WTO Director-General, Okonjo-Iweala on how trade & aid can address global crisis

The Director-General of the World Trade Organization, Ngozi Okonjo-Iweala, recently joined CNBC Africa to discuss the importance of global solidarity and multilateral action in addressing the challenges facing the global economy. Okonjo-Iweala emphasized the urgent need for coordinated multilateral action to support developing countries in recovering from the impact of the quadruple shocks facing the global economy, including COVID-19, climate change, conflict, and cost-of-living. She highlighted the downgrades in economic forecasts by institutions like the IMF and WTO, indicating the challenging road ahead for global recovery. The Director-General stressed the significance of global solidarity and cooperation among multilateral organizations to enable developing countries, especially the least developed ones, to recover and achieve sustainable development goals. During the conversation, Okonjo-Iweala proposed a shift from 'aid for trade' to 'invest for trade' to engage the private sector in supporting developing countries to build necessary infrastructure and integrate into the global trade system. She emphasized the importance of empowering women in trade, citing the potential economic benefits of women's participation in global markets. Additionally, she highlighted the critical role of digital trade and connectivity in enabling developing countries to participate in the digital economy and leverage online retail sales. The Director-General also addressed the challenges of countries turning inward and adopting protectionist measures, urging caution against the fragmentation of trade and decoupling of global supply chains. She emphasized the detrimental economic impact of such actions and called for continued global cooperation to ensure that no country is left behind in the evolving trade landscape. Okonjo-Iweala underscored the need for debt relief and restructuring for African countries grappling with high levels of debt distress, exacerbated by external shocks and rising inflation rates globally. She emphasized the importance of creating fiscal space for African nations to recover and reiterated the call for global solidarity and support from multilateral institutions, bilateral donors, and creditors to address these challenges. On the trade-related front, the Director-General highlighted the efforts of the WTO in providing special treatment and capacity building support for least developed and developing countries to comply with trade rules. She also mentioned the role of the International Trade Center (ITC) in assisting micro, small, and medium enterprises in accessing international markets and upgrading product quality to meet global standards. In conclusion, Ngozi Okonjo-Iweala's insights underscored the critical need for global solidarity and multilateral action to address the quadriple shocks facing the global economy. The emphasis on inclusive trade, digital connectivity, and empowering women in trade will be essential in supporting developing countries on the path to recovery and sustainable development in a challenging global economic landscape.