An Alternative Alliance

It is hard to imagine a world where the United States is not the dominant global power. However, over the last decade the BRICS alliance (Brazil, Russia, India, China, and South Africa) has emerged as a potential alternative to the traditional, US-centric power structure. In order to maintain its position as a global leader, the United States must effectively respond to the challenges presented by BRICS.

British economist Jim O’Neill of Goldman Sachs Asset Management developed the idea of BRIC in 2001 (South Africa joined ten years later) as an investment vehicle that took advantage of their large territory, abundant natural resources, and dense population. The BRICS nations leveraged O’Neill’s ideas to create the BRICS alliance to effectively leverage their combined strength. BRICS also provided each nation a platform to position itself as a regional power or as an international competitor of the United States. As BRICS continued to increase its presence in the international system, it presented an alternative to the traditionally western-dominated international power structure. There is a hope in some BRICS capitals, the alliance will accelerate changes to the status quo at the expense of the United States.

BRICS Economics

Without a doubt, BRICS is an international actor of significant influence. The BRICS nations represent 43% of the world’s population, 40% of its economy, 21% of the global GDP, and are responsible for 20% of global investment. According to the United Nations Development Program, the economies of China, India and Brazil will surpass the cumulative production of the G-7 in 2020. In 2014, in an effort to compete with the World Bank and the International Monetary Fund (IMF), BRICS created its own bank (the New Development Bank) and a framework for providing protection against global liquidity pressures they called the Contingency Reserve Arrangement. By 2018 the New Development Bank had lent US $7.5 billion, and this year it has issued bonds with a total value of 3 million yuan (US $447 million). These tools allow BRICS to operationalize the collective power of their economies. 

The BRICS heads of state meet at the BRICS X Summit in July 2018.
Photo credit: http://www.granma.cu/mundo/2018-07-29/que-temas-se-abordaron-en-la-x-cumbre-del-brics-29-07-2018-20-07-13

BRICS is well-positioned to take advantage of the current state of international affairs and is expanding its political reach. The concept of “BRICS Plus” provides a political mechanism for non-member states to engage the bloc at its annual summit. In some ways, BRICS appears more stable than some European countries such as the United Kingdom that are in the midst of political or economic crises. Recognizing this and perhaps hedging their bets, Mexico, South Korea, Jamaica, Argentina, and Turkey have all taken advantage of BRICS plus and have attended BRICS events.

 

2017 BRICS economic data from the IMF and the World Bank
Photo credit: https://ewn.co.za/2018/07/25/brics-nations-by-the-numbers

Future of the Bloc

Despite success in its first decade of existence, BRICS must adapt to overcome today’s challenges. The trade war between China and the United States presents one such challenge. Additionally, controversial positions taken by the Bolsonaro government in Brazil — discrimination against racial miniorities, homosexuals, and women — complicate the aspirations of BRICS to present itself as a role model for developing nations. In order to continue serving as a key partner for developing nations, BRICS must provide tailored solutions that focus on commercial investment in those nations as well as the needs of the people and communities there.

BRICS member states have managed to overcome cultural and geographic differences to create a strong alliance. Together, they’ve laid the groundwork to achieve their collective goals of becoming a global economic force and reducing the effects of climate change. Jim O’Neill, the Goldman Sachs economist that conceived of BRICS, is certainly optimistic. He believes four of the five BRICS nations (China, Brazil, Russia, and India) will have the world’s dominant economies in 2050. In the last ten years, BRICS has already helped to redefine the international order. If the United States, and the western world more broadly, intend to maintain a dominant position in international politics and economics, they must begin responding to BRICS as a separate economic and political entity — an alternative alliance — not just a tiny piece of the foreign policy of its member states.


Ligia Lee Guandique

Ligia Lee Guandique is a political analyst living in Guatemala City, Guatemala. She holds a Bachelor’s degree in International Relations and a Master’s degree in Political Science from the Pontifical Catholic University of Chile. Ligia has worked with human rights-based NGOs and is a regular contributor to The Affiliate Network.

