In this 2017 file photo, ICAN activists wearing masks of North Korea's leader Kim Jong-un and US President Donald Trump demonstrate in front of the US embassy in Berlin. AFP
In this 2017 file photo, ICAN activists wearing masks of North Korea's leader Kim Jong-un and US President Donald Trump demonstrate in front of the US embassy in Berlin. AFP
In this 2017 file photo, ICAN activists wearing masks of North Korea's leader Kim Jong-un and US President Donald Trump demonstrate in front of the US embassy in Berlin. AFP
Coronavirus: How to prevent a new nuclear arms race – and future pandemics
Difficult though it may be, the world's powers should find ways to engage with rogue actors and thereby use investment, otherwise meant for nuclear conflict, to better prepare for global health threats
The island of Shemya is American territory on the ends of the earth. It is on the Aleutian chain of islands, the part of Alaska that stretches across the inhospitable waters of the north Pacific, where North America gets close to the far east of Russia.
In 1942, during the Second World War, Japanese soldiers landed on the Aleutians following their attack on Pearl Harbour – the first time the US was invaded since the War of 1812. When I visited the Aleutians a few years ago, courtesy of the US military, I was taken to see rusty old Japanese military vehicles and a monument from Japanese veterans dedicated to comrades lost in combat.
The Aleutians are so remote, even though they are part of the US, that during the war the US military command in Washington simply ignored the invaders and fought the war in the Pacific much farther south. By the 1980s, the islands assumed far greater strategic significance. Then president Ronald Reagan pursued a “New Maritime Strategy”, which meant beefing up US forces in the north Pacific against the threat from the Soviet Union.
The Cold War
US President Ronald Reagan and Russian leader Mikhail Gorbachev during a summit in Reykjavik, Iceland. Getty Images
Alaska already had an early warning system in case of a nuclear war, and that too was enhanced. When I visited US bases there, including Shemya and Adak, they were busy tracking Russian Bear bombers moving towards American airspace and scrambling US F15 fighter planes to turn them away. In the base stores, you could buy T-shirts and baseball caps that read: “Shemya: It’s not the end of the world, but you can see it from here.” These were frontline US troops preparing for nuclear Armageddon.
Later, I filmed in a hotel at a place called Greenbrier, a couple of hours drive from Washington DC, where in the 1950s the US government constructed a secret, massive bunker as a safe place for members of the US Congress to meet in case of nuclear war and the destruction of American cities. It seems like ancient history now but television programmes at the time included many documentaries like the one I was filming and scary dramas about how, if it came to war, the entire planet was doomed. Those of us who did not die in a nuclear exchange would perish from radiation sickness or in a “nuclear winter” in which no crops would grow.
The final scene from Dr Strangelove
However now, as we focus on another threat to our lives, our economies and our world – coronavirus – it is curious to compare all these elaborate and expensive preparations for nuclear conflict with the lack of preparation in western countries and in the states of the old Soviet Union for the global pandemic we are now experiencing.
Despite numerous warnings from virologists and epidemiologists that Sars and Mers would eventually be followed by something much worse, the world is still playing catch up on coronavirus.
Covid-19 response around the world
A medical worker takes a swab sample from a man in a neighborhood in Wuhan, in China’s central Hubei province. AFP
Pupils observe social distancing rules in the playground in Edegem, near Antwerp. AFP
A driver checks social distancing markers on the seats of his tram, before leaving the garage in Sarajevo, Bosia. AFP
Migrant workers on the outskirts of Hyderabad travel on a lorry to return to their hometowns. AFP
Children wait in lines at a crèche in Langa, near Cape Town. AFP
Men wearing protective overalls and mask sanitise St Peter's Basilica in The Vatican. AFP
Tube commuters wearing PPE travel during the evening 'rush hour' on the Circle Line, in central London. AFP
Swiss Guards wearing a face mask give a salute as they stand guard at an entrance of The Vatican. AFP
Labourers take a break in their quarters maintaining social distancing at DH Cube Industries, a heavy manufacturing factory, at Vasna Buzarg village, some 40km from Ahmedabad. AFP
A traffic police officer rides a self-balancing scooter in Chennai. AFP
A horse drawn carriage takes passengers along a road during a partial lockdown imposed due to the coronavirus in New Delhi, India. Bloomberg
Airport health officials at a check point at Soekarno-Hatta Jakarta International airport in Tangerang. AFP
A man wearing a face masks, as a preventive measure against the spread of the new coronavirus, COVID-19, walks by a graffiti reading "Hunger", in Caracas. AFP
Police officers are seen during a raid at Santo Domingo neighborhood amid the new COVID-19, coronavirus pandemic, in Medellin, Colombia. AFP
Perhaps even more surprising, the danger of nuclear war has been forgotten in the public imagination but it has not gone away. The threat to the Gulf region and beyond from Iran's nuclear programme has not been eliminated. North Korea has not abandoned its own extremely provocative missile programme. And figures released in the past few days have shown continuing reinvestment round the world in nuclear arsenals.
In 2019, according to the International Campaign to Abolish Nuclear Weapons (ICAN) the nine countries with nuclear weapons spent a total of $72.9 billion on those weapons, a 10 per cent increase on 2018. Of that sum, around half – $35.4bn – was spent by the Trump administration.
The Iranian problem
The threat to the Gulf region and beyond from Iran’s nuclear programme has not been eliminated. EPA
ICAN, as its name suggests, wants nuclear weapons to be banned. It points out that so much money that could be spent on making the world healthier – and preparing for the certainty of future pandemics – is being spent on the unlikelihood of a nuclear conflict.
While this argument is attention-grabbing, it does not face up to hard reality. Just because we were unprepared for Covid-19 does not of itself mean nuclear states should simply destroy their stockpiles. Events in the sea lanes of the Gulf remind us of the old Cold War saying, that the price of peace is eternal vigilance. Nevertheless, the dislocation caused by the virus has made many of us re-think our personal priorities – family, friends, work and what makes us happy.
North Korea's recent missile launches
Perhaps the pandemic may also make governments reassess their own priorities. How many nuclear weapons are "enough"? Do we still believe in the doctrine of Mutually Assured Destruction – or MAD? Could we cut nuclear arsenals and put more effort into engagement with Iran and North Korea – difficult though that is – to try to prevent a new nuclear arms race?
This year’s US presidential election, combined with an economic shock and the biggest threat to world health for a century, provides an opportunity to re-think our priorities. If we can spend billions every year on bunkers, missiles and early warning systems in the hope of preventing global conflict – and not see that investment as wasted – can we switch more investment to preventing and treating global health threats?
Gavin Esler is a journalist, author and presenter
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
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.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The drill
Recharge as needed, says Mat Dryden: “We try to make it a rule that every two to three months, even if it’s for four days, we get away, get some time together, recharge, refresh.” The couple take an hour a day to check into their businesses and that’s it.
Stick to the schedule, says Mike Addo: “We have an entire wall known as ‘The Lab,’ covered with colour-coded Post-it notes dedicated to our joint weekly planner, content board, marketing strategy, trends, ideas and upcoming meetings.”
Be a team, suggests Addo: “When training together, you have to trust in each other’s abilities. Otherwise working out together very quickly becomes one person training the other.”
Pull your weight, says Thuymi Do: “To do what we do, there definitely can be no lazy member of the team.”