G7 leaders watch a skydiving demo during their summit at Borgo Egnazia, Italy, this week. AP
G7 leaders watch a skydiving demo during their summit at Borgo Egnazia, Italy, this week. AP
G7 leaders watch a skydiving demo during their summit at Borgo Egnazia, Italy, this week. AP
G7 leaders watch a skydiving demo during their summit at Borgo Egnazia, Italy, this week. AP


The West led the old world order. Now, it should join the emerging one


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June 20, 2024

When the tectonic plates shift in geopolitics, sometimes it’s rapid and noticeable: think how swiftly the communist regimes in Eastern Europe fell in 1989 and 1990 with the ending of the Cold War. At other times, it’s slower but still inexorable.

We are seeing another, equally dramatic, shift occurring now – the decline of the old world order, and the emergence of the new – illustrated by a series of recent events.

The joint communique issued at the end of the Ukraine peace conference in Switzerland last weekend was signed by 78 countries, but just as much attention was paid to those attending that didn’t do so. Those “key global powers” included Brazil, India, Indonesia, Mexico, Saudi Arabia, South Africa, Thailand and the UAE.

I discussed why Ukrainian President Volodymyr Zelenskyy has failed to gain greater traction with many Global South countries with one of South-East Asia’s top security officials last week. “The West thinks its problems are the world’s, but the world’s problems are not theirs,” he told me.

The official also pointed to the answer a former Indonesian foreign minister had given at a private meeting recently, when asked why Jakarta wasn’t more supportive of Ukraine. “Well,” he began, “it’s a long way away.”

It’s not that people in the region don’t care; but they don’t see any reason to give in to American or European pressure to take sides in a dispute in another continent that they view as none of their business.

A majority of countries in South-East Asia are more interested in the prospect of joining the Brics group – named after Brazil, Russia, India, China and South Africa – which now has nine members, including the UAE and Egypt, and which aims to promote a more multipolar world order.

Chinese Premier Li Qiang meets Australian Foreign Minister Penny Wong and South Australian Premier Peter Malinauskas in Adelaide this week. EPA
Chinese Premier Li Qiang meets Australian Foreign Minister Penny Wong and South Australian Premier Peter Malinauskas in Adelaide this week. EPA
Is this the way US hegemony ends, to paraphrase TS Eliot, not with a bang, but a long drawn-out whimper?

The latest to announce their intention to join was Malaysian Prime Minister Anwar Ibrahim. “We have made our policy clear and we have made our decision. We will start the formal procedures soon. As far as the Global South is concerned, we are fully supportive,” he said in an interview on Sunday. About 40 countries want to follow suit, according to officials in Russia, the current Brics chair.

Robert O’Brien, who served as former US president Donald Trump’s national security adviser, has just published an essay in which he recommends that the US decouple from China and consider sending the entire Marine Corps to the Asia-Pacific. But Australian Prime Minister Anthony Albanese and his New Zealand counterpart, Christopher Luxon, appear not to have read it – going by the friendly smiles they displayed during Chinese Premier Li Qiang’s visits to their countries in the past few days.

New agreements on trade and the environment were signed in New Zealand, while Mr Li said relations with Australia were “back on track” and Mr Albanese hailed “constructive” talks and a “revitalised” bilateral engagement.

Contrast this with the recent G7 summit in Italy, where all the leaders – bar one – of what are supposed to be the developed world’s most important countries are facing mammoth challenges domestically.

The host, Giorgia Meloni, was the only western leader present riding high, after her party topped Italy’s polls in the European Parliament elections this month. Ms Meloni’s Brothers of Italy are variously described as “far right”, or more politely, “arch-conservative”. Are theirs the values that the West now regards as universal and wishes to export to the rest of the world?

This was presumably not what US President Joe Biden had in mind when he convened his “Summits for Democracy”. But we haven’t heard much about them recently, which is unsurprising considering how US support for Israel in Gaza has polarised world opinion and the chorus of those declaring an end to American exceptionalism continues to swell.

From now on, whoever wins the next US presidential election, wrote one Bloomberg contributor this week, America will “behave as just another Great Power using its awe-inspiring might to serve a narrow self-interest”.

This is a highly significant change in itself. Still more remarkable was an essay published on Tuesday by the highly respected Scottish-American historian Niall Ferguson. Mr Ferguson has been describing the relationship between America and China as “Cold War II” since 2018. Naturally, he wants the US to triumph, just as it did over the Soviet Union in 1989.

“But it only recently struck me that in this new Cold War, we – and not the Chinese – might be the Soviets,” he wrote.

He singles out what he sees as an excessive budget deficit, too much government intervention in the economy, “a military that is simultaneously expensive and unequal to the tasks it confronts”, “gerontocratic leadership”, which he says was one of the “hallmarks of late Soviet leadership”, “total public cynicism about nearly all institutions”, mass deaths from addiction and a healthcare system that has become bloated and dysfunctional “even as the political and cultural elite double down on a bizarre ideology that no one really believes in”, and “a population that no longer regards patriotism, religion, having children, or community involvement as important”.

