World Economic Journal (WEJ#43)

SEPTEMBER-OCTOBER 2024 (WEJ #43)

THE PREMIER COMPANY RANKING OF THE EMERGING WORLD

JEFFREY SACHS “SUSTAINABLE DEVELOPMENT IS ACHIEVABLE, BUT IT WILL REQUIRE NEW FORMS OF POLITICS AND GEOPOLITICS”

[ IN SIDE]

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[ IN FOCUS ]

JEFFREY SACHS

[ SUSTAINABILITY ]

INCLUSIVE BUSINESS MODEL

[ FINANCE ]

BEYOND WALL STREET

92 4 8 12

60 [ BUSINESS ]

HOW BIG REALLY IS 250 MILLION PEOPLE?

[ SOCIETY ]

[ ANALYTICS ]

15

WILL THE «GLOBAL SOUTH» REVOLUTIONISE EDUCATION?

EMERGING MARKETS

38

[ AWARDS ]

CENTRAL ASIA

44

BRICS 250 RANKING

[ ECONOMY ]

10 CUTTING-EDGE URBAN SOLUTIONS FOR ACHIEVING THE SDGS

50

CRYPTOCURRENCIES

60

MARKETS CHINA, EGYPT, ARGENTINA, INDIA 2

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WEJ | September - October 2024

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HONORING LEADERS IN SUSTAINABLE DEVELOPMENT THE WORLD INNOVATION AWARD 2024

[ TECHNOLOGY ]

AS THE WORLD MOVES EAST

[ PERSON ]

BRUNO COLMANT

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80 88 92

44 Editor-in-Chief Robert Abdullah Editorial Team Adrien Henni, Mohamed al-Afdal, Stanislav Akhmedzyanov, Hisham Allam, Teuvo Alonen, Lena Amos, Matt Barlow, Max Bulakovsky, Maxime Duhommet, Peter Frerichs, Saad Hasan, Abbas Kazmi, Rainer Michael, Marion Moreau, Patrick Mzungu, McKinley Richards, Victoria Soll, Aram Shatverov, Kwame Yamgnane Design by Gera Lu Editorial Office’s Addresses 7/F, MW Tower, 111 Bonham Strand, Sheung Wan, Hong Kong; 61 Kulatova str., Bishkek city, Kyrgyz Republic;

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Tel./ fax: +996503797790 e-mail: editorial@world-economic.com www.world-economic.com Establisher Global Publisher: World Economic Journal WEJ Limited: 7/F, MW Tower, 111 Bonham Strand, Sheung Wan, Hong Kong;

[ TECHNOLOGY ]

HOW SAUDI ARABIA IS MAKING ITS MARK IN THE GLOBAL AI LEADERSHIP RACE

94

[ NEWS ]

WILL SOUTH AFRICA’S NEW COALITION GOVERNMENT BREAK THE MOULD?

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BRICS URBAN FUTURE FORUM IN MOSCOW&BRICS SUMMIT IN KAZAN

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EVENTS SEPTEMBER - NOVEMBER 2024

104

DR. RAEKWON CHUNG

Fonts: Adobe Fonts ISSN No2219-6374 The journal is published since 2009.

The journal is published on a monthly basis.

[ TRENDS ]

[ WORDS ]

Publisher in Central Asia and South Caucasus under WEJ license: “World Organization for Development” LLC: 61 Kulatova str., Bishkek city, Kyrgyz Republic;

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The authors’ opinions may differ from those of the editors. No part of this publication may be reproduced or used in any form without prior permission in writing from the editor.

No responsibility for the content of the advertising materials can be accepted by the editors.

All the enclosures to the journal are made for publicity purposes.

Cover photo by JOEL SAGET / AFP

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PHOTO: KATIE ORLINSKY/BLOOMBERG VIA GETTYIMAGES

[ IN FOCUS]

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WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

JEFFREY SACHS

«The end of the West’s dominance means greater equality of wealth, prosperity and power»

By Adrien Henni

P

rofessor Jeffrey Sachs, a renowned eco-nomist and leading voice on global sustainable development, shared with WEJ his thought-provoking analysis of the evolving geopolitical environment, the rising influence of BRICS nations and the path forward for achieving the SDGs. Considering the current global environment, how do you foresee the US dollar maintaining its central role in the global economy and supporting US leadership?

The US dollar is of course the dominant currency today, but I believe that this dominance will end over the next 10-20 years as we move to a multi-currency global system. There are three reasons. First, and most importantly, the US has weaponized the dollar by confiscating the dollar holdings of other governments (Russia, Venezuela, Afghanistan, Iran, and others), leading the BRICS nations to construct a non-dollar settlements system.

Jeffrey Sachs is a University Professor and the Director of the Center for Sustainable Development at Columbia University.

He also serves as President of the UN Sustainable Development Solutions Network, Co-Chair of the Council of Engineers for the Energy Transition, and SDG Advocate for UN Secretary General António Guterres, among many other positions.

He has been honoured with the Tang Prize in Sustainable Development (2022) and was co-recipient of the Blue Planet Prize (2015).

5

[ IN FOCUS] Second, the US share of the world economy is also declining over time. Third, technological innovations—especially the development of real-time digital settlements using central bank digital currencies (CBDCs)—will mean that the global banking system will decline in importance for settlements, while the world’s central banks will rise in importance. That change will diminish the role of the dollar, which is based in part on the role of dollar-based commercial banking.

In the realm of technology, do you believe emerging power centres could pose a significant challenge to US dominance?

The world’s three main centres of technological innovation are clearly the US, EU, and northeast Asia (China, Japan, Korea). I believe that China, Japan and Korea will become more closely integrated economically and politically over time, and that northeast Asia will become the world’s largest integrated region for both innovation and manufacturing of cutting-edge green and digital technologies.

ternational cooperation mechanisms fully adequate for this purpose?

The UN system should play a major role in creating and supporting new mechanisms for international cooperation.

To serve its purposes effectively, the UN needs far greater financial firepower (a larger budget and the capacity to mobilise global savings). Next year’s Financing for Development Summit (Madrid, June 30-July 3) is an important occasion to strengthen the financing of the UN system in support of global sustainable development.

You recently highlighted that «vigorous global cooperation is the only way to achieve the Sustainable Development Goals.» How do you envision this cooperation being effectively achieved?

The world has adopted many crucial goals, including the Sustainable Development Goals, the Paris Climate Agreement, The Kunming-Montreal Biodiversity Framework, Nuclear Non-Proliferation and Disarmament, and others.

Yet we are not achieving these goals. We urgently need practical solutions—to achieve the goals that are crucial for the world’s future wellbeing, indeed crucial for the survival of humanity.

I believe sustainable development is achievable—but it will require new forms of politics and geopolitics, and a reformed global financial architecture. The main barrier to global cooperation is actually the current attitude of the US government. During the past three decades, the US tried to assert a USled, unipolar world rather than a UN-led, multipolar world. This US quest for unipolarity has failed, and has dramatically raised tensions between the US and China, Russia, Iran, and other powers.

These tensions need to be overcome, mainly by the US finally accepting a truly multipolar world that engages in cooperative problem-solving at all scales—from local communities to cities, provinces, nations, multi-country regions, and globally according to the UN Charter.

I believe sustainable development is achievable—but it will require new forms of politics and geopolitics, and a reformed global financial architecture The global influence of BRICS and other emerging nations is growing. Could this shift lead to positive changes in international governance? Or is there a risk of increased international fragmentation and destabilisation?

Starting around 1500, the West began a long-term rise in power and technological leadership, leading eventually to the dominance of the West over Asia by the mid-1800s. That dominance is now ending, and this is a beneficial change.

It means greater fairness and equality of wealth, prosperity and power. It should lead to the end of poverty.

Yet we need to ensure that this favourable trend leads not to a defensive war by the West to maintain its hegemony, but rather to a peaceful transition to a multipolar world under the UN Charter.

Emerging countries and cities have much to learn from each other, and accomplish together. Are the current in-

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WEJ | September - October 2024

How should the media contribute to reshaping global information flows with a forward-looking approach?

Leading media initiatives, such as World Economic Journal, can maximise impact by highlighting practical and workable solutions for the great challenges of our time: ending extreme poverty, quality education for all, quality healthcare for all, peaceful cooperation among the major powers, nuclear disarmament, peaceful resolution of crises, environmental sustainability, and others.

[ SUSTAINABILITY ]

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WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

INCLUSIVE BUSINESS MODEL

A new holy grail for sustainable development?

By Max Bulakovsky

Max Bulakovsky, a development practitioner with around 20 years of experience in Asia, the Middle East and Northern Africa, has a strong interest in social innovation and inclusive ventures. He is currently employed by an international organisation. This article is written in his personal capacity.

I

n a remote corner of India, deep in the Araku Valley, a remarkable transformation is unfolding. What was once a poverty-stricken agricultural area, home to vulnerable tribal groups, has turned into a thriving community of high-grade coffee producers, selling their product in markets as far-reaching as Paris and deserving a mention in The Economist.

The catalyst for this change? An inclusive business model that empowers local farmers to transcend their previous limitations.

The story of Araku Coffee is not an isolated one. Across the globe, companies are embracing the concept of inclusive business—an approach that integrates low-income communities into the value chain as suppliers, distributors, and consumers. This model is not only proving to be profitable but is also making significant strides in addressing poverty, fostering social inclusion, and contributing to sustainable development. In essence, it represents a critical pathway toward achieving the UN’s Sustainable Development Goals (SDGs).

Inclusive business models are rapidly gaining recognition as efficient strategies for sustainable economic development. These models are premised on the idea that businesses can achieve

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[ SUSTAINABILITY ] the bank has helped millions of people escape poverty, demonstrating that financial inclusion can be a profitable and scalable enterprise.

For many large companies, inclusive business models can be seen as a practical approach to implementing the “Shared Value” concept. Its authors Michael Porter and Mark Kramer argued (HBR, 2011) that companies can move beyond corporate social responsibility and gain competitive advantage by including social and environmental considerations in their strategies.

The relevance of inclusive business to the SDGs cannot be overstated. With a particular focus on poverty reduction, these models directly contribute to SDG 1 (No Poverty) by creating income-generating opportunities for low-income communities. By integrating marginalised groups into their value chains, businesses can uplift these communities economically and improve their quality of life.

The concept of inclusive business has gained traction among policymakers globally.

In 2015, the G20, recognising its potential to drive sustainable development, established a working group to develop a policy framework for promoting inclusive business practices. The move underscored the notion that inclusive business models are not just a private sector initiative but a significant component of global development policy.

For many large companies, inclusive business models can be seen as a practical approach to implementing the “Shared Value” concept profitability while also delivering social and environmental benefits. This dual focus on financial returns and social impact sets inclusive businesses apart from traditional corporate social responsibility (CSR) initiatives, which often treat social goals as secondary to financial performance.

FROM MICROFINANCE TO LARGE COMPANIES

Microfinance institutions offer a prominent example of an inclusive business model. These entities provide financial services to underserved populations, enabling them to start businesses, improve their livelihoods and contribute to economic growth. The Grameen Bank in Bangladesh, founded

by Nobel laureate Muhammad Yunus, pioneered this model. By offering microloans to the poor, particularly women,

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WEJ | September - October 2024

ACROSS INDUSTRIES

Inclusive business models are not limited to any single sector. They are being successfully implemented across various industries, including agriculture, healthcare, financial services, energy, and more.

In agriculture, contract farming and fair-trade practices enable smallholder farmers to access global markets, secure fair prices and improve their livelihoods. Araku Coffee

WORLD ECONOMIC JOURNAL

is a prime example of how inclusive business can transform agricultural communities. By providing training and support to local farmers, the company has helped them grow higher-quality coffee, which it then buys at premium prices.

This approach not only enhances the farmers' income but also ensures a sustainable supply of high-grade coffee for the company.

In financial services, microfinance organisations are not the only examples of inclusive business models. Mobile banking platforms are also revolutionising access to finance, enabling broader groups of individuals, and small enterprises to actively participate in the economy.

BanhJi, a Cambodian FinTech, facilitates the integration of micro and small enterprises into formal financial markets, providing the required accounting software and within a broad range of financial services. Its vision is to “reduce the Cambodian MSMEs $3.7 billion financing gap.”

One of the strengths of inclusive business models lies in their potential for innovation. By concentrating on the needs of low-income communities, these models drive the creation of new products, services and delivery mechanisms that are both affordable and tailored to underserved markets. This often leads to creating entirely new market

segments, offering businesses a competitive edge and increased profitability. In many cases, these innovations, initially designed for low-income consumers, later found success among higher-income groups as well1.

Certainly, inclusive business models are not a cureall for the world's challenges. While acknowledging their potential, some studies, like that of Mangnus (2023), have indicated that their impact on the livelihoods of marginalised communities can vary. Different groups within these communities experience diverse effects, depending on the specific objectives of the model's design.

Nevertheless, inclusive business models undeniably offer a valuable approach to achieving sustainable and inclusive development, especially in Asia and Africa. Southeast Asia, in particular, has emerged as a pioneer in this area, with several ASEAN governments integrating inclusive business models into their development strategies and implementing related policies.

For instance, Danone collaborated with Grameen in Bangladesh to produce affordable, nutrient-rich yogurts aimed at addressing childhood malnutrition. The insights gained from this initiative enabled Danone to introduce health-focused products in higher-income markets, such as fortified yogurts and functional foods, emphasising both affordability and health benefits to a wider audience.

1

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[ FINANCE ]

BEYOND T WALL STREET Time to reevaluate global investment strategies?

By Bainer Michael Preiss

he ancient Romans once claimed, "All roads lead to Rome," reflecting their dominance over a significant part of the world.

Since World War II, a similar notion has applied to global capital and financial markets, where all roads lead to New York City and Washington D.C. Throughout much of the past decade, the US stock market, particularly the tech sector, has taken the lead globally. The US dollar has reigned supreme in the 24/7 global foreign exchange market, and over the last five years, the S&P 500 index (SPY) has outpaced the MSCI World Index (URTH) by an impressive 22.79%.

Even in 2024, the US market has outperformed global equities by 3.35% year-to-date. Many investors worldwide continue to favor international investments, particularly in US markets, over their domestic and local stock markets.

However, how much longer, given the world’s current evolutions, can US markets maintain their dominance and outperformance?

In the short term, concerns have arisen due to a weaker-than-expected US labor market, sparking fears of a recession. The Sahm rule—indicating a recession when the US unemployment rate's three-month moving average rises by 0.5 percentage points over the previous 12 months—has become a reliable predictor, despite limited signs so far of an economic slowdown. With the US accounting for approximately 20% of global GDP and 16% of global consumption, fears of a downturn have rippled across world markets, affecting commodity prices.

Moreover, the upcoming November US elections could introduce unpredictable effects on both domestic and global economies. Global investors might find it prudent to consider the potential impact of 'Trumponomics' on Forex markets, Wall Street, sovereign debt, gold, crude oil, and copper.

If history serves as a guide, the themes emerging in the latter half of 2024 suggest that a 'Trump 2.0' scenario could lead to significant shifts in asset prices, geopolitics, and global money flows.

IN THE ‘REST OF THE WORLD’

Based in Singapore, Rainer Michael Preiss is Partner & Portfolio Strategist at DAS Family Office

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WEJ | September - October 2024

Outside the USA, the planet continues to develop, challenging both the global dominance of the well-established financial markets and potentially reducing, or even potentially reversing, the performance gap between the US and global markets.

As Asian markets, in particular, continue to mature, they could become viable alternatives to US markets. Notably, Red China now boasts more publicly listed companies

PHOTO: SPENCER PLATT/GETTY IMAGES

A 'Trump 2.0' scenario could lead to significant shifts in asset prices, geopolitics, and global money flows than the United States, "the land of the free." This achievement is largely due to the rapid growth of China's domestic markets and the establishment of new stock exchanges, such as the STAR Market, which focuses on technology and innovation-driven enterprises.

According to Bloomberg data, while the Malaysian market underperformed the USA market by -80% over the last five years, it began outperforming it in 2024. The trend, partly driven by Malaysian employees and pension funds allocating more capital to the domestic market, could be long-lasting.

It’s true that in South Korea, many investors still focus primarily, if not exclusively, on US markets. But this, too, could change over time, with banks and stock brokers launching campaigns like "Korea buys Korea" to encourage local stock market investments.

Singapore and Malaysia have introduced initiatives to boost local currency stock markets. Singapore, in particular, has formed a central bank task force to enhance liquidity in its stock market. The Monetary Authority of Singapore (MAS) is unique among central banks, as it simultaneously functions as a central bank, finance ministry, and regulatory authority.

DE-DOLLARISATION AND TECHNOLOGY SHIFTS

De-dollarisation trends pose another threat to the dominance of US capital markets, potentially accelerating due to geopolitical tensions and the rising acceptance of alterna-

tive currencies like the Singapore dollar, Malaysia’s ringgit, and South Africa’s rand.

By enabling the emergence of global financial platforms that bypass traditional capital markets, advances in blockchain and decentralized finance (DeFi) are also likely to diminish, in the long term, the influence of traditional market intermediaries, including those in the US. From a broader perspective, technological shifts will inevitably create geopolitical impacts. In the first half of this year, according to GlobalData, the USA secured over half of global high-value VC investments, reflecting its strong innovation ecosystem. But as competing powers' efforts to attain technological leadership become increasingly credible, how will the US sustain its economic and military dominance in the long term?

The relationship between US equities and international equities is intricate and influenced by global economic conditions, geopolitical events, currency fluctuations, and market sentiment. Understanding this relationship is vital for diversifying investments, managing risk and seizing global growth opportunities. Proper asset allocation and awareness of the inherent risks in passive investment strategies like index hugging are crucial for the performance of a multi-asset portfolio.

To preserve the purchasing power of savings and retirement portfolios, it is essential to identify emerging trends and recognize that unexpected or unthinkable events can occur, regardless of our beliefs.

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We are committed to being the best partners and catalysts for revolutionary companies and pioneering entrepreneurs.

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WEJ | September - October 2024

WEJ’S

RANKING

THE INAUGURAL RANKING OF THE MOST INFLUENTIAL BRICS COMPANIES SHEDS LIGHT ON THE FUTURE OF THE GLOBAL ECONOMY THROUGH AN ANALYSIS OF FINANCIAL PERFORMANCE, COMMITMENT TO SUSTAINABILITY AND TECHNOLOGICAL EXCELLENCE.

[ANALYTICS]

BRICS 250: Merging financial success with sustainable growth in emerging markets BRICS 250 METHODOLOGY

In a world where sustainable development is increasingly prioritised, the establishment of the BRICS 250 ranking is a contribution to global cooperation and progress, with experts from various countries evaluating and ranking the largest companies from BRICS nations.

The analysis and evaluation of companies are primarily based on their financial and ESG reports. Additionally, only the most reliable data sources have been utilised, including government databases and authoritative international ratings and indices.

The set of evaluation criteria includes market capitalisation, revenue and corporate strategy, as well as the implementation of ESG activities. Particular emphasis is placed on the company's use of renewable energy, waste management practices, 'green' investments and inclusive corporate policies.

This ranking, in itself, serves as a call for greater transparency and accountability in business, as well as proactive measures towards sustainable development. It also offers valuable insights to investors and governments, aiding them in making informed decisions that benefit society and the environment.

Determined by stringent selection criteria, the BRICS 250 features the largest national companies that have a substantial economic and societal impact.

This innovative ranking has the potential to reshape corporate approaches to social and environmental responsibility while paving the way for future growth and innovation

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WEJ | September - October 2024

Given the diversity of the BRICS economies, we screened each market to identify the largest and most influential players in each country. Our analysis concentrated on companies with high market capitalization, assuming these entities have the capacity to allocate significant resources towards sustainable policies, with the goal of positively affecting their communities and the environment.

Recognising adherence to ESG principles as equally important as financial performance, we examined each company’s strategy and action in addressing social and environmental challenges. We requested companies to provide specific information about their tangible efforts in this field. We paid special attention to their initiatives aimed at reducing carbon emissions, improving working conditions and enhancing transparency in governance.

WORLD ECONOMIC JOURNAL

To ensure an objective assessment of companies, the following indicators have been used:

1

BUSINESS PERFORMANCE SCORE

2

FUTURE SCORE

This indicator includes two metrics related to the company's economic strength: Market capitalization based on purchasing power parity (PPP): this indicator allows for comparisons between companies from different countries, considering differences in price levels and incomes.

This approach provides a more precise depiction of a company’s actual value in relation to its national economy; Normalised revenue-to-GDP ratio based on purchasing power parity: this indicator helps evaluate how effectively a company generates revenue in relation to the overall state of the country's economy. A high value for this metric may suggest that the company makes a significant contribution to the national economy.

This set of metrics is designed to reflect the extent to which a company is focused on the future.

Developed with the help of high level experts and researchers, this Score takes into account the following: Share of high-tech and R&D investments in relation to the company’s total investments and in comparison with other companies; Share of SDG/ESG investments in relation to the company’s total investments and in comparison with other companies; Existence and level of SDG/ESG-related certifications; Overall quality and long-term outlook of the corporate strategy.

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ESG SCORE

Our approach to ESG relied on a series of metrics that evaluate a corporation’s compliance with the UN’s SDGs. These metrics have been split into three groups: Environmental indicators: CO2 emissions levels, use of renewable energy sources, waste recycling programs; Social indicators: working conditions, human rights compliance, participation in social initiatives; Governance indicators: transparency of reporting, appointment of independent directors, adherence to corporate standards.

• Employee Social Protection Score: Assessment of the extent of social protection for employees, encompassing health insurance, pension plans and other benefits; • Corporate Governance Score: Assessment of the quality of corporate governance, including transparency, accountability and ethical standards; •C orporate Governance Implementation Score: Assessment of the success of implementing corporate governance principles in company practice; •C orporate Governance Maturity Score: Assessment of the maturity of corporate governance systems, including their development and agility; These indicators are the following: •C orporate Governance Transparen• Ecological Strategy Score: Assessment cy Score: Assessment of transparenof the effectiveness and integrity of a cy in corporate governance, includcompany's pro-environment strategy, ing the availability of information to including goals related to reducing its shareholders and the public; ecological footprint; • C orporate Governance Superviso• Ecological Strategy Implementation ry Score: Assessment of the effectiveScore: Assessment of how successfully ness of supervisory bodies and coma company implements its pro-environmittees in corporate governance; ment strategy in practice; •E SG Investments Share: Share of in• Renewable Energy Usage: Proportion vestments in projects that meet enviof a company's total energy consumpronmental, social and governance crition that comes from renewable sources, teria in total company investments; such as solar and wind; •S ustainable Development Certifica• Waste Management Efficiency Score: tion: Existence of certifications or othAssessment of waste management effier recognitions of a company's comciency, including recycling, disposal and mitment to sustainable development waste generation reduction; principles; •G reen Investments Score: Assessment •A dvanced Tech Investments Share: of the share of investments in environShare of investments in advanced ment-friendly and sustainable projects; technologies that foster innovation • Social Strategy Score: Assessment of a and higher efficiency in total compacompany's strategy in social matters, inny investments; cluding community engagement and •C orporate Strategy Quality Score: support for social initiatives; Assessment of the quality of corpo• Social Strategy Implementation Score: rate strategy, including its clarity, realAssessment of how successfully a comism and adaptability. pany implements its social strategy in practice; These indicators offer a comprehen• Pay Equity Score: Assessment of pay eqsive and multifaceted overview of comuity across compensation plans for empanies’ commitment to sustainable deployees of different genders, races and velopment goals. In the case of cities, other groups; we used the City GRP (Gross Regional • Labour Safety Score: Assessment of the Product), which measures the total vallevel of labour safety, including meaue of goods and services produced in sures to prevent accidents and safethe city over a specific period. guard employee health;

The diversity of existing ESG-related indicators and the lack of universally accepted formal guidelines for corporate ESG policies made our research more challenging. The complexity was further amplified by the varying cultural and social landscapes within BRICS countries.

WEJ focused on a select set of indicators—those most commonly found in corporate ESG reports globally and aligned with the UN’s (SDGs).

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[ANALYTICS]

BRICS 250 Distinctive Features Our objective was not to produce 'just another list of large companies.' Rather, BRICS 250 aims to pinpoint the key nodes within the BRICS business ecosystem and highlight the leaders who are advancing sustainable development through technology, with a focus on people.

1

INTEGRATION OF FINANCIAL SUCCESS AND SUSTAINABLE DEVELOPMENT

2

FOCUS ON EMERGING MARKETS

BRICS 250 is a unique combination of traditional financial metrics with indicators of corporate social responsibility (CSR) and sustainable development. This holistic approach provides a more comprehensive picture of a company's success, emphasising that profitability should not come at the expense of social and environmental responsibilities. By integrating these dimensions, the ranking aims to inspire companies to excel not only in financial performance but also in their contributions to society and the planet.

The ranking shines a spotlight on leaders in sustainable development within emerging markets, particularly in the BRICS nations. This focus is essential, as these countries possess significant growth potential and face unique challenges in balancing economic development with sustainability.

