Skip to main content

The real reason the knives are out for Mohammed bin Salman

In the six weeks before Khashoggi’s disappearance, MBS not only managed to anger the U.S. military-industrial complex but the world’s most powerful bankers.

by Whitney Webb

Part 4 - Trouble in neoliberal paradise

While it is impossible to know MBS’ exact reason for getting cold feet in his once-ambitious plans to privatize the kingdom, we can guess. Indeed, there is a reason that MBS’ elders in the Saudi Royal family have long rejected neoliberal reforms and the mass privatization of their economy.

A 2016 report from Foreign Policy succinctly states why past Saudi Royals have avoided “free-market reforms” as the older generations of the House of Saud “understand the fragility of a monarchy whose brittle pillars rest on the quiescence of conservative clerics and a merchant class hostile to the free-market reforms that will undercut their privileges.” However, far more Saudis than just the “merchant class” have grown accustomed to the largesse of the Saudi state, as the majority of Saudi citizens benefit from Saudi state spending in the form of fuel subsidies, loans, free land, and public-sector jobs, among other boons. Indeed, half of the entire Saudi population is currently on welfare — welfare that depends on the wealth of the Saudi state and its oil revenue — while two-thirds of Saudis work in the public sector.

Of course, sharing oil profits with robber barons — as would have been the case in the partial privatization of Saudi Aramco — would reduce the amount of money the Saudi government dedicates annually to welfare programs and public-sector jobs to a significant degree. Notably, Vision 2030 also included “austerity programs” as part of its implementation, including tax increases and a significant reduction in the fuel subsidies given to ordinary Saudis.

However, less than a week after a handful of those austerity measures were implemented earlier this year, the Saudi government quickly eased them by increasing state-job salaries and launching a new economic stimulus program, after a “very negative” public response.

Despite the government’s efforts to assuage the anger that austerity had caused, it was not enough and the outcry continued, forcing the Saudi government to fire the country’s water minister to absorb some of the outrage. The fierce public response seems to have given MBS his first real inkling that his “ambitious reforms” to privatize Saudi Arabia would not be so easy to implement, no matter how hard he had worked to crush dissent.

Another indication of why MBS backed out of privatization plans can be seen in what happened to other countries when their young princes, championed as “ambitious reformers,” had drunk the “McKinsey Kool-Aid.” As Salem Saif wrote at Jacobin, many of the Arab countries that had previously followed McKinsey-drafted plans for neoliberalization subsequently “became epicenters of the Arab Spring. Bahrain, Egypt, Libya, Yemen — each was convulsed by demonstrations, often animated by economic grievances.

In contrast, Saudi Arabia, with its state-owned and state-managed assets, had remained largely immune to these economically-spurred uprisings throughout the Middle East.

However, earlier this year, MBS learned the hard way from the hostile reception to his privatization rollout that being the West’s neoliberal darling comes at a high price, one that could imperil not just his position as Crown Prince but the entire Saudi government.

Source, links:


[1] [2] [3] [5]

Comments

Popular posts from this blog

Panicked neoliberal tools attempt to trigger a war of generations against AOC's progressive counterattack

globinfo freexchange
We were slightly surprised to see such an article title in one of the primary info tools of the global neoliberal regime and financial capital. But the subtitle immediately clarified everything.
When we read the title “Alexandria Ocasio-Cortez and the Revenge of the Millennials” of the article in Bloomberg, we thought that we might be in front of a small miracle. We thought that the time has come for some people inside the core of the establishment apparatus to admit that the younger generations have lost dramatically from this brutal system. And so, the time has come to overthrow it, take their 'revenge'.
But no, it was too good to be true.
The subtitle immediately revealed the trick: “The Democrats’ major economic initiatives tend to favor the young at the expense of the old.”
Then, inside the article we read: “Almost every major new economic initiative proposed by Democrats — the Green New Deal, Medicare for all, debt-free college — has a common feature: Un…

Κυβέρνηση Σαμαρά: Πιο νεοφιλελεύθερη και από την Τρόικα!

