Australian, British, French and Japanese navy vessels are seen during the Proliferation Security Initiative (PSI) Maritime Interdiction Exercise in Kanagawa in 2007. PSI is an effort to halt the proliferation of weapons of mass destruction. Getty Images
Australian, British, French and Japanese navy vessels are seen during the Proliferation Security Initiative (PSI) Maritime Interdiction Exercise in Kanagawa in 2007. PSI is an effort to halt the proliferation of weapons of mass destruction. Getty Images
Australian, British, French and Japanese navy vessels are seen during the Proliferation Security Initiative (PSI) Maritime Interdiction Exercise in Kanagawa in 2007. PSI is an effort to halt the proli
"Ideas shape the course of history," John Maynard Keynes boldly remarked a century ago. True to his word, the British economist almost single-handedly defined the post-Second World War international economic order through his compelling analysis of modern macroeconomics.
The so-called Bretton Woods Institutions, namely the World Bank and the International Monetary Fund, were the brainchild of Keynesian economics, which continues to dominate policymaking in the capitalist world. Similarly, ideas also play a key role in shaping geopolitics.
With the end of the Cold War, leading thinkers scrambled to define the new global order. Most famously, Francis Fukuyama triumphantly predicted “The End of History”, namely the definitive ascendancy of democratic capitalism against all rival systems of social organisation. Shortly after, his former professor at Harvard, Samuel Huntington, predicted a global “clash of civilisations”, one supposedly pitting the West against a resurgent China and the Islamic realm.
Most recently, however, it’s former US national security adviser and longtime academic Zbigniew Brzezinski’s idea of a Sino-American “Group of 2” co-domination of the world that has gained much traction. Upon closer examination, however, it’s clear that 21st-century geopolitics is becoming so complex, contested and unpredictable that no single or two superpowers can reign over the world.
Instead, the future of the world will be largely defined by the so-called “middle powers”, which have sufficient capacity to not only defend their own interests but also constructively shape a brave new global order. In the coming decades, sustained co-operation among middle powers is essential to addressing existential challenges posed by accelerated climate change, technological disruption and heightened superpower rivalry.
Traditionally, the world has often been divided into great powers (rulers) and the rest (subjects). The Greek historian Thucydides once lamented: "The strong do what they can and the weak suffer what they must.”
But this binary description of the world is both simplistic and misguiding. The ancient Chinese sage Mencius rightly advanced a more nuanced picture, whereby middle-sized kingdoms in the East can play a key role in restraining the imperial excesses of larger rivals and, at times, even prevent widespread atrocities against smaller kingdoms.
More refined Greek thinkers also divided the Mediterranean realm into superpower “magnates” such as Athens, Sparta and Persia; middle-sized city-states such as Corinth and Syracuse; as well as weaker and more vulnerable counterparts such as Sicily and Ionia.
The concept of “middle powers” was further enhanced by Renaissance era Italian philosopher Giovanni Botero, who analysed a three-dimensional international order composed of not only grandissime (empires) and piccioli (small powers) but mezano (middle powers) polities.
Zbigniew Brzezinski’s idea of a Sino-American co-domination of the world has gained traction. But 21st-century geopolitics is more becoming complex. AFP
As in the dynamic city-states of Venice and Florence, the mezanopolities, Botero observed, had "sufficient strength and authority" to not only hold their own, but even contribute to the global efflorescence of modern arts and sciences.
Modern French thinker L'Abbe de Mably built on Botero's work by forwarding the concept of "second order" powers (puissances), which can effectively mediate interactions between "first-order" superpowers and "third-order" smaller powers. The 1815 Paris Conference, which effectively ended the Napoleonic Wars, saw middle-sized Germanic kingdoms playing an active role in bringing about almost a century of relative peace and prosperity in the continent.
Since the end of the Second World War, countries such as Canada and Australia have fully embraced their status as “middle powers”, given their demonstrated ability to shape the global agenda on key issues such as economic integration and disarmament; help contain destructive rivalries among superpowers; and, at times, even influence geopolitics in their respective regions.
