The UN is not perfect but it might be the only tool we have for global co-existence. Julie Jacobson / AP
The UN is not perfect but it might be the only tool we have for global co-existence. Julie Jacobson / AP

Beyond the protocol and the preening, the tedium and tantrums, what happens in the UN matters to all of us



This week the world's diplomats are gathering once again in New York for the annual jamboree of statecraft, the UN General Assembly.

They do so against a challenging backdrop, as its critics ask: what role is left for diplomacy amid the rubble of Syria? Or when Russian agents face no penalty for leaving lethal traces of Novichok nerve agent around the English countryside? Or when the US president prefers the increasingly adversarial arena of Twitter to the back rooms of the UN?

Diplomats often ease the path for states to release their grip on those bits of their authority that need to be surrendered if we are to live, work and create better together as humans – not a popular role in a populist moment. And if states themselves are becoming victims of the widespread crisis of trust, who needs their representatives?

Despite being hosted in the city that never sleeps, the UN can feel pretty low-octane. The rooms have too little air and the speeches too much of it. But away from the podium, it is diplomatic speed-dating: plenaries, pull-asides and photo opportunities; bilateral summits and brush-bys; grins and grimaces.

The UN might not be perfect. Yet beyond the protocol and preening, the tedium and tantrums, what happens in those corridors really matters to all of us. No one has yet come up with a better idea for global co-existence and we have subcontracted to the UN many of the biggest challenges facing humanity.

This year the UN gathers, having buried two of the world’s most inspirational diplomats, senator John McCain and former UN secretary general Kofi Annan. Their lives and decisions were not always perfect but their stories stood for something beyond narrow personal ambition or national interest.

Having experienced the horror of war, McCain was a huge advocate for an international system built with such patience and sacrifice that it would reduce the chances of future conflicts. Having suffered torture, he was its most compelling and articulate critic. Having helped make America great, he knew that responsibility to be more than a soundbite.

Annan was the architect of the sustainable development goals. But for me, his supreme diplomatic achievement was in the aftermath of the Kenyan elections in December 2007. He was patient, humble and – a much underrated diplomatic quality – stubborn in pursuing a political agreement that could stop violence. He was also tireless. I remember him calling at 5am on New Year’s Day when I was working for then British prime minister Gordon Brown.

In a digital age, it is easier to disrupt than to build. Like every other profession, diplomacy is being challenged by technology. And it has to fight its corner.

But what McCain and Annan reminded us all was that we could still build networks in a time of institutional failure; consensus in a time of arguments; and bridges in a time of walls. We can still strive for expertise, patience, perspective and judgment in a time of fake news, soundbites and echo chambers.

We can still aspire to be courageously calm, tolerant and honest in a time of outrage, intolerance and "post-truth" politics. We can be internationalist in a time of nationalism and open-minded in a time of closed minds. Above all, we must remain curious in a time of too much certainty.

So diplomacy doesn't die with diplomatic greats like McCain and Annan.

I saw that in preparations for tomorrow's Global Tech Panel in New York, where we are bringing together government and technology leaders to tackle the new frontiers of diplomacy, including how to create jobs and growth across the Middle East and how to update international rules to govern artificial intelligence, autonomous weapons and automation.
I saw it this month in the excitement and passion of new students at the Emirates Diplomatic Academy, eager to learn and put the craft into statecraft.

And most of all, I heard it in the messages from my sons’ teachers at the start of the school year, as they spoke about the need to be curious, kind and brave in finding ways to live and work together. These are the essence of diplomacy. But much more importantly, they are the simple but vital life skills that will keep humanity moving forward.

What might McCain and Annan have told those young learners? Well, I keep a book of advice for my son from inspirational figures. Both men were kind enough to take the time to write in it.

Annan’s advice was to “study hard, travel widely, learn about other cultures, listen to people but find your own path”.

And McCain wrote his advice in Downing Street, during a visit when he was running for president: “Dear Charlie, there is no greater vocation than to serve. But there is no greater purpose than to love. Live a life that does both, and you’ll be truly happy.”

Don’t write off diplomacy just yet.

Tom Fletcher is a former UK ambassador and adviser to three prime ministers. He is an adviser at the Emirates Diplomatic Academy, visiting professor at New York University Abu Dhabi and the author of The Naked Diplomat: Power and Politics in the Digital Age

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.”