Pheu Thai denies meddling rap

Just wants BoT to hear, it says

Pheu Thai denies meddling rap
Paetongtarn Shinawatra, the president of Pheu Thai, addresses a party meeting on Friday in Bangkok. ( Photo: Pattarapong Chatpattarasill )

The ruling Pheu Thai Party has denied interfering with the Bank of Thailand ( BoT )’s independence, despite criticism of the bank’s interest rate stance by leader Paetongtarn Shinawatra.

Pheu Thai head Paetongtarn Shinawatra spoke at an occasion held on Friday at Pheu Thai’s office about the BoT’s refusal to veer off from his ongoing pressure to lower interest rates.

The BoT’s independence from the government was criticized by Ms. Paetongtarn, who claimed that efforts to solve a number of pressing financial issues were being hampered by its democracy. She said that the Bank of Thailand ( BoT )’s independence from the government is a problem and a major obstacle to solving economic problems.

According to Ms. Paetongtarn, the nation has heavily relied on fiscal policy to stabilize its business, which has led to a high public debt and finances deficit. ” If the BoT does n’t understand and cooperate with the government]in its efforts to tackle economic problems], we ca n’t ]win ]”, she said. She claimed that since the country’s military coups, opportunities have been lost for nearly 20 years, but Pheu Thai may change its course before the next election.

In order to promote economic growth, the government has repeatedly urged the BoT to think about changing its interest charge plan and lowering the standard interest level. The public is being harmed and the current rate of 2.5 %, which is a 10-year high, may be to blame, according to Mr. Srettha, who previously claimed this.

Rinthipond Varinvatchararoj, a lieutenant Pheu Thai secretary- common and listing- MP, said the authorities was never trying to tamper with the BoT.

The Pheu Thai head merely desired the government to hear their point because it is crucial for maintaining consistency in macroeconomic and economic policies, according to Ms. Rinthipond. In theory, the central banks has democracy in pursuing its policy. But, it also has the responsibility to ensure its policy is in line with the government’s financial situation. She added that it should also pay attention to the governmental policy of the state.

Sanphet Boonyamanee, a Democrat MP for Songkhla, said the government may be happy a legislation is in place to ensure the BoT’s democracy. ” In theory, a central bank has maintain economic and financial stability. According to Mr. Sanphet, it needs to be kept from influencing any state and its freedom kept at bay.

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From real estate success to politics

Wicharn Khuptiphongkun, a business from Indonesia, wants to throw the hat in the band for the Senate.

From real estate success to politics
Sirayos Co.’s managing director Wicharn Khuptiphongkun says he wants to run for the Senate because he thinks the government would benefit from his real estate experience.

In an effort to use his real estate knowledge to promote his town, a successful business from Nakhon Ratchasima has expressed interest in politics.

Sirayos Co Ltd. managing director Wicharn Khuptiphongkun stated to the Bangkok Post that he is interested in running for president because he believes the people would benefit from his real estate expertise.

His business has been able to overcome hurdles without incurring debts, he claims, despite the various issues that have occurred over the years, such as the Persian Gulf War and the Covid- 19 pandemic.

” My principle is that we should know which]real estate ] location is suitable to our customers. According to Mr. Wicharn, “each project has been designed to enable them to travel more easily and affordably.”

” I used to sit in a commercial building, so I understand consumers ‘ thoughts. We try to solve people’s issues and keep them happy.

Our clients may be able to travel to work in an hour, according to the idea. We look for spots near electric carriages, within 600 to 800 yards, at an affordable price. Without being concerned about the size of our companies, we do not seek out huge plots of land.

Politics is essential for everyone’s life because it involves how to use limited resources to bring maximum benefit to the population, according to Mr. Wicharn, 66.

” I graduated with a Master’s degree in Political Science at Ramkhamhaeng University. Of course, I am interested in politics, but my job and role in the past meant I was unable to communicate a political view, “he said.

” But straight then, my responsibilities have eased, which means I have more time to check politics more carefully.

” It’s obvious that politicians everywhere has its own problems that need to be resolved. But, how can we remedy problems? Our plan will be obstructed by doing something very serious. Therefore, I believe that effective politics may include ethics and agree to” shared common benefits” as much as possible.

When asked about connections between politics and the real estate sector, Mr. Wicharn said that good politics may strive to improve people’s living conditions, including travel arrangements, which is one of the fundamental tenets of area and economic growth.

I was born in the Bua Yai city of Nakhon Ratchasima and have worked in the real estate industry for more than 20 years.

He cited as an example how adequately resourced assets could be used to further develop Nakhon Ratchasima. ” The province’s entire economy will grow, and it will bring enjoyment to everyone. We may ensure the success of every city”, he said.

” The province’s growth is admirable, but we must spread growth throughout the state. He continued,” Development must not be done only in the city, or Bangkok may cause issues.”

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Promises and perils of handout

Guarantees and perils of handbook
Word of caution for Korn

Guarantees and perils of handbook

The modern pocket scheme’s veil of uncertainty has been suddenly lifted, despite its high anticipation and controversy.

A project of this size, however, may be expected to continue at a staggering half a trillion ringgit without some vicious criticism and a warning of legal repercussions for the entire cabinet.

Critics have been hounding the authorities with warnings of a severe legal reaction, exclusively targeting the ruling Pheu Thai Party, the architect of what many slammed as coffers- draining nationalist galore the country is ill purchase.

The state has struggled to find the funds for the great handout plan for months, which it claims will unleash an economic “tsunami” necessary to bring the country back to life.

The venture accomplishes its magic by encouraging public spending and generating growth beyond the imagination of critics.

Pheu Thai is fighting off streams of charges that it is not defense to splurging at the region’s price. The coup-toppled Pheu Thai-led Yingluck Shinawatra administration is struggling to recover from the legal repercussions and moral contempt it faces as a result of the failure of the rice-pledging program, which has caused hundreds of billions of baht in losses.

Farmers were supposed to have the option to vow and then give the government an unrestricted supply of their corn for a higher price than they would receive by selling it at market rates. The ultimate goal of the plan was to climb rice prices to defend farmers from selfish middlemen.

However, the rice-pledging program tragically came to an end in August 2017 when the Supreme Court’s Criminal Division for Holders of Political Positions found 15 people guilty of engaging in fake government-to-government ( G2G ) rice deals.

In the midst of the horde of fear and condemnation, coincidenceally or no, the very same lender that had instituted the rice pledging plan is now being roped in once more to help finance the implementation of the digital wallet scheme.

If the government does n’t change its mind, the state- owned Bank for Agriculture and Agricultural Cooperatives ( BAAC ) may find itself a borrower of a 172.3- billion- baht product to largely finance the modern wallet handout plan.

The remaining portion of the bag resources will be divided into two tranches: 175 billion ringgit from the budget redistribution for the current fiscal year and 152.7 billion baht from the budget for the 2025 fiscal year.

The Bank of Thailand’s message of caution regarding the legality of the scheme’s funding has been shared with the parliament and on social media platforms.

One caution was voiced via Facebook by someone who had macro- managed the country’s fiscal and financial affairs from the end of 2008 through to the latter half of 2011.

Korn Chatikavanij, a former finance minister, recently wrote on Facebook that he thought the government might be treading risky waters by allowing the BAAC to serve as a wallet scheme lender.

He introduced an opening that recapped the accusations made against the Pheu Thai and the Democratic Party in the wake of the wallet tussle. While the Democrats took a swipe at the ruling party for planning a repeat of the enslaving debt monstrosity similar to that created by the rice- pledging programme, Pheu Thai returned the salvo and asked if the enormous loan obtained from the BAAC to finance the rice price guarantee implemented by the Democrats- led government in the past has been paid off in totality.

Mr. Korn explained that the swipes were understandable because both the projects involving rice-pledging and rice-pricing had goals that complied with BAAC law.

