The cooperation and solidarity of rich and poor countries is the only way to revive the global economy, which has faced a difficult situation since the onset of the COVID-19 pandemic; this was a key conclusion among participants in the opening session of the Qatar Economic Forum, held via video conferencing and continuing for three days under the theme "Reimagining the World." Participants highlighted the importance of achieving fairness in the provision of COVID-19 vaccines among nations to overcome the pandemic and end measures that impact the economy and trade movement between countries.
The first edition of the forum, which began on Monday and lasts for three days, features many world leaders and heads of government, including Ghana's President Nana Akufo-Addo, UK Prime Minister Boris Johnson, Rwandan President Paul Kagame, South African President Cyril Ramaphosa, Senegalese President Macky Sall, and Armenian President Vahagn Khachaturyan, in addition to over 100 speakers from around the world. The forum hosts a global elite comprising more than 2,000 CEOs, inspiring figures, and decision-makers from the fields of finance, economy, investment, technology, energy, education, sports, and climate.
**Africa and COVID-19**
During the session, the South African president noted that the recovery observed in several African countries in recent years is currently declining due to the COVID-19 pandemic, stressing that Africa needs urgent assistance, especially the countries living under difficult conditions that cannot sustain their economies against the pandemic's fallout. Ramaphosa pointed out that Africa requires about $400 billion to support its economy, adding that if major countries and international bodies cancel parts of Africa's debt, provide grants and loans, and support infrastructure projects, the continent could regain its footing.
He also highlighted that major economies bear a special responsibility toward Africa, which suffers severely from the effects of climate change caused by developed countries. He called on these countries to fulfill their promises to address climate change and to quickly find an approach to the climate crisis, particularly since many African countries are experiencing devastating effects as a result.
The South African president addressed the refusal of some global entities and companies to waive patents for COVID-19 vaccine production, deeming this refusal a form of "inequity" and injustice, especially for poor countries heavily impacted by the pandemic.
The Armenian president urged the need for swift economic reforms and the adoption of technology and artificial intelligence to contribute to development in his country, emphasizing a commitment to utilizing Armenian capabilities for national development, especially amidst difficult global economic conditions due to the pandemic. He asserted the importance of leveraging Armenian talents abroad to support and revitalize the economy on various levels.
During the session, the Armenian president discussed the conflict between his country and Azerbaijan, emphasizing the need to turn the page on the past and avoid any new wars in the Caucasus region, arguing that the dispute should be resolved through dialogue and negotiation, which he sees as humanity's greatest tool. He considered the failure to resolve the conflict through dialogue a failure for both Armenia and Azerbaijan, and also a failure for the international community.
**Unprecedented Crisis**
Indian investor and chairman of Reliance Industries Limited Mukesh Ambani explained that the COVID-19 pandemic has created an unprecedented global crisis, particularly in the economic sector, stressing that despite the crisis, "we have seen unprecedented solidarity among people to provide assistance," referring to Qatar as a prime example of this when it offered medical and relief aid to his country. He affirmed that the current phase of the global economy necessitates unity and cooperation to overcome this crisis, calling for an end to the debate surrounding vaccine provision and for helping poorer nations to restore their economies and resume growth. Regarding digital technology, Ambani asserted the need to bridge the gap between countries with varying levels of technology dependence, noting its importance in remote work, education, and more, stating that this new direction toward relying on technology will ensure quality health and educational services.
**The U.S. Economy**
During the forum, a session was also held to discuss the current developments in the U.S. economy due to the COVID-19 crisis, featuring former U.S. Treasury Secretary Lawrence Summers and American businessman and founder of Bridgewater Associates Ray Dalio. The participants agreed that rising inflation, labor shortages in the U.S. market, the attempted aggressive sale of bonds, and fluctuations in the dollar's value herald a significant crisis that would affect not only the United States but the entire world.
The former treasury secretary called for substantial changes in the labor market to accommodate high employment rates through raising the minimum wage and improving working conditions as a first step to combatting the high inflation rates in the economy. He noted that liquidity poses a grave threat to the U.S. economy and stressed the necessity of implementing a structured supply and demand program, increasing tax rates, and reducing cash transfer rates.
Dalio affirmed that the lack of sufficient demand for bonds globally makes it challenging for the Federal Reserve to rebound and raise interest rates, describing this as a very concerning financial issue. He considered a significant threat to the value of the dollar, which impacts all countries, in addition to the negative effects of increasing interest rates on the economy and market, urging the Federal Reserve to purchase more bonds to prevent interest rates from declining.
