France's foreign policy is not identical to that of the US in much of the Middle East and North Africa. And yet, some co-ordination in the two countries' diplomatic initiatives in the region has become evident, particularly from the recent visit to crisis-hit Lebanon by French President Emmanuel Macron, followed by that of David Schenker, the US Assistant Secretary of State for Near Eastern Affairs. How effective this co-ordination proves to be is, of course, an open question. Nonetheless, it is noteworthy.
The US has often considered French diplomacy to be more performative than impactful. But as is evidenced in recent days, that may be changing.
The Trump administration is backing France's Lebanese demarche in the aftermath of the devastating Beirut Port blasts a month ago. Indeed, there are enough signs to suggest that US President Donald Trump has encouraged Emmanuel Macron, his French counterpart, in sparing no effort to aid Lebanon – provided this does not violate the red lines the US has drawn with regard to Hezbollah, the Iranian-backed militia and political entity that wields considerable influence in the Arab country.
French President Emmanuel Macron speaks at a news conference in Beirut on September 1, 2020, during his second visit to Lebanon after the August 4 port explosion in the capital. Bloomberg
Emmanuel Macron plants a cedar tree alongside members of the NGO Jouzour Loubnan during a ceremony marking Lebanon's centenary in Jaj Cedar Reserve Forest, north-east of Beirut, on September 1, 2020. AFP
French President Emmanuel Macron hugs a blast victim while attending a ceremony to mark Lebanon's centenary in Jaj Cedars Reserve Forest on September 1, 2020. AFP
French President Emmanuel Macron meets former Lebanese prime minister Saad Hariri at the Pine Residence, the official residence of the French ambassador to Lebanon, in Beirut on August 31, 2020. Reuters
France's president with his Lebanese counterpart Michel Aoun at the Presidential palace in Baabda, east of Beirut, on September 1, 2020. AFP
French President Emmanuel Macron meets Lebanese Maronite Patriarch Bechara Rai at the Pine Residence in Beirut. Bkerki Press Office / AFP
President Emmanuel Macron speak with speaks with Arnaud Tranchant, commander of the French helicopter carrier Tonnerre, off the port of Beirut on September 1, 2020. AFP
French jets perform a flypast over Beirut during Lebanon's centenary celebrations on September 1, 2020. Bloomberg
French President Emmanuel Macron meets UN representatives and NGOs at Beirut port. AFP
Emmanuel Macron gestures toward a board as he meets the military mobilised to help to rebuild the Beirut port. via AP
Emmanuel Macron speaks to the media outside the French ambassador's residence in Beirut. Bloomberg
The French president poses for selfies after a news conference at the Pine Residence in Beirut on September 1, 2020. AFP
French President Emmanuel Macron speaks to a patient during a visit to Rafik Hariri University Hospital in Beirut with French Health Minister Olivier Veran, right, on September 1, 2020. AFP
There certainly seems to be a difference in their respective approaches to dealing with Hezbollah. The French have avoided implicating the group for its destructive role in Lebanon's society and politics. They have even granted it legitimacy, going by Mr Macron’s recent statements. This position stands in sharp contrast to Washington's designation of Hezbollah as a terror group. The Americans are not entirely convinced that the French tactic of taking all the Lebanese political forces along with it will lead to much-needed reforms. Nonetheless, they will not come in their way.
They do agree on the need to exert pressure on the country's wider political class.
Both countries have made it clear that there would be no international or Arab aid at the level needed to rescue Lebanon unless radical reforms are undertaken to strengthen the state and make it more transparent and accountable to the people. These reforms would no doubt impact the domination of the elite, which explains its resistance against them.
A carrot-and-stick routine may be playing out in Lebanon, with Paris leading the efforts to pledge aid as Washington raises the threat of sanctions. Indeed, the US has hinted at the possibility of imposing sanctions in the coming week against powerful politicians who are allied to Hezbollah in government.
A woman, draped in a black-striped Lebanese flag, looks at the site of the massive explosion at Beirut's port area, during a demonstration to mark one month since the cataclysmic August 4 explosion that killed 191 people, in the Lebanese capital Beirut. AFP
A woman holds a noose as she observes a minute of silence to mark one month since the massive explosion at Beirut's port area. Reuters
Families of Beirut port explosion victims carry their pictures during a minute of silence and prayer to mark one month of Beirut port explosion. EPA
Families of Beirut port explosion victims carry their pictures during a minute of silence and prayer to mark one month of Beirut port explosion. EPA
Protesters carry torches and hangman noose as they demand the punishment of those responsible for the port explosion during a moment of silence to mark one month of Beirut port explosion. EPA
Firefighters hold a flag as they commemorate a month since Beirut's deadly explosion. Getty Images
Protesters wave a Lebanese flag and hold nooses, which have become symbols of public anger against the Lebanese government, as they commemorate a month since the city's deadly explosion. Getty Images
Protesters hold torches and nooses as they commemorate a month since the city's deadly explosion. Getty Images
Paper lanterns in the shape of a Lebanese flag mark one month since the city's deadly explosion. Getty Images
A woman sings on a pile of rubble near paper lanterns arranged in the shape of a Lebanese flag to mark one month since the city's deadly explosion. Getty Images
Families of Beirut port explosion victims carry their pictures during a minute of silence and prayer to mark one month of Beirut port explosion. EPA
The carrot, however, may not be significant. It will certainly not come in the form of a $11 billion aid package that was pledged during the recent French-led Cedre donor conference. In fact, it is unlikely to exceed $3bn. Any rescue package worth its salt – including a bailout from the IMF, the US and Arab nations – will require Beirut to enact serious reforms. These include an overhaul of its mode of government and system of elections, and the creation of a long-term vision for the state. The production and storage of illegal arms to benefit Hezbollah and further Iran's interests will also need addressing.
