Sarah Champion has never shied away from stating things as she sees in a forthright manner and has come to expect her words to make a difference.
So when the Labour politician tells The National that Britain's controversial cuts to its overseas aid budget will have "untold consequences", diminishing its international reputation while harming the world's poorest, the government would do well to pay attention.
As a parliamentary committee chairwoman, Ms Champion is currently putting the people overseeing the aid reduction under pressure. Most recently, she led two hours of sustained questioning of Foreign Secretary Dominic Raab over the £4 billion ($5.53bn) he is extracting from Britain’s international development budget.
The picture she paints makes the 30 per cent annual reduction look like an act of political folly. A steady drip of even more galling statistics – such as a 95 per cent drop in funds for polio reduction – is inviting widespread condemnation of the government.
Like several developed countries, Britain previously adhered to the international agreement to contribute 0.7 per cent of gross domestic product to overseas aid, and enshrined it in law with the ruling Conservative Party also making it a manifesto pledge.
Aid was already reduced as a result of economic crisis caused by the pandemic, but last summer the government announced the budget would drop to 0.5 per cent of GDP – a reduction from £14bn to £10bn.
“You have to see this as an extraordinary act of self-harm that is really, really undermining the Conservatives’ reputation,” Ms Champion says. “To be cutting our soft power is going to have untold consequences, especially during a pandemic.”
The vision in which the post-Brexit UK would become a force for good in the world under the slogan of Global Britain could not, in Ms Champion’s view, be a “less appropriate tagline” – she says the cuts are more attuned to the parochial politics of "Little Britain".
Some of her opponents have listened before. In 2015, the Conservative government turned her Private Members’ Bill into law, forcing companies of more than 250 people to publish their pay gap between men and women.
As chairwoman of the Commons’ International Development Committee and after a decade-long parliamentary career during which she has picked up many global contacts, she has first-hand accounts of the effects of the aid reduction.
“When the budget cuts were announced, a politician friend in Jamaica texted me and said: ‘Why on earth would we do a trade deal with you when China is offering us the same trade deal, and they give us stuff too?’”
Ms Champion was told that NGOs in Syria have already shut medical and educational facilities and made staff redundant, an education project in Uganda closed and a disability project ended in Lebanon.
“They had to let staff go … they couldn't maintain the commitment because their funding agreements this financial year haven't been secured,” she says.
They haven't cut their desire to educate 40 million girls but you can't cut 25 per cent of the budget and keep the same target
Ms Champion was formerly Labour’s shadow secretary for women and equalities and as her equal pay bill demonstrated, is a vehement advocate of female advancement.
During questioning last week, Mr Raab insisted that Britain’s aid would continue to assist 40 million women and girls attain an education – yet the budget has been cut by a quarter.
“They haven't cut their desire to educate 40 million girls but you can't cut 25 per cent of the budget and keep the same target,” the MP for Rotherham in northern England says. “So, you're either educating them to a much lesser degree or one those figures is wrong.”
Her concerns for women worldwide run deeper than Britain’s cutbacks, and she describes the untold damage Covid-19 has unleashed on female advancement as “generational”.
She predicts the secondary effects of Covid-19 will be “very, very brutal” with increased child marriage, female genital mutilation and girls withdrawn from school.
“The long-term impact on those children will be that they never reach their potential, which means that 50 per cent of a population isn't going to be economically viable, which means that the GDP of that country won't be able to reach its potential. So, it's pretty dark.”
In addition, there has been an “astronomical increase” in violence against women and girls while support services are forced to shut their doors, some as a result of Britain’s aid cuts. “It's a horrible, horrible situation,” she says.
That the “tiny amount” of budget dedicated to female gender issues is not ring-fenced is lamentable, Ms Champion says, so any cut will produce “devastating consequences”.
Women will inevitably suffer when the US withdraws its military from Afghanistan in September, she says.
“One of the reasons given for going into Afghanistan was because of the violence against women and girls and a complete lack of education. I can't see that as soon as the troops move out, that suddenly the Taliban are going to change their views.”
UK to suffer reputational damage in Middle East
Britain’s reputation in the Middle East is also likely to suffer with the drastic slimming down of projects in Yemen, Lebanon, Syria and elsewhere creating an impression of “retracting from the region”.
Ms Champion has yet to see proactive engagement or relationship-building in the Middle East from the newly merged Foreign, Commonwealth and Development Office.
“It's not seen as a priority and I can only assume that the people in that region are getting a similar feeling to us, which can only have a negative impact on our relationships, squeezing us out of significance.”
Ms Champion says the government has also been remiss for failing to understand the national security implications of cutting aid, particularly in the Sahel region where ISIS is dominant.
UK foreign aid cuts a boon to ISIS?
With a potential 90 per cent cut in conflict resolution and stability aid, Ms Champion was told by aid agencies that the well-established human trafficking routes back to Britain could be taken over by ISIS terrorists to get extremists into the UK.
“That’s when you go, ‘whoa!’” she exclaims via Zoom from her home in Rotherham.
“I just don't think they've considered it from a security point of view because they just view this as the ‘fluffy bits’ of aid.
"But this is about creating stable countries and people with full tummies and economic potential, so that all of the dark things that can come from that don't happen. Aid is part of our security strategy and that just seems to be forgotten at the moment.”
Another victim could be Britain’s hard-won reputation as a force for good regardless of strategic interests and furthermore, argues the Rotherham MP, the cut will lead to self-inflicted economic damage.
The damage is done because the headlines are out there, the perception is out there
"This has put us in a bad light at the one time when we're trying to renegotiate all of our relationships post-Brexit. It's going to cost considerably more than £4bn in terms of lost reputation, not to mention lost trade deals and unfavourable tariffs countries might impose."
Despite being in opposition, the 51-year-old politician laments that even in the event of a sudden reversal, the decision has already caused irreparable harm.
“The damage is done because the headlines are out there, the perception is out there. A reversal of policy six months down the line is too late. It's all just incredibly short-sighted.”
In the coming weeks, almost certainly after important local elections in England on May 6, the UK government will detail the reduction or deletion of aid each country and project faces.
For Dominic Raab and Boris Johnson, it's going prove difficult to explain the potential consequences for each project at the height of a pandemic and when Britain leads the G7 summit.
It is perhaps only then, Ms Champion suggests with wearied resignation, that they will realise “the untold damage that they’re doing to themselves”.
More on UK foreign aid cuts
UK’s foreign aid cuts likely to hinder vaccination and climate change efforts
Rollout of UK aid cuts threatens work on climate change
UK aid cuts are bad for the globe – and for Global Britain
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Company profile
Company: Eighty6
Date started: October 2021
Founders: Abdul Kader Saadi and Anwar Nusseibeh
Based: Dubai, UAE
Sector: Hospitality
Size: 25 employees
Funding stage: Pre-series A
Investment: $1 million
Investors: Seed funding, angel investors
Wicked: For Good
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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.”
What is a calorie?
A food calorie, or kilocalorie, is a measure of nutritional energy generated from what is consumed.
One calorie, is the amount of heat needed to raise the temperature of 1 kilogram of water by 1°C.
A kilocalorie represents a 1,000 true calories of energy.
Energy density figures are often quoted as calories per serving, with one gram of fat in food containing nine calories, and a gram of protein or carbohydrate providing about four.
Alcohol contains about seven calories a gram.
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
LIVING IN...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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