For instance, Canada played a central role in the development of, among others, the universal doctrine of Responsibility to Protect, which obliges nation-states to protect their populations against mass atrocities. Former Australian prime minister Kevin Rudd, a Mandarin-speaking Asia hand, has played a pivotal role in mediating US-China relations in the past two decades.
More recently, nations as varied as Indonesia, Singapore, South Korea and the UAE have also been described as middle powers, given their increasing role in shaping geopolitics in their respective regions as well as contributing to global initiatives in the realm of conflict-resolution, cultural development, and science and technology.
Often, larger or more well-endowed countries such as Japan, India, Brazil and Germany have also been described as middle powers or “emerging superpowers”, since they still lack the global military footprint of the likes of the US, China or even Russia.
The brewing 'New Cold War' between the US and China poses an existential challenge to the world. Reuters
What “middle powers”, in varying sizes, have in common are their capacity for self-defence and projection of power; coalition-building and constructive contribution to international peace and development; and their credibility and creativity in diplomacy and soft power.
In the 21st century, co-operation among middle powers is indispensable to preserving global peace and prosperity. To begin with, the very physics of power is changing, thus preventing a single or two superpowers from calling the shots as in the past eras.
We live in a world that is more populated, more mobile, and more ambitious than ever in human history. As veteran diplomat and leading geopolitical thinker Naim Moises observed in his oft-cited 2013 book The End of Power, ours is a "world where [too many] players have enough power to block everyone else's initiatives, but no one has the power to impose its preferred course of action".
There are three existential challenges, where middle powers can make a huge difference with strategic proactiveness and institutionalised co-operation. The first area is the brewing “New Cold War” between the US and China, featuring not only belligerent rhetoric and trade and tech wars but also potentially explosive naval showdowns across the Indo-Pacific.
Given their relatively robust ties with both antagonists, and their commitment to international law and globalisation, middle powers, from Germany to Indonesia, can and should play a key role in preventing an all-out conflict and nudging the two superpowers towards dialogue and engagement.
Global co-operation, including between the US and China, is urgently needed in the context of a raging pandemic, which has wrought havoc across the world.
The world’s leading AI experts such as Kai Fu Lee expect the full economic impact of new technologies within the next decade or so. Chris Whiteoak / The National
In the 21st century, co-operation among middle powers is indispensable to preserving global peace and prosperity
The second area of major concern is technological disruption, especially with the advent of so-called Fourth Industrial Revolution, where machine learning and AI are threatening even white-collar jobs such as accounting, lawyering and journalism. The world’s leading AI experts such as Kai Fu Lee expect the full economic impact of new technologies within the next decade or so.
New technologies tend to create new jobs, but developing countries and less-educated demographics are particularly vulnerable. According to the International Labour Organisation, in South-East Asia alone, up to 137 million jobs, predominantly in the manufacturing sector, are vulnerable to full automation.
Middle powers can contribute to creation of alternative digital economy platforms, intelligence-augmenting technologies and global regulations, which mitigate massive labour market disruption, protect individual privacy, and prevent fully monopolistic practices by Big Tech companies.
Finally, and perhaps most crucially, the middle powers should proactively contribute to the effective implementation of necessary global regimes, including the Paris Agreement, which will mitigate climate change through renewable energy innovations as well as help vulnerable countries to cope with extreme weather conditions.
Otherwise, mega-cities such as Kolkata and Jakarta or populous nations such as Bangladesh may not even make it to the end of this century, as rapidly rising sea-levels and evermore unpredictable climactic conditions ravage the poorest nations.
Instead of holding onto outdated modes of thinking, or seeing the world through the prism of US-China competition alone, it’s important to recognise the need for new forms of co-operation by a new set of increasingly important global players, namely the often overlooked yet nimble middle powers.
As Keynes once famously said, “When the facts change, I change my mind. What do you do, sir?”
Richard Javad Heydarian is a professorial chairholder in geopolitics at Polytechnic University of the Philippines and author of, among others, 'The Indo-Pacific: Trump, China and the New Struggle for Global Mastery'
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Things Heard & Seen
Directed by: Shari Springer Berman, Robert Pulcini
Starring: Amanda Seyfried, James Norton
2/5
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.”
Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.