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1、WORLD TRADE REPORT 2024Trade and inclusivenessHow to make trade work for allWhat is the World Trade Report?The World Trade Report is an annual publication that aims to deepen understanding about trends in trade,trade policy issues and the multilateral trading system.What is the 2024 Report about?The

2、 2024 World Trade Report explores the complex interlinkages between trade and inclusiveness across and within economies,and discusses how trade policies need to be complemented by appropriate domestic policies to make the benefits of trade more inclusive.Find out moreWebsite:www.wto.orgGeneral enqui

3、ries:enquirieswto.orgTel:+41(0)22 739 51 11-1-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLCONTENTSAcknowledgements and Disclaimer.2Abbreviations.4Foreword by the WTO Director-General.6Executive summary.8Chapter A.Introduction.18Chapter B.Trade and income convergence.301.Globalization has l

4、ed to income convergence,but some economies have been left behind.322.How did the integration of low-and middle-income economies into global markets boost income convergence?.353.Why have some developing economies gained little from globalization?.404.Future opportunities for economic convergence li

5、e in strategies to keep trade open and supported by complementary policies .555.Conclusions.63Chapter C.Trade and inclusiveness within economies.661.Trade raises overall incomes and reduces poverty without necessarily increasing inequality.682.Most people gain from trade but some suffer losses.713.F

6、airer trade policies and domestic complementary policies are crucial to make trade more inclusive.864.Inclusive trade is set to undergo transformation amid emerging global trends.915.Conclusions.94Chapter D.Inclusive trade and international cooperation.961.Ensuring that the WTO leaves no economy beh

7、ind.982.Making the WTO and trade more inclusive for people and firms.1183.Promoting inclusive development through enhanced international cooperation.1244.Conclusions.135Chapter E.Conclusions.138Opinion piecesLandry Sign,“Leveraging trade to foster a more inclusive digital economy in Africa”.58Stefan

8、ie Walter,“The complex interplay between inequality and attitudes about globalization”.90Giovanni Maggi,“Soft rules and the informational role of the WTO”.112Emanuel Ornelas,“Can regional and multilateral trade liberalization work in tandem?”.127Alonso Alfaro Urea,Benjamin Faber,Cecile Gaubert,Isabe

9、la Manelici,Jos Pablo Vsquez,“The promise and pitfalls of responsible sourcing in global value chains”.133Bibliography.141WORLD TRADE REPORT 2024-2-ACKNOWLEDGEMENTSThe World Trade Report 2024 was prepared under the general responsibility and guidance of Johanna Hill,WTO Deputy Director-General,and R

10、alph Ossa,Director of the Economic Research and Statistics Division.Director-General Ngozi Okonjo Iweala,Chief of Staff Bright Okogu and Trineesh Biswas from the Office of the Director-General provided valuable advice and guidance.The report was coordinated by Jose-Antonio Monteiro and Roberta Pierm

11、artini.Preparation of the chapters was led by Marc Bacchetta,John Hancock,Stela Rubnov and Victor Stolzenburg.The main authors of the report are Marc Bacchetta,Eddy Bekkers,Michael Blanga-Gubbay,John Hancock,Kathryn Lundquist,Gabrielle Marceau,Jos-Antonio Monteiro,Roberta Piermartini,Yves Renouf,Ste

12、la Rubnov,Victor Stolzenburg and Ankai Xu.Contributions were also provided by Marc Auboin,Graham Cook,Adrian Bourqui Costa,Barbara DAndrea,Florian Eberth,Emmanuelle Ganne,Jenya Grigorova,Nicolas Grimblatt,Tomasz Gonciarz,Dolores Halloran,Simon Hess,Bernard Kuiten,Tho Mbise,Wolf Meier-Ewert,Juan Pabl

13、o Moya Hoyos,Taufiqur Rahman,Daria Shatskova,Monia Snoussi-Mimouni,Gerard Pealosa,Thomas Verbeet,Claude Trolliet and the Cotton team of the Agriculture and Commodities Division.Valuable research assistance was provided by Uzochukwu Alutu,Waleed Hassan,Hryhorii Kalachyhin,Jeffrey Liu,Tinotenda Matair

14、e,Jil Mssler,Lema Rahimi,Alisha Saini,Fulvio Silvy,Aaron Tang,Yu Wang and Xinbei Zhou.The following divisions in the WTO Secretariat provided valuable comments on drafts of the report:Agriculture and Commodities Division(Dixit Diwakar,Jonathan Hepburn,Cdric Pene),Development Division(Shraddha Gautam

15、,Taufiqur Rahman,Daria Shatskova),Legal Affairs Division(Jorge Castro,Graham Cook,Sybilla Fries,Jenya Grigorova,Juan Pablo Moya Hoyos,Gerard Penalosa),Intellectual Property,Government Procurement and Competition Division(Anna Caroline Mller,Antony Taubman),Trade in Services and Investment Division(P

16、amela Apaza Lanyi,Elena Bertola,Antonia Carzaniga,Xiaolin Chai,Markus Jelitto,Juan Marchetti,Martin Roy),Trade and Environment Division(Rainer Lanz,Erik Wijkstrom),Rules Division(Seref Gokay Coskun,Clarisse Morgan)and Vision and Strategy(Willy Alfaro).Opinion pieces were provided by Alonso Alfaro Ur

17、ea(Universidad de Costa Rica),Benjamin Faber(University of California,Berkeley),Cecile Gaubert(University of California,Berkeley),Giovanni Maggi(Yale University),Isabela Manelici(London School of Economics),Emanuel Ornelas(Sao Paulo School of Economics),Landry Sign(Brookings Institution),Jos Pablo V

18、squez(London School of Economics)and Stefanie Walter(University of Zurich).In coordination with Andreas Sennekamp of the Institute for Training and Technical Cooperation Division,supported by Shraddha Gautam,contributions were also received from the following WTO Chairs:Azam Chaudhry,Nida Jamil and

19、Theresa Thompson Chaudhry(Lahore School of Economics),Nguyen Huong Giang and Pham Thi Cam Anh(Foreign Trade University),and Boopen Seetanah and Verena Tandrayen-Ragoobur(University of Mauritius).The following individuals from outside the WTO Secretariat provided useful comments during the initial dr

20、afting stage of the report:David Atkin,Kyle Bagwell,Emily J.Blanchard,Pinelopi Koujianou Goldberg,Douglas Irwin,Rka Juhsz,Giovanni Maggi,Nina Pavcnik,Robert W.Staiger,Claudia Steinwender and Daniel Trefler.The text production of the report was managed by Anne Lescure and Diana Dent of the Economic R

21、esearch and Statistics Division.The production of the report was managed by Anthony Martin and Helen Swain of the Information and External Relations Division.William Shaw and Helen Swain edited the report.Gratitude is also due to the translators in the Languages,Documentation and Information Managem

22、ent Division for the high quality of their work.-3-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLDISCLAIMERThe World Trade Report has been prepared under the responsibility of the WTO Secretariat.It does not necessarily reflect the positions or opinions of WTO members and it is without preju

23、dice to their rights and obligations under the WTO agreements.The opinions expressed and arguments employed herein are not intended to provide any authoritative or legal interpretation of provisions of the WTO agreements and shall in no way be read or understood to have any legal implications.The te

24、rms and illustrations used in this publication do not constitute or imply an expression of opinion by the WTO Secretariat concerning the status or boundaries of any territory.The opinion pieces written by the external contributors are the sole responsibility of their respective authors.WORLD TRADE R

25、EPORT 2024-4-ABBREVIATIONSAGOA African Growth and Opportunity ActAI artificial intelligenceEIF Enhanced Integrated FrameworkFAO Food and Agriculture Organization of the United NationsFDI foreign direct investmentGATS General Agreement on Trade in ServicesGATT General Agreement on Tariffs and TradeGD

26、P gross domestic productGPA Agreement on Government ProcurementGSP Generalized System of PreferencesGVC global value chainICT information and communications technologyIEA International Energy AgencyIEC International Electrotechnical CommissionIFC International Finance CorporationIFD Investment Facil

27、itation for DevelopmentILO International Labour OrganizationIMF International Monetary FundIP intellectual propertyISO International Organization for StandardizationIT information technologyITU International Telecommunication UnionLDC least-developed countryMFN most-favoured nationMNE multinational

28、enterpriseMSME micro,small and medium-sized enterpriseNFTC national trade facilitation committeeNTM non-tariff measurePPP purchasing power parityOECD Organisation for Economic Co-operation and DevelopmentR&D research and developmentRS responsible sourcingRTA regional trade agreementS&DT special and

29、differential treatmentSCM subsidies and countervailing measuresSEZ special economic zoneSOE state-owned enterpriseSPS sanitary and phytosanitarySTDF Standards and Trade Development FacilitySVE small,vulnerable economyTBT technical barriers to trade-5-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FO

30、R ALLTFA WTO Trade Facilitation AgreementTRIMs Trade-Related Investment MeasuresTRIPS Trade-Related Aspects of Intellectual Property RightsUN United NationsUNCTAD UN Trade and DevelopmentUNEP UN Environment ProgrammeUNFCCC United Nations Framework Convention on Climate ChangeUN-ESCAP UN Economic and

31、 Social Commission for Asia and the PacificWHO World Health OrganizationWIPO World Intellectual Property OrganizationWOAH World Organisation for Animal HealthWTO World Trade OrganizationWORLD TRADE REPORT 2024-6-FOREWORD BY THE WTO DIRECTOR-GENERALThe mission of the World Trade Organization,as set o

32、ut in the preamble to its founding Marrakesh Agreement,is to use trade as a means to raise living standards,create jobs and promote sustainable development.As we mark the WTOs 30th anniversary,it is clear that members have used the open and predictable global economy anchored in WTO rules and norms

33、to accelerate growth and development,with enormous positive impacts for human well-being.At the same time,many people and places have not shared adequately in these gains.This years edition of the World Trade Report,titled“Trade and Inclusiveness:How to make trade work for all”,looks at how the worl

