At the UN General Assembly, President Donald Trump said that the US 'rejects the ideology of globalism and embraces the doctrine of patriotism'. Jeenah Moon/Bloomberg
At the UN General Assembly, President Donald Trump said that the US 'rejects the ideology of globalism and embraces the doctrine of patriotism'. Jeenah Moon/Bloomberg

In spite of Donald Trump, the desire for US leadership on the international stage remains strong



Remember when we were promised that “the day of the dictator” was over? It was the early 1990s and President George HW Bush was in the White House. The Soviet Union had collapsed, the Cold War was over, and Germany was going through the process of reunification.

Elsewhere, Spain, Greece and Portugal had abandoned their authoritarian pasts and become fully fledged European Union democracies. In Latin America, formerly authoritarian regimes had also embraced democratic values.

By 1991, President Bush’s aides proudly boasted of a “unipolar world” with only one superpower − the United States. American capitalism had won the battle of ideas with Soviet communism. There was a “new world order”, we were told, in which international disputes would be settled without resorting to war. The writer Francis Fukuyama even suggested in a now famous essay that this victory of liberal democracy could represent the “End of History” as we knew it.

Few people − including Fukuyama himself − completely swallowed this crude triumphalism. But when I lived in Washington throughout the 1990s, it was certainly a time of unchallenged American power and influence. In culture, business and many sports, the US ruled. Its armed forces were so strong they more than balanced those of the next dozen military nations put together.

America was not always loved, but it was widely respected and sometimes feared. In those days, there was never any question that its president was “the most powerful man in the world”.

Now, the idea of American leadership has all but evaporated, but the desire for it remains strong in nations across the globe. This extraordinary phenomenon can be explained in two words: Donald Trump.

Around the world US leadership can survive if the president is disliked, even loathed. It cannot survive if the president is not trusted or respected. That loss of trust is striking. The authoritative Pew Research Center has conducted an enormous opinion survey of more than 26,000 respondents in 25 countries. When asked to rate their confidence in world leaders, Mr Trump polled last, behind the German Chancellor Angela Merkel, the French President Emmanuel Macron and even Russia's Vladimir Putin.

The survey’s respondents cited “widespread opposition” to the Trump administration’s policies and “a widely shared lack of confidence in his leadership”. They saw “American soft power waning” and fewer of them believed in the core values that Mr Trump stands for, claiming that the US no longer respects individual liberty as it did a decade ago.

There is no precedent for the democratically elected "leader of the free world" being less trusted than a former KGB colonel who has ruled Russia by sheer force of will for almost 20 years. Russia, for all Mr Putin's bluster, has a turbulent and underperforming economy, a much weaker military than the US and a terrible reputation for incompetent meddling in other countries' affairs, from the Baltics and Ukraine to the UK and Syria. And yet, Mr Putin still inspires more confidence worldwide than Mr Trump.

The good news for Americans is that even if only 27 per cent of those polled think well of its current leader, 50 per cent have a favourable view of the United States itself. Two-thirds of respondents want America to retain its role as the world’s most powerful nation, a feeling especially strong among neighbours of Russia and China.

However, huge majorities worldwide believe that, under Mr Trump, the US does far too little to address global problems and no longer considers the interests of its allies. The survey rates the UK and France as declining powers and American influence as stagnant. Tellingly, 70 per cent of respondents believe that the rising world power is China.

Taken as a whole, the Pew survey reveals that America has gone from being an indispensable ally to an unreliable one. Mr Trump, typically, may not care. He recently told the United Nations: “We reject the ideology of globalism and we embrace the doctrine of patriotism.” He withdrew from the Paris climate-change accords, frequently attacks international institutions including Nato, the UN and the EU, and sees nationalistic solutions to international problems. “America First” is both a slogan and a policy.

Two years after Mr Trump’s election in November 2016, real damage has been done. In Mexico, he has the lowest ratings recorded by Pew, with just 6 per cent of people having any confidence in him. Hardly surprising, then, that China is quietly making inroads in Uncle Sam’s back yard.

The Argentinian government has allowed China to set up a space-monitoring base in Patagonia. China is also developing significant relationships with Brazil and Chile. In the UK, The Times reported recently that Bolivia is buying Chinese aircraft and that Argentina and Peru have signed smaller deals. Jamaica, the Bahamas and Panama are also key focuses of Chinese businesses.

While Mr Trump’s presidency is bizarrely unpredictable and apparently dependent on his latest tweet, China’s great strength is predictability. In Peru a few years ago, a leading politician told me that doing business with China was easy because Beijing strikes a bargain and then delivers − whereas Washington’s deals often have strings attached.

It would be unwise to predict the eclipse of American power, just because one president has destroyed his country’s reputation. However, the truth is that nations hoping for help from a powerful ally may have to look elsewhere until Mr Trump leaves office, which could be any time in the next two to six years.

American presidents speak from what has been called the “bully pulpit”, able to weigh in with strength and authority on any issue. The ideas of Franklin Roosevelt, Ronald Reagan and Bill Clinton changed the world. Mr Trump’s ideas, his suspicion of international co-operation and his shameless attitude towards the truth have also inspired others around the world, but not in any positive way. From Sweden to the Philippines, the UK to Brazil, right-wing nationalists and populists feel this is their moment.

The legacy of Mr Trump therefore may be twofold: a continuing decline in confidence in American leadership and a rise in the politics of reactionary bluster.

In May 2014 – two years before Mr Trump took office – Foreign Policy magazine published a piece titled "Sorry, America, the New World Order is Dead". Vladimir Putin was named as one of the assassins. So far, so prescient. However, the writer still held out some hope for stability and pragmatism, asserting that "the United States, Europe, Japan, and China are the four great trading blocs, and they co-operate with each other because they know that if anyone reverts to protectionism, others will retaliate".

Now, however, even these dependable and mutually beneficial relationships have been torn apart, thanks to a bitter trade war between the United States and China. In pursuing this strategy, Mr Trump has created what we might call a new world disorder. Amid this chaos, it is clear that history not at an end, the day of the dictator is not over and that global American leadership, though much desired by many, is nowhere to be found.

Gavin Esler is a journalist, author and television presenter

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The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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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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Borussia Dortmund v Paderborn (11.30pm)

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Union Berlin v Borussia Monchengladbach (6.30pm)

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RB Leipzig v Cologne (9.30pm)

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Hoffenheim v Mainz (9pm)

 

 

 

 

 

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