Financial market shifts now influence global trade almost as much as actual economic activity, impacting developing countries significantly.
“Trade involves more than just a chain of suppliers. It includes credit lines, payment systems, currency markets, and capital flows,” stated Rebeca Grynspan, UNCTAD Secretary-General.
Developing economies face mounting pressures
Developing economies are expanding faster than advanced ones, but high borrowing costs, financial market volatility, and climate risks hinder their investment and growth potential, the report emphasizes.
Climate vulnerability exacerbates these financial pressures. Countries frequently facing extreme weather pay an estimated $20 billion extra annually in interest due to being perceived as riskier by lenders, according to UNCTAD.
Dollar dominance
The US dollar remains a cornerstone of global finance, despite some diversification. Its share of cross-border payments via the SWIFT system has surged from 39% to about 50% over five years, and the US still dominates global stock and bond markets.
While this can offer stability during financial shocks, it also leaves developing countries more exposed to US financial cycles they cannot influence, UNCTAD noted.
Global modern slavery rises to 50 million
“Slavery is not only a historical horror but a relentless present-day crisis,” said Secretary-General António Guterres as the UN marked the International Day for the Abolition of Slavery on December 2.
Over 15 million people were historically captured, chained, and enslaved across oceans, losing lives in distressing voyages. Today, an estimated 50 million people endure modern slavery forms, many being women and children.
This observance focuses on raising awareness and mobilizing action to combat slavery’s modern forms, including human trafficking, sexual exploitation, child labor, forced marriage, and recruiting children into armed conflict.
Millions of workers exploited worldwide
Forced labor generates approximately $236 billion in annual global profits, with wages essentially stolen from workers, particularly those already struggling to support their families, according to the UN.
“Modern slavery forms are perpetuated by criminal rings exploiting people facing extreme poverty, discrimination, or environmental degradation, as well as traffickers who exploit those fleeing conflict or migrating for safety and opportunity. It strips people of their rights and humanity,” said Secretary-General António Guterres.
No region is exempt, with Asia and the Pacific having the highest number (15.1 million), followed by Europe and Central Asia (4.1 million), Africa (3.8 million), the Americas (3.6 million), and the Arab States (0.9 million).
80% of agricultural jobs in Latin America operate in the informal sector
Over 80% of agricultural employment in Latin America remains informal, with workers lacking formal protection and social security.
Women, youth, and older persons in rural areas are disproportionately affected, according to a report by the International Labour Organization (ILO) and the Food and Agriculture Organization of the United Nations (FAO).
The report indicates that 86.4% of women work informally compared to 78% of men.
The informal sector also comprises 46% of all child labor in the region, with more than half of the workforce possessing low education levels.
Slow progress
While some progress has occurred in Latin America from 2019 to 2023, nearly half of young workers and the majority of women remain employed informally, the UN agencies reported.
The ILO and FAO are collaborating with governments, employers, and workers to develop integrated policies to transform agriculture into a genuine engine of decent employment, food security, and sustainability across the region.
Leave a Reply