just before the pandemic, the continent had an important number of poverty. The key dimension here was poverty in terms of percentage of the population went down, but the continent is also growing at a fast rate, the population of the continent. So which means that even if you’re in relative number you have a reduction of poverty, in absolute number we can still have an important number of poor. But if you also put that further in context, by removing—of course, you could not remove them—but by considering Nigeria and Democratic Republic of Congo, which are countries with the highest concentration—not the highest, but an important number of poor, the picture related to poverty on the continent will be very different. Another reason of my lucid optimism is that Africa—more than 50 percent of the African—close to 60 percent of the African population is below the age of twenty-five. So what this means, that everything is possible in an incredibly short duration. You probably know what we have named the Cheetah—what George Ayittey has named the Cheetah Generation. So the generation of young Africans who are dynamic, they are innovative, in opposition to the elephant who are moving slowly. So this is also another characteristic. When you look at innovation and you look at entrepreneurship, the general entrepreneurship survey globally, when you compare Africa to the rest of the world, the percentage of optimism, of interest in innovation, in entrepreneurship, of willingness and of respect for the field is also higher in general. So, again, I understand why most people will be focusing on challenges versus opportunity. But you also know, like me, that when in 2000 the Economist wrote that article about a hopeless Africa, in 2011 they wrote another issue about Africa rising, apologizing about their previous assessment. Because six to seven of the world’s ten fastest-growing economies in the first decade—the first fifteen years of the twenty-first century, were located in Africa. So yes, we have numerous challenges. But most countries, which were at the level of development of many of the African countries, have also had challenges. So. yes, we have to address those challenges. And that is also part of what my work does with the Brookings Institution—identifying how to bridge the gap between the policy intentions and the implementation outcome. And a part of doing that is also to shift the mindset from looking exclusively at the challenges that Africa is facing, to also think about what are the opportunities? How can we identify those opportunities? How can we transform those opportunities into reality, into positive outcomes? Because the young generation in Africa deserve it. FASKIANOS: Thank you. I’m going to take the next written question from Dayanara Miranda, who’s an undergraduate student at Lewis University: My question is, besides agricultural and mineral resources, what other markets can African countries enter to grow their economies? SIGNÉ: So, that is another extremely important question. And let me say, overall Africa—so, it depends as to whether we are speaking about the consumer spending, household consumptions, or whether we are speaking about business spending. In terms of household consumption, by 2030 the continent will receive about $2.5 trillion U.S. dollars of household consumption or consumer spending. And some of the largest sector include food and beverage because people need to eat, but also include housing, healthcare, financial services, transportation, and education. So to put things in perspective, African countries will be growing faster in some of those sectors compared to the growth of other developing economies. Now, if I also think now about the business-to-business spending, so the continent will be home of about—of more than $4 trillion U.S. dollars by 2030. Of course, the largest area for that spending will include agriculture and agri-processing. But we will also have manufacturing, construction, utilities, transportation, wholesalers, and retailers in terms of resources. So, yes, a place—Africa is an important business destination for people who are, again, open to identify opportunities and to manage the risk. Of course, have risk, but those risks also exist in Latin America, exist in the Middle East. exist in the broader—in the broader Asia, and also in the—in some of the advanced economies. So, again, I think, like, a change of mindset is important. One of the reasons why China become the first trade partner of Africa, the first investor in infrastructure amount order, is because while other countries were looking at the challenges that Africa is facing, China and other emerging countries were looking at opportunity and how to manage their risk amount order. Of course, that is not to say that the Chinese model of engagement is necessarily the right one, but it’s just to say that the difference of mindset may explain why some country may be identifying more opportunities than other. But I’m also very happy to highlight the fact that recently, the U.S. administration has also been very much active—much more active in terms of engaging with Africa from an economic perspective, from an opportunity business perspective, including the Africa Growth and Opportunity Act. Thank you. FASKIANOS: Thank you. Thank you. I’m going to take the next question from Dorian Brown Crosby. Q: Yes. Hello. Thank you, Professor Signé, for this discussion. I’m from Spelman College. And I do have a question regarding remittances. Can you speak to the current impact of remittances that those in the diaspora are sending to African countries? And how is that affecting Africa’s economic trajectory? Or even speak to a specific country. Thank you. SIGNÉ: Absolutely. Thank you very much for the questions. Remittances are playing a key role in Africa. In some of the countries they are exceeding even, let’s say, the official development assistance. So that is a key point to highlight. Perhaps the nuance that I want to bring is that most of the remittances are sent for consumption, for family consumptions, among others. A shift that we may want to see happen is to turn—(inaudible)—to increase perhaps those remittances, and especially the category of remittances, shifting only from consumption, for productive use, for economic use, for entrepreneurial activities, as well on the continent. But, yes, remittances are key for development. They are extremely important. They are making a difference. And I connect with that question with the notion of diaspora. The rising role of the diaspora is also one of the key trends. Of course, I didn’t—I wanted to be brief in my preliminary comments, but diaspora are really playing a key role in fostering the relations between Africa and the rest of the world. They play the role of investor. You have also the remittances, as you have just mentioned. They are diplomat. In addition of the higher representation that we are also seeing of people of African origin in international organizations, whether we speak about the World Trade Organization, the World Health Organization, the International Finance Corporation, among other. So there’s really a trend where the diaspora playing a key role, both financially to remittances and have an increased demand, also for investment. FASKIANOS: Thank you. I’m going to combine two questions, two written questions, because they are along the same lines. One from Thomas at Oklahoma State University and Kihoa from Adelphi University, and it has to do with China: China’s trade with—China’s aid to Africa, is it purely altruistic? Should African states be receiving Chinese aid? And should Africa be giving aid to