Mukesh Kapila is a former UN official who is an emeritus professor at the University of Manchester
April 19, 2024
What is diplomacy? British prime minister Winston Churchill called it “the art of telling people to go to hell in such a way that they ask for directions”. That was in his age of great power politics, in which US president Theodore Roosevelt counselled diplomats to speak softly while wielding a big stick. Not to be outdone, Chinese premier Zhou Enlai saw diplomacy as “a continuation of war by other means”.
It was cynical, perhaps, but an acknowledgement that diplomacy is the art of using power to advance national interests. Nevertheless, states realised that inter-state competition can get dangerously messy. So emerged multilateral diplomacy dressed in the language of a rules-based international order covering all dimensions from trade and development to war and peace. Underpinned by a plethora of international treaties, laws, norms and institutions.
This made the world better and safer. But only until decolonising nations realised that the new order was dictated by the same powerful interests that relegated them to an undignified, unequal status.
The disgruntlement is reflected in endless UN Security Council reform debates. Also in tit-for-tat squabbles at the World Trade Organisation, battles over a new pandemic treaty through the World Health Organisation, ill-tempered arguments at the UN Human Rights Council, heated climate negotiations at the UNFCC and record numbers of vicious conflicts without end.
Diplomatic influence flows from power. But even when this is accompanied by coercive measures such as sanctions or military interventions, it is only effective if the target is susceptible. This is increasingly not the case, with countries feeling disrespected and marginalised. Resistance through hyper-nationalism follows and globalism is threatened by regional blocs and ad hoc coalitions, such as Brics. Longstanding China-US rivalry and the Russia-Ukraine war sharpen global discord.
The consequences are evident in the Gaza-Israel war and associated Hezbollah and Houthi belligerence, where the diplomacy of the world’s biggest powers is struggling. The resulting world disorder is the setting for a new form of diplomacy: humanitarian.
Humanitarian diplomacy originally emerged when aid was weaponised in the ideological struggle of the Cold War. It became more important after the misjudged western responses to 9/11, including the so-called War on Terror. Global outrage grew over the abuse of civilians caught in numerous crossfires and inflamed by alienating rhetoric from protagonists.
The scarcity of humanitarian aid in Gaza has exacerbated the impact of Israel's war against Hamas for Palestinian civilians. Reuters
Humanitarian diplomacy originally emerged when aid was weaponised in the Cold War
Humanitarian diplomacy has, therefore, been mobilised in the battle for hearts and minds. That has occupied my own career. This took me, as head of an EU mission, to famine-affected North Korea to seek access for the World Food Programme and, as UN co-ordinator in Sudan, to mediate between Khartoum and the rebellious south to allow aid down the Nile. Or push the Kosovo/North Macedonia border to allow refugees escape Serbian bombing. And accompany West African peacekeepers to get aid convoys past murderous militia checkpoints in Liberia.
A variant of humanitarian diplomacy is dubbed “health diplomacy”. Thus, I called on the legitimacy conferred by my medical qualifications to argue with the Taliban to allow male doctors to treat women at Kabul’s iconic Rabia Balkhi maternity hospital. The excuse of a Balkans surgical training programme under WHO auspices allowed the Bosnian-Serb divide to be bridged by crossline referrals of the war-wounded. This led to a wider “health as a bridge for peace” initiative that found expression in other conflicts.
But we saw no need to assign a grand label like humanitarian diplomacy to the everyday struggle to assist the millions caught amidst unforgiving crises. It was a given that all humanitarians must be diplomats to get anything done.
Our principal learning was that effectiveness depended on the legitimacy of the platform from which humanitarian persuasion was conducted. The consistent stance of the lead agency or individual was essential to win trust. Good mediators were humble, and heard, not seen. The sticks deployed by humanitarian diplomats required sensitivity, not finger-wagging, name-shaming or arm-twisting, which is so much the mode nowadays.
I understood that while soft humanitarian and hard-nosed political diplomacy fed each other, explicit linkage was undesirable because face-saving cover must be provided for the losing side making the most concessions. Otherwise, the brokered deal broke down before the ink had dried on the paper. Persistence was also vital as humanitarian ceasefires and access agreements often failed.
