aster.cloud aster.cloud
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
    • Learning
  • Tools
  • About
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
    • Learning
  • Tools
  • About
aster.cloud aster.cloud
  • /
  • Platforms
    • Public Cloud
    • On-Premise
    • Hybrid Cloud
    • Data
  • Architecture
    • Design
    • Solutions
    • Enterprise
  • Engineering
    • Automation
    • Software Engineering
    • Project Management
    • DevOps
  • Programming
    • Learning
  • Tools
  • About
  • Technology
  • Work & Jobs

How Trade Can Power Economic Revitalization For Growth, Jobs And Nature

  • aster.cloud
  • January 25, 2024
  • 4 minute read

Trade powers productivity.

  • After the slump and surge of the pandemic, we must again harness trade’s capacity to support growth, employment and sustainable development.
  • Since the 1990s, trade has been a critical engine of prosperity; retooled for the future, trade can serve society and revitalize the global economy.
  • Among the 6 priorities that should guide us is the need to recognize the value of the world trading system and reaffirm a need for multilateralism.

Trade powers productivity. It is an engine of innovation, driving knowledge spill-over and technology upgrading. It can encourage improved governance and institutional reform. ‘Slowbalization’ has held back trade since the mid-2000s. After the slump and surge of the COVID-19 pandemic, we must again harness trade’s capacity to support growth, employment and sustainable development.


Partner with aster.cloud
for your next big idea.
Let us know here.



From our partners:

CITI.IO :: Business. Institutions. Society. Global Political Economy.
CYBERPOGO.COM :: For the Arts, Sciences, and Technology.
DADAHACKS.COM :: Parenting For The Rest Of Us.
ZEDISTA.COM :: Entertainment. Sports. Culture. Escape.
TAKUMAKU.COM :: For The Hearth And Home.
ASTER.CLOUD :: From The Cloud And Beyond.
LIWAIWAI.COM :: Intelligence, Inside and Outside.
GLOBALCLOUDPLATFORMS.COM :: For The World's Computing Needs.
FIREGULAMAN.COM :: For The Fire In The Belly Of The Coder.
ASTERCASTER.COM :: Supra Astra. Beyond The Stars.
BARTDAY.COM :: Prosperity For Everyone.

The alternative, trade deterioration, risks current prosperity. The World Trade Organization (WTO) and others have calculated that the direct cost to global output from trade fragmentation and technological decoupling could reach 8-12% in most-affected economies. US-China trade skirmishes have already led to significant trade diversion and income losses. A more uncertain environment depresses economic growth by reducing consumer confidence and spending, and removing firms’ reasons to invest.

The lower prices and consumer choice that come with trade help low and middle-income consumers. Trade is estimated to have reduced household consumption costs in advanced economies by two-thirds for low-income households, compared to one-quarter for high-income households. Deglobalization has potentially serious inflationary consequences.

Nonetheless, one lesson from the pandemic we must not ignore is the need for greater substitutability in inputs and increased diversification through trade. We must take “re-globalization” to heart.

Read More  How To Make Hybrid Meetings More Inclusive

Trade barriers and trade gains

Today, emerging markets play a far larger role in world trade than two decades ago. Trade in services has also seen healthy growth. Trade costs in services have traditionally been far higher than for goods, but thanks to technology are dropping more quickly. Still, the Organisation for Economic Co-operation and Development (OECD) reports average services trade barriers of over 170% in tariff equivalents in emerging markets and 80% in advanced economies. Services trade barriers are becoming ever more significant given structural shifts towards growing expenditure on services relative to goods.

Trade-war tariff increases aside, traditional tariff barriers to goods have become relatively minor direct impediments to trade, outside of some significant exceptions, particularly in agriculture and developing economies. However, the administrative burden of trade procedures and processes remains high – together with shipping and logistics costs, 50% higher in emerging markets compared to advanced economies.

Climate change and technological development are altering competitive advantage and with it the political economy of trade. Trade needs to support the imperative of climate change action yet at the same time resist unhelpful protectionism. As new policies are introduced, governments need to assess their cross-border impact and cooperate to keep trade open. Trade policies are currently biased against the environment through higher tariffs and other barriers on cleaner industries.

6 trade priorities

As we approach the 13th Ministerial Conference of the WTO, six priorities should guide us:

First, we need to recognize the value of the world trading system and reaffirm the need for multilateralism. This multilateralism must be pragmatic – enabling willing WTO members to move ahead in open plurilaterals and creating space for broader and deeper regional trade agreements – without dismantling the inclusive approach of broad non-discrimination.

Read More  Data To Watch In 2024, From Digital Jobs To Climate Change And Health

Second, we need to find an equitable way through the industrial transformation needed to decarbonize the global economy and resulting from 4IR technology. The economic transition must be collaborative.

Third, we need to ease the day-to-day conduct of cross-border trade, services and investment, particularly through the deployment of technology.

Fourth, given the explosion in e-commerce and digital trade, we need to build trust through transparency and effective regulation.

Fifth, social and environmental outcomes must become a more acute priority in global value chains, with regulations, incentives and corporate behaviour aligned to ensure better results for workers, communities and nature.

Sixth, a larger role for developing nations, accelerated by foreign investment and domestic reform, will not only empower more of humanity but strengthen global resilience through diversity.

Meetings and initiatives

The World Economic Forum’s Annual Meeting in Davos provides an opportunity for trade ministers, business, unions and other stakeholders to agree on how to concretely advance these priorities. In preparation, trade, investment and geopolitics dialogues have helped executives and policymakers share insights and increase joint understanding of today’s realities. Cross-industry research is highlighting the value at risk from fragmentation. In the digital trade space, regional work is helping stakeholders improve policy design to improve the trade-offs between policy interventions and resulting costs.

The Global Alliance for Trade Facilitation has now delivered over 20 public-private trade reform projects in developing countries, with initial savings exceeding $65 million. Over 1,000 local micro-, small and medium-sized enterprises have been involved with over $10 million direct business contributions. Similar practical reform initiatives are progressing across investment and services facilitation in several African, South Asian and Latin American economies, including for digital foreign direct investment.

Read More  PwC And SAP Launch New Innovation Strategy To Help Organizations Achieve Their ESG And Net-Zero Targets

Overwhelmingly, effective solutions depend on the deployment of new technology. The TradeTech initiative is catalysing collaboration across the entrepreneurial, investor and supply chain technology ecosystem to accelerate the emergence of scalable trade innovations.

Trade, labour and Indigenous communities are proposing legislative and business model changes to better serve workers in global supply chains and to improve access to the benefits of trade for Indigenous Peoples and disadvantaged communities. The Coalition of Trade Ministers for Climate, launched last year in Davos, promises to help countries put in place green trade policies, spur green investment and responsible circular trade.

There can be no recovery without a trade recovery. Trade tensions threaten growth. Over the last 30 years, trade has been a critical engine of prosperity. Retooled for the future, trade can serve society and revitalize the global economy.

This article was published as part of the World Economic Forum Annual Meeting 2024 discussions.

By: Børge Brende (President, World Economic Forum)
Originally published at: World Economic Forum


For enquiries, product placements, sponsorships, and collaborations, connect with us at [email protected]. We'd love to hear from you!

Our humans need coffee too! Your support is highly appreciated, thank you!

aster.cloud

Related Topics
  • Davos Agenda
  • Economy
  • Investment
  • Sustainable Development
  • Trade
You May Also Like
View Post
  • Computing
  • Multi-Cloud
  • Technology

Reliance on US tech providers is making IT leaders skittish

  • May 28, 2025
View Post
  • Computing
  • Multi-Cloud
  • Technology

Examine the 4 types of edge computing, with examples

  • May 28, 2025
View Post
  • Computing
  • Multi-Cloud
  • Technology

AI and private cloud: 2 lessons from Dell Tech World 2025

  • May 28, 2025
View Post
  • Computing
  • Multi-Cloud
  • Technology

TD Synnex named as UK distributor for Cohesity

  • May 28, 2025
View Post
  • Computing
  • Multi-Cloud
  • Technology

Broadcom’s ‘harsh’ VMware contracts are costing customers up to 1,500% more

  • May 28, 2025
View Post
  • Computing
  • Multi-Cloud
  • Technology

Weigh these 6 enterprise advantages of storage as a service

  • May 28, 2025
View Post
  • Computing
  • Multi-Cloud
  • Technology

Pulsant targets partner diversity with new IaaS solution

  • May 23, 2025
View Post
  • Computing
  • Multi-Cloud
  • Technology

Growing AI workloads are causing hybrid cloud headaches

  • May 23, 2025

Stay Connected!
LATEST
  • 1
    The Summer Adventures : Hiking and Nature Walks Essentials
    • June 2, 2025
  • 2
    Just make it scale: An Aurora DSQL story
    • May 29, 2025
  • 3
    Reliance on US tech providers is making IT leaders skittish
    • May 28, 2025
  • Examine the 4 types of edge computing, with examples
    • May 28, 2025
  • AI and private cloud: 2 lessons from Dell Tech World 2025
    • May 28, 2025
  • 6
    TD Synnex named as UK distributor for Cohesity
    • May 28, 2025
  • Weigh these 6 enterprise advantages of storage as a service
    • May 28, 2025
  • 8
    Broadcom’s ‘harsh’ VMware contracts are costing customers up to 1,500% more
    • May 28, 2025
  • 9
    Pulsant targets partner diversity with new IaaS solution
    • May 23, 2025
  • 10
    Growing AI workloads are causing hybrid cloud headaches
    • May 23, 2025
about
Hello World!

We are aster.cloud. We’re created by programmers for programmers.

Our site aims to provide guides, programming tips, reviews, and interesting materials for tech people and those who want to learn in general.

We would like to hear from you.

If you have any feedback, enquiries, or sponsorship request, kindly reach out to us at:

[email protected]
Most Popular
  • Understand how Windows Server 2025 PAYG licensing works
    • May 20, 2025
  • By the numbers: How upskilling fills the IT skills gap
    • May 21, 2025
  • 3
    Cloud adoption isn’t all it’s cut out to be as enterprises report growing dissatisfaction
    • May 15, 2025
  • 4
    Hybrid cloud is complicated – Red Hat’s new AI assistant wants to solve that
    • May 20, 2025
  • 5
    Google is getting serious on cloud sovereignty
    • May 22, 2025
  • /
  • Technology
  • Tools
  • About
  • Contact Us

Input your search keywords and press Enter.