historically authoritarian regimes? And then the second question is to have you talk a little bit about the Belt and Road Initiative, and how that initiative is influencing trading partners with other Western countries. SIGNÉ: Absolutely. Thank you for the important question. So let me—to further speak about China in Africa, some key trends to highlight is that, first, you have an exponential growth of exports to Africa, increase imports from Africa, substantial lending to African countries. So China is already one of those, the major lending on transport, power, and mining, the Ex-Im Bank is really leading the way in terms of loans. I do prefer to speak about development versus assistance, development finance instead of developing assistance, or on the longer term, a growing trend in terms of FDI. So China is dominating also the important investment on the continent. You have an important presence of Chinese workers, and forgot—not to forget the Forum on China-Africa Cooperation, which remains critical to an action of the multiplication of the of the Confucius Institutes on the continent. Despite that important presence, a key element you mentioned is that per Afrobarometer survey, African citizen still prefer the U.S. model of development to the Chinese one. So this is an important dimension that I want to highlight. And whether China is altruistic, it’s important to mention when we speak about the commitment, they are not necessarily—China is a country with its own national interests. Perhaps the way of doing business is different, but they are not acting toward Africa, from my perspective, from an altruistic perspective. They’re really looking to achieve interest, whether from a geopolitical dimension, economic interest to secure especially energy, power, mining, oceans, agricultural lands for food security in China, among others. And many of the other countries in the world are doing the same. So I’m not—so, of course, we are speaking more about China, but most of the countries when they’re acting globally they are acting in alignment of their interests. And probably Jentleson, for example, has mentioned when we speak about the U.S. foreign policy as some of their drivers, which include what are the—of course, we have power, we have peace, we have prosperity, and we have principles. So foreign policy decisions are usually, let’s say, the result of a tradeoff between either power consideration, peace consideration, or security consideration, economic consideration, and principle consideration, which could include democratic development, and, of course, humanitarian intervention, and so on. So it depends on which country we are talking about. And to just connect it to the broader Belt and Road Initiative, I think that, of course, it is part from my perspective of China ambition to become the next global power. And in my conversation with many of the African leaders, their main concern—including head of states and head of governments—so their main concern is given the gap, the infrastructure gap that we have on the content, financing gap that you have on the continent, China is providing an alternative and China is acting quickly. However, many of the leaders with whom I’m engaging will prefer to deal instead with, for example, the United States. The United States is probably acting slower than some of the other players. But this is also because of the democratic process and the compliance mechanism, among others. But despite that, I think that there are still tools which can allow to be compliant, to respect the democratic principle, but also act faster, with more agility. And we are having conversations. I testified before the Senate on some of those questions, before the House of Representatives, before the U.S. International Trade Commission, sharing perspective on how the U.S. can further leverage its strength and the alignment to advance U.S.-Africa prosperity. FASKIANOS: Thank you. I’m going to take the next oral question from John O’Toole. Q: Well, thank you, because my question directly kind of follows off of that. So that’s very fortunate. FASKIANOS: Fantastic. Q: So my question was related to, like, Africa on, like, the global security scale. So, like you said, like, Russia and China are investing heavily, are—and becoming, like, major players, some might argue, in an attempt to be, like, first to market, in a way, in terms of being, like, colleagues with Africa. And you can’t really pick and choose who your partners are, especially if the people you want to work with, like the United States or the EU, aren’t moving as fast. But is there a concern that growing relationships with China and Russia could morph into a global security conflict? And that some African leaders might be afraid of becoming perhaps the next Lumumba where they’re characterized as, you know, perhaps a communist pawn, or something? Is that part of the thought process? SIGNÉ: Thank you for the important question. So it’s important to highlight a few considerations here. Typically, when many of the more established powers, whether you’re speaking about France, the United States, UK, when they are engaging with many of the African countries they take into consideration the principles that I mentioned before, whether we speak about democratic principles, human rights consideration, humanitarian consideration, among other. So those are really key dimensions that are taken into consideration with more traditional African partners, although it is not uniform. So you will also have the same country which will be trading both with some of the authoritarian countries. But when doing so, they will often bring the question of democratic governance, of human rights in the conversation. And the difference there with countries such as China or Russia, is they are decoupling trade, investment, and principle quotient of democracy—democratic quotients, human rights quotients. For obvious reason, when you look also at your level of democratic development, or at the situation of human rights in your—in your countries. So now, what are the potential risk for the continent? I think that the—many of the—we have seen the presence, whether in an official capacity or in an unofficial capacity of foreign forces in Africa, including from Russia. So to what extent are they influencing the political sphere? To what extent are they fueling or contributing to fuel some of the insecurity and conflict that we have, as we say, in the Sahel? Or to what extent are they helping those country to address some of the challenges faced? I think the growing support that we have seen for Russia, or China, or for some of the emerging countries is related to a narrative, which may not always be founded, but a more appeasing and more respectful narrative that they have when engaging with some of the African countries. But that doesn’t mean that they are acting in a way which better advance the interests of those countries. And African leaders are often in a complex situation where they don’t necessarily—some of them, of course, will be very clear in terms of their preferences for Western countries. And others, in between, where they want to be certain that they will not be dropped, if I can use the terms. And this is because historically, even some of the best partners of the West—and we look at the case of Niger, when the military coup happened, so despite some political discourses the West was not able to do much. So those are elements which create also a certain level of insecurity on the continent. So yeah, your question is extremely important. And I think that there are risks which are associated with the—with the growing involvement of