A report released on Tuesday by the UN Population Fund (UNFPA) warns of “tectonic population changes [that] will shape the future of humanity for generations to come”. The cause is a decline in global fertility rates “at a breathtaking scale and pace”.
The UN has, up until now, been loath to give a view on fertility, perhaps because it is such an explosive subject. The issue of whether our species should have fewer children or more is often tangled up in debates about climate change, feminism, resource scarcity and even racism.
In his influential “Essay on the Principle of Population”, published in 1798, the demographer Thomas Malthus argued the human population would eventually outgrow the planet’s resources. Although our numbers have increased eight-fold since then, Malthusian fears have proved largely unfounded. As countries became richer, their fertility levels fell. While birth rates remained high in much of the developing world over the past century, it was generally accepted that these, too, would fall as these societies became more prosperous.
The theory behind this is that because wealthier societies enjoy greater life expectancy, lower child mortality, improved female literacy and independence, and more urbanised lifestyles, their adults are less likely to “need” many children.
Today, birth rates in much of the developing world are indeed falling – but, as the UN report explains, the reasons are complex, and not altogether positive. In many cases, financial difficulty – not prosperity – is the culprit. Moreover, this is the case in some wealthier countries, too.
Across the 14 developed and developing countries the UNFPA surveyed, 39 per cent of people cited “financial limitations” as a reason for not having a child despite wanting one.
Today, birth rates in much of the developing world are indeed falling – but the reasons are complex, and not altogether positive
Time is another issue. Modern life often demands several hours a day in commute time or employment in a second job. That leaves less time for child-rearing.
The result is a kind of dark mirror of the refutation to Malthus. Development and modernity appear to have overcorrected in freeing us from the burden of unsustainably large families – they are now beginning to box us into unsustainably small ones.
“One in four people currently live in a country where the population size is estimated to have already peaked,” the UNFPA points out. “The result will be societies as we have never seen them before: communities with larger proportions of elderly, smaller shares of young people, and, possibly, smaller workforces.” By the end of the century, the global population could shrink for the first time since the 1300s, when the Black Death ravaged Europe and Asia.
In some wealthier countries where birth rates have already plummeted, the debate has become polarised. Some pro-natalists – advocates of more births – warn of native populations being “replaced” by foreign immigrants, while others predict a collapse in pension systems as the workforce diminishes. Some of Malthus’s intellectual descendants, meanwhile, point to climate change as a reason to welcome population decline.
According to the UNFPA, however, these concerns are beside the point. The real crisis in this picture, it says, is the growing lack of reproductive agency. Millions of families around the world are unable to have as many children as they’d like, but millions of others are also having more than they intended. The former is fast overtaking the latter as the dominant trend, but in both cases the problem is that a huge number of couples feel they do not have control over the size of their families.
This is a reminder that while it is, of course, important to have policy discussions that promote sustainable population growth, ultimately the guiding principle of fertility ought to be freedom – ensuring that couples are fully empowered to build the kind of family that works best for them.
That is a very different – and much more fruitful – way of framing the matter.
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Platforms: PlayStation 5, Xbox Series X/S, PC
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- Individuals must register on UAE Drone app or website using their UAE Pass
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- Upload the training certificate from a centre accredited by the GCAA
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What are the regulations?
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Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
Recycle Reuse Repurpose
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
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Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill
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March 4-8: First Test, Rawalpindi
March 12-16: Second Test, Karachi
March 21-25: Third Test, Lahore
March 29: First ODI, Rawalpindi
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April 5: T20I, Rawalpindi
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UAE currency: the story behind the money in your pockets
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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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