Hezbollah could be Lebanon's dominant political force

Significance On December 18, two months after Michel Aoun was elected president of Lebanon, Prime Minister Saad Hariri finally announced agreement on a ‘government of national accord’. The new Lebanese cabinet, which is strongly tilted towards Hezbollah, a Shia political-military grouping, has begun drafting a policy statement of its political and economic goals, which must be presented to parliament within 30 days. Impacts The new government will focus on internal stability and security, including control of Syrian and Palestinian refugees. Rising economic confidence could boost foreign investment. Syrian and Iranian influence over Lebanese foreign policy could increase. The new cabinet will support Hezbollah’s military role within the state and abroad.

Subject The Russian president's options for winning September elections. Significance The September 2016 elections to Russia's parliament, the State Duma, are the first to coincide with a severe economic crisis since President Vladimir Putin came to power. The authorities are determined to prevent social discontent escalating into the kind of protests seen after the last polls in December 2011, which unsettled Putin's plans for re-election in March 2012. Popular support for Putin remains high, and 'loyal opposition' parties such as the Communists are blaming economic problems on Prime Minister Dmitry Medvedev instead. Impacts Signs that the recession is slowing will reduce the scope for a protest vote. Putin is keen to get EU sanctions lifted by July, not least for the electoral benefits. Buoyed by growing popular support, the Communist Party may evolve into a more active political force.


Significance The assassination follows months of political turmoil and rising gang violence and comes just weeks before elections, scheduled for September 26. Interim Prime Minister Claude Joseph, who has taken charge of the country, said yesterday that measures were being taken “to guarantee the continuity of the state and to protect the nation". Impacts Further political assassinations would exacerbate unrest. The Dominican Republic has closed its border, fearing a migrant surge; the situation will bolster public support there for a border wall. The UN Security Council meets today and may authorise emergency action in Haiti; any substantial redeployment, however, would take time.


Significance Prime Minister Guido Bellido’s threat to nationalise Camisea has further stirred debate at the heart of government, this time about implementing a campaign pledge to this end, notwithstanding the government’s professed aim to create a secure environment for foreign investment. Bellido’s announcement did not have the backing of the cabinet as a whole. Impacts Bellido’s position will suffer if he is seen to backtrack on a key issue contained in Peru Libre’s manifesto. Polarised disagreements within the cabinet will persist. Castillo’s position will suffer from the lack of clear leadership.


Significance This goal was implicitly a response to the previous three decades of foreign relations under ousted former President Omar al-Bashir, when Sudan struggled under international sanctions, isolation and fluctuating foreign policy fortunes. Impacts Contrasting foreign policy orientations among political factions may be a source of tension within the power-sharing government. Contradictory agreements with other countries will be a liability. Foreign investment inflows will remain muted, at least until economic and political uncertainty fades.


Significance The reshuffle involves some significant changes, including the promotion of Economy Minister Nadia Calvino as first deputy prime minister. Other notable changes include new ministers at the head of foreign policy and territorial policy, which deals with relations with Catalonia. Impacts Sanchez has increased the number of women and young people in the new cabinet; this could broaden his appeal among centrist voters. While Madrid will continue to respect EU policy parameters, Sanchez’s continued reliance on UP and ERC support will worry investors. Sanchez’s leadership of the PSOE could come under threat if he is seen as ‘giving too much’ to Catalan nationalists.


Subject E-commerce in India. Significance Following nationwide protests from small traders in late 2014, key sections of the Bharatiya Janata Party (BJP) government have demanded that Prime Minister Narendra Modi act against India's rapidly growing e-commerce platforms. Particular targets are the largest e-commerce players, mostly Indian, but including Amazon India, which have benefitted from large infusions of foreign capital and stand accused of side-stepping India's strict limits on foreign investment in multi-brand retail. Impacts Any improvement in transport and distribution infrastructure will boost e-commerce. Proliferation of mobile and banking facilities is key to expanding online retail. Small traders will oppose the expansion of e-commerce, causing greater political losses for the BJP than any other party.


Subject Foreign policy after the attempted coup. Significance Before the July 15 coup attempt, foreign policy was showing signs of turning towards pragmatism from the ambitious positions associated with former Prime Minister Ahmet Davutoglu. Rapprochement was sought with both Russia and Israel, and relations with the United States and EU were relatively stable. The attempted coup introduces considerable uncertainty. President Recep Tayyip Erdogan's insistence that US-based cleric Fethullah Gulen was behind it is drawing the United States into Turkey's most serious political trauma in decades. Impacts Relations with the West are unlikely to return to their pre-coup warmth soon. The most likely result for US-Turkish relations is what may be termed a 'stressed-out partnership of convenience'. How both US-Turkish relations and Turkey's conflict with the PKK develop will determine Turkish policy on Syria and the ISG.


Subject The sale of the Erdenet mine. Significance The day before parliamentary elections in June last year, Prime Minister Saikhanbileg Chimed announced the sale of 49% of shares held by the Russian government in the Erdenet Mining Corporation and the Mongolrostsvetmet mining company to Mongolia Copper Corporation, an unknown private Mongolian company. Subsequent parliamentary inquiry concluded that the sale was unconstitutional and the government ordered the shares transferred to the state on February 16 this year. The government’s actions received wide public support while polls reveal that the electorate views corruption as the main obstacle to Mongolia’s development Impacts Talk of 'nationalisation' in the Western media threatens to derail Mongolia's efforts to fix its image and attract foreign investors. The unusual circumstances of the sale raise suspicions of corruption and collusion between Mongolia's previous government and largest bank. The new government's will to scrutinise sale demonstrates the strength of Mongolia’s democracy.


Subject Belarus's move towards EU and away from Moscow. Significance The EU's recognition of President Alexander Lukashenka's re-election as a legitimate process has given impetus to an emerging rapprochement. The government in Minsk is presenting this shift in foreign policy in neutral terms, as a matter of economic necessity, but the Westward reorientation has broader implications for the long-standing political alignment with Russia. Impacts The diversification of Belarus's foreign policy will be seen by Russian hardliners as proof of Lukashenka's disloyalty. The fractured opposition will be further marginalised as a political force. Russia may be pressured to change the format of its Eurasian integration project to take greater account of neighbours' interests.


Subject Prospects for India in 2016. Significance Prime Minister Narendra Modi's government has accelerated its agenda of piecemeal and sequential reform following his Bharatiya Janata Party (BJP)'s defeat in the Bihar elections last month. As difficult state elections approach in the first half of 2016, the government is banking on these reforms and headline growth to secure voter and investor support. In foreign policy, the government is likely to focus on regions of strategic importance, especially Russia and the Middle East.


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