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The World Region

Exploring the nexus between trade policy and disaster response

Selina Jackson's picture
 Nugroho Nurdikiawan Sunjoyo/World Bank

Strong trade connectivity can help disaster response and recovery by ensuring that humanitarian relief goods and services get to where they are needed when disaster strikes.  Trade policy measures, however, can sometimes have adverse effects.  Research led by the World Bank highlights that a common complaint of the humanitarian community is that customs procedures can delay disaster response, leaving life-saving goods stuck at borders.  Other measures such as standards conformity procedures, certification processes for medicines, and work permits for humanitarian professionals can slow the delivery of needed relief items.  Border closures can exacerbate situations already marked by human tragedy and unlock   full-scale economic crises. 
This nexus between trade policy and humanitarian response was discussed at an event organized jointly by the International Federation of the Red Cross and Red Crescent Societies (IFRC), the World Bank Group and World Trade Organization at the 5th Global Review of Aid for Trade on June 30 in Geneva.  Among the steps suggested to address concerns were rigorous disaster planning; better coordination between humanitarian actors, implementation of the WTO's Trade Facilitation Agreement and better recognition of the role of services.  

Making Trade More Inclusive

Anabel Gonzalez's picture

Also available in: Français

Photo Credit: Arne Hoel, World Bank Group

This week, I will be joining a panel of women in trade at the World Trade Organization’s Public Forum in Geneva, Switzerland. Along with Lilianne Ploumen, Trade Minister from the Netherlands; Yuejiao Zhang of China’s International Trade and Economic Arbitration Commission; former United States Trade Representative Susan Schwab; and Amina Mohamed, Kenya’s Cabinet Secretary for Foreign Affairs; we will be discussing how to make trade work more inclusively. For me, the focus will be how to make trade work more inclusively for the poor living in developing countries.

Thoughts on competition policy from Anabel Gonzalez, Senior Director of the WBG Trade and Competitiveness Global Practice

Julia Oliver's picture

Anabel Gonzalez, Senior Director of the the World Bank Group's Trade and Competitiveness Global Practice, has published a new blog post on competition policy, "From Tirole to the WBG Twin Goals: Scaling up competition policies to reduce poverty and boost shared prosperity." The piece addresses the links between competition policies, economic growth, and household welfare. It also explains how the Global Practice is scaling up support to governments on effective competition policies.

Read more here.

Ensuring the poor benefit from global trade

Anabel Gonzalez's picture

A woman brings onions to market in Mali. Photo - Irina Mosel / ODI via Flickr Creative CommonsThis week the World Bank Group, the largest multilateral provider of aid for trade, is participating in the World Trade Organization’s 5th Aid for Trade Global Review. Every two years, the Global Review brings together participants in global trade from all over the world, including trade ministers, the heads of international development institutions, the private sector and civil society. We will be focused on the role of trade in helping achieve the Bank Group’s Twin Goals: ending poverty and boosting shared prosperity.

The role of trade in ending poverty is the subject of a new WTO-World Bank Group publication being launched on 30 June, the first day of the Review.  The report argues that to achieve the end of poverty by 2030, more needs to be done to connect the nearly one billion people who remain in extreme poverty to trade opportunities. On 30 June the report will be available online, along with further details about the agenda it sets out for maximizing the gains of trade for the poorest.

A critical part of this effort, and the theme of this year’s Aid for Trade meeting, is the importance of reducing the costs of trade. The Bank Group is publishing new analysis at the review, using a database we have developed with UNESCAP, which illustrates how the costs of getting goods to overseas markets are significantly higher for developing countries. For example, low income countries face costs that are on average three times higher than for advanced economies. Landlocked countries and small islands also face particularly high trade costs. The reasons vary, but include poor road networks, weak logistics, inadequate port facilities, antiquated customs procedures, corruption at border crossings, and outdated legal and regulatory structures. Lowering these trade costs makes firms in developing countries more competitive, allowing them to benefit more from trade opportunities. Implementing the Trade Facilitation Agreement will help, and will be an important focus for us at the Review, but the greatest impact will be achieved by comprehensive strategies to tackle these wide-ranging sources of trade costs.

Picture Trade: How we can visualize intra-regional trade in South Asia and beyond

Siddhesh Kaushik's picture
Intra-regional trade constitutes less than 5 percent of total trade in South Asia, according to World Bank analysis. Economic cooperation remains low, despite the Agreement on a South Asian Free Trade Area (SAFTA). The region’s low level of intra-regional trade is a puzzling phenomenon, and it’s left many interested folks asking questions.

Which regions trade more amongst themselves? What are the top products being exported or imported? Who are the top exporting and importing countries in a particular region?

Here is a visual representation of regional trade in South Asia in WITS that can help quickly unpack some of these questions as they relate to the region. 
South Asia, Export by Region
(Click on + sign on left to view country breakdown)

After the jump, we break down these numbers and show how you can explore the viz. 

