Jeddah Economic Forum 2010: Background Papers' Abstracts

Title: Global Liquidity, the World Savings Glut and Global Policy Coordination

By: Ansgar Belke and Daniel Gros

Abstract: The global imbalances of the 2000s and the recent global financial crisis are intimately connected. Both originate in economic policies followed in a couple of countries in the 2000s and in distortions that influenced the transmission of these policies through the U.S. and ultimately through global financial markets. In the U.S., the interaction among the Fed's monetary stance, global real interest rates, distorted incentives in credit markets, and financial innovation created the toxic mix of conditions making the U.S. the epicenter of the global financial crisis. more..

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Title: Energy and the Environment

By: Giacomo Luciani

Abstract: As we enter the second decade of the 21st century, the interrelationship between the energy and environment files has taken center stage.

The full implications of the reduction of emissions which are required to contain (not eliminate) global warming are not unanimously accepted yet. But all scenarios in which global warming becomes the main preoccupation of humankind, and the energy agenda is subordinated to the imperative of emission reduction, indicate that the availability of fossil fuel resources would cease to be the main constraint - indeed, we would not be able to continue using coal at least in the quantities of today, and even less so in the near future. more..

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Title: Decision Making in Healthcare: The Role of Health Economic Evaluation

By: Tienie Stander and Dino Celeste

Abstract: Health economic evaluation plays an important role in assisting policy makers, funders and implementers to make rational decisions to allocate scarce healthcare resources. Health economic evaluations are divided into two main areas, namely the macro level analysis and the micro level analysis. Macro level consists in evaluating healthcare investments including capital investments, disease prevention policy, disease eradication and treatment, whereas micro level consists in assessing new healthcare technologies such as diagnostic techniques or new medical treatment modalities. more..

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Title: Health: An Overlooked Factor Impacting the World Economy

By: Manfred Dietrich

Abstract: The quality of human resources is central to economic development dictating that public health is one of the most important factors influencing the local and global economy. Not only is working capacity of a population impacted by both acute and chronic diseases, such illnesses may lead to lower income and poverty. Health problems are prevalent in both agricultural and industrial economies worldwide. Regions with good health systems and better hygienic standards have a clear competitive advantage over countries neglecting this basic requirement for economic growth. more..

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Title: Influencing the Economics of Health Care in the Future

By: E. Wayne Holden, Ph.D., Thomas Hoerger, Ph.D., Michael Trisolini, Ph.D., Doris Rouse, Ph.D. & Scott Wetterhall, MD, MPH Social, Statistical and Environmental Sciences, RTI International

Abstract: The provision of adequate and affordable health care to the world's population of almost 6.8 billion is one of the most pressing economic issues affecting our collective futures. Maintaining population health is an important and central goal for any country. It is essential to ensuring the capacity for the productivity and innovation necessary to address other societal problems and to concomitantly support as well as enhance future economic activity. Given the importance of the population's health to the future, it comes as no surprise that it is intimately interwoven into the other major issues at play on the world stage - climate change, resource scarcity, global aging, continued widespread poverty, racial and ethnic disparities, and conflict. The rapid pace of globalization and accompanying economic development over the last several decades have only served to further enhance the complex and interconnected nature of health care as a fundamental societal good. more..

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Title: Science and Technology: Future Applications, Trends and Impact

By: Imen Jeridi Bachellerie

Abstract: As much as potential economic, environmental or social benefits of any scientific field can help foresee its future technology development, prevailing socio-economic factors, like demographic change, labor markets, ecological sustainability, or national security do have an impact on Research and Development (R&D) policies or the level of technological activities being carried on in any country. Similarly, while innovation performance is linked to the state of markets for innovative products and services, innovation strategies of technology-based businesses do not solely focus on furthering the technical potential of their technologies; they also consider long-term socio-economic - national and international - trends in the planning of such strategies and the development of their products. Such mutual influence of socio-economic factors and R&D and Innovation in Science and Technology (S&T) is traditionally well established in the economically and scientifically advanced countries. And it is also more and more visible globally through the R&D activities of multinational private companies (MNCs) exploring new markets. Hence, a majority of S&T foresight studies look from this perspective to examine trends in the possible future development and impact of S&T. more..

