Matt Damon’s latest film Elysium imagines a world that starkly visualises the gap between the richest and the poorest: the rich live on a luxury space station, high above an overcrowded Earth, where the majority live and work in abject poverty. The film’s director Neill Blomkamp – the man who previously made District 9, a film about species rather than social apartheid – said Elysium is “about the third world trying to get into the first”. Not unexpectedly the film has attracted criticism, from the rather familiar quarter of the political right, over its “socialist” message.
In fact, the huge discrepancy between rich and poor that the film imagines is not science-fiction at all – it is documentary fact.
The makeshift spacecraft that try to reach the Elysium space-station from the Hobbesian Earth below are no different from the boats that, every day, try to make their way across the Mediterranean from North Africa to Europe.
When one of those boats sank last week on its way to Lampedusa, a tiny island between Tunisia and Italy, resulting in the deaths of hundreds of desperate people, it briefly highlighted the tip of an everyday iceberg and the desperate measures of the poor world to find a better life in the rich one.
Yet the migrants who died off the coast of Italy are only the most visible of many tens of thousands more, toiling in the shadow economies of the rich world, or seeking to migrate there.
It is a relentless tragedy. Every day, men, women and children take big risks for a better life – they head north from Mexico across the deserts of the United States, head in boats and on foot from East Africa or across the Sahara, attempt to cross the Timor Sea to Australia. It is an unceasing story, and with equal regularity results in dehydrated and drowned bodies.
In fact, the Mediterranean is by no means the stretch of water that the highest number seek to cross – that dubious honour belongs elsewhere in the Arab world. According to the UN High Commission for Refugees, while around 70,000 migrants landed in Italy, Spain and Greece in 2011, more than 100,000 made the crossing from East Africa to Yemen. That tiny stretch of the Red Sea is the busiest crossing point in the migrant world.
The reporting of the Lampedusa tragedy has been filled with questions of interest mainly to the rich world: how to stop people making the journey or how to ensure deaths at sea are prevented, how to physically restrict access to the waters around the rich world, or how to make life hard for those who do make the journey (put them in camps or put them in jail seems to be the theme). Among the soul-searching and mourning, one issue has gone unremarked, precisely because it is so difficult. What, exactly, can be done about the vast discrepancies of the world?
However you measure it, the rich world is much smaller than the poor world. The planet’s richest one per cent live on $75 a day or more, meaning if you earn more than US$27,000 a year (Dh100,000), you are not just well-off, not merely wealthy, but are among the richest on the planet.
That is a sobering thought, both because it puts some of the everyday problems of the middle-classes of the rich world into perspective – whatever problems you have, 99 per cent of all human beings have it worse – and because it illustrates the vast gulf between those at the top and the rest of humanity. And it also illustrates the folly of imagining that everyone can live the way that the one per cent live today. Opening wide the doors of the rich world will not end poverty.
Making the billions at the bottom richer has exercised many of the best minds of the 20th and 21st century, and indeed led to devastating social experiments. What has raised more people out of poverty over the past 50 years has not been taxation or redistribution, but growth (and, right-leaning economists won’t be pleased to hear), state-promoted growth. As the vast nations of China, India, Russia and Brazil grow, they are lifting hundreds of millions out of abject poverty. China alone has taken more than half a billion people out of desperate poverty in less than 30 years.
That points to possible policies that could reduce the gap between the rich and poor, and so reduce the incentive for people to make dangerous journeys for a better life. It would be far better for the rich world to use its vast wealth and power to ensure as much of the globe is stable and secure. Keeping nations secure, more of the population can stay and survive in their own communities – it is the insecurity of war and social unrest that is a big driver of migration.
The opposite of Hobbes’ vision would be countries that are secure, stable and fair (in the sense of low inequality between the richest and poorest, but also in the sense of effort being proportionate to rewards). For the rich world, which feels considerably less rich these days, such an argument seems like charity. Even leaving aside the tangible but tangled history of slavery, colonisation and occupation, it is in fact a purely self-interested argument for the rich world. Because there are no walls high enough to keep desperate people out.
falyafai@thenational.ae
On Twitter: @FaisalAlYafai
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
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.”
Low turnout
Two months before the first round on April 10, the appetite of voters for the election is low.
Mathieu Gallard, account manager with Ipsos, which conducted the most recent poll, said current forecasts suggested only two-thirds were "very likely" to vote in the first round, compared with a 78 per cent turnout in the 2017 presidential elections.
"It depends on how interesting the campaign is on their main concerns," he told The National. "Just now, it's hard to say who, between Macron and the candidates of the right, would be most affected by a low turnout."
RESULTS
2pm: Handicap (PA) Dh40,000 (Dirt) 1,000m
Winner: AF Mozhell, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)
2.30pm: Maiden (PA) Dh40,000 (D) 2,000m
Winner: Majdi, Szczepan Mazur, Abdallah Al Hammadi.
3pm: Handicap (PA) Dh40,000 (D) 1,700m
Winner: AF Athabeh, Tadhg O’Shea, Ernst Oertel.
3.30pm: Handicap (PA) Dh40,000 (D) 1,700m
Winner: AF Eshaar, Bernardo Pinheiro, Khalifa Al Neyadi
4pm: Gulf Cup presented by Longines Prestige (PA) Dh150,000 (D) 1,700m
Winner: Al Roba’a Al Khali, Al Moatasem Al Balushi, Younis Al Kalbani
4.30pm: Handicap (TB) Dh40,000 (D) 1,200m
Winner: Apolo Kid, Antonio Fresu, Musabah Al Muahiri
UAE currency: the story behind the money in your pockets
A list of the animal rescue organisations in the UAE