Bassil has ambitions to be Lebanon's president. AFP
Bassil has ambitions to be Lebanon's president. AFP
Bassil has ambitions to be Lebanon's president. AFP
Bassil has ambitions to be Lebanon's president. AFP

It's getting very lonely being Gebran Bassil


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There are several ongoing obstacles to Lebanon’s cabinet formation process, but among the more significant ones is the presidential ambition of Gebran Bassil, the head of the largest Maronite Christian party, the Free Patriotic Movement. Mr Bassil believes that if he fails to have enough ministers in the government and allows his political rivals to dominate it, he may never see the presidency.

The question is whether Mr Bassil can realistically expect to become president at all in the next election, which is in October 2022. There are really only two ways that he can hope to succeed the current president, his father in law, Michel Aoun. He either has to win a majority of votes in Parliament, or will need Hezbollah to impose him on the political class, as they did Mr Aoun in 2016.

Neither alternative seems realistic at present. Mr Bassil is far from enjoying majority support in parliament, so effective has he been in alienating a wide cross-section of the political class. As for Hezbollah, while the party may have been willing to block political life for two years to force Mr Aoun into office, Mr Bassil does not seem to enjoy the same backing. Moreover, with Lebanon collapsing financially, Hezbollah would be taking a major risk in trying that again.

Mr Bassil’s situation has not been helped by the fact that the US sanctioned him in November for his alleged corruption. Last week, the impact of this was made clear to him when a senior US official, undersecretary of state David Hale, visited Beirut and saw virtually everyone except Mr Bassil.

Just before that, the president’s son in law had received another blow, when an invitation to France to help resolve the government deadlock was cancelled because the prime minister designate, Saad Hariri, refused to see him there. Mr Bassil had hoped that a meeting with President Emmanuel Macron would win him French assistance to help resolve his sanctions problem. Instead, with a cabinet nowhere in sight, France may soon sanction him, too, for his obstructionism.

Saad Hariri, Lebanon's prime minister designate, has refused to engage Bassil in talks to break a political deadlock. EPA
Saad Hariri, Lebanon's prime minister designate, has refused to engage Bassil in talks to break a political deadlock. EPA

A Mr Bassil under international sanctions may not bother Hezbollah, as it would only make him more dependent on the party, but it also makes him far less acceptable as a presidential candidate domestically and internationally. Mr Bassil knows very well that without US, Arab and international approval, his chances of getting anything done were he to take office would be nil.

So what are his calculations as he continues to hold up a new government? Mr Bassil believes, perhaps rightly, that unless he has the latitude to block government decisions and even bring the government down, the majority will try to marginalise his cabinet appointees. Yet it is also clear that his efforts and those of Mr Aoun to control over a third of ministers, which would give him such leverage, are rejected by all the other political forces expected to name ministers.

Most interestingly, Mr Bassil’s staunchest rival, Speaker of Parliament Nabih Berri, appears to have gained some leverage over Hezbollah lately. After Hezbollah’s Secretary General, Hassan Nasrallah, advised Mr Hariri a few weeks ago to form a government of “specialists” and political figures, Mr Berri and his Amal Movement put out a statement saying the contrary: that the government should be made up solely of specialists, in line with Mr Hariri’s initial intentions.

There was an interesting message in that public disagreement. Mr Berri’s supporters in the Shiite community have been hard hit by the economic crisis, as many work in the public sector. Tensions have grown between them and Hezbollah, many of whose partisans either earn in US dollars or have relatives who do. To avoid conflict, Hezbollah has given Mr Berri some leeway, which he has used to undermine Mr Bassil, who also prefers a more political cabinet.

An erstwhile ally of Bassil, Hezbollah has now left him exposed to attacks from political rival Nabil Berri. Reuters
An erstwhile ally of Bassil, Hezbollah has now left him exposed to attacks from political rival Nabil Berri. Reuters

With the influential Mr Berri on the ascendant, Mr Bassil is exposed. Moreover, his presidential prospects are tied also to Syria’s calculations. It is likely that president Bashar Al Assad would much prefer Suleiman Franjieh, a Member of Parliament, to succeed Mr Aoun rather than Mr Bassil. The reason is that, at a time when Arab states seem keen to normalise relations with Damascus, Mr Al Assad would welcome a close ally in Beirut who can help consolidate his position, particularly on the economic front.

Neither Hezbollah nor Iran can ignore Mr Al Assad’s wishes, all the more so as they both have an interest in strengthening his unsteady regime. That makes Mr Bassil’s approach of exasperating everyone and holding up a government at a time of national emergency short-sighted. He is no more corrupt than his counterparts, perhaps, but unless he engages in a major tactical reversal to try and build favourable coalitions for himself, he will likely remain unelectable.

Meanwhile, the Lebanese are nearing the point where subsidies will be lifted to save dwindling foreign currency reserves. That means they may no longer be able to feed themselves adequately in the comings months as prices explode. That Mr Bassil and other politicians are bickering at such a time is not only disgraceful, but criminal. Mr Bassil is holding the country up for a hope that may remain unfulfilled.

Michael Young is a senior editor at the Carnegie Middle East Centre in Beirut and a Lebanon columnist for The National

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

FIRST TEST SCORES

England 458
South Africa 361 & 119 (36.4 overs)

England won by 211 runs and lead series 1-0

Player of the match: Moeen Ali (England)

 

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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.

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“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.”

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