The well-known economist and UN Advocate for Sustainable Development Goals, Jeffrey D. Sachs, who participated in AKEL's Economic Forum 2025, expressed his concern about the multiple global crises that distract attention from the real and urgent problems of the planet, such as climate change and social inequality.
In his keynote speech entitled 'From Global Challenges to National-Level Strategy for Sustainable and Socially Just Development', Sachs also emphasised that wars are a key source of destabilisation and delay addressing critical issues.
Sachs pointed out that Cyprus, due to its historical position, has always been at the crossroads of history and continues to pay the price of the conflicts in the region. As he stated, “Your island remains divided, a beautiful island, there is still not a political solution, and that has very significant economic costs.” In addition, Cyprus is close to two wars: the war in Ukraine and the conflict in Israel and Gaza.
In his criticism of European leadership, Sachs said that European leaders insist on continuing the wars while neglecting the diplomatic path: “They want you to waste 5% of GDP on war expenditures, which is insane, when this war would end diplomatically, if Ukraine were to be neutral, and if NATO was to stop its eastward expansion, and if the war mongers stopped their dreaming of an escalating war with Russia.”
Sachs assessed that there is also a risk, amidst geopolitical crises, of escalation even at the nuclear level.
Regarding the crisis in Gaza, Sachs expressed his deep regret. This situation, he stressed, is a disaster for the entire Eastern Mediterranean, while the management by the US, according to him, "offers no solution."
Sachs linked the war events to the climate crisis, repeatedly underlining that wars distract from addressing long-term social and environmental challenges. As he explained, “the Eastern Mediterranean is extraordinarily vulnerable to human-induced environmental changes… there is a real possibility of sea level rise of many meters due to the collapse of Antarctica.” At the same time, he said that the exploitation of natural gas in the region is completely short-term and inefficient: “The last thing the region needs is to pursue more fossil fuels. The region needs to turn to renewable energy sources, like the whole world.”
Cyprus is a bridge
Regarding Cyprus in particular, Sachs stressed that the island has the potential to act as a “bridge” to the Eastern Mediterranean, boosting business development, tourism and energy, and urged active cooperation between the countries of the region. At the same time, he stressed the need for the reunification of Cyprus and for exploiting its strategic location for peace and sustainable development.
Sachs concluded that the global strategy must focus on social justice and environmental sustainability: “We must first stop the wars in Ukraine and Gaza, help reunify Cyprus, and then encourage active cooperation between the countries of the region on the really important issues.” His speech emphasized that armed conflicts divert resources and attention from the transition to a green economy, social cohesion and long-term prosperity.
In a clear speech, Jeffrey Sachs reminded the audience that Cyprus, at the crossroads of culture and history, can play a catalytic role in transforming the region into a model of sustainable development, provided that peace and cooperation are brought back to the center of strategic decisions. The emphasis on the real challenges of society and nature, according to Sachs, is the most essential condition for a fair and sustainable economy.
(Source: InBusinessNews)
