North Korea’s rapid nuclear and missile advances and America’s rushed deployment of a ballistic missile defence system in South Korea have increased the risks of a war on the Korean Peninsula by accident or miscalculation.
Donald Trump may be battling the deep state at home but, in hastening the defence system’s deployment, his administration has presented a fait accompli to the next South Korean president. The new president will be elected in May after South Korea’s constitutional court recently upheld the impeachment of Park Geun-hye. It was Ms Park who agreed last July to the defence system.
The issue has become divisive in South Korean politics, and one presidential hopeful, Moon Jae-in, has said the system’s deployment unnecessarily escalates tensions on the peninsula. However, the Trump administration began its placement in early March.
Mr Trump gleefully challenged diplomatic orthodoxy during his own election campaign, including US foreign policy’s longstanding principles. Yet by implementing his predecessor’s defence system decision, Mr Trump has offered an example of how he is embracing key pillars of the previous administration’s foreign policy.
Two fundamental issues raised by the placement, however, cannot be obscured.
Firstly, the deployment has been necessitated by the abysmal failure of the US-led strategy to squeeze North Korea with ever-increasing sanctions while shunning any diplomatic engagement with it. The sanctions-only approach has only encouraged North Korea to advance its nuclear weapons and missile capabilities.
In the decade since the US froze all diplomatic contact with North Korea, that reclusive nation has gone from possessing rudimentary WMD capabilities to testing advanced systems that pose a regional threat.
For example, it tested a nuclear device last September whose yield, as recorded by outside seismic monitoring stations, was twice as powerful as the atomic bomb that the US dropped on Hiroshima in 1945. Since last year, Pyongyang has also tested solid-fueled missile systems.
And secondly, the defence system is no plausible answer to North Korea’s nuclearisation. Indeed, this is a case of the remedy being worse than the disease.
The deployment could counterproductively lead to North Korea aiming to defeat the defensive system by developing greater offensive capability.
In fact, China and Russia believe that its placement is part of a larger American plan to establish a fence of anti-missile systems around them.
Let’s be clear, the defence system cannot credibly protect South Korea from its neighbour’s short-range ballistic missiles.
Designed for high-altitude intercepts, it is geared to interdict intermediate-range ballistic missiles. Given South Korea’s relatively small land size, an attack by the North may not necessitate the use of medium-range missiles. Seoul is only 40 kilometres from the demilitarised zone.
North Korea has a virtual artillery choke-hold on Seoul that the defence system’s deployment cannot neutralise. This is why the US lacks a realistic option to militarily degrade the North’s nuclear and missile capabilities without provoking Pyongyang to unleash its artillery power against Seoul or triggering an all-out war. The absence of credible techno-military options against North Korea is also underscored by the failure of the US to undermine Pyongyang’s nuclear and missile programmes through coordinated cyber and electronic strikes in recent years.
In this light, the political symbolism is greater than the military utility. The defence system, in any case, has never been battle-tested.
Rather than enhance South Korea’s security, including by reassuring its citizens, its deployment threatens to make South Koreans more insecure.
Against this background, a new strategy is needed to stem the growing risk that a small mishap could escalate to a full-fledged war. Barack Obama employed sanctions with engagement to clinch a nuclear deal with Iran, yet throughout his eight-year tenure pursued a completely different approach towards North Korea – sanctions without engagement.
Given that the North Korean threat has reached a level defying solution through technological or military means, diplomacy must come into play to reduce tensions. For long, North Korea has sought direct talks with Washington. Mr Trump, during his campaign, said that he would be willing to meet with North Korean ruler Kim Jong-un over a burger.
If the defence system placement is not to prove counterproductive, Washington must shift to a sanctions-with-engagement policy towards Pyongyang, with the ultimate goal of clinching a WMD deal as part of a comprehensive peace treaty replacing the Korean War armistice. South Korea has an even bigger stake in engagement with the North in order to reduce the costs it will bear if reunification were to ever take place.
Brahma Chellaney is the author of nine books, including, most recently, Water, Peace, and War
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
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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The stats: 2017 Jaguar XJ
Price, base / as tested Dh326,700 / Dh342,700
Engine 3.0L V6
Transmission Eight-speed automatic
Power 340hp @ 6,000pm
Torque 450Nm @ 3,500rpm
Fuel economy, combined 9.1L / 100km
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Killing of Qassem Suleimani
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
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Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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The specs: 2018 GMC Terrain
Price, base / as tested: Dh94,600 / Dh159,700
Engine: 2.0-litre turbocharged four-cylinder
Power: 252hp @ 5,500rpm
Torque: 353Nm @ 2,500rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.4L / 100km
Racecard
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