Tailored with technology | Economic growth
Tailored with technology | Economic growth
For centuries, advances in technology have sparked economic growth. Arguments have been made, however, that this millennia-long period of technological advancement, and attendant economic growth, may have come to an end--or could at least be in the midst of a prolonged pause. The questions now are whether all the “low-hanging fruit” of technological progress have been picked or, relatedly, if technology is reallocating resources instead of providing new growth.
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Tailored with technology | Corporate Growth
There is a strong link between corporate growth and technology, according to the first report in The Economist Intelligence Unit’s Tailored with Technology research programme sponsored by ANZ Bank. The report, which is focused on corporate growth, is based on a survey of more than 750 executives in eight economies: Australia, New Zealand, China, Hong Kong, India, Singapore, the United Kingdom and the United States. In the coming weeks, additional reports and articles will be published on the topics of sustainability and the macro-economy, as well as specific industries.
Nine in ten of firms surveyed have strong plans to increase technology adoption in the next five years Improving data analytics was the most popular form of technology, with 44% of the more than 750 executives selecting it as the top benefit The challenges are many, with 51% firms citing security and privacy as a concern and 43% citing technology skills among employeesThe link between corporate growth and technology has always existed, but it’s growing stronger, with nine in ten executives responding that they have plans to increase their adoption of new and emerging technologies. These technologies include robotics, software-defined network, and machine learning, among others. They are being used to accomplish a range of objectives, such as improving efficiency, growing internationally and reducing costs.
The most popular trend today in the survey was big data and analytics. Nearly 38% of respondents selected it as being among their top three priorities, higher than cyber security, artificial intelligence and cloud computing. Big data and analytics are being used by firms for client attraction and retention, as well as risk management and forecasting.
There are barriers to technological adoption, however. Security and privacy is chief among them, with more than 51% of respondents selecting it as one of the three biggest challenges. It was followed at 43% by technology skills among employees and at 39% technology standards and regulation. Many organisations see organisational solutions to these problems, whether it is fostering more cooperation between the chief technology officer and his c-suite counterparts or changing individual mindsets in the workforce.
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Tailored with technology | Sustainability
At the same time, there are multiple challenges involved with using technologies for greater sustainability. One is a lack of strategic guidance about where to invest time and money. Another is a lack of clarity as to the best type of technologies to harness.
Successful companies are meeting the needs of an increasingly sustainability-conscious consumer base and turning it into a competitive advantage. The report’s key findings are:
Sustainability is increasingly viewed as a way to increase profit. Besides doing good and contributing to the United Nations Sustainable Development Goals (SDGs), companies realise there is a market opportunity in being sustainable. Technology is increasingly important to boosting sustainability. Almost all survey respondents recognise the importance of technology. Certain industries are thriving as a result of this commercial opportunity. Several technology trends are expected to contribute. Currently led by big data and analytics, but increasingly expected to include artificial intelligence in the development of smart cities in particular. The potential benefits of technology are vast. A large majority of survey respondents expect a spending increase on technology over the long-term, which bodes well for companies and society alike.Is your company ready to tailor with technology?
Take interactive survey to find out >This is the second in a series of papers and articles from The Economist Intelligence Unit, sponsored by ANZ. This report, and the others to follow, is based on the results of a survey of more than 750 executives across eight markets.
This paper was written by Kim Andreasson and edited by Chris Clague. Findings from the survey were supplemented with research and in-depth interviews with experts and executives. Our thanks are due to the following people, listed alphabetically by affiliation:
Michael Cooke, Senior vice president, global HSE and sustainability Affairs, ABB Mikkel Flyverbom, Professor of communication and digital transformations, Copenhagen Business School Mark Milstein, Director of the Center for Sustainable Global Enterprise, SC Johnson College of Business, Cornell University Alexa Dembek, Senior vice president, Chief technology & sustainability officer, DuPont Tim O’Leary, Executive director, government and regional affairs & chief sustainability officer, Telstra
Gearing for growth
Gearing for growth: Future drivers of corporate productivity seeks to examine what approaches firms from all sectors are taking to improve productivity within their businesses, especially in the current challenging economic climate.
