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He focused on collaboration amongst the various international financial bodies & global partnerships between the public and private sectors to overcome the economic turmoil. He highlighted the success of such intervention & partnerships in Qatar commenting that “The use of public-private partnership will become the most effective methodology to add tangible value to the concept of Gross Domestic Happiness and to promote harmony in our economies. This type of development witnessed in Qatar is a model of public and private interests converging for the benefit of the whole country. The public-private partnership creates financial stability and sets the platform for future growth”.
Mr. Seetharaman explained what the global financial crisis meant to real commodity driven economies like all the economies of GCC states, together jointly control 45% of world oil reserves and 18% of world natural gas reserves. He said 'Real commodity driven economies like GCC are likely to experience volatility in securities market owing to market sentiments despite the surge in recent times, reduced cash flows for businesses, rise in credit losses, increase in balance sheet risks due to asset price deflations, lower profit levels among businesses, volatility in commodities market, reduction in trade freedom, more government intervention and shifts in consumer behaviour'.
Mr. Seetharaman also continued saying 'World growth is projected to rise to 4% in 2010. In many emerging and developing economies, activity is expected to be relatively vigorous, largely driven by buoyant internal demand, strong economic frameworks and swift policy responses. Financial markets have recovered faster and money markets stablised. Key challenges include combat unemployment, timing the unwinding of stimulus measures taking into consideration the revival of private demand and addressing the root causes of the crisis by bringing necessary changes to risk and regulatory framework. Monetary and fiscal policies need to become even more supportive of aggregate demand and sustain this stance over the foreseeable future, while developing strategies to ensure long-term fiscal sustainability. Moreover, international cooperation will be critical in designing and implementing these policies'.
Mr. Seetharaman continued highlighting the proactive measures taken by various GCC governments to monitor and manage the current situation.Mr. Seetharaman while explaining on State of Qatar's emergence as a role model for transformation on economic and social fronts said 'The increasing energy demand in last of couple of years world over had enabled Qatar to generate considerable fiscal surplus thereby substantially improving its balance of payments position which has further enabled them to invest wisely on various industrial and infrastructural projects. This has enabled Qatar to gain expertise on diversification and grow on multi-dimensional front with renewed thrust on hydro-carbon sector especially creating additional facilities. On the social front all the important indicators such as healthcare system, literacy rate and women participation in governance indicate steady improvement resulting in significant transformation. Further, unified stance on most of the key issues be it currency union, controlling of inflation, management of its liquidity etc., are been continually addressed through regular coordination through multiple forums amongst the GCC states are making them stronger day by day'
'State of Qatar has also effectively followed the true principles of globalization that is driving the world economies by liberalization and modernization under the astute leadership of His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Amir of the State of Qatar and His Highness Sheikh Tamim Bin Hamad Al-Thani, Heir Apparent of the State of Qatar' he said. Mr. Seetharaman further highlighted the development projects that are been currently undergoing, establishment of Qatar Financial Center, educational & research institutions being set-up and operational in the State of Qatar.
Mr. Seetharaman also explained the potential for Islamic Finance in GCC. He gave an overview of the opportunities prevailing in Islamic Infrastructure and project finance, asset management, Islamic private equity, Sukuk and Takaful. He also highlighted the key challenges for Islamic finance.
In his concluding remarks, Mr. Seetharaman said 'The Global Scenario is changing and a new world order is emerging. There is a changing shift from developed economies to emerging economies and commoditiy driven economies. European and American economies should realign themselves with Qatar and Gulf to promote seamless flow of trade, investment and finance which would result in improvement in bilateral relations between economies’
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