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The International North-South Transport Corridor: Shifting Gears in Eurasian Connectivity

Grace Cheema

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As the centre of gravity of the global power play tilts towards its economic underlining,

issues like trade, connectivity and infrastructure have come to warrant greater significance in foreign policies. This holds particularly true in Central Asia where the need for investment coupled with its strategic geographical stretch has drawn increasing attention towards the potential of transport corridors as catalysts of economic integration and connectivity. While China’s colossal Belt and Road Initiative (BRI) has been at the centre of global attention, India, Iran and Russia have mapped out their own plans for a transcontinental transport corridor. The International North-South Transport Corridor (INSTC) is a landmark initiative for Eurasian connectivity. Twice as short as the traditional trade route between India and Russia, the corridor augments economic cooperation and gives sea access to land-locked member states in Central Asia. This paper seeks to advance an understanding of the development of the INSTC and examine its significance in the Asian transportation grid. In doing so, it analyses the geopolitical dynamics that underlie the project’s agenda, examines it in the context of the BRI, explores the stumbling blocks in its developments and comments on its future prospects while highlighting some recommended policy changes.

Bridging the Connectivity Gap

The International North-South Transport Corridor is a 7200 km-long multimodal transportation network that links the Indian Ocean to the Caspian Sea via the Persian Gulf onwards into Russia and Northern Europe. Launched as a joint initiative by India, Iran and Russia in 2000 and ratified by the three in 2002, the corridor has now expanded to include eleven more members, namely, Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Ukraine, Syria, Belarus, Oman and Bulgaria (observer status). The 2000 agreement was set in motion with the objectives of simplifying and developing transportation services, enhancing access to global markets and coordinating transit policies while also ameliorating route security. India’s accession to the Shanghai Cooperation Organisation (SCO) in 2017 and the Ashgabat Agreement in 2018 have only increased these connectivity prospects.

Figure 1: The INSTC route and the standard Suez route. Credit: Wikimedia Commons

Although the original agreement envisaged connecting India and Iran to Central Asia and Russia, the potential of the corridor to gradually envelop the Baltic, Nordic and even the Arctic regions is no longer far-fetched. The first or the central branch of the corridor of the INSTC begins from the Mumbai port in the Indian Ocean Region and connects to the Bandar Abbas and Chabahar ports on the Strait of Hormuz and then passing through the Iranian territory via Nowshahr, Amirabad and Bandar-e-Anzali, runs by the Caspian Sea to reach the Olya and Astrakhan Ports in Russia. The second or the western branch connects the railway network of Azerbaijan to that of Iran via the cross-border nodal points of Astara (Azerbaijan) and Astara (Iran) and further to India via sea route. The third or the eastern branch of the corridor connects Russia to India through the Central Asian countries of Kazakhstan, Uzbekistan and Turkmenistan. Notably, the INSTC is multimodal in nature, encompassing sea, road and rail routes in its network to offer the shortest route of connectivity for Eurasian cargo transport. Bereft of the INSTC, cargo between India and Russia moves either through the Netherlands’ port of Rotterdam or China’s Qingdao port which takes over 50 days for transit. The INSTC in its completion cuts this transit time down to about 16-21 days. It also offers a considerably shorter route than the Suez Canal transit passage which, besides being overloaded, is also much more expensive than the former. This was made apparent by the dry run conducted by the Federation of Freight Forwarders’ Association of India (FFFAI) in 2014 with the objective of discerning structural problems and missing links in the corridor. The study demonstrated that the INSTC was 30 percent cheaper and 40 percent shorter than the traditional Suez route, slashing the transit time to an average of 23 days for Europe-bound shipments from the 45-60 days taken by the latter. Although the study identified streamlining and coordination with allied agencies as some of the pitfalls, it ascertained that the corridor did not pose infrastructural or security hurdles in the maiden dry run. The second dry run, reportedly conducted in 2017, generated a similar sense of optimism.[1]

With an estimated capacity of 20-30 million tons of goods per year, the corridor facilitates transit and bolsters trade connectivity. But besides the more obvious benefits of increased trade, the time and cost savings coupled with access to new markets also translate into increased competitiveness in exports. This holds particularly true for the INSTC because unlike the BRI, the INSTC nations have a level-playing field, allowing for benefits to be distributed more evenly. For India, the corridor also augments its ‘Make in India’ initiative. Access to nations of the Eurasian Economic Union alone can offer it a market of 173 million people. Additionally, the corridor facilitates free trade agreements, opens new opportunities to engage with more regional trading blocs and in harmonising policies while bringing about a more uniform legal climate and enhances regional stability. 

