UNCTAD calls for rethink of global development strategies

GENEVA, Oct. 29 (Xinhua) -- With slow growth, high debt, and weak investment and trade deepening the divide between industrialized and developing nations, the United Nations Conference on Trade and Development (UNCTAD) has called for a fundamental rethink of global development strategies.

In its "Trade and Development Report 2024" released on Tuesday, UNCTAD points out that developing countries are facing difficult policy trade-offs due to such crises as high energy prices, rising demand for health and social services, and increasing protectionism.

The report urges countries to pursue new development pathways focused on economic diversification, resilience and inclusive growth.

"We must rethink, reform and revive. Rethink global development strategies, reform the international financial system, and revive the commitment to multilateralism to provide real support for developing countries," said UNCTAD Secretary-General Rebeca Grynspan.

The report emphasizes that inflation has eroded the purchasing power of developing countries due to factors such as supply chain crises and high energy and agricultural product prices.

The report calls for a combination of fiscal and regulatory strategies to solve the problem of inflation.

Trade between developing countries has increased from 2.3 trillion U.S. dollars in 2007 to 5.6 trillion U.S. dollars in 2023, the report says, providing developing countries with opportunities to reduce dependence on traditional trading partners and strengthen regional economic integration.

By leveraging regional trade and integration agreements and implementing strategic industrial policies, developing countries can better strengthen their economic resilience, it said, adding that the green transition also presents new avenues for growth.

The report highlights significant changes in the structure of global trade. While goods still account for over 75 percent of total trade, services trade has grown rapidly, expanding by 5 percent in real terms since 2023. Services now make up 25 percent of gross global trade flows, offering new growth potential for developing countries. ■