Giving Compass' Take:

• Lisa Cornish reports that speakers at the Global Forum on Inclusive Trade for Least Developed Countries in June emphasized the importance of trade as a tool for development. Speakers shared ways of harnessing business for this purpose. 

• How can philanthropy support trade for impact? How can policies ensure that trade is additive?

• Learn more about the role of trade in sustainable development.

Improving economic opportunities and prospects for the world’s least developed countries remains a key global challenge. At June’s Global Forum on Inclusive Trade for Least Developed Countries, governments, businesses, NGOs, and researchers gathered at the World Trade Organization’s headquarters in Geneva to discuss the importance of trade to the economic and social development of least developed countries — and the unique challenges they face.

The conference, hosted by the Enhanced Integrated Framework, had more than 300 participants, including representatives from more than 40 LDCs. With LDCs leading much of the discussion, the two-day conference provided an opportunity to highlight their commitment to global trade while sharing ideas and experiences on strategies for strong footing in the global trade environment.

Daniela Zehentner-Capell, head of the trade policy division with Germany's Federal Ministry for Economic Cooperation and Development, pointed to research from the World Bank, saying trade is important for economic growth and social development.

To improve economic development in LDCs, a focus needs to be on growing sole traders and small enterprises.

“SMEs account for 80 percent of jobs around the world,” Zehentner-Capell said. “And boosting their economic income improves further jobs and economic development.”

Laila Said-Hassane, from the Comoros Mutual Savings and Credit, explained that her country’s trade is linked to imported products as they have low capacity to produce goods domestically.

“We need SMEs to help us compete,” she said, adding that there needs to be policies and practices in place that encourage entrepreneurs.

A part of growing SMEs and a focus for LDCs, needs to be increasing opportunities for women and youth — including improved access to finances.

Read the full article about trade as a tool for development by Lisa Cornish at Devex International Development.