• The AUB, one of the oldest universities in the Middle East region, will update the exchange rate to 3,900 Lebanese pounds to the US dollar, after it was officially stabilized at 1,500 Lebanese pounds to the dollar 23 years ago. EPA
    The AUB, one of the oldest universities in the Middle East region, will update the exchange rate to 3,900 Lebanese pounds to the US dollar, after it was officially stabilized at 1,500 Lebanese pounds to the dollar 23 years ago. EPA
  • Medical students at the American University of Beirut (AUB) wear face masks as they attend a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
    Medical students at the American University of Beirut (AUB) wear face masks as they attend a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
  • Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
    Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
  • Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
    Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
  • Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
    Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
  • Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
    Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
  • Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA
    Medical students at the American University of Beirut (AUB) shout slogans during a protest against the adjustment of the dollar rate for new tuition fees in Beirut, Lebanon. EPA

'A declaration of war': Lebanese students unite against hike in tuition fees


Aya Iskandarani
  • English
  • Arabic

Lebanese student leaders warned on Saturday that a recent hike in tuition fees at two leading Beirut universities constitutes a “declaration of war” against young people struggling to cope with an economic crisis and demanded involvement in decisions affecting their future.

“This is a declaration of war on 70 per cent of students who cannot afford the new fees,” said Jad El Hani of the American University in Beirut’s Secular Club at a press conference. “This is like telling young people: you have no right to learn.”

Young independents across Lebanon have presented a united front to defend their right to an education, which is becoming largely unaffordable in a country lauded for its quality of higher learning.

For the past 30 years, political life in the country's universities had been dominated by the same sectarian parties that have ruled the country since the end of the civil war, and are widely accused of corruption and mismanagement.

Yet independents won an unprecedented number of seats in student elections this year, a feat that would have been unimaginable before the nation-wide protests that broke out in October 2019.

They have organised protests on campuses throughout Lebanon against sudden hikes in tuition fees that could leave many students unable to continue their education in the Spring semester.

We decided not to pay the price anymore. We will no longer be victims

Two of Lebanon’s most well-known universities have announced changes that amount to more than doubling tuition fees. Others are expected to follow suit. This has angered students, many of whom are unable to pay the difference.

For the past year, a financial crisis triggered in part by a lack of foreign currencies has sent the lira into freefall. It is currently trading over 8,000 to the dollar on the black market, crushing the purchasing power of Lebanese people.

Last week, the American University in Beirut and the Lebanese-American University decided to price their tuition fees at a rate of 3,900 lira per dollar instead of the official peg of 1,500 lira.

AUB President Fadlo Khuri said the university had no other choice but to hike tuition fees to make up for the gap between its revenues in a depreciating Lebanese pound and its expenditures.

Independent student groups are demanding the government acts to prevent universities from increasing tuition fees without consulting students, a new contract between students and universities guaranteeing political freedoms, university elections and a cap on hikes in fees, and finally an overhaul of the Lebanese university, the country’s only public higher learning institution.

Medical students at the American University of Beirut (AUB) carry cutout placards forming the new tuition fee amount of 170 million Lebanese pounds. EPA
Medical students at the American University of Beirut (AUB) carry cutout placards forming the new tuition fee amount of 170 million Lebanese pounds. EPA

In the meantime, Mada Network, a youth political advocacy group, is supporting the creation of new independent groups on campuses as students heed their call for change and better representation.

Karim Safieddine of Mada Network says the sudden increase in fees is rejected by students.

“Why should we be the ones to pay the price of the economic crisis just like we paid the price when the same political class stayed in power after the civil war?” Mr Safieddine told the press on Saturday, adding that the protest movement that started in October 2019 had emboldened them to stand up for themselves.

“We decided not to pay the price any more. We will no longer be victims after October 17.”

Beirut is considered a beacon for higher education in the Middle East, its universities attracting the brightest minds in the region and exporting talent worldwide.

Over the years, the chances of finding employment in Lebanon after graduating have dwindled as a sluggish economy forced young people to seek opportunities abroad.

But young Lebanese now envisage a future in their home country.

“October 17 has changed the lives of all Lebanese, but especially students. We were expecting to graduate and leave the country. Now we have hope for Lebanon again. It was life-changing,” Marita Matar, a member of the newly formed USEK Independents, said.

She spoke of a taboo surrounding politics in universities. Politics is often associated with conflict and sectarianism by an older generation of Lebanese who lived through the civil war. This has kept younger people from engaging in political life for a long time. But now, they are reclaiming their right to be heard inside and outside university.

Resigned independent MP Paula Yacoubian, who was briefly present at the event, said this was the beginning of a wider change in Lebanese politics.

“They are the generation of true change. I have no doubt that the shift we are seeing today in student elections will be reflected in parliamentary and union elections,” Ms Yacoubian said.

Student representatives said it was necessary to lower the voting age from 21 to 18 to reflect this political awakening before the 2022 scheduled parliamentary elections.

“Our work starts in university but it does not stop there. After we graduate, our goal is to give people hope in parliamentary and union elections,” Ms Matar said.

“We want to show students that there is an alternative and this alternative is us.”

SHAITTAN
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EVikas%20Bahl%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EAjay%20Devgn%2C%20R.%20Madhavan%2C%20Jyothika%2C%20Janaki%20Bodiwala%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A

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.”

Heather, the Totality
Matthew Weiner,
Canongate 

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory