The United Nations Conference on Trade and Development (UNCTAD) has warned that green technologies, such as artificial intelligence, Internet of Things, and electric vehicles, may deepen global economic inequality.
Major Findings
The report found that the total exports of green technologies from developed countries jumped to over $156 billion in 2021 from about $60 billion in 2018.
In contrast, exports from developing countries rose to only about $75 billion from $57 billion.
Only a few developing countries have the capacity needed to take advantage of frontier technologies such as blockchain, drones, and solar power, according to the ‘frontier technology readiness index’ included in the report.
This index ranks 166 countries based on information and communication technology (ICT) skills, research and development, industrial capacity, and finance indicators.
High-income economies such as the United States, Sweden, Singapore, Switzerland, and the Netherlands are currently leading the index.
UNCTAD calls on governments in developing countries to align environmental, science, technology, innovation, and industrial policies.
It urges them to prioritize investment in greener and more complex sectors, provide incentives to shift consumer demand towards greener goods, and boost investment in research and development.
Recommendations
The report urged developed countries to provide a helping hand to their less well-off counterparts and ensure all nations can participate and take full economic advantage of the green tech revolution.
International trade rules should permit developing countries to protect emerging green industries through tariffs, subsidies, and public procurement, so that they not only meet local demand but also reach the economies of scale that make exports more competitive.
UNCTAD
It was established in 1964 to promote trade, investment, and development in developing countries.
It is a permanent organ of the United Nations (UN) General Assembly.
It is headquartered in Geneva, Switzerland.
UNCTAD has approximately 190 members.
The highest policy-making body of UNCTAD is the Conference, which meets once every four years to set policy guidelines and to formulate a program of work.
