Conference Presentation, Fireside Chat, Panel
Global Overview | The World Transformed | Global Conference 2022
Milken InstituteLaura Deal Lacey, Jonathan Kaplan, Haslinda Amin, Ajaypal Banga, Tharman Shanmugaratnam
- The Milken Institute anticipates hosting 1,300 guests this week and increasing private sessions and roundtables compared to previous years to address economic and geopolitical divides, while planning annual roundtables on capital markets, ESG, and philanthropy throughout the year.
- The institute intends to publish economic research including an annual report on top-performing cities in China and continue initiatives on food and agriculture, family offices in Singapore, and the digital essay series "The Power of Ideas."
- The U.S.-Singapore partnership is expected to strengthen through defense, security, trade, and people-to-people ties, though the broader world order faces uncertainty with predictions of deeper global divides, wider inequalities, and the risk of authoritarians disregarding human rights.
- Geopolitical risks include the Russian war in Ukraine redefining sovereignty and security, the likelihood of state-sponsored disinformation, and U.S.-China tensions regarding Taiwan that are expected to persist, potentially requiring a slowdown in tactics to facilitate strategic dialogue.
- Economic outlooks warn of a likely wave of debt distress in the developing world and financial instability in advanced countries, driven by recession, slow growth, higher interest rates, a strong dollar, and the effects of quantitative tightening.
- Economic adjustments are expected to result in corporate casualties from overborrowing, while central banks may face constraints on government support, prompting a need to re-engage growth engines and leverage the large population bases of India and Southeast Asia.
- Market participants are advised to ensure business plans are fully funded and net cash flow positive for the next couple of years, with predictions that quantitative tightening could trigger public market corrections offering opportunities for experienced investors while stronger entities gain further advantage.
- Technology and climate goals face a dichotomy where 75% to 80% of technologies needed over the next two decades are currently available, yet a sufficient proportion of those required for 2050 Net Zero targets remain only at the demonstration stage, necessitating scaling efforts and policy implementation.
- Globalization is predicted to face challenges from nationalistic chauvinism and separation, though optimism remains for strengthening multilateralism through country clusters and innovation within the private, public, and scientific sectors despite inward-looking tendencies.