Like it or not, Afghan Taliban must be brought to the table


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Several critical factors can be identified as contributing to Afghanistan's ongoing 12-year-old war. Some view the United States' inefficacy in assisting the Afghans with nation-building as the major reason why the bloodshed continues, violence that has not even spared Kabul, as yesterday's attack on government offices demonstrates.

On the other hand, a number of analysts and scholars attribute the ongoing conflict to Afghans' perception of the United States as a foreign occupying force rather than a humanitarian ally.

And others still blame President Hamid Karzai's notoriously corrupt government and its inability to provide security and social welfare to all Afghans and to institute a modern nation-state system - one that is anchored in social justice, rule of law, separation of power and independent judiciary, executive and legislative systems.

But without a doubt it is the foreign interference of neighbouring countries - particularly, the Islamic Republic of Iran and Pakistan, both which have a self-interest in tipping the regional balance of power in their favour through the dominance of their proxies - that can be considered as the key reason behind this devastating internal conflict. Both have had a significant influence in placing hurdles to reaching a resolution to end Afghanistan's 12-year-old war.

Understanding this, the United States and its western allies came to the conclusion that without the political, social and economic collaboration between the Afghan government and the Taliban - who were overthrown by the American-led invasion in 2001 - it would be difficult, if not impossible, for the conflict to come to an end. It is thus vital for these two groups to build a mutual trust.

The United States, finding itself incapable of completely defeating the Taliban, understands that in order to create peace and security in Afghanistan it has as to push for negotiations between Karzai's government and the Taliban.

The Taliban have turned into such a well-trained, well-established and formidable movement that avoiding communication with them is no longer a realistic option. It is also worth noting that according to the United Nations, the Taliban and their allies were responsible for approximately 81 per cent of Afghan civilian casualties in 2012, 80 per cent in 2011, and 76 per cent in 2010.

Islamabad shares some of the blame for these figures. It is accused of providing shelter and financial support to the Taliban in attempts to shift the balance of power in Afghanistan in favour of Pakistan's national interest, rather than towards the Pashto Karzai government.

As a result, a socio-political and power-sharing relationship between the Taliban and Kabul will be paramount to reaching a peace plan agreement in Doha, and providing security and social welfare to all Afghan citizens.

While recent reports linked to the potential Doha peace talks between the Taliban and Afghan government have raised a considerable amount of optimism for the future of Afghanistan, nevertheless, tensions have already begun to significantly heighten.

One of the key underlying tensions which Mr Karzai's government refers to is their fundamental opposition to the establishment of a Taliban official office at all (Mr Karzai has suspended talks with the Taliban). The argument is that the Taliban have introduced themselves as an alternative government to the current corrupt Afghan political structure; outside their Doha office, the Taliban raised a flag and banner reading "Islamic Emirate of Afghanistan", which implicitly calls for the removal of Mr Karzai's government and the paving towards a new Afghan political establishment.

Afghan officials who refuse to attend the peace conference argue that the banner indicates that their office serves as a Taliban embassy. The Taliban office, which opened last week, also suggests that the Taliban is no longer just a military combat group but a political one as well. The Afghan ministry even added in a statement that "the manner in which the office was established was in clear breach of the principles and terms of references agreed with us by the US government".

The Taliban, however, view the introduction of its office in Doha as a tremendous political success and a step towards obtaining public legitimacy.

More fundamentally, these disputes over the Taliban banner reflect an underlying and deeper political and ideological tension between the Taliban and Mr Karzai's government. The gap between Taliban's ideological and political position and Mr Karzai's appears to be too large to bridge.

Ideologically speaking, the Taliban emphasise imposing extremist religious and Sharia law if they were to share power with the current Afghan government. Politically speaking, the Taliban have long insisted that any negotiation will ultimately be based on the complete withdrawal of foreign forces as a pre-condition to becoming part of a political settlement.

Both these two pre-conditions appear unlikely to be fulfilled anytime soon; although Nato's combat troops are due to leave Afghanistan by the end of 2014, the US has signed a bilateral security agreement with Afghanistan to station a few thousand personnel in the country even after 2014.

How the Taliban will figure into this post-US draw-down remains to be seen.

Dr Majid Rafizadeh is the president of the International American Council on the Middle East

On Twitter: @majidrafizad

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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.”

T20 World Cup Qualifier

October 18 – November 2

Opening fixtures

Friday, October 18

ICC Academy: 10am, Scotland v Singapore, 2.10pm, Netherlands v Kenya

Zayed Cricket Stadium: 2.10pm, Hong Kong v Ireland, 7.30pm, Oman v UAE

UAE squad

Ahmed Raza (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Darius D’Silva, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Junaid Siddique, Sultan Ahmed, Imran Haider, Waheed Ahmed, Chirag Suri, Zahoor Khan

Players out: Mohammed Naveed, Shaiman Anwar, Qadeer Ahmed

Players in: Junaid Siddique, Darius D’Silva, Waheed Ahmed