Cheering supporters hold posters of the imprisoned Kurdish rebel leader Abdullah Ocalan in southeastern Turkey. AP
Cheering supporters hold posters of the imprisoned Kurdish rebel leader Abdullah Ocalan in southeastern Turkey. AP
Cheering supporters hold posters of the imprisoned Kurdish rebel leader Abdullah Ocalan in southeastern Turkey. AP
Cheering supporters hold posters of the imprisoned Kurdish rebel leader Abdullah Ocalan in southeastern Turkey. AP

Abdullah Ocalan's return to public discourse could be a vote-winning strategy for Erdogan's ruling party


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At a press conference in Istanbul earlier this week, a group of lawyers for the jailed Kurdish rebel leader Abdullah Ocalan read out a statement: "Comrades who have committed themselves to hunger strikes and death fasts, I expect you to end your protest."

These words brought to an end hunger strikes being held by thousands of prisoners in Turkey against the incarceration and isolation of Ocalan, a founding member of the outlawed Kurdistan Workers' Party (PKK).

Captured in Kenya while on the run, by Turkish commandos 20 years ago, Ocalan was quickly sentenced to death for treason and separatism. From 1999 to 2009, he was held as the sole prisoner on Imrali island, in the Sea of Marmara.

To aid its bid to become a member of the European Union, Turkey outlawed the death penalty in 2002. Accordingly, Ocalan’s death sentence was commuted to one of life in prison. His solitary confinement also ended in 1999, when he was moved to a new facility on the island that housed other PKK prisoners. However, Ocalan had been denied access to legal counsel for the past eight years.

Media reports were quick to link this statement to the May decision of Turkey's election board to rerun the Istanbul mayoral election, in which president Recep Tayyip Erdogan's Justice and Development Party (AKP) narrowly lost to the Republican People's Party (CHP). The new ballot will be held on June 23, and Kurdish votes in the capital could help swing the result back towards the AKP.

The statement was the second released by Ocalan, via his lawyers, this month. The first, three weeks earlier, was equally significant. The reappearance of Ocalan in public life appears to be an attempt by the Turkish president and his party to solve a domestic and foreign-policy problem at the same time.

When, at the start of this month, Ocalan was finally allowed to meet with lawyers, he released a statement about the Kurdish-led, US-backed Syrian Democratic Forces. It said that “the problems in Syria should be resolved within the framework of unity of Syria, based on constitutional guarantees and local democratic perspective. In this regard, it should be sensitive to Turkey’s concerns.”

Those words were, no doubt, carefully chosen to allow room for negotiations, but they appear to indicate a preference for limited Kurdish autonomy within the Syrian system – a goal for Syria’s Kurds for many years, until the civil war changed everything.

They also seem to suggest that the SDF should not maintain troops near the border – that the “constitutional guarantees”, which could be offered by Damascus to the Syrian Kurds, would be sufficient.

Turkey will be comfortable with the thrust of this language: a focus on negotiation rather than conflict, and a preference for Syria’s Kurdish population to respect the nation’s territorial integrity. (Although some might wonder if Mr Erdogan, who has pushed his troops into Syrian territory, intends to do the same.)

If the first statement opens the door to some negotiation over the SDF's role on the Turkish-Syrian border, the second was more focused on domestic issues.

Mr Erdogan appears to be showing flexibility on the “Kurdish question” and may be seeking to position himself as peacemaker. It would be a smart – if cynical – move, because there is a chance for a political realignment between Kurdish voters and the AKP that could benefit both sides. Allowing the Turkish Kurds’ most prominent leader access to lawyers – and, therefore, to the wider world – could well be a first step.

Turkish party politics is in flux. The last two public ballots – the local elections in March and last July’s general election – were not fought between single political parties, but alliances.

Mr Erdogan's AKP allied with the right-wing Nationalist Movement Party (MHP), while the CHP, the main opposition, joined forces with a handful of smaller parties. Neither is a stable alliance.

The electoral losses experienced in March exposed rifts between the AKP and MHP, with a former AKP prime minister publicly condemning the alliance as damaging.

However, the opposition Nation Alliance is even more fragile. In the most recent election, the CHP chose to ally itself with both the right-wing ultra-nationalist Good Party and the Islamist Felicity Party.

Into this mix falls the Peoples' Democratic Party (HDP), the largest pro-Kurdish group. The HDP joined neither alliance, but supported the opposition grouping. Doing so put it in an odd position: a party supportive of Kurdish national aspirations backing an alliance with a party that is doggedly Turkish nationalist.

Having the main pro-Kurdish party as a political outsider also presents an opportunity for the AKP. Turkey’s Kurdish minority is sometimes thought of as homogenous, but the community, while predominantly based in the south-east of the country, is spread across Turkey. The city with the largest Kurdish population is, in fact, Istanbul. Although many Kurds support pro-Kurdish parties, such as the HDP, and many more care deeply about Kurdish rights, those are not always the primary political motivators.

In fact, Kurdish voters supported the AKP while it pursued peace talks with the PKK in the 2000s, and it was Mr Erdogan who brought in changes, allowing the Kurdish language to be taught in schools and universities.

The split between many Kurdish voters and the AKP only came in 2015, after a peace process overseen by the AKP collapsed, resulting in PKK attacks and a government crackdown. It was no coincidence that at the next general election, held a few months later, the HDP passed the 10 per cent threshold and was elected to parliament for the first time.

So, there is a chance that Kurdish voters could be wooed back to the AKP, and it is possible the party sees the rerun of the Istanbul election as a first test of this plan.

Mr Erdogan's self-serving gambit of allowing Ocalan to make public statements in return for the possibility of Kurdish votes in Istanbul could usher in long-term benefits for the Kurdish minority and, possibly the wider Kurdish movement.

If it succeeds and the AKP retakes Istanbul, the party might try the same thing on a wider scale, ahead of the next general election. Given that this is scheduled for 2023, there is plenty of time to strategise. This outcome could mean offering the Kurdish community more political concessions and seeking a peaceful approach to the SDF, across the border. On the other hand, if the AKP loses Istanbul, it might try something else entirely.

Many Kurds will be happy to hear Ocalan’s words, even if they are suspicious of Mr Erdogan’s motives. At the end of next month, they will give their verdict.

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The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre

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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.”

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