Debt and football: writing off the Greeks

Good news stories are something of a premium in Greece at the moment. Last night’s victory over Russia in Warsaw at the European Championships made it hard for any football supporter not to be delighted for the tournament’s rank outsiders. The energy and celebrations at the end of the game sent the thousands of Greeks fans in the stadium into ecstasy, whilst much of the country greeted the news in the same way back home.

Yet, this is far removed from the shock and optimism after the country’s victory in Euro 2004. Greece was a founding member of the Euro zone economy, its people were becoming wealthier and EU money was investing in capital projects that would help improve the way of life. That Greece is now a distant and rose-tinted memory. As the financial crisis began to bite in Europe, European delegates began to understand how desperate the situation in Greece had become. Several countries including France and Germany had broken the rules of the European Central Bank’s growth and stability pact. The pact stated that a country’s budget deficit should not exceed 3% of its GDP and its national debt should not exceed 60 per cent of GDP. Little did they know how Greece managed to stay in between the lines.

Captain Karagounis

Even when the Euro finally became an economic reality, many officials believed that Greece simply wasn’t ready to join. The underlying currency and economic conditions would have made convergence for the whole of the Euro zone difficult. When the Greek government collapsed and its successors opened the books, the whole of the world was shocked. Previous administrations had managed to ‘cook the books’ on an enormous scale, using accounting methods that had placed huge chunks of the Greek national debt off the official records. Overnight officials discovered that Greece was running annual deficits of 12% with a national debt of 129% of GDP.

The downward spiral has continued from there since. As successive Greek governments have implemented severe austerity measures in return for EU bailouts, the social contract for ordinary citizens has begun to dissipate. Cuts to the public sector, higher taxes as well the inability to feed their families has seen Greeks take the streets on a daily basis. News footage no longer depicts Athens as the birthplace of democracy, but a city defiled with graffiti and polluted with tear gas. The language that invented the words crisis, chaos and catastrophe has brought them to life.

Panic on the streets of Athens.

The Greeks inability to trust any politician or economist makes its long term future even more indecisive. Since the crisis unfolded, over 10 per cent of the population has emigrated in search of work and most likely a settled life. With them, they have taken their money. Over a third of Greek bank deposits have left the country since the crisis began, €9 billion has left since the beginning of the year.

It is unsurprising then that many have turned to alternative parties in the recent elections. Not only has the far-right party Golden Dawn managed to generate great support, but the radical left party Syriza has taken votes away from the tradition socialist party Pasok. Syriza, led by its charismatic and young leader Alexis Tsipras has vowed that Greece will remain in the Euro but stop the austerity measures by reneging on its outstanding debt. A victory for Syriza in the re-run of last month’s general election is more than likely to be the first step of Greece leaving the Euro zone.

Yet how rational can the Greeks be at a time like this? Many have been unemployed for over two years, whereas those in work have not been paid for months. They are seeing all around them that a country in Western Europe has become destitute and suffering affliction that you would only associate with a war-torn nation. Suicide and food kitchens are part of the daily routine. Any political party that gives them a glimmer of hope is bound to cajole them to vote that way. Yet it is an entire fantasy. Greeks long to remain in the Euro because it once gave them everything they wanted, yet remaining in it would entirely undermine their recovery. The Syriza party may be acting out of goodwill, with a hue of opportunism, yet even they wouldn’t be able to remain in the EU without paying their debts. It would only lead to other debt-ridden countries in the Euro zone to doing the same, pushing the overall picture in the wrong direction.

The problem beyond both inside and outside of Greece is the fact no one is certain of what will happen next. The recent bail out of Spanish banks pushed Spanish and Italian bond yields to historical highs. The EU Troika may have finally laid down contingency plans for future crises, but inevitably they have acted too little and too late. If Greece falls then the economically uncompetitive Italy and Spain are bound to fall next, bringing down the already bailed out Irish and Portuguese. Capital flight may have created a safe haven in the non-Euro member UK, but its banks are heavily indebted to Spanish and Italian banks, who’s not to say that the UK could fall into another deep financial crisis as well?