Geopolitical Geometries

The INSTC acts as a gateway for India to reconnect with the resource-rich nations of Central Asia and Eurasia. It makes for one of the most salient aspects of India’s Connect Central Asia policy which was initiated by Indian policy markers in 2012 in a bid to revamp its ties with Central Asia. In a way, the INSTC serves the more proactive stance that the Indian foreign policy has come to adopt in recent years. For a long time, India’s westward connectivity had been disrupted by its contentious relations with Pakistan. In providing a direct link to the Iranian ports of Chabahar and Bandar Abbas, the INSTC allows the nation to bypass the Pakistan hurdle. Furthermore, it presents India with an opportunity to re-engage with Russia which, in the light of India’s increasingly cordial relations with the United States, has been advancing its relations with Pakistan. In 2018, bilateral trade between India and Russia stood at USD $8.2 billion, a dismal amount compared to the envisaged target of US $30 billion in bilateral trade by 2025. The need to re-energize trade coupled with the lack of a coterminous border renders the INSTC imperative for the two.

The INSTC also makes way for India to offset growing Chinese presence in the region. The partly Indian-built port of Chabahar in Iran is not only central to India’s connectivity to Central Asia but also holds significant strategic importance. Located just 72 kilometres west of the Pakistani port of Gwadar which has been developed under the BRI, Chabahar allows India to counter the Chinese strategic foothold in the Indian Ocean Region. The port is also pivotal for land-locked Afghanistan to unlock its trade potential and reduce its dependence on Islamabad. In this context, it is worthwhile to note that, positioned at the crossroads of the North-South and East-West transit corridors, Iran is the lynchpin to the success of the INSTC. Isolation of Iran in the wake of the U.S. sanctions then can inevitably put the actualisation of the INSTC in jeopardy. However, the signing of an MoU between the state-backed Container Corporation of India (Concor) and Russian Railways Logistics Joint Stock Company (RZD) in 2020 to transport cargo via the INSTC despite the threat of U.S. sanctions indicates a promising outlook for the full operationalisation of the corridor.

The geopolitical geometries of the INSTC are complicated not only by tangled relations with extra-regional players but also amongst the members themselves. Azerbaijan’s accession to the INSTC in 2005 spurred the corridor’s spread in the Caucasus and heralded the bridging of missing links like the Qazvin-Rasht-Astara railway line. Anticipating up to seven million tons of cargo transit through its territory in the medium term, Azerbaijan has agreed to finance $500 million for the project. But besides the economic benefits, the corridor also makes for a geopolitical asset for Azerbaijan in offering an opportunity to further isolate Armenia with which the country shares adversarial relations. The INSTC undermines Armenia’s own underfunded regional railroad initiative by providing more suitable economic dividends and linking Iran with Turkey via Georgia’s Black Sea Ports while bypassing those of Armenia with the Baku-Tbilisi-Kars route. Notably, for Armenia, the completion of the Armenia-Iran Railway Concession Project would bring colossal direct benefits for its economy by allowing it to avoid the Turkey and Azerbaijan blockade. However, given the paucity of funds, the Armenian project has remained only on paper. Another case in point is the possibility of friction in Russia-Iran relations in the future if a sanctions-free Iran makes headway in becoming an energy hub and gaining larger shares in the oil and gas markets of Europe which has been striving to reduce its dependence on Russian gas. Moreover, realities of the INSTC’s geopolitical geometries may complicate even further if the corridor expands to include countries from the Baltic and Nordic regions along with other interested states like Japan under its ambit. Nevertheless, given that the main argumentation behind the corridor is to reap commercial benefits, it is unlikely for the geopolitical rationale to override economic reasoning.

The INSTC and BRI: A Harmonious Grid?

