Najat A Saliba is a professor of chemistry at American University Beirut, an environmental conservationist and a member of the Lebanese Parliament
September 30, 2022
Throughout history, environmental damage has been one of the most important factors in civilisational collapses. Environmental damage and climatic changes have driven crop failure, starvation and desertification, contributing to the collapse of many civilisations like the Peruvian Nazca, Easter Island, Norse Greenland, the Anasazi and the Roman Empire.
Coming down from the mountains in my country of Lebanon, a layer of thick brownish air covers the city of Beirut. It ominously reminds me of the severe smog in London and Los Angeles in the 1940s and 1950s caused by urban influxes and spikes in the number of cars and factories. In Beirut, the smog comes from diesel generators whirring across the country and most recently, toxic emissions due to the burning of carcinogenic low-quality fuel. This pollution of the air we breathe is visually and sensorially overwhelming, and I catch myself wondering whether Lebanon could one day join the sinister list of places where environmental damage has spiralled out of control.
Rampant environmental degradation in Lebanon is accelerating the total collapse not just of ecosystems, but of country, nation and culture. Coupled with socio-political shocks and exacerbated by the climate crisis, this degradation threatens our future. In the most unwanted ways, Lebanon is consistently demonstrating that the environment is interconnected with socio-economic stability, and is not something to be cast aside as a nature lover’s fancy.
The smog-filled skyline of Beirut in 2016. Getty
A quick overview of the current situation is useful. After three decades of chronic electricity deficits–from supply shortages, expensive and polluting fuel and diesel oils, non-billing and a weak grid–the electricity sector in Lebanon has collapsed. State electricity barely provides a few hours per day, the country’s cities are dark at night, and pollution from diesel generators has risen by 300 per cent since the beginning of the crisis. The pollution brings heavy particles and carcinogen materials into the air, increasing wheezing, coughing, and bronchial irritations. The ripple effects of a fallen electricity grid are grave. Water is scarce as communities cannot pump groundwater, farm irrigation is being affected, and trees are being illegally cut down for wood heating in the winter.
Although Lebanon is a relatively water-rich country in the water-scarce Mena region, mismanagement, contamination, and run-off into the sea have compounded to create a grave water crisis. Last summer, the United Nations International Children's Emergency Fund (Unicef) warned that 71 per cent of Lebanon’s population risked running out of water. The water that does exist is often unsafe, with 92 per cent of wastewater in Lebanon disposed of without treatment. Over 96.2 per cent of our river water harbours fecal bacteria or coliforms and 95.5 per cent harbours the E coli bacteria.
Lebanon’s waste problem continues to affect the natural world and human lives. Collection is unreliable and the government barely provides funds or technical support for municipalities. Open dumping and burning are rampant and often the only option, amounting to an estimated 900 open dumps in the country. The solid waste sector produced 11 per cent of the country’s greenhouse gas emissions in 2011. In 2018, Lebanon lost $200 million due to the lack of solid waste management.
The mountains and hills that still have functioning ecosystems are consistently targeted. Due to corruption and spotty land records, unregulated development overtakes pristine areas, and faulty construction deals abound. For example in 2020 the World Bank infamously canceled its loan for a dam in Bisri, after local activism showed that construction would destroy a highly biodiverse ecosystem, multi-cultural historic sites, agricultural areas, and bird migratory areas.
Many are trying their hardest to help, from NGOs, to foreign actors, to citizens. However, structural problems have consistently undercut all efforts for change. Foreign aid is crippled by corruption and inefficiencies –over the past 30 years Lebanon has received billions of dollars in aid and yet running water and electricity are increasingly sparse. The nonprofit sector has attempted to take on the difficult task of filling in for the social state, but lack of co-operation and concerns about trustworthiness and partisan affiliation abound.
All this devastation is damaging an already fragile system, with Lebanon located in a climate change hotspot. In many ways, this is more dangerous than the Civil war which affected localised areas. This is an all-around war that has compromised the main essence of life. It has affected air and water, exposed the soil to erosion due to deforestation, and threatened our food supply.
Environmental troubles are some of the most important factors in Lebanon's decline. Reuters
Are there reasons to be optimistic? Can we at least delay the disaster if we cannot stop it? From my perspective, hope lies in grassroots movements led by the people who live through this crisis day in and day out. They need change the most urgently, are motivated to work towards new futures, and consistently create solutions through their knowledge of the place they belong to. Grassroots movements from the 2015 You Stink protests to the 2019 Thawra have been our closest shots at regime change and the building blocks towards it. Locally-born environmental and social initiatives run by passionate citizens are coming closer to systemic solutions than foreign aid. I witness this consistently through the Environment Academy at AUB, a community-born movement I co-founded in 2019 that addresses urgent environmental threats through the matching of local teams with expert mentors and the media. Environment Academy is showing us how collapse can create a push for transformation–whether in the attempt to secure water, clean up village-wide solid waste, or prevent forest fires. This moment is certainly dire, and the environment under real threat, but motivated citizens are bravely initiating ground-up transformation through their hard work at the local level.
Sustainably integrating these initiatives into Lebanese society is the challenge that will require local government and international players to listen to what is happening on the ground. The vacuum created by the current crisis in Lebanon could be a space for change, imagination, and transformation, as it could be the beginning of a longer downfall. Let us heed the warning signs of our polluted air and wildland fires to reimagine what life could look like after the storm.
Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.
These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.
Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.
Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.
Jumanji: The Next Level
Director: Jake Kasdan
Stars: Dwayne Johnson, Kevin Hart, Karen Gillan, Jack Black, Nick Jonas
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.
That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.
"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.
Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."
People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.
"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."
On the menu
First course
▶ Emirati sea bass tartare Yuzu and labneh mayo, avocado, green herbs, fermented tomato water
▶ The Tale of the Oyster Oyster tartare, Bahraini gum berry pickle
Second course
▶ Local mackerel Sourdough crouton, baharat oil, red radish, zaatar mayo
▶ One Flew Over the Cuckoo’s Nest Quail, smoked freekeh, cinnamon cocoa
Third course
▶ Bahraini bouillabaisse Venus clams, local prawns, fishfarm seabream, farro
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.”
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
The Gandhi Murder
71 - Years since the death of MK Gandhi, also christened India's Father of the Nation
34 - Nationalities featured in the film The Gandhi Murder
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
Essentials
The flights
Return flights from Dubai to Windhoek, with a combination of Emirates and Air Namibia, cost from US$790 (Dh2,902) via Johannesburg. The trip
A 10-day self-drive in Namibia staying at a combination of the safari camps mentioned – Okonjima AfriCat, Little Kulala, Desert Rhino/Damaraland, Ongava – costs from $7,000 (Dh25,711) per person, including car hire (Toyota 4x4 or similar), but excluding international flights, with The Luxury Safari Company. When to go
The cooler winter months, from June to September, are best, especially for game viewing.