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New Zealand, UK, And Australia Lead Global List Of Economies Engaging In Sustainable Trade Best Practices
Wednesday, 30 October 2024, 9:49 am
Press Release: IMD World Competitiveness Center
22 OCTOBER 2024
New Zealand has
topped the Hinrich-IMD
Sustainable Trade Index (STI) 2024 for the third
consecutive year, with the United Kingdom (UK) following in
second place and Australia securing third. The Index
measures how well trade contributes to mutually beneficial
and balanced economic, social, and environmental outcomes
among 30 trading economies.
New Zealand (first)
retains its top spot for the third consecutive edition and
leads the environmental dataset. The UK is second for the
third edition in a row. However, it does perform worse than
in 2023 in the economic dataset. Australia (third) has risen
two positions since last year. Its greatest progress is in
the environmental dataset.
Crucially, building
“workforce resilience” is becoming a major goal of
governments and the private sector worldwide, the report
signals. This means having a healthy, educated, and
unexploited workforce, which allows economies to better
withstand shocks and seize emerging opportunities. “National
resilience” and “environmental resilience” are also
key concerns.
“Workforce resilience” is part of a
broader trend to encourage “societal resilience,” the
authors say. Societal resilience is the effect of
investments that foster both economic and social stability.
New Zealand, Canada, Australia, Taiwan, and Singapore do
best here.
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The Index is a joint project between the
Hinrich Foundation and the International Institute for
Management Development (IMD) and is in its third
year.
It measures 30 economies, including members and
applicants of major trade alliances, such as the
Asia-Pacific Economic Cooperation (APEC), the Comprehensive
and Progressive Agreement for Trans-Pacific Partnership
(CPTPP), and the Regional Comprehensive Economic Partnership
(RCEP).
“The STI allows us to track how effectively
trading economies are meeting the three pillars of
sustainability: economic growth, societal advancement, and
environmental stewardship. Achieving balanced outcomes
between the three pillars is essential for resilience,”
said Kathryn Dioth, CEO of the Hinrich
Foundation.
“By investing in human capital,
countries can build adaptable workforces capable of thriving
amid economic fluctuations and global challenges,” said
Christos Cabolis, Chief Economist of the IMD World
Competitiveness Center, which led the research for
IMD.
Other major findings include:
· Global trade
is increasingly shaped by protectionist regulations, where
economies favor policies that strengthen domestic industries
and secure supply chains. This shift toward industrial
policy, aimed at building economic resilience, marks a
long-term trend, resulting in the fragmentation of the
global trading system.
· Addressing climate resilience
is complex because tackling climate change often requires
regulatory interventions, whereas global trade flourishes
with fewer barriers. The emergence of climate and trade
agreements that promote trade in environmental goods and
services could balance the dual objectives of open trade
while addressing climate change.
· A few mid-ranking
economies have shown consistent progress or stability over
the last three years (2022-2024). Amongst them, Thailand
gained three spots in the STI from 2022 to reach 12th place
this year, Vietnam recorded a six-place rise, and Chile held
a steady position at 11th across the three
years.
The Index measures 72 data
points, categorized into three “pillars”:
economic, societal, and environmental, considered by the
researchers to be the main axes of sustainable trade. They
represent economic growth, societal
well-being, and environmental
stewardship, respectively. A new indicator
measuring universal health coverage (UHC) from the WHO’s
Global Health Observatory (GHO) was introduced to the
societal pillar in this edition.
Given
the complex interplay between economic growth,
societal well-being, and environmental stewardship
within the global trade system, the STI report measures how
economies perform across a holistic set of metrics across
these three pillars.
Looking more specifically at New
Zealand’s performance:
| Pillar | Measurement | NZ 2024 Ranking |
Highlights |
| Economic | The Economic pillar measures an economy’s ability to ensure and promote economic growth through international trade. In this category, economies receive scores for indicators that demonstrate a link between the trading system and economic growth. |
7 (+1) |
Best performing
Worst performing
|
| Societal | Social factors matter in an economy’s capacity to trade internationally over the long term. Economies are measured on the environment that encourages and supports the development of human capital, such as the extent of education and labor standards. |
1 (+1) |
Best performing areas:
Worst
|
| Environmental |
The that arise from economic growth and |
1 (0) |
Best performing
Worst performing
|
Values
in parenthesis indicate change in ranking compared to
2023
About the Hinrich
Foundation
The Hinrich Foundation is
an Asia-based philanthropic organization that works to
advance mutually beneficial and sustainable global trade. We
believe sustainable global trade strengthens relationships
between nations and improves people’s lives. We support
original research and education programs that build
understanding and leadership in global trade. Our approach
is independent, fact-based, and objective. We are an
authoritative source of knowledge, sharp analysis, and fresh
thinking for policymakers, business, media, and scholars
engaged in global trade.
About the
International Institute for Management Development
(IMD)
IMD has been a pioneering force
in developing leaders and organizations that contribute to a
more prosperous, sustainable, and inclusive world for more
than 75 years. Led by an expert and diverse faculty, with
campuses in Lausanne and Singapore as well as a Management
Development Hub in Shenzhen, IMD strives to be the trusted
learning partner of choice for ambitious individuals and
organizations worldwide. Our executive education and degree
programs are consistently ranked among the world’s best.
This consistency at the forefront of its industry is
grounded in IMD’s unique approach to creating “Real
Learning. Real Impact.” Through our award-winning
research, programs, and advisory work, we enable business
leaders to find new and better solutions, challenging what
is and inspiring what could be. To learn more, visit
www.imd.org.
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