The U.S. Treasury Department asserted earlier this month that informal financial transactions through networks known as hawala are helping Iran evade international sanctions. In an email interview, Roger Ballard, a consultant anthropologist and director of the University of Manchester’s Center for Applied South Asian Studies who has written extensively on hawala, explained the long history of these networks and how they currently operate. WPR: What purposes are the hawala networks in Iran used for, and what volume of transactions passes through them? Roger Ballard: For well more than a thousand years, traders operating throughout the Indian Ocean region have routinely […]

After a decade of gradual rapprochement anchored by booming bilateral energy ties and close coordination on combating Kurdish separatists, Iran and Turkey are struggling to maintain a veneer of mutual amity and cooperation. In recent months, Iran and Turkey have shown growing signs of estrangement. At the heart of their differences lie the Syrian crisis and Ankara’s gradual alignment with the West’s efforts to check Iran’s nuclear ambitions. The two neighbors continue to be bound, however, by a complex and deepening state of energy interdependence, which explains why both sides continue to exercise a measure of self-restraint in their engagements […]

In the most direct admission by a high-ranking Iranian government official that international sanctions are imposing a heavy burden on the economy, Iranian Minister of Industry Mehdi Ghazanfari called the latest round of sanctions “crippling” at a gathering of provincial governors on Jan. 10. His remarks were a clear break from his previous statements, in which he downplayed the impact of sanctions. Ghazanfari said the latest round of sanctions have been far more costly than previous ones, pointing in particular to three new sets of sanctions imposed in 2012: financial sanctions, especially those targeting Iran’s central bank; oil export restrictions; […]

On Dec. 5, the U.S. House Foreign Affairs Subcommittee on Europe and Eurasia heard testimony from American Enterprise Institute resident scholar Michael Rubin on Iran’s influence in the South Caucasus. While Rubin detailed Iran’s close ties to Armenia and contrasted them to Iran’s uneasy relationship with Azerbaijan, he closed his testimony with unexpected warnings of a potential Georgian alignment with Iran (pdf). “The victory of [Prime Minister] Bidzina Ivanishvili’s Georgian Dream party in October 2012 elections threatens to radically reorient the Republic of Georgia, which, under President Mikheil Saakashvili, has been reliably pro-Western,” cautioned Rubin, adding that Ivanishvili’s pledge to […]

World Citizen: Will Venezuela-Iran Links Survive Chávez?

Today, Jan. 10, was the day when Hugo Chávez was scheduled to be sworn in for the fourth time as Venezuela’s president. Instead, he is lying in a Cuban hospital, suffering serious complications from cancer surgery, and the country’s legislature, dominated by the president’s loyalists, has delayed the ceremony indefinitely. As Venezuelans grapple with the political uncertainty created by Chávez’s precarious health, the prospect of a post-Chávez era poses complex choices for a number of other countries, not least among them, the United States. During almost 14 years in office, Chávez made anti-Americanism the cornerstone of his foreign policy, working […]

During President Barack Obama’s first term, much was made of his administration’s “pivot” toward Asia. Given the increased strategic and economic significance of Asia to the United States, there are strong arguments for this rebalancing of focus. Nevertheless, the symbolism was lost on no one when, in late-November, Obama was forced to interrupt his trip to Asia to address the latest flare-up in violence between Israel and Hamas in the Gaza Strip. As Obama begins his second term, it is safe to assume that events in the Middle East will continue to occupy a considerable amount of bandwidth for the […]