Britain has pledged to deploy its newly minted aircraft carrier HMS Queen Elizabeth to Asia’s contested waters later this year, most likely in tandem with the US Navy. Getty Images
Britain has pledged to deploy its newly minted aircraft carrier HMS Queen Elizabeth to Asia’s contested waters later this year, most likely in tandem with the US Navy. Getty Images
Britain has pledged to deploy its newly minted aircraft carrier HMS Queen Elizabeth to Asia’s contested waters later this year, most likely in tandem with the US Navy. Getty Images
“Whoever is lord of Malacca has his hands on the throat of Venice,” observed the 15th century explorer Tome Pires. Within his lifetime, his native Portugal and rival Spain would effectively divide the world between themselves under the Treaty of Tordesillas in 1494. The treaty sanctioned Portuguese conquest of countless ports across the Indian Ocean while Spain devoured those in the Pacific.
Over the next half a millennium, a constellation of tiny European kingdoms reigned supreme across the vast Asian continent, placing their voracious hands on the throat of once mighty empires in the East. Qing-era China would suffer a "century of humiliation" of unequal treaties, intermittent invasions and forced opium trade; many of its peers were less lucky.
Neighbouring Philippines, for instance, would remain in Spanish colonial grip for 333 years. India arguably suffered the greatest level of colonial immiseration, as the British empire drained from it an estimated $45 trillion (in current dollars) between the 18th and 20th centuries.
Robert Clive receiving the land revenues of Bengal, Bihar and Orissa in 1765. Benjamin West
But the Second World War, which devastated imperial metropoles in Europe, triggered a wave of decolonisation across Asia. By the late 20th century, European powers became marginal in regional affairs, with Vietnam (French Indochina), the Philippines (Spanish East Indies) and Indonesia (Dutch East Indies) hardly remembering the language of their former colonial masters.
In recent years, however, European powers have clawed their way back to a measure of geopolitical relevance in Asia. And this less-than-appreciated pivot is largely driven by growing anxieties over America's relative decline as the anchor of the liberal international order, the re-emergence of China as a superpower, and, perhaps most importantly, Asia's booming economies.
Just over a century ago, European hegemony in the continent was taken for granted.
The Victorian Era marked the halcyon years of empire, as Britain, France and Germany scrambled for new colonies once in firm possession of Spanish, Dutch and Portuguese predecessors.
Their eventual collapse came “gradually, then suddenly", to use Ernest Hemingway’s words. The first shock was the rise of the US as a pan-Pacific power, following the Spanish-American wars at the end of the 19th century. The upshot was the transformation of Spanish Philippines into America’s first and only Asian colony, as the newly rising superpower fixed its gaze on China’s vast markets.
At the same time, Meiji-era reforms turned Japan into a military behemoth, which effectively announced its arrival on the world stage through the stunning defeat of Czarist Russia both in the seas and on land.
Both Wilsonian America and imperial Japan encouraged anti-colonial struggles across Asia, much at the expense of the European empires. Thus, the story of 20th century Asia can effectively be summarised as an American-Japanese contest for primacy. Despite its military defeat in the Second World War, Japan emerged as the de facto economic engine of Asia up until the 1997 Asian Financial Crisis.
MV-22 Ospreys are seen amidst heat haze on the runway of the US Marine Corps Air Station Futenma, in Okinawa. The US has remained as the undisputed military power in Asia, thanks to its ocean-roaming navy and a large network of military bases across the region. Getty Images
By the 1980s, the US even feared Japanese domination of the world economy, with Ezra Vogel's 1979 book Japan as Number One best exemplifying the zeitgeist of American status anxiety and declinist fears.
Nevertheless, the US remained as the undisputed military power in Asia, thanks to its ocean-roaming navy and a large network of military bases across the region. The only relevant “European” power in Asia throughout this period was the Soviet Union, which lacked any meaningful economic power but managed to still nurture alliances from Indochina to North-East Asia.
The end of Cold War, however, ushered a new era of peace and stability, which accelerated the rise of both the EU and post-Mao Zedong China. In stark contrast, Japan lost much of its economic momentum following decades of economic sclerosis, while the US squandered its "hyperpower" moment by engaging in unending wars in the Middle East.
By the second decade of the 21st century, an increasingly Sino-centric Asia became the fulcrum of global economy. Beyond the Chinese economic miracle, the region now hosted some of the world’s fastest growing nations, including Vietnam, Indonesia, India and the Philippines, as well as the newly wealthy economies of Singapore, Taiwan and South Korea.