He insisted that both policies met the fundamental requirements of the BAAC law, which forbids the bank from lending to farmers in order to support their agricultural careers financially.

” Nowhere in the law, however, is there a clause or stipulation that allows the BAAC to lend to the government so that it can spend the money as handouts ( even though wallet recipients include farmers )”, he said.

The digital wallet policy has been specifically stated as a means of increasing domestic consumption and encouraging economic growth. Which, according to Mr. Korn, is utterly unrelated to the promotion of farming.

The former finance minister added that the introduction in 2018 of the Fiscal Discipline Act has provided an iron- clad protection against a misspending of state enterprise fund by the government. Spending that falls short of the underlying goal of the respective state enterprise is considered a crime.

According to him,” I’ve read the BAAC law once more and come to the conclusion that the ( planned digital wallet loan ) needs a thorough vetting, which is in line with the Bank of Thailand’s caution.”

Mr Korn advises the government to drop the planned BAAC loan and focus instead on saving enough budget within the next fiscal year to finance the scheme. The government might want to break the handouts into two phases so that the latter phase is implemented in the fiscal year 2026 if the fund still falls short.

Backlash affects the new cabinet.

Political analysts have criticised the new cabinet line- up, believing that some of them are not a good fit for their roles or are complete misfits.

Four ministers, two of whom are Pheu Thai heavyweights, were forced to step down as a result of the reshuffle, which took place about seven months after the Srettha government seized power and had a significant impact on the ruling Pheu Thai Party.

Following Puangpet Chunlaiad’s departure, Pheu Thai stalwart Somsak Thepsutin has taken the place of Dr. Cholnan Srikaew as minister of public health, and Jiraporn Sindhuprai has been appointed as PM’s Office Minister.

It saw the switching of roles between Sermsak Pongpanich and Sudawan Wangsuphakijkosol, both from the Pheu Thai Party. Ms. Sudawan replaces Mr. Sermsak as culture minister and Mr. Sermsak as tourism and sports minister.

Political pundits claim that these changes lack justification or clear justification, particularly in light of Mr. Somsak’s replacement and Mr. Sermsak’s appointment as head of one of the nation’s biggest foreign exchange earners, which the government has also cited as the country’s main economic engine.

While the rejig introduced fresh faces, with former energy executive Pichai Chunhavajira and Paopoom Rojanasakul warmly welcomed into the fold as finance minister and deputy finance minister, respectively, the inclusion of Pichit Chuenban as the PM’s Office Minister, sparked controversy.

According to Section 160 of the constitution, which specifies the moral and ethical standards of a cabinet minister, Mr. Pichit, an adviser to the prime minister and former lawyer of Thaksin Shinawatra, is deemed unfit to be appointed to the cabinet.

He was given a six-month prison sentence for contempt of court in 2008 for giving a senior administrative official from the Supreme Court’s Criminal Division a box containing about$ 2 million in cash.

This was not to mention that Parnpree Bahiddha- Nukara has quit, with immediate effect, in protest after he lost the deputy premier post, which he held concurrently with the foreign affairs minister portfolio, in the reshuffle.

Stithorn Thananithichot, an analyst from King Prajadhipok’s Institute, disagrees with the assessment despite the fact that several political pundits believe Thaksin Shinawatra, the alleged de facto leader of the Pheu Thai Party, is to blame for the cabinet reshuffle.

Srettha: Evidence of growing clout

He considers the reshuffle a sign of Prime Minister Srettha Thavisin’s growing clout, pointing out that the new finance minister and his deputy, Mr Paopoom, who is known as the architect behind the flagship 10, 000- baht digital wallet policy, are both close to Mr Srettha.

He claimed that Chakkraphong Saengmanee, the prime minister’s office minister, belongs to one of the country’s inner circles, having been promoted from the position of deputy minister of foreign affairs to minister of national economic and social development.

These three ministers are expected to assist Mr. Srettha in formulating and directing economic policies, as well as delivering tangible outcomes. However, giving Mr Somsak and Transport Minister Suriya Jungrungreangkit a concurrent post of deputy prime minister is viewed as a power- sharing gesture rather than serving the public interest.

The reshuffle, in the opinion of the analyst, reflects the increasing influence of the prime minister among Pheu Thai Party factions as a strategic bargaining chip.

When he first occupied the highest position in the cabinet, it was believed that the prime minister had no support among the ruling party. But as the’ formal’ head of the government, he has the bona fide negotiating power”, he said.

According to Mr. Stithorn, Mr. Srettha may lead the largest faction in the ruling party, which represents Yingluck Shinawatra, the fugitive ex-prime minister Yingluck Shinawatra.

In 2011, Yingluck, Thaksin’s younger sister, gained popularity and was elected prime minister. She fled overseas in 2017, shortly before a court sentenced her to five years in jail for negligence in the government rice subsidy scheme.

Mr. Stithorn attributed Mr. Srettha’s political success to the fact that the conservative party only approved of his candidacy as the only candidate from the Pheu Thai Party.

Paetongtarn Shinawatra and Chaikasem Nitisiri, two other prime ministerial candidates running for president of Pheu Thai, do not have a chance to win the election, according to the analyst, who has gained experience in negotiations with Thaksin and his ex-wife Khunying Potjaman na Pombejra, who are known to have a history of dominance in the ruling party.

However, although Mr Srettha has gained significant power in the ruling party, it does not follow that he will be able to harness it and implement policies and achieve goals quickly, Mr Stithorn said.

He claimed that because he has n’t shown anything in his seven months as prime minister, it will take a long time for him to demonstrate his worth.

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PM: investment key to high-income economy

Phu Thom cites accomplishments made since taking office and claims that much more must get accomplished.

PM: investment key to high-income economy
Srettha Thavisin addresses a gathering held on Friday by the decision Pheu Thai Party at party office. ( Photo: Pattarapong Chatpattarasill )

Prime Minister Srettha Thavisin stated on Friday that the government intends to grow Thailand into a high-income nation through a number of tasks that may enhance people’s quality of life.

Mr. Srettha stated at a party gathering that the state had wasted no time and had worked tirelessly to solve the country’s issues.

The design of the occasion was” 10 Month Without Waiting, Moving Forward to Achieve 10 out of 10″. The Move Forward and Pheu Thai parties were attempting to form a partnership after the election next year when the” 10 Month” were mentioned. Some people suggested that waiting until the military-appointed Senate’s expiration date in May 2024, since it was opposed to Moving Forward, be a consideration. Pheu Thai disagreed, ditched Move Forward and safely formed a new partnership.

Mr. Srettha cited a number of issues the government has attempted to address since taking office, including better management of water resources to stop flooding, a new strategy to combat turmoil in the deep north, opening borders to encourage commerce, regulating agricultural product prices, and tackling fog pollution.

The state emphasizes more than just the fundamental laws. We’re giving our best and I am convinced investment may follow”, he said. ” We’re not only aiming to increase farmers ‘ income, but we also want to create a high-income society, and we need to draw in foreign investment.”

Mr Srettha reaffirmed the government’s dedication to reduce people’s debt issues, while admitting its efforts to tackle casual loan have yet to bear fruit. He said the decision by Thai banks to cut the minimum retail rate ( MRR ) for loans was a result of the government’s efforts.

Following a meeting between Mr. Srettha and the country’s four largest institutions, commercial lenders agreed to reduce the MRR by 25 basis points for six weeks to lessen the financial burden on vulnerable customers. The Bank of Thailand made a number of unsuccessful attempt to lower its benchmark interest rate as a result of the discussions. &nbsp,

Mr. Srettha emphasized that he entered elections because he wanted to improve the standard of living for Thai citizens rather than because he had political interests. He claimed that there are still plenty of time for the authorities to accomplish its objectives.

