ReddStarr: Keyword…..”Diversification“…..I just used that word on an earlier post…..
Mountainman: So In A NUTSHELL…….In this NEW REALITY M.E.Countries are Going to Have to Get outside Their COMFORT ZONES and Quit Relying on OIL Only…..WHY….???…..because Oil will Be CONTROLLED thru TPP and CONTRACTS at Set Prices…..
So {ALL} these TRADE Agreements are Preparing them towards INNOVATION/ENTREPRENEURSHIP and Ultimately It will Stimulate/Maintain FUTURE GLOBAL Growth….and In A Sense Set The MASSES/CITIZENS {Free} ……
WHY….??? Because It will Force {ALL} Generations to THINK and INVENT which will Help Revolutionize their Countries Economies……Which is A GOOD Thing…..
Laziness is A Countries GROWTH KILLER and NOW in the New Reality (DIVERSIFICATION) is A MUST for SURVIVAL…..
The IMF is Teaching as (THEY) Direct Future Monetary Growth and Ultimately the Results will Benefit (ALL) thru TAXES and TRADE/TARIFFS etc……???…..
Do You Understand WHY I have said in the Past…..That We Are ENTERING One of the GREATEST and MOST PROSPEROUS [Periods] In {ALL} of HUMANITIES Existence……Yes this ASSET VALUE Based SYSTEM Will UNLEASH Innovation and Collective Growth Unlike [ANY] Other TIME……IMO
Blessings,Mountainman (8)=New Beginnings…….for the MIDDLE EAST……LAUNCHING INTO INNOVATION……..
ReddStarr: The IMF Middle East Center for Economics and Finance, Jointly with the Arab Fund for Economic and Social Development, held a Symposium that Discussed the Path to Economic Diversification in Kuwait and Other GCC Countries
Press Release No. 16/223
May 16, 2016
The IMF Middle East Center for Economics and Finance (CEF), jointly with the Arab Fund for Economic and Social Development (AFESD), held a symposium on “The Path to Economic Diversification in Kuwait and other GCC Countries” on Monday May 16, 2016. The event was hosted at the Arab Fund’s Headquarters.
The panel discussion was moderated by the CEF’s Director Dr. Oussama Kanaan, and included Professor Ha-Joon Chang of Cambridge University, author of seminal work on the role of the state in economic development, and Dr. Reda Cherif and Dr. Fuad Hasanov, the leading IMF economists in the field of economic diversification.
CEF Director Oussama Kanaan indicated that the symposium is the fourth in the series of events organized by the CEF jointly with the AFESD aimed at stimulating discussion on economic policies for Kuwait and other GCC countries to ensure durable development on the basis of a long-term strategy to reduce the dependence on oil. He added that the adoption of a bold diversification strategy has become particularly important in the face of low oil prices, and a critical one to prevent a marked decline in GCC countries’ living standards.
Drawing on international country experiences, the panel discussion brought to the fore the core ingredients of successful economic diversification strategies, including infrastructure and human capital investments conducive to private sector growth and the development of sophisticated non-oil export industries.
Dr. Cherif and Dr. Hasanov started by putting into perspective the implications of the decline in oil prices from above $100 to about $40 per barrel today, which has made diversification such a pressing policy issue. They noted that such a drastic and persistent decline is raising the specter of a return of the oil slump of the 1980s–1990s.
Citizens and policymakers from many oil-exporting nations still remember the ordeal their countries went through at that time. The promise of easy and swift development brought by large oil revenues failed to materialize, resulting in unemployment, falling living standards, and heavy indebtedness in the 1980s and 1990s. History does not repeat itself, but it should not be ignored. Dealing with low oil prices in the current context of high government spending and rising expectations about the provision of jobs and income transfers is even more challenging.
Cherif and Hasanov indicated that, to achieve diversification, oil exporters must change the prevailing economic model. Despite the complex choices involved, it is paramount for oil-dependent economies to become innovative economies. They will have to experiment and learn from the experiences of other countries on their path to diversification. In the past, countries such as Brazil, Korea, Malaysia, and Singapore have made major strides in diversifying their economies, and their experiences carry important lessons for GCC countries today.
These countries’ experiences reveal that incentives for firms and workers need to be realigned to develop technologically sophisticated export-oriented industries. Standard growth policy prescriptions may not be sufficient to achieve true diversification. In addition to addressing government failures, policymakers must address market failures by changing incentives for firms and workers to move toward more dynamic sectors.