By highlighting exemplary companies in this region, BRICS 250 fosters a competitive environment that inspires others to adopt best practices and invest in sustainable solutions, ultimately driving progress across the developing world.

3

INCREASED TRANSPARENCY

One of the distinctive features of the BRICS 250 ranking is its emphasis on transparency regarding ESG practices. By encouraging companies to disclose their CSR efforts and sustainability initiatives, BRICS 250 promotes accountability and trust among stakeholders. Increased transparency not only enhances a company's reputation but also provides valuable insights for investors and consumers who prioritise ethical business practices. As companies strive to meet the standards reflected in this ranking, they contribute to developing a culture of openness that benefits the entire business ecosystem.

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WEJ | September - October 2024

8 BANCO DO BRASIL

3 BANCO ITAÚ UNIBANCO

WORLD ECONOMIC JOURNAL

BRICS Corporate Leaders 10 EMIRATES TELECOM (ETISALAT GROUP)

9 AGRICULTURAL BANK OF CHINA LIMITED

6 BANK OF CHINA LIMITED

7

2

INTERNATIONAL HOLDING COMPANY

TENCENT HOLDINGS LIMITED

5 1 NASPERS

4 INFOSYS LTD

COMMERCIAL INTERNATIONAL BANK Total Score

1

Place

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[ANALYTICS]

BRICS 250 Ranking - 2024 Edition / 1-64 RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

1

NASPERS

IT and Telecom

South Africa

Cape Town

37 000

30

23

23

76

2

TENCENT HOLDINGS LIMITED

IT and Telecom

China

Shenzhen

485 000

19

28

26

73

3

BANCO ITAÚ UNIBANCO

Banking and finance

Brazil

São Paulo

60 311

18

25

26

69

4

INFOSYS LTD

Technology

India

Bangalore

91 900

12

25

30

67

5

COMMERCIAL INTERNATIONAL BANK

Banking and finance

Egypt

Giza

26 800

30

19

18

67

6

BANK OF CHINA LIMITED

Banking and finance

China

Beijing

175 200

14

23

26

63

7

INTERNATIONAL HOLDING COMPANY

Banking and finance

UAE

Abu Dhabi

238 633

26

18

19

63

8

BANCO DO BRASIL

Banking and finance

Brazil

Brasilia

28 550

14

26

22

62

9

AGRICULTURAL BANK OF CHINA LIMITED

Banking and finance

China

Beijing

220 600

16

22

23

61

10

EMIRATES TELECOM

IT and Telecom

UAE

Abu Dhabi

39 070

16

25

19

60

11

ABSA GROUP LIMITED

Banking and finance

South Africa

Johannesburg

8 198

11

24

25

60

12

HAIER SMART HOME

Technology

China

Qingdao

31 180

8

26

25

59

13

CHINA MOBILE LTD

IT and Telecom

China

Hong Kong

210 000

15

25

19

59

14

SAUDI ARAMCO

Oil and gas

Saudi Arabia

Dhahran

1 818 000

30

16

13

59

15

SBER

Banking and finance

Russia

Moscow

68 370

17

21

20

58

16

BANCO BRADESCO

Banking and finance

Brazil

Marília

27 090

15

24

18

57

17

THE SAUDI NATIONAL BANK

Banking and finance

Saudi Arabia

Riyadh

63 370

7

22

28

57

18

TATA CONSULTANCY SERVICES

IT and Telecom

India

Mumbai

190 000

18

19

20

57

19

RELIANCE INDUSTRIES LIMITED

Oil and gas

India

Mumbai

238 530

30

14

13

57

20

CHINA MERCHANTS BANK

Banking and finance

China

Shenzhen

114 000

10

24

22

56

21

AXIS BANK

Banking and finance

India

Mumbai

43 030

8

23

25

56

22

CHINA CONSTRUCTION BANK CORPORATION

Banking and finance

China

Beijing

180 100

16

20

20

56

23

INDUSTRIAL AND COMMERCIAL BANK OF CHINA

Banking and finance

China

Fuzhou

264 000

18

20

18

56

24

VALE

Industrials

Brazil

Rio de Janeiro

54 190

19

18

19

56

25

CHINA TELECOM CORPORATION

IT and Telecom

China

Beijing

74 000

10

25

20

55

26

YANDEX

IT and Telecom

Russia

Moscow

8 921

7

23

25

55

27

HDFC BANK

Banking and finance

India

Mumbai

150 000

17

22

16

55

28

MTN GROUP LTD

IT and Telecom

South Africa

Johannesburg

7 671

9

26

19

54

29 SUN PHARMACEUTICAL

Medtech, Biotech and Pharmacy

India

Mumbai

49 860

8

26

19

53

30

ROSTELECOM

IT and Telecom

Russia

St. Petersburg

2 648

6

25

22

53

31

FOXCONN INDUSTRIAL INTERNET

Technology

China

Shenzhen

66 000

7

25

21

53

32

BAIDU

IT and Telecom

China

Beijing

28 770

7

23

23

53

20

WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

33

HCL TECHNOLOGIES

Technology

India

Noida

53 145

9

23

21

53

34

VODACOM GROUP LTD

IT and Telecom

South Africa

Midrand

10 561

12

23

18

53

35

VTB

Banking and finance

Russia

Moscow

13 210

8

22

23

53

36

SANLAM LIMITED

Banking and finance

South Africa

Belleville

9 234

11

22

20

53

37

TIM

IT and Telecom

Brazil

Rio de Janeiro

8 200

8

28

16

52

38

LIFE HEALTHCARE GROUP

Healthcare

South Africa

Johannesburg

1 054

7

27

18

52

39

REMGRO LTD

Banking and finance

South Africa

Stellenbosch

4 329

8

25

19

52

40

PJSFC SISTEMA

Technology

Russia

Moscow

1 724

6

24

22

52

41

CITIC LIMITED

Banking and finance

China

Hong Kong

26 480

10

22

20

52

42

PETROCHINA

Oil and gas

China

Beijing

222 160

23

18

11

52

43

SAUDI TELECOM CO

IT and Telecom

Saudi Arabia

Riyadh

53 822

7

24

20

51

44

EMIRATES INTEGRATED

IT and Telecom

UAE

Dubai

7 441

8

24

19

51

23

19

51

TELECOMMUNICATIONS COMPANY 45

POSTAL SAVINGS BANK OF CHINA

Banking and finance

China

Beijing

56 000

9

46

CHINA LIFE INSURANCE COMPANY LIMITED

Banking and finance

China

Beijing

104 000

10

21

20

51

47

ALIBABA GROUP

Retail and e-commerce

China

Hangzhou

188 000

14

21

16

51

48

VKONTAKTE

IT and Telecom

Russia

Moscow

1 416

6

25

19

50

49

TOTVS SA

IT and Telecom

Brazil

São Paulo

3 181

6

24

20

50

50 DIS-CHEM PHARMACIES LTD

Medtech, Biotech and Pharmacy

South Africa

Midrand

1 603

7

24

19

50

51

XIAOMI

IT and Telecom

China

Beijing

49 680

8

23

19

50

52

BANK OF COMMUNICATIONS

Banking and finance

China

Shanghai

66 000

9

22

19

50

53

FIRST ABU DHABI BANK

Banking and finance

UAE

Abu Dhabi

42 000

12

22

16

50

54

STATE BANK OF INDIA

Banking and finance

India

Mumbai

92 000

14

19

17

50

55

STANDARD BANK GROUP LTD

Banking and finance

South Africa

Johannesburg

20 040

14

18

18

50

56

CHINA PETROLEUM & CHEMICAL CORPORATION

Oil and gas

China

Beijing

105 000

22

17

11

50

57

TAALEEM HOLDINGS PJSC

Science and Education

UAE

Dubai

1 663

7

26

16

49

58

SANTAM LIMITED

Banking and finance

South Africa

Bellville

1 906

7

23

19

49

59

ABU DHABI ISLAMIC BANK

Banking and finance

UAE

Abu Dhabi

10 074

8

22

19

49

60

INDUSTRIAL BANK

Banking and finance

China

Fuzhou

48 000

8

22

19

49

61

FAISAL ISLAMIC BANK OF EGYPT

Banking and finance

Egypt

Cairo

390

10

21

18

49

62

BHARTI AIRTEL LTD

IT and Telecom

India

New Delhi

103 000

11

20

18

49

63

TECOM GROUP PJSC

IT and Telecom

UAE

Dubai

3 753

6

23

19

48

64

MOEX

Banking and finance

Russia

Moscow

4 800

7

22

19

48

21

[ANALYTICS]

BRICS 250 Ranking - 2024 Edition / 65-125 RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

65

QNB ALAHLI

Banking and finance

Egypt

Cairo

857

12

20

16

48

66

LIFE INSURANCE CORPORATION OF INDIA

Banking and finance

India

Mumbai

79 740

21

14

13

48

67

NETCARE LIMITED

Healthcare

South Africa

Sandton

936

7

25

15

47

68

CLICKS GROUP LTD

Healthcare

South Africa

Cape Town

4 610

8

23

16

47

69

AL YAH SATELLITE COMMUNICATIONS COMPANY

IT and Telecom

UAE

Abu Dhabi

1 368

6

22

19

47

70

PSG FIN SERVICES LTD

Banking and finance

South Africa

Bellville

1 125

6

22

19

47

71

HANGZHOU HIKVISION

Technology

China

Hangzhou

35 420

7

22

18

47

72 JIANGSU HENGRUI PHARMACEUTICALS

Medtech, Biotech and Pharmacy

China

Lianyungang

37 760

8

22

17

47

73

Banking and finance

UAE

Dubai

11 552

7

21

19

47

DUBAI ISLAMIC BANK

74

EMIRATES ISLAM BK

Banking and finance

UAE

Dubai

7 961

7

21

19

47

75

SHOPRITE HOLDINGS LTD

Retail and e-commerce

South Africa

Brackenfell

9 200

14

19

14

47

76

CHINA STATE CONSTRUCTION ENGINEERING CORPORATION LIMITED

Development and construction

China

Beijing

32 000

16

18

13

47

77

CAPITEC BANK HLDGS LTD

Banking and finance

South Africa

Stellenbosch

18 270

12

15

20

47

78

TELKOM SA

IT and Telecom

South Africa

Pretoria

656

7

23

16

46

79

BTG PACTUAL

Banking and finance

Brazil

São Paulo

21 870

9

23

14

46

80 SHENZHEN MINDRAY

Medtech, Biotech and Pharmacy

China

Shenzhen

44 508

7

22

17

46

81

PURE HEALTH HOLDING PJSC

Healthcare

UAE

Abu Dhabi

12 150

9

22

15

46

82

PING AN INSURANCE GROUP COMPANY OF CHINA

Banking and finance

China

Shenzhen

96 500

12

22

12

46

83 EMAAR MISR FOR DEVELOPMENT

Development and construction

Egypt

Cairo

953

12

21

13

46

84

CAIXA ECONÔMICA FEDERAL

Banking and finance

Brazil

Jaraguá do Sul

40 040

16

20

10

46

85

EMIRATES CENTRAL C

Technology

UAE

Dubai

4 482

7

19

20

46

86

MASHREQBANK PSC

Banking and finance

UAE

Dubai

8 304

8

19

19

46

87

JD.COM INC

Retail and e-commerce

China

Beijing

38 660

11

19

16

46

88

EMIRATES NBD BANK

Banking and finance

UAE

Dubai

34 050

11

19

16

46

89

ROSNEFT

Oil and gas

Russia

Moscow

58 441

16

18

12

46

90

ADNOC GAS

Oil and gas

UAE

Abu Dhabi

63 950

22

13

11

46

91

B3 SA - BRASIL BOLSA BALCAO

Banking and finance

Brazil

São Paulo

775

6

22

17

45

92

FORTRESS REAL EST INV B

Banking and finance

South Africa

Cape Town

984

6

22

17

45

93

AGTHIA GROUP

Food and beverages industry

UAE

Abu Dhabi

1 593

7

22

16

45

94

SAUDI AWWAL BANK

Banking and finance

Saudi Arabia

Riyadh

21 498

6

21

18

45

22

WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

95

MR PRICE GROUP LTD

Banking and finance

South Africa

Durban

3 014

7

21

17

45

96

KUAISHOU TECHNOLOGY

IT and Telecom

China

Beijing

25 230

7

19

19

45

97

DUBAI INVESTMENTS

Banking and finance

UAE

Dubai

2 365

7

19

19

45

98

NETEASE

IT and Telecom

China

Hangzhou

58 230

8

19

18

45

99

NLMK

Industrials

Russia

Lipetsk

19 010

9

18

18

45

100

CHINA SHENHUA ENERGY COMPANY LIMITED

Energy

China

Beijing

105 000

10

18

17

45

101

ALPHA DHABI HOLDING PJSC

Banking and finance

UAE

Abu Dhabi

33 588

15

16

14

45

102

TAQA

Oil and gas

UAE

Abu Dhabi

81 425

18

16

11

45

103 JBS

Food and beverages industry

Brazil

São Paulo

15 300

21

16

8

45

104

TATA MOTORS LTD.

Industrials

India

Mumbai

48 090

14

15

16

45

105

EMBRAER

Technology

Brazil

São José dos Campos 5 970

7

24

13

44

106

EGYPTIAN FINANCIAL GROUP-HERMES HOLDING COMPANY

Development and construction

Egypt

Cairo

580

9

22

13

44

107

ALINMA BANK

Banking and finance

Saudi Arabia

Riyadh

20 596

6

21

17

44

108

X5 GROUP

Retail and e-commerce

Russia

Moscow

6 604

7

21

16

44

109 JUHAYNA FOOD INDUSTRIES

Food and beverages industry

Egypt

Giza

490

9

21

14

44

110

PEPKOR HOLDINGS LTD

Retail and e-commerce

South Africa

Cape Town

3 545

9

21

14

44

111

MAGNIT

Retail and e-commerce

Russia

Krasnodar

8 013

7

20

17

44

112

CHINA PACIFIC INSURANCE (GROUP)

Insurance

China

Shanghai

32 750

8

20

16

44

113

DISCOVERY LTD

Banking and finance

South Africa

Sandton

5 206

8

19

17

44

114

SHANGHAI PUDONG DEVELOPMENT BANK

Banking and finance

China

Shanghai

34 940

8

19

17

44

115

ABU DHABI COMMERCIAL BANK

Banking and finance

UAE

Abu Dhabi

17 540

9

19

16

44

116

NEDBANK GROUP LTD

Banking and finance

South Africa

Sandton

7 086

13

19

12

44

117

LUKOIL

Oil and gas

Russia

Moscow

51 987

14

18

12

44

118

EXXARO RESOURCES LTD

Industrials

South Africa

Centurion

2 479

7

16

21

44

119

FIRSTRAND LTD

Banking and finance

South Africa

Johannesburg

21 518

14

16

14

44

120 ALMARAI CO.

Food and beverages industry

Saudi Arabia

Riyadh

16 173

6

21

16

43

121 ALDAR PROPERTIES

Development and construction

UAE

Abu Dhabi

11 462

9

21

13

43

122

ADVTECH LTD

Science and Education

South Africa

Cape Town

876

6

20

17

43

123

MULTIPLY GROUP PJSC

Banking and finance

UAE

Abu Dhabi

7 046

6

20

17

43

124

TIGER BRANDS LTD

Retail and e-commerce

South Africa

Bryanston

1 889

7

20

16

43

125

AL RAJHI BANK

Banking and finance

Saudi Arabia

Riyadh

89 390

7

19

17

43

23

[ANALYTICS]

BRICS 250 Ranking - 2024 Edition / 126-189 RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

126

HINDUSTAN AERONAUT

Technology

India

Bangalore

37 122

7

19

17

43

127

WOOLWORTHS HOLDINGS LTD

Retail and e-commerce

South Africa

Cape Town

2 896

8

19

16

43

128

MULTICHOICE GROUP LTD

IT and Telecom

South Africa

Randburg

2 544

8

19

16

43

129

TRUWORTHS INT LTD

Clothing and fashion

South Africa

Cape Town

1 804

7

18

18

43

130

PHOSAGRO

Industrials

Russia

Moscow

9 515

7

18

18

43

131

SEVERSTAL

Industrials

Russia

Moscow

13 056

8

18

17

43

132

SAPPI LTD

Industrials

South Africa

Johannesburg

1 674

9

18

16

43

133

CONTEMPORARY AMPEREX TECHNOLOGY LTD

Industrials

China

Ningde

110 380

9

18

16

43

134

MIDEA GROUP

Consumer Staples

China

Foshan

61 000

9

18

16

43

135

BIDVEST LTD

Retail and e-commerce

South Africa

Johannesburg

5 400

10

18

15

43

136

GAZPROM

Oil and gas

Russia

St. Petersburg

42 179

13

18

12

43

137

BYD COMPANY

Industrials

China

Shenzhen

91 000

10

17

16

43

138

ACWA POWER CO.

Utilities

Saudi Arabia

Riyadh

77 560

6

15

22

43

139

CENTRAIS ELETRICAS BRASILEIRAS

Utilities

Brazil

Rio de Janeiro

16 212

9

15

19

43

140

DEWA

Utilities

UAE

Dubai

31 995

12

15

16

43

141

WEG

Industrials

Brazil

Jaraguá do Sul

40 310

11

12

20

43

142

ETHIOPIAN AIRLINES

Transport and logistics

Ethiopia

Addis Ababa

10 000

30

7

6

43

143 EMSTEEL BUILDING MATERIALS PJSC

Development and construction

UAE

Abu Dhabi

2 515

7

22

13

42

144

AVI LTD

Retail and e-commerce

South Africa

Johannesburg

1 766

6

20

16

42

145

BURJEEL HOLDINGS PLC

Healthcare

UAE

Abu Dhabi

3 752

7

20

15

42

146

PEOPLE'S INSURANCE COMPANY OF CHINA

Insurance

China

Beijing

30 660

9

20

13

42

147

DUBAI FINANCIAL

Banking and finance

UAE

Dubai

3 028

6

19

17

42

148

COMM BK OF DUBAI

Banking and finance

UAE

Dubai

5 199

7

19

16

42

149

PICK'N'PAY STORES

Retail and e-commerce

South Africa

Cape Town

945

9

19

14

42

150

MMK

Industrials

Russia

Magnitogorsk

6 497

7

17

18

42

151 WULIANGYE YIBIN

Food and beverages industry

China

Beijing

69 380

8

17

17

42

152

NOVATEK

Oil and gas

Russia

Moscow

36 147

12

17

13

42

153

MAHINDRA & MAHINDRA

Industrials

India

Mumbai

37 000

9

16

17

42

154 SPINNEYS 1961 HOLDING

Food and beverages industry

UAE

Dubai

1 451

6

19

16

41

155 ASPEN PHARMACARE HLDGS LTD

Medtech, Biotech and Pharmacy

South Africa

Umhlang

6 141

8

19

14

41

156

MOMENTUM GROUP LIMITED

Banking and finance

South Africa

Sandton

1 931

9

19

13

41

157

EN+ GROUP

Energy

Russia

Moscow

3 135

7

18

16

41

24

WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

14

18

9

41

158

RAÍZEN

159

ACRON

Industrials

Russia

Velikiy Novgorod

7 726

7

17

17

41

160

LUXSHARE PRECISION

Industrials

China

Dongguan

36 520

8

17

16

41

161

GERDAU

Industrials

Brazil

São Paulo

6 450

9

14

18

41

162

LARSEN & TOUBRO

Energy

Brazil

São Paulo

6 220

Industrials

India

Mumbai

58 500

11

14

16

41

163 CRRC CORPORATION

Development and construction

China

Beijing

28 380

7

19

14

40

164

AJMAN BANK

Banking and finance

UAE

Ajman

1 387

6

18

16

40

165

BARLOWORLD

Industrials

South Africa

Johannesburg

897

7

18

15

40

166

SURGUTNEFTEGAS

Oil and gas

Russia

Surgut

15 498

9

18

13

40

167

AFRICAN RAINBOW MIN LTD

Industrials

South Africa

Sandton

2 225

7

17

16

40

168

ABU DHABI NATIONAL OIL COMPANY

Oil and gas

UAE

Abu Dhabi

12 605

12

17

11

40

169 EMAAR PROPERTIES

Development and construction

UAE

Dubai

51 000

12

17

11

40

170

RAIA DROGASIL

Consumer Staples

Brazil

São Paulo

9 096

8

15

17

40

171

ICICI BANK

Banking and finance

India

Mumbai

102 000

13

15

12

40

172

BANQUE SAUDI FRANSI

Banking and finance

Saudi Arabia

Riyadh

11 066

6

14

20

40

173

ULTRATECH CEMENT

Industrials

India

Mumbai

38 810

8

14

18

40

174

ITC LTD

Consumer Staples

India

Kolkata

74 000

10

14

16

40

175

EASTERN COMPANY

Consumer Staples

Egypt

Giza

1 400

10

14

16

40

176

PETROBRAS

Oil and gas

Brazil

Rio de Janeiro

102 200

17

14

9

40

177

HAPVIDA

Healthcare

Brazil

São Paulo

5 540

7

21

11

39

178

RUSHYDRO

Energy

Russia

Moscow

3 562

6

18

15

39

179 MUYUAN FOODS

Food and beverages industry

China

Nanyang

33 020

7

18

14

39

180

TATNEFT

Oil and gas

Russia

Almetyevsk

18 593

9

18

12

39

181

CHINA YANGTZE POWER

Energy

China

Beijing

103 000

8

17

14

39

182

MEITUAN

Retail and e-commerce

China

Beijing

81 590

9

16

14

39

183

NORNICKEL

Mining

Russia

Moscow

27 681

10

16

13

39

184

KOTAK MAHINDRA BAN

Banking and finance

India

Mumbai

42 130

8

15

16

39

185

EGYPT ALUMINUM

Industrials

Egypt

Qena

953

11

14

14

39

186 ABU DHABI NATIONAL HOTELS CO.

187 ITALTILE LTD

Hotels and accomodation Retail and e-commerce

UAE

Abu Dhabi

2 099

6

19

13

38

South Africa

Bryanston

799

6

18

14

38

188

Oil and gas

Russia

Moscow

11 718

8

18

12

38

Food and beverages industry

South Africa

Johannesburg

8 038

13

18

7

38

TRANSNEFT

189 BID CORPORATION LTD

25

[ANALYTICS]

BRICS 250 Ranking - 2024 Edition / 190-250 RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

190

SAUDI ELECTRICITY CO.

Energy

Saudi Arabia

Riyadh

19 237

7

16

15

38

191

MOTUS HOLDINGS LTD

Industrials

South Africa

Johannesburg

973

8

16

14

38

192

POWER GRID CORP

Energy

India

Gurgaon

40 117

8

16

14

38

193

SAUDI INVESTMENT BANK

Banking and finance

Saudi Arabia

Riyadh

4 273

6

15

17

38

194

BANK ALJAZIRA

Banking and finance

Saudi Arabia

Jeddah

4 733

6

15

17

38

195

BANK ALBILAD

Banking and finance

Saudi Arabia

Riyadh

10 340

6

15

17

38

196

GOLD FIELDS LTD

Mining

South Africa

Johannesburg

15 405

12

15

11

38

197

NORTHAM PLATINUM HLDGS LTD

Industrials

South Africa

Johannesburg

2 864

7

14

17

38

198

KLABIN

Industrials

Brazil

São Paulo

23 470

9

14

15

38

199

CNOOC LIMITED

Energy

China

Hong Kong

133 000

10

14

14

38

200 ORASCOM CONSTRUCTION

Development and construction

Egypt

Cairo

605

6

18

13

37

201

RUMO

Industrials

Brazil

Curitaba

7 791

7

18

12

37

202

BARLOWORLD LTD

Industrials

South Africa

Sandton

930

7

16

14

37

203

HARMONY GM CO LTD

Mining

South Africa

Melrose Ark

6 737

9

16

12

37

204

ADANI ENTERPRISES

Retail and e-commerce

India

Ahmedabad

42 260

9

16

12

37

205

VIBRA ENERGIA

Oil and gas

Brazil

São Paulo

5 560

12

15

10

37

206

WANHUA CHEMICAL GROUP

Industrials

China

Beijing

33 130

7

14

16

37

207

NTPC LTD

Energy

India

New Delhi

46 020

10

14

13

37

208

SASOL LIMITED

Mining

South Africa

Johannesburg

4 840

14

13

10

37

209

SALIK COMPANY P.J.

