Donald Trump speaks by phone with Saudi Arabia's King Salman in the Oval Office at the White House. Jonathan Ernst / Reuters
Donald Trump speaks by phone with Saudi Arabia's King Salman in the Oval Office at the White House. Jonathan Ernst / Reuters

Can Trump afford to dump so-called American values?



Donald Trump is facing heavy criticism on human rights in the aftermath of his first international trip. The Trump administration has downplayed this issue more dramatically than any since Ronald Reagan’s first term. The implications of this shift are especially unclear because the administration has three distinct voices speaking simultaneously on human rights.

In 1981 Reagan took office determined to stop critiquing the domestic policies of Washington’s Cold War allies against the Soviet Union, even apartheid-era South Africa. This was rationalised on the grounds that right-wing dictators were “authoritarians” whose systems could evolve, whereas communist governments were “totalitarians” who foreclosed such transformations.

But during his second term Reagan shifted, recognising that there was a significant price to giving all anti-communist forces carte blanche on such international expectations. And, eventually, most of the communist states of Eastern Europe peacefully became more democratic, so the entire theory was decisively debunked.

Mr Trump goes even further.

He assures American partners they won’t be “lectured” and former tensions will not be continuing.

More significantly, Mr Trump extends this consideration to adversaries, downplaying concerns about human rights abuses by Russia, China and even North Korea, and praising their leaders personally for their supposed toughness and control.

For Mr Trump, these issues simply do not arise.

By contrast, secretary of state, Rex Tillerson distinguishes between “American values,” which he says are unchanging, and “policies”, which he says are ever-changing. “Policy”, which he casts as by definition pragmatic and amoral, in international relations must therefore always trump “values”, which are abstract or relevant only to US domestic affairs.

Rhetorically this goes beyond Kissingerian realism. But, practically, it strongly mirrors Barack Obama’s seemingly more anguished distinction between “values” and “interests”, most clearly articulated in his March 2011 speech on Libya, which he suggested was a rare instance when American values and interests coincided.

Like Mr Trump’s position, Mr Tillerson’s could be seen as squandering the laboriously accumulated American asset of international credibility on human rights and democracy. Yet on closer inspection there seems little meaningful difference between Mr Tillerson’s approach and Mr Obama’s, despite superficially distinct appearances.

Mr Tillerson is arguably just honestly articulating what, perforce, must practically be the essence of great power policymaking, the ideological orientations of its practitioners notwithstanding.

Yet, unlike Mr Trump, Mr Tillerson crucially retains space for transcendent “American values” and defines them similarly to Mr Obama, and both seem to accord them the same – highly limited – relationship to most immediate policies or interests.

Finally, UN ambassador Nikki Haley has her own approach to human rights, and perhaps overall foreign policy, even more divergent from Mr Trump’s. From her platform in New York – including during her April term as president of the UN Human Rights Council – she has thundered against abuses in Syria, Congo, North Korea, Burundi, Cuba and Iran, among others, and issued a scathing condemnation of “the situation in Venezuela”.

Yes, these are all governments that are essentially unfriendly to Washington, but one simply cannot imagine such rhetoric coming from either Mr Trump, who dismisses these issues, or Mr Tillerson, who quarantines them.

Ms Haley’s rhetoric seems more traditionally American, with human rights an important part of Washington’s lookout, but applied more stringently to foes than friends.

However, once these principles are acknowledged and incorporated into the equation, the genie is out of the bottle.

Either human rights are an issue or they are not. For Mr Trump, clearly they are not.

Mr Trump is being widely accused of selectivity for urging international unity in “isolating” and confronting Iran. But he didn’t do so on the basis of human rights.

Even when he spoke of the Iranian people’s “suffering”, “hardship and despair”, and wished for them a “just and righteous government”, it was precisely in the context of Tehran’s destabilising regional policies – especially support for terrorists and extremists, and promoting sectarianism – not its domestic conduct.

The unparalleled butchery in Syria, of which Iran is a principal author, is merely Exhibit A in this well-founded indictment.

The Trump administration – in two out of its three guises, at least – is clearly betting that dispensing with rhetoric about human rights and democracy will enhance other goals such as counterterrorism, burden-sharing and trade. But it may learn, as the Reagan administration did, that this major US asset – the “mother of all soft-power bombs” – was developed and maintained for good reason.

Of course interests and policies will often trump values. But American values are substantial, and they can’t be jettisoned without a surprisingly heavy price.

Hussein Ibish is a senior resident scholar at the Arab Gulf States ­Institute in Washington

On Twitter: @ibishblog

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2007 Osaka

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2009 Berlin

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2011 Daegu

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2015 Beijing

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Name: ARDH Collective
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Arushi Holt (vice-captain) – wing defence / centre (Jumeriah English Speaking School)  

Olivia Petricola (vice-captain) – centre / wing attack (Dubai English Speaking College)

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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.”

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
The Sheikh Zayed Future Energy Prize

This year’s winners of the US$4 million Sheikh Zayed Future Energy Prize will be recognised and rewarded in Abu Dhabi on January 15 as part of Abu Dhabi Sustainable Week, which runs in the capital from January 13 to 20.

From solutions to life-changing technologies, the aim is to discover innovative breakthroughs to create a new and sustainable energy future.

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Specs
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