The ever-changing political alliances in Lebanon are always cause for concern. Reuters
The ever-changing political alliances in Lebanon are always cause for concern. Reuters

Lebanon's proportional representation law may suit politicians, but it may also shoot them in the foot



This past weekend, a leading Christian politician, Gebran Bassil, visited the Chouf mountain region that has, for decades, been the electoral stronghold of Druze leader Walid Jumblatt. Mr Bassil was preparing for Lebanon's parliamentary elections, scheduled to be held in May 2018, and his tour said something about the country's new election law.

This year, parliament passed a law based on proportional representation, which was a revolution of sorts in Lebanese politics. The intention was not so much to open the political landscape to hitherto unrepresented political groups (though this law may do so), but rather, to challenge the control of electoral districts by certain powerful national politicians.

The reason for this is that the old system, based on open lists for elections held on a winner-take-all basis at the level of the qada, or small administrative district, allowed influential politicians to secure victories for most or all of their candidates, giving them large parliamentary blocs. By undermining that and allowing rivals to enter parliament, the proportional system will effectively weaken these leaders’ representation.

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This is hardly fortuitous. One of the main backers of the new law was Hizbollah, which anticipated that proportional representation would fragment parliament and in that way, ensure that the party would face no concerted opposition to its political priorities in the future. Indeed, the biggest relative losers are expected to be two of the politicians who once were part of the March 14 alliance opposed to Hizbollah, namely Mr Jumblatt and the current prime minister, Saad Hariri.

However, the proportional law may also do something else. It will compel leading politicians in most districts to form alliances with their major potential rivals in the constituencies that they dominate in order to secure significant majorities for the joint lists that are formed. Cross-political alliances can only reinforce national conciliation.

That is why Mr Bassil went to the Chouf, and it is why Mr Jumblatt had no choice but to welcome him to the region. The Druze leader realises that Mr Bassil's Aounist movement has support among many Christians in the Chouf, so it is in his interest, if only to preserve Christian-Druze amity, to form a joint list with the Aounists, and perhaps another leading Christian party with support, the Lebanese Forces.

While Mr Jumblatt will not run himself (his seat will be taken over by his son), he does seek to retain a prominent role in the Chouf as the sponsor of post-war Christian-Druze reconciliation there. That means that while he may have to accept several Christian candidates on the list he sponsors who are not beholden to him, and who belong to political parties he has considered rivals in the past, the Druze leader will still be regarded as the main power broker in the Chouf region.

One question is what will happen to the two main Shiite parties, Hizbollah and the Amal Movement? Because the two have considerable sway over their community, the likelihood that smaller parties will make a breakthrough into parliament at their expense in mainly Shiite districts seems less likely, though not impossible. That is why there has been talk that the two will form an alliance and quietly back friendly rival lists, to ensure that anyone entering parliament will not truly oppose them.

Indeed, such a tactic may be attempted by other politicians as well. But for it to work, politicians or parties have to have broad power within their electoral districts and sects, which almost nobody other than Hizbollah and Amal enjoys. Even Mr Jumblatt, whose power over the Druze is uncontested, only controls approximately a third of the vote in the Chouf that is Druze, which means he has to agree with the third of the electorate that is Christian and the third that is Sunni Muslim to win.

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A fragmented parliament will benefit Hizbollah, which is not to Lebanon’s advantage. However, beyond that, it could shake up a political system that has long been closed to those who were not members of the political elite. In that regard, it could be an opening that is a boon for civil society reformists who decide to enter parliament in defence of a programme. While their chances will always be limited, the system has not yet been tested to see in what ways independents might gain.

One politician who can probably be expected to suffer from the law is Mr Hariri. Gone are the days when the prime minister could win the largest bloc in parliament thanks to the widespread support he had within his Sunni community. His absence from Lebanon between 2011 and 2016 lost him much support, while his economic problems undermined his powers of patronage. If one had to predict a big loser through the new law, Mr Hariri may be that person.

The reality is that the major political forces in Lebanon supported the law either because their political interests forced them to go along with it, such as Mr Hariri, or because they thought it would weaken their rivals, as did Hizbollah. However, at a time when the political class is regarded with widespread disdain by many Lebanese, the law may pack some surprises that the politicians failed to predict.

Michael Young is editor of Diwan, the blog of the Carnegie Middle East programme, in Beirut

Sweet Tooth

Creator: Jim Mickle
Starring: Christian Convery, Nonso Anozie, Adeel Akhtar, Stefania LaVie Owen
Rating: 2.5/5

UAE athletes heading to Paris 2024

Equestrian
Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).
Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).

Cycling
Safia Al Sayegh (women's road race).

Swimming
Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).

Athletics
Maryam Mohammed Al Farsi (women's 100 metres).

KEY DATES IN AMAZON'S HISTORY

July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to Amazon.com, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington

July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon

1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024

1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs

2000: Amazon Marketplace opens, allowing people to sell items on the website

2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006

2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black

2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year

2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video

2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started

2009: Amazon introduces Amazon Basics, its in-house label for a variety of products

2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013

2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS

2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa

2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition

2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone

COMPANY PROFILE

Name: Kinetic 7
Started: 2018
Founder: Rick Parish
Based: Abu Dhabi, UAE
Industry: Clean cooking
Funding: $10 million
Investors: Self-funded

Green ambitions
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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.”

Company Profile

Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices

Kill Bill Volume 1

Director: Quentin Tarantino
Stars: Uma Thurman, David Carradine and Michael Madsen
Rating: 4.5/5

Karwaan

Producer: Ronnie Screwvala

Director: Akarsh Khurana

Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar

Rating: 4/5

Gulf Men's League final

Dubai Hurricanes 24-12 Abu Dhabi Harlequins

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Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte

Three-and-a-half stars

TWISTERS

Director: Lee Isaac Chung

Starring: Glenn Powell, Daisy Edgar-Jones, Anthony Ramos

Rating: 2.5/5

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Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed

UAE athletes heading to Paris 2024

Equestrian
Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).


Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).


Cycling
Safia Al Sayegh (women's road race).

Swimming
Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).

Athletics
Maryam Mohammed Al Farsi (women's 100 metres).

AIDA RETURNS

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Starring: Aida Abboud, Carol Mansour

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Director: Payal Kapadia

Starring: Kani Kusruti, Divya Prabha, Chhaya Kadam

Rating: 4/5