Key findings
Companies are generally optimistic that they can further increase productivity. Two thirds (67%) of companies polled for this report expect to see productivity increases in the next 12 months, either in terms of greater output or more or improved products and services. Executives see two functional areas— operations (58%) and sales (33%)—as likely to see the greatest productivity increases in the next year. North American companies are more pessimistic about seeing productivity gains in terms of improved products or services in the coming year: 59% cite this as likely, compared to 72% in both Asia- Pacific and Europe. Managing human capital is seen as by far the most important means of improving productivity. Some 85% of companies believe this is either “crucial” or “important” to their business effectiveness. But managing human capital presents challenges. Respondents, especially those in Europe, cite a lack of engagement and motivation as the biggest obstacle to human-capital productivity, followed by poor performance management. North American companies feel more overstretched and lacking in investment in staffing, making this one of their top obstacles to improved productivity from employees. Functional training is seen as a key tool for improving productivity. Training ranks highly as an efficient tool for improving productivity, particularly training for particular functions. While 67% of those that have introduced management training programmes see these as effective tools, this rises to 79% when respondents are asked about functional training. Functional training also rises to the top of the list of human-capital initiatives that executives will introduce in the next 12 months that are expected to have the biggest impact on productivity. Companies have yet to fully capitalise on the productivity potential of technology. Using the best available technology is only the third-most important factor in productivity, after human capital and good strategic decisions, with 69% ranking this as either crucial or important. Meanwhile, nearly half (49%) of respondents believe they are not getting the most out of technology. This is especially so for European firms (58%, vs 41% in North America). Lack of investment in new technology also emerges as a concern, with 36% overall believing this is hampering productivity. Companies also appear to be missing the productivity potential of social networking technologies, especially in terms of connecting with clients. More than half (54%) of those using social media for clients say it has improved business effectiveness, but relatively few companies have yet deployed this technology. There is scepticism about the productivity impact of green practices. While leading companies say they find engaging employees on sustainability initiatives is a powerful motivating tool, the survey respondents appear less certain. Only 32% of those that have introduced green practices say they have had a positive effect on productivity, while half say these practices have no impact on productivity and 17% say they have a negative impact. Corporate strategy is seen as key to productivity gains but companies worry about making the best decisions. Making the right strategic choices ranked second (77%) behind managing humancapital more effectively in terms of the primary levers for productivity improvements. But there is concern that common strategies are not always beneficial for productivity. For instance, in the past 12 months 76% of respondents have engaged in cost cutting and labour force reduction. Yet focusing too closely on cost cutting and not making the most of existing resources is also cited most commonly among the top three strategic problems negatively affecting productivity (by 36% of respondents). Respondents’ second most commonly cited strategic problem is an over-emphasis on top-line growth, cited by 30% (rising to 43% among Asian companies). China might be the world’s fastest-growing economy, but it continues to lag in terms of overall productivity. In 2001-10 China was comfortably the fastest growing economy of those in this study, enjoying annual average increases in GDP per head (measured in PPP terms) of 12.5%. China also experienced the fastest level of productivity growth of all the major economies. But macroecomomic analysis shows that China still lags way behind the world’s most developed economies in terms of overall productivity levels, suggesting that productivity growth in the country will continue to outstrip that of the developed world. On a macroeconomic scale, spending on education and IT are among the surest ways to boost productivity. One of the best ways for a country to boost productivity levels is by spending more on education—particularly female education, which is often neglected in poorer (and less productive) countries. There is also a close correlation between IT spending and productivity growth: faster growth in IT spending in the developing world largely reflects the extra catch-up potential of these markets and the potential productivity gains that such investment can yield.
Accelerating urban intelligence: People, business and the cities of tomorrow
Accelerating urban intelligence: People, business and the cities of tomorrow
About the research
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Safe Cities Index 2019
Cities across the globe are growing in size and in terms of how connected they are. Which cities are best at keeping their citizens safe and how do they do it? An updated version of the Safe Cities Index 2017, the 2019 index covers 60 cities across the globe and defines how to measure security in a rapidly urbanising world.
Visit the Safe Cities hub for more interactive content >>
Five-star cities: Asia’s best cities for work and recreation
The 2019 bleisure barometer: Asia’s best cities for work and recreation evaluates the bleisure potential of various cities in Asia-Pacific, based on a survey of global business travellers. It reveals that while Asia’s top bleisure destinations provide the right balance of business activity, high-quality infrastructure and top-flight leisure experiences, many less obvious choices stand out for different reasons, often involving opportunities for cultural exchange.
The key findings are:
Tokyo is Asia’s best bleisure destination, ranking first out of 26 cities in the region. The Japanese capital is joined by Singapore, Sydney, Hong Kong and Melbourne as a “five-star” bleisure city, as determined by a quantitative barometer constructed for this programme, based on survey responses. Raw scores and number of stars may not correlate perfectly, as the former is an absolute measure and the latter a relative one (see appendix I for the full methodology of barometer and star scoring). Less-affluent cities comprise most of the one-star destinations, with notable exceptions. Business travel may prove arduous in the emerging metropolises of South and South-east Asia, but greater GDP is hardly the only predictor of a high bleisure score. New Delhi and Hanoi tie for second (alongside Beijing and Hong Kong) in the category measuring opportunities for cultural experiences, providing them a leg up over cities with stronger infrastructure and a bigger international business scene. Shanghai and Beijing, often criticised for their poor urban environments, rank highly on business aspects such as quality of international links and level of digital connectivity, helping them best more ostensibly liveable cities, including Auckland, Brisbane, Seoul, Taipei and Wellington, in the overall ranking. Wealthy Adelaide falls in the one-star category, dragged down by low scores for quality of food and beverage and opportunity for cultural experiences. Ease of transportation is the top urban factor in a successful business trip. Other key aspects include street safety and quality of business venues, according to our survey. Regional differences emerge in these findings, with Asian executives prioritising transportation, while Europeans are less concerned about safety than those hailing from elsewhere. Dining out and enjoying local heritage are the chief ways busy business travellers unwind. These two factors rank well ahead of the third-place finisher, visiting an art museum or gallery. Regional nuances crop up here too: Asian executives are less likely to frequent the local drinking scene and more inclined to visit an amusement park.The report, including full scoring and star bracket methodology, as well as an infographic and video, can be found at: https://fivestarcities.economist.com/
Flexible cities: The future of Australian infrastructure
As this report finds, cities need smarter and more flexible infrastructure to address these challenges— infrastructure that can make better use of existing space and resources, and that can adapt in accordance with uncertain, fast-moving future realities.
The idea of ‘flexible’ or future-proof cities is becoming more important. Imagine a roadway that works for today’s vehicles as well as tomorrow’s autonomous cars, an energy system that can provide reliable power despite spikes in usage (such as those that may come from greater adoption of electric cars), pylons that are mindful of overhead drones, a building that transforms depending on needs of its inhabitants, or an autonomous rail system that can double its capacity simply through changes to its operating algorithms.
