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29 May 2013 | Vol. 4, 18. From the Editor’s Desk Dear FDI supporters, Welcome to the Strategic Weekly Analysis. This week’s issue begins with a report on the objectives of the Australian Government’s newly-announced National Food Plan. We then examine the potential for increased Australian exports to Qatar, in light of the recent visit to Doha by Foreign Minister Bob Carr. Moving to Tanzania, we assess the probability of further unrest surrounding an important new gas pipeline. We then look at the latest developments in the wrangling between Sudan and South Sudan and the implications of that dispute for China, which has a significant interest in seeing a stable flow of oil. A little further afield, we examine the devastating locust plague afflicting Madagascar and its implications for the country’s perilous food security situation. We then consider the importance of continued anti-piracy efforts in the western Indian Ocean, even as the figures for this year continue the downwards trend of 2012. Moving to Tehran, we look at the latest events in the buildup to the 14 June presidential election, after the barring of leading candidates Mashaei and Rafsanjani by Supreme Leader Ayatollah Khamenei. Returning home, we conclude this week’s SWA by considering the implications for ASEAN of the violence directed towards Burma’s Rohingya minority. I trust that you will enjoy this edition of the Strategic Weekly Analysis. Major General John Hartley AO (Retd) Institute Director and CEO Future Directions International *****

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Page 1: From the Editor’s Desk · of Saudi Arabia and the UAE. Livestock, meat, wheat and motor vehicle exports seem to be the most promising sectors. Background Australias Foreign Minister

29 May 2013 | Vol. 4, № 18.

From the Editor’s Desk

Dear FDI supporters, Welcome to the Strategic Weekly

Analysis. This week’s issue begins with a

report on the objectives of the Australian

Government’s newly-announced National

Food Plan.

We then examine the potential for

increased Australian exports to Qatar, in

light of the recent visit to Doha by Foreign

Minister Bob Carr.

Moving to Tanzania, we assess the

probability of further unrest surrounding

an important new gas pipeline. We then

look at the latest developments in the

wrangling between Sudan and South

Sudan and the implications of that dispute

for China, which has a significant interest

in seeing a stable flow of oil.

A little further afield, we examine the

devastating locust plague afflicting

Madagascar and its implications for the

country’s perilous food security situation.

We then consider the importance of

continued anti-piracy efforts in the

western Indian Ocean, even as the figures

for this year continue the downwards

trend of 2012.

Moving to Tehran, we look at the latest

events in the buildup to the 14 June

presidential election, after the barring of

leading candidates Mashaei and

Rafsanjani by Supreme Leader Ayatollah

Khamenei.

Returning home, we conclude this week’s

SWA by considering the implications for

ASEAN of the violence directed towards

Burma’s Rohingya minority.

I trust that you will enjoy this edition of

the Strategic Weekly Analysis.

Major General John Hartley AO (Retd) Institute Director and CEO Future Directions International

*****

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National Food Plan to Boost Agricultural Optimism

Joe Ludwig, the Federal Minister for Agriculture has released the long anticipated National

Food Plan, with ambitions to take advantage of the growing Asian “dining boom”.

Background

First mentioned in the 2010 Labor election campaign, the National Food Plan promises

multi-million dollar research funds and grants to Australian producers, to boost trade ties

with Asia. The majority of the funding will go towards what is essentially a publicity

campaign targeting Asian markets and the development of an “Australian Food Brand”.

Much of the domestic focus is a result of a recent Federal Government inquiry into food

labelling, with an overwhelming response from consumers seeking to be better informed

about the origin and labelling of produce.

Comment

Foreign investment is a significant factor in the Australian agricultural sector, with some

reports stating that the level of capital investment the country will need over the next two

decades will only be possible with significant amounts of foreign investment. A long time in

development, the Plan builds on the Australia in the Asian Century white paper, advocating

an increased focus on the Asian export market.

A Federal government contribution of up to $30 million is earmarked for an Asian Food

Market Research Fund, to enable farmers to capitalise on the growth in Asia. Around $6

million will go towards a promotional campaign for Australian agriculture in overseas

markets, with an additional $2 million aimed at developing an “Australian Food Brand”.