those emerging powers, like China, especially as it is shifting or has shifted from the economic quotient to a more security, military quotient and cooperation. But some of the countries with which they are cooperating, or perhaps even most of those countries in terms of military engagement, are not necessarily countries with their reputation or leaders with the reputation of—or with the best record in terms of democratic progress or in terms of human rights. FASKIANOS: Thank you. I’m going to take the next question from Zachary Billot, a student at the University of Nevada, Las Vegas: How will increased environmental challenges related to climate change impact institution and governmental efficacy in Africa? Can Africa be expected to transition to green energy if there isn’t substantial foreign investment? SIGNÉ: Absolutely. It is extremely important. Thank you for the question. It’s extremely important to highlight the consequences of climate change on the continent, especially in the fragile countries, in the fragile regions, especially also when combined with governance challenges. So many of the conflicts in the Sahel—and I publish a—I co-published a report with Brookings on the question on how—on the nexus—on the climate change-security-development nexus. So many—if climate change doesn’t necessarily—the relation between climate change and conflict is not necessarily causal, but there is a strong correlation at least when it comes to exacerbating initial conditions in regions where you have poverty and where governance is already quite weak. So the question is, yes, climate change is increasing the likelihood of conflict, especially in an area where we already have bad governance, or poor performance. And how to address some of those questions? Of course, we have involved also in drafting the human development—the Sahel Human Development Report, where the topic is on using energy to unlock Africa potential to contribute to sustainable development, how we can leverage in a sustainable way. And, yes, I do believe that the continent has a path. So of course, I will not necessarily disclose the findings, because they will have to be officially launched by the United Nations Development Program later this year, early the next one. But there is a clear path for Africa to achieve a greener future, especially as the continent has, I would say, the luxury of learning from what has been done on the negative experiences of some of the advanced economies. But also on capitalizing on technology to achieve those goals. Now, you mentioned about investment. Yes, that is an area where global partners who have committed, including the United States, France, Canada, among others, to support a greener revolution, economic revolution, energy transition, industrial development on the continent also have to play their part. Of course the global community, the World Bank, the International Finance Corporation, among others. So Africa has the potential to achieve it, but not alone. With the collaboration of global partners, including some of the biggest polluters. FASKIANOS: Great, thank you. I’m going to go next to Alicia Hoffman. Q: Hello. How are you? I have a question regarding some previous legal agreements that were put forth between the ACP countries and the European Union. So my question is, I would like for you to highlight and discuss the role of the comprehensive legal agreements such as the Rome Agreement, that is now defunct, the Lomé Agreement, the Cotonou Agreement and now the post-Cotonou Agreement, which was just finalized last month, and get some of your opinions or your thoughts about the post-Cotonou Agreement in fostering the economic development of African countries. And also mitigating the issues dealing with migration and even human trafficking that kind of were not really addressed clearly in those earlier agreements, such as the Rome, and Lomé, and the Cotonou. SIGNÉ: Thank you so much for the extremely important question. So I think that to put things in context, as you mentioned, the Lomé Agreement, the Cotonou Agreement, and other agreement, when we look—again, I like to look from an historical perspective. So we clearly see that if a single agreement was almost having the impact of a magic stick, Africa will be in a different position now. So all those agreements, of course, and some of those agreements are benefiting, at least per the perspective of some of the African countries, they are benefiting more the European Union countries and France than perhaps, per se, in the absolute term, the African countries. Because many of the key players in those countries in industrial development, among others, are foreign corporations, which are originating from those countries. But let me instead speak in a in a broader perspective. I think that the responsibility for Africa’s development really lie primarily with African leaders and citizens. So it’s a notion that I think we should really come back to. Of course, when we discuss then the relation within Africa and the rest of the world, Africa has been historically in a situation where it was abused—from slavery, to colonization, and so on. But as you have seen in in my permanent record, I’m also part—most of my work consists not only at looking at those structural asymmetries that we can see on the continent, but at giving back the responsibility, accountability of the African leaders, despite the asymmetrical relation they may be having with some of the other part of the world, still have the power and the responsibility to better deliver for their citizens. So, yes, I think that the African Continental Free Trade Area (AfCFTA), as I mentioned, also represents an opportunity to address some of those challenges. But, of course, some countries will—we also have the political economy of the AfCFTA, in the sense that some country—and the ones which are the most advanced, economically speaking—the most enthusiastic about accelerating the implementation. But the beauty of the AfCFTA is that they also acknowledge some of the country we may potentially be left behind and have specific growth or special and differential treatments allowing the countries with more challenges to be—to be developed. So, again, I think that, yes, it’s extremely important for Africa when engaging with the European Union to really find a configuration which would unlock the industrial development of the continent, and not necessarily just rely on the primary goods, among others. FASKIANOS: So, thank you. I’m you’re going next to Charlotte Langeveld, who’s a lecturer at Ocean County College: To which identity do the young African people prefer to be associated with, ethnic or national identity? While national identity is superficial and ethnic is real, it has consequences for the future of the continent. SIGNÉ: So yeah, so that is probably a specific survey should be developed and in a systematic way to provide a definitive response to that question. But we have different, again, multiple belonging. Like some African citizens, especially young people, will want to be presented as African, even beyond your nation, or as global citizens. But it is clear that ethnic—the ethnicity continues to play a role on the continent, because although younger Africans speak less than the previous generation local dialects and languages, so it is important to also highlight that it is part of a broader cultural system. So I don’t think that it is either/or. So if you think also about citizens of the Africa—of the European Union, are French people considering more French than European, or more European than French? I would say it probably depends, but that multiple belonging