US President Joe Biden, Finland President Sauli Niinisto and Swedish Prime Minister Magdalena Andersson at the White House in Washington last month. Bloomberg
US President Joe Biden, Finland President Sauli Niinisto and Swedish Prime Minister Magdalena Andersson at the White House in Washington last month. Bloomberg
US President Joe Biden, Finland President Sauli Niinisto and Swedish Prime Minister Magdalena Andersson at the White House in Washington last month. Bloomberg
US President Joe Biden, Finland President Sauli Niinisto and Swedish Prime Minister Magdalena Andersson at the White House in Washington last month. Bloomberg


The West's unity in Ukraine obscures its long-term weaknesses


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June 09, 2022

It was not so long ago that French President Emmanuel Macron declared Nato to be “brain dead”, that Europe was “on the edge of a precipice”, and if the continent did not “wake up”, its peoples might “no longer be in control of our destiny". He was far from alone.

Britain’s departure from the EU was widely viewed as a catastrophe that seriously weakened the bloc, while former Belgian prime minister Guy Verhofstadt criticised the EU for “always acting too little too late”. In 2020, the US-based Atlantic Council asked “Is Nato still relevant?”, and many wondered whether the alliance really would collectively go to war if one its newest members – North Macedonia, or Montenegro, say – suffered a border incursion.

Now the consensus is that Russia’s invasion of Ukraine has united both Europe and the much-expanded Atlantic alliance as never before. Germany has managed to slough off its historically understandable semi-pacific stance, with its parliament voting last Friday for a constitutional amendment to create a €100 billion ($107bn) defence fund. "This is the moment in which Germany says we are there when Europe needs us," said Foreign Minister Annalena Baerbock. Even critics of Nato enlargement can see the logic now of Sweden and Finland applying to join.

On the back of the Aukus security pact between the US, the UK and Australia announced last September, there is now ambitious talk of a “global Nato”, with British Foreign Minister Liz Truss particularly vocal on the subject. “Nato must have a global outlook, ready to tackle global threats,” she said in a speech in April. “We need to pre-empt threats in the Indo-Pacific, working with allies like Japan and Australia to ensure that the Pacific is protected.”

All sorts of predictions could be upended if climate change wreaks its worst

US President Joe Biden may not be particularly popular at home, but it would be easy to believe that the American-led world order has found its mojo again, and is now prepared to go on the offensive to secure its dominance for decades to come. This, however, would be an illusion for two reasons. Firstly, the “world” has not come together over Ukraine. Europe, most of the Anglosphere and their allies have, yes. But much of Asia and Africa has remained essentially on the sidelines, partly because of degrees of reliance on Russian arms and the grains supplied by both Russia and Ukraine, and partly out of a sense that they do not wish to take sides too strongly over a far-away conflict that is not of their making; and anyway, both continents have plenty of their own crises to deal with.

Secondly, a US- and Europe-led world is simply not sustainable for long. By mid-century, and definitely by the end of the century, the Earth will be a hugely different place. Take Europe. According to one survey, EU 28 countries – that is, the current EU members plus the UK – made up 13 per cent of the global population in 1960, but are predicted to account for only 4 per cent by 2100. Similarly, while they accounted for more than one third of global GDP in 1960, by the end of the century that is expected to shrink to less than one tenth.

Modelling by Bloomberg has China outranking the US as the world’s biggest economy by 2035, with India overtaking Japan as the third largest by 2033, and Indonesia taking fourth place and Brazil the seventh by 2050. Multiple studies suggest that Africa’s population will triple by the end of the century, and that even by 2050, two in every five children will be born in the continent.

Now all sorts of predictions could be upended if climate change wreaks its worst.

A home near Bundanoon, Australia, is on fire in 2020. The frequency and duration of droughts will continue to increase, the UN warned last month. AP Photo
A home near Bundanoon, Australia, is on fire in 2020. The frequency and duration of droughts will continue to increase, the UN warned last month. AP Photo

A World Economic Forum report forecast that if global temperature rises by more than three degrees by 2100, “Australia, North Africa, and parts of the western United States might be entirely abandoned”, the equatorial belt would become “mostly uninhabitable”, Himalayan, Alpine, and Andean glaciers would have almost disappeared, resulting in acute water insecurity, more people would be starving than ever before, and “whole countries [would] suffer from epidemics of stunting and malnutrition". That is quite apart from likely wars over resources and dystopian visions of wealthier societies locking down borders to keep the hungry masses out.

If we avert disaster, however, the balance of populations, the relative size of economies, and the order of power will be unrecognisable. How could the US still be the global hegemon if it makes up only 10 per cent of the world’s GDP in 2100? If India and China vie for the top position with about 20 per cent and 17 per cent apiece, they will undoubtedly shape whatever global order exists at that point in ways almost unimaginable today.

I make no particular judgement about what that world will be like, other than the obvious one that the peoples of what are currently developing nations will have long insisted that absurdities such as having a UN Security Council that is four fifths composed of European or European-settled countries are done away with.

Europe and the US will have a different place in that world. A more equal one, it is to be hoped, based on merit, good neighbourliness and contribution to global solutions. But it will be nothing like the coalition of the victorious West that some currently appear to envision. A revived Europe and a more globally active Nato may be the course for a few years to come. But if not the very last hurrah, it is the first of the last hurrahs of the political-security order founded after the Second World War. We shall see its passing before long; the current unity and flurry of activity should not deceive anyone otherwise.

How to invest in gold

Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.

A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).

Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.

Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”

Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”

Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”

By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.

You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.

You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.

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Tips to stay safe during hot weather
  • Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
  • Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
  • Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
  • Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
  • Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
  • Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
  • Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
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SPECS
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BRIEF SCORES:

Toss: Nepal, chose to field

UAE 153-6: Shaiman (59), Usman (30); Regmi 2-23

Nepal 132-7: Jora 53 not out; Zahoor 2-17

Result: UAE won by 21 runs

Series: UAE lead 1-0

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

When is VAR used?

Goals

Penalty decisions

Direct red-card incidents

Mistaken identity

UAE currency: the story behind the money in your pockets
MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

While you're here

Michael Young: Where is Lebanon headed?

Kareem Shaheen: I owe everything to Beirut

Raghida Dergham: We have to bounce back

Updated: June 27, 2022, 11:39 AM`