The 11th World Export Development Forum which began on 9th to12th September was held in Chongqing, China. The major theme of the event was ‘Adapting to Post-Crisis World Trade Patterns and Lessons for Export Development’, (Istanbul, 2010).
Some of the issues highlighted in the forum were renewed hopes and devotion to export-led growth model and the need to renew objectives and strategies in post-crisis period. The event was also dedicated for discussing issues such as competitiveness and development of export in the global world.
They also analyzed and identified some of the challenges that are encountered by developing countries due to the economic shift. The occasion was attended by over 300 delegates drawn from 48 developing and developed countries. They consisted of international and senior national policy makers, representatives of business leaders and international agencies and heads of trade support institutions.
The conference was co-hosted by China Council for Promotion of International Trade (CCPIT), Ministry of Commerce of People’s Republic of China (MOFCOM) and the Chongqing City. The delegates were offered an exclusive opportunity to learn more about China’s foreign trade policy and its domestic economy (Simon, 2010).
Huang Qi Fan, the Mayor of Chongqing’s municipal government, welcomed the delegates and set the tone of the event by expressing his confidence in maintenance of momentum growth of Chongqing. Yi Xiaozhun who is the Vice-Minister of MOFCOM was the first person to express his thoughts on China’s Foreign Trade. His views were that international trade was the major force in the recovery of world economy which is facing economic and financial shortages.
He asserted that China’s success in economic growth was driven by trade. China had fully devoted herself to open trade policy without any form of trade surpluses. This accelerated restructuring of China’s economy which increased domestic demands (Simon, 2010). It also opened doors for other countries to trade with China and increased chances of export which created an opportunity for economic recovery of the world.
The Director-General of the World Trade Organization (WTO), Pascal Lamy, was in agreement with Yi’s thoughts but noted that strong discipline was a requirement to form fair, transparent and predictable trade to meet entrepreneur’s needs.
Wang Jinzhen, the Vice-Chairman of CCPIT, hoped that the conference will deeply analyze the trading landscape at a global level and find appropriate measures to promote trade. He took the mandate to vouch for medium and small sized enterprises to help in increasing the total number of brands exported by China.
However, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD) Mr. Supachai Panitchpakdi added that the issue was beyond just exportation (Istanbul, 2010).
He was of the view that boosting skills of various indigenous companies and relating employment to export growth was the best way to acclimatize to the new economic command of the world. He added that a rise in South-South trade will help pull other countries to grow economically. Problems facing 49 under developed countries were also addressed in the forum.
Mr Lamy stressed that the constraints in supply have become a stamping block to many countries from getting into the market. This means that accessing the market is not a guarantee that you have already joined the market. Mr Muthuraman added that low rates of saving, high economic and consumption discrepancy and low competition led to slow revitalization in the developed countries (McIntyre, 2011).
Developing countries however had low labour cost advantage which increased their level of productivity which became their major point of consumption. Growing pressure in currency readjustment due to faster growth rate of Gross Domestic Products was a factor to consider in developing countries. Nevertheless, it was hard to predict the outcome of development in these countries in terms of intensity and speed.
Patricia Francis, Executive Director of ITC, laid out various policies on how to respond to the crisis during the forum. She warned against focusing on short-term fixes rather than long term growth that could last. She added that the world needs to review impacts of different behaviours to combat the food crisis, financial challenges and rapid climate change. She noted that focusing on short-term fixes could lead to loss of confidence and trust because of its high risks (Simon, 2010).
This is because the world would only benefit from short term gains. She offered her advice to the world to set equitable goals and set a common responsibility that will see to it that long term gains are achieved. According to Francis, support from strong financial enterprises and trade institutions was required to develop a mutually beneficial partnership between different countries. This was the only way to succumb to the global crisis.
When addressing the state of the world trade, Professor Ghemawat noted the importance of addressing three major issues when it comes to trade, globalization extent, understanding the importance of trade and the extent of constraining trade barriers. He then identified five aspects that assisted trade to be: common currency, common language, land border, stable relationship between the previous colonizer and colony and participating in local trade block (McIntyre, 2011).
He further addressed the need to consider cultural, geographical and economic factors which are the major barriers to trade. The panellists expected emerging markets and great development in South-South trade despite these challenges. This success was attributable to open trade, economic integration and investment policies that were favourable.
Finding an alternative model to finance the supply chain to help secure more contracts to benefit stakeholders was the major concern of André Soumah, the Chairman of Audit Control and Expertise Global. He explained that some of the reasons why international trade lacked funds was due to lack of trust which made most banks not to lend stakeholders money.
Mr. Soumah insisted that the objectives and strategies of TSIs should be reviewed to help meet the demands of new economic world that is multi-polar in nature. He noted that new mechanisms and structures should be formed to shape multilateral governments, trade institutions and organizations. TSIs should also develop policies that dress standards and measures that are non-tariff to prevent them from being barriers.
Reference
Istanbul, T.(2010).World Export Development Forum: Renewed Optimism for Export-led Growth in the Post-crisis Era. China: International Trade Centre Publishers.
McIntyre, K. (2011). 2010 World Export Development Forum. New York: Trade Forum Editorial.
Simon, T. (2010). UN World Export Development Forum. New York: International Trade Center Publishers.