francine: 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 today's events, headlined by the u.s. president joe biden and bloomberg founder michael bloomberg. that's where we will start. mr. bloomberg: none of the big challenges that we face can be solved by governments alone. all of them require cooperation not only across borders but also between governments and businesses. and the more the two groups work together, the better positioned we will be to seize opportunities to save lives and improve people's lives. pres. biden: it is the perfect time to go big, the economy is booming, the fed just announced a lower interest rate, which should give business more confidence to invest trillions of dollars in the industries of the future. i'm doing my part and i'm calling on companies with the capital in the room to 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 bloomberg's eric schatzker with google's ruth porat. ruth: we do live in an extraordinary time in history, a generational time. i think the upsides are extraordinary. we will start with that. there are four to think about. the economic upside, estimates have it at $17 trillion to $25 trillion of economic upside by 2030 per year. there are social issues that can be addressed with ai, around health care, education, climate change. there is the opportunity to massively push the frontier of science. for example, google deep mind. open source. something called alpha full. 2 million scientists working on something called alpha fold and they think it will help them accelerate drug discovery. and there is security issues. to maximize the upside, we need to collectively ensure we have the base, the 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. and so when i think about the way we approach this, everywhere we go, in my mind i have a simple heuristic. a triangle. what is fascinating to me is, in speaking to heads of state around the globe, they want to make sure they are capturing this upside. as one said, this is a legacy opportunity for economic growth and delivering benefits to everyone in his country. and that starts with infrastructure, deep technical infrastructure, the subsea cables that link everybody up. but then, it very much goes to you have to be connected to access the information and tools that ensure that everyone everywhere around the planet has the same quality of information and access to markets that everyone in this room has. and one of the things is we are now serving people around the globe in 246 languages. but what is really profound and goes to this notion that ai is moving really quickly, we added 110 languages in the last six

months alone, which means 500 million people on the planet can now access information in their own language. that's the second part of the triangle. the third part of the triangle is ensuring people have the skills to thrive in this changing world and ensuring we are doing the right kind of training and skilling globally. delivering on that triangle maximizes the upside. it helps with some of the issues you asked about on the downside. erik: what do you hope to see in terms of ai policies from the next president, whoever that happens to be, and the next congress? ruth: i think very importantly, let's take stock of what's been done. because i think at the core of the approach from the white house, from the president and his team, it's been a recognition about the strategic imperative to the economic upside and social benefit upside. it's about maximizing upside and mitigating downside. and bringing together experts from the private sector and public sector to work together has been key. point number one. point number two, they have taken a risk-based approach, which is the recognition ai is applied to many different things in our daily life and the

opportunity is wide. and so there is not one-size-fits-all. think about the risks inherent in the application of ai in any area. and then they've required the industry to do a number of things to actually mitigate against the downside around transparency, around redtape, teaming, things to prevent abuse of it. the other thing is encouraging bipartisan solutions. so i would also say, if i could broaden it out, right now in the senate there is a bipartisan approach around an ai framework that senator schumer and others have proposed. and again, it looks at all elements of how do we invest to be competitive? how do we prevent working on the downside? so i would hope it is a continuation of this and it continues to be bipartisan because it is such a critical issue. erik: if the west is going to win the contest in artificial intelligence against a centrally planned economy -- that would be china, of course -- 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. and let me explain why. i think you are absolutely right that 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 globally. and so i would say there are a number of different levels on which it is operating. the u.s. government, the white house has pushed forward things like the partnership for global infrastructure to make sure that not only are we investing in the u.s., but we are working with countries around the globe in a way where we can bring infrastructure, solutions. we just announced, as an example, google did, a cable from kenya down to south africa over to australia to help build resilience that is needed. to my prior point about the triangle, you have the infrastructure that you need to access world markets. areas like partnership for global infrastructure is really important and public and private

partnerships are important. but there is another critical element that is true for everyone at the room and we are seeing at the state and federal state level in the states. it is important to lead from the front. i talked about this $17 trillion to $25 trillion economic upside opportunity. that only happens if we see what economists call diffusion. it is being used in every industry and we are already seeing a lot of effort around that. francine: that was google's ruth porat talking with bloomberg's eric schatzker. coming up, tracking progress and improving lives. kristalina: so this fiscal space we create together with the world bank becomes a transformational force. ♪ this is how we do it ♪ [laughter] mark: this is how we do it, baby. there we go. [applause] ♪

