A kaleidoscopic perspective of trade development...(16/8)

...instead of promoting trade for one economy in most cases where national TSIs do, the UN agency specializes its global trade promotion with a special focus in the developing and the transitional economies, and with its accredited statue under the multilateral system, the agency demonstrates its capacity to facilitate export trade in these areas. Yet, it also shares many challenges faced by the TSIs and the state governments. From an administrative concern, it is important for the UN to stay accountable to its stakeholders and donors in resource allocation; performance measurement; execution of multilateral initiatives like the MDGs and A4T; promotion strategy and political neutrality etc. In view of more pragmatic tasks the UN has to achieve, it encounters the same challenges all the TSIs strive for like effective outreach to exporters and traders; timely and relevant dissemination of market research and indicators to the SMEs; relationship management with state authorities and export agencies; means to build export capacity for traders in the developing countries, particularly in the LDCs and so on.

I would say trade promotion is never an easy task, not to mention the obstacles trade promoters face during moments of economic downturn and resurging protectionism and anti-globalization. International trade is a mutual understanding among trading partners. I am interested in the different norms and practices implemented by different economies on trade development and liberalization. From what I learnt from my working experience, the differentiated political circumstances, readiness of trade connectedness and supply-side infrastructure of the economies usually determine the extent of openness to trade development, and a closer look of their political perspective and cultural heritage aids a better comprehension of the varied approaches to trade business and the corresponding institutional set-up. While international trade is considered to be a means to combat poverty and foster global development and growth, what the trade facilitators would need is a sense of comprehension and a stronger support of multi-lateral cooperation among the states in a global sustainable development.

In Hong Kong, free trade policy has been deeply rooted since its transition from a fishery village in the mid 19th century into a highly service-oriented cosmopolitan city in Asia at present. Its importance in trade and investment has been well recognized by the businessmen and traders, and robust trade figures substantiate its significant role in global trade. Hong Kong has the world’s busiest airport in terms of international cargoes and the 2nd highest per capita holding of foreign exchange. The city is also the world’s second most competitive economy and is the world’s largest IPO market, notwithstanding its tiny area of only 1,100 plus square kilometres (smaller than Faroe Islands, Comoros or Mauritius). As a Special Administrative Region, Hong Kong, though under the territory of China, remains a degree of autonomy in economic development and political governance.

The interesting ‘governance model’ attracts discussions in the academic field. As a citizen of Hong Kong, I am fascinated by the ‘New Growth Theory’, advocated by Paul Romer, which examines the development model in the developing economies. He recommended setting up of ‘Charter Cities’ in the developing countries and quoted Hong Kong as an example to substantiate his development model. Whether the establishment of these Charter Cities can officially be agreed among the sovereignty states, Romer’s study on the importance for the developing economies to accelerate trade infrastructure development and promote a constructive flow of labour forces to participate in the development of Charter Cities is worthwhile studying.