Palestinian school girls in the West Bank city of Ramallah wave flags during a rally against President Barack Obama's address at the UN General Assembly yesterday. Mohamad Torokman / Reuters
Palestinian school girls in the West Bank city of Ramallah wave flags during a rally against President Barack Obama's address at the UN General Assembly yesterday. Mohamad Torokman / Reuters

Palestinians fear their ageing leaders lack any credibility



JERUSALEM // The ages of the Palestinian leaders in the West Bank speak volumes about the significance of their bid for full Palestinian membership in the United Nations.

Mahmoud Abbas, president of the Palestinian Authority, is 76. His top aides are close behind - Nabil Shaath is 73 and Yasser Abd Rabbo is 67.

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Along with Saeb Erekat, who clocks in at a relatively spry 56, they tied their political fortunes to Yasser Arafat and the 1993 Oslo peace accords.

These ageing political figures reaped the success - and mostly failure - of that peace process. With their plan to gain full UN membership, they are keen to demonstrate their relevance and revive their waning popularity among ordinary Palestinians.

The attempt may be ill-conceived, even desperate, Palestinians say. "It's one of their last cards," said Majid Shihade, a professor of international relations at Birzeit University's Abu-Lughod Institute for International Studies.

"They have exhausted their credibility and it's a way to show that the leadership is still speaking on behalf of all Palestinians."

This alleged lack of credibility stems from two decades of fruitless negotiations that most Palestinians now cynically regard as mere cover for Israeli governments to flood the West Bank and East Jerusalem with Jewish settlers.

With Mr Abbas and other Palestinian leaders angry at US President Barack Obama for failing to offer a credible alternative to the embarrassing collapse of direct talks that he started with Israel's staunchly pro-settler government last September, the UN move is seen as creating some political breathing room.

But few Palestinians expect it to bring tangible change. Mr Abbas himself has cautioned that elevated UN membership is not about punishing Israel but, rather, hastening a return to peace negotiations.

Mkhaimar Abusada, a political-science professor at Gaza's Al Azhar University, described the UN bid as an attempt by Mr Abbas and the Palestine Liberation Organisation (PLO), which he chairs, at ensuring a legacy.

"It seems to me Abu Mazen has begun laying the groundwork for his successors and delineating what are the new Palestinian red lines that should not be compromised on," he said, using Mr Abbas' nickname.

Those red lines largely consist of a future Palestinian state based on the borders existing before the 1967 Arab-Israeli war with East Jerusalem as the capital, he explained.

"If Abu Mazen - who is considered a moderate Palestinian who has been criticised by Hamas and Al Jazeera as a traitor - is remembered as standing firm and carving out these as the red lines, it doesn't seem that any future Palestinian leadership can make compromise beyond them," Mr Abusada said.

Grappling with Mr Abbas' legacy may happen sooner than expected. For years, he has been rumoured to be on the verge of retiring, and many suspect he may now be setting the stage for his exit.

After his departure, however, young Palestinians may not be able - or willing - to pick up where he leaves off.

Analysts say that there is a fundamental shift in Palestinian public opinion away from the current leadership's preoccupation with negotiations. With their UN bid, Mr Abbas and his entourage appear to have finally recognised these changing political winds, but the realisation may have come far too late to alter their place in history in any substantial way.

"What the people are interested in is justice, freedom and equality, not negotiations and what the Americans and the Europeans think," said Mr Shihade of Birzeit University.

People will increasingly judge the leadership on whether it ends Israel's occupation and "whether they can legitimately represent a population that's no longer interested in the old ways, such as negotiations," he said.

For Palestinians such as Shirin Abu Fanouneh, 25, of Ramallah, the problem is one of priorities.

She and young Palestinians want an end to the division between the PA-ruled West Bank and the Hamas-ruled Gaza Strip. They also demand elections, which have been repeatedly delayed by Mr Abbas since Hamas won parliamentary balloting in 2006 and defeated his Fatah party in a series of military clashes in the Strip a year later.

Some do not even oppose living under Israeli rule, as long as they receive equal rights. They believe non-violent tactics can make Israel's occupation too costly to sustain

"They've gone to the UN, but instead of consulting us, they are only consulting with America and the Europe," Ms Fanouneh said.

This attitude shift has largely resulted from the "old guard" Palestinian leadership that has clung to power for decades and failed to cultivate younger leaders, said Diana Buttu, a fellow at Harvard University's John F Kennedy School of Government and a former PLO legal adviser.

"A real problem for Fatah is that they haven't managed to get a younger support base," she said. "And even if they have managed that, they've never managed to rise up and take on midlevel and senior level positions within Fatah."

Fatah's central committee, which Mr Abbas chairs, is populated by men in their sixties and seventies. The youngest, 49-year-old Mohammed Dahlan, was expelled earlier this year.

All this may create an even more gridlocked peace process long after the UN initiative because, Ms Buttu said, the US and Israel will have to face "a much more hard-line [Palestinian] populace than they have in the past".

"That's why there is this fear in Israel that on the one hand, time is running out," she said. "But on the other, Israel is using the current leadership to extract as much as it can" in terms of concessions.

KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Wes%20Ball%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Owen%20Teague%2C%20Freya%20Allen%2C%20Kevin%20Durand%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3.5%2F5%3C%2Fp%3E%0A
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The language of diplomacy in 1853

Treaty of Peace in Perpetuity Agreed Upon by the Chiefs of the Arabian Coast on Behalf of Themselves, Their Heirs and Successors Under the Mediation of the Resident of the Persian Gulf, 1853
(This treaty gave the region the name “Trucial States”.)


We, whose seals are hereunto affixed, Sheikh Sultan bin Suggar, Chief of Rassool-Kheimah, Sheikh Saeed bin Tahnoon, Chief of Aboo Dhebbee, Sheikh Saeed bin Buyte, Chief of Debay, Sheikh Hamid bin Rashed, Chief of Ejman, Sheikh Abdoola bin Rashed, Chief of Umm-ool-Keiweyn, having experienced for a series of years the benefits and advantages resulting from a maritime truce contracted amongst ourselves under the mediation of the Resident in the Persian Gulf and renewed from time to time up to the present period, and being fully impressed, therefore, with a sense of evil consequence formerly arising, from the prosecution of our feuds at sea, whereby our subjects and dependants were prevented from carrying on the pearl fishery in security, and were exposed to interruption and molestation when passing on their lawful occasions, accordingly, we, as aforesaid have determined, for ourselves, our heirs and successors, to conclude together a lasting and inviolable peace from this time forth in perpetuity.

Taken from Britain and Saudi Arabia, 1925-1939: the Imperial Oasis, by Clive Leatherdale

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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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