The prime minister of India, Dr Manmohan Singh, talks with US President Barack Obama at a G20 working dinner in Pittsburgh last September.
The prime minister of India, Dr Manmohan Singh, talks with US President Barack Obama at a G20 working dinner in Pittsburgh last September.

Come together



For the world's rising powers, Bruce D Jones and Richard Gowan write, co-operation holds more promise than renewed competition. In 2009, the Obama administration tried to patch up America's relations with the world. In 2010, it may have to make hard choices about who it really trusts. The United States has gone out of its way to accommodate rising powers like India, Brazil and - above all - China, giving them a place at the top table in negotiations on the financial crisis. This has alienated some traditional allies, mostly in Europe, who fear they are being downgraded. Nicolas Sarkozy is said to believe Obama is putting the very idea of "the West" at risk.

Yet while the rising powers believe they deserve their new-found recognition, Obama's strategy presents them with a novel dilemma. Should they reciprocate by aligning more with the United States - or challenge American policies to reaffirm their own autonomy? There was a broad welcome for Barack Obama's leadership during the financial crisis, not least his decision to prioritise economic talks through the Group of 20 (G20) - which includes not only China, Brazil and India but also Saudi Arabia and other emerging economies like Mexico and Indonesia - rather than the Eurocentric G8. When the G20 met in London last spring, the Indian premier Manmohan Singh asked for Obama's autograph. Things have grown a little bit chillier since then.

In recent months, there have been frictions between the United States and China over the Copenhagen climate change conference and Iran's nuclear programme. Indian leaders have also vocally opposed American policy on climate change. President Luis Ignacio Lula da Silva of Brazil irritated Washington by inviting his Iranian counterpart, Mahmoud Ahmadinejad, to Brasilia to discuss the Middle East peace process last November - although Brazil and the United States have since co-operated closely in Haiti.

Those who believed a new American administration could guarantee an era of harmony (a group that probably did not include the highly realistic Obama) have been disappointed. At the same time, many hawkish commentators in the United States have jumped on what they perceive as anti-American slights from lesser powers, arguing that they invalidate Obama's approach. Rather fewer have tried to understand the foreign policy choices the emerging powers face: as they gain influence, they are experimenting with it, starting to test its limits and frequently stumbling over unexpected consequences.

Perhaps as a result, alarmist predictions of what the coming multipolar world will look like abound: the United States, having given international engagement a chance, will retreat into unilateralism; the G20, UN and international financial institutions will wither; the rising powers will grow ever more competitive in the hunt for resources, perhaps even resorting to force. This is all possible but unlikely. There are at least two reasons to be optimistic that the United States and the rising powers can successfully work together. The first is that, while the rising powers may want a greater authority, they know that undercutting the current international order is not in their interests. China and India are adept at getting their way in the United Nations, where they enjoy the support of developing countries. They have used their economic clout firmly in the G20 - in contrast to the constantly-bickering Europeans. Why should they wreck a system that, more often than not, works for them?

Second, foreign policy experts in rising and established powers alike are aware that they face a range of transnational threats that can only be addressed through international co-operation. These range from piracy to pandemic diseases and climate change. India and China have sent warships to operate alongside US and European vessels chasing pirates in the Gulf of Aden. And while they may have clashed with the US over terms at Copenhagen, they aren't in denial about climate change: China in particular boasts of its innovations in clean technology. If the emerging powers do well enough in international institutions now, they know that they will need stronger institutions soon.

So there is still an opportunity for the United States and rising powers to develop pragmatic and hard-headed forms of multilateral co-operation - and largely on the basis of existing international institutions. This won't look like the US-led multilateralism of the early post-Cold War period, when Washington was able to set (and break) the rules in international institutions. In that era, European governments provided essential financial and political support to institutions like the UN, partly because they hoped it would win them friends in Washington (Europeans still pay 40 per cent of the UN peacekeeping budget, for example).

This generosity didn't persuade George W Bush to heed European warnings about the importance of the UN before invading Iraq. And they haven't swayed the Obama administration, which is not anti-European but has concluded that international institutions need to reflect the real-world balance of power - even if bargaining with the rising powers is not always as congenial as parlays with the EU in scenic historic cities. The next generation of multilateralism will involve making complex deals to address shared threats - like nuclear proliferation - that established and rising powers alike can more or less accept.

This is most likely to emerge through the G20, which has an economic focus at present but could evolve at speed. The G20 - or variations such as the Major Economies Forum, which discusses climate change - has the potential to become a clearing-house for international discussions that would get bogged down in other forums. Rather than tackle nuclear proliferation or international trade negotiations through unwieldy international conferences, the US and other big powers could cut initial deals through the G20.

