The Great Reset


Kristalina Georgieva

June 3, 2020

My thanks to His Royal Highness the Prince of Wales and to Professor Schwab for bringing us together.

Now is the time to think of what history would say about this crisis. And now is the time for all of us to define our own role.

Will historians look back and say this was the moment of a Great Reversal? Today, we see very worrying signs.

One hundred and seventy countries are going to finish this year with a smaller economy than at the start of the year, and we already project that there will be more debt, bigger deficits, and more unemployment. And there is a very high risk of more inequality and more poverty.

Unless we act.

So, what would it take for historians to look back at this crisis as the moment of a Great Reset?

From the perspective of the IMF, we have seen a massive injection of fiscal stimulus to help countries deal with this crisis, and to shift gears for growth to return. It is of paramount importance that this growth should lead to a greenersmarterfairer world in the future.

It is possible to do this. Provided that we concentrate on the key elements of a recovery—and act now. We don’t need to wait.

At the IMF, we see some tremendous opportunities.

First, let me first talk about green growth.

Governments can put in place public investments—and incentives for private investments—that support low-carbon and climate-resilient growth.

Many of these investments can lead to job-rich recovery—think of planting mangroves, land restoration, reforestation or insulating buildings. Think of the key sectors for reducing carbon intensity where both the public and private sector can invest.

I am particularly keen to take advantage of the low oil prices we see today, to eliminate harmful subsidies and introduce a carbon price that would work as an incentive for future investments.

Second, let me talk about smarter growth. We know the digital economy is the big winner of this crisis. But we must not allow the digital divide to widen so that some countries and communities fall further behind. This would bring more pain than gain in the future.

So, it is critical that institutions like the IMF support investments that will shrink the digital divide—working in partnership with the World Bank and others.

We also need to think carefully about how to make sure the jump in growth and profitability in the digital sector leads to benefits that are shared across our societies.

And that takes me to my third point—fairer growth.

We know that—if left to its own devices—this pandemic is going to deepen inequality. That has happened in prior pandemics.

We can avoid this if we concentrate on investing in people—in the social fabric of our societies, in access to opportunities, in education for all, and in the expansion of social programs so we take care of the most vulnerable people. Then we can have a world that is better for everyone.

I want to conclude with an example from the past. William Beveridge, in the midst of the Second World War, put forward his famous report in 1942 in which he projected how UK should address what he called the ‘five giant evils.’ That famous ‘Beveridge Report’ report led to a better country after the war—including the creation of the National Health Service that is saving so many lives today in the UK.

And my institution, the IMF, was created at this time as well—at the Bretton Woods Conference.

So, now is the moment to step up—and use all the strength we have—to turn the page. In the case of the IMF we have a one trillion-dollar financial capacity and tremendous engagement on the policy side.

This is the moment to decide that history will look back on this as the Great Reset, not the Great Reversal.

And I want to say—loud and clear—the best memorial we can build to those who have lost their lives in the pandemic is to build a world that is greener, smarter and fairer.

Thank you.


Iran announces the establishment of a company in Iraq to settle debts worth 5 billion dollars

Political | 08:31 – 07/24/2020

BAGHDAD – Mawazine News

The Secretary-General of the Iran-Iraq Joint Chamber of Commerce, Hamid Hosseini, announced the establishment of a company in Iraq to settle $ 5 billion in debt to Iran, but not paying cash, because of the sanctions, but in exchange for the purchase of goods and commodities in Iraq.

Hosseini said in an interview with the Iranian “Ferraro” website, Friday, that this amount is Iran’s request with the Iraqi Bank of TBI, adding that according to the agreement between the two countries, Iran will provide the company with a list of goods and materials that it needs to be purchased and sent to Iran.

What kind of debt?

The Iranian official did not clarify the quality of the debt owed by Iraq, despite the temporary US exemption for Iraq that includes the import of electricity from Iran only.

However, Iraq is unable to pay for the gas and electricity imported from Iran to Tehran because of the sanctions, and for this reason, Iraqi banks find it difficult to transfer money to Iran.

Abdel Nasser Hemti, the governor of the Central Bank of Iran, had announced after his visit to Iraq on June 19 that Baghdad had agreed to pay its debts related to importing gas and electricity to Iran through the export of food and medicine.

Earlier, Iranian officials announced that Iraq’s debts to Iran for electricity and gas exports amount to $ 2 billion, and it is not known what debts of the three billionaires expected.

Unclear relationships

The Iranian government says that the total trade between Iran and Iraq amounts to 12 billion dollars annually, but given that Iran has stopped publishing details of its foreign trade since March 2019 due to the sanctions, the details of the current trade between Iran and Iraq are not clear.