 

 

Battle for the Throne: Indonesia Votes

As the ballots trickle in from the most complicated single-day election in history, Indonesia catches its breath and prepares for a tumultuous start to the second term of President Joko Widodo, known popularly as Jokowi. Though the election was held on April 17th, the Indonesian Election Committee (KPU) is still counting ballots from remote areas of the archipelago and will not announce the official result until May 22nd. In the meantime, the Indonesian Association for Public Opinion, a group of eight reputable pollsters, conducted a “quick count” that predicts Jokowi and his running mate, Ma’ruf Amin, will be victorious over ex-General Prabowo Subianto with a margin of 55.71% to 44.29% respectively. Though Jokowi encouraged the population to remain calm and await the official results, Prabowo dismissed the quick count and claimed victory. He eventually accepted defeat but blamed election fraud for his loss in an indication the battle may be just beginning.

Indonesia holds elections every five years, but this one was especially large and complicated. The KPU claimed the largest voter turnout in Indonesian history with 192,828,520 voters, approximately 80% of the electorate. Female voters were a majority, and 40% overall were millennials. This was also the first election in Indonesian history to combine the presidential election with the election for the People’s Consultative Assembly (MPR). The MPR consists of two houses, the People’s Representative Council (DPR), and the Regional Representative Council (DPD) with a colossal 711 seats up for grabs between them (575 and 136 respectively). According to the KPU, the complexity and intensity of the electoral process and the long travel distances between polling sites contributed to the deaths of 456 of its members. Indonesians take their democracy very seriously indeed.

Party vs. Interest

In a reversal from the 2014 election, Jokowi’s 2019 success is due largely to the Islamic “Green Factor”, i.e. the support of the National Awakening Party (PKB), the United Development Party (PPP), Golkar, and his own Indonesian Democratic Party of Struggle (PDIP). Jokowi’s controversial nomination of influential Islamic politician Ma’ruf Amin as his running mate attracted the support of Islamist parties, but the move came with great risks. Ma’ruf’s age (he’s 76) and history of political flip-flopping are concerns. In addition, while Ma’ruf was a renowned part of the 212 Movement to bring down then-candidate Basuki Tjahaja Purnama (Ahok) in his bid for Jakarta Governor, the movement was cited for intolerance. The risks of nominating Ma’ruf were borne out by the negative response of pollsters after his selection, even in Ma’ruf’s own province of West Java.

Green Factor in Indonesia's Election
The Green Factor: In the 2019 election, Islamic parties came out in support of Jokowi. Many also supported the religiously charged “212 Movement” to oust popular Jakarta Governor Basuki “Ahok” Tjahaja Purnama. Photo Credit: https://jakartaglobe.id/context/peaceful-election-suggests-exaggerated-fears-of-a-country-split-in-two

Ma’ruf’s issues aside, there is real concern about the appeal of Islamic parties in Indonesian politics. Though Islamic parties play an influential role in Indonesian politics, none has ever won the presidency, perhaps because their political interests tend to be more pronounced than their political ideology. There is a perception they sway with the political winds and as a result, they have difficulties developing a firm political base. In most cases, prominent Islamic leaders lead the Islamic parties. Changes in leadership cause friction and leave internal divisions that can result in abandonment of their main political goals. PPP for example, fully supported Prabowo’s coalition on an ideological basis in 2014. In January 2019, after a long internal battle, the party pledged its support to Jokowi instead. This decision had less to do with PPP’s philosophy and more to do with its evaluation of Jokowi’s likelihood of winning the election.

Jokowi’s Future Challenges

During the campaign Jokowi ran on his record as President, claiming to have lowered the percentage of Indonesians living in poverty to 9.84% – and the unemployment rate to 5.3%. Though these are complex issues, it is obvious Indonesia became economically stable during that time. The country enjoys a 5% economic growth rate and became a G-20 member state. Despite the excellent results, Jokowi knows his task is not complete and will face three primary challenges in his second term.

In the previous five years, Indonesia’s economy grew at a respectable rate between 4.88% and 5.00% but fell short of Jokowi’s stated 7% goal. Furthermore, Chinese investment and Jokowi’s ambitious effort to physically connect Indonesia’s 17,000 islands fueled most of the growth the country did achieve. Not only is this type of investment unsustainable, it benefits a tiny percentage – less than 1% – of new middle-class Indonesians. The gap between the “haves” and the “have nots” in Indonesia is still large. Jokowi needs to continue to boost economic growth and invest more in young Indonesians, especially in the area of education. This will help Indonesia’s future development and prevent a reliance on Chinese or other foreign workers at the expense of young Indonesians.

