A man grieves after two bombings kill more than 130 people in central Baghdad yesterday.
A man grieves after two bombings kill more than 130 people in central Baghdad yesterday.
A man grieves after two bombings kill more than 130 people in central Baghdad yesterday.
A man grieves after two bombings kill more than 130 people in central Baghdad yesterday.

Attacks show challenge ahead


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  • Arabic

Just when you thought that Iraq was the sideshow and Afghanistan the main event, the far-too-familiar sound of sirens screeching and the bereaved wailing in the streets of Baghdad remind you otherwise. A government spokesman, Ali al Dabbagh, immediately pointed the finger of blame at al Qa'eda militants or members of Saddam Hussein's former government, and demanded a UN investigation. Nevertheless, it was too early to know exactly who carried out the bombing, which killed more than 130 people.

What is more certain is the character of the bombers. They were sinister and cynical enough to know that the best way to embarrass the government of Nouri al Maliki was to prove it incapable of preserving what most Iraqi's yearn for - security - and show it unable to put to rest worries about what they most fear - a return to the bad old days of 2006, when Iraq was on brink of all-out sectarian war.

After the bombing, comparisons were immediately drawn to the blasts in August that killed 100 in Baghdad. The targets then were the ministries of finance and foreign affairs; this time, it was the ministry of justice and a provincial government office near the Green Zone. In the run-up to parliamentary elections in January, when Mr al Maliki, the prime minister, is expected to seek re-election, both bombings serve to push the government careering towards the third rail of Iraqi politics: it can neither ensure security nor can it ease US troops off Iraqi territory.

Since most US troops withdrew from Iraq's cities in June, violence has been on the rise. No one is saying it is the leading edge of a gathering storm that threatens to reach the proportions of 2006. Yet the trend is worrying. Yesterday's bombing did not occur on the edges of Sadr City; it happened near the heart of what is supposed to be the safest and most secure section of the Iraqi capital. Yesterday's attack inevitably raises the question: how fragile is Iraq? Although US and Iraqi officials privately acknowledge that it is neither as secure as advertised nor as brittle as feared, truth be told, nobody really knows. The definitive answer awaits the withdrawal of all US combat troops, scheduled for the end of 2011.What remains until then is a gnawingly ambiguous situation, summed up in August by Anas al Tikriti, a Sunni Islamist: "Iraq today is halfway between either being on the verge of collapse or on the verge of salvation."

For now, the most pressing question is whether yesterday's events will refocus minds in Washington and slow the Obama administration's shift of money, attention and personnel to Afghanistan and its volatile frontier with Pakistan. The United States has 130,000 troops in Iraq, almost twice the number it has in Afghanistan. The US troop count is due to drop quickly to about 50,000 by this time next year, though Washington deftly avoids indicating how many "advisers' will remain in Iraq.

Nevertheless, this US administration, like its predecessors, subscribes to the view that the attention span of the public is short and narrow, and cannot handle two trouble spots - let alone three, if you include Iran - at once. Last month, the senior US commander in Iraq, Gen Ray Odierno, said this shift of attention worried him. He warned that there was always a risk that the security situation in Iraq could deteriorate.

"We have spent a lot of money here," Gen Odierno said in Baghdad. "We've spent a lot of lives here, both the US and the UK. So we have an opportunity. It's important to see this through." Gen Odierno suggested that lingering insurgencies of the kind that could have authored yesterday's bombing were not Iraq's main source of insecurity. "The endemic corruption within the Iraqi system - not only the security forces, but the system - is still probably the biggest problem facing Iraq," he told the BBC.

With elections and the prospect of more bombings looming, it is worth recalling that aside from the gauzy recollections of some Iraqis, there has never been a golden age of Iraqi politics when Shias and Sunnis, Arabs and Kurds, or Muslims and Christians coexisted in one big happy Iraqi family. Saddam Hussein, in particular, saw to that. For now and the immediate future, ties of ethnicity, religion and clan will remain the determining factors in Iraqi politics - and the source of peril for anyone who wants to exploit them, as they demonstrated so hideously yesterday.

@Email:cnelson@thenational.ae

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Retirement funds heavily invested in equities at a risky time

Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.

Retirement money managers in 14 geographies now allocate 40 per cent of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer survey released last week that canvassed government, corporate and mandatory pension funds with almost $5 trillion in assets under management. That compares with about 25 per cent for pension funds in Europe.

The escalating trade spat between the US and China has heightened fears that stocks are ripe for a downturn. With tensions mounting and outcomes driven more by politics than economics, the S&P 500 Index will be on course for a “full-scale bear market” without Federal Reserve interest-rate cuts, Citigroup’s global macro strategy team said earlier this week.

The increased allocation to equities by growth-market pension funds has come at the expense of fixed-income investments, which declined 11 percentage points over the five years, according to the survey.

Hong Kong funds have the highest exposure to equities at 66 per cent, although that’s been relatively stable over the period. Japan’s equity allocation jumped 13 percentage points while South Korea’s increased 8 percentage points.

The money managers are also directing a higher portion of their funds to assets outside of their home countries. On average, foreign stocks now account for 49 per cent of respondents’ equity investments, 4 percentage points higher than five years ago, while foreign fixed-income exposure climbed 7 percentage points to 23 per cent. Funds in Japan, South Korea, Malaysia and Taiwan are among those seeking greater diversification in stocks and fixed income.

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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

While you're here
A cryptocurrency primer for beginners

Cryptocurrency Investing  for Dummies – by Kiana Danial 

There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine. 

Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.

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He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.

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