Bahrain EDB Chief Executive: Time for Middle East to take rightful place in global system

Speaking at the event in Jordan, Shaikh Mohammed said that Western-centred global institutions had ignored the new balance of power for too long. It was time for the Middle East to take its rightful place in the new global economic architecture, he added.

"To be fair, the old system served us well in its day, even if it did have a hint of colonialism about it. For rising powers that were mostly excluded - like the Gulf, China and India - it was merely unfair. But with the needs of the world's poorest largely ignored, for the emerging world it has been lethal. Things must change; the world can do better. We need to redesign a global system that is fairer and more cooperative, sustainable, efficient and profitable. We must work together to make sure we build a better world."

Shaikh Mohammed noted that the G20 represented progress only if it was the start of a reform process, rather than a one-off gesture. One case in point, he said, were the voting shares of global institutions that need further adjustment to better reflect the relative weight of member countries in the world economy. Despite still enjoying enviable rates of growth, major emerging markets are significantly underrepresented.

"We were pleased that our friends and neighbours across the causeway in Saudi Arabia were able to speak powerfully for the Gulf and for MENA at the London summit. A different voice, with a different perspective. But now we need to go several steps further. We need a carefully planned global redesign - and that means diplomacy as well as finance - not just of the G20, but of the IMF, the World Bank, and the United Nations, too."

"A quick glance at the atlas tells you the world includes China, India, Africa and the Middle East, not just Europe, Japan and America. To succeed, global redesign has to be just that - global."

Shaikh Mohammed believes there is much to learn from the Gulf economies. The six nations of the GCC have been careful about managing debt levels while investing in essential areas like infrastructure, education and healthcare, and are becoming a model for cross-border partnership.

Bahrain itself can play a valuable role in the global redesign, he continued, having taken a number of domestic measures designed to strengthen the long term sustainability and prosperity of the Kingdom. These include a prudent fiscal and monetary approach, long term strategy of economic diversification and tried and tested regulatory framework with a commitment to the highest international standards.

"In a crisis, you see a flight to quality; a flight to values that have stood the test of time. Our tradition of prudent financial regulation has done so better than the US and UK models. It may be that our combination of tradition and reform - both based on ethical values - deserves a second glance."

Shaikh Mohammed was part of a Bahrain delegation led by His Highness Shaikh Salman bin Hamad Al-Khalifa, The Crown Prince of Bahrain and Chairman of the EDB.

The event, which was themed "Implications for the Global Economic Crisis for the Middle East: Home Grown Strategies for Success" and took place from 15-17 May, was a timely gathering of the foremost regional and global leaders as the region looks to restore its own growth in the face of the current global economic crisis.