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Times are tough for world trade. Protectionism, nationalism and trade wars have clouded the dreams of free trade, supported by the World Trade Organization (WTO). With the new CEO Ngozi Okonjo-Iweala, the organization can start over, but the obstacles are many.
New Secretary General of the WTO, Ngozi Okonjo-Iweala from Nigeria. Stock Photography.
– It’s a particularly charged minefield that you hit, says economist Peter Stein.
Ngozi Okonjo-Iweala from Nigeria is the first woman to head the WTO. She is also the first person from the African continent to be elected Director-General of the WTO.
– Has professional competence. He radiates intellectual sharpness and willpower, says Peter Stein, an African economist and expert.
He met her when she became an honorary doctor at Tel Aviv University two years ago. Since then, the two have kept in touch. Like other reviewers, Stein says his task will be demanding.
The WTO was synonymous with a world open to cross-border trade, a globalized economy in contrast to the division of the Cold War into blocs and allegiances.
The navigation seemed to be able to be pleasant in open water. But then came the skerries and grains, the storm winds increased in strength. Attempts to deepen the importance of the WTO began with the Doha Round in 2001, but after several attempts, the leading countries abandoned them.
Trade wars, punitive tariffs and tariffs have become political instruments, mostly through former US President Donald Trump.
He also blocked the appointment of a new CEO when Brazil’s top diplomat, Roberto Azevêdo, unexpectedly left the job for a senior position at Pepsico in August last year.
Even then, Ngozi Okonjo-Iweala was the favorite of the eight candidates to take command.
The opening came when the president of the United States, Joe Biden, decided to go against his representative and give his support to Okonjo-Iweala in early February. The main competitor, South Korean Commerce Minister Yoo Myung-hee, withdrew his candidacy.
– He comes from a respectable Nigerian family. He belongs to the Igbo ethnic group in eastern Nigeria, the father who has been fighting for Biafra since he left. He was an obi, a kind of king, in the Ogwashi-Ukwu royal family, Stein says.
Ngozi has a degree from the prestigious American universities Harvard and a doctorate from MIT, and during the trip he also received dual citizenship.
But it is Okonjo-Iweala’s international experience that opens the door to a new beginning for the WTO. She has served in senior positions within the World Bank for 25 years, including as CEO and second manager with responsibility for $ 81 billion (670 billion kronor) operations in Africa, parts of Asia and Europe.
– Has extensive experience working in international organizations where there are many members with conflicting interests. She knows how to navigate the corridors of that kind of power, Stein says.
Plus, she’s ready to fight. As in the issue of changing the role of women in economies. In a sharp debate post in 2017, she wrote together with Isabella Lövin (MP), then Minister for International Development Cooperation and Climate, a debate post on the need for women to have more financial responsibility and influence when climate change change the conditions:
Finally, women need to have political influence. If half the population does not have a voice in political decision-making, its legitimacy will suffer ”, conclude the two debate articles.
The harshness has been exacerbated by the fact that she has been Nigeria’s finance minister, in two rounds, in a country of origin marked by corruption and economic inequality. As well as Minister of Foreign Affairs for a short time.
“She was a reform-minded finance minister in Nigeria: she managed to negotiate the country’s foreign debt, managed to create transparency in the state’s oil revenues, and got rid of many retirees and others who received government funds.” Stein says of his efforts.
– The reforms depended a lot on her, many of these have not survived since she left. Naturally, it collided with many powerful interests.
It was also a leader in modifying fuel subsidies in Nigeria. But it sparked widespread protests and was withdrawn.
Now it will be the heads of state and government, also with powerful interests, who will face Ngozi Okonjo-Iweala.
– It will be unstable in the coming years. Differences in trade policy between the United States and China will affect the entire operation, says economist Peter Stein, wondering how the United States and the White House view the WTO.
– In recent years, the WTO has had big problems, but it is important to remember that it did not start with Trump. Even President Barack Obama was skeptical. One challenge for Ngozi is whether President Biden, when it comes to trade policy, turns out to be a Trump in silk gloves.
World Trade Organization WTO
The World Trade Organization (WTO) was established on January 1, 1995. Its headquarters are in Geneva, Switzerland.
The organization was the result of the so-called Uruguay Round, with negotiations in 1986-1994. The WTO took over the role played by the Gatt organization since 1948.
The WTO has 164 members, and another 20 countries have observer status.
WTO is also the name of the agreement that covers about 95 percent of world trade.
Its members include the world’s largest countries, including China, the United States, and Japan, as well as trade blocs such as the EU.
The WTO agreement applies to both goods and services. An attempt to start a new round of negotiations to deepen the agreement began after extensive problems with the Doha Round in 2001. The negotiations were unsuccessful and after almost 15 years, the leading countries and blocs withdrew from the negotiations.
Source: WTO.org, NE.