The 10th Edition of the Jeddah Economic Forum held from February 13-16, 2010, had as its focus the key issues defining and playing a role in the Global Economy 2020. The objective was to look at the shape and leading characteristics of the next phase of global growth, which will be well underway 10 years from now. In the nine sessions that made up the forum's program, attention was devoted not only to the pertinent economic topics that are currently dominating headlines – such as the outlook for global economic governance, the role of reserve currencies and the circumstances surrounding banking and finance – but equally the focus was on issues in the broader context in terms of the future development of both the global economy and that of the Kingdom of Saudi Arabia in particular. This included energy and the environment, trade, agriculture and food security as well as health, science & technology and education. Below is an overview of the key recommendations made during the panel sessions of the 2010 Jeddah Economic Forum. These recommendations are divided into general ones applicable to the global economy and specific recommendations for the Kingdom of Saudi Arabia and the GCC countries. Plenary Session I - Global Economic Governance after the Crisis Globally: The consequences of the global economic crisis were still threatening global economy and need collaboration of all countries to create clear plan for economic reforms. Constrain risks and improve transparency Build strong supervision and institute reform of compensation practices in the financial sector Put an end to the idea that any financial system was “too big to fail.” Governance inherent in the IMF (International Monetary Fund) and the World Bank must evolve to reflect the new situation Enhance global trade and growth through resistance to protectionism and the lowering of trade barriers Reconsider the concept of narrow sovereignty and understand that recovery efforts must be able to lift all countries together. Kingdom of Saudi Arabia: Concentrate and expand on economic cooperation in fields such as food issues, regional projects, the effectiveness of financial frameworks and further efforts at economic diversification Promote more cooperation between governments and the private sector Intensify participation in international institution such as G 20 and WTO in order to fight protectionism and ensure open borders for Saudi products and investments. Plenary Session II - The Way Forward for Reserve Currencies Globally: Progress towards a multicurrency international system while maintaining the stability of the US dollar The US should rein in its budget deficit, avoid inflation, and encourage savings and investment over excess spending and consumption Other industrial and key emerging countries should take steps to allow their currencies to play a greater role as reserve currencies and mediums of international payments The role of SDR should be enhanced. Kingdom of Saudi Arabia: Promote the creation of a regional Gulf common currency Maintain peg to the US dollar for as long as other currencies have acquired more significant international status Diversify reserves with a pragmatic approach, notably taking into account the liquidity and stability of each monetary area's financial markets.Plenary Session III - Banking and Finance: Rebuilding Faith in Financial Institutions Globally: Rein in the shadow banking system as it encouraged reckless lending via off-balance sheet vehicles Regulate capital markets tighter, especially OTC derivatives Implement stricter capital requirements for banks to enforce prudent lending standards while the capital base of banks is being shored up Stop conflicts of interest at rating agencies, they should not be paid by the same companies they rate Limit excessive bonus payments to executives that have encouraged imprudent risk taking and a short-term view Reform the IMF and give G20 members from emerging markets a larger vote. Kingdom of Saudi Arabia: Continue Saudi Arabia's conservative monetary policy, it has served it well during the global financial crisis Develop project finance capacities at domestic banks and reduce over reliance on international banks in this field Develop a domestic bond market and an institutional investor base Become a more international financial center Open up Saudi stock market to foreign investors, increase free floats and encourage listings of companies from a wider variety of sectors. Plenary Session IV - Energy and the Environment Globally: Pursue an equitable post-Kyoto regime which does not impose an excessive burden on developing countries Move in the direction of a transparent and uniform carbon tax rather than easily manipulated cap and trade systems. The tax should accurately reflect carbon emissions: oil and gas should not be discriminated against in favor of coal or biofuels. Stabilize oil prices to encourage timely capacity additions Seek international agreements to enhance demand as well as supply security. Promote a more predictable and comprehensive CDM system, notably to include carbon capture and sequestration projects (CCS) Kingdom of Saudi Arabia: Promote the implementation of solar energy projects in the pursuit of the vision of Saudi Arabia as exporter of solar energy Consider nuclear energy to reduce the domestic consumption of oil and gas Encourage rational use of energy and substitute existing subsidies with “smart subsidies” that will encourage efficient use of energy by the wider public Start implementation of CCS projects to establish a global leadership role in this field Support the private sector in taking advantage of CDM system to implement clean energy projects. Plenary Session V - Tackling Protectionism in Trade and Investment Globally: Fight against protectionist tendencies and defend trade liberalization Resume and conclude Doha Round negotiations Kingdom of Saudi Arabia: Pursue the full implementation of the GCC Customs Union Pursue effective trade liberalization between the Arab countries Pursue FTA agreements with all major trading partners, notably in Asia Pursue effective freedom of investment including for the acquisition of controlling interests or takeover of industrial countries' corporates. Plenary Session VI - Agriculture and Food Security Globally: Establish an international grain reserve to reduce market volatility Prevent food export restrictions and curb speculation Increase agricultural production