Fostering Global Development against Geopolitical Headwinds

The global economy is undergoing a profound transformation under the influence of geopolitical tensions, technological advances and the evolution of supply chains.

Victor Fung was emphatic in highlighting how the tensions between the United States and China have accelerated the diversification of global value chains, thereby creating opportunities for emerging markets, such as Viet Nam, Mexico and India, to attract foreign direct investment and move up the value chain. Medium-sized enterprises were recognized as critical for navigating decentralized production systems and promoting sustainable trade practices. However, challenges persisted, involving rising protectionism, supply-side constraints and disruptions to traditional trade flows.

Noeleen Heyzer argued in response that while climate change remains a serious threat, it also opens up the door to innovation through renewable energy, green technologies and sustainable business practices. She advocated prioritizing environmental, social and governance (ESG) principles to ensure inclusive and resilient economic development.

Rakesh Mohan followed by highlighting India's economic progress, driven by digital infrastructure such as the India Stack, which emphasizes the importance of labor-intensive manufacturing and its progress towards digital inclusiveness, but also stated that this all needs to promote industrial growth, private investment, and workforce participation.

Regarding the implications of global capital flows and geopolitics, Heiwai Tang remarked that a rise in interest rates in developed economies could shift investment to emerging markets as well, creating vulnerabilities for countries that depended on foreign funding. Regional financial centers, such as Hong Kong, were contented as crucial in facilitating trade finance and supporting the globalization of medium-sized enterprises.

The panelists therefore concurred that regional cooperation and multilateralism had to be developed to address the fragmentation of global governance, and that emerging markets played a central role in shaping the future of globalization. While geopolitical tensions and economic disruptions posed risks, they also created avenues for transformation through regional integration, technological innovation and sustainability-driven policies. By capitalizing on these opportunities, emerging markets can lead the way in creating a more inclusive and equitable global economy.

Keynote speech by Michael Spence, Advisory Board Chairman, Asia Global Institute

The evolving role of philanthropy and capital from various sectors can be leveraged for greater impact, given the changing landscape of philanthropy in tackling systemic global challenges such as climate change and inequality.

Michael Spence opened by highlighting the transformation of philanthropy, which increasingly blends traditional giving with modern approaches such as ESG investments and impact initiatives. He emphasized that social norms and cultural values play a critical role in shaping philanthropy’s effectiveness, citing examples ranging from Renaissance patrons to contemporary cultural events like the Met Gala.

Hakan Bulgurlu underscored the vital role of businesses in combating climate change by embedding sustainability into their operations and prioritizing innovation for energy efficiency. Sharing Beko’s achievement of a 50% reduction in carbon emissions over the past decade, Bulgurlu warned of the severe risks posed by climate inaction, including mass displacement and disruptions to global systems. He also advocated for the establishment of global regulations to enforce sustainable practices uniformly.

Jun Ma discussed the catalytic potential of green finance in mobilizing private sector capital for sustainability. He outlined four essential pillars for building a functional green financial system: clear taxonomies to prevent greenwashing, robust disclosure standards, diverse financial instruments, and incentives such as subsidies or guarantees to ensure project viability. Ma highlighted China’s leadership in green finance and stressed the importance of international collaboration to create standardized frameworks for climate initiatives.

Lok Yim provided insights from the banking sector, noting the transformative impact of private wealth on philanthropy, particularly as younger, value-driven generations increasingly align their investments with social causes. He emphasized banks’ growing role in guiding clients toward impactful philanthropy, encouraging them to start small and refine their strategies over time. However, he acknowledged the challenge of balancing clients’ desire for discretion with the need to inspire broader participation and amplify impact.

The panel collectively highlighted the urgent need for action and collaboration across sectors, emphasizing philanthropy’s evolving capacity to address critical global issues through innovative and sustainable approaches.