How could international institutions, like the WTO, help to improve access to trade finance, specifically to help small and medium-sized enterprises (SMEs) access global value chains? In the fall of 2015, the 2030 Agenda for Sustainable Development including the Sustainable Development Goals (SDGs) and Addis Ababa Action Agenda (AAAA ) were adopted by the global community. The private sector has an important part to play in their implementation. Many of the global goals refer to support for small and medium-sized enterprises (SMEs), which provide two thirds of all formal jobs in developing countries . For example, SDG 8 (“Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all”), and 9 (“Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation”) are good news for SMEs. Empirical literature shows that countries which are strongly integrated into global value chains experience, on average, higher economic growth. In order to benefit from these growth opportunities and foster sustainable development throughout an economy, integrating SMEs into global value chains is essential. Becoming part of an international production process requires the support of trade financing to cover delays in payment and manage risks. This is particularly important for...
Written by Birgit Schmitz , Clara Brandi
Tags: 2030 Sustainable Development Agenda, Environment, Global Governance, Global Value Chains, 2030 Sustainable Development Agenda