Highlights of Verona Forum: building a bridge between East and West
In the conditions of geopolitical turbulence, a huge gap has again emerged between the peoples of the East and the West – as it was many centuries ago. This is one of the key features of our modern world, and the Verona Eurasian Economic Forum – held on November 3rd-4th in Uzbekistan – actually aimed to establish a bridge and build a constructive dialogue. The event, which traditionally gathers politicians, experts, diplomats, heads of major companies and journalists from the West and the East, was hosted by Italian Verona for 14 years in a row – even at the height of the COVID-19 pandemic. However, the geopolitical realities forced its organisers to change the traditional venue: last year, the forum was held for the first time in the Azerbaijani capital of Baku, and Samarkand has been chosen for the 2023 event. This oldest city of Uzbekistan has been the Silk Road’s centre and a link between Europe and Asia for centuries.
The President of Uzbekistan, Shavkat Mirziyoyev, sent greetings to the forum participants, “I am convinced that the forum will propose new mechanisms of trade, economic, financial, investment and technological partnership, as well as recommendations and measures to strengthen co-operation in the field of industry, the introduction of advanced developments in smart agriculture and transport logistics.”
The event – held under the Economy of Trust and Business Diplomacy from the Atlantic to the Pacific motto – was aimed to create favourable conditions for establishing contacts between business representatives, financial institutions, political and public figures from about forty countries. The forum was organised by the Italian non-profit Conoscere Eurasia Association, with the assistance of the Ministry of Investment, Industry and Trade of the Republic of Uzbekistan.
During the official opening ceremony, Professor Antonio Fallico, the President of Conoscere Eurasia Association, noted that our planet is going through a contradictory and difficult period of transformation at present, “Whether we like it or not, we are in the midst of an epochal transition to a new global, economic and political governance: we are experiencing a confusing, contradictory and still long but inevitable transition to a pluralistic and multipolar world. In this regard, the business world must be aware of and be prepared not only for passive adaptation, but also for forecasting, and possibly for active participation in the development of the new economy during and after the maturation of this process.”
Mr. Fallico recalled that, a year ago, the Verona Forum was hosted by Azerbaijani Baku, “It seems like an eternity has passed since then; so many events have dizzyingly followed one after another, disorienting our memory. Even then we were seriously concerned, trying to understand where the world and the economy were heading. The situation has not become clearer by now. I would mention, without going into detail, the recent tragedy in the Middle East, which – although being of low-intensity for over seventy years – nevertheless seems to have taken almost everyone by surprise. Perhaps we can say that only the predictability of unpredictability has increased.”
At the same time, according to Mr. Fallico, it is necessary to understand in the short term in which direction the economy is moving. “Scenarios for the world economy development are regularly developed by governments and international institutions. Being optimistic and pessimistic, they promise everything and nothing – be it the continuation of globalisation in other forms or the regionalisation and fragmentation of economies and trade. Unfortunately, life does not give us much time to wait. Entrepreneurs should already decide on what to do and how to navigate in this dynamic and chaotic world. I personally believe that, in the near future, international markets will be characterised mainly by the regionalisation of the economy and the fragmentation of trade, with which residual globalisation is likely to go hand in hand,” he said.
In turn, the Deputy Prime Minister of Russia, Aleksei Overchuk, noted the symbolism of the event in Uzbekistan, “Europe and Russia have become even further apart over the past year. In one year, we have managed to turn our economy to the East. Nevertheless, we are open to co-operation and hope that there is still some common sense in Europe.”
Mr. Overchuk added that the whole year since the previous forum has been marked by ‘sanctions from hell’, which aimed to destroy the Russian economy, “In the conditions of sanctions, our economy has learned not just to survive and live, but to develop. The truth is that sanctions have become a powerful impetus for the development of the Russian economy. Last year, when sanctions began to be imposed, we were predicted that the economic decline would exceed 20 percent. However, our economy has adapted quickly, and the GDP decrease by the end of the year stood at 2.1 percent. In the first nine months of 2023, Russia's GDP grew by 2.8 percent, and the quality of that growth – not at the expense of energy carriers and hydrocarbons – is important.”
The Deputy Prime Minister also stressed that Western sanctions aimed to stop the economy of Belarus as well, but the 2023 figures are demonstrating growth. “We are especially pleased – and I would like to note this – that not only our economy is growing: this is also true for the countries that maintain allied relations with Russia. In Belarus, which is also under sanctions, the decline in the economy last year (despite the fact that the economy should have stopped completely there in ‘theory’) was only 4.7 percent. Its economy has entered the stage of steady growth in 2023. Within the Eurasian Economic Union, we fully provide ourselves with food and energy security, stimulate the development of technologies. 90 percent of trade in goods is conducted in national currencies. We have all the necessary natural resources for further development," Mr. Overchuk said.
Speaking via video link, Romano Prodi, the former President of the European Commission and former Prime Minister of Italy, stressed that the European Union itself is actually to blame for the curtailment of its ties with Russia and China. “We had relations, we had bridges with China and Russia, but that's all in the past. The situation has changed dramatically. When Europe was together with Russia and China, that was the formula for the future necessary for Europe itself… I mostly blame us, Europeans, for what is happening,” he said, adding that Europe should realise that its potential is to be used in the name of unification, not separation.
On the first day of the forum, discussions were held on new mechanisms of trade, investment and technological co-operation, prospects for the development of raw materials and energy markets in modern conditions, reorganisation of logistics and transport routes given the changing global realities, markets for financial and banking services in a changing global context, ensuring the development of the agricultural sector and world food security. In addition, a special session – Oasis of Co-operation in Centre of Eurasia: Role of Uzbekistan in Development of International Economic Relations – was organised.