The INSTC and China’s BRI are both colossal multi-modal undertakings which enhance economic connectivity and promote infrastructural growth. However, conceived almost a decade before the launch of the BRI,  the INSTC is a much older project. Unlike the BRI where China plays the role of the foreman, it follows a much more multilateral approach with multiple stakeholders participating on a level playing field. INSTC proposals are also devoid of ‘debt-trap’ fears which have often plagued the appeal of the BRI. While this makes the INSTC much more transparent and reliable and thereby increases its tenability in the long run, it also implies more constraints in its development process. The shortage of funds for constructing missing links in the corridor is one such example. As the helmsman of the BRI, China is not only willing to invest large sums into the project but is also willing to risk markedly low returns on its long-term investments. This, however, points to the concern that the entire project is a decisive strategic manoeuvre. For India, this holds particularly true for the CPEC stretch on the BRI whose Gwadar port is seen as a catalyst for China to gain a strategic foothold in the Indian Ocean Region. China’s bid to extend ties into Afghanistan and Iran have stirred these tensions further. Nonetheless, it is important to note that Iran’s growing ties with China need not necessarily come at the cost of India-Iran relations. Besides, the North-South axis of the INSTC can, in fact, complement the East-West axis of the BRI to make for a more cohesive transport grid in Eurasia. Although the INSTC and China’s BRI initiative are often pitted against each other, it must be understood that the two are not entirely incompatible with each other.

Bottlenecks and Constraints

Progress on the INSTC has taken place in fits and starts. Following the progress made in the first few years of its inception, development on the corridor slowed down from 2005 to 2012. Progress picked up the pace again after the sixth meeting of the INSTC members in 2012 and the project has been gradually gaining momentum since. Coincidently, this was the same year in which India launched its ‘Connect Central Asia’ initiative. One reason behind the sluggish pace of progress was the imposition of sanctions on Iran which isolated it on the global stage. The other major stumbling block has been the lack of financial backing. None of the three main participants has pockets deep enough to ensure unwavering funds for a project of this scale. Different stakeholders are funding different sub-projects creating structural and technical problems for the corridor owing to its disjointed nature. One such problem is the break of gauge issue. The standard railway gauge used by Iran, a central transit hub, is different from the broad gauge used by Russia and the Central Asian nations. For instance, the Rasht-Astara rail link requires a change of gauge from the standard one as the line crosses from Iran into Azerbaijan. This necessitates the need for more change of gauge facilities. The presence of multiple stakeholders creates other problems like customs control and documentation issues, lack of harmony in transportation laws and improper insurance coverage.[2] Moreover, the project still lacks an information exchange platform. This points to the absence of adequate digitalisation and private sector participation in the INSTC. Although the corridor has garnered interest from some companies like Deutsche Bahn, private sector involvement in the corridor has largely remained dormant owing to their concerns for steady returns on investment and security fears. The corridor passes through regions with critical security risks — be it instability in the conflict-ridden Caucasus, extremism in Afghanistan, domestic discord or forms of transnational organised crime like drug trafficking. This puts the security of cargo transit into question and few companies are willing to gamble with this risk, putting the project’s economic viability in jeopardy.

The Path to the Future

While the North-South Corridor holds immense potential, its full realisation is contingent on the resolution of the bottlenecks and constraints impeding its progress. Addressing these challenges requires closer cooperation with government agencies and private enterprises at both regional and international levels. First, it is imperative to understand that the main selling point of the corridor is commercial gain from increased connectivity. To this end, the INSTC members must avail and make practical and effective use of its complementarity with the existing grid of transnational corridors in Eurasia owing to the North-South axis that the corridor operates on. Synergy with other corridors will allow the INSTC to create additional positive economic spill-overs. Synchronisation with corridors of the Trans-European Transport Network such as the North-Sea Baltic corridor, with organisations like the Black Sea Economic Cooperation (BSEC) and other nations like Japan, Myanmar and Thailand can significantly enhance the outreach of the project. Second, the INSTC members must incorporate new digital technologies, launch a web portal for information exchange and build digital nodes along the corridor to turn it into a fully integrated networking system. One way of achieving this is to have India, with its robust IT sector, take the lead in the digitalisation of the corridor. The other is to push for greater participation from the private sector which is significantly more efficient in advanced technologies.[3] Third, infrastructural and technical issues must be resolved. Integration of logistics assets, provision of visa facilities, ease of gradients, aggregation of cargo bound in the return direction and increasing availability of change of gauge facilities are some steps in this direction. Fourth, it is equally important to work towards greater harmonisation of policies. This necessitates the creation of high-level working groups and adept integration of policies and laws. It is, however, important to ensure that changes introduced in the direction of legal harmonisation must not be integrated with local laws unexpectedly in a trice but rather in a step-by-step manner to ascertain a smooth transition. Only once these steps are undertaken and the existing bottlenecks removed, can the INSTC members expand the ambit of the project to include new domains like smart energy, blockchain technology, pipeline connectivity, and consider the prospects of extending the corridor to areas like North Africa and the Arctic region.

