The Israeli-Palestinian conflict continues to deteriorate, de facto annexation of Palestinian territory proceeds all the while the U.S. embrace of the agreement signals American endorsement of this negative status quo. Rather than advancing American interests by promoting peace in the region, the U.S. is helping cement conflict under the guise of forging reconciliation between three countries that never have been at war.
Yet things can get even worse. At a time when the U.S. should be reducing its military footprint in the region, the accord could bring America back into war in the Middle East by lowering the bar for Israeli military action against Iran. Any military confrontation between Israel and Iran will likely suck in the U.S. as well. As the Quincy Institute's Steven Simon wrote in his June brief on the subject, the risk of the accord playing this destabilizing role is particularly acute if talks to revive the Iran nuclear agreement collapse.
Moreover, the accord undermines prospects of finding true peace in the region between Israelis and Palestinians. Recognition of Israel was always a means to an end — not an end in and of itself. The accord flipped this on its head and offered recognition without any movement on the Israeli-Palestinian front, further reducing Israel's incentives to compromise with the Palestinians. Not surprisingly, all the countries who have signed onto the accord have either done this under duress or due to American — not Israeli — concessions on other matters.
Sudan was coerced into signing on lest it wouldn't get off the U.S. terror list. Morocco was offered a major shift on the U.S. position on West Sahara. The UAE was offered F35 fighter jets — advanced American weaponry the Emiratis want in order to bind Washington to the security of their authoritarian state. None of these trade-offs do anything to bring peace to the Middle East, nor do they, in the final analysis, advance U.S. national security.
Trita Parsi is the co-founder and Executive Vice president of the Quincy Institute for Responsible Statecraft.
Washington DC, USA - September 15, 2020: Benjamin Netanyahu, Donald Trump, Abdullatif bin Rashid Al Zayani, and Abdullah bin Zayed Al Nahyan attend the Abraham Accords ceremony in The White House. (noamgalai/shutterstock)
On Monday Israel’s parliamentary body known as the Knesset passedtwo laws banning the United Nations’ Palestinian refugee agency (UNRWA) from operating in Israel, and in regions under Israel’s control.
This comes months after Israel claimed that members of UNRWA were either in Hamas or had Hamas connections, even asserting that some participated in the Oct. 7 attacks of last year. An independent review found that claims of widespread Hamas infiltration had no basis, but that some members did hold sympathies for Hamas, even as the organization pushed heavily for neutrality. These claims led the United States and other donor countries to pause funding to the organization back in January of 2024. Some of those countries have since reinstated funding.
For its part, UNRWA is a vital aid service for Palestinian refugees in Gaza, the West Bank, Syria, Lebanon, and Jordan. The organization estimates that there are over 1.7 million Palestinian refugees across its areas of service. It provides social safety net assistance, maintaining Palestinian records, and seeking refugee empowerment. The organization says that 233 of its personnel have been killed in Gaza since the recent war with Hamas began.
American as well as UNRWA spokespeople have criticized the new Israeli laws.“The vote by the Israeli parliament against UNRWA this evening is unprecedented and sets a dangerous precedent,” said Philippe Lazzarini, UNRWA’s commissioner-general. “It opposes the UN Charter and violates the State of Israel’s obligations under international law."
Echoing his concern, U.S. State Department spokesman Matthew Miller told reporters that UNRWA “plays an irreplaceable role in Gaza… there’s nobody who can replace them right now in the middle of the crisis.” He urged Israel to pause the implementation of this legislation.
The United States is undertaking a major effort to reinforce the imperial model that it has used to dominate Asia and the Pacific since the end of World War II.
Focusing on its hub-and-spoke model, which it has used to keep itself positioned as the dominant hub of the Pacific, the United States is engaging in simultaneous efforts to facilitate cooperation among its spokes, particularly its allies and partners. U.S. officials are seeking greater multilateral coordination with the spokes, primarily by strengthening regional groupings such as the Quad and fortifying regional alliances such as its trilateral alliance with Japan and South Korea.
U.S. efforts are aimed at building out the hub-and-spoke model in a way that strengthens U.S. dominance of the Indo-Pacific and clears a pathway for the creation of an Asian NATO.
“Our hub-and-spoke model of security in the Indo-Pacific has become integrated so those individual spokes now cooperate and collaborate in a more systemic way,” State Department official Richard Verma explained in remarks to the Hudson Institute in September.
The Hub-and-Spoke Model
Since the end of World War II, the United States has dominated Asia and the Pacific with a hub-and-spoke model. Under the model, the United States has functioned as a dominant hub that has projected its power through several spokes.
According to U.S. officials, the spokes consist of U.S. treaty allies and partners. They include five U.S. treaty allies, which are Japan, Thailand, Australia, South Korea, and the Philippines. They also include leading U.S. partners, which the Biden administration identifies as Taiwan, India, Malaysia, Singapore, Vietnam, Indonesia, Mongolia, New Zealand, and the Pacific Islands.
Reinforcing the model are additional extensions of U.S. power, such as U.S. states, U.S. territories, U.S. military bases, and the compact states. A critical component of U.S. power is Hawaii, which is home to the headquarters of the Indo-Pacific Command. This military headquarters currently oversees 375,000 military and civilian personnel, who are spread out across the region.
