Movement in Shia cities may prove a headache for Maliki


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Iraq

A crescendo of protests has shaken Nuri Al Maliki’s government in recent weeks. But the protests in question are not those of Iraq’s Sunni provinces that garnered so much attention in the first half of this year. Those protests continue, but they have become relatively marginalised.

These new ones started in the southern province of Dhi Qar in June, focused on the government’s perennial failure to provide basic electricity, leaving citizens to face another year of Iraq’s summer heat.

They started, not coincidentally, as it became clear that the Sunni protest movement, having reached its last peak in late April, was no threat to the Shia-led government. The protests were small at first, but some of the slogans coming from Dhi Qar were ominous – “Where is the electricity O State of Law Coalition” (a reference to Mr Al Maliki’s bloc) and “they’ve had ten years and their salaries are in the millions”. Over the summer, these protests spread into Basra and other southern areas, and increased from dozens to hundreds of people per march.

By August, the movement had developed an organised media strategy and narrowed in on a single issue – the repeal of the “pensions, salaries and privileges” of members of parliament and other senior government officials. The MPs’ pension issue was the single most important item – while currently an Iraqi civil servant with 30 years of service might have a pension of up to $420 (Dh1,540) per month, MPs are granted 80 per cent of their roughly $8,500 monthly salaries for life after just four years in office. Yet parliament often struggles to make quorum, and citizens view the body as achieving nothing.

With the federal government refusing to grant permission to march in Baghdad, ostensibly for security reasons, protest leaders centred on August 31 as a day of nationwide protests, with or without a permit. While Mr Al Maliki gave rhetorical support to protesters’ demands, he made it much harder on himself by reserving authority to authorise protests personally, and by efforts of his security services to limit protest venues and prevent media coverage of them.

Despite heavy-handed security, clashes led to no deaths, and Mr Al Maliki immediately committed to complying with the protests’ main demands. He then did so by passing a bill through the cabinet on September 3 amending the pensions law. In Dhi Qar, where several protesters were arrested, the provincial council even voted to remove police chief Shakir Kawin. Given the movement’s narrow goals, this seemed as clear a victory as they could have expected.

Whether the bill will satisfy protesters remains open to question, though. After the text became public, many activists criticised the bill. Iraqi legal specialists who gathered at a September 14 forum in Baghdad sponsored by the Al-Mada Institute described the bill variously as a “patchwork of clauses”, “full of mines” for pensioners and “dismissive of protester demands”.

Having reviewed the text of the bill, I can see why they describe it as confusing, though it at least appears to make a concession. It voids the current pension achievable after four years and replaces it with a standard 15-year requirement while awarding the highest pension level under a 2008 pension law.

A separate provision, though, prohibits individuals from voluntarily giving up pensions. This seems aimed to prevent grandstanding by political parties, as some of Mr Al Maliki’s Shia rivals did in declaring they were surrendering their pensions when protests started.

Whatever the downsides of the new law, Sunni protest leaders were not slow in noting the contrast, and on September 7 they headlined their Friday protests with the slogan, “your double standards show your sectarianism”.

Hussein Al Dulaymi, the representative of the Sunni Popular Movement in Ramadi, gave the Friday sermon that day. He asked why Sunnis were protesting all these months, only to be ignored, but when people in Shia provinces protest, their demands are immediately met.

While the new protests being heavily Shia is plainly a key reason for their success, the Sunnis’ now-marginalised protest movement has made mistakes of its own. To begin with, the leaders of the protests present themselves in an entirely different way. Some of the organisations in the Sunni protests were fronts for insurgent groups, and even the more moderate protest groups talk incessantly about Sunni identity and at times spill over into sectarian language.

Furthermore, while Sunni protests claimed to be non-political and spontaneous – and genuinely were for many participants – the key protest sites were run by political leaders. In Ramadi, the “Pride and Dignity” site was run from the beginning by two organisations controlled by Anbar Islamic Party leader Ahmad Al Alwani and Awakening leader Ahmad Abu Risha. The Shia protest leaders, by contrast, appear to be just civil society activists.

How much a more broad-based Shia protest movement could achieve is open to question, but it would be impossible for Mr Al Maliki to stand against one if such a wave were to appear. Indeed such a movement may be given life if criticisms of the cabinet’s pensions bill bear out. With the next parliamentary elections set for July 2014, Mr Maliki would do best to focus less on discouraging protests, and more on meeting protester demands, not to mention getting the electricity going before next summer arrives.

Kirk H Sowell is the principal of Uticensis Risk Services, a firm specialising in Arabic-language research, and is the editor-in-chief of Inside Iraqi Politics (www.insideiraqipolitics.com)

On Twitter @uticensisrisk

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(36 Chambers / Entertainment One)

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Pakistan 219 all out in 47.2 overs 

New Zealand win by 47 runs

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One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait,  Qatar and Oman – and second on the list in Bahrain.

In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.

The UK is expected to spend $421.4 billion on healthcare by 2040, up from $239.3 billion in 2014.

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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

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Japan

5

Norway

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Canada

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Singapore

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Australia

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Saudi Arabia

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South Korea

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Being overweight or obese increases the chances of developing the more common type 2 diabetes.

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1. Domestic VAT refund amendments: request your refund within five years

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2. E-invoicing in the UAE

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3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

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8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Stars: Robert Downey Jr, Michael Sheen

One-and-a-half out of five stars

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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory