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Trade

Trade. Doing Business with the World - The new role of corporate leadership in global development. Geneva, September 2007. World Business Council for. Sustainable Development. Overview. The global view Snapshots of recent growth. The global view. Over three consecutive years of

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Trade

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  1. Trade Doing Business with the World - The new role of corporate leadership in global development Geneva, September 2007 World Business Council for Sustainable Development

  2. Overview • The global view • Snapshots of recent growth

  3. The global view Over three consecutive years of broad-based global economic growth The growth rate of output in developingeconomies (6.9%) was double that of developedeconomies (3.0%).1 Yet 44 developing countries did not reachgrowth rates above 3% in GDP per capita.1 Source: World Bank. 2007. Global Economic Prospects. http://siteresources.worldbank.org/INTGEP2007/Resources/GEP_07_Overview.pdf

  4. Snapshots of recent growth Diverging trends in commodity prices3 The developing country share in world merchandise exports reached 31% in 2004, its highest since 1950.4 Real merchandise trade growth by region, 20041(Annual percentage change) Oilprices continue to rise2 Sources: 1World Trade Organization. 2005 Press Release. ”Developing countries’ goods trade share surges to 50-year peak.” 2World Bank. 2007. Global Economic Prospects. 2007 3Ibid.

  5. Needs & Challenges • Societal needs • What are the key challenges? • Overall trade restrictiveness index

  6. Societal needs • Increasedcapacity and infrastructure to producegoods • Reduction of tradebarriers • Increasedtrade facilitation • Better transport networks • Access to shipping ports What are the needs? What are the barriers to trade? Source: World Bank/IFC. Doing Business in 2006.

  7. What are the key challenges?1 • At the national level • Domestic demand and subsistence needs limit capacity • Lack of production capacity and outmoded facilities • Infrastructure constraints • Ineffective government policies and poor regulatory frameworks • Tariff-related challenges • Restrictive trade tariffs • Agricultural trade distortions • Stalled talks of the "Doha Development Round"

  8. Overall trade restrictiveness index Changes in OECD OTRI between 2002 and 2005: as tariffsfall, non-tariffpoliciesbecome more important High-income countries’ OTRI, overall and toward low income countries, 2005 Source for graphs: The International Bank for Reconstruction and Development and The World Bank. 2006. Global Monitoring Report 2006.

  9. Opportunities • What are the opportunities? • Key messages

  10. What are the opportunities? • Increasetrade facilitation1 • Customs modernization • Trade-related infrastructure • Inland transit • Logistic services • Information systems • Ports efficiency • Provide expertise and technologytransfer to producers in developing countries • Engage with the Aid-for-Trade program • Support Doha Round of Trade talks

  11. Key messages For business, investing in improvedhealthsystemscan: • Increase trading opportunities • Diversifycompetitive sources of supply • Raiseawarenessamonggovernments and inter-governmentalorganizations of the need to improvetrade facilitation • For governments, an effective policyframework for improvedhealthcan: • Create a fully integrated global trade regime • Stimulate all forms of economicactivityrelated to the export and import of goods and services • Improvecompetitiveness by reducing transaction time and costs

  12. www.wbcsd.org/web/development.htm

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