The managing director of the International Monetary Fund, Kristalina Georgieva, has praised the economic success of the Gulf and has acknowledged its efforts.
In her speech at the World Governments Summit on Tuesday, Georgieva stated that the talks with finance ministers and central bank governors of the region were proving to be mature, which made them shift their economies.
She added, “If you want to compete in the world we are today, you have to come up with a sense of purpose and unity, and the Gulf has demonstrated capacity to do so.”
Georgieva stated that she admired what the Gulf Cooperation Council had achieved in investing in human capital and acknowledging the power of dialogue and cooperation: “Because you have invested in human capital before AI took over, you have such a strong comparative advantage today when this new technology is coming to life.” She also advised that the Gulf countries should not repeat the same mistakes that Europe made.
She reported, “In the Gulf, I am enthusiastic about what I see, there is more interest in harmonization of regulations, more collective decision making, and focus on interregional trade. Potential for that is huge, and the Gulf is thinking about how to make the GCC a more impactful institution. Don’t copy European institutions, they are too complicated.”
However, Georgieva continued by saying that the world required trading even in times of political trouble and difficulty. She said, “Trade is like water, you put an obstacle, and it moves around it. The world is trading because the majority of small and medium-sized countries can’t produce anything at home, and they need an integrated global economy. We live in a world of exhaustive shocks, we live in a world of uncertainty, this is not going to change.”
Georgieva also encouraged governments to ensure that their economies are in the best possible shape and that it cooperates with their neighbours to form economic bridges and links.
