A man walks through rubble in Bhaktapur near Kathmandu. Menahem Kahana / AFP
A man walks through rubble in Bhaktapur near Kathmandu. Menahem Kahana / AFP
A man walks through rubble in Bhaktapur near Kathmandu. Menahem Kahana / AFP
A man walks through rubble in Bhaktapur near Kathmandu. Menahem Kahana / AFP

Lessons Nepal can learn from its tragic twin Haiti


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Nepal faces a Himalayan task: it must overcome the aftershocks of history just as much as the effects of Saturday's calamitous earthquake. As with Haiti, also a historically impoverished, poorly governed country hit by a devastating quake, Nepal may find it a struggle to "build back better". Bill Clinton crafted the memorable slogan after the "goudo goudo" – the onomatopoeic Creole name the Haitians gave the 2010 quake in memory of its frightening rumble. Now, Mr Clinton's phrase is used wryly, if not in outright jest.

Unsurprisingly, development do-gooders are cautious about suggesting Nepal build back better, even at this point, four days after the quake, when the world feels its pain most acutely.

For, the slow, ineffective – in some cases, even impossible –search for survivors in Nepal’s remote, hardest-hit western regions illustrates the massive fault lines of its entrenched problems: acute poverty, political dysfunction, rampant corruption and a deep fatalism that inhibits planning.

Those infuriatingly inaccessible western districts were the ones that suffered such prolonged government neglect that the violent Maoist insurgency first took root there nearly 20 years ago. And it says a great deal that those areas still remain so cut off from Kathmandu that earthquake relief packages cannot reach them, and there seems to be no way to assess deaths and damage. The Maoists, supposedly the party of the poor, have been elected – and rejected. The monarchy has been swept away. Nothing has changed and nothing works. For Nepal, its worst earthquake in 80 years has been “an acute-on-chronic event”, to quote Harvard doctor and Haiti champion Paul Farmer on the Haitian catastrophe.

The two countries make for a tragic twinning. Until this earthquake, perhaps the only time the words “Haiti” and “Nepal” appeared in one sentence was in reference to the cholera epidemic unwittingly introduced by Nepalese United Nations peacekeepers stationed in Haiti. It seemed an excessively cruel twist to a pathetic story – dirt-poor Haiti, levelled by a devastating earthquake and infected by soldiers from an equally poor faraway land. But now, the two earthquakes – five years apart – may have created discouragingly new parallel lines of protracted woe.

The Nepalese quake was 16 times stronger than that in Haiti. More than 200,000 people died in Haiti; what will be the final toll in Nepal? The world gave tens of millions of dollars to Haiti in the biggest-ever outpouring of humanitarian relief ever but the country is little better than it was before the disaster. Is there any point in paying out to rebuild an equally fragile country like Nepal? Five frustrating years of helping Haiti get on its feet will undeniably tinge the world’s generosity towards Nepal with cynicism.

But if Haiti is a cautionary tale, it could also be a template for what not to do.

First, it would be reductive to bypass Nepalese institutions, however inept, corrupt and obstructive they seem. As Dr Farmer lamented in his book, Haiti After the Earthquake: "It's hard to imagine public health without a public sector, and the same could be said for public education and public works." Yet, in Haiti, less than 10 per cent of spending for relief and recovery went through government agencies and reconstruction projects favoured western contractors, middlemen and so-called "trauma vultures". This further weakened the country's institutions and failed, in development jargon, "to build capacity".

Second, nimble non-governmental organisations work best. They should be registered with the local authorities or a designated disaster relief coordinator to minimise overlap of effort and the tendency to create a self-governing republic of NGOs, as happened in Haiti.

Third, possibly most important, is to speedily engage Nepal’s people in vast public works projects that provide jobs, money and a sense of being stakeholders in rebuilding their country. Shovel-ready projects – from removing rubble to building schools – can bridge the gap between short-term relief and the long-term hard slog of reconstruction. More to the point, “workfarism”, as it is called, mitigates aid dependency.

Finally, the hardest part: priming the Nepalese mindset towards contingency planning. This would mean understanding the perils of Nepal’s quake-prone geography and developing and enforcing strict building codes. Chile built up resilience after an enormous earthquake half a century ago. The result was a startling disparity between the toll of Chile’s 8.8-magnitude quake in February 2010 and Haiti’s 7.0-magnitude goudo goudo a month before. Just 525 Chileans died.

But Haiti has not fully absorbed this lesson even now and many of its people still live by a popular proverb that signifies God-given resistance: “mikwòb pa touye ayisyen” or “germs don’t kill Haitians”. In other words, hygiene won’t change outcomes; nothing can.

Fatalism can be a debilitating and stubborn condition and it is chronic in Nepal. As a senior British development worker, Jon Bennett, told the BBC after the quake, UK government investment in preparing Nepal for the inevitable ran into its “problem of attitude”. Their mindset is “fairly fatalistic”, he said, describing the difficulty of “trying to get some kind of enthusiasm for preparedness”.

If Nepal is to build back even a little better, it must believe it is not fated to be vulnerable.

rroshanlall@thenational.ae

On Twitter: @rashmeerl

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2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions