As reported by Middle East Economy, The latest report from Oliver Wyman, ‘ The New Silk Road—Growth, Connection, Opportunity,’ predicts that the share of new Silk Road economies in global GDP will rise to 48% by 2040. Would this mean a rebirth of the medieval merchant economies of the Middle East? Or shall we prepare for a new economic order by 2030 / 2050?
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New Silk Road economies’ share of global GDP to rise to 48 percent by 2040: Report
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Increasingly assertive role of GCC countries reshapes economies of the New Silk Road
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Almost 60 percent of total trade activity in the region is currently taking place with other modern Silk Road economies
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The New Silk Road, currently home to eight of the world’s top 20 economies, will see its share of global gross domestic product (GDP) rise to 48 percent by 2040, according to the latest report from Oliver Wyman titled ‘The New Silk Road – Growth, Connection, Opportunity’. The report identifies multiple priority economic opportunities in the New Silk Road region that stretches across Asia, the Middle East, and North Africa.
Oliver Wyman identifies six key areas that have emerged in the increasingly interwoven economies of Asia and the MENA region. Moreover, it believes that a new phase has begun in the relationship between the countries due to intraregional flows of capital, talent and technology. In addition, business activity is expanding beyond trade and construction into a range of new sectors, including automotive, clean technology and artificial intelligence.
Assertive role of GCC countries
Oliver Wyman states in their report that one of the major factors reshaping the economies of the New Silk Road is the increasingly assertive role of GCC countries. Hence, Gulf countries are leveraging high energy prices to diversify their economies and secure their post-oil futures through investment in multiple non-oil sectors.
“The countries that are part of the New Silk Road region are powering ahead with economic opportunity being driven by three major triggers: energy transition, global supply chain disruption, and geopolitical tensions and regionalization,” stated Adel Alfalasi, Head of the UAE at Oliver Wyman, a partner in the Government and Public Institutions Practice and a co-author of the report.
Supply chains and trade
The New Silk Road is an essential component of global supply chains. Thus, it holds 86 percent global export share for semiconductors, 65 percent for clothing, and 40 percent for oil. In addition, it features some of the world’s largest export manufacturers, including China and Japan, and emerging contenders such as India and Indonesia. Moreover, almost 60 percent of total trade activity in the region is currently taking place with other modern Silk Road economies.
Notably, two of the world’s three largest regional free-trade agreements now focus on the New Silk Road region:
The Comprehensive Economic Partnership (RCEP)
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Moreover, the number of bilateral agreements between Asia and the Middle East is rising.
Future outlook
If the New Silk Road region manages to navigate critical geopolitical and environmental issues, it will see greater collaboration, connectivity, and capital growth.
“We envisage a region where energy ties will grow tighter, clean technology will play a greater role, and where manufacturing supply chains will spread out across a wider set of countries as companies build resilience,” says Ben Simpfendorfer, Asia Pacific Lead of Oliver Wyman Forum, a Partner at Oliver Wyman, and a co-author of the report.
The report also states that the flow of private wealth will expand and cross-border payment solutions will improve. In addition, investments in aviation and transport infrastructure will support the rising flows of people and goods. “Finally, a young population of early adopters will drive digital disruption,” added Alfalasi.
To capitalize on the increasing connectivity, countries across the New Silk Road need to adopt new strategies, operating models, value propositions, and mindsets, the report states. “To capture the opportunities, private companies should establish cross-market strategies, align with national priorities, and find the right partners. Governments, on the other hand, should deploy and leverage resources, such as sovereign wealth funds, to facilitate trade, investment, and technology flows and support private sectors,” added Alfalasi.
The Press and Information Team of The Delegation To Türkiye’s description of Izmir as leading the way to a climate-neutral future is an eye-opener about that corner of the Mediterranean Sea. İzmir after rolling up its sleeves, Izmir took decisive steps to become a resilient city in the face of climate change. The European Union (EU) has supported Izmir’s substantial efforts.