This sort of deal-making may not be especially pretty. Western human rights activists are already very worried that the Obama administration has been too ready to play down talk of rights and democracy for the sake of diplomacy. Leaders from poor countries argue that the G20 lacks democratic legitimacy, cutting them out of economic decision-making. There is certainly a risk that the G20 could become a club where major powers stitch up unsavory agreements on issues from counter-terrorism to market access for lower income countries. But the majority of G20 members are full democracies, and their choices will be scrutinised at home. A network of NGOs has grown up to track the G8's performance on issues like development aid, and similar corps of do-gooders will grow around the G20.

And there are few real alternatives to the G20. The G8 may be a tighter discussion group, but half its members are European, and that just won't work any more. The UN General Assembly gives a voice to every state on earth - the result is a cacophony. The fabled "league of democracies", often mentioned in the Bush era, has entered the realm of grand ideas that never quite made it, like Esperanto. These aren't reasons to be sanguine about the G20's future. It could still falter - some financial experts are already arguing that it is losing relevance as the economic crisis fades. Politically, it will only keep momentum if the rising powers fully engage with it. To date, western members (primarily the United States and United Kingdom) have driven most of its agenda. The longer this remains the case, the less credible it will seem. Emerging powers should lead the way in expanding the G20 agenda - after its peacekeepers bore the brunt of the Haiti earthquake, for example, Brazil could launch a G20 initiative on humanitarian aid.

While the new powers should take the lead on specific issues, they will also have to accept that the United States still enjoys a privileged position in the G20 (as it does at the UN). It is still, after all, the only power that is relevant to almost every issue globally - even if China is also increasingly indispensable. And it is the only power with a sufficient depth of diplomatic contacts to handle the technicalities of an expanding G20 in the near future.

For now, the United States is well-paced to co-ordinate the G20, though not to dominate its decisions. That's a bargain the rising powers should take seriously. America's omnipresence may sometimes be irksome - American isolationism would be far worse.
Bruce D Jones is director of the New York University Center on International Co-operation. Richard Gowan is an Associate Director at the Center, which will host a conference on "Emerging Powers, Global Security, and the Middle East" in Abu Dhabi on February 9 and 10.

BUNDESLIGA FIXTURES

Friday (UAE kick-off times)

Borussia Dortmund v Paderborn (11.30pm)

Saturday 

Bayer Leverkusen v SC Freiburg (6.30pm)

Werder Bremen v Schalke (6.30pm)

Union Berlin v Borussia Monchengladbach (6.30pm)

Eintracht Frankfurt v Wolfsburg (6.30pm)

Fortuna Dusseldof v  Bayern Munich (6.30pm)

RB Leipzig v Cologne (9.30pm)

Sunday

Augsburg v Hertha Berlin (6.30pm)

Hoffenheim v Mainz (9pm)

 

 

 

 

 

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
UAE currency: the story behind the money in your pockets
MATCH INFO

Tottenham 4 (Alli 51', Kane 50', 77'. Aurier 73')

Olympiakos 2 (El-Arabi 06', Semedo')

The years Ramadan fell in May

1987

1954

1921

1888

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.”

THE SPECS

Engine: 2.0-litre 4-cylinder turbo

Power: 275hp at 6,600rpm

Torque: 353Nm from 1,450-4,700rpm

Transmission: 8-speed dual-clutch auto

Top speed: 250kph

Fuel consumption: 6.8L/100km

On sale: Now

Price: Dh146,999

DAY%20ONE%20RESULT
%3Cp%3E%3Cbr%3E1.%20Charlotte%20Kool%20(NED)%20%E2%80%93%20Team%20DSM%3A%202hrs%2C%2047min%2C%2014sec%3Cbr%3E2.%20Lorena%20Wiebes%20(NED)%20%E2%80%93%20Team%20SD%20Worx%3A%20%2B4%20secs%3Cbr%3E3.%20Chiara%20Consonni%20(ITA)%20%E2%80%93%20UAE%20Team%20ADQ%3A%20%2B5%20secs%3C%2Fp%3E%0A
THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now

LIVERPOOL SQUAD

Alisson Becker, Virgil van Dijk, Georginio Wijnaldum, James Milner, Naby Keita, Roberto Firmino, Sadio Mane, Mohamed Salah, Joe Gomez, Adrian, Jordan Henderson, Alex Oxlade-Chamberlain, Adam Lallana, Andy Lonergan, Xherdan Shaqiri, Andy Robertson, Divock Origi, Curtis Jones, Trent Alexander-Arnold, Neco Williams

The Facility’s Versatility

Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
 
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
 
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
 
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
 
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
 
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket