1 1 trade world business council for sustainable development geneva, september 2007 doing business...
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11
Trade
World Business Council for
Sustainable Development Geneva, September 2007
Doing Business with the World - The new role of corporate leadership in global development
The global view
Snapshots of recent growth
Overview
33
The global view
Over three consecutive years of broad-based global economic growth
Yet 44 developing countries did not reach growth rates above 3% in GDP per capita.1
The growth rate of output in developing economies (6.9%) was double
that of developed economies (3.0%).1
Source: World Bank. 2007. Global Economic Prospects. http://siteresources.worldbank.org/INTGEP2007/Resources/GEP_07_Overview.pdf
44
Snapshots of recent growth
Real merchandise trade growth by region, 20041
(Annual percentage change)
The developing country share in world merchandise exports reached 31% in 2004,
its highest since 1950.4
Sources: 1World Trade Organization. 2005 Press Release. ”Developing countries’ goods trade share surges to 50-year peak.”2World Bank. 2007. Global Economic Prospects. 20073Ibid.
Diverging trends in commodity prices3
Oil prices continue to rise2
Societal needs
What are the key challenges?
Overall trade restrictiveness index
Needs & Challenges
66
Societal needs
Source: World Bank/IFC. Doing Business in 2006.
What are the barriers to trade?
Increased capacity and infrastructure to produce goods
Reduction of trade barriers Increased trade facilitation
Better transport networksAccess to shipping ports
What are the needs?
77
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 challengesRestrictive trade tariffsAgricultural trade distortions
Stalled talks of the "Doha Development Round"
88
Overall trade restrictiveness index
Source for graphs: The International Bank for Reconstruction and Development and The World Bank. 2006. Global Monitoring Report 2006.
High-income countries’ OTRI, overall and toward low income countries, 2005
Changes in OECD OTRI between 2002 and 2005: as tariffs fall, non-tariff policies
become more important
What are the opportunities?
Key messages
Opportunities
1010
What are the opportunities?
Increase trade facilitation1
Customs modernizationTrade-related infrastructure Inland transitLogistic services Information systemsPorts efficiency Provide expertise and technology transfer to
producers in developing countries Engage with the Aid-for-Trade program Support Doha Round of Trade talks
1111
Key messages
For business, investing in improved health systems can:
Increase trading opportunities
Diversify competitive sources of supply
Raise awareness among governments and inter-governmental organizations of the need to improve trade facilitation
For governments, an effective policy framework for improved health can:
Create a fully integrated global trade regime
Stimulate all forms of economic activity related to the export and import of goods and services
Improve competitiveness by reducing transaction time and costs
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www.wbcsd.org/web/development.htm
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