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'
The flights
Whether you trek after mountain gorillas in Rwanda, Uganda or the Congo, the most convenient international airport is in Rwanda’s capital city, Kigali. There are direct flights from Dubai a couple of days a week with RwandAir. Otherwise, an indirect route is available via Nairobi with Kenya Airways. Flydubai flies to Kinshasa in the Democratic Republic of Congo, via Entebbe in Uganda. Expect to pay from US$350 (Dh1,286) return, including taxes. The tours
Superb ape-watching tours that take in all three gorilla countries mentioned above are run by Natural World Safaris. In September, the company will be operating a unique Ugandan ape safari guided by well-known primatologist Ben Garrod.
In the Democratic Republic of Congo, local operator Kivu Travel can organise pretty much any kind of safari throughout the Virunga National Park and elsewhere in eastern Congo.
How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11 What time: Each day’s play is scheduled to start at 2pm UAE time. TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Hometown: Birchgrove, Sydney Australia Age: 59 Favourite TV series: Outlander Netflix series Favourite place in the UAE: Sheikh Zayed Grand Mosque / desert / Louvre Abu Dhabi Favourite book: Father of our Nation: Collected Quotes of Sheikh Zayed bin Sultan Al Nahyan Thing you will miss most about the UAE: My friends and family, Formula 1, having Friday's off, desert adventures, and Arabic culture and people
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
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
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.”