Iranian President Hassan Rouhani announced during the visit of Iraqi Prime Minister Mustafa Al-Kazemi to Tehran last Tuesday that trade between the two countries should reach 20 billion dollars annually.

Tehran is trying to use the Iraqi financial channel to meet its foreign purchases and circumvent US sanctions.

And the Iranian Vice President, Ishaq Jahangiri, has admitted that Tehran was unable to transfer any money due to the financial and banking sanctions, saying that “the United States does not allow us to transfer one dollar even from the Iranian money that is located in various countries of the world.”


Washington has tended to tighten the screws on Tehran, as more fictitious companies, fraud and entities that it has planted in the region over the years, especially in Iraq, are exposed.

Last April, the US Treasury imposed sanctions on 20 Iraqi and Iranian entities providing support for the Quds Force forces, as well as transferring aid to pro-Iranian Iraqi militias such as the Iraqi Hezbollah Brigades and Asaib Ahl al-Haq. Ended A / 29/43

Saudi Arabia offers great economic offers to Iraq … and the opening of Arar “very close”

Time: 7/20/2020 10:51:18

(International: Al Furat News) Iraqi sources said that the Saudi side during the Saudi-Iraqi Coordination Council put forward ideas and proposals to build industrial cities inside Iraq, and free trade areas, as well as investment in the field of renewable energy.

The Ambassador of Iraq to Saudi Arabia, Qahtan Al-Janabi, said in a press statement that “the meetings of the Coordination Council, which concluded its work in Riyadh, were serious and their results are fruitful, expecting that economic, cultural, commercial and investment relations will witness broad progress.”

“Two memoranda of understanding were signed between the two countries, one between the Iraqi Ministry of Health and the Saudi Food and Drug Authority, and the other between the Iraqi government and the Saudi Fund for Development regarding financing some projects in Iraq, and these meetings differ from its predecessors by the great desire of both parties to start implementing these projects and entering the market, investment and implementation In reality”.

Al-Janabi pointed out to “a meeting that included Prince Abdulaziz bin Salman, Minister of Energy, in the presence of Aramco, Aqua Power and Zahed companies, with the Iraqi finance, planning, oil and electricity ministers, during which important projects were discussed in Iraq and agreement on a timetable to start them.”

Al-Janabi added, “These projects are like the associated gas investment in which Aramco has great experience in it, and the field of solar energy and alternative energy through Aqua Power and Al Zahid, and we expect in the near future visits to these companies and studies to implement them, and there is understanding between the two sides.”

The Iraqi ambassador also expressed optimism about the results of the meetings of the Coordination Council, which brought together senior Saudi businessmen who have business in Iraq or who are interested in entering the Iraqi market.

He added that “convincing proposals have been put forward to the Iraqi side, including building industrial cities inside Iraq and building an economic free zone in the Arar port that merchants from both countries can enter freely, exchange goods, buy and sell, and establish warehouses, and these projects will be funded by businessmen.”

Al-Janabi indicated that the Saudi businessmen suggested the establishment of a special office for Saudi investors in Baghdad linked to a government agency to facilitate the work of investors, indicating that these ideas are welcome from the Iraqi side in full.

Al-Janabi also expected the opening of a new port of Arar, the border between the two countries, in the near future, and he said in this regard, “The Iraqi government is ready to open the port and we hope that it will be as soon as possible. We just expect the port to open very soon. ”

Ammar Al-Masoudi

The international coalition hands over new sites and camps to Iraq

Time: 7/20/2020 12:44:06

(Baghdad: Al Furat News) The international anti-ISIS coalition hands over a camp in Basmaya, south of Baghdad, to Iraqi forces.

The joint operations said that “the international coalition will hand over the security forces to new locations. There is a timetable prepared between the government and the coalition forces for the handover of the camps.”

She noted that the side “is committed to the date of handing over the sites and there is high coordination in this regard and the international alliance is still supporting Iraq in combating ISIS terrorist gangs.”

The deputy commander of the international coalition forces, the American General Kenneth Eckman, said last Wednesday that “the coalition has already handed over a number of military bases to the Iraqi army, noting that the huge training camp Bismayah near Baghdad, where a fake village was built to train soldiers in urban combat, Iraqi forces Sttzlmh Saturday.

He added that the US forces, which represent the bulk of the coalition force in Iraq and Syria, will be reduced , “slowly and in close coordination with the Iraqi government.”

Ammar al – Masoudi