Despite a strong commitment to building infrastructure, Jokowi needs to invest more in security. This includes not only fighting terrorism, but quelling unrest after official announcement of the election results. The potential for violence is serious. In 2018, Indonesia arrested 396 people linked to ISIS, Jemaah Ansharut Daulah (JAD), and Hizbut Tahrir Indonesia (HTI) on terrorism charges and Prabowo received massive support from many fundamentalist groups. They have proven capable of mobilizing popular unrest in the past, bringing down Ahok, the popular Jakarta mayor, over allegations of anti-Islamic sentiment. Jokowi must preserve the harmony and image of Indonesia’s secular Muslims amidst threats of intolerance and attacks in the name of religion. Though there are no longer strong terrorist organizations in Indonesia, the country remains a place for massive recruitment by various radical organizations and their capacity for violent persists.

Apart from the Islamic “Green Factor” votes, Jokowi’s second term success will depend heavily on women and the poor. He must keep his campaign promises to issue welfare cards for education, basic needs, and vocational training programs. He needs to provide more opportunities for women, especially for the many mothers whose children disappeared during the Semanggi battle in 1998, a shameful event that is becoming a public cause. Finally, Jokowi needs to fulfill his promise of greater governmental transparency and a better system of checks and balances by bringing justice to those that have been wrongly imprisoned by corrupt officials.  

All these challenges and more will occupy Jokowi as he takes charge of a new and unfamiliar coalition next month. His ability to leverage the “Green Factor” in order to win the 2019 presidential election will not make it easy to appease his new supporter base and maintain his coalition. He must keep the promises he made while campaigning even when they run counter to the impulses of his new allies. The relationship between Jokowi and the Islamists adds a new dynamic to Indonesian politics, and in the world’s most populous Muslim nation, the Battle for the Throne is just the beginning of the war.


Viana GearyMefi Ruthviana Geary, PhD, has a scholarly interest in Countering Violent Extremism and deradicalization of terrorists. Her expertise is in Southeast Asian foreign policy analysis and open source intelligence (OSINT).

Liberty Happens: Venezuela on the Brink

On the morning of April 30th, Juan Guaidó announced a non-violent uprising against the Maduro government. He called the uprising “Operation Liberty” and for the first time, he openly invited the country’s military forces to join him. Broadcast on social media from an Air Force base in Caracas, the poorly produced video announcement was a confusing mixture of a populist call to action and an appeal to defend the Constitution from the usurpation of the Maduro regime. With Maduro under increasing pressure economically and politically, the time seems right for such a move yet it has seemed this way for years. Guaidó’s failure to spark any significant change under these conditions suggests that even in Venezuela there is more to achieving liberty than mobilizing enthusiasm for the cause; there must also be a plan.

Resistance Potential

There is a concept in the doctrine of revolution that seeks to measure the capacity of a society to change its government. Called “resistance potential,” one measures this capacity by an ambiguous dynamic of popular discontent, insurgent organization, inspirational leadership, geographic viability, and other factors. Without it, there is no possibility of a revolution. The good news for Guaidó, and the reason he keeps up the pressure on Maduro, is that resistance potential in Venezuela is extremely high.

An accelerating economic catastrophe exacerbates Venezuela’s political crisis. Home to the world’s largest proven oil reserve, Venezuela was once among the wealthiest nations on earth. But since Hugo Chavez first set the country on its current course in 1999, the economy has become increasingly reliant on crude oil, with exports reaching 98% of the nation’s external trade by value. This overreliance on a single commodity is unhealthy under normal circumstances but it is catastrophic with crude production at a 70-year low – nearly a third of the daily output achieved 20 years ago and half what it was in 2014. The slide has taken the currency with it, hitting ordinary Venezuelans hard and causing shortages in basic retail goods across the board. Hunger, unemployment, and desperation have become a feature of life for Venezuelans not wealthy enough or quick enough to leave before their savings were eliminated by hyperinflation exceeding 1.3 million percent.