The 8,500-year-old pearl of the Aegean, İzmir is a coastal city built on the gulf. From time to time, the sea level rises because of storm surges and the coastline is flooded. Sudden weather events cause flooding. The city is also under the threat of water scarcity and drought.
İzmir has rolled up its sleeves, taking decisive steps to become a resilient city in the face of the climate change. The European Union (EU) has supported Izmir’s substantial efforts.
In 2015, Aziz Kocaoğlu, the then Mayor of Izmir Metropolitan Municipality, signed the EU Covenant of Mayors for Climate & Energy, committing to a 20% reduction in greenhouse gas emissions by 2020. The Convenant aims at supporting mayors in realising the shared climate and energy goals.
In 2019, Tunç Soyer, the previous mayor of Izmir Metropolitan Municipality, reviewed the city’s climate adaptation targets, committing to a 40% reduction in greenhouse gas emissions by 2030. The Izmir Sustainable Energy and Climate Action Plan has received funding from the EU’s Instrument for Pre-Accession Assistance (IPA).
SUMP İzmir for sustainable transport
The preparation of the EU-backed Izmir Sustainable Urban Mobility Plan (SUMP Izmir) commenced in September 2022. It will contribute significantly to achieving the city’s ambitious sustainability targets.
EUROPEAN UNION, 2024 Ambassador attended the opening meeting of SUMP Izmir in 2022
The Head of the EU Delegation to Türkiye, Ambassador Nikolaus Meyer-Landrut, says: “Unlike traditional transport planning, this plan will not focus on vehicles but on people and respect for the environment. Teams from the Izmir Metropolitan Municipality are implementing the project. Stakeholders and the people of Izmir have a big say in defining this vision. Izmir has been at the forefront of the transition to sustainable mobility planning.”
Pioneer projects
The city is implementing flagship projects, ranging from rainwater harvesting to solar power plants.
Under the Izmir Sponge City Project, the Metropolitan Municipality distributed 5,000 rainwater harvesting tanks to 5,000 buildings and encouraged people to use them. A 5-tonne tank that stores only the water that collects on a roof can save 220 tonnes of water a year. The stored rainwater is used for watering gardens, washing cars, and cleaning buildings.
EUROPEAN UNION, 2024 Rainwater harvesting in Izmir
Another prominent project in Izmir is the EU-funded Inter-Cluster Cooperation for Carbon Management project, which had the inaugural meeting in April 2024. It is implemented in partnership with Aegean Exporters’ Associations and CoSviG – DTE2V Distretto Tecnologico Energia ed Economia Verde from Italy, with the participation of Izmir Development Agency, Izmir Metropolitan Municipality’s IzEnerji company and Eurosolar Türkiye. The project, which will come into force in 2026, will contribute to producing clean energy. The EU supports the project with a €520,000 grant.
The Aegean Exporters’ Associations Coordinator Vice President Yalçın Ertan said: “Our goal is to increase our use of renewable energy from 6 per cent to 25 per cent. By 2026, we will provide the necessary support mechanisms for our member companies.”
EU award to Izmir
Izmir is also involved in the EU’s Climate-Neutral and Smart Cities Mission under the Horizon Europe Program. The activities of the Climate-Neutral and Smart Cities Mission are coordinated by IzEnerji.
For these dedicated efforts, in March 2024, Izmir received the prestigious EU Mission Label, along with 22 cities in Europe. This award represents an important milestone in the city’s work on sustainability.
EUROPEAN UNION, 2024 The award is an important step towards making Izmir a sustainable city
Tunç Soyer, who received the award in Brussels on behalf of Izmir just before the end of his term as mayor, said: “This award will place our city in a very privileged position in terms of access to EU funding.”
Ercan Türkoğlu, former Chairman of the Board of Directors of IzEnerji, stated: “We are proud to be the only non-EU city to win this award. The EU has recognised Izmir’s determination and efforts towards achieving sustainability and smart city solutions. We will build a greener, cleaner, and smarter city by working hand in hand for the future of Izmir.”