34、d has been transformed through trade and at how we can use trade and other policies to improve the lives and livelihoods of people who remain on the margins of the global economy.Perhaps the biggest takeaway from the report is its reaffirmation of trades transformative role in reducing poverty and c

35、reating shared prosperity contrary to the currently fashionable notion that trade,and institutions like the WTO,have not been good for poverty or for poor countries,and are creating a more unequal world.But the second biggest takeaway is that there is much more we can do to make trade and the WTO wo

36、rk better for economies and people left behind during the past 30 years of globalization.The report describes how,over the past three decades,open global markets,underpinned by the WTO,gave rise to a boom in trade,enabling the productivity gains that came with greater specialization,scale and compet

37、ition.Lower-priced imports lifted household purchasing power,especially at the bottom of the income distribution.As more developing economies reformed at home and tapped into external demand for goods and services,their share in global trade increased sharply.With strong income growth in low-and mid

38、dle-income economies,the proportion of their populations living in extreme poverty fell from 40 per cent in 1995 to under 11 per cent in 2022.China was only part of this story:take it out of the equation,and the poverty rate in low-and middle-income economies declined from 36 per cent in 1996 to und

39、er 14 per cent in 2022.Never before have the living conditions and prospects of so many people improved so rapidly.During this period,for the first time since the Industrial Revolution two centuries earlier,poor countries began to narrow the per capita income gap with rich ones until the COVID-19 pa

40、ndemic halted this convergence by hitting the weakest economies hardest.Analysis showcased in this report shows that trade policy reforms played an important role in this growth story.Trade cost reductions increased global real GDP by 6.8 per cent between 1995 and 2020 and by 33 per cent in low-inco

41、me economies.Economies that took on more reform and liberalization commitments as part of their WTO accession negotiations saw a 1.5 percentage point boost to their annual growth rates,and also attracted more capital investment.And yet many poor countries,particularly in Africa,Latin America and the

42、 Middle East,remained on the margins of global trade,and were lagging behind on income convergence even before the pandemic.-7-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLFOREWORD BY THE WTO DIRECTOR-GENERALto close the digital divide,with investments in digital connectivity,infrastructure

43、 and digital skills,as well as in creating an enabling legal and regulatory environment.More broadly,countries need to act to ensure that as many of their citizens as possible can benefit from the opportunities created by open and rules-based international markets or are,at least,cushioned against t

44、he downsides of economic change,whether these are due to technological change or to increased import competition.This means investing in education and infrastructure,maintaining an appropriate competitive environment,implementing effective adjustment and redistribution policies including active and

45、passive labour market support,avoiding a race to the bottom on taxation,and so forth.The report makes the case that enhanced coherence across international organizations would magnify their collective impact on inclusiveness.At the WTO,we recognize these interlinkages,and have been working with part

46、ner international organizations to this end.For instance,the WTO and the World Bank have launched the“Digital Trade for Africa”project to support African economies efforts to build the necessary hard and soft infrastructure to take advantage of digital trade opportunities.The WTO and the Internation

47、al Trade Centre have launched a US$50 million global fund for women exporters in the digital economy.Further collaborative efforts could range from simple information exchanges to formal partnerships.I hope that readers and especially,policymakers will take to heart the lessons from this report.Main

48、taining open and predictable rules-based trade should be part of any countrys path to greater inclusiveness.There is no substitute for complementary domestic policies:to make trade work for more people,the wider economy needs to work for everyone.And we need strong and renewed political support for

49、multilateral cooperation to make trade work for all.Dr Ngozi Okonjo-IwealaDirector-GeneralIn some rich countries,many people felt left behind,unable to benefit from new opportunities and their frustration fuelled a political backlash against international trade.This report looks in detail at the var

50、ious factors that have held back individuals,firms and economies from capitalizing on,and adjusting to,international trade.These range from high trade costs that constrain countries access to foreign markets or cheap inputs,to the mobility and information frictions,skill mismatches and limited acces

51、s to finance that,too often,prevent people from seizing new opportunities.The report finds that trade is part of the solution to making the global economy more inclusive but also that trade policy alone is insufficient to achieve this goal.Protectionism,the report demonstrates,is not an effective pa

52、th to inclusiveness:restricting trade is typically an expensive way to protect jobs for specific groups within society,and can raise production costs,while inviting costly retaliation from disgruntled trading partners.A more promising path towards a global economy that works for everyone lies in wha

53、t we at the WTO have been calling“re-globalization”bringing more economies and communities from the margins to the mainstream of the global economy by helping them attract more trade-oriented investment.Fast-growing trade in digitally-delivered services and environmental goods offer exciting opportu

54、nities,with digital trade in particular lowering the bar for enabling underrepresented economies,small businesses and women entrepreneurs to connect to international markets.In an era when global supply chains have exhibited some vulnerabilities,deconcentrating and diversifying them to business-frie

55、ndly but underrepresented regions and economies can be part of fostering inclusiveness,while also building global resilience.The WTO remains a cornerstone for international trade cooperation,and new and prospective rules in areas such as investment facilitation for development,services domestic regu

56、lation and digital trade promise to advance the re-globalization process.But a key finding of this report is that rules for open and simplified trade are not enough to support inclusiveness between and within economies they need to be complemented with other policies at the domestic and internationa

57、l levels.For example,while global rules for digital trade at the WTO would create new commercial opportunities in the sector,extending the reach of those opportunities to everyone who could benefit would require action WORLD TRADE REPORT 2024-8-EXECUTIVE SUMMARYNever before have the living condition

58、s and prospects of so many people changed so dramatically in the space of a few decades.Since the establishment of the WTO 30 years ago,the world has witnessed a period of unprecedented income growth and convergence,as the wide gap in income levels between economies has narrowed.Between 1995 and 202

59、3,global per capita income,adjusted for inflation,increased by approximately 65 per cent,while the per capita income of low-and middle-income economies almost tripled.This impressive economic growth has significantly contributed to reducing poverty,malnutrition and infant mortality,and has improved

60、access to education,healthcare and electricity.A rapid expansion in international trade was a major factor in this impressive economic growth.Recent debates about trade,development and inclusiveness have sometimes minimized or overlooked these achievements.Growing concern about income inequality lev

61、els,which remain high in most economies,have led some to argue that globalization is detrimental to development and inclusiveness because it favours wealthy economies and individuals,leaving marginalized groups and regions behind.Recent crises,such as the COVID-19 pandemic,revealed genuine vulnerabi

62、lities in supply chains,and fuelled perceptions that globalization exposes economies to excessive risks.Despite the remarkable poverty reduction of recent decades,a staggering 712 million people worldwide still live in extreme poverty.Against this backdrop,the World Trade Report 2024 examines how in

63、ternational trade and trade policies contribute to making the global economy more inclusive.While trade has played a crucial role in promoting global economic convergence and reducing poverty,some individuals,regions and economies have been left behind by not being able to benefit to the same extent

64、 from trade.The report analyses how trade and trade policy can be part of the solution to make trade and the global economy more inclusive.Integrating open trade with other key policy areas is essential to spread the benefits of trade to all.At present,trade does not always benefit everyone;this is

65、not solely due to trade policies,but often to domestic policies as well.The Reports main conclusion is that reducing trade would diminish opportunities for growth and inclusiveness,but relying solely on trade and trade policy would not fully capture these opportunities.Complementary domestic policie

66、s are required to make trade more inclusive.Significant progress can be made at the national level to enhance the effectiveness of national policies for economic growth and inclusiveness,but international cooperation among economies can also be beneficial.In addition,increased coherence between the

67、WTO and other international organizations can help to magnify their collective impact on growth and inclusiveness.Chapter B delves into the challenges faced by certain economies in integrating into the global market and diversifying,and argues that sustained economic growth would be most effectively

68、 achieved through open trade supported by complementary policies that facilitate the economys structural transformation.Income convergence has progressed over the last 30 years,but it has slowed since the global financial crisis of 2007-08,and took a backward step during the COVID-19 pandemic.Betwee

69、n 1995 and 2023,per capita income in low-and middle-income economies,adjusted for inflation,almost tripled,from US$1,835 to US$5,337;in comparison,global per capita income increased by approximately 65 per cent,from US$7,050 to US$11,570.This unprecedented income convergence was associated with a st

70、eep increase in the participation of low-and middle-income economies in international trade(see Figure 1).Between 1995 and 2022,the share of low-and middle-income economies in global trade grew from 21 per cent to 38 per cent,while the share of trade between developing economies in world trade almos

71、t quadrupled,increasing from 5 per cent in 1995 to 19 per cent in 2021.However,this convergence process has slowed since the global financial crisis,as the average share of trade in GDP of low-and middle-income economies has remained relatively constant.Economic convergence even went into reverse du

72、ring the COVID-19 pandemic,which hit growth in poorer economies hardest.Trade reforms have accelerated the structural transformation of low-and middle-income economies,contributing to income convergence.Access to foreign markets for both exports and imports has boosted sectoral productivity through

73、greater economies of scale,competition,technology diffusion and innovation.Foreign direct investment(FDI)within global value chains(GVCs)has further contributed-9-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLEXECUTIVE SUMMARYto the diffusion of new technologies,innovation and production upg

74、rading,in particular in middle-income economies.Empirical evidence finds that unilateral trade reforms in developing economies have,on average,boosted economic growth by 1 to 1.5 percentage points,potentially resulting in a 10 to 20 per cent higher incomes over a decade.WTO simulation analysis furth

75、er suggests that trade cost reductions between 1995 and 2020 led to a 6.8 per cent increase in global real GDP over the period,with low-income economies growing by around 33 per cent.Income convergence and global economic integration have been uneven,leaving some economies behind.Between 1996 and 20

76、21,one third of initially low-and middle-income economies grew slower than the average high-income economy in income-per-capita terms,meaning that the income gap between them was expanding instead of narrowing(see Figure 2).These diverging economies,many of them least-developed countries(LDCs),repre

77、sent 13 per cent of the global population and are mainly in Africa,Latin America and the Middle East.Low-and middle-income economies that have lagged behind(i.e.,diverged or converged at a very slow rate)generally tend to engage less in international trade,receive less FDI,rely more on commodities,e

78、xport less complex products,and their trade tends to be concentrated on fewer partners.High trade costs and limited diversification hamper convergence.Some economies have not fully benefited from globalization because high tariffs at home and abroad,low regional integration,administrative red tape,p

79、oor physical and digital infrastructure,geographical remoteness and weak institutions have limited their integration into international markets,and with it,diminished their access to foreign technology and to affordable high-quality inputs.Exporters in poor economies often lack the capacity to compl

80、y with foreign market standards and technical regulations,and may struggle to utilize preferential access to large markets.Meanwhile,some other economies,despite more active participation in global trade,have failed to leverage trade for development due to a lack of diversification in their producti

81、on and export baskets.For example,economies that are specialized in capital-intensive extractive and primary sectors can be vulnerable to commodity price volatility,and can fail to achieve sustained growth because of macroeconomic instability.Impediments to structural transformation and a limited ab

82、ility to adopt foreign technologies can also prevent certain economies from reaping the gains from trade.Trade fosters growth by enabling the import of technology and know-how,and by leveraging external demand to shift workers and resources from subsistence work to more productive Figure 1:Positive

83、correlation between low-and middle-income economies convergence speed and trade participation,1996-2021-101234567840608010012014016019961998200020022004200620082010201220142016201820201997199920012003200520072009201120152013201720192021Speed of income convergenceSpeed of income convergence(percentag

84、e points)Trade participation(100=1996)Trade participationSource:Authors calculations,based on World Bank data on nominal GDP and real GDP per capita and WTO data on trade in goods and commercial services.Note:The figure displays the evolution over time of the population-weighted averages of trade pa

85、rticipation and income convergence speed between 1996 and 2021.The trade participation index is the share of goods and commercial services trade in GDP,adjusted for country size.Speed of income convergence is expressed as the difference between the average real GDP per capita growth rate of low-and

86、middle-income economies and the average growth rate in high-income economies.The light blue fill indicates a contribution of negative growth in high-income economies.The income groups are based on the 1995 World Bank classification.WORLD TRADE REPORT 2024-10-activities in tradable sectors.However,th

87、ese adjustment processes require functioning domestic capital,labour and land markets,macroeconomic stability and effective governance.An economys ability to integrate new technologies also depends on having policies that improve the business environment and attract FDI,and that aim to develop a ski

88、lled workforce and competitive local supply chains,as well as on having a well-functioning infrastructure for energy,telecommunications and transport.Geopolitical tensions,the technological revolution and climate change pose significant risks to economic convergence,both in terms of unwinding past a

89、chievements and endangering future prospects.Continued fragmentation of the global economy under geopolitical pressures would disproportionately impact low-income economies,which are furthest from the technological frontier and rely on access to foreign markets for sustained catch-up growth due to t

90、heir limited market size and innovation capabilities.Climate change is already harming economic growth prospects in the most vulnerable economies,including LDCs,small-island developing states,and landlocked developing economies,which have the fewest resources to recover from natural disasters and wh

91、ose populations are especially exposed to changing rainfall patterns.Meanwhile,automation and digitalization in manufacturing is eroding opportunities for the traditional manufacturing-led economic growth and employment model.Reducing trade costs is crucial to leverage future opportunities for trade

92、-led growth.Diversifying GVCs,increasing trade in services,and developing trade in renewable energies and in critical minerals for climate technologies can create new opportunities for low-and middle-income economies.It is essential to address trade costs in services,bridge the digital divide,and ta

93、ckle regulatory capacity and compliance issues if low-and middle-income economies are to take full advantage of these opportunities.Improving access for low-income economies to markets in both high-income and emerging economies,including by addressing tariff escalation on processed goods and trade-d

94、istorting subsidies,can also support economic growth in a world where an increasing share of trade is among developing economies.However,trade barriers arising from inadequate domestic infrastructure or institutional challenges also need to be addressed.Figure 2:Many low-and middle-income economies

95、are lagging behind,1996-2021-3-2-101462357Speed of income convergence(percentage points)Average trade participation gap(percentage points)-1.6-1.2-0.8-0.400.40.81.21.62.02.4LDCsLow-income economiesCommodity exportersUpper middle-income economiesLower middle-income economiesSource:Authors calculation

96、s,based on World Bank data on nominal GDP and real GDP per capita and WTO data on trade in goods and commercial services.Note:The figure displays the correlation between trade participation and convergence speed of economies that were low-or middle-income in 1995.The trade participation gap is the s

97、hare of goods and commercial services trade in GDP,adjusted for country size,expressed as a percentage difference from the income group average.Income convergence speed is the annualized real income per capita growth between 1996 and 2021 expressed as the difference from the average growth in high-i

98、ncome economies.Economies below the horizontal axis did not converge in their per capita incomes towards high-income economies.Economies on the left of the vertical axis had an average trade participation below their income group average.The income groups are based on the 1995 World Bank classificat

99、ion.The LDC group is based on the United Nations(UN)classification.-11-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLEXECUTIVE SUMMARYTrade policy needs to be complemented by policies that support structural transformation and technology absorption.For example,such policies may aim to create

100、 a business environment conducive to domestic and foreign investments,or to address specific business challenges and implement new policies,as in the case of special economic zones(SEZs).Technology absorption,including the domestic process of acquiring,developing and utilizing technological capabili

101、ties,can be enhanced through research and education policies.Other complementary policies may bridge information gaps between private and public sectors,or between local and foreign-owned firms,as well as raise awareness of new trade and investment opportunities.Inclusiveness across economies can su

102、pport inclusiveness within economies,and vice versa.Ensuring that the benefits of economic growth,including trade openness,are more widely distributed helps to establish a stable and relatively prosperous middle class,which in turn can help to support the overall development process in an economy by

103、 driving domestic consumption and encouraging entrepreneurial activity,economic diversification and social stability.In turn,this development process helps to achieve long-term economic growth and sustained poverty reduction.Chapter C analyses the factors that hinder individuals from accessing the g

104、ains from trade,and underscores the need to accompany trade openness with other domestic policies that allow the gains from trade to flow to individuals,and enable them to move to where those gains are.Trade has played a significant role in reducing poverty,especially in low-and middle-income econom

105、ies.Trade has raised incomes and led to higher growth,resulting in significant benefits for some of the most vulnerable groups within economies.For instance,over the last 30 years,poverty has declined sharply as trade has grown(see Figure 3).The poverty headcount ratio in low-and middle-income econo

106、mies fell from 40.3 per cent in 1995 to 10.6 per cent in 2022,while their share of trade in GDP doubled from about 16 per cent to 32 per cent.However,the COVID-19 pandemic halted progress in poverty reduction in many low-and middle-income economies as a result of widespread job losses,reduced income

107、s and constrained financial resources to acquire vaccines and establish social support systems to cope with the pandemic.Over the past 30 years,global income inequality has remained high,but it has evolved differently across economies.The average Gini index,a measure of inequality,across a large set

108、 of economies fell from about 0.58 prior to the global financial crisis to 0.57 in 2022.However,this global average masks the diverse evolution of income inequality between economies,with some of them experiencing significant decreases,while others have faced persistent or widening disparities.Moreo

109、ver,global income inequality remains high Figure 3:Substantial poverty reduction alongside increased trade openness in low-and middle-income economies,1995-20221995199619982000200220042006200820102012201420162018202019971999200120032005200720092011201520132017201920215%10%15%20%25%30%35%40%2022Pover

110、ty headcount ratio at US$2.15 a day(2017 PPP)(%of population)Exports of goods and services(%of GDP)Source:Authors calculations,based on World Bank data on poverty,exports and GDP.Note:The figure displays the evolution of the average share of poverty headcount at US$2.15 a day(2017 PPP)in population

111、and the average share of exports of goods and services in GDP for low-and middle-income economies over the period 1995-2022.The income groups are based on the 2022 World Banks classification.WORLD TRADE REPORT 2024-12-in absolute levels,with the level observed in 2020 comparable to that of the early

112、 1900s.The average share of income received by the top 1 per cent across all economies stands at 15.8 per cent.Gains from trade are unevenly distributed among individuals within the economy,but this does not inherently increase inequality.Trade openness increases the economys overall welfare,but is

113、sometimes blamed for also increasing inequality.While some economies became more unequal as they integrated into the global economy,in others,increased trade led to greater economic inclusion(see Figure 4).Trade openness can impact inequality differently through various channels.It can lead to wage

114、cuts and job losses in sectors exposed to increase competition from abroad,while also creating new job opportunities,including higher-paying positions,in expanding sectors that leverage the economys comparative advantages.Overall,trade supports a growing share of employment,with the average share of

115、 jobs dependent on exports reaching 28 per cent in 2019,marking a growth rate of over 20 per cent since 1995.These new,better paid jobs supported by trade can,in some cases,disproportionately benefit low-skilled workers.Similarly,the lower prices and consumer choice that come with trade openness can

116、 effectively increase the purchasing power of low-and middle-income consumers.While trade generally brings benefits to many,some groups of individuals may experience long-term losses.The ability of workers to move from lower-to higher-productivity jobs,and from declining sectors to growing ones,is t

117、he essential mechanism by which trade increases overall economic efficiency,promotes development and improves living standards.The impact of trade openness on workers depends on their industry,region,occupation and skillset.Individuals with lower incomes,workers with fewer skills,small business-owne

118、rs and some women are often more susceptible to labour market disruptions resulting from trade openness.In the absence of adequate policy responses,the effects of labour market disruptions can last for long periods,and can spill over into the local economy when affected individuals must reduce their

119、 spending on local goods and services.Mobility obstacles,reduce the gains from trade and exacerbate losses.Transitioning to expanding sectors is easier said than done for people affected by import competition,who face individual-specific and institutional obstacles.Affected individuals may lack the

120、skills or the financial means to adapt to import competition by seizing new job or business opportunities in growing sectors.For these reasons some women,people from low-income households and workers in the informal sector may find it difficult to transition to expanding formal industries.Poor trans

121、portation and digital networks can also hinder their ability to access new job markets,whether in person or online,especially for people living in remote areas.In addition,consumers in rural regions may not Figure 4:Weak correlation between trade openness and income inequality,20210.52.03.55.0Trade

