A vital check and balance in Afghanistan



This probably wasn't the way Hamid Karzai imagined he would bring members of Afghanistan's many factions together. But whether Hazara, Uzbek or Tajik, or even, like Mr Karzai himself, Pashtun, the elected members of the Afghan parliament stood together and against Mr Karzai's attempts to prevent them from taking their seats in the Wolesi Jirga. The body's 249 members were sworn in on Wednesday, and in the process, Afghanistan had three branches of government in operation for the first time in months.

That Afghanistan's parliament exerted its independence is cause for optimism in a nation where bright spots are in short supply. A system of checks and balances and a parliament that provides them is an important protection against abuses of power. In the absence of these counterweights, corruption flourishes, as it has in Afghanistan.

And yet, it is far too early to pronounce the arrival of representative democracy in Kabul. Many of Afghanistan's parliamentarians are by no means models of upright citizenship. Mr Karzai's justification for delaying the parliament's seating was that at least 50 of its elected members are under investigation for corruption, murder and election-related violence.

The trouble is that Mr Karzai appeared to have other motives than improving Afghan governance in opposing the formation of the parliament. His bid to create a special tribunal to investigate newly elected members, rather than use the country's existing institutions, gave the appearance of a power-grab. Opponents saw Mr Karzai's actions as a poorly-veiled attempt to stack parliament in his favour.

Western governments have welcomed the advent of the Afghan parliament. "There should be no prospect of this political dispute turning into a security crisis", the Nato ambassador Mark Sedwill told journalists on Wednesday. "That's actually the important thing".

Afghanistan's only way forward is to continue with the rickety business of governance, however flawed. Kabul's opportunity for improvement lies not just in the existence of checks and balances but upon their efficiency, legitimacy, and example of how a post-tribal Afghanistan can work, where no group retains a stranglehold on political power. True political representation will mean inclusion of all factions and members of the Taliban may be among them.

As these different groups seek to work through Afghanistan's challenges, hope remains that they can find more to unite them than a mistrust of Mr Karzai.

Key developments

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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.”

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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES

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How much sugar is in chocolate Easter eggs?
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  • The 190g Maltesers Teasers egg contains 58g of sugar per 100g for the egg and 19.6g of sugar in each of the two Teasers bars that come with it
  • The 188g Smarties egg has 113g of sugar per egg and 22.8g in the tube of Smarties it contains
  • The Milky Bar white chocolate Egg Hunt Pack contains eight eggs at 7.7g of sugar per egg
  • The Cadbury Creme Egg contains 26g of sugar per 40g egg
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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

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Getting there

The flights

Emirates and Etihad fly to Johannesburg or Cape Town daily. Flights cost from about Dh3,325, with a flying time of 8hours and 15 minutes. From there, fly South African Airlines or Air Namibia to Namibia’s Windhoek Hosea Kutako International Airport, for about Dh850. Flying time is 2 hours.

The stay

Wilderness Little Kulala offers stays from £460 (Dh2,135) per person, per night. It is one of seven Wilderness Safari lodges in Namibia; www.wilderness-safaris.com.

Skeleton Coast Safaris’ four-day adventure involves joining a very small group in a private plane, flying to some of the remotest areas in the world, with each night spent at a different camp. It costs from US$8,335.30 (Dh30,611); www.skeletoncoastsafaris.com