Last month, Transparency International reported that Lebanon had dropped several notches on its annual corruption index, putting us in pretty fruity company. We are marginally more ethical than Myanmar, Guinea and Nigeria but more dishonest than Iran, Nepal, Kazakhstan, Russia, Ukraine, Guatemala and Kyrgyzstan.
It is no shock that corruption has wormed its way into every aspect of Lebanese life with the possible exception of the religious establishment. According to TI, we belong to a group of countries where people and businesses “face situations of bribery and extortion, rely on basic services that have been undermined by the misappropriation of funds and confront official indifference when seeking redress from authorities that are on the take”.
I will go further: our police have little or no sense of right or wrong and try their very best to avoid confronting anyone breaking the law lest they be better armed or even better connected. I mean why rock the boat? Anyone who actually goes to jail is stupid, unlucky or unable to buy their way out.
Lebanese learn to beat the system from an early age. Cheating in exams at school or university, or anywhere for that matter, is not looked on with the bowel-evacuating shame that exists in the West and there is no threat of social shame. Au contraire. I have met fathers who are actively proud that their kids have done well by cheating. Isn’t life a jungle? Let them get used to it.
The civil war is partly to blame. Lebanon was a country where a little baksheesh was a harmless social custom, while the police, civil servants and judiciary were cleaner. But during the war we descended into a Hobbesian nightmare from which we have never woken. A whole generation has grown up with absolutely zero values. No one, least of all the political class, which in any decent European country would be thrown in jail, sets an example.
Twenty years ago, as a business reporter on the Daily Star, I was sent out to follow two health and safety inspectors from the ministry of finance, presumably as part of a PR exercise with the media. We went to supermarkets, fish shops and fruit stalls. Spot checks were made and fines were handed out; I was impressed and duly wrote up a gleaming story of how our dynamic duo was saving the country from salmonella.
Looking back, I am 99 per cent certain it was all for our benefit. I doubt anyone paid those fines. I’m not saying that our health and safety heroes didn’t do their job. They wouldn’t risk people’s lives, but I’m sure they also are well practised at turning a blind eye to minor infractions. How else do they subsidise their incomes?
In the meantime my wife and I have raised our children not to cheat and to look with scorn at all types of bribery or favouritism. Rules are rules. Right? Which brings me to last Wednesday when I landed in Beirut to find immigration officials overwhelmed by the number of passengers arriving on multiple flights at the same time. I travel to Beirut a lot and had never seen it like this. I estimated it would take at least an hour to get processed.
A friend whom I had met on the flight and was queuing with me whipped out his phone. I thought he was calling home to tell his wife he’d be late but it turned out he was calling one of the fabled “US$100 men”, airport officials who can, for a price, smooth the way.
Two minutes later a uniformed officer appeared and motioned us out of the line towards a desk where passengers were waiting for visas. Our passports were handed over and in two minutes were processed. He then led us through the diplomatic channel and into the baggage reclaim area. The “service” didn’t end there. He waited with us for our bags and then again ushered us through the fast lane with a cheery greeting to his colleagues. Outside, he helped to load the bags into a taxi before my friend embraced him, expertly passing a neatly folded bill into his grateful palm. I also got a hug.
As we drove into town my friend broke the silence. “I don’t normally do that,” he muttered, “but I just couldn’t cope with all those people. You saw what it was like. It was like a zoo.” I nodded.
I had to admit that not only was I supremely grateful, I was actually quite impressed, and in that moment I hated myself.
Michael Karam is a freelance writer who lives between Beirut and Brighton.
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THE SPECS
Engine: 1.5-litre, four-cylinder turbo
Transmission: seven-speed dual clutch automatic
Power: 169bhp
Torque: 250Nm
Price: Dh54,500
On sale: now
The%20specs
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How the bonus system works
The two riders are among several riders in the UAE to receive the top payment of £10,000 under the Thank You Fund of £16 million (Dh80m), which was announced in conjunction with Deliveroo's £8 billion (Dh40bn) stock market listing earlier this year.
The £10,000 (Dh50,000) payment is made to those riders who have completed the highest number of orders in each market.
There are also riders who will receive payments of £1,000 (Dh5,000) and £500 (Dh2,500).
All riders who have worked with Deliveroo for at least one year and completed 2,000 orders will receive £200 (Dh1,000), the company said when it announced the scheme.
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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More coverage from the Future Forum
Company%C2%A0profile
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JAPANESE GRAND PRIX INFO
Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday
Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
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COMPANY%20PROFILE
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Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
MATCH INFO
Uefa Champions League, last-16. first leg
Atletico Madrid v Juventus, midnight (Thursday), BeIN Sports
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books
Genesis G80 2020 5.0-litre Royal Specs
Engine: 5-litre V8
Gearbox: eight-speed automatic
Power: 420hp
Torque: 505Nm
Fuel economy, combined: 12.4L/100km
Price: Dh260,500
Globalization and its Discontents Revisited
Joseph E. Stiglitz
W. W. Norton & Company
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5