ANKARA // Turkey faces a growing danger of Syrian economic and social disruption spilling onto its soil, with some fearing an influx of refugees could draw Turkish troops into border operations uncomfortably close to Syrian forces.
President Bashar Al Assad's crackdown on opposition has pushed once-warm ties between Turkey and Syria close to breaking point. His increasingly bloody repression of protests has driven 12,000 Syrian refugees to move north and take shelter in camps in Turkey, while Syrian troops move up to seal the area.
Ankara has sharpened its rhetoric against Damascus, publicly nudging Mr Al Assad to pass reforms and calling his crackdown "savagery". But analysts say Turkey is still holding out hope for a change of heart.
The Turkish foreign minister, Ahmet Davutoglu, said on Friday that a speech by Mr Al Assad contained "positive elements in it as signals of reform", but it was important that action followed.
A Western diplomat with knowledge of the Turkish perspective said: "The Turks seem to be quite worried about a lack of alternatives to a stable regime other than a cruel tyrannical succession.
"Their last best hope, although they are not naive, is that somehow Assad, out of desperation to save his own skin, will undertake meaningful reforms."
Syria, an ally of Iran, sits at the heart of numerous conflicts in the Middle East. An unstable Syria would have repercussions for Turkey, which also borders Iran and Iraq.
Gareth Jenkins, an Istanbul-based security analyst, said: "The fear of the unknown is a major factor."
Referring to Prime Minister Tayyip Erdogan's ruling AK Party, which has improved ties with Syria and other Muslim countries, Mr Jenkins said: "AK is very conservative. It prefers to deal with the devil it knows and Assad is the devil it knows."
But Turkey could decide to ditch Mr Al Assad should Syria descend into a civil war between religious and ethnic groupings.
Though non-Arab, Turkey's demographics have similarities with Syria's. Both have a Sunni majority with Kurdish and Alawite minorities: Mr Al Assad's ruling family are Alawites.
Murat Yetkin, editor of the Hurriyet daily, wrote recently: "The strategic, political dimension says that the stability of Syria is vital for the fragile stability of the Middle East.
"But that doesn't mean that the current regime will be supported at any cost, because the Baath rule cannot produce stability anymore, as it insists on the current policies."
With refugees pouring across the border, media have reported that Turkish political and military leaders are considering setting up a buffer zone inside Syria in case the number of refugees increases sharply.
Officials say they are not aware of such plans.
The commander of Turkey's 2nd Army visited the Guvecci border post this week to take stock of Syrian troop deployments near the border and to see the situation of the refugees for himself.
Turkey was caught off guard when 500,000 people flooded across the border from Iraq during the 1991 Gulf War, many of them staying for some time after the war. The years that followed saw small contingents of Turkish troops policing what was an effective buffer zone in the north of Iraq.
Having almost gone to war in the late 1990s because of Turkish Kurdish militants using Syria as a sanctuary, Damascus would not welcome the prospect of Turkish boots on Syrian soil.
Ankara still faces an insurrection by Kurdish militants seeking their own state in the south-east. Turkey is eager to see borders with Syria, Iran and Iraq that, while open to commerce, are well sealed against rebel infiltration.
Mr Jenkins said creating a buffer zone in Syria would carry risks given concerns of Turkish "neo-Ottoman" foreign ambitions in some Arab countries, but Ankara might be forced to it in the case of a mass influx of refugees.
"If we start seeing a spillover that upsets the internal demographic dynamics of Turkey a buffer zone would be possible. The Kurds are the elephant in the room here," he said.
While Turkey has failed to use its economic leverage to force a change in Damascus - Turkey is Syria's largest trading partner - it is manoeuvring to adapt to any fallout.
A few months ago, Turkey and Syria were holding joint cabinet meetings and military exercises and abolished visa requirements. Earlier this month, Turkey hosted a conference of Syrian opposition figures in the city of Antalya, and members of the outlawed Syrian Muslim Brotherhood operate out of Turkey.
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Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
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Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
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Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company
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.”