The questions surrounding Euro bonds seem futile, they may avert short term crises, but they do not underwrite the fundamental problems that these countries face. The German Chancellor Angela Merkel is increasingly becoming isolated as world and EU leaders ask her to react, whilst her own country feels that their prudence should not be sacrificed for feckless southerners. If the Germans put forward the bulk of an EU firewall would it do anything or is it too late? Would a Greek return to the drachma see an instant return to growth or would it lead to high inflation. These are all the questions that no one seems to have the answer to.

The only thing that is certain is Greece will play Germany in the quarter-finals. Who will win? I’m not sure. We thought Greece would leave earlier, but they seem to have a knack of hanging on and causing a bit of damage. The football may be important to most, but Monday’s results will have implications for us all.

England expects?

The politics of following the English national team appears to get stranger and stranger as each tournament approaches. Not since 1966 has England managed to win a major international trophy and despite coming close on one or two occasions, most notably in 1990 and 1996, the dream of winning anything seems rather remote.

Yet, the English, who invented the game and this being rather noteworthy, appear to have a morbid fascination in seeing their football collapse and capitulate. For every tournament they enter, the whole country expects them to go and win it; this is despite the severe technical deficiencies and sheer exhaustion of playing a Premier League season. It is not just the fans who crank up the pressure; the media plays its role. For example, before most knock out games, be certain to see a headline play reference to Lord Admiral Nelson’s famous adage that ‘England expects everyman to do his duty’. In fact, ITV’s recent build up has parodied England going into the tournament on the back of their twelfth straight World Cup victory.

The 'heroes' of 1966.

It is worth reminding that the so-called ‘Golden Generation’ that infamously went onto win nothing, was actually a name given to the team by none other than the Football Association. Talk about hyperbole.

For many years England did expect, purely because they did invent the game and that was that. England famously did not enter into early World Cup tournaments because they believed that they were not properly devised nor was the FA willing to acknowledge them.

Even the mentality was wrong, British players were often renowned for the idea that running with your head down can get you out of trouble. The so-called ‘kick and rush’ football may have worked in the British leagues and in the early half of the 20^th century, but footballing tactics had moved on. England did not. One Dutch commentator said that his country admired the way the English played but they thought it was completely suicidal.

And here we are today. Less than two weeks before Euro 2012 kicks off in Poland and Ukraine and everyone is trying to down play it all. The preparation was not good. The departure of Italian Fabio Capello was not an ideal scenario. Despite Capello’s unpopularity with the press and a number of players, he was a winner and he knew what he wanted. The FA’s bizarre attempt to find an interim manager and hire him less than a month before the tournament speaks volume of the organisation.

I do not expect England to win, nor do I expect most people. Yet, I don’t understand this idea of trying to subvert any optimism. We don’t need to label ourselves as dark horses or chance outsiders. Why would you enter a tournament without thinking you were going to win it? You don’t go to a strip club to enjoy the furnishings.

Tournament success is about preparation and a spot of luck, for too long the conversation was ‘we invented the game so we’ll win it’ and later it became ‘we’ve got the best league in the world so we’ll win it’. Two remarkable truisms that have no real logic. 

If England ever do win a tournament it will require hard work and good players, but it will mainly require ideas and knowledge. The FA’s previous solutions of throwing money at the problem will add nothing further disappointment. Let’s hope, but not get ahead of ourselves.

David Cameron: Be bold or blow it.

It is said that the unwritten rule in 10 Downing Street is not to mention to Prime Minister David Cameron why the Conservatives did not win an outright majority in 2010. Going by these standards it may be wise if ever in the Treasury not to mention the 2012 spring budget to George Osborne. Two months have passed since the chancellor delivered his now infamous budget and it has brought the government nothing but negative headlines ever since.

Not only did the Conservatives take a kicking in the recent local elections, but so have many of its ministers. Home Secretary Theresa May managed to get her days wrong when trying to finally deport radical Islamic cleric Abu Qatada, Sayeeda Warsi is the latest politician to be accused of fiddling her expenses. Not to mention the elephant in the room involving the Culture Secretary Jeremy Hunt and his relationship with News International.

Happier times...

I suspect the chancellor; also the Conservative’s chief electoral strategist could not have foreseen what was coming around the corner. Far removed was the analysis regarding potential tax revenue increases or a shifting of the ‘Laffer Curve’, but endless reams of front pages calling it a tax break for millionaires and hyperbole over the so-called ‘pasty tax’. This decision was politically bold and one this blog believes to have been correct, but its aftermath has been managed appallingly. At a time of severe economic gloom and pain for many sectors of society, particularly the politically important C1s and C2s, if this change were to be ushered in, it had to be done effectively. This it was not.

As a consequence the Labour party have managed to take a 14-point lead in the polls with their leader Ed Miliband becoming noticeably better in his duels with Cameron at the weekly PMQs. Cameron, who has always ranked higher in approval ratings compared to his party, has also suffered. Probably the most popular Conservative in the country is the London mayor Boris Johnson and beyond that, people may start scratching their heads. The Liberal Democrat’s fortunes faded a long time before.

Theories of so-called ‘midterm blues’ have been thrown about by coalition MPs, but it’s not difficult to see why many already see the rot setting in. Despite the PM and his deputy Clegg renewing their vows in another rose garden moment at a factory in Basildon, the tensions are visible. Relations over Europe and most significantly the ways to see growth in the economy are causing tension.

Many commentators agree that it already appears to be getting to Cameron. He has lost his composure on several occasions of late, mostly during PMQs and particularly to the shadow chancellor Ed Balls. All coalition members are right to criticise Labour’s terrible economic legacy but even after two years of coalition government and a double-dip recession, Cameron is visibly pushing the same tired lines over and over again. It is not good politics and is increasingly starting to appear desperate.

Headache?

The hysteria over comments about whether Cameron and Osborne were ‘too posh’ should not have been given as much coverage as it warranted. The reason is that at any point, politicians are accused of being ‘out of touch’ from those outside the Westminster village. This was a story that overlapped with some of the previous week’s articles, but the trend had already begun.

Stories involving spin and sleaze are always damaging and became chronic in both the Major and New Labour years, but for this government and this leadership the issue that would be most alarming would be accusations of incompetence. This of course was a government coming together in the national interest. Admirers of Cameron’s leadership have always pointed to his ability to look for the practical solutions beyond ideology and his warmness to working with people. Cameron is best when he is bold. Most notably when he used the UK’s veto over the EU fiscal compact and when he famously called Gordon Brown’s bluff in the election that never was in 2008. So why does it appear to be going wrong?

The fact the economy hasn’t grown in 18 months is not helping anybody. The Tories must pure and simply rely on the strength of the economy to win a majority in the next election; and as things stand, that may not happen. The prospect of another hung Parliament and a potential coalition with the Lib Dems is bound to worry many backbenchers. This has inevitably led to questions regarding Cameron and his style of leadership.

A strong theme that emanates from websites such as Conservative Home, is the fact that he is not Mrs Thatcher. Despite being retired from public life and sadly suffering from dementia, Mrs Thatcher is very much the political pin-up for many Tory backbenchers, whereas for Cameron and Osborne, it is more likely to be Tony Blair. They admire Blair’s political intelligence and his ability to win elections, but certainly appear to have ignored his style of presentation.

Fewer special advisors within Number 10 and critically a weak voice from the communications department are making Cameron’s government appear feckless. This government, in only two years, has been radical in its reforms on welfare and education, but its inability to take control over the past two months has made them appear slightly aloof and the poll numbers reflect this.

Any press criticism can be damaging, but it is in the interest of a party, whether political or business to set the record straight. The government needs to get out there on and talk directly to the public. The Conservatives will not win a majority if they fail to make inroads into the north and Cameron and Osborne’s real political legacy will only be judged if they can establish something beyond this Parliament. A reshuffle may help in the short term, but if they are going to win, then they need to be bolder.

Manchester United: A hole in the middle

If Manchester United goes on to win this year’s Premier League title and beat their local rivals, Manchester City, then fans and players will undoubtedly unite in what has become one of the closest title finishes in recent years. Not only will United fans be happy vanquishing their wealthy and ‘noisy’ neighbours but it will make United the only English side to have won twenty league championships, two clear of their fiercest rivals Liverpool.

