Abu-Ghazaleh addressing the 12th Doha Forum: Look for Markets and Wealth South & East

31 May 2012





New trade paradigm: trade in knowledge as a new service is one of the key factors in the quest of developing countries for development in the 21st Century. The evidence is clear: those developing countries who have managed to plug into the networks of the global service economy have performed well even in times of crisis- Talal Abu-Ghazaleh



DOHA------May 31, 2012------HE Dr. Talal Abu-Ghazaleh, chairman of  Talal Abu-Ghazaleh Organization (TAG-Org) moderated the session entitled “Economy & Free Trade: What New World Order” which recently took place in  Doha part of the 12th Doha Forum inaugurated by His Highness Sheikh Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar.



The session discussed the Euro crisis impact on the global economy, the dialectic of free trade and development of national industry, balance of international economic powers in view of the emerging countries, the intraregional trade and economic integration and the economic challenges facing the Middle East.



Abu-Ghazaleh, was recently chosen by HE Mr. Pascal Lamy, Director-General of the WTO among the WTO 12 members Panel charged with examining and analyzing challenges to global trade opening in the 21st Century said that “New trade paradigm: trade in knowledge as a new service (not included in the services agreement) is one of the key factors in the quest of developing countries for development in the 21st Century. The evidence is clear: those developing countries who have managed to plug into the networks of the global service economy have performed well even in times of crisis.”



He pointed out that according to the Indian Economic Survey of 2011, for example, the Indian economy has been able to navigate the turbulent years of the global economic crisis because of the vitality of its new services which have grown over 10 percent annually over the past few years. What is true for India is also true for other emerging economies such as China, Brazil, Chile, Malaysia and others. It is even more remarkable that 47 percent of the growth in Sub- Saharan Africa in the past decade is accounted for by growth in services.



Abu-Ghazaleh called for the State of Qatar to become the domicile for the Arab Coalition of Services Industry in Doha which was announced during the UNCTAD 13th session that took place in Doha last month.



He added that there is a need to look more South-South and East-East (Emerging Economics and African Lions). NTMs, Doha Round, built in agenda and many new agenda items are on the table. Yet the knowledge world goes on with its trade outside the multilateral trading system.   



HE Mr. Yousef Hussein Kamal, Qatari Minister of Finance and Economy, who was one of the main speakers at the Forum called for the Middle Eastern countries to have "better relationships" with emerging economies such as China and India in future as they "provide the appropriate environment for investment". He added that if China and India maintain their growth rate (averaging 7% in the last seven years), they would create a huge middle class segment that would be similar to that in the US, China and India together represent a third of the world’s population.



The Minister noted that the region has a lot of "catching up to do" in terms of tackling problems such as growing unemployment and falling trade figures. "In the Arab world, our trade scene is not good…unemployment rates are high… and our debts are increasing. If we look at 2011, the total debt of some 15 Arab countries has gone up to 6% of GDP," he said.



Among the session speakers were, HE Dr Fathallah Wallalo, former Finance and Economy Minister, Pdt, Rabat Municipality, Morocco, HE Ms Rodi Kratsa, Member of the European Parliament, EP Vice-President (2007-2012), The Hon Lauri Fitz-Pegado, Partner, The Levingstone Group, former Secretary of State for Commerce, USA,  HE Mohamed Ismail Al Rabie, Secretary General, Arab Economic Unity Council, Arab League and Mr. Nadhim Zahawi, MP, Member of Business, Innovation and Skills 2010-, Arms Export Controls 2010-, Joint Committee on Privacy and Injunctions 2011.