Srettha Thavisin, the president of Pheu Thai, and Pheu Thai head Paetongtarn Shinawatra arrive at the party’s headquarters on Friday. ( Photo: Pattarapong Chatpattarasill )

Paetongtarn Shinawatra, the head of Pheu Thai, claimed at the same time that the party made the right choice when it agreed to take the helm of the coalition government.

Nevertheless, she criticised the Bank of Thailand, saying its independence from the government was posing an “obstacle” to work to handle a boat of pressing financial difficulties.

She said the nation has heavily relied on fiscal policy to boost the economy, which has led to a high public debt and finances deficit.

” If the BoT does n’t understand and cooperate with the government]in its efforts to tackle economic problems], we ca n’t ]win ]”, she added.

She claimed that since the country’s military coups have caused it to lose prospects for almost 20 years, but that Pheu Thai may change its riches before the upcoming election.

She explained that the government change was just one more reason for the praise. There is no way for things to get worse than this, he says.” Everyone is moving forward.” We are aware that our work is” thankless and unlimited,” but we are willing to do it.

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China making plans to build and ship EVs from Thailand – Asia Times

BANGKOK – China’s imported electric vehicles ( EVs ) are severely depressing Thai car sales, leading Chinese manufacturers to invest more than a billion dollars to build their own electric vehicles close to Bangkok to increase domestic sales and bolster exports.

Thailand makes a strong case for its long-established car manufacturing sector as” The Detroit of Asia.” Toyota, Isuzu, Mitsubishi, Honda, Ford and other companies dominate a swelling home business for conventional internal combustion vehicles fueled by gas, gasoline or LPG.

Thailand is Southeast Asia’s biggest producer of those cars, rolling out 2.5 million annually.

As China expands its facilities in Thailand to build EVs and trade them across the region, those numbers are anticipated to increase.

If the US, Europe and elsewhere maintain strict limits limiting goods of” Made in China” cars, potential Chinese cars” Made in Thailand” could provide an alternative market entry level.

China’s great EV advantage is its east southern port Shenzhen, from where Foreign EV manufacturers can access difficult precision sensors, computer chips, batteries and other higher- tech hardware and components.

Now, China’s BYD, which produces most of the world’s EVs, and Great Wall Motor have reportedly agreed to spend US$ 1.4 billion in new EV production and assembly facilities in Thailand.

By displaying a$ 24, 000 Dolphin EV, which reportedly travels 300 miles on a single battery charge, and a$ 44, 000 Seal, which cruises 360 miles, BYD, or Build Your Dreams, at the Bangkok International Motor Show in March.

China’s Chery Automobile, meanwhile, is also constructing a factory in Thailand to produce vehicles for the domestic market and export.

Chery expects to begin churning out 50, 000 EVs and hybrids in 2025, Thailand’s Board of Investment ( BOI ) said on April 22. Chery is China’s third- biggest car maker and is owned by the government.

” EV sales in Thailand reached 76, 314 units in 2023, 7.8 times the previous year”, Tokyo- based Nikkei reported in February.

” BYD ranked first, making up around 40 % of EV sales. Chinese companies accounted for 80 % or so of EV sales, while Japanese brands were at less than 1 %”, Nikkei reported, using statistics from Autolife Thailand.

The Atto 3 SUV is BYD’s most well-liked vehicle in Thailand.

” Agile and fun, BYD Atto 3 provides an engaging driving experience”, BYD boasts on its website. The “positive and vivacious attitude toward life is reflected in the vibrant and streamlined central console.”

According to BYD, driving an Atto 3 SUV with the accelerator reaches 100 mph in 7.3 seconds.

” BYD sold 30, 650 EVs in Thailand last year, followed by 12, 777 sold by Neta– a brand of Chinese electric vehicle maker Hozon Auto which is based in eastern China’s Zhejiang province”, the Associated Press reported.

Tesla, British automaker MG, and Chinese automaker Great Wall Motor led them in this regard. Most of those sales were imported EVs, however.

Much of the new investment to boost Thailand’s EV sector is being funneled into constructing custom- built, high- tech facilities and assembly line infrastructure.

Great Wall Motor purchased a former General Motors plant in Rayong, east of Bangkok, as a base for its expansion into Southeast Asia, according to AP.

Neta hopes to produce 20, 000 EVs a year in Thailand.

In 2023,” BYD announced that it would construct a passenger electric vehicle factory outside of China” in Rayong province in eastern Thailand.

That same year,” China’s Changan Automobile announced that it would invest ($ 270 million ) in an EV plant in Thailand”.

Chinese investors were recently welcomed by Thai government officials at the prestigious Smart Park Industrial Estate in the Map Ta Phut economic zone of Rayong port in the Gulf of Thailand.

” Svolt Energy Technology, a Chinese manufacturer of batteries and energy storage systems, is spending ($ 34.7 million ) to build an EV battery factory in Thailand’s east to serve both Chinese and Japanese carmakers”, China Global South’s analysis site reported.

In December, Tesla executives toured an industrial state, escorted by Prime Minister and then- Finance Minister Srettha Thavisin.

An extended family who pool their savings and defaults in Thailand frequently purchases vehicles that are strong enough for monsoons, heat, and rural roads.

Some owners complained that electric charging stations are frustratingly difficult to locate outside of Bangkok, but electric vehicles are starting to gain popularity there.

Southeast Asia is prone to floods, which is EV’s nemesis, which may detract from the 600 million plus residents of the Southeast Asia region’s enthusiasm.

EV motorcycles, three- wheel scooters and public buses may prove more popular within cities where recharging, often by swapping batteries at designated centers, is easier and faster.

Since 1978, Richard S. Ehrlich, an American foreign correspondent reporting from Asia and the recipient of Columbia University’s Foreign Correspondents ‘ Award, has been based in Bangkok. Excerpts from his two new nonfiction books,” Rituals. Killers. Wars. &amp, Sex. — Tibet, India, Nepal, Laos, Vietnam, Afghanistan, Sri Lanka &amp, New York” and” Apocalyptic Tribes, Smugglers &amp, Freaks” are available here.

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Too big to win – Asia Times

It is painfully apparent to anyone of sound mind and judgment that there’s something gravely wrong with America’s current military capacity and our ability to project power in the world.

The WWII-era fighting force composed of 14 million GIs with a muscular industrial base backing them up is almost unimaginable today. In the last three years, five different US embassies have been hastily evacuated: Sudan, Afghanistan, Belarus, Ukraine, and Niger.

Americans are held hostage in Gaza; commercial shipping traffic is blockaded and our ground and naval forces are shot at daily with impunity. How did America go from winning the Cold War and becoming the sole global superpower in the 90s to the state of disarray that we find ourselves in now?

One reason is financial. All warfare has an underlying economic basis and a nation’s military power reflects its economic structure. Today in America the “exorbitant privilege” of the US dollar and the unlimited printing press of fiat currency it enables means current US defense spending is essentially covered by debt: indeed at least 30% of the current national debt consists of military overspend from the so-called Global War on Terror.

This reality has created an absence of strategic discipline and a military policy that prioritizes a tiny guild of contractors feeding an obese top-heavy structure rather than winning wars.

The roots of the current situation reach back to the election of Ronald Reagan in 1980. Reagan started a pivot from 35 years of containment to a more aggressive approach, covered by deficits. Channeled economically, politically, culturally, socially, and through covert action these measures helped to bring an end to the Soviet Union, but at a critical strategic cost.

Partly as a consequence of the central economic role that the USSR had come to play for the US defense industry, the opportunity to positively engage with Russia after 1991 was rejected by the dominant neoconservative faction and their military-industrial complex allies in Washington.

Originally Trotskyites, the Neocons had taken root in the corporatist wing of the Republican Party and gradually increased in influence, to eventually become dominant in the Washington Beltway foreign policy and emblematic of its mentality of continuous warfare funded by an unlimited fiat printing press. 

