Britain’s Foreign Office faces an official inquiry into its handling of Afghanistan, but already it is clear that its reputation has suffered severe damage.
As an institution, the Foreign Office once drew strength from calamity. The outbreak of the First World War was nothing but a diplomatic disaster. Yet, cast in stone in the walls of the building is a tribute to its leader when the conflict broke out, Edward Grey. “By uprightness of character, wisdom in council and firmness in action, he won the confidence of his countrymen, and helped to carry them through many and great dangers,” it proclaims.
Foreign Secretary Dominic Raab was photographed walking past the plaque last week. He has borne the brunt of criticism for the failure to see and react to events unfolding in Afghanistan. This time there can be no succour for the foreign affairs mandarins to draw.
The main reason is that just a year ago, the Foreign Office underwent a massive reorganisation under Mr Raab. It can now be seen that the structures, outlook, mindset and planning apparatus created then are not delivering. Mr Raab’s own leadership is failing to bear scrutiny. He had an open hand to shape the new Foreign Commonwealth and Development Office (FCDO) as he saw fit.
Much energy was about how personnel were moved from traditional specialisms in either foreign policy or development into combined roles. The new board, technology systems and rebranding absorbed many more working hours. The focus was strictly on how the institution would function. The website is filled with organograms and lists of agencies under its umbrella. You can, for instance, easily find out about the FCDO's energy consumption but not so much on what it is trying to do.
As former British prime minister Tony Blair said about the September 11, 2001 attacks, “all previous analysis has been made redundant”. A new grip must similarly be asserted over regional policy or extremist ideology and terrorism.
Looking internally at exactly the wrong time means the Foreign Office now struggles to show that it can make that root and branch shift. That is because the doctrines and mantras that have driven foreign policy are no longer viable responses. Take the doctrine of "responsibility to protect" for example.
"R2P", as it was popularly known, was espoused by Mr Blair, which essentially called for nations to engage in "humanitarian intervention" where it was required. In a 1999 speech in Chicago, he said: "The most pressing foreign policy problem we face is to identify the circumstances in which we should get actively involved in other people's conflicts." Evidently, R2P is something that belongs to an era of unipolar global power and plentiful resources.
The UK's ambition to lead even European affairs has since been split asunder, particularly by the 2016 Brexit vote.
Today, the aid budget the Foreign Office has at its disposal is not a tool that can be yielded to ensure or underpin alliances. Notwithstanding the fact that the UK cut its overseas spending in reaction to the Covid-19 pandemic, there is great competition for loyalties. Structurally the Chinese Belt and Road Initiative is but one of many competitors.
It is easy to see Afghanistan as a failure of intelligence, but that would be a misreading the role of the spooks. It is the Foreign Office, with its bigger, weightier policy and delivery body that draws from the information and uses the spies to achieve its goals.
The 2020 Integrated Review set out a role for the UK as a kind of quick-footed referee between nations, seeking to deliver diplomatic investment as well as effective short and long-run alliances and understanding between states. This approach relies on making well-timed choices on where to put diplomatic resources and how to orchestrate the situation to deliver the optimal objectives. It requires openness to circumstances but also a great dedication to the diplomatic arena.
The Afghanistan crisis highlighted that security and counter-extremism cannot be divorced from the issues of migration and development
Mr Raab has complained that he has been depicted both as someone not fully engaged with the challenges and as an overly controlling workaholic manager. His very need to exercise every decision calls into question the need for six junior ministers under his command. But the issue is not about Mr Raab. It is about how foreign and security policy is executed.
This is a moment for a new mission statement that puts purpose behind policy and then allots manpower and resources to deliver the goals. It would help to have guiding principles. It would be a good idea to find a way to junk some of the ideas that work in theory but not in practice.
The Afghanistan crisis highlighted that security and counter-extremism cannot be divorced from the issues of migration and development. The UK has great assets of history and understanding with many frontline nations. Behind the headlines about the Taliban, there is already a great scramble to ensure that the right support is in place for Pakistan as destabilisation spreads. The spillover is already happening, which is why the countries around Afghanistan have closed their borders.
The UK promised a tilt to the Indo-Pacific in the Integrated Review strategic outlook. Recent weeks have shown the desperate need for the Foreign Office to be at the forefront of that drive. Certainly, this was no time to be navel gazing at the internal reporting systems and the make-up of its managing board.
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.”
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
UAE currency: the story behind the money in your pockets
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
New process leads to panic among jobseekers
As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.
“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.
Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE.
“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.
“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”
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500 People from Gaza enter France
115 Special programme for artists
25 Evacuation of injured and sick
U19 World Cup in South Africa
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
UAE squad
Aryan Lakra (captain), Vriitya Aravind, Deshan Chethyia, Mohammed Farazuddin, Jonathan Figy, Osama Hassan, Karthik Meiyappan, Rishabh Mukherjee, Ali Naseer, Wasi Shah, Alishan Sharafu, Sanchit Sharma, Kai Smith, Akasha Tahir, Ansh Tandon
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
SANCTIONED
- Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
- Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB.
- Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.
- Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
- Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.