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A Capital Outflow

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A record level of capital outflow that equals 1.47 trillion rubles has taken place to the bank accounts outside Russia, in a time period between June and August, according to the Central Bank of Russia. For a comparison, the capital outflow had been recorded as  57 billion rubles in the same time period of 2021 (third quarter), which is 26 times less. For another comparison: the budget revenues for the year 2022 were recorded as 25.02 trillion rubles. This means that roughly 6 percent of all budget revenues of the nation were scooped out of the country by the bourgeoisie, only in the third quarter of the last year. Only then we can add the 543.4 billion and 550.7 billion rubles that are also scooped away in the first and the second quarters, by the “patriotic” bourgeoisie (despite all “sanctions”), who have managed to take out more than 10 percent of the national budget revenues in the last three quarters.

And the outflow did not stop after the third quarter. The Central Bank of Russia has estimated in early December that the Russian citizens had roughly 4.19 trillion rubles (or 66.65 billion USD at that time) in foreign bank accounts, as of November 1st. Also, according to the data released by the Central Bank of Russia on February 13th, the total assets of Russian citizens in foreign bank accounts have summed up to a total of 94.3 billion USD (or about 7 trillion Rubles, that is almost 30 percent of the national budget revenue of 2022). This means that the deposits in foreign bank have more than tripled over the last year. This alone is an enormous capital outflow, and it is just the tip of the iceberg. These data only shows the outflow that the Central Bank has allowed. The account deposits of Russian citizens in foreign banks had reached 0.5 billion USD in January 2022, which have risen to 4.3 billion USD in February. Almost all these transactions have taken place between February 24th and 28th. The outflow has lost its momentum between March and May, since the Central Bank of Russia had imposed harsh restrictions on foreign exchange transactions. And as soon as the banks have relaxed some these restrictions, the outflow spiked again, reaching 48.9 billion USD in the second half of the year, or making up to the 77 percent of the total annual outflow. Even this can be considered as a very modest estimate, since it is not possible to get information from the countries where the outflow has occurred to after the sanctions.

Moreover, the total capital outflow is not only these 70-100 billion USD in foreign banks. The Central Bank had estimated last July, that the total capital outflow in 2022 would be 243 billion USD. This is a record in the last 10 years, with second happening in 2014 after the annexation of Crimea, being 152 billion USD. The total capital outflow between 2012 and 2021 is around 576.5 billion USD. Capital that equals half of that in the previous 10 years, was scooped away in just one year.

Of course, this amount includes that of the foreign companies which sold their assets in Russia or, stakes that Russian companies hold in foreign countries. So, the capital outflow is often not done by carrying huge stacks of cash across the border. But it is done by shifting enormous sums to offshore companies, and that is pretty much like carrying huge bags of cash.

So, this enormous capital outflow can take place in every means and there are not much obstacles to doing this. According to the Head of the Russian Central Bank Elvira Nabiullina, who has spoken around the end of the year, saying “This is not a matter of concern for us in the current situation. We do not consider it necessary to take any special measures in this connection. “, and adding that “As confidence in macroeconomic stability, price stability strengthens, these funds will return to the Russian banking system, to rubles.”

I get goosebumps as soon as I hear “macroeconomic stability”

Another important statement from the Central Bank was that “import substitutions have been reduced to the cost of standard of living”. So, almost 400 billion USD  in assets have been frozen in western banks, there has been a capital outflows close to 250 billion USD this year, but it is import substitutions were lowered to the cost of standard of living. And this statement was made right after the announcement by the US government that American companies would be 152 billion USD of subsidies in microchip production.

One of the most prominent economists in Russia Mikhail Khazin, posted an article on Telegram that “he had initially written for a media outlet, but he did not manage to get it published”, in which Glazyev immediately posted. He claimed that the Russian “fiscal bloc” (the Ministry of Finance and the Central Bank) were still represented by the liberal elite, who still wanted Russia to remain in the “necessary liberal” international community. He says, they must meet the basic requirements of the “Washington Consensus” to achieve this. Two of these requirements would be: “Prohibiting all Ruble investments and motivating further capital outflow”. And the second would be maintaining the liquidity of the global dollarization over the nation’s own interests”. Khazin explains the recent capital outflow that broke records in the first three quarters of 2022, with these theses.