Conclusion

The International North-South Transport Corridor was initiated based on the vision of India, Russia and Iran to enhance strategic partnership and economic cooperation by augmenting connectivity through Central Asia. Although the initial progress was slow, the project has expanded dramatically to potentially increase its reach up to Northern Europe. Extending its geographical stretch to such an extent and tapping into its vast potential, however, is bound to be a time taking process. Questions over sanctions on Iran and Russia, the mustering of adequate economic wherewithal and lack of private participation still linger. Nonetheless, it would be unwise to judge the corridor’s capacity to deliver before it becomes fully operationalised. Given that development on the corridor is still underway, it can be easily modified to overcome structural problems. Cargo exchange and private participation are also bound to drum up further as Asia slowly develops into a larger consumer market itself. While this presents a positive outlook for the corridor’s future, its actualisation rests on the ability of the member states to maintain sustained efforts.


[1] Hriday Ch. Sharma, “Turning the International North-South Corridor into a ‘Digital Corridor’”, Comparative Politics Russia, 4 (2018), 125, 10.24411/2221-3279-2018-10008.

[2] “INSTC Conference-India 2015”, 87-94.

[3] Hriday Sharma, “Turning the International North-South Corridor into a ‘Digital Corridor’”, 124-138

Grace Cheema is a post-graduate student at the School of International Affairs, O.P. Jindal Global University, India. Her research interest lies in National security studies, Geoeconomic studies and International relations.

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Innovative ideas and investment opportunities needed to ensure a strong post-COVID recovery

MD Staff

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After the huge success of its opening day, AIM Digital, the first digital edition of the Annual Investment Meeting, continued to gain momentum as it reached Day 2. The three-day mega digital event, an initiative of the Ministry fo Economy, under the patronage of His Highness Sheikh Mohammed Bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, concluded its second day with interactive activities that catalysed investment-generation, knowledge-enhancement, and local, regional and international collaborations.

Joined by more than 15K participants from over 170 countries, including 70+ high-level dignitaries from across the globe, the second day of AIM Dıgital witnessed a wide range of major events, from the Conference, Exhibition, Investment Roundtables, and Regional Focus sessions to Conglomerate Presentations and Startups competitions; all geared towards providing opportunities to achieve a digital, sustainable & resilient future.

In his keynote speech in the FDI session, Ministers Roundtable: Adapting to the New Flow of Trade and Investment, His Excellency Dr. Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, said: “It is my distinct honor to welcome you to the UAE’s first-ever digital edition of the Annual Investment Meeting. Thank you to everyone participating, including our panelists from the Governments of Costa Rica, Canada, Nigeria and Russia. Today’s discussion on how countries are ensuring the free flow of trade and investment could not be more timely, especially as the world grapples with the economic recovery and moves toward building a more resilient, post-COVID economy. The pandemic has significantly impacted global markets that created new challenges for trade and investment. While the challenges ahead are enormous, the UAE sees tremendous opportunity for governments and business leaders to work together through trade and investment to reshape policies, create new partnerships, leverage new technologies, and build a future global economy that is more diverse, inclusive, and sustainable. We know that FDI can bring new technology and know-how, lead to new jobs and growth, and is often the largest source of finance for economies – making today’s discussion even more imperative.”

He further stated that FDI has played a critical role in the UAE’s economic growth, with policies and measures in place, such as the Foreign Direct Investment Law enacted in 2018 to further open the UAE market to investors in certain sectors, and the issuance of Positive List, which allows for greater foreign investment across 122 activities, and increasingthe UAE’s FDI value by 32% in 2019.  He also mentioned that the UAE came in 16th of 190 countries in the World Bank Ease of Doing Business 2020 Ranking due to the country’s digitization strategies and promising business regulatory environment.

His Excellency Al Zeyoudi furthered: “The UAE is continuing to refine and implement policies that will maximize competitiveness, increase collaboration, and provide opportunities to facilitate trade and investment. Our aim is to become the #1 country for foreign investment, target zero contribution from oil to our GDP in the next 50 years, and support research, development, and innovation. The UAE’s trade and investment strategy is centered on economic diversification and focuses on enhanced investment in industries such as communications, Blockchain, artificial intelligence, robotics, and genetics. We are also initiating measures to strengthen our position as a regional leader in supplying financial and logistical services, infrastructure, energy supplies, and other services.”