Specifically targeting Asia, $5.6 million will be spent attempting to build closer trade

relationships.

Domestically, $1.5 million will go towards promoting careers in agriculture and food.

Community food groups will be eligible to apply for Federal Government grants of up to

$25,000, to support “food rescue activities” and address local food security issues.

Initiatives, such as small-scale community and city gardens, will qualify for grants of up to

$10,000.

Other elements of the plan include the creation of a new Food and Beverage Supplier

Advocate, to ‘work with small- and medium-sized Australian firms to help improve their

competitiveness and harness new business opportunities both domestically and abroad.’

The plan also recognises the need for a Productivity Commission review of the food supply chain regulations, in the light of recent negative publicity for Australian exporters. An Australian Council on Food will also be established, to engage and liaise with industry leaders and stakeholders, including addressing the domestic issue of Australia’s supermarket duopsony.

Tom Davy Research Manager Global Food and Water Security Research Programme [email protected]

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*****

Australia Seeks to Boost Ties with Wealthy Qatar

The recent visit to Qatar by Foreign Minister Bob Carr was a useful step in Australia’s

efforts to broaden Middle Eastern trade relations beyond the traditional regional markets

of Saudi Arabia and the UAE. Livestock, meat, wheat and motor vehicle exports seem to be

the most promising sectors.

Background

Australia’s Foreign Minister Bob Carr visited Qatar last week, in the hope of boosting ties

with the Gulf state. The trip was aimed at registering ‘Australia’s interest in doing business

with Qatar in terms of economic and strategic relations’, Carr said. Australia’s trade with the

Middle East is currently modest, but there is significant potential for expansion, especially

with wealthy states like Qatar. Carr’s visit is therefore an encouraging development, as

Canberra seeks to build stronger relations with Qatar and diversify its trading partners.

Comment

Speaking to a range of journalists at the Qatar-Australia and New Zealand Business

Association in Doha on 20 May, Carr acknowledged the growing economic ties between

Qatar and Australia. ‘Trade between Qatar and Australia increased by 30 per cent last year

and reached $1 billion as Australia is exporting livestock, meat, wheat and motor vehicles to

Qatar’, he said.

While trade between Australia and the resource-rich Middle East has traditionally paled in

comparison to other states and regions, things are beginning to change. Economic ties with

the United Arab Emirates remain strong and the annual two-way trade totals almost $6

billion; but there is also significant potential to expand bilateral trade with other states in

the Middle East, particularly Qatar.

Indeed, Australia’s exports of live animals to Qatar, traditionally one of its biggest export

items to the Middle East, continues to expand. The value of live animal exports in 2011-12

totalled $70 million, though that is likely to increase in the future as Qatar’s population and

its appetite for meat, continue to grow. As Carr said during his visit, ‘we want to increase this

trade volume ... which is why I will talk to Hassad Foods’. The talks with Hassad Foods, a

Qatar-based conglomerate with significant holdings in Australia, were apparently geared

toward further co-operation in agricultural food production, one area were trade has

flourished in recent times.

Another key area where trade is expected to grow is motor vehicles. The Middle East

accounts for almost $2 billion and over 80 per cent of Australia’s motor vehicle exports,

General Motors-Holden’s cars are popular in the region. In 2011-12, the value of exports of

motor vehicles to Qatar totalled $50 million, or roughly ten per cent of all exports to the Gulf

state. This may only be a fraction of the motor vehicle exports to Saudi Arabia, which

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accounted for over $1 billion last year, but there is significant room for expansion, especially

in four-wheel drive vehicles.

Beyond this, agricultural exports of meat, wheat, sugar and barley are expected to increase.

Moreover, with Qatar set to host the FIFA World Cup in 2022, there should also be

opportunities for Australian businesses in engineering and construction. As Carr noted, ‘I

think Australian companies are well placed to contribute to Qatar’s business development

and the run-up to the 2022 World Cup.’

