160
impacts in trade. This chapter summarises the latest empirical fi ndings on global
change instigated by trade, discusses new methodological developments and refl ects
on the sustainability of globalised production and consumption. Signifi cant proportions of up to 64 % of total environmental, social and economic impacts can be
linked to international trade. Impacts embodied in trade have grown much more
rapidly than their total global counterparts. Policies aimed at increasing the sustainability of production and consumption need to go beyond domestic regulation and
seek international cooperation to target production practices for exports
worldwide.
International trade is not a new phenomenon. People have exchanged goods and
services since prehistoric and ancient times. One prominent example of early trade
links between countries and continents is the Silk Roads, a network of trading routes
established between Asia and Europe during the Han Dynasty in China (206 BC –
220 AD) (Liu 2010 ). The trade in Chinese silk and many other goods extended over
6,000 km and was very lucrative. It boosted the economic development of China
and its Middle Asian and European trading partners and became so important that it
was protected militarily by fortifi ed watch towers. The Great Wall was extended to
ensure the protection of the trade route. The Silk Roads’ importance during ancient
times and up to its golden age during the early middle age was confi rmed in 2014,
when parts of the network were declared a UNESCO World Heritage Site.
1
How does this compare to trade in modern times? It is certainly true to say that
international trade accelerates economic development – nowadays as it did thousands of years ago. What is different – due to economic globalisation and technological advances, especially in the last 20 years – is the unprecedented scale, speed
and complexity of trade movements and transactions.
Over the last few decades, international trade has grown much more rapidly
compared to other indicators of development such as, for example, GDP (gross
domestic product), population or CO 2 emissions (Kanemoto and Murray 2013 and
Fig. 8.1 ). The value of exports of goods and services is almost 300 times larger
today than it was in 1950 (35 times larger by volume; WTO 2013 ). On average,
exports make up 30 % of a country’s GDP (World Bank 2015 ). The value added
along global production chains (outside the country of completion) has steadily
increased since 1995, only briefl y interrupted in 2008 due to the global fi nancial
crisis (Los et al. 2015 ; Timmer et al. 2014 ). This trend is seen as a clear sign that
production has shifted from the regional to the global scale. The expansion of international trade has changed production and consumption patterns almost everywhere, with wide-ranging implications for economies, societies and the
environment.
Undoubtedly, globalisation and trade have helped to alleviate poverty and social
hardship in many countries. According to the World Resources Institute, over the
last 20 years ‘Real incomes in low- and middle-income countries have doubled and
poverty rates have halved. Two billion people have gained access to improved drinking water. Maternal mortality has dropped by nearly half, and the share of those who
1 Retrieved February 23, 2015 from http://whc.unesco.org/en/list/1442
T. Wiedmann
impacts in trade. This chapter summarises the latest empirical fi ndings on global
change instigated by trade, discusses new methodological developments and refl ects
on the sustainability of globalised production and consumption. Signifi cant proportions of up to 64 % of total environmental, social and economic impacts can be
linked to international trade. Impacts embodied in trade have grown much more
rapidly than their total global counterparts. Policies aimed at increasing the sustainability of production and consumption need to go beyond domestic regulation and
seek international cooperation to target production practices for exports
worldwide.
International trade is not a new phenomenon. People have exchanged goods and
services since prehistoric and ancient times. One prominent example of early trade
links between countries and continents is the Silk Roads, a network of trading routes
established between Asia and Europe during the Han Dynasty in China (206 BC –
220 AD) (Liu 2010 ). The trade in Chinese silk and many other goods extended over
6,000 km and was very lucrative. It boosted the economic development of China
and its Middle Asian and European trading partners and became so important that it
was protected militarily by fortifi ed watch towers. The Great Wall was extended to
ensure the protection of the trade route. The Silk Roads’ importance during ancient
times and up to its golden age during the early middle age was confi rmed in 2014,
when parts of the network were declared a UNESCO World Heritage Site.
1
How does this compare to trade in modern times? It is certainly true to say that
international trade accelerates economic development – nowadays as it did thousands of years ago. What is different – due to economic globalisation and technological advances, especially in the last 20 years – is the unprecedented scale, speed
and complexity of trade movements and transactions.
Over the last few decades, international trade has grown much more rapidly
compared to other indicators of development such as, for example, GDP (gross
domestic product), population or CO 2 emissions (Kanemoto and Murray 2013 and
Fig. 8.1 ). The value of exports of goods and services is almost 300 times larger
today than it was in 1950 (35 times larger by volume; WTO 2013 ). On average,
exports make up 30 % of a country’s GDP (World Bank 2015 ). The value added
along global production chains (outside the country of completion) has steadily
increased since 1995, only briefl y interrupted in 2008 due to the global fi nancial
crisis (Los et al. 2015 ; Timmer et al. 2014 ). This trend is seen as a clear sign that
production has shifted from the regional to the global scale. The expansion of international trade has changed production and consumption patterns almost everywhere, with wide-ranging implications for economies, societies and the
environment.
Undoubtedly, globalisation and trade have helped to alleviate poverty and social
hardship in many countries. According to the World Resources Institute, over the
last 20 years ‘Real incomes in low- and middle-income countries have doubled and
poverty rates have halved. Two billion people have gained access to improved drinking water. Maternal mortality has dropped by nearly half, and the share of those who
1 Retrieved February 23, 2015 from http://whc.unesco.org/en/list/1442
T. Wiedmann