Saudi Finance Minister Mohammed Al Jadaan appealed for a strong defense of multilateralism, warning of the challenges that global fragmentation poses to trade and humanitarian efforts.
Speaking at the Peterson Institute for International Economics Macro Week event, in Washington, D.C., on the sidelines of the 2024 International Monetary Fund (IMF) and World Bank Group (WBG) Annual Meetings, Saudi Minister of Finance, Mohammad Al Jadaan castigated trends away from multilateralism, free trade and international cooperation.
“We can see that the world is becoming more and more fragmented. It is more difficult to build consensus of digital security, trade, development and countless ambitions.” As a result of the expanded use and threat of tariffs worldwide, he said: “Nations are becoming more self-isolating. Some say that multilateralism has peaked. Some countries are now doubting that such co-operation is in their interest.” [Kyle Fitzgerald, The National]
Mr Al Jadaan is leading Saudi Arabia‘s delegation at the International Monetary Fund and World Bank Annual Meetings in Washington, where finance ministers and central bankers from around the world have gathered to discuss the state of the world economy and address issues that require global co-operation.
Commenting that one reason there is increasing isolation is unequal growth and productivity causing leaders to prioritize their own countries’ interests and not balancing domestic interests with those of other nations which may provide short-term benefits but have long-term consequences.
“And it would really be foolish, absolutely foolish, to waste these institutions. The current challenges and multilateralism gives us the space to think more broadly about how global institutions can serve all our interests.”
“It’s a real hypocrisy for an advanced economy with plenty of wealth to tell development banks to neglect support for African nations or other nations in Asia to actually utilize their own endowments?” He highlighted that while advanced economies continue to rely on the dirtiest forms of coal, there is an opportunity for these nations to utilize their resources more effectively. “If you allow them to use their own fossil fuel endowments, they will be able to help themselves, access cleaner cooking energy, improve connectivity, and find jobs without leaving home through the digital economy.” [Saudi Gazette]
Al-Jadaan emphasized the urgent need for reform in international organizations to adapt to global challenges such as poverty and inequality. He urged, “Multilateral development banks must focus their efforts on building technical capacities and providing the necessary support and advice.”
He also emphasized the urgent need for reform in international organizations to adapt to global challenges such as poverty and inequality. “Multilateral development banks must focus their efforts on building technical capacities and providing the necessary support and advice.”
“Institutional reform must continue to adjust quickly and decisively to solve tough problems such as poverty, inequality, price pressures and energy in ways which respects the new power structure and their diverse situations,” he said.
