Turkey needs more than charisma to establish itself


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With passions winding down three weeks after Israel's bloody interception of the Mavi Marmara, officials and analysts are taking stock of the implications of Turkey's regional resurgence. Not surprisingly, everyone is reading what he or she wants into the episode. In the West, officials are bemoaning Ankara's seeming defection to the East, with the Americans blaming the EU for, as the US defence secretary Bob Gates said a few weeks ago, "refusing to give Turkey the kind of organic link to the West that Turkey sought".

Meanwhile, the Arab world has displayed confusion and jealousy at the speed and manner with which a long-absent Turkey has become the only country to straddle the complex regional fault lines at apparently little political cost. Radical factions such as Hizbollah and Hamas have even welcomed Turkey into their ranks, as if Israeli-Turkish tensions could compel Ankara to marshal its power in the service of their aims. Israel, witnessing the end of a much-valued strategic partnership, sees in Ankara a new enemy, an overreaction that, if left to fester, could turn into a self-fulfilling prophecy.

And yet, despite the show of apparent strength and bombast in Ankara as it basks in its newfound regional standing, Turks themselves are engaging in some serious head scratching. Indeed, Turkey is grappling with its emergence as a regional power whose objectives are commendable in theory but hard to achieve in reality; it is also a policy that may incur heavy costs. Indeed, as Ankara takes on a more active regional role, the weaknesses, inconsistencies and downsides of its foreign policy are becoming more apparent.

So far, the populist rhetoric and international activism of the prime minister Recep Tayyip Erdogan has carried the country's foreign policy, forging undeniable inroads into the region. But the more active he becomes, the more scrutiny he will attract. This will sharpen the existing tensions within Turkish foreign policy. For instance, while Mr Erdogan's current priority is to obtain an investigation and an Israeli apology for the Mavi Marmara incident, Turkey will eventually have to revert to a policy of mediation between Israel, the Palestinians and Syria if it really wants to play a role in the Palestinian peace process and a Syrian-Israeli detente. As unpleasant as it may seem, permanently alienating Israel through rhetorical escalation will harm its prospects of doing so.

Also, while concerns for human rights may account for Turkey's embrace of the Palestinian cause, Ankara's past actions belie this sentiment. In a low point for Turkish diplomacy, Mr Erdogan dismissed accusations of genocide against the Sudanese president Omar al Bashir a few years ago on the grounds that "it is not possible for a Muslim to commit" a genocide. Indeed, many in Ankara realise that Muslim solidarity or selective attention to the region's problems cannot alone be the foundation of Turkey's foreign policy.

Ankara's continued struggle with its Kurdish population also seems to contradict its stance on human rights, as recent strikes in northern Iraq against the PKK have soured relations with Turkish Kurds. If Turkey wishes to contribute to the region's stability, it will have to deal with this minority in a broader context. Indeed, Ankara's greatest contribution to Middle Eastern stability would be to work with Iran, Iraq and Syria to improve treatment of their Kurds. The four countries could also reach a security and political understanding that empowers this oppressed community without endangering their own territorial sovereignty.

Turkey's latest free-trade venture with Syria, Lebanon and Jordan also shows how Turkish eagerness can clash with the region's realities. Ankara was able to broker a free trade proposal (on paper, at least) largely because Arab nations cannot say no to a very popular Turkey these days. In fact, a free trade zone is an ill-conceived enterprise: all three countries would be flooded with cheap Turkish goods at the expense of their own underdeveloped industries, with little to export in return.

Turkey can assuredly lift the Syrian, Jordanian and Lebanese economies, but first it must address hot political issues, such as helping to delineate borders and designing a regional security arrangement. To do so, Turkey would have to get its hands dirty, perhaps losing some of its now-cherished lustre in the process. It is perhaps when it comes to Iran that Turkish policy will be the most watched. Turkey has tried to mediate with Iran, but does not share the same sense of concern and urgency as the West and the Arab world. And despite rapprochement between Ankara and Tehran, they might be on collision course since there is a mix of resentment and damaged pride regarding Ankara's achievements. Turkey has already chipped away at Tehran's self-declared status as champion of the Palestinian cause and is also strengthening ties with Syria, Iran's lone Arab ally.

Losing soft power to a country with greater appeal will not sit well with Iranian officials, whose response may well be a greater investment in the nuclear programme and more ideological rigidity. Turkey has an unprecedented opportunity to improve the Middle East landscape. Much will depend on decisions made in Ankara but also on the style of its leadership. Though Turkey's power rests on traditional attributes such as a competent and powerful military, strong institutions, a fast-growing modern economy and international partnerships, its momentum currently comes from the charismatic Mr Erdogan. His populism is playing well at the moment, but for Turkey's influence to survive beyond his persona, a bit of long-term common sense is a much better strategy.

ehokayem@thenational.ae

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.”

MATCH DETAILS

Chelsea 4 

Jorginho (4 pen, 71 pen), Azpilicueta (63), James (74)

Ajax 4

Abraham (2 og), Promes (20). Kepa (35 og), van de Beek (55) 

The years Ramadan fell in May

1987

1954

1921

1888

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The specs

Engine: 5.2-litre V10

Power: 640hp at 8,000rpm

Torque: 565Nm at 6,500rpm

Transmission: 7-speed dual-clutch auto

Price: From Dh1 million

On sale: Q3 or Q4 2022 

Israel Palestine on Swedish TV 1958-1989

Director: Goran Hugo Olsson

Rating: 5/5

'Top Gun: Maverick'

Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
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Engine: 77.4kW all-wheel-drive dual motor
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Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

MATCH INFO

Juventus 1 (Dybala 45')

Lazio 3 (Alberto 16', Lulic 73', Cataldi 90 4')

Red card: Rodrigo Bentancur (Juventus)

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(Tagalog with Eng/Ar subtitles)