The 1st IISS-Citi India Global Forum
India as a Rising Great Power:
Challenges and Opportunities
New Delhi, 18–20 April 2008
Second Plenary Session:
Towards a Knowledge Superpower?
Sh Mohammed Bin Essa Al Khalifa
Chief Executive Officer, Bahrain Economic Development Board (EDB), Bahrain
(Provisional transcript as delivered)
Your excellencies, ladies and gentlemen, good afternoon. It is an honour and a pleasure for me to be with you here today to be part of the 1st IISS-Citi India Global Forum, discussing what I believe to be one of the most important issues, not just for India or Bahrain, but an issue that is at the very heart of the global economy: the issue of knowledge.
While in this part of the world we clearly live in exciting economic times, there is now universal acknowledgment, heightened by the recent financial crisis that was mentioned earlier by Lord Powell, of a strategic shift towards the east. A shift defined by the change in the balance of political and economic influence, critically in the areas of knowledge, skills and education. The world has watched almost in awe, and dare I say in some corners, in shock, as Indian foreign direct investment (FDI) outflows overtook inflows mid way through 2007, and flagship indicant companies, such as Tata Consultancy Services and Wipro, have gone from strength to strength. Who just a generation ago could have predicted that an Indian company would become the owner of those most British of car makes, Jaguar?
It is for this reason India’s position in the global economy, and as a knowledge superpower, cannot be ignored. India’s determination to create a 21st century skills revolution, a revolution led by a highly skilled, highly trained, highly motivated labour force, has defined India as we know it today, and it has completely changed the way the world views the east.
We in Bahrain are particularly alive to these momentous changes happening in India, as we share so many ties, not least with our people, the nearly 250,000 countrymen and women of Indian origin who live in Bahrain and make an enormous contribution to or country both economically and culturally. We also share a series of core values, and we both have a rich and diverse civil society, which enables our people to lead fulfilled and satisfying lives. Our societies share those qualities that are needed to run this modern and globalised economy. A strong society is built on strong institutions and foundations. Importantly we recognise that the potential can be created by unifying our joint skills, our knowledge base, and our expertise, to expand our economies in the future.
Bahrain’s own success in creating a knowledge economy has been based around the skills and expertise of our people and the investment we have made in financial services. We have used our skills and expertise to create one of the most vibrant, well regulated, transparent and fastest growing financial sectors in the world, according to the City of London. Although Bahrain is a small country in relation to India, the benefit we have and the lessons we can offer, is that the results of policy decisions can be seen much quicker, and I can speak from experience.
Focusing on knowledge is the only sustainable method of wealth creation for our future. We were the first to discover oil in the Gulf, and today we are the first country in the Gulf moving to a post-oil economy. Empowering what we believe actually is our nation’s most valuable resource, our people, with knowledge and skills, will best equip them to meet all future demands. As we move forward into an increasingly globalised economy, I see a clear prosperous future for Bahrain, India, and the other GCC countries, to forge together new strategic business alliances. By harnessing the respective skills of our people we can grow our economies and reach the so-called superpower status.
This is significant for us, because while we historically owe a debt of gratitude to the Indian workers who have helped us build and develop our modern Gulf economies, the time now has come to develop a new parity as nations, to stimulate the emergent pattern of highly-skilled, highly-trained professionals entering the gulf to work in our key growth industries, such as healthcare and education. We, in turn, are putting our money and faith by investing in the future prospects of the Indian economy. While we may have focused on looking west for the past two or three decades since our independence, today we are returning to strengthen our centuries-long relationship we have had with the east, which is why today I would like to make a firm commitment to India. A commitment to help open up and stimulate new market for Indian businesses with Bahrain as a strong partner in the Gulf.
The GCC has the potential to be one of the most lucrative and fast-growing regional economies for India. The opportunity is such that we can further develop our business ties and grow the opportunities for all our people. By developing these alliances we can build on one another’s strengths. By using India’s specialised skill base, but also using Bahrain’s open environment that had led our Kingdom’s ranking to be one of the top 20 freest economies in the world according to The Heritage Foundation and the Wall Street Journal. An environment that illustrates just how well we understand the needs of businesses and entrepreneurs, by freeing them from the constraints of red tape and other unnecessary burdens to do business.
As the financial capital of the Middle East and North Africa region for almost 40 years we in Bahrain have never been more willing to explore and invest in new knowledge economies that will allow us to sustain our need in these critical sectors. We want to develop the business models and partnership that will enhance our reputation and further stimulate growth and success in the financial sector. While we firmly believe this strategic alliance will bring multiple rewards, not just for India but for the gulf and for the whole minor region, I passionately would like to reiterate that it is the enterprise of our people that is the source of our progress. The foundation of the success and the development I have talked about has been the importance of the knowledge economy.
As the centre of economic activity moves from the west towards the east, I believe both India and Bahrain can forge a special relationship to meet our shared goals. I will put forward that focusing on creating the knowledge economy and investing in education would be the best way for India to deal with the real and great challenges that were mentioned earlier today and yesterday by the ministers and other government officials, of dealing with poverty and energy security. Thank you very much.