And the relationship between economics and politics gets even more evident at this point, while Khazin considers this stance of the “fiscal bloc” as high treason.

Taxation Of The Grand Bourgeoisie

Putin’s speech at the Eastern Economic Forum in early September was of great programmatic importance. I have evaluated his speech under “9 crucial points” back then. And on the eighth point, I stated:

“The Kremlin keeps stressing that they have used and will continue to use ‘the market mechanisms and instruments’ to seize the ‘excess profit’ of the grand bourgeoisie. This could shows that the grand bourgeoisie has not succeeded in its lobbying efforts together with the ‘fiscal bloc”.

In his speech, Putin has described these market instruments as follows:

“These will be market instruments that are known by all: it can either be customs clearance or recovery of the excess profit in some other ways”.

The target of these words was neither the petty bourgeoisie that emerged after the crisis, nor the new middle bourgeoisie that has now started to flourish after the disqualification of the Navalniyite middle bourgeoisie after February 24th. They too, managed to accumulate an “excessive profit”, and are still accumulating, but the real target was the grand bourgeoisie, which were mainly active in the fields of telecommunications, mining industries and finances, and clearly reeked of a dangerous threat (even if Putin had given a guarantee of “private property” at the same time).

Despite Putin’s programmatic speech, the aforementioned issue has not come up for a long time. Finally, on February 15th, around four and a half months after the announcement of the program, the Deputy Finance Minister Alexey Sazanov has announced that “started working” on two resolutions on this agenda: A voluntary payment, or a kind of involuntary taxation.

Why did it take so long or why did this even come up in the end? The answer to the first question is: We would not expect the grand bourgeoisie to not resist the taxation of excess profit, imposed by the Kremlin. Moreover, the economic situation was relatively stable from the beginning of September and until December when sanctions on crude oil exports were imposed, so back then the first shock was absorbed, and the nation has turned from the brink of total collapse. This may be an exaggerated rhetoric, but definitely not a false one. The Deputy Prime Minister Andrei Belousov has clearly stated that “the economy is at risk of collapse” on December 27th when in describing the situation in March, and that he “thinks that the economy is about to go completely out of control”. Meanwhile Belousov has addressed the Ministry of Transport, Ministry of Industry and Trade and the Central Bank of Russia when crediting those who managed to reverse this doomsday scenario, but did not mention anything about the Ministry of Finance. Therefore, the resistance by the grand bourgeoisie must have gained more momentum in such atmosphere of a relative satisfaction.

And the answer to the second question is: The “fiscal bloc” had to stop further hindering this program, since the problem of financing the government budget, which is caused by a massive decline in the natural gas and oil revenues due to sanctions and the sabotage of Nord Stream 2 pipeline, keeps threatening to destroy the Russian economy.

The Finance Minister Siluanov spoke only two days after Sazanov and stated that he expects “industry giants” to make a “voluntary contribution” of 300 billion rubles to the government budget in return for their excessive profits in 2021 and 2022. Such funds would not cover the expected budget deficit since the budget deficit in 2023 is the expected to be around 2.9 trillion rubles (which is 2 percent of the GDP), and can reach 5 trillion rubles due to the large decrease in oil and gas revenues that occurred as a result of the sanctions. We can understand that the Ministry has alleviated the taxes on grand bourgeoisie to an enormous scale, and has reduced it to around 10 percent of the expected budget deficit even with the most optimistic estimations. But even this was not enough, so the minister tried to make it a “voluntary action”. Moreover, the ministry must have negotiated with some these “industry giants” and tried to get their consent, that is because according to Siluanov: “These industry giants are ready to share some of their profit, with the state”. And on top of that, Siluanov also announced the good news that oil and gas companies would not be charged an additional tax over their profits over these past years.

There seems to be a mismatch between the words of the minister and his deputy; While the deputy minister speaks of two resolutions, there is only one solution according to the minister. While his deputy also points out the hard way, the minister states that there is already an understanding with the grand bourgeoisie on this issue.

However the grand bourgeoisie does not seem convinced these days. Head of the Russian Union of Industrialists and Entrepreneurs Aleksandr Shokhin, has made it clear that voluntary action would not work out. But this was not as if “there could not be a thing called voluntary tax, we should force it properly”, but rather something like “there cannot be a tax on excess profits, since things like private property and the free market are untouchable, we should instead reduce taxes so that the free market can invest even freer and the concept of big government is nonsense anyways” etc.

