World trade
UN report: Transition to a green economy is an opportunity for growth
Low growth and high debt burden poorer countries. Countries that have important raw materials for a greener economy could actually benefit from trade.
According to a UN report, good economic growth rates are probably a thing of the past. The UN Conference on Trade and Development (Unctad) expects global growth of 2.7 percent for this year and next, after an average of 3 percent in the years 2001 to 2019.
This hits poorer countries particularly hard. Countries with raw materials needed for the transition to a greener economy could benefit from global trade, the organization writes. These include rare earths or cobalt, lithium and nickel. In the UN family, Unctad primarily advocates for the interests of poorer countries.
But in an age of weak economies, high debt, little investment and growing protectionism in richer countries, new thinking is also needed to move poorer countries forward, the report says.
More tax fairness, fewer austerity requirements
Unctad has great hope in a proposed UN convention on global tax cooperation. This could prevent tax avoidance and illegal financial flows and free up more money for development. A global safety net is also needed for poorer countries that are still in debt. It must provide liquidity, without the austerity requirements that the International Monetary Fund (IMF) always imposes.
According to Unctad, economic growth has declined significantly in low-income countries: after an average annual growth of 6.6 percent between 2003 and 2013, the growth rate shrank to an average of 4.1 percent in the following decade. China, which is considered a developing country in the United Nations, played a large part in this. That means things looked even bleaker for many very poor countries.
dpa
Source: Stern
