MICROCAPITAL STORY: Jeffrey Sachs Outlines The Gate Lecture, Highlights Microfinance at Dubai International Financial Centre (DIFC)

Jeffrey Sachs, considered one of the most influential economists of his time by Time magazine, gave a speech entitled “The Great Convergence: The Shifting Balance of Power in the 21^st Century”, which outlined The Gate Lecture, a presentation that he gave at Dubai International Financial Centre (DIFC).

In his speech, he highlighted the role of microfinance within the framework of a partnership between the public and private sectors, which is important for achieving a financial deepening of developing economies. He stated that once publicly-funded infrastructure such as roads, water, and sanitation were in place, microfinance would be able to play a critical role in driving private investment. Some roles of microfinance include: helping the relatively poor develop their skills, empowering women, and enabling these marginalized populations to enter the work force, thus helping drive economic growth. With government regulation and promotion of banks, according to Sachs, microfinance can become a “critical investment [that] adds a complex dimension to the labor force”.

In the face of rapidly rising populations in the Middle East and North Africa (MENA), which by mid-century, will be one third larger than Europe’s population, Sachs maintains that the faster the economic growth spreads, the better and safer the world will be since big divisions between the rich and poor are currently a major factor in global unrest.

Sachs has been an economic advisor to governments in Latin America, Eastern Europe, the former Yugoslavia, the former Soviet Union, Asia, and Africa. He has also worked extensively with international agencies, such as the International Monetary Fund (IMF) and the World Bank, on problems of poverty reduction, debt cancellation, and disease control in the developing world. He is currently professor and director of the Earth Institute at Columbia University, and special advisor to United Nations (UN) Secretary-General Ban Ki-moon.

Dubai International Financial Centre (DIFC) is the world’s newest global financial hub, led by Dr. Omar Bin Sulaiman. It was created in 2004 in Dubai, United Arab Emirates (UAE) with the goal of bridging the gap between existing financial centers of London and New York in the West and Hong Kong and Tokyo in the East. DIFC Week, a week of conferences was the first event of its kind in the Middle East. It focused on “Financial Opportunities for the Third Millenium” and brought together financial thinkers and strategists from all over the world to address principal topics in international finance.

By Mary Fu

Additional Resources:

Dubai International Financial Centre (DIFC) Week: About

DIFC Week: Jeffrey Sachs

DIFC Week: Event Calendar

DIFC: About DIFC

Business Intelligence Middle East: “The Gate Lecture by Jeffrey Sachs”