Lebanon’s Prime Minister-designate Mustapha Adib will no doubt be under immense pressure to make a start on some of these reforms. He has promised to put together a line-up of technocrats – rather than the usual yes-men from the political class.
Mr Adib’s challenges are somewhat comparable to the ones Iraqi Prime Minister Mustafa Al Kadhimi is facing at the moment. Lebanon and Iraq are both in dire need to exert their sovereignty and neutrality, as regional powers battle each other for control over these two countries. Sovereignty means that the state has the sole authority over a country's territory, but this requires the top leaders of both Lebanon and Iraq to rise to the challenge.
Iraqi protesters run for cover as they clash with security forces on Al Jumhuriyah in the capital Baghdad, following an anti-government demonstration. AFP
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all deatined protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
An Iraqi protester holds a smoke grenade fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters gather to block a street during an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters hurl stones at security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi protester looks on as others wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters gather amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters affected by smoke grenades receive help amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters flee smoke grenades fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi demonstrator tries to smash a concrete wall during ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa al-Kadhimi called for the release of all detained protesters, at Jumhuriya bridge in Baghdad, Iraq. REUTERS
Mr Macron, who visited Iraq shortly after leaving Lebanon, emphasised the issue of sovereignty during his meeting with Mr Al Kadhimi. Interestingly, rather than targeting Iran, the French President spoke to Turkish incursions as part of Ankara's military operations against the Kurdistan Workers' Party, members of which are said to be hiding in Iraqi territory.
France has been keen for the US to rein in Turkey over its actions in Iraq, Libya and the Eastern Mediterranean, where it is in a resource conflict with Greece. Washington's priority, however, is to preserve Turkey’s Nato membership in order to yank it out of Russia's embrace.
There has also been a gap in their strategies to deal with Iran, although that gap has reduced in recent times. Much like the Americans have done over the past three years to rein in Iran's expansionist activities in the region, French diplomats are also beginning to raise the threat of sanctions against Tehran and its partners and allies. It has to be said that, while American sanctions have a significant impact on the economies of state and non-state actors, French punitive measures are usually more symbolic than anything else.
Paris is, therefore, bent on pursuing two-track diplomacy with Tehran – an idea that Washington has chosen to be open-minded about.
Iraqi protesters run for cover as they clash with security forces on Al Jumhuriyah in the capital Baghdad, following an anti-government demonstration. AFP
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all deatined protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
Demonstrators gesture as they take part in the ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa Kadhimi called for the release of all detained protesters, at Al Jumhuriya bridge in Baghdad, Iraq. REUTERS
An Iraqi protester holds a smoke grenade fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters gather to block a street during an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters hurl stones at security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi protester looks on as others wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters wave national flags during an anti-government demonstration on Al Jumhuriyah bridge in the capital Baghdad. AFP
Iraqi protesters gather amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters affected by smoke grenades receive help amid clashes with security forces following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
Iraqi protesters flee smoke grenades fired by security forces amid clashes following an anti-government demonstration in Iraq's southern city of Nasiriyah in Dhi Qar province. AFP
An Iraqi demonstrator tries to smash a concrete wall during ongoing anti-government protests after newly-appointed Iraqi Prime Minister Mustafa al-Kadhimi called for the release of all detained protesters, at Jumhuriya bridge in Baghdad, Iraq. REUTERS
Today, France has an opportunity to leave a distinguished mark in the Middle East. But for this to happen, it needs to be courageous and tough, rather than go down the road of appeasement. It has no doubt made some bold and important policy proposals to the Lebanese politicians, such as imposing a transparent and neutral tendering process for the port’s reconstruction, and addressing the allegations of corruption surrounding the Selaata power plant project – as if to state that the time of one party’s domination over Lebanon’s energy sector is over.
And yet, Mr Macron’s strong words need to be backed by a rigorous sanctions regime, if necessary, as well as strong support from the European Union. Most importantly, his government simply needs to stand up to Tehran’s regional agenda. It must avoid repeating the mistake the West and Russia made by overlooking Iran’s expansionist activities while securing the 2015 nuclear deal with Tehran.
Raghida Dergham is the founder and executive chairwoman of the Beirut Institute
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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.”
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.
Global state-owned investor ranking by size
1.
United States
2.
China
3.
UAE
4.
Japan
5
Norway
6.
Canada
7.
Singapore
8.
Australia
9.
Saudi Arabia
10.
South Korea
Avatar: Fire and Ash
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