How to build a more resilient and inclusive global system

LGBTI 2019

(Levi Saunders, Unsplash)

This article is brought to you thanks to the collaboration of The European Sting with the World Economic Forum.

Author: Børge Brende, President, World Economic Forum


Geo-economic developments are illustrating the power of global partnerships but also the constraints of current systems. As Japan begins its presidency of the G20 for the first time this year, there is an opportunity for the international community to reaffirm its commitment to a cooperative approach toward economic growth and to update our trade system so that it is more resilient and responsive to new technology.

For Japan, 2018 marked a productive period in terms of strengthening global commerce: the European Union and Japan signed the Economic Partnership Agreement this past summer and the eleven-nation Comprehensive and Progressive Agreement for Trans-Pacific Partnership entered into force at the end of last year. Combined, these deals are expected to add a total of 750,000 new jobs and ¥13 trillion annually to the Japanese economy.

Indeed, these projections are in line with the broad benefits we have seen from globalization over the past quarter century. Since 1990, global GDP has doubled in real terms and the proportion of the population living in extreme poverty has dropped from 36 percent to 10 percent, according to the World Bank. A key driver behind this has been trade.

But in October 2018, the International Monetary Fund cut its global economic forecast for 2018-2019—the first downgrade since July 2016—citing strained trade ties, among other factors. Then, in January, the IMF further downgraded its projections, once again pointing to trade tensions as a reason. What this confirms is that there are fragilities in our system, and that trade wars taking place among large economies are more of a problem than an answer.

Achieving strong, sustained growth—both at the national and global levels—can only happen through cooperative, win-win policies. Protectionist measures, while responding to discontent with the current state of the global economic system, ultimately harm not only the broader economy, but the very citizens they purport to benefit. Because modern supply chains span borders, punitive duties that are meant to help domestic companies often end up only increasing the cost of doing business.

Yet, the overall importance of trade does not mean we should follow business as usual. While globalization has brought poverty eradication at a historic level, we have seen inequality within many countries increase. What is needed is to rethink globalization so that there is more equity and more solidarity. A more inclusive system will be more sustainable and resilient, fuelling continued growth that can prepare us to weather the next economic downturn.

 

At the same time, our global system also has to account for the fact that the global economy is rapidly changing as a result of digitization. Some projections expect digital connectivity to deliver a net increase of $19 trillion in global economic value by 2025—given this trend, we need measures that accelerate societal benefits and minimize risks from digital trade and data flows.

Both Japan and the World Economic Forum are working to help unlock the possibilities of a global innovation economy. It is why Japan will be holding a Ministerial Meeting on Trade and Digital Economy in the days leading up to the G20 summit in the spring. It is also why the World Economic Forum launched a joint initiative with the World Trade Organization and the Electronic World Trade Platform designed to drive public-private dialogue on e-commerce, and why the Forum is leading a Digital Trade Project to support the development of data protocols.

This year will be a chance for the Forum, Japan and the whole international community to continue to work toward strengthening our global system so that it can better adapt to new forces of innovation and so that it is more inclusive. A key ingredient for success will be for leaders to undertake meaningful cooperative action—action that opens opportunity for stakeholders across societies. In this way, we will see a global economy that grows stronger and more resilient as the fruits of cooperation are widely shared.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Statement by Cecilia Malmström, Member of the EC in charge of Trade, on the successful conclusion of the final discussions on the EU-Japan Economic Partnership Agreement (EPA) – Brussels, 08 Dec 2017. (Copyright: European Union; Source: EC - Audiovisual Service; Photo: Georges Boulougouris)

The EU and Japan seal free trade pact that will cover 30% of global GDP

5 charts that explain big challenges facing Italy’s new government

EU gas market: new rules agreed will also cover gas pipelines entering the EU

GSMA Announces First Keynote Speakers for 2019 “MWC Los Angeles, in Partnership with CTIA”

Consultant in Forensic Technology – 1969

From farms to supermarkets: MEPs approve new EU rules against unfair trading

3 ways to fight stress at work

Water supply a human right but Greeks to lose their functioning utilities

Your smartphone may know more about your mental health than you

Norway is known for its cold weather – but it’s been in the grip of a severe heatwave

The Fourth Industrial Revolution is about to hit the construction industry. Here’s how it can thrive

Glasgow and Edinburgh race to become the UK’s first net-zero emissions city

We have solutions to crime. We just need to scale them

MEPs and European Youth Forum call on EU to Invest in Youth

An economist explains what happens if there’s another financial crisis

Tobacco in Pakistan: is it worth to burn your money?

Millions at risk if Syria’s war moves to last redoubt of Idlib, warns senior aid official

Keep Africa’s guns ‘from firing in the first place’, UN political chief urges

Joint UN, OSCE engagement can address crisis in Ukraine, other ‘dark spots of conflict’ in Europe

Strengthen inclusion, participation of people with autism to ‘achieve their full potential’ says UN chief

‘Abhorrent’ ambulance attack in Libyan capital imperils life-saving work, warns UN

Everything you need to know about the US government shutdown

These are the world’s best universities for recycling and sustainability

IMF launches a new offensive against Germany

We finally have a life-saving vaccine for Ebola

‘Multiplicity’ of rights violations in Ukraine as fifth winter of conflict bites

Agreement reached on new EU measures to prevent electricity blackouts

UN General Assembly President upholds value of multilateralism in speech closing annual debate

Righting a wrong: UN Fund helps thousands of sex abuse survivors rebuild their lives

GSMA Announces First Keynote Speakers for 2019 “MWC Los Angeles, in Partnership with CTIA”

The big five EU telecom operators in dire straights

As many as 330,000 displaced by heavy fighting in south-west Syria – UN agency

Chronic illnesses: UN stands up to stop 41 million avoidable deaths per year

Will the EU ever tackle the migration crisis despite the lack of political will?

I cycled over 6,000km across the United States to document climate change. Here’s what I learned

The vicious cycle of poverty and exclusion spreads fast engulfing more children

This is how we make cancer care sustainable and available for all

Libya’s migrants and refugees with tuberculosis ‘left to die’ in detention centres

Pakistan has just planted over a billion trees

EU budget: Commission proposes to increase funding to support the environment and climate action

One Hundred Years of Qipao History: from Shanghai to EU

Cholera prevention efforts underway to protect millions in Sudan’s Khartoum state

Meet Cipta: the comic book hero using her powers to tackle bullying in schools

5 surprising ways to reuse coffee grounds

This is the life of a refugee: the constant destruction and construction of dreams every day

How electrification can supercharge the energy transition

A shocking new report reveals what we’ve done to the natural world

Travel the world, find yourself

Venezuela migrant crisis begs a ‘coherent, predictable and harmonized’ response: UNHCR

Use space technology to build a better world for all, urges UN chief

Blockchain is facing a backlash. Can it survive?

Technological innovation can bolster trust and security at international borders. Here’s how

Libya: Heavy shelling and civilian deaths ‘blatant violation’ of international law – UN envoy

Greece will probably stay in the Eurozone but at what cost?

Climate experts pledge to scale up high-altitude fight against mountain melt

Pedal power makes ‘positive impact on climate’, urges UN on World Bicycle Day

There is a way for Eurozone to reach a sustainable growth path

These are the countries with the highest inflation

The economic cost of anti-vaccination movements in Italy

Human trafficking cases hit a 13-year record high, new UN report shows

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s