World Economics Forum (WEF) latest Global Enabling Trade Report, which measures trade in 117 countries based on Enabling Trade Index (ETI), consists of four commercial factors which are
- Transport and communications
The gap is decreasing between the best and worst countries, but is still significant.
Singapore tops the top ten list with the index 5.97 of a maximum of 7 and Hong Kong finishes on the number 2 spot. Seven European countries are among the top 10, Switzerland, Denmark, Sweden, Norway, Finland, Austria and the Netherlands, and in addition to these countries Canada is on the list.
To belong to the top 10 in order to facilitate trade is economically beneficial, WEF says that a 1 percent increase in its EIT score means 1.7 percent more in exports and 2.3 percent in imports.
In the Middle East and North Africa eleven out of the thirteen countries shows improved EIT indices, and only Kuwait and Israel represents deterioration.
In 2008, 67 out of the 117 countries measured a decrease, ie deterioration in the ETI-score, while 49 countries experienced an improvement and one country remained on the same score.
The gap between the "best" and the "worst" countries declined as those countries that traditionally have supported open borders increased their barriers to political action on the global economic downturn, thus the wrong short-term measure if we should believe the WEF's analysis.
The Business analysis company D & B Sweden AB´s Bernt-Olof Hellgren (picture on the start page) comments on the WTO's report.
D & B shares WTO's optimism that a lift in global trade is on the way. But there are significant risks that protectionist moods should grow in most countries if the economic slowdown proves to be deeper and more protracted than what currently is anticipated.
Tony Harken