#30 Economics | H.H.Al Sayyid Dr. Adham bin Turki Al Said | dome_podcast

The episode begins with a discussion on how people often end up in careers different from their field of study, and how visions are communicated dryly. Inflation is explained as rising costs of goods over time, and the conversation touches on infrastructural comparisons between countries and public understanding of national visions.

Host welcomes guest Dr. Adam Bin Turkey, an economist, to the podcast for an episode focused on economics. They start with the importance of a nation's vision, specifically Oman's Vision 2040, and discuss how such visions are determined and implemented.

Dr. Adam explains to the listeners that economics might seem non-vital to students, but it's crucial to understand how it affects decisions at many levels. Economics is laid out as a decision-making science, stressing how our choices, whether individual or collective, are central to economics.

The conversation delves into the historical progression of Oman and other nations' economic planning, noting past reliance on short-term plans. These plans were aimed at wealth creation through various economy types like agriculture and industrialization, emphasizing capital value at earlier times.

Moving to modern economic thinking, Dr. Adam highlights how countries use visions to plan long-term, citing development plans since the 70s in Oman. These plans were initially short-term but have evolved, emphasizing a necessity for strategies like Vision 2040 to steer national growth purposefully.

Vision 2020's objectives were reducing hydrocarbon dependence and boosting private sector dynamism. Oman aligned its plans with the vision, but reliance on government spending showed unsustainability. The upcoming 2040 vision targets this, requiring evaluations and adaptations for shifting dynamics.

Dr. Adam and Hatim explore how visions adapt to changes, stressing vision flexibility over rigidity. Oman’s Vision 2040 priorities reflect consensus, aiming to place Oman among advanced economies. Elements include governance, environment, private sector involvement, and fostering a knowledge-based economy.

The conversation covers the public's understanding of national visions. Though individuals focus on personal economic situations, visions can seem abstract without clear communication. People tend to connect visions to tangible improvements, like income and living standards, which can be misunderstood.

Discussion shifts to economics as more than theories, involving numbers and key indicators like GDP, inflation, and unemployment rates. GDP is analogous to groceries where quantity and price matter to overall spending; similarly, economies gauge success through growing domestic production, adjusted for inflation effects.

Inflation is further explained as a measure beyond transient price changes (e.g., tomatoes) and seeks consistent average basket price increases indicating true inflationary trends over time. Supply-demand imbalances, impacted by global crises like COVID-19, deeply affect inflation and general living costs.

Response to inflation involves shifts in consumer spending priorities, with potential impacts on lower-income households most reliant on essentials. The dialogue elaborates on subsidies' role in Oman to manage inflation impact on standards of living, pondering accountability and public finance strategies.

Unemployment, public finance, and debt management are explored, with unemployment defined in terms of active job seeking. Discussions pivot to budgeting in public finance, contrasting spending against income, from local challenges up to managing national debt in an international financial ecosystem.

The latter part of the discussion describes Oman's debt profile, managing deficits through loans, bonds, or reserve drawdowns. There's emphasis on sustainable borrowing amid fluctuating revenue streams, primarily hydrocarbon-related, ensuring long-term fiscal stability amidst complex global economic ties.