Policymakers should focus on developing dynamic export markets. Diversification has to start somewhere and can begin by focusing on a more limited set of industries. Facilitating entrepreneurship is essential while education and social development are paramount. The choice to diversify via the service sector versus the manufacturing sector depends on the potential productivity gains. The frontier between services and manufacturing is fading, and there are more productivity gains to be had with service sectors that are more strongly linked to the manufacturing sector.
Professor Chang then discussed the key elements that characterized successful diversification strategies, and concluded with three main messages. First, diversification does not need to be related to economic activities that the country is already engaged in—the experience of several countries indicates that new activities are created that are often unrelated to a country’s traditional industries or its natural resource endowment.
Second, even when diversification is related to a country’s traditional industries, the challenge is to ensure that the products of that industry become increasingly sophisticated, at more advanced stages of manufacturing. Third, diversification requires an industrial policy that is highly selective, taking into account the particular economic and social conditions of the country.
The floor was then open for discussion with the audience, whose interventions reflected a broad range of interests, including participants from the public sector, the banking and business community, academia and representatives from international and donor organizations.
http://www.imf.org/external/np/sec/pr/2016/pr16223.htm
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KTFA Monday Night Conference Call
Approx. 163 minutes long
The first part is Business Promo and the second part is Dinar/Iraq Intel
PLAYBACK # : 641.715.3639, PIN: 156996#
https://www.freeconferencecallhd.com/playback_rudd/?n=OTQCw/uxItn
Walkingstick: IMF Backs Iran Link to Global Banking
Economy
Business And Markets
The International Monetary Fund will support Iran to reconnect with international banking networks, David Lipton, first deputy managing director of the IMF said in a meeting with Valiollah Seif, governor of the Central Bank of Iran, in Tehran on Monday.
“The IMF can help Iran improve various aspects of its banking system, including anti-money laundering regulations and counter terrorism measures,” the CBI website quoted him as saying.
Lipton called on the government to focus on solving structural problems and said employing monetary policies alone to address structural deficiencies hinder, not help, the process of finding effective solutions.
Injecting liquidity into markets and increasing businesses debts is one of the main causes of the financial crises in Asia, he stressed. It should be noted that injecting huge amounts of money into businesses also may (later) translate into non-performing loans for the lenders and is a short-term solution, the senior IMF official warned.
“In fact, businesses that are close to banks will take out loans. Such loans would then turn into bad debts,” he warned, “This would make banks rely on the government when times are tough.”
Banks can and would be efficient players in the economy if and when they lend to businesses through the resources they have.
Addressing Iran’s plans for launching a debt market, Lipton said, “As a first step 15% of banks’ bad debts should be offered in the debt market.”
Seif briefed Lipton on the CBI’s achievements in lowering the rate of inflation from 40% in 2013 to 12% this year. “The CBI is seeking a single digit inflation rate.”
Banks are experiencing hard times as they do not have access to almost half their resources, he said, “15% of which are bad debts.”
Government debt to banks and nonperforming assets respectively account for 18% and 15% of the assets, the CBI chief said.
“Our measures for pulling the economy out of recession resulted in a surge in the liquidity,” he noted, “While liquidity increased by 23% in 2013, it grew by a whopping 30% in 2014.”
Pointing to CBI measures to reduce interest rates, Seif said, “We managed to lower interest rates from 29% to 22%, which is not yet satisfactory.”
Government’s debts have risen to 5 quadrillion rials ($164 billion), according the senior banker, for which a solution must be found soon. “A debt market is planned to attract resources needed by the government and to also perform as one of the CBI tools for implementing monetary policies.”
Lipton urged the CBI to sustain its policy of lowering the inflation rate, help improve the stability of markets and restrain from increasing the liquidity.
David Lipton arrived in Tehran on Sunday. He was due to call on the Oil Minister Bijan Namdar Zangeneh, head of Management and Planning Organization, Mohammad Baqir Nobakht, and the chief of presidential staff, Mohammad Nahavandian. The IMF delegation was to also meet economists, bankers and business leaders, the CBI website reported.
http://financialtribune.com/articles/economy-business-and-markets/41687/imf-backs-iran-link-global-banking
