Japanese Prime Minister Shinzo Abe announced on August 28, 2020 that he will resign due to long-standing health problems. AFP
Japanese Prime Minister Shinzo Abe announced on August 28, 2020 that he will resign due to long-standing health problems. AFP
Japanese Prime Minister Shinzo Abe announced on August 28, 2020 that he will resign due to long-standing health problems. AFP
Japanese Prime Minister Shinzo Abe announced on August 28, 2020 that he will resign due to long-standing health problems. AFP

Shinzo Abe's second sunset


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This wasn't how it was supposed to end.
When Shinzo Abe first stepped down in 2007, only a year after becoming Japan's youngest post-War Prime Minister, two broad but mutually exclusive assumptions were made about his political future. First, he would have to settle for a ministerial portfolio in someone else's cabinet for much of his career. Or second, he was still young enough (53 at the time) to lead his party and country again when the opportunity arose. As it turned out, he returned to power five years later. And if that wasn't enough, he governed for a record, uninterrupted seven-and-a-half years thereafter.

However, as an exhausted and emotional Mr Abe last week announced his resignation for a second time, it became clear that he would leave office not with a bang but a whimper – like he did in 2007. Pledging to stay on as a caretaker prime minister until his party finds a replacement, he blamed his failing health for his decision to quit – again, like he did 13 years ago.
And yet, even though Abe 2.0 is unlikely to end with as much of an anticlimax as the beta version did, his supporters will be justified in thinking that – after dominating Japanese politics for almost a decade – this wasn't how it was supposed to end.

To understand why not, it is important to quickly recap how it began.
In 2007, Mr Abe learnt that he needed an image makeover. He had been perceived as a weak leader, presiding over a cabinet full of misspeaking, scamming and barely controllable ministers. Timing is a feature of most success stories. The long night in his career that followed his unceremonious exit coincided with a period of great tumult in Japanese politics. His successors had resigned in similar circumstances and the public had grown tired of the instability. Japan needed a strong leader, he concluded, who would run the country with an iron fist.
He united the many factions within his Liberal Democratic Party – then in the opposition – made a run for the leadership position and, with some good fortune, won the contest. Within months, he led the party to victory in the national polls.

Mr Abe came to power also on the back of a raft of promises: spearheading Japan's economic revival following "two lost decades" of stagnation; revising its pacifist constitution that bars it from going to war unless attacked first; resolving the Northern Territories dispute with Russia and securing Tokyo's bid to host the 2020 Olympics before, presumably, signing off once the Games were successfully held.
His agenda was ambitious enough and his message was clear enough to excite the public.
Another lesson Mr Abe imbibed from his first stint was never to apologise or show contrition for mistakes made by his government. It worked, but only to an extent – and when the going was good.
Periodic successes – from the victorious bid to host the Olympics to improvement in Japan's ties with China to the success in creating a 11-nation trade zone against all odds – gave the public enough reason to overlook some of the controversies that Abe 2.0 had been dragged into over the years.

But as his administration gradually began to face economic problems, it received increasingly bad press over a number of scandals. That Mr Abe’s own family was implicated in one involving an illegal fund allocation for the building of a school grated immensely with the public.

Despite the hits and misses, Mr Abe should be remembered for the way he conducted himself on the world stage

And yet, aided by the lack of a visible alternative among the splintered opposition parties, Mr Abe stood his ground in the hope that a successful Olympic Games would revive the nation’s flagging spirits and cement his legacy. As fate would have it, though, the Covid-19 pandemic has forced the postponement of the Games to 2021 – with some suggestions that it may even get cancelled.

Worse, the government has been criticised for its poor handling of the health crisis, in sharp contrast to the effective manner in which China, South Korea and Taiwan have dealt with this global challenge.
Given all this, it is fair to wonder how much longer a physically fit Mr Abe would have been able to hold on to power.
Now that he has resigned, however, a far more pertinent question concerns his legacy.
While he may be leaving office without delivering on a number of signature promises, Mr Abe's tenure is by no stretch of the imagination a failure. Much like Barack Obama's critics unfairly suggest that his only achievement remains becoming the first black US president, distilling Mr Abe's accomplishments to the singular fact that he is today Japan's longest-serving elected leader will be similarly harsh.

People watch a public broadcast of Japanese Prime Minister Shinzo Abe announcing his resignation during a televised news conference in Tokyo, Japan, 28 August. Kimimasa Mayama / EPA
People watch a public broadcast of Japanese Prime Minister Shinzo Abe announcing his resignation during a televised news conference in Tokyo, Japan, 28 August. Kimimasa Mayama / EPA

Indeed, Mr Abe's accomplishments are notable. He brought stability to government after a decade of tumult. His “Abenomics” policy proved moderately successful, reviving economic growth and ending a deflationary spiral.

He improved international trade with the US and reformed certain industries, notably Japan's notoriously difficult agriculture sector. And despite America's withdrawal from the Trans-Pacific Partnership, he rallied together the other countries to create another trade pact – although legislatures in some countries have yet to ratify the deal.
Mr Abe's admirable determination to get more women to the workplace may have failed – as has his controversial and unpopular plan to revise the constitution.

But given Japan's labour shortage and the need for the country to bolster its national security in an increasingly multipolar world, it may be a question of when, and not if, Mr Abe's successor – whoever that may be – will be able to enact these reforms.
Despite the hits and misses, and irrespective of the imperfections, Mr Abe should be remembered for the way he conducted himself on the world stage. Former US president Harry Truman once defined a statesman as a politician who had been dead for 15 years.

Mr Abe, however, proved that you can be both a politician and a statesman at the same time. In an era of demagogues and self-styled strongmen bent on ripping up the decades-old rules-based order, the Prime Minister's leadership will be missed after he has left the stage.

Chitrabhanu Kadalayil is an assistant comment editor at The National

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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.

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“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.

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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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5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed