Obama calls for a new mindset among racial minorities



NEW YORK // Barack Obama used his first major speech on race since his election as the first African-American president of the United States to acknowledge his debt to the civil rights movement but also to urge individual responsibility to combat inequality and bolster family values. His address to the 100th anniversary celebrations of the National Association for the Advancement of Coloured People (NAACP) in New York on Thursday night was greeted with several standing ovations by the 3,000-strong crowd, which responded enthusiastically to his pastor-like tone even when they were being challenged.

He said while African-American children faced bigger problems than their more wealthy contemporaries, this was no excuse for parents to give up pushing them towards education. "We need a new mindset, a new set of attitudes because one of the most durable and destructive legacies of discrimination is the way that we have internalised a sense of limitation; how so many in our community have come to expect so little of ourselves," he said.

White House officials said Mr Obama spent about two weeks working on the 45-minute speech, in which he paid tribute to his mother, a white Christian woman who mostly raised him in the absence of his Kenyan-Muslim father. NAACP leaders, meanwhile, hoped the speech would help to attract new and younger members to the country's biggest civil rights group, which has struggled in recent years to prove its relevance to the wider African-American community.

Mr Obama outlined how the "pain of discrimination is still felt in America". "By African-American women paid less for doing the same work as colleagues of a different colour and gender. By Latinos made to feel unwelcome in their own country," he said. "By Muslim Americans viewed with suspicion because they kneel to pray. By our gay brothers and sisters, still taunted, still attacked, still denied their rights."

Blacks suffered from higher unemployment and more disease but were less likely to own health insurance while an African-American child was about five times as likely as a white child to be sent to jail, said Mr Obama. But his tough-love message on parenting appeared to resonate the most with his fellow African-Americans, who were encouraged to push their children beyond sport and music. "I want them aspiring to be scientists and engineers, doctors and teachers, not just ballers and rappers," said Mr Obama. "I want them aspiring to be a Supreme Court justice. I want them aspiring to be president of the United States."

The family was one of the most important issues yet to be addressed by the NAACP as it sought to adapt to changing times, said Victor Hall, pastor of the Cavalry Baptist Church in Queens, New York, who welcomed Mr Obama's directness. "Family is the most elemental institution in society," he told the New York One cable television channel. "He delivered a much-needed message and it's where the NAACP should be."

The NAACP has more than 500,000 members but their average age is 50-55. The organisation hopes to benefit from the greater interest in politics and community activism generated by Mr Obama among young African-Americans. But many African-Americans see the group as out of touch. "We need to be pushing our kids into education and off the streets but I don't see the NAACP doing that," said Karl, who did not want to give his full name and who spoke before Mr Obama delivered his speech. "The group is for people who are already educated and have made it."

His remarks were echoed in a recent article by Clarence Page of the Chicago Tribune newspaper. He said the group "runs the risk of becoming an organisation for elites, rallying those who already have some financial, educational and community resources but missing those who need help the most". The NAACP last year elected Benjamin Todd Jealous, then 35, as the organisation's youngest president and CEO. One of his recent innovations was to introduce a monitoring system for people to use their mobile phones to capture images of any instances of police misconduct.

Mr Jealous said recently that the election of Mr Obama had not made his organisation irrelevant, given the continuing socio-economic disparities between blacks and whites. "We're not just for the advancement of a coloured person but the coloured people," he said. sdevi@thenational.ae

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Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa

Rating: 4.5/5

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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