EUROPEAN UNION, 2024 The award ceremony in March 2024
It is notable that Dr Cemil Tugay, elected Mayor of Izmir Metropolitan Municipality on 31 March, had implemented effective climate-friendly projects as mayor of Karşıyaka, one of Izmir’s central districts.
Call for a unified effort to cut emissions
Mustafa Güleş, Chairman of the Board of Directors of the Izmir Branch of the Chamber of Environmental Engineers, reflects: “To achieve our green targets, the people of the city, all private and public institutions as well as organisations, must support the work and reduce their own emissions.”
The people in Izmir are quite optimistic about these developments. System engineer Sadık Çakıcı remarks: “We are feeling the effects of the climate crisis more and more each day. It is good to see that work is progressing toward achieving a green future for a resilient Izmir.”
Fulya Cengiz, a retired worker, says, “In the last four years, we have experienced floods, rising sea levels due to storm surges, and tsunamis as a result of sudden weather events. This already shows why Izmir needs to be a resilient city.”
What are IPA and Horizon Europe?
The Instrument for Pre-Accession Assistance (IPA) is the means by which the EU has supported reforms in the enlargement region with financial and technical assistance since 2007. IPA funds build up the capacities of the beneficiaries throughout the accession process, resulting in progressive, positive developments in the enlargement region to which Türkiye belongs.
Horizon Europe is the EU’s key funding program for research and innovation, with a budget of €95.5 billion for 2021-2027.
Author: Maroun Kairouz, Head of Middle East and North Africa, World Economic Forum
World leaders came together for a two-day Special Meeting on Global Collaboration, Growth and Energy for Development.
The Israel-Gaza conflict was a key focus of discussion, while leaders also discussed how to achieve a just energy transition and inclusive growth.
Here are some of the key takeaways from speakers from the MENA region on the core themes of the meeting.
Khalil Gibran, a poet from my own village, once said, “Progress lies not in enhancing what is, but in advancing towards what will be.”
Today, the world is at an inflection point, where myriad challenges, from climate change to conflict, are creating a polycrisis that threatens such progress.
But collaboration on common goals can help countries from across the Global North and South shape a more prosperous future for all.
Saudi Arabia’s bold and ambitious Vision 2030 is transforming the kingdom, making it a fitting location for the World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy for Development, which convened under the patronage of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Prime Minister, and Chairman of the Council of Economic and Development Affairs.
More than 1,000 leaders from 90 countries, including 220 government and public sector figures, came together to discuss solutions to immediate crises while laying the groundwork to create a more sustainable, resilient world.
The Middle East and North Africa region acutely faces the challenges of conflict, economic disparities and the climate crisis – and leaders from the region were at the centre of dialogues across the meeting’s core themes.
Here are some of the key takeaways from speakers from MENA.
On a just energy transition
Saudi Arabia, in one of the most water-scarce countries in the world, understands the need for urgent action on the climate crisis. But the MENA region cannot solve it alone, said H.R.H. Prince Abdulaziz Bin Salman Bin Abdulaziz Al Saud, Minister of Energy of Saudi Arabia.
“We have to be conscious of the fact that we here in this room have choices that at least 60, 70% of the world population do not have. Those who are suffering from energy poverty, those who cannot make ends meet, those who are still burning trees, converting it into charcoal, and making ends meet through selling that charcoal and buying food for themselves.”
“Energy is the lifeblood of our economies, but it must be produced, supplied and consumed responsibly,” said Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning. “We cannot allow a world where some have access when others do not.”
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We must invest in clean and renewable solutions, and we must do everything we can to balance the energy trilemma of security, equity and sustainability. —Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning”— Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning
“No one should be left in the dark. But let’s be clear: none of these problems or challenges exist in a vacuum. They do not know borders,” he added.
Saad Sherida Al-Kaabi, Minister of State for Energy Affairs of the State of Qatar agreed the energy transition must be just.
“The importance is to do it in a way that’s responsible for this generation and the next, and make sure people who want to grow and countries that want to grow their economy have the same rights the richer countries have had all along,” he said.
