The US Capitol in Washington is seen in the evening hours last week. The Senate continues to debate the latest Covid-19 relief bill. Getty Images
The US Capitol in Washington is seen in the evening hours last week. The Senate continues to debate the latest Covid-19 relief bill. Getty Images
The US Capitol in Washington is seen in the evening hours last week. The Senate continues to debate the latest Covid-19 relief bill. Getty Images
The US Capitol in Washington is seen in the evening hours last week. The Senate continues to debate the latest Covid-19 relief bill. Getty Images

Washington is broken. Here's one way to fix it


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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
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
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
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

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7.40pm: Curlin Stakes – Listed Handicap (TB) $88,000 (D) 2,200m

8.15pm: UAE Oaks – Group 3 (TB) $125,000 (D) 1,900m

8.50pm: Zabeel Mile – Group 2 (TB) $163,000 (T) 1,600m

9.25pm: Balanchine – Group 2 (TB) $163,000 (T) 1,800m

10pm: Al Shindagha Sprint – Group 3 (TB) $130,000 (D) 1,200m

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 National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

MATCH INFO

Uefa Champions League last 16, second leg
Liverpool (0) v Atletico Madrid (1)
Venue: Anfield
Kick-off: Thursday, March 12, midnight
Live: On beIN Sports HD

Episode list:

Ep1: A recovery like no other- the unevenness of the economic recovery 

Ep2: PCR and jobs - the future of work - new trends and challenges 

Ep3: The recovery and global trade disruptions - globalisation post-pandemic 

Ep4: Inflation- services and goods - debt risks 

Ep5: Travel and tourism 

Specs

Engine: Dual-motor all-wheel-drive electric

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Power: 905hp

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Start-up hopes to end Japan's love affair with cash

Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.

Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.

Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.

Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.

Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.

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1.45pm: Handicap (TB) Dh80,000 (Dirt) 1,400m
Winners: Hyde Park, Royston Ffrench (jockey), Salem bin Ghadayer (trainer)

2.15pm: Conditions (TB) Dh100,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard

2.45pm: Conditions (TB) Dh100,000 (D) 1,200m
Winner: Hurry Up, Royston Ffrench, Salem bin Ghadayer.

3.15pm: Shadwell Jebel Ali Mile Group 3 (TB) Dh575,000 (D) 1,600m
Winner: Blown by Wind, Xavier Ziani, Salem bin Ghadayer

3.45pm: Handicap (TB) Dh72,000 (D) 1,600m
Winner: Mazagran, Tadhg O’Shea, Satish Seemar.

4.15pm: Handicap (TB) Dh64,000 (D) 1,950m
Winner: Obeyaan, Adrie de Vries, Mujeeb Rehman

4.45pm: Handicap (TB) Dh84,000 (D) 1,000m
Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly.

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The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

Emergency phone numbers in the UAE

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

The specs

Engine: 3.0-litre six-cylinder MHEV

Power: 360bhp

Torque: 500Nm

Transmission: eight-speed automatic

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Results

1.30pm Handicap (PA) Dh50,000 (Dirt) 1,400m

Winner Al Suhooj, Saif Al Balushi (jockey), Khalifa Al Neyadi (trainer)

2pm Handicap (TB) 68,000 (D) 1,950m

Winner Miracle Maker, Xavier Ziani, Salem bin Ghadayer

2.30pm Maiden (TB) Dh60,000 (D) 1,600m

Winner Mazagran, Tadhg O’Shea, Satish Seemar

3pm Handicap (TB) Dh84,000 (D) 1,800m

Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer

3.30pm Handicap (TB) Dh76,000 (D) 1,400m

Winner Alla Mahlak, Adrie de Vries, Rashed Bouresly

4pm Maiden (TB) Dh60,000 (D) 1,200m

Winner Hurry Up, Royston Ffrench, Salem bin Ghadayer

4.30pm Handicap (TB) Dh68,000 (D) 1,200m

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'Project Power'

Stars: Jamie Foxx, Joseph Gordon-Levitt, Dominique Fishback

Director: ​Henry Joost and Ariel Schulman

Rating: 3.5/5

How to help

Call the hotline on 0502955999 or send "thenational" to the following numbers:

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Breaking News: The Remaking of Journalism and Why It Matters Now
Alan Rushbridger, Canongate

How to help

Send “thenational” to the following numbers or call the hotline on: 0502955999
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