Strengthening the global trade and investment system for sustainable development
Trade financing, an esoteric and poorly understood branch of finance, is demonstrably critical to the pursuit and conduct of international trade, by companies of all sizes, and by small and medium-sized enterprises (SMEs) in particular. Those based in developing and emerging markets are in even more urgent need of the liquidity and risk mitigation solutions available through trade financing.
The global financial crisis has demonstrated beyond debate that there is an important role for public sector and international institution actors in assuring the availability of adequate levels of affordably priced trade finance, particularly (but not exclusively) in times of crisis.
Interestingly, some of the techniques evolving with the aim of supporting international supply chains can (and do) apply very well in the context of domestic, supply chain-centered activity.