Key Message - Developing Country Issues / Capacity Building Trade and investment have considerable potential as engines for economic growth and sustainable development. Tapping into this potential requires targeted research and efforts to enhance the capacity of developing countries.

International trade and investment, at trillions of dollars per year, are a huge potential force for sustainable development. By opening up new markets, exposing domestic firms to international practices, and bringing new investment and growth, trade and investment can create the necessary conditions for poverty alleviation on a scale unreachable by dwindling traditional official development assistance flows.

But the potential is only potential, and depends on a number of factors for its successful achievement. It depends on capacity at the national level to implement policies that help growth-producing domestic firms take advantage of the opportunities offered. It also depends critically on the strength of the existing domestic regimes for environmental management, as trade-induced growth can have serious environmental impacts which, unmitigated, can render it unsustainable. Finally, it depends on the sharing of the benefits of trade and investment, such that income inequalities are in fact lessened by growth.

Developing countries thus have a critical interest in having trade and investment contribute to sustainable development. IISD is involved in a large number of initiatives aimed at ensuring such an outcome, from research on the strategic priorities of developing countries in the WTO negotiations, to building capacity at the national level to better understand the issues.

Featured Content

• Rapid Trade and Environment Assessment
  Developing and testing a methodology for rapid assessment of the environmental impacts of trade liberalization.

• Trade Knowledge Network
  A capacity building network of eight developing country research institutions working on the issues of trade and sustainable development.

• China Council
  The Task Force on WTO and environment of the high-level advisory body to the Government of China on environment and development.

• Southern Agenda on Trade and Environment
  A collaborative effort to enunciate a strategic Southern position on trade and environment in the WTO context.

• Eastern European Briefings
  A joint project with the Earth Council and Eco-Accord to build capacity on trade and sustainable development in eight newly-independent states.

• Southern Agenda on Investment
  A collaborative effort to enunciate a strategic Southern position on investment and sustainable development.

• Americas
  IISD's work on trade and sustainable development in the Western Hemisphere.

• Other Issues
  A selection of our most interesting work not covered by the projects listed above.