AlUla Conference for Emerging Market Economies
The AlUla Conference for Emerging Market Economies, a premier annual event, brings together key players in the global economic landscape. This conference, jointly organized by the Ministry of Finance of Saudi Arabia and the IMF Regional Office in Riyadh, provides a platform for in-depth discussions on critical economic issues affecting emerging markets.
A Catalyst for Inclusive Growth and Resilience
Held in the historic city of AlUla, Saudi Arabia, the conference attracts a distinguished audience comprising finance ministers, central bank governors, policymakers, leaders from the public and private sectors, representatives from international institutions, and academics.
Through interactive sessions and insightful panel discussions, the conference aims to foster collaboration and knowledge sharing on domestic, regional, and global economic developments. The ultimate goal is to explore innovative policies and reforms that can stimulate inclusive prosperity and strengthen the resilience of emerging economies in an increasingly complex world.
Agenda Highlights
Day 1: February 16, 2025
The inaugural day commences with opening remarks by H.E. Mohammed Al-Jadaan, the Minister of Finance of Saudi arabia, and Kristalina Georgieva, the Managing Director of the IMF.
“This conference represents a crucial platform for fostering dialogue and collaboration among key stakeholders in the global economic arena.” – Kristalina Georgieva,Managing Director,IMF
Following the opening remarks,H.E. Pan Gongsheng, Governor of the People’s Bank of China, delivers the keynote address. His lecture focuses on global economic trends and their implications for emerging markets and developing economies (EMDEs), emphasizing the vital role of international cooperation in navigating these challenges.
The subsequent panel discussion, “Emerging Markets: Policy Challenges Amid Structural Shifts in the World Economy,” delves into the unique policy dilemmas faced by EMDEs in the context of heightened uncertainty and a rapidly evolving global economic landscape.
This session features a distinguished panel of experts, including H.E. Olayemi Cardoso, Governor of the Central Bank of Nigeria, José De Gregorio, Dean of the School of Economics and Business at the university of Chile, H.E. Ali bin Ahmed Al Kuwari, Minister of Finance of Qatar, and jin Liqun, President of the Asian Infrastructure Investment bank.
The day continues with a focused session on the pressing issue of high debt and limited fiscal space, examining the challenges of fiscal consolidation and exploring multilateral solutions for debt restructuring.
Looking Ahead
The AlUla Conference for Emerging Market Economies serves as a crucial forum for shaping economic policies and fostering international collaboration in the pursuit of sustainable and inclusive growth. By bringing together diverse perspectives and fostering open dialogue, the conference plays a vital role in addressing the complex challenges facing emerging economies in an interconnected world.
As global economic conditions continue to evolve, the insights and recommendations emerging from this conference will be instrumental in guiding policymakers and stakeholders towards a more prosperous and resilient future.
Navigating a Changing Global Landscape: Challenges and Opportunities for Emerging Markets
Emerging Markets and Developing Economies (EMDEs) face a complex and volatile global landscape. Geopolitical tensions, rising inflation, and shifting monetary policies in advanced economies present important challenges. However, these same dynamics also create opportunities for emdes to adapt, innovate, and strengthen their resilience. A recent IMF conference brought together leading policymakers, economists, and experts to delve into these issues and explore potential solutions.
Day 1: February 16, 2025
The first day of the conference focused on the evolving macroeconomic landscape and it’s impact on financial stability.
Monetary Policy and Capital Flows Amid Elevated Uncertainty
A key session examined the challenges facing EMDEs in navigating the uncertain global monetary environment. Participants discussed the implications of spillovers from monetary policy decisions made in advanced economies, and also the potential for swings in global market sentiment to impact inflation, neutral interest rates, and capital flows. Hélène Rey, Professor at London Business School, presented research highlighting the interconnectedness of global financial markets and the potential risks posed by persistent uncertainty.
“The changing economic landscape requires a nuanced approach to monetary policy,” said pierre-Olivier gourinchas, Economic Counsellor and Director of the Research Department at the IMF. “EMDEs need to carefully consider the potential impact of global monetary policy on their domestic economies and develop strategies to mitigate any negative consequences.”
Resilience of the Financial System in Emerging Markets
Another panel explored the resilience of financial systems in EMDEs amidst various global challenges. Tobias Adrian, Director of the IMF’s Monetary and Capital Markets Department, moderated a discussion among central bank governors and financial regulators from across the region. The panelists highlighted the importance of strong financial supervision, sound regulatory frameworks, and proactive risk management strategies in safeguarding financial stability.
“The financial system in EMDEs has made significant progress in recent years,but it remains vulnerable to external shocks,” noted Sheikh Bandar bin Mohammed bin Saoud Al Thani,Governor of the Qatar Central Bank. “Continued efforts to strengthen financial regulations, enhance supervision, and build resilience are essential to protect the financial system from potential disruptions.”
Day 2: February 17, 2025
The second day of the conference focused on navigating trade tensions and promoting inclusive growth.
Navigating Trade Tensions and Uncertainties
Amidst rising geopolitical tensions and concerns about economic fragmentation, a panel discussion examined the impact on trade and investment flows in EMDEs. Indermit Gill, Chief Economist at the World Bank group, moderated a conversation with finance ministers from Nigeria, Morocco, and Ukraine. The panelists explored strategies for EMDEs to mitigate risks, enhance trade resilience, and promote greater economic integration.
“The current global trade environment presents both challenges and opportunities for EMDEs,” said H.E. Sergii Marchenko, Minister of finance of Ukraine. ”We need to work together to foster a more inclusive and resilient global trade system that benefits all countries.”
