Mawjuda begs on a street in Kabul with Nazar and Parmena, who she said were her children.
Mawjuda begs on a street in Kabul with Nazar and Parmena, who she said were her children.

Critics flay plans to ban begging



KABUL // Government plans to remove all beggars from Afghanistan's streets have raised concerns that some families will be unable to survive if the move is followed through. A statement issued by the president's office this month announced the ban, saying it was being introduced to "respect human dignity" and "ensure social order". Under the scheme, those beggars deemed genuinely poor will be sent to orphanages or shelters, where they will be offered the chance of taking educational and vocational courses with the potential for future employment. Anyone regarded as faking their poverty could be arrested.

However, critics have warned that the plan is unrealistic and impossible to enforce without having an adverse effect on the most destitute. From behind her burqa, Mawjuda said she was 20 and had been begging since the age of 16 or 17. She sounded barely older than the boy and girl sitting in the dirt with her, who she claimed were her son and daughter. "How can we survive if the government stops us begging in the street? We don't like doing this and if they give us food and land, then we will stop," she said, adding that she lives in a tent.

Although the exact number of beggars in Afghanistan is not known, they are a common sight in the capital. Most are usually kids, disabled, women or the elderly. The government is adamant that the ban is designed to help all concerned. As well as providing work opportunities to the poor, it hopes to reduce crime and clean up urban areas including Kabul. According to one senior official tasked with enforcing the order, action was needed sooner rather than later.

"Day by day the beggars are increasingly disturbing people in the street," said Wasil Noor Muhmand, deputy minister at the ministry of labour, social affairs, martyrs and disabled. Of particular interest to the government are those it believes are fabricating their hardship. These include women who can occasionally be found cradling what seem to be injured babies swaddled in bloodied bandages. On closer inspection, the wounds are often phoney.

"We have three types of beggars in Afghanistan, especially in Kabul," Mr Muhmand said. "First, some of them are very weak people responsible for the income of their families. Second, some are doing it for business - begging is the skill they use to earn an income. Third are those beggars who are made to do it." The government will spend three months explaining the plan to the general public in an effort to advertise precisely what is being done. Yet given the scale of the problem and the litany of crises Afghanistan is struggling to deal with, few believe any of this will have the desired impact.

Mohammed Yousef is the director of ASCHIANA, a non-governmental organisation that helps street kids suffering from the consequences of war and poverty. He said the initiative was a good idea in principle "but we should also think about the reality and in reality it will not be possible". According to Mr Yousef, there are between 60,000 and 70,000 street children working in Kabul alone. Selling everything from chewing gum to newspapers, or shining shoes and cleaning car windows, they are not classed as beggars even though their income is very little.

National unemployment is also astronomically high, with some estimates putting it at about the 50 per cent mark. Meanwhile, a UK think tank recently warned that winter food shortages represent a greater threat to international development in Afghanistan than the insurgency. In the west of Kabul city, Halima was begging with her four-year-old son, Sabir. Her husband begs in another part of town and it is, she said, the only way they can survive.

"We don't have anything to eat, we don't have money, we don't have a place to stay. Even this morning I didn't have breakfast," the mother-of-three said. "What about our children? If the government stops us and doesn't help, we will just come back." @Email:csands@thenational.ae

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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