Yet amidst the potential celebrations, which by no means are likely, there appears to be a degree of gloom and uncertainty about the future. Anyone looking at the league table may be nonplussed by such assertions. So far this season after 36 league games, United have won 26, scored 86 goals and amassed 83 points. In last year’s championship winning side the team won 23 games, scoring 78 goals and topping the table with 80 points. This is a side that has played the majority of the season without some of their key players; Captain Nemanja Vidic ruptured his cruciate ligament in December, whilst midfielder Darren Fletcher has been fighting to save his career following a chronic bowel condition. The team also had the difficulty in replacing the Dutch goalkeeper Edwin van der Sar, who retired after six seasons with the club.

Yet, after the immense disappointment of losing to Barcelona in last season’s Champions League final, the result and manner of the victory against Man City in August’s Community Shield brought a deal of hope and excitement. Besides new goalkeeper David de Gea’s mistake against Edin Dzeko, United’s passing and desire was impressive. A midfield with a large Paul Scholes shaped gap was fluent and confident. New, young and dynamic players were making United quicker, on and off the ball. After coming back from two goals down at halftime to win 3-2, it showed a more determined and technical United.

The start of the Premier League season saw no relent either. Less than a year after he announced that he wanted to leave the club, Wayne Rooney was scoring freely and the team was trouncing sides with ease. Arsenal, Bolton and Tottenham all took healthy beatings. The loss of midfielder Tom Cleverley to injury was a blow, but the return of long term absentee Antonio Valencia reminded the fans of the depth in the squad. Even the league’s joint top scorer from last season, Dimitar Bebatov, struggled to get a game. By October, United and City’s free scoring dominance saw them canter away from all other potential title rivals.

United's record in the Premier League.

The embarrassing 6-1 defeat at home to rivals City was a black day. No doubt the score was flattering; people forget that Jonny Evans had been sent off early in the second half when City had a 2-0 advantage, but it was no excuse. It highlighted obvious weaknesses in midfield compared to City’s talent. Fletcher was not in good health and Anderson had a particularly poor game, but it opened the questions of why Sir Alex had not brought in a classy central midfielder in the summer. Besides Carrick’s excellent and unsung performances this season, the fact is that no quality central midfielder has been brought in since Roy Keane left the club in 2005. The return of Paul Scholes in January asked more questions than it solved of the previous ones.

The performances in Europe were just as shocking. Last year, United were strong defensively and didn’t lose a game home or away. The Romanian side Otelul Galati were utterly  hopeless, but the slip ups against Benfica and Basle were impermissible. Confusing performances and needless mistakes became far too common, particularly at home. In the Europa League, they only just beat Ajax over two ties, whereas Athletic Bilbao gave them a footballing lesson. What I found most remarkable about the Bilbao game was not the match, but the reaction by Bilbao fans to the substitutions of Scholes and Giggs. The San Mames erupted into applause when the two left the field. It not only highlighted the fans recognition and appreciation, but it enhanced the idea that United needed severe investment. Fans only had to look at Bilbao’s central midfield three to recognise the difference.

A good beating in the Basque country.

Defeats, at different points, to Blackburn at home in the league, Crystal Palace in the League Cup and Liverpool in the FA Cup confirmed that United lacked a battling and technical quality in the middle of the pitch. Paul Scholes’s performances have been immense, but he is just a sticking plaster. It became more apparent in the second half of the season when De Gea, Evans and Ferdinand formed a solid defensive partnership and Rooney, Valencia and Welbeck continued to create and score goals upfront. United can score and stop goals, but it doesn’t necessary mean they can control games, particularly when other teams get their tactics right. I think particularly of the occasion when Newcastle beat them 3-0 at the Sports Direct Arena.

The trouble as Roy Keane notoriously, and rightly, made when he left the club was that at great clubs such as United, there should be no such thing as a ‘transitional’ period. Yes, players leave and retire, but young players should be part of the competition, not on work experience. If you can’t learn and adapt, then you’re simply not good enough.

Sir Alex has complained in recent years about the value for money in the market. He decided that Karim Benzema simply wasn’t worth £35 million and Wesley Sneijder’s wage demands were too high. Yet at the same time, the highly regarded Ravel Morrison was allowed to leave (though this may be down to his attitude) and the academy’s biggest prospect future, Paul Pogba, remains unclear. Certainly, scouting has become much better and there is new wealth in the game e.g. PSG, City and Malaga but whilst United have continued to improve through development and recruitment, it makes it more bizarre why the money hasn’t gone into the centre of midfield. United are constantly linked with the likes of Edin Hazard, Christian Eriksen, Javi Martinez and Luka Modric but what is the likelihood of any these players moving to Old Trafford. There are financial constraints on the club through the Glazers’s debt, which is unforgivable, but also the fact that Fergie is unwilling to spend top dollar for the so-called finish article or certainly what the selling club believes them to be worth. This is by no means a criticism of Sir Alex, as he has been the single biggest force behind the club this season but it may come to haunt United if the title does end up at the Etihad.