As Qatar, on a per capita basis one of the richest countries in the world, continues its rise, its

trade relations with Australia will also increase. Carr’s visit, therefore, is an encouraging sign

as Australia seeks to build stronger relations with this wealthy state and to diversify its trade

partnerships in the Middle East beyond Saudi Arabia and the UAE.

Andrew Manners Research Analyst Indian Ocean Research Programme [email protected]

*****

Tanzania: Violent Demonstrations over Gas Pipeline Resume

Violent demonstrations are expected to continue in the Mtwara region of Tanzania as the

government refuses to back down on constructing a gas pipeline from the area to the city

of Dar es Salaam.

Background

Tensions remain high in the southern Mtwara Region of Tanzania. The government has said

that, despite recent protests, it intends to continue with the development of a gas pipeline

from Mnazi Bay, located in the Mtwara Region, to the coastal city of Dar es Salaam. At least

one person was killed during protests on 22 and 23 May and dozens more were arrested, in

the renewed bout of civil unrest in opposition to the development of the pipeline. Further

protests are anticipated in the coming months, potentially causing delays to the project.

Comment

The China-funded pipeline is expected to be approximately 532km-long and will pump

natural gas from Mtwara to Dar es Salaam. There the gas will be processed to produce 2,780

Megawatts of electricity, in an attempt to alleviate the country’s protracted power

problems. The decision to send the gas to Dar es Salaam for processing was made because

the city already has the necessary infrastructure required for the project.

Mtwara’s residents have become increasingly angered at the decision to send the gas to Dar

es Salaam and have held several protests in recent months. On 27 December 2012,

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thousands of Mtwara residents held

a protest march; although this was

peaceful, a subsequent protest on

27 January 2013 in the Masasi

territory turned violent. At least four

people were killed and dozens more

injured; the protest also caused

damage worth at least US$929,000

to vandalised property. Some

reports indicate that the residents of

Mtwara are not against the pipeline

being built, more that they have

become concerned at not receiving

a greater share of the benefits

expected to be generated by the

project. They are also disgruntled at

the prospect that the development

will not benefit the Mtwara area;

rather that Dar es Salaam, which is already developed, will gain the financial benefits and

potential employment opportunities it creates. As a result, residents argue that a processing

plant should be built in Mtwara instead.

Some commentators argue that large natural gas discoveries off the east coast of Africa,

including those off Tanzania, have caught these emerging countries off-guard. Updated

legislation is a key tool in calming fears amongst local communities and assuring them of

their entitlement to a fair share of generated revenue. Tanzania, where the only petroleum

law is the Petroleum (Exploration and Production) Act of 1980, has recognised that new

legislation is needed. It is currently working on the third draft of a Natural Gas Policy.

Nevertheless, as competition to attract investors intensifies and pressure to convert natural

gas increases, Tanzania’s government is unlikely to postpone development of the much-

needed pipeline infrastructure. Consequently, Mtwara’s residents are expected to continue

holding protests against the development, potentially causing delays to the project. This is

likely to continue at least until updated legislation is enacted and the community is informed

of the benefits they can expect.

Kim Moss Research Analyst Minerals and Energy Research Programme [email protected]

*****

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Sudan-South Sudan Oil Conflict Brings New Role for Beijing

Its growing engagement in Africa has led China to play an unprecedented mediation role in

the dispute between Sudan and South Sudan over oil exports. It is contrary to China’s long-

standing hands-off approach and potentially heralds a new and more complicated aspect

to its relations with resource-rich countries.

Background

When South Sudan seceded from Sudan in 2011, it took 75 per cent of the oil reserves with

it. Being landlocked, though, it continues to rely on Sudan’s ports for its exports. In January

2012, disputes over transit fees led to a halt in oil production. South Sudan restarted oil

production in May 2013, following the resolution of the fees dispute. China has substantial

interests in the region and is likely to play a behind-the-scenes role in mediating the conflict.

Comment

South Sudan receives 98 per cent of its government revenue from oil. After production

ceased, South Sudan’s economy shrank. Sudan, which had already lost substantial oil

reserves suffered also.