The so-called “peace dividend” that followed the end of the Cold War was redirected into expanding NATO instead of ending it. The goal was to enrich the military-industrial complex by creating more clients to buy US weapons, at the expense of the opportunity to partner with Russia. Promises of not expanding NATO eastward into former Warsaw Pact countries were broken and NATO troops were deployed on Russia’s border.

The priorities of Neocon Washington were also projected into US policy in Africa. After Liberian warlord Charles Taylor sponsored the Revolutionary United Front (RUF) in Sierra Leone in the late ’90s, the RUF quickly captured most of the country, particularly the diamond-rich areas of the north.

In the process, they committed atrocious acts of savagery against Sierra Leone’s civilian population. Into this maelstrom entered Executive Outcomes (EO), a South African private military contractor (PMC). EO initially deployed 60 ex-South African Special Forces personnel fresh from ending a civil war that had raged for years in Angola and eventually expanded to around 200 well-trained personnel.

Using mostly equipment abandoned by Sierra Leone’s disintegrated army, within six months they had retaken the country and restored peace and order to the extent that free and fair elections could be held three months later. 

Executive Outcomes was sponsored by an association of diamond miners who wanted their mines back. This group was willing to sponsor an ongoing 30-man EO presence to retrain a new Sierra Leone armed forces while providing a backstop in case the rebels returned.

Susan Rice, then Bill Clinton’s Assistant Secretary of State for Africa, vetoed this proposal: “We don’t want any white mercenaries in Africa,” she declared. The result? Within months the RUF and a new group called the West Side Boys had returned, killing, looting and pillaging the country.

11,000 UN Peacekeepers at a cost of US$1 billion-plus per year in 1990s US dollars were now deployed. But they didn’t solve the problem and not until the British SAS killed hundreds of rebels during a large hostage rescue mission of Irish Peacekeepers did the country start to stabilize.

This debacle in West Africa occurred on the heels of an even greater catastrophe further East. In the spring of 1994, after decades of simmering ethnic hatred in Rwanda, the Hutus launched a program of manual genocide. Over a four-month period they killed almost 1,000,000 of their Tutsi neighbors, a murder rate exceeding 8,000 per day, mainly using machetes and farm tools. 

Here as well EO made a formal proposal to the UN and the US government to intervene and prevent further slaughter. The proposal was also rejected by Rice in Washington. EO stayed out and the carnage continued unabated until Paul Kagame’s exiled Rwandan Patriotic Front invaded from Uganda and retook the country.

***

By the late 90s, with Washington engaged in combat in the former Yugoslavia, a new kind of enemy was emerging: jihadist Islam. 

In 1993 a poorly conceived and badly executed nation-building exercise in Somalia had already supplied a foretaste when the Battle of Mogadishu resulted in the death of 18 US Special Operations personnel and 73 wounded after repeated requests for air support were rejected by an indecisive Clinton administration.

By 1999, unanswered attacks in Nairobi, Dar As Salaam, Saudi Arabia, Yemen and New York had claimed hundreds of lives and mauled a US Destroyer, USS Cole. Finally, on Sept 11, 2001, this series of body blows reached its spectacular culmination. 

In the aftermath of 9/11, President Bush met with his War Cabinet to plan a response to the costliest attack on American soil since Pearl Harbor. As the Pentagon smoldered, the Department of Defense recommended a bombing campaign and a Ranger raid against an Al Qaeda-linked farm but wanted to wait at least six months before beginning combat operations in order to avoid the Afghan winter.

The CIA, for its part, recommended an Unconventional Warfare campaign. They wanted to supercharge the Northern Alliance, who’d been fighting the Taliban for a decade, with US airpower directed by SOF advisors. The CIA plan was adopted. The Taliban and their guests Al-Qaeda were routed in weeks by a highly aggressive SOF targeting cycle which gave them no quarter.

The US response to 9/11 should have resembled a Scipio Africanus-style Roman punitive raid, killing all Taliban and Al-Qaeda remnants within reach, including those sheltering in the tribal areas of Pakistan, and then withdrawing. Instead, the Neocons saw a lucrative opportunity to “nation build.”

Because the Pentagon runs on the bureaucratic principle of budget cycles and the internal war for promotion rather than the principle of victory, a vastly inflated occupational army ultimately comprising 120,000 soldiers was deployed to the country. This force represented a repetition of the failed Soviet plan of the 80s, to the extent of occupying the same bases.

Ignoring every historical lesson of successful counter-insurgencies, experienced soldiers were rotated on 6-12 month intervals with fresh units, losing all continuity and local intelligence. The top commander spot rotated 18 times in 20 years.

Concerned as per usual with marketing for their defense contractor clients, the Neocons dragged dozens of largely unwilling NATO members to Afghanistan, producing a dysfunctional chaos of individual national mandates. Many nations wouldn’t patrol at night or engage in offensive combat missions. When the German army arrived in Kabul in the spring of 2002, among their concerns was finding appropriate housing for all the gay couples deployed in the Bundeswehr. 

The Neocon plan for Afghanistan, or at least the story, was to impose a centralized Jeffersonian democracy on a largely illiterate, semi-feudal tribal nation by throwing infinite money at a paper-thin civil society. The result, unsurprisingly, was corruption, not infrastructure.

Meanwhile, the military operation remained chaos incarnate. Not only was there never a truly empowered supreme commander, but authorities were split between the US Ambassador, CIA station chief, the current 4-star US General, the CENTCOM Commander and their staff residing in Qatar or Tampa, and various representatives from NATO. This committee from hell produced predictable results. 

In the 1980s the US provided lethal aid to the Mujahedeen fighting the Soviets running to $1 billion a year including state-of-the-art Stinger missiles, which knocked down an average of one Soviet aircraft per day. Nobody provided this kind of aid to the Taliban: not one NATO/Coalition aircraft was lost to a guided missile. But air supremacy wasn’t enough. 

The Taliban were a self-funded insurgency composed of mostly illiterate fighters using weapons designed more than 70 years earlier. Although they lacked the techno-wizardry of the Pentagon forces, their budget grew to approximately $600 million per year from tolling narcotics and the import of fuel used to feed a thirsty Pentagon presence.

Fuel logistics alone cost the Pentagon tens of billions per year, despite the fact that a vast reserve of crude – Amu-Darya Field in Balkh Province Afghanistan – had been drilled, proven and properly cemented by Soviet forces before they left in 1989.

But what could have supplied the entire Afghanistan operation with low-cost, reliable hydrocarbon energy was ignored in favor of paying, by the time the fuel reached the vehicles, an operational cost of $250 per gallon. 

It’s fair to compare the longevity of the Soviet-built Afghan forces, holding on for years after the Soviets left, versus the Pentagon-built Afghan forces collapsing only weeks after the American withdrawal. Today of course the Taliban rule Afghanistan with an iron sandal.

The trillions of dollars and thousands of lives expended by America’s youth were completely wasted – and nobody has ever been held to account. The Taliban have not become more moderate – they are exactly the same group as before and hosting more terror groups than ever. Al Qaeda is resident once again in Kabul and reportedly gathering means to enrich uranium in Afghanistan.

Afghanistan wasn’t even the worst US military failure over the last 20 years. Almost exactly the same Neocon fever dream also played out in Iraq. Here again, the fantasy of deposing a dictator in the name of installing democracy in a country with a culture with no history of representative democracy followed its inevitable course. 

After an initial phase of 24/7 war porn of the US invasion, broadcast by the network media through “embedded journalists,” the Pentagon was quickly dragged into an urban counter-insurgency quagmire involving a Sunni faction rebranded as Al Qaeda in Iraq, Saddam regime holdovers and Shia insurgents armed, trained and sometimes led by the Iranian Revolutionary Guard Corps. 

This development was not inevitable. I still recall a sliding door moment early in the conflict when the director of the Iraqi National Intelligence Service came to see me with his CIA liaison officer in early 2004. He described the scale of the efforts by the IRGC Quds Forces to infiltrate Iraqi society and establish a proxy capability similar to Hezbollah in Lebanon and requested that we develop a joint program to locate and eradicate the Iranian presence. 

