Monday, June 22, 2020

COVID-19 in Iran: Fighting pandemic while facing US sanctions

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Nikhita Gautam

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COVID-19 in Iran: Fighting pandemic while facing US sanctions

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Global Views 360

Publication Date

June 22, 2020

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Spraying chemicals to help keep the coronavirus under control, Iran

Spraying chemicals to help keep the coronavirus under control, Iran | Source: Mina Noei via Wikimedia

After backing out of the nuclear deal with Iran in 2018, the United States had toughened the sanctions on petrochemical trade and other vital sectors of Iranian economy. The Iranian government is claiming that those sanctions are heavily affecting their ability to act against COVID-19.

These sanctions forced the Iranian government to significantly change infocus from curbing the spread of infections to stabilizing the economy.  There have been some restrictions but no lockdown imposed on the movement of people as the lockdown would further weaken the economy. Also, a lot of pharmaceutical companies aren’t willing to trade with Iran because of the fear of getting caught up in secondary sanctions, even though the US governments deny any restriction of the same. 

All of this has led to a global outcry against the sanctions. The United Kingdom is pushing the US to ease the sanctions because they believe that the hospitals in Iran are badly overstretched. The UK tried to provide direct support to the country via WHO, but Iran refused any help that didn't come with the lifting of the sanctions. The United Nations High Commissioner for Human rights, Michelle Bachelet, has urged the global community to rethink the existing sanctions on countries like Iran in the light of the current pandemic. The United States also offered humanitarian assistance to the state but was rejected by the Supreme Leader Khamanei, who declared the US as being charlatans and liars, and said that a wise man should not accept medicines from a country alleged of creating the virus. Russia, China and some other medical and rights groups have been urging the Trump administration to lift the sanctions. Over 21,000 lawyers and legal experts in Iran have signed a statement declaring that the US sanctions on Iran are anti-human. On the 26th of March, the US imposed even more sanctions, on more than 17 entities. The sanctions were announced a day after the family of a retired FBI agent claimed that the agent had died while in custody in Iran; two days after Ms. Bachelet made her statement on rethinking sanctions.

The crisis has touched most corners of the country, but it is most severely impacting the poor and working class. While it is older men who are dying in the highest numbers, the economic impact especially hurts women, who are most liable to lose work, and shoulder increased duties, looking after sick relatives and children staying home from school. Iranians’ purchasing power has plummeted in the past two years, as the mismanaged economy shuddered through Donald Trump’s withdrawal from the nuclear deal and the re-imposition of US sanctions. As Nahid, a women’s rights activist put it: “When people met this virus, their nutrition was already poorer, their immune systems were weakened, and many were already unable to afford health care.” Charities and private sector groups are joining together to raise funds for importing equipment and other medical supplies from China to set up facilities of COVID-19. However due to the sanctions it is becoming difficult to move money from Iran to any other country.

Arshi Tirkey, a Junior Fellow with Observer Research Foundation has put quite aptly: “It is true that political instability, corruption and economic mismanagement in Tehran have aggravated the issue; and likewise, this calls for governance reforms and financial transparency initiatives in Iran. But this is not the sole reason for the scarcity of medical equipment and the condition of health infrastructure in the country today. Sanctions remain a central impediment to improving Iran’s capacity to respond to the pandemic.”

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February 4, 2021 5:11 PM

Neom: The Futuristic town coming up in the Arabian desert

Ever since Mohammed bin Salman, popularly known as MBS, became the crown prince of Saudi Arabia in 2017 at a young age of 32 year, he has been working on twin objectives of liberalising the conservative laws of the country and diversifying its oil based economy.

In the last 2 to 3 years Saudi Arabia has done away with religious enforcers, allowed women to drive, loosened the strict clothing norms for women, reopened the cinema and other entertainment events by scaling down many of its ultra conservative rules and regulation.

File:Mohammad bin Salman (2018-06-14) 01.jpg
Mohammad Bin Salman | Source: Russian Presidential Executive Office via Wikimedia

On the economy front, MBS has started many projects to lessen the dependence on oil, of which Neom is the centerpiece. NEOM is a technologically advanced mega-city being built from scratch in the sands at the coast of the Red Sea and is considered to be the dream project of MBS. This magnificent city, will take about $500 billion to complete and be thirty three times the size of New York City. This project will make the country a technology hub, attract international tourists, and will reduce Saudi Arabian economy’s over-dependence on oil.

Neom will boost some of the features which are today seen only in some sci-fi movies. It will employ cloud seeding technology to bring rain in the desert town, display an artificial moon, and use flying taxis for intra city travel. The town will have some functional autonomy which include relaxed laws for women and tourists.

Three of the biggest consultancy firms of the world, Boston Consulting, Oliver Wyman and McKinsey & Co, were roped in by MBS in 2017, to bring his vision of Neom to life. “This is a challenge. The dream is easy but making it come true is very difficult” MBS said.

While the entire project is slated to be completed in 2025, the international airport is already constructed at Neom. Phase-1 of the project was supposed to be completed in 2020, however it was delayed due to the oil price crash and COVID-19 pandemic. “All of these projects will be delayed. It's not paused; it's continuing more slowly” said Ali Shihabi, a Washington-based analyst on the Neom advisory board.

Abdul-Rahim Al-Huwaiti, protestor who was shot dead | Source: MENA Rights

Saudi Arabia has done a wonderful job of letting the imaginations run wild to come up with an idea and start implementation, there are few downsides as well. The area where Neom is being built is home to the Huwaitat tribe who have to relocate elsewhere for the construction to take place. While most of the tribe members agreed to move on, few were not willing to do so. Abdul-Rahim Al-Huwaiti was one such member who actively resisted and criticized the government in videos posted on youtube. He was unfortunately shot dead by the government forces during an operation to clear his house in April, 2020 giving a blot to this wonderful project.

There are still some obstacles in the ‘perfect’ project of modernising Saudi Arabia. “The main project risk probably is the potential lack of large private investors. The local and international private sector will want to hear a lot more detail than what has been published to date” said Steffen Hertog, a leading scholar on Saudi Arabia, pointing out that a lot of clarifications and work is still required.

There is still time before this magnificent town rises to its full glory on the coast of the red sea in Arabian desert. We are eagerly waiting to see the flawless execution of a grand vision of Saudi Arabian crown prince Mohannad bin Salman in the form of the modern marvel, Neom.

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