I have always been puzzled by a common political cliche. When a leader abandons one policy and chooses another, why is that leader condemned by opponents and the media for “doing a U-turn”?
Of course, consistent political leadership is important. No one like sudden policy changes. But stubbornness in a leader in the face of changing facts is potentially dangerous.
The world-renowned British economist John Maynard Keynes nodded in that direction when he said: “When the facts change, I change my mind. What do you do, sir?” And back in the 19th century, the American poet and philosopher Ralph Waldo Emerson was even more brutal, insisting that “a foolish consistency is the hobgoblin of little minds” and that foolishness was a flaw “adored by little statesmen”.
Right now, UK Prime Minister Keir Starmer is trying to prove that he is not a little statesman by refusing to do any kind of rethink or U-turn on his new tax policies. In Mr Starmer’s case, it seems wise not to “do a U-turn” so early in his term, but U-turns can sometimes be the most sensible thing to do.
I proved it last week. I performed a U-turn in my car because I was stuck on a blocked road behind a long traffic jam. I am suggesting that the same common sense should apply to some intractable political and diplomatic problems that are the highly dangerous equivalents of a traffic jam. If you are stuck, maybe turn around.
That notion is why – despite the many reservations some people have about Donald Trump’s character, comments and past actions – the US president-elect’s inconsistencies in government could become a real advantage. He is strong enough to show some bold flexibility on issues that concern us all. Ukraine is one example.
It appears increasingly likely that Mr Trump is planning a summit with Russian President Vladimir Putin. Famously, Mr Trump boasted he could end the Ukraine war in 24 hours. He also told Nato leaders in Europe to raise defence expenditure to 5 per cent of their respective countries’ gross domestic product. Neither ending the war in one day nor the 5 per cent target looks likely, but the direction of travel is important.
European defence spending is rising, and Mr Trump’s exaggerated rhetoric gives Europe’s leaders a push to do more. Russia experts I have talked to also suggest that Mr Trump’s loud pronouncements could indeed bring about a Ukraine ceasefire, even if a lasting peace is much more complicated.
One obvious scenario is that if Ukraine fails to agree, Mr Trump could threaten to cut off US weapons supplies to Kyiv. But diplomats also privately speculate on a less obvious idea. If Mr Trump thinks that Moscow is proving difficult, the US could U-turn and actually boost weapons supplies for Ukraine. Even the idea of an unpredictable president swerving one way or another could be a diplomatic asset.
A similar unpredictability – call it a U-turn if you will – could even change America’s fractious relations with Iran.
Last year, the Iranian government witnessed unpopularity at home and numerous humiliations abroad, the collapse of its allies in Syria and Israel’s successes against Hezbollah. Mr Trump’s Tehran policy was always “maximum pressure”. This year, he could keep up that pressure, support Israel, yet offer a bold diplomatic opening towards serious talks with Iran, especially on its nuclear weapons programme.
A similar unpredictability – call it a U-turn if you will – could even change America’s fractious relations with Iran
A U-turn? Well, when the road is blocked, going nowhere is not a useful option.
This is all speculative, of course, not predictive. But Washington’s influential Foreign Policy magazine recently suggested a Trump parallel with former US president Richard Nixon. In 1972, Nixon – anti-communist to his core – went to China. He engaged in constructive dialogue with the Chinese Communist Party. A U-turn if you like, but Nixon was right to talk, and bold enough to take risks.
Mr Trump could be bold, too. Like Nixon, he is on the right of the Republican Party. And he (boldly if unsuccessfully) tried to engage with North Korea. Future talks with Iran, or with Russia, will not damage Mr Trump as it might a less conservative politician.
Again, these are possibilities – not predictions. But few would have predicted Mr Trump openly speaking of annexing Greenland or Panama either. His unpredictability may prove a diplomatic asset, U-turns included. A western expert on Russia told me recently that Russian business leaders (and political leaders) generally start negotiations with a noisy, combative and maximalist position, then strive for a deal. That fits the Trump style.
Yes, 2025 can look scary. But wars, conflicts and diplomatic stand-offs often resemble a dangerous kind of traffic jam. Nobody moves. In diplomacy and on the highway, a U-turn can be a sign of intelligent problem-solving, not weakness. Gaza, Sudan, Ukraine and other conflict zones all look like the most horrendous diplomatic traffic jams. So instead of condemning U-turns in 2025, we should see diplomatic changes of direction more positively.
Given the immense power of the US, Mr Trump, like any American president of recent times, can adopt a carrot-and-stick policy. The carrot is that he will not use the stick.
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.
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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Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
The biog
Hometown: Cairo
Age: 37
Favourite TV series: The Handmaid’s Tale, Black Mirror
Favourite anime series: Death Note, One Piece and Hellsing
Favourite book: Designing Brand Identity, Fifth Edition
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
From exhibitions to the battlefield
In 2016, the Shaded Dome was awarded with the 'De Vernufteling' people's choice award, an annual prize by the Dutch Association of Consulting Engineers and the Royal Netherlands Society of Engineers for the most innovative project by a Dutch engineering firm.
It was assigned by the Dutch Ministry of Defence to modify the Shaded Dome to make it suitable for ballistic protection. Royal HaskoningDHV, one of the companies which designed the dome, is an independent international engineering and project management consultancy, leading the way in sustainable development and innovation.
It is driving positive change through innovation and technology, helping use resources more efficiently.
It aims to minimise the impact on the environment by leading by example in its projects in sustainable development and innovation, to become part of the solution to a more sustainable society now and into the future.
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives