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  • 8 - Unblocking the Trade Pipes

  • from Part III - Bottom-Up: Private Sector and Civil Society Initiatives on the Sustainable Development Goals
  • Edited by Cosimo Beverelli, Jürgen Kurtz, European University Institute, Florence, Damian Raess
  • Book:
    International Trade, Investment, and the Sustainable Development Goals
    Published online:
    18 September 2020
    Print publication:
    01 October 2020, pp 228-269

  • Summary

    The emergence of blockchain technology has the potential to disrupt nearly anything from voting to healthcare, but could it help deliver the Sustainable Development Goals? International trade has been identified as an instrument in achieving these goals but in practice bottlenecks and trade frictions persist. This chapter aims to illuminate how blockchain technology can smooth three stubborn trade frictions: trade finance gaps, low preference utilisation, and customs frictions. We detail the channels through which blockchain technology can smooth these trade frictions. We then estimate the magnitude of potential economic effects and consider their contributions to these goals. We also discuss how policymakers can create an ecosystem to facilitate these advancements in trade and sustainable development.