The Ocean Trade in the New Economy: A Keynote Address

Privatization and liberalization, the twin pillars of globalization, combined with the advent of the information age, represent the culmination of processes that had their roots in the very nature of ocean trade, characterized by the accumulation and exercise of power. While freedom of the seas was the doctrine under which the business of ocean trade was conducted, the tools of governance were always paramount in determining the contours of that freedom. It is apparent that the integration of ocean trade and the consequential disappearance of national identity within ocean trade has created a governance vacuum in today's globalized economic environment. The new economy, which is driven by information and communication technologies (ICT and e-commerce), has propelled the integration process to unprecedented heights, the major constraint being the physical limitations inherent in the movement of ocean trade. These developments, combined with the governance deficit, are creating major challenges and opportunities. Particularly at stake are the interests and welfare of the majority of developing countries and their capacity to take advantage of the new opportunities to integrate themselves into the world economy. At present, the added value of the opportunities resulting from globalization and information technology (ICT and e-commerce) appears to be very marginal for most of these countries. In addition, the downside of the new structures that have been created in ocean trade, which appear to inhibit and limit any increased participation by the developing countries, needs to be addressed by the international community in order to avert an endemic digital divide.­