Plumes of smoke rise into the sky after fighting between the Taliban and Afghan security personnel in Kandahar, Afghanistan, southwest of Kabul, on Thursday, August 12, 2021. AP
Plumes of smoke rise into the sky after fighting between the Taliban and Afghan security personnel in Kandahar, Afghanistan, southwest of Kabul, on Thursday, August 12, 2021. AP
Plumes of smoke rise into the sky after fighting between the Taliban and Afghan security personnel in Kandahar, Afghanistan, southwest of Kabul, on Thursday, August 12, 2021. AP
Plumes of smoke rise into the sky after fighting between the Taliban and Afghan security personnel in Kandahar, Afghanistan, southwest of Kabul, on Thursday, August 12, 2021. AP


If Kabul falls, it will be America's 'Suez moment'


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August 14, 2021

This is a moment of complete disaster for Afghanistan and for families across the country. The failure of the US to stay the course has challenged the credibility of American power and could have repercussions thousands of miles away.

The precipitous withdrawal is a demonstration of a lack of the strategic patience essential to being a credible ally. We have pulled the rug from under the feet of our Afghan partners and others are watching.

Many of us gave all we could and for some the toll was impossibly high. The operation tore families apart, left children orphans and parents to cry alone. For me, the memory that will haunt me every time I carry my child is that of a father I saw carrying his bloodied daughter as he desperately looked for help.

Over two decades, through failures and hardship, we had changed the odds. It stopped being the US or Nato fighting the enemy, but instead the Afghan police and army. We built trust and gave the support they needed to sustain operations.

We trained these forces to fight as we do, not just with us. We helped them to learn the strength of slim supply lines, air power, and the ability to partner with allies. Our air support and logistics chains provided the capability to succeed.

The US is set to leave Afghanistan by September. Reuters
The US is set to leave Afghanistan by September. Reuters

US contractors serviced the helicopters we used, and supplied the weapons we all shared. That made us interoperable in battle, and made the Afghans dependent. So when those contractors were withdrawn as a result of the withdrawal deadline, the helicopters were grounded and the air support gone. Without that, our allies were left outmatched and untrained for what was to come.

Worse, our presence was a force multiplier. Nato 10,000-strong deployment was the spine of the Afghan security forces, giving confidence of an enduring commitment to the almost 400,000 Afghan police and army. For us, that’s an efficient force ratio of almost 40:1 and it gave us time to train up the logistics and technical skills for complex kit.

That all gave the alliance the sustainable standoff that saw Afghan civic institutions grow, slowly, in the shadow of a government that was learning the ropes. It was not perfect but time was allowing the culture of cooperation to sink roots into communities across the nation. Earlier this year, Kandahar, the capital of the south, had girls’ schools, colleges and opportunity.

But, instead of waiting like we did in Germany, South Korea, Japan and Cyprus, we have pulled out. The 2,500 US soldiers that were pulled out of Afghanistan were barely a tenth those deployed constantly in the Gulf and, since combat operations ceased for the Nato troops a number of years ago, barely at greater risk.

The last British soldier killed in combat died in 2013 and it has been a few years since US troops had been engaged in combat. Those few thousands of troops that were left were knitting together the army and police that held the state together.

Now the future looks all too predictable. We have seen this play out before. Ungoverned space allows for the growth of terror groups such as ISIS that threatened the Middle East, or the East Turkestan Islamic Movement that seeks to break Xinjiang away from China, both of which have been reported to be active in Afghanistan recently.

Could this be America's Suez moment – that point when it demonstrates to the world it no longer has the will, or perhaps ability, to play the role it has held for the past 80 years? America's allies and friends will hope not. US leadership is essential to the freedoms we enjoy and the prosperity we now expect.

Whatever this is, it’s a massive step change in US, and Nato, credibility and it changes the dynamics of our impact around the world. Some allies will question us, and that will leave us all weakened.

While our government should be updating counterterrorism plans the first task of administrations in Nato is to update strategic alliances and rethink our commitments to make it clear they matter. While others use loans and arms to buy support, we can open up investment, trade and travel.

We can rebuild our partnerships and alliances, as people from every nation demonstrate daily, people yearn for the freedom we offer, not the silence of tyranny, but it will mean investing in supporting friends and building coalitions. It will cost money and take time but the reward is a world of free people to trade with, share our values and not live in fear.

SHAITTAN
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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.”

Heather, the Totality
Matthew Weiner,
Canongate 

Updated: August 14, 2021, 11:33 AM