Corporate services

UAE

Dubai

6 804

7

16

13

36

210

POLYUS

Mining

Russia

Moscow

15 799

8

16

12

36

211

AEROFLOT

Transport and logistics

Russia

Moscow

1 562

6

15

15

36

212

BOROUGE PLC

Oil and gas

UAE

Abu Dhabi

19 883

10

15

11

36

213

AMBEV

Consumer Staples

Brazil

São Paulo

36 560

12

15

9

36

214

TABREED (NCC)

Industrials

UAE

Abu Dhabi

2 351

6

14

16

36

215

ARAB NATIONAL BANK

Banking and finance

Saudi Arabia

Riyadh

10 113

6

14

16

36

216 MOUWASAT MEDICAL SERVICES CO.

Medtech, Biotech and Pharmacy

Saudi Arabia

Dammam

7 941

6

11

19

36

217

ADANI GREEN ENERGY

Energy

India

Ahmedabad

34 098

7

16

12

35

218

RUSAL

Mining

Russia

Moscow

5 759

7

16

12

35

219

ALROSA

Mining

Russia

Mirniy

5 718

7

15

13

35

220

IMPALA PLATINUM HLGS LTD

Mining

South Africa

Johannesburg

4 391

9

15

11

35

221

LOCALIZA RENT A CAR

Industrials

Brazil

Belo Horizonte

8 100

8

14

13

35

222

DUBAI TAXI COMPANY

Transport and logistics

UAE

Dubai

1 477

6

13

16

35

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WORLD ECONOMIC JOURNAL

RANK

COMPANY

INDUSTRY

COUNTRY

HQ CITY

MARKET CAP mln $

SCORE business

esg

future

total

223

ADANI PORT

Transport and logistics

India

Ahmedabad

38 460

8

13

14

35

224

RIYADH CABLES GROUP CO.

Technology

Saudi Arabia

Riyadh

3 917

6

8

21

35

225

ZIJIN MINING GROUP COMPANY

Mining

China

Longyan

60 000

8

15

11

34

226

NU HOLDINGS

Banking and finance

Brazil

São Paulo

55 170

12

14

8

34

227

EQUATORIAL ENERGIA

Utilities

Brazil

São Luís

7 430

8

13

13

34

228

NATIONAL MARINE DREDGING CO.

Oil and gas

UAE

Abu Dhabi

6 019

9

14

10

33

229 NAHDI MEDICAL CO.

Medtech, Biotech and Pharmacy

Saudi Arabia

Jeddah

4 619

6

11

16

33

230

ETHIOPIAN ELECTRIC POWER CORPORATION

Energy

Ethiopia

Addis Ababa

8 700

15

10

8

33

231

MA'ADEN

Mining

Saudi Arabia

Riyadh

42 662

6

15

11

32

232

SIBANYE STILLWATER LTD

Mining

South Africa

Roodepoort

3 037

9

13

10

32

233

ABU DHABI PORTS COMPANY PJSC

Transport and logistics

UAE

Abu Dhabi

7 089

8

12

12

32

234 MBC GROUP CO.

TV, Media and Publishing

Saudi Arabia

Riyadh

3 856

6

8

18

32

235

RABIGH REFINING AND PETROCHEMICAL CO.

Oil and gas

Saudi Arabia

Rabigh

3 517

6

14

11

31

236

ETIHAD ETISALAT CO.

IT and Telecom

Saudi Arabia

Riyadh

10 644

6

14

11

31

237

THUNGELA RESOURCES LTD

Mining

South Africa

Johannesburg

939

7

14

10

31

238

COAL INDIA LTD

Mining

India

Kolkata

37 640

9

12

10

31

239

AWASH BANK

Banking and finance

Ethiopia

Addis Ababa

8 200

14

9

8

31

240

GULF NAVIGATION HO

Transport and logistics

UAE

Dubai

1 364

6

12

12

30

241

DR. SOLIMAN ABDEL KADER FAKEEH Healthcare Saudi Arabia Al-Hamra'a HOSPITAL CO. Jeddah

3 721

6

6

18

30

242

DRD GOLD LTD

Mining

South Africa

Johannesburg

833

6

13

10

29

243

DANA GAS

Oil and gas

UAE

Sharjah

1 291

6

14

8

28

244

RIYAD BANK

Banking and finance

Saudi Arabia

Riyadh

22 073

6

14

8

28

245

AIR ARABIA

Industrials

UAE

Sharjah

3 301

7

13

8

28

246 HOSKEN CONS INV LTD

TV, Media and Publishing

South Africa

Cape Town

803

6

12

10

28

247

SAHARA INTERNATIONAL PETROCHEMICAL CO.

Industrials

Saudi Arabia

Al Khobar

5 633

6

12

10

28

248

YANBU NATIONAL PETROCHEMICAL CO.

Industrials

Saudi Arabia

Yanbu

6 240

6

10

12

28

249

AL SEER MARINE SUPPLIES& EQUIPMENT COMPANY

Industrials

UAE

Abu Dhabi

1 141

6

10

12

28

250

BASHNEFT

Oil and gas

Russia

Ufa

5 242

20

1

7

28

All financial performance data were obtained from the latest available company reports and statistical agencies

27

[ANALYTICS]

T

he companies topping the BRICS 250 ranking stand out for their achievements in business and innovation as well as their commitment to ESG across diverse industries—from technology to finance to telecommunications and more. They have established themselves as leaders in their sectors by embracing digital transformation, advancing technologies like AI, fintech, cloud computing and renewable energy, and expanding their global presence through strategic investments and acquisitions.

By integrating innovation with sustainability, these companies have not only strengthened their market positions but also contributed to the broader goal of creating a more sustainable and inclusive global economy. Investors might find these companies appealing due to their sustainable growth, diversified assets, and government support.

Amid global economic shifts and evolving resource demands, such companies could emerge as pivotal players in shaping future market trends.

BRICS Corporate Leaders The companies that make a substantial impact on their nations' well-being, advance the BRICS business ecosystem and actively work towards building more equitable societies are the true heroes of BRICS nations.

Let's examine their experience in combining market progress with care for people and nature.

1

NASPERS

Naspers is a multinational consumer internet group and one of South Africa's largest companies. Founded in 1915, it has evolved from a local media business into a global internet and technology group, with significant investments in online classifieds, food delivery, fintech and e-commerce platforms. Naspers is notably the largest shareholder in Prosus, a global consumer internet group that holds stakes in companies like Tencent and Delivery Hero.

Naspers' ESG efforts focus on sustainable development and responsible corporate citizenship. The company emphasises reducing its carbon footprint, enhancing data privacy and security, promoting diversity and inclusion, and supporting local communities. Naspers also prioritises good governance, aiming for transparency, accountability and ethical business practices across its operations and investments. Its ESG initiatives are aligned with global sustainability goals, aiming for a positive impact on both society and the environment.

2

TENCENT HOLDINGS LTD.

Tencent Holdings Ltd. is a Chinese multinational conglomerate and one of the world's largest technology companies. Founded in 1998 and headquartered in Shenzhen, Tencent operates across various sectors including social networking, gaming, fintech, cloud computing and AI. Tencent's core businesses revolve around its popular social media platform WeChat, its leading online gaming portfolio (featuring titles like Honor of Kings and PUBG Mobile) and its digital payment service WeChat Pay. Tencent is also a significant player in cloud services and artificial intelligence, driving innovation across industries.

The company invests extensively in high-tech sectors, including autonomous driving, quantum computing, and healthcare technology, as well as its strategic stakes in global tech giants like Tesla, Spotify, and Snap Inc. Tencent's ESG policies focus on sustainability, social responsibility and robust governance. The company is committed to reducing its carbon emissions, developing eco-friendly data centres and adopting renewable energy sources. Socially, Tencent invests in education, healthcare and poverty alleviation in China while promoting digital inclusion globally. Its governance strategy emphasises transparency, ethics and compliance with international standards, reflecting its role as a global tech leader.

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WORLD ECONOMIC JOURNAL

3

BANCO ITAÚ UNIBANCO

Banco Itaú Unibanco is one of the largest financial institutions in Latin America and a key player in the global banking industry.

Headquartered in São Paulo, Brazil, the bank was formed in 2008 through the merger of Banco Itaú and Unibanco. Itaú Unibanco offers a wide range of services including retail, commercial and investment banking, as well as insurance, asset management and credit cards. The bank operates in over 18 countries and serves millions of customers across its digital and physical platforms.

The bank is known for its focus on digital transformation, with significant investments in fintech, AI, and blockchain technology to enhance customer experiences and operational efficiency.

Itaú Unibanco has a strong commitment to ESG principles.

Environmentally, the bank aims to reduce its carbon footprint, finance green projects and support sustainable development in Brazil and beyond. Socially, Itaú Unibanco invests in education, entrepreneurship and social inclusion initiatives, particularly focusing on underserved communities. In terms of governance, the bank prioritises transparency, ethical behaviour and strong corporate governance practices, ensuring that its operations align with global best practices and contribute positively to society and the environment.

4

INFOSYS LTD.

Infosys Ltd. is a prominent global IT services and consulting firm based in Bangalore, India. Established in 1981, the company offers a broad array of services, including software development, business consulting, technology solutions and outsourcing. It caters to a variety of industries, such as finance, manufacturing, telecommunications, retail and healthcare. Infosys is particularly recognized for its capabilities in digital transformation, cloud solutions, AI and data analytics, enabling businesses to modernise and innovate. Infosys operates in more than 50 countries and employs over 300,000 people globally.

The company has committed to ambitious sustainability objectives, including achieving carbon neutrality and cutting energy consumption through renewable energy adoption. Its social initiatives focus on education, healthcare and skill development, particularly for disadvantaged communities. In governance, Infosys shows dedication to transparency, ethical conduct and robust corporate governance by international standards.

5

COMMERCIAL INTERNATIONAL BANK

Commercial International Bank (CIB), Egypt’s largest private-sector bank, has been a leader in corporate and retail banking since its founding in 1975. Offering a full spectrum of financial services— including personal banking, corporate lending, trade finance and investment banking—CIB leverages technology to improve digital banking and enhance customer experiences.

Operating both domestically and internationally, and serving millions of clients, the bank continues to invest in fintech and digital solutions to remain competitive.

CIB shows commitment to ESG principles, focusing on environmental sustainability by cutting carbon emissions and funding renewable energy projects. Socially, it supports initiatives in education, financial inclusion and community development, particularly targeting youth and entrepreneurship. The bank upholds strong governance practices, emphasising transparency, ethics, and compliance with both local and global standards.

6

BANK OF CHINA LTD.

Bank of China Limited (BOC), one of China's largest and oldest financial institutions, was founded in 1912. As a leading stateowned bank, BOC provides a broad range of financial services, including corporate and personal banking, investment banking, insurance and asset management. The bank has a significant global presence, operating in over 50 countries and regions, and serves a vast customer base both domestically and internationally.

The company continues to drive innovation through investments in digital banking and fintech solutions to remain competitive in the fast-evolving financial landscape.

Bank of China’s sustainable development strategy stands out for its strong focus on sustainable finance. The bank is involved in financing green projects and reducing its environmental impact.

Socially, BOC supports initiative in the fields of financial inclusion, education and poverty alleviation. In terms of governance, the bank adheres to strict standards of transparency, ethics and strong corporate governance, ensuring compliance with both domestic and international regulations.

29

[ANALYTICS]

7

INTERNATIONAL HOLDING COMPANY

International Holding Company (IHC) is one of the largest and fastest-growing conglomerates in the United Arab Emirates (UAE). Established in 1998 and headquartered in Abu Dhabi, IHC operates across a diverse range of sectors including healthcare, real estate, agriculture, food and utilities. The company is known for its aggressive expansion strategy, acquiring and investing in various highgrowth industries both domestically and internationally to assert itself as a global player.

The company continues to focus on growth through investments in renewable energy and technology.

IHC shows commitment to ESG, emphasising sustainable practices and green energy investments to minimise its environmental impact. It also actively supports healthcare, education and community development initiatives. On the governance front, IHC prioritises transparency, ethical practices and strong adherence to international standards, aligning its growth strategy with a longterm focus on sustainability.

8

BANCO DO BRASIL

Banco do Brasil, founded in 1808, is one of the largest and most established financial institutions in Brazil, playing a significant role in the country’s banking sector. This state-controlled entity provides a comprehensive portfolio of services encompassing retail and corporate banking, investment banking, insurance and asset management. The bank's operations are critical to Brazil's financial system, serving a vast customer base with both domestic and international reach.

Banco do Brasil continues to invest in digital innovation and technological advancements to remain competitive in an evolving financial environment. Banco do Brasil adheres to stringent ESG criteria, with an emphasis on sustainable finance to minimise environmental impact, including through the promotion of green projects and renewable energy investments. Socially, the bank seeks to advance financial inclusion, education and community development across Brazil. From a governance perspective, Banco do Brasil maintains a strong commitment to transparency, ethical business practices and regulatory compliance.

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9

AGRICULTURAL BANK OF CHINA LTD.

The Agricultural Bank of China Ltd. (ABC), established in 1951, is one of the foremost state-owned financial institutions in China. It plays a crucial role in supporting China’s economic development, particularly in the agricultural sector and rural areas. ABC provides a comprehensive array of financial services, including retail and corporate banking, wealth management, and investment products, serving both rural and urban populations. The bank prioritises the enhancement of its technological infrastructure to align with the evolving demands of the financial sector.

ABC places significant emphasis on sustainable finance, actively financing environmentally responsible projects and promoting initiatives aimed at reducing environmental impact. Socially, the bank is committed to advancing financial inclusion, with a strong focus on poverty reduction and improving access to financial services in rural and underdeveloped regions. In terms of governance, ABC adheres to rigorous standards of transparency, ethical conduct and regulatory compliance.

10

EMIRATES TELECOM (ETISALAT GROUP)

Emirates Telecom, which operates under the brand Etisalat Group, is a leading state-owned telecommunications provider in the United Arab Emirates. Established in 1976, the company plays a critical role in advancing the nation’s telecommunications infrastructure, offering a wide range of services, including mobile and fixed-line broadband, digital television and enterprise solutions.

Etisalat Group is recognised for its contribution to the UAE’s digital transformation and its support for government initiatives aimed at fostering innovation and technological advancement. It continues investing in expanding its technological capabilities, including 5G networks and digital services, in line with both domestic and international market evolutions..

Etisalat Group shows commitment to robust ESG standards, aligning with the UAE’s national sustainability goals. The company places strong emphasis on reducing its carbon footprint through energy-efficient technologies, and on promoting digital inclusion across the region. Etisalat Group also contributes to education, innovation and community development initiatives, supporting the UAE’s ambition to become a global leader in digital innovation. In terms of governance, the company adheres to high standards of transparency, ethical business practices and compliance with local and international regulations.

[ANALYTICS]

BRICS Business Capitals

T

o acknowledge the crucial role of successful urban ecosystems in corporations’ sustainable growth, WEJ has ranked the 25 cities that are home to the largest number of leading BRICS companies. Ordinal and numerical metrics are used to aggregate data from BRICS 250 companies based on their headquarters location.

To rank these cities, we took into account both the total number and the total score of the companies they host— offering a reflection of the local business environment and commitment to sustainable development. Thus, while Beijing may have a higher overall score, Abu Dhabi's strong score in headquarters location for forward-looking BRICS companies suggests a business ecosystem of higher density.

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Total Score 1

Place

33

[ANALYTICS]

BRICS Business Capitals sub-ranking of BRICS 250 RANK

CITY

COUNTRY

SCORE business

esg

future

total

occurrence

1

BEIJING

China

227

392

345

964

20

2

ABU DHABI

UAE

234

401

318

953

22

3

MOSCOW

Russia

167

364

311

842

19

4

JOHANNESBURG

South Africa

170

329

262

761

18

5

DUBAI

UAE

123

295

267

685

16

6

RIYADH

Saudi Arabia

106

276

292

674

17

7

MUMBAI

India

179

226

218

623

13

8

SÃO PAULO

Brazil

143

236

182

561

13

9

CAPE TOWN

South Africa

89

177

145

411

9

10

SHENZHEN

China

65

138

114

317

6

11

SANDTON

South Africa

51

115

87

253

6

12

CAIRO

Egypt

49

102

73

224

5

13

RIO DE JANEIRO

Brazil

53

75

63

191

4

14

HONG KONG

China

35

61

53

149

3

15

HANGZHOU

China

29

62

52

143

3

16

SHANGHAI

China

25

61

52

138

3

17

BANGALORE

India

19

44

47

110

2

18

AHMEDABAD

India

24

45

38

107

3

19

GIZA

Egypt

40

33

34

107

2

20

ADDIS ABABA

Ethiopia

59

26

22

107

3

21

FUZHOU

China

26

42

37

105

2

22

MIDRAND

South Africa

19

47

37

103

2

23

STELLENBOSCH

South Africa

20

40

39

99

2

24

ST. PETERSBURG

Russia

19

43

34

96

2

25

JARAGUÁ DO SUL

Brazil

27

32

30

89

2

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WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

PHOTO: CHRISTIAN LUE/UNSPLASH, KIRILL NEIEZHMAKOVSHUTTERSTOCK

Insights from the TOP 5 cities BEIJING, CHINA

ABU DHABI, UAE

Population: 21.9 MILLION Gross Metropolitan Product: $618.26 BILLION City mayor: YIN YONG

Population: 1.6 MILLION Gross Regional Product: $310 BILLION City Municipality Director-General: SAIF BADER AL QUBAISI

Beijing is recognized as a global centre for business, innovation and sustainability, supported by a robust economic base and technological advancements. The city hosts multinational companies and startups, enhancing sectors like AI and clean energy through government-backed R&D and investments. Beijing's initiatives for sustainability focus, in particular, on pollution reduction initiatives, renewable energy advancements and infrastructure improvements.

Notable SDG achievements:

Beijing excels in clean energy and environmental protection according to the Nature Science City Index (2023).

As revealed by the United Nations in China 2023 Annual Country Results Report, Beijing has made significant strides in reducing air pollution. The city reported a 25% reduction in PM2.5 levels from 2013 to 2020.

As a result of its waste management programmes, the city achieved a 95% waste sorting rate in residential areas by 2022, significantly improving recycling and reducing landfill use (United Nations in China 2023 Annual Country Results Report).

Abu Dhabi aims to assert itself as a global business and sustainability leader. To drive AI and clean energy projects, it has established the Advanced Technology Research Council, while Masdar City is presented as a model for green urban development. The city's strategy focuses on sectors such as healthcare and finance, according to the Abu Dhabi Vision 2030, which guides economic diversification and growth. Stringent environmental regulations and robust ESG commitments are being developed to align Abu Dhabi's broad economic ambitions with SDG-related requirements.

Notable SDG achievements:

According to Abu Dhabi Department of Economic Development (ADDED), the city has achieved a 15% reduction in total waste generated in 2022, with 6.65 tonnes of waste recycled, up 78% from the previous year.

The city’s building rehabilitation programmes have led to a 2540% reduction of energy consumption for both government and private buildings, as reported by Aletihad.

Clean energy consumption increase: according to the official Abu Dhabi Energy Outlook the city’s power mix has shifted towards clean energy facilities which contribute over 30% of the total electricity generation capacity in Abu Dhabi.

35

[ANALYTICS]

MOSCOW, RUSSIA

JOHANNESBURG, SOUTH AFRICA

Population: 13.1 MILLION Gross Regional Product: $280 BILLION City mayor: SERGEI SOBYANIN

Notable SDG achievements:

N-Habitat has ranked Moscow number one in the world in U terms of infrastructure development and quality of life, as indicated in its City Prosperity Index and in Moscow City’s official website.

As noted by the ITU, Moscow had already introduced, in 2020, over 220 different public services, making them accessible in a ‘one-stop-shop’ format. These services covered a wide range of needs, including utility bill payments, traffic fine settlements, medical appointments, and even some government services like passport issuance.

Digital innovations support: Moscow Innovation Cluster provides over 200 forms of support to nearly 35,000 innovators registered to date.

Johannesburg is home to major industries, including finance, mining, and technology. Its strong regional and continental trade connections have established the city as a vital economic and innovation hub in South Africa.

The city’s urban planning focuses on increasing renewable energy use, improving energy efficiency and expanding green spaces. The Local Biodiversity Strategy and Action Plan (LBSAP) aims to protect natural systems, improve air quality and manage water and waste more effectively.

Other programmes are designed to foster social equity, further demonstrating the city’s commitment to sustainability. Johannesburg also actively supports local entrepreneurship and digital transformation in sectors like fintech and e-commerce.

Notable SDG achievements:

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WEJ | September - October 2024

F ollowing a Green Development Foundation initiative, Johannesburg is known for its extensive tree-planting efforts, with over 3.2 million trees planted. The Johannesburg City Parks and Zoos (JPCZ) manages more than 20,000 hectares of green spaces, including cemeteries, botanical gardens and nature reserves.

As part of its Vehicle Emissions Control Strategy and Action Plan, the city is developing a comprehensive strategy to control vehicle emissions and improve ambient air quality.

PHOTO: NATALIA VOLKOVA/SHUTTERSTOCK

In accordance with the UN’s SDGs, Moscow City's commitment to sustainability has been demonstrated through such programmes as Smart City, which focused on electronic public services and energy efficiency, and My Street, which radically improved walkability of the city centre and the quality of urban green spaces as part of a broader urban redevelopment plan. The city's commitment to ESG principles has translated into a variety of other programmes supporting living standards and municipal infrastructure. The Russian capital is maintaining a sustainable growth trajectory in spite of the current geopolitical challenges.

Population: 6.3 MILLION Gross Regional Product: $139 BILLION City mayor: DADA MORERO

WORLD ECONOMIC JOURNAL

DUBAI, UAE Population: 3.05 MILLION Gross Regional Product: $116.7 BILLION Secretary-General of the Executive Council: ABDULLA MOHAMMED AL BASTI

REFERENCES United Nations. (2015). Transforming our world: the 2030 Agenda for Sustainable Development.

World Bank. (2024). World Development Report 2024: The Middle-Income Trap. Washington, DC: World Bank.

International Monetary Fund (IMF). (2024). World Economic Outlook: The Global Economy in a Sticky Spot. Washington, DC: International Monetary Fund.

United Nations Conference on Trade and Development (UNCTAD). (2024). World Investment Report 2024: Investment facilitation and digital government. Geneva: UNCTAD. World Economic Forum. (2024). The Global Risks Report 2024. Geneva: World Economic Forum.

Organisation for Economic Co-operation and Development (OECD). (2024). OECD Economic Outlook, Volume 2024 Issue 1. Paris: OECD Publishing.

Global Reporting Initiative (GRI). (2021). GRI Standards: Sustainability Reporting Guidelines.

Amsterdam: GRI. International Energy Agency (IEA). (2023).

World Energy Outlook 2023. Paris: IEA.

Dubai has undergone a profound transformation over the past decade from an oil-reliant economy to a global hub for technology, finance and tourism. While doing so, Dubai has attracted a number of global corporations, investors and, increasingly, startups. Initiatives like the Dubai Future Foundation and the Smart Dubai strategy aim to establish the city as one of the smartest and most digitally connected in the world.

Sustainability is one of the pillars of Dubai’s development, as exemplified by the Dubai Clean Energy Strategy 2050, which aims to make Dubai a global leader in sustainable energy. Meanwhile, the Dubai Health Strategy 2021 aims to provide world-class healthcare services to all residents.

PHOTO: DARCEY BEAU/UNSPLASH

Notable SDG achievements:

S ince its inception, the Digital Dubai Office has launched over 130 initiatives in partnership with government and private sector entities. Some key initiatives include, the Dubai Data Initiative, the Dubai Blockchain Strategy, the Happiness Agenda, the Dubai AI Roadmap and the Dubai Paperless Strategy.

The Dubai government has invested heavily in education, with initiatives like the Dubai Future Foundation and the Dubai Future Academy, which help individuals acquire skills needed on the labour market.

Bloomberg. (2022). Bloomberg ESG Disclosure Score Rankings. New York: Bloomberg.

United Nations Framework Convention on Climate Change (UNFCCC). (2021). The Paris Agreement: 2015. Bonn: UNFCCC. World Bank. (2024). Global Economic Prospects, June 2024 Trade and Development Report. (2023). Growth, Debt and Climate: Realigning the Global Financial Architecture Industry 5.0. European Commission. First edition, (2021) The Global Innovation Index 2022. WIPO, (2022) United Nations Industrial Development Organization. (2024). Industrial Development Report 2024. Turning Challenges into Sustainable Solutions.

The New Era of Industrial Policy. Vienna.

World bank GDP net: https://data.worldbank.org/ indicator/NY.GDP.MKTP.CD World bank GDP by PPP: https://data.worldbank. org/indicator/NY.GDP.MKTP.PP.C

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[ ECONOMY ]

38

INVESTMENT | Infrastructure | Megacities | Digital Assets & Currencies | Markets

WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

EMERGING MARKETS

Where impact investing yields bigger returns and greater change

By McKinley Richards

McKinley Richards is Head of Impact at Sturgeon Capital. A graduate of international economics and global development, she has built her career around public, private and non-profit impact initiatives including the Page programme at the Canadian House of Commons, Enactus at the University of Ottawa, the Propel Impact Consulting Fellowship, and the Accelerate Prosperity accelerator in Kyrgyzstan.

T

here’s a lot of buzz around “impact investing.”

The sector has experienced remarkable growth in recent years, capturing the attention of investors, entrepreneurs and philanthropists. Recognising the urgency and complexity of global challenges like poverty, inequality, and climate change, there is a growing global movement advocating for the need to allocate more capital to improving lives and the health of our planet. More than just a buzzword, impact investing holds the potential to play a historic role in reshaping the role of capital.

