Changes in financial markets now strongly influence global trade alongside real economic activity, affecting developing countries’ prospects. “Trade is not just a chain of suppliers. It is also a chain of credit lines, payment systems, currency markets and capital flows,” stated Rebeca Grynspan, UNCTAD Secretary General.
Developing economies grow faster than advanced ones, but high borrowing costs, financial market volatility, and climate risks limit their investment and growth ability, according to the report. Climate vulnerability increases financial pressures, as countries repeatedly exposed to extreme weather pay about $20 billion more annually in interest due to perceived higher risk, says UNCTAD.
The US dollar remains central to global finance, with diversification underway. Its share of cross-border payments via SWIFT increased from 39% to around 50% in five years, with the United States still dominating global stock and bond markets. While this may provide stability during financial shocks, developing countries become increasingly exposed to US financial cycles, which they have little influence over, UNCTAD reported.
“Slavery is a horror from history and a relentless contemporary crisis,” said Secretary-General António Guterres as the UN commemorated the International Day for the Abolition of Slavery on December 2. Over 15 million people were enslaved across oceans, with many losing their lives during that journey. Today, about 50 million people are trapped in modern slavery forms, many being women and children. The day aims to raise awareness and mobilize efforts to end slavery and modern manifestations, such as human trafficking, sexual exploitation, child labor, forced marriage, and child recruitment into armed conflict.
The UN reports forced labor generates an estimated $236 billion in annual global profits, effectively stolen wages from workers, notably affecting those already struggling. “Contemporary forms of slavery are perpetuated by criminal networks preying on individuals facing extreme poverty, discrimination, or environmental degradation – and traffickers exploiting those fleeing conflict or seeking safety and opportunity,” stated Secretary-General Guterres. No region is immune to this issue, with Asia and the Pacific having the most cases (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).
Over 80% of agricultural jobs in Latin America operate under informal employment contracts, leaving workers without formal protection and social security. Women, young people, and the elderly in rural areas are disproportionately affected, as noted in a new report from the International Labor Organization (ILO) and the Food and Agriculture Organization (FAO). The report highlights 86.4% of women are in informal jobs, compared to 78% of men. The informal sector also accounts for 46% of child labor in the region, with over half the workforce having a low level of education.
Despite some progress in Latin America between 2019 and 2023, nearly half of young workers in the sector, and the vast majority of women, remain in informal employment, according to UN agencies. The ILO and FAO continue collaborating with governments, employers, and workers to design and implement integrated policies transforming the agricultural sector into a true engine of decent employment, food security, and sustainability in the region.
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