Haiti, a tropical expression of poverty, corruption and natural disaster, once more intrudes on our conscience.
Well before the country was shattered by a huge earthquake nearly two weeks ago, the facts of its decomposition were well known: it is the poorest nation in the western hemisphere, with a per-capita income of US$2 (Dh7.34) a day and a poverty rate of 80 per cent. Half its population is illiterate and the first thing its college graduates do upon matriculation is leave the country in search of jobs.
Even as the world rushes to aid this benighted state, there have been appeals, mostly from the political right, to condition aid and assistance on commitments from the Haitian government that it will reform itself. The lethality of the quake could have been lessened, it is argued, had building codes been enforced, and had hospitals and emergency medical teams been fully staffed and resourced.
For a country that rests on one of the region's most active tectonic plates, to neglect such basic standards and services reveals a crisis of governance worthy of a failed state.
For many libertarians, particularly the Ayn Rand-styled true believers, the cause of Haiti's pathology is an abundance of good will. To habitually rescue a corrupt state is to sustain its reprobation. (The same could be said about Wall Street, of course.)
An economist might see things differently, however, noting that Haiti throughout much of its history was the imperial possession or protectorate of malevolent foreign powers. Dating back to the 16th century, the country was plundered by Spain for its natural resources and settled by French pirates and sugar barons. For a while, it was shared by the two superpowers and run like a condominium fief.
Haitian independence, born of a slave revolt inspired by the ideals of the French Revolution, was followed by a century of foreign invasion, counter-rebellion and despotism. As late as the 1990s, western business interests, often in tandem with the US marines, frequently played a far more decisive role in Haiti's fate than ordinary Haitians. (The marines have returned to assist quake victims and not, as the Pentagon loudly protests, as an occupying force.)
On what grounds, the economist might ask, should a nation denied self-determination throughout so much of its history be held to account for its obligations as a sovereign state today?
For Karl Marx, imperialism was the process by which nations or corporations controlled others states indirectly through exploitation rather than directly through military occupation. Haiti, of course, was subjected to generous helpings of both.
In 1902, the English economist John A Hobson averred ruefully that imperialism was not only the handmaiden of the free market, but its very salvation. Because capitalism generated more goods than consumers could afford to buy, he believed, its survival hinged on the creation of new markets abroad.
It would require, he wrote, "the endeavour of the great controllers of industry to broaden the channel for the flow of their surplus wealth by seeking foreign markets and foreign investments to take off the goods and capital they cannot use at home".
This was an antiseptic way of referring to the small but destructive colonial wars of the Victorian era, the legacies of which - militarism, partition and authoritarianism - cast a long shadow on what is now known as the developing world.
As late as 1953, the author and economist Robert Heilbroner wrote how, during the 19th century, one sixth of the world was rich and powerful, while the balance was "supine, defence-needy and gullible". Half a century later, he noted, the bottom five sixths was still poor, but also "angrily aggressive". Asia has turned away from Europe, while the Middle East was "bursting with the rage of the beggar who looks at the rich man and sees - the gross injustice of differing stations in life".
What followed were among the most convulsive decades the Third World has known. If many former colonies such as the blighted Haiti are to this day struggling with the consequences, no small share of responsibility lies with its imperial overlords.
In his 1979 book, The Nature of Mass Poverty, the economist and diplomat John Kenneth Galbraith wrote how imperialism creates an unhealthy dependency on the ruler by the ruled that will endure long after the occupier withdraws. Colonial rule, he wrote, "excluded the subject peoples from political decision - The exclusion operated against the masses of the people [and] - while colonial rule remained successful, there was no effective redress".
It is true that many former colonies, particularly those in Asia, are now economic powers, having harnessed the authoritarian energy of their former occupiers as fuel for development. What were the "tiger economies" of the 1970s and 1980s, after all, but an inversion of the dependency syndrome of which Mr Galbraith wrote? What is China - as powerful and influential as it is oppressive, mercantilist, and to its Muslim population at least, imperialist - but a titanic legacy of colonial aggrandisement?
By all means, Haitians should be held responsible for their misery. But the West should not delude itself as to the root cause of their malaise.
@Email:business@thenational.ae
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PROFILE
Name: Enhance Fitness
Year started: 2018
Based: UAE
Employees: 200
Amount raised: $3m
Investors: Global Ventures and angel investors
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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.”
Company profile
Company: Verity
Date started: May 2021
Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif
Based: Dubai
Sector: FinTech
Size: four team members
Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000
Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors
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What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
Greatest Royal Rumble results
John Cena pinned Triple H in a singles match
Cedric Alexander retained the WWE Cruiserweight title against Kalisto
Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus
Jeff Hardy retained the United States title against Jinder Mahal
Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos
Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe
AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out
The Undertaker beats Rusev in a casket match
Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match
Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last
'Nope'
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Specs
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Sholto Byrnes on Myanmar politics
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What is Genes in Space?
Genes in Space is an annual competition first launched by the UAE Space Agency, The National and Boeing in 2015.
It challenges school pupils to design experiments to be conducted in space and it aims to encourage future talent for the UAE’s fledgling space industry. It is the first of its kind in the UAE and, as well as encouraging talent, it also aims to raise interest and awareness among the general population about space exploration.
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RESULTS
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My Country: A Syrian Memoir
Kassem Eid, Bloomsbury
Biography
Her family: She has four sons, aged 29, 27, 25 and 24 and is a grandmother-of-nine
Favourite book: Flashes of Thought by Sheikh Mohammed bin Rashid
Favourite drink: Water
Her hobbies: Reading and volunteer work
Favourite music: Classical music
Her motto: I don't wait, I initiate
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