remain valid. And although the comparison is slightly different, are Californians believing that they are more Californian than American or are more American than Californian? So, but understanding also the potential implication of the question is that it is extremely important to keep—in nation-building to go beyond the questions or the notions which are dividing, to focus on the common values, and systems. So I don’t think that’s a problem for young people to have multiple belongings or ideas of belonging. What is—what could be a bad thing is to use those differences for discrimination, for poor governance, among others. FASKIANOS: Thank you. I’m going to go next to Kimberly Pace. Q: Hello, Landry. It’s nice to see you. I have—my question is—hi, University of Alaska, Anchorage. My question is regarding women and girls. My question is, you know, given the role that violent extremism has had in Africa, what is the effect—what do you think is the effect on the economic and political opportunities for girls and women across African countries? Would love to hear your response. SIGNÉ: Absolutely. Hello, Kimberly. And so great to see you. And so I’m looking forward to following up after this session. So this is an extremely important question. There is no future of Africa without a full acknowledgement of the critical importance of women and girls, and not just economically speaking, politically speaking, in all the spheres of society. Just speaking economically, the gross domestic product of the content in some country could be increased by more than 50 percent with the full—or, about 50 percent—increase from 2 to 48, 49 percent with the full integration of women in society, in the economy, among other. So, and it is incredibly painful to see how in some countries, especially in situations of conflict, some of the first victim—the main victims, are girls, are women, or young people in as well, in general. So it is therefore extremely important, I think, to further empower women. But when you speak about empowering women, most people will think about empowering them politically, in particular. But for my conversation with many heads of state—former head of states, including President Banda or President Gurib-Fakim, so in our conversation it appear clearly that one of the best way to empower women politically is first to empower them also economically. Because when you’re empowered economically you can organize a campaign, you can be a fully contributing member, and you can be independent. So, yes, addressing conflict, human rights challenges, will be a way to further protect women, because when you have war, when you have civil conflict, they are typically the most vulnerable people and they are often the one who are the most abused by a protagonist. So yeah. So I fully concur to the fact that we have to act in a more vigorous way to protect women, to create opportunities for women, and to empower women. And some of my best models, not to say most, are women. And starting with my mother, my sisters, and yeah. So I couldn’t agree more with you. FASKIANOS: Thank you. I’m going to take the next question from William Decourt, who’s at Hamilton Lugar School at Indiana University: You mentioned surveys indicating widespread support for democracy across the continent. How have you seen public opinion in Africa responding to or shaping norms of liberal governance on the continent? And has it been affected by other challenges, such as the recent coups, influence from Russian mercenaries, and perhaps from increased Chinese investment too? SIGNÉ: So, just to be certain that I understand, and thank you so much for the important questions, is also about some of the trends on the continent related to democratic support, and the overall political situations. One of the reasons, and please, Irina, feel free to engage and follow up as needed. So one of the reasons why we have seen coups, of course, some—you have to put things in context. I mentioned that before. Many of the African citizens really want democracy to deliver. And not just democracy to deliver—if you live in rural contexts. At the origin of modern states is the social contract, which require that while a citizen will be giving up some of your fundamental—some of your rights, you will receive in exchange from states basic public services and goods, including security, economic opportunities, among others. But when those are not delivered, whether in a democracy or in a nondemocratic regime, that is when you have more challenges. Which could lead in some cases to a military coup, as we have seen, because then coup leaders may justify that—may justified their action by the imperative of restoring security or bringing about economic opportunities. So I think that is a point that I first want to highlight, to insist on the fact that, yeah, so the—those surveys show that on one hand, Africans want democracy. On the other hand, they want those democracies to deliver. And sometime even in democratic countries, some leaders are not necessarily governing in the way which is aligned with accountability. And those are the reasons why some coup leaders will also be supported by some citizens as an alternative, not to restore a long-term authoritarian system, but perhaps organize a transition. But from my perspective, it’s one of the reasons why I think that—for many reasons. But one of the key reasons why I think coups even in a very contested context are extremely bad is one of the best predictors of a coup is a previous coup. So once military got involved in politics, even after a successful short-term transition and return to power to the civilians, the likelihood of having another coup is high. So that is one of the reasons why I think it’s very important to invest in citizen, and invest in democratic development, and also invest in making democratic countries, African democracies, African democratic countries, deliver better for their citizens. FASKIANOS: Well, Landry, we are unfortunately out of time. And I apologize to all of you who had wonderful questions, we could not possibly get to them all, and raised hands. So we will just have to continue the conversation, and organize another conversation around these important issues. But, Landry Signé, thank you very much for being with us today. We really appreciate your comments and your analysis. And you can follow Landry on X, the app formerly known as Twitter, at @LandrySigne. It’s spelled S-I-G-N-E. And our next Academic Webinar will be on Wednesday, October 25, at 1:00 p.m. (EDT) with Stephen Biddle, who’s an adjunct senior fellow here at CFR and professor at Columbia University, to talk about military strategy in the contemporary world. And in the meantime, I’d encourage you to learn about CFR paid internships for students and fellowships for professors at CFR.org/Careers. Please visit CFR.org, ForeignAffairs.com, and ThinkGlobalHealth.org. We have been posting a lot of content there in light of the Israeli-Hamas conflict. So there are a lot of resources on our homepage that I commend to all of you. And again, Landry Signé, thank you very much for being with us today. SIGNÉ: Thank you so much, Irina. And thank you so much for the wonderful questions, conversation, and to the incredible team which has put everything together. FASKIANOS: Thank you. (END)
  • Israeli-Palestinian Conflict
    An Israeli Dilemma
    While there must be a military component to Israel’s response to its security challenge, there is no solely military answer. A diplomatic component will need to be introduced into the equation, including a credible Israeli plan for bringing about a viable Palestinian state.
