The international community must look beyond outgoing Afghan president Hamid Karzai and focus on developing a long-term relationship with Afghanistan, says Gianni Koskinas, a Kabul-based consultant who is focused on fostering development in Afghanistan and a former US Special Operations officer.
In my heart, and I live in Kabul so I vote with my feet, I believe that there is a serious promise of something better coming to Afghanistan in the next months.
At the moment, the discussion is focused on security issues. No one wants to talk about the economy and what would actually improve the lives of individual families, things that will actually make people stop picking up guns.
Unless you have a national vision that includes some big projects that will put people to work, all the security that you bring to bear is relative or temporary because you won’t have people in jobs. Security versus economy – it’s not a chicken or egg question.
People give almost cheerleader-like speeches about the trillions of dollars in resources in Afghanistan. The Silk Road goes through the country, they say.
That’s fantastic but, unless there are some real concrete steps, we won’t unleash that potential.
There are incredible resources in Afghanistan, it’s true. First, the human resources. There’s an educated group that are coming up now.
They are incredibly entrepreneurial. They are a wily bunch of people who can get things done.
But instead of just dumping money in here, the international community should consider a long-term economic commitment that includes big projects that will actually make economic growth happen.
The commitment should be about rebuilding at a steady rate and helping with projects that will be hubs of economic development. The next step is private investment.
I have a real problem with the fact that the international community has not done a good enough job of fostering private investment in Afghanistan in a way that will improve the country’s economic outlook in the following years when the donor funds start to diminish.
For all the money we’ve spent in Afghanistan it’s still a landlocked country with no railroad to the Arabian Sea.
There are projects that could happen in the country that could transform the region, not just one particular province; a railroad to Gwadar port is the perfect example.
Someone might say those big projects would be really expensive.
But let’s compare what we’ve spent on micro projects to what could have been spent on a mega project.
Imagine if someone told the leaders of the UAE that it’s going to be really expensive to transform Abu Dhabi or Dubai. If you don’t have the vision to transform the area all the money in the world can’t do it.
This long-term commitment to Afghanistan is vital because the country is important for many reasons.
It’s not just the fight against Al Qaeda, though I would submit that we can’t declare victory against them. That movement will morph into something else. You need to be able to pursue it. The US can do this with its partners. It can’t do a unilateral pursuit of terrorists.
The best thing we can do is strengthen the capabilities of the states in this region, which is a long-term thing. You have to stay to do it.
You should have a base in Afghanistan to be able to do some of the things you want to do in terms of strategic view. Not because you have goals of invasions, which is totally nonsense.
Staying within a context of a strategic partnership will be a source of stability and strength because the Afghans are getting something out of it as well.
After the final round of the presidential election there will be a new government, a new focus on building Afghanistan’s relationship with the international community, which the current president, Hamid Karzai, has not focused on.
His vitriol when he talks about the West is obviously meant to appeal to extreme portions of his domestic audience. While his statements have not been connected to attacks on foreigners, Karzai is driving a perception of an anti-western atmosphere. Many foreign organisations now must operate outside the country.
But I think there will be change with a new president and I am hoping that the business environment will change because Karzai’s team has not been business-friendly.
There has been corruption; there is a problem that one day he calls the US an ally, the next he treats the US like an enemy. The relationship has evolved into something that is, quite frankly, unworkable.
Just think, we could not get the bilateral security agreement signed even though it’s not contentious. The Loya Jirga approved the measures, but Karzai still doesn’t want to be the guy that signs the paper.
The ideal US commitment is a long-term commitment. You do not start by introducing one or two-year timelines to a relationship. That’s not how it works in Afghanistan and that’s not how it works in many countries. At the same time, Afghanistan’s commitment to the world needs to be about progress and a roadmap towards peace.
Relationships between countries are reflections of a much bigger aspect: it’s between people.
foreign.desk@thenational.ae
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.”
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Stamp duty timeline
December 2014: Former UK finance minister George Osbourne reforms stamp duty, replacing the slab system with a blended rate scheme, with the top rate increasing to 12 per cent from 10 per cent:
Up to £125,000 - 0%; £125,000 to £250,000 – 2%; £250,000 to £925,000 – 5%; £925,000 to £1.5m: 10%; Over £1.5m – 12%
April 2016: New 3% surcharge applied to any buy-to-let properties or additional homes purchased.
July 2020: Rishi Sunak unveils SDLT holiday, with no tax to pay on the first £500,000, with buyers saving up to £15,000.
March 2021: Mr Sunak decides the fate of SDLT holiday at his March 3 budget, with expectations he will extend the perk unti June.
April 2021: 2% SDLT surcharge added to property transactions made by overseas buyers.
Polarised public
31% in UK say BBC is biased to left-wing views
19% in UK say BBC is biased to right-wing views
19% in UK say BBC is not biased at all
Source: YouGov
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
THE%20SPECS
%3Cp%3EBattery%3A%2060kW%20lithium-ion%20phosphate%3Cbr%3EPower%3A%20Up%20to%20201bhp%3Cbr%3E0%20to%20100kph%3A%207.3%20seconds%3Cbr%3ERange%3A%20418km%3Cbr%3EPrice%3A%20From%20Dh149%2C900%3Cbr%3EAvailable%3A%20Now%3C%2Fp%3E%0A
Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million