Geneva // A stateless child is born every 10 minutes, the United Nations said on Tuesday, warning that the problem has intensified as the conflict in Syria has sparked a global migrant and refugee crisis.
A new report by the UN refugee agency highlights the long-term consequences of statelessness for children such as being deprived of medical care, education and future access to employment.
The problem is particularly severe among migrants and refugees affected by conflict, said the report, which is to be launched by UNHCR chief Antonio Guterres at UN headquarters in New York on Wednesday.
In Syria, children can acquire nationality only through their fathers, but the four-year civil war has forced more than four million people to flee the country and left 25 per cent of refugee families fatherless.
Women who fled Syria while pregnant told UN interviewers that their hopes of one day returning home with their families could be crushed without a birth certificate to prove that their children are Syrian.
Syria’s war has also forced hundreds of thousands of people to seek refuge in Europe, including women who have given birth while trying to move across borders.
The agency said that in the 20 countries hosting the largest stateless populations, “at least 70,000 stateless children are born each year” – or one about every 10 minutes.
“In the short time that children get to be children, statelessness can set in stone grave problems that will haunt them throughout their childhoods and sentence them to a life of discrimination, frustration and despair,” Mr Guterres said.
“Several million children are watching their childhoods slip away without the sense of belonging and protection that comes with a nationality,” the report said.
It noted that in 30 countries, national documentation is required to access basic medical treatment, while in 20 countries stateless children cannot even be vaccinated.
The UN agency proposed several measures to eliminate the scourge of statelessness, including the reform of discriminatory laws that prevent mothers from passing on nationality to their children.
Children should also automatically become nationals of the country where they are born, UNHCR said.
The report identified discrimination as the main cause of statelessness, pointing to 20 countries where nationality can be denied on the basis of ethnicity, race or religion.
In some countries, laws prohibiting such discrimination are ignored in practice, such as the Dominican Republic where people of Haitian descent have often been denied Dominican citizenship, UNHCR said.
The refugee agency has previously set a goal to eliminate statelessness by 2024.
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 INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
ESSENTIALS
The flights
Fly Etihad or Emirates from the UAE to Moscow from 2,763 return per person return including taxes.
Where to stay
Trips on the Golden Eagle Trans-Siberian cost from US$16,995 (Dh62,414) per person, based on two sharing.
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5