An Involuntary Volunteerism

On the exact same day that Siluanov has made the voluntary tax announcement, the Kremlin press secretary Dmitry Peskov was asked about this issue at a press briefing. Peskov noted that talks are still ongoing, while similar practices are very common all over the world, and that the government is in a constant contact with representatives of large businesses on this issue, while adding: “The key word is voluntary, but, of course, the interaction between the country’s leadership and business, and the government and the business sector, is a two-way street. Therefore, of course, it is necessary that both sides, although we are all on the same side nonetheless, were clearly aware of the realities that we live in today and the needs the country has”.

That was regarded as a very diplomatic response, and although it did not imply a direct challenge to the grand bourgeoisie, which he had comforted with his message of cooperation, the warning or some may even say the threat, was clear enough. The Kremlin as it is the rational thought, has no doubt that the grand bourgeoisie will not show any voluntary willingness, therefore the formula of involuntary volunteerism must have seemed more practical. The force may bare more fruits, and with the threat of enforcing it, some giant industries may volunteer to contribute and receive a reward in the form of a state decoration, but the division of labor between those who can afford it and those who cannot is such that the Kremlin will not hesitate to introduce some new ways of encouraging volunteerism, in order to overcome the foolishness (that word can be used conditionally), of the “fiscal bloc”.

However, the “fiscal bloc” will not hesitate to look for ways to minimize the profit losses of the grand bourgeoisie. As a matter of fact, the first major move came on the exact same day, from the bloc’s one significant part, the Central Bank. Not only did the Central Bank back the Ministry’s volunteerism plan, it also proposed to cancel the debts of these companies to the government banks in return for the “voluntary contributions” of this class, that totals 300 billion Rubles (according to the report of Banksta, one of the closest affiliated outlets of the grand bourgeoisie).

This is a marvelous bribery! Let us first cancel all short, medium and long term loans, then you can “donate” us, and let us call this volunteering.

The central bank’s call for peace was quick to earn Deripaska’s approval. The owner of RUSAL wrote: “This would be a balanced decision, if not the ideal”.

The “conflicting alliance” continues, as the existence of this alliance does not stop the conflict. The Kremlin will continue its involuntary volunteerism imposition, but it can accept to cancel some of the long-term loans, while it could be a little bit difficult to cancel medium-term loans, and it will surely reject to cancel short-term loans. While it is certain that the problem cannot be solved with such negotiations, while the Kremlin will continue to go for the grand bourgeoisie to finance the government budget, the fiscal bloc will continue its efforts to fend it off, as oil and gas revenues fall rock bottom.

***

There have been two new developments confirming what I have claimed, after I have written them. So, it impossible to end this article without mentioning about them briefly.

First, Putin’s programmatic speech on February 22nd, included the announcement that they would not back down on taxation, despite the pressures from the bourgeoisie and the “fiscal bloc” (he openly admitted “things are tough”). Despite the insistence and the determination of the “fiscal bloc”, the cancellation of long-term loans was largely off the agenda after this speech.

The second is the statements made by Alexander Shokhin, the same day that of Putin’s speech. Shokhin said, they had reached an agreement with the government for a one-time “windfall tax”. The fact that this is defined as a tax, and not as a voluntary contribution, clearly shows the Kremlin’s dedication. And for Shohin, there is only one question that remains: That is how to estimate these “excess profits”.

OPINION

G20 Summit could use a few extra pairs of chopsticks

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Li Yunqi, Journalist
CGTN Radio

“If there’s an extra guest, you have to prepare an extra pair of chopsticks,” – an ancient Chinese wisdom for the upcoming G20 Summit in Rio de Janeiro.

The global economic order is undergoing an obvious shift toward Global South countries, as the International Monetary Fund (IMF) predicts that by 2030, developing economies will account for 60% of global GDP—up from already 50% in 2010. With emerging markets playing an increasingly prominent role at the global “economic table,” the question facing the G20 is clear: Where is the hospitality, and those extra pairs of chopsticks?

Formed in the 1970s, G7, the more “elite” club of G20, was designed to address the economic challenges of its time. At its peak, the G7 nations accounted for 60-70% of global GDP, with the U.S. alone contributing 25%. This dominance made the G7 a natural hub for global economic decision-making.

