Sustainable Trade Index 2023

Executive summary

Within the economic pillar, top-ranking economies exhibit robust infrastructure and a strong commitment to technological innovation. These attributes not only bolster an economy’s overall performance but also contribute to continual improvement. Access to adequate financing is a linchpin for nurturing innovation. Economies in which the private sector enjoys ample funding opportunities thrive. Additionally, those benefiting from trade liberalization and reduced trading costs reap significant rewards. Leading the pack in this economic arena are Singapore, South Korea, Hong Kong, the United States, and the United Kingdom. Turning to the societal pillar, the STI underscores that economies characterized by political stability, higher economic equity, high educational attainment, and social mobility tend to excel. Conversely, those grappling with low life expectancy or reliant on forced labor lag. Notable top performers in this category include Canada, New Zealand, Australia, the United Kingdom, and Japan. In the environmental pillar, economies that uphold stringent environmental standards and effectively address critical issues like wastewater management, air pollution control, carbon emissions reduction, and energy efficiency occupy top positions. Exemplary leaders in this pivotal domain encompass New Zealand, the United Kingdom, Mexico, the Philippines, and Singapore. While it might initially seem counterintuitive, the relationship between increased trade and heightened sustainability highlights the necessity for collaboration. Pursuing short-term trade gains at the expense of social and environmental standards ultimately leads to future policy dilemmas as environmental and social conditions deteriorate. Therefore, achieving expanded trade demands a solid foundation of fairness and equity in trade agreements, coupled with a shared commitment to global environmental protection standards. Economies that successfully navigate the intricate intersection of trade and sustainability are set to gain substantial benefits. In this context, New Zealand, Singapore, and the United Kingdom stand out as top performers, illustrating the harmonious coexistence of trade and sustainability goals. Achieving this alignment is a multifaceted endeavor, necessitating coordinated efforts at both the national and international levels. The STI serves as an invaluable tool, shedding light on the strengths and weaknesses of diverse economies as they embark on this transformative journey. Ultimately, it charts a course toward a future where trade and sustainability are not conflicting interests but rather synergistic forces propelling global prosperity to new heights.

HINRICH-IMD SUSTAINABLE TRADE INDEX 2023

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