Global Economic Recovery Through Trade and Investment
Historically, periods of elevated geopolitical risks have been associated with sizable negative effects on global economic activity. Wars destroy human and physical capital, shift resources to less efficient uses, divert international trade and capital flows, and disrupt global supply chains.
A Keynote address presented by Dr Uchechukwu Sampson Ogah, President, Masters Energy Group at the Leadership Agenda Summit 2024
PROTOCOLS
Mr. Chairman, Your Excellencies, Distinguished guests, Ladies and Gentlemen,
Good morning to you all,
I stand before you today with a deep sense of responsibility and optimism as we collectively address one of the most pressing challenges of our time—the global economic recovery. In the face of unprecedented disruptions, our ability to rebound and thrive hinges significantly on fostering robust trade and investment practices.
1. Acknowledging the Challenges
Before we delve into the solutions, it is essential to acknowledge the challenges that have shaken the foundations of our economies. Let me begin with the year 20220. The COVID-19 pandemic, geopolitical tensions, and developments in Climate Change have tested our resilience. 2022 for instance, was the year when the global economy was expected to make what I call a landfall and recover from the mayhem unleashed by the COVID-19 pandemic. But then, Russia invaded Ukraine on February 24 and the global economy was pushed into the throes of uncertainty.
The war in Ukraine and ensuing Western sanctions against Russia stoked geopolitical tensions, sent energy and food prices soaring to record levels and disrupted supply chains, throwing a wrench into the global recovery.
As inflation climbed to multiyear highs, central banks were forced to tighten the money taps at a frenetic pace by increasing interest rates in the face of an already slowing economy, further boosting recession in 2023.
So, the addition of the ongoing Israel-Hamas war to an already overstretched global economy leaves little room for hope. The war is in its 117th day and there seems to be no hope in site as its implication for maritime trade worsens.
Historically, periods of elevated geopolitical risks have been associated with sizable negative effects on global economic activity. Wars destroy human and physical capital, shift resources to less efficient uses, divert international trade and capital flows, and disrupt global supply chains.
Historically, periods of elevated geopolitical risks have been associated with sizable negative effects on global economic activity. Wars destroy human and physical capital, shift resources to less efficient uses, divert international trade and capital flows, and disrupt global supply chains.
Yet, in the face of all this adversity, we find ourselves presented with an opportunity—a chance to reshape and strengthen our global economic landscape. We cannot despair, our world must leverage on the advantages that shore up as trade and investment opportunities amidst global challenges.
2. The Power of Trade
Trade has always been a catalyst for economic growth. As we embark on the journey of recovery, it is imperative that we leverage the power of international trade. Open markets and fair-trade practices can stimulate economic activity, create jobs, and fuel innovation. Let us commit to dismantling barriers and championing free and fair trade, ensuring that no nation is left behind.
In the course of preparing this address, an additional development surfaced on our west coast of Africa – the withdrawal of Mali, Burkina Faso and Niger from ECOWAS. This withdrawal is neither in the best interest of the three countries nor ECOWAS. ECOWAS is not responsible for regional security for member states. So, who do these three countries turn to for security? Maybe Russia or even China. Either way, the region will now face more severe challenges for security and movement of goods and services.
The leadership of ECOWAS has got to fix this problem before we begin to see massive capital flights from the subregion. Mali, Niger and Burkina Faso are landlocked countries that depend on ports in their ECOWAS neighbours for imports and exports. Leaving the bloc could see an increase in tariffs and could impact the free movement of their citizens and financial flows within the rest of the bloc.
3. The Role of Investment
Equally critical is the role of investment in rebuilding and fortifying global and regional economies. Investment serves as the lifeblood of innovation and development. We must create an environment that attracts both domestic and foreign investment, fostering entrepreneurship and driving technological advancements. Smart investments in sustainable practices will not only spur growth but also contribute to a more resilient and equitable future.
4. Collaboration for Success
Global economic recovery is not a solitary endeavour. It demands collaboration—between nations, industries, and sectors. We must forge partnerships that transcend borders and ideologies. By working together, we can capitalize on our collective strengths and mitigate shared challenges. Let us embrace a spirit of cooperation that transcends political differences and prioritizes the greater good.
5. Embracing Sustainable Practices
In our pursuit of economic recovery, we cannot afford to neglect the imperative of sustainability. Sustainable practices are not a luxury but a necessity for long-term prosperity. As we rebuild, let us invest in green technologies, prioritize environmental conservation, and foster social responsibility. This commitment will not only fortify our economies but also preserve our planet for future generations.
6. Empowering Developing Nations
A truly inclusive recovery is one that uplifts the most vulnerable. We must prioritize the needs of developing nations, providing them with the tools and resources necessary for sustainable growth. To reach sustainable goals, it is important to assist developing countries especially the ones in Africa to emphasize the development of productive capabilities through investments in infrastructure, agriculture, industry, manufacturing, and services sectors; Innovation, science, and technology; Upgrading value chains; Empowerment of youth and women; Sustainable. By being intentional about empowering these developing nations, we strengthen the entire global economic ecosystem.
7. Conclusion: Charting a Course for Resilience
In conclusion, the path to global economic recovery lies in our collective commitment to trade, investment, collaboration, and sustainability. Let us be architects of a resilient future—one built on the principles of openness, innovation, and shared prosperity.
We have a task at this conference today to brainstorm on these issues I have mentioned and a lot more that may truly be addressed through our recommendations at the policy level.
As we navigate these uncharted waters, let our actions today shape a world where economic recovery is not merely a return to the status quo but a transformative journey toward a more equitable and sustainable global economy.
Thank you.
Dr Uchechukwu Sampson Ogah, is the President, Masters Energy Group, Nigeria.