But as the global economy diversified, so too did the need for governance structures that reflected this reality. By the 1990s, the rapid growth of emerging economies such as China, India, and Brazil reduced the G7’s share of global GDP. Recognizing the limitations of G7 as an exclusive forum, the G20 was established in 1999, incorporating a broader range of voices from across Asia, Africa, and Latin America.

Yet, despite its broader membership, the governance structures of the G20 still tilt heavily toward historically dominant economies, leaving the perspectives of the Global South underrepresented.

In 2023, developing economies attracted about 65% of global foreign direct investment (FDI). Many of these nations boast young populations, in stark contrast to aging demographics in Western countries. For instance, Africa’s median age is 18.8, compared to over 40 in many Western European countries. By 2030, the Asian middle class alone is expected to exceed 3 billion people.

These economic transformations underline the need for more fair and inclusive governance systems. Just as a gracious host ensures there are enough chopsticks for every guest, the G20 must adapt to accommodate the realities of a multipolar economic world.

This is not merely a symbolic gesture. Global South nations have legitimate demands for reforms in international institutions like the United Nations Security Council, the IMF, and the World Bank, all of which remain skewed toward the interests of Western nations. The inclusion of perspectives from emerging economies isn’t just about fairness—it’s about crafting more effective and sustainable solutions to global challenges.

The rise of the BRICS is a case in point. Originally formed as a loose group of emerging economies, BRICS has evolved into a platform for addressing global imbalances, recently expanding to include nations like Argentina, Egypt, and Saudi Arabia. This expansion signals a broader desire among Global South countries for alternative frameworks to the traditional Western-led institutions.

The 2024 G20 Summit in Brazil offers a rare chance to recalibrate global governance. With a host nation that is itself a leader in the Global South, the summit is well-positioned to champion a more balanced approach to decision-making for global affairs.

This does not mean sidelining the priorities of developed nations; rather, it calls for recognizing that the inclusion of diverse perspectives leads to more innovative and equitable solutions. For Western countries, this shift will require letting go of long-held assumptions about leadership and embracing the legitimacy of different economic models and governance approaches.

The Global South’s rise is not about dismantling the established order but about evolving it to reflect the realities of today’s interconnected world. By preparing those extra pairs of chopsticks, the G20 can ensure a more inclusive future—one that respects the voices of all its members, regardless of their economic status.

Not having to share the table may seem convenient, but if we zoom out, we see that many in the world still struggle to secure even the basics, let alone a seat at the global table. Preparing a few extra pairs of chopsticks isn’t just a metaphor, but a call for a more balanced, diverse, and inclusive global order.

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OPINION

Türkiye’s “soft severance of diplomatic relations” with Israel has limited impact on the Middle East

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On November 13th, Turkish President Erdoğan announced that Türkiye has cut off trade and diplomatic relations with Israel. Anadolu Agency reported his statement during his return trip from visits to Saudi Arabia and Azerbaijan. Erdoğan declared, “We currently have no relations with that country,” emphasizing that Türkiye has responded in the strongest terms to “Israel’s atrocities” by taking concrete measures, including halting all trade exchanges. He also stated that the ruling “People’s Alliance” firmly supports this stance.

Observers believe that Erdoğan’s remarks, coming just after the conclusion of the Arab-Islamic Riyadh Summit, aim to enhance Türkiye’s discourse power, express additional sympathy for the suffering of the Palestinian people, maintain sustained anger towards Israel’s belligerence, and exert pressure on Trump, who is about to return to the White House and is highly pro-Israel. This move may also serve to soothe strong anti-Israel public opinion domestically. However, it is conceivable that this posture will not affect the development of the current war situation in the Middle East, let alone change the geopolitical landscape; on the contrary, it may bring pressure on Türkiye from the United States and the European Union.

Erdoğan’s statements further highlight Türkiye’s tough stance and sanctions against Israel over the past year, attempting to demonstrate Türkiye’s political responsibility, humanitarian concern, and religious obligations as a major country in the Middle East, especially an Islamic power. Objectively, this will make the six Arab countries that still maintain policy relations with Israel feel embarrassed and will also enhance Türkiye’s discourse power in Middle East disputes, particularly in promoting the de-escalation process of this round of conflict.