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Title: The Prospects for the World Trading System in 2010: "Events, Dear Boy, Events"

By: Simon J. Evenett

Abstract: The fate of the world trading system in 2010 is likely to rest on how policymakers react to the "events" thrown up in the next twelve months, rather than outcomes of established official processes, such as the G-20 and at the WTO. Indeed, the impact of announced official processes are likely to be far less important than a number of potentially disruptive other developments, the magnitude of which cannot be known for sure at the beginning of the year even if their identity can. "Events" rather than "plans" will likely dominate in 2010. Given that each of these events could trigger restrictions on international commerce, it follows that some of the current optimism about "holding the line" against protectionism is misplaced. more..

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Title: The Way Forward for Reserve Currencies

By: Giacomo Luciani

Abstract: Ten years after the creation of the Euro, the debate on the future of the dollar as the world's reserve currency has again come to the fore. Aggressive liquidity creation by the US Federal Reserve has succeeded in stemming the tide of the recession, but has also cast doubts about the currency's future prospects, leading some to propose a transition toward alternative reserve currencies. more..

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Title: Global Food Security: Issues and Concerns

By: Eckart Woertz

Abstract: After the food price hikes of 2007/2008 agricultural policies and food security considerations are firmly back on the international agenda after nearly three decades of neglect. Population growth, changing diets and biofuel production back sustained demand growth while increased supplies are threatened by declining productivity gains, stretched water resources and climate change. It is a matter of open debate how food production can be increased. Suggestions include application of green revolution technology to underdeveloped countries in Africa and Latin America, the usage of genetically modified plants or improved water management. Beside technical aspects socio-economic factors weigh in the equation. Access to land, credit, markets and know-how are unevenly distributed and agricultural subsidies in the developed world often hurt farmers in developing countries. This brief assesses challenges of global food security and what could be done to take on major challenges ahead. Particular attention is paid to the situation in Gulf countries, where population growth and declining agricultural production will lead to an increasing reliance on food imports in the future. more..

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Title: Challenges of Financial Sector Regulation after the Global Financial Crisis

By: Eckart Woertz

Abstract: The global financial crisis has shaken the foundations of the current financial system and has led to a widespread debate about its reform. The reining in of a shadow banking system that encouraged reckless lending via off-balance sheet vehicles and tighter regulation of capital markets and OTC derivatives have been identified as major priorities. Stricter capital requirements for banks to enforce prudent lending standards have been suggested, while excessive bonus payments and the conflicts of interests of rating agencies have been criticized. On the international level a stronger role of emerging markets countries in the IMF has ranked highly in debates and the dollar's role as dominant reserve currency has been questioned. Finally the role of the G 20 has been upgraded significantly to deal with international economic and financial issues. This brief outlines major fault lines of the debate and discusses measures that have been undertaken thus far. more..

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Title: Challenges to Education in a Globalized World: A Vicious Cycle

By: Samir Jarrar

Abstract: Education is knowledge, skills, and values needed to promote informed choices and sustainable development. Education is an indispensable asset to attain ideals of freedom, social justice and peace. Education is "one of the most effective tools for achieving inclusive and sustainable economic growth and recovery, reducing poverty, hunger and child labor, improving health, incomes and livelihoods, for promoting peace, democracy and environmental awareness," as well as a driver "to achieve the internationally agreed development goals, including the Millennium Development Goals (MDGs), " and the Education For All Goals (EFA). Education promotes citizenship and democratic participation; it is the foundation of social transformation. Formal education was the domain of religious orders and/ or the state. It was not until the late nineteenth century that mass public education took hold in the industrialized world. With the promulgation of the Universal Declaration of Human Rights (1948), education was recognized as a right of every human being. more..

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