United may not win any trophies this season and some critics may say deservedly so. Yet be assured that if they do take their thirteenth title, it will all be down to Fergie. Out of the players, Rooney has scored the goals, but he has not been as consistent as Carrick, Scholes and Valencia. Jonny Evans deserves recognition for an outstanding season. One can only hope as a United fan that if it does become lucky 13 then we will see some new arrivals in the centre in the summer.

Midterm blues: Can Cameron step up?

All governments suffer from mid-term blues, but for the current administration, it appears to be getting worse and worse. Since Chancellor George Osborne’s spring budget, the Conservative party’s poll ratings have fallen to their lowest in eight years.

Beyond the double-dip recession, the government has encountered negative press coverage regarding granny taxes, pasty taxes, charity taxes, caravan taxes and IMF loans. Furthermore, serious questions have been raised over the Home Secretary Teresa May’s inability to deport the hate preacher Abu Qatada and the Culture Secretary Jeremy Hunt’s dealings with News International over the BSkyB takeover. It was finally capped off after one Tory backbencher labelled both the Chancellor and Prime Minister David Cameron as ‘two arrogant posh boys who don’t know the price of milk’.

Osborne was recently asked when he last ate a pasty

By all precedents, the government of the day should not be too concerned about ratings half way through a Parliament. In 1981, Margaret Thatcher suffered terrible poll ratings, only 18 months into her tenure. Likewise, Tony Blair and New Labour faced an internal meltdown after the 2000 autumn fuel protests. Both went onto to win comfortably in the ensuing general elections.

As ridiculous as it sounds, the government of the day must also be prepared to take a battering in local and other elections. In 2008, during a recession and the unfolding days of Gordon Brown, New Labour lost the mayoralty election in London, nine councils and 334 councillors. When voters go to the ballot box this week, Labour will expect a host of victories across the country, whereas the Tories and Liberal Democrats should expect a decline in the polls. It is an ongoing exercise of electoral swings and roundabouts.

Strategically, the government’s main concern will be focussed on the next general election, probably in 2015. It is a time when voters truly voice their views on the current administration and whether they deserve another term in office. For the Tories, at this midterm point, the possibility of a majority government looks rather bleak. Despite a raft of radical policies including education and welfare reform, the payback is by no means guaranteed. Not only are they shackled to the electorally unpopular Lib Dems and face a slumping economy, but fundamentally, the Tories are still failing to shake off their image as a party of the rich.

Despite the government’s mission to reduce the size of the state and tackle the burden of a welfare culture, the Labour party constantly harangues the government’s ‘all in this together’ message and the current Cabinet’s composition of millionaires. Introducing reform to the NHS is portrayed as privatisation. Reducing the higher rate of tax from 50p to 45p, though economically sensible, is viewed as a tax break for millionaires, not so wise at a time of wage freezes, high unemployment and high inflation. It should be noted that Labour, still burdened as economically incompetent by the electorate, has yet to announce any of their own policies.

These problems link to the government’s ineffective communication strategy. Not only is the message weak, but it lacks the hard hitters to consistently reaffirm it. Mrs Thatcher’s attack dog was Norman Tebbit, whilst New Labour wasn’t afraid to throw John Prescott or John Reid to fend off the media. Despite the obvious constraints of dealing with a coalition government, even Conservative-only issues such as the current involving Jeremy Hunt lack any high-fliers to defend him. Apparently BBC Newsnight could only find backbencher Jacob Rees-Mogg willing to appear on air. In a world of Twitter and 24-hour news, where opponents have a platform to criticise you immediately, it is important to have lieutenants in place to control the message.

Health Secretary's heckling.

