Even monarchs don’t have job security anymore

Even monarchs don’t have job security anymore

June 3, 2014 – 4:04PM

Leonid Bershidsky

King Juan Carlos of Spain should have no regrets as he steps down from the throne: His abdication reflects the same values that have made him a great monarch.

Like it or not, lifetime tenure is no longer standard practice, even for royalty. Juan Carlos, 76, is the third septuagenarian monarch in the last 18 months to abdicate, after Queen Beatrix of the Netherlands and King Albert II of Belgium. And that’s not counting Pope Benedict XVI. With the media exposing their frailties and foibles, and with polls tracking their popularity, monarchs have become as accountable as any politician.

There is a certain symmetry to Juan Carlos’ decision to step aside for his son, Crown Prince Felipe. His own father, Don Juan de Borbon y Borbon, had to give up his ambitions to let Juan Carlos ascend to the throne. Back then, in 1975, the royals were bowing to the will of the dictator Francisco Franco, not the Spanish people.

After playing an ambiguous role during World War II, Franco sought the legitimacy of a strong connection with Spain’s ousted royal dynasty. In 1948, he agreed with Don Juan that Prince Juan Carlos would be educated in Spain and trained for leadership by Franco himself, who designed the study program, including training in the army, naval and air force academies. In 1969, he declared Juan Carlos his successor as head of state.

Advertisement

Juan Carlos worked for years to make his father understand that following Franco’s wishes was necessary. The dictator wanted to die in office, and he needed to make sure his successor would be loyal. Juan Carlos waited and did his best to demonstrate loyalty. At the time of his ascension in 1975, he was probably Europe’s most powerful monarch. He appointed and removed the prime minister and the parliament speaker, had veto power over laws and could issue legal decrees; he even had supreme command over all the branches of the military.

The new king’s instincts, though, were much more democratic than Franco’s. He began gradually, carefully dismantling the dictatorial order. His systematic, moderate approach paid off in February 1981, when his popularity with the military helped him stifle a right-wing coup.

Crown Prince Felipe, then only 13, was next to his father as he made calls to military commanders to ensure their support. The king’s approval rating approached 90 per cent after the coup was defeated. Ultimately, he handed over most of his powers, retaining a largely symbolic status as a mediator between the branches of power.

“It was the monarchy which offered a decisive contribution in establishing and consolidating democracy,” German historian Walther Bernecker wrote of Juan Carlos’ legacy.

Having played that role, King Juan Carlos could, and did, enjoy the royal life.

The king’s unfortunate elephant hunt in 2012, which cost double the annual salary of the average Spaniard and revealed his close friendship with a German woman 28 years his junior, couldn’t but grate on Spaniards’ nerves after the financial crisis plunged the country into one of its worst depressions in history.

The scandal involving Princess Cristina and her husband, the handball player turned influence peddler Inaki Urdangarin, also reflected unfavourably on the royal family. Cristina was actually named as a suspect in a criminal case involving tax fraud, a disgrace to the king. As of January, 62 per cent of Spaniards wanted the king to abdicate.

Juan Carlos was lucky compared to Albert of Belgium. That monarch abdicated in the midst of a paternity scandal involving the artist Delphine Boel, who tried to get a court order forcing him to undergo genetic testing.

The realities of modern monarchies are nothing like  A Game of Thrones: There’s no point for kings and queens to hang on to power when people are tired of them. King Juan Carlos may have gotten attached to his title in his 39 years on the throne, but he is nothing if not a responsible statesman in a country he helped turn into a democracy.  He doesn’t have to die on the job like the dictator he succeeded.

There are plenty of dictators still left in the world whose countries would benefit if they followed Juan Carlos’ example.

Unknown's avatarAbout bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

Leave a comment