Yevgenia Plakhina, second from left, an Almaty-based journalist, holds up a picture of Kuanyshbek Yesekeyev, the head of the Kazakh Information and Communication Agency, during a protest in June against legislation that tightens government control over the internet.
Yevgenia Plakhina, second from left, an Almaty-based journalist, holds up a picture of Kuanyshbek Yesekeyev, the head of the Kazakh Information and Communication Agency, during a protest in June against legislation that tightens government control over the internet.
Yevgenia Plakhina, second from left, an Almaty-based journalist, holds up a picture of Kuanyshbek Yesekeyev, the head of the Kazakh Information and Communication Agency, during a protest in June against legislation that tightens government control over the internet.
Yevgenia Plakhina, second from left, an Almaty-based journalist, holds up a picture of Kuanyshbek Yesekeyev, the head of the Kazakh Information and Communication Agency, during a protest in June again

Kazakhstan puts pressure on bloggers


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ALMATY // Last October, Adil Nurmakov, a popular blogger in this Central Asian republic, started having mysterious problems accessing his account on the popular website Livejournal.com. For the computer-savvy Mr Nurmakov, it was a minor inconvenience: he simply installed software to circumvent such blockages, and now, anyone who is interested can easily follow his daily blog posts.

Easily, that is, outside of Kazakhstan. Livejournal remains inaccessible for less technically adept internet users in Kazakhstan, and a small but vocal band of bloggers in the mainly Muslim republic claim that the government is stifling online political discussion. Kazakh officials say technical problems have hindered access to Livejournal, though observers believe the government is deliberately blocking the site because of a blog by Rakhat Aliyev, the self-exiled former son-in-law of the Kazakh president, Nursultan Nazarbayev. Mr Aliyev has become a fierce critic of the iron-fisted leader and faces criminal charges in Kazakhstan.

Government pressure on Kazakh websites was stepped up this month when legislation came into force that essentially qualifies all internet resources, including blogs, chat rooms and online shopping sites, as media outlets and subjects them to criminal statutes for disseminating illegal material. Critics say the law will be selectively applied to websites that criticise Mr Nazarbayev and his government and that it is impossible for websites to filter, for example, all offensive comments that readers may leave on blogs and internet forums.

The Kazakh government has said the law is aimed at stemming the spread of child pornography and extremist materials, though Kuanyshbek Yesekeyev, head of the Kazakh Information and Communication Agency, openly told politicians this year that internet regulation is needed to prevent online organisation of mass protests like those that hit Moldova, another former Soviet republic, following presidential elections there in May.

"They never concealed that the objective is to prevent events like in Moldova or in Iran ? by effectively shutting down all resources that can broadcast alternative opinions both externally and internally," Mr Nurmakov said. The changes to the law come as Kazakhstan prepares to assume the chairmanship of the Organisation for Security and Co-operation in Europe (OSCE) next year. Kazakhstan had promised broad democratic reforms, including improvements in media freedoms, in its bid for the OSCE chairmanship.

The OSCE's representative on freedom of the media, Miklos Haraszti, urged Mr Nazarbayev in June to drop the legislation, saying it represented "a step backwards in the democratisation of Kazakhstan's media governance". "Refusing to enact this law will send a strong signal that the forthcoming OSCE chairmanship of Kazakhstan in 2010 intends to fully honour the country's OSCE media freedom commitments," Professor Haraszti said.

With the new law less than a month old, Kazakh bloggers are simply waiting to see how it will be enforced, said Yevgenia Plakhina, an Almaty-based journalist and head of the Free Internet Movement. "Everyone is waiting with bated breath," said Ms Plakhina, who helped organise a series of flash mobs this year to protest against the amendments. Most of the Kazakh blogosphere communicates in Russian rather than Kazakh - it is better developed than the Kazakh-speaking internet and most of the population speaks Russian - and only 14 per cent of Kazakhstan's 16.5 million citizens regularly use the internet, Ms Plakhina said. "But it's not necessarily the quantity that's important, but rather the quality," she said, noting that the blogosphere is a place for the educated classes to debate the direction of the country's politics.

"Now they want to make sheep out of us," Ms Plakhina said. In the meantime, Yury Mizinov said he was watching his step. Mr Mizinov, editor of the website Zonakz.net, said he was approached last year by prosecutors who were upset not about the content he published, but rather by a link he posted on his site to a video on YouTube, where a visitor had left a comment they found objectionable. "They said it was hate speech," Mr Mizinov said, though he could not remember the nature of the video or the comment. "They wanted to take it to court, but the issue was settled peacefully."

He said that since the law came into force on August 2 he had been combing the reader forums on his site to expunge material that could land him in jail. "Now any small-time bureaucrat can claim something is hate speech, whether on blogs or in forums, and our website will be closed," Mr Mizinov said. He said some of the material he is deleting includes negative comments about Mr Nazarbayev and others that could conceivably be considered hate speech, though he said a lack of manpower made it virtually impossible to catch everything.

"But we have to save the website, so these are the steps we have to take," he said. cschreck@thenational.ae

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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.”

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

Movie: Saheb, Biwi aur Gangster 3

Producer: JAR Films

Director: Tigmanshu Dhulia

Cast: Sanjay Dutt, Jimmy Sheirgill, Mahie Gill, Chitrangda Singh, Kabir Bedi

Rating: 3 star