Lebanon teetering under the weight of apathy



Rage is a legitimate weapon in the columnist’s arsenal, but I will concede that last week’s piece was a bit of a rant. Still, I couldn’t help myself. The first rains of the Lebanese autumn had sent some of the thousands of uncollected tonnes of rubbish coursing through the streets of Beirut and its suburbs like some biblical plague. Surely, I argued, heads would now roll.

But this is Lebanon, where accountability is for the weak. And so it came to pass that one week later, the same politicians who led the country into a constitutional and economic cul-de-sac are scratching their collective heads, trying to figure out how to solve an environmental crisis that began in mid-July.

Back then, Sukleen, the company contracted by the state to collect and dispose of the nation’s trash, declared that not only was there was nowhere left to dump it but its contract was also up for renewal. Until the two issues were resolved, Beirut’s waste would remain uncollected.

At the time, the story made global headlines. It was a good news story with dramatic images of piles of rubbish and fed-up Beirutis wearing masks. And we hoped that the world would put it down to an administrative glitch in a chronically creaky country. End of.

But the longer it lasted the more serious it became and now there are fears that lethal toxins are leaching into the soil and the groundwater. This will surely have serious economic and social consequences if it is not resolved.

Indeed, many experts are saying we are already too late.

Our tourist industry was already in intensive care. Now it surely must be flatlining. It was never an easy sell. With charter flight fares “stopping” at Istanbul, Lebanon was always a relatively expensive destination.

We also knew, even if we never admitted it, that we were never as beautiful a country as we claimed.

Our fabled red-tiled, stone mountain houses have all been knocked down and replaced with concrete apartment buildings, while what is left of our bona fide countryside, including the Unesco-listed Qadisha Valley, is full of more litter.

But we didn’t appear to mind. We didn’t need the uber-discerning Europeans.

The Arab tourists who came to relax in Beirut and the coastal towns liked us just as we were. They came to shop, eat, smoke shisha and sleep. But now they have the added thrill of knowing they might glow in the dark after brushing their teeth with, or showering in, contaminated water.

Panic is even setting in among the usually phlegmatic Lebanese. After last week’s floods, residents of Beirut and its environs were advised, via text message from an NGO, not to drink tap water, avoid meat, fish and dairy products and to stick to lentils and tinned food.

Most Lebanese don’t drink tap water but those who are unable to buy bottled water have no choice and already there are fears of a cholera and typhoid outbreak.

Finding the funds to cope with such an epidemic would put a huge strain on the state’s coffers at a time when the government is already feeling the pinch. In fact, last week it emerged some units in the army had not been paid in six weeks.

Then there are the implications for any foreign investment opportunities, Lebanon has been trying to create for the past quarter of a century.

The cost of doing business is already exorbitant – tortoise-like internet and a complex and bribe-riddled bureaucracy – but now the world knows that government can’t even decide what to do when a rubbish collection contract comes up for renewal because the bidding process is riddled with political influence. It’s just a mess.

Either way, Lebanon can’t go on collecting dubious accolades.

We used to be simply mad and bad. Then we were mad and bad, but by golly did we know how to throw a good party. Then the party ended and we went back to being mad and bad but with 2 million refugees. Now, we are mad and bad with 2 million refugees, a collapsing infrastructure and an unfolding environmental disaster.

During his Sunday sermon the Maronite Patriarch declared the state close to collapse. It’s hard to disagree.

Michael Karam is a freelance writer who lives between Beirut and Brighton.

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THE DETAILS

Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5

SQUADS

Bangladesh (from): Shadman Islam, Mominul Haque, Soumya Sarkar, Shakib Al Hasan (capt), Mahmudullah Riyad, Mohammad Mithun, Mushfiqur Rahim, Liton Das, Taijul Islam, Mosaddek Hossain, Nayeem Hasan, Mehedi Hasan, Taskin Ahmed, Ebadat Hossain, Abu Jayed

Afghanistan (from): Rashid Khan (capt), Ihsanullah Janat, Javid Ahmadi, Ibrahim Zadran, Rahmat Shah, Hashmatullah Shahidi, Asghar Afghan, Ikram Alikhil, Mohammad Nabi, Qais Ahmad, Sayed Ahmad Shirzad, Yamin Ahmadzai, Zahir Khan Pakteen, Afsar Zazai, Shapoor Zadran

MATCH INFO

Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

Dates for the diary

To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:

  • September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
  • October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
  • October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
  • November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
  • December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
  • February 2, 2018 Bodytree will host its 4th annual yoga market.

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.”