Algeria: Business changes on the way

Amendments to the 2009 Finance Act, designed to make investment for foreigners easier, are now anticipated. Meanwhile, however, and we believe that it was as a result of this pressure from France and local Algerian businesses, Prime Minister Ouyahia presided over three-party talks on 28th May: the government, business associations and employees in the form of the government's compliant General Union of Algerian Workers (UGTA).

The participants – i.e. the government – have agreed to introduce a whole range of changes designed to ease the stifling hand of government and administrative incompetence and its mountain of red tape.

The most important change will be the abolition of the Credoc system which requires all importers to pay the amount of their order to an official bank account, from where it was transferred to the seller upon receipt of the goods in Algeria. At best this usually involves a waiting time of some three months, usually many more, thus making it almost impossible for many local businesses to import. According to a statement issued after the meeting, this measure "is intended to help manufacturing companies obtain supplies more easily".

If manufacturers need to import goods urgently, they "will be able to resort to free payment of up to 4 million dinars (40,000 Euros) rather than 2 million dinars (20,000 Euros), as was previously the case." A range of changes are also to be made relating to debt arrangements, especially restructuring arrangements, between banks and SMEs designed to make life much easier for the latter.

or more news and expert analysis about Algeria, please see Algeria Focus and Algeria Politics & Security.

© 2011 Menas Associates

Brazil: Fissures in the ruling coalition

A watershed vote on the Forest Code on 25th May in the Chamber of Deputies revealed both the internal divisions of Workers' Party (PT) and the unity of Brazilian Democratic Movement (PMDB). The result frightened the Workers' Party, which now has grounds to fear a possible alliance of PMDB with PR and PP.

Together, they amount to 179 votes, more than enough to deter any PT aspirations to succeed Marco Maia (PT-RS) as president of the Cham­ber of Deputies. PMDB covets the job and will almost certainly get it. This election will take place in 2013, and will be strategic with a view to the presidential ballot in 2014.

PT has been counting on a coalition with PDT, PCdoB and PSB, but these parties have given indications of pursuing their own goals. It remains to be seen whether President Dilma Rousseff, with or without Lula's help, will be able to bring her contentious allies into line.

For more news and expert analysis about Brazil, please see Brazil Focus.

© 2011 Menas Associates

Iraq: Security post possibilities

Although the ministerial security posts have yet to be decided on, the rumour mill continues to churn out the names of the latest nominees. Among the main names in the running this month is that of Sadoun Delaimy, touted as the next defence minister. Delaimy is an Iraqiya nominee from Al-Anbar. He has a PhD in social psychology from the UK. He left Iraq in 1986 and was later sentenced to death in absentia for planning to overthrow the Saddam Hussein regime.

He returned to Iraq after the fall of the Ba'athists and was defence minister from 2005–06. He was appointed culture minister in the current government, but Iraqiya is reportedly pushing for him to be given the Defence Ministry once again.

The current favoured candidate for interior minister is Tawfiq Al-Yasseri, who is the National Alliance nominee. Born in 1945, he graduated from military college in 1967. He took part in the Shi'a uprising against the Ba'athist regime in 1991, after which he escaped to Saudi Arabia.

From there he moved to the UK. As for the state minister for national security affairs, the current favourite is Riyath Ghareeb, who is from Kerbala. Born in 1954, he has a masters degree in engineering management from Baghdad University. He left Iraq in 1981. After returning to the country he became an MP in 2005. He is now a State of Law Alliance MP.

For more news and expert analysis about Iraq, please see Iraq Focus.

© 2011 Menas Associates

Militants attack a number of Niger Delta States

As the inauguration celebrations were winding down in both Abuja and Nigeria's other 26 States, there were bombings in some parts of the country. The most serious occurred at the Mammy Market of the Shadawanka 33 Army Brigade Barracks in Bauchi State where three explosions killed 14 people and injured more than 40. According to eyewitness reports, they happened when the brigade's officers, as well as civilians, were relaxing.

Chief of Army Staff, Lt Gen Azubuike Ihejirika, who visited the scene, said security has been increased and there were ongoing investigations to flush out the culprits. According to most reports, the bombings are believed to be the work of Boko Haram, an Islamic fundamentalist group that has been waging a terror campaign against government institutions and supporters in the northern States, including Bauchi, Bornu and Kano where the sect has its followers.

Minutes before the Bauchi State incident, there was an explosion in the Zuba International Market in the outskirts of Abuja, killing one person and injuring about 10 others including a toddler.

Suspected Boko Haram insurgents also attacked a police station at Bulkachuwa in Bauchi State on Tuesday 31st May. They were said to have opened fire with automatic weapons at around 20.00 before lobbing an explosive device into the police station, killing a policeman. This is the second suspected Boko Haram attack in Bauchi State since the elections.

Twin bomb explosions were also reported in the Ungwar Juma and PZ areas of the Kaduna State capital of Zaria at about 22.00 hours on Monday 30th May. Fortunately, nobody was killed although there were some casualties.