The resultant humanitarian disaster has pushed 3.4 million desperate Venezuelans out of the country and is the fuel that feeds its resistance potential. Increasingly reliant on oppression and corruption to maintain power, Maduro is the focus of popular discontent that erupted in a spectacular attempt on his life by drone-delivered bombs in August 2018. Though he survived the attempt, it is likely this led Guaidó, by then the President of the tightly controlled National Assembly, to invoke an obscure clause in the Constitution allowing him to declare himself President in January. Since then Guaidó has done little beyond calling for popular demonstrations, though that changed in February when he attempted to spark an uprising by forcing humanitarian aid across the border from Colombia. Maduro easily countered the ill-conceived move, causing a dramatic confrontation and burning of the aid on the Santander Bridge. Somehow Guaidó’s credibility survived mostly intact even though many passionate Venezuelan volunteers did not.

Humanitarian Cucuta Colombia Venezuela
Humanitarian aid burns on the Santander Bridge linking Cucuta, Colombia with Venezuela on 23 February 2019. Guaidó’s ill-conceived push to force the border was easily countered by Maduro.

A Vision Without a Plan

Juan Guaidó believes the Maduro regime is ready for a fall, but his failures prove it takes more than resistance potential to change a government. Guaidó has a vision of Venezuela that is prosperous under his leadership and free of Maduro, but Guaidó is a tactical thinker, not a strategist. His political career thus far, and the public struggles he hoped would trigger Maduro’s downfall, were poorly planned and opportunistic. Not only does Guaidó lack a plan for success, he lacks the institutional capacity necessary to implement a plan in the first place. To understand this, one must know how power works in modern Venezuela.

The Venezuelan military, particularly the Army, is the guarantor of the Maduro regime’s viability. The basis for this arrangement is a patronage system that privileges the business interests of senior military officers and their families. Of all the failing institutions of the Venezuelan government, the military and police get paid first and they repay that patronage with loyalty. President Trump’s 18 February appeal directly to the Bolivarian Military to ignore their orders indicates a basic understanding of this in Washington, yet Guaidó made no similar moves to attract the Venezuelan officer corps to his cause until this morning. Doing so will require more than platitudes about liberty and the will of the people. It will require amnesty for senior officers, a strategy for paying salaries and funding the military through the transition, and at least a partial guarantee the patronage system will not be immediately dismantled. At this time, Guaidó doesn’t even have a designated Minister of Defense or a General Officer prepared to offer advice and take command of the military if required.

This apparent oversight cannot be attributed only to a flawed or non-existent strategy. With few exceptions, Guaidó’s team consists of his peers in the national assembly, many of whom are younger than he and lack bureaucratic experience. They struggle with funding and are invariably double- or triple-hatted. In the few instances where they manage well-defined ministerial portfolios, they do so under ambiguous authority, without the support of a single institution staffed, funded, and equipped to carry out the functions of government, and often in direct contravention of a Maduro official that does have proper agency backing. Needless to say these are very challenging conditions under which to manage a national crisis, especially one under tremendous pressure from external stakeholders.

Making Liberty

Despite the apparent shortcomings of Guaidó’s strategy and planning, he is a bold leader of character that puts himself at risk to achieve a positive vision for Venezuela. His apparent misreading of the country’s resistance potential and hesitation to recruit the military is perhaps better understood by recognizing that he is not a revolutionary. Guaidó does not want to fundamentally change Venezuela. He does not seek to abolish the legislature, defeat the National Bolivarian Armed Forces, or put his name on the Presidential palace. Instead, he wants to take over the existing system, and he wants to do so within the legal parameters available to him under the country’s current constitution. Until now he has been reliant upon popular demonstrations to exert pressure on Maduro to walk away, but for Operation Liberty to succeed, Guaidó will need a plan that draws the military away from Maduro. Liberty doesn’t just happen, it is made.


Lino Miani, CEO Navisio Global LLC

Lino Miani is a retired US Army Special Forces officer, author of The Sulu Arms Market, and CEO of Navisio Global LLC. He was directly involved with Guaidó’s failed attempt to deliver humanitarian aid to Venezuela in February 2019. You can see his first hand observations of that dramatic event on this Twitter thread from that day.

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