Violent TV news 'impedes peace efforts'


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ABU DHABI // The "over-reporting" of violence by international television news broadcasters is impeding the peace effort in Afghanistan, according a study published by the Australian-based Institute for Economics and Peace. Almost 80 per cent of television media reports about Afghanistan are about violence and conflict, according to the study, which analysed more than 197,000 television reports.

While this coverage accurately reflects the high level of violence in Afghanistan, the lack of coverage of issues such as education and business hampers the development of "peacetime" activities, said Steve Killelea, the founder of the institute.

"If you want to build peace in a society, it's very, very difficult to do if there's no focus on the institutions and structures that help create peace. How can you create a business environment if there isn't any focus on it?" said Mr Killelea.

"It doesn't actually matter whether the coverage is positive or negative. The key thing is that we actually focus on the things that count," he added.

The report, entitled Measuring Peace in the Media, was created in partnership with the media analyst group Media Tenor, which analyses and monitors the world's media on behalf of clients. It analysed 37 TV news shows in 15 countries, including by Al Jazeera, Al Arabiya, the BBC and Fox News.

Many key US broadcasters devote more than 50 per cent of their worldwide news and current affairs coverage to topics of violence, the report found.

"When too much media attention is placed on violence, security is seen as the only way for establishing peace and this runs contrary to our current knowledge of what creates peace," said Mr Killelea.

Mazen Nahawi, the president of News Group International, a news management company based in Dubai, said he was not convinced by the conclusions of the report. It failed to prove a link between the influence of the media and the balance between violence and peace, he said.

"In my view, it's unsubstantiated."

The Institute for Economics and Peace is described as "not-for-profit research institute dedicated to developing the inter-relationships between business, peace and economic development".

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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.”

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