Fatma Thabet Chiboub, Tunisia’s Minister of Industry, explained how the country is reducing its reliance on fossil fuels and the cost of energy by supporting its citizens to use solar power.
On driving inclusive growth
The role of technology – and AI in particular – in accelerating progress and growth was widely discussed, but MENA leaders emphasized the need to invest in people and ensure inclusive growth.
“Inclusive growth is not just a lofty ideal, it is a categorical imperative,” he said.
“We must co-create a global economy that works for everyone. Where every nation has the chance to thrive, regardless of its wealth or status. This means investing in people in their skills, in their education and in their well-being.
“We must also harness and direct new technologies to benefit humanity. Artificial intelligence has the potential to contribute trillions of dollars to the global economy over the next decade.”
“International trade and globalization are the main driver for economic growth, and the main driver for inclusive growth,” said Hala H. El Said Younes Minister of Planning and Economic Development of Egypt.
“What developing and middle-income countries need is more transfer of technology, more foreign direct investment and more capacity building for their people in order to become more resilient and to become more agile to any external shocks.”
Ahmed Galal Ismail, CEO, of Majid Al Futtaim Holding, sounded a note of optimism for the region: “I think from a private sector point of view, we need to deal with the current short-term challenges, but we must not lose hope that this region is on the brink of potential, a new golden economic age.”
There are “no egos” in economic planning said Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan. “It’s OK to change and adjust” in order to deal with the multiple shocks the world is experiencing.
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You need to focus, first of all, on your own people and the human capital development. This is a long-term play that is critical. Human capital is very, very critical. —Mohammed Al-Jadaan, Minister of Finance, Saudi Arabia”— Mohammed Al-Jadaan, Minister of Finance, Saudi Arabia
But, he stressed, many countries will find it very difficult to provide quality education and healthcare for their people.
During the meeting, Saudi Arabia and the Bill & Melinda Gates Foundation pledged to work together to help protect 370 million children annually from polio and lift millions out of poverty across 33 countries.
Women leaders from the region emphasized the need for inclusion of women, young people and marginalized communities to drive growth and job creation.
Noor bint Ali Alkhulaif, Minister of Sustainable Development of Bahrain, said: “What we’re seeing is amazing in terms of recognition by the private sector of the importance of women. You cannot isolate half of society. It’s almost easy maths – you add more inputs, you get more output.”
Emon Shakoor, a Young Global Shaper from the Forum’s Riyadh Hub said: “I think of diversity as meaning being invited to the party. But inclusivity is being asked to dance. As world leaders, as government leaders, as leaders of our organizations, we must ensure that the people who work with us are always being asked to dance, that they truly feel included in these environments.”
On collaboration and conflict resolution
The Israel-Gaza conflict was uppermost in MENA government leaders’ thoughts, with calls for a ceasefire, humanitarian aid and a Palestinian state.
In his special remarks, Mahmoud Abbas, President of the Palestinian National Authority, said: “The first thing we ask for is a ceasefire. And, secondly, we want the humanitarian aid to be able to reach the Palestinian people who are in dire need of it in all of Gaza. And, third, we will not accept in any case, the displacement of Palestinians from Gaza or from the West Bank outside their country.”
The Prime Minister of Jordan, Bisher Hani Al Khasawneh, said: “The world should unite in bringing about a sustained ceasefire and ensure the continuous and sustained flow of humanitarian assistance and goods into Gaza.”
Egyptian Prime Minister Mostafa Madbouli also called for the immediate creation of a Palestinian state. “Now, not tomorrow, the whole world should gather to recognize the right of Palestinians to have their own state.”
There was a strong focus on the need for collaboration to counter growing divergence and “geopolitical recession”.
“Global collaboration is not optional,” said Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning.
“It is essential at this critical juncture … human development calls for a convergence of cultures and ideas as we are all in the same boat, and we can either collaborate to steer it towards peace and prosperity, or we will drift towards a future that is out of our control.”
Competition not conflict is needed to aid economic growth and development, said Faisal bin Farhan Al Saud, Foreign Minister of the Kingdom of Saudi Arabia.