The resolution of the oil dispute is part of a wider agreement that also involves the

withdrawal of troops from the disputed border. Territorial issues – which last year

contributed to pushing the two

countries to the brink of war – have

still not been resolved and continue to

plague the relationship and affect oil

flows.

Meanwhile, alleged Southern support

for the Sudanese Revolutionary Front

militia resulted in the threat, on 27

May, from Sudanese President Omar

al-Bashir to ‘shut down the oil pipeline

forever’.1

China has vital interests in the region,

claiming the position of Africa’s

largest trading partner. China imports

82 per cent of the oil produced in

South Sudan and about 70 per cent of Sudan’s. Chinese state-owned enterprises were

among the first to invest in Sudan in the 1990s, but the civil war in Darfur deterred Western

multi-nationals. These circumstances highlighted China’s foreign policy principle of “non-

interference” in the internal affairs of other countries.

1 Laessing, U., ‘Bashir Threatens to Close Oil Pipeline in Row with South Sudan’, Reuters, 27 May 2013.

<http://www.reuters.com/article/2013/05/27/us-sudan-south-oil-idUSBRE94Q0IL20130527>.

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Recently, however, vital economic interests in greater Sudan have necessitated China’s

involvement in mediating the dispute, challenging its non-interference policy. Peaceful

relations between the two African neighbours are essential to ensure a stable flow of oil

exports. Recognising this, Beijing sent a special envoy to defuse tensions, which represents a

new course for Chinese diplomacy in Africa. Additionally, as new reports of oil blockages

emerged last week, the South Sudanese Government summoned the Chinese Ambassador

to discuss the issue.

Beijing has long been an ally of Khartoum and a supporter of President al-Bashir – despite

warrants from the International Criminal Court for his arrest. In 2011, al-Bashir was

welcomed during an official visit to China. China has also courted Juba and has invested

heavily in infrastructure in South Sudan – although much of it has lain idle since production

ceased last year.

As well as the economic advantage of restarting oil exports, China will also reap a political

advantage through international conflict resolution. China wants to be seen as a responsible,

peace-building global power, wielding influence commensurate with its growing economic

and military strength. Successful resolution of this conflict will boost its reputation.

China’s role in this dispute may also have implications for its position on other conflicts in

the region. Having set a precedent, China may be expected to mediate other disputes in

areas where it is a stakeholder; although some analysts argue that this is an irregular case

that has forced a unique response from Beijing. As Chinese investment continues to grow in

Africa, however, deeper involvement in economic and political issues will lead to the need

for more substantial responses from China. This, in turn, will require more involvement in

the internal affairs of governments.

In the meantime, China is also seeking to reduce its dependence on the two Sudans, despite

its substantial interests there, due to the continuing risk of instability and potential conflict

between the two countries. China has already seized investment opportunities in other oil-

producing countries, including Iraq and Venezuela, and will continue to diversify its sources

of energy. Additionally, a planned oil pipeline, running from South Sudan to the Kenyan

coast – possibly funded in large part by China or Japan – will increase the prospects of stable

oil exports from South Sudan, reducing its reliance on its northern neighbour.

James Davies Research Assistant Indian Ocean Research Programme

*****

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Locust Plague Causing Food Security Crisis in Madagascar

Madagascar faces an extreme risk of food insecurity in the coming twelve months as a

serious locust plague threatens crops in up to two-thirds of the country.

Background

Already experiencing high rates of undernutrition, Madagascar’s food security situation is

expected to deteriorate over the course of the next twelve months, unless measures are

taken to control a locust plague building in the south-west of the country. The looming food

security crisis is the result of a series of cumulative shocks: Cyclone Hurana destroyed crops

and caused widespread flooding in February; the locust plague is spreading rapidly; and food

aid continues to be disrupted by political instability.

