Upgrading Technology Interventions in Global Trade and Shipping Systems

In this video, we reflect on the recent Trade and Investment discussions at the World Economic Forum in Davos to understand the challenges for emerging tech opportunities in trade while keeping in view trade decentralization and the current shifts in geopolitical landscape.
Technology transformations have always been aimed at solving problems and improving efficiency. Today, in the 4th industrial revolution, advanced solutions are once again presenting fresh opportunities to transform the global trade ecosystem through digital automation in a range of areas such as logistics information sharing, trade finance, and supply chain sustainability. Internationally, some major trading centers have already made great strides in digitizing their operations. However, an industry-wide standard protocol for global connectivity and data exchange through distributed ledger technology is still lacking at the moment.
Now, such universal adoption of a standard data exchange protocol can only be facilitated through collaborative discussions at global multilateral institutions, such as the World Customs Organization, which accounts for industry-wide technical standards, and the World Trade Organization, which draws consideration for the geopolitical and legal frameworks. While the private sector is fully capable of developing suitable technology applications, government participation through these multilateral organizations remains essential for addressing a range of underlying issues such as legal digital identity, liability, and other legislative items.
But what’s interesting is that on one hand, the international business community is urging the regulatory bodies to address technical interoperability issues and widespread bureaucratic challenges. And on the other hand, amid rising tensions in geopolitical climate, the security community of different nations is debating trade decentralization and the use of economic tools as a means of strategic competition. Now, for trade technology, there has never been a time of greater problem awareness and response ability than ever before. However, global adversaries, national protectionism, and unilateral actions of today are clearly undermining the industry’s progress.
In a recent address to students at the University of International Business and Economics, Rebeca Grynspan, the secretary general of the United Nations Conference on Trade and Development, indicated that the world today is shifting from globalization to poly globalization, a term which she has coined to relate the increasing significance of decentralized, regional trading patterns, and competing economic blocs. The current geopolitical climate is not one that will easily encourage the varying parties to sit together for collaborative measures. Trust has eroded, and it might be long before things begin to normalize. Meanwhile, we will perhaps witness the evolution of trade technologies on parallel tracks within strategic coalitions, rather than on a unified central front.
Global trade has long been a catalyst for growth and development, yet recent policy responses are faltering. Today, while significant technological advancements in trade operations are well within reach, industry dynamics are plagued with geopolitical adversaries. There is fragmentation, and the global multilateral trading system is under threat. But, at the same time, it is crucial to acknowledge the dynamic nature of trade. Future growth in trade will most likely emanate from emerging poly global consortiums that are reshaping the global development framework. If this holds true, then consolidated strategic alignments will eventually attract the collaborative employment of advanced trade technology solutions to streamline decentralized coalition systems and their data exchange processes for greater efficiencies.