He added: “The UAE believes that increased partnership and cooperation with governments and the private sector will be key to achieving our objectives. We view platforms such as the Annual Investment Meeting as instrumental in bridging the gap between nations and supporting global efforts to strengthen international trade and investment. Through this platform, we hope that participants will uncover new, innovative ideas and investment opportunities needed to build back better and ensure a strong post-COVID recovery.”

Furthermore, world-class speakers shared their viewpoints in Day 2 of the Conference highlighting Foreign Direct Investment, Foreign Portfolio Investment, Small and Medium-sized Enterprises, Startups, Future Cities, and One Belt, One Road, including H.E. Amb. Mariam Yalwaji Katagum, Minister of State, Federal Ministry of Industry Trade and Investment of The Federal Republic of Nigeria; Victoria Hernández Mora, Ministry of Economy, Industry and Commerce of Republic of Costa Rica; Hon. Victor Fedeli,  Minister of Economic Development, Job Creation and Trade of Ontario, Canada; and Sergey Cheremin, Minister of Moscow City Government Head of Department for External Economic and International Relations, among others.

Two Investment Roundtables were also held successfully at the second day of AIM Digital, concluding  with strategies to facilitate sustainable, smart and scalable investments. The Energy Roundtable was led by Laszlo Varro, the Chief Economist of International Energy Agency, which works with countries around the globe to structure energy policies towards a secure and sustainable future. Among the notable participants include H.E. Arifin Tasrif,  Minister for Energy & Mineral Resources of the Republic of Indonesia; and H.E. Gabriel Obiang, the Minister of Mines and Hydrocarbons of Equatorial Guinea. The Agriculture Roundtable was led by Islamic Development Bank Group, the multilateral development bank working to promote social and economic development in Member countries and Muslim communities worldwide, delivering impact at scale.

In addition, the second set of National Winners competed on Day 2 of the AIM Global National Champions League. Overall,  a total of 65 countries competed at this international startups competition. The top five global champions that will win a total prize of USD50,000 will be announced on the last day of AIM Digital.The competition was launched in a bid to help startups in maximizing their potential to attract funding and promote their business ideas to a global audience, getting utmost exposure and expanding their network.

Participating in the Conglomerate Presentation feature of AIM Digital is Elsewedy Electric led by Eng. Ahmed Elsewedy, its President and CEO. Elsewedy Electric began as a manufacturer of electrical components in Egypt 80 years ago, and Electric has evolved into a global provider of energy, digital and infrastructure solutions with a turnover of EGP 46.6 billion in 2019, operating in five key business sectors, namely Wire & Cable, Electrical Products, Engineering & Construction, Smart Infrastructure and Infrastructure Investments. As part of its commitment to sustainability, it has established green energy and smart metering projects across Africa, the Middle East and Eastern Europe.

The Regional Focus Sessions featured the regions of Asia and Latin America and explored the risks, challenges and opportunities for growth and regional cooperation.  Regional Focus Session on Asia brought together government officials and investment authorities from the ASEAN Member States and discussed their strategies to create a borderless and sustainable bloc that will push organic growth, as well as their approaches to gain resilience in the economy. Regional Focus Session on Latin America highlighted the significance of regional and international partnerships to combat the current pandemic and boost trade, investments and employment within the region.

Moreover, Country Presentations on Day 2 presented the outstanding features and investment opportunities in Colombia, Egypt and the Federal Democratic Republic of Ethiopia which highlighted the countries’ status as attractive investment destinations.

Another highly anticipated event in the largest virtual gathering of the global investment community is the announcement of winners for the Investment Awards and Future Cities Awards which will take place on Day 3 of AIM Digital.AIM Investment Awards will grant recognition to the world’s best Investment Promotion Agencies and the best FDI projects in each region of the globe that have contributed to the economic growth and development of their markets.   Likewise, AIM Future Cities Awards will give tribute to the best smart city solutions providers and for outstanding projects that have resulted to enhanced operational efficiency and productivity, sustainability, and economic growth.