  • Morocco
    Virtual Media Briefing: The World Bank and IMF 2023 Annual Meetings
    Play
    CFR experts discuss the 2023 Annual Meetings of the World Bank Group and the International Monetary Fund, taking place this week in Marrakech, Morocco. GOODMAN: My name is Matthew Goodman. I recently joined CFR as director of the Center for Geoeconomic Studies here.  Delighted to welcome you this morning to this event on the World Bank and International Monetary Fund annual meetings that are currently underway in Marrakesh, Morocco. This is an annual—actually, it’s really a semiannual event in practice because there’s also a set of spring meetings here in Washington every year. But this is a big event in the world of international monetary and development affairs, and we—there’s a lot at stake. Obviously, there’s going to be a lot of discussion in these meetings about global—the global economy and global growth, which is already troubled but is now facing a second major war that is going to be presumably disruptive. We’re going to talk a little about that, I think. You know, there are debt issues. There are climate change and other major transnational challenges. And then, you know, this is all against the backdrop of changes in the global order, as it were, where you’ve seen fragmentation among the different countries that are, you know, major players in the global economy.  And so I think we’ll try to explore all of this with a terrific couple of colleagues of mine whom I think are familiar to this group.  They are Benn Steil, who is a senior fellow and director of international economics here at CFR, author of a forthcoming book—am I allowed to preview that, Benn?  STEIL: Sure.  GOODMAN: —on Henry Wallace. But he’s written a lot about the origins of these two institutions in the—at the—towards the end of World War II. So a great person to have on this call.  And then Heid Crebo-Rediker, who is adjunct senior fellow here at CFR and also has long experience in international economic policy, including serving as chief economist at the State Department—the first chief economist at the State Department, I think. Right, Heidi?  So a couple of housekeeping notes. This event is on the record and there will be a video posted on CFR.org after the event. The run of show: We’re going to have a conversation here. I’m going to have a conversation with Benn and Heidi for about twenty-five minutes, and then I will invite questions and answers from the group. If you would like to ask a question, there should be a button at the bottom of your screen allowing you to raise your hand. And I will recognize people in the order that I see them. And I think that is all I need to say as introduction, so let’s just jump in here.  And, Benn, let me start with you and ask, kind of what do you think are going to be the big issues that will be under discussion this week in Marrakesh?  STEIL: Matt, you mentioned a dozen or so in your opening. I’m sure we can drill down into a number of those. But there are two that I would highlight that I think will dominate discussion, and they’re intimately related. The first is the resources—the financial resources that the two institutions, the IMF and the World Bank, can bring to bear. There’s broad consensus that this needs to be increased. But the second is the governance of the two institutions. And for better or for worse, those two issues are intimately related.  Without going at least initially too deeply into how the quota system works in the two institutions, it is different in some regard. Borrowing capacity, for example, is separated from quotas in the World Bank whereas it’s intimately linked within the IMF. In both institutions, quota is how much resources you put in relative to the total resources determines your voting power. And in both institutions—this is the way they were designed after World War II, predominantly, of course, by the United States—the United States currently has sole veto power when it comes to major policy decisions. It exercises that power because it is the only country with over a 15 percent voting share.  Now, to increase the resources available to the two institutions, the neatest, cleanest way to do this is to increase the total quota. And if you simply did that proportionately, you wouldn’t affect the voting shares of the individual nations so you could sidestep that particular issue. But given how small China’s voting share is right now—it’s a little over 6 percent in both institutions, which is just over a third of the U.S. share—naturally, China wants a larger voice, a larger share of the total quota.  The United States and its Western allies aren’t against that in principle. Obviously, the United States wants to maintain its veto power and wants to maintain sole veto power, but it is willing to give China, in principle, a bigger say. But there are broad concerns about the extent to which China is really dedicated to the mission of the two institutions, particularly because China has been a barrier to debt restructurings in a number of crisis-hit countries and China has not exactly been an exemplar in terms of financial transparency when it comes to its foreign-exchange holdings.  So, again, even though there is broad consensus that we should and can raise the resources available to these two institutions, going forward with that agenda will be very difficult because of the governance issue. And then we also have the political dysfunction in the U.S. right now, which will make it very difficult for the Biden administration to secure from Congress new funds for the institutions.  GOODMAN: Great. OK. Well, that’s a really important issue that maybe we can explore a little further as we—as we go forward, and there are some other issues you touched on that I want to dive in a little more deeply.  But, Heidi, is there anything else that you’re look at that you think is going to be an important subject in Marrakesh?  CREBO-REDIKER: So a couple of things.  One, I would say that the Biden administration has really put the reform of the MDBs—and particularly, you know, I guess in a sense putting the IMF back in the box a bit with the new leadership of Ajay Banga taking on really the mixture of ending poverty and on a livable planet, so the interconnected challenges of tackling poverty, development, and climate change. The IMF had really put a lot of resources into climate over the past five or six years, and so this is really, I think, a chance for the reforms—which will, you know, hopefully support significant new funding that Benn was alluding to—to be driven, appropriately, by the Bank in its capacity in its core mandate and by the Fund very, very separately, but going back to its core mandate.  The second thing I would say—and we can get—we can get into some of the details—but there’s a very significant long shadow of the geopolitical backdrop. You have—I mean, the buzzwords is fragmentation, but the U.S.-China competition issue is really—you know, it’s—it is driving a lot of the decisions on how we think about quota, as Benn alluded to—how we think about whether or not things like the Common Framework for Debt Restructuring, actually, they’re dysfunctional. And one of the big opportunities, I think, of this particular annual meeting was a new sovereign debt restructuring roundtable that was meant to be as inclusive of all different parties—Paris Club, you know, private markets, important bilateral lenders. And I—from what I heard today, the Chinese foreign minister—finance minister did not show up to these IMF meetings, and one of the challenges is to really get comparable treatment on—I mean, that’s what all of these—the framework is meant to do. And just this morning, it was announced that Sri Lanka and China’s Ex-Im Bank actually cut a side deal and basically blindsided everybody, so it basically tanked the whole concept of coming up with some kind of a—you know, a constructive multilateral framework.  