Why academic institutions matter in global trade

We conceived the WTO Chairs Programme in 2009, when the global economic crisis was at its worst. And this is no coincidence.

The crisis was indeed a manifestation of global challenges which are testing the capacity of the international system to address them.

The crisis highlighted the crucial role of global cooperation and governance to restore growth and employment.

The adverse impact of the crisis on the world economy in terms of output and employment is undeniable.

This has been the first crisis of a truly global nature; a crisis which has severely affected international trade.

But now trade growth is coming back fast.

The WTO secretariat has forecast global trade growth at 10 per cent, and unless there are unanticipated negative economic impacts in the second half of 2010 this estimate may even turn out to be too low.

While no economy has been spared the adverse effects of economic contraction, it is the more vulnerable developing countries, particularly the least developed, that have been more acutely affected.

The international community has endeavoured to minimise the impact of the crisis in a variety of ways.

We have worked to keep trade flowing by mobilising efforts to ensure that adequate trade finance remains available to exporters.

It is trade finance that lubricates the wheels of trade and it has been in short supply and costly in some parts of the world.

In some economies, stimulus packages have been instrumental in preventing further deterioration in output while paving the way to recovery, even at the cost of inflating public deficits.

Many developing countries have not been able to afford bailout packages for their ailing industries or stimulus packages, or the expansion of social safety nets to those who have lost their jobs.

Hence, most economies in the world, both developed and developing, urgently need other sources of growth — sustainable engines of growth.

This is where trade can be an important part of the story.

This is certainly a lesson we can draw from China’s remarkable export success.

I heard recently an argument according to which during the recovery it would be nonsense to assume that everyone can increase exports. I am sorry.

Of course, everyone can increase exports if imports also grow.

Thus, making the overall resources allocation more efficient which means growth for all.

This is why trade expansion can be a low-cost stimulus.

A particularly efficient means of moving in this direction would be the completion of the Doha Development Round.

We have been working at the multilateral round of trade negotiations since 2001 — in fact the year that China joined the WTO.

Whether it is about generating market access for goods and services through the reduction of obstacles to trade, or levelling the playing field in trade distorting subsidies — whether to agriculture or to fisheries — or providing predictability and transparency to trade, or facilitating trade by cutting red tape, the Doha Round offers untapped opportunities that the global community cannot afford to miss.

We have been accumulating experience over the years on how to improve cooperation with governments in the field of technical cooperation.

The primary purpose of this cooperation is to enhance the capacity of countries to participate meaningfully in international trade, and we have come to appreciate more the involvement of academic institutions as partners in these endeavours.

Academic institutions have helped us raise awareness on trade issues in the national context and among young trade officials, so preparing for the future and ensuring a solid base of skills and knowledge for effective decision-making processes.

The role of academic institutions is also essential in creating capacity at home through local academic and training programmes.

That is why we have embarked on programmes of academic support for capacity building.

With the support of WTO members, the WTO secretariat has gradually structured a set of programmes aimed at contributing to the development and strengthening of capacities in academic institutions in the field of trade policy, trade law and WTO-related issues.

These regional or national activities aim at familiarising academic communities with the functioning of the multilateral trading system and the specificities of WTO agreements.

They also help in the analysis and discussion of relevant topics and concerns for trading communities.

These programmes also create bridges among and between scholars around the world and with the WTO Secretariat.

We seek to transfer ownership to partner institutions and supporting programmes that have a long-term perspective, are sustainable, and embody a multiplier effect.

In the end, the WTO secretariat recognises that it can only contribute in a marginal way, as it only possesses limited resources.

It is only through national universities and research centres, that the population at large can access academic education, and that specialised training for trade officials in particular, can be effectively provided.

In 2009, we launched the WTO Chairs Programme, which aims at supporting academic institutions and associated individual scholars from developing countries in course preparation, teaching, research and outreach activities.

Fourteen Chairs were allocated on the basis of a competitive bidding process.

Network of institutions

While we provide direct support to academic institutions from developing countries, the participation in the WTO Chairs Programme will increasingly be open to scholars and academic institutions from developed countries as well. Our aim is to create a network of academic and research institutions to share knowledge and experience.

The WTO Chairs Programme provides financial support for a period of four years to beneficiary institutions, and facilitates continuous interaction between such institutions and their homologues and other think tanks around the world.

It will provide students and other stakeholders with a deeper understanding of trade policy issues, disseminate research and information, promote discussion on international trade and trade cooperation, and provide analytical input into the formulation and implementation of trade policy.

Lamy is the WTO director- general.