Delivering infrastructure that is more responsive and flexible to future needs requires technological innovation as much as it does new approaches to planning, financing and procurement.
In this report, The EIU investigates the challenges facing cities and urban infrastructure in the near future, and the global trends and innovations in infrastructure that will be crucial in response. With an eye to international best practice, it focuses on the challenges and opportunities pertinent to Australia. Here, major cities are facing significant population growth forecasts that call into question their ability to continuously provide a high quality of life for their citizens. Challenges pertain to both meeting infrastructure need, and in delivering solutions, through effective planning, financing and collaboration, in time and on budget.
The key findings of the research include:
Australia is experiencing a number of growing pains. Population growth in cities is a universal trend—urban population is expected to rise by two-thirds by 2050 globally—but it is particularly acute in Australia, where cities must meet double or greater user demand without conflicting with the global targets set by the Paris Agreement and Agenda 2030. Such growth challenges the capacity and sustainability of cities’ infrastructure and the networks that connect them. Planners must also reckon with an ageing population, deteriorating infrastructure, adverse environmental change and evolving working patterns, altering the dynamics of how people operate in and navigate cities. A failure to respond to these challenges could result in declining economic productivity and threats to the quality of life for which Australian cities are renowned. To meet future demands, infrastructure builders across the globe are considering how they can expand the capacity of existing infrastructure and bolster the flexibility of new works. Updated networks like roads, railways and pipelines often need to accommodate twice their original usage demand without changing their physical footprint. The effective adoption of digital technology will be key to this transformation, such as updating metro systems with driverless trains and automatic controls, informed by large amounts of real-time data, to allow a more efficient use of capacity. Water and energy supply systems must also prove reliable in the face of natural disasters, shifts in market prices (such as oil or gas price shocks) or changes to supply sources (backups for solar generation, for example). New technological techniques and applications can help builders work more quickly, safely and cost-effectively. The design, construction and maintenance of infrastructure projects are increasingly driven by digital technologies, unlocking cost and time savings in building roads, railways and entire city centres. The cost and energy required to build with the highest safety margins could be reduced by remote monitoring through embedded sensors. Efficient, low-impact construction techniques will be important to reduce the disruption that construction and repairs have on metropolitan areas, too. Stakeholders are increasingly reliant on data to plan, build and optimise projects. Data generated by citizens and connected infrastructure are increasingly critical in delivering and operating smarter cities. Governments and infrastructure providers increasingly benefit from adding this data to their modelling and scenario planning. Open data can also allow citizens and third parties to solve problems or invent new applications that benefit all, from crowdsourcing potholes or reporting crime, to building new navigation apps. Australia’s state and federal governments, citizens, and commercial partners are still grappling with data ownership issues, but all are working to address the challenges. Mature financing and procurement practices help Australia attract international investment. Attractive markets encourage international competition for infrastructure procurement. Indeed, many of today’s projects are contracted to international players who bring advanced, ambitious proposals to government. And as demand for more advanced, flexible projects rises, players are increasingly presenting envelope-pushing approaches to win bids. Collaboration between governments, universities and commercial players is increasing, sparking innovation. Universities are playing a larger role in the advancement and application of infrastructure technology by partnering with private companies and government. New forms of collaboration are also more apparent among federal, state and local governments, and between governments and the private sector, potentially easing the problems posed by the historically disjointed nature of decision-making and long-term planning on major infrastructure. Australia has a strong record of robust infrastructure investment. Its leaders, institutions and businesses have identified the urgency and importance of responsible and smart infrastructure initiatives. As a result, Australia is well placed to wrestle with the challenges it faces, and, as it navigates infrastructure challenges earlier and with greater urgency than some other countries, could be a model for how other countries—in the OECD and in Asia-Pacific—can build smarter, more flexible, next-generation infrastructure in their cities.
China has now emerged as the world’s largest economy by purchasing power parity and is a market that investors cannot ignore. To learn more about the confidence level of institutional investor and asset owner organisations in China and the opportunities and concerns over the next 12 months, click here to download the full report.
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The China position: Gauging institutional investor confidence
The China position: Gauging institutional investor confidence is an Economist Intelligence Unit report, comissioned by Invesco. It analyses results from a survey of 411 institutional investor and asset owner organisations (approximately 200 in Europe, Middle East and Africa, 100 in North America, and 100 from Asia-Pacific). The key findings of the survey are as follow:
A majority (nine in ten) of our survey respondents claim some level of dedicated exposure to China. Investments are growing; about half of respondents with dedicated China exposure report their investments have “risen significantly” in the past 12 months. Equities are the most-cited way organisations invest in China. Over 60% of respondents with dedicated China exposure report both equities and fixed income onshore holdings. Respondents cited improvements to their own China expertise as the top driver for dedicated investment exposure. Nearly four in ten respondents say environmental, social and governance (ESG) factors play a role in all of their investment decisions; fewer than three in ten say ESG is particularly important for China investments. Chinese asset classes in our survey could see increased investment from foreign organisations over the next 12 months, with respondents highlighting technology, financial services and “new economy” sectors as most attractive. Risk assessments are largely even across asset classes, but on a regional split respondents in APAC are more concerned than counterparts in North America or EMEA. Respondents are mixed on the impact of US-China trade tensions, with similar numbers expecting a positive or negative effect. But a majority of respondents report that their organisations expect to increase exposure over the next 12 months, regardless of outlook. About three-quarters of survey respondents say China’s economy will improve over the next 12 months; about two-thirds say the same for global economic conditions.Our thanks are due to the following individuals for their time and insights:
Jimmy Chang, chief investment strategist, Rockefeller Capital Management Mark Delaney, deputy chief executive and chief investment officer, Australian Super Kevin Wade, chief investment officer, Superannuation Arrangements of the University of London (SAUL)Download the report for more insights.