Second on geopolitics, Russia’s invasion of Ukraine. It’s driven inflation, food insecurity, energy insecurity. And then a big—you know, a question for those focused on Ukraine is, really, is the U.S. going to continue to fund and anchor Ukraine’s military and budget support as an anchor to other multilateral and bilateral institutions?  And then the big news, obviously, is the terrorist attack in Israel. It’s had very little, you know, to-date impact on markets, except for a flight to quality. But as this has the potential to widen, will this have an impact on inflation, pushing commodity prices, oil, and gas prices up? And, you know, God forbid, if Iran actually gets more directly involved. Some of the grumblings that I’ve heard have been the pretty muted statement condemning the attacks coming out of the two key institutions.   So we can talk also about the big macro takes. I think there’s a lot more good news buried in the WEO this year than might be the case in the headlines, but handing it back to you.  GOODMAN: Well, let me—let me ask you about that. So, first of all, for the viewers that don’t know the vocabulary, the WEO is the World Economic Outlook, which the IMF issues around each of these meetings. And they have—they have downgraded their forecast for global growth to a little below 3 percent, I think, for next year, and well below the kind of historic average was closer to 4 (percent), I think. And so that’s sort of—and that’s against the backdrop of a lot of the things you’ve already touched on. But fundamentally, you know, it’s—you got a picture where the U.S. is about the only economy that is—that is actually doing pretty well in terms of growth, for now. Though, that’s a question about how long that’s going to last.   You know, China has been slowing and troubled by, you know, real estate-related financial issues and other challenges. Europe is not doing well. And the emerging markets are strained by all of the things that you touched on, Heidi, and some others as well. And now we’ve got, you know, the second conflict in the Middle East, after the one in Ukraine. So there’s a lot of uncertainty and disruption. You know, you just struck an optimistic note or said there’s some positive things in there. So can you just give us a couple of more hopeful, happy things to look at there? And then I’ll ask Ben the same question.  CREBO-REDIKER: Sure. So I guess, you know, the good news is that we haven’t entered a—you know, we haven’t seen the recessions that were anticipated six months ago. We’ve navigated some pretty significant shocks. And then, you know, so the U.S. has been—has been resilient, and has—you know, they’re expecting a soft—more or less, a soft landing, strong labor market. So more resilient than expected. And, you know, emerging markets—large emerging markets were sort of ahead of the game in tightening. So some of the bigger challenges that we—that we could have seen, I think, we—this has not fully played out yet, but it was better than unexpected, the emerging picture coming out of this world economic outlook.  Inflation is uncomfortably high. And I think they’re looking at a global expectation for inflation next year at 5.8 percent. But it’s very hard, you know, to put that kind of a number together, because there’s so much differentiation between different countries. And China, really, you know, that’s one of the biggest question marks. Will the property crisis get much worse? And what the—what are they going to be the spillovers into emerging markets? And that sort of weaves back into the to the geopolitical risk again.  GOODMAN: So, Ben, picking up on this sort of macro picture, and, you know, inflation and monetary policy, which you track closely, I mean, how do you see that unfolding? And what are the—you know, what are the—what does it say about the prospects for, you know, broader global economic growth? And, you know, I mean, if you want to predict what the Fed’s going to do in the next year I’m interested, because that’s going to guide a lot of the rest of the world. But how do you see that outlook?  STEIL: Well, the inflation picture, the growth picture in the United States, are better than we might have expected, say, six, nine months ago. And that’s clearly a positive. Financial conditions have obviously tightened considerably in recent months. And that’s without the Fed doing anything to add to it. That’s the market acting. And that very well may slow economic activity in the United States, which really is the driver of global growth right now, significantly. So that’s something to watch. But I think that at least on the inflation front, the picture is more optimistic than might have been drawn six, nine months ago.  GOODMAN: Yeah. And then you’ve got hanging over the U.S.—and we haven’t touched on this—but, you know, debt—a major, you know, debt challenge here in the U.S. And maybe—you know, there’s been a concern about that for many years, but now a lot more concern just given the absolute size of it and some of these other uncertainties.  STEIL: And it’s driving the tightening of financial conditions in the private markets right now. So, you know, government debt is really back on the agenda in a major way.  GOODMAN: And, you know, there’s also, as you touched on earlier, political dysfunction which raises questions about whether, you know, just in as much as a month from now or a little over a month, we’re going to be back in another—another crisis moment. So there’s a lot to worry about.  OK, let me shift, because there were some other topics I want to make sure we cover or get back into. So let’s talk about the debt situation for a second in the emerging world. Heidi, you’ve given us some breaking news about Ex-Im—China, Ex-Im, and Sri Lanka. This is contrary to a slightly more hopeful direction on Zambia, another country that had defaulted a few years ago on which China’s seem to be playing ball with others, and that it looked like, you know, this was a case where, you know, the common framework, which was this G-20-agreed approach a couple of years ago, was actually possibly going to get some life or wind behind it.  You know, what—you’ve, again, touched on it, but do you want to elaborate a little on what you—what you think is going to be the discussion in Marrakech about these issues, and whether there’s going to be any attempt or actual ability to bring, you know, the major creditors, including, by the way, the private sector, to the table? A lot of private sector in Marrakech, by the way, but there’s a lot of fringe events going on around the actual core institutional meetings. So, sorry, go ahead, Heidi.  CREBO-REDIKER: So, I mean, China is the world’s biggest bilateral lender. But I think, you know, to all of the hailing of progress and constructive conversations, particularly around Zambia, particularly the, you know, as the—as the—one of the most followed negotiations within the common framework, I have to say that I think that three years in saying that there’s victory and constructive collaboration because there’s an MOU which has not been acted upon, is quite underwhelming. And so, you know, I think it really does beg the question of whether or not we can have constructive conversations around a global multilateral table that includes the private sector, and the Paris Club, and large bilateral lenders, and try and do something for countries in debt distress that are able to put them on a better—on a better path.  