Part 2: What can businesses do if globalisation unravels?
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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.
Part 1: The end of globalisation?
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.
Going Global: Are graduates prepared for a global workforce?
In a recent EIU study, 63% of graduates say they were rewarded by employers for their international experiences during higher education. Furthermore, two thirds say that international experience has provided them with an edge in their careers. But why is it that only 34% of students with access to international experience actually take advantage of it? Learn more by watching the above video.
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The giving chain: How philanthropy is driving progress in Asian education
Education is widely seen as the main driver of long-term social impact in Asia, and educational philanthropists are increasingly targeting innovative projects that help marginalised and deprived communities.
How to contribute wisely to education in Asia? Read the report >>
Sparking economic progress through education
Through Q&As with luminaries in a number of sectors across the world, interviews aim to surface insights for policy makers, business leaders and other stakeholders as they consider actions to improve the quality of, and access to, education, to fortify their country’s economic, social and geopolitical fabric.
The series is supported by The International Commission on Financing Global Education Opportunity, which just presented a report urging governments to expand access to education to the UN Secretary-General, Mr Ban Ki-moon, and the Commission Co-Convenors during the UN General Assembly in New York.
The report, entitled "The Learning Generation: Investing in Education for a Changing World,” underscores the importance of quality education to address the social, economic, and security challenges of our time. For more on the report please go to educationcommission.org
Going Global: Are graduates prepared for a global workforce?
75% of graduates who had any form of international experience while at university believe they became more culturally aware as a result. Why is this important? Now more than ever, employers value the kinds of non-technical skills that are learned through study abroad and other internationally focused programs. In fact, graduates who have international experience have found more success finding a job after six months than those without it. So why aren't more students taking advantage of international opportunities during higher education?
More from this series
white paper
Going Global: Are graduates prepared for a global workforce?
78% of graduates say their university should provide international experience, but how many take the
video
Going Global: Are graduates prepared for a global workforce?
In a recent EIU study, 63% of graduates say they were rewarded by employers for their international experiences during
Related content
Fostering exploration and excellence in 21st century schools
The giving chain: How philanthropy is driving progress in Asian education
Education is widely seen as the main driver of long-term social impact in Asia, and educational philanthropists are increasingly targeting innovative projects that help marginalised and deprived communities.
How to contribute wisely to education in Asia? Read the report >> Sparking economic progress through education
Through Q&As with luminaries in a number of sectors across the world, interviews aim to surface insights for policy makers, business leaders and other stakeholders as they consider actions to improve the quality of, and access to, education, to fortify their country’s economic, social and geopolitical fabric.
The series is supported by The International Commission on Financing Global Education Opportunity, which just presented a report urging governments to expand access to education to the UN Secretary-General, Mr Ban Ki-moon, and the Commission Co-Convenors during the UN General Assembly in New York.
The report, entitled "The Learning Generation: Investing in Education for a Changing World,” underscores the importance of quality education to address the social, economic, and security challenges of our time. For more on the report please go to educationcommission.org
The changing biopharma risk equation
The changing biopharma risk equation
Pharmaceutical companies are in an expansive mode. With rapid advances being made in the development of new therapies, including stem-cell derived therapies and gene therapies, and a growing cohort of potential customers in the burgeoning middle classes of emerging markets, expansion into both new product categories and geographic regions is a priority for most companies.
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Value-based healthcare in Sweden: Reaching the next level
The need to get better value from healthcare investment has never been more important as ageing populations and increasing numbers of people with multiple chronic conditions force governments to make limited financial resources go further.
These pressures, along with a greater focus on patient-centred care, have raised the profile of VBHC, especially in European healthcare systems. Sweden, with its highly comprehensive and egalitarian healthcare system, has been a leader in implementing VBHC from the beginning, a fact that was underscored in a 2016 global assessment of VBHC published by The Economist Intelligence Unit.
This paper looks at the ways in which Sweden has implemented VBHC, the areas in which it has faced obstacles and the lessons that it can teach other countries and health systems looking to improve the value of their own healthcare investments.
Breast cancer patients and survivors in the Asia-Pacific workforce
With more older women also working, how will the rising trend of breast cancer survivorship manifest in workplace policies, practices and culture? What challenges do breast cancer survivors face when trying to reintegrate into the workforce, or to continue working during treatment? How can governments, companies and society at large play a constructive role?
This series of reports looks at the situation for breast cancer survivors in Australia, New Zealand and South Korea. It finds that while progress has been made, more needs to be done, particularly in South Korea, where public stigma around cancer remains high.
The Cost of Silence
Cardiovascular diseases levy a substantial financial toll on individuals, their households and the public finances. These include the costs of hospital treatment, long-term disease management and recurring incidence of heart attacks and stroke. They also include the costs of functional impairment and knock-on costs as families may lose breadwinners or have to withdraw other family members from the workforce to care for a CVD patient. Governments also lose tax revenue due to early retirement and mortality, and can be forced to reallocate public finances from other budgets to maintain an accessible healthcare system in the face of rising costs.
As such, there is a need for more awareness of the ways in which people should actively work to reduce their CVD risk. There is also a need for more primary and secondary preventative support from health agencies, policymakers and nongovernmental groups.
To inform the decisions and strategies of these stakeholders, The Economist Intelligence Unit and EIU Healthcare, its healthcare subsidiary, have conducted a study of the prevalence and costs of the top four modifiable risk factors that contribute to CVDs across the Asian markets of China, Australia, Hong Kong, Japan, Singapore, South Korea, Taiwan and Thailand.
Download the report to learn more.
The changing biopharma risk equation
The changing biopharma risk equation
Pharmaceutical companies are in an expansive mode. With rapid advances being made in the development of new therapies, including stem-cell derived therapies and gene therapies, and a growing cohort of potential customers in the burgeoning middle classes of emerging markets, expansion into both new product categories and geographic regions is a priority for most companies.
Related content
Value-based healthcare in Sweden: Reaching the next level
The need to get better value from healthcare investment has never been more important as ageing populations and increasing numbers of people with multiple chronic conditions force governments to make limited financial resources go further.
These pressures, along with a greater focus on patient-centred care, have raised the profile of VBHC, especially in European healthcare systems. Sweden, with its highly comprehensive and egalitarian healthcare system, has been a leader in implementing VBHC from the beginning, a fact that was underscored in a 2016 global assessment of VBHC published by The Economist Intelligence Unit.
This paper looks at the ways in which Sweden has implemented VBHC, the areas in which it has faced obstacles and the lessons that it can teach other countries and health systems looking to improve the value of their own healthcare investments.
Breast cancer patients and survivors in the Asia-Pacific workforce
With more older women also working, how will the rising trend of breast cancer survivorship manifest in workplace policies, practices and culture? What challenges do breast cancer survivors face when trying to reintegrate into the workforce, or to continue working during treatment? How can governments, companies and society at large play a constructive role?
This series of reports looks at the situation for breast cancer survivors in Australia, New Zealand and South Korea. It finds that while progress has been made, more needs to be done, particularly in South Korea, where public stigma around cancer remains high. The Cost of Silence
Cardiovascular diseases levy a substantial financial toll on individuals, their households and the public finances. These include the costs of hospital treatment, long-term disease management and recurring incidence of heart attacks and stroke. They also include the costs of functional impairment and knock-on costs as families may lose breadwinners or have to withdraw other family members from the workforce to care for a CVD patient. Governments also lose tax revenue due to early retirement and mortality, and can be forced to reallocate public finances from other budgets to maintain an accessible healthcare system in the face of rising costs.
As such, there is a need for more awareness of the ways in which people should actively work to reduce their CVD risk. There is also a need for more primary and secondary preventative support from health agencies, policymakers and nongovernmental groups.
To inform the decisions and strategies of these stakeholders, The Economist Intelligence Unit and EIU Healthcare, its healthcare subsidiary, have conducted a study of the prevalence and costs of the top four modifiable risk factors that contribute to CVDs across the Asian markets of China, Australia, Hong Kong, Japan, Singapore, South Korea, Taiwan and Thailand.
Download the report to learn more.
The changing biopharma risk equation
However, this class of product—ranging from well-established large-molecule drugs to truly novel therapies—poses major challenges because of their scientific complexity and sophisticated development requirements. Furthermore, expanding the drug pipeline isn’t the only growth strategy most companies are pursuing: They are also planning to expand geographically and expect to face various risks doing so, including unfamiliar regulatory environments, shifts in pricing and customers’ ability to pay.
More from this series
white paper
The changing biopharma risk equation
Pharmaceutical companies are in an expansive mode. With rapid advances being made in the development of new therapies,
Related content
Value-based healthcare in Sweden: Reaching the next level
The need to get better value from healthcare investment has never been more important as ageing populations and increasing numbers of people with multiple chronic conditions force governments to make limited financial resources go further.
These pressures, along with a greater focus on patient-centred care, have raised the profile of VBHC, especially in European healthcare systems. Sweden, with its highly comprehensive and egalitarian healthcare system, has been a leader in implementing VBHC from the beginning, a fact that was underscored in a 2016 global assessment of VBHC published by The Economist Intelligence Unit.
This paper looks at the ways in which Sweden has implemented VBHC, the areas in which it has faced obstacles and the lessons that it can teach other countries and health systems looking to improve the value of their own healthcare investments.
Breast cancer patients and survivors in the Asia-Pacific workforce
With more older women also working, how will the rising trend of breast cancer survivorship manifest in workplace policies, practices and culture? What challenges do breast cancer survivors face when trying to reintegrate into the workforce, or to continue working during treatment? How can governments, companies and society at large play a constructive role?
This series of reports looks at the situation for breast cancer survivors in Australia, New Zealand and South Korea. It finds that while progress has been made, more needs to be done, particularly in South Korea, where public stigma around cancer remains high. The Cost of Silence
Cardiovascular diseases levy a substantial financial toll on individuals, their households and the public finances. These include the costs of hospital treatment, long-term disease management and recurring incidence of heart attacks and stroke. They also include the costs of functional impairment and knock-on costs as families may lose breadwinners or have to withdraw other family members from the workforce to care for a CVD patient. Governments also lose tax revenue due to early retirement and mortality, and can be forced to reallocate public finances from other budgets to maintain an accessible healthcare system in the face of rising costs.
As such, there is a need for more awareness of the ways in which people should actively work to reduce their CVD risk. There is also a need for more primary and secondary preventative support from health agencies, policymakers and nongovernmental groups.
To inform the decisions and strategies of these stakeholders, The Economist Intelligence Unit and EIU Healthcare, its healthcare subsidiary, have conducted a study of the prevalence and costs of the top four modifiable risk factors that contribute to CVDs across the Asian markets of China, Australia, Hong Kong, Japan, Singapore, South Korea, Taiwan and Thailand.
Download the report to learn more.
Simon Baptist on shipping and globalisation
Simon Baptist on shipping and globalisation
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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.
The ICT Globalisation Index
Read Report in English |
More from this series
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.