Despite its rapid growth and surge in popularity, impact investing evokes both promise and criticism. Sceptics raise concerns about “green and impact washing,” the lack of standardised and comparable measurement, the challenges around proving contribution to impact, and the trade-offs between financial and impact returns.

While these criticisms contribute to confusion and misunderstandings about what impact investing really means, the field continues to attract a wide variety of investors who seek to finance solutions across developed and emerging markets. At Sturgeon Capital, for example, we believe that investing in early-stage, high growth technology companies, can be a catalyst for meaningful transformation, particularly for low-and middle-income people in countries with nascent digital ecosystems.

Let us unpack the core meaning of impact investing and discuss its specifics in frontier and emerging markets while addressing some misconceptions.

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[ ECONOMY ]

INVESTMENT | Infrastructure | Megacities | Digital Assets & Currencies | Markets

Use of standardised impact Frameworks & principles guiding impact strategy

Tools & systems used for impact measurement and manegment

HOW TRUKKR DIGITISES AND BANKS PAKISTANI SHIPPERS AND CARRIERS

Problem: In Pakistan, just 21% have access to financial accounts.

In the logistic sector, inefficiencies, predominantly paper-based systems, and undocumented shipping activities create barriers for carriers to access formal credit.

Solution: Trukkr’s online logistics management platform offers SaaS solutions with embedded finance capabilities to drive efficiency across the logistics spectrum. Trukkr is digitising and banking a historically underserved sector in Pakistan, optimising supply chains, and improving financial outcomes for both shippers and carriers.

Source: GIINsight 2023: Impact Measurement & Management Practice.

THE EVOLUTION OF IMPACT INVESTING

The concept of socially responsible investing is not new. Originating primarily within development finance institutions (DFIs), this approach gained momentum in the private sector with the rise of microfinance institutions in the 1970s and their aim to use private capital and microloans to foster financial inclusion in emerging markets. Over time, impact investing has evolved across asset classes including debt and equity, introducing a private market perspective to contribute to global development across sectors and regions.

It was not until the mid-2000s that the Rockefeller Foundation coined the term “impact investing” and incubated the Global Impact Investing Network (GIIN), the leading network of practitioners.

The market has grown substantially over the past decades, reflecting the growing awareness of global challenges and the consensus that investors can and should be contributing to the solutions. Businesses are awakening to their potential for positive impact, while consumers are shifting their purchasing preferences towards purpose-driven companies.

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Company achievements: Trukkr has onboarded over 30,000 carriers to date, with at least 336 accounts created for the first time. Throughout 2023, Trukkr used its crucial sector-specific data and visibility into real-time trip execution to underwrite and deploy over 11,000 working capital loans to MSMEs carriers, many who were previously unbanked. So far, Trukkr has provided nearly $20 million in capital loans, bringing financial inclusion in the logistics sector to a new level.

Sturgeon Capital’s support: Trukkr secured an investment from the fund in 2022. Sturgeon also supported the team with raising subsequent funding from co-investors like Accion Venture Labs.

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In the GIIN’s latest market sizing report (2022), the size of the worldwide impact investing market is estimated to be $1.164 trillion in assets under management with over 3,300 organisations. And although the impact investing market is still maturing, efforts to accelerate the development, scale and effectiveness of the industry are gaining significant momentum.

Impact investors’ headquarter locations

DEFINITION AND CORE CHARACTERISTICS

The GIIN defines impact investing as “investments made with the intention to generate positive, measurable social and/or environmental impact alongside a financial return.”

• Intention: While all investments have an “impact”—both short and long-term, positive and negative—impact investing implies the explicit aim of accomplishing specific goals that are beneficial for society, to finance solutions to problems. Without the intent to be impactful, it’s just investing.

This commitment includes articulating a clear impact thesis, transparent impact goals, and strategies for achieving the impact.

• Measurability: Translating this intent into action, and then committing to measure, manage, and report on the social and/or environmental performance of portfolio companies is integral. Impact measurement and management (IMM), hailed as the “hallmark of impact investing,” is arguably the biggest challenge for participants1. Impact data must not only be measured, but leveraged for investment decision-making, identifying risks and mitigating negative consequences. Lastly, actual impact performance must be disclosed in a comparable and actionable manner to stakeholders.

The Core Characteristics of Impact Investing, as defined by the GIIN, complement the above definition and provide clarity on the terms of participating in credible impact investing. These include the “use of evidence and impact data in investment design,” and the “contribution to the growth of the impact investing industry.”

Impact investing and ESG investing are not to be confused.

ESG (environmental, social and governance) encompasses the criteria used to assess corporate behaviour and screen investments. In essence, it highlights the potential financial losses a company may face by neglecting ESG risks and the financial gains achievable by capitalising on ESG opportunities.

ESG investing is more about how these factors affect the company and less about their effect on the world. By seeking to avoid harm and potentially benefit stakeholders, the primary objective of ESG investing remains financial returns, which may not always result in net-positive outcomes. Impact investors go beyond avoiding harm and make conscious decisions to use capital to contribute to solutions.

Some respondents had multiple offices in an effort to better reach investees in disparate markets.

Source: Unlocking the Potential of Frontier Finance, GIIN, 2019

Asset allocations by geographic region

% U.S. & Canada

42

10

Latin America & Caribbean

37

8

South Asia

8

Easten Europe & Central Asia

6

East Asia

29 16 18

5

Southheast Asia

Middle East & North Africa

40

23

Sub-Saharan Africa

Oceania

45

29

Western, Northern & Southern Europe

11 4 3

31

5 16

Proportion of investors allocatingany AUM

Proportion of AUM allocated to each region

Total AUM: $198 billion. Excludes five outlier organisations based on AUM. Respondents may allocate to multiple regions Source: Impact Investing Allocations, Activity & Performance, GIIN, 2023

1 There are a variety of fragmented methods and resources available, which are organised into principles, frameworks and standards to guide impact strategies.

Recently, the industry has united around a handful of frameworks. According to the 2023 GIINSight Series on IMM, the most used were the UN Sustainable Development Goals (SDGs) (76%) and the Impact Management Norms (52%). To describe, implement and measure impact investment activities, credible impact investors rely on shared terminology, generally accepted tools and standardised metrics, most commonly the IRIS+ metrics (78%).

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INVESTMENT | Infrastructure | Megacities | Digital Assets & Currencies | Markets

IN UZBEKISTAN, BILLZ HELPS MSMES DIGITISE AND ACCESS WORKING CAPITAL Problem: Contributing to 78% of the workforce and 60% of GDP, Uzbekistan's micro-, small and medium enterprises (MSMEs) grapple with operational inefficiencies and limited access to financial products. Challenges include perceived risks, lack of collateral, and insufficient digital adoption, with 83% of MSMEs lacking access to digital tools.

Solution: Billz is an all-in-one retail management software that serves as a comprehensive solution to the challenges faced by MSMEs. Their software supports the digital transformation of offline stores and enables MSMEs to access working capital loans to grow their business.

Company results: As of June 2024, the company had empowered over 1,800 MSMEs in retail locations across Central Asia.

The platform had generated over $73 million in revenue for its customers, putting them on track to achieve an annualised customer turnover of more than $800 million. By producing over 10,000 educational resources, Billz enabled 76% of its clients to adopt a digital tool for the first time. Digitalisation not only offers a path to formality but can also equip MSMEs with greater access to global markets and reach to customers. It improves the productivity, competitiveness, and profitability of the MSME sector, thereby stimulating economic growth and job creation.

Sturgeon Capital’s support: The fund injected $300,000 into Billz in 2022. It also helped the company partner with a financial institution to leverage collected data and facilitate 250 collateral-free loans worth over $7 million to date.

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IMPACT INVESTING IN FRONTIER AND EMERGING MARKETS

Frontier and emerging markets (FEMs) offer a unique mix of challenges and opportunities, with less mature and stable financial markets, and uncertainties related to the currency, market, political situations and regulatory environments. However, when investors collaborate with local partners, leverage local expertise and implement robust risk management strategies, impact investing in FEMs has the potential to generate higher impact and financial returns than in developed markets.

Compared with developed countries, FEMs typically face, on average, higher levels of poverty, inequality, and less rigorous environmental regulations. These problems are reflected in indicators such as the Human Development Index (HDI), which links income levels to broader development indicators, incorporating

This impact approach empowers companies to better understand their customers, design more effective businesses, build authentic brands and attract new talent and capital not only traditional economic metrics like GNI or GDP to measure success, but also vital social and environmental factors that impact well-being. On average, FEMs exhibit lower GDP per capita and lower, or often troubling, HDI scores.

As a consequence, FEMs offer greater potential to create deep, lasting impact, and at a lower cost; one dollar invested goes a lot further in addressing a pressing need.

FEMs also produce more investable impact where profitability and impactful outcomes are closely aligned, capitalising on the inherent correlation between socio-economic progress with business and market growth. This challenges a common misconception that impact investing involves a trade-off between impact and financial returns2. Increasing research indicates that strong risk-adjusted financial returns are not only possible but are being achieved in FEMs. For instance, investing in companies providing essential goods and services tends to be more stable, less subject to

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discretionary spending, and often resilient during economic downturns, making it a sound business strategy in uncertain times. A 2019 GIIN study supports this, with 87% of FEM investors seeking risk-adjusted, market-returns surveyed found their “investments meeting or exceeding financial performance expectations.”

At Sturgeon, we view financial and impact returns as complementary and mutually reinforcing, rather than contradictory and competing priorities. This aligns with a strategy coined Impact Alpha, recognising that the integration of impact objectives into the investment process can add value across our portfolio, and ultimately enhance overall investment performance. Impact considerations can provide unique insights not yet valued by the broader market and promote additional rigour in operations, stakeholder engagement and risk management. This impact approach empowers companies to better understand their customers, design more effective businesses, build authentic brands and attract new talent and capital.

From a macroeconomic perspective, FEMs are typically characterised by capital scarcity, combined with higher economic and demographic growth, and an emerging consumer class.

This dynamic presents an attractive opportunity for investors to capitalise on economic development while being rewarded for leveraging their capital—the scarce resource. Capital gaps, both in volume and type, are particularly pronounced in frontier markets, where investment opportunities often lack track records.

FEM-focused impact investors, like Sturgeon Capital, play a crucial role in bridging this gap by funding underdeveloped financial markets and acting as catalysts for attracting further investments from mainstream investors.

Although research in this young market segment is still limited and evolving, and not every investment will guarantee high returns, many believe that these markets have the potential to outperform investments in more developed economies over the long term.

The impact investing sector is full of compelling success stories, as witnessed by Sturgeon Capital's portfolio. These narratives highlight how impact investors strategically deploy their capital, showcase global entrepreneurs with innovative ideas, and illustrate how end consumers and other stakeholders have benefitted from novel solutions.

2 At its core, impact investing challenges the traditional notion that financial returns and social and/or environmental impact are incompatible – impact investors seek a financial return on capital, albeit across a spectrum that ranges from below-market-rate to risk-adjusted market rate. An increasing number of asset owners and investors are recognizing the advantages of incorporating impact considerations, moving away from the trade-off mindset regarding investment performance and purpose-driven goals. In fact, according to the 2023 GIINSight Series, 74% of impact investors target risk-adjusted market-rate returns. At the same time, many companies are offering products and services where positive value creation is intrinsic to the business model. When such businesses grow and achieve commercial success, so does their positive impact. Studies such as the 2021 Net Impact Report by the Upright Project, conclude that impact is definitely not at odds with profit.

Emerging market-focused impact investors’ asset allocations by geographic region

Emerging market-focused impact investors defined as allocating at least 75% of their impact AUM to emerging markets. This data excludes five outlier organisations based on AUM. Respondents may allocate to multiple regions.

Source: GIIN 2023 survey

Emerging market-focused impact investors’ asset allocations by sector

Other sectors include waste recycling, social tourism, aquaculture and cross-cutting lenses that apply across sectors, such as quality jobs, circular economy and climate solutions.

Most notable: a significant majority of emerging market-focused investors (86%) include at least some allocation to financial services and microfinance in their portfolios and, collectively, 49% of their AUM are directed to this impact theme, compared to just 6% of AUM from developed market investors who focus on financial inclusion.

Source: GIIN 2023 survey

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CENTRAL ASIA

By Stanislav Akhmedzyanov

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PHOTO: NICK FEWINGS/UNSPLASH

The next frontier in global logistics

Stanislav Akhmedzyanov is Managing Partner at IBC Global, an international consultancy specialising in industrial and warehousing property (ibcgroup.kz).

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F

or decades, Central Asia—a region home to approximately 70 million people across five post-Soviet states: Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan—has remained largely uncharted on the global logistics map. Domestic demand was largely met by facilities inherited from the Soviet era. With few exceptions, there was minimal need for modern warehousing facilities, and infrastructure development attracted little interest.

However, over the past ten years, the development of regional logistics and warehouse infrastructure was spurred by new impulses: • The development of China's Belt and Road global infrastructure initiative since 2013, including one of its key components, the Trans-Caspian International Transport Route (aka Middle Corridor); • The Covid pandemic, in 2019-2021, which fuelled a surge in e-commerce, resulting in a sharp increase in demand for quality warehousing facilities; • The region’s rapid economic growth1, driven by a young and tech-savvy population;

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Starting from 2022, the imposition of international sanctions against Russia—a key trade partner of the region at Kazakhstan’s northern border— which prompted the development of existing or new transit routes.

All this gave the region a unique opportunity to position itself as a major transport and logistics hub across the continent, revitalising the ancient Silk Road in a modern economic context.

FROM 53 TO 18 DAYS

Bypassing Russia, the Middle Corridor2—which consists of about 4,250 km of rail lines and about 500 km of seaway via Kazakhstan, Azerbaijan and Georgia—is the shortest transport route from China to Europe. Cargo is routed through the Caspian Sea, using the ports of Aktau (Kazakhstan), Baku (Azerbaijan) and Poti (Georgia), before reaching Türkey or continuing to the EU Black Sea ports of Burgas (Bulgaria) and Constanța (Romania).

In 2023, this route facilitated the delivery of 2.76 million tonnes of various goods, marking a 65% increase from 2022.

In 2024, the traffic is expected to reach 3.29 million tonnes.

While the cargo transit time has already been reduced from 38-53 days to 18-23 days, it is highly likely that this period will soon be further shortened to 14-18 days, with only five of those days spent within Kazakhstan's borders.

PHOTO: AXP PHOTOGRAPHY/UNSPLASH

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Russia also relies on logistical capacities and transport connections in this region. Recently, traffic has significantly increased along the North-South Corridor, which links Russia with Iran and India via the Caspian Sea. This 7,200km multi-modal transport network currently traverses Azerbaijan and Iran, bypassing Central Asia, although new routes under consideration do include Kazakhstan and Turkmenistan. With proper efforts, the Middle Corridor and North-South Corridor will reach a capacity of 10 million tonnes each by 2027.

To sustain this growth, considerable investments are required, particularly in supply chain and logistics infrastructure.

The EBRD estimates that €18.5 billion in cumulative investments are required to make the Middle Corridor fully productive. In comparison, net cumulative foreign direct investment (FDI) in Central Asia for 2023 amounted to $7.4 billion (€6.8 billion), according to UNCTAD.

ever, the country’s total available quality warehouse space barely exceeds 1.4 million sq. m.—equating to just 0.07 sq. m. per inhabitant.

Under government plans3, an additional 2 million sq. m. of facilities are set to become available in the next three to four years. Adjusted for population growth, this will increase the country’s quality warehousing space to 0.16 sq.

The severe shortage of warehouse space in Central Asia has driven rental rates to unprecedented levels

INFRASTRUCTURE UNDER PRESSURE

Demand for warehousing facilities in the region has surged to unprecedented levels, driven by four main types of customers: major international brands, online marketplaces, domestic retailers and foreign logistics companies, predominantly from Russia. According to our calculations, these customer types alone require approximately 1.2 million sq. m. of quality warehouse space in Kazakhstan alone. How-

m. per capita by 2027. This level will roughly align with infrastructure development in Türkey and Belarus, but will still be less than half of Russia’s current capacity, five times less than China’s, and several dozen times less than that of Western Europe or the USA.

QUALITY WAREHOUSE SPACE PER CAPITA (2023-24)

The severe shortage of warehouse space in Central Asia has driven rental rates to unprecedented levels. In Tashkent and Almaty, the average annual rate exceeds $152-156 per sq. m.4, according to NF Group, which is about 15% higher than

Trans-Caspian International Transport Route

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Quality warehouse space per capita (2023-24)

Class A warehouse rental prices per sq. m. and per year (2023-24)

Source: IBC Global, NF Group cited by Kursiv

With an average annual yield of 17-20%, investments are expected to be recouped within just five to six years

in Dubai or Manchester, notes Savills, and 40-60%5 higher than in the Moscow region, our data indicate. Kyrgyzstan ranks similarly to Munich or Bristol in terms of storage costs ($114 per sq. m.), far outpacing major major EU port locations such as Rotterdam and Antwerp, as well as Eastern European countries and the Caucasus states.

While the high rental rates and limited options may deter some tenants, investors are enjoying extremely favourable conditions. In Central Asia, the payback period for warehouse complexes is only half as long as in Europe.

With an average annual yield of 17-20%, investments are expected to be recouped within just five to six years6.

INVESTMENT BOOM

Kazakhstan's President Kassym-Jomart Tokayev has identified the transport and logistics industry as a key driver of the country's economic development. He has tasked his country with solidifying its role as a transit hub in Eurasia, with the long-term goal of becoming a fully-fledged transport and logistics power. The share of the transport and logistics sector in the country's GDP is expected to increase by one and a half times, reaching some 9% within three years.

Priority infrastructure projects in Kazakhstan include constructing railway lines in the eastern, southeastern and

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southern regions near the borders with China, Kyrgyzstan and Uzbekistan. Simultaneously, plans are underway to develop a network of bonded warehouses in the country's major cities—Astana, Almaty and Shymkent. Additional initiatives involve establishing goods-processing hubs at border areas shared with other countries of Central Asia, creating a container facility known as the ‘Caspian Hub’ and building container terminals in western Kazakhstan.

From January to June 2024, the transport and warehousing sector received investments totaling 1.07 trillion tenge ($2.1 billion), up 33% from the same period of the previous year. Over half of this funding has been allocated to freight storage and auxiliary transportation services.

In the first three months of 2024, Kazakhstan's economy saw a net inflow of $1.94 billion in FDI. Of this total, 13.2% was directed towards the transport and warehousing sector. Specifically, the warehousing sector received $70.2 million, nearly equivalent to the combined total of the previous two years.

CHINA, EUROPE AND RUSSIA IN THE GAME

For China, Kazakhstan is a crucial component in the execution of the ‘One Belt, One Road’ initiative and, specifically, the Middle Corridor. In spring 2023, Shandong Port Group Corporation announced plans to develop a significant warehouse cluster and dry port near Almaty.

A closed logistics cycle is gradually taking shape between China, Kazakhstan and Russia. This involves consolidating cargo bases in Xi'an (China) and Selyatino (Moscow region) and organising transit traffic through Kazakhstan. The capabilities of Lianyungang port, the dry port in Xi'an, and the free economic zone "Khorgos-Eastern Gate" will be actively utilised, Xinhua News Agency reported.

The European Union is also turning its attention to Central Asia. During the January 2024 investment forum ‘The Global Gateway’ in Brussels, European Commission Executive Vice President Valdis Dombrovskis presented an EU-led investment plan for the Middle Corridor totaling €10 billion.

Meanwhile, Russian private market players are significantly boosting Kazakhstan's warehouse infrastructure.

Online marketplace Wildberries has announced plans to launch two logistics centres next year—one in Almaty, spanning 100,000 sq. m., and another in Astana, covering 150,000 sq. m. The total investment in these facilities amounts to $132 million, covering construction costs alone, not including equipment and warehouse inventory.

Meanwhile, Ozon’s 38,000 sq. m. full-field centre in Astana, launched in early 2023, is expected to expand by 30,000 square metres in the near future. Additionally, the

Share of investments in fixed capital allocated to transport and warehousing in Kazakhstan

Russian e-commerce giant has announced the construction of a 42,000 sq. m. logistics facility in the Almaty region, requiring an investment of $31 million.

The Russian Export Centre offers asset insurance for manufacturers and distributors operating internationally, covering up to 90% of the amount owed by foreign counterparties that fail to meet their obligations. This is particularly valuable in Central Asia, a region perceived as having persistent risks of economic and socio-political instability.

Central Asian countries have much to achieve to bring their logistics to the required level. In addition to constructing warehouses and transport routes, they must continue developing their human capital, investing in digital infrastructure, reforming legislation and fiscal policies, ensuring property rights protection and promoting regional integration.

If these efforts come to fruition, Central Asia could see the development of up to 20 million sq. m. of quality warehouse space. The growth potential is considerable, with demand expected to increase by 4.6 times in Kazakhstan, 8.8 times in Uzbekistan and 20 times in Tajikistan.

nnual GDP growth reaches 4.5-5.5% in Kazakhstan and 7.0% in Kyrgyzstan and A Uzbekistan (EBRD forecast for 2025).

2 Also known as the Trans-Caspian International Transport Route (TITR) 3 “Concept for the Development of Transport and Logistics Potential of the Republic of Kazakhstan until 2030 4 Here and further, including OPEX, excluding VAT 5 Depending on currency exchange variations 6 The shortage in the warehouse segment has led to a trend of irrevocable contracts with terms of up to 10 years, allowing investors to recoup their investments well before the contract expires. Such long-term agreements are unique to this segment.

Another outcome of this shortage is the growing popularity of the Built-to-Suit (BTS) format, where a developer constructs a complex tailored to a specific customer. The tenant agrees to long-term commitments from the outset, ensuring 100% occupancy and stable income for the owner. In the current market, 93% of potential clients are willing to opt for the BTS option.

PHOTO: EVGENY MATVEEV/UNSPLASH

1

Source: Qazstat

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CUTTING-EDGE URBAN SOLUTIONS FOR ACHIEVING THE SDGS

I

n the pursuit of the Sustainable Development Goals (SDGs), urban innovation plays a pivotal role in shaping resilient and sustainable cities. This catalogue showcases some of the newest advances—from a street-cleaning robot and a water-from-air device to a public safety drone and a dry waste sorting machine—aimed at enhancing citizens’ lives, health and safety.

Manufactured across various countries—including China, India, Russia, Türkiye, the USA and more—each product embodies a unique approach to solving urban issues. Exploring these diverse and remarkable solutions provides a glimpse into the future that forward-thinking cities are crafting for their residents.

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UV-C sterilisation robot Supplier

Akin Robotics Konya, Türkiye akinrobotics.com

SDGs

• Good Health and Well-Being Problem

Health risks in public places

Solution

The UV-C sterilisation robots offer reliable and precise disinfection in enclosed spaces prone to infection, effectively combating viruses and bacteria. This solution is ideal for hospital wards and corridors, operating rooms, canteens, food processing facilities, gyms, playgrounds, and various other industries requiring stringent sterilisation.

Equipped with a voice notification system, the robot provides audible alerts before and after the sterilisation process or when it detects a moving object. The Lidar system enables the robot to identify and display surrounding objects.

A screen displays information about the battery level, lamp life, and operational status, while indicator lights signal the robot's activity.

Features

• UV wavelength of 254 nm • 8 fluorescent lamps • 360-degree impact area

Sidewalk cleaning robot PIXEL Supplier

Avtonomika Moscow, Russia avtonomika.msk.ru

SDGs

• Sustainable Cities and Communities Problem

City pollution

Solution

Pixel is an autonomous robot developed at Moscow's Lomonosov Scientific and Technological Cluster to assist with the cleaning of long sidewalks and paths. Equipped with permanent all-wheel drive, Pixel can be fitted with interchangeable attachments for sweeping, washing, or snow removal. Its battery enables up to 16 hours of continuous operation. As an electric vehicle, Pixel is environmentally friendly and operates quietly, allowing for nighttime cleaning.

Capable of reaching speeds of 10 km/h, Pixel functions similarly to a robotic vacuum cleaner. It receives cleaning routes from a central control system and returns to its base upon completion. Advanced safety features, including machine vision, lidar, radar, and multiple cameras, ensure safe operation around pedestrians and animals. Pixel can detect and navigate around obstacles such as people, parked cars, strollers, and scooters, pausing when necessary and resuming cleaning once the obstruction is cleared.

Features

• More than 20,000 sq.m. cleaned daily • 70% of manual cleaning automatised • 16 hours of autonomous work 51

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Hospital robot ARI Supplier

PAL Robotics Barcelona, Spain pal-robotics.com

SDGs

• Good Health and Well-Being Problem

Waste-collecting vessel CLEARBOT NEO Supplier

Clearbot Hong Kong, China clearbot.org

SDGs

• Clean Water and Sanitation • Life Below Water • Sustainable Cities and Communities Problem

Marine pollution

Solution

Clearbot Neo is an autonomous, AI-powered, battery-operated vessel designed to collect waste from shorelines and waterways. This robot can retrieve surface debris, oil, foam, and even invasive plant species. It operates under remote control or autonomously, following either a predetermined or self-navigated GPS route and can be deployed by a single operator.