Farmers must produce 70% more food to feed the predicted 2050 global population of 9.1 billion, according to the Food and Agriculture Organization (FAO) of the United Nations.
As the world navigates the impact of the climate crisis on agricultural supply chains, AI and other technologies are becoming increasingly vital to meeting this demand.
A new World Economic Forum insight report highlights the Fourth Industrial Revolution technologies that will drive the next wave of transformation in the agriculture sector, and calls for public-private partnerships to build scalability.
As a young boy in northern India, Himanshu Gupta’s grandmother would often dilute the milk with water to ensure there was enough to feed their lower-middle-class family of sixteen. Rising prices for milk meant the family couldn’t afford to buy more.
“Back then, we didn’t have time to understand the nuances of why or what was happening,” he says. “But many of these problems, like food inflation… climate change is one of the significant factors playing into it.“
Fast-forward a few decades, and Gupta co-founded ClimateAi from his dormitory room at Stanford University, United States, one of the world’s most prestigious universities. He now wants to help more than 500,000 million farmers globally in just six years.
Leveraging today’s rapid advancements in ‘agritech’ – the use of digital tools and technology in farming – is crucial to helping farmers adapt to the climate crisis and strengthen global food security. It also makes good business sense, as Gupta says climate adaptation across all sectors is a $1 trillion opportunity.
“This year, we see an inflexion point in adaptation, going from a philanthropic agenda to a corporate agenda,” Gupta told the World Economic Forum.
ClimateAi works with more than 50 corporations in food, agriculture, and beverage supply chains. Companies are now more engaged because they “appreciate that today’s level of volatility in the value chains because of climate change is unprecedented.”
One-third of the Earth’s soils are already degraded, with the equivalent of one football pitch of soil being eroded every five seconds, the Food and Agriculture Organization of the United Nations (FAO) points out.
Artificial Intelligence (AI) has the potential to help relieve this pressure by reshaping the world’s$5 trillion agriculture business – for the better.
Firstly, timing in farming is essential. When will the heatwave end? How long until the next big storm? When will the floods start? Finding answers to these pressing questions determines farmers’ ability to know when to buy seed, what seed to buy and when to plant and harvest it.
Farmers need these answers several months in advance, sometimes even six months ahead, to guarantee their crops. This is even more important today as the severity of unpredictable weather patterns is accelerating. However, Gupta says most weather forecasts are still only two weeks ahead.
Farmers also need agritech to help them understand how viable their soil – the core of their livelihood – will be in decades’ time as climate patterns evolvefaster than anticipated.
Overall, farmers need far more notice, both for the ‘here and now’ and the ‘what’s next?’. AI-based technologies have the potential to provide that clarity, giving more accurate, detailed and frequent forecasts.
Understanding the difference between weather and climate is vital for farmers as they adjust their operations to keep pace with a changing world.Image: European Space Agency
Secondly, AI and other agritech can increase the supply of urgently needed climate-resistant seeds, accelerating the time it takes to get from the laboratory to the soil. It currently takes 10 to 15 years to launch a new seed, but Gupta says weather patterns can shift significantly in that time. Seeds can become less resilient and crops can fail.
This puts considerable stress on the farming community, sometimes making it difficult to attract new talent. While working with the Government of India, Gupta “saw examples where a lot of cotton farmers either committed suicide, left cotton farming altogether or moved to work as labourers in big cities”. This is not an isolated problem, with95% of young farmers saying poor mental health is the biggest hidden danger in farming today.
Building data banks for farmers
The effectiveness of AI – both in weather forecasting and shaping climate-resistant seeds – heavily relies on the data ‘fed’ into the system. The quality, volume and application of data from farms and other parts of the agricultural supply chain must improve worldwide, though there are already clear differences between developed and developing nations.
In developed nations, a lot of available data can be better gathered, shared and used to increase the accuracy of weather forecasts. Instead of farmers in Spain being told to prepare for a heatwave, for example, AI can determine that tomato farmers in a localized part of Spain should buy a particular type of seed later than plan to protect that specific crop. Gupta says this sort of detail “drives action”, safeguarding harvests, farmers and seed companies.