in developing countries to satisfy rising world demand Apply Green Revolution technologies like irrigation, fertilizer and high yield seed variants more widespread in Sub-Saharan Africa and Latin America Improve access to land, credit and production know-how by small scale farmers Reconsider high growth rates of meat and dairy consumption as plant based diets need less water and land. Kingdom of Saudi Arabia: Prevent farmers from switching to water intensive alfalfa as wheat production is being phased out. Apply more water saving technologies like greenhouses and drip irrigation and shift domestic agriculture to more value added crops such as fruits and vegetables When investing in agro projects in developing countries be transparent and balance interests of local stakeholders Add investments in developed markets like Eastern Europe, Latin America or Australia as a necessary portfolio diversification Participate in efforts to make international food markets more reliable Optimize Saudi Arabia's food supply chain by closely cooperating with food traders and the food processing industry. Plenary Session VII – Health Globally: Focus on economic solution to improve the health system around the world. Unlimited healthcare “wants” need to be brought in line with available resources. Decision and policy-makers are adequately informed about development in the health care sector in order to allocate healthcare resources in a rational, fair and sustainable way. Governments need to focus on health in a holistic way rather than isolate it as a single independent issue. It is necessary to look into health care as a long-term investment for both the social and physical security of a developing society. As such, it is important to pay attention to social determinants that play a role in building a robust and responsive primary health system. Countries with strong health systems thus are at a competitive advantage which also translates into economic gains. At a fundamental level, it is important to better understand the relationship between the available health system and the health of the economy. Kingdom of Saudi Arabia: Ensure that the public health infrastructure is better designed, resourced and funded to ensure the system's stability for the future Promote greater collaboration between public institutions and research organizations both domestically as well as across borders Plenary Session VIII - Science &Technology Globally: Identify the goals as the transformation of society into a knowledge-based society with a knowledge-based economy Establish centers to address certain elements in the chain of development, namely – fundamental research and proof of concept Upon establishment, support the phases of feasibility studies, prototype development, production issues and commercialization in order to help innovative ideas develop into new products and businesses Follow incubation policies, programs and structures that promote entrepreneurship and support the creation of new technologies and products to ensure new technology transfer to existing industries or alternatively to create new businesses Focus on broadband services which constitute the road to integrated digital and knowledge-based economies and connect all those not yet connected to the global network. This can only be accomplished through sound public sector policies and involvement together with the private sector. Advance science and technology capabilities through well–developed, integrated education and research systems Address the issues of socio-cultural change and develop approaches that can be used to bridge the gap between socio-cultural and technological development Pay attention to intellectual property (IP) issues. Allow researchers to exploit and benefit from their work, including the possibility of establishing new companies. Develop comprehensive and fair policies to share ownership of IP rights in an equitable way among relevant stakeholders in all research and development undertakings. Kingdom of Saudi Arabia: Policy implementation should focus on technologies that are of strategic interest. In the case of Saudi Arabia, King Abdulaziz City for Science and Technology (KACST) has identified eleven such areas of advanced technological focus: water; oil & gas; petrochemicals; nanotechnologies; biotechnology; information technology; electronics, communications, photonics; space and aeronautics technology; energy; advanced materials; and the environment. Use science-and-technology-based innovation and entrepreneurship to catalyze the diversification of oil-based economies, thus helping to build stronger and more sustainable economies. Plenary Session IX - Education Globally: Education must be given the highest priority as all other aspects of life from health, to society, to the economy will be taken care of While access to information and educational means has certainly improved, the skills needed to survive and prosper in a rapidly changing economy have not been sufficiently met. Educational solutions need to be thought of as interlinked and continuous process involving the pre-school, primary, secondary, university and vocational levels. Particular emphasis must be given the investment in early education Re-conceptualize education to make it more realistic in its approach to help individuals become life-long learners There is a need to maintain a high level of political will to maintain spending on education. As a result of the economic crisis, this is not always the case and often education becomes a victim of cost cutting. Kingdom of Saudi Arabia: Maintain a concerted effort underway that combines the proper investment of oil revenues into education alongside a clear framework with identifiable targets and proper assessment criteria Further increase spending on education to ensure that the next generation can meet the demands of an ever-changing labor market Concentrate on and develop ways to enhance the role of parental guidance not just in education but in other aspects of life as well There is a need for a more concerted involvement by the private sector as a means to mobilize both financial resources and educational ambassadors Adequate attention needs to be given to introducing the latest technologies into the educational process Governments need to develop a prospective for education for 15 years and include changing the curriculum, improving the system responsiveness and streamlining governance. __
