Indian movie superstar Rajinikanth, left, waves to his fans as he arrives at an event in Kuala Lumpur, Malaysia, Saturday, Jan. 6, 2018. (AP Photo/Sadiq Asyraf)
Indian movie superstar Rajinikanth, left, waves to his fans as he arrives at an event in Malaysia earlier this month. AP

First Rajinikanth, now Oprah: name-recognition alone should not prepare you for public office



In India, popular Tamil film star Rajinikanth announces his political debut "in the name of democracy," which he says "has been corrupted and needs to be cleansed." In the US, fevered speculation surrounds the political prospects of much-loved television talk show host Oprah Winfrey.

Nearly 15,000 kilometres apart, the developments in Chennai and Los Angeles might share a fateful link. Tamil Nadu today is what the US might well be tomorrow in terms of its politics.

For, superstar Rajinikanth's recently stated political aspirations and probable success underline the 50-year takeover by cinema of a particular brand of "rationalist" politics practised by non-Brahmin Tamils. And if the US were to have a President Winfrey in 2020, just four years after the election of reality TV star Donald Trump, it would establish the hold of celebrity performers on the White House.

Is that so bad? The US has had an actor-turned-president before and Ronald Reagan is considered one of the most influential modern presidents. Yes, but it is Mr Trump who technically breached the country's blood-brain barrier between entertainment and politics. Mr Trump made the leap straight from performance into frontline politics. Reagan put in time as a political apprentice, working with the actors' labour union and serving two terms as governor of California, America's most populous state. He ran – and lost – two Republican party presidential nomination elections before finally getting on to the ticket and defeating incumbent Jimmy Carter.

In Tamil Nadu too, the actor who swapped box office success half-a-century ago for the very highest reaches of state politics also spent time learning the ropes. M G Ramachandran went from 30 years as Tamil Nadu’s biggest box office attraction to a relatively lowly position as a member of the legislative assembly and then to triumphant election (and re-election) as chief executive of the whole state. MGR, as he was popularly known, ultimately created a populist movement that relied on a state-wide personal fan club and a freebie culture to win elections rather than on governance or solid policy positions. And yet, MGR did in some way demonstrably prepare for the job of political leader, no matter the results of his actual stint in office.

That’s the difference between MGR’s political journey and Rajinikanth’s announcement that he is soon to embark on one. And therein lies the chasm between a potential President Winfrey and the late President Reagan.

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Both Rajinikanth and Oprah lack the preparation required for key political roles though there is nothing to stop them acquiring it in the future.

In fact, Oprah is being urged by some to follow Reagan’s lead and run for governor of California. That is a welcome recognition celebrity should not be enough to make a credible bid for the White House. But consider the vastly different response in Tamil Nadu to Rajinikanth’s bid for political power.

Few are calling for Rajinikanth to undertake the hard slog of learning the art of politics and the science and substance of policy. There lies the basic difference between US politics and that in an Indian state where half a century of electorally decisive star-power has led to ​a ​democratic deficit​.

Rajinikanth and Oprah are effective speakers and consummate performers. Both have, in different ways, dabbled in politics. But their preparation and motivation – is it for ego or meant to serve? – should be at least as important as name-recognition when it comes to high political office.

If not, we may be closer than we realise to the fictional land of the Bongas, so minutely described by the Italian novelist, philosopher and semiotician Umberto Eco. In 1987, Eco published a charming essay titled How to be a TV host. It was part of an eccentric collection called How to travel with a salmon.

Eco described the Bonga nation, “a society that flourishes in an area between Terra Incognita and Isles of the Blest”. The Bongas were, Eco noted, a people with an unusual insistence on the explicit, the declarative. They prefaced speech with the words, “pay attention, I am now speaking and I will use some words”.

The Bongas, said Eco, "write 'house' on every house and 'door' beside the door". Their theatre also rejoiced in "obsessive clarification". Eco puzzled over this and offered the following diagnosis. The Bongas were "performance-worshippers. They had to transform everything, even the implicit, into performance". This created an odd sort of reality. Eco wrote "the Bongas want television to show them real life, as it is lived, without pretence".

Would the abandonment of politics to a culture of celebrity and wealth not transform us into a later-day Bonga people? If high-ranking screen stars without organic lived policy-making experience are the only people we consider for high office, the democratic deficit will deepen.

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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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