A man smokes a hookah as he watches Lebanon's Hezbollah leader Sayyed Hassan Nasrallah speak on television inside a coffee shop in the port city of Sidon, Lebanon. Reuters
A man smokes a hookah as he watches Lebanon's Hezbollah leader Sayyed Hassan Nasrallah speak on television inside a coffee shop in the port city of Sidon, Lebanon. Reuters
A man smokes a hookah as he watches Lebanon's Hezbollah leader Sayyed Hassan Nasrallah speak on television inside a coffee shop in the port city of Sidon, Lebanon. Reuters
Michael Young is a Lebanon affairs columnist for The National
September 29, 2021
Throughout the Middle East, armed groups or militias have come to play leading roles in states. In Yemen, the Houthis took over the capital Sanaa and now control large swathes of the country. In Iraq, the Popular Mobilisation Forces, like Moqtada Al Sadr’s Mahdi Army before them, are a major actor in Iraq’s political process and have significant influence over major government decisions.
Yet one country, Lebanon, stands out as a model of how former militia leaders have taken over the state. A majority of sectarian military leaders became pillars of the post-war order at the end of the country’s civil war in 1990. This happened at a time when centralised states were still the norm in the region. But that is no longer true, as countries throughout the Arab world have been shattered by conflict.
Under regular conditions, there is a tendency to see a sharp dichotomy between militia commanders who rule during wartime and civilian leaders who return to power once the fighting ends. However, that’s not what we are witnessing in a number of countries in the Middle East and North Africa today, where non-state actors such as militias have gained the upper hand on state institutions, even taking them over.
Lebanon institutionalised the authority of former militia leaders by wrapping the state around their interests
Why should Lebanon matter? Precisely because it was the first country to show that militia leaders could be recycled after a war into legitimate national figures, regardless of the crimes they committed during conflict. Leading a militia became a path to social promotion for many individuals previously on society’s periphery.
More importantly, Lebanon institutionalised the authority of former militia leaders by wrapping the state around their interests and turning the country into a host they could feed upon. Where militia leaders had profited from economic networks formed during the war, they now realised that it paid to embrace peace because their financial stakes would be guaranteed, even expanded, in the post-war order.
The way this was done was twofold. Former militia leaders became ministers, giving them access to the massive funds generated by public contracts for reconstruction. They also allied themselves with a class of businessmen and bankers, creating a nexus of power that continues to this day. Businessmen would fund electoral campaigns, in exchange for political backing or a parliamentary seat. Bankers built ties with sectarian leaders in order to protect their financial interests in government decisions.
A woman tosses rose petals to welcome tankers carrying Iranian fuel, upon their arrival from Syria in Baalbeck, in Lebanon's Bekaa valley, on September 16. AFP
Throughout the region, plenty of militia leaders can now aspire to pursuing a similar path. More significantly, if the gun can lead to wealth and advancement, this makes it much more probable that post-war periods in several Arab countries will not bring back normality at all. They will encourage efforts by wartime actors to hijack states and perpetuate their power and illicit activity in peaceful settings.
That is what makes the return of functional states so difficult throughout the region. Whether it is Iraq, Syria, Yemen, Lebanon, or Libya, wartime actors have little incentive to restore the powers and institutions of the state. On the contrary, they thrive in environments in which states are weak and they can fill the vacuum.
The costs of such a situation are dramatic, however, and they are bound to get worse. Already, many states in the region are ill-equipped to transition to a post-oil era, in which rentier systems of government are unsustainable. Major challenges, such as climate change, have existential implications in parts of the region. Yet fragmented states will be wholly unable to address such issues.
If Lebanon was a vanguard in militia control over states, it has also proven to be a bellwether of the state collapse that derives from this. The wartime leaders and their business allies have sucked the state dry, so that it is barely able to import basic necessities. Yet the determination of the cartel in power to protect its interests has pushed its members to block all reform, indefinitely prolonging a crisis that should have taken much less time to resolve.
Moreover, militia rule in places such as Iraq and Syria is characterised by debilitating levels of violence to preserve the status quo. Because some of the armed groups are tied to powerful regional actors, governments in place cannot dislodge them. For example, protests in Iraq against Iran’s influence have been met with savage repression, while Syrian militias have maintained a vast ecosphere of exploitation.
In Lebanon, an additional irony is being played out. The post-war system may have been dominated by former militia leaders, but its principal protector today is another militia, Hezbollah, which was not initially part of the post-war carve-up. The former militiamen and businessmen have been reliant on Hezbollah to protect their system, but in the process they threaten to be marginalised.
In other words, systems of rule by former militiamen are inherently unstable because they are not adept at governing states and resolving problems. Hezbollah, which favours such incompetent orders for its own survivability, has come to the rescue of Lebanon’s post-war cartel, because if it were to fail, this would constrain the party’s own margin of manoeuvre.
As Arabs in these countries look at their future, what they see cannot reassure them. To be robbed in peacetime by the same people who persecuted them during wartime is the moral of their story, and their destiny. Until Arab populations push back against such realities, their world will remain a dark corner in the global picture.
hall of shame
SUNDERLAND 2002-03
No one has ended a Premier League season quite like Sunderland. They lost each of their final 15 games, taking no points after January. They ended up with 19 in total, sacking managers Peter Reid and Howard Wilkinson and losing 3-1 to Charlton when they scored three own goals in eight minutes.
SUNDERLAND 2005-06
Until Derby came along, Sunderland’s total of 15 points was the Premier League’s record low. They made it until May and their final home game before winning at the Stadium of Light while they lost a joint record 29 of their 38 league games.
HUDDERSFIELD 2018-19
Joined Derby as the only team to be relegated in March. No striker scored until January, while only two players got more assists than goalkeeper Jonas Lossl. The mid-season appointment Jan Siewert was to end his time as Huddersfield manager with a 5.3 per cent win rate.
ASTON VILLA 2015-16
Perhaps the most inexplicably bad season, considering they signed Idrissa Gueye and Adama Traore and still only got 17 points. Villa won their first league game, but none of the next 19. They ended an abominable campaign by taking one point from the last 39 available.
FULHAM 2018-19
Terrible in different ways. Fulham’s total of 26 points is not among the lowest ever but they contrived to get relegated after spending over £100 million (Dh457m) in the transfer market. Much of it went on defenders but they only kept two clean sheets in their first 33 games.
LA LIGA: Sporting Gijon, 13 points in 1997-98.
BUNDESLIGA: Tasmania Berlin, 10 points in 1965-66
Porsche Taycan Turbo specs
Engine: Two permanent-magnet synchronous AC motors
T20s 52; Runs 1,456; 100s 1; 50s 7; Avg 31.65; Best 116 not out
The studios taking part (so far)
Punch
Vogue Fitness
Sweat
Bodytree Studio
The Hot House
The Room
Inspire Sports (Ladies Only)
Cryo
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.”
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Warner 151 not out, Burns 97, Labuschagne 55 not out
Pakistan 240
Shafiq 76, Starc 4-52
Men’s singles
Group A: Son Wan-ho (Kor), Lee Chong Wei (Mas), Ng Long Angus (HK), Chen Long (Chn) Group B: Kidambi Srikanth (Ind), Shi Yugi (Chn), Chou Tien Chen (Tpe), Viktor Axelsen (Den)
Women’s Singles
Group A: Akane Yamaguchi (Jpn), Pusarla Sindhu (Ind), Sayaka Sato (Jpn), He Bingjiao (Chn) Group B: Tai Tzu Ying (Tpe), Sung Hi-hyun (Kor), Ratchanok Intanon (Tha), Chen Yufei (Chn)