“Are we the Soviets?” he concludes. “Look around you.”

Is this the way US hegemony ends, to paraphrase TS Eliot, not with a bang, but a long drawn-out whimper? It’s interesting to note that Mr Ferguson, a conservative, uses the term “degenerate” to diagnose America’s condition, a word just as likely to spring from the lips of former Russian president Dmitry Medvedev as an accusation against the West in general.

I’m not going to make any moral judgement. But if Mr Ferguson and his allies don’t want the US – or the West more broadly – to lose “Cold War II”, they should reflect that there’s still time to chart a new course.

They could reject that very framing, and instead of railing at their loss of influence they could work with Brics and the Global South. Just because the old order they dominated is palpably fading, as recent events show, that doesn’t mean they can’t be part of the new emerging one.

The world lost a chance to unite after the disintegration of the Eastern Bloc. As the tectonic plates shift once more, let’s try not to lose another.

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

Griselda
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ARGENTINA SQUAD

Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada
Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez

SPECS
%3Cp%3EEngine%3A%20Twin-turbocharged%204-litre%20V8%3Cbr%3EPower%3A%20625%20bhp%3Cbr%3ETorque%3A%20630Nm%3Cbr%3EOn%20sale%3A%20Now%3Cbr%3EPrice%3A%20From%20Dh974%2C011%3C%2Fp%3E%0A
PROFILE OF INVYGO

Started: 2018

Founders: Eslam Hussein and Pulkit Ganjoo

Based: Dubai

Sector: Transport

Size: 9 employees

Investment: $1,275,000

Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

Kamindu Mendis bio

Full name: Pasqual Handi Kamindu Dilanka Mendis

Born: September 30, 1998

Age: 20 years and 26 days

Nationality: Sri Lankan

Major teams Sri Lanka's Under 19 team

Batting style: Left-hander

Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)

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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%3Cp%3EChris%20Jordan%20insists%20Sanchit%20Sharma%20will%20make%20an%20impact%20on%20the%20ILT20%2C%20despite%20him%20starting%20the%20campaign%20on%20Gulf%20Giants'%20bench.%3Cbr%3EThe%20young%20UAE%20seamer%20was%20an%20instant%20success%20for%20the%20side%20last%20season%2C%20and%20remained%20part%20of%20the%20XI%20as%20they%20claimed%20the%20title.%3Cbr%3EHe%20has%20yet%20to%20feature%20this%20term%20as%20the%20Giants%20have%20preferred%20Aayan%20Khan%20and%20Usman%20Khan%20as%20their%20two%20UAE%20players%20so%20far.%3Cbr%3EHowever%2C%20England%20quick%20Jordan%20is%20sure%20his%20young%20colleague%20will%20have%20a%20role%20to%20play%20at%20some%20point.%3Cbr%3E%22Me%20and%20Sanchit%20have%20a%20great%20relationship%20from%20last%20season%2C%22%20Jordan%20said.%3Cbr%3E%22Whenever%20I%20am%20working%20with%20more%20inexperienced%20guys%2C%20I%20take%20pleasure%20in%20sharing%20as%20much%20as%20possible.%3Cbr%3E%22I%20know%20what%20it%20was%20like%20when%20I%20was%20younger%20and%20learning%20off%20senior%20players.%3Cbr%3E%22Last%20season%20Sanchit%20kick-started%20our%20season%20in%20Abu%20Dhabi%20with%20a%20brilliant%20man-of-the-match%20performance.%3Cbr%3E%22Coming%20into%20this%20one%2C%20I%20have%20seen%20a%20lot%20of%20improvement.%20The%20focus%20he%20is%20showing%20will%20only%20stand%20him%20in%20good%20stead.%22%3C%2Fp%3E%0A
While you're here
Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

Book%20Details
%3Cp%3E%3Cem%3EThree%20Centuries%20of%20Travel%20Writing%20by%20Muslim%20Women%3C%2Fem%3E%3Cbr%3E%3Cstrong%3EEditors%3A%20%3C%2Fstrong%3ESiobhan%20Lambert-Hurley%2C%20Daniel%20Majchrowicz%2C%20Sunil%20Sharma%3Cbr%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EIndiana%20University%20Press%3B%20532%20pages%3Cbr%3E%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20OneOrder%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20March%202022%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Tamer%20Amer%20and%20Karim%20Maurice%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%20%3C%2Fstrong%3E82%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Series%20A%3C%2Fp%3E%0A
Famous left-handers

- Marie Curie

- Jimi Hendrix

- Leonardo Di Vinci

- David Bowie

- Paul McCartney

- Albert Einstein

- Jack the Ripper

- Barack Obama

- Helen Keller

- Joan of Arc

Everybody%20Loves%20Touda
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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.

Updated: June 20, 2024, 4:00 AM