Friday, August 21, 2020

Ethiopia's Proposed Dam on the Nile: Will it bring shared benefits or cause war among Ethiopia, Egypt and Sudan?

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Charvi Trivedi

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Ethiopia's Proposed Dam on the Nile: Will it bring shared benefits or cause war among Ethiopia, Egypt and Sudan?

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Global Views 360

Publication Date

August 21, 2020

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Nile River View Cairo, Egypt

Nile River View Cairo, Egypt | Source: Sherif Moharram via Unsplash

The longest river in the world, the Nile,  spans a distance of over 4000 miles, passing through large parts of Africa including Tanzania, Rwanda, Ethiopia, Sudan and Egypt, to name a few, and finally emptying into the Mediterranean Sea.

The Nile is a lifeline for Egypt, Ethiopia and Sudan, whose mutual relation took a beating when Ethiopia proposed to build the Grand Ethiopia Renaissance Dam (GERD). The proposed dam would make Ethiopia the biggest exporter of electricity in Africa and give a boost to its growing economy.

However, this project invited furious responses from Egypt as Nile is deeply connected to the history of the country since ancient times. Also about 95% of Egyptian population resides along the banks of the Nile and are heavily dependent on the river for sustaining their livelihood. Building the large reservoir will deplete the water resources of Egypt which will threaten their livelihood.

The Nile is experiencing pernicious effects of escalating population and climate change and the United Nations has projected that it is expected to cause immense water scarcity by 2025. “We’re worried. Egypt wouldn’t exist without the Nile. Our livelihood is being destroyed. God help us” says Hamed Jarallah, an Egyptian farmer.

This 5 billion-dollar project was initiated in 2011, is capable of producing a whopping 6000 megawatts of hydro power and has a reservoir capacity of 74 billion cubic metres. This dam is projected to annually contribute over a billion dollars to the Ethiopian economy. It is alleged that Ethiopia has already started filling the reservoir despite the protests from other countries.

In 2015, Ethiopia, Egypt, and Sudan signed a ‘Declaration of Principles’ which called for the equal water distribution. Despite more than five years of negotiations, these countries are still not able to reach mutually acceptable agreements. Earlier, Sudan supported Ethiopia’s dam proposal as it was promised adequate electricity at a cheaper cost. However, the failure to reach a conclusive agreement led it to oppose Ethiopian dam. Sudan has already gone ahead and notified the United Nations Security Council (UNSC), the dangers its people will face via a letter advocating them to step in.

Al-Sisi meeting President Trump | Source: The White House via Wikimedia

When Egypt made a demand for GERD to release around 40 billion cubic metres of water every year, Ethiopia denied this suggestion while Sileshi Bekele, minister for water, irrigation and energy, called the volume of water ‘inappropriate’. Finally, in 2019, Egyptian President Abdel Fattah al-Sisi turned towards U.S President Donald Trump to settle this long dispute. “The Ethiopian side does not want an agreement and has not offered an alternative” says Egyptian minister Mohamed Abdel-Ati as Ethiopia retracted from the US-led conciliation over GERD.

Secretary Pompeo Meets with Ethiopian Foreign Minister Gedu | Source: U.S. Department of State via Wikimedia

Ethiopia further provoked Egypt when Ethiopian Foreign Minister Gedu Andargachew tweeted that Ethiopia will have “all the development it wants” from the river and that the Nile is theirs. This was a strong posturing which sparked whispers of an apparent war between Egypt and Ethiopia. If it escalates into a war involving the military then Ethiopia might succumb to the powers of the Egyptian army. However, according to Sisi, military intervention is unlikely to take place as he believes negotiation is the best way to arrive at a viable agreement.

As these three countries march ahead in their task to find a middle ground, they should focus on ideas which would include potential for a ‘shared economic advantage’ and also include organizations like the World Bank which can provide financial backing for improvement purposes in such regions.

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February 4, 2021 5:07 PM

Expat Exodus In The Middle East

The COVID-19 pandemic has hit people and economies worldwide, sparking a global recession and financially destabilising millions of people. In the Middle East, dipping oil prices have only worsened the threat to the economy. Businesses are shutting down, and many are trying to survive by cutting the salaries or laying off of workers. Large segments of the workers in these countries are expatriates, and many have struggled to make ends meet as unemployment soared.

The development of the Gulf countries has always been intertwined with their large expat populations. These workers are often vital to the economy, not just as part of the workforce but also as consumers by enabling successful malls, restaurants and other forms of recreation and tourism. Countries like Saudi Arabia gain valuable non-oil revenue in the form of increased Value Added Taxes (VAT) and by imposing a monthly fee on migrants who want to sponsor family members.

Many of these workers are from developing Southeast Asian countries such as India and Pakistan, and contribute greatly to their home country’s economy in the form of remittances, i.e sending money back home. Those who are facing unemployment or salary cuts are eager to be repatriated, especially since in many Gulf countries visas, rent, and even phone lines are linked to jobs, and expats have little to no social safety nets to fall back on.

Panicked” Indians applying to go back home crashed the Dubai aviation ministry’s website for applications in the process. The consulate says it has received around 200,000 applications for repatriation of expats from as many as 12 countries.

For some, closing businesses are forcing them to go home. For others, the cost of education is the major concern. The Emirates group, Uber’s Middle Eastern counterpart Careem, and hotels are some of the few major employers considering laying off large portions of their staff or reducing salaries.

Dubai has been one of the hardest hit, as expats form an estimated 92% of the population. Dubai based movers estimate that they’re getting up to seven calls a day to ship belongings abroad. It is extremely hard to gain permanent resident status in countries such as the UAE, and the costs of living and education are quite high and often provided by employers, which has made leaving the only option left for many laid-off workers across all fields.

The UAE has tried to offset the damage by granting automatic extensions to expiring work permits, waiving of work permit fees and fines, and providing interest-free loans and repayment breaks.

Meanwhile, governments in Kuwait and Oman are trying to mould the exodus into an opportunity to boost local employment. On the other hand, the Saudi Arabian government has been criticised for not taking enough measures to protect the local workforce.

While the Gulf countries have been trying to decrease their dependence on oil wealth and foreign workforce, it is not something that can be accomplished soon, especially given the great dependence of the Gulf economies on both those factors.

There is still too unavoidable a gap between the current skill of local workers and the training needed to compete with foreign professionals, making it hard to simply employ domestic workers in place of foreign ones. The pandemic, however, might not leave much of a choice.

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