Changes in financial markets now influence global trade almost as strongly as real economic activity, shaping the prospects of developing countries in particular.
“Trade is not just a chain of suppliers. It is also a chain of credit lines, payment systems, currency markets and capital flows,” said Rebeca Grynspan, UNCTAD Secretary-General.
Developing economies face growing pressures
Developing economies are growing faster than advanced economies, but high borrowing costs, financial market volatility and climate risks limit their ability to invest and support growth, the report said.
Climate vulnerability adds to financial pressures. Countries repeatedly exposed to extreme weather now pay about $20 billion more each year in interest because lenders perceive them as riskier, according to UNCTAD.
Dominance you dollar
At the same time, the US dollar remains central to global finance, even if some diversification is underway.
Its share of cross-border payments via the SWIFT electronic transfer system has increased sharply – from 39 percent to around 50 percent in five years – and the United States continues to dominate global stock and bond markets.
While this may provide some stability in the event of financial shocks, it also means developing countries are increasingly exposed to US financial cycles that they have little power to shape, UNCTAD said.
Modern slavery worldwide rises to 50 million
“Slavery is a horror for the history books – and an unrelenting contemporary crisis,” Secretary-General António Guterres said as the UN commemorated the International Day for the Abolition of Slavery, marked annually on December 2.
More than 15 million men, women and children captured, chained and enslaved across oceans, UN chief says; Many lost their lives during this arduous journey.
Today, an estimated 50 million people are trapped in contemporary forms of slavery, many of them women and children.
This day is dedicated to raising awareness and mobilizing to end slavery and its modern manifestations, including human trafficking, sexual exploitation, child labor, forced marriage and the recruitment of children into armed conflict.
Millions of exploited workers around the world
According to the UN, forced labor generates an estimated $236 billion in annual profits globally, representing wages effectively stolen from workers, particularly affecting those already struggling to provide for their families.
“Contemporary forms of slavery are perpetuated by criminal networks that prey on people struggling to cope with extreme poverty, discrimination or environmental degradation – and by traffickers who exploit people fleeing armed conflict or migrating in search of safety and opportunity. This deprives people of their rights and their humanity,” said Secretary-General António Guterres.
No region is immune to this problem, with Asia and the Pacific having the highest figure (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 percent of agricultural jobs in Latin America operate in the informal sector
More than 80 percent of agricultural jobs in Latin America continue to operate under informal employment contracts – where workers lack formal protection and social security.
Women, young people and older people in rural areas continue to be disproportionately affected, according to a new report from the International Labor Organization (ILO) and the Food and Agriculture Organization (FAO).
The report reveals that 86.4 percent of women are in informal jobs, compared to 78 percent of men.
The informal sector also accounts for 46 percent of all child labor in the region, while more than half of the workforce has a low level of education.
Slow progress
Although some progress has been made in Latin America, between 2019 and 2023, almost half of all young workers in the sector – as well as the vast majority of women – continue to be employed informally, UN agencies noted.
The ILO and FAO continue to work with governments, employers and workers to design and implement integrated policies aimed at transforming the agricultural sector into a real engine of decent employment, food security and sustainability across the region.
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