There is little data in developing countries, however, which can put the communities most vulnerable to food instability at an even greater risk. The head of a village in India would often record the estimated rainfall in that area in a notebook, for example, which Gupta warns can bring unintended bias. In turn, this feeds weaker data into AI systems for that area. His team is now investigating ways to create higher-resolution weather forecasts with little data.
AI enables a range of advanced systems to elevate the efficiency, quality and economic potential of farming worldwide.Image: World Economic Forum
The report is the second paper from the Forum’sAI for Agriculture Innovation (AI4AI) initiative, which aims to scale agritech services through public-private partnerships. It elaborates on the role of agritech in shaping the agriculture ecosystem across four broad categories: intelligent crop planning, smart farming, farmgate-to-fork, and data as an enabler.
The power of applying agritech services in agriculture was illustrated by the Saagu Baagu pilot project, which the Forum conducted with the government of Telangana in southern India. Four agritech services were introduced to 7,000 chilli farmers, whose absolute profits climbed by 18%. The project is now being scaled up to support 500,000 farmers planting 5 crops in 10 districts.
Here’s a deeper look at each of the four categories:
In this context, AI helps create a ‘crop plan’ that considers forecasts for the changing climate and customers’ nutritional needs. It can also correct minor errors in real time, stopping them from magnifying into a bigger challenge months later during the harvest.
Soil testing at the early stages of crop planning is also imperative, the report notes, and AI-based models mean tests that used to take a few weeks now happen in real time. Farmers can then act immediately if they choose to. They can also benefit from the gene editing of seeds using predictive AI tools, which achieves higher yields while using similar resources – the ultimate goal in the future of agriculture.
Category two: Smart farming
Farmers must juggle multiple unknowns every week, from weather to wildlife to price volatility. Smart farming uses technologies to help remove some uncertainty from farmers’ weekly load by focusing on precision. The report explains how soil stress, efficiency of operations and detecting and avoiding risks early on are part of this new approach to farm management.
AI and augmented reality (AR) for crop management, advice on crops, pests, plant diseases and nutrients are also some of the key methods in smart farming that are already making an impact on the ground, the report details.Agerpoint, which creates 3D models of crops and trees, uses thousands of laser beams pointed at a plant simultaneously to create a digital twin of the plant, so farmers extract knowledge from the sensors rather than the live plant.
Robotics is another game changer for smart farming. Being able to programme a robot to sow and remove weeds automatically across many acres of fields – some tools cankill 300,000 weeds per hour – saves farmers considerable time, stress and physical strain, for example.
Leveraging technologies – on the ground and in space – to give farmers and seed companies greater visibility vastly improves efficiency and quality.Image: World Economic Forum
Being able to track every second of inventories’ movements in warehouses enabled by the Internet of Things (IoT) is an effective way of reducing this risk. Such transparency is especially relevant in our hyperconnected world wherea quarter of all food produced for human consumption is internationally traded. IoT also means maintenance can be undertaken before any error occurs, keeping national and global supply chains on track.
The value of smart packaging prevents food-borne diseases and tracks food’s quality and its environment through chemical or biosensors, the report notes. These include temperature, pathogens, freshness, and leaks of hundreds of millions of products brought to market by farmers every day worldwide. Such safeguards mean farmers can capture quick returns and competitive prices while customers get the high-quality food they need.
Category four: Data as an enabler
Data is a key ingredient to making AI effective. Knowing how the soil quality, temperature and rainfall have affected a farm over the years immediately gives AI-based tools a springboard to create accurate forecasts and climate-resistant seeds for farmers, for example.
Farmers can also use data to craft their own unique identity, the report says. Improving digital public infrastructure (DPI) can be especially crucial for enabling agritech services in emerging economies. It provides an understanding of “who I am” (identity), “where I am” (georeferenced farm location) and “what I am growing” (crops sown and the area under cultivation). Combined, these three points mean a farmer can position themself as a distinct enterprise – building their reputation, elevating farm operations and strengthening profitability.