Unfortunately, the program was blocked by then-National Security Advisor Condoleezza Rice, on the grounds that Iran was not our enemy and that the US must support the political process in Iraq. In the event, this political process spun into a vicious civil war, killing hundreds of thousands of civilians. Meanwhile, our “non-enemy” Iran flooded the country with thousands of lethal EFP roadside bombs, to shred armored vehicles with American soldiers inside.

Today Iraq is subjugated by Iran with Tehran making key decisions and approving all key ministry appointments, including who becomes Prime Minister. Their power is backed by the Popular Mobilization Units (PMU) or Hashd al Shabi – an Iranian-controlled proxy mirroring Hezbollah in Lebanon. The PMUs are paid for by the Iraqi Government, armed in most cases with American weapons and led either by Iranian-appointed commanders or by serving IRGC officers directly.

Source: The Stockholm International Peace Research Institute, 2021

America continues to wage futile forever wars of convenience because Washington believes we are immune to reality and evolved beyond history. The grand strategy of the so-called Global War on Terror was conceived on a false premise promoted by Neocon think tanks and the Military Industrial Complex that American drone technology could revolutionize counter-insurgency warfare through surgical strikes targeting only the leadership of terror organizations.

This delusion produced sclerosis in the military by stripping authority away from field commanders concerning when to shoot and when to hold fire. A fixation on large orbiting cameras likewise devolved into high-tech voyeurism with lawyers, not commanders, making battlefield decisions even when friendly troops were in peril and requiring urgent air support. 

Ultimately, the paradigm flies in the face of the realities of war. Leaders are replaceable. There’s always another ambitious jihadi looking to wear the crown of command. What actually ends wars is destroying enemy manpower, finance, logistics and ability to resupply. 

Every relevant historical example tells the same story, from the wars of ancient Greece to continental European and Napoleonic wars to the American Civil War and the world wars of the 20th Century. In the course of losing WWII Germany lost 5.3 of 17.7 million men aged 15-44 years old, or 30% of their male population.

This brutality is the reality of winning wars – as the recent US track record of failure shows. The “measured and proportional response” crowd wants a war without war. It’s a fantasy that only seems plausible to people who have never experienced war and are insulated from its consequences; their firstborn children should be drafted into frontline combat units to relieve them of this problem.

After the Roman Empire lost a crushing defeat at the Battle of Cannae, the Roman Senate immediately became 40% undermanned because the Roman leaders actually served in the defense of their Republic and risked their lives in battle for it. Today, America’s elites instead spend their time on Wall Street or in think tanks gathering degrees and attending conferences. The old concept of noblesse oblige has gone missing from our national culture and so has the concept of accountability. 

Despite the failures of Iraq and Afghanistan, there have been zero lessons learned or course corrections made. Consequently, the failures keep coming.

When Hamas unleashed thousands of rockets, missiles, paragliders, and ground assaults across 30 breach points into Israel on October 7 of last year, they showed how dangerous complacency can be. Clearly, Hamas had plotted their operation for years. Their network of 300 miles of tunnels spanning all of Gaza was built with one goal in mind: to suck the IDF into an urban quagmire in order to maximize carnage and casualties, of both Palestinian civilian and Israeli soldiers.

But why not flood the tunnels with seawater using Texas precision drilling technology? The tactic would have obviated the need to bomb urban areas containing civilians and the terrible suffering that this tactic entails. Flooding the tunnels would have destroyed all underground weapons storage, prevented maneuver and would have forced Hamas to move or lose their hostage human shields. 

In fact, an entire package of drilling/pumping and technical support for precisely this tactic was offered by donors to the IDF. Yet the IDF – under pressure from the Pentagon diktats – instead chose bombing. The result has seen a wave of global sympathy generated for the Palestinian cause and left Hamas in charge of uncleared southern Gaza: a double nightmare scenario far from being resolved.

Source: The Stockholm International Peace Research Institute, 2021

***

In 2011, Hillary Clinton, chief Neocon of the Obama administration, proudly declared of Libya’s US-sponsored revolution: “We came. We saw. He died.” Colonel Qaddafi may not have been perfect but Libya under him was politically stable.

Now? For 13 years the country has been wracked by civil war and chaos. Rife with Russian and Turkish PMCs fighting for regional hegemony, the country is now a major exporter of weapons and one of the biggest channels to Europe for drugs and human trafficking. 

Further east, Iran, with Hamas, Hezbollah, Hashd al shaabi (Iraq), and the Houthis in Yemen, have built a powerful network of regional proxy forces, now extending even into South America through the Lebanese diaspora in the narcotics and weapons trade. In Yemen, the Houthis have developed into effective pirates, shutting off Red Sea shipping traffic with long-range anti-ship weapons hidden in Yemen’s rugged terrain.

As a result, an already economically struggling Egypt – a key American ally – has suffered a 40% blow to their GDP from lost Suez transit fees of $800 million per month and everyone else has seen punishing supply chains inflation from dislocated transit routes and runaway insurance premiums.

Why are Iranian surrogates in Iraq and Yemen being permitted to fire hundreds of precision drones, cruise and ballistic missiles at US forces on land and sea, largely without meaningful response from Washington? 

What response there has been has mainly consisted of announcing a coalition named “Prosperity Guardian” to protect shipping which collapsed almost immediately after multiple vessels were struck and destroyed. Why are US policymakers and the Pentagon unable to innovate effective military solutions? 

It doesn’t have to be this way. In the 1960s, Egypt, then a Soviet client, seized half of Yemen and deposed the Yemeni monarch. In response, Britain and Saudi Arabia hired SAS founder David Stirling’s PMC Watchguard International. Within months they had sufficiently amplified the Yemeni Tribesman fighting capabilities to force Egypt to withdraw. Stirling actually received a medal from the IDF for engaging so many Egyptian troops that it assisted the IDF victory in the 1967 Six-Day War.

Fast forward to 2017, Saudi Arabia and the UAE were trying to battle Iranian surrogate Houthis who seized control over half of Yemen. They request PMC support to replicate the successful Stirling model from the 1960s, and once again they are blocked, this time by Neocon Secretary of Defense James Mattis serving under President Donald Trump. The Houthis remained unchecked and ascendant, and eventually strong enough to shut off one of the world’s major trade routes.

Meanwhile, this same approach is still failing in Africa. There have been a staggering nine coup d’etats across Africa in the last four years, mainly in ex-colonial French regions, where decades-long insurgencies have exploded following the destruction of Libya. The looting of massive Libyan state arsenals following the overthrow of Qaddafi flooded the region with weapons. 

Long insufficient COIN operations by France and their USG partners reached the end of the road; local militaries ousted their Paris-sponsored leadership. The current US humiliation in Niger and Chad, where US forces are being forced to vacate new multi-billion dollar facilities built to support drone operations across Africa, is the result.

Compare this to Russia. Having embraced PMC capabilities, Russia is currently running a successful playbook in Africa against ineffective Western-friendly governments by showing a firmer hand against jihadists. This cycle will continue unabated so long as the State Department and the CIA restrict their thinking to coming up with PR strategies while America’s rivals implement military solutions. 

The Central African Republic, rich in buried mineral wealth, suffered a descent into civil war in 2014 and the empowerment of criminal gangs like the Seleca and Anti Balaka. In 2017, the CAR government requested Western PMC assistance to build a robust mining police force in order to choke out the gangs. Contracts were even signed and funding-ready.

But once again this solution was blocked by the Neocons at the State Department and their pet, the UN, refusing to waive their sanctions against CAR for the purchasing of small arms to equip police. But Russia had no such issues and sent 400 Wagner personnel immediately. Now multiple Wagner units run mines that net the Russian PMC billions of dollars per year, funding many of their other operations across Africa. 

