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

Article Title

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 4:39 PM

US Sanctions versus Iran’s fight against COVID-19 pandemic

Iran is the hardest-hit country by the coronavirus pandemic in the middle east. The contagion was first detected on 19 February 2020 in the holy city of Qom, and thereafter spread quickly across the country. As of 18th June 2020, it had over 9000 coronavirus related fatalities. The virus attacked all the 31 provinces of the country not discriminating between the common man and the people at high places including the members of the Parliament, religious leaders and senior ministers. The crisis touched most parts of the country, but it most severely impacted working and the poor class. 

The Iranian government has been criticized for its response towards the pandemic. The health care policy, which has been politicized, has preferred denial and misinformation as a response to the crisis the pandemic brought with it. Questions have also been raised about the role of US sanctions in crippling Iran’s economy, public health facilities and public health facilities. All these factors, when combined, have disabled Tehran (the capital of Iran) from providing the best response to the pandemic. 

What do the sanction laws say?

According to the Office of Foreign Assets Control, the US has “consistently maintained broad exceptions and authorizations to support humanitarian transactions with Iran.” The first significant sanctions were imposed in 1995 by Bill Clinton, and in 2001 exemptions for medical goods and medicine first came into effect. These sanctions have periodically widened the scope of products for exemption, and by 2012, the exclusions included agricultural products and most foods. After the world powers, including the US, reached a deal with Iran on its nuclear programme in 2015, the sanctions were lowered against Iran. This approach was abandoned after Trump withdrew the US from the deal and sought to force Iran’s leaders to change their anti-US policy. .

The US sanctions are enforced through a wide array of instruments. Financial sanctions prohibit US banks from transacting with Iran, which limits Iran’s access to dollar-denominated transactions. Secondary sanctions measures also target non-US entities that have dealings with Iran, thus at a risk of facing prosecution in the US. These sanctions make transactions with Iran lengthy and complicated, and even impossible in some cases

There are some exemptions from sanctions for humanitarian assistance (sale of agricultural commodities, food, medicine and agricultural services). Despite these exemptions, sanctions have severely impaired Iran’s ability to be able to finance humanitarian imports. Given the volume of complexity and due diligence involved, most banks are reluctant to deal with Iran. This makes it difficult to find a way to pay for purchases difficult for Iran. Also many items require additional authorization because the US considers them as “dual-use” (the things might also be used for defence- for example, the sort of oxygen generators that are needed in life support machines used to treat coronavirus cases). Lastly, the sanctions on Iran’s oil exports led to a decline in revenue, further weakening Iran’s currency, which has left the country vulnerable and with fewer resources to pay for non-sanctioned items as well. 

All these put together have directly caused shortages of medical equipment and impacted Iran’s health sector negatively. This has also impacted the capability of Iranian healthcare sector to effectively manage the COVID-19 situation.

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