Productivity in EMDEs: Challenges and Opportunities
A final session addressed the critical issue of productivity growth in EMDEs. The IMF’s World economic Outlook projects a significant slowdown in medium-term growth prospects for EMDEs compared to pre-pandemic levels.The panel explored various factors hindering productivity growth,including infrastructure constraints,limited access to technology,and skills shortages.Experts discussed policy recommendations to foster a more dynamic and innovative business environment, enhance human capital growth, and create a more conducive environment for investment.
The IMF conference emphasized the need for EMDEs to embrace a proactive and strategic approach to navigate the complex global landscape. By strengthening financial systems, fostering trade resilience, and promoting inclusive growth, EMDEs can build a more robust and prosperous future.
Navigating Economic headwinds: Challenges and Opportunities for Emerging Markets
The global economic landscape presents both challenges and opportunities for emerging market and developing economies (EMDEs). A recent conference in AlUla, Saudi Arabia, brought together key policymakers, economists, and experts to discuss these issues and explore potential pathways for building resilience and fostering sustainable growth.
Attended by prominent figures from across the globe, the conference focused on key themes such as the impact of the global economic slowdown, the rise of artificial intelligence, and the need for robust policy responses to navigate current global disruptions.
Global Shocks and Income Inequality
The opening session delved into the implications of the persistent global economic slowdown for EMDEs. H.E. Muhammad Al Jasser, President of the islamic development Bank, moderated a discussion that highlighted the threat posed by income inequality.As Al Jasser noted, ”economic slowdown jeopardizes income convergence and could also lead to widening income inequality within countries.”
The session explored the potential impact of shifts in the economic landscape, especially the rise of artificial intelligence (AI), on EMDEs. Leslie Teo, Director of AI Products at AI Singapore, emphasized the need for EMDEs to harness the potential of AI while mitigating its risks.
Building Resilience: Fiscal and Monetary Policy strategies
The closing panel, moderated by Kristalina Georgieva, Managing Director of the IMF, focused on strategies for building resilience in the face of ongoing global shocks. Panelists, including H.E. Muhammad Aurangzeb (Minister of Finance, Pakistan), H.E. Rania Al-Mashat (Minister of Planning, Development, International Cooperation, Egypt), H.E. Mehmet Şimşek (Minister of Finance,Türkiye),and H.E. Fernando Haddad (Minister of Finance, brazil), discussed the delicate balance between maintaining stability, spurring growth, and addressing the underlying concerns driving “anti-globalization” pressures.
Georgieva emphasized the need for coordinated global action to address these challenges. She stated, ”we need to work together to create a more resilient and inclusive global economy that benefits all.”
The AlUla Conference offered valuable insights into the pressing challenges facing EMDEs and highlighted the importance of strong policy responses, international cooperation, and strategic investments in areas like AI to navigate the complex global economic landscape.
How can EMDEs effectively leverage artificial intelligence for inclusive economic growth while mitigating the potential for increased inequality?
Navigating Economic Headwinds: Insights From the AlUla Conference on EMDE Resilience
Last month, riyadh, Saudi Arabia, hosted a pivotal conference examining the challenges facing emerging market and developing economies (EMDEs) in an increasingly volatile global landscape. Joining us today to delve deeper into the key takeaways from the event is Dr. Maya Sharma, Lead Economist at the Global Economic Forum, who was instrumental in organizing the conference.
Dr. Sharma, thanks for joining us. Could you provide a concise overview of the primary themes explored at the alula Conference?
Dr. Sharma: It was a truly remarkable gathering, bringing together policymakers, economists, and industry leaders to tackle pressing issues facing EMDEs. Key themes included navigating global economic headwinds, leveraging technology like artificial intelligence, and building resilient and inclusive economies.
One crucial focus was understanding how the global slowdown,coupled with rising income inequality,impacts EMDEs differently. We heard compelling arguments that this slowdown, coupled with disruptive technologies, can exacerbate existing inequalities.
Another crucial area of discussion revolved around the transformative potential of artificial intelligence.While AI presents vast opportunities for economic growth, panelists emphasized the importance of responsible growth and equitable access to ensure all EMDEs can benefit, rather than further widening the technological divide.
Our discussions also addressed the critical role of fiscal and monetary policy. Finding that delicate balance between supporting growth, managing inflation, and addressing financial vulnerabilities was central to many policy discussions. Notably, the emphasis was on a coordinated global approach, recognizing the interconnected nature of the global economy.
Can you highlight any specific strategies or policy recommendations that emerged as particularly impactful?
Dr. Sharma: Several recommendations resonated strongly. Firstly, policymakers stressed the importance of investing in human capital development. this involves not just education, but also skills training that equips workers for the evolving demands of a technology-driven economy. Investing in infrastructure, particularly digital infrastructure, was seen as crucial to bridge connectivity gaps and unlock growth potential.
Secondly, promoting inclusive economic growth remained a top priority. This entails fostering entrepreneurship,supporting small businesses,and addressing structural inequalities within EMDEs. Many called for policies that promote fair labor practices, improve access to financial services, and ensure everyone can participate in the benefits of growth.
there was a strong emphasis on international cooperation. Addressing global challenges like climate change,debt distress,and economic instability requires collaborative efforts. Countries need to work together to share knowledge, provide financial assistance, and ensure policies benefit all members of the global community.
Dr. Sharma, thank you for sharing these invaluable insights. This conference undoubtedly lays a roadmap for EMDEs to navigate challenging times and shape a more inclusive and prosperous future. What role do you hope readers will take away from your insights?
Dr. Sharma: I hope readers walk away with a deeper understanding of the unique challenges facing EMDEs and the potential solutions within reach. Every individual, whether in government, industry, or civil society, has a role to play. Let’s encourage informed conversations, advocate for policies that promote equity and resilience, and contribute to building a more lasting global economy for everyone.
Let me know if you’d like me to expand on a particular aspect!
