Monday, June 22, 2020

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

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Aditi Mohta

Article Title

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

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Global Views 360

Publication Date

June 22, 2020

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Coronavirus patients at Imam Khomeini Hospital, Tehran

Coronavirus patients at Imam Khomeini Hospital, Tehran | Source: Mohsen Atayi via Wikimedia

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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February 4, 2021 5:06 PM

Italian Mafia make merry amidst the COVID-19 pandemic

Italy was the first European nation to encounter the coronavirus and it still is one of the worst hit nations in Europe. The country has been battling with an economic decline and rising unemployment for a few years now. However, the COVID-19 pandemic hitting the country was like rubbing salt in Italy’s wounds.

The strict lockdown imposed by the government in Italy has had an adverse effect on a lot of people particularly the small scale and the medium scale business owners. Thus, a lot of people in Italy have resorted to desperate measures. The Italian mafia have made merry of the situation by providing these people with the much-needed aid they have been looking for.

Even as the country struggles to pull itself together, the mafia have made inroads in acquiring influence over the locals by distributing food packets to poor families with no source of income. There have been videos surfacing from the southern regions which suggest that the mafia have been actively involved in delivering essential items to the people.

In Palermo, a mafia gang member, who has been distributing food to the poor, says "People ring me and they cry over the phone,". He further tells, "They say their children can't eat. A young woman has been calling me every single day. She has five kids and doesn't know how to feed them."

However, the Italian mafia has been employing the tactics of exploiting vulnerability of the locals in the face of economic crisis for a long time. The COVID-19 pandemic was yet another opportune moment for them to capitalise.

"The mafia has never done anything out of generosity. That concept doesn't exist for them," says Enza Rando who works for an anti-mafia organisation. "All they know is I'll scratch your back if you scratch mine."

A report by  the Global Initiative Against Transnational Organized Crime (GI-TOC), based on virtual round table discussion between top anti mafia officials and activists suggests that the healthcare sector as well as the manual laborers and service staff who work mostly cash jobs are the most vulnerable to the mafia influence during the COVID-19 pandemic.

As per the national anti-corruption authority ANAC the mafia corruption has been a big setback to the COVID-hit Italian economy. "They are taking advantage of the emergency situations like the current one, with devastating effects on the economic system and on healthy businesses, already hard hit by the crisis," said ANAC President Francesco Merlon.

Sergio Nazzaro, a journalist, writer and adviser to the Parliamentary Anti-Mafia Commission says, ”The people who are jobless don’t care about the mafia, corruption or anything, but they see the state only talking, and from the mafia (they see) money, and I fear that at the end of all this we are going to see how much the mafia managed to buy while we were in crisis.” He stresses that the state will have to provide economic stability to the people if it hopes to eliminate the mafia influence.

Father Luigi Ciotti, an Italian priest and well-known anti-mafia activist pointed out three key areas that need to be monitored for mafia activity during the pandemic. The first is the increase in drug trafficking. The second one is new products like face masks, disinfectants etc which are suddenly in demand and provide heavy profits and third the predatory money lending.

It is quite clear that the Italian government needs to come up with strong economic reforms that ensure stability and security for its people if it hopes to counter the mafia influence. Otherwise, the mafia will always be there to trap vulnerable people by proving to be their benefactors in the short run only to exploit at a later stage.

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