Reeling from the double-whammy of economic recession and debt crisis, Europe has once again seen Asia as its path to prosperity. The outcome, quite predictably, is a full-on strategic courtship.
The Marina Bay Golf Course in Singapore. The tiny city-state is one of the wealthiest countries in Asia. Bloomberg
The EU is enhancing institutionalised high-level dialogue under mechanisms such as the Asia-Europe Meeting, has signed a strategic partnership agreement with the Association of South-East Asian Nations, and finalised free trade deals with China, Japan, South Korea, Singapore and Vietnam.
Meanwhile, Britain, France and Germany – the so-called “E3” – are scrambling for new trade and investment agreements in Asia.
Over the past three years, however, European powers, some of which still possessing territories in the Indo-Pacific, have also adopted a more muscular approach in Asia. Worried about China’s maritime ambitions, the E3 powers have stepped up military diplomacy and naval deployments across the South and East China Seas.
France has enraged China by deploying its naval frigate Vendemiaire through the Taiwan Strait in areas Beijing considers as its own national waters. It has also stepped up military assistance to China's rivals, including by signing multi-billion-dollar defence deals with Australia and India.
French President Emmanuel Macron attends a drone presentation on the deck of the French warship Dixmude in Toulon. Macron knows his country's place is that of a middle power. Reuters
Tokyo city skyline at dusk. Britain could be set to join the Japan-led CPTPP trade deal. Getty Images
During a trip to Asia in 2018, French President Emmanuel Macron called for a “Paris-Delhi-Canberra axis”, which will “be respected by China as an equal partner”. Last year, France became the first country to appoint an ambassador for the “Indo-Pacific”, the vast maritime space that has become a theatre of naval competition between China and Asia's other major powers.
Similar to France, Germany has also released its own “Indo-Pacific” strategy paper, which signalled a commitment to step up its strategic engagement across the region, including unprecedented joint naval drills with Japan later this year.
Even more dramatic is Britain's "Indo-Pacific" strategy amid souring relations with China. London has banned certain high-tech investments from China on national security grounds, while pledging to deploy its newly minted aircraft carrier HMS Queen Elizabeth to Asia's contested waters later this year, most likely in tandem with the US Navy.
Last year, the E3 powers submitted an unprecedented joint note verbale to the UN, in which they questioned China’s claims in adjacent waters. In short, Europe is simultaneously expanding its trade and investment ties with Asia just as it pushes back against China’s maritime ambitions.
Joe Biden's America and Xi Jinping's China could preside over a 'new Cold War', thereby shaping the future of Asia. AFP
In the past, Europe was a harbinger of conflict and destruction in Asia. But amid rising Sino-American tensions nowadays, the E3 powers can play a more constructive role in the region.
As "shaping powers", Europe can deploy a combination of patient diplomacy and proactive strategic engagement through trade and investment deals to uphold international law, check the excesses of both superpowers, and help build the capacity of smaller Asian nations to preserve their autonomy and territorial integrity.
Instead of siding with one superpower against the other, or blindly courting Asia for mercantilist gains alone, Europe can and should help prevent a "new Cold War" and contribute to the preservation of a truly "free and open" order in Asia. To paraphrase what Tome Pires said centuries ago, what happens in waters of Asia (Malacca) will inevitably affect peace and prosperity in Europe (Venice).
Richard Javad Heydarian is a professorial chairholder in geopolitics at Polytechnic University of the Philippines and author of, among others, 'The Indo-Pacific: Trump, China and the New Struggle for Global Mastery'
The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
The flights Flydubai offers three daily direct flights to Sarajevo and, from June, a daily flight from Thessaloniki from Dubai. A return flight costs from Dhs1,905 including taxes. The trip
The Travel Scientists are the organisers of the Balkan Ride and several other rallies around the world. The 2018 running of this particular adventure will take place from August 3-11, once again starting in Sarajevo and ending a week later in Thessaloniki. If you’re driving your own vehicle, then entry start from €880 (Dhs 3,900) per person including all accommodation along the route. Contact the Travel Scientists if you wish to hire one of their vehicles.
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 was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
The Buckingham Murders
Starring: Kareena Kapoor Khan, Ash Tandon, Prabhleen Sandhu
Director: Hansal Mehta
Rating: 4 / 5
Results:
6.30pm: Maiden Dh 165,000 1,400m.
Winner: Walking Thunder, Connor Beasley (jockey), Ahmad bin Harmash (trainer).
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Key facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills