New US President Joe Biden has hit the political ground running. Confronted by huge crises, most immediately the coronavirus pandemic and associated economic downturn, Mr Biden has wasted no time in initiating one of the most ambitious governance agendas in American history. But much of it may hang on the future of a poorly understood and arcane Senate rule known as the filibuster.
Democrats and Republicans are now split evenly in the 100-seat Senate, which must approve all legislation.
If there is a strict party-line vote of 50-50, Vice President Kamala Harris can cast a tiebreaking 51st vote. That solves Mr Biden's problems if all Democrats support his preferred legislation and a simple majority is required for passage, as is the case in the House of Representatives and almost all legislative bodies around the world.
That's how it was in the Senate, too, originally, but over time a system has evolved where, on most legislation, a super-majority of 60 is needed to "end debate" and allow a vote.
During the presidency of Barack Obama, the routine use of the filibuster by Republican Senate leader Mitch McConnell – who said his main priority was to try to ensure that Mr Obama was a one-term president – illustrated how the filibuster has become a crippling obstacle.
It's clear that elimination or reform of the filibuster is necessary for the US government to operate without relying almost entirely, as both Mr Obama and his successor Donald Trump did, on executive orders.
The US Senate is arguably the world’s most eccentric legislative body. And the filibuster is the most noxious of its byzantine maze of irrational rules. As Alexander Hamilton and other framers of the Constitution noted, the disastrous Articles of Confederation – the first American system – demonstrated that requiring super-majorities might seem to invite compromise, but in practice invariably promotes obstruction.
The Constitution avoided super-majorities except for impeachment and constitutional amendments because its framers had seen that minorities find it hard resist the temptation to embarrass majorities by blocking them at every stage if they easily can – exactly as in the contemporary Senate.
The change developed slowly.
US President Joe Biden sits next to Senate Majority Leader Chuck Schumer as he meets Democratic senators in the Oval Office at the White House on February 3, 2021. Reuters
The Senate abolished the power of a simple majority to force a vote on an issue, essentially by mistake, when it revised its rules in 1806. This loophole was later seized upon by defenders of slavery led by the notorious Sen John Calhoun. Later still, it became a favourite tool of segregationists, led by Sen Richard Russell. In 1917, Senate Rule 22 set the required number to allow a vote at two thirds. In 1975, it was reduced to three fifths, or 60 votes.
During the 20th century, filibusters were rare, primarily used by southern senators to block civil rights legislation and defend white supremacy. In the 21st century, however, the filibuster has become a constant feature of all Senate business.
Mr Obama faced such obstructionism on his appointments that his Senate allies eliminated super-majorities for confirming officials in 2010. Republicans extended that to include Supreme Court nominations in 2017.
Mr Biden just got his $1.9 trillion coronavirus relief package passed in both the House and the Senate, but only because of another bizarre rule: budget reconciliation. Created in 1974, it allows certain budgetary measures to be passed by simple majority – an obvious acknowledgment that the filibuster makes essential governance unworkable. "Reconciliation" is also how Mr Trump passed his only significant piece of legislation, a huge tax cut for corporations and the wealthy.
The Senate calls itself "the world's greatest deliberative body". That's risible. In fact, it is no longer a deliberative body at all. These days, reconciliation aside, it is not a governing body either. As veteran Senate staffer Adam Jentleson explains in his new book Kill Switch, the Senate now typically functions as an override mechanism shutting down legislative work altogether.
That suits Republicans, who have in recent times become a persistently minority party. They have also become a doggedly obstructionist party, whose only guiding principle appears to be unshakable loyalty to Mr Trump and alignment with his mercurial views. But even before the Trump personality cult, Republicans were clear on what they categorically opposed, but had virtually no practical agenda. For example, they zealously opposed Obamacare, but for more than a decade have never proposed any healthcare alternative.
Mr Biden wants to follow the now-adopted coronavirus bill with a major infrastructure initiative, climate change proposals and other urgent measures. Since few Republicans appear willing to support even the coronavirus package, it is hard to see how Democrats can forego reforming or eliminating the filibuster.
US Senator Lindsey Graham speaks during a news conference in Washington on Friday. Senate Democrats face a gauntlet of Republican attempts to rein in President Joe Biden's $1.9 trillion stimulus package. Bloomberg
That won't be easy. Even a simple majority will be elusive because some conservative Democratic senators, especially Joe Manchin of West Virginia, will probably resist major changes. That’s partly to mollify Republican-leaning constituents. More importantly, the filibuster ensures their institutional clout. Without it, Mr Manchin and the others would be far less relevant. As things stand, they are central to most horse-trading.
Major filibuster reform, at a minimum, is essential to Mr Biden's prospects. Use of the filibuster could be restricted, the numbers required reduced, or other measures taken to limit its obstructionist power.
The filibuster originated in a mistake, mainly took shape in defence of slavery, was largely consolidated in defence of segregation, and now functions, as it always has, primarily as a tool of a recalcitrant minority blocking majority decisions. Indeed, it's now central to chronic American minority rule.
Republicans will claim Democrats are acting cynically and will regret such reform when Republicans once again have a majority. But it's irrelevant. Obstruction by Democrats wouldn't be particularly preferable to that by Republicans. Obstruction itself is the problem.
Then US president Barack Obama, left, talks to then Senate minority leader Mitch McConnell in 2014. McConnell used the filibuster to obstruct Obama's plans. Bloomberg
The obvious institutional and political imperative for reform is far more important than motivations. And it's likely that, without a powerful filibuster, the incentives and potential for cross-party compromises would actually greatly increase in the Senate.
Many Democratic traditionalists, including Mr Biden, are uneasy about reforming, let alone eliminating, the filibuster. But their agenda and fortunes depend on it. Moreover, elimination or at least reform of the filibuster would restore rationality and the original constitutional design to the Senate.
The excision of this malignant tumour from one of the central organs of the American body politic is one of the greatest legacies this Senate and the Biden administration can bequeath to future generations.
Hussein Ibish is a senior resident scholar at the Arab Gulf States Institute and a US affairs columnist for The National
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
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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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German intelligence warnings
2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
MATCH INFO
Uefa Champions League semi-final, second leg
Real Madrid (2) v Bayern Munich (1)
Where: Santiago Bernabeu, Madrid
When: 10.45pm, Tuesday
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Building boom turning to bust as Turkey's economy slows
Deep in a provincial region of northwestern Turkey, it looks like a mirage - hundreds of luxury houses built in neat rows, their pointed towers somewhere between French chateau and Disney castle.
Meant to provide luxurious accommodations for foreign buyers, the houses are however standing empty in what is anything but a fairytale for their investors.
The ambitious development has been hit by regional turmoil as well as the slump in the Turkish construction industry - a key sector - as the country's economy heads towards what could be a hard landing in an intensifying downturn.
After a long period of solid growth, Turkey's economy contracted 1.1 per cent in the third quarter, and many economists expect it will enter into recession this year.
The country has been hit by high inflation and a currency crisis in August. The lira lost 28 per cent of its value against the dollar in 2018 and markets are still unconvinced by the readiness of the government under President Recep Tayyip Erdogan to tackle underlying economic issues.
The villas close to the town centre of Mudurnu in the Bolu region are intended to resemble European architecture and are part of the Sarot Group's Burj Al Babas project.
But the development of 732 villas and a shopping centre - which began in 2014 - is now in limbo as Sarot Group has sought bankruptcy protection.
It is one of hundreds of Turkish companies that have done so as they seek cover from creditors and to restructure their debts.
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