Why are liberals such bad losers? That was my thought after seeing much of the coverage of the election of Prabowo Subianto as President of Indonesia last week.
At the end of January, I had warned that should Mr Prabowo, currently the country’s defence minister, win, “he will not be guaranteed a friendly reception in some quarters”. And sure enough, these were some of the headlines in western-dominated international media: “Prabowo wins. Does Indonesian democracy lose?”, “Prabowo’s win is dismal news for democracy”, “Democracy, interrupted in Indonesia”, and “In Indonesia elections, fears grow that democracy is sliding”.
One might think that a rather ungracious way to respond to the result of the world’s largest single-day election, as well as being hugely condescending to the estimated 57-60 per cent of Indonesian voters who cast their ballots for him. As for fears of democratic backsliding: well, Mr Prabowo may be a former general and has at times cultivated something of a “strongman” image, but he has stood for the vice presidency once and the presidency three times – he has shown himself more than willing to accept the will of the people. Isn’t it a bit strange that the very moment he wins power through a commanding democratic mandate, the first reaction of some is to warn of the danger to democracy?
Indonesians wanted Mr Prabowo to be president, they voted for him, and he won: isn’t that democracy in perfect working action? The real danger to democracy would surely be if he won a majority of votes, and then didn’t become president, although it seems some of his critics would have preferred that outcome.
But we’re already seeing the same in advance of the American presidential election due to be held in November.
I do understand the concerns of liberals. I used to be one. But I respect the legitimacy of other political creeds
Dire warnings have been issued about what a second Donald Trump presidency might entail, not least the complete politicisation of the country’s institutions; although when there are already elections for school boards, sheriffs and district attorneys in many US states, as well as the confirmation of Supreme Court justices having become highly partisan, it’s hard to argue that has not already happened to a great degree. But the question has been asked frequently: can US democracy survive four more years of the Donald? Canadians are apparently particularly concerned; two thirds of them said the answer was “no” in a poll this January.
I take a rather different view. The American people have had no shortage of information about Mr Trump. They remember his presidency very well. If they vote him to power (assuming he is the Republican candidate) knowing full well what a second term is likely to entail, that is their democratic right; and something will have gone very wrong if that is not reflected in the result.
There’s a pattern here, a by-now entirely predictable one. Whenever liberals – I use the term in the very broadest sense – see an election result they don’t like, they say that democracy is in trouble. Perhaps they might do better to reflect a little. After all, if their values are so manifestly superior, they ought to be winning “big league”, as Mr Trump would put it (some initially misheard it as “bigly”), all the time. But the rise of populism on both the left and the right has been one of the most noticeable trends in politics around the globe over the past two decades.
Do liberals think that people who vote for these parties, or causes that are considered populist, are stupid, or easily misled? Some definitely believe that. An article on the news aggregator CapX last November just put it more bluntly than most, when it asked: “Are Brexit voters thick?”
Such supercilious attitudes are often hidden – they’re not polite – but people do know when they’re being patronised. In 2016, shortly before the brash and populist Rodrigo Duterte was elected president of the Philippines – a prospect that was greeted with horror internationally – I wrote a column in these pages saying that liberal democracy might be having a difficult time in the country, but democracy was doing just fine.
A few days later, a Philippine ambassador came up to me at a conference in Kuala Lumpur. “Thank you for writing that,” she said. I was a little surprised; she was then running a human rights NGO and would have been an unlikely Duterte supporter. But I think that she didn’t like her country being attacked, and she accepted that while the former Davao City mayor may have had a record of making outrageous comments, his support was genuine and widespread. If he won, as he did, it would be a democratic result.
I also believe that the ambassador would have been aware, as too many liberals are not, that they are often seen as catering to the anxieties of higher-income elites and that they have forgotten the centrality of class in forging a politics that lifts all.
I do understand the concerns of liberals. I used to be one, with both a big and a small “l”, when I lived in the UK. But I don’t believe in imposing my beliefs on others, and I respect the legitimacy of other political creeds. That cannot be said of the swathes of liberal opinion who are dismayed by Mr Prabowo’s election and will be sent totally doolally if Mr Trump returns to the White House. So vehement is their opposition to the election of figures such as these, and so strong is their insistence that such results cannot be right, that one has to ask: do they really believe in democracy at all?
In fact, if they won’t accept the verdicts of the people, aren’t they, and not the likes of Mr Prabowo and Mr Trump, the real threat to democracy?
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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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.”
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
MATCH INFO
Uefa Champions League, last-16 second leg
Paris Saint-Germain (1) v Borussia Dortmund (2)
Kick-off: Midnight, Thursday, March 12
Stadium: Parc des Princes
Live: On beIN Sports HD
Fight card
Bantamweight
Siyovush Gulmamadov (TJK) v Rey Nacionales (PHI)
Lightweight
Alexandru Chitoran (ROM) v Hussein Fakhir Abed (SYR)
Catch 74kg
Tohir Zhuraev (TJK) v Omar Hussein (JOR)
Strawweight (Female)
Weronika Zygmunt (POL) v Seo Ye-dam (KOR)
Featherweight
Kaan Ofli (TUR) v Walid Laidi (ALG)
Lightweight
Leandro Martins (BRA) v Abdulla Al Bousheiri (KUW)
Welterweight
Ahmad Labban (LEB) v Sofiane Benchohra (ALG)
Bantamweight
Jaures Dea (CAM) v Nawras Abzakh (JOR)
Lightweight
Mohammed Yahya (UAE) v Glen Ranillo (PHI)
Lightweight
Alan Omer (GER) v Aidan Aguilera (AUS)
Welterweight
Mounir Lazzez (TUN) Sasha Palatnikov (HKG)
Featherweight title bout
Romando Dy (PHI) v Lee Do-gyeom (KOR)
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Last 10 NBA champions
2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2
UAE rugby in numbers
5 - Year sponsorship deal between Hesco and Jebel Ali Dragons
700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams
Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams
Dh1.8m - Dubai Hurricanes' overall budget for next season
Dh2.8m - Dubai Exiles’ overall budget for next season
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
PFA Team of the Year: David de Gea, Kyle Walker, Jan Vertonghen, Nicolas Otamendi, Marcos Alonso, David Silva, Kevin De Bruyne, Christian Eriksen, Harry Kane, Mohamed Salah, Sergio Aguero
The specs
Engine: 2x201bhp AC Permanent-magnetic electric
Transmission: n/a
Power: 402bhp
Torque: 659Nm
Price estimate: Dh200,000
On sale: Q3 2022