1 1 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

3 3 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 Global Economic Prospects.

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

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

6 6 Societal needs Source: World Bank/IFC. Doing Business in What are the barriers to trade? Increased capacity and infrastructure to produce goods Reduction of trade barriers Increased trade facilitation Better transport networks Access to shipping ports What are the needs?

7 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 8 Overall trade restrictiveness index Source for graphs: The International Bank for Reconstruction and Development and The World Bank Global Monitoring Report 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

10 What are the opportunities? Increase trade facilitation 1 Customs modernization Trade-related infrastructure Inland transit Logistic services Information systems Ports efficiency Provide expertise and technology transfer 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 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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