WEDF 2012 Closing Remarks: Mrs. Patricia Francis

I’d like to thank the Ambassadors for their insightful summaries. Following their excellent recaps there is in fact not much for me to add in terms of summing up.

Instead, I’d like to highlight a few of the takeaways that stood out for me during the conference:

• We learned that the only way to increase intra-ASEAN trade is actually through the integration of SMEs into regional trade, which would require an improvement in the business environment through harmonized rules and standards, improved logistics and connectivity.
• Although trade between Asian countries represents the bulk of intra-regional trade worldwide, Asian policymakers and business leaders are actively looking to expand trade beyond the region, especially to Latin American and, increasingly, to Africa.
• Countries are trading not in goods, but tasks – and this is only possible if they can move items across borders quickly and efficiently. Thanks to this new model there is a higher chance for SMEs to join global supply chains: while they may not be able to export directly, they can feed into the global supply chain of larger companies.
• While the notion of value chains is obviously not new, there is a fundamental shift in value chains in light of changing consumer behaviour and preferences as the middle class balloons in emerging markets. The new demand for higher value added products creates opportunities for even small nations to gain market access and benefit – as long as they are able to find niche sectors in which they can be competitive and where their companies can scale.
• Trade is a necessary, though obviously not sufficient, condition of food security: it is indispensable in terms of the accessibility and affordability of food. Yesterday was World Food Day, which reminded us that the more obstacles to trade there are the more difficult it is to make affordable food available to all.
• ITC has focused its work on bringing transparency to non-tariff measures (NTMs) as a first step towards policy change. We learned that more than half of NTMs are actually imposed by the exporting countries. Even while the private sector is pressing for policy change, companies can mitigate the effects of NTMs by capacity building of their staff and following existing rules closely.
• Technology innovations in infrastructure services are important drivers for economic and social development. In Kenya, for instance, new mobile applications allow micro-entrepreneurs in the informal sector to carry out financial transactions even without a bank account. ITC uses this facility in our Ethical Fashion programme.
• Last but not least, we have learned a lot about the Indonesian experience: their gradual diversification from exports of commodities toward value added products, the importance of connectivity and the use of public-private partnerships in infrastructure projects.

All of us will leave the conference with new knowledge of “what works”, insights and actionable ideas, and meaningful relationships that we can leverage in order to achieve our goals and achieve impact.

Now the question is: are we going to act on it? Reality catches up with us very quickly, we are all busy, and change is hard.

I encourage all of us to make the time, in our busy schedules, to follow up on some of the most promising ideas we heard here, to continue the conversation, in person, or virtually, and to carry out some of the meaningful projects and initiatives that were discussed here.

We have created a group on LinkedIn for conference participants, and I encourage you to use the WEDF2012 hash tag in your tweets.

After the virtual conversations, we hope to reconnect with you again in person at WEDF 2013. The theme of next year’s event will be export-led employment generation through the integration of SMEs into supply chains. SMEs represent the most labour intensive part of most economies, so connecting them to global supply chains is the lynchpin to export-led job creation. We are in the process of identifying the most suitable partner in terms of a host country – if your country is interested to apply, please let us know in coming weeks.

I hope that next year’s WEDF will take place in a more upbeat economic environment. Just yesterday, the New York Times reported that Chinese manufacturers were already more optimistic, seeing higher than expected sales domestically as well as in the US and emerging markets. And The Economist, the archetype free market magazine if there ever was one, this week ran a 20-page special report on inclusive growth. Times certainly have changed!

Before handing over the Minister Hidayat to close the event, let me thank, once again, all of you who have who made this conference possible. Our sponsors, the Government of Indonesia, my team at ITC, and you for your time and contributions. As a sign of our deepest appreciation to Minister Gita and his team, I would like to hand over this ITC plaque to you, Vice Minister Krisnamurti. This is a small token of appreciation for your government’s generous support.

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