jane: 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 superpower is bringing people together from different sectors and different fields to solve some of the world's biggest problems. here's what the global business forum is all about, and as is often the case in convenings like this, his vision and leadership is the reason we are here. francine: this is the bloomberg global business forum. i'm francine lacqua. the event is supported by bloomberg philanthropies with the imf and the world bank. the heads of those organizations also took to the stage with the bloomberg board of directors chair mark carney to discuss the importance of cooperation for their partnerships. mark: an open-ended question. what changes are underway that you think will have some of the

biggest impacts going forward with respect to the world bank? ajay: the fact that these two institutions can actually work in a way they were designed to work 80 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 development focused institution and find a way for them to make two plus three equal five is important. and while that doesn't show up every day to everybody in a system, for those who work with us, it does. i think that is one big piece. the second big piece is to expand. mark, i'm giving you the plumbing of the institution right now as compared to the big picture. it is to expand the vision of the institution from which we look at problems from being only about poverty to also including the challenge, the intertwined challenges, where we call it livable challenge, pandemic, food insecurity, and thinking you can segregate these into little buckets is a luxury we don't have.

and that leads to the need for us to work quicker. we have turned down the time from getting from a project being discussed to being approved from 19 months to 16 and to 12. simplicity inside the organization. break the silos down for our clients. how we work with other. -- 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 then you can put big things onto it and have the ambition to drive. but you can't do that if the basics of the bank aren't working the way a better bank should work. mark: okay, so speed, scale, simplicity and sisterhood. ajay: it kind of gets tough. mark: 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 turned debt money, sdr's, into action with

the resilience and sustainability trust at a time when it was absolutely essential. and 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. kristalina: let me say that what we are experiencing today is really 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. and the question is, why? what made it so resilient? and it is putting in place some foundation of good policies and strong institutions.

and we at the imf have been a big part of it, writing this story of resilience. now, you look into the future and you see that there will be more exogenous shocks. climate change being one of the causes of these shocks. so, 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 money where your mouth is. and 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 drawing rights. they do not add to that. this is our collective power in action. we gave it to everybody. but some of our members are very strong. they don't need that injection of reserves. and, as you said, for them this is a sleeping beauty. we woke it up. so, we got about $100 billion back that we can lend at concessional terms, and do so in partnership with the world bank very closely. so, 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 danger of climate change. and then comes the world bank with a powerful program of investments. so, this fiscal space that we create together with the world bank becomes a transformational force. ♪ this is how we do it ♪ [laughter] mark: this is how we do it, baby. there we go. [applause] there we go. she and the imf hands off this baby in macro/micro coordination to the world bank, and what do you do with that fiscal capacity if countries choose to pursue it? ajay: mark, one example of that, in fact the first example of working on this together is the

idea of getting electricity to africa and the world. if you think about the african continent, 600 million people in africa do not have any electricity. so when you fly over the continent at night and you see dark areas, it's not because there aren't people. it 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. and one that if you think of electricity as a basic human right, health, education. the elevator works, things work, refrigerators. medicines being kept cold. safety with streetlights. everything we take for granted depends upon electricity. and they don't have it at all. i'm not talking about intermittent brownouts, i'm talking about zero. what we have committed to do with the african development bank and other partners is raise $600 million for renewable energy by 2030. it will take a lot of work. mark: can we stop and reflect on that for a second? 300 million people with

electricity by 2030. it is remarkable. ajay: 117 million people connected to electricity in the prior decade. this is that multiplied by three in six years. it will need work. the fact is you take that, it will need money from the private sector but then it needs money from the governments to reform the utilities, to connect them to the grid, to install the 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 they are to health and education together? that's where she steps in. we can go to the government of a country, talk about doing this with them, in an energy compact. go to this leader and say, you need to talk to these guys. 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. that is the way we are working this together. francine: coming up, putting

private investment to work. bill: how do we navigate? it is a lot of trial and error, but it can't work without public and private sector working very closely together. ♪

francine: this is the bloomberg global business forum. i'm francine lacqua. now as governments set ambitious climate targets, private sector participants of course are crucial to bridge the funding gap and unlock solutions. and that's part of the