Somalia has been a geopolitical problem since the early 90s, sucking up tens of billions in ineffective foreign aid, killing hundreds of thousands, exporting terrorism, sheltering pirates and flooding America with hundreds of thousands of migrants. In the spring of 2020, Kenyan President Jomo Kenyatta reached out for private sector assistance to finally tourniquet this endless bleeding. Every terror attack in Kenya costs it more than $1 billion in tourist revenue.

The PMC offer was made, and Kenyatta asked President Trump for financial assistance to run this private sector solution. Trump agreed and funding was passed into law by Congress. But Team Biden took over before the already-appropriated funds were released.

As a result, they were used instead on the same failed approach – the surgical decapitation strategy which has repeatedly failed globally for 20-plus years. Today, Somalia still bleeds and still drains funds, while America is stuck with culturally incompatible migrants that we “cannot deport” because Somalia remains a failed state.

When does Western incompetence end? 

Barack Obama, center, participates in a meeting in the White House Situation Room (2011)

The Syrian civil war saw Neocons funding a radical Sunni insurgency to depose Bashar Al Assad. This force quickly morphed into ISIS and promptly conquered half of Iraq by appealing to a Sunni population repressed by Iranian Shia proxies. 

The point is worth repeating. ISIS emerged directly from Neocon meddling in the Syrian civil war. Today, in the aftermath, US forces occupy eastern Syria as some sort of ill-defined buffer between various Kurdish factions, Turkey and the Syrian government, at a cost of billions per year and for no tangible benefit to American citizens. 

Cui Bono? Who benefits? And who is benefiting from the ongoing tragedy of the war in Ukraine? Since historical perspective in conflicts is always useful, I invite readers to consider the staggering costs in manpower borne by the USSR to defeat the Wehrmacht: over 22 million lives lost compared to US losses of 250,000 troops.

While the US was invading North Africa in a warm-up to the invasion of Europe, the Soviets were killing 1.2 million Axis soldiers at Stalingrad, while losing almost twice that number themselves. That loss is genetically imprinted on surviving generations and strategically imprinted in the thinking of the Russian state. 

The effect of the eastward expansion of NATO culminating in a proposal to include Ukraine despite clear red-line language expressed by the Kremlin was highly predictable. Yet the Neocons kept pressing the issue, even after assisting in the overthrow of a pro-Russian president. One should take note of how upset the US government was when the USSR began emplacing missiles in Cuba during the early 1960s. 

At the outbreak of WWII, in Britain’s greatest hour of danger, America sent them 50 surplus Navy destroyers, combat aircraft and weaponry. Meanwhile, in the Chinese theater, combat aircraft were purchased by a Nationalist government which needed American Volunteer Group Contractor support to stop the Japanese from bombing Chinese cities.

Similarly, as tensions rose in Ukraine in late 2021 and a Russian invasion looked imminent, a combination of Lend Lease and the Flying Tigers was offered to the White House. For fiscal year 2022, 200 plus fully functional combat aircraft including 50 F-16s, 50 F-15s and 42 A-10s explicitly designed for destroying Soviet tanks were set to be retired, flown to the desert and parked forever. 

These are not state-of-the-art aircraft but entirely adequate when flown by well-trained contract pilots filling the gap for 18 months while Ukrainian crews could be readied. Team Biden could have made a grand announcement before the invasion stating Ukraine would never join NATO but would have the means to defend itself. 

This airwing deployment with weapons crews and fuel would have cost less than $800 million compared to the hundreds of billions and incalculable deaths on both sides. Announcing no NATO expansion and instant deployment of a robust air wing could have prevented the largest war in Europe in 80 years. Or did the Neocons want a war?

Which brings us to Taiwan. Taiwan, and China’s claim on it, remains the flashpoint in the ultimate cold war in the final stages of warming. Clever deterrence measures have been offered and rejected. The Pentagon wants to fight by our own playbook, but as always in war, the enemy gets a vote.

A hot war between China and the US would see US cities annihilated and a death toll in the tens of millions, at minimum. This apocalyptic carnage can only be averted by looking back through history at what has worked and what hasn’t worked in the conveyor belt of failed Washington foreign policy approaches which have dominated the last 30 years. We owe it to our children to get this right but course changes must be made immediately, before it is too late.

***

What should we do? 

The current policy model of US security assistance is broken and counterproductive. The US military is the most expensive organization in 3,000 years of human history and has degenerated into an instrument for selling or grifting overpriced military hardware to countries that struggle to use it, let alone maintain it. The US military mows the lawn with Lamborghinis when Kubota tractors are what our allies need. 

The dozens of developing countries that suffer from narco crime, gangsterism and chaos urgently need real help. When troops are sent for advisory missions too many are sent and they don’t stay long enough to provide real assistance; while they are there they are hamstrung by lawyers into ineffectiveness. 

Building lasting capability in countries takes time. Doing a three-week exercise while delivering new gifted equipment is a waste of energy and money every time. Send experienced advisors to dwell long term – for years, not months. Give advisors a path to really learn a region and culture. 

The Russians are not ignorant of history and the Wagner group has stepped into the void created by US incompetence. In the Sahel and other parts of West Africa, they’ve quickly become the power behind the throne. The best way to beat Wagner is to outcompete them. The same principle also applies to reforming Washington more generally. Policymakers must allow competition to flourish.

The military does not need to be so inherently governmental. If, in 1969, during the summer of Woodstock and Apollo 11, someone said that in 50 years the only way the US goverment would be able to get people into space would be on a SpaceX rocket, you’d be laughed out of Johnson Space Center.

Before the creation of FedEx, a politician would have proclaimed government as the only entity robust enough to deliver packages overnight globally, yet today “FedEx” is a verb. It hasn’t totally replaced the US Postal Service, but it has made it run more efficiently. The same logic can be applied to the military.

The American taxpayer is paying far too much for much too little. The cozy cartel of defense contractors must be broken up, and the military made competitive again. Anti-trust enforcement and competitive tenders will stop the corruption of the thousands of lobbyists in Washington milking Congress like a cow while delivering overpriced and ineffective products.

The current status is unacceptable. The more consolidated the defense base, the more it behaves like the Pentagon bureaucracy: exactly what America cannot afford.

Our Founding Father’s instincts for empowering market capacities in military power are explicitly articulated in the Constitution. Before discussing “Congress shall raise a Navy” in Article 1 Section 8, it directs Congress to mandate the private sector with a letter of Marque and Reprisal – effectively a hunting license for private contractors to interdict enemy shipping. 

The litany of failures listed above supplies ample evidence that the current military status quo is ineffective. A “government-only” approach abroad is calamitous and undermines US credibility and deterrence. 

The foreign policy of the United States should be that our friends love us, our rivals respect us and our enemies fear us. Instead, our friends fear our self-immolation while our rivals consume us and our enemies fire upon us without consequence. 

America’s private sector has always outperformed government in solving problems. It is time to unleash America’s entrepreneurs in foreign policy to cut costs and restore American credibility. 

Erik D Prince is a former Navy SEAL officer and the founder of private military company Blackwater. Among his current projects is the Unplugged phone, a privacy-focused smartphone. He can be followed on X at @realErikDPrince.

This article first appeared on IM-1176 and is republished with the author’s kind permission. The original may be read here.

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Russia riding US right out of West Africa – Asia Times

In July 2023, army forces in Niger took control of the country, allowing them to retake control of the country. There was a lot of rumors that the military authorities would fit with Moscow and perhaps form ties with the Russian army or its associates in the months that followed.

This has now become a reality, to the disadvantage of American interests in the country. On Wednesday, April 10, a Russian helicopter arrived in the Nigerien money, Niamey, apparently carrying Russian military instructors and products, including a Soviet air defense system. It marked the start of a novel alliance between the military leaders of Niger and the Kremlin.

