Men sit on a bench by electoral posters near Algiers, Monday, May 1, 2017.  AP Photo / Sidali Djarboub
Men sit on a bench by electoral posters near Algiers, Monday, May 1, 2017. AP Photo / Sidali Djarboub

Voters in Algeria plan local boycott but keenly watch French election



Today, Algeria’s 23 million voters will head to polling stations to elect 462 new members of the People’s National Assembly. This is the first ballot since the constitutional amendments of 2016, but the fourth during the Algerian president Abdelaziz Bouteflika’s 18-year tenure.

Though Mr Bouteflika has set up an independent election monitoring body to counter claims of electoral fraud, Algerian opposition parties remain sceptical. Louisa Hanoune, leader of the Trotskyist Workers’ Party, says that “political decency and social integrity have deserted Algeria.”

Many observers still recall that the National Liberation Front party was at the centre of a huge scandal during the 2012 legislative elections. In November 2016, when Djamel Ould Abbes, the newly appointed FLN secretary general, took over from the controversial Ammar Saadani, he publicly denounced “those who used the chkara [the money bag] to gain access to the assembly,” and vowed to fight against corruption as a means of political representation. But to no avail.

Corruption together with generally difficult economic conditions have made the population wary of politicians. The authorities are, nevertheless, still trying to persuade voters to participate.

To increase female participation in politics, Algerian electoral law compels parties to include a minimum of 15 per cent of women on their lists. But five secularist and Islamist political parties when displayed faceless portraits of female candidates on their campaign posters, it sparked outrage.

A massive boycott is expected. Large segments of the population view these elections as a smokescreen to conceal the degeneracy of the political elite. They are also aware that parliament remains weak in terms of its legislative powers and it cannot guarantee jobs or decent housing to millions of young Algerians.

Despite government efforts to get people to the ballot box today, lots of Algerians are much more interested in the French presidential elections than what’s going on in Algeria. Is it a legacy of the colonial past? Is it about widespread public dissatisfaction with incumbent politicians and a sclerotic political system? Is it Marine Le Pen? Or Emmanuel Macron’s condemnation of France’s colonial past in Algeria?

During his visit to Algiers last February, Mr Macron did not use the clichéd jargon of some French politicians. Aware that France is now Algeria’s main trade partner, but also seeking to expunge a dark colonial legacy, he said France’s history in Algeria was a “crime against humanity”. Ms Le Pen retorted: “Is there anything worse when you want to become president than going abroad to accuse the country you want to lead of crimes against humanity?”

Algeria lived under French rule for 132 years until it won a bloody war of independence (1954-1962) in which more than a million Algerians died.

Mr Macron’s comments about France’s “barbaric” colonial past were met with applause in Algeria. And many cannot help but put the election campaigns in Algeria and in France side by side. They know that Ms Le Pen could surprise everyone even while the polls show that Mr Macron has a strong chance of winning the French presidency.

They also believe that Algerian MPs have already “bought” their seats in the National Assembly, and the public discontent regarding the dire socioeconomic situation is the least of their worries. Perhaps this is why they look across the water at the French elections. Is their own reality too hard to contemplate? The answer is plain to see.

Dr Abdelkader Cheref is a professor at the American University of Ras Al Khaimah

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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