>> hi, everyone, i am francine lacqua and welcome to the bloomberg global business forum. i'm here at the plaza hotel in midtown manhattan to bring you some of the events, headlined by president biden, and bloomberg

founder michael bloomberg. that's where we will start. mr. bloomberg: none of the challenges we face can be sold by governments alone. all of them require cooperation not only across borders but governments and businesses. the more the two groups work together, the better position we will be to seize opportunities to save lives and improve people's lives. pres. biden: is the perfect time to go big, the economy is booming them a the fed just announced a lower interest rate, which should give is this more confidence to invest trillions of dollars in the industries of the future. i'm doing my part to invest more and do more. francine: the goal of the global business forum is to bring together leaders from government and business to assess risks and opportunities impacting global markets. at the top of that list is ai. here is erik schatzker.

>> we live in an extraordinary time in history, a generational time. the upsides are extraordinary. the economic upside estimates have it at 17 to $25 trillion of academic upside -- economic upside per year by 2030. education, health care, climate change. there is the opportunity to massively push the frontier of science. google has 2 million scientists working on something called alpha fold and they think it will help them accelerate drug discovery. then there are security issues. we need to collectively ensure we have the base and foundation so it's safe in execution. around everything that ranges from information to job transition to how we use energy efficiently for the planet. when i think about the way we approach this, everywhere we go,

in my mind i have a simple triangle. in speaking to heads of state around the globe, they want to make sure they are capturing upside. as one said, it's a legacy opportunity for economic growth and delivering benefits to everyone in this country. that starts with infrastructure, the subsidy cables -- the subsea cables that link everybody up. you have to be connected to access the information and tools that ensure everyone everywhere around the planet has the same quality of information and access to markets that everyone in this room has. one of the things is we are serving people around the globe. 246 leg which is. -- languages. what is profound, we added 110 like we did in the last six months alone, which means 500 million people on the planet cannot access information in their own language. that's the second part of the tribal.

the third part is making sure people have the skills to thrive in the changing world and ensuring we are doing the right kind of training and skilling globally. delivering on the try goal maximizes upside and helps with some of the issues you asked about on the downside. erik: what do you hope to see in terms of ai policies on the next president, whoever that happens to be, and the next congress? ruth: i think important when, let's take stock of what's been done. i think at the core of the approach from the white house, from the president and his team, has been a recognition about the strategic imperative to the economic and social benefit upside. it's about maximizing upside and mitigating downside. bringing together experts from the public and private sector to work together has been key. point number two, they take a risk based approach, recognizing ai is applied to many things in our daily life and the opportunity is wide. it's not one-size-fits-all. think about the risks inherent in ai in any area.

they required the industry to do a number of things to mitigate against the downside around transparency and things to prevent abuse of it. the other thing is encouraging bipartisan solutions. i would also say if i could broaden it out right now in the senate there is a bipartisan approach around an framework that senator schumer and others have proposed. how do we invest and work on the downside? i hope we continue to work on this and it continues to be bipartisan because of the critical issue. erik: if the west is going to win the contest in artificial intelligence against a centrally planned economy, that is china, the public and private sectors, to your point, have to work together collaboratively as partners. how would you rate the effectiveness of that partnership today? ruth: early days and i think very strong. let me explain why. i think you are right this is a

strategic imperative. the good news is the u.s. today, the west today is in a leadership position, but is not a foregone conclusion. we have very formidable competitors leveling. there are number of different levels it is operating. u.s. government, the white house has pushed forward things like a partnership for global infrastructure and make sure not only are we investing in the u.s. working with countries around the globe in a way where we can bring infrastructure, solutions. we just announced, who will did, i cable from kenya to south africa to australia to build resilience that is needed. back to the try go, you have the infrastructure that you need to access world markets. global info structure is really important and public in parfitt -- and private partnerships are important. there is another element that we are seeing at the state and federal level, to lead from the front.

i talked about this 17 to $25 trillion economic upside opportunity. that only happens if we see what economist called diffusion, it is in every industry and we are seeing a lot of effort around that. francine: coming up, tracking progress and improving lives. >> this fiscal space we create together with the world bank becomes a transformational force. ♪ this is how we do it ♪ [laughter]