Hunderts of demonstrators gathered in Niamey to desire the withdrawal of American troops following the arrival of Soviet military equipment and experts. Since the two nations signed a military alliance in 2012, Niger has been at the forefront of US businesses in West and North Africa.

Since then, the US has announced that it will evacuate Niger’s more than 1, 000 defense officers. Bottom 201, a crucial US drone facility that has been engaged in activities against jihadist criminal groups in the Sahel region, will be closed as a result.

Top US officials visited Niger last month and expressed concern about the country’s possible ties to Russia and Iran.

Following the meeting, a spokeswoman for Niger’s defense, Colonel Amadou Abdramane, criticized the” patronizing attitude” of the Americans for denying the Nigerien persons the right to decide which places they mate with.

Activists in Niamey, Niger, calling for the removal of US troops from Niger on April 13 2024. &nbsp, Photo: Issifou Djibo / EPA via The Talk

Just a few days after the Chadian air force captain halted all operations at a helicopter center close to the nation’s capital, N’Djamena, it has also been reported that the US will partially remove its forces from Chad. The drawback of US troops will likely follow that of the French army as Chad reevaluates its alliances and pushes toward Russia.

Washington’s attempt to halt Soviet control in troubled regions of Africa appears to be failing.

In recent years, nations along the Sahel, which includes Senegal and the Red Sea, have turned to Russia for safety support in response to growing regional volatility. Russian soldiers, for instance, have supported the Burkina Faso and Mali armed causes in their fight against rebel organizations.

Russia is now doubling down on its involvement in the region by strengthening its hold on a number of Sahel states and looking for new partners farther afield, a move that had put it in opposition to another world powers. The maritime West African states may well be the place of the next battle.

In change for proper exposure to the Atlantic Ocean, Russia’s pursuits on the West African coast appear to be in achieving military, political, and economic pacts with these leaders. This approach echoes how the US has power over the Persian Gulf, Indian Ocean, and Suez Canal thanks to the US military base in Djibouti, Camp Lemonnier.

However, in recent years, ideology organizations affiliated with al Qaeda and the Islamic State have also sprang into Benin, Ghana, and Togo, which serve as a new plane for their businesses. Benin has experienced a particularly severe strike. In 2023, jihadist terrorist attacks on civilians almost tripled, from more than 30 to 80 %.

In an effort to stop the spread of these groups, the US is attempting to construct military aircraft outposts along the coast of West Africa. General Michael Langley, the captain of the US military aircraft that defends British interests in Africa, warned that Russian propaganda has “drowned out” US effect on the globe in his evidence to the US Senate on March 16.

The lion and the keep

Russia has harmony its efforts to influence Africa with its partnership with China. China has even worked hard to expand its influence on the continent under the administration of Xi Jinping.

Russia and China have a variety of interactions with African nations. To attract and keep partners on the peninsula, Russia uses diplomatic and military opportunities. Instead, China recruits American allies through development projects and high debt.

For instance, China is Djibouti’s largest borrower, holding more than US$ 1.4 billion in debt. In response to rising prices and a prolonged drought, Djibouti decided to stop paying its debt to China in 2023, a step up from Zambia’s.

China may reimburse its losses by recouping one or all of the tasks it has funded. These include the nation’s port and its global free business area.

Russia and China are not recognized as official supporters. However, their relationships have grown over the past ten years. Putin has been referred to as a “dear friend and colleague,” while Xi and the leader of Russia have also addressed his Chinese counterpart as a “dear pal”.

China has also agreed to develop its relationship with Russia more after a conference between Russia’s foreign secretary, Sergey Lavrov, and China’s foreign minister, Wang Yi, in Beijing on April 9. In the future, the two nations may form partnerships with the same American allies, expanding the Kremlin’s impact on the continent.

Russia and China are currently happily battling for dominance in Africa. Image: Online

Russia and the US are at odds with one another regarding their effect in Africa. The current position reflects the previous conflict over the division of Africa between big and emerging world powers, which could lead to proxy wars in those nations.

Foreign powers may be prevented from further worsening the situation under the pretext of counter-terrorism activities because Africa is currently grappling with widespread corruption and difficulties brought on by old-fashioned and puppet rulers, aggressive issues, and dictatorships.

Olumba E. Ezenwa is Doctoral Research Fellow, Conflict, Violence &amp, Terrorism Research Centre, Royal Holloway University of London and John Sunday Ojo is Doctoral Researcher at the School of Area Studies, History, Elections and Literature, University of Portsmouth

This content was republished from The Conversation under a Creative Commons license. Read the original content.

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Malaysian civil servants to see record pay hike of over 13 per cent from Dec: Anwar

After Prime Minister Anwar Ibrahim announced a salary increase of over 13 % for them effective from December 1, civil workers in Malaysia will undoubtedly look forward to the week’s end.

The government will receive an annual salary of RM10 billion ( US$ 2.09 billion ), according to Mr. Anwar, who stated that this will be the highest salary increase ever.

There are some 1.2 million civil servants in the country, 90 per cent of whom are Bumiputeras, according to a statement from Free Malaysia Now.

The last time the salaries of civil servants were updated was 12 years ago, when they saw a 13 % increase.

When launching the national-level Labour Day celebrations, he was quoted as saying,” We must seriously consider the welfare of our workers, despite our debt may be large with the existing deficit,” according to The Star on Wednesday ( May 1 ), in a statement released on the same day.

Mr. Anwar, who had previously promised a “best always” update for civil servants, added that starting from this year, the total income for them may not reach RM2, 000, which includes their income and fixed allowances.

” Now, the maximum total income of legal servants is RM1, 765. The lowest total earnings, including allowances, may be RM2, 000, and a fresh measurement and criteria will be introduced.

The program was originally scheduled to start in January of next year, but it will start in December of this year, he said.

The revamped Public Service Remuneration System, in Mr. Anwar’s opinion, will be the most complete and largest compensation plan in terms of economic repercussions for the Indonesian state.

He, nevertheless, stressed that civil servants who are underperforming will not be rewarded nor promoted.

They will be screened to see if they are stupid or frequently arriving late for work. If their document is inadequate, they will not become rewarded,” said Mr Anwar.

Separately, Steven Sim, the chancellor of human resources, stated that there were programs for various industries and that the government values all worker groups.

He cited the pilot project for the Progressive Wage Policy that aims to raise the middle pay for employees in the private sector.

” For us, legal employees are frontliners. If we want our government’s business to advance, so we can create better job prospects, therefore we need legal servants who are productive and efficient.

According to the New Straits Times, he said,” I believe that the understanding and appreciation given to civil servants will inspire them to carry out their duties to create the country’s economy up.”

More details of the wage increase for legal employees will be revealed, according to Fahmi Fadzil, a spokesperson for the unity government, when Budget 2025 is released later in October.

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Yen’s plunge raises specter of new Asia currency crisis – Asia Times

Tokyo — Dealers are pondering whether the Group of Seven may be experiencing a dollar crisis as a result of the Japanese yen’s 12 % decline this year.

The good news: no already. The terrible news, though, is that there are still seven weeks left in this year of harmful living for Japan’s money. especially when you consider Tokyo leaders ‘ lack of urgency in allowing the yen to flow.

This unsettling Asia has given the country’s markets a 1997-like feeling as central banks work to maintain exchange rates. The conflict with currency traders is raging, from the Malaysian ringgit’s 26-year lows to Indonesia’s main bank’s surprise price increase next week.

In Manila and Bangkok, northern banks are shelving price- reduces programs. In Seoul, Governor Rhee Chang- young says the Bank of Korea is ready to “deploy stabilizing methods” amid “excessive” won techniques. In Beijing, authorities are mulling their possibilities as negative forces complicated China’s view.

China, of training, is the biggest problem. Does the market of President Xi Jinping and the yen collide in a downward spiral that will lead to a new currency war?

