In the report, “Accelerating Digital Trade in Developing Countries: A Policy Guide”, published by Nextrade’s own founder and CEO, Kati Suominen analyzes the current trade trends in developing countries and offers up a guide for policymakers to accelerate digital trade as vital to growth and development.
With each new technological development the economics of global production continue to revolutionize, particularly the potential prospects of integration for developing countries into the global economy. Technologies that rely on the Internet, such as online payment forums, ecommerce, and 3D printing just to name a few, are empowering businesses. They are allowing for businesses of all sizes to reduce costs, to efficiently manage supply chains, and to readily market goods and services worldwide.
This digital revolution is opening numerous opportunities for millions of micro entrepreneurs, small businesses, and trade participants wanting to engage in cross-border trade, expand, and design their own global supply chains. It is helping both companies and consumers alike to access a wide variety of goods and services; it is diversifying the makeup of trade as we’ve come to know it.
This matters particularly in developing countries because while there may be few small and medium enterprises that actually export, ecommerce can create micro-multinationals, bolstering productivity, creating a surge in services, and bolster women empowerment and employment.
Developing countries may face greater challenges that impede gains from digitalization in trade, such as inadequate broadband connectivity, policy and regulatory costs and issues, as well as limited adoption by both businesses and consumers. Developing countries need to reconsider their environment for trade and what might enable it. For trade policymakers, it might require changing the environment that enables trade completely.
This paper proposes specific ways in which policymakers and developing countries can best adapt to thrive in the digital era.
For more information on the full report and presentation, click here.