discussion led by bloomberg's jennifer zabasajja. jennifer: indonesia is one of the first countries part of this just energy transition partnership agreement. minister, how has this collaboration worked between the public sector and the private sector? minister pandjaitan: we are quite successful to set up this plan. so soon, we will announce to have 62 gigawatt of renewable energy like hydropower, wind, solar panel, tidal for the next 30 years. we have to have our own grid. that is another issue. so there is a complex issue here, it's not only to build the renewable energy, but the infrastructure of this. and beside that, we should also discuss carefully with our neighbors. because if you export the green

energy for their own database, we also need the green energy for our own database. because the economy is moving so well today because of efficiency, transparency and less corruption in indonesia. so the collaboration of the private sector is very, very important. i don't think the government of indonesia can do it alone. jennifer: shemara, i see you are nodding there. are there still barriers to supporting countries like indonesia and others? shemara: we need solutions that can be the default choice of rational actors who can thread the needle to drive up uplifting living standards and economic development with climate solutions. in energy, we have cracked the code on wind and solar, and they are pretty much the cheapest form of new build energy, but they are intermittent. so, we need firming solutions. things like coal, they are low-cost energy, so we have to figure out is it hydrogen, going to be nuclear, long-duration storage with batteries? and the same in transport where

we have cracked the code on passenger vehicles. we need to do long hauling shipping, aviation, and so on. in doing that there is very high risk going into new things. we've now discovered if we work with the mdb's, they are this -- they are actually quite positioned in high return targeting investing. the work we've been doing with the private sector investment lab has been a game changer i think in helping the mdb money work with mobilizing and catalyzing private-sector money. jennifer: bill, how do you navigate some of those complications shemara was just outlining there? bill: to get the capital available into the right place in a way that can be used to pay today for all of this renewable power that will be in place 20 years from now to replace the coal-fired power plants is enormously complicated. but it's happening. it's happening in many different ways. it's happening with developments

in the carbon markets. that are beginning to think about framework to support that kind of activity. it's happening with key initiatives. for example, from the singaporeans. who said we will help structure of those credits in mumbai, the first tranche. relatively small amount of money, but very high symbolic and the crowding in effect. how do we navigate? it is a lot of trial and error, but it can't work without the public and private sector working closely together. jennifer: majid, i want you to jump in here. because there are also models similar to what you and your team are doing with alterra. 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? majid: what i think is 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 created two new funds. with tpg and brookfield. and we have more to come with blackrock focused on the global south. our catalytic fund has $5

billion committed to the global south. and they are committing their best talent to figure out how to address the challenges in investing in the developing world. last year, cop 28 was one of the most successful cops we've had. we were able to mobilize more than $80 billion at cop. and 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 were just taking that -- nobody was taking that step to move forward. we thought about what kind of solutions we could create. we knew we had concessional capital already there. we know we have the private sector. and how could we bridge those two things? that's how we came up with alterra, with this idea that we could be a leader, we could bring the private sector along with us, work with others to try

to mobilize capital. and today, i think we really are doing that. jennifer: what is the next goal? we have cop 29 coming up very soon. many people are referring to it as the finance cop. what is that next goal for you? majid: cop29 will be critical. cop28 was about action. right? and i think what we did really successfully that was different was, for the first time, instead of talking about engaging the private sector, we brought the private sector to the table and said, what are you going to do? and that was a key shift. as a negotiator who has been in climate for many years, i was in paris. i felt we were talking a lot about mobilizing the private sector, but we weren't talking to them. we would go to energy conversations and it wouldn't be the leaders of energy in those meetings. we would go to finance conversations and we would not have ministers of finance having conversation about how to mobilize finance. that changed at cop28. and now as we go to cop29, we really need to deliver on that

finance piece. and that is why our azerbaijani colleagues i know are going to do a fantastic job, but 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 behind the solutions that we know are out there. we don't need to invent new things. the solutions are there. we just need to invest in them. jennifer: minister, from your perspective what is the ask for you when you go to cop29? i mean, do you continue to ask for more accelerated capital to be channeled into your market? minister pandjaitan: it cannot be one side. it cannot be one country. it has to be a collaboration among nations in order to save the planet. if you can do this together, i am pretty confident we can do it. francine: that's what happened at the bloomberg global business forum 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. ♪

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>> ♪ somewhere over the rainbow ♪ >> "the wizard of oz", a classic