Closing thoughts on the "Harnessing Digital Trade for Competitiveness and Development" conference

Rosanna Chan's picture

Fiber optic light bokeh. Source - x_tineDigital entrepreneurs have the potential to connect to global markets like never before. Whether selling physical goods on internet platforms, or providing digital goods and services that can be downloaded and streamed, an entirely new ecosystem of innovative micro and small businesses has emerged in the developing world.
The World Bank Group hosted some of the pioneers in this space for a full-day conference on Harnessing Digital Trade for Competitiveness and Development on May 19. Here, we heard entrepreneurial success stories—an online platform for jewelry in Kenya, a provider of software solutions in Nepal, an online platform for livestock trade in Serbia—and dove into the constraints and challenges of running a digital business in an emerging economy.
The scope of these challenges made these success stories, and the broader potential they represent, even more inspiring. From internet connectivity to logistics, from financial payments to trade regulations, from bankruptcy laws to entrepreneurial and consumer digital literacy-- clearly, more needs to be done to fully harness the potential of digital trade for competitiveness and development and to foster an enabling environment to digital trade.

The role of standards in adding value in global value chains

Anabel Gonzalez's picture

Ando International, a Vietnamese garment firm with 900 workers in Ho Chi Minh City, has improved a lot in labour standards since joining Better Work Vietnam. Source - ILO/Aaron SantosConsumers around the world increasingly demand products and services that are simultaneously good for the economy, for the environment, and for society—the triple bottom line of sustainable growth. This rising demand is creating new pathways for businesses and governments to drive change for global good.
Global value chains represent one of the key ways the World Bank Group approaches these new opportunities. By better understanding GVCs, low-income countries can become participants in increasingly fragmented international production processes. GVCs thus offer tremendous potential to better connect the poor to the global economy and its benefits—more and better jobs, higher wages, improved labor conditions, and lower environmental impact.
That’s why we have been developing a new approach that brings the best of the Bank Group together to help low income countries connect to and upgrade within GVCs. Helping firms in developing countries meet the standards of global buyers and lead firms is a part of this effort, because in today’s sophisticated and highly mobile economy, meeting global standards is no longer optional—it’s a necessary condition for being competitive.

Why are more countries embracing industrial zones? [VIDEO]

Douglas Zhihua Zeng 曾智华's picture
Also available in: 中文

A shipyard crane. Source - Matthew SullivanIn the late 1950s, a group of businessmen and politicians on the outskirts of a small town in western Ireland realized their local airport was in jeopardy of losing its international flights. Knowing how important transit passengers and the airlines were to their economy, a proposal for a special industrial area near the airport was submitted and approved, marking the inception of the world’s first modern free trade zone in Shannon, Ireland. Today, the concept has gone global with an estimated 4,300 various types of zones worldwide. 

All across the world, we have seen countries exploring and seizing the potential of these industrial zones—often also called industrial parks or special economic zones. In East Asia, you can point to the experiences of China, Singapore, Malaysia, the Republic of Korea and Vietnam. In Central America, we have those of the Dominican Republic, Costa Rica, and Honduras. In the Middle East and North Africa, the United Arab Emirates and Jordan have also created zones. In Sub-Sahara Africa, Mauritius first set up an export processing zone all the way back in the 1970s, and today, countries across the region continue to experiment with modern industrial zone regimes.

The concept of the industrial zone is gaining more acceptance globally. The appeal lies in these zones’ ability to catalyze economic development and structural transformation.

为何越来越多的国家“拥抱”工业园区? [VIDEO]

Miles McKenna's picture
Also available in: English

A shipyard crane. Source - Matthew Sullivan在20世纪50年代末,一群在爱尔兰西部一个小城镇郊区的商人和官员们意识到当地机场正面临着失去国际航班的危机。他们深知中转旅客和航空公司对于当地经济的重要性,于是批准了一份在机场附近建立特殊工业区的提案–世界上最早的现代自由贸易区就这样在爱尔兰的香农地区(Shannon)成立了。今天,这一概念已走向世界,据国际劳工组织估计,全球有4300多个不同类型的产业园区。笔者估计实际数目还要高。

South-South investment: development opportunities and policy agenda

Anabel Gonzalez's picture
Worker in a factory in India. Photo - Ray Witlin / World Bank.The growing phenomenon of investment by developing country firms in other developing countries – sometimes referred to as ‘South-South investment’– offers significant development opportunities for the World Bank Group’s client countries. Obtaining a detailed picture of South-South investment flows and stocks is difficult because in many countries data on foreign direct investment (FDI) are inaccurate and insufficiently disaggregated. Still, the overall trend is fairly clear:
  • South-South FDI is seeing important growth. According to OECD stocktaking, the share of South-South FDI in total world FDI has grown from some 3% at the beginning of the century to around 14% in 2009. See the OECD’s Development Co-operation Report 2014
  • South-South FDI has stayed strong even as global FDI has been volatile. Despite a fall in FDI from OECD countries by 57% below 2007 levels in 2012, FDI from developing countries rose by 19 percent, according to the OECD’s Development Co-operation Report 2014.
  • South-South mergers can lead to economic upgrading. In 2013, over two-thirds of gross cross-border mergers and acquisitions by Southern multinational enterprises (MNEs) targeted partners in developing and transition countries, and half of these involved foreign affiliates of MNEs from developed countries passing their assets on to MNEs from developing countries, according to UNCTAD’s World Investment Report 2014.