Demonstrators hold placards in front of the Tokyo Metropolitan government building during an anti-Olympic protest on Wednesday. Bloomberg
Demonstrators hold placards in front of the Tokyo Metropolitan government building during an anti-Olympic protest on Wednesday. Bloomberg
Demonstrators hold placards in front of the Tokyo Metropolitan government building during an anti-Olympic protest on Wednesday. Bloomberg
Demonstrators hold placards in front of the Tokyo Metropolitan government building during an anti-Olympic protest on Wednesday. Bloomberg

Who stands to benefit from Tokyo's pandemic Olympics?


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Who wants the summer Olympics to go ahead in Tokyo next month? Some polls show a majority of Japanese respondents oppose holding the Games, already delayed from 2020 because of Covid-19, this summer – although public opposition may be weakening as we get closer to the starting date of July 23. The government's chief medical adviser, Dr Shigeru Omi, only this month told a parliamentary committee it would be "abnormal" to hold the Olympics during a worldwide pandemic.

The highly respected New England Journal of Medicine warned that the International Olympic Committee's (IOC) determination to proceed was "not informed by the best scientific evidence". Even Japan's Emperor Naruhito has weighed in – a very rare intervention by a head of state who is constitutionally prohibited from making politically contentious statements. "The emperor is extremely worried about the current status of coronavirus infections," Yasuhiko Nishimura, the grand steward of the Imperial Household Agency, told a news conference last week. "Given the public's worries, he appears to be concerned about whether the event would cause infections to spread."

US President Joe Biden may have given his support for the Tokyo Olympics to take place as planned when he met Japan's Prime Minister Yoshihide Suga on the sidelines of the recent G7 summit, but the latest US State Department's travel advisory is blunt: "Reconsider travel to Japan due to Covid-19." At least that was better than the one issued in May: "Do not travel."

The reasons for the reluctance are obvious. Only five per cent of the Japanese people have been fully vaccinated so far. The number of cases in the country as a whole are on a downward trend, but they are going up in Tokyo, leading Mr Suga to declare on Monday: “We must be on a high state of alert in dealing with the virus.”

Despite severe restrictions on the numbers of spectators at the games, there will still be a huge influx of people – journalists, trainers, diplomats, officials and, of course, athletes. As the SoftBank tycoon Masayoshi Son tweeted last month: "If 100,000 people from 200 countries descend on vaccine-laggard Japan and the mutant variant spreads, lives could be lost, subsidies could result if a state of emergency is called, and gross domestic product could fall. If we consider what the public has to endure, I think we could have a lot more to lose."

It should not need to be stated that in countries that have yet to achieve herd immunity or high levels of vaccination, mass events of any kind are just asking for trouble. Grave diggers in Jakarta have been overwhelmed by the sharp rise in Covid-19-related deaths in Indonesia, which is partly attributable to the millions who evaded travel restrictions to go to their home towns to celebrate Eid Al Fitr.

In Malaysia, the government had managed to get the number of daily new cases down to the low three figures in June 2020. What sabotaged the good work achieved by a hard lockdown was an election in the state of Sabah, on the island of Borneo. The then chief minister called it last September because he feared losing his position, due to defections in the state assembly. He and his allies were defeated in the polls by a coalition aligned to Prime Minister Muhyiddin Yassin, so he lost his job anyway – but the unnecessary vote, with all the electioneering and impossible-to-police gatherings that went with it, led to a spike in infections not only in the state but then in the rest of the country. Having almost completely opened up, Malaysia is now enduring another gruelling lockdown as a result.

Japan's Prime Minister Yoshihide Suga, left, and Shigeru Omi, president of the Japan Community Health Care Organisation, have differing views on the Games. EPA
Japan's Prime Minister Yoshihide Suga, left, and Shigeru Omi, president of the Japan Community Health Care Organisation, have differing views on the Games. EPA
It is hard not to conclude that the impetus to keep the Olympics on is all about the money

As for Japan, the numbers of new and highly transmissible variants may be low at present. But two members of Uganda's Olympic team who arrived in the last few days have tested positive for Covid-19, and one had already travelled in a bus with local officials before being identified as being infected. It doesn't matter what "safeguards" are put in place: they could never possibly be 100 per cent effective, and restrictions on spectators, such as a ban on "talking loudly", just don't cut it. How would the latter be enforced, in any case? Will officials run around the stands saying "shhhh"?

One of the two Ugandans had the Delta variant. Australian officials have discovered that it can be passed on during encounters of only 5-10 seconds, as opposed to the 10-15 minutes of proximity we had previously been warned about over the past year or so. The risks are so enormous, it would be foolish to proceed. Dr Naoto Ueyama, chairman of the Japan Doctors Union, put it starkly last month. "Since the emergence of Covid-19, there has not been such a dangerous gathering of people coming together in one place from so many different places around the world," he said.

The IOC and Mr Suga beg to differ. They point to stringent protocols, testing, social distancing, and isolating the athletes at the Olympic Village. Mr Suga is also believed to be banking on a bounce from a successful games if he calls a snap election shortly after they finish.

But it is hard not to conclude that the impetus to keep the Olympics on is all about the money – partly the sunk costs on the part of the host nation in terms of building infrastructure and so on, but far more about the billions of dollars from broadcasting revenue that the IOC will not receive if they are cancelled.

Dr Ueyama put his finger on it when he asked: “The question is for whom are the Olympics being held and for what purpose?” It would be the most grotesque irony if an event that celebrates athleticism and health ended up causing new waves of infections as athletes, spectators and others return home and unwittingly pass new variants of the virus on – let alone the devastation it could cause in Japan.

So to paraphrase a famous sporting slogan, the Tokyo Olympics: Just. Don’t. Do. It.

Sholto Byrnes is an East Asian affairs columnist for The National

Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital

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.”