Equipped with a camera, Clearbot Neo surveys the water's surface, identifying trash while avoiding marine life, obstacles, and other boats. A second camera captures images of collected debris on the conveyor belt, transmitting them with GPS coordinates to the company's database. The boat incorporates anti-collision technology to adjust its course when detecting hazards within a 100-metre radius. Solar panels at the on-land docking station recharge the batteries.

Features

• 200 kg waste / 15 L of oil collected per mission • 5 km range • 4 hours of battery life

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Pressure on hospital staff, patients’ anxiety

Solution

ARI is a socially intelligent collaborative robot that leverages AI to facilitate natural conversation. Used in hospitals, ARI can understand patient needs and assist hospital staff with routine tasks.

Standing at 165 cm tall, ARI features a 10.1-inch, 1200x800 touchscreen. It is capable of conversing in over 30 languages. Its movements, speech, and touchscreen content can be customised to suit various applications.

By handling tasks such as welcoming patients, assisting with check-in and check-out procedures, answering inquiries, and providing directions, ARI alleviates the workload of busy hospital staff. Additionally, the robot offers companionship to patients, reducing feelings of loneliness.

Trials have demonstrated that ARI can mitigate stress and anxiety, particularly among elderly patients, often associated with stays at the hospital. Furthermore, by limiting physical interaction between clinicians and patients, ARI helps reduce the risk of infection transmission.

Features

• 30+ spoken languages

• 3D gaze estimation • 8-12 hours of autonomous work

Sonergy Brasil’s solar panels

Public safety drone FOTOKITE SIGMA

Supplier

Supplier

Sonergy Brasil Maringá, Brazil sonergybrasil.com.br

SDGs

• Affordable and Clean Energy • Industry, Innovation and Infrastructure Problem

High electricity demand

Solution

Sonergy Brasil’s photovoltaic systems are characterised by their quiet operation, low maintenance requirements and environmental benefits. Each solar panel is connected to a centralised software system that manages other installations under the same user account. For its solar panel solutions, the company ensures a payback period of less than five years.

Features

• Saves up to 95% of monthly energy bills • Hundreds of installations across Brazil • 180 MW with lease

Fotokite Sigma Zurich, Switzerland Syracuse and Boulder, USA fotokite.com

SDGs

• Climate Action • Industry, Innovation and Infrastructure Problem

Emergency situations

Solution

Fotokite Sigma is an actively tethered drone providing public safety teams with essential situational awareness. This UAS technology, recognised by authorities as a key safety solution, is used daily for rescue missions, fire responses, search operations, and other critical tasks.

Delivering real-time, mission-critical insights on a rugged tablet, Fotokite Sigma enables responders to make well-informed decisions. Its video stream is captured by three cameras: a thermal imaging camera, a wide-angle colour camera and a zoom camera. The system can swiftly transmit live video to remote viewers via Wi-Fi or mobile networks, allowing over 20 simultaneous users to access both RGB and thermal IR streams.

Features

• 24+ hours flight time • 45m maximum altitude • 1.3 kg carbon fiber frame 53

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Robot-assisted laparoscopic surgery system TOUMAI Supplier

Shanghai Microport Medbot Shanghai, China medbotsurgical.com

SDGs

• Good Health and Well-Being Problem

Water-from-air device GEN Supplier

Ma Hawa Abu Dhabi, UAE mahawa.ae

SDGs

• Clean Water and Sanitation • Responsible Consumption and Production • Climate Action • Sustainable Cities and Communities Problem

Lack of drinking water

Solution

GEN is a water-from-air device utilising innovative water purification technology. This process involves sediment filtration, mineralization, activated carbon filtering, and a microbiological treatment system. The unit draws in air, cools it to extract water, and then purifies the resulting condensate into clean drinking water.

The device is available in various sizes to suit different needs. From portable units suitable for worksites and homes to larger, mobile models for public spaces and residential complexes, and even industrial-scale units for water production farms, GEN offers a flexible solution.

By addressing the global water scarcity crisis, GEN helps mitigate associated health, social, and environmental challenges, including poor water sanitation and plastic pollution.

Features

• Up to 6,000 litres of drinking water per day • Multi-barrier air filtration • 60 kW nominal power consumption 54

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High workload and shortage of qualified surgeons, especially in remote areas

Solution

The laparoscopic surgery robot Toumai is a minimally invasive medical device equipped with force-sensing technology. It enables surgeons to perform operations remotely via teleoperation, simplifying procedures and reducing operating time. Toumai’s imaging system offers 10x optical magnification with high-definition, glasses-free 3D visualisation, enhancing precision.

Toumai's surgical arm stabilises surgeon tremor and provides instrument articulation surpassing human capabilities.

This maximises surgeon skills, facilitating complex procedures while improving safety and enabling precise identification and dissection. Technical support and training programmes offered by the manufacturer empower medical institutions to establish robotic surgery teams, elevating local diagnostic, treatment and overall healthcare standards.

Features

• 5G tele-surgery • 10x optical magnification • 7 degrees of freedom of the surgical arm system

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Dry waste sorting solutions SUKA and NETRA Supplier

Ishitva Robotic Systems Ahmedabad, India ishitva.in/airsorting.html

SDGs

• Responsible Consumption and Production Problem

Environmental pollution by garbage

Security patrol robot PROMPT Supplier

SMP Robotics Systems Corp.

Sausalito, USA smprobotics.com/security_robot/ ai-patrol-robot/

SDGs

• Good Health and Well-Being Problem

Ensuring city residents’ safety

Solution

Solution

The SUKA AI-powered air sorting solution is a modular, plug and play high-speed mechanical sorting machine designed to efficiently handle large volumes of dry waste. The system combines a high-speed acceleration belt, the NETRA Vision System, and high-speed pneumatic valves, all controlled via a user-friendly touch screen panel.

Powered by NETRA AI, the machine's vision system enables SUKA to accurately identify various types of plastic within mixed dry waste on a fast-moving conveyor. It can sort materials based on polymer type, such as PET, PP, and HDPE, as well as by colour, brand, and size.

Features

• 2-3m per second execute • 2-6 tons per hour of plastic sorting • 95%+ accuracy level

Prompt is a security patrol robot designed for continuous monitoring of city streets, footpaths, and private areas. Utilising intelligent video analytics, it ensures safety across medium distances. Prompt is equipped with facial recognition technology that operates reliably in various conditions, including extreme temperatures and low-light environments.

The robot can thus distinguish between authorised personnel and intruders through image capture and analysis.

Powered by artificial intelligence, Prompt can autonomously respond to threats and intrusions. It is equipped with voice alerts, a beacon light, an intercom and a panic button to deter intruders and notify authorities. For example, if an intruder is detected in a seemingly unoccupied area, the robot will immediately alert a dispatcher.

Features

• High efficiency Wi-Fi/4G antenna • Six 360-degree panoramic HD-cameras • Working temperatures from -25°C to +55°C 55

AVTONOMIKA Electric utility manufacturer

• Autonomous and manned operation modes • AI adaptation to specific cleaning environment • Precise mapping of cleaning areas

• All-wheel-drive electric chassis • All-weather, all-climate outdoor operation • Modular design for all possible operations

3x lower cost of cleaning compared to regular machine operation 10x lower cost of cleaning compared to manual cleaning 2x longer life than usual diesel solutions Up to 15 years of battery life due to innovative charging algorithms 40% time and energy saving through route optimisation algorithms

2x more ecological and quiet than regular machines 16 hours of continuous work per day Adjustable speed and quality of cleaning depending on the level of contamination Absolutely safe for people and animals due to multisensory vision, positioning and construction Easy set up of complex cleaning scenarios Smooth collaborative work and coordinationbetween a group of robots/people and robots

Future possibilities • Unmanned pit stops and change of attachments

Robotic cleaning

• Robot training for specific environments • Updates to enhance autonomous functioning

• Automatic portable garage

URBAN ENVIRONMENT INTEGRATION

PIXEL Scheme

• Optimal charging infrastructure planning • V2X-readiness (IoT) • Visual and tactile features shaping positive perception by citizens

MINIMISATION OF HUMAN ENGAGEMENT

Environment for the robots

Complete set of technological operations SERVICE

EQUIPMENT

sweeping of sidewalks and bikeways

• vacuum cleaner, • front brush, • a set of disc brushes with a third brush-manipulator

washing of sidewalks and bikeways

• high pressure water rack with spray nozzles

irrigation and watering

• rolling irrigation; irrigation of the surrounding area (lawns, trees and shrubs) • diluted fertilizer application

mowing

• lawn mowing equipment (optional: with mulch built-in function)

cleaning assistance

• robot following the operator (by RFID tag) • water delivery or transportation of inventory

More about projects and cooperation: avtonomika_info@yahoo.com

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CRYPTO CURRENCIES

2024’S BULL AND BEAR RODEO

Financial markets, including cryptocurrency markets, often follow well-defined cycles, driven by the collective psychology of investors, macroeconomic conditions and market-specific events. These cycles primarily fall into two categories: bull markets and bear markets.

By Maxime Duhommet

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• Bull markets are characterised by a continuous and sustained rise in asset prices. These phases are generally fueled by strong demand, investor optimism, and favourable economic conditions. In cryptocurrencies, these periods are often marked by intense media coverage, a massive influx of new investors and valuations reaching all-time highs.

• Bear markets are marked by a prolonged decline in prices. These phases occur when investor confidence wanes, leading to massive sell-offs. In the context of cryptocurrencies, these periods can be exacerbated by unfavourable regulations, exchange platform hacks or corrections following a speculative bubble.

Bitcoin (BTC), as the first and leading cryptocurrency, provides a perfect case study to illustrate these cycles. Since its creation in 2009, Bitcoin has experienced several bull and bear cycles: • 2013-2014: Bitcoin rose from under $100 at the beginning of 2013 to over $1,100 in December of the same year, before falling to around $200 in 2015. This first cycle was marked by the euphoria surrounding early adopters and the initial acceptance of Bitcoin by companies like Overstock.com.

ILLUSTRATION BY THINGS/SHUTTERSTOCK

• 2017-2018: The most iconic cycle, where Bitcoin nearly reached $20,000 in December 2017, followed by a sharp drop in 2018, hitting a low of $3,200 in December of that year. This cycle was marked by widespread enthusiasm for ICOs (Initial Coin Offerings) and the massive entry of new retail investors.

• 2020-2021: After a long accumulation period, Bitcoin began a new bull cycle, reaching an all-time high of around $69,000 in November 2021. This cycle was supported by increased institutional interest, growing recognition of Bitcoin as a reserve asset, and the economic crisis triggered by the COVID-19 pandemic.

• 2022-2023: The last significant bear market in the cryptocurrency market, often referred to as the "crypto winter," began in late 2021. The market saw a sharp decline of Bitcoin and other cryptocurrencies amid widespread market uncertainty and a decrease in trading volumes.

Macroeconomic concerns, regulatory pressures and the collapse of major crypto projects— like Terra (LUNA) and the FTX exchange—contributed to the downturn.

Maxime Duhommet is a quantitative trader based in Paris. He is co-head of Davensi, a crypto platform and digital asset manager, developing a fullyregulated and independent exchange in Europe (Davensi.com).

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A DISAPPOINTING YEAR?

In late 2023, the bear market phase seemed to have ended, with several indicators pointing towards a potential shift to a bull market: • Bitcoin price stabilisation: After a prolonged period of declining prices, Bitcoin and other major cryptocurrencies showed signs of price stabilisation, suggesting that the market might have found a bottom.

• Increase in trading volumes: There was a noticeable increase in trading volumes on major cryptocurrency exchanges, indicating renewed investor interest and confidence in the market’s future prospects.

• Positive regulatory developments: Several countries made moves towards clearer and more favourable regulations for cryptocurrencies, which improved the market sentiment and encouraged more participation from both retail and institutional investors.

Historical Bull and Bear cycles in the Bitcoin market (2014-2023)

BTC/USD in logarithmic scale — Source: Tradingview

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Several events taking place in the first part of the year actually contributed to fuel optimism. The approval of Bitcoin exchange traded funds (ETFs) by the SEC, in early January 2024, marked a significant step towards mainstream adoption. The growing involvement of institutional investors added credibility to cryptocurrencies as a legitimate asset class, attracting an even wider range of traditional investors.

A Bitcoin halving took place on April 19, reducing the mining reward by half, which created expectations of reduced supply in new coins. By generating scarcity, previous Bitcoin halvings had often led to increased prices, catalysing bull cycles.

Meanwhile, with persistent inflation and accommodative monetary policies from central banks, many saw cryptocurrencies as a potential hedge against inflation. The continuous printing of fiat currencies by central banks to stimulate economies led to concerns about currency devaluation, making cryptocurrencies, particularly Bitcoin, more attractive as a store of value.

The actual performance of the cryptocurrency market in 2024 did not turn out to be uniformly positive However, the actual performance of the cryptocurrency market in 2024 did not turn out to be uniformly positive.

A comparative chart of Bitcoin prices since the beginning of 2024 shows significant fluctuations, with several attempts at bullish breakouts that failed to hold above key resistance levels. Rather than the typical dynamics of a bull run, this year’s evolutions have been those of a consolidating market, with support levels being repeatedly tested.

According to CoinGecko, Bitcoin ended Q2 2024 at around $62,734, down 11.9% from the beginning of the year. Meanwhile, trading volume on centralised exchanges reached $3.40 trillion in Q2 2024, down 12.2% from the previous quarter.

Institutional adoption of cryptocurrencies did strengthen in 2024, largely thanks to the approval of Bitcoin spot ETFs. However, these effects were offset by macroeconomic volatility and the ongoing hesitation of some institutional investors to significantly increase their exposure to cryptocurrencies.

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Bitcoin price fluctuations from Jan. 1 to Aug. 15, 2024

Source: Tradingview

ARE CYCLES STILL THERE?

Despite the volatility observed in 2024, most industry experts continue to support the validity of the market cycle theory for cryptocurrencies.

• Impact of halving: The key argument remains that the April 2024 Bitcoin halving will have a delayed but significant positive effect on prices, as in previous cycles.

• Supportive regulations and increased institutional adoption are expected to attract new types of investors to the market, leading to a gradual rise in prices.

• Technological enhancements will have beneficial effects on the infrastructure, such as the Lightning Network for Bitcoin.

Some analysts, though in the minority, point to factors that could delay or alter the expected bull cycle. Cryptocurrency market cycles could lengthen as the market matures, they argue, with less spectacular but more sustained long-term growth. Bitcoin growth could be more gradual, far from the explosive peaks of previous cycles.

In addition, macroeconomic uncertainty, with risks of a global recession and geopolitical tensions, could keep volatility high and delay the formation of a sustainable bull market.

SCENARIOS FOR THE FUTURE

Fueled by the aforementioned positive factors, the cryptocurrency market could experience a substantial recovery this year.

In this optimistic scenario, Bitcoin could surpass $100,000 by the end of 2024, leading to a price increase for major altcoins (Ethereum, Solana, etc.).

In a conservative scenario, the market could remain volatile, with regular ups and downs, without reaching the expected highs. Bitcoin could stabilise between $60,000 and $70,000 by

the end of 2024. This scenario assumes that macroeconomic uncertainty persists, but cryptocurrency adoption continues to grow—slowly, but surely.

Pessimists point out several external factors that could lead to a significant drop in cryptocurrency prices. A prolonged global economic recession, major geopolitical tensions or unexpected regulatory tightening, in particular, could lead to such an outcome. In this context, investors might flee risky assets, including cryptocurrencies, in favour of safer havens like gold or government bonds.

Under this scenario, Bitcoin could fall below $30,000 before finding solid support. Altcoins, often more volatile, could see even steeper declines, with a reduction in their total market capitalization. Though not the most probable, this remains a plausible scenario, especially in a context where global markets are highly interconnected and sensitive to external shocks.

CONCLUSION

In my opinion, the fundamentals supporting crypto assets remain strong, despite the mixed performance of the cryptocurrency market in 2024. Bitcoin, along with other major cryptocurrencies, continues to benefit from growing adoption by both institutions and individuals.

Market cycles remain an essential feature of the sector, and while 2024 may have defied the expectations of some investors, it would be premature to conclude that this year’s evolutions have ended or even seriously challenged the cycle theory.

Most industry professionals continue to believe in the potential for a future bull run, even if its timing might differ from initial expectations. The scenarios described above highlight the need for investors to stay vigilant and well-informed, ready to adapt to the rapid changes that characterise this market. Cryptocurrencies still represent an emerging asset class with considerable growth potential, but they require an informed and cautious investment approach.

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Should the world worry about China's housing and banking crises?

N

By Peter Frerichs and Adrien Henni

Peter Frerichs is an independent writer based in Los Angeles.

ot all is rosy in the Middle Kingdom.

Since 2021, its economy has been destabilized by two major crises, challenging the country’s development model and sparking concerns about potential impacts on the global economy.

As the country urbanised, Chinese growth had long leaned heavily on real estate. Investment in this sector exceeded 14% of GDP in 2013, according to official sources.

Today, the country boasts one of the highest rates of homeownership (exceeding 80% of all urban households) and multiple/second home ownership (exceeding 20%) in the world.

While the demand for homes in Chinese cities boomed over the past decades, early signs of a housing bubble began to percolate before the pandemic. Taking note, developers took out eye-popping amounts of debt to keep pace, eventually catching President Xi Jinping's attention.

Adrien Henni is the founder of International Digital News, a tech news and research agency dedicated to the emerging tech scenes of Europe and Asia.

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FOTO:

THE UNRAVELING

In an attempt to ward off a housing crisis, Xi implemented regulations to deleverage the real estate industry. Banks were also constrained from making further loans to developers, all of which would seemingly mitigate the chances of a pending disaster.

But the sector began to unravel in August 2021, when the country’s second-largest property developer, the Evergrande Group, promptly halted construction. The following month, the property giant missed two offshore bond coupon payments for a total of $131 million, and the crisis soon spread to fellow developers such as Fantasia Holdings, Kaisa Group, Country Garden, Modern Land, Sunac, and Sinic Holdings.

By November 2021, the sheer size of the loans to property developers began taking their toll on Chinese banks.

Combined with an overall economic slowdown, several mid-tier banks went under. This was expected, but it wasn’t until relatively recently, when 40 Chinese banks disappeared, that global markets began to take notice. Mismanaged Chinese banks lent heavily to real-estate developers,

%

Monthly year-overyear price increase for new residential buildings in China’s 70 largest cities (in percent).

Source: National bureau of statistics of China via Tradingeconomics. com and Statista

thus exposing themselves to the housing crisis. As of mid2024, the number of banks that had failed was four times the figure in all of 2023, according to industry insiders cited

by Chinese financial news agency Yicai Global.

WHAT NEXT?

PHOTO: CHINA PHOTOS/GETTY IMAGES

The possibility of direct or indirect effects on the global economy from the Chinese property and banking crises cannot be ignored.

“The potential impact of a banking crisis in China could be exponentially greater than even the US subprime mortgage crisis of 2007-08, given the size and interconnectedness of Chinese banks with the global financial system,” warned Arturo Bris, professor of finance and Director of the IMD World Competitiveness, in a February 2024 article.

Since the four biggest banks in the world by total assets are all Chinese—led by the Industrial and Commercial Bank of China with assets totaling $5.4 trillion,—the global financial system could hardly remain immune to a major issue in the Chinese banking system, the expert explained.

Moreover, global supply chains could be disrupted, since many multinational companies outsource produc-

In some cases in the past, shocks originating in China had even larger spillover effects on commodity markets than those of shocks originating in the United States

tion to Chinese manufacturers. “This could impact industries ranging from technology to automotive to consumer goods, all of which rely on China as ‘the world’s factory,’” believes Bris.

The potential global repercussions might not stop here.

Should the country’s economy decelerate, exporters to China would certainly be hit, Euromonitor International underscored in a 2023 note. The country is among the largest consumers of machinery, hi-tech goods, luxury goods, as well as commodities, which China imports massively from Latin America and Australia.

In some cases in the past, shocks originating in China had even larger spillover effects on commodity markets than those of shocks originating in the United States, the European Central Bank observed in 2022. “China consumes a similar amount of energy goods to the United States and yet a significantly higher share of global non-energy commodities, such as metals,” noted the ECB analysts.

GROWTH PERSISTS

So far, however, these risks have remained more theoretical than practical, as China’s property crisis and banking instability have not brought the economy to collapse. In May 2024, following a "strong" first quarter, the IMF even upgraded its GDP growth forecast for 2024 by 0.4 percentage points—to 5% in 2024 and 4.5% in 2025.

The economy's resilience in the face of the crisis has been strongly bolstered by government support. In May 2024, the authorities unveiled a historic $138 billion package in funding to stabilize the property sector, coupled with an easing of mortgage rules and even some local governments buying over-supplied apartments.

In the banking sector, stability is maintained through substantial state ownership, with the government holding majority stakes in the five largest commercial banks. This represents more than half of the country’s banking system, notes Bris, who nonetheless points out a “systemic risk” tied to this significant reliance on state support.

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From revolution to recession

Egyptian workers dig in a pavement at the New Administrative Capital (NAC), just outside Cairo, Egypt

By Mohamed al-Afdal

Mohamed al-Afdal is an Egyptian journalist who reports on policy, economic, and environmental issues. His works appeared in The Guardian, Al Jazeera, Quartz and Grid.

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I

n 2011, during the January 25 Revolution, “bread” was one major rallying cry for the millions of protesters who took to Egypt’s streets demanding change. Bread signified decades of Egypt’s economic struggles, culminating in poverty that afflicted nearly a third of the population while youth unemployment was around 35%.

Since then, in spite of a moment of stability between 2017 and 2021, Egypt’s economic and social misfortunes have not receded.

EXTERNAL WOES

The country’s challenges were severely exacerbated by the COVID-19 pandemic, the international supply chain disruptions that occurred in 2022, and a severe dollar shortage that same year with billions of dollars fleeing the economy.

Finally, since October 2023, the Israel-Hamas war in Gaza has had a rippling effect on Egypt, whose economy

relies significantly on dollar revenues from tourism and the Suez Canal.

While the number of tourists declined in late 2023 before partially recovering in early 2024, the Suez Canal saw its traffic plummet by 66% from mid-December to early April as a result of Houthi attacks in the Red Sea. On the debt front, the crisis worsened in 2022 when the US raised interest rates, causing a prolonged exit of investment, said Egyptian economic researcher Mohamed Gad in an exchange with WEJ. The cost of servicing debt continued rising afterwards as domestic interest rates grew and the national currency began to weaken in 2022. By September 2023, the country faced a whopping $51 billion due within a year, an amount equal to roughly one and a half times its 2023 foreign currency reserves.

Thus, the country’s external debt reached a record $164.5 billion (around 92.7% of the GDP) in 2023, more than doubling since 2016. Egypt now boasts

PHOTO: AMR NABIL/AP PHOTO

Egypt's battle with economic woes

WORLD ECONOMIC JOURNAL

the highest debt-to-GDP ratios among emerging markets and middle-income economies, according to the IMF.

COSTLY NEW CAPITAL

Ambitious megaprojects, intended to create jobs, attract foreign investment and sustain economic growth, have ultimately led to increasing the country's debt without delivering fully the expected results.

Among these endeavours is the ‘New Administrative Capital,’ a sprawling, futuristic city of highrises set to replace Cairo. But the scale of some of its undertakings—Africa’s tallest building, an artificial river, the Middle East’s largest church, and the country’s largest mosque—entailed considerable costs. The project has absorbed almost $60 billion in total so far. While Egyptian President Abdel Fattah Al-Sisi has repeatedly insisted that not a single pound from the government’s coffers was spent and that all the funding came from investors, Saheeh Misr, an independent fact-checking outlet, argues the project has aggravated the country’s economic crisis.

Today, almost nine years after the first announcement, more than 70% of construction for the first phase has been completed, even though the program suffered from the withdrawal of its original Emirati backers and the insufficient funding brought by Chinese investors.

According to Khaled Abbas, chairman of the Administrative Capital for Urban

Development (ACUD), the company responsible for developing the new urban centre, the new capital is now home to 1,200 families, a fraction of its projected population of five million.

MONETARY OR FISCAL ISSUE?

In March 2024, as interest payments consumed more than 45% of all revenue, the IMF agreed to finance another $5 billion to Egypt’s 2022 $3 billion loan contingent on structural reforms, spread over 46 months. To comply with the IMF’s conditions, Egypt allowed the pound to float and enacted a 6% interest rate hike, the largest in its history.

As a result, the pound plummeted by 40% within hours, reaching a record low, but the inflation rate declined.

The IMF’s recipes might be part of the problem rather than the solution, believe critical economists. "In Egypt's case, the IMF's insistence on devaluation as part of its prior actions led to inflation, which is countered with high interest rates, resulting in an economic recession,” said Salma Hussein. “This approach does not work for Egypt, as fiscal, not monetary, policies drive inflation. Raising interest rates doesn't solve the problem, and the government needs to manage the budget more effectively.”

However, with its current regional role, Egypt might negotiate better loan repayment terms, notes Hussein.