So, you know, I—whereas I think that the WEO struck sort of a good news/bad news. I’m less optimistic that we’re going to see constructive negotiations, even though I think everybody’s hopeful. Three years in is really—you know, we’re still—we’re still nowhere.  GOODMAN: And you do have a number of countries beyond Sri Lanka and Zambia that are in trouble. I mean, sort of perennials like Argentina, you know, Pakistan, and others. But a number of others. And there’s one other issue, which is that this common framework is really—as applied initially—was really only for lower-income countries, right? Not for middle income. Sri Lanka is a country that, in theory, doesn’t qualify for the common framework. Is that something that’s going to be discussed as a possible change to deal with some of these other—  CREBO-REDIKER: Sure. Well, I think that was the ambition of this sovereign debt restructuring roundtable that really brought together the right parties. And I think they were planning a big launch at this annual meeting. And so, you know, the hope was that that would be the platform, that you could really see constructive negotiation. I think it is—it’s a—it’s unfortunate that the Chinese finance minister did not come to these meetings because the PBOC is not—  GOODMAN: The People’s Bank of China, the central bank.  CREBO-REDIKER: Exactly. They don’t—they don’t actually—they don’t speak for the negotiations that are happening on debt restructuring. So as constructive, you know, as remarks might come from them, it’s really the finance ministry that needs to take the lead on this.  The bigger question, I think, for—not just for debt for countries in debt distress, but more broadly, is where is all this funding going to come from? You know, it’s not just—it’s not just from additional quota and from, you know, extending balance sheets, and additional financing capacity and capital, broadening capital adequacy. So all of that is part of the, you know, the meat and potatoes of the discussions on MDB reform, but you need to get the private sector in there. And that’s been a perennial challenge.  And then at the end of the day, with some of the poorer countries, you need to have concessional funding, because you can’t just layer debt upon debt upon debt when you have high interest rates, where you have, you know, fiscal constraints that are tremendous with poor countries. And they face the biggest challenges from poverty, to climate, and adaptation, as opposed to what would be, like, a financeable type of climate transition in a in a different—a different kind of country.  GOODMAN: And the numbers we’re talking here are in the trillions. I mean, in fact, that independent experts group that Larry Summers cochaired, you know, was talking about, you know, multiple trillions over the next several—I’ve forgotten the time period—but something like 500 billion (dollars) a year of new funding needed, much of that from MDBs, but, you know, from elsewhere, as well. And there’s a real question whether those numbers are realistic. Ben, do you have thoughts on all of this? You did introduce the idea of resources. And so how do you—  STEIL: Yeah, I think the area I want to jump in is on one particular heavily indebted country that I think really nicely illustrates the growing tensions between the Bretton Woods institutions on the one hand, and China. And that’s Pakistan, which is enormously large. Now, I mean, they—you know, the World Bank and the IMF have made many mistakes over the generations. But broadly, they exist to promote financial stability, poverty alleviation, and good governance. And China has other priorities. In the case of case of Pakistan, it was clearly a major beneficiary of Chinese lending, because it’s important geostrategically to China. It is an enemy of one of China’s enemies, major enemies—India. And we don’t have, broadly speaking—“we,” United States, “we,” the West, “we,” the international community do not have much say there.  Now Pakistan has borrowed many tens of billions from China. It is—a number of those projects have gone bad. And then Pakistan, of course, turns around and comes to the IMF and says: We need help now. How do we deal with situations like that? Of course, the IMF is supposed to be there to help countries in crisis, but China was the one who created this crisis. So dealing with those growing frictions between the Bretton Woods institutions and China, which has its own geopolitical priorities is, in my view, unfortunately, only going to get more difficult in the coming—  GOODMAN: And are we likely to see—I mean, as Heidi said—fragmentation is kind of a buzz phrase or a euphemism for all this. But, I mean, let’s actually literally talk about is there a risk of fragmenting this system that’s been in place for, you know, seventy-five years, or whatever, with, you know, China setting up new—and they have set up a new multilateral development bank, the Asian Infrastructure Investment Bank. Actually, more than one, also—  STEIL: The BRICS bank, which is technically called the New Development Bank, absolutely.  GOODMAN: But they haven’t—they haven’t challenged, at least yet, the IMF centrality.  STEIL: No, but Belt and Road obviously has. We’re talking about roughly a trillion dollars in lending over the past ten years. So it’s become a major competitor to the World Bank, first in terms of developing lending. And then because so many of these loans are going bad it becomes a competitor and a conflict generator with the IMF, that’s left to clean up the problems.  GOODMAN: Yeah. And it doesn’t feel—you touched on again—more than touched on, you discussed the quota issue and the challenges there. I mean, you didn’t say quite so clearly, but it’s, I’m sure you would agree, that it seems pretty unlikely that there’s going to be a twain—sorry. (Laughs.) I just let my lights go off. I’m the newbie here, and so my office is still unfamiliar to me. I hope you can still see me.   You know, a twain between, on the one hand, China’s desire for more voice and, you know, centrality in these institutions, and specifically more shares, and on the other hand, frankly, even if you say the administrations over time have understood the need to and willingness to sort of talk about reallocating those shares, I mean, the U.S. Congress—it doesn’t seem like this U.S. Congress, at least, is going to be, in a realistic sense, considering any way that we’re going to reallocate or, you know, give China any additional benefit in the system. So it feels like this is not going to be an area for, you know, compromise, or getting global governance going again in a more concerted, coordinated way, right?  STEIL: No, I mean, I can’t see that, both from a geopolitical perspective. China is not seen any more in Congress as being a responsible player in the international financial community. And that’s a problem in terms of giving China greater voice within the two Bretton Woods institutions, because the last thing we want to see, broadly speaking, is the IMF and the World Bank turned into a global Belt and Road, pursuing China’s geostrategic gain. But then, there’s the issue that even if we can get agreement just to do a proportionate increase in quotas that wouldn’t affect the allocation of votes, Congress is just not in a cooperative mood right now. So the Biden administration is anxious to go forward with greater funding for the two institutions, but Congress is not in cooperation mode. And that undermines the ability of the United States to drive the agenda in Marrakech, because other countries say to us: Well, you can’t deliver on any of your promises. And this is a big problem.  