Europe's future will be decided on the Bosphorus



This is my last column for a while. I am off to become Chairman of the BBC Trust - the strategic authority of one of the greatest broadcasting organisations in the world. So I have to take a Sicilian vow of omerta on controversial issues for the term of my chairmanship. That makes for boring commentary: better to put down my pen.

It's in my hand on this occasion as I look out over the Bosphorus on a glittering spring morning. Yesterday, there were flurries of snow in Istanbul. But today the sun glints across the water to the Asian coastline of the city; the seagulls bank in the breeze; a great liner sails majestically north towards the Black Sea. It's a "good-to-be-alive" sort of day.

But I always feel like that in Istanbul, a great city where so much world history has been forged. And it's the city where Europe's future may be shaped: Istanbul, not Brussels, Paris, or Berlin. Let me explain.

Europe's current political identity emerged from its recent history. In the 19th century, the continent's share of the world's population increased from one-fifth to one-quarter. That helped European countries dominate the century as expansionist colonial powers. But it also created competitive pressures for living space, with much of the struggle crystallising in the antagonism between France and an emerging Germany.

The result was three wars in 70 years. You can see the consequences in the sprawling cemeteries of northern and eastern France and the borderlands of central Europe. And we dragged others into our struggles. Look at all the Indian names carved on the memorial arches in Picardy. I recall the war memorial in a tiny village north of Queenstown in the heart of "Lord of the Rings" country on the South Island of New Zealand. Thousands of miles from the bloody fields of France, 26 young New Zealanders who died there are remembered on a granite cross.

So, in the days when Europe worshipped Mars, the God of War, the rest of the world was often drawn into our continental battles. We Europeans were dangerous to each other, and it was often even more dangerous to be one of our friends.

The creation of the European Union was how we Europeans tried to prevent another war. France and Germany were joined at the hip - economic cooperation was meant to lead to closer political union. Around this historic compromise other countries circled, including those, like the United Kingdom, that were originally sceptical of the entire enterprise. We were already all drawn toward it, and our peace and prosperity were consolidated.

It worked far better than the doubters ever imagined was possible - indeed, perhaps even better than its progenitors expected. A vast single market was created. Sovereignty was shared and transformed in areas like trade and the environment. A union with seven per cent of the world's population produced 22 per cent of its output, a larger share than the United States, almost twice that of China, and four to five times that of India.

The European economic giant aspired to a global political role, but here reality swept in. The Mars of the 20th century is a lot less sure of itself in the 21st. Until the United Nations-backed Libyan intervention, Europe seemed increasingly a bystander in international affairs, and even its participation in Libya is largely a Franco-British affair, with Germany opting out and choosing a quiet life.

So what is the point of Europe today? I tell my children that the EU is there to prevent us from fighting one another again, and their reply is blunt: "Of course we are not going to fight." Europe's moral purpose today is an existential question that all Europeans must consider.

For me the answer is to be found in Turkey. Europe with Turkey as a member would naturally be a more dynamic economy. Turkey is a regional energy hub. It has clout and respect in its own region with formidable fighting forces. And, above all, Turkey is now a role model for other Islamic societies striving to accommodate democracy, civil liberties, the rule of law, an open economy, pluralism, and religion.

As an EU member, Turkey would add a new dimension of massive historic importance. Europeans would show that we could embrace an Islamic democracy and build a strong bridge between Europe and western Asia.

That, in turn, would create a new European identity and narrative, a new reason for the EU to exist in this century, a way of rejecting the divisive politics of old. I hope that by the time I take up my pen again, we will be on our way to this destination. If not, then many of us will find it increasingly difficult to see Europe as anything more than a glorified customs union with political ambitions that are far too big for its boots.

Chris Patten, the last British Governor of Hong Kong and a former EU Commissioner for External Affairs, is Chancellor of the University of Oxford

© Project Syndicate, 2011

Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press

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Name: HyveGeo
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Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
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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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Founded: 2013

Based: Egypt, Cairo

Sector: IT

Employees: 100

Stage: Series A

Investors: Flat6Labs, Accel, Y Combinator and angel investors

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2nd Test: Adelaide, Dec 2-6
3rd Test: Perth, Dec 14-18
4th Test: Melbourne, Dec 26-30
5th Test: Sydney, Jan 4-8

Company profile

Name: Tratok Portal

Founded: 2017

Based: UAE

Sector: Travel & tourism

Size: 36 employees

Funding: Privately funded

The years Ramadan fell in May

1987

1954

1921

1888

if you go

The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.

The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.

 

 

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Women:

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2. Lysanne Richard (CAN) 285.75
3. Ellie Smart (USA) 277.70

Men:

1. Gary Hunt (GBR) 431.55
2. Constantin Popovici (ROU) 424.65
3. Oleksiy Prygorov (UKR) 392.30

Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5