A Rastriya Prajantantra Party supporter with a portrait of the former king, Gyanendra Shah, at a rally in Kathmandu last year. Navesh Chitrakar / Reuters
A Rastriya Prajantantra Party supporter with a portrait of the former king, Gyanendra Shah, at a rally in Kathmandu last year. Navesh Chitrakar / Reuters
A Rastriya Prajantantra Party supporter with a portrait of the former king, Gyanendra Shah, at a rally in Kathmandu last year. Navesh Chitrakar / Reuters
A Rastriya Prajantantra Party supporter with a portrait of the former king, Gyanendra Shah, at a rally in Kathmandu last year. Navesh Chitrakar / Reuters

Nepal chaos may herald return of the royalists


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KATHMANDU // Just a few years ago, Nepal’s royal family looked consigned to the history books.

A palace massacre by an unhinged crown prince in 2001, in which the king and eight members of his family were killed, was followed seven years later by the abolition of the monarchy by a Maoist-dominated special legislative assembly.

But the Himalayan nation’s political and economic fortunes have dipped alarmingly since then, opening a window of opportunity for diehard supporters of the monarchy to stage a comeback.

The Rastriya Prajantantra Party Nepal, a royalist group led by Kamal Bahadur Thapa, who was interior minister at the height of antimonarchy protests, has found a way back into the political fray with a strident campaign to once again make Nepal the world’s only Hindu state.

“Our main agenda is a Hindu state with a constitutional monarchy,” Mr Thapa said. “The monarchy should be the last custodian of the country during the times of crisis.”

“We want Nepal to be a Hindu nation where all religions will coexist, all religions will be free and equal. There will be no discrimination on the basis of religious beliefs,” said the former national football player, immaculately dressed in skin-tight trousers, a knee-length shirt and a traditional boat-shaped Nepali cap.

India, which lies to landlocked Nepal’s south, east and west, also has a Hindu majority but is secular. China is on the north giving fragmented and impoverished Nepal a key strategic position between Asia’s two giants.

The royalists’ new-found clout could further complicate the struggle to build a stable democracy in a country that is riven by the competing agendas of Maoists, centrist groups and regional parties. Nepal has not had a constitution or a stable government since the overthrow of the monarchy.

More than 81 per cent of Nepal’s 27 million people are Hindus. For more than two centuries Nepal was ruled by Hindu monarchs of the Shah dynasty, and the kings themselves were revered as incarnations of the god Vishnu.

In 1990, King Birendra began dismantling his absolute power after pro-democracy protests, but the monarchy fell apart when his son Dipendra killed his parents, siblings and other royals in a drug-fuelled rage.

Birendra’s brother Gyanendra, who was not in the palace at the time of the massacre, was forced out by a popular uprising some years later. As Maoist rebel fighters laid down their arms to join the political mainstream, Nepal was declared a secular republic.

Now, the last royals have faded from public view, except for temple appearances by Gyanendra. He lives in a bungalow not far from the royal palace in central Kathmandu, which has been converted into a museum.

His unpopular son and a one-time successor, Paras — best know for his glamorous lifestyle and flaming temper — has not been seen for years and is thought to be living in Thailand.

“It’s the monarchy that has kept this country united, generations of them,” said Keshar Bahadur Bista, a former education minister and number 2 in the royalist party.

“We have never been occupied, we are proud of it. Even a big country like India has been repeatedly occupied. But now the Maoists are trying to divide us in the name of race, religion.”

Gyanendra has not commented on the royalist party or the campaign to bring back the monarchy.

The royalist party emerged as the fourth-largest behind the three main political formations in elections held last month to a 601-member assembly that will draft a charter to guide Nepal’s future after a failed attempt by a previous assembly.

It won six per cent of the popular vote, which gives 24 seats in the constituent assembly, up from one per cent in the previous election. The emergence of the royalists as a right-of-centre force to be reckoned with puts them on a collision course with the Maoists.

The Maoists call the royalist party’s win temporary.

“The monarchy has ended in Nepal for ever. It cannot come back,” said Devendra Paudel, a senior Maoist leader.

“The votes won by them showed people’s dissatisfaction with other parties,” he said, referring to the royalists. “They voted for religious reasons and not for the monarchy. This support for the royalists will not last long.”

For the Maoists, the state has no business to be in religion and they believe that the faster it is stamped out, the better Nepal’s prospects as a modern republic. For the royalists, the constitutional monarchy and Hinduism is central to the party and Nepal’s national identity.

In October, just before the start of the election campaign, senior members of the party gathered for special prayers in an incensed-filled temple in Gorkha, home to the country’s celebrated Gurkha warriors, pledging to re-establish a Hindu state.

To the chanting of Vedic hymns and with red vermilion smeared on their foreheads, an important symbol of Hinduism, they set off from the temple on an 11-day journey, drawing inspiration from the first king’s struggle to unite a fractious nation that had begun from there 250 years earlier.

Ramesh Nath Pandey, a former foreign minister in the king’s cabinet, said overturning Nepal’s Hindu identity was ill-conceived and a decision taken in the heady moments of the collapse of the monarchy.

“We cannot go back to exactly what it was. But our problem is we don’t have a leadership, a custodian of national interest in the way the monarchy was, the last line,” Mr Pandey said.

*Reuters

COMPANY PROFILE
Name: Mamo 

 Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua

 Based: Dubai, UAE

 Number of employees: 28

 Sector: Financial services

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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.”

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Toss: Northern Warriors, elected to field first

Bengal Tigers 130-1 (10 ov)

Roy 60 not out, Rutherford 47 not out

Northern Warriors 94-7 (10 ov)

Simmons 44; Yamin 4-4

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