Bono didn't name any countries responsible for threatening global institutions during these "troubled times," his words appeared clearly aimed at US President Donald Trump Reuters
Bono didn't name any countries responsible for threatening global institutions during these "troubled times," his words appeared clearly aimed at US President Donald Trump Reuters

Bono warns that existence of UN, EU and NATO are threatened



Irish rock star Bono warned on Monday that the United Nations and other international institutions including the European Union and NATO are under threat — and nations must work together to ensure their continued existence.

The Dublin-born U2 singer and activist gave a sobering speech to several hundred UN diplomats and staff at an event launching Ireland's candidacy for a seat on the powerful Security Council in 2021-22 saying "you can count on Ireland to do its part in that work."

While Bono didn't name any countries responsible for threatening global institutions during these "troubled times," his words appeared clearly aimed at US President Donald Trump, who has criticised the EU and NATO. The American leader has also pulled out of the Paris climate agreement which the singer cited, and taken aim at the World Trade Organization with new US tariffs, an institution Bono said is also under threat.

Speaking of the United Nations, Bono said, "I love that it exists, and I'll tell you, I don't take for granted that it exists, or that it will continue to exist because let's be honest, we live in a time when institutions as vital to human progress as the United Nations are under attack."

He then said the EU, NATO and the Group of Seven major industrialised nations have also been threatened.

"And not just these institutions but what they stand for — an international order based on shared values and shared rules, an international order that is facing the greatest test in its 70-year history," Bono said. "Not just these institutions but what they've achieved is at risk."

On Sunday night, the Irish government invited ambassadors from the 192 other UN member nations to Bono's concert at Madison Square Garden as part of its launch for a council seat.

Bono, who is also a human rights and humanitarian activist and philanthropist, joked on Monday evening that it was "unusual having a load of ambassadors jumping up and down at a rock and roll show." He told the diplomats: "at least you weren't shouting at each other, so that was good."

But his speech was both his sobering assessment of the state of the world and an appeal to the diplomats to back Ireland for a council seat.

Ireland is expected to be in a three-way race against Canada and Norway for two seats reserved for Western nations on the Security Council. Elections to fill the seats for a two-year term will be held in June 2020.

Bono said Ireland's experience of colonialism, conflict, famine, mass migration "give us kind of a hard-earned expertise in these problems, and empathy and I hope humility."

"If you look at the agenda of what the Security Council will be addressing in the coming years, doesn't it look a lot like us?" he asked.

Bono said he just came back from Canada and praised Prime Minister Justin Trudeau as "a remarkable leader who's put together the most diverse Cabinet on the planet." "That Canada is nice is the worst thing I can say about them," he said.

As for Norway, he said, "who could ask for a better neighbour or committed peacemaker?" "Here's the worst thing I can say about them, they're tall. They're too tall," he said.

Bono, who is not tall, joked, "we bear no nation — even tall ones — any ill will."

But he said the world needs Ireland's storytelling talents and its ability to compromise "because that's how you achieve peace."

Irish Prime Minister Leo Varadkar formally launched Ireland's campaign for a council seat at the reception on the UN's lawn that included Irish dancing and music — but no singing from Bono.

"We see ourselves as an island at the centre of the world," Varadkar said. "And we're deeply aware that in an interdependent world, the great challenges of our time do not know international boundaries."

Varadkar said Ireland's independence in 1921 out of war and violence, and its UN membership since 1955 have led the country to be a promoter of freedom and defender of human rights.

"The United Nations is the conscience of our humanity," he said. "In these troubled and uncertain times, as a global island, we want to play our part in defending, supporting and promoting its values."

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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.”