The hub-and-spoke model is the basis for an “informal empire” in Asia, as former U.S. official Victor Cha described it in his 2016 book Powerplay. Although Cha identified growing challenges to the model, particularly from China and its efforts to build China-centered regional structures, he insisted that the model remained the basis for U.S. regional power. He called it a “thread” that holds the regional architecture together.
U.S. officials have long valued the hub-and-spoke model for securing U.S. dominance of the Pacific, but they have never viewed it as an equal to NATO. Whereas NATO provides the United States with the ability to coordinate actions across the North Atlantic region, the hub-and-spoke model impedes multilateral cooperation across the Pacific, as it is built around bilateral relationships with allies and partners that do not always share common interests.
“We would like to see a good deal more cooperation among our allies and security partners—more multilateral ties in addition to hubs and spokes,” Robert Gates said in 2009, when he was secretary of defense in the Obama administration.
With the goal of building more multilateral ties, U.S. officials have been working to bring the spokes into multilateral groupings that embrace multilateral cooperation. Comparing the hub-and-spoke model to the wheel of a bicycle, they have said that they are trying to build a tire around the spokes in a way that holds everything together under U.S. leadership.
“We need to network better our alliances,” Cha advised Congress in 2017. “We need to build a tire around that hub and spokes.”
The Biden Administration’s Efforts
The Biden administration has accelerated U.S. efforts to complete the tire. Not only has it been putting major emphasis on the importance of U.S. allies and partners, but it has been leading multiple efforts to facilitate cooperation among the spokes.
One of the administration’s key moves has been to fortify a trilateral alliance among Japan, South Korea, and the United States. With both Japan and South Korea hosting tens of thousands of U.S. soldiers, the move enables the United States to more effectively coordinate its military activities across Northeast Asia.
“Japan and the ROK are two of our strongest and closest allies in their own right, but when we work together trilaterally, we are even stronger,” State Department official Daniel Kritenbrink explained last year.
In another major move, the Biden administration has elevated the Quad, a regional grouping that includes Japan, India, Australia, and the United States. All four countries are significant for having “big hammers in the militaries,” Secretary of Defense Lloyd Austin noted earlier this year. The Quad also extends U.S. reach to India, stretching U.S. influence across a vast region that ranges “from Hollywood to Bollywood,” as Vice Admiral Andrew Tiongson recently described it.
The highest-level officials in the Biden administration have repeatedly acknowledged they are working to build out the hub-and-spoke model. In May, Austin gave a major address in which he boasted that the United States is making progress in facilitating regional cooperation among the spokes. He marveled at what he called a “new convergence” that is “producing a stronger, more resilient, and more capable network of partnerships.”
In August, Austin collaborated with Secretary of State Antony Blinken and National Security Advisor Jake Sullivan on an op-ed in the Washington Post in which they explained that they had “upgraded” the hub-and-spoke model to create a new regional system that featured “an integrated, interconnected network of partnerships.” They presented their approach as a major improvement over the previously existing model, which had relied on individual partnerships. “Much like the hub and the spokes of a wheel, those individual partnerships didn’t overlap,” they explained.
Laying the Foundation for an Asian NATO
As U.S. officials have worked to foster multilateral partnerships, some Asian leaders have taken things a step further, calling for the creation of an Asian NATO. Although the Biden administration has dismissed such proposals, knowing they could lead to pushback from China, Russia, and nonaligned countries, its actions indicate that it is laying the foundation for the creation of some kind of multilateral alliance system.
By developing several regional groups that overlap and interconnect, the Biden administration is putting the United States into a position to eventually merge regional groupings into a single organization comparable to NATO.
When Verma described U.S. efforts at the Hudson Institute in September, he boasted that the Biden administration is making significant progress in combining the spokes. The Quad “actually takes the individual spokes, ties four of them together,” Verma said. There are “a number of other examples where we are much more integrated.”
Indeed, the Biden administration is confident that it is making progress in building out the hub-and-spoke model. Even with its focus on strengthening regional groupings, the administration is developing a network of overlapping partnerships that could lead to multilateral coordination among all the spokes.
What the Biden administration is doing, in short, is pushing ahead with a longstanding effort to complete an imperial model that has long been at the heart of the American empire in the Pacific and may one day bring NATO-style domination to the entire area.
Top photo credit: Supporters of the Georgian Dream party celebrate at the party's headquarters after the announcement of exit poll results in parliamentary elections, in Tbilisi, Georgia October 26, 2024. REUTERS/Irakli Gedenidze
Indignant western armchair pundits and politicians have fallen into collective rage, signallng that the general election result in Georgia equated to the theft of a European choice.
The opposition to the apparent winner, the ruling Georgia Dream party, is now being joined by international voices, including the U.S., calling for an investigation into claims of election violations.
But Western politicians, journalists, and NGOs have cynically, and in a way, willfully ignored the wider economic picture, and have instead spun up the election as an existential struggle between Europe (European Union) and Russia. There is so much nuance here that needs to be examined and is not.
