Global Challenges Impacting Development: WTO

Geneva: Emerging global trends such as geopolitical tensions, digital revolution and climate change are reshaping the landscape of trade-led development, the World Trade Organization (WTO) has said in a flagship report.

In the 2024 edition of the ‘World Trade Report’ released on Monday, the WTO estimated that global factors such as geopolitical tensions, regional conflicts and trade sanctions have impacted the stable foundation of world economic growth in the past 30 years, potentially leading to trade fragmentation.

On the other hand, the increased capital and skill intensity of modern manufacturing has reduced the scope for manufacturing-led growth in low-income economies. Meanwhile, climate change poses even greater challenges, particularly for these nations.

However, the report also emphasised new opportunities brought by these global trends. For instance, developing economies can lower trade costs through digitalisation, pivot toward service-led growth, or seize the demand for renewable resources in the global green transformation to achieve development.