Comment

Madagascar has one of the lowest income levels in the world. Estimates indicate that 85 per

cent of the population live on less than US$1 a day; up from 68 per cent prior to the political

crisis in 2009. Low income levels combined with interrupted food production, make the

population vulnerable to high rates of food insecurity and malnutrition. The World Bank

estimated in 2011 that 83 per cent of the population was experiencing nutritional

vulnerability. Recent FAO estimates indicate that seven million people (33 per cent of the

population) are currently undernourished.

Natural disasters are the major stumbling blocks to Madagascar’s food security and

economic development at large. The country experiences an average of three to four serious

cyclones each year, along with associated flooding. Consecutive droughts also affect some

parts of the country. In February this year, Cyclone Hurana hit Madagascar, affecting 42,000

households and flooding 14,000 hectares of cropped fields in the south-western districts of

Morombe and Toliara. In

addition to directly harming

food security by damaging

crops and housing, the cyclone

resulted in a long period of

ideal breeding conditions for

locusts. This exacerbated the

spread of the plague, which

had already been designated a

national disaster in November

2012.

Locusts are currently

estimated to have infested

around half of the country.

Ongoing assessments indicate that, on average, 40 to 50 per cent of maize and rice crops

have been decimated by locusts in the mid-western regions, with up to 100 per cent losses

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in some areas. The heart of the plague is in the south-west, an area prone to drought and

cyclones, where more than 80 per cent of the population live below the poverty line.

In the absence of an emergency control programme, the FAO estimates that 1.5 million

hectares, up to two-thirds of the country, could be infested by September this year. The

plague is the worst since the 1950s and could last for five to ten years if untreated. A less

severe four-year plague that ended in 2000, caused widespread food shortages.

The FAO and Ministry of Agriculture have prepared an emergency response programme,

which will conduct large-scale aerial and ground control operations, to contain the locust

threat. The joint three-year programme will cost US$41 million. Some US$22 million is

needed before June to allow the programme to go ahead, but despite appeals to donors, so

far this sum has not been met.

Donors suspended all but emergency assistance to Madagascar and imposed economic

sanctions after the 2009 coup d’état. Since then food assistance has fallen to a very serious

level and supplies coming into the country have been intermittent. The political turmoil in

2009 also triggered an ongoing economic crisis. GDP fell by four per cent in 2009 and foreign

investment and tourism flows have drastically reduced. The political and economic crises

have stalled the implementation of a long-term disaster management programme and the

National Action Plan for Food Security (PANSA). Madagascar requires strong and integrated

policies from both the government and the international community, to reduce malnutrition

and support economic development. Uncertainty surrounding the country’s upcoming

elections poses further concerns for the recovery process.

Current estimates indicate that lower production and limited availability of food in

2013/2014, could expose 13 million Madagascans to food insecurity and livelihood

disruptions.

Lauren Power Research Analyst Global Food and Water Crises Research Programme [email protected]

*****

EU, Australia and New Zealand Continue Anti-Piracy Efforts as

the Number of Incidents Falls

Continued efforts, both at sea and on land, are necessary to consolidate the gains made

over the last year and prevent a resurgence of piracy off the coast of Somalia.

Background

Anti-piracy efforts in the western Indian Ocean have received another boost, with the

European Union announcing that it will contribute over €37 million ($49.7 million) to the

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Programme to promote Regional Maritime Security (MASE). The continuing involvement of

far-flung external stakeholders, such as the EU, Australia and New Zealand – among others –

highlights the importance of maritime security in the area and is necessary to consolidate

the gains made on land, which have seen the incidence of piracy fall markedly.

Comment

The ICC International Maritime Bureau notes that so far in 2013, there have been just seven

reported incidents of Somali-related piracy, including one hijacking. So far, the figure

represents a continuation of the trend seen in recent years. The EU reports that pirate

attacks decreased from 299 in 2011 to 111 in 2012, with hijackings falling from 25 to 12 over

the same period. This trend was aided by the continuing international naval presence in the

region and the adoption of anti-piracy measures by vessels transiting the region.

