Bahrain emir surprises critics with reforms

By Abbas Salman

MANAMA (Reuters): Bahrain's Emir Sheikh Hamad bin Isa al- Khalifa is acting with unexpected vigor by launching political reforms that have won him rare praise from the Gulf Arab state's restless Shi'ite Muslim community.

Politicians, diplomats and human rights groups agree that Sheikh Hamad, who took over in March 1999 on the death of his father who ruled for 38 years, has gone further and faster than many would have expected, surprising allies and critics alike.

He has pardoned around 900 detainees and exiles, abolished two controversial emergency laws -- the State Security Law and the State Security Court -- and proposed a new national charter that calls for an elected parliament.

"The moves were very positive and surprised all. We have been expecting a change but not that fast," said Hassan Mushaime, a Shi'ite activist freed by the emir in February after spending more than five years in jail.

"Some people even described them as a dream come true," Mushaime told Reuters. "We hope these reforms will continue and that all those who had lost their jobs will be re-employed."

Analysts said the emir has met key opposition demands and reunited the tiny island state shaken by four years of anti- government unrest.

"We are seeing a new mode of openness in the country and this has been followed by concrete steps like the freeing of hundreds of detainees, allowing the return of exiles and the launching of the national charter," a Western diplomat said.

"Sheikh Hamad has changed the face of Bahrain in just two years and created a new atmosphere. That is visible in Bahraini villages where his pictures are posted alongside those of Shi'ite Muslim clerics," one analyst said.

The human rights organization Amnesty International last month welcomed the reforms, but urged Bahrain to amend urgently some legislation to reflect international human rights treaties.

"We have made a number of recommendations and indeed we have been in a dialog with the government of Bahrain for a number of years," said Chicago University law professor Bartram Brown, who headed a three-member team from the London-based rights group.

"We have come to an entirely different atmosphere. A very positive atmosphere, with great enthusiasm," Brown said.

Said Boumedouha, an Amnesty International researcher, said Bahrain had implemented most of the organization's recommendations but there was a need to implement others.

Bahrainis voted overwhelmingly in a referendum in February to support the charter which calls for setting up an elected parliament alongside the appointed Shura (consultative) council, a constitutional monarchy and an independent judiciary.

A rarity in the conservative Gulf Arab states, women took part in the referendum for the first time since Bahrain's independence from Britain in 1971.

Bahrain dissolved its first elected parliament in 1975 after only two years. It now has a 40-member Shura council, which has no legislative powers, to assist the government on draft laws before they are sent to emir for final approval.

Bankers and businessmen say the current political stability in Bahrain would enhance the country's position as one of the world's most free economies given its lack of direct taxation and red-tape.

An end to a long-standing border dispute with Qatar has also created good opportunities for businessmen in Bahrain, the Gulf's financial and banking hub, analysts and bankers say.

"The end of the border dispute between the two countries has opened a big market for Qatari and Bahraini investors," one banker said.

The Hague-based International Court of Justice in March awarded the Hawar islands to Bahrain and gave Qatar three small islands previously controlled by Bahrain.

A 26-member Qatari trade team held talks in Bahrain earlier this month to examine trade and investment opportunities, and at least three Bahraini investment firms said they were setting up joint ventures in Qatar.

Bankers and diplomats say Bahrain still faces the challenge of creating job opportunities -- the main reason for the 1994-1998 protests -- and cut unemployment estimated at 10 of the total workforce of 307,000 at the end of last year.