A woman walks past advertising hoarding for the HS2 high-speed rail link in Birmingham, England on Wednesday. The project, originally announced in 2009, is behind schedule and over budget. EPA
A woman walks past advertising hoarding for the HS2 high-speed rail link in Birmingham, England on Wednesday. The project, originally announced in 2009, is behind schedule and over budget. EPA
A woman walks past advertising hoarding for the HS2 high-speed rail link in Birmingham, England on Wednesday. The project, originally announced in 2009, is behind schedule and over budget. EPA
Shelina Janmohamed is an author and a culture columnist for The National
September 28, 2023
“The railways!” is one of the first answers given when the topic of the British Empire comes up and people ask, what did the British do for the world?
There is a wild irony – some might say hilarity – to the claim that railways were bestowed on India, and to a lesser extent East Africa, as a symbol of Britain’s greatness and benevolence. Nowhere is this more evident than in current events in the UK as the country teeters from one rail-related problem to another.
In 2009, a high-speed rail project called HS2 was announced. This would establish modern rail infrastructure in the north of England and rejuvenate several regions. Its total length was to be built in two parts: 255 kilometres from London to Birmingham, the UK’s second largest city, with a further network of 530 kilometres beyond that. It was costed at £37.5 billion ($39.5 billion). Fourteen years later, however, approximately £40 billion has been spent, the project now has a total cost estimate of £100 billion and, so far, no track has been laid. The British government even announced this week that its HS2 plans could be severely cut back or even cancelled.
A steam train in Agra, Uttar Pradesh, India in 1983. Britain's colonial-era rail network was built with Indian labour and served to export resources out of the country for the empire. Steve McCurry
If the Indian railways were a symbol of Britain’s greatness, then why is it that we can’t apply the same greatness here at “home”?
Perhaps it is because the story of Britain’s prowess in delivering railways to India is really a story about Indian labour, investment and railway management. It was Indians who actually built the railways. In fact, they did such a good job of it, when the British occupied East Africa, guess who they brought to build the railways… yes, the Indians.
It was also the Indians who took the financial investment and risk. The British who invested in the railways made huge profits because the government guaranteed double returns – which would be paid from Indian taxes.
The railways were never contrived as a benefit for the people – instead it was all about making profits. The Indian railways were actually the idea of the East India Company, and Governor-General Lord Hardinge argued that they would be beneficial to the “commerce, government and military control of the country”. Yes, that’s right: the trains were there to take resources out of the interior as quickly and cheaply as possible, and move the British military around to maintain control. The Indians that were moved around were in shoddy third-class accommodation. Talk to a British rail commuter today and they might say they have some resonance with how that feels.
That analysis of how the Indian railways came to be sheds a great deal of light on why railways are so challenging in the UK. It is a bitter pill to swallow but perhaps not as bitter as the other possible analysis: the fact that such grand rail projects linger uncompleted in Britain itself is a sign of a great power now in apparent decline.
I’ll be accused of doing Britain down ... but it is an act of love to address self-delusion, especially when it is so harmful to our current domestic state
The likelihood is that by saying this I’ll be accused of doing Britain down. That’s the generic, knee-jerk reaction to anyone trying to understand what happened and why, and trying to assess how the country is seen by others. As someone of Asian heritage, this backlash is also likely to include accusations of being “ungrateful” for what Britain has bestowed upon me. This itself is rather ironic since my ancestors were likely contributors to the wealth and power the country has enjoyed. So why do I need to be grateful?
It is an act of love to address self-delusion, especially when it is so harmful to our current domestic state, and particularly when it harms our present and future international stature.
In Britain, we need to better understand ourselves. There are lots of reasons for doing so, including honesty, self-awareness, domestic equality, racism and so on. But harnessing the DNA of success for the future is also among them. While many would argue that Britain’s past success and current wealth are based on exploitation and violence, I think it is reasonable to say that there was and continues to be a talent for innovation and production. The question now is how to achieve the success without the exploitation. How do we do this while recognising how international collaboration, talents and resources were fundamental to this?
Being fit for a world that has changed is why we must see how others perceive us – including hearing their experiences of being colonised. Otherwise, how do we make ourselves fit for purpose in this wildly different era? This is no longer the era of Pax Britannica. This is no longer the era of European powers being able to carve up the world on their own whims. There are other states who now wield as much if not more power. This is not to mention the power of corporations – always a love-hate relationship for the British and other empires – that operate in a transnational and almost invisible way that governments simply do not understand.
There is a bittersweet irony to the fact that railways, which used to symbolise the gift of imperial Britain’s “benevolence”, now expose the false narratives of domination and legacy. The optimist in me hopes that this latest rail crisis can instead become a moment when the country looks honestly at itself, about how we really came to be what we are today, and how we plot our course for international success in the future.
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.”