122、openness index6.58.09.5Low-income economiesMiddle-income economiesHigh-income economies0.30.40.50.60.70.8(b)Gini coefficient and trade openness,2021(a)Gini coefficient,1995-2022Gini index1995199619982000200220042006200820102012201420162018202019971999200120032005200720092011201520132017201920210.480

123、.500.520.540.560.580.600.622022Gini indexLow-income economiesMiddle-income economiesHigh-income economiesGlobal averageSource:Authors calculations,based on World Inequality Database and World Bank data on trade openness.Note:The figure shows the correlation between the Gini index and trade openness

124、index.The Gini index is a measure of inequality,ranging from 0 for perfect equality to 1 for maximal inequality.The trade openness index corresponds to the share of exports and imports over GDP conditional on economy size.The analysis covers 157 economies,classified based on the 2021 World Bank inco

125、me group classification.-13-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLEXECUTIVE SUMMARYbenefit as much from the lower prices associated with trade openness because of high domestic trade costs and intermediaries market power.Trade policies that seek to mitigate the disruptive effects of

126、trade by protecting specific groups of individuals can be costly and can negatively impact other segments of the population.Trade protection for specific groups in a given industry can raise the production costs for other sectors that rely on protected but more expensive goods or inputs whether prod

127、uced domestically or imported.These costs can increase so much that they more than offset the positive employment impacts on directly protected import-competing industries.Such trade policies can also prove ineffective if affected trading partners retaliate and thereby threaten jobs supported by tra

128、de.In addition,measures such as export restrictions on food tend to be ineffective in shielding low-income consumers from external shocks because they can discourage farmers from producing more food,ultimately leading to shortages and higher costs for everyone,including the poor.Making trade more in

129、clusive is essential in a context of rising geopolitical tensions,technological revolution and climate change.Inclusiveness seeks to ensure that the benefits and opportunities of trade are accessible to all individuals and businesses.Trade brings benefits to many but the disparity between individual

130、s who can effectively adjust to trade and those who cannot creates a risk of widening inequality.This can fuel political tensions and potentially erode support for trade openness.But trade fragmentation resulting from geopolitical tensions ultimately limits economic opportunities and financial resou

131、rces,exacerbating poverty and inequality.While digitalization can promote inclusiveness by overcoming geographical remoteness,providing more time flexibility and enhancing the tradability of cross-border services,it could also disrupt labour markets in ways reminiscent of import competition in the p

132、ast.Marginalized individuals are particularly vulnerable to climate change due to their limited adaptive capacities.Meanwhile,measures such as reforming agricultural trade rules could help foster access to diverse and resilient food sources,even as weather patterns change.Removing discriminatory tra

133、de barriers affecting vulnerable groups could foster a more inclusive trading system.Certain restrictive trade policies can have a disproportionate impact on certain vulnerable groups,including low-income households,some women,and micro,small and medium-sized enterprises(MSMES).For instance,tariffs

134、tend to be higher in sectors with a higher proportion of female employees,and on products primarily consumed by women.Removing the gender bias of tariffs can contribute to making trade more inclusive.Similarly,adopting trade facilitation measures and improving the availability of trade finance can c

135、ontribute to reducing the fixed costs of participating in international trade,which is particularly beneficial for MSMEs given their limited financial resources.Trade policy can further support inclusiveness more effectively by helping to address distortions and barriers that hinder equal participat

136、ion in trade.Complementary domestic policies are required to make trade more inclusive.The decision of whether and how to address inclusiveness rests with each government.While there is no“one size fits all”approach,economic growth,institutional reforms and sustainable debt management are important

137、enablers of inclusiveness.Support for affected individuals in managing trade adjustment costs and maximizing the benefit of trade openness can be achieved through the adoption of a mix of labour market adjustment,competitiveness and compensation policies.Labour market policies,such as vocational tra

138、ining and unemployment benefits,can help affected workers during periods of job transition.In the medium term,education policies can help to develop a more skilled and mobile workforce.Competition policy to address excessive market power of certain large firms can help to ensure that consumers benef

139、it from lower prices due to trade openness.Other policies that increase competitiveness can also make the economy more responsive,such as affordable,efficient and reliable infrastructure and well-functioning financial markets.Taxation can help to fund support programmes for those adversely affected

140、by trade.Increasing the participation of vulnerable groups in the decision-making process can further contribute to ensuring that their specific needs and situations are taken into consideration.Chapter D discusses how international cooperation can make trade and complementary policies more effectiv

141、e at supporting inclusiveness across and within economies,and highlights how better coordination among international organizations could amplify their collective impact on inclusiveness.The WTO contributes to inclusiveness across economies by promoting an open,rules-based and predictable multilatera

142、l trading system.The predictable access to open global markets WORLD TRADE REPORT 2024-14-underpinned by the multilateral trading system has enabled some developing economies to catch up with more advanced economies.Membership of the General Agreement on Tariffs and Trade(GATT)/WTO,has,on average,bo

143、osted trade between members by 140 per cent.WTO commitments have also been found to reduce protectionist responses to economic shocks,thereby reducing trade policy uncertainty,which is crucial for attracting investments.WTO rules also contribute to improving governance through economic reform,thereb

144、y promoting sustained economic growth.Accession to the WTO contributes to economic growth by facilitating trade growth,fostering trade revenue stability and FDI through a predictable trade policy environment.Acceding WTO members commit to wide-ranging reforms of their trade policies,economic institu

145、tions and domestic governance,including by reducing tariffs and non-tariff barriers,regulating state-owned enterprises,protecting intellectual property rights,and establishing independent tribunals.Economies that underwent a reform process during their WTO accession experienced an average growth rat

146、e that was 1.5 percentage points higher than economies that underwent no such process;these economies continued to grow faster after their accession to the WTO(see Figure 5).WTO rules provide for various flexibilities aiming to enhance trade opportunities for developing economies,including LDCs.Thro

147、ugh successive negotiations,amendments and decisions,the WTO agreements now include over 155 special and differential treatment(S&DT)provisions targeted at developing economies,including 25 S&DT provisions that are specific to LDCs.These provisions are designed to safeguard the trade interests,offer

148、ing flexibility in commitments,providing longer periods for implementing WTO agreements and ensuring technical assistance.For instance,tariff preferences have expanded exports from developing economies and LDCs,despite the administrative costs associated with these preferences.Preference schemes hav

149、e also been found to raise exports to third-party economies through learning-by-exporting effects.Aid for Trade projects and similar technical assistance programmes available for developing economies have enhanced their export opportunities.Between 2006 and 2022,a cumulative total of US$648 billion

150、of Aid for Trade funding was allocated to promote the integration of developing economies and LDCs into the multilateral trading system,as well as to support economic convergence by addressing supply-side capacity and trade-related infrastructure constraints and building trade-related skills.Aid for

151、 Trade projects have been found to enhance an economys trade potential,by expanding established trade relations and by establishing new trade relations.In 2023,the WTO and the World Bank launched the“Digital Trade for Africa”project to leverage their synergies to provide technical assistance and cap

152、acity-building to ensure African economies digital infrastructure is supported by enabling regulatory frameworks.More recently,the World Bank and the WTO launched a joint programme to assist developing economies in services trade.Greater efforts to include the economies that have been left behind in

153、 the global trading system require a more effective and inclusive WTO.Amid geopolitical tensions it is important to uphold the operational capacities of the WTO.Addressing remaining trade barriers and facilitating the implementation of existing WTO agreements,assisting low-income economies in comply

154、ing with export market requirements,accelerating the accession to the WTO of new members can contribute to create new opportunities for further convergence.Despite progress,many developing members,including LDCs and small,vulnerable economies,face constraints in participating in the different WTO fu

155、nctions.Strengthening the participation of all WTO members Figure 5:Higher economic growth in WTO members with more extensive commitments-20%-5-4-3-2-10Years prior to and following GATT/WTO accession123456798100%20%40%60%80%Average change in GDP per capita relative to GATT/WTO entry yearNon-Article

156、XII membersArticle XII membersSource:Authors calculations,based on Penn World Table and Brotto et al.(2024).Note:The figure shows the average change in GDP per capita in relation to the year of GATT/WTO entry for both Article XII WTO members and non-Article XII members.GDP per capita growth is based

157、 on expenditure-side real GDP expressed in 2017 US$purchasing power parity.Article XII members refers to members that acceded the WTO after 1995 under Article XII of the GATT.Non-Article XII refers to GATT contracting members that became WTO members without having to go through the Article XII proce

158、ss.-15-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLEXECUTIVE SUMMARYin negotiations,deliberations and committee work is essential to ensure a fairer representation,enhance mutual understanding,and promote more effective and inclusive decision-making.Timely trade monitoring,along with an ef

159、fectively functioning dispute settlement mechanism accessible to all members,is also crucial for achieving a more inclusive WTO.Greater international trade cooperation is also necessary to address evolving challenges in areas crucial to the future of trade,such as services,digital and green trade.Ef

160、forts to address trade costs in services,which are higher than those for trade in goods,can reduce business uncertainty and create opportunities in the cross-border supply of services and digital trade.Greater coordination and experience-sharing on digital trade regulations can support the adoption

161、of best practices and strengthen domestic and global digital regulatory frameworks.In this regard,under the Joint Initiative on E-commerce,a group of WTO members recently stabilized the text of an agreement governing some aspects of digital trade.Even though low-income economies receive only a small

162、 share of FDI,they nevertheless stand to benefit significantly from improvements in investment facilitation,as set out in the plurilateral Investment Facilitation for Development(IFD)Agreement,which was recently finalized by 125 WTO members.Coordinating trade-related climate change policies can also

163、 prevent trade tensions resulting from carbon border policies and climate support measures that some developing economies perceive as a hindrance,however inadvertent,to their export capabilities and hence an impediment to their economic convergence.Finding the right balance between binding commitmen

164、ts and effective flexibilities is essential to further inclusiveness across economies.Various proposals have been put forward by some WTO members to modify S&DT provisions.There is,however,no consensus among WTO members.While there is no“one-size-fits-all”approach to flexibilities,commitments should

165、 be aligned with a members capacity to implement them,while recognizing that certain carve-outs can undermine some of the benefits of a rule-based system.The S&DT provisions of the Trade Facilitation Agreement(TFA)and of the recent plurilateral IFD Agreement mark a significant shift from the WTOs tr

166、aditional S&DT approach by introducing a conditional link between commitment requirements and implementation capacity,allowing developing and least-developed country members to set their own implementation timetables based on their capacity.These types of S&DT provisions could serve as a blueprint,b

167、y providing relevant policy space for developing economies without undermining the predictability and stability of trade policies achieved through credible commitments.Concerns about the distributional impacts of trade have led to a growing number of trade agreements including provisions explicitly

168、related to inclusiveness within economies.Provisions on labour standards,such as those set by the International Labour Organization(ILO),covering issues like child labour and discrimination in the labour market,are included in an increasing number of regional trade agreements(RTAs).Some relatively r

169、ecent detailed provisions on inclusiveness in RTAs specifically relate to disadvantaged groups,such as women,vulnerable workers,indigenous people and persons with disabilities(see Figure 6).Other RTA provisions promote corporate social responsibility or relate to specific types of firms,including MS

170、MEs and artisanal companies.While many provisions on inclusiveness promote cooperation activities,some other provisions establish specific level playing field disciplines or exemptions.WTO rules also contribute to inclusiveness within economies.Although WTO agreements are mainly concerned with inclu

171、siveness across economies,the preamble of the Marrakesh Agreement Establishing the World Trade Organization recognizes that WTO members should conduct trade relations with a view to raising standards of living and real income.WTO disciplines aim mainly to minimize the negative effects of trade polic

172、ies on trading partners to increase the economic benefits from more trade openness.This,in turn,contributes to inclusiveness within economies by fostering economic growth and reducing poverty.For instance,a number of provisions in the WTO Agreement on Agriculture aim to contribute to food security,w

173、hich is of particular importance to low-income households.More recently,the Declaration on Services Domestic Regulation,adopted by a group of WTO members in 2021,prohibits gender discrimination when authorizing the supply of a service.Nothing in the WTO agreements restricts the use of non-discrimina

174、tory complementary policies for inclusiveness.The decision of whether and how to address inclusiveness rests with each government.Many distortions that lead to unequal effects from trade-opening are often rooted in structural domestic factors,that are best addressed through domestic complementary po

175、licies,such as labour,education or taxation policies.Trade-related instruments that some governments may choose to use for inclusiveness WORLD TRADE REPORT 2024-16-purposes,such as tariffs,subsidies and export restrictions,are subject to WTO disciplines to avoid potential negative spillovers on othe

176、r economies and potential retaliatory measures that would undermine overall inclusiveness.For instance,the WTO also provides for safeguards that can be applied to protect some workers in specific domestic industries in response to import surges,as well as trade remedy measures to offset the harmful

177、effects of market distortions.WTO members are increasingly discussing how to make trade more inclusive by fostering the greater participation of women and MSMEs in trade.The recognition of the specific constraints of MSMEs and businesses owned by women in integrating global trade and leveraging trad

178、e for economic empowerment has resulted in the establishment of the WTO Informal Working Groups on MSMEs and on Trade and Gender.The Informal Working Group on MSMEs provides a forum to exchange information and experiences on ways in which WTO members could better support the participation of MSMEs i

179、n global trade.The Informal Working Group on Trade and Gender aims to enhance womens participation in international trade by sharing best practices and exploring how women can benefit from the Aid for Trade initiative,among others.Discussions on inclusive trade have also gained significant importanc

180、e in other WTO committees and working groups.A number of trade-related technical and capacity-building initiatives in the WTO are contributing to making trade more inclusive.Poverty reduction,womens economic empowerment and MSME participation are increasingly being integrated into Aid for Trade,as w

181、ell as into projects of the Enhanced Integrated Framework(EIF)and Standards and Trade Development Facility(STDF),multilateral partnerships supported by the WTO.Trade finance facilitation programmes can also significantly benefit and enhance international trade for MSMEs and women traders.In early 20

182、24,the WTO and the International Trade Centre(ITC)launched a“Women Exporters in the Digital Economy”(WEIDE)Fund to assist women in accessing opportunities in international trade and the digital economy.The WTO could help to address inclusiveness issues within an economy by means of its transparency

183、and monitoring functions.More information on the effects of certain trade policy measures on vulnerable groups could help address potential discriminatory effects.Collecting relevant disaggregated data and conducting analysis could inform these discussions.For instance,the trade and gender dimension

184、 has arisen in discussions of the Trade Policy Review Body(TPRB),mainly through the voluntary provision of relevant information in trade policy review reports prepared by members and their Figure 6:Increasing numbers of provisions on inclusiveness in RTAs,1990-202100.30.20.10.40.50.60.7Inclusiveness

185、 RTA indexNorth-North RTANorth-South RTASouth-South RTA1990200020102020Source:Authors calculations,based on a mapping of provisions on inclusiveness in RTAs.Note:This figure shows the evolution of provisions on inclusiveness in RTAs between 1990 and 2021.The inclusiveness RTA index ranges from 0 to

186、1 and considers 33 explicit types of provisions addressing different dimensions of inclusiveness,including human rights,workers,MSMEs,poverty,gender,indigenous communities,people with disabilities,and other minorities and vulnerable groups.“North”is defined as high-income economies,whereas“South”is

187、defined as low-and middle-income countries,according to the 2022 World Banks income group classification.-17-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLEXECUTIVE SUMMARYstatements at TPRB meetings.Identifying strategies and mechanisms to mitigate and minimize the adverse effects of export

188、 restrictions of essential products on importing economies could also contribute to food security and resilience.The implementation of WTO commitments can also become more inclusive if vulnerable groups are actively involved.The increased participation of representatives from vulnerable groups in do

189、mestic deliberative trade processes can help to ensure that their perspectives and interests are taken into account when certain WTO provisions are implemented.The TFA serves as a noteworthy example of how trade policy can become more inclusive,by involving representatives from groups that may face

190、discrimination in policy implementation in national trade facilitation committees,and providing them with access to relevant trade information,as well as to capacity-building and training opportunities.Sustained government support and resources are,however,essential if national trade facilitation co

191、mmittees are to achieve more effective and inclusive trade reforms.The multifaceted“trade and”challenges faced today demand a robust and coordinated“WTO and”approach to further support inclusiveness across and within economies.While the WTO remains a cornerstone for international trade cooperation,m

192、any trade-related developmental and inclusive policies are also addressed by other international organizations.Under the“Decision on achieving greater coherence in global economic policy-making”,the WTO already collaborates with the International Monetary Fund(IMF)and the World Bank.The WTO also wor

193、ks with many other international organizations.Enhancing collaboration among international organizations could help to leverage synergies between trade policies and complementary policies,and international organizations could mutually reinforce each other in fostering inclusiveness across and within

194、 economies.It is important to support coordinated efforts to strengthen capacity to implement WTO agreements by addressing regulatory,skills and infrastructure gaps,as well as to address competition,corporate taxation and corruption issues.These collaborative efforts could take various forms,from pa

195、rtnerships to simple exchanges of information.The WTO could serve as a platform for international organizations,governments,businesses and non-governmental organizations to further collaborate and share information on specific trade-related issues.WORLD TRADE REPORT 2024-18-AIntroductionGlobal trade

196、 is often accused of creating a more unequal world,but in fact the opposite is happening.Billions of people in developing economies are catching up to the more advanced economies,as millions of people in the advanced economies continue to move ahead.This global economic convergence is only possible

197、because the world has become more open and integrated expanding access to new markets,new technologies and new models for achieving rapid,sustained and inclusive growth.Yet there are still economies and groups within economies that have yet to share in expanding growth,or whose growth has stalled,be

198、cause they have been unable to harness their trade potential and comparative advantages.This is the result partly of supply constraints,partly of poor connectivity,and partly of trade barriers and distortions,as well as of a lack of coherence across the key policies needed to drive trade-led growth.

199、The slowing pace of global economic integration over the last decade and a half and the danger that rising protectionism could push integration into reverse could make it even harder for these economies to finally harness the trade behind rapid growth.This report argues that much more can and should

200、 be done domestically and internationally to achieve more truly inclusive global trade.A INTRODUCTION-19-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLOur world is only partly globalizedCreating a more inclusive global economy requires more and better trade,not less trade.The word“globalizat

201、ion”often conjures up images of a world economy being uniformly woven together by trade,transport and technology,but this picture is only partly accurate(Ohmae,1999).While many economies and people are already deeply interconnected and others are in the process of rapidly linking up other economies,

202、regions and groups have not been able to successfully integrate into the global economy,or are not benefitting from the integration they have achieved so far.These varying levels of global integration largely mirror varying levels of wealth,living standards and technological progress around the worl

203、d with the richer and more advanced economies often being the most open and integrated,and fast-emerging economies also moving in this direction,but many low-income economies,and even some middle-income economies,only partially integrated into the global economy,and at risk of being left even furthe

204、r behind by the worlds ongoing economic and technological progress.As a result,todays unevenly globalized world is also an unequal world.A diverging global economy has become a converging oneTwo hundred years ago,the world was a more equal place largely because most people were equally poor.The rich

205、est economy in the world in 1820,Great Britain,had a per capita income only about five times larger than the poorest economy at the time,Nepal(Milanovic,2023).The Industrial Revolution,which started roughly a half century before,marked a turning point,sparking an unprecedented surge of economic grow

206、th and technological progress that upended the relatively static and level global economic landscape that had prevailed up until then.This great economic leap forward was limited at first starting with Great Britain,expanding to the rest of Europe,and then expanding again to Europes off-shoots in No

207、rth America and elsewhere around the globe.These“early industrializers”continued to race ahead of the rest of the world throughout the 19th and first half of the 20th centuries.This rapid growth of the more advanced“West”,which represented just 15 per cent of the worlds population,and the slow or la

208、ck of growth in the rest of the world,which represented 85 per cent of humanity,has been called the“Great Divergence”because it generated ever-widening disparities in development,living standards and economic power worldwide(Huntington,1996;Pomeranz,2000).By 1980,the United States,by then the worlds

209、 richest economy,had a per capita income over 100 times greater than the poorest economies in parts of Asia and Africa.But over time,the impact of the Industrial Revolution continued to radiate outwards,like ripples on a pond,and each new wave of global economic development was more extensive and in

210、volved millions more people than its predecessor.The period after the Second World War saw Japan and the“Asian Tigers”(Hong Kong(China),the Republic of Korea,Singapore and Chinese Taipei)the fast-globalizing economies of that era rapidly catch up with developed economies in the West,even as advanced

211、 industrial economies redoubled their lead on the poorer and less developed economies that were being left ever further behind.For example,in 1953,the Republic of Korea had a per capita GDP,adjusted for inflation,of US$67,making it one of the poorest countries in the world;by 2023,its per capita GDP

212、 had reached more than US$34,000,roughly the same as that of the European Union.The period after the 1980s saw an even larger share of the developing world begin its own process of rapid industrialization and economic modernization,helping to lift a billion of people out of poverty and to narrow the

213、 wealth and living standards gap with the West(World Bank and WTO,2015).China,with its 1.3 billion people,has seen its economy grow at an average of 9 per cent per year for the past four decades.While such large emerging economies capture much of the worlds attention,the“new globalizers”also encompa

214、ss economies of all sizes and in all regions,such as Cambodia,Ethiopia,Peru,Poland,Qatar and Uganda.This newest,fastest,and largest phase of economic catch-up has been termed the“Great Convergence”because,for the first time since the start of the Industrial Revolution,most of the worlds population i

215、s becoming relatively more,not less,equal as billions of people rapidly move up the growth,technology and development ladder(Spence,2011;Mahbubani,2013).In the 1980s,France,Japan,the United Kingdom,the United States and other developed economies accounted for more than 60 per cent of the worlds GDP,

216、while developing economies accounted for less WORLD TRADE REPORT 2024-20-than 40 per cent.Today,those shares have reversed:Brazil,China,Indonesia and other developing economies account for almost 60 per cent of the worlds GDP,while developed economies account for just over 40 per cent.While the per

217、capita output of emerging economies is still well behind that of advanced economies,the gaps are narrowing at an accelerating rate.China is the most striking example.In 1990,China had just 7 per cent of the GDP of the United States measured at market exchange rates,but by 2022,Chinas GDP,at US$18.3

218、trillion,was 73 per cent of the GDP of the United States,a ten-fold increase.Chinas per capita income is now roughly US$13,000,approximately 17 per cent of US per capita income compared with less than 2 per cent in 1990 and at current growth rates it could reach half of US levels by 2050.Other fast-

219、growing developing economies are following a similar trajectory.In the same way that the economic rise of the United States triggered a global economic boom in the second half of the 19th century,and the ascent of Japan and the“Asian Tigers”helped to drive even greater growth after 1945,the rapid de

220、velopment of four billion-plus people in the global South and East together with their growing demands for technology,capital,advanced machinery and services will inevitably drive further growth and income gains in the developed West as well.According to Hufbauer and Hogan(2023),US gains from engagi

221、ng in world markets since 1950 amounted to almost US$2.6 trillion in 2022.Over the past decade and a half,China alone has accounted for 35 per cent of global nominal GDP growth,while the United States has accounted for 27 per cent(Prasad,2023).As a result,both high-income and fast-emerging economies

222、 have seen their living standards steadily advance(see Figure A.1).Over the last 40 years,Figure A.1:Significant real GDP convergence but more limited average real GDP per capita convergence,1995-2022010203040Real GDP(2015 trillion US$)Converging to high-incomeHigh-incomeNon-converging to average hi

223、gh-income1995199820042010201620222001200720132019010203040506050Average real GDP per capita(2017 PPP thousand US$)19951997200120052009202119992003200720112013201520172019Source:Authors calculations,based on World Bank data on real GDP and real GDP per capita.Note:The figure displays the evolution of

224、 real GDP(in 2015 US$)and real GDP per capita in purchasing power parity(PPP)(in 2017 US$).The non-converging group includes economies that were low-or middle-income in 1995 and that did not grow as fast as high-income economies between 1996 and 2021(measured by real GDP per capita growth).Conversel

225、y,the converging group includes low-or middle-income economies that grew faster than high-income economies during the same period.The income groups are based on the 1995 World Bank classification.A INTRODUCTION-21-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLUS per capita income has increas

226、ed six-fold,while Swedes are 30 times wealthier today than they were 200 years ago(Roser,2024).The global diffusion of technology also benefits everyone because,as Paul Romer famously observed,knowledge is expanded,not reduced,when it spreads(Romer,1986).Many of todays leading-edge technologies,such

227、 as artificial intelligence(AI),quantum computing,robotics and biotechnologies,are still generated in developed economies.But as some emerging economies become more advanced,they are fast becoming technology innovators and leaders too in telecommunications,aerospace,clean energy and other advanced t

228、echnologies adding to the positive feedback loop that is accelerating global economic progress.The result is a world economy that is growing,developing and converging at an unprecedented rate,although developing economies average per capita output is still significantly lower than that of advanced e

229、conomies(see Figure A.1).According to World Bank data,in 1995,global per capita output,adjusted for inflation,amounted to roughly US$7,050.Even after setbacks such as the Asian financial crisis(1997-98),the global financial crisis(2007-09),the COVID-19 pandemic,and numerous regional conflicts and wa

230、rs,global per capita output had increased by 65 per cent to over US$11,570 by 2023.And if growth rates continue at current trends,global output could further double by mid-century(Goldman Sachs,2023).While economic growth is not the only condition for development,it is a necessary condition which he

231、lps to explain why much of the worlds population is also making enormous strides in reducing poverty,malnutrition and infant mortality,and in improving access to schooling,healthcare and electricity.Between 1950 and 2019,global literacy increased by a third,from 56 per cent of the worlds population

232、to over 86 per cent,and womens literacy increased even more dramatically,from just 45 per cent to almost 83 per cent(UNESCO,2024).According to World Bank data,global average life expectancy has increased by over a third,from 48 years to 73 years.And global per capita income,adjusted for inflation,ha

233、s almost quadrupled,from US$2,161 to US$11,570.Since 1995 alone,the poverty headcount ratio in low-and middle-income economies fell from 40.3 per cent in 1995 to 10.6 per cent in 2022.Never before have the living conditions and prospects of so many people changed so dramatically and rapidly in histo

234、ry(UNDP,2013).Fostering growth and trade are two sides of the same coinThis“Great Convergence”was only possible because the world economy has grown more open and integrated,driven mainly by declining transport and communications costs,but also by decreasing trade barriers and increasing economic coo

235、peration,all underpinned by a rules-based international economic system.In the same way that steamships,railways and telegraph cables began to link the world economy together in the 19th century,container ships,jet airplanes and the internet have woven an even more integrated global economy in the 2

236、0th and early 21st centuries.The invention of the shipping container alone has been a major driver of globalization.By 2021,it cost less to move a container from Los Angeles to Shanghai half-way around the world than from Los Angeles to San Diego just 200 km down the road(Shiphub,2021),although ther

237、e is a risk that recent geopolitical and environmental disruptions may change that.The cost of overseas telecommunications is approaching zero,fuelling an explosion of digital services trade,including online education,telemedicine and on-line distribution.China could not have become the new“workshop

238、 of the world”without the transoceanic“conveyer belt”that containerization has provided(Economist,2013).While transport and communications technologies have been important drivers of global economic integration,international economic cooperation and rule-making aimed at lowering trade barriers,creat

239、ing a level economic playing field,and the avoidance of beggar-thy-neighbour currency wars has also played a central role.The gold standard and an expanding European network of bilateral trade agreements underpinned the first age of globalization in the 19th century,just as new multilateral economic

240、 institutions(the International Monetary Fund,the World Bank and the General Agreement on Tariffs and Trade(GATT),succeeded by the WTO)and a series of multilateral and regional trade liberalization initiatives underpinned the resumption of globalization after 1945.Average trade-weighted applied tari

241、ffs fell by almost 40 per cent after the Second World War and have fallen by over two-thirds in the last three decades,from 6.9 per cent in 1996 to 2 per cent in 2022.Today some 60 per cent of world trade now flows tariff-free,while another fifth is subject to tariffs of less than 5 per cent.WORLD T

242、RADE REPORT 2024-22-The combination of declining physical and policy-induced trade costs has helped to fuel an exponential growth in world trade.Between 1950 and 2022,annual merchandise trade grew at a rate of 5.4 per cent a year,translating into an extraordinary 45-fold expansion.More recently,new

243、sectors of world trade have been expanding even faster.Services trade has grown 6.8 per cent annually since 1990,digitally delivered services have grown at 8.2 per cent a year since 2005,and renewable energy goods trade(including solar panels and wind turbines)has grown fastest of all,by 10.3 per ce

244、nt a year,more than double other goods trade(4.9 per cent),since 2005(see Figure A.2).With this expansion of trade has come a widening and deepening of global integration.Although slowing trade growth since 2008 seems to signal a slowdown in economic opening and integration worldwide,the global trad

245、e-to-GDP ratio rose from around 5 per cent in 1950,to 20 per cent in 1995,to over 29 per cent in 2023,underscoring the central role of trade in weaving together todays increasingly interconnected and interdependent world economy.The worlds fastest-growing economies are also some of the most open and

246、 integratedAlmost all of the fast-developing economies over the past 40 years indeed,over the past two centuries have used integration into the global trading system to drive sustained growth.While these economies may not have opened up in the same way,transformed at the same speed,or adopted the sa

247、me policies,the common thread running through all their experiences is the shift towards more outward-oriented,trade-led economic growth strategies.In other words,openness and growth have gone hand-in-hand(see Figure A.3).A more open and integrated world economy has enabled some developing economies

248、 to catch up with and converge on more advanced economies in several critical ways.One is by leveraging global demand.Many low-and middle-income economies are unable to generate high growth by relying on domestic demand alone.Increased access to global markets for their exports Figure A.2:Export gro

249、wth of environmental and digital trade significantly higher than other goods and services,2005-23100501502002503003504004505005502005200620082010201220142016201820212020200720092011201520132017201920222023Average annual growth rates(index 2005=100)Renewable energy goods exportsDigitally delivered se

250、rvices exportsOther goods and services exportsSource:Authors calculations,based on UNCTAD and WTO data and Trade Data Monitor(TDM)data for 2023.Note:The figure displays the evolution of the average annual export growth rate of environmental goods(specifically,light-emitting diodes(LEDs),solar and ot

251、her non-electric water heaters,and wind turbines),digitally delivered services(specifically,services traded across borders through computer networks),and other goods and services exports.Estimates for 2023 are preliminary.A INTRODUCTION-23-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLhas al

252、lowed them to leverage comparative advantages,exploit economies of scale,and overcome the constraints imposed by small and relatively poor domestic markets or remote geographical locations all of which has helped to increase efficiency,boost productivity and fuel rapid economic growth,particularly i

253、n sectors with high export potential.Another related factor driving their rapid growth has been access to foreign direct investment(FDI).As global markets have opened up and trade costs have fallen,multinational enterprises have“unbundled”the production process and shifted its various stages to rela

254、tively more cost-efficient locations around the planet.This rise of global value chains(GVCs)effectively world factories has created a positive feedback loop:more open trade has encouraged more FDI,as export capacity is strengthened and upgraded;and more FDI has encouraged more trade,as GVCs expand

255、and grow more competitive.Upwards of two-thirds of world trade now takes place within globe-spanning multinational enterprises or with their suppliers.GVCs have enabled the integration of many developing economies into the global economy in other important ways:by allowing them to link up with estab

256、lished trade networks and to specialize in a specific product without having to first develop a comprehensive industrial base.In the early 19th century,Great Britain required a complex combination of domestic production factors,including steam power technology,cheap coal,advanced metallurgy,efficien

257、t agriculture,a relatively sophisticated financial system and an increasingly urbanized workforce,to kick-start its industrialization(Van Neuss,2015).Singapores rapid industrialization after 1965 depended largely on one key domestic asset:a highly skilled,innovative and entrepreneurial workforce,wit

258、h other main factors of production,such as food,energy,machinery and natural resources,being imported(Economist,2015).This expanding global web of trade,investment and production has also helped developing economies to dramatically increase access to the most critical growth input of all,technology

259、either in the form of imported products,such as machinery,software or solar panels,or as imported services,such as product designs,production techniques,supplier training or overseas education.Sometimes the simple cross-border flow of ideas has been enough to inspire local innovation and invention(B

260、uera and Oberfield,2020;Cai,Li and Santacreu,2022;Sampson,2023).Figure A.3:Positive correlation between trade participation and per capita GDP growth,1995-2021-2%0%4%6%2%8%Average annual GDP growth(1995-2021)Average trade participation index(1995-2021)0.511.522.533.544.55Low-income economiesHigh-inc

261、ome economiesUpper middle-income economiesLower middle-income economiesSource:Authors calculations,based on World Bank data on GDP and trade.Note:The trade participation index is the share of goods and commercial services trade in GDP,adjusted for the country size.The income groups are based on the

262、2022 World Bank classification.WORLD TRADE REPORT 2024-24-Either way,the globalization of technology has made it easier,cheaper and quicker for many developing economies to industrialize,helping them to accelerate learning curves and,in some cases,leapfrog stages of development(Baldwin,2019).Trade i

263、s necessary for fast growth,but is not sufficientEconomies that have successfully harnessed trade to drive faster growth have also implemented a range of domestic policies that have helped them to leverage their comparative advantages,facilitate connectivity to global markets,promote economic adjust

264、ment and cushion the adverse impacts of structural change.At a minimum,they have provided the basic“operating system”that markets need to function efficiently political and macroeconomic stability,effective financial and legal systems,and a transparent,efficient and non-discriminatory regulatory env

265、ironment.They have also implemented complementary policies aimed at promoting FDI,encouraging competitive markets,protecting intellectual property and advancing sustainable development,recognizing that trade now increasingly takes place within complex global production networks and that integrating

266、into the networks requires joined-up policies and strategies.And fast-globalizing economies have usually invested heavily in infrastructure,adjustment assistance,the active upskilling and re-skilling of workers,and other“public goods”to create an enabling environment for trade-led growth and to help

267、 shift industries into more value-added production and exports.Trade policies and policies related to macroeconomics,development,and inclusiveness are interlinked and can reinforce each other.By ensuring these policies are not only well-designed but coherent,trade can be better leveraged for sustain

268、ed growth.More inclusive trade can,in turn,enhance the effectiveness of many other complementary policies,potentially creating a positive cycle of improvement.Trade encourages structural reform,increases productivity and spurs innovation,helping to expand economic opportunities.Old industries may de

269、cline but newer,more dynamic industries emerge;old jobs may disappear,but other better,higher-paying jobs are created.While the overall Figure A.4:Positive correlation between changes in trade openness and changes in employment,1995-2022-20%-10%-15%0%5%10%-5%20%15%Change in employment to population

270、ratio(1995-2022)Change in trade openness index(1995-2022)-50%-25%0%25%50%75%100%125%Low-income economiesHigh-income economiesUpper middle-income economiesLower middle-income economiesSource:Authors calculations,based on World Bank data on trade openness and International Labour Organization(ILO)data

271、 on employment to population ratio.Note:The figure displays the percentage point changes in trade openness index and employment to population ratio between 1995 and 2022.The income groups are based on the 2022 World Bank classification.A INTRODUCTION-25-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK

272、 FOR ALLcorrelation between trade and total employment tends to be marginally positive(see Figure A.4),millions of often higher-paid jobs are supported by trade.As the economy grows and prices fall,more resources become available for investments in education,training and adjustment assistance,which

273、can,in turn,help more people to take part in and benefit from economic growth.This virtuous circle can help to increase equality of opportunity,promote social inclusion and reduce extreme wealth disparities,especially among marginalized groups,if appropriate complementary policies are put in place.O

274、ver the past 30 years,income inequality has evolved differently across economies,with some experiencing significant decreases,but many others facing persistent or widening disparities.Global income inequality remains high in absolute levels,with the level observed in 2020 comparable to that of the e

275、arly 1900s.Wealth inequality has also remained consistently high over the past three decades,although the share of personal wealth owned by the top 1 per cent decreased slightly,from 31.4 per cent in 1995 to 30.6 per cent in 2022.These trends have led some to argue that international trade exacerbat

276、es inequality by only benefitting wealthy economies and individuals,while leaving marginalized groups and regions behind.While some economies have grown more unequal as they have opened up and integrated into the global economy,many of the worlds most successful and durable trade powers especially a

277、dvanced economies such as Germany or the Netherlands are also some of the most equal in terms of income distribution and living standards.There is growing evidence that economies that have been less successful at sharing the cost and benefits of trade,and have experienced rising inequality,are findi

278、ng it more difficult to sustain political support for more trade-opening,and face a growing backlash at home to globalization(Pastor and Veronesi,2018;Acharya,2022).This suggests not only that openness and equity can go hand-in-hand,but that prioritizing greater inclusion may be a critical part of a

279、ny sustainable trade-led growth strategy.Trade agreements can also help governments to implement and anchor pro-growth domestic reforms.Participating in a rules-based trading system incentivizes governments to uphold their market-Figure A.5:Greater poverty reduction in WTO members than non-WTO membe

280、rs,1990-2022-40%-30%-20%-10%0%10%Average change in poverty headcount ratiorelative to reference yearYears prior to and following joining the WTO,or years prior to and following 2000 for non-WTO membersNon-WTO membersWTO members-5-4-20-3-11246358107920%Source:Authors calculations,based on World Bank

281、data on poverty headcount ratio.Note:The figure displays the average change in the percentage of the population living on less than US$2.15 a day at 2017 purchasing power-adjusted prices relative to the poverty headcount ratio in the year in which a given GATT/WTO member joined the WTO.For non-WTO m

282、embers,the reference year is set to 2000 due to data availability.Alternative reference years for non-WTO members do not change the trend.The average poverty reduction rate is calculated by taking into account the proportion of individuals living in poverty in each economy relative to the global pop

283、ulation of individuals in poverty during the reference year.WORLD TRADE REPORT 2024-26-opening commitments and to increase transparency and information-sharing,and can help to strengthen domestic institutions,to reinforce accountability,and to support and promote the rule of law.This can dramaticall

284、y improve the environment for doing business in an economy by curtailing the scope for inconsistency and arbitrariness in policymaking.Creating a more stable,predictable and level economic playing field benefits all economic actors,but it is especially empowering for the smallest and least powerful

285、ones,such as micro,small and medium-sized enterprises(MSMEs),women entrepreneurs,small-scale farmers and artisans.Recent WTO analysis has found that WTO members experienced a faster drop in poverty than non-WTO members(see Figure A.5),and that developing economies acceding to the WTO that implemente

286、d more ambitious domestic reforms and made deeper trade opening commitments during their WTO accession negotiations than other GATT/WTO developing members grew,on average,1.5 per cent faster than members that did not(Brotto et al.,2024).These complex and inter-related policy challenges underscore th

287、e critical role that effective government plays in successfully harnessing trade for sustained inclusive growth.Successful trade-led growth strategies have,in particular,benefited from governments ability to provide long-term stability,policy consistency and coherent direction(Spence,2011).Indeed,th

288、e pace and scope of global economic change today and the need for economies to continually adjust and adapt have raised the policy bar,rendering the roles of governments and other institutions more,not less,important,and their policy successes or failures more,not less,consequential.While much of th

289、e world is converging,part of it is divergingMany economies have experienced rapid growth and development in recent decades,but others are stalled or falling behind.Over the past 30 years,one third of economies classified as low-or middle-income grew at a slower rate than the average high-income eco

290、nomy.These diverging economies,representing 13 per cent of the worlds population,are primarily in Africa,Latin America and the Middle East.These economies are failing to keep up with a rapidly expanding world economy for varied and complex reasons,but a common feature is their inability either to us