The shifting landscape of global wealth: Future-proofing prosperity in a ti...
In some instances the impact of this shift will be shaped by local factors, such as demographic changes. In other instances this shift will reflect shared characteristics, as demonstrated by the greater popularity of overseas investing among younger high-net-worth individuals (HNWIs) brought up in an era of globalisation. Whatever the drivers, the landscape of wealth is changing—from local to global, and from one focused on returns to one founded on personal values.
Despite rising economic concerns and a tradition of investor home bias in large parts of the world, the new landscape of wealth appears less interested in borders. According to a survey commissioned by RBC Wealth Management and conducted by The Economist Intelligence Unit (EIU), younger HNWIs are substantially more enthusiastic about foreign investing. The U.S. is a particularly high-profile example of a country where a long-standing preference for investments in local markets appears set to be transformed.
Click the thumbnail below to download the global executive summary.
Read additional articles from The EIU with detail on the shifting landscape of global wealth in Asia, Canada, the U.S. and UK on RBC's website.
Fintech in ASEAN
To better understand the opportunities and challenges in developing a fintech business in seven ASEAN markets, The Economist Intelligence Unit conducted wide-ranging desk research supplemented by seven in-depth interviews with executives in Australia and ASEAN.
Download report and watch video interview to learn more.
View from the top 2019: How boards’ attitudes and approaches to risk management have evolved since 2014
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Steering through collaboration: CFOs driving new priorities for the future
It is well established that the modern CFO has a more strategic role to play in a business, but a clear action plan to achieve this is lacking. A key element of this is helping the business to deal with change. Some changes are planned: launching a new product or service, setting up operations in a new region or acquiring a competitor. Others may be unexpected: a major disruption to supply-chain operations, the emergence of new regulation and legal reporting requirements or the unpredictable impacts of global economic uncertainty.
Either way, when asked about the biggest challenges they face in executing their day-to-day activities, change is a recurring theme, according to a new survey of 800 CFOs and senior finance executives, conducted by The Economist Intelligence Unit. Managing unexpected changes to financial forecasts and adapting finance processes to rapidly evolving business models are top of mind.
Managing unexpected changes to financial forecasts and adapting finance processes to rapidly evolving business models are top challenges finance executives face in executing their day to-day activities.
Finance executives are also concerned with identifying how to align strategic, financial and operational plans towards common objectives and meaningfully analysing data across business units and regions. “All functions are working to meet these challenges and, as a finance head, we have to have visibility across all functions, how they are progressing [towards meeting goals] and ensuring that their direction is in line with overall strategic goals,” says Lalit Malik, CFO of Dabur, an Indian consumer goods manufacturer. It is incumbent upon CFOs therefore to be prepared not only to help their own function navigate uncharted territory, but the rest of the business too. That means breaking down the silos that commonly exist in organisations, in order to collaborate closely across functions, sharing information and data in the pursuit of common objectives.
All functions are working to meet these challenges and, as a finance head, we have to have visibility across all functions, how they are progressing [towards meeting goals] and ensuring that their direction is in line with overall strategic goals - Lalit Malik, CFO of Dabur, an Indian consumer goods manufacturer.
The clear custodian of collaboration
There are a number of reasons why the role of leading cross-company collaboration around steering should fall to the CFO and their team. First, through the activities of budgeting, the finance function is the custodian of the clear, quantitative expression of management expectations and determines how resources such as cash and people will be allocated in order to achieve them. In our survey, 90% of respondents say that finance should facilitate collaborative enterprise planning to ensure that operational plans are aligned with financial and strategic plans.
Second, through performance management, the finance function is the gatekeeper for critical data that illustrate how well—or otherwise—the company is rising to the challenge of change. That includes data relating to sales, supply chain and delivery, which need to be reported back to the business in ways that help drive improved decisionmaking. Our survey reveals that companies in which finance executives feel empowered to drive strategic decisions across business functions are more likely to report a higher financial performance in fiscal year 2016/17 and 2017/18 and anticipate higher growth rates for 2019/20.
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Transforming data into action
As businesses generate and manage vast amounts of data, companies have more opportunities to gather data, incorporate insights into business strategy and continuously expand access to data across the organisation. Doing so effectively—leveraging data for strategic objectives—is often easier said than done, however. This report, Transforming data into action: the business outlook for data governance, explores the business contributions of data governance at organisations globally and across industries, the challenges faced in creating useful data governance policies and the opportunities to improve such programmes. Learn more by downloading our whitepaper below.
Rethinking professional services in an age of disruption
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Promise and perils: Scaling up businesses in sub-Saharan Africa
Promise and perils: Scaling up businesses in Africa is an Economist Intelligence Unit report, sponsored by Dubai Chamber of Commerce and Industry. The report examines the factors enabling businesses in sub-Saharan Africa (SSA) to scale up. We consider the policy environment, state of technology and infrastructure, and financing options that allow businesses to access markets in other countries on the continent and beyond. In addition, it explores the role of foreign investors in facilitating business expansion, focusing on those based in the Gulf Co-operation Council (GCC) countries.