In February 2024, ​​some relief came from a $35 billion investment deal with the Emirati sovereign fund ADQ

Inflation, consumer prices (annual %). Data source: The World Bank.

to develop the Mediterranean Peninsula of Ras al-Hekma.

Additionally, to help ease the financial burden, the government intends to trade up to 10% of the ACUD on the Egyptian stock exchange by the end of 2024. The move is expected to provide between $3 billion and $4 billion. Gad and Hussein are hopeful that such a deal, combined with the partial return of investments to Egypt, could offer a reprieve that the Egyptian government could use to reassess its strategy.

HIGH SOCIAL COST

So far, the population has paid a high price for Egypt’s economic woes. In the past years, government spending on education and healthcare declined, eventually reaching 1.16% and 1.7% of Egypt’s GDP for fiscal year 2025/24, respectively.

Prices for staple foods surged well beyond the headline inflation rate, which hit a record 38% in September 2023.

The crisis reverberated across Egypt’s social structure, forcing the majority of low- and middle-income citizens into debt. Ordinary Egyptians grapple with skyrocketing prices, inadequate healthcare, and power outages.

As noted by the IMF, the Egyptian government provided some relief to the most vulnerable through the Takaful and Karama programme, which was implemented for the first time in 2015 and has since expanded to more than five million households.

In early 2024, the government also enacted a $3 billion social protection package, which included an increase in the public sector minimum wage and targeted support for teachers and healthcare workers.

Egypt’s economy continues to struggle, but at least the country is at peace.

“All neighbouring countries are plagued by war, civil unrest, internal armed conflicts,” said Farah Mohamed, a customer service representative. “Life is hard, but at least we’re safe, and I hope one day we’ll make it out of this crisis.”

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Argentina Libertarian economics’ first confrontation with reality

By Matt Barlow

I Matt Barlow is a Lecturer in International Political Economy in the school of Social and Political Sciences at the University of Glasgow. In his PhD, he explored the ideological challenges of raising export taxes in Argentina in the early-2000s. His current research explores how taxation may create barriers to mobilising domestic resources and to making progress towards the SDGs.

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n 2019, I spent three months in Buenos Aires conducting fieldwork for my PhD, much of this time based at the Universidad Torcuato di Tella as a Visiting Researcher. Whilst there, aside from my own research agenda, there were also ongoing discussions with colleagues about one of the university’s former master’s students: Javier Milei.

Whilst advocating for a fringe doctrine, right-libertarian economics, Milei was becoming an ever more prominent television personality, very frequently appearing across Argentine TV and generating significant debate.

This was an election year, won by the Peronist Alberto Fernández. But even though Milei did not put himself and his economic doctrine to the vote at that time, his views were already presented in a combative manner—as

a radical alternative to the state-led redistributive policies that had been a hallmark of left-leaning Peronist governments in Argentina since the 1940s.

THE DOGMA OF MINIMAL STATE

Also known as anarcho-capitalism, right-libertarianism is both a political philosophy and economic theory. It is grounded in the concept of a minimal state that does not intervene into free market processes and acts a subsidiary to the private sector even in ownership of land, natural resources and infrastructure.

Advocates of the doctrine argue that, should a society have liberty and autonomy from a centralised state, it would organise itself through integration into the free market, while private agencies would assume the role of the state apparatus in areas of security.

Even though Milei had cultivated these views for decades, they gained traction in Argentinian politics only by the time he was first elected to Congress in 2021.

Milei’s anti-establishment and anti-statism rhetoric—he argued that a programme of deep austerity was the only way to fix the economic crisis, as illustrated by his frequent appearances with a chainsaw to decimate the state— was embraced by an electorate weary of the political status quo. Driven by a strong desire for change, Argentinians overwhelmingly elected him as President in November 2023.

At the time of Milei’s election, poverty levels had reached 40% and the Central Bank had no currency reserves to pay a $913 million repayment as part of an $44 billion IMF loan agreement.

Moreover, the Fernández administration’s policy of money printing to support welfare subsidies had led the annual inflation rate to hit 210% with December 2023’s monthly figures alone showing increases of 25.5%.

The country’s economic woes were aggravated by a three-year drought with a negative impact on Argentina’s

PHOTO: RODRIGO ABD/AP PHOTO

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major agricultural exports, a significant source of revenue.

SHOCK THERAPY

Part of Milei’s shock therapy to address the crisis has been to devalue the peso from nearly 400 to 800 pesos to one US dollar to try and close the gap between the official and black-market exchange rates in Argentina—the ‘Dollar Blue.’

Milei’s broad attack on state expenditure essentially means raising spending by less than inflation and thus delivering real terms cuts. This approach has been most damaging in pensions which dropped by 40% in real terms year-onyear. Wages also suffered real-term cuts, losing 21.3% in the public sector while minimum wages depreciated by 28.8% between November 2023 and May 2024.

While pushing Argentina into a deep recession, these austerity measures have cooled the level of inflation, which fell to 4.6% in June 2024. They have also allowed the government to post fiscal surpluses, with more tax receipts than money spent since April 2024. All of this has been much vaunted by financial markets and the IMF. Such policies, meanwhile, have brought significant hardship to the lives of Argentines. The devaluation of the peso and the removal of energy and transport subsidies have all contributed to an 80% rise in the cost of living.

According to the Universidad Católica de Argentina, poverty in the country reached 57% by February, while homelessness in Buenos Aires alone was up 14% in May year-on-year.

Even the consumption of Argentina’s world-famous beef is beyond the reach of many citizens. Recent reports predict that the beef consumption in 2024 will be the lowest since records began in 1914 with consumption in the first quarter down 18.5% on the same period in 2023. Thus, whilst tourists and wealthier Argentines might feel little concerned by the crisis, it is the growing length of queues outside the

The eyes of the libertarian world are looking towards Argentina in what has been termed a ‘Libertarian Laboratory 38,000 Argentine soup kitchens that may come to define Milei’s legacy.

REALITY CRASH-TEST

The eyes of the libertarian world are looking towards Argentina in what has been termed a ‘Libertarian Laboratory.’

And whilst it is too early to say whether the medium- and longer-term economic impacts will be any vindication of the doctrine, what has already become clear is that the most radical policies sought by Milei have faltered when they have intersected with political realities.

Milei submitted a major package of reform bills aimed at eviscerating the state whilst bestowing upon himself emergency powers to enact major fiscal adjustment policies. The Ley de Bases contained over 600 articles when first submitted to the Chamber of Deputies but was withdrawn by the government in February 2024 when members of Congress lower house heavily amended it.

A much-reduced package of 238 articles aimed at deregulation and liberalisation of the economy passed in June 2024—with votes lent from a centre-right coalition—but without the privatisation of major state owned entities earlier earmarked by Milei: Radio y

Televisión Argentina (RTA), Aerolíneas Argentinas and the Argentine post office. Also removed was a major pension reform that would have jettisoned some state liabilities for pension provision to millions of informal sector workers.

The package that ultimately passed was watered-down significantly and did not include the more radical policies with the level of fiscal adjustment advocated by the anarcho-capitalist during the election campaign, showing an early failure in Milei’s strategy.

Moreover, a growing conflict over one policy—the removal of bus subsidies in Buenos Aires—is pitting Milei against some of the very same centre-right politicians who lent their vote to pass his legislation, fuelling political opposition that could threaten his ability to pass legislation and to govern.

Social resistance could also prove to be a problem. Unsurprisingly, the programme of austerity has led to mass mobilisations and general strikes in protest at the brutal austerity cuts. And whilst Argentina is no stranger to mass mobilisations, they are unprecedented insofar as they are occurring so early in a presidential term.

As Milei has remained inflexible, there are early signs that what he is cutting—especially free public higher education—will undermine the sustainability of his libertarian programme as a part of his own voters have already joined the protest movement.

Congressional intervention has so far led to a libertarianism reality-check.

The policies passed by Congress are less radically right-libertarian and more closely aligned with the laissez-faire neoliberal policies of deregulation, privatisation and market-led policies, last seen in Argentina on this level under Carlos Menem in the 1990s.

However, that neoliberal experiment pushed Argentina to the brink by 2001, and again a little over two decades later. Argentines have not forgotten the financial crisis and social unrest; neither should Milei.

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India’s growing fast, but is it on the right track?

Sandeep Achary, a graduate of the Indian Institute of Technology and the Indian Statistical Institute, is currently pursuing a PhD as a fellow student at Pompeu Fabra University in Spain.

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A

ccording to the IMF, the Indian economy is projected to grow by 6.8% in FY 2024-25, while China and the USA will grow by 4.6% and 2.7%, respectively. If India continues at that pace, it could surpass the stagnant economies of Japan and Germany by 2027, becoming the world's third-largest economy in terms of GDP. The fiscal deficit, which was at alarming levels in 2021, has been reduced to 5.1% of GDP in FY 2024-25.

As for inflation, based on the consumer price index for March 2024, it reaches 4.85% annually, which is well within the mandate.

Meanwhile the country—one of the poorest in the world—is struggling with massive unemployment, and faces the threat of a severe health crisis. Still heavily dependent on carbon-intensive sectors, India lags severely in the UN’s Sustainable Development 2024, ranking 109 out of 166 countries.

Prime Minister Narendra Modi has set a goal of transforming India

into a developed nation by 2047, in time for the centenary of its independence. However, even the current rapid economic growth might not suffice to reach this goal.

IMPORTANT REFORMS

The past ten years, meanwhile, have seen some important economic reforms come through. One significant achievement, in 2017, was the implementation of the Goods and Services Tax (GST), which has unified India as a single market by replacing 17 different taxes levied by various local government bodies.

In 2020, Modi’s government played a crucial role in integrating identity, transfers, and payments into a single digital stack, pushing them to a huge scale. The move, unprecedented for a country as large as India, has inspired countries like France, the UAE, and Singapore.

Efforts are being made to revamp the country’s transport infrastructure, a part of which is collapsing. The introduction of semi-fast trains and rapid expansion of the urban transit net-

PHOTO: FRABK HOLLEMAN/UNSPLASH

By Sandeep Achary

WORLD ECONOMIC JOURNAL

work in recent times are much-needed moves to decongest urban areas and achieve more balanced growth geographically.

EMPLOYMENT AND PRODUCTIVITY CHALLENGES

A part of the current growth is due to what economists refer to as demographic dividend and catch-up growth.

In simple terms, an economy benefits from a demographic dividend when it has fewer people to support and more people in the labour force.

India currently has nearly 600 million people in the labour force, which is roughly the same as the population of Europe. By 2036, it is expected that almost a billion Indians will be in the labour force. While such favourable demographics offer the potential for significant growth, much depends on how effectively the labour force will be employed, and in which sectors.

In order to become a developed nation by 2047, India needs to maintain its current high growth rates at the very least1, which implies creating a significantly larger number of employment opportunities. But the country is currently facing a severe job crisis: there are not enough good jobs available, especially for the youth.

Even more concerning is the current nature of employment. Usually, as countries develop, employment slowly transitions from farming to non-farming sectors. This was the case in India from 2000 to 2019; however, during the pandemic, almost 56 million people shifted back to the agriculture sector. A similar reversal of trend is observed in many East Asian economies, including China.

The return to farming itself is not necessarily negative, unless individuals are compelled to do so. But in India's case, this can be attributed to a lack of work opportunities outside farming.

Many individuals are forced to take up non-remunerative and highly risky farming activities.

Currently, the agriculture sector, which contributes 18% to the GDP, employs 42% of the workforce, compared with 53% and 32%, respectively, in the service sector. And a considerable proportion of those employed in agriculture lack the necessary skill set to find jobs in the service sector.

Much of the current growth in GDP is driven by highly productive big corporations, which tend to be capital-intensive and employ a smaller number of people relative to their size.

Micro, small and medium enterprises (MSMEs), which provide large employment opportunities at considerably low levels of capital, have seen a severe decline in recent times. The pandemic

manufacturing plants when the lack of skill is a serious concern. For the sake of comparison, the capital subsidies promised to chip manufacturing plants are 150% of the higher education budget.

On August 15, 2024, in his 98-minute Independence Day address, Modi lengthily praised his government’s achievements and pledged to make India a manufacturing hub like China.

But he said very little about the associated environmental challenges, while India is ranked seventh on the list of countries most affected by climate change.

China's industrial growth model from two decades ago is unlikely to serve as a viable blueprint for India.

Prime Minister Narendra Modi has set a goal of transforming India into a developed nation by 2047, in time for the centenary of its independence significantly contributed to the current state of MSMEs, but most of the damage occurred long before 2019 due to very low productivity levels, high indebtedness and a series of policy errors by the Modi government.

In summary, for India to grow as fast as required, it needs to revive its MSMEs and transition its workforce from low-value-added sectors like agriculture to high-value added sectors like services. And the concerning current state of the labour market indicates that these challenges will not be easily overcome.

WRONG MODEL?

The current budget provides muchneeded relief as it takes several steps in the required direction. However, the choices of sectors to prioritise for support are debatable. The government allots enormous capital subsidies to set up

Firstly, because there is not much to be gained in low-skill manufacturing.

Secondly, because China’s growth was accompanied by a fourfold increase in its per capita carbon footprint. The world has no space for another industrial China.

India is at a pivotal point in its development. The current policies are neither sufficient nor always relevant to retrain the workforce, modernise and support MSMEs, and scale its globally competitive services sector while achieving sustainable development goals. A substantial political and economic shift appears to be necessary to put the country on the right track.

The current growth rate might not even be sufficient.

Considering China’s GDP when it was at the same level as India, and making an assumption that development status means having a per capita nominal GDP of $50,000 in 2047, the Indian economy might need to grow by some 10% annually, above the current 6-7%.

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[ BUSINESS ]

HOW BIG REALLY IS 250 MILLION PEOPLE? Right-sizing the Pakistani consumer opportunity

By Saad Hasan

I

t is the first thing on everyone’s Pakistan presentation—its 250-million population. Who wouldn’t be impressed by such a large number of potential customers? While size does matter, this number alone does not tell the whole story. To identify the correct business models and strategies to pursue, it is important to understand the breakdown of the 37 million households and incomes within that population.

• GROUP 1 – Nearly one third (32%) of households is below the poverty line with a household income under Rs. 75,000 per month. These households are extremely price-sensitive and time-insensitive. The journey towards truly having any monetisable use-case for this group will require decades

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of structural changes for them to be included as a large enough market to serve. This is the labour class of Pakistan, who can be lifted out of poverty only when a social safety net will be created. The upper-quartile of this class are expected to join the lower quartile of the new emerging lower middle class, as discussed below, in the next decade. Migration to Gulf countries and other more developed markets is a trend worth observing, as it could accelerate the transition of this group into the lower middle class more quickly than anticipated.

• GROUP 2 – The better part (62%) of Pakistani households generate an income between Rs. 75,000 to 200,000 per month. These households are very price-sensitive and partially time-sensitive. This is the silent majority or the bulk of where

PHOTO: SW PHOTOGRAPHY/GETTY IMAGES

Text: Saad Hasan

WORLD ECONOMIC JOURNAL

Saad Hasan is Principal at Sturgeon Capital. He has a decade of experience in both emerging and developed markets. From 2017 to 2019, he co-founded and scaled Jrop, a NorthAmerican Mappingas-a-Service company. His career includes roles at HBL, Pakistan’s largest bank, Morgan Stanley, Qatar Airways and JLL.

people fall in the country, with the likes of Daraz and Bykea targeting households in the upper quartile of this range. This market is expected to experience the greatest level of upward mobility over the next 10 years, with average income per capita rising at least 25% and up to 40%. This is the long-tail of the Pakistani consumer market.

• GROUP 3 – A small fraction (3.8%) of households generate an income between Rs. 200,000 to Rs. 600,000 per month. These households range from price-sensitive to very price-sensitive and partially time-sensitive to very time-sensitive. This can also be called the upper middle class of Pakistan, which has part-time drivers and maids, but focuses their spending on education, investments and travel. They are also discount-driven and careful with their spending, yet typically have at least two working members in the household, which necessitates a high level of convenience. This group often shops at more upscale grocery stores and prefers branded products. They tend to be more private but also aspirational, frequently timing their online purchases to coincide with sales, though they rarely participate in group buying. This is the core market for Bykea, Daraz, FoodPanda and formerly Airlift. A medium-term opportunity with this group lies in engaging the Gen Z segment, which is more social and drawn to gamification and non-monetary incentives.

• GROUP 4 – Accounting for just 1%, wealthy households generate an income between Rs. 600,000 to Rs. 1,200,000 per month. These households range from partially price-sensitive to price-sensitive and time-sensitive to very time-sensitive.

A summary of consumption by household segments in Pakistan INCOME GROUP 1

INCOME GROUP 2

INCOME GROUP 3

INCOME GROUP 4

INCOME GROUP 5

<RS. 74k ($270)

Rs. 75-200k ($270-719)

Rs. 201-600k ($719-2,157)

Rs. 601k-1.2m ($2,157-4,313)

Rs. >1.21m (>$4,313)

HOUSEHOLD MEMBERS

8

6

6

5

5

NUMBER OF HOUSEHOLDS

12m

23m

1.4m

370k

74k

POPULATION

96m

139m

8.4m

1.9m

370k

MEDIAN ANNUAL PER CAPITA INCOME

$409

$1,000

$2,909

$7,854

>$10,472

ANNUAL CONSUMPTION POTENTIAL

$39bn

$139bn

$24bn

$15bn

$4bn

MONTHLY HOUSEHOLD INCOME

Sources: Pakistan Bureau of Statistics (Household Size, 2023; Household Integrated Economic Survey, 2018-19), Reall (Understanding Household Incomes, Dec. 2022), with some adjustments for inflation, depreciation and changes in wages.

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[ BUSINESS ] However, these households typically employ drivers, maids, and other helpers for most tasks and chores, so they rarely use activity outsourcing models. They prefer in-store shopping for a more personalised experience, although the younger, more digitally savvy members increasingly favour online shopping. This group represents the most immediately monetisable user base in Pakistan, but highly brand-sensitive and individualistic, with their spending focused on quick commerce, direct-to-consumer brands, fast fashion, and branded electronics. Most discount-driven marketing efforts target this segment, which is ideal for banks, quick commerce, premium brands and boutiques.

With about half of this population in their early 50s and above, attracting the younger generation is crucial for longterm economic gains. This is because purchase decisions are usually initiated by the younger members, making the older ones more of financiers than purchasers.

• GROUP 5 – The ultra-wealthy population (0.2% of households) generate an income above Rs. 1,200,000 per month.

They are neither price- nor time-sensitive and live a very sheltered lifestyle compared to the rest of the population.

These households are the iPhone and X/Twitter users of Pakistan but are demographically skewed to be much older, with fewer young people, and a focus on premium online stores, which in effect means buying imported products such as M&S olive oil and Huda Beauty foundation at eye-gouging premiums. Extremely brand conscious and private by necessity, they rarely shop in the country and mostly seek lifestyle/ultra-luxury brands.

Where does that leave the magical 250 million population figure in reality? For many business models, particularly those prevalent in more developed markets, the true addressable market might be only around 10.6 million peo-

For many business models, particularly those prevalent in more developed markets, the true addressable market might be only around 10.6 million people 74

WEJ | September - October 2024

ple (including all of Groups 3, 4, and 5). This is still a $43 billion opportunity, or maybe just half if factoring in the propensity and ability of different ages within those groups to adopt technology.

MARKET REALITIES FOR B2C BRANDS

When looking at consumer segments in Pakistan from a socio-economic angle, measuring both household consumption potential and per capita income, it is clear that consumption differs drastically from income segment to income segment.

For the last two years, the cost of living has increased dramatically for the overwhelming majority of households in Pakistan. With much less discretionary income available, consumers are not in the position to pay large premiums..

This has led a significant number of quality-oriented consumers to change their buying criteria to one of highest perceived value and for value-oriented consumers to double down on their discount hunting habits.

This is evident in the grocery market, which is estimated to be worth at least $50 billion. Most Pakistani households allocate at least 25% of their income to groceries, with Income Group 1 spending up to 50%. This leaves minimal room for discretionary spending, especially when considering the need for emergency healthcare funds and ongoing children’s education expenses.

When it comes to distribution, most brands today use the Internet more than ever in Pakistan, with more than 50 million social media users. However, numerous brands lack the expertise or team to effectively optimise their cost-per-acquisition through online channels, resulting in suboptimal returns on ad spend.

In Pakistan, identifying your customer and delivering your message are distinct tasks, with reaching the right customer often being a monumental challenge. This difficulty is closely tied to the diverse socio-economic consumption potential across Pakistan’s various income groups. Only brands that can successfully navigate the complexities of these income group changes are likely to become national-level brands.

MATCHING SOCIO-ECONOMIC REALITIES

The experiences of successful consumer brands in Pakistan underscore essential requirements for companies aiming to establish a digital-first business in the country. Brand strategies must align with Pakistan’s socio-economic realities for years, if not decades ahead. Here are fundamental rules to achieve this.

• Targeting the right customer is more important than continuously improving the product. ​​Take Income Group 1, for example: it not only lacks consistent discretionary purchasing power despite its substantial collective con-

sumption but is also less likely to engage based on product quality or to become repeat customers. Higher margin discretionary products should rather focus on higher LTV users with a focus on nationally scalable marketing strategies that resonate across income groups.

SHAN’S SUCCESS ACROSS CONSUMER GROUPS IN PAKISTAN AND BEYOND

• Value is measurable and apparent to customers—deliver it to convert and retain them. A successful model to cater to the majority of users in Pakistan requires a value-first approach that delivers immediate savings. A strategy that highlights your pricing advantage along with your ability to offer superior convenience provides an immediate and obvious value add, fostering natural virality. When examining Income Groups 2 and 3, there is sufficient collective spending power and improved per capita income, allowing for a broader variety of SKUs to be consumed. While price sensitivity remains high, these groups exhibit greater trust in technology. This is significant because high trust in technology correlates with higher education levels, income, and digital adoption—factors strongly associated with clear and rapid upward mobility in income level1.

Shan Foods is an example of a company that demonstrates a deep understanding of its consumer market, successfully building a brand that resonates across multiple income groups in Pakistan A producer and packager of spice and spice mixes in Pakistan, Shan has become an iconic brand in Pakistan and beyond, gaining traction in South and South-East Asia, the GCC, Europe and North America. Before Shan's arrival, spices and spice mixes were a highly segmented consumer product with extremely fragmented distribution The key to Shan’s success lies in maintaining a focused selection of spice mixes they excel at, upholding strict quality standards, and ensuring affordability across all income groups. Additionally, Shan has built a brand that evokes nostalgia, reminding customers of home, loved ones, and special occasions. This deep connection with their customers has been the defining factor of the brand for over 30 years. The fact that the company never took a single dollar of debt is a testament to the organic distribution they have built through sheer perseverance and customer empathy.

Mobility platform Bykea, online payment app EasyPaisa, and fashion brand Khaadi are other examples of companies having achieved success across various income groups in Pakistan.

• Purchase frequency is king for mass affluent consumer targeting brands. The top half of Group 3, along with Groups 4 and 5, constitutes the immediately addressable mass-affluent user base. These consumers are drawn to premiumisation, value productivity hacks, and exhibit a blend of individualistic and collectivist buying behaviours. These groups are almost like one social block that is trend driven, with complex socio-economic signaling behaviours. Leveraging these behaviours can be more critical than focusing solely on product quality. This involves enabling Buy Now, Pay Later (BNPL) options to enhance affordability, creating rewards programs, and cultivating brand ambassadors who are recognized trendsetters.

CONCLUSIONS

Here are some key takeaways from our research that can help brands better understand and frame the consumer opportunity in Pakistan: • The consumer market in Pakistan is complex, with consumer staples offering a large and deep market that enables platforms to reach the long-tail of consumers.

• While moderately segmented, the consumer market largely gravitates towards value-based purchasing.

• Scaling a true consumer business in Pakistan through online channels like paid ads is both limited and expensive.

• The best brands in Pakistan have built businesses by optimising conventional behaviours and practices across the population.

• Pakistan’s middle class, the youngest and fastest-growing segment, is crucial for any successful consumer business, both now and in the future.

• Although the online consumer market may be limited in the short term, it is poised to become one of the largest globally in a multi decade time frame, driven by demographics alone.

Our hypothesis here has been proven correct with our investment in Deal Cart.

Over a year, AOVs increased by 3-4 times across the platform as a result of laser-focus on building an online grocery led retailer that delivers the best prices to its customers. With better AOVs come better economics and a clear move into profitability; after all a 10% contribution margin on $10 is still less than 5% on $25.

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[ SOCIETY ]

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WEJ | September - October 2024

WORLD ECONOMIC JOURNAL

WILL THE «GLOBAL SOUTH» REVOLUTIONISE EDUCATION? Traditionally, high-level education has been associated with teacher excellence, characterised by years of experience and a low student-to-teacher ratio.

Kwame Yamgnane is a co-founder of Qwasar, a nextgeneration software engineering school based in California.

He previously cofounded Ecole 42 in Paris, one of the most acclaimed innovative computer programming schools of our time.