It is twenty years since John Major was elected as Prime Minister in the 1992 election. Amazingly, Major polled over 14 million votes; the highest by any British party leader, even Blair and Thatcher. Perhaps it is more extraordinary when one contends the discontent regarding the poll tax and the effects of the ‘Lawson boom’. Certainly, no leader could expect such a result with the growth in regional parties such as Plaid Cymru and the SNP, but how ascertainable is winning a majority?

A recent poll by the Conservative Home website states that only 23% of party members believe that David Cameron can win a majority in the next election. Cameron is an extremely talented politician and continuously has better poll ratings than his party, not to mention other party leaders. Since his leadership victory in 2005, he has helped the Tories rebrand themselves as greener and more caring. However, no inquiry has taken place as yet to see why the Conservatives did not win an outright majority in the 2010 election. Why was it that a tired and economically-imprudent Labour party managed to hang on to as many seats as they did? According to some sources it is something you dare not speak about when in Number 10.

As the story in today’s Sunday Times suggests, ethnic minority voters are still wary to vote Tory. In fact, only 16% voted Conservative in the last election. This should be concerning because beyond the fact that this population is set to make of a fifth of the electorate by 2050, many of the party’s traditional pro-business and pro-family policies should attract these voters, not deter them. It highlights not what the party represents but what it says and looks like. There are few Tory MPs from ethnic minority backgrounds and we certainly don’t hear from them. It is the same in regards to the north. Maybe besides Eric Pickles, we rarely hear any northern accents. The party’s policy agenda has been impressive, yet it tends to be the same old faces that we hear from.

More talented politicians from different backgrounds like Paul Uppal MP

Maybe it is possible to over analyse these things, particularly halfway through an election cycle and when things look slightly unfavourable. As Norman Tebbit says, “if suspected terrorists were being kicked out, taxes and unemployment were going down and pay going up, it wouldn’t matter if it was being reported that the Prime Minister liked to lay in the baths full of champagne drinking Chateau Laffite, after a hard day’s hunting on one of Rebekah Brooks’s horses, the public wouldn’t give a damn.” Probably true as well.

If Cameron fails to win the next election, no matter how popular and reforming he may be, he will always be held in a lower regard. Certainly lower than Thatcher, most likely Major and perpetually compared to Heath.  It will not be Osborne stepping up, but one Boris Johnson.

UK Economy: Where to next?

What a fine mess we have got ourselves into. Today, Britain became the latest country to return to recession after figures revealed that the British economy shrunk by 0.2% between January and March this year. After months of commentary asking whether Britain would face a double-dip recession, the Chancellor George Osborne will now face a brutal bombardment to whether his plans are working.

The belief in the Treasury was that growth would not be easy to come by, the independent Office for Budget Responsibility (OBR) forecast growth at 0.8 per cent in 2012 and 2.1 per cent in 2013. The original figures were far more hopeful.

The admission that the target to wipe out the budget deficit within this Parliament would not be fulfilled only made the Chancellor and his Treasury team more resolute. Whilst America has seen a healthy return to growth, Britain has been undermined by the uncertainty caused by the debt crisis within the Euro zone. The bite of austerity would continue for at least another two years into the next Parliament.

Ironically, as these harsher conditions have ensued, the government debt is actually increasing. The loss in tax revenues has meant the Coalition will increase national debt to around £1.4 trillion by the end of this Parliament. So whilst the budget deficit may eventually be eradicated, there will still be a long term national debt burden for future generations to deal with. Economists are still uncertain of the long term effects of low interest rates combined with tranches of quantitative easing.

So was the Labour shadow chancellor Ed Balls correct? Was the coalition government cutting ‘too far and too fast’? It appears now that the coalition’s strategy is running at the same timescale as former Labour chancellor Alastair Darling expected it to before the last general election. According to Mr Balls the coalition has made the cuts but created no growth.

However, despite the poor headlines for the Chancellor in recent weeks, it is unlikely to shake him and his Liberal Democrat partners. Mr Balls has been vociferous, yet despite his so-called ‘five point plan’ he is yet to suggest anything of substance. The double-dip may actually force pressure on the Labour treasury team to announce some of their ideas, a stage which may get them caught out.