This video presents findings from our upcoming report Promise and Perils: Scaling up businesses in sub-Saharan Africa. The report will launch ahead of the Africa Global Business Forum in Dubai on 18th and 19th November 2019.
Data Snapshot: Scaling up businesses in sub-Saharan Africa: Policy enablers
The Hinrich Foundation Sustainable Trade Index 2018
Yet the enthusiasm in Asia for trade does not appear to have waned. This broad societal consensus behind international trade has enabled Asian countries to continue broadening and deepening existing trading relationships, for example, by quickly hammering out a deal for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2018 following the US’s withdrawal from its predecessor in 2017.
Asia, then, finds itself in the unique position of helping lead and sustain the global economy’s commitment to free and fair trade. It is in this context that the need for sustainability in trade is ever more crucial.
The Hinrich Foundation Sustainable Trade Index was created for the purpose of stimulating meaningful discussion of the full range of considerations that policymakers, business executives, and civil society leaders must take into account when managing and advancing international trade.
The index was commissioned by the Hinrich Foundation, a non-profit organisation focused on promoting sustainable trade. This, the second edition of the study, seeks to measure the capacity of 20 economies—19 in Asia along with the US—to participate in the international trading system in a manner that supports the long-term domestic and global goals of economic growth, environmental protection, and strengthened social capital. The index’s key findings include:
Countries in Asia, especially the richer ones, have broadly regressed in terms of trade sustainability. Hong Kong is developed Asia’s bright spot, recording a slight increase in its score and topping the 2018 index. Several middle-income countries perform admirably, led by Sri Lanka. For the economic pillar, countries generally performed well in terms of growing their labour forces as well as their per-head GDPs. For the social pillar, sharp drops for some countries in certain social pillar indicators contribute to an overall decline. For the environmental pillar, with deteriorating environmental sustainability in many rich countries, China, Laos and Pakistan are the only countries to record increases in scores. Sustainability is an ever more important determinant of FDI and vendor selection in choosing supply-chain partners. Companies are improving the sustainability of their supply chains by restructuring and broadening relationships with competitors and vendors.Related content
Promise and perils: Scaling up businesses in sub-Saharan Africa
Promise and perils: Scaling up businesses in Africa is an Economist Intelligence Unit report, sponsored by Dubai Chamber of Commerce and Industry. The report examines the factors enabling businesses in sub-Saharan Africa (SSA) to scale up. We consider the policy environment, state of technology and infrastructure, and financing options that allow businesses to access markets in other countries on the continent and beyond. In addition, it explores the role of foreign investors in facilitating business expansion, focusing on those based in the Gulf Co-operation Council (GCC) countries.
This video presents findings from our upcoming report Promise and Perils: Scaling up businesses in sub-Saharan Africa. The report will launch ahead of the Africa Global Business Forum in Dubai on 18th and 19th November 2019.
Data Snapshot: Scaling up businesses in sub-Saharan Africa: Technology and...
The Hinrich Foundation Sustainable Trade Index 2018
Yet the enthusiasm in Asia for trade does not appear to have waned. This broad societal consensus behind international trade has enabled Asian countries to continue broadening and deepening existing trading relationships, for example, by quickly hammering out a deal for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2018 following the US’s withdrawal from its predecessor in 2017.
Asia, then, finds itself in the unique position of helping lead and sustain the global economy’s commitment to free and fair trade. It is in this context that the need for sustainability in trade is ever more crucial.
The Hinrich Foundation Sustainable Trade Index was created for the purpose of stimulating meaningful discussion of the full range of considerations that policymakers, business executives, and civil society leaders must take into account when managing and advancing international trade.
The index was commissioned by the Hinrich Foundation, a non-profit organisation focused on promoting sustainable trade. This, the second edition of the study, seeks to measure the capacity of 20 economies—19 in Asia along with the US—to participate in the international trading system in a manner that supports the long-term domestic and global goals of economic growth, environmental protection, and strengthened social capital. The index’s key findings include:
Countries in Asia, especially the richer ones, have broadly regressed in terms of trade sustainability. Hong Kong is developed Asia’s bright spot, recording a slight increase in its score and topping the 2018 index. Several middle-income countries perform admirably, led by Sri Lanka. For the economic pillar, countries generally performed well in terms of growing their labour forces as well as their per-head GDPs. For the social pillar, sharp drops for some countries in certain social pillar indicators contribute to an overall decline. For the environmental pillar, with deteriorating environmental sustainability in many rich countries, China, Laos and Pakistan are the only countries to record increases in scores. Sustainability is an ever more important determinant of FDI and vendor selection in choosing supply-chain partners. Companies are improving the sustainability of their supply chains by restructuring and broadening relationships with competitors and vendors.China icebergs: Forces that could reshape the world
China icebergs: Forces that could reshape the world
China icebergs: Forces that could reshape the world is an Economist Intelligence Unit report, sponsored by Pine
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The Hinrich Foundation Sustainable Trade Index 2018
Yet the enthusiasm in Asia for trade does not appear to have waned. This broad societal consensus behind international trade has enabled Asian countries to continue broadening and deepening existing trading relationships, for example, by quickly hammering out a deal for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2018 following the US’s withdrawal from its predecessor in 2017.
Asia, then, finds itself in the unique position of helping lead and sustain the global economy’s commitment to free and fair trade. It is in this context that the need for sustainability in trade is ever more crucial.
