IMF’s Kristalina Georgieva’s participation in WGS

This substantial three-day summit, running until February 14 with the theme ‘Shaping Future Governments’, gathers more than 25 heads of state, over 85 international and regional organizations, 140 governments, and leading global thinkers and experts. It features discussions on future global trends with more than 200 speakers across over 110 dialogues and sessions.

The event had a significant participation also from His Highness Sheikh Mohammed bin Hamad bin Mohammed Al Sharqi, the Crown Prince of Fujairah, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, the First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance of the UAE, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, the Prime Minister and Foreign Minister of Qatar, His Highness Lieutenant General Sheikh Saif bin Zayed Al Nahyan, the Deputy Prime Minister and Minister of the Interior, His Excellency Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Tolerance and Coexistence, and His Excellency Mohammad bin Abdullah Al Gergawi, Minister of Cabinet Affairs, and Chairman of the World Governments Summit.

The CNN’s Richard Quest moderated the session where Georgieva congratulated the UAE for its early adoption of artificial intelligence (AI) technologies and its visionary step of creating a ministry dedicated to AI in 2017, at a time when the global community was hesitant about embracing such technologies.

Georgieva compared the transition towards AI to the Industrial Revolution in its scale and the depth of its impact, suggesting it could reshape up to 40% of the job market by either evolving existing roles or introducing new ones. And mentioned the IMF report that highlighted the UAE and Saudi Arabia’s readiness for this shift, comparing it to the lack of readiness observed in the other developing countries.

She also encouraged the UAE for taking a leadership role in adopting AI in a manner that benefits humanity and for assisting other countries, particularly developing and emerging markets, to leverage AI technology while mitigating its possible adverse effects.

Georgieva outlined four key aspects to assess AI readiness: the availability of digital infrastructure, the skills and mobility of the labour market and the degree of innovation, measured by investment in research and development, and the framework for regulation and ethics.

Beside expressing her optimism for AI, Georgieva also shared her concerns, underlining the lessons from the COVID-19 pandemic about the importance of preparedness for unforeseen challenges, the agility to adapt to changes, and the significance of being proactive.

On the other hand, Georgieva predicted a 40% reduction in global interest rates by mid-2024, expressing confidence in the global economy’s capacity for a soft landing. She also highlighted the economic strengths of the United States, including its robust capital markets, dynamic economy, particularly in new technologies, and its quick adaptability, which makes it an attractive destination for investment.

In response to a question about the robust reaction of the United States amidst high interest rates, Georgieva pointed to the country’s energy independence and its role as an energy exporter, especially during the Ukraine conflict, which distinguished it from Europe’s energy challenges. She also praised the U.S. government’s support for families and businesses during the pandemic, which maintained consumer spending, demand levels, and a vibrant labour market.