Boko Haram assassins have also reportedly shot dead Abba Anas - the younger brother of a Bornu State traditional ruler, the Shehu of Borno, Abba Kyari Umar Garbai – on the evening of Monday 30th May. The Shehu's family has previously been the target of Boko Haram attacks.

The assassination followed a 27th May attack by Boko Haram on the Damboa Divisional Police Station in the Bornu State capital of Maiduguri. The State's Commissioner of Police, Mohammed Abubakar, confirmed that about “Seventy suspected Boko Haram militants” were involved in the raid.

On 30th May, the Borno State police had warned the public that it had received intelligence on impending attacks “on the good people of Borno State” by followers of Boko Haram.

For more news and expert analysis about Nigeria, please see Nigeria Focus and Nigeria Politics & Security.

© 2011 Menas Associates

Chinese and Vietnamese ships clash in South China Sea

confrontation between a Vietnamese oil and gas survey ship and a Chinese patrol boat on 26th May has brought the issue of sovereignty of the South China Sea back to the forefront of leaders' minds, just before the start of a regional security conference.

Vietnam accuses the Chinese boat of deliberately cutting the survey ship's cables in Vietnamese waters. China denies the allegation.

The clash occurred some 120 km off the south-central coast of Vietnam and 600km south of China's Hainan island.

PetroVietnam, who operates the ship, called the Binh Minh 02, released footage of the event. A boat clearly marked China Marine Surveillance is seen approaching the Binh Minh 02. The ship's captain, Alexander Belov, is heard yelling at the Chinese ship and telling them to stay away from the cable.

The South China Sea, where the clash occurred, is claimed by a number of States, including China and Vietnam. The region is an important shipping route and is thought to contain large oil and gas reserves.

Both country's have reasserted their position after the clash. Vietnamese foreign ministry spokeswoman Nguyen Phuong Nga said “The Vietnamese navy will do everything necessary to firmly protect peace and the independence, sovereignty and territorial integrity of Vietnam.”

China's foreign ministry hit back, saying Vietnamese oil and gas operations “undermined China's interests and jurisdictional rights.”

The row comes just days before a regional security conference in Singapore, which aims to promote cooperation and stability in the Asia Pacific region.

Sources: BBC News, IISS, Sydney Morning Herald, Vietnam News Agency, Xinhua

For more news and expert analysis about Vietnam, please see Vietnam Focus.

Deadly clashes in Sana'a continue

There seems to be no end in sight for the deadly clashes between forces loyal to President Ali Abdullah Saleh and tribal fighters. Last night, the fighting intensified in Sana'a as tribal fighters reportedly tried to force their way through government lines north of the city.

It is estimated that at least 135 people have been killed in the last 10 days during heavy armed battles between the two sides. Yesterday, the fighting got worse as security forces fired live bullets at people protesting against Saleh's three decade rule.

Fighting near the capital's airport briefly grounded flights. State television showed the Yemeni Airways building on fire and heavily damaged government offices, which had been taken back by the forces.

The country is split between Saleh's loyalist in the south and tribesmen and renegade military units in the north. There a fears that the situation is getting out of control and could potential lead to a civil war.

The protests against Saleh's rule intensified after the president reneged on a deal brokered by the Gulf Arab states to secure a peaceful end to his time in office. Late on Thursday 2nd May, the Gulf Cooperation Council (GCC), whose power transition plan Saleh refused to sign three times, said it would continue its efforts towards a "peaceful solution".

Sources: BBC News, Sky News, Bloomberg

For more news and expert analysis about Yemen, please see Yemen Focus.

Brazil launches welfare scheme to eradicate poverty

The Brazilian government has launched a welfare scheme to eradicate poverty by 2014. The initiative aims to utilise the current programme in place, credited with helping 20 million Brazilians climb-out of poverty over the past decade.

The country's President Dilama Rousseff said the scheme was her government's key priority. Brazil's rapid economic development has increased the country's living standards, but aroung 16 million people still live in severe poverty on less than 70 reais a month.

Speaking to the BBC, Brazil's Social Development Minister Tereza Campello, said: “A country that has grown like Brazil can't be content with just having a big social programme like the Family Grant.”

The Family Grant programme pays up to 242 reais a month, to mothers, depending on their income and number of children, to ensure their children attend school and are vaccinated. The aim of the Brasil Sem Miseria (Brazil Without Poverty) scheme is to expand this programme as well as the country's health and education initiatives, and invest more money into the country's poorest regions.

Campello said the government was going to ensure that the poor have access to all the programmes. She added: "And for that we need to change the mindset that it is up to a poor person to come to the state, and ensure that the state reaches out to the poor person…"We want to eradicate extreme poverty by 2014 and make Brazil the first developing country to achieve the first of the UN's Millennium Development Goals.”

Sources: BBC News, AFP, Reuters

For more news and expert analysis about Brazil, please see Brazil Focus.