The Hinrich Foundation Sustainable Trade Index was created for the purpose of stimulating meaningful discussion of the full range of considerations that policymakers, business executives, and civil society leaders must take into account when managing and advancing international trade.
The index was commissioned by the Hinrich Foundation, a non-profit organisation focused on promoting sustainable trade. This, the second edition of the study, seeks to measure the capacity of 20 economies—19 in Asia along with the US—to participate in the international trading system in a manner that supports the long-term domestic and global goals of economic growth, environmental protection, and strengthened social capital. The index’s key findings include:
Countries in Asia, especially the richer ones, have broadly regressed in terms of trade sustainability. Hong Kong is developed Asia’s bright spot, recording a slight increase in its score and topping the 2018 index. Several middle-income countries perform admirably, led by Sri Lanka. For the economic pillar, countries generally performed well in terms of growing their labour forces as well as their per-head GDPs. For the social pillar, sharp drops for some countries in certain social pillar indicators contribute to an overall decline. For the environmental pillar, with deteriorating environmental sustainability in many rich countries, China, Laos and Pakistan are the only countries to record increases in scores. Sustainability is an ever more important determinant of FDI and vendor selection in choosing supply-chain partners. Companies are improving the sustainability of their supply chains by restructuring and broadening relationships with competitors and vendors.
The Global Illicit Trade Environment Index 2018
To measure how nations are addressing the issue of illicit trade, the Transnational Alliance to Combat Illicit Trade (TRACIT) has commissioned The Economist Intelligence Unit to produce the Global Illicit Trade Environment Index, which evaluates 84 economies around the world on their structural capability to protect against illicit trade. The global index expands upon an Asia-specific version originally created by The Economist Intelligence Unit in 2016 to score 17 economies in Asia.
View the Interactive Index >> Download workbook
Breaking Barriers: Agricultural trade between GCC and Latin America
The GCC-LAC agricultural trading relationship has thus far been dominated by the GCC’s reliance on food imports, specifically meat, sugar, and cereals. Over the past two years, however, there has been a notable decline in the share of sugar imported from LAC, and 2017 saw the biggest importers in the GCC—Saudi Arabia and the UAE—impose a ban on Brazilian meat.
Market players on both sides of the aisle are keen to grow the relationship further, but there are hurdles to overcome. In this report, we explore in greater depth the challenges that agricultural exporters and importers in LAC and the GCC face. We consider both tariff and non-tariff barriers and assess key facets of the trading relationship including transport links, customs and certification, market information, and trade finance.
Key findings of the report:
GCC will need to continue to build partnerships to ensure a secure supply of food. Concerns over food security have meant that the GCC countries are exploring ways to produce more food locally. However, given the region’s climate and geology, food imports will remain an important component of the food supply. Strengthening partnerships with key partners such as those in LAC, from which it sourced 9% of its total agricultural imports in 2016, will be vital to food security in the region.
There is a wider range of products that the LAC countries can offer the GCC beyond meat, sugar and cereals. Providing more direct air links and driving efficiencies in shipping can reduce the time and cost of transporting food products. This will, in turn, create opportunities for LAC exporters to supply agricultural goods with a shorter shelf life or those that are currently too expensive to transport. Exporters cite examples such as berries and avocados.
The GCC can engage small and medium-sized producers that dominate the LAC agricultural sector by offering better trade financing options and connectivity. More direct air and sea links can reduce the cost of transporting food products, making it viable for smaller players to participate in agricultural trade. The existing trade financing options make it prohibitive for small and medium-sized players too. Exporters in LAC suggest that local governments and private companies in the GCC can offer distribution services with immediate payments to smaller suppliers at a discount.
Blockchain technology is poised to address key challenges market players face in agricultural trade. Through a combination of smart contracts and data captured through devices, blockchain technology can help to reduce paperwork, processing times and human error in import and export processes. It can improve transparency, as stakeholders can receive information on the state of goods and status of shipments in real time. Finally, it can help with food safety and quality management—monitoring humidity and temperature, for instance, along the supply chain can help to pinpoint batches that may be contaminated, minimising the need for a blanket ban on a product.
Japan: 2030
Japan: 2030
Press 'play' on the player above to hear:
* the opportunities and challenges presented by Japan's ageing population
* how Japan's businesses are developing creativity as a management capability
* Japan's role in the new geopolitical reality in Asia
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The Hinrich Foundation Sustainable Trade Index 2018
Yet the enthusiasm in Asia for trade does not appear to have waned. This broad societal consensus behind international trade has enabled Asian countries to continue broadening and deepening existing trading relationships, for example, by quickly hammering out a deal for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2018 following the US’s withdrawal from its predecessor in 2017.
Asia, then, finds itself in the unique position of helping lead and sustain the global economy’s commitment to free and fair trade. It is in this context that the need for sustainability in trade is ever more crucial.
The Hinrich Foundation Sustainable Trade Index was created for the purpose of stimulating meaningful discussion of the full range of considerations that policymakers, business executives, and civil society leaders must take into account when managing and advancing international trade.
