Three-month roadblock called off by Indian tribe



NEW DELHI // Hopes that a three-month economic blockade by two rival tribes in the insurgency-ridden state of Manipur could end appear doomed after one of the groups vowed to intensify its protests.

At the start of August, residents from the Sadar Hills, a region dominated by the Kuki tribe, began been blocking the two main motorways into the remote north-eastern state, causing shortages of food, petrol and medicines.

It was the latest stunt in a 40-year struggle to carve their own administrative district out of the Senapati district, which they said was dominated by the rival Naga tribe.

Many drivers who tried to slip through their barricades in recent weeks were stopped by armed militants and their lorries burnt.

Finally, on the eve of a visit by the Indian home minister, P Chidambaram, the state government caved in to their demands.

"We have decided to withdraw the blockade following assurance from the government to create a new district," the Sadar Hills District Demand Committee announced on Monday night, after several hours of negotiation with the chief minister.

No deadline had been set for creating the district but it would give the Kukis and other residents in the Sadar Hills more direct control over their budgets and local development funds.

They said these were currently being siphoned off by the Nagas in Senapati. The announcement brought a brief moment of hope across the country that the longest-running blockade in the state's history could finally be coming to an end.

But the Nagas have refused to accept the decision, saying they oppose "any attempt to divide our ancestral homeland".

They have been running their own counter-blockades on different parts of the same motorways in opposition to the new district and said they would now intensify their protests.

A full shutdown had been ordered in Naga-controlled districts over the weekend and leaders said they were looking for additional recruits to man blockades. "The state government was clearly under tremendous pressure to take a hasty decision due to the visit by the home minister," said Paul Leo, an adviser to the United Naga Council.

"We take great exception to this decision being made without our knowledge.

"There is a lot of anger and we will be intensifying our agitation from November 3."

Before the blockades, Manipur's capital received about 400 lorries carrying essential items every day, according to local media reports.

It currently receives between 300 and 400 per week and these have to travel with a heavy security escort.

The presence of dozens of militant groups in Manipur added a dangerous edge to the dispute.

In the 1990s, violent clashes between the Kukis and the Nagas left about 1,000 people dead and hundreds of homes destroyed.

Often, the insurgent groups have genuine demands for increased autonomy - even complete independence - from India.

But after decades of fighting, many have degenerated into little more than mafia-style extortion groups seeking to capitalise on the chaos.

Random terrorist attacks are a regular part of life in Manipur.

Last week, on the festival day of Diwali, two successive blasts in a crowded marketplace left seven shoppers injured.

No group had claimed responsibility for the attack.

"Everyone is happy that one of the groups has called off their blockade," said Babloo Loitongbam, of the Human Rights Alert, based in the capital of Imphal. "But we're apprehensive about what comes next."

He said the government could have resolved the dispute " within a few days" if they had gathered all the parties together for an open discussion. "But the government prefers to play each group off against the others," he said.

"Decisions are made behind closed doors and then forced down on the rest.

"If you don't provide people with a legitimate avenue to air their grievances then they will resort to extreme measures."

A government spokesman said discussions were ongoing with the United Naga Council in a bid to end their blockade and reopen transport routes.

It remains to be seen whether the government would actually keep its promise of granting the Sadar Hills district more independence.

"The government has issued these assurances several times in the past," said Jitan Yumnan, a human rights activist. "Without a definite timeline, there is no guarantee the government will stick to its promises."

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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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