The connection of ISO standards with the developments in the world economy until 2030
Economic and trade uncertainty, changing social expectations, the effects of climate change, and the digital transformation were the main factors that were identified as influencing the course of ISO and were discussed by the Board.
The event is part of a week of discussions in Cape Town, South Africa, focusing on defining the organization’s future strategy for 2030. “Without proper standards, it will be impossible to meet multiple challenges globally and nationally. . “Standardization provides the tools to achieve sustainable development, to address the immediate threat posed by climate change, and, inter alia, to ensure gender equality and optimal health care,” said Jodi Sholtz, Business Group Business Director of the Ministry of Commerce and Industry of South Africa, prefacing the event.
Increasing trade uncertainty
Mr. Sholtz emphasized that standards were vital to ensuring more meaningful economic growth. “Globalization has brought new productive possibilities and capabilities. However, it also results in increasing inequality, economic concentration, and economic marginalization in many developing countries. “It is important to ensure a more inclusive development path and quality and standardization can help in this,” he said.
Trade rapporteur Catherine Grant-Makokera cited the rise of economic nationalism, rising levels of protectionism, and declining confidence in the multifaceted modern trading system. Trade uncertainty has increased tenfold in recent years, in contrast to the relative stability of the previous two decades. “This is important because increasing global trade uncertainty lowers global growth forecasts,” he said.
Changing social expectations
The changing expectations of consumers and society were another force to be reckoned with as an impact on the world around us. An example of this can be found in the sharing economy where individuals offer their assets, such as their vehicles or apartments, to other members of the community (Airbnb, Uber, etc.).
These new models bring new challenges that standardization can play an active role in improving existing services.
“Standards are desperately needed in the sharing economy,” said Mark Atwood, founder of Journey Passenger Sharing. Does taking extra passengers into your car on a long trip affect your safety? Does anything change if these extra passengers were found through an app or your network of friends? There are no clear answers to these questions today. ”
Tarryn Daniels from the South Africa Consumer Goods Council stressed that standards are needed to support the growth of the sharing economy but also to control it as chaotic developments can occur. “Those who do not accept the sharing economy are traditional industries that refuse to adapt and use conventional business models that refuse to evolve,” he said.
Urgent need for sustainability
The real scope of the effects of climate change was highlighted by Regina Asariotis of the United Nations Trade and Development Organization (UNCTAD), using a specific example from the global transport sector.
“International trade is crucially dependent on well-functioning transport links. “Environmental challenges such as extreme storms, floods, changes in temperature, humidity or rainfall and rising sea levels will have a significant impact on transport infrastructure, such as ports,” he said, calling for better risk assessment and preparation to respond to potential difficulties of climate change.
Digital transformation
Finally, the effects of digital technology on all of us were explored, asking the “standardization community” to embrace digital transformation. The speakers considered what the rapid development and adoption of digital technologies could mean for businesses and society. For example, what does digital transformation mean for businesses? How do digital technologies change what and how do we exchange? And how do digital technologies drive business growth and innovation?
Digital technologies are widely adopted and new developments (eg automation, artificial intelligence, or blockchain) offer multiple opportunities for organizations, helping to increase their efficiency and productivity, creating a competitive advantage, and promoting innovation. It is important, however, to analyze which technologies have real value and relevance and where to invest.
Together, these four trends – economic and trade uncertainty, changing societal expectations, the urgency of sustainability, and the digital transformation – are the new forces that will shape the direction of the future ISO strategy on the road to 2030.
Katie Bird on September 20, 2019
