Media Centre

King Abdullah Economic City, 14 December 2016 – Speaking to a full house at the Prince Mohammed bin Salman College of Business and Entrepreneurship (MBSC) at King Abdullah Economic City (KAEC), Dean Douglas Elmendorf of the Harvard Kennedy School of Government said that, despite the significant challenges facing the global economy, policy measures including enhanced national investment, encouragement of innovation and strong public leadership could do much to restore confidence worldwide.

The Dean was speaking on the topic of Global Economic and Political Challenges at the inaugural event in the MBSC Connect speaker series. MBSC Connect is an innovative program that brings together local and international thought leaders, practitioners and experts to discuss the global context of today’s business environment.

Dean Elmendorf noted that the major challenges facing the global economy were interconnected. He attributed slow economic growth to a number of factors including a general lack of innovation and the restructuring of resource-based economies, but also observed that economic growth was unevenly spread across populations. The resulting economic uncertainty, he said, contributes to persistently low interest rates, as households seek to reduce their borrowing.

Changes in supply and demand in commodity markets are also enhancing volatility, he noted, pointing to China’s appetite for many commodities on the one hand and the emergence of new technologies such as fracking on the other.

The Dean also outlined a number of policy recommendations that might, collectively, address many of these challenges. Chief among these was the importance of directing public investment to enhance infrastructure, education and research, especially in areas where people had limited access to learning opportunities. He also called for the public, private and social sectors to work together to encourage innovation through training and by providing institutional support for new ventures. Finally, Dean Elmendorf commented on the importance of strong public leadership to implement policy and fiscal changes in areas where they would have the greatest impact and benefit the greatest number of people.

The event was attended by business and academic leaders from the community.

Officially inaugurated earlier this year, MBSC is the first institution of higher learning in Saudi Arabia to focus on developing entrepreneurial leadership skills for students entering government, businesses and civil society. Providing a mix of traditional MBA courses as well as training in soft and applied skills, the College is dedicated to creating fully rounded professionals possessing the total skillset they need to create economic and social value wherever they work and to further the goals of Vision 2030.

“The College is intended to be the preeminent center of human capital development for 2030, fostering a new generation of entrepreneurial leadership in government, businesses and civil society,” said Fahd Al Rasheed, Vice-Chair of the Board of Trustees for MBSC, and Group CEO and Managing Director of KAEC, in his introductory comments. “The future of our country lies with the passion, the drive and the entrepreneurial spirit of today’s youth. MBSC is a pioneer in channeling that spirit for the good of its students and for the nation as a whole.”