The gains made at sea have been boosted significantly by the progress made on land, with

the Somali Federal Government and its AMISOM (African Union Mission in Somalia) partners

extending their authority and dislodging the Islamist al-Shabaab militia from many of its

strongholds in the country’s south. The weakening of al-Shabaab has brought an incipient

stability which, combined with the greater difficulty and higher risks of piracy, has made the

waters of the western Indian Ocean the safest that they have been since 2008.

While the figures are encouraging, the trend could still be reversed, hence the importance of

the MASE programme. It aims to work with regional states, including Somalia, to address the

causes, as well as the symptoms of piracy. It features initiatives such as capacity-building in

legal and judicial systems and in coastal surveillance and patrols. Perhaps most importantly,

in Somalia it includes training programmes intended to provide people with vocational skills

that will hopefully steer them away from piracy. To be truly effective, however, the

programme will also require continued stability and economic development.

The progress made to date highlights the need to continue the contributions being made by

many extra-regional stakeholders, including Australia, New Zealand, the EU, the United

States, Japan, China and India.

HMAS Toowoomba is leading Australia’s contribution to the US-led Combined Maritime

Forces. It will remain until the end of May, when HMAS Newcastle will take over her duties

with Combined Task Forces 150 (counter-terrorism), 151 (counter-piracy) and 152 (Persian

Gulf maritime security), to prevent piracy and improve maritime security.

The Royal New Zealand Navy frigate HMNZS Te Mana will join the Combined Maritime

Forces for a three-month rotation in November 2013. The New Zealand Defence Force will

also deploy staff officers to the CMF taskforce command in 2013 and 2014. According to the

Ministry of Defence, six officers will be attached from mid-2013, with up to 14 staff officers

commanding a taskforce from 2014. A Royal New Zealand Air Force P-3K2 Orion maritime

patrol aircraft will also be deployed from mid-2014.

Efforts such as those from Australia and New Zealand might now seem to be less important

than before. In reality, they are needed as much as ever, to consolidate the still fragile gains

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made to date and secure the sea lanes of communication, which are vital to global trade and

the prosperity of even the farthest-flung countries.

Leighton G. Luke Manager Indian Ocean Research Programme [email protected]

*****

Iran’s Supreme Leader Playing it Safe

Iranian Supreme Leader Ayatollah Khamenei’s decision last week to ban Hashemi

Rafsanjani and Rahim Mashaei from the election has prompted criticism. How the remarks

will impact upon the Supreme Leader’s objective of stacking the government with loyalists,

remains to be seen.

Background

Rafsanjani has accused Iran’s leaders of ‘incompetence and ignorance’ in response to being

barred from participating in the upcoming 14 June presidential election. As a former Iranian

president, with public support, the decision by the Supreme Guardian Council to bar

Rafsanjani so early is likely to have repercussions.

Comment

Khamenei has positioned his political forces early this year, in an attempt to crush potential

protests and criticisms that question the legitimacy of Iran’s theological government. With

the Iranian Revolutionary Guard Corps (IRGC) on high alert, internet and media censorship at

an all-time high, and the disenfranchisement of two major political figures, Khamenei’s

actions exude many of the

characteristics of a regime in

crisis.

The policies enacted by

Khamenei indicate an increasing

politicisation of the Supreme

Leader’s role, perhaps as a

means of maintaining the status

of the clerical elite and the

regime as a whole. As seen from

Rafsanjani and Mashaei’s recent

comments and attacks on the

Guardian Council and the Supreme Leader, there is growing strength among marginalised

factions seeking to challenge Khamenei’s rule.

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Rafsanjani in particular, with his large popular support base, has been seen as a potential

rival to Khamenei for many years, particularly during his presidency immediately after the

Iraq-Iran war. During this period, Rafsanjani became known for his liberal economic leanings,

which were at odds with the administration, as well as his attempts to reform the ultra-

conservative blocs within the Iranian establishment.

During Mahmoud Ahmadinejad’s presidency, Khamenei again dealt with a hostile

government, where the president utilised his position to undermine the ruling clerical elite’s

control over governmental policy. Consequently, it can be seen that Khamenei is taking no

risks by promoting two candidates who have been very close to the clerical establishment;

Saeed Jalili and Ali Akbar Velayati.

