Algerian students continue their weekly protests in Algiers to demand the overthrow of the "system" and trials for members of the ousted president's inner circle. The placard reads in French "We are almost there". AFP 
Algerian students continue their weekly protests in Algiers to demand the overthrow of the "system" and trials for members of the ousted president's inner circle. The placard reads in French "We are aShow more

Transitions of power do not have to mean wholesale purges of government



A successful and peaceful transition of power in any country is a sign of its political strength and internal security. In a monarchy, that transition is based on lineage and hierarchy. The dignified abdication of Emperor Akihito of Japan this week and the handing of the Chrysanthemum Throne to his son, now Emperor Naruhito, served as a reminder of the importance of a well-planned transition.

The same goes for monarchies in the Arab world, even though monarchs here wield much more power. There is, however, a marked difference in Arab republics, which have historically struggled with peaceful transitions.

In theory, republics rely on elections to administer a transition of power at regular intervals. However, in the Arab world, they have overwhelmingly led to one-man rule. In countries such as Iraq, Egypt and Libya, military coups in the second half of the 20th century led to the end of monarchies and the installation of republics. Yet these republics did not develop a mature mechanism to allow the transfer of power.

Instead, the norm became that of lifetime rule for the president, unless a coup deposed him – and, with no woman holding the position of president or prime minister anywhere in the region, it has always been “him”.

As regimes fall, the question that arises is how far must change go? The removal of a head of state and those closest to him signals a change in leadership, yet often the calls for change are wider. If the president represents a political party, then members of that party become complicit in the eyes of their opponents.

When the regime of the Iraqi president Saddam Hussein was deposed in 2003, the first act of the US-led Coalition Provisional Authority was not only to outlaw the Baath Party, but to remove all its members from public office. As a party that ruled the country for 35 years and mandated membership for anyone seeking a senior role in public life, including as a university professor or journalist in state-owned media, the Baath party had a variety of members. Some were ideologically driven, others were opportunists and others still joined out of fear.

De-Baathification quickly became a convenient tool to attack adversaries, as political parties excluded elements of the previous regime from all walks of life. The gutting of most ministries and professional circles in the country led to a weakening of Iraq’s institutions and of the government’s capacity to carry out the most basic public-service functions.

Meanwhile, Saddam Hussein faced trial and was executed swiftly, amid questions about the integrity of the court. There is no question of his culpability in numerous crimes, yet his trial was flawed, leading to a missed opportunity to serve justice.

A contrary example is that of Tunisia, which chose to keep most public-sector workers in place after deposing President Zine El Abidine Ben Ali in 2011. While Mr Ben Ali was exiled to Saudi Arabia, he and his wife were convicted in absentia of corruption and sentenced to 35 years in prison. Senior members of the ruling elite either fled Tunisia or faced trial, but the rank-and-file members of Mr Ben Ali's government and the public sector kept their jobs, ensuring a much smoother transition.

As Sudan and Algeria become the latest Arab nations to deal with sudden changes of leadership, similar questions about the breadth of change arise.

News of the arrest of Said Bouteflika, the youngest brother of the former Algerian President Abdelaziz Bouteflika and two former intelligence chiefs is significant. Said Bouteflika was a symbol of nepotism in Algeria and was responsible for much of the mismanagement of the country in the years since his brother’s ill health. However, many elements of the Bouteflika regime have stayed in place as the country grapples with its next steps.

Similarly, in Sudan, the military council ruling the country at this time of transition comprises elements of former President Omar Al Bashir's regime. Protesters in both countries are demanding a quicker pace of change and the removal of all elements associated with the previous two regimes. Yet, it is those very people who know how to steer their countries onto a new path and how to limit any disruption that may ensue.

While protesters may fear the lack of widespread change in their country should those responsible for how it has previously been run not be ousted, the gutting of state institutions can only lead to upheaval. Fundamentally, what is needed is institutional reform, with laws that stop abuses of power and determine how countries can be ruled equitably.

With decades of experience around the world, best practices of transition and transitional justice do exist. Yet, no one model fits all countries. While accountability is vital, the summary dismissal of thousands of public-sector workers leads only to disorder, resentment and the inability to implement real change.

Requiring victims to forgive a system that failed them is a big but necessary ask. Acknowledging crimes and mismanagement is also vital if a nation is to move forward. The next months for Sudan and Algeria will require learning the lessons of those republics that have gone through peaceful transitions, even if this means that justice is not immediately served.

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Kathryn Hawkes of House of Hawkes on being a good guest (because we’ve all had bad ones)

  • Arrive with a thank you gift, or make sure you have one for your host by the time you leave. 
  • Offer to buy groceries, cook them a meal or take your hosts out for dinner.
  • Help out around the house.
  • Entertain yourself so that your hosts don’t feel that they constantly need to.
  • Leave no trace of your stay – if you’ve borrowed a book, return it to where you found it.
  • Offer to strip the bed before you go.
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THE BIO: Martin Van Almsick

Hometown: Cologne, Germany

Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)

Favourite dessert: Umm Ali with dark camel milk chocolate flakes

Favourite hobby: Football

Breakfast routine: a tall glass of camel milk

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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.”

The Birkin bag is made by Hermès. 
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.