Current events in Europe and beyond are so reminiscent of the Cold War that one could be excused for thinking that it never actually ended.
The Russian bear is growling again as imperialist sentiment grows in the corridors of the Kremlin. The Chinese regime is accumulating power at an unprecedented rate. But it is not simply great power politics that is back in vogue.
Regimes in smaller states such as Syria, Zimbabwe and North Korea have also been emboldened, and have begun to pursue their own brand of “values-based” foreign policy. Russia and China have used their positions in the United Nations Security Council to block almost all proposed forms of intervention and the West, after the debacle of Iraq, is more reticent than ever.
This divided world stands in stark contrast to the situation after the victory of the West in the Cold War. Neoconservative commentators in the US were ecstatic about a victory they took to be the ultimate triumph of western values, especially of liberal democracy and capitalism.
And in a fit of optimism after the collapse of the Berlin Wall, the political scientist Francis Fukuyama declared not only an end to ideological struggle, but the universalisation of western liberal democracy as the final form of human government.
His enthusiasm was infectious. Liberals soon began to argue that the spread of liberal political and economic values was important for global security. Consequently, a coalition of liberals and neoconservatives pushed a global interventionist agenda throughout the 1990s.
This culminated in the Iraq adventure, which was meant to be the first step towards the transformation of an entire region, an answer to the Islamist radicalism being spawned in authoritarian regimes through western Asia. The Iraq War confounded most ideological categories and shattered a lot of myths about the use of force, as liberals found it hard to oppose a war that would remove a genocidal regime from power.
The idea that the democratisation of the Middle East would be the best antidote to Islamist extremism seemed like an idea whose time had come. Yet today, the authoritarian regimes of the region are all stronger than before. Iran has emerged as the strongest power in the region, twiddling its thumbs at the impotence of the West in carrying out its threats over its nuclear programme and charting a foreign policy course that is more ambitious and radical than ever before. The liberal ideology of intervention has proved its limits, and is now confronted with a rapidly evolving reality.
In the tradition of authoritarian regimes, the Chinese constructed a powerful pageant at the 2008 Olympics to boost officially sanctioned mass nationalism.
It was suggested in the West that the hosting of the Olympics would ease China’s inevitable transition to a more open society. It is now clear that China’s games instead hailed the success of an ideology in constructing a powerful state, restoring the nation’s sense of pride and greatness in passing.
Meanwhile, Russia has used the modern lexicon of humanitarian assistance and peacekeeping to disguise its aspirations to reassert its control in what it considers its own backyard, the Caucasus. The old battle lines between Russia and the West are being redrawn, with the faintest of hopes that Russia would ally with the West dwindling rapidly.
Russia has clearly stated its intention to reclaim its position as the primary geopolitical concern of the West. The Russian-Ukraine conflict is taking place in a broader strategic milieu in which Russia has re-emerged as a major player in global politics. It is flush with soaring oil revenues and confident of its power due to its hold over European energy supplies. There is huge support for this among the Russian people who remain nostalgic for their former great power status.
With parts of the Middle East in turmoil, the West seems to be losing its ability to dictate terms to an emerging global order. Europe, in particular, is witnessing a steady loss of self-confidence, turning inward and growing pessimistic about the future.
Ideological competition is in full swing as a former Russian foreign minister argued that “for the first time in many years, a real competitive environment has emerged in the market of ideas between different value systems and development models”.
According to him, the West is losing its monopoly on the globalisation process. Vladimir Putin got away with the seizure of Abkhazia and South Ossetia in 2008 and now he seems poised to retain Crimea. The US president has little credibility left after his red lines on Syria were conveniently ignored by the US Congress. Countries like Estonia and Latvia, with significant Russian-speaking populations, are worried as Mr Putin seems to have given rise to a new doctrine of protecting ethnic Russians wherever they might be.
Raymond Aron, the great political philosopher of the last century, was right: “What passes for optimism is most often the effect of an intellectual error.”
Liberal sentimentalism about internationalism and human nature led to post-Cold War complacency about its values. This complacency has come back to haunt it, a tad sooner than expected: history is back with a vengeance.
Harsh V Pant teaches at King’s College London
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
New UK refugee system
- A new “core protection” for refugees moving from permanent to a more basic, temporary protection
- Shortened leave to remain - refugees will receive 30 months instead of five years
- A longer path to settlement with no indefinite settled status until a refugee has spent 20 years in Britain
- To encourage refugees to integrate the government will encourage them to out of the core protection route wherever possible.
- Under core protection there will be no automatic right to family reunion
- Refugees will have a reduced right to public funds
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
info-box
COMPANY PROFILE
Company name: Happy Tenant
Started: January 2019
Co-founders: Joe Moufarrej and Umar Rana
Based: Dubai
Sector: Technology, real-estate
Initial investment: Dh2.5 million
Investors: Self-funded
Total customers: 4,000
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Under 19 Cricket World Cup, Asia Qualifier
Fixtures
Friday, April 12, Malaysia v UAE
Saturday, April 13, UAE v Nepal
Monday, April 15, UAE v Kuwait
Tuesday, April 16, UAE v Singapore
Thursday, April 18, UAE v Oman
UAE squad
Aryan Lakra (captain), Aaron Benjamin, Akasha Mohammed, Alishan Sharafu, Anand Kumar, Ansh Tandon, Ashwanth Valthapa, Karthik Meiyappan, Mohammed Faraazuddin, Rishab Mukherjee, Niel Lobo, Osama Hassan, Vritya Aravind, Wasi Shah
Jewel of the Expo 2020
252 projectors installed on Al Wasl dome
13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas
550 tonnes of moulded steel were raised last year to cap the dome
724,000 cubic metres is the space it encloses
Stands taller than the leaning tower of Pisa
Steel trellis dome is one of the largest single structures on site
The size of 16 tennis courts and weighs as much as 500 elephants
Al Wasl means connection in Arabic
World’s largest 360-degree projection surface
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
World Cricket League Division 2
In Windhoek, Namibia - Top two teams qualify for the World Cup Qualifier in Zimbabwe, which starts on March 4.
UAE fixtures
Thursday, February 8 v Kenya; Friday, February 9 v Canada; Sunday, February 11 v Nepal; Monday, February 12 v Oman; Wednesday, February 14 v Namibia; Thursday, February 15 final
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Company profile
Company: Rent Your Wardrobe
Date started: May 2021
Founder: Mamta Arora
Based: Dubai
Sector: Clothes rental subscription
Stage: Bootstrapped, self-funded
COMPANY%20PROFILE
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Turkish Ladies
Various artists, Sony Music Turkey
COMPANY%20PROFILE
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How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
Company%C2%A0profile
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FINAL SCORES
Fujairah 130 for 8 in 20 overs
(Sandy Sandeep 29, Hamdan Tahir 26 no, Umair Ali 2-15)
Sharjah 131 for 8 in 19.3 overs
(Kashif Daud 51, Umair Ali 20, Rohan Mustafa 2-17, Sabir Rao 2-26)
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Sholto Byrnes on Myanmar politics
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.