Nepalese police charge Rastriya Prajatantra Party-Nepal (RPP-N) supporters during a protest outside the Constituent Assembly building in Kathmandu on May 26, 2011.  The demonstrators demanded the dissolution of the Constituent Assembly two days ahead of the expiry of its term.  Nepal's 601-member parliament was elected in 2008 with a two-year mandate to draft a new national charter but the body has singularly failed to do so.  AFP PHOTO/Prakash MATHEMA
 *** Local Caption ***  086874-01-08.jpg
Nepalese police charge Rastriya Prajatantra Party-Nepal (RPP-N) supporters during a protest outside the Constituent Assembly building in Kathmandu on May 26, 2011. The demonstrators demanded the dissShow more

Nepal's hard-pressed people grow fed up with squabbling politician



KATHMANDU // Nepal is blessed with glacier-fed rivers but its capital has running water only a few hours a week. The country had no prime minister for much of the past year and risks having no government at all by the weekend.

Five years after communist rebels gave up a revolt to join a peace process, the country is sinking deeper into political turmoil, leaving its dreams of becoming a "Switzerland of the East" unrealised.

Nepal went seven of the past 12 months without a prime minister because of a power struggle between the main political parties. They have yet to figure out what to do with the former insurgent fighters, with many still confined to demobilisation camps.

And on Saturday, the Constitutional Assembly, which serves as the country's legislature, is due to dissolve without coming close to agreeing on the document that is supposed to outline how the new Nepal will be governed.

The Nepalese are growing fed up with their politicians, who have left the nation's problem fester.

Hari Tamang, a student who joined a recent protest demanding action on the new constitution, said: "They have broken every promise they have made to the people."

Residents face up to 14 hours of daily power cuts because the government has been unable to build hydroelectricity plants. The capital, Kathmandu, gets two hours of water every two or three days, and frequent fuel shortages force drivers to line up for a few litres of rationed fuel.

The squabbling delayed last year's budget, forcing the government to put off or scrap plans to build roads, irrigation projects and other agricultural infrastructure.

The finance secretary, Krishna Hari Baskota, said the government failed to spend half the development budget for the financial year which ends in July.

Ameet Dhakal, editor of the Republica newspaper, said: "Countrywide people are unhappy with the leadership."

Since the assembly was first elected in 2008 to write a constitution aimed at cementing the peace and bringing Nepal from a monarchy to a republic, the country has produced three different governments and no constitution.

The government of the Maoists, parliament's largest party, fell apart over a battle with the president and army chief, leaving the smaller parties to join together to form a new government. But the Maoists demanded they be given another shot at power and the constitution-writing process ground to a halt.

Some of the disagreements centre on whether to divide the country in a federal system based on ethnic groups or strictly by geography. But the parties mostly squabble over who gets to lead the country.

When the Constitutional Assembly's two-year term was about to expire last May, a last-minute deal was reached, with the Maoists agreeing to extend the deadline for a year in return for the government's resignation. That created even more turmoil, with the parties unable to agree on a new government for seven months, frittering away more than half of the assembly's extension. On the 17th round of voting, in February, they finally chose a new leader.

Fed up with the delays in the peace process, the United Nations pulled out in January.

The population is fed up as well, holding almost daily protests in Kathmandu demanding the parties get down to work.

"You have taken your pay, now give us our constitution," hundreds of protesters chanted at a weekend rally called by a group called Nepal Unites.

Subsequent rallies near the Constituent Assembly prompted authorities to declare a no-protest zone in the surrounding streets.

Mr Tamang said: "When the term was extended last year, they promised they would get their act together and complete the constitution but they spent the whole term trying to unseat each other to get in power."

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Hunger and Fury: The Crisis of Democracy in the Balkans
Jasmin Mujanović, Hurst Publishers

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.

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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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Start the week as you mean to go on. So get your training on strong on a Monday.

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