Two politicians in two different parts of the world are trying to turn forthcoming elections in their respective countries by persuading voters that they care. And they’re doing it by promising to put money directly in the pockets of ordinary people. Are their plans shrewd attempts to win votes, or serious attempts to reduce social inequality?
In India, the world’s largest democracy, Rahul Gandhi has promised a minimum-income scheme for the poorest 20 per cent of households. It is an enormously ambitious plan for India, a nation of more than 1.3 billion people that is struggling to break out of its status, defined by the World Bank, as a “lower-middle-income country”.
In the United States, sometimes referred to as the oldest democracy, Kamala Harris is promising an average $13,500 pay raise for every teacher. This is an extraordinary attempt to end in-work poverty for a highly educated group in the richest country in the world.
What links Mr Gandhi and Ms Harris is the point at which their policies intersect. They are, in their grand design, attempts to find solutions for social injustice.
Mr Gandhi, leader of Congress, India's main opposition party, has said that if he wins upcoming elections, 50 million of the country's poorest families would be guaranteed payments of 72,000 rupees (Dh3,840) a year. The scheme would be called Nyay, meaning "justice". Mr Gandhi describes it as India's "final assault on poverty".
And Ms Harris, who is running to be the Democratic Party’s 2020 presidential nominee in a crowded political field, sees the issue of teachers’ pay as crucial to America’s future. Teachers in the US are more likely than other professionals to work a second job. One million – roughly 40 per cent – are reportedly not covered by Social Security. Those working in public schools earn 11 per cent less than similarly qualified professionals in other fields. In 30 of America’s 50 states, average teacher pay is less than the living wage for a family of four.
These are the many reasons why teacher protests for higher pay and better benefits continue to break out across the country. Ms Harris’s campaign describes the plan as “the largest investment in teachers in American history”. Discount the hyperbole, and it is still one of the most ambitious proposals by a US presidential candidate to invest in education and in the next generation.
The proposals advanced by Ms Harris and Mr Gandhi should not be dismissed as cynical “competitive populism”.
That phrase has been used by Indian commentators in reference to the Congress leader’s plan, mostly because Prime Minister Narendra Modi recently pledged 6,000 rupees (Dh320) a year to small and marginal farmers, holding cultivable land of up to two hectares. As for Ms Harris, it would not be unusual if she was seeking to use teacher pay as a wedge issue between her campaign and that of the dozen or so other Democrats running for the party’s nomination.
But isn’t politics meant to be about such bread-and-butter issues? Isn’t it entirely right and proper for politicians to try to force the national conversation towards an overarching narrative of social compassion?
Yogendra Yadav, an Indian academic and co-founder of the socio-political organisation Swaraj Abhiyan, recently said that Mr Gandhi’s plan is to be welcomed for taking the election “back to basics”. Rather than highly charged security issues and muscular nationalism, he said, “we are debating, discussing, as we should, something real, substantive, that really affects the lives of [millions] of people in this country”. The minimum income scheme “at least begins to acknowledge that the poor need a stimulus,” he added.
The same, albeit in a slightly different context, could be said of Ms Harris’s proposal for America’s teachers.
In his new book, The Third Pillar: How Markets and the State Leave the Community Behind, the economist Raghuram Rajan, of the University of Chicago, addresses the need for social protections or, at the very least, opportunity for all. He compares the West and India in terms of the rising sense of economic hopelessness.
In the US, for instance, growing income segregation and market demands “are creating a meritocracy, but a hereditary one”. In India, Mr Rajan says, there has not been enough investment in providing jobs for people of “moderate education” and in creating opportunity for the poorest of the poor.
These factors have affected the politics of both countries. After Donald Trump's election, the Harvard political philosopher Michael Sandel explained the rise of populism in terms of the ceaseless human search for justice.
The economic policies of Ronald Reagan and Margaret Thatcher were based on the belief that the market could fix everything. After them, a new clutch of centre-left leaders took charge. But Bill Clinton, Tony Blair and Gerhard Schroeder didn’t tinker much with the system. Crucially, they did nothing to make it fairer. This meant, in Mr Sandel’s words, that market economies became “market societies”, soulless and valueless constructs that discourage the expectation of justice.
Mr Gandhi and Ms Harris’s sweeping proposals go some way towards plugging that gap.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
UAE currency: the story behind the money in your pockets
Results
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A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Where to buy
Limited-edition art prints of The Sofa Series: Sultani can be acquired from Reem El Mutwalli at www.reemelmutwalli.com
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States of Passion by Nihad Sirees,
Pushkin Press
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COMPANY%20PROFILE
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The Transfiguration
Director: Michael O’Shea
Starring: Eric Ruffin, Chloe Levine
Three stars
Call of Duty: Black Ops 6
Developer: Treyarch, Raven Software
Publisher: Activision
Console: PlayStation 4 & 5, Windows, Xbox One & Series X/S
Rating: 3.5/5
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Killing of Qassem Suleimani
Company%20Profile
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TOURNAMENT INFO
Women’s World Twenty20 Qualifier
Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November
UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi
UAE currency: the story behind the money in your pockets
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
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Company%20Profile
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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.”
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Killing of Qassem Suleimani
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
WISH
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How to keep control of your emotions
If your investment decisions are being dictated by emotions such as fear, greed, hope, frustration and boredom, it is time for a rethink, Chris Beauchamp, chief market analyst at online trading platform IG, says.
Greed
Greedy investors trade beyond their means, open more positions than usual or hold on to positions too long to chase an even greater gain. “All too often, they incur a heavy loss and may even wipe out the profit already made.
Tip: Ignore the short-term hype, noise and froth and invest for the long-term plan, based on sound fundamentals.
Fear
The risk of making a loss can cloud decision-making. “This can cause you to close out a position too early, or miss out on a profit by being too afraid to open a trade,” he says.
Tip: Start with a plan, and stick to it. For added security, consider placing stops to reduce any losses and limits to lock in profits.
Hope
While all traders need hope to start trading, excessive optimism can backfire. Too many traders hold on to a losing trade because they believe that it will reverse its trend and become profitable.
Tip: Set realistic goals. Be happy with what you have earned, rather than frustrated by what you could have earned.
Frustration
Traders can get annoyed when the markets have behaved in unexpected ways and generates losses or fails to deliver anticipated gains.
Tip: Accept in advance that asset price movements are completely unpredictable and you will suffer losses at some point. These can be managed, say, by attaching stops and limits to your trades.
Boredom
Too many investors buy and sell because they want something to do. They are trading as entertainment, rather than in the hope of making money. As well as making bad decisions, the extra dealing charges eat into returns.
Tip: Open an online demo account and get your thrills without risking real money.