Ο πρόεδρος της επιτροπής για θέματα ανταγωνισμού του Επαγγελματικού Επιμελητηρίου Αθηνών, Γιώργος Φλωράς, αποκάλυψε στην εκπομπή του δημοσιογράφου, Νίκου Χατζηνικολάου, ότι η έκθεση του ΟΟΣΑ, με βάση την οποία συντάχθηκε το τελευταίο πολυνομοσχέδιο, είναι ουσιαστικά δημιούργημα του ΙΟΒΕ!
Ανέφερε χαρακτηριστικά ότι:
Οι προτάσεις αυτές δεν είναι του ΟΟΣΑ, αλλά του ΙΟΒΕ και της Επιτροπής Ανταγωνισμού, δηλαδή κυρίως των Χατζηδάκη και Στουρνάρα και ότι η κυβέρνηση στην ουσία χρησιμοποιεί την Τρόικα για να περνάει τις θέσεις των πολυεθνικών, μεγάλων αλυσίδων σούπερ μάρκετ, κ.λ.π.
Ο κ. Χατζηδάκης, τονίζει συνεχώς σε ότι έλεγε ότι 'εμείς χρησιμοποιήσαμε τον ΟΟΣΑ γιατί είναι αντικειμενικός, έχει την αξιοπιστία, έχει τη διεθνή εμπειρία κ.τ.λ.' και γι'αυτό βγήκε και ένα κονδύλι 936.000 ευρώ για να γίνει αυτή η έκθεση. Η έκθεση ξεκινάει αναφέροντας στη σελ. 2 ότι οι θέσεις μέσα σ'αυτή δεν εκφράζουν απαραίτητα τον οργανισμό.
Η έκθεση αυτή δεν είναι του ΟΟΣΑ, είναι μια οργανωμένη απάτ…

Canada has been trying to destabilize Venezuela at least since 2004

globinfo freexchange
Paul Jay, editor in chief at The Real News, gave some very interesting information - some based on personal experience - about Canada's total alignment with the US on its imperialist missions against Venezuela and other countries:
Mexico was part of the Lima Group, but now with the new leadership - with AMLO now taking office in Mexico - Mexico is not going along with this plan to recognize Juan Guaido. And Mexico is not the only country of the region. Many, many countries of CARICOM have come forward and have said they do not support this plan. So, the corporate media is trying to make this sound like the whole region is on board with this scheme.
For months, Canada has been playing a leading role in preparing for - according to the Canadian newspapers - for exactly what happened, the recognition of Juan Guaido.
And Canada has been into this scheme for months. And the rationale is supposedly that the election of 2017 was not a legitimate election because people w…

It seems that Bernie Sanders got it all wrong again, this time regarding the situation in Venezuela - very disappointing

globinfo freexchange
In an unfortunate series of tweets regarding the situation in Venezuela, Bernie Sanders exposed his weak spot again on foreign policy matters.
Sanders tweeted:
The Maduro government has waged a violent crackdown on Venezuelan civil society, violated the constitution by dissolving the National Assembly and was re-elected last year in an election many observers said was fraudulent. The economy is a disaster and millions are migrating. 1/3 — Bernie Sanders (@SenSanders) January 24, 2019
The United States should support the rule of law, fair elections and self-determination for the Venezuelan people. We must condemn the use of violence against unarmed protesters and the suppression of dissent. 2/3 — Bernie Sanders (@SenSanders) January 24, 2019
But we must learn the lessons of the past and not be in the business of regime change or supporting coups—as we have in Chile, Guatemala, Brazil & the DR. The US has a long history of inappropriately intervening in Latin Amer…

Former Pentagon official confirms: Trump prepares for war with Iran

globinfo freexchange
Right after Trump's sudden announcement that he will withdraw the US forces from Syria, we had some mixed reactions. Some liberals reacted angrily, but most of the reactions from the liberal machine were rather moderate, or at least not as intensive as someone would normally expect.
On the other hand, Trump's supporters and all those who had enough of the pro-war neoliberal establishment, felt a kind of vindication, as it appeared that Trump would eventually keep its promise for an 'anti-interventionist' policy.
But the blog wrote immediately a 'not so fast' article to explain that most of the Americans and all those who are tired of the US endless wars, should not rush to celebrate. We estimated that Trump's move is probably a sign that he is going to re-organize troops and go after the big target called Iran.
Indeed, shortly after the move, Trump, suddenly again, announced that he will also pullout troops from Afghanistan.
And then, about…