The index was commissioned by the Hinrich Foundation, a non-profit organisation focused on promoting sustainable trade. This, the second edition of the study, seeks to measure the capacity of 20 economies—19 in Asia along with the US—to participate in the international trading system in a manner that supports the long-term domestic and global goals of economic growth, environmental protection, and strengthened social capital. The index’s key findings include:
Countries in Asia, especially the richer ones, have broadly regressed in terms of trade sustainability. Hong Kong is developed Asia’s bright spot, recording a slight increase in its score and topping the 2018 index. Several middle-income countries perform admirably, led by Sri Lanka. For the economic pillar, countries generally performed well in terms of growing their labour forces as well as their per-head GDPs. For the social pillar, sharp drops for some countries in certain social pillar indicators contribute to an overall decline. For the environmental pillar, with deteriorating environmental sustainability in many rich countries, China, Laos and Pakistan are the only countries to record increases in scores. Sustainability is an ever more important determinant of FDI and vendor selection in choosing supply-chain partners. Companies are improving the sustainability of their supply chains by restructuring and broadening relationships with competitors and vendors. The Global Illicit Trade Environment Index 2018
To measure how nations are addressing the issue of illicit trade, the Transnational Alliance to Combat Illicit Trade (TRACIT) has commissioned The Economist Intelligence Unit to produce the Global Illicit Trade Environment Index, which evaluates 84 economies around the world on their structural capability to protect against illicit trade. The global index expands upon an Asia-specific version originally created by The Economist Intelligence Unit in 2016 to score 17 economies in Asia.
View the Interactive Index >> Download workbook
Breaking Barriers: Agricultural trade between GCC and Latin America
The GCC-LAC agricultural trading relationship has thus far been dominated by the GCC’s reliance on food imports, specifically meat, sugar, and cereals. Over the past two years, however, there has been a notable decline in the share of sugar imported from LAC, and 2017 saw the biggest importers in the GCC—Saudi Arabia and the UAE—impose a ban on Brazilian meat.
Market players on both sides of the aisle are keen to grow the relationship further, but there are hurdles to overcome. In this report, we explore in greater depth the challenges that agricultural exporters and importers in LAC and the GCC face. We consider both tariff and non-tariff barriers and assess key facets of the trading relationship including transport links, customs and certification, market information, and trade finance.
Key findings of the report:
GCC will need to continue to build partnerships to ensure a secure supply of food. Concerns over food security have meant that the GCC countries are exploring ways to produce more food locally. However, given the region’s climate and geology, food imports will remain an important component of the food supply. Strengthening partnerships with key partners such as those in LAC, from which it sourced 9% of its total agricultural imports in 2016, will be vital to food security in the region.
There is a wider range of products that the LAC countries can offer the GCC beyond meat, sugar and cereals. Providing more direct air links and driving efficiencies in shipping can reduce the time and cost of transporting food products. This will, in turn, create opportunities for LAC exporters to supply agricultural goods with a shorter shelf life or those that are currently too expensive to transport. Exporters cite examples such as berries and avocados.
The GCC can engage small and medium-sized producers that dominate the LAC agricultural sector by offering better trade financing options and connectivity. More direct air and sea links can reduce the cost of transporting food products, making it viable for smaller players to participate in agricultural trade. The existing trade financing options make it prohibitive for small and medium-sized players too. Exporters in LAC suggest that local governments and private companies in the GCC can offer distribution services with immediate payments to smaller suppliers at a discount.
Blockchain technology is poised to address key challenges market players face in agricultural trade. Through a combination of smart contracts and data captured through devices, blockchain technology can help to reduce paperwork, processing times and human error in import and export processes. It can improve transparency, as stakeholders can receive information on the state of goods and status of shipments in real time. Finally, it can help with food safety and quality management—monitoring humidity and temperature, for instance, along the supply chain can help to pinpoint batches that may be contaminated, minimising the need for a blanket ban on a product.
Promise and perils: Scaling up businesses in sub-Saharan Africa
Promise and perils: Scaling up businesses in Africa is an Economist Intelligence Unit report, sponsored by Dubai Chamber of Commerce and Industry. The report examines the factors enabling businesses in sub-Saharan Africa (SSA) to scale up. We consider the policy environment, state of technology and infrastructure, and financing options that allow businesses to access markets in other countries on the continent and beyond. In addition, it explores the role of foreign investors in facilitating business expansion, focusing on those based in the Gulf Co-operation Council (GCC) countries.
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The Hinrich Foundation Sustainable Trade Index 2018
Yet the enthusiasm in Asia for trade does not appear to have waned. This broad societal consensus behind international trade has enabled Asian countries to continue broadening and deepening existing trading relationships, for example, by quickly hammering out a deal for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2018 following the US’s withdrawal from its predecessor in 2017.
Asia, then, finds itself in the unique position of helping lead and sustain the global economy’s commitment to free and fair trade. It is in this context that the need for sustainability in trade is ever more crucial.
The Hinrich Foundation Sustainable Trade Index was created for the purpose of stimulating meaningful discussion of the full range of considerations that policymakers, business executives, and civil society leaders must take into account when managing and advancing international trade.