Using data to create climate-smart agriculture – such as information on the effect of weather patterns in particular locations – also helps farmers adapt to longer-term scenarios while supporting crops today. A similar level of reassurance is seen in reducing farmers’ vulnerability to supply or price shocks. The report outlines three key datasets that can help: data on the area under cultivation, sowing time and the possible harvest time, and the quantity of the harvest.
Learning how to harness the value of data from farming methods can help strengthen farmers’ crops in coming years.Image: agristack.gov.in/WEF
Building AI-inclusive farms
The rollout of new technologies since the 1970s has created more inequality, Gupta says, notably the digital divide where at least a third of the world’s population is still not online. AI is “not something that just us AI entrepreneurs should be talking about. It is something that the entire society, even the big corporates, should be talking about,” says Gupta.
Currently, only a quarter of farmers in the US, one of the world’s leading agricultural exporters, use an internet-connected device to access data relating to farming, the report points out. Plus, 30% of farmers cited unclear return on investment (RoI) as one of the top three reasons for not adopting agritech.
This suggests the level of education on the value of agritech must improve, especially in emerging economies. The 62% of European farmers adopting technology is in stark contrast to the 9% of farmers in Asia, especially when Asia’s population is three times larger than any other continent worldwide, with4.7 billion people.
Gender discrimination is also very prominent, finds the report. Women account for 43% of the agriculture workforce globally, yet they have little influence in decision-making. Women’s limited access to smartphones is part of the problem, as the majority of agritech services are delivered via mobile phones. Currently, women are 7% less likely than men to own a mobile phone, which translates into130 million fewer women having a phone than men – equivalent to twice the size of the UK’s entire population.
The Forum’s report stresses that female farmers must not be “left behind in the sector’s transformation journey”. This call to action is aligned with the UN Sustainable Development Goals (SDGs), which includesgender equality worldwide by 2030.
A farmer carries rice saplings in her field on the outskirts of the western Indian city of Ahmedabad, India, February 1, 2023.Image: REUTERS/Amit Dave
Agritech – the future of farming
As one of the world’s most ancient practices, farming has undergone many changes. But today’s digital paradigm shift – stretching from farmers’ fields to kitchens across the globe – is among the greatest overhauls in its12,000 year history.
It will not happen automatically, as the Forum’s new report points out: agricultural stakeholders need widespread support, especially as the effects of the climate crisis escalate. Policymakers, the private sector, digital experts, manufacturers, academia and many others must unite to make agritech second nature throughout the farming world. Technologies can make farm operations safer, quicker and wealthier and give customers more reliably supplied, priced and quality food – including 900 million people who face chronic food insecurity.
Gupta revolutionized his personal narrative around food security, from rationed milk as a child to using AI in a quest to uplift millions of farming communities and billions of lives, all by 2030. Now, says the Forum, it is time for agricultural organizations – private and public, small and large – to come together and embrace agritech and strengthen food security by treading a similarly ambitious path.
The construction industry is at a crossroads, and it urgently needs to shift towards more sustainable practices. As one of the largest consumers of global resources and a significant contributor to environmental degradation, the industry faces an imperative to evolve.
This change is driven by an increasing awareness of environmental issues and stringent regulatory demands and shifting consumer expectations, which are steering the sector toward sustainability.
The Urgency of Sustainable Construction
Global Environmental Impact
The construction sector plays a pivotal role in the stewardship of our planet’s resources and health. It is responsible for nearly 40% of global carbon emissions and a similar proportion of energy usage.
The extraction, processing, and use of building materials substantially strain natural resources, leading to significant ecological footprints. As urbanization continues to rise, so does the impact of construction, making it crucial for the industry to adopt more sustainable and less harmful practices.
Regulatory and Consumer Pressure
Governments worldwide are tightening regulations to curb the environmental impact of construction by setting carbon reduction targets and stricter compliance standards.