Khamenei’s decision-making process has been greatly changed as a result of these

protracted challenges to his leadership reducing his political stock both publically and

governmentally. Therefore, his decision to remove Rafsanjani and Mashaei from the race is a

means of “reins tightening” by the leader, and may be seen in a negative light. Its effects

though, will be muted by the lack of an organised opposition party to the regime.

The Iranian elections have not distracted either the US or Tehran from their rivalry, with

each conducting military exercises this month. The 41-country war games hosted by the US

in the Persian Gulf at the start of May this year, has been an overt signal to Tehran; despite

the US “rebalancing” towards Asia, it will still maintain a large presence in the Middle East.

Tehran responded with its own missile exercise, which featured several “new” missile

launchers. With the Supreme Leader expected to have more control over the government

after the election, it is unlikely that any future president will divert from the standard Iranian

practice of hostility to the US.

Saeed Jalili, one of Khamenei’s loyalists is a potential front-runner for the presidential

position. A safe pick, Jalili is likely to maintain his allegiance to the clerical regime and thus

be strongly supportive of the policies made by the clerical elite.

Khamenei’s preference for Jalili represents the need by the regime to preserve its hold on

domestic politics. So long as it can prevent an effective opposition from organising, such as

that seen in the 2009 presidential election, the position of the regime will remain

entrenched. Such a movement could potentially form around Rafsanjani, but his decision to

not contest the decision by the Guardian Council makes it unlikely.

With the IRGC on standby and mass communication technology heavily censored, it is

apparent that the power is still in Khamenei’s hands. Despite this, public consternation

about such heavy handed policies may have repercussions over time; in fact, the need for

Khamenei to engage in such tactics may signal a weakening of the clerical establishment.

Gustavo Mendiolaza Research Analyst Indian Ocean Research Programme [email protected]

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*****

Rohingya Dilemma Complicates ASEAN Affairs

The leadership of the Association of South-East Asian States (ASEAN) must reconsider the

predicament of the Rohingya in Burma (Myanmar), as it is rapidly becoming a regional

issue. ASEAN is aware that the issue endangers the group’s stability, but has not

developed a joint position.

Background

The violence in Burma between Buddhists, particularly the members of the nationalist

Rakhine Nationalities Development Party (RNDP), and the Muslim minority Rohingya

community has engendered a regional refugee crisis. Thailand, Malaysia and Indonesia have

been directly affected by the influx of Rohingya refugees, but only Indonesia has called upon

Burma to address the issue.

Comment

The Rohingya, numbering around 800,000, live primarily in the western Burmese state of

Rakhine. Ethnic and religious violence has been ongoing in that area since June 2012. The

Rohingya are accused of attempting to “Islamify” Burma, among other allegations. Around

two hundred people have been killed and more than 140,000 made homeless in incidents of

mass arson, looting and murder. The official Burmese Government position is that the

Rohingya are illegal Bengali immigrants from Bangladesh. For its part, Bangladesh officially

denies them, as well. The result is that RNDP members, as well as the local sangha (order) of

Buddhist monks, have been able to organise and persecute the Rohingya with impunity.

Human Rights Watch, a New York-based NGO, has accused the Burmese Government of

engaging ‘in a campaign of ethnic cleansing’.2 Government authorities are allegedly

implicated in destroying mosques, conducting mass arrests, blocking aid, deporting and

forcibly transferring Rohingyas, and generally persecuting them. The security forces are

either implicated in failing to prevent the violence or even directly participating in the

violence. Many Rohingya currently reside in overcrowded refugee camps without adequate

care.

At least thirteen thousand Rohingya have fled Burma by sea, with around seven hundred lost

along the way. More will follow, and the status of the Rohingya is no longer just an internal

Burmese issue; it is now becoming one of significance to ASEAN as a whole. While the

Burmese Government shows no desire to escalate the issue to one of regional importance,

events have overtaken it. Thailand currently shelters around two thousand Rohingya

refugees, while others have landed in Malaysia and Indonesia, primarily for religious

reasons.