I

By Kwame Yamgnane

n a country like France, which consistently produces Nobel laureates, Turing Award winners and Fields medalists, there are approximately 900,000 teachers for around 16 million students—a ratio of 1 to 17.7—with an average teacher age of 38 years, according to official sources1.

In the Western education model, it takes two decades to produce an "average teacher," and a student-to-teacher ratio of 1 to 15 is considered necessary2.

MATHEMATICAL CERTAINTY

Now consider Nigeria, with its 220 million inhabitants, including 110 million individuals under 19 requiring education. By Western standards, Nigeria would need 15 million teachers. But how can those teachers be trained? First, the country should train an initial generation of one million teachers dedicated to educating the next generation. Given that it takes about 20 years to train a generation, it would require 40 years to staff Nigeria’s education system completely.

Add to this the cost of building enough schools and universities, and remember that Nigeria's population doubles every 50 years — it is projected to reach 450 million by 2070. This means the previous figure could easily double, requiring the training of a third generation of teachers, which would take another 20 years (totaling 60 years) before the education system is fully prepared. Achieving this goal would also require hundreds of billions of dollars in investment.

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[ SOCIETY ]

THE PURSUIT OF NOVEL MODELS

African countries need to leapfrog to modern education systems, much like they did with telecommunications: in the 1990s and 2000s, the continent skipped landline infrastructure and moved directly to mobile solutions.

Western education models are not feasible for the ‘Global South.’ Although many countries aspire to create institutions like Berkeley, Harvard, Oxford or Sciences Po, with some making impressive strides, the truth is that without huge financial and organisational resources to raise or attract top teachers, delivering this level of education to large audiences is impractical. In reality, such high-quality education is generally accessible only to wealthy and already well-educated countries.

The good news is that there are alternative teaching methods. Online education can considerably reduce the cost of building classrooms and make education more accessible to millions of students globally.

However, teaching online also presents challenges. Massive open online courses (MOOCs) have not achieved significant success so far, as most learners do not return after their initial year, noted a study3. Online education must go beyond simply recording and broadcasting videos of teachers to students, in the illusion of addressing their needs.

Standard passive teaching methods have consistently failed—and will always fail. Studies show that lecture-based retention rates are only 5%, while hands-on practice results in a 75% retention rate, and teaching others leads to a 90% retention rate4.

Decades ago, management schools introduced case study methods, which have demonstrated a higher efficiency.

INSEE, ministry of education.

The OECD considers the student-to-teacher ratio a benchmark for education quality, with an average of 1 to 15 .

3 Justin Reich & José A Ruipérez-Valiente, “The MOOC pivot,” Science, Jan. 2019.

4 Refer to the ‘learning pyramid.’ While this model has faced criticism—acknowledging that student behaviour is more complex than the pyramid suggests—it still provides a valuable framework to guide educational strategies.

1 2

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WEJ | September - October 2024

By getting rid of lectures , you can forget about the teacherto-student ratio issue while simultaneously improving the efficiency of knowledge transmission Now is the time for even bolder approaches. By getting rid of lectures and having students teach each other through practice, you can forget about the teacher-to-student ratio issue while simultaneously improving the efficiency of knowledge transmission.

For the past two decades, I have experimented with "no-teacher" approaches in the coding industry, developing a hands-on, many-to-many educational model.

We boast a number of success stories in Africa, Asia, the Americas and Europe, primarily using online models.

In Nigeria, our Outsource Global Academy provides high-standard full-stack development training to thousands of students.

In Kazakhstan, during the COVID-19 pandemic, in 2020, our physical school, which initially had 40 students, rapidly shifted to an online model, accommodating 400 registered students. No traditional school could suddenly scale to educate 10 times as many students without compromising quality (assuming they would manage to upgrade their infrastructure).

Addressing educational challenges in the 'Global South' presents a chance to redefine the possibilities of learning and teaching. As traditional models fall short, advancing requires strategies that push beyond conventional limits.

With the advent of new technologies and new educational models, delivering quality education to a broad audience is increasingly achievable and no longer a distant dream.

PHOTO: MUHAMMAD RIZWAN/UNSPLASH

Had Nigeria 10 or 20 million teachers already, it could consider achieving this goal under such a model. Unfortunately, today, there are only 2.3 million teachers in the country, according to the Teachers Registration Council.

Expanding this logic to the so-called ‘Global South,’ one might ask: how can its growing population be educated rapidly (within a decade rather than a century), especially in a world where education is the most critical factor for economic growth and health?

I don’t believe there’s a perfect solution to this problem. But it is mathematically certain that the formula of "one 30-year-old teacher for every 15 students" is not viable.

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[ AWARDS ]

HONORING LEADERS IN SUSTAINABLE DEVELOPMENT THE WORLD INNOVATION AWARD 2024

E

very September, one of the central events in the field of sustainable development takes place – ceremony of the prestigious World Innovation Award, which honors leaders of the developing world who have made an outstanding personal contribution to achieving the Sustainable Development Goals – the blueprint to achieve a better and more sustainable future for all – through a systematic effort to implement innovative solutions. Jeffrey D. Sachs, one of the initiators and authors of the SDGs, whose interview you can find in this issue of WEJ, calls them “the supreme test of politics”.

The World Innovation Award is organized by the World Organization for Development (WOD), an international non-governmental organization with Special Consultative Status with the United Nations Economic and Social Council (2014), Member of the United Nations Global Compact (2016). The Global Initiatives implemented by WOD to achieve the Sustainable Development Goals have been recognized by the United Nations twice (in 2015 and 2021) as the world’s best practices.

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The award boasts a star-studded jury that includes a Nobel laureate, former heads of UN organizations, and other leading global experts in the field of sustainable development.

The award specifically highlights the achievements of urban leaders, including mayors and heads of organizations responsible for areas crucial to city development. This is because the battle for SDGs is fought primarily in cities, and the modern world can rightfully be called the world of cities. The world is undergoing rapid urbanization, with the global urban population projected to rise from 56% in 2021 to 68% by 2050. All regions of the world will become more urbanized; therefore, the sustainable future of the world largely depends on urban leaders.

The World Organization for Development has bestowed upon WEJ the honor of unveiling the list of nominees for the 2024 World Innovation Awards. The winners will be announced on September, 19 at Award Ceremony at BRICS Urban Future Forum and on the official website of WOD, unwod.org

THE AWARD SELECTION COMMITTEE

MAIMUNAH MOHD SHARIF Chairwoman of the Selection Committee, Mayor of Kuala Lumpur, Former Under-SecretaryGeneral of the United Nations, Former Executive Director, UN-Habitat (2018-2024)

PROF. RENATO TRONCON Head of Design Research Lab, University of Trento

NICHOLAS YOU

DR. RAEKWON CHUNG

DR. SAMEEP SHASTRI

Executive Director, Guangzhou Institute for Urban Innovation

Nobel Peace Prize laureate (with IPCC), former advisor to the UN Secretary-General on climate change

Vice Chairman, BRICS Chamber of Commerce & Industry

MTHO XULU

DR. NICOLAS BUCHOUD

ISMAIL TEKIN

President, South African Chamber of Commerce

President, Grand Paris Alliance for Metropolitan Development

Deputy Chairman, World Organization for Development

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[ AWARDS ]

SELECTION CRITERIA Applications are assessed based on four composite criteria: innovativeness, relevance, efficiency and replicability.

Innovativeness is defined by the extent to which a promising policy, original project, new business model or innovative creative practice has been developed to address an important social, economic, environmental or governance problem. This criterion indicates significant novelty and the project's contribution to the formation and development of a culture of innovative sustainable development.

NOMINEES OF 2024

1

NOMINATION

GOOD HEALTH AND WELL-BEING

ABDULLA MOHAMMED AL BASTI Secretary General of The Executive Council of Dubai For implementing the Dubai Digital Health Strategy

Relevance is determined by the project’s correlation with the acute problems and burning issues of public interest and its ability to respond to changing conditions.

This criterion allows to estimate the extent to which the nominated project is relevant to the realization of the UN SDGs, contributes to the solution of specific development challenges, and is in demand by the project's target audience.

CLAUDIO ORREGO Regional Governor Metropolitan Regional, Government of Santiago For expanding telemedicine infrastructure and services

Efficiency is perceived as the extent to which the project has a positive impact on the economy and society, contributing to the achievement of the UN SDGs, such as better provision of public services.

Replicability is defined by the value derived from the project that helps ensure policy continuity and inspires other communities, cities and regions to adopt new policies and practices. In addition, replicability is characterized by the technical feasibility of the project.

The Award will be presented to one of the three nominated urban leaders in each of nine categories.

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MANSOUR AJRAN AL BUAINAIN Director of Doha Municipality For fostering an innovative healthcare ecosystem and contributing to the development of low- and middleincome countries

WORLD ECONOMIC JOURNAL

2

NOMINATION

QUALITY EDUCATION

3

NOMINATION

CLEAN WATER AND SANITATION

FIRHAD HAKIM Mayor of Kolkata Municipal Corporation

RICARDO LUIS REIS NUNES

For promoting policies that bridge the academic-industry divide

For implementing integrated automation systems for the water cycle network

Mayor of São Paulo

SHAIKH RASHID BIN ABDULRAHMAN BIN RASHID Governor of the Capital Governorate

MARAT SULTANGAZIEV Akim of Almaty region For elevating the status of the teaching profession

SUN ZHIYANG Mayor of Guangzhou Municipal People's Government For promoting innovative lifelong learning initiatives

For implementing innovative solutions to expand fresh water supply

VLADIMIR KUKHAREV Mayor of Minsk For implementing the 'Clean Water' program

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[ TRENDS ]

4

NOMINATION

AFFORDABLE AND CLEAN ENERGY

5

NOMINATION

DECENT WORK AND ECONOMIC GROWTH

MANSUR YAVAŞ

CAROLINA COSSE

Mayor of Ankara

Mayor of Montevideo

For providing comprehensive organizational and financial support for sustainable energy initiatives

For implementing a comprehensive package of measures to support small and medium-sized enterprises

SULTAN BIN AHMED AL JABER

DODDALAHALLI KEMPEGOWDA SHIVAKUMAR

Minister of Industry and Advanced Technology of the UAE

Deputy Chief Minister of Karnataka

For implementing a comprehensive energy policy and supporting energy innovation programs

EDUARDO DA COSTA PAES Mayor of Rio de Janeiro For progress in renewable energy development

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For contributing to the development of the 'Knowledge, Healthcare, Innovation, and Research City' project

SAYYID SAUD BIN HILAL BIN HAMAD AL BUSAIDI Minister of State and Governor of Muscat For fostering a favorable business environment

WORLD ECONOMIC JOURNAL

6

NOMINATION

INDUSTRY, INNOVATION AND INFRASTRUCTURE

ABDALLAH DARWISH

7 Mayor of Baku For expanding opportunities and support for private entrepreneurs and the self-employed

For contributions to the entrepreneurial ecosystem

ALIREZA ZAKANI

SAIF BADR AL QUBAISI Director General of Abu Dhabi City Municipality

Mayor of Tehran For implementing a comprehensive suite of measures to promote technological advancement

Mayor of Wuhan For implementing a systematic innovation and technology cluster development strategy

REDUCED INEQUALITIES

ELDAR AZIZOV

Mayor of Beirut Municipality

YUECHUN SHENG

NOMINATION

For implementing a cohesive sustainable development strategy

ALEKSANDAR ŠAPIĆ Interim Mayor of Belgrade For bridging the digital divide

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[ TRENDS ]

8

NOMINATION

SUSTAINABLE CITIES AND COMMUNITIES

YIN YONG

9

NOMINATION

PARTNERSHIPS FOR THE GOALS

YANET HERNÁNDEZ PÉREZ Mayor of Havana

Mayor of Beijing Municipal People's Government

For promoting international partnerships in healthcare

For establishing low-emission zones and promoting zero-emission technologies

SERGEI SOBYANIN

FUAD NOMAN

Mayor of Moscow

Mayor of Belo Horizonte

For deploying cutting-edge sustainable technologies across water, land, and air

For implementing a cohesive sustainable development strategy

JORGE MACRI Mayor of Buenos Aires

AIBEK JUNUSHALIEV Mayor of Bishkek

For implementing the Sustainable Mobility Plan

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WEJ | September - October 2024

For implementing a systematic social policy framework and promoting employment opportunities

Empowering the Pioneers, Building Tomorrow

About Us, Stages, Geographies We are providers of capital, meaningful support and access, strategic and operational expertise and advice, and game-changing connections from our networks for ambitious entrepreneurs at the forefront of innovation. For those looking to shake things up, raise the bar and drive transformative change, we seek to be the most founder friendly partners, equipping you with all the tools needed to grow and succeed. We are in the opportunity business and help you to unlock the full potential of your disruptive (ad)ventures so you can make lasting impact and shape the future.

We invest in ambitious early-stage founders from (including diaspora) or those with operations in the South Caucasus, Central Asia and MENAPT +

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[ TECHNOLOGY ]

AS THE WORLD MOVES EAST,

‘TECHPLOMACY’ SPARKS A NEW GOLDEN AGE

“In the nineteenth century, the world was Europeanised. In the twentieth century, it was Americanised. Now, it is being Asianised—and much faster than you may think,” according to a McKinsey and World Economic Forum 2019 report

PHOTO: ZHIHAO/GETTY IMAGES

By Abbas Kazmi

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WEJ | September - October 2024

S

ince the dawn of the twenty-first century, as the nations of the world deepened their interdependence, there has been a profound geopolitical and economic shift towards Asia, leading to it being dubbed by many as the “Asian Century”.

The rise of this continent—home to around 60% of the world’s population—as a leading force in international affairs and the global economy has been catalysed by rapid economic growth, technological advancement and shifting power balances. This backdrop comes with key geopolitical implications that have challenged the recent traditional world order, led by the West.

Incumbent powerhouses, particularly the increasingly (dis)United States and European nations, are re-evaluating their strategies as the balance of power shifts eastward and increased attention is being paid towards the BRICS nations, among others. The competition for technological supremacy, particularly in areas like artificial intelligence and cybersecurity, has intensified, necessitating new and both collaborative and competitive approaches to diplomacy.

WORLD ECONOMIC JOURNAL

WHERE TECHNOLOGY WIELDS POWER

In the emerging new global landscape, a country is as much defined by the dynamism and innovation of its private sector as it is by the strength of its military, its place on international bodies or the influence of the government of the day. Soft and hard power opportunities are increasingly being created by large tech companies, investment funds and research laboratories in a manner akin to state actors.

The Covid-19 pandemic has clearly laid bare the need for solutions to key challenges around ageing populations, youth unemployment, financial inclusion, health equity and much more. Innovation and investment in these areas will accelerate for years to come, with increased urgency and opportunities in the post-pandemic world. But while solving so-called “wicked problems” and addressing complex interconnected societal challenges used to be the province of government and philanthropy, technology innovation and new venture creation are now increasingly seen as the most effective ways to change trajectories.

A multi awarded serial entrepreneur and investor, Abbas Kazmi started his first company at the age of 16. ExBlackRock, he is the co-founder of the Oxford Accelerator, Collegiate Capital, BlackWood Ventures, and now the SABAH.fund. An advisor to several governments in the EMEA region, Mr Kazmi has also been appointed as a United Nations Alliance of Civilizations Fellow and was selected by the UAE's Vice-President and Deputy Prime Minister, Sheikh Mansour, as an Arab Youth Pioneer.

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In this new age, a multi-stakeholder approach that brings together the private, public and civil society sectors is needed; and as the global balance of power shifts, international collaboration on common challenges and shared interests is equally essential.

Issues such as climate change do not discriminate between borders and cannot be solved by a few countries alone but necessitate a coordinated approach. A global economy that is so bifurcated and siloed that superpowers work against each other is too expensive for our planet to bear.

By leveraging technology, nations can collaborate more effectively, share information and develop innovative solutions. Within this landscape, the significance of techplomacy, the fusion of technology and diplomacy, has become critical.

Coined first by the Danish Ministry of Foreign Affairs in 2017 when they announced the world’s first ‘Tech Ambassador’ in Silicon Valley, this term now expresses what is crucially needed, and increasingly undertaken, to address issues such as climate change, cybersecurity, public health crises and much more.

At the crossroads of East and West, a new 'digital Silk Road' is taking shape A PIVOTAL REGION

A key trend of the past few decades is a shift from globalisation to more regionalisation with the emergence of several heterogeneous blocs. It is important to note that Asia’s strength lies not in uniformity but in the dynamism of its many unique economies and innovation hubs, as well as its various different political landscapes. Whilst most attention to date has been paid to China and India, as well as developed nations such as Japan and South Korea and rapidly emerging countries like Indonesia and Vietnam, there are huge opportunities elsewhere in Asia which require a more nuanced approach.

Notably, in an era shaped by technological transformation and evolving trade relations, a vast region with shared cultural values, spanning the Middle East, North Africa (MENA) and Turkic countries1 in Central Asia and the Caucasus, is experiencing rapid changes. At the crossroads of East and West, a new 'digital Silk Road' is tak1

ing shape in what was once a key segment of the historic Silk Road.

Favourable tailwinds in the region include its promising demographics, with the world's largest youth population and more than half of its residents under 25—signaling potential for rapid growth in the burgeoning local technology ecosystems.

Over a dozen unicorns have emerged from the region and success stories such as Careem’s exit to Uber for $3.1 billion have helped change mindsets towards entrepreneurship and inspire the next generation of talent. Former Careem employees have started more than 250 companies, creating the region’s own ‘Paypal Mafia’. Major international investors including the likes of Sequoia Capital, Kleiner Perkins, amongst others, have made their first investments in the region in the past few years.

As traditionally natural-resource rich countries look to diversify their economies, the region is now home to some of the world's most ambitious technology-driven development programmes, as exemplified by the likes of Saudi Arabia’s ‘Vision 2030.’ Some of the world’s most forward-looking nations in adopting artificial intelligence are found there. In 2020 the UAE appointed the world’s first AI minister; and while in 2024, Microsoft announced a $1.5 billion investment in Abu Dhabi-based AI firm G42, Saudi Arabia unveiled plans for an unprecedented $40 billion global investment fund dedicated to AI technologies.

Similarly, Kazakhstan is also working towards building a National Artificial Intelligence Platform, which will include data from more than 90 sources, as part of its Digital Kazakhstan initiative.

Meanwhile, supporting the green energy transition, the World Bank, Abu Dhabi’s Masdar and the government of Uzbekistan recently signed a financial package to fund a 250-megawatt (MW) solar photovoltaic plant with a 63MW battery energy storage system for commercial scale

Stemming from an ethnolinguistic reference, Turkic countries include Türkiye, Azerbaijan and most Central Asian states.

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PHOTO: PRAMOTE POLYAMATE/GETTY IMAGES

battery storage. The project marks Central Asia’s first renewable energy initiative with an integrated BESS battery component.

Azerbaijan, which aims to generate 30% of its electricity via renewable energy sources by 2030, has launched the country's biggest renewable energy investment project to date: the construction of two solar plants and a wind power plant, also working with Abu Dhabi’s Masdar and Saudi Arabia’s ACWA Power.

Azerbaijan, Türkiye and Europe are advancing the "Azerbaijan-Türkiye-Europe" green energy corridor, aimed at exporting renewable energy and there is also the "Caspian-Black Sea-Europe Green Energy Corridor" project, also known as the "Black Sea Cable".

In the defence tech space, in spite of periods of frosty relations between Türkiye and Saudi Arabia, there has been a flurry of activity recently including Turkish firm Ramsa Defence partnering in a $120 million technology investment in Saudi Arabia and facilitating technology transfer. In addition to techplomacy within the region, there has been more outward international engagement for many years including with the UAE Space Agency’s Emirates Mars Mission where the spacecraft was assembled in the US and launched from Japan.

These examples demonstrate that many governments across MENA and Turkic countries (such as the UAE, Saudi Arabia, Egypt, Türkiye, Kazakhstan, Azerbaijan and Uzbekistan to name a few standouts) now fully recognise technology as an essential enabler of rapid and profound changes in their domestic landscape—from transportation to education and beyond—but also as a geopolitical priority and a key focus area of their diplomacy.

If executed effectively, techplomacy in these countries could usher in a new Golden Age for a region that was

once, for centuries, the global centre of learning and innovation.

CHALLENGES AND FULFILLING POTENTIAL

The geostrategic importance of the region, at the meeting point between Europe, Asia and Africa, has grown profoundly. When, in 2024, the BRICS exercised a large and historic expansion, the five countries invited—Saudi Arabia, Egypt, the UAE, Iran and Ethiopia—all came from the region or its immediate neighbourhood. And the fact that three of the most recent COPs (the UN’s flagship Climate Conference) have taken place in the region (Egypt, the UAE and Azerbaijan in 2024) is testament to the international interest in this part of the world.

Yet, MENA and Turkic countries confront a myriad of geopolitical, social, economic and environmental challenges, placing the region at a critical crossroads today. As they navigate this transformative era, the region’s governments must foster cross-border cooperation to enhance not only their national interests, but also contribute to a more peaceful, prosperous and interconnected world.

In doing so, they can unlock new avenues for prosperity, giving rise to a new Golden Age characterised by shared growth and sustained development.

As the legendary Apple founder Steve Jobs wrote, “innovation is the ability to see change as an opportunity, not a threat.” If MENA and Turkic countries embrace change and adeptly leverage techplomacy, they stand to seize the benefits of technological advancements and become protagonists in shaping the unfolding narrative of this century.

The region’s governments must foster cross-border cooperation to enhance not only their national interests, but also contribute to a more peaceful, prosperous and interconnected world 91

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BRUNO COLMANT « Artificial intelligence is the absolute victory of hypercapitalism»

By Marion Moreau

F

ve years after releasing his book in French, “From the Dream of Globalization to the Nightmare of Populism,” economist Bruno Colmant, a member of the Royal Academy of Belgium, underscores the danger of artificial intelligence exacerbating the crisis of today’s economic and social systems.

Is a new economic model emerging with the rise of artificial intelligence?

The critical issue revolves around productivity gains. These are vital because economic growth is funda-

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mentally driven by a combination of demographic trends and productivity improvements. Productivity gains are typically distributed between two production factors: capital and labour. The development we’ve seen since the early nineteenth century, with the initial manufacturing economy and machinery replacing human labour, is now amplified to a much greater extent by artificial intelligence.

These productivity gains will likely be predominantly, if not entirely, absorbed by capital at the expense of labour. As a result, the relative value of wages per unit of service or time will decline.

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The stock market valuation of the leading players, such as GAFAM, reflects a near-monopolistic position, relying more on computer power than human effort. Humans are increasingly valued more as consumers than producers, which could lead to significant challenges as the value of labour diminishes.

This situation echoes Sismondi’s early 19th-century theory. A historian and political economist, Sismondi warned against the dangers of unchecked industrialism, noting the disappearance of certain types of work and their replacement by machines. He proposed that anyone permanently displaced by machines should receive a lifelong pension.

Capitalism has already largely triumphed. We are now entering an era of hypercapitalism, where social and fiscal systems may become unsustainable if labour remuneration continues to decline.

PHOTO: CHRISTINNE MUSCHI/BLOOMBERG VIA GETTY IMAGES

What measures should be taken to mitigate this risk?

We must regulate companies and ensure they pay taxes to restore balance to the tax system. Additionally, following Sismondi’s logic, we could consider requiring these companies to contribute to social security.

What kind of relationship have GAFAM companies established with the US government concerning AI investments?

Historically, US capitalism was built on free competition, with easy market entry and exit, and a focus on combating monopolies. Today, however, the opposite is true. Old principles have been abandoned, and monopolies are thriving. The problem is that these monopolies self-reinforce. Their valuation relies on the belief that they will continue to uphold their dominance, having the necessary resources to achieve their goals.

Moreover, the US government strongly supports privately-led technological development. The belief that government influence is waning might be true for Europe but not for the United States. Without US government backing, Elon Musk would not have achieved his current success.

The Great Depression, as a crisis of capitalism, led to a world war. If technological progress ends up stifling humanity, we could face an era of immense violence.

In the short term, what concerns me is that governments no longer act strategically; they primarily accommodate market demands.

Without US government backing, Elon Musk would not have achieved his current success Furthermore, in the US, there is virtually no social safety net, and labour is viewed as an externality.

For instance, Amazon has ordered 750,000 robots. The share of labour in GDP is decreasing in favour of capital income.

China, on the other hand, follows a different approach, aiming for overperformance, such as by increasing the population’s IQ levels.

Will global competitiveness increasingly rely on automation?

Yes. French President François Mitterrand observed in 1995, «the 21st century will be characterised by a struggle to the death, but without deaths, between China and the USA.» This competition will be driven by automation and AI. How can this technology-driven future be socially accepted?

All scenarios are possible. If hypercapitalism continues to impoverish people, major social conflicts are inevitable. People will resist having their lives «deterritorialised,» or dissolved into an intangible sphere that allows some to exploit others without any protective geographic framework.

Do you foresee social unrest erupting even before geo-strategic conflicts, such as in Taiwan?

