A student on their way to Bogazici University while Turkish riot police stand guard behind barricades. EPA
A student on their way to Bogazici University while Turkish riot police stand guard behind barricades. EPA
A student on their way to Bogazici University while Turkish riot police stand guard behind barricades. EPA
A student on their way to Bogazici University while Turkish riot police stand guard behind barricades. EPA

Students are on the front line against corruption in Turkey


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The overreach of President Recep Tayyip Erdogan is creeping into Turkey's university sector. In response, students from one of the country's elite institutions are pushing back.

Protests began in response to the appointment of Melih Bulu as rector at Istanbul’s Bogazici University. The institution was founded in 1863 and has a reputation for being among the most meritocratic in the country. It often recruits talented students from disadvantaged backgrounds, offering them a world-class education. It has a proud democratic approach to electing senior staff.

Mr Bulu breaks from this tradition. He ran for local office in 2015 for President Erdogan's Justice and Development Party (AKP). Many argue that a state-appointed rector – with a questionable academic record, having been accused of plagiarising parts of his doctoral thesis – insults the spirit of academic freedom. Graduates of the university are so angry that protests have taken place across the globe, in cities such as Paris, Berlin, Eindhoven, Sydney and Toronto.

This will not deter Mr Bulu and his backers. Corrupt leaders always consider independent universities as a threat to their rule. And students are often among the first citizens in a nation to identify problems in a country's governance. In Lebanon, for example, recent protests highlighted Lebanon's crumbling and corrupt state, which deteriorates by the day at the expense of Lebanese young people and their futures.

Those at universities like Bogazici graduate from their studies schooled in liberal social, political and cultural ideas. They are often firm defenders of Turkey's secular identity. Crucially, they also emerge with a knowledge of English – foreign language skills are limited in the nation – exposing them to counter-arguments in the international media against Mr Erdogan.

Turkey's president has already weakened universities by firing thousands, possibly tens of thousands of academics, citing vague accusations that they were involved in an attempted coup against him in 2016. While weakening universities at home, he has strengthened a new generation of religious higher education institutions, in what has been described as a neo-Ottoman bid to de-secularise degrees, often encouraging under-privileged young people from Muslim Balkan states to study his new brand of Turkish education.

A shopping district in Istanbul, Taksim Square, largely empty during a nation-wide weekend curfew to prevent the spread of Covid-19. Reuters
A shopping district in Istanbul, Taksim Square, largely empty during a nation-wide weekend curfew to prevent the spread of Covid-19. Reuters
Students are often among the first citizens in a nation to identify problems in a country's governance

Mr Erdogan is pursuing this campaign to quash bastions of opposition to his rule, and strengthen his populist base. Those who care about Turkey's future should take note. Students are the canary in the coalmine, warning us of a bleak future, in which the country drifts away from its secular, liberal roots. Universities will die if political favouritism becomes the norm. Mr Erdogan's government has a record in this regard. In 2018, Mr Erdogan appointed his son-in-law, Berat Albayrak, as the country's finance minister – only to remove him in recent weeks as the economy went into repeated crises. This could squander the futures of the brightest among the country's youth, an orchestrated tragedy just to secure his position.

A key feature of populism is the contempt it holds for academic elites, exactly the sort of people at Bogazici University. In normal times, graduates would have been future leaders of the country. They are, therefore, not just a threat to Mr Erdogan's current position, but also his legacy, which seeks to permanently steer Turkey down a different path than the liberal one intended by its founders.

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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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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