2 Human Rights Watch, 22 April 2013, ‘Burma: End “Ethnic Cleansing” of Rohingya Muslims’.

<http://www.hrw.org/news/2013/04/22/burma-end-ethnic-cleansing-rohingya-muslims>.

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Indonesia has seen protests against

the Burmese Government from its

Muslim population, with threats to

bomb Naypyitaw’s embassy in

Jakarta. President Susilo Bambang

Yudhoyono informed his Burmese

counterpart, Thein Sein, that he was

concerned about the conflict, but was

confident he was ‘trying do the right

thing in terms of getting the

communal violence under control’.3

Malaysia raised the issue in similarly

diplomatic terms on the sidelines of

the Asia-Europe Meeting last year.

Thailand, however, has not yet put pressure on Burma despite being informed that Rohingya

refugees will only be taken back if there is proof they lived in Rhakine. In general, despite

launching a human rights body at its most recent summit, the group has kept to the status

quo of non-interference. Burma is also scheduled to chair ASEAN in 2014, which will likely

ensure a tacit silence on the issue.

It is unlikely that the issue will be acknowledged until large-scale security risks from the flow

of refugees become apparent, or Burma’s internal security is compromised. Concerning the

latter, in March this year the Kaman, another Muslim ethnic group, was targeted during riots

in the town of Meiktila, 150 kilometres north of Naypyitaw. Clashes raged across eleven

townships, with forty-three people killed, eight hundred homes and five mosques torched.

The violence ended with another 12,000 people displaced. The unrest forced President

Thein Sein to declare a state of emergency. No real moves are being taken to end the

conflict, however, lending weight to accusations that the government is content to see the

Rohingya forced out of Burma, at the expense of the country’s general stability.

The alleged complicity of the security forces in the bloodshed may also be intended to be

seen by the general Muslim populace as a warning, but it may facilitate radicalisation among

persecuted groups. Refugees from the conflict might find support from various Islamic

militant groups residing in Indonesia, Malaysia and southern Thailand, which could, in turn,

escalate the regional stakes of the conflict. Silence on the issue may undermine ASEAN’s

desire for peaceful economic development in the long-term; its members may thus be

forced to formulate a joint position on the matter in the near term.

Daniel Barnes Research Assistant Indian Ocean Research Programme

3 Marukatat, S., ‘ASEAN Fails to Step into the Rohingya Mess’, Bangkok Post, 6 May 2013.

<http://www.bangkokpost.com/opinion/opinion/348588/asean-fails-to-step-into-the-rohingya-mess>.

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*****

Any opinions or views expressed in this paper are those of the individual author, unless stated to be those of Future Directions International. Published by Future Directions International Pty Ltd. 80 Birdwood Parade, Dalkeith, WA 6009 Tel: +61 8 9389 9831 Fax: +61 8 9389 8803 E-mail: [email protected] Web: www.futuredirections.org.au

What’s Next?

Representatives from Egypt, Jordan, the Palestinian Territories and other

countries are attending a conference hosted by the Union for the Mediterranean

in Barcelona to discuss foreign investment and water management on 29-30 May.

Indian Prime Minister Dr Manmohan Singh will visit Thailand on 30-31 May.

Bhutan will hold elections for its National Assembly on 31 May.

Thai Prime Minister Yingluck Shinawatra will make an official visit to Sri Lanka

from 31 May – 1 June.

The Asia Security Summit (also known as the Shangri-La Dialogue), will take place

in Singapore from 31 May – 2 June. The defence chiefs of South Korea, Japan and

the United States will hold their first trilateral meeting in four years on the

sidelines of the summit.

The Centre for Muslim States and Societies at the University of Western Australia

is hosting a lecture by Dr Emile Nakhleh titled “The Arab Spring at Two and a Half:

Lessons, Challenges, and Opportunities” on 10 June from 2.30-4.00pm. The venue

is G.06, Law, E-Moot Court, Hackett Entrance № 1, Hackett Drive, Crawley. For

more information, contact (08) 6488 4554 or [email protected].