” They probably should — to boost exports, help deflation and help domestic growth” ,&nbsp, says Brad Bechtel, global head of foreign exchange at Jefferies Financial Group Inc.” But I do n’t think they will”.

We see the chance for further near-term failure, according to Khoon Goh, mind of Asia study at ANZ Bank, as the authorities have been steadily allowing the inland spot to change.

The Taiwanese renminbi is now trading at 7.24 to the US dollar. Devaluation that resembles a 2015 seems out of the problem because it would waste taxpayer-funded money on expanding global faith in the yuan. And the more the yuan falls, the more difficult it becomes for big house builders to pay off-shore bonds, raising the risk of default.

In the meantime, making the yuan a major election hot button as Democrats devoted to Donald Trump and Democrats led by US President Joe Biden battle it out on various fronts ahead of the November 5 vote.

Will China’s renminbi follow the yen? Photo: Asia Times Files / Reuters / Jason Lee

But the longer Tokyo keeps Asia in anticipation, the greater the risk of a local panic ala the 1997- 98 Asian financial crisis. Money traders, for instance, are convinced Japan is constantly intervening to block the yen’s fall. In reality, though, officials are generally winking at earth industry.

The going- through- the- movements vibe is on distinct show. Yes, it seems fairly obvious that the Bank of Japan made an action to support the renminbi on Monday. The BOJ’s first venture into foreign exchange markets since October 2022 appears to have been led by the unexpected$ 48.2 billion decline in its current account.

Finance Minister Shunichi Suzuki would be at the speaker shortly and frequently making the case if this were a move to improve the renminbi for actual. He may be working the devices with leaders in Washington, Berlin, London, Ottawa, Paris and Rome to get the G7 on board.

From the events of late 2022, when Tokyo last acted on the yen, Suzuki’s team knows full well that unilateral intervention does n’t work. It jolts the business for a few days, but then the dollar’s cut begins anyhow.

In some ways, this is the value of 25 years of creating your international brand, your financial design, and an underestimated exchange price.

A number of Asian finance ministers have been around since at least the end of the 1990s. A G7 country has become addicted to an ultra-weak exchange rate, but what has endured is a beggar-thy-neighbor policy that resembles Argentina’s.

There are no noticeable changes that Tokyo is making. It’s more of a line in the sand for the yen-dollar exchange rate than a test of political virtue signaling.

Suzuki and his former boss, Prime Minister Fumio Kishida, are merely telling China and the US that the yen is n’t moving up to 170 to the money or higher.

However, in the days and weeks to come, the renminbi might remain heading there as well. Not because Suzuki or Kishida do n’t want it to but because, well, they kind of do.

Tokyo authorities are beginning to notice the benefits of the yen hitting 160, which is the weakest since 1990, amid all the articles. For the third consecutive month in March, abroad shipments increased. The 7.3 % get in March season- on- season followed a 7.8 % rise in February.

It’s undoubtedly the best item Asia’s second-largest business has to offer as of the second half of an increasingly erratic 2024.

” The prospect for Japan looks fragile”, information Stefan Angrick, senior economist at Moody’s Analytics.

The local business, Angrick adds, “has been very poor as wage increases have trailed prices, which has kept homeowners reluctant to invest. This, in turn, has kept companies hesitant to invest. Continue a trend of upsetting gross domestic product releases by continuing a trend of slow economic growth in Japan’s first third of the year.

This considerably complicates the BOJ’s way ahead. Everything that Governor Kazuo Ueda’s group believed they knew about 2024 is going wrong. China’s economy is n’t bouncing back with great force, the Federal Reserve is n’t cutting interest rates and the dollar’s powerful rally is n’t losing momentum.

As the renminbi free-falls, Bank of Japan Governor Kazuo Ueda sat quietly. Image: Twitter / Screengrab

Japan’s market also has recession fears in the rearview mirror. At the same time, prices in the Tokyo region, a great proxy for national developments, is now rising at a&nbsp, 1.6 % season- on- year&nbsp, price, below the BOJ’s 2 % target.

Currency traders are aware that Ueda’s BOJ may have missed its window for a significant rate increase or two. The yen is slowly but surely returning to the levels it was before officials were alleged to have intervened.

That’s not to say strategists are n’t baffled by the yen. The yen is regarded by Global Dragonomics as” the biggest anomaly in global financial markets,” with its value estimated to be 40 % below purchasing power parity measures.

As such, Gavekal writes,” the yen’s weakness is having wide- ranging global repercussions, from fueling a carry trade that boosts emerging market debt, to weighing on US exports and thus President Biden’s re- election prospects. Markets are on the lookout for direct foreign exchange interventions to strengthen the yen because the BOJ is yet to find the weak currency reason enough to change its monetary policy position.

Or not. As Asia’s second- biggest economy loses momentum, inflation recedes and Kishida’s approval numbers flatline, is the BOJ really about to slam on the monetary brakes?

Again, Tokyo policymakers ‘ lack of urgency speaks louder than intervention threats. As Richard Katz, author of” The Contest for Japan’s Economic Future”, notes, Japan “has plenty of ammunition” to stop the yen from falling too far.

” Even though it now runs a trade deficit most years, Japan still runs a&nbsp, surplus&nbsp, in a broader measure, the international current account”, Katz explains. ” That’s because it earns so much from its investments abroad, and those earnings keep growing”.

In 2023, net income on these investments&nbsp, totaled 34 trillion yen ( US$ 215 billion ), amounting to 6 % of nominal GDP.

The most important thing, Katz says, is not to panic over a yen in freefall. ” If it looked like capital flight was beginning”, he explains,” Japan could use its currency reserves to shore up the yen. However, it’s very unlikely that it would need to do so.

Katz points out that Japan and other nations have experienced currency shocks, such as Asia’s 1997-98 crash or the 2010 European debt crisis. ” They”, he adds, “had run year after year of current account&nbsp, deficits&nbsp, and, as a result, were big international&nbsp, debtors”.

For now, though, the “yen is weak because Japan’s economy is weak and its exporters are increasingly uncompetitive”, Katz says. So, intervention can primarily delaying the unavoidable for a short while or preventing markets from reaching too far.

This area of weakness is fundamentally bigfooting. The economy’s underperformance is a key reason why Kishida’s approval ratings are in the low- to- mid- 20s. In the weeks to come, the BOJ’s deliberations will be affected by this dynamic.

Although the BOJ technically is independent, its scope of independence is more limited than that of the US Fed or the European Central Bank.

For example, a government representative attends BOJ policy meetings. What truly sovereign monetary institution maintains rates at or close to zero for 25 years?

For Ueda, the lessons from 2006 probably loom large in his own deliberations. Governor Toshihiko Fukui successfully fought against quantitative easing and other board members to force two additional official rates increases in 2006 and 2007.

Yet Fukui’s attempt to normalize rates failed. The Tokyo establishment reacted strongly, complaining that Japan Inc. was n’t ready for tighter credit. Soon after, the economy slid into recession. Once Masaaki Shirakawa replaced&nbsp, Fukui&nbsp, in 2008, he quickly cut rates back to zero and restored QE.

Bank of Japan does n’t want to shortcircuit the Nikkei 225’s rally. Image: Twitter

Then, in 2013, Haruhiko Kuroda joined him to increase BOJ stimulus efforts even more and ultimately end deflation. In 2013 alone, the Nikkei 225 Stock Average&nbsp, surged 57 %. Today, it’s rallying to the point where the benchmark is now trading near its all- time 1989 high.

Finding a way to normalize rates without putting an end to the Nikkei’s bull run is Ueda’s balancing act. And without being the most recent BOJ leader to suffer the consequences of a recession, falling stock, or both.

All of which explains why Tokyo is less eager to reverse the yen’s decline. And why Asia has little choice but to rely on Japanese officials to understand how to handle the yen’s pounding.

Follow William Pesek on X at @WilliamPesek

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