Tunisian supporters of  Nidaa Tounes at a rally to support the party's leader Beji Caid Essebsi. (Fethi Belaid / AFP)
Tunisian supporters of Nidaa Tounes at a rally to support the party's leader Beji Caid Essebsi. (Fethi Belaid / AFP)

So, what kind of coalition should Tunisia gather?



Last week’s parliamentary elections in Tunisia were widely hailed as a breakthrough in the quest for democracy in post-dictatorship Arab societies. Despite gloomy predictions, voter turnout was nearly 70 per cent. The voting was free, fair and devoid of violence and intimidation. And, in a first in the Arab world, the Islamist Ennahda party peacefully accepted defeat at the polls and congratulated Beji Caid Essebsi, leader of Nidaa Tounes, whose party won 85 seats in the People’s Assembly compared to Ennahda’s 69.

The received wisdom now is that it is imperative for Tunisia’s future that the two main parties come together and form a national unity government. But there are significant arguments both for and against a Nidaa Tounes-Ennahda coalition.

Arguments for such a coalition government uniting the two main Tunisian parties are powerful, but not overwhelming. It is said that if Nidaa Tounes were to form a government without the participation of Ennahda, too many Tunisians would be “excluded” from government. Ennahda consolidated a powerful presence in the south of the country. It’s then argued that a coalition without Ennahda would virtually disenfranchise the party’s significant national support base, and, especially, the south as a region.

But a parliamentary system doesn’t imply that the party that comes in second has an automatic right to be included in the formation of the government. Rather it is the largest party that has a right to put together a coalition of its choosing, and live with the consequences.

Neither the Ennahda constituency nor the south would be disenfranchised at all. Both would be represented in parliament, but in opposition rather than in government. This is participation in an important and honourable role, since there must and will always be an opposition.

It’s also argued that Nidaa Tounes would need Ennahda support to carry out the necessary reforms that Tunisia will require to stabilise both its economy and its security requirements.

Just because Ennahda might find itself outside the coalition doesn’t mean it has the right, or even the incentive, to sabotage essential national requirements. If it did, it would be acting as a disloyal opposition.

There’s every reason for Ennahda, or any other parliamentary party, to stand strongly by the principles of its manifesto and the wishes of its constituents. But would that include blocking necessary economic and security sector measures that are in the national interest of all Tunisians? To assume so is to think the worst of both Ennahda and the parliamentary system.

The urgency of the security situation was brought home by an attack on a bus carrying military personnel and their families near the Algerian border, killing four and injuring 11. It’s unjust to assume that, because they are not included in a coalition arrangement, Ennahda or any other Tunisian party wouldn’t want this kind of national security crisis to be successfully dealt with.

Besides, the alternatives facing Nidaa Tounes aren’t particularly more palatable than Ennahda. The Free Patriotic Union and the Popular Front, two other potential coalition partners, are unlikely to welcome a coalition with Nidaa Tounes, which they openly describe as the rebirth of the Constitutional Democratic Rally (RCD) – the party of the former dictatorships. Ennahda, by contrast, has gone out of its way to welcome the prospect of a coalition. And without Ennahda, Nidaa Tounes would need either the FPU or the PF to gain a majority.

But would Ennahda really want to be part of a coalition with Nidaa Tounes? They say they do, but these assertions haven’t been tested yet in negotiations. There’s every reason they might just as easily want to step back and watch Nidaa Tounes struggle with the difficult decisions, and likely failures, that lie ahead – especially if they have inoculated themselves from charges of cynicism or disloyalty by feigning great enthusiasm for coalition government before deliberately making it impossible.

And as for Nidaa Tounes, their eyes are squarely on the upcoming November 23 presidential election, in which their leader, Mr Essebsi, is considered the front-runner. However, in early September Ennahda announced it wouldn’t field a candidate for the presidency. But at that time the Islamists also said they were confident of a bigger victory in parliamentary elections than they won in 2011.

As a practical and legal matter, it may well be too late for Ennahda to change its mind, but having reluctantly agreed to a mixed presidential and parliamentary system – and having been defeated in parliamentary elections – the calculations of the party must be undergoing some rapid reconsideration. One serious consideration is that a spell in opposition could afford Ennahda a chance to reconsider its priorities, and possibly to formalise a long-developing split between factions that want to focus on preaching and other religious work exclusively and those that are committed to further engagement with Tunisia’s evolving new political system.

It could well be in the best interests of everyone, for the country’s two largest political parties to form a coalition government. But other options are legally and politically viable, for both the elections winners and losers. And Tunisia’s democracy has to be able to withstand the normal, orderly competition of parties in a parliament that has no majority party and that will therefore require a coming together of strange bedfellows of one kind or another.

Hussein Ibish is a senior fellow at the American Task Force on ­Palestine

Twitter: @Ibishblog

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

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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.”

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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