The index was commissioned by the Hinrich Foundation, a non-profit organisation focused on promoting sustainable trade. This, the second edition of the study, seeks to measure the capacity of 20 economies—19 in Asia along with the US—to participate in the international trading system in a manner that supports the long-term domestic and global goals of economic growth, environmental protection, and strengthened social capital. The index’s key findings include:
Countries in Asia, especially the richer ones, have broadly regressed in terms of trade sustainability. Hong Kong is developed Asia’s bright spot, recording a slight increase in its score and topping the 2018 index. Several middle-income countries perform admirably, led by Sri Lanka. For the economic pillar, countries generally performed well in terms of growing their labour forces as well as their per-head GDPs. For the social pillar, sharp drops for some countries in certain social pillar indicators contribute to an overall decline. For the environmental pillar, with deteriorating environmental sustainability in many rich countries, China, Laos and Pakistan are the only countries to record increases in scores. Sustainability is an ever more important determinant of FDI and vendor selection in choosing supply-chain partners. Companies are improving the sustainability of their supply chains by restructuring and broadening relationships with competitors and vendors.Post-Conflict Trade: Case studies and lessons for Ethiopia and Eritrea
Post-Conflict Trade: Case studies and lessons for Ethiopia and Eritrea
Introduction
The peace treaty between Ethiopia and Eritrea, signed in July 2018, brought to an end a war that had been ongoing but intermittent for more than 20 years and that cost more than 100,000 lives, displaced more than a million people, and diverted resources and attention away from the task of lifting large swathes of people in both countries out of poverty. It is the most recent of the world’s conflicts to arrive at peace, but as history has shown, a treaty alone is no guarantee that peace will hold.
Related content
The Hinrich Foundation Sustainable Trade Index 2018
Yet the enthusiasm in Asia for trade does not appear to have waned. This broad societal consensus behind international trade has enabled Asian countries to continue broadening and deepening existing trading relationships, for example, by quickly hammering out a deal for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in early 2018 following the US’s withdrawal from its predecessor in 2017.
Asia, then, finds itself in the unique position of helping lead and sustain the global economy’s commitment to free and fair trade. It is in this context that the need for sustainability in trade is ever more crucial.
The Hinrich Foundation Sustainable Trade Index was created for the purpose of stimulating meaningful discussion of the full range of considerations that policymakers, business executives, and civil society leaders must take into account when managing and advancing international trade.
The index was commissioned by the Hinrich Foundation, a non-profit organisation focused on promoting sustainable trade. This, the second edition of the study, seeks to measure the capacity of 20 economies—19 in Asia along with the US—to participate in the international trading system in a manner that supports the long-term domestic and global goals of economic growth, environmental protection, and strengthened social capital. The index’s key findings include:
Countries in Asia, especially the richer ones, have broadly regressed in terms of trade sustainability. Hong Kong is developed Asia’s bright spot, recording a slight increase in its score and topping the 2018 index. Several middle-income countries perform admirably, led by Sri Lanka. For the economic pillar, countries generally performed well in terms of growing their labour forces as well as their per-head GDPs. For the social pillar, sharp drops for some countries in certain social pillar indicators contribute to an overall decline. For the environmental pillar, with deteriorating environmental sustainability in many rich countries, China, Laos and Pakistan are the only countries to record increases in scores. Sustainability is an ever more important determinant of FDI and vendor selection in choosing supply-chain partners. Companies are improving the sustainability of their supply chains by restructuring and broadening relationships with competitors and vendors. The Global Illicit Trade Environment Index 2018
To measure how nations are addressing the issue of illicit trade, the Transnational Alliance to Combat Illicit Trade (TRACIT) has commissioned The Economist Intelligence Unit to produce the Global Illicit Trade Environment Index, which evaluates 84 economies around the world on their structural capability to protect against illicit trade. The global index expands upon an Asia-specific version originally created by The Economist Intelligence Unit in 2016 to score 17 economies in Asia.
View the Interactive Index >> Download workbook
Breaking Barriers: Agricultural trade between GCC and Latin America
The GCC-LAC agricultural trading relationship has thus far been dominated by the GCC’s reliance on food imports, specifically meat, sugar, and cereals. Over the past two years, however, there has been a notable decline in the share of sugar imported from LAC, and 2017 saw the biggest importers in the GCC—Saudi Arabia and the UAE—impose a ban on Brazilian meat.
Market players on both sides of the aisle are keen to grow the relationship further, but there are hurdles to overcome. In this report, we explore in greater depth the challenges that agricultural exporters and importers in LAC and the GCC face. We consider both tariff and non-tariff barriers and assess key facets of the trading relationship including transport links, customs and certification, market information, and trade finance.
Key findings of the report:
GCC will need to continue to build partnerships to ensure a secure supply of food. Concerns over food security have meant that the GCC countries are exploring ways to produce more food locally. However, given the region’s climate and geology, food imports will remain an important component of the food supply. Strengthening partnerships with key partners such as those in LAC, from which it sourced 9% of its total agricultural imports in 2016, will be vital to food security in the region.
There is a wider range of products that the LAC countries can offer the GCC beyond meat, sugar and cereals. Providing more direct air links and driving efficiencies in shipping can reduce the time and cost of transporting food products. This will, in turn, create opportunities for LAC exporters to supply agricultural goods with a shorter shelf life or those that are currently too expensive to transport. Exporters cite examples such as berries and avocados.
The GCC can engage small and medium-sized producers that dominate the LAC agricultural sector by offering better trade financing options and connectivity. More direct air and sea links can reduce the cost of transporting food products, making it viable for smaller players to participate in agricultural trade. The existing trade financing options make it prohibitive for small and medium-sized players too. Exporters in LAC suggest that local governments and private companies in the GCC can offer distribution services with immediate payments to smaller suppliers at a discount.
Blockchain technology is poised to address key challenges market players face in agricultural trade. Through a combination of smart contracts and data captured through devices, blockchain technology can help to reduce paperwork, processing times and human error in import and export processes. It can improve transparency, as stakeholders can receive information on the state of goods and status of shipments in real time. Finally, it can help with food safety and quality management—monitoring humidity and temperature, for instance, along the supply chain can help to pinpoint batches that may be contaminated, minimising the need for a blanket ban on a product.