GOODMAN: Yeah. In a couple minutes I’m going to invite questions, so if you have questions get yourself ready and prepare to—or, go ahead and raise your hand. But, first, just—I mean, the other issue that China is a critical player on is climate change. Heidi, and this, as you mentioned, is a topic that is going to be discussed in Marrakech or is being discussed in the context of multilateral development, bank reform, and specifically the Ajay Banga soundbite, in a way that you—that you mentioned. That, you know, he thinks that the World Bank can continue to—and should continue to address poverty, while also enabling a livable planet. Which is, you know, an allusion to these global public goods, starting with climate change but also, you know, healthy—a healthy planet and other global public goods.  So is that going to be—is that where the next—the conversation about climate’s going to happen? And do you expect any, any progress on that, or on any other dimension of the climate story in Marrakech?   CREBO-REDIKER: I think it’s going to be a running theme throughout the meetings, because it is it is a top challenge. And, again, sort of separating the climate finance part of financeable projects in certain more developed markets versus, you know, what role the—not just the World Bank, but the regional development banks. Because, you know, they’re part of—part of this matrix as well.  GOODMAN: Like the African Development Bank, Asian Development Bank, the Inter-American—  CREBO-REDIKER: Asian and Inter-American, exactly, and the EBRD. And so, you know, what—you know, how these institutions can actually support other types of finance for more developed emerging markets, tackling effects risk, trying to figure out what kind of insurance mechanisms, where were different existing tools can be expanded. But also a huge focus on the concessional side. I mean, how do, you know, the poorest countries in the world who don’t have the money for investment in the types of things they need to do to tackle, you know, adaptation, you know, for rising, you know, rising seas, and flooding, and try to actually build in, you know, to the—you know, to their own investment, mitigation for it. That’s going to have to come in concessional funds. And it will need to come from the development banking system because—or bilateral funding from donors—because it’s just not—it won’t—it won’t otherwise—it won’t otherwise work.  GOODMAN: Yeah. I don’t know if you want to add anything, Ben, on those.  STEIL: Just a few comments. I think there is a pretty strong consensus that the World Bank has to make climate change a significant issue, to the extent that the World Bank continues to be a major funder of infrastructure projects in the developing world. It’s important to the planet that those not contribute materially to carbon emissions. There’s a lot more dispute about the extent to which the IMF should be moving into this area. For example, former First Deputy Managing Director Anne Krueger has been quite outspoken about the need for the IMF to stay in its lane and focus on financial stability. So even if you take climate change very seriously, it is not clear that this should be a role for the IMF, whereas it’s much clearer that it has to be for the World Bank.  GOODMAN: OK. I am going to ask Hannah if you want to introduce the Q&A part, and tell us how this works.  OPERATOR: Absolutely.  (Gives queuing instructions.)  Thank you, Matthew.  GOODMAN: OK. I want to challenge—I know there’s some good reporters on this call. And you guys are usually not shy. So feel free to ask questions. While you’re thinking about that, let me ask—this is the first meeting on the continent of Africa, IMF, World Bank meeting, I think in fifty years, since the early ’70s. There was one in Nairobi. And I think Morocco is definitely trying to—against the backdrop of this tragic earthquake that they had not—just last month, they’re trying to present both Morocco as a stable, you know, successful country, and with leadership capabilities in the region, but also to highlight Africa as a centerpiece.   I mean, we’ve implicitly talked a lot about these issues because we’ve talked about Zambia and some of the other challenges. Many of the debt challenges are in that part of the world, a lot of the climate change issues hit Africa in particular hard—particularly hard. Health and other things as well. So does either of you have thoughts about, you know, the significance of this being a meeting in—on the African continent? And how that’s going to shape the debate?  STEIL: I’ll jump in there briefly. I mean, one thing I think that will come out of Marrakech on the governance side is African countries getting a third seat on the executive board in the World Bank. I mean, that won’t make an enormous difference in terms of governance and how funds are allocated, but I think it will be—it will be symbolic. And it will help ensure that African development issues feature somewhat more prominently as the agenda under new leadership at the World Bank goes forward.  GOODMAN: Mmm hmm. Heidi, any thoughts?  CREBO-REDIKER: So, again, we touched on a lot sort of thematically throughout our conversation, but it’s incredibly symbolic that this meeting did go forward and it is held on the African continent. A lot of the programs that that both the IMF and the World Bank undertake are on the African continent. And a lot of the technical support that both institutions provide. The potential for upgrading how domestic resources can be catalyzed as well, in many—in many African countries. Transparency. And many of the common framework countries are in Africa as well. So sort of this is—and they’re under some of the biggest climate challenges. So it’s really—I think it’s very important that this meeting was held on the African continent. And Morocco has really, from what I’ve heard—we’re not there—but has really delivered so far on providing a great platform for this annual meeting.  GOODMAN: OK. Unless—it seems, again, I’m going offer one more chance and challenge to the reporters interested in these issues to feel free to ask a question. If not, I’m going to wrap in a minute. If either of you, Ben or Heidi, think we haven’t covered something that we should have, let me know. I can, while you’re thinking about that, oh, I think I should say also that corporate members are on this call, and you’re also welcome to ask questions as well, of course. There will be a video and transcript of this conversation posted on CFR.org. And you’ll find other resources available there on these related topics and specific topics that we talked about, and others. So feel free to go there.  Any final benedictions, Ben or Heidi, here? Again, this is going to be a semiannual conversation at least, because this is going to—the spring meetings will be held sometime in probably April of next year in Washington. We’re back, it seems, to the real world and people meeting in person. So one would expect a meeting here in D.C. in April of 2024.  And with that, if no other questions, I’m just going to wrap us up by saying, again, this is on the record. Video is going to be up there. Thank you to Ben and Heidi for your time, your insights, and for this conversation. Thanks to participants for listening. Thanks to the media and members who participated. And we will wrap up there. Thank you very much.  CREBO-REDIKER: Thanks  (END) 
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