291、e trade as a pathway to integration into the global economy,or to leverage their existing trade access to move up the value-added ladder,diversify exports,and drive rapid growth.For example,the 46 least-developed countries(LDCs)representing over 880 million people only account for 1 per cent of worl

292、d trade,a share which has been stagnant since 1995,and that actually shrank to less than 1 per cent over the last two years.Some of the trade challenges these economies face are external:high tariffs that can penalize poor economies exports;complex and fast-changing health and technical standards th

293、at resource-constrained economies often struggle to meet;and a growing global subsidies race that is distorting markets and tilting the economic playing field in favour of high-income and emerging economies.But other trade obstacles these economies face are internal.For example,import restrictions,i

294、nefficient customs procedures,or poor transport and communications infrastructure can drive up their trade costs.A lack of coordination across trade-related policy areas,such as investment or trade financing,can reduce or negate the advantages of opening up to trade.Insufficient investment in produc

295、tive capacity,technological upgrading and skills development,can also prevent many low-income economies,and even some middle-income economies,from diversifying out of agriculture and extractive sectors into more value-added exports.As in the past,economic progress relies on adapting to changes in th

296、e economy.The ability of workers to transition from lower-to higher-productivity jobs,and from declining sectors to growing ones,is one of the key mechanisms by which trade promotes development and improves living standards.Today,a major difference is the speed,scale and scope of changes in the labo

297、ur market caused by technological progress and open trade,as new goods and services,and even new industries emerge,requiring that others adapt or face decline.For individuals,it may be necessary to relocate to find new employment,and this may involve significant financial or administrative obstacles

298、.As economies become more knowledge-driven,securing new employment may depend on having more specialized skills,which may require retraining or earning additional certifications.Individuals with lower incomes,workers with fewer skills,small business-owners and some women may lack the skills,resource

299、s or flexibility to adjust to new trade opportunities,and are more likely to be adversely affected by economic change.In the absence of adequate policy responses,the gap between those who can adapt to and benefit from economic change,and those who cannot,may widen,increasing inequality.A INTRODUCTIO

300、N-27-TRADE AND INCLUSIVENESS:HOW TO MAKE TRADE WORK FOR ALLMoving towards more inclusive globalization presents opportunities and challengesThe ability of more economies to harness inclusive trade-led growth will be a critical factor in determining whether the world economy continues to converge or

301、begins to diverge again.The good news is that todays global economy offers more opportunities for trade-led growth than ever before.The bad news is that the global economic system is itself facing new tensions that could restrict or roll back these new opportunities and cut short“the Great Convergen

302、ce”.One positive development is the expansion of global demand.Developing economies are no longer dependent on access to advanced-economy markets alone to drive trade-led growth;increasingly,they can look to export to fast-expanding emerging markets as well.These emerging economies are generating en

303、ormous new demand for food,energy,minerals and manufacturing inputs which is in turn pulling other developing economies into their slipstream.And as these developing economies begin their own economic lift-off,they become new trade growth engines as well.South-South trade that is,trade among the eme

304、rging and developing economies of the“Global South”has grown from 8 per cent of world trade in 1995 to around 25 per cent today,and at current trends it could reach 30 per cent by 2030(see Figure A.6).Another positive development is that technological advances continue to improve global connectivity

305、 and drive down trade costs.New investments in transport infrastructure are expanding global trade routes and making them more efficient,helping to link up even the most distant or landlocked suppliers to foreign markets.Trade corridors between Asia and North America,and between Asia and Europe,now

306、surpass the transatlantic trade corridor between North America and Europe,while trade corridors between Africa and Asia or Latin America and Africa are growing in importance.The spread of digital networks underpinned by the internet,lower-cost telecommunications and new digital platforms is changing

307、 the way economies connect to the global economy in even more fundamental ways.Some developing economies and groups within economies,including small businesses owned by women,that have often been excluded from global services markets in the past because services trade typically require geographical

308、proximity Figure A.6:Increasing trade between low-or middle-income economies,1995-2022Between high-income and low-or middle-income economiesBetween high-income economiesBetween low-and/or middle-income economies0%20%50%80%60%70%90%100%19951996199820002002200420062008201020122014201620182020199719992

309、00120032005200720092011201520132017201920222021Total bilateral trade40%30%10%Source:Authors calculations,based on WTO data on merchandise bilateral trade.Note:The figure displays the composition of global merchandise trade flows by income group.The analysis excludes trade within the European Union(i

310、.e.,intra-EU trade).The income groups are based on the 1995 World Bank classification.WORLD TRADE REPORT 2024-28-are fast becoming services exporters,because new digitally delivered services,such as online distribution,telemedicine and online business services can be delivered from any location on t

311、he planet that has internet access.This new services trade can offer developing economies advantages that goods trade does not:it can be less capital-intensive,and less constrained by distance and infrastructure requirements(WTO,2019).Indeed,some developing economies are bypassing the industrializat

312、ion phase altogether and are leapfrogging from agriculture to services exports(Nayyar,Cruz and Zhu,2021).One of the most significant positive changes is that developing economies can now look to other developing economies for inspiration and models for how to pursue trade-led growth strategies.In th

313、e same way that“early globalizers”such as Japan,the Republic of Korea and Singapore helped to blaze a trail for other Asian economies in the 1980s and 1990s,todays“new globalizers”are,in turn,providing powerful examples for the next generation of developing economies seeking to leverage trade for fa

314、ster growth.However,the ability to harness trade for even wider global growth hinges fundamentally on the world economy remaining open.Here there is cause for concern.Trade openness and integration have slowed over the past decade and a half following a series of shocks to the global economy such as

315、 the global financial crisis,the COVID-19 pandemic and wars in Ukraine and the Middle East and the rise of geoeconomic and geopolitical tensions.If todays open world economy starts to fragment as a result of rising protectionism,economic nationalism and restrictive trade blocs,it will harm the growt

316、h prospects of all economies,but the poor and economically marginalized will suffer the most(WTO,2023c).The structure of this reportThis years World Trade Report explores how trade has helped to widen the circle of global growth,why some economies,regions and groups are still being left behind,and w

317、hat can be done domestically and internationally to ensure that millions more people can harness trade to accelerate growth,“level up”with the rest of the world,and create a more inclusive global economy.While the concept of inclusiveness can vary based on context and perspective,the core idea,in te

318、rms of international trade,is to reduce barriers and obstacles that currently prevent marginalized economies,regions and groups(including minorities,vulnerable people and workers)from participating fully in and benefitting from global markets.The report makes the case that trade is a key part of the

319、 solution to creating a more inclusive global economy,but that it requires more coherent and mutually supportive policies at the national and international level.Chapter B focuses on the impact of trade on inclusiveness across economies.It explores how trade has driven rapid growth across several ke

320、y emerging and developing economies since the mid-1990s,significantly accelerating convergence and narrowing inequality.It also examines why some economies and regions have so far failed to harness trade as a driver of sustained growth,either because they not sufficiently integrated into the global

321、economy,or because they are limited to exporting low-value-added or highly volatile commodities.Common challenges that these economies and regions face include high trade costs,weak institutional capacity,geographical isolation and infrastructural deficits.This chapter points out that some trade pol

322、icies can hinder economic convergence,while others may not achieve the desired effects.It also argues that geopolitical tensions,a failure to bridge the digital divide and disjointed efforts to address environmental crises can create new challenges for poor economies trying to integrate into the glo

323、bal economy,that only concerted international action and cooperation can overcome.The focus of Chapter C is on the impact of trade on inclusiveness within economies.It highlights that,while economies as a whole have benefited from open trade and global integration,certain groups of individuals(such

324、as low-skilled workers in some sectors and certain groups of women),types of firms(such as MSMEs)and regions(such as rural areas)have not.Factors that have prevented people from participating in and benefitting from trade include limited mobility,low skills,restricted access to capital,technological

325、 barriers,inadequate infrastructure,and political and legal obstacles.This chapter points out that some types of trade policies,such as protective tariffs or export restrictions,can fail to achieve the desired effects,or even exacerbate inequality.The chapter emphasizes that open trade remains essen

326、tial to reduce poverty,but also warns of the risks that food insecurity,the digital divide,and winner-take-all economies can cause for the poor.Chapter D reviews the role of the WTO and international cooperation in addressing inclusiveness both across A INTRODUCTION-29-TRADE AND INCLUSIVENESS:HOW TO

327、 MAKE TRADE WORK FOR ALLand within economies.The WTO already promotes economic growth and inclusiveness by fostering rules-based,non-discriminatory and predictable trade relations and by improving governance through credible economic reform.This chapter notes that many complementary policies for dev

328、elopment and inclusiveness require credible,transparent and coherent trade policy to be more effective,and vice versa.It discusses how making further progress in economic convergence and inclusiveness,requires balancing credible WTO commitments and relevant flexibilities(i.e.,special and differentia

329、l treatment for developing members),while implementing complementary policies and strengthening international cooperation.It calls for reducing trade costs,accelerating the accession to the WTO of new members,ensuring equitable dispute resolution,and providing technical assistance to strengthen memb

330、ers capacity to implement WTO commitments and related-domestic policies.Enhancing inter-agency cooperation can further help to leverage synergies between trade and complementary policies for development and inclusiveness,and to promote policy coherence and mutual supportiveness.WORLD TRADE REPORT 20

331、24-30-BTrade and income convergenceThe past quarter of a century has witnessed an unprecedented level of income convergence,accompanied by the integration of many developing economies into global markets.Despite this,some economies have been left behind.This chapter discusses how the participation o

332、f developing economies in global trade and investment flows can accelerate structural transformation and enhance productivity growth,thereby helping low-and middle-income economies to achieve the economic growth that ensures convergence with high-income economies.The chapter also examines why some e

333、conomies have taken little advantage of globalization,and focuses on barriers to maximizing the gains from trade participation,such as trade costs and commodity dependence.Finally,the chapter discusses how recent trends in the global economy are shaping future opportunities and challenges for developing economies to leverage trade and foreign direct investment for economic growth,and which policie