>> michael is someone who brings people together. he doesn't just reach across the table, he builds consensus. and he doesn't get bogged down

by the scale or scope of problems. he focuses on finding and implementing solutions. mike's superpoeis bringing people together from different sectors and different fields to solve some of the world's biggest problems. here's what the global business form is all about, and is often the case in convening's like this, business and leadership is the reason we are here. francine: this is the bloomberg global news form. the heads of the imf and world bank took to the stage with the bloomberg board of directors chair mark carney to discuss the importance of cooperation for their partnerships. >> an open ended question, what changes are underway that you think we'll have some of the biggest impacts going forward with respect to the world bank? >> the fact these two institutions can work in a way they were designed to work years

ago. that doesn't mean you should not change what is changed in the environment. the idea of creating a macro focused institution with a develop and focused institution and find a way to make two plus three equal five is important. that doesn't show up for everybody. but for those who work with us it does. that's one big piece. the second big piece is to expand -- mark, i give you the plumbing of the institution right now as compared to the big picture. expand the vision of the institution from which we look at problems being only about poverty to also including the challenges where we call it livable challenge, pandemic, food insecurity, and thinking you can segregate these into little buckets is a luxury but don't have. that leads to the need to move quicker. we turned down the time for a

project to be approved from nine months. -- to nine months from 12. how we work with others. all of that combined with leveraging our balance sheet in a different way is what we are up to. so you can take this plumbing and put big things onto it and have the ambition to drive. but you can't do that if the basics aren't working the way a better bank should. mark: speed, scale, simplicity and sisterhood, which is collaboration. many amazing things in the first term but one of the things that struck me is you, with partners obviously, but you termed debt money into action with resilience and sustainability trust at a time when he was a central. i wonder if you could draw that out a bit more in terms of the overall impact of some of the

things the imf is doing, including in collaboration with the world bank. >> let me say that what we are experience and today is remarkable. we have lived through unprecedented shocks. pandemic, war in europe, crisis of energy and food prices, inflation, interest rates. and yet you look at the world economy. this year it will grow 3.2%, next year we expect 3.2%. it did not collapse. the question is why? what made it so resilient? it is putting in place some foundation of good harnesses and strong institutions. we at the imf have been a big part of it writing this story of resilience.

you look into the future and you see there will be more shocks. climate change being one of the causes of these shocks. inevitably at the front we are asking the question what can we do? we integrate climate vulnerability in our analysis. we look at green growth opportunities for our members. we are a financial institution, people look at us and say, you think climate is important, put your money where your mouth is. this is how we created the resilience and sustainability trust. it is a fabulous story of creativity. during this period of shocks, we have injected $1 trillion in liquidity in reserves to help the economy overcome these shocks.

650 billion from special rights that don't add to debt. this is part of our collection -- collective action, we give to everybody. but some members are very strong and they don't need an injection of reserves. as you said, for them this is a sleeping beauty. we woke it up. we got about 100 billion back. that we can lend on concessional terms and do so and partnership with the world bank very closely. here is what we do. we from the imf, we create fiscal space for our vulnerable members. we don't tell them how to use the money. we say here it is, you can address this enter of climate

change. then comes the world bank with a powerful program of investments. this fiscal space we create together with the world bank becomes a transformational force. ♪ this is how we do it ♪ [laughter] [applause] mark: the imf hands off this baby in macro and micro coordination to the world bank and what do you do with that fiscal capacity if countries choose to pursue it? ajay: one example of that, in fact the first example of working on this together is the imf getting electricity to the african continent. 600 million people in africa

don't have any electricity. when you fly over the continent at night and you see dark areas, it's not because there aren't people, is because they are living the way their forefathers did. i think in the 21st century that's a relatively shameful situation to be in. i think electricity is a basic human right. health, education. medicines being kept cold. everything we take for granted depends on electricity. they don't have it out all. i'm not talking about brownouts, i'm talking zero. what we are doing with the african develop and bank and some other partners is raise 600 million with renewable energy. mark: can we stop and reflect on that a second? 300 million people with electricity by 2030. ajay: 117 billion connected in

the previous decade. it will need work. you take that, it will need money from the private sector but then it needs money from the governments to reform utilities, to connect them to the grid, to install the right basic technologies to enable this to happen. where are they going to get the money from when they are putting more money to debt repayment than health and education together? that's where she steps in. we can talk with the government of a country, say you need to talk to these guys and if she has a program with them she can say i know you are working really hard on connecting people to renewable energy. go ahead and do that work, i know you need fiscal headroom, here is money for that. francine: coming up, putting investment to work. >> how do we navigate? it's trial and error but you

can't do it without the public and private sector working closely together. ♪

francine: this is the bloomberg global business forum. as governments set ambitious climate targets, private sector participants are crucial to bridge the funding gap and unlock solutions. that's part of the discussion. >> indonesia is one of the countries part of the energy transition.