Türkiye is not only a major country in the Middle East and the Islamic world but also a NATO member and EU candidate country, as well as the initiator and leader of the Turkic States Alliance. From the outbreak of the “Arab Spring” in 2011 to the Russia-Ukraine war in 2022, Türkiye has been a very active geopolitical actor and has played an important role in shaping the regional landscape. However, in the grand chessboard of Israel’s “eight-front warfare” triggered by the current Israeli-Palestinian conflict, the space for Türkiye to maneuver is very limited.

Erdoğan’s publicized severance of relations with Israel seems to be a kind of “salami-slicing,” or even a painless “soft severance,” and therefore will not cause significant shockwaves. Tükiye had already recalled its ambassador to Israel in November last year and announced in May this year the suspension of all imports and exports with Israel to punish the latter for exacerbating the humanitarian tragedy of the Palestinian people. In August, Türkiye formally submitted an application to the International Court of Justice to join the lawsuit initiated by South Africa against Israel’s alleged “genocide,” becoming one of the few Third World countries to use international legal means to challenge Israel.

However, Türkiye has not announced the closure of its diplomatic missions in Israel, nor has it punished Israel as severely or even rudely as it did in May 2018. Six years ago, when Trump announced the relocation of the U.S. Embassy in Israel from Tel Aviv to Jerusalem, thereby recognizing the latter as Israel’s capital, the Erdoğan government not only immediately recalled its ambassadors to the United States and Israel but also expelled the Israeli ambassador to Türkiye on the spot. The ambassador was subjected to a full set of humiliating security checks at the airport, including body searches and shoe removal, causing bilateral relations to plunge to a historic low, only beginning to recover slowly two years ago.

Israel has not made any response to Türkiye’s latest declaration of “severing diplomatic relations” and may continue to maintain a low profile or restraint. Perhaps Israel has adapted to Türkiye’s nearly two-decade-long “angry diplomacy,” or perhaps it currently lacks the energy and willingness to provoke Ankara and thereby create new enemies for itself. It is already overwhelmed dealing with the Iran-led “Axis of Resistance” and the United Nations, not to mention the internal frictions and power struggles among its top officials.

Türkiye’s tough stance against Israel is actually facing very similar historical scenarios, making it seem powerless or even counterproductive when playing the Palestinian card. This is because the Arab world does not welcome the successor of the former Ottoman Empire changing the long-standing Western-oriented “Kemalism” to an “eastward and southward” approach. They especially strongly resist Türkiye’s deep involvement in Arab affairs, much like their strong aversion to Iran constructing a “Shia Crescent” in the Arab world. From this perspective, Middle Eastern countries, particularly the Arab world, exhibit an “Arab Monroe Doctrine,” opposing any external interference, even though they are incapable of fairly resolving the Palestinian issue.

Since the Justice and Development Party led by Erdoğan won the general election in 2002, based on the disappointment and dissatisfaction arising from repeated setbacks in pursuing EU membership, as well as a dual return to Neo-Ottomanism and Islamism, Türkiye has significantly elevated the strategic position of the East, especially the Middle East—its traditional sphere of influence—within its foreign policy framework. Ankara began by actively attempting to mediate the Iranian nuclear crisis, suddenly paying high-profile attention to the Palestinian issue, and in 2008, a public dispute erupted between then-Prime Minister Erdoğan and Israeli President Peres at the Davos World Economic Forum.

In May 2010, disregarding Israel’s warnings, Türkiye dispatched the humanitarian aid ship “Mavi Marmara,” attempting to forcibly cross Israel’s naval blockade to dock in the Gaza Strip. This led to Israeli special forces air-dropping onto the ship, resulting in a bloody conflict. Türkiye announced the severance of diplomatic relations with Israel, and it was not until Israel later apologized that bilateral relations were restored. However, due to the indifferent or even critical stance of Egypt, Saudi Arabia, Jordan, and even the PLO towards the Palestinian Islamic Resistance Movement (Hamas), which was fighting Israel alone, Türkiye’s proactive “foreign aid” actions did not receive enthusiastic responses.

