DAMASCUS // The first ever mission to Syria by a UN special investigator on human rights was completed yesterday, resulting in a preliminary report that criticised the international community and the Syrian authorities.
Olivier De Schutter, a UN special rapporteur from the Human Rights Council, spent 10 days visiting parts of the country, including the drought-ravaged eastern Jazeera region, in the course of carrying out a probe into food availability.
What made Mr De Schutter's mission more remarkable is that it was instigated at the request of the Syrian authorities, under so-called special procedures of the UN's Human Rights Council.
Syria has been heavily criticised for its human-rights record by campaign groups and the international community. It previously refused to accept international scrutiny on the matter.
"Visits have to be with the consent of the government so I am dependent on the invitations I receive," Mr De Schutter said during a press conference in which he issued a preliminary report of his findings. "Usually I request to be invited. In this case, Syria spontaneously requested I do a mission."
He described the level of cooperation from the Syrian authorities as "very high, excellent" and said it was a sign of "openness" that he was allowed to carry out his work.
"This is very important because it is the first time Syria is receiving a special procedure from the human-rights council," he said.
"And it is extremely encouraging, the sign Syria is giving by being so open and transparent in its co-operation with the human-rights council."
In reference to his report, Mr De Schutter spoke candidly about a series of sensitive issues, including Syria's Kurdish minority, the treatment of more than 150,000 Iraqi refugees and rising poverty as Damascus pushes through economic reforms.
About 300,000 members of Syria's Kurdish population have been refused Syrian citizenship following a census that took place more than 40 years ago, which concluded they were foreigners.
As a result they struggle to access government services and are unable to travel outside of the country. The UN report said stateless Kurds suffered "discrimination" and were denied their full range of human rights.
"All Syrians should be treated alike and for this very reason I think we should frankly face the past history and reexamine the situation of those who, in 1962 as a result of the census, have been unjustifiably denied their Syrian nationality although they were not citizens from any other nation," Mr De Schutter said.
His recommendation to the Syrian authorities was that "nothing short from full attribution to full citizenship rights is required".
While commending Syria on its open-door policy to Iraqi refugees, Mr De Schutter urged the government to allow them the right to work.
There are about 164,000 Iraqi refugees registered with the UN in Syria and, while officially not permitted to take jobs, many do illegally.
That leaves them prone to exploitation and, because they are paid lower wages than Syrians, undercuts the local labour market.
Among his most notable findings was a "very conservative" estimate that between two to three million Syrians are now living in extreme poverty. The last official estimate, made by the UN in 2004, put the number at 2 million but there have since been four consecutive years of drought.
Despite that, Syrian officials have denied poverty is on the increase.
Outlining the severity of the situation faced by residents of Syria's eastern Jazeera region - the governorates of Raqqa, Dier Ezzor and Hasika - Mr De Schutter said farmers had seen their crops wiped out but were unable to work the land and replant.
"How can you sow your seeds when your children are starving," he said.
The UN special rapporteur was scathing in comments directed at the international community, which he said had failed to provide financial aid to the drought-hit areas, ignoring urgent UN appeals. Only 34 per cent of the total aid requested has been raised, UN figures show.
"In times of emergency, when lives may be irremediably broken, weeks cannot be lost in seeking assistance of donors," Mr De Schutter's preliminary report noted.
Calling the situation "unacceptable" Mr De Schutter said aid had been politicised, with donors neglecting the plight of starving Syrians because of international political disagreements.
He did however praise the Syrian government over various drought and poverty alleviation programmes it has been implementing.
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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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