The Al Ula Conference for Emerging Market Economies commenced with opening remarks highlighting the critical issues facing emerging markets today. The event, hosted by Saudi Arabia and chaired by Minister Aljadaan, brought together representatives from around the world to discuss policy issues pertinent to these economies.
Acknowledging Minister Aljadaan's efforts, it was noted that he "identified a gap in terms of space for emerging markets to discuss policy issues of common interest but decided to close it." The International Monetary Fund's (IMF) new Regional Office in Riyadh played a significant role in realizing this vision.
The conference comes at a time when the global economy is undergoing substantial transformations due to technological advancements, demographic shifts, and geopolitical changes. These factors create both challenges and opportunities for policymakers, particularly in emerging markets.
One key issue discussed was the changing dynamics of global trade. Unlike previous decades when trade significantly outpaced global GDP growth, they are now growing at similar rates. This shift underscores the importance of regional and cross-regional trade opportunities.
Another topic was the shifting policy priorities worldwide. The new US administration has indicated plans to address areas such as trade, tax and spending, deregulation, immigration, and digital assets. Additionally, the rapid advancement of technology—especially artificial intelligence—is expected to impact jobs significantly within five years.
Emerging markets have shown resilience amid recent shocks and contributed two-thirds of global growth. However, traditional strategies may no longer suffice for future prosperity. Agility, adaptability, and resilience are seen as essential ingredients for success moving forward.
Three areas were highlighted as crucial for emerging markets: inflation management, fiscal responsibility amidst high debt levels and limited resources, and structural reforms aimed at improving competitiveness and productivity.
The IMF emphasized its commitment to macroeconomic stability while also advocating for reforms that enhance productivity. Slow productivity growth has been identified as a major factor in the global growth slowdown over recent decades.
Minister Sturzenegger of Argentina will serve on the newly formed IMF Advisory Council on growth and entrepreneurship. The council aims to explore ways economies can strengthen themselves for their citizens' benefit.
Collaboration among countries remains vital. As Minister Aljadaan stated: “Working together to fix our global economic ship so it benefits more people is not a charitable act; it is a wise investment in our common future.”
The conference aims to foster cooperation based on shared interests or geography—a crucial step towards achieving positive outcomes for member countries and their populations.