Supporters of Republican presidential candidate and former President Donald Trump cheer during a campaign rally in Rochester, New Hampshire, on Sunday. AFP
Supporters of Republican presidential candidate and former President Donald Trump cheer during a campaign rally in Rochester, New Hampshire, on Sunday. AFP
Supporters of Republican presidential candidate and former President Donald Trump cheer during a campaign rally in Rochester, New Hampshire, on Sunday. AFP
Supporters of Republican presidential candidate and former President Donald Trump cheer during a campaign rally in Rochester, New Hampshire, on Sunday. AFP


Defeating Trump would be like treating the symptom, not the disease


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January 24, 2024

Donald Trump’s decisive victory in the Iowa caucuses and his commanding lead in upcoming primary contests should put to rest the fantasies of those Republicans who still cling to the hope that their party can be rescued from his clutches. That’s not going to happen precisely because the former president’s foes don’t understand his hold over voters.

Frustrated Republicans, known as “Never Trumpers”, and many establishment Democrats continue to operate as if the problem were just the man. They act on their belief that if only he could be beaten or shut down, all would be well, or at least “normal”, in American politics.

There is no question that Mr Trump represents a problem for the United States. He is a pathological narcissist, who is prone to outlandish exaggerations or outright fabrications. He has been called a fraud, a misogynist and an inciter to violence against vulnerable groups. Many have known all of this for more than a decade. And yet despite the best efforts of his own party’s leadership and others to discredit or dislodge him, Mr Trump has only grown in strength even as his rivals have fallen by the wayside.

On Sunday, less than a week after finishing second in the Iowa caucuses, Florida Governor Ron DeSantis bowed out of the race to be the Republican presidential nominee.

There are two major reasons for the party’s failure to rein in Mr Trump. The first is that those seeking to depose him ignore the simple fact that his support base is grounded in the deep discontent that predated his emergence on the national political stage. The second is that because the attacks against Mr Trump emanate from the very institutions and individuals he has targeted, their attacks have only served to reinforce his popularity with his supporters.

While punishment is required, simply defeating Mr Trump and punishing him and his followers isn’t enough

Mr Trump isn’t the first demagogue in the contemporary era to lead a right-wing populist movement. There was the late governor George Wallace’s segregationist American Independence Party in the 1970s, the Moral Majority/Christian Coalition movements of the late 1980s, Pat Buchanan’s “Pitchfork Brigade” in 1988, and the anti-Barack Obama Tea Party and “Birther“ movements. All of these set the stage for Mr Trump’s rise.

More than a half a century ago, many mainly white middle and working-class Americans experienced social, political and cultural dislocations resulting in an unsettling sense of loss of control over their lives and futures.

The 1960s and 70s were especially traumatic for many Americans with the emergence of three transformative movements that shook society, politics and culture: the civil rights movement; the deeply divisive movements both for and against the war in Vietnam; and a cultural revolution that upended accepted social mores.

In the wake of these movements, what then-president Richard Nixon called “the silent majority” reacted: incidents of overt racism or fear of racially motivated violence; displays of hyper-patriotism or a loss of faith in the country, its institutions, and professed values; and finally, a sense of being unmoored in the face of the radical social and cultural change.

For 50 years, Americans played out their traumas in reaction to the stressful changes of those two fateful decades. There were manifestations of racially motivated fear of the “others”, whether African Americans, Latinos, or immigrants. Driven by the pain incurred from our defeats in foreign wars, or losses in jobs due to factory and mine closures, or other economic crises, we witnessed either a hyper-patriotism or a romanticisation of America’s “great past”. And finally, those who felt threatened by the challenges to long-accepted social and cultural values sought certainty, often ending up seeking refuge in the embrace of fundamentalist religious beliefs.

The economic collapse of 2008-2009 and the election of Mr Obama brought these threads together, setting the stage for Mr Trump’s emergence. In a matter of weeks, the stock market fell, erasing the pensions of many middle-class Americans, unemployment doubled, and one in five homes were in danger of foreclosure.

During this period, my brother John Zogby noted that his polling showed that for the first time two thirds of the electorate indicated a loss of hope in the American Dream. And with the election of Mr Obama, Republicans pounced on his race and “foreignness”, raising questions about whether or not Mr Obama was even an American. One of the major proponents of this craze was Mr Trump.

Martin Luther King Jr on the steps of the Lincoln Memorial in Washington in 1963. Getty Images
Martin Luther King Jr on the steps of the Lincoln Memorial in Washington in 1963. Getty Images

While all of the preconditions for Mr Trump’s rise were present and had earlier manifested themselves in other forms, Mr Trump was a masterful entertainer who knew how to exploit the fears and insecurities his public felt and how to project the strength and certainty they craved. He assures his supporters that he understands their plight, and that he alone has the power and resolve to save them. He warns of immigrants who bring violence and take jobs, and of once respected institutions, such as law enforcement, courts and the media.

A decade later, his movement has taken control of the Republican Party and may retake the White House. Despite efforts by the Republican establishment and Democrats, he has only grown stronger.

One reason is that their efforts to hold him accountable for his troubling and unlawful behaviours have relied on the very institutions he accuses of conspiring against him. By questioning the integrity of the courts, the FBI, the media, and of course, Democrats, Mr Trump has successfully inoculated himself against their attacks.

His winning argument with his supporters has been that he alone understands their pain, fears and frustrations, and that he alone can defend them. An attack on him is, therefore, an attack on them. They cling to him and the sense of security and certainty he gives them. Thus, neither being found liable for sexual abuse nor concurrent trials for financial fraud, incitement, mishandling and lying about illegal possession of secret government files will bring him down.

Mr Trump may still lose this election, but his movement will remain and continue to pose a threat of violence, maybe even greater than that of January 6, 2021.

Lawlessness and acts of bigotry cannot be tolerated. While accountability is required, simply defeating Mr Trump and punishing him and his followers isn’t enough. There is no shortcut out of this bind. Instead of demeaning or attacking Mr Trump’s supporters, a concerted effort is needed to address the issues at the root of their insecurities and discontent.

Finding constructive and progressive solutions that demonstrate respect and concern won’t happen overnight, but if efforts aren’t made in this direction, “Trumpism” will only fester and grow.

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.”

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Updated: January 24, 2024, 3:37 PM