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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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Doing Business with the World - The new role of corporate leadership in global development

Geneva, September 2007

World Business Council for

Sustainable Development

  • The global view
  • Snapshots of recent growth
the global view
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.

snapshots of recent growth
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


1World Trade Organization. 2005 Press Release. ”Developing countries’ goods trade share surges to 50-year peak.”

2World Bank. 2007. Global Economic Prospects. 2007


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

what are the key challenges 1
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"
overall trade restrictiveness index
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.

  • What are the opportunities?
  • Key messages
what are the opportunities
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
key messages
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