Early elections will not solve Iraq's political deadlock and may drag the country further into crisis, experts told The National on Wednesday.
For months, powerful Shiite cleric Moqtada Al Sadr has been calling for re-elections and the dissolution of Parliament. This comes after his political party won last October's polls but fell short of a majority.
The country has been without a newly elected government for 11 months.
“Holding new elections may be a way to reset the deadlock but we may end up in another deadlock,” Sajad Jiyad, an Iraqi political analyst based in Baghdad and a fellow at Century International, said.
Calls are being made for re-elections as deals are not being struck between political parties and there is not an alternative for a way out of the impasse, he added.
Mr Al Sadr and his followers, who call themselves the Sadrists, have staged protests across the country against their rival group the Shiite Co-ordination Framework.
Tensions heightened drastically last week after the cleric's followers stormed Baghdad's Fortified Green Zone. The move killed at least 30 people, mostly Mr Al Sader's supporters, following clashes with armed groups after he announced he was quitting politics.
At least 400 people were wounded in the violence.
Normal life has returned to Baghdad after a bloody week, but the political stand-off remains.
Mr Al Sadr was frustrated in his attempts to form a government after the general election, despite his bloc winning the largest number of seats.
His rivals in the Iran-aligned Co-ordination Framework alliance have insisted a government should be formed and there is no need for another vote.
“Elections are not the solution and they may lead to the situation becoming even more serious and people losing all trust in democracy and the election process,” Mr Jiyad told The National.
Mr Al Sadr has been calling for early elections, which is a critical demand for him and his supporters who have called for the dissolution of Parliament.
Meanwhile, the Co-ordination Framework want a new head of government appointed before new polls are held.
Results might “be more of the same because of turnouts, we expect turnout to be low again, maybe the Sadrists will come out on top and the framework will do a bit better, but we expect the results to be the same,” Mr Jiyad said.
Low voter turnout
The turnout was 43 per cent in last October's election, but the results were lower than the last election in 2018.
The country's electoral commission said more than 9.6 million people voted in the October 10 vote.
"It is difficult to see whether we can expect different results because what we know is that most Iraqis are not voting and in every election the voter turnout has been lower and lower," Renad Mansour, an Iraq scholar at the Chatham House think tank in London, told The National.
"What that means is those coming to voting age are less likely to vote so the only people who are voting are those linked to the social base of political parties."
October's vote involved at least 167 parties and more than 3,200 candidates competing for 329 seats in Parliament.
It is only the Sadrists that are calling for fresh elections and, based on Chatham House's research, Mr Al Sadr has a strong base that is willing to go out and vote.
"The question is have they [Sadrists] learnt that if they can get more votes, that they can actually pursue a majority government in a way that they couldn’t compared to last year’s elections?" Mr Mansour said.
"This is what they are planning for, to have another early election and they will be in a better position, their people have learnt that voting does matter," he said.
Mr Mansour said that it was hard to "see a very big difference" if Iraq was to hold another election.
"The Sadrists are hoping they can re-emerge with stronger political capital," he said.
UAE currency: the story behind the money in your pockets
Indoor cricket World Cup:
Insportz, Dubai, September 16-23
UAE fixtures:
Men
Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final
Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final
The biog
Favourite Emirati dish: Fish machboos
Favourite spice: Cumin
Family: mother, three sisters, three brothers and a two-year-old daughter
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
Company%20Profile
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The five pillars of Islam
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.”
UAE currency: the story behind the money in your pockets
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
UAE currency: the story behind the money in your pockets
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