With the need for countries to see job creation
and the regeneration of small and medium-sized enterprises (SMEs), it
is increasingly necessary for TSIs to focus on better positioning
companies within global supply and production chains through capacity
building and export development services. Participation in global
supply chains can provide SMEs with the opportunity to increase
productivity, expand their markets and attain financial stability.
In this issue of International Trade Forum, we investigate the
challenges and opportunities for TSIs and the businesses they support
as they integrate these supply chains.
‘A large component of building more trade capacity is understanding
how trade can be integrated into development and poverty reduction
strategies. For LDCs [least developed countries], this is often the
first step towards identifying key constraints to overall
competitiveness and to see how exports can be inserted into global
supply chains in order to focus on sectors with export potential,’ said
WTO Director-General Pascal Lamy.
Participation in global supply chains can provide SMEs with the
opportunity to increase productivity, expand their markets and attain
financial stability. In this issue of International Trade Forum, we
investigate the challenges and opportunities for TSIs and the
businesses they support as they integrate these supply chains.
Despite positive signs of recovery from the global trading system,
trade strategies need to focus on long-term sustainable growth, rather
than on short-term fixes.
It is essential to get the most value out of scarce resources – human, financial and natural.
To that point, value over volume as a means to surviving in a time of crisis was also one of the recurring themes at WEDF.
As Mr Lamy warned, trade economists and professionals should be
thinking more broadly about all the ways in which cross-border exchange
can create value, rather than continuing to focus on volume alone.
Short-term focus on volume and profits is not sustainable in a world
facing the combined crises of finance, food and climate change.
To ensure long-term sustainability and opportunities for the future,
there is a need for big-picture thinking focusing on the long term.
‘The expansion of domestic consumption in emerging markets for both
producer and consumer goods offers an opportunity for other developing
countries to diversify their export markets through increased
South-South trade,’ said Supachai Panitchpakdi, UNCTAD
Secretary-General.
It is also worth noting that an estimated one-third of world trade
is done firm-to-firm, not just country-to-country. With this comes a
need for innovation and an open outlook to new opportunities through
diversification. Globalization, aided by the rapid development in
information and communication technologies, improved transport
facilities and tariff reductions, has presented business opportunities
for SMEs.
However, involvement in supply chains also places greater demands on
the managerial and financial resources of businesses in meeting
international standards and in protecting their intellectual property.
To overcome these challenges, SMEs increasingly need the support of
agencies such as the ITC, TSIs and their own governments.
In this issue we recognize that sustainable development must also be
inclusive by bringing all people to the table. We heard this at WEDF
and also at the 2010 TPO Network Conference and Awards, which was held
in Mexico City in October. To this end, ITC believes that development
requires mutually beneficial partnerships and collaboration across
regions, between private and public sectors and within supply chains,
with the support of strong TSIs and financing for enterprises to
optimize efficiencies within the supply chain.