After the outbreak of the “Arab Spring” in early 2011, the development model of the Arab world was widely questioned and even lost its future direction. The “Turkish model” received widespread international attention and was even considered a reference or option for Arab countries. Facing an Arab world mired in failure and chaos, the Erdoğan government was highly proactive, even being described as “attempting to act as the leader of the Islamic world.” Driven by such wishful thinking and strategic impulses, Türkiye not only supported Egypt’s “Square Revolution” in a high-profile manner, strongly backed the Muslim Brotherhood entangled in power struggles, sent troops to Syria and Libya, intervened in the Eastern Mediterranean oil and gas disputes, and openly supported Qatar in its rivalry with Saudi Arabia. Ultimately, Türkiye’s relations with Arab countries deteriorated from the idealized “zero problems diplomacy” to a nightmarish “all problems diplomacy.”

It can be said that the decade or so during which the “Arab Spring” evolved into the “Arab Winter” was a period when Türkiye’s realist offensive diplomacy and “eastward and southward” strategy suffered major defeats. Türkiye not only lost its traditional ally Israel and offended more than half of the Arab world, but its relationships with Russia and the United States also faced unprecedented challenges.

The Middle East today has once again plunged into war and turmoil, but the causes, nature, conflicts, and opponents are vastly different from those of the “Arab Spring” or the Arab-Israeli conflicts during the Cold War. Several non-state actors from Arab countries are involved in what some are calling the “Sixth Middle East War.” However, countries that have normalized relations with Israel—such as Egypt, Jordan, the United Arab Emirates, Bahrain, Sudan, Morocco, and even the Palestine Liberation Organization—have no intention of re-entering the historical stream of the Arab-Israeli conflict. On the contrary, Iran and its leadership of the “Shia Crescent” have become the main forces opposing Israel in this new Middle East war. Some non-state actors in Arab countries have formed a new “Axis of Resistance” in alliance with the Shia Crescent. This shift in geopolitical relationships makes the attitudes of Arab nations more nuanced. Yet, in balancing “interests and righteousness,” they still value the hard-won Arab-Israeli peace and the crucial Arab-American relations. Although Arab countries are deeply frustrated by Israel’s refusal to cease fire and feel powerless to change the situation, they are absolutely unwilling to accept Iran and Türkiye taking the lead in Arab affairs.

Therefore, Türkiye’s new round of Middle East diplomacy is bound to fall into an awkward position similar to that after the “Arab Spring.” It is unlikely to receive widespread and positive responses in the Arab world or have any substantive impact on the current “eight-front warfare.” Nonetheless, Ankara’s diplomatic efforts to support the rights of the Palestinian people are commendable, reasonable, and even resonate with mainstream international public opinion.

With the openly pro-Israel Trump team controlling the White House, the State Department, and the Pentagon, and the Republican Party—which has always been more favorable toward Israel—fully controlling the U.S. legislative, executive, and judicial branches, Washington’s Middle East policy will further tilt toward Israel. Even if the new U.S. government does not encourage Israel to escalate and expand the existing conflicts and wars, it will mobilize all resources and employ all means to exert maximum pressure on Israel’s opponents to force them to compromise. At that time, Türkiye’s relations with the United States will experience new friction and uncertainties due to its tough stance against Israel.

Not only will the new U.S. government’s Middle East policy fail to reward Türkiye’s hardline approach toward Israel, but major European powers—which generally support Israel’s security and hold unfavorable views toward Iran and its led “Axis of Resistance”—will also be dissatisfied with Türkiye’s intensified pressure on Israel. This could further affect the smooth development of Türkiye-Europe relations.

Therefore, although Türkiye’s stance toward Israel is tough, the pressure it can exert is nearly exhausted, and Israel has considerable capacity to withstand such pressure, especially from Türkiye’s “soft severance of relations.” Given that Arab countries do not welcome deep Turkish intervention and that the U.S. and Europe oppose Türkiye joining the anti-Israel camp, Türkiye’s role and space for maneuvering in the Middle East are very limited and unlikely to see significant breakthroughs.

Prof. Ma is the Dean of the Institute of Mediterranean Studies (ISMR) at Zhejiang International Studies University in Hangzhou. He specializes in international politics, particularly Islam and Middle Eastern affairs. He previously worked as a senior Xinhua correspondent in Kuwait, Palestine, and Iraq.

