Governments ought to provide parks, libraries and community and leisure centres to improve the lifestyles of citizens.
Governments ought to provide parks, libraries and community and leisure centres to improve the lifestyles of citizens.

Engage people to improve their lives



Gulf states enjoyed substantial economic development during the past two decades and have improved and expanded the overall delivery of government services. For example, the UAE was rated highly in the World Bank's annual World Governance Indicators report last year in terms of government effectiveness. But as development continues and the population expands, local governments will need to learn how to better provide community services and engage the people in their communities in doing so.

The success of GCC governments to date was in part a testimony to the region's visionary and paternalistic leadership. However, it was also a reflection of the GCC's stage of development. In their early years, some Gulf states understandably focused on basic needs of society such as physical infrastructure, schools and health facilities - investments that generated significant economic benefits and created jobs for their citizens.

The next wave of economic and social transformation will require even more from governments to improve the lives of their citizens: they must continue their commitment to national growth while also defining a new focus on local government services tailored to communities. Some GCC municipalities are already good at handling infrastructure such as local roads and public transport, sewerage, water, land use planning and development control.

But one area that remains lacking is community services. These provide cultural opportunities and recreational facilities that meet the needs of residents of all ages, abilities, incomes and interests. Although they vary between municipalities, they might include parks, sports and physical activity developments, arts, libraries and heritage services, events and festivals, community and leisure centres, local theatres, museums and beaches.

The importance of these services cannot be overstated. Providing a diverse, high-quality system of cultural and recreational facilities is a critical role for local government. Such activities support the quality of life for residents, make cities more appealing to them and help to attract and retain local businesses. In addition, quality recreational facilities and programmes help combat obesity and encourage active, healthy lifestyles.

Different countries have different models for providing community services. Western countries, for example, favour a mixed-economy model that combines public and commercial sources of income and relies on close links with public agencies, local firms and the local community. Local governments cannot successfully design such programmes in a vacuum. To deliver high-quality services, local governments should engage the community to determine what it needs.

Traditional forums in the GCC include the majlis, or "gathering places". However, this approach is steadily becoming more difficult to maintain as populations grow and government affairs become increasingly sophisticated. Furthermore, citizens' expectations are rapidly evolving as globalisation and the proliferation of digital media provide them with new ways to engage and interact. As such, local governments need to embrace modern approaches for interacting with the public.

They should first improve the flow of information to the public through a variety of means: fact sheets; town hall meetings; and online presences. Next, GCC municipalities may want to explore public consultation on key community projects and initiatives. Workshops and focus groups are excellent settings for these kinds of interactions; surveys are also effective when the population is fragmented. Call centres, which allow the general public to air their concerns, are another option.

Ultimately, local governments may decide to extend their community activities to outright collaboration, in which the public is a key contributor in the delivery of the services. For instance, residents may act as community volunteers or neighbourhood watchdogs. Local governments in the GCC have a major opportunity to improve the wellbeing of their people through the delivery of tailored community services. By strongly engaging the community in the design and delivery of these services, they can expect a ripple effect of benefits.

Samer Bohsali and Leila Hoteit are both principals with Booz and Company

Examples of excellent community services programmes from around the world can serve as models for the GCC. For instance, New Deal for Communities (NDC) is a UK scheme that puts communities at its heart, making engagement a key part of its structure and practices. The programme, led by the central government and delivered at the local level through municipalities, provides services in disadvantaged areas plagued by low educational attainment, poor health, high crime rates, poor job prospects and substandard housing. With a budget of about £2 billion (Dh10.94bn) intended to transform these communities over a 10-year period, NDC brings together key agencies such as the police and education and health authorities, in addition to non-governmental organisations, volunteers and community representatives. NDC partnerships with local communities ensure that the community's members have a voice. Each partnership is overseen and managed by a group of residents and agency representatives called the "partnership board", which makes the strategic decisions implemented by the NDC. The board is composed primarily of residents, and those residents not on the board have access to resident committees, focus groups, interviews and regular neighbourhood forums to give input on the planning, design and delivery of services and programmes. Based on this input, NCD partnerships develop projects in six key areas: education; culture and leisure; health; unemployment; housing and the physical environment; and crime. These have included: educational after-school clubs and adult education for skills training; park refurbishment; provision of basic medical equipment in community centres; and the development of a Neighbourhood Watch scheme. Such efforts have borne fruit; NDC areas have shown reductions in crime rates, greater academic achievement among students, increases in residents' satisfaction with their communities and improvements in the unemployment rate. Such an approach could be customised to address the GCC's unique challenges. The region has one of the highest rates of diabetes II in the world; community services programmes could help tackle the sedentary lifestyles and unhealthy diets that have exacerbated this problem with physical activities in parks and beaches, as well as education in community centres. Unemployment among nationals could be partly addressed by the provision of learning opportunities for adults in easily accessible, community-based facilities such as community centres and libraries. These facilities could also supplement the educational system by offering programmes to develop young people's skills. Finally, these programmes could help to bring social cohesion to ethnically diverse populations by offering events and activities in publicly accessible locations. * Samer Bohsali and Leila Hoteit

MATCH INFO

Manchester City 3 (Silva 8' &15, Foden 33')

Birmginahm City 0

Man of the match Bernado Silva (Manchester City)

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MEYDAN CARD

6.30pm Al Maktoum Challenge Round-1 Group One (PA) US$65,000 (Dirt) 1,600m

7.05pm Handicap (TB) $175,000 (Turf) 1,200m

7.40pm UAE 2000 Guineas Trial Conditions (TB) $100,000 (D) 1,600m

8.15pm Singspiel Stakes Group Two (TB) $250,000 (T) 1,800m

8.50pm Handicap (TB) $135,000 (T) 1,600m

9.25pm Al Maktoum Challenge Round-1 Group Two (TB) $350,000 (D) 1,600m

10pm Dubai Trophy Conditions (TB) $100,000 (T) 1,200m

10.35pm Handicap (TB) $135,000 (T) 1,600m

The National selections:

6.30pm AF Alwajel

7.05pm Ekhtiyaar

7.40pm First View

8.15pm Benbatl

8.50pm Zakouski

9.25pm: Kimbear

10pm: Chasing Dreams

10.35pm: Good Fortune

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.”