Jeremy Corbyn + Brexit = UK's liberation from the EU neoliberal barbarism

With Tories in power Brexit would be meaningless
globinfo freexchange
As has been mentioned in previous article, Brexit could play a much more critical role in the future course of Europe, apart from being treated just as a result of national pride - wounded Britons alarmed by the sirens of patriotism.
While the Brussels-Berlin axis will seek to implement all the conditions of the Greek experiment inside the EU, the Labour party under Jeremy Corbyn could become an example against this dark future. While the Greek PM, Alexis Tsipras, suffered a heavy defeat as went unprepared in the battle with the ruthless neoliberal priesthood, Corbyn should go to the battle with the neoliberal regime after a good preparation and a well-constructed plan.
Costas Lapavitsas explains why only outside the EU, the UK will have a chance to turn left - with a Labour government under the Corbyn leadership - in order to implement progressive policies for the benefit of the vast majority:
The European Union has bec…

Pompeo's special tweet potentially indirect threat against those who won't follow the orders on Venezuela

globinfo freexchange
After John Bolton indirectly threatened Venezuela with that 'accidental' revelation of about 5,000 US troops to be sent to Colombia, it was Mike Pompeo's turn.
In a peculiar tweet, the other major Trump warhawk essentially sent a clear message to those countries (mostly under the US influence) that refused to recognize Washington's puppet, Juan Guaidó, as the legitimate president of Venezuela.
Pompeo named one by one the countries that obeyed to Washington's orders: “We applaud Austria, Belgium, Croatia, Czech Rep., Denmark, Estonia, Finland, France, Germany, Iceland, Latvia, Lithuania, Luxembourg, Macedonia, Netherlands, Poland, Portugal, Spain, Sweden & UK for supporting Venezuelan people by recognizing @jguaido today as Interim President.
And then he placed a map, colouring the obeyed countries and the US with the same intense color.
We applaud Austria, Belgium, Croatia, Czech Rep., Denmark, Estonia, Finland, France, Germany, Iceland, Latvi…

Government shutdown, Venezuela: Donald Trump evolves into the best propagator of neoliberal fascism that tends to become a norm

by system failure
Even before the 2016 US presidential election, this blog supported that Donald Trump is a pure sample of neoliberal barbarism. Many almost laughed at this perception because Trump was being already promoted, more or less, as the 'terminator' of the neoliberal establishment. And many people, especially in the US, tired from the economic disasters, the growing inequality and the endless wars, were anxious to believe that this was indeed his special mission.
Right after the elections, we supported that the US establishment gave a brilliant performance by putting its reserve, Donald Trump, in power, against the only candidate that the same establishment identified as a real threat: Bernie Sanders.
Then, Trump sent the first shock wave to his supporters by literally hiring the Goldman Sachs banksters to run the economy. And right after that, he signed for more deregulation in favor of the Wall Street mafia that ruined the economy in 2008.
In 2017, Trump bombed Syria f…

#HandsOffVenezuela: Brave Italians show us the path of resistance against the European branch of the neoliberal beast

globinfo freexchange
According to RT, Italy vetoed EU recognition of Venezuelan opposition leader Guaido. As RT reported:
Rome has effectively derailed an EU statement meant to recognize Juan Guaido as Venezuela’s interim leader if President Nicolas Maduro fails to set up snap elections, a Five Star Movement source confirmed to RT.
Italy announced the veto at an informal meeting of EU foreign ministers that started on January 31 in Romania, the source said. The statement, which was supposed to be delivered by EU foreign affairs chief Federica Mogherini recognized Guaido as interim president if snap elections were not held.
The European Parliament is the first European body to recognize Guaido “as the only legitimate interim president of the country until new free, transparent and credible presidential elections can be called in order to restore democracy.
The parliament urged the EU to follow suit but the effort stalled due to internal discord.…

EU parliament drops final leaf, recognizes Washington's puppet Juan Guaido in Venezuela

globinfo freexchange
The European branch of the global neoliberal fascism did what was expected: obey to the orders of the US imperialist empire and recognize Washington's puppet Juan Guaido as the 'legitimate' president of Venezuela.
As Al Jazeera reported:
The European Parliament has recognised Venezuela's self-declared interim president Juan Guaido as de facto head of state, heightening international pressure on the OPEC member's socialist President Nicolas Maduro. EU politicians voted 429 in favour to 104 against, with 88 abstentions, at a special session in Brussels on Thursday to recognise Guaido as interim leader.
Meanwhile, the EU parliament wouldn't even think to 'dare' to challenge the legitimacy of Emmanuel Macron in France, even with all these people protesting in the streets. At the same time, the establishment media try to direct the public attention from the Yellow Vest movement towards the situation in Venezuela.
It doesn't matter that N…