Day 1 of AIM Dıgital welcomed the presence of globally renowned personalities such as the UAE Minister of Economy, His Excellency Abdullah bin Touq Al Marri who emphasised the vision of UAE’s wise leadership for the post-COVID era, reflecting great significance to enhancing the readiness of the country’s government sector, raising efficiencies and performance at the federal and local levels. Keynote remarks were delivered by H.E. Juri Ratas, the Prime Minister of Republic of Estonia; H.E. Rustam Minnikhanov, the President of the Republic of Tatarstan; H.E. Dr. Bandar M. H. Hajjar, the President of Islamic Development Bank Group (IsDB Group); H.E. Mohammed Ali Al Shorafa Al Hammadi, the Chairman of Abu Dhabi Department of Economic Development (ADDED); and Dr. Mukhisa Kituyi, the Secretary-General of the United Nations Conference on Trade and Development (UNCTAD).

The UAE Minister of State for Entrepreneurship and SMEs, His Excellency Dr. Ahmad Belhoul Al Falasi, underlined in his Keynote Address for the SME Pillar, that it is crucial for Startups and SMEs to be given opportunities to bounce back from the impact of pandemic and provide a conducive environment that will empower them to have the capability of supporting growth and success.

The Global Leaders Debate featured prominent keynote debaters such as Armida Salsiah Alisjahbana, the Under-Secretary-General of the United Nations and Executive Secretary of United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP); Mohamed Alabbar, the Founder of Emaar Properties, Alabbar Enterprises and Noon.com; Mohammad Abdullah Abunayyan, the Chairman of ACWA Power; and Arkady Dvorkovich, the Chairman of Skolkovo Foundation, who discussed the strategies to restructure the economies in overcoming the consequences of the pandemic.

The first digital edition of the Annual Investment Meeting with the theme “Reimagining Economies: The Move Towards a Digital, Sustainable and Resilient Future, will be held until the 22nd of October 2020.

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H.E. Dr. Thani Al Zeyoudi: Our aim is to become the #1 country for foreign investment

MD Staff

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It is my distinct honor to welcome you to the UAE’s first-ever digital edition of the Annual Investment Meeting. Thank you to everyone participating, including our panelists from the Governments of Costa Rica, Canada, Nigeria and Russia. Today’s discussion on how countries are ensuring the free flow of trade and investment could not be more timely, especially as the world grapples with the economic recovery and moves toward building a more resilient, post-COVID economy.

As you know, the pandemic has significantly impacted global markets, creating new challenges for trade and investment. According to the United Nations’2020World Investment Report, global FDI flows are estimated to decrease by up to 40% this year, dropping well below their value of $1.54 trillion in 2019. This would bring global FDI below $1 trillion for the first time since 2005. Global FDI flows are expected to decline even further in 2021, by 5% to 10%, and only in 2022 do we expect to start seeing markets recover.

While the challenges ahead are enormous, the UAE sees tremendous opportunity for governments and business leaders to work together through trade and investment to reshape policies, create new partnerships, leverage new technologies, and build a future global economy that is more diverse, inclusive, and sustainable. We know that FDI can bring new technology and know-how, lead to new jobs and growth, and is often the largest source of finance for economies – making today’s discussion even more imperative.

For the UAE, FDI has played a critical role in our economic growth. In 2019, the UAE was the largest recipient of FDI in the region, largely due to our increased focus over the years on enhancing local conditions to attract FDI. With policies and measures in place, such as our Foreign Direct Investment Law enacted in 2018 to further open the UAE market to investors in certain sectors, and the issuance of our Positive List, which allows for greater foreign investment across 122 activities, the UAE was able to increase our FDI value by 32% in 2019. The UAE also came in 16th of 190 countries in the World Bank Ease of Doing Business 2020 Ranking due to our digitization strategies and promising business regulatory environment.

The UAE is continuing to refine and implement policies that will maximize competitiveness, increase collaboration, and provide opportunities to facilitate trade and investment. Our aim is to become the #1 country for foreign investment, target zero contribution from oil to our GDP in the next 50 years, and support research, development, and innovation. The UAE’s trade and investment strategy is centered on economic diversification and focuses on enhanced investment in industries such as communications, Blockchain, artificial intelligence, robotics, and genetics. We are also initiating measures to strengthen our position as a regional leader in supplying financial and logistical services, infrastructure, energy supplies, and other services.