I am more concerned about social and civil unrest than anything else. Consider what might happen in the USA if Trump wins the election...

Could new, virtuous economic and social models emerge?

How can we envision a stable world when productivity gains are monopolised by global corporations that wield more power than governments, and the erosion of purchasing power is constrained solely by the necessity to sustain the next purchase?

To navigate this new world, governments must now conceive systems of social and fiscal solidarity. For example, Europe faces the challenge of integrating an ageing population. Automation should not equate to reduced social contributions. Governments should consider taxing machines, as Sismondi suggested. Do we have to wait for a revolution to bring this about?

This interview also appeared in French language in Hors Normes, a syndication partner of World Economic Journal

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How Saudi Arabia is making its mark in the global AI leadership race

S

By Hisham Allam in Cairo and Adrien Henni in Paris

Adrien Henni is the founder of International Digital News, a tech news and research agency dedicated to the emerging tech scenes of Europe and Asia.

Based in Egypt, Hisham Allam covers politics, economics and societal issues.

He is a corecipient of the Pulitzer Prize for his work on the Panama Papers.

audi Arabia is moving with remarkable resolve and enormous resources towards its stated goal of becoming a global leader in the field of artificial intelligence. Over the past few years, a variety of initiatives were introduced—from new government bodies to investment vehicles to R&D and startup support programmes.

These efforts are reflected by the kingdom’s emergence in several international AI-related rankings. In the 2023 Tortoise classification, which covers 60 countries, Saudi Arabia claimed the top position for its AI Government Strategy and earned a spot in the top 20 for its infrastructure and operating environment. That same year, Stanford University’s International AI Index noted the Saudi Arabian public was among the most positively minded in the world about artificial intelligence.

PIONEERING STARTUPS

Artificial intelligence is not entirely new in Saudi Arabia. The past decade saw the emergence of a first generation of locally-based startups involved in AI developments. Among them were Lucidya, founded in 2015, with its AI-powered customer experience management software; Mozn, established in 2017, offering solutions to enhance risk intelligence and compliance processes, as well as Arabic NLP products; and Tachyon, launched that

same year, whose cloud platform uses blockchain and machine-learning (ML) algorithms to optimise transport and logistics operations. (As of July 2024, Tracxn identified 116 Saudi startups in the AI realm.)

The government's first major action occurred in 2018 when Saudi Arabia pledged $45 billion—yes, billions, not millions—to SoftBank’s Vision Fund. Primarily, though not exclusively, focused on AI, this massive global technology fund has invested in notable companies such as Arm, Automation Anywhere, Cruise, and Nvidia.

But Saudi Arabia has stopped seeing itself merely as a source of funding. It now seeks to build its own tech industry, backing local ventures and requiring international companies to operate within the country.

In 2019, the government established the Saudi Data and Artificial Intelligence Authority (SDAIA). This organisation describes itself as "the national authority on all matters related to the organisation, development and management of data and AI."

THE RUSH

Over the past two years, Saudi Arabia's efforts to build a domestic AI industry dramatically intensified. In May 2023, in collaboration with New Native, a US-based AI business and technology platform, the authorities launched GAIA, promoting it as a world-class generative AI startup accelerator. The initiative set an ambitious goal of es-

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TOP AI GOVERNMENT FUNDING ACROSS THE WORLD

BET ON EDUCATION AND RESEARCH

Saudi Arabia is likewise committed to fostering AI in its education system. The Ministry of Education's automation and technology programme

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has trained over 30,000 students in AI and programming principles in recent years, according to SDAIA. Furthermore, since 2023, the King Abdulaziz Scholarship Program has helped young Saudis study AI at premier international universities. AI expert Abdo Farouk Al-kattan told WEJ that more than 5,000 Saudis were to study AI-related disciplines at institutions such as MIT, Stanford and Cambridge. The plan started in 2023 and is still ongoing.

King Abdullah University of Science and Technology (KAUST), Saudi Arabia’s leading research institution, is drawing foreign AI experts and offering computing resources to establish itself as a major hub for AI research.

To lead its AI programme, the university has recruited Jürgen Schmidhuber, a prominent figure in the global AI research community.

The King Abdullah International Medical Research Center (KAIMRC) is utilising AI to analyse medical data and develop innovative treatment solutions. This organisation says it has published over 200 scientific papers on AI and medical technology and invested around $100 million in related R&D over the past three years.

In China—number two in terms of government funding with some $195 billion in 2019-23, according to AIPRM — a national AI Development Plan aims to turn the country “into a major global AI innovation centre” by 2030. The scale of its AI core industry is expected to exceed one trillion yuan (approximately $141 billion) with the related industries surpassing 10 trillion yuan, according to official sources.

The European Union also wants to become a world-class hub for AI. Focusing on AI research, innovation and ethics, the EU’s AI Strategy, adopted in 2018, aims to invest €20 billion annually between 2020 and 2030. In 2021, the Commission's AI package focused on fostering a coordinated European approach to AI, and developing regulatory and impact assessment frameworks. Additionally, in January 2024, the Commission launched an AI innovation package in support of startups and SMEs.

PHOTO: JOHNNY GREIG/GETTY IMAGES

tablishing 300 AI companies within 36 months. The first batch attracted entrepreneurs and startups from various countries, including Taiwan, South Korea, Sweden, Poland and the United States, according to media reports. All participants were required to register a legal entity in the kingdom and allocate 50% of their investment locally.

Less than a year later, the Saudi government raised the stakes, announcing an additional $1 billion injection into the GAIA ecosystem, while New Native unveiled plans to create a $100 million fund to support AI startups across the region.

The next month, The New York Times revealed the Saudis’ intention to launch, in partnership with Andreesen Horowitz, a $40 billion investment fund dedicated to AI technologies. Far above the typical amounts raised by US venture capital firms, this vehicle would position Saudi Arabia’s sovereign wealth fund, PIF, as a major force in the global AI industry.

According to AIPRM, the US stands number one in government funding for AI, with almost $328 billion spent over five years (2019-23). A 2019 Executive Order established the ‘American AI Initiative’ with the stated goals of promoting "American Innovation, American Industry, the American Worker, and American Values." The next year, the Congress passed the National AI Initiative Act, allocating substantial funding to support AI research, education and standardisation.

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VITAL TO INDUSTRY DEVELOPMENT

The Saudi government sees AI as a cornerstone of ‘Vision 2030,’ the country’s grand strategy to reduce dependency on oil and diversify the economy. "Out of 96, 66 of the direct and indirect goals of Vision 2030 are related to data and AI,” says the SDAIA. Many of the kingdom’s technology-related programmes feature a key AI component. One example is NEOM, the mega-city project that aims to build a beacon of technology and sustainability in the middle of the desert. In October 2023, the NEOM Investment Fund (NIF) announced a $100 million investment in Pony.ai, a California-based autonomous driving company, and a joint venture to develop, manufacture and deliver autonomous vehicles in the region.

Saudi tech entrepreneur Ahmed Yusuf believes AI is “poised to revolutionise NEOM's infrastructure management, from optimising energy distribution and waste management to enhancing transportation systems.” AI could also optimise construction designs, help manage logistics, and contribute to achieving NEOM’s sustainability goals through optimised renewable energy management and stronger environmental monitoring.

AI is also assigned a significant role in Alat, a brand-new firm which plans to invest $100 billion of PIF money in next-gen industrial ventures. Headquartered in Riyadh, the company is betting on AI Infrastructure to support "smart manufacturing, sustainable and energy-efficient computing,” and aims to integrate AI with Industry 4.0 technologies.

LURING FOREIGNERS

In their rush to assert their power on the global tech map, the Saudis still need foreign talents and technologies.

Alat’s $200 million joint venture with Chinese Dahua Technology is also under US scrutiny Microsoft, Google Cloud and Amazon are working hard to develop Saudi Arabia’s cloud computing infrastructure. In March 2024, AWS announced a $5.3 billion investment in a region-wide project, two new innovation centres, and training programmes for local students and developers.

That same month, a myriad of tech executives, engineers and sales representatives from the world’s largest tech firms rushed to a giant tech conference called Leap, held in the desert, 80km away from Riyadh.

Presented by some as a ”digital Davos,” the event drew some 200,000 people and generated $10 billion worth of deals, according to Saudi Arabia’s state press agency. IBM CEO Arvind Krishna mentioned a “lifetime friendship” with the kingdom, while TikTok CEO Shou Chew heralded his app’s growth in the kingdom and shared his intentions to “invest even more,” reported The New York Times.

US-CHINA CONFRONTATION

The growing foreign attention to Saudi Arabia’s technology sector goes beyond mere business considerations. The kingdom is also emerging as a site in the US-China technology confrontation.

KAUST has alarmed US officials when it attracted Chinese students and professors and launched partnerships with Chinese research institutions. “More than a dozen students and staff members at Kaust are from military-linked Chinese universities known as the Seven Sons of Nation-

al Defence,” according to a review

by The New York Times. The US believes these students and professors will “use Kaust to sidestep US sanctions and boost China in the race for AI supremacy.”

The university’s supercomputer development program is also viewed with suspicion, as it may necessitate purchasing $100 million worth of valuable microchips from Nvidia, the US-based AI computing giant.

Announced in February 2024, Alat’s $200 million joint venture with Chinese Dahua Technology is also under US scrutiny. A global leader in video-centric AIoT solutions—including surveillance devices,—Dahua intends to develop its first overseas manufacturing facility in Saudi Arabia.

The US is concerned that this or other projects in the region could be exploited by Beijing to gain access to technology that Chinese firms are restricted from purchasing from the US. Bloomberg reported that US officials warned their Saudi counterparts that they would need to choose between Chinese and American technology as they advance Saudi Arabia's semiconductor industry.

Alat CEO Amit Midha said his company would divest from projects involving China if it were asked to do so by the United States.

“So far, the requests have been to keep manufacturing and supply chains completely separate, but if the partnerships with China would become a problem for the US, we will divest,” Bloomberg quoted him as saying.

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WILL SOUTH AFRICA’S NEW COALITION GOVERNMENT BREAK THE MOULD?

By Patrick Mzungu

Patrick Mzungu is a writer and author based in South Africa. He covers entrepreneurship, business, finance, marketing and world economy.

ANC FAILURES For years if not decades, the ANC had been criticised for failing to address various socioeconomic challenges. Corruption, unemployment and electricity supply issues were among people’s top concerns.

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Individuals connected to powerful politicians had been involved in corruption, eroding public trust in the government. In one of the largest scandals of the previous decade, the Gupta brothers were accused of pursuing a project of “state capture” amounting to billions of US dollars, in collaboration with former president Jacob Zuma, who ultimately resigned. The Zondo Commission Report identified deliberate acts of state resources looting, but no action was taken.

Corruption also flourished at the local level, affecting the implementation of South African municipalities’ policies.

Policies also failed to maintain economic growth at a sufficient level, with GDP decelerating in real terms from 1.9% in 2022 to 0.6% in 2023. This weak record came as a result of power shortages, transport sector constraints, and lower prices for gold and platinum group metals on global markets.

As a result, jobless figures stood around 33% (46% for the youth) as of Q1 2024, placing South Africa among the countries with the highest rate of unemployment in the world.

The country also boasts one of the highest levels of income inequality. In 2022, the World Bank noted that 80.6% of its financial assets were owned by the top 10% of South Africans.

Poverty and wealth disparity are among the key factors contributing to high crime rates, where South Africa also features prominently in international rankings.

IDEOLOGICAL OPPOSITES AND POLITICAL DEXTERITY Featuring 75 members from 11 parties, the new cabinet is the largest since the advent of democracy. This entirely new political configuration has necessitated reconciling very different ideologies and policy orientations.

The ANC’s platform focuses on economic justice, social justice and anti-corruption, while the DA advocates for market-friendly policies and good governance. The Inkatha Freedom Party (IFP) focuses on cultural preservation, social conservatism and rural development while Patriotic Alliance, a newer political party, commits to fight

PHOTO: PER-ANDERS PETTERSSON/GETTY IMAGES

O

n May 29, 2024, South Africa’s general elections produced a little anticipated outcome, with no single political party winning the parliamentary majority. Receiving only 40.2% of the votes, the African National Congress (ANC)—which had ruled the nation non-stop since the end of apartheid 30 years ago—could no longer keep hold of its power.

The voters had spoken. To address their demand for political change, the ANC agreed with the numerous opposition parties to form a ‘Government of National Unity’ (GNU), with President Cyril Ramaphosa providing them with cabinet positions.

WORLD ECONOMIC JOURNAL

crime, develop the economy and unite the nation.

The ideological divergences between the ANC and DA are so deep that investors and credit rating agencies have expressed scepticism about these parties’ ability to overcome them easily. For example, the ANC had increased expenditure on social grants just before the election, while the DA promised to reduce some of them, alongside other ANC black empowerment policies.

The sustainability of the coalition government, however, will largely depend on the dexterity and competency of the key political figures.

President Cyril Ramaphosa’s long political experience could be an asset to handle complicated political issues, while Gayton Mckenzie of the Patriotic Alliance might be well-positioned to tackle crime and support economic empowerment, which have long been central themes of his agenda.

FIRST MEASURES Just two weeks after the election, the parties signed a Statement of Intent that outlined priorities for the new administration. It aims to foster rapid, inclusive and sustainable economic growth as well as job creation, land reform, transformation, livelihood support and infrastructure development.

These priorities have been reflected in the GNU’s very first steps. At their first meeting after the elections, the government and business have agreed to actively address, over the next 12 to 18 months, such pressing challenges as electricity outages, poor logistics and high crime.

Among other pro-employment measures, the Department of Home Affairs—now branding itself as "a power-

Meanwhile, a reform of public-private partnerships (PPPs) has been adopted to stimulate investments in critical sectors like energy and infrastructure, and alleviate the financial strain on the public sector.

Symbolically, the new government will avoid purchasing new houses and offices for cabinet and parliament members, displaying a commitment to

The new government will avoid purchasing new houses and offices for cabinet and parliament members, displaying a commitment to responsible spending ful engine for economic growth"—has committed to urgently addressing the backlog in work permit processing. A special team was formed and 92,886 permits out of 306,042 were reportedly processed in just a few weeks, a 30% reduction. The new government contends that boosting the availability of scarce skills in the labour market is a key strategy for job creation.

Brenthurst Foundation’s election survey conducted by SABI Strategy in February and March 2024.

Source: Brenthurst Foundation

responsible spending. Additionally, government officials will be required to use existing furniture.

CAUTIOUS OPTIMISM Many South Africans are cautiously optimistic about the new government's setup, even though the shift has introduced unfamiliar political uncertainty.

Professor Susan Booysen, a political analyst, acknowledged the contradictions in the positions of the various parties. She emphasised that they need to clearly understand their roles: "It's very important that the [GNU] parties come to accept and show acceptance that this is a new entity they're acting for,” Eye Witness News quoted her as saying.

While much of the old government programme will remain in place, Booysen also pointed out that the new government cannot simply be a continuation of the previous one. “Where there is a need for change, where there have been deficits, where the poor policies have been falling short, it must be very clear that the old orders, instructions, policies are not guaranteed to be put in place again,” she explained.

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BRICS URBAN FUTURE FORUM IN MOSCOW & BRICS SUMMIT IN KAZAN UNVEILING PERSPECTIVES ON A NEW GLOBAL ERA 100

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The year 2024 has marked a turning point for BRICS, with the addition of new members such as Egypt, Iran, the United Arab Emirates, Saudi Arabia and Ethiopia. This expansion has nearly doubled the population under BRICS and positioned it as one of the largest communities of nations.

B

RICS unites a wide range of civilisations, including Christian, Confucian, Hindu, Buddhist and Islamic traditions. Countries like China and India, despite their complex bilateral relations, now share this platform.

Yet these nations are united by the vision of a more balanced, multipolar world; a place where decisions are made through equitable dialogue and respect for varied political development models.

Currently, BRICS countries collectively account for a significant portion of the world’s economic power. In 2023, they contributed 31.5% of global GDP, a figure projected to surpass 50% by 2030, according to Acorn Macro Consulting (UK).

However, for BRICS to build their unity and exert their influence on the global stage, a strong economic foundation is needed, including comprehensive financial, legal, and

business infrastructures. As long as BRICS lack an independent economic ecosystem, they will continue to rely on Western financial and legal systems for their interactions.

The pursuit of this more balanced world and the related economic and political challenges will be central topics at the BRICS Summit in Kazan from October 22-24, 2024.

A “WORLD OF CITIES”

Much of this economic dynamism is being driven by cities.

Urbanisation is a global trend that has significantly shaped the development of emerging regions. Between 1990 and 2020, the number of cities in Africa surged from 3,300 to 7,600, and the urban population grew by 500 million. Today, the global urban population exceeds the rural population, making this an era defined by cities.

At the BRICS Urban Future Forum, held on September 18-19, 2024, in Moscow, megacity leaders will explore

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the economic and technological interactions between these urban hubs. Representatives from major cities like Bangalore, Guangzhou, Kolkata, Moscow, Rio de Janeiro, São Paulo and Tehran will gather to share their experiences and launch collaborative projects aimed at sustainable development. The event will also include partner cities such as Almaty, Ankara, Baku, Beirut, Bishkek, Doha and Kuala Lumpur.

True to BRICS’ tradition of blending academic research with practical governance, the forum will feature renowned experts from various disciplines. Key figures include leading economists Jeffrey Sachs and Daron Acemoğlu; Maimunah Mohd Sharif, former Executive Director of UN-Habitat and current mayor of Kuala Lumpur; Nobel Peace Prize laureate Dr. Raekwon Chung, who formerly advised the UN Secretary-General on climate change; and Nicholas You, Executive Director of the Guangzhou Institute for Urban Innovation.

Under the theme "Harmonious Development: The Future of BRICS Megacities," the forum will emphasise bal-

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anced growth, echoing the UN-Habitat’s focus on avoiding isolated success stories. Important international research projects will also be presented during the discussions.

The World Innovation Award, another highlight of the forum, will recognise outstanding individuals advancing the UN’s Sustainable Development Goals through pioneering projects. Organised by the World Organization for Development (WOD), a UN-affiliated NGO, the award celebrates exceptional work in this field, as highlighted separately in this issue of WEJ. WOD’s initiatives, which have been acknowledged by the UN as exemplary best practices in 2015 and 2021, aim to accelerate progress toward achieving the SDGs. Additionally, the forum will unveil BRICS 250, a pioneering corporate ranking which is also featured in this issue of WEJ. Unlike conventional Western rankings, BRICS 250 evaluates not only financial performance but also a company's dedication to sustainability. The ranking considers corporate ESG and SDG strategies and, more critically, their effective execution.

[ EVENTS ] [ TRENDS ]

Forums | EVENTS

SEPTEMBER - NOVEMBER 2024 SEPTEMBER

18-19

OCTOBER MOSCOW, RUSSIA

BRICS URBAN FUTURE FORUM

Gathering decision-makers from the public and private sectors, this event aims to define the development agenda of BRICS cities and beyond. It will identify growth areas and create synergies between city authorities and a variety of organisations.

SEPTEMBER

20-23

NEW YORK CITY, USA

SUMMIT OF THE FUTURE

The UN’s Summit of the Future brings world leaders together to "forge a new international consensus on how we deliver a better present and safeguard the future.” Amid an atmosphere of mistrust, this event aims to facilitate global cooperation, using newer approaches to reflect today’s political and economic realities. At the Summit, world leaders will adopt the 'Pact for the Future,' which will include a 'Global Digital Compact' and a 'Declaration on Future Generations.'

DUBAI, UAE

Touted as "the region’s largest sustainability and clean energy technology exhibition," WETEX claims nearly 40,000 attendees and 2,600 brand exhibitors. The event displays the latest technological advancements and offers a variety of opportunities to discuss the latest industry trends. It is organised annually by the Dubai Electricity and Water Authority (DEWA).

OCTOBER

14-18

DUBAI, UAE

GITEX

One of the world's largest technology events, GITEX is equally attractive to big tech, governments, innovative startups, experts, investors and corporate buyers. It expects more than 180,000 attendees representing more than 6,000 companies and generating some 700,000 leads.

14-18

ROME, ITALY

WORLD FOOD FORUM

Hosted by the FAO, the World Food Forum involves an independent network of partners aiming to shape agrifood systems for a better food future. Focusing on youth action, science and innovation, and investment, the forum "forges new paths of action and multi-sector partnerships for agrifood impact at the local, regional and global levels to achieve a more sustainable, resilient, inclusive and hunger-free future for all."

OCTOBER

SEPTEMBER YEREVAN, ARMENIA

EMERGE CONFERENCE

This international event focuses on the 'New East,' a region encompassing Central and Eastern Europe, the Balkans, and Central Asia. Emerge will connect some 250 globally-oriented startups with international investors, including top-tier VCs from the UK, US, Europe and MENA.

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WATEX

10TH WORLD FZO CONGRESS

As global economic dynamics shift, there is a need to continuously adapt and highlight the relevance of free zones in facilitating international trade and investment. World FZO’s 10th Anniversary provides an ideal platform to showcase these stories, filling the existing knowledge gap and reinforcing the organisation’s thought leadership.

25-26

DUBAI, UAE

OCTOBER

SEPTEMBER

23-25

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WEJ | September - October 2024

15-18

NEW DELHI, INDIA

MOBILE CONGRESS

Organised by the Department of Telecommunications (DoT) and the Cellular Operator Association of India (COAI), IMC has established itself as one of Asia's most prominent technology expos. IMC brings together industry, government, academia and other ecosystem players to discuss, demonstrate and display the latest TMT and ICT trends.

OCTOBER

22-24

NOVEMBER KAZAN, RUSSIA

5-10

16TH BRICS SUMMIT The BRICS Summit in Kazan is the premier political event of the year. Heads of state and their representatives from 36 countries – BRICS members, aspiring members, and leaders from Africa, Latin America, the Middle East, and Southeast Asia – will gather to make pivotal decisions that will influence the trajectory of the world’s most dynamic regions.

22-23

NOVEMBER

DUBAI, UAE

BLOCKCHAIN LIFE 2024

In its 13th edition, this major event on blockchain and cryptocurrencies expects more than 10,000 attendees and 200 speakers. It is intended for traders, miners, blockchain developers, innovators, business owners, investors, corporate executives and government officials. The event will also feature an exhibition with over 180 booths, as well as awards for "people and products that shape the world of Crypto and Web3."

CAIRO, EGYPT

WORLD URBAN FORUM

Co-organised by the UN Human Settlements Programme (UN-Habitat) and the Government of Egypt, WUF 12 will focus on sustainable, inclusive and resilient cities. More than 20,000 participants — citizens, local and national government representatives, academia, private sector, civil society, UN entities, grassroots, international organisations, etc. — are expected to participate in-person and virtually. Through the 'Urban Expo' and a variety of partner-led events, participants will showcase their works, collaborate and learn from each other. The conference also features networking sessions, ‘Voices from Cities,’ an ‘Urban Library,’ and much more.

NOVEMBER

5-7

MEDELLÍN, COLOMBIA

UN WORLD DATA FORUM

This forum aims to "spur data innovation, nurture partnerships, mobilise high-level political and financial support for data, and build a pathway to better data for sustainable development." It is organised with support from the Statistics Division of the UN Department of Economic and Social Affairs (DESA).

NOVEMBER

15-16

NOVEMBER

4-8

CHINA INTERNATIONAL IMPORT EXPO

Hosted since 2018 by the Chinese government in partnership with WTO, UNCTD and UNIDO, this major annual event gathers exhibitors, buyers as well as business executives and government officials from across the world.

12-15

OCTOBER

SHANGHAI, CHINA

MOSCOW, RUSSIA

INTERNATIONAL NEW MEDIA FORUM

This event will gather "leaders of new media, free minds, and opinion makers from around the world" to showcase the importance of new media and create opportunities for dialogue.

NOVEMBER

19-20

DUBAI, UAE

DUBAI FUTURE FORUM

Hosted by the Dubai Future Foundation at the iconic Museum of the Future, this event "brings together futurists, foresight practitioners, thought leaders, and experts from academia and various industries as well as government to anticipate challenges, imagine opportunities, share foresight, and shape the future."

NOVEMBER

BARCELONA, SPAIN

SMARTCITY EXPO WORLD CONGRESS

This influential event on urban innovation aims to bring cities and territories together and help them approach the latest market-ready urban solutions. More than 25,000 attendees, 1,100 exhibitors and 600 speakers are expected to participate.

23-25

GABORONE, BOTSWANA

AFRICAN ECONOMIC CONFERENCE

The event is hosted by the African Development Bank, the UN Economic Commission for Africa, and the UN Development Programme. It gathers policymakers, development practitioners, academics and emerging researchers to discuss the challenges confronting Africa and present solution-oriented research.

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The new climate agenda should go from the bottom up, not from the top down. A successful transition from a "free" market to a sustainable climate economy is crucial for our future Dr. Raekwon Chung Nobel Peace Prize laureate (with IPCC), Former Advisor to the UN Secretary–General on Climate Change, Honorary Chairman of BRICS Urban Future Forum

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WEJ | September - October 2024

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