Governments and the private sector need to address weaknesses in global trade and supply chains, not get rid of them, as some critics suggest.
The lack of credit for small and medium-sized enterprises to participate in global trade stifles growth and makes supply chains more vulnerable.
Steven Beck, the Head of ADB’s Trade and Supply Chain Finance Program, answers questions about the trade finance gap in Asia and around the world, based on ADB’s Trade Finance Gaps, Growth, and Jobs Survey.
We need to know more about who is involved and what is going on at all points in the supply chain process. Digitalization is key to helping us achieve this level of transparency.
Greater use of bar codes can make global supply chains more robust and enhance the ability to verify social and environmental standards.
Greater transparency is required to make global trade and supply chains more reliable and to ensure sustainability and social standards are met. But that is easier said than done.
The pandemic laid bare the fragility of global supply chains and the need to increase access to trade finance to spur economic growth and create jobs.
The crisis with a large financial services company does not signal that supply chain finance is another exotic financial instrument that could trigger disaster.
Paper-based trade is a drag on the efficiency of the global trading system. Digitization will make trade and supply chains more robust, and the world more secure.
The massive Regional Comprehensive Economic Partnership presents a major trade opportunity for Asia but there are still critical details that need to be worked out.