However, remarkable was not how much we failed, but how often we succeeded to inject a degree of humanity into a context of brutality. Unfortunately, world disorder makes today’s humanitarian diplomacy much more difficult.
To start, the UN is no longer undisputed as a global good, thereby side-lining its good offices function. So we see crucial Gaza negotiations contracted out to interested states parties such Qatar and US. Elsewhere, with considerable outside meddling in the Sudan civil war, there is little unity towards ending this horror. Other crises, as in the Democratic Republic of the Congo, are also handicapped by conflict-fuelling interference.
When unconventional characters such as the Taliban emerge in Afghanistan, our diplomatic frameworks cannot deal with them. Humanitarian diplomacy also makes heavy weather where conflict and criminality intersect, as in Haiti.
Why is humanitarian diplomacy losing leverage? Perhaps this is because the western-driven humanitarian model based on humanity, neutrality, impartiality and independence has ruptured for several reasons.
First, by nations operating double standards in selective responses to different contexts whether Ukraine or Sudan. If all lives are not seen as equally sacred, the sanctity of humanitarianism itself is challenged.
Second, the posture of humanitarians has evolved. Once accused of silence in the face of atrocities as in the Rwanda genocide or the bloody Sri Lankan strife, their excuse was that neutrality allowed access to all sides. But as humanitarian space shrinks, humanitarians are pressured to speak up. That is evident in trenchant condemnation by UN agencies of those who cause Gazan suffering, and Israel’s counter against the UN Relief Works Agency (UNRWA). The Red Cross/Red Crescent struggles with similar dilemmas.
Third, new concepts raise impossible expectations. Suffering has been re-cast as human rights violations and humanitarians urged to go beyond palliatives to solve underlying problems. Worthy as that is, conflating the divergent perspectives of rights activists, humanitarians and sustainable development creates confrontation. The acute relief of suffering is no longer the undisputed over-riding imperative.
Fourth, humanitarian independence has corroded. Most large aid agencies are funded by governments, and those who pay the piper call the tune. Rich emerging powers copy western role models to instrumentalise humanitarian action for foreign policy objectives.
Fifth, humanitarian agencies worry about their public image even as more tales of misconduct emerge from within their ranks. A lively social media sets tone and trend and is quick to censure. With demands for accountability, transparency and openness, behind-the-scenes diplomacy is less trusted.
The increasing discontent with conventional humanitarianism cannot be ignored, and equally pointless would be propping-up a failing status quo. Humanitarians would be better occupied preparing new models for the new dispensation that will emerge from current disorder, even if this takes time.
Accompanying the change must be a new humanitarian diplomacy with laser-like focus on helping those who suffer – anywhere and everywhere. Quietly but consistently. Not on yet more shrill demonisation of those causing the suffering. That may be cathartic for a justifiably-outraged world but renders us deaf without shifting the hearts and minds that matter.
To salvage our humanity, the new humanitarian diplomats will need, therefore, something of the horse-whisperer or forgiving saint in them, even as we live through the most mistrustful of times.
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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.”
Director: Romany Saad Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari
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
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Employment lawyer Meriel Schindler of Withers Worldwide shares her tips on achieving equal pay
Do your homework
Make sure that you are being offered a fair salary. There is lots of industry data available, and you can always talk to people who have come out of the organisation. Where I see people coming a cropper is where they haven’t done their homework.
Don’t be afraid to negotiate
It’s quite standard to negotiate if you think an offer is on the low side. The job is unlikely to be withdrawn if you ask for money, and if that did happen I’d question whether you want to work for an employer who is so hypersensitive.
Know your worth
Women tend to be a bit more reticent to talk about their achievements. In my experience they need to have more confidence in their own abilities – men will big up what they’ve done to get a pay rise, and to compete women need to turn up the volume.
Work together
If you suspect men in your organisation are being paid more, look your boss in the eye and say, “I want you to assure me that I’m paid equivalent to my peers”. If you’re not getting a straight answer, talk to your peer group and consider taking direct action to fix inequality.
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Uefa Champions League last 16, first leg
Liverpool v Bayern Munich, midnight, Wednesday, BeIN Sports