NEW DELHI // The sporting event which India hoped would herald its emergence as a regional power and serve as a springboard to an Olympic bid has instead turned into a chaotic mess.
Less than seven weeks before New Delhi is to host to the Commonwealth Games, venues are still under construction, top officials have been forced out in scandal, costs have soared and many are questioning the wisdom of spending so much money on an event in a nation riddled with social ills.
To make matters worse, many top athletes, including Usain Bolt, the Jamaican sprinter, pulled out and even England's Queen Elizabeth II has said she will not come to the Games, which brings together 71 countries of the Commonwealth, or the former British Empire.
After China showcased its economic clout during an impressive Beijing Olympics, India's Commonwealth Games organisers were under pressure to deliver a comparable spectacle to promote "India Rising".
Instead, the bungling of the preparations for the Games has highlighted corruption and malaise that continues to plague the nation, said Harsh V Pant, a political analyst. "When it comes to implementation, I don't think India has moved an inch from where we used to be," he said.
Hoping to stem the cascade of problems, Manmohan Singh, the prime minister, stepped in last weekend, ordering a probe and appointing a group of cabinet ministers to oversee the final preparations and try to salvage the event.
The move came as criticism of the Games, to be held in New Delhi from October 3 to 14, reached fever pitch, with everything from traffic jams to mosquito breeding blamed on preparations.
The Times of India showed Shera, the Games' cartoon tiger mascot, on a respirator, and a former sports minister publicly hoped the Games would collapse in disarray so India would not be tempted to bid for future events.
Sheila Dikshit, Delhi's chief minister, called the broadsides "unpatriotic". "I plead with people to look at the better side of the Games - the rest will fall into place," she told The Sunday Express.
But the problems are hard to ignore. Venues that were supposed to be completed last year to allow for test events, are still in what officials promise is the final phase of construction.
The Shivaji stadium in central Delhi, which is to be used as a practice field for hockey teams, has been stripped down, its facade left with gaping holes as hundreds of workers navigated large piles of red bricks, gray concrete blocks and rusting reinforcing rods.
A four-kilometre road-bridge connecting the athletes' village to the main stadium has gaps in it. "We have to accept where we are and look forward," Mike Hooper, the CEO of the Commonwealth Games Federation, who is in New Delhi helping oversee the preparations, said. "Everyone's got a lot of work to do, and that's what they've got to focus on."
Much of central Delhi remains torn up by projects that had been intended to beautify the city for the 100,000 foreign tourists the Games committee had anticipated. Many of the projects are so far behind schedule they are being covered up, to be worked on again after the event. And there are doubts the tourists are even coming.
The cost of hosting the Games - which the government initially pegged at less than $100 million (Dh367m) in 2003 - has skyrocketed, with estimates ranging from $3 billion to more than $10 billion.
Meanwhile, ticket sales have been delayed, sponsorships have not met expectations and the official merchandiser has pulled out, saying delays in launching his products were costing him unbearable losses. On Thursday, two power companies announced they were cancelling their multi-million dollar sponsorship deals with the event.
Three top officials were sacked this month over alleged financial irregularities with the London launching of the Queen's Baton Relay - a month-long odyssey akin to the Olympic torch relay.
As part of a drive to clean up the city ahead of the event, the government demolished thousands of slum homes and arrested homeless people, according to a coalition of human rights groups.
The event has turned into an embarrassment for a country that should be focusing instead on fixing its medical and education system and dealing with the hundreds of millions mired in poverty, said Rajan Singh, 29, a software engineer. "With a developing country like India, we need to invest in other infrastructure," he said. "Once that is complete, we can go for Games like this."
* Associated Press
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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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