Economy

Young Entrepreneurs” reviews intra-Mediterranean trade solutions in Istanbul

Fathy Al-Sayeh

The delegation of the Egyptian Youth Business Association participated in the Conference on Opportunities to Promote Trade among the Mediterranean Countries in the Light of the Current Circumstances, organized by the Union for the Mediterranean in Istanbul, Turkey, from 4 to 8 November The delegation was headed by Eng. Bassam El-Shanawy, Secretary-General, Naglaa Akl, Board Member, Marwan El-Shanawy, Head of the Education Committee of the Association, and Suzan Saleh, Executive Director of the Association.

On his part, Eng. The head of the delegation, that the conference discussed the effects of the Corona pandemic and the effects of the Russian-Ukrainian war on the region in terms of prices and disruption of supply and financing chains, and the great impact caused by those successive events on global economies, specifically the economies of developing countries, noting that “business youth” reviewed solutions during the meeting.

On her part, Dr. Naglaa Akl, member of the Board of Directors of the Egyptian Youth Business Association, member of the delegation participating in the conference, said that Western sanctions against Russia indicate with The flight of capital from China into a prevailing trend, adding that “countries have been in recent years trying to reduce the pace of the so-called critical dependencies and this may lead to a decline in globalization,” which is very similar between the current crisis and the Cold War era, where “some countries that have become It was politically allied, more economically harmonious, but not integrated with others.” This confirms that the world is currently moving towards a system based on two distinct geopolitical economic blocs, as the first bloc is formed from market economy countries such as the United States, the European Union, Japan and South Korea. The second bloc is made up of countries represented by China and Russia and their most important economic allies, adding that what the world is witnessing today indicates the return of “political geography, which paths may lead to a decline in globalization, especially with the attempts of countries that do not have much similar thinking to reduce the economic consequences.”

A New Era.

Akl added that the World Bank predicted, in its latest report, a decline in economic activity in rich countries by 7%, because the outbreak of a pandemic Covid-1967 severely affects me

Emerging markets and developing economies are expected to contract by 2.5%, the first collective contraction in

years since the least. At the same time, per capita income is expected to decline by 3.6%, throwing millions into extreme poverty, as the Corona pandemic caused the largest depression in decades, indicating that although the final outcome is still unknown, the pandemic will lead to an economic downturn in The vast majority of emerging market economies and developing countries.

For his part, Marwan Al-Shanwani, Chairman of the Education Committee of the Assembly, a member of the delegation participating in the conference, said that the outbreak of Corona triggered economic crises that caused disruptions in supply chains, starting from a shortage in supply to a rise Prices, as these turmoil stimulated some to make a fundamental change in defining supply chains, and moving from the prevailing trend on manufacturing in a timely manner to keeping stocks.”

Supply chains, companies have done a study of shortening supply chains in the sense of “returning them to the countries of origin or perhaps maintaining the production of the main inputs near the production sites of these companies”, which will create greater flexibility in supply, but it carries with it a move away from globalization with a focus on Efficiency and cost-effectiveness,

as this caused a merger between the global supply chain, backup plans and support, meaning that companies are not left facing a crisis and getting into trouble when there is any disruption in global supply chains.”

For its part, Suzan Saleh, Executive Director of the Egyptian Association of Businessmen, participating in the Youth Entrepreneurship Program, said that, according to the Global Economic Prospects report, the US economy is expected to shrink by 6.1% over the next year, while Eurozone production is expected to shrink by 9.1%. The Japanese economy is also expected to decline by 6.1%, noting that elsewhere, growth is expected to decline by 7.2% in Latin America and the Caribbean, 4.7% in Europe and Central Asia, and 4.2% in the Middle East and North Africa, 2.8% in Sub-Saharan Africa (the largest contraction on record), 2.7% in South Asia and 0.5% in East Asia and the Pacific (the lowest rate since a year

)).

Salih added that there are painful changes on their way to us, as the recession caused by the Covid-
pandemic is isolated in many respects, and it is likely to be The deepest recession in advanced economies since the outbreak of World War II, and the first contraction in output in emerging and developing economies, at least in the last six decades,” noting that the current situation has already experienced by far, the fastest and most severe decline in global growth forecasts recorded, in addition To the Russo-Ukrainian war, more growth cuts are expected, which means that policymakers should be prepared to use additional measures to support labor.”