A Yemeni child suffering from malnutrition is fed at a hospital in the capital Sanaa. AFP
A Yemeni child suffering from malnutrition is fed at a hospital in the capital Sanaa. AFP
A Yemeni child suffering from malnutrition is fed at a hospital in the capital Sanaa. AFP
A Yemeni child suffering from malnutrition is fed at a hospital in the capital Sanaa. AFP

US cracks down on ‘warmongers’ who make food a weapon


James Reinl
  • English
  • Arabic

The US has said that millions of civilians face famine-like conditions in Yemen, Ethiopia and other war zones around the world and is pushing for action against the “warmongers” who use hunger as a weapon.

Washington’s ambassador to the UN, Linda Thomas-Greenfield, urged the UN Security Council to become better at spotting famines before they happen and punishing military leaders who block food and other aid from reaching those in need.

According to the UN, more than 88 million people suffered from acute hunger at the end of 2020 due to conflict – a 20 per cent rise compared to the previous year.

And estimates suggest that number is going up.

“We need better, earlier, more consistent reporting on these crises,” Ms Thomas-Greenfield said on Thursday during a meeting of the Security Council, of which the US holds the rotating presidency this month.

“We need to ensure the Secretary General [Antonio Guterres] has the mandate and the tools to bring these emerging conflicts and potential starvation into the spotlight.”

Ms Thomas-Greenfield, a veteran US diplomat who has witnessed famine and other crises during postings in Africa, said the UN's top body must also "analyse and identify who is responsible for hunger" and take action against them.

“After all, acute hunger is the callous weapon of warmongers,” she said.

“It is caused by people with names and faces, and the people who suffer at their hands deserve justice.”

The UN council met against a backdrop of worsening hunger crises across Africa’s Sahel, the Horn of Africa, South Sudan and Afghanistan. More than 30 million people globally are “one step away” from famine, the UN says.

Conditions are worse still in parts of Yemen, South Sudan and Burkina Faso, where famine or famine-like conditions exist and more than 150,000 people are at risk of starving to death, the world body says.

This has all been made worse by the Covid-19 pandemic that has infected more than 118 million people, killed more than 2.6 million others and caused widespread job losses and destroyed economies, Mr Guterres told the council.

“Ending hunger requires us to find political solutions to conflict. I urge all states to make ending conflict, not simply mitigating its impact, a key foreign policy priority,” said Mr Guterres.

“There is no place for famine and starvation in the 21st century.”

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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August, 2021: Host - United States; Teams - UAE, United States and Scotland

Between September and November, 2021 (dates TBC): Host - Namibia; Teams - Namibia, Oman, UAE

December, 2021: Host - UAE; Teams - UAE, Namibia, Oman

February, 2022: Hosts - Nepal; Teams - UAE, Nepal, PNG

June, 2022: Hosts - Scotland; Teams - UAE, United States, Scotland

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