how has this collaboration worked between the public sector and the private sector? >> we are quite successful to set up this plan. soon we will announce to have 60 to gigawatt of renewable energy like hydropower, wind, fuller panels for the next 30 years. there is a complex issue here, it's not only to build the renewable energy but the infrastructure. beside that, we should discuss carefully with our neighbors. if we export green energy, we need also the green energy for our own database. the economy is moving so well today. transparency and less corruption

in indonesia. the cooperation in the private sector is important. i don't think the government of indonesia can do it alone. jennifer: i see you nodding, are there still barriers to supporting countries like indonesia and others? >> we need solutions that of the default choice for rational actors to drive up economic standards and living develop it -- and development. wind and solar are pretty much the cheapest form of new build energy. we need solutions. things like coal, they are low-cost energy, so we have to figure out is it hydrogen, nuclear, long-term storage with batteries? we've cracked the code on passenger vehicles, we need to do local shipping and aviation, etc. in doing that is very high risk. we've now discovered if we work

with in db, they are this issue and to do high risk and high return targeting investing. the work we've been doing with the private sector has been a game changer i think in helping the mdb money with mobilizing and catalyzing private-sector money. jennifer: howdy navigate some of those? >> to get the capital available into the right place where it can be used to pay today for all of the renewable power and place 20 years from now to replace the coal-fired power plants is enormously complicated. but it's happening in many different ways. with developments in markets that are beginning to think about framework to support that kind of activity, it's happening with key initiatives.

for example, in singapore. it will help in mumbai, the first tranche. how do we navigate? a lot of trial and error but it can't work without the public and private sector working closely together. jennifer: i want you to jump in, they are also models similar to what your team are doing with altera, a $30 billion fund trying to do just that. channel funding to where it needs to be. how is that progressing for you and your team? >> i think what's more important is we've got the best and brightest minds in the finance world thinking about how to invest in the global south. we crated two new funds. we have more to come with blackrock focused on the global south. our fund has $5 billion committed to the global south and they are trying to figure

out how to address the challenges in the developing world. cop 28 was one of the most successful ones we've had and we were able to mobilize more than $80 billion. we traveled around the world trying to figure out what are the challenges preventing investment particularly to the global south in climate. what we saw time and again is we understood what the barriers were we understood what the challenges were, but we weren't just -- nobody was taking that step to move forward. we thought about what kind of solutions we could create, we knew we had concessional capital. we know we have the private sector, how could we bridge those things? that's how we came up with altera, with the idea that we could be a leader, we could bring the private sector along with us, work with others to mobilize capital, and together i think we are doing that. jennifer: what is the next goal? we have cop between on coming up soon, people are referring it as

the finance cop. >> 29 will be critical, cop 28 was about action. what we did was for the first time, instead of talking about engaging the private sector, we brought in the private sector and said what are you going to do? that was a key shift. as a negotiator in climate for many years, i was in paris, i felt we were talking a lot about mobilizing private, but we weren't talking with them. the leaders of energy weren't in the meetings. we wouldn't have ministers of finance talking about mobilizing finis. -- finance. now as we go to cop 29 we need to deliver on that finance fees. -- finance piece. that's why i know we will do a fantastic job that we

collectively have to help them to deliver an outcome. that means we need to see the developed world stepping up and showing leadership and we need to see how we mobilize the private sector, how we all come together to mobilize capital. we don't need to invent new things, the solutions are there. jennifer: what is the ask for you when you go to cop 29? do you continue to ask for more accelerated capital to be channeled into your market? >> it cannot be one side or one country, it has to be a collaboration amongst nations to save the planet. if you can do that together, i am confident we can do it. francine: that's what happened at the bloomberg global business form here at the plaza hotel in new york. you can see more of the conversations and stories at bloomberg.com. i am francine lacqua. thank you. ♪

david: this is my kitchen table and also my filing system. over much of the past three decades i've been an investor. the highest calling of mankind i've often thought was private equity. and then i started interviewing. i watched your