Ventures Dialogue

Yesterday on VENTURES, we outlined the vision of Ontario’s new International Trade and Development Minister, Sandra Pupatello. This is part two of that series.

The rise of developing countries as trade partners was a key topic of discussion at the Ontario Economic Summit, held at White Oaks Resort in Niagara on the Lake from Sept 30 – October 2. Andrew Burns of the World Bank provided an eye-opening presentation about the increasing fortunes of developing countries and the trade opportunities they present for Canada.

Burns explained that all developing countries have been increasing their Gross Domestic Product (GDP) for over fifteen years (1980-2007). The rise of China as an economic power is well known, but it is not the only developing country that has increased its economic conditions; Africa, for instance, was referenced throughout Burns’ discussion.

Burns explained that by 2030 imports from developing countries will constitute roughly 42% of world trade or twenty trillion dollars. Burns pointed out that developing countries are growing twice as fast as the developed countries. Africa, for example, underwent tough economic times when numerous countries gained their independence and there were disruptions to government structures. However, since 2000, Africa’s GDP has been growing at over 5% per year, due in large part to policy reforms, a trend Burns does not expect to change in any way. Burns described the growing middle class as a large group of “young, dynamic, empowered people who are shaping global trends.”

On the other hand, Burns explained that Canada has not been progressive in pursuing the untapped trade opportunities in foreign countries outside of the United States.  About 80% of Canada’s exports are destined for the United States, but just 9% to developing countries.

Tomorrow, we’ll share the experience and advice of three successful businesspeople who have managed to make a global impact, proving Canadian companies can compete with the world.