Introduction to the Special Section: Strengthening Institutional Collaboration for Development and Economic Growth
| Published date | 01 September 2019 |
| Author | Andreas Klasen |
| Date | 01 September 2019 |
| DOI | http://doi.org/10.1111/1758-5899.12706 |
Introduction to the Special Section:
Strengthening Institutional Collaboration for
Development and Economic Growth
Andreas Klasen
Offenburg University, Germany
Open markets, international trade and foreign direct investments (FDI) are a source of prosperity in challenging times. This
Special Section looks at developed economies and emerging markets, also taking into account the role of trade for impactful
capacity-building in Least developed countries (LDCs). Specific emphasis is placed on financing economic development and
trade, analysing what roles trade and development finance should play in the quest for an efficient mobilisation of private
capital for growth, trade and development.
A global economy producing, trading, and consuming goods
and services across borders is a reality for billions of people
and firms. Over the last decades, the expansion of interna-
tional business activities through a multilateral system for
trade and investment provided a major pillar for growth
enjoyed by developed and developing economies. However,
the rise of nationalist and populist politicians in countries
such as the United States has put into question the consen-
sus around trade and investment liberalism that has sus-
tained economic openness for many years (Hale and Held,
2017). Despite numerous gains made from free trade
between countries and global investment activities, multilat-
eral efforts to enhance global governance seem to have
come to a standstill. As it stands, multilateral trading and
investment systems face a new set of challenges such as a
fragmented policy making landscape and institutional inertia
(Klasen, 2017).
This Special Section discusses open markets, international
trade and foreign direct investments (FDI) as a source of
prosperity in challenging times. It looks at developed econo-
mies and emerging markets, also taking into account the
role of trade for impactful capacity-building in least devel-
oped countries (LDCs). Specific emphasis is also placed on
financing economic development and trade, with contribu-
tions from practitioners from a variety of backgrounds and
countries on different perspectives regarding the question
what roles trade and development finance should play in
the quest for an efficient mobilisation of private capital for
growth, trade and development.
The contributions follow an intense discussion at the IfTI
Global Symposium held at Offenburg University’s Institute
for Trade and Innovation in 2018. The aims of this high-level
symposium were to inform financiers and policy makers,
improve knowledge and expertise, strengthen institutional
collaboration and move towards creating a dynamic market-
place for mobilising capital. The symposium offered space
to share approaches to better understand and address cur-
rent challenges, present case studies, and to discuss practi-
cal and pragmatic ways to move forward. Furthermore, it
was unique in its quest to bring together experts from 30
countries.
Global challenges for economic development
Global trade of goods and services experienced a substan-
tial recovery with a growth of 4.1 per cent in 2018 (World
Bank, 2019). Drivers for growth were not only stronger
intra-regional trade developments in Asia but also rising
imports in the United States, in particular due to additional
fiscal stimulus. The rebound of international trade also had
the effect of boosting manufacturing exports in many
countries. However, global trade slowed again more
abruptly than envisaged in 2018, and moderate trade
growth is expected over the next years because of political
factors as well as structural developments. For example, ris-
ing trade protectionism and the slower growth of global
value chains might lead to substantial challenges for
exporters. The same applies for investment activities: fore-
casts point to solid investment in many developed econo-
mies. However, investment growth rates in several
emerging markets and developing economies such as
China remain below those in recent years. FDI activity is
relatively weak across many sectors on a global level with
the rate of expansion of international production slowing
down. In addition to increased policy uncertainties and
geopolitical risks, the decrease in rates of investment
return was one of the main reasons behind the recent
downturn. Moreover, the future investment climate might
also be negatively affected due to the fact that industrial
production and new export orders recently decelerated.
The benefits, as well as the challenges of globalisation,
are discussed by Oramah and Dzene. They analyse why the
Global Policy (2019) 10:3 doi: 10.1111/1758-5899.12706 ©2019 The Author. Global Policy published by Durham University and John Wiley & Sons Ltd.
This is an open access article under the terms of the Creative Commons Attribution License, which permits use,
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Global Policy Volume 10 . Issue 3 . September 2019 397
Special Section Article
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