Sustainable Trade Index 2023

4.0 Conclusion

The era of reflective globalization

The global landscape is morphing from rapid globalization into a more nuanced and gradual process of integration. This era, aptly termed slowbalization, represents not a withdrawal from global engagement but a more reflective and deliberate path forward. It has been forged not through happenstance but through an acute awareness of the intricate interconnectedness of our world, and of its complexities and inherent economic and geopolitical risks. In this dynamic environment, public and private decision-makers are confronted with the imperative to adjust and transform. They must identify a balance that encompasses economic expansion, societal prosperity, and safeguarding our natural environment for future generations. The hurdles are substantial, but they are matched by promising opportunities for innovation, collaboration, and sustainable development in this emerging global era. High-ranking economies in the 2023 STI share discernible commonalities. Under the economic pillar , those with robust infrastructure and a strong inclination towards technological innovation have not only performed well but, in some instances, improved their standing. The path from innovation to commercialization requires adequate financing, a critical factor in nurturing innovation. Economies in which the private sector enjoys sufficient financing sit in the higher echelons of the pillar. Those benefiting from trade liberalization and consequently lower trading costs follow suit. In a year dominated by concerns over inflation, it was to be expected that economies plagued by high inflation levels or hindered by low trade liberalization would not fare well. In the societal pillar, the index reveals that economies characterized by political stability, economic equality, high educational attainment, and social mobility are the strongest performers. Conversely, those with low life expectancy or where a significant portion of goods is produced through forced labor, lag. In the environmental pillar, the top ranks are occupied by economies that uphold high environmental standards and effectively address challenges related to wastewater, air pollution, carbon, and energy intensity.

HINRICH-IMD SUSTAINABLE TRADE INDEX 2023

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