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OPINION

Palestinian messages to the Arab-Islamic Summit

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Our people have endured decades of oppression, during which their rights were virtually destroyed and forgotten. In the post-Oslo period, when the Palestinian leadership opted for negotiations, settlement expansion accelerated while the foundations of national independence eroded under partition, isolation and prolonged blockades. Today, the occupation seeks to complete the historic Nakba by exploiting the Palestinian uprising that began on 7 October in response to escalating Zionist extremism, attempts at Judaisation and efforts to marginalise and eradicate the Palestinian entity. This existential challenge, backed by a broad coalition with regional and international dimensions that do not serve the interests of our people, obliges us to unite our efforts around common principles. Despite these barbaric attacks, limited resources and the imbalance of power with the enemy, we stand in solidarity with the resistance and determination of the Palestinian people. If these efforts are coordinated, we can put counter-pressure on the occupation, deepen its political and legal isolation and worsen its economic crisis. This will be an opportunity to force the occupation and its allies to stop the aggression and strengthen the ongoing struggle of our people.

Today, the Palestinian people are facing one of the heaviest Zionist attacks on the Gaza Strip, which reaches the dimensions of genocide and ethnic cleansing. According to unofficial statistics, the number of Palestinian martyrs since the beginning of the war has exceeded 186,000, and the environmental and health destruction caused by the attacks has directly contributed to this number. This scenario could, God forbid, be repeated in the West Bank, with radical settlers attacking Palestinian towns and villages through the occupation army or with the official support of the occupation government.

Historically, the Palestinians have paid the heaviest price for the Western approach to the Eastern question. The consequences of this approach have been disastrous for us: It not only led to the seizure of our land by the Zionist movement, but also paved the way for the establishment of a settler state. In this war, the Arab and Islamic countries acted with great responsibility, rejecting the international categorisation of the resistance as terrorism and insisting on presenting it as a national liberation movement.

Arab and Islamic countries have played a strong role in supporting our cause in international forums, with a growing regional awareness of a common destiny and the need for common security against a common enemy. This solidarity is a very important step in supporting our cause through the work of the Ministerial Committee of the Arab-Islamic Summit convened in Riyadh, which is expected to be an international framework for shaping a solution to the Palestinian issue in accordance with the legitimate rights and aspirations of the Palestinian people.

Internationally, unlike in previous crises, we have seen clear international positions condemning the genocide and crimes against humanity committed against our people, reflected in firm positions at the United Nations. We appreciate these positions of the nations and peoples of the world and see the path to the establishment of a Palestinian state based on international legitimacy as the result of more than a century of Palestinian struggle and the revival of their rights, which have historical and political roots. Since 1922, the foundations of a Palestinian state have been laid, and despite British and Zionist conspiracies, Palestine retains its political primacy on the world map.

Today, more than 150 countries recognise the State of Palestine on the basis of international resolutions such as the General Assembly Settlement Plan (Resolution 181), the Algiers Declaration declaring the State of Palestine in 1988, and Security Council resolutions on the illegality of settlements outside the 1967 borders. The most recent resolution demands that Israel end its ‘illegal presence in the Occupied Palestinian Territory’ within 12 months of the General Assembly’s request to the International Court of Justice for an advisory opinion on the legal consequences of Israel’s policies and practices in Palestine. The resolution was adopted with overwhelming support – 24 votes in favour, 14 against and 43 abstentions – demonstrating the gains made by the Palestinian cause and highlighting the growing political isolation of the occupying state.

Despite the obstacles to sovereignty posed by the occupation, the Palestinian state remains a legal reality. We see current international efforts to revive these historic and entrenched rights, against the post-World War II trend of international powers favouring the establishment of a Zionist political entity at our expense.

These forward-looking initiatives, called the ‘International Alliance for the Realisation of the Two-State Solution’, include direct steps to organise the establishment of a Palestinian state, rather than merely negotiating its right to exist. This is an important step for regional security and international peace, a necessary way to stabilise the global system and prevent the spread of geopolitical conflicts, sometimes with a religious or cultural dimension.

Diplomatic and political efforts to achieve Palestinian statehood must be compatible with efforts to end the war, protect civilians, facilitate humanitarian aid and address the consequences of the aggression through compensation and reconstruction. At the same time, Palestinian efforts to meet the conditions for a sovereign state consistent with the principles of regional security and global peace should be intensified.

In the midst of these efforts, it is clear that the Palestinian forces will respond sincerely to these initiatives and are willing to overcome differences over governance, elections and the so-called ‘day after’ issues. Palestinian behaviour shows that these disputes are now a thing of the past and that focusing on the future enhances the ability to build and govern the Palestinian state on the basis of national spirit and solidarity.

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