For one, study the vast amount of credible economic data and you’ll uncover the unpalatable truth that Georgia has been a net loser from closer EU economic ties thus far. And that the war in Ukraine, which the EU is helping to bankroll, has halted progress on key economic priorities in Georgia, including reducing unemployment.
Taking a step back, Georgia has become an economic dynamo since 2012 through its sovereign endeavors. This small, proud nation with a population of 3.1 million, ranks number 7 in the World Bank’s ease of doing business index, ahead of the UK and every EU country except Denmark.
Average economic growth has been a throaty 5.2%, 6.2% percent if you subtract the pandemic contraction in 2020. GDP per capita has increased by 79%. According to the World Bank, poverty reduced from 70.6% to 40.1% between 2010 and 2023, through sound macroeconomic management. There’s still more work to do to get it lower.
Georgia’s economic growth performance has largely been driven by domestic investment. As a percentage of GDP, investment has averaged a brisk 26.6% per year since 1996, compared to the EU (21.8%) and the UK (18.8%).
Yet signing the EU Deep and Comprehensive Free Trade Agreement (DCFTA) in 2014 didn’t unleash a tidal wave of new European investment into Georgia.
EU foreign direct investment in 2024 was only $65k higher than in 2014, at an average 29.6% of total FDI in Georgia over that period. Russia is a significant but not key investment player, accounting for just 5.4% of FDI in 2023.
If we look at trade, the signing of the DCFTA, in theory at least, should have driven a mutually beneficial surge in trade. But that simply hasn’t happened.
The European Commission website proudly announces that Europe is Georgia’s biggest trade partner. But EU trade with Georgia accounts for just 20.9% of the total. And that is only because Georgia has been flooded with European exports since 2016.
In fact, western European states have been eating Georgia’s lunch when it comes to trade. On average, Georgia’s eight largest western European trade partners (including the UK) now export four times as much to Georgia than they import. The biggest culprit is Germany which in 2022 exported 7.8 times more ($673 million) to Georgia than it received in imports ($86 million). European exports to Georgia had quadrupled to 3.6 billion Euros by 2023 and are still rising.
Yet, Georgian exports to the EU have stood still. Why?
Look on the EU website and you will find 58 separate trade defense investigations by Europe against Georgia since 2021, looking to restrict imports of everything from tires to tinplate and tableware. Europe actively places barriers against Georgian imports. Georgia has been accused of helping Russia evade export sanctions, but the evidence for that is weak.
Look East and you will see a different picture. Bulgaria exports as much to Georgia as the powerful western EU nations combined, yet is the only EU trading nation that imports more from Georgia than it exports.
Because trade is all about gravity. Sofia is much closer to Tbilisi than Strasbourg. Countries trade more with those countries closer to their borders because the cost of trade is lower.
Through a mix of gravity and history, 62.2% of Georgia’s exports go to its eight biggest Eurasian trade partners (former Soviet states, Turkey, China and India). And the trade balance is more even than it is with Europe, as Eurasian states export 1.8 times more to Georgia than they import. Russia exported 2.9 times more than Georgia in 2022 because of a surge in fuel exports. However, Georgian exports to Russia have also increased by 56% since 2017 and now make up 9.4% of the total.
The major economic shock Georgia has had to confront has been the war in Ukraine. A net 87,200 people from Russia, Ukraine and Belarus emigrated to Georgia between 2022 and 2023, two thirds of them Russian. Historically, Georgia had fairly even net migration, but the war-induced influx prompted unprecedented house price inflation of around 35% with rents up by as much as 50%.
High inflation during the first two years of the Ukraine war appears to have been tamed by the National Bank of Georgia which hiked interest rates to their highest level since the Global Financial Crisis.
An economic flip side, is that Georgia saw a much needed boost in its current account which recorded its only significant surplus since the Soviet period in the third quarter of 2022. This was driven by surging service exports, that is, foreign money spent by migrants in Georgia. Foreign Exchange reserves also rose to a post-Soviet high.
But the influx of Russians fleeing the draft undoubtedly increased resentment and social tension in part driven by historical enmity, including around the 2008 Georgian war. But it runs deeper. Georgia’s impressive reduction in unemployment has also flat-lined, having dropped from 20.6% in 2009 to 11.6% in 2020. Worryingly, 26.7% of Georgia’s young people are unemployed, and have seen young, digitally nomadic, middle class Russians crowding out opportunities in high-valued-added sectors.
The West has framed the election and its results in almost Manichean terms, a battle of light and dark, between Europe and Russia. They have positioned Georgia Dream’s founder Bidzina Ivanishvili, as a Kremlin stooge. Yes, Ivanishvili, like many oligarchs, gained his wealth during the chaos of Soviet collapse. His nationalism is rooted in a conservatism that has echoes of Putin’s Russia and Orban’s Hungary.
But his economic approach in Georgia has been driven by specifically Georgian considerations. And elections always, ultimately, get tipped by domestic issues.
By today’s election count, it would seem a majority of Georgian people chose prosperity over war. It’s time to let Georgia’s government get back to the task of strengthening their wonderful country still further.
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