"America is back," US President-elect Joe Biden declared not long after securing a hard-fought victory in one of the country's most contentious elections yet. "America's going to reassert its role in the world and be a coalition builder." The former vice president was essentially repudiating President Donald Trump's "America First" cocktail of isolationism, protectionism and unilateralism that many pundits have characterised as "America Alone".
True to his words, America's incoming president has swiftly assembled a putative cabinet filled with scions of liberal internationalism, including leading foreign policy minds and military officers during the Obama administration. But Mr Biden's plans to "reassert" American global leadership will face significant hurdles, not only at home but also abroad, especially in Asia – the new geopolitical centre of gravity.
Far from re-establishing the US as the world’s undisputed superpower, Mr Biden’s presidency is likely to crystalise the emergence of a truly "post-American world", as prickly allies, independent-minded “middle powers” and above all, a resurgent China collectively reshape the 21st-century global order.
One of the most dramatic expressions of this seismic shift in America’s place in the world is the outright defection of a century-old ally, the Philippines, under President Rodrigo Duterte.
Mr Trump lost the presidential election, but authoritarian populism is very much alive across Asia. According to the latest surveys, Mr Duterte is arguably the world’s most popular head of state with a whopping 91 per cent approval rating.
Not only has the Filipino populist upended the country’s fragile democratic institutions, but he has also revolutionised the country’s foreign policy. Under his watch, Manila has gone from a major “non-Nato ally” in Asia to one of the West’s most pugnacious critics as well as China’s most colourful cheerleader.
Here is a democratically elected strongman, who has lashed out at American leaders, threatened to expel all European Union envoys and end the Philippines’ military alliance with the West. Mr Trump’s open embrace of fellow right-wing populists such as Mr Duterte has only encouraged him further.
Last year, Mr Duterte unilaterally terminated a key defence agreement with the US, the Visiting Forces Agreement (VFA), the basis for hundreds of annual joint exercises, as well as the entry of tens of thousands of American troops on Philippine soil. The pretext? The US Congress’ imposition of human rights-related sanctions on Mr Duterte’s associates and top police officers for their involvement in a scorched-earth drug war, which has claimed thousands of lives.
In June, the Filipino President temporarily reinstated the defence agreement, but will certainly leverage the VFA as part of a broader quid pro quo with the incoming Biden administration, including assurances against new sanctions. To make matters more complicated, Mr Duterte is now demanding millions of Covid-19 vaccine doses in exchange for full restoration of the defence pact.
His brazen defiance and demands of Washington is not an isolated case. Instead, it is a palpable reflection of rising self-confidence among post-colonial leaders in Asia. From Malaysia to Indonesia and Cambodia, a growing number of regional leaders have openly defied America, questioned its "democracy promotion" initiatives, and found a willing patron in China.
Undoubtedly, the Asian powerhouse represents the most formidable challenge to Mr Biden's hope of restoring American leadership, especially on the continent. After centuries of being dormant, China has once again become the centre of trans-Asian trade, investments and increasingly geopolitics.
Thanks to its cutting-edge mercantilism and efficient developmental bureaucracy, China has managed to become the biggest winner of economic globalisation in the past half-century. In 1990, China’s nominal Gross Domestic Product was equivalent to only 6 per cent of that of the US. By 2016, when Mr Trump took over, its GDP was roughly three-fifths of that of the world's largest economy.
China's decisive management of the Covid-19 crisis means that it will be the only major economy to post positive GDP growth this year, placing it on the path to becoming the world's largest economy within less than a decade.
Crucially, Beijing has wasted no chance in translating its newfound prosperity into geopolitical influence (think of the Belt and Road Initiative), growing high-tech self-sufficiency (think of "Made in China 2025"), and a formidable military, including the development of indigenous aircraft carriers and the world's largest naval force.
With rising power comes deepening self-assurance. In response to growing bipartisan hostility in Washington and other major western capitals, Chinese President Xi Jinping has called on the country’s military to focus on “preparing for war” while accelerating the People’s Liberation Army’s modernisation programme.
For better or worse, China has become an indispensable stakeholder in global politics, especially in Asia. It has simply become too big to contain, and too powerful to ignore.
Despite his increasingly hawkish stance on China, Mr Biden will come under immense pressure to dial down the ongoing trade war, de-escalate military tensions, and find common ground with Beijing on major global concerns such as climate change, international public health, nuclear non-proliferation and free trade.
Otherwise, as former US secretary of state Henry Kissinger warned: “the world will slide into a catastrophe comparable to the First World War". Instead of continuing Mr Trump’s confrontational policy on China, Mr Biden will most certainly adopt a more differentiated and compartmentalised approach.
Meanwhile, the US will have to contend with another major geopolitical shift. Marooned by the recent turbulent years of Trumpian unilateralism, increasingly self-assertive "middle powers" such as India, Japan, and Australia have stepped up to the plate, demonstrating their unwillingness to be defined by the whims of superpowers.
As for China, it is at loggerheads with a number of neighbouring powers, including territorial disputes with India, Japan and Vietnam, not to mention diplomatic spats with farther away Australia. In response, regional powers across the Indo-Pacific are carving out their own spheres of influence, building their own networks of co-operation, and ramping up their own defence capabilities. In 21st-century Asia, geopolitical power has become more "horizontal", multifarious, multi-centered and dynamic.
The broader implications for American leadership and the contours of global order are enormous. What we are witnessing is an increasingly flat order rather than a hierarchical one, where middle and smaller powers collectively shape their own strategic destinies, thus ensuring that the future of Asia will depend neither on America nor China. As Mr Biden himself conceded: "We face a totally different world."
Richard Javad Heydarian is a Manila-based academic, having taught political science at Ateneo De Manila University and De La Salle University, Philippines
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Abaya trends
The utilitarian robe held dear by Arab women is undergoing a change that reveals it as an elegant and graceful garment available in a range of colours and fabrics, while retaining its traditional appeal.
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
Match info
Liverpool 4
Salah (19'), Mane (45 2', 53'), Sturridge (87')
West Ham United 0
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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if you go
The flights
Emirates offer flights to Buenos Aires from Dubai, via Rio De Janeiro from around Dh6,300. emirates.com
Seeing the games
Tangol sell experiences across South America and generally have good access to tickets for most of the big teams in Buenos Aires: Boca Juniors, River Plate, and Independiente. Prices from Dh550 and include pick up and drop off from your hotel in the city. tangol.com
Staying there
Tangol will pick up tourists from any hotel in Buenos Aires, but after the intensity of the game, the Faena makes for tranquil, upmarket accommodation. Doubles from Dh1,110. faena.com
THE BIO
Family: I have three siblings, one older brother (age 25) and two younger sisters, 20 and 13
Favourite book: Asking for my favourite book has to be one of the hardest questions. However a current favourite would be Sidewalk by Mitchell Duneier
Favourite place to travel to: Any walkable city. I also love nature and wildlife
What do you love eating or cooking: I’m constantly in the kitchen. Ever since I changed the way I eat I enjoy choosing and creating what goes into my body. However, nothing can top home cooked food from my parents.
Favorite place to go in the UAE: A quiet beach.
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The five pillars of Islam
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Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5