French president Emmanuel Macron. Francois Mori / AP Photo
French president Emmanuel Macron. Francois Mori / AP Photo
French president Emmanuel Macron. Francois Mori / AP Photo
French president Emmanuel Macron. Francois Mori / AP Photo

Half the world seems to want a Macron of its own


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The trend of voting in novice politicians, which began with the triumph of Barack Obama in 2009, is now going into overdrive. Take, for instance, French president Emmanuel Macron, who has only two years’ experience in cabinet and who formed his party only a year ago. Mr Macron is expected to win a landslide in the second round of the parliamentary election on Sunday.

The French National Assembly will be filled with Macron supporters – among them a world-class mathematician and sports and TV personalities. This will be seen as a triumph of popular democracy, where the traditional parties of centre-left and centre-right are humiliated and the extremes are all but driven out of parliament. Ordinary people will replace the professional class of politicians.

That said, it will be a bizarre triumph of democracy.

At 39, Mr Macron will wield almost untrammelled power, combining a strong executive presidency and a docile parliament without the muscles to exert opposition. More than half of the 577 members of the new legislature are likely to be new to the National Assembly, the greatest number in the 58-year history of the Fifth Republic.

This is the latest episode in what former Hillary Clinton aide Anne Marie Slaughter calls “the longing for a viable alternative” to established political parties.

It was seen in Mr Obama’s election as a one-term senator to the US presidency at the age of 46. This spawned the Trump phenomenon, where a businessman and TV personality who had never sought elected office or even had to deal with shareholders won the White House.

In Britain, there is a variation of this trend, where Theresa May, the sitting Conservative prime minister whom the right-wing press had tried to build up as a new Margaret Thatcher, was almost unseated by a supposedly unelectable outsider at the other end of the Obama-Macron age range. At 68, Labour leader Jeremy Corbyn has spent 30 years in parliament, defying the party whip and supporting far-left causes, putting ideological rigour above any attempt to exercise power.

But in these confused times, even Mr Corbyn was seen as a viable alternative for 40 per cent of the voters, just two percentage points below Mrs May. There are special circumstances here, notably the confusion of the Conservative party as it struggles with the crisis it created by calling last year’s referendum on leaving the European Union. But it shows that no outcome is unthinkable today, even Mr Corbyn as prime minister after the next election.

Now, half the world seems to want a Macron of their own, someone who can inspire hope with a plan to revive the country for the benefit of all. In the US, the anti-Trump electorate are swooning for someone who can break the Republican/Democrat stranglehold on power and ride to the White House as a third-party candidate.

In Germany – where exceptionally, politics as usual still rules – there is relief that the Mr Macron is putting his ambition for the revival of France in the context of a re-launched European Union, running against the tide of nationalism and Euroscepticism. It seems as if the malaise of France – the high unemployment, especially among youth, poor integration of North African immigrants – has been driven out by a magic wand.

What could possible go wrong for Mr Macron? Actually, quite a lot. He is determined to embark on German-style belt-tightening, reducing the number of civil servants and making it easier for firms to hire and fire. With the National Assembly probably not capable of curbing him, opposition is likely to come in the form of street protests. Some trade unions are already promising to become an extra-parliamentary opposition.

Mr Macron’s stunning success in the first round of the legislative elections was due, in part, to the far left and far right staying at home. It was the lowest turnout since the foundation of the Fifth Republic. The mass of abstainers are not closet Macron supporters.

Senior politicians of left and right who have been driven out of national politics by the Macron bulldozer are likely to retreat to their provincial fiefdoms. It is common for French politicians to serve as mayor of a town or city, which provides a haven in rough times and a springboard to return to the national stage.

French politicians have long careers. One of the candidates for the presidency from the Republicans, former prime minister Alain Juppe, has had a 40-year career in politics and served as mayor of the city of Bordeaux from 1995 to the present day, barring a two-year hiatus when he was barred from public office for misuse of public funds.

The new prime minister, Edouard Philippe, wrote before his appointment that Mr Macron should be under no illusion that his plan to remake French politics would be straightforward. ‘His path will be narrow and risky. It is hard to imagine the system letting it happen easily.’

One does not have to be a cynic to see some parallels between Mr Macron and Mr Obama, also an outsider and inexperienced in the real business of politics but a leader who was elected on a wave of hope but could not find the tools to deliver.

Mr Obama’s two terms set off a popular insurgency against the political class, and especially those who displayed their learning from an elite university. This insurgency, aided by the poor performance of Mrs Clinton as Democratic contender, paved the way for the election of president Trump. The “international” president was replaced by the “America first” candidate.

There are lessons for Mr Macron. He will need a lot of help from Germany and a favourable economic climate if he is to prevent the outbreak of an extra-parliamentary insurgency in France. If he fails, the populists and the old guard politicians are ready to pounce.

Alan Philps is a commentator on global affairs

On Twitter: @aphilps

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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.

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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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