The previous set of employment figures showed that for the first times there were more jobs created in the private sector than lost in the public sector, a trend that Mr Osborne can only hope to continue. Today’s figures if anything are more likely to make the Chancellor ignore calls from the opposite benches and look towards greater market reforms from the right. As chief strategist of the Conservative party, be certain it will not be something he is willing to get wrong.

2012: Arab Spring or Fall Back?

During 2011, the Arab political world was transformed as hard-line dictatorships were removed by a movement fronted by a new generation of well-educated, communicative and assertive citizens. Tired of inherent corruption, police brutality and economic mismanagement, thousands of demonstrators took to the streets with a will for change and democracy. In a matter of weeks, decades-old autocracies fell in both Egypt and Tunisia. Whilst across the border, a popular armed rebel movement, backed by NATO, dethroned a former Arab revolutionist turned tyrant, Colonel Muammar Gadaffi.

Yet a year after the start of these successful rebellions there is an increasing amount of uncertainty across the region, and worryingly beyond. New fault lines are developing within these new democracies and the avenues of new media are being stifled by the traditional realms of international diplomacy. In Bahrain, little support has been given to the oppressed Shia majority, whilst in Yemen, the West was reluctant to see President Ali Abdullah Saleh replaced. All the while in Syria, the death toll continues to rise as the international community struggles to deal with the brutal excesses of the Assad regime.

Assad: Belligerent

When the Berlin Wall came down in 1989, a youthful generation looked forward to a new set of ideals at home and abroad. Yet that generation, now part of the political elite, find themselves coupled with an economic crisis and an ever-mutating world.  The tide of the past two decades has made them increasingly fraught and reluctant to react. They have come to learn, with great expense and millions of deaths, that the succession of democracy and elections does not necessarily lead to economic growth or security. A decade of war in Afghanistan has caused no ends of trouble and still no long-term solution lies in place. Iraq, Pakistan and Syria are all issues that could easily explode beyond borders. Sclerotic institutions such as the UN hold legitimacy, but lack authority. Whereas regional bodies like the African Union (AU) and the Arab League remain divided by stasis and affliction.

The Arab Spring appeared different because the uprisings were led by an internal opposition. International voices highlighted their commitment to human rights, political reform and democracy, but nothing beyond. The memories of Algeria and Iraq meant that the West was reluctant to commit to anything other than rhetoric. Yet here were revolutions that were relatively bloodless and demanded change with so called ‘Western values’. The Libyan revolution required NATO help and incurred losses, but with an ultimate desire for freedom.

However, the flourishing hope appears to be diluting. Syria is fast turning into a cauldron. The UN ceasefire appears to exist purely as a memorandum. Russia and China indignantly reject any action towards President Assad, whereas other Western powers remain divided on whether to arm his opponents. Meanwhile; Saudi Arabia, Turkey and Qatar are concerned at the subversive role played by Iran and Hezbollah. In the past year alone, over 9,000 people have died due to the violence, if this turns into a regional war then who knows how big the death toll will become.

In Africa, unrest is dispersing across several countries. Guinea-Bissau suffered a coup d’état, Nigeria is dealing with a violent insurgency in the north. Tuareg mercenaries, armed by Colonel Gadaffi, have captured the northern half of Mali, including the town of Timbuktu, and have declared independence from Bamako. Whilst in the east, the bloodless secession of South Sudan from Sudan is fast turning ugly. Sudanese President Omar Al-Bashir recently called his former countrymen ‘the enemy’. Already factional fighting and bombing has occurred across this fragmented, yet, oil-rich region. The 2005 Comprehensive Peace Agreement (CPA) ended over 50 years of civil war, a legacy that left over two million dead. Former South Africa President Thabo Mbeki has been unable to get the leaders of Khartoum and Juba to sit down for talks. As Mbeki says, both countries are trapped in the ‘logic of war’.

A year after independence are the Sudanese heading for war again?

As combat operations in Afghanistan wind down and the bite of defence cuts hits NATO nations, the prospect of future interventions remains doubtful. Unless organisations like the UN are willing to reform then who is to stop anything? The lessons after the Cold War have made industrial nations wary of change. If these countries lack the foundations and institutions of a democracy, then who’s not to say that it won’t fall apart in years to come?

2011 was a year that brought change for the Arab world, bringing hope and prospects for a new generation. We will see whether 2012 will continue to bring those fortunes or just the hangover from hell.