The UAE believes that increased partnership and cooperation with governments and the private sector will be key to achieving our objectives. We view platforms such as the Annual Investment Meeting as instrumental in bridging the gap between nations and supporting global efforts to strengthen international trade and investment. Through this platform, we hope that participants will uncover new, innovative ideas and investment opportunities needed to build back better and ensure a strong post-COVID recovery.

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Future Economy: Upskilling Exporters & Reskilling Manufacturers

Naseem Javed

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Pandemic recovery is now openly calling global thought leaderships to speak up and enter their bold debates on national/global economic development issues to foster grassroots prosperity to avoid a billion displaced magnetized to populism. Seriously missed during the last decade, collaborative synthesizing with diversity and tolerance and wrongly replaced by seek and destroy economics creating trade wars… now is the time to cooperate, upskilling, and reskill working citizens of all nations.  

The United Nations should lead with a global mandate…

Upskilling Exporters: When exporters in any country suffer lack of market share and their lower prices bringing in lower profits because of lack of quality upskilling and reskilling becomes mandatory. When innovative excellence is parked under the umbrella of entrepreneurialism national mobilization becomes number one priority. The pandemic recoveries across the world coping with a billion displaced all have now critical needs of both upskilling and reskilling. Upskilling is the process of learning new skills to achieve new thinking. Reskilling is the process of learning new skills to achieve new performances. Today, in super advanced and globally competitive markets raw hard work will not achieve global competitiveness only upskilling and reskilling will create a sharp edge.

Reskilling Manufacturers: When factories start having larger warehouses to hold unsold inventories and when production commoditized and price becomes the only deciding factor, reskilling on “real value creation” becomes mandatory. Advanced Manufacturing Clusters in various nations will greatly help, but understanding of global-age expansion of value offerings with fine production is a new art and commercialization to 200 nations a new science.

Now under the patronage of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, The Annual Investment Meeting, organized by the UAE Ministry of Economy, scheduled to be held from 20th to 22nd October 2020.. The AIM under the theme “Reimagining Economies: The Move towards a Digital, Sustainable and Resilient Future.” This is a gathering of the global investment community with participants attending from more than 170 countries. The conference addresses multiple issues on FDI, national digitization and uplifting SME and midsize business economies with great speakers from around the world.

The future of economies, exports, Chambers of Commerce, Trade Associations and SME and midsize economic developments all called for bold and open regular debates. The zoomerang impact of global thought leadership now forcing institutions to become armchair Keynote speakers and Panelists to deliberate wisdom from the comfort of their homes round the clock events… study how Pentiana and Expothon Project tabled advanced thinking on such trends during the last decade. For fast track results, follow the trail of silence and help thought leadership to engage in bold and open debates and help show them guidance to overcome their fears of transformation. The arrival of Virtual leadership and Zoomerang culture is a gift from pandemic recovery, acquiring mastery.

The Difficult Questions: Nation-by-nation,when 50% of frontline teams need ‘upskilling’ while 50% of the back-up teams need ‘reskilling’ how do you open discussions leading to workable and productive programs? Each stage challenges competency levels and each stage offers options to up skill for better performances. Talent gaps need fast track closing and global-age skills need widening. New flat hierarchical models provide wide-open career paths and higher performance rewards in post pandemic recovery phases. When executed properly such exercises match new skills and talents with the right targeted challenges of the business models and market conditions. The ultimate objective of “extreme value creation” in any enterprise must eliminate the practices of ‘extreme value manipulations”. Study of the last top 10 highly exposed global scale corporate scandals on ‘value manipulation’ spanning years and decades and recognize their fake reign of legitimacy during such traps as lessons. Economies around the world solely based on ‘value manipulations’ are not economies, they are schemes. The billion displaced need optimization and upskilling to contribute to real value creation.

The upskilled and reskilled in platform economies are agile builders of the future workforce.  Study the major cycles of the last century, how in the 70s and 80s billions trained on desktop computers for the world to enter the “Digital Age”. Best career paths now based on digital trajectory matched with critical thinking and complex problem solving when all combined will boost the enterprise to newer heights. The economies of the future must declare upskilling of national citizens as prime mandate.

All transformations must start from the very top; nation-by-nationtrue upskilling and reskilling cascading with new vision and with pragmatic solutions to precisely enhance skills to match the digital age and our smart world. The culture must embrace upskilling and reskilling as a daily open routine of lifelong learning and future planning to carve a distinct position in the marketplace. Study ‘national mobilization of entrepreneurialism’ on Google. A very bright future awaits. The rest is easy. 

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