In the US, the construction industry is responsible for significant pollution. According to a study conducted by Willmot Dixon, construction companies cause nearly a quarter of air pollution, 40% of drinking water pollution, and half of all landfill waste.
Concurrently, a more informed consumer base is demanding greener, more sustainable buildings.
These twin pressures are compelling the construction industry to innovate and transform, aligning their practices with sustainability principles to remain viable and competitive in a rapidly changing world.
The Benefits of Sustainable Construction
Environmental Benefits
Embracing sustainable construction methods significantly reduces the carbon footprint associated with building projects. From using energy-efficient materials to adopting renewable energy sources, the industry can diminish its direct environmental impacts.
Moreover, sustainable construction practices promote the conservation of scarce natural resources and aim to reduce waste generation through recycling and reuse, further mitigating the ecological impacts of construction activities.
Economic Benefits
Sustainability is not only environmentally advantageous but also economically beneficial. Buildings designed and built with sustainability in mind typically incur lower energy costs, reducing long-term operational expenses.
These buildings often attract higher property values and retain their marketability over time. Additionally, adherence to environmental regulations through sustainable practices can lead to eligibility for government incentives and help avoid costly fines and legal issues related to non-compliance.
Social Benefits
Sustainable buildings contribute significantly to the health and productivity of their occupants. Features like improved indoor air quality, natural lighting, and better acoustic environments are crucial in enhancing occupant well-being.
Furthermore, companies that invest in sustainable building practices tend to see improved community relations and can better achieve their Corporate Social Responsibility (CSR) goals due to their reduced environmental impact and commitment to societal well-being.
Technological Innovations Driving Sustainability
Building Information Modeling (BIM)
BIM technology plays a pivotal role in the sustainability of construction projects. By creating digital representations of physical and functional characteristics of places, BIM allows for more accurate planning and efficient resource management, reducing the likelihood of waste and enabling more sustainable decision-making throughout construction.
Green Building Certifications
Certifications like LEED and BREEAM are instrumental in promoting sustainability standards. These programs provide frameworks that help architects, developers, and builders implement sustainable building practices and verify that a project meets high standards of environmental responsibility and energy efficiency.
Smart Technologies
The deployment of AI and IoT technologies is transforming the construction industry by optimizing resource use and improving building operations.
These technologies enable real-time monitoring and control of energy consumption and enhance water usage efficiency. This seeks to improve overall building maintenance, leading to more intelligent, more sustainable buildings.
Challenges to Sustainable Construction
The perception that sustainable construction is prohibitively expensive persists, primarily due to the higher upfront costs associated with green materials and technologies.
However, these costs are typically offset by the significant energy, water, and maintenance savings over the building’s lifecycle.
Skill Gaps and Training Needs
There remains a critical need for skilled professionals trained in sustainable construction practices.
Educational programs and certifications in green building techniques are essential to equip the current and future workforce with the necessary skills to drive the industry’s transition to sustainability.
Regulatory Hurdles
The construction industry often faces challenges with the variability and rapid evolution of regulations about sustainability.
Staying compliant requires constant vigilance and adaptability, which can significantly burden firms.
Why Sustainability Pays Off
Sustainable buildings are generally cheaper to operate. As mentioned above, using less energy and water and requiring less maintenance than traditional buildings.
Adhering to sustainability practices helps firms comply with regulations and reduce the risk of fines and legal issues. It also mitigates the risk associated with resource scarcity and future-proof buildings against changes in environmental policies.
As demand for green buildings grows among consumers and investors, firms that demonstrate a commitment to sustainability can enhance their market position and enjoy a competitive edge.
Looking Beyond
The construction industry’s shift towards sustainability is not just a trend but a fundamental change in how buildings are designed, constructed, and operated.
Stakeholders across the industry are called to recognize this shift’s importance and invest in sustainable practices that will shape the future of construction.
This article underscores the imperative for sustainable practices in the construction industry, highlighting the challenges and immense benefits of these practices. It serves as a call to action for all industry stakeholders to commit to sustainability for the betterment of our environment and future generations.
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