Deepening green tech divide between Global North, South to worsen economic inequality, warns UN

Deepening green tech divide between Global North, South to worsen economic inequality, warns UN

Subject: International relations

Section: International organization

Context: Developed countries benefit the most from green technologies such as artificial intelligence, Internet of Things and electric vehicles and this can deepen global economic inequality, warned the United Nations Conference on Trade and Development (UNCTAD).

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• Developing countries may miss out on the economic opportunities resulting from green technologies if governments and international bodies do not take decisive action.
• The total exports of green technologies from developed countries jumped to more than $156 billion in 2021 from about $60 billion in 2018, the report found.
• At the same time, exports from developing countries rose to only about $75 billion from $57 billion.
• According to the ‘frontier technology readiness index’ included in this report, only a few developing countries have the capacity needed to take advantage of frontier technologies such as blockchain, drones and solar power.
• Although developing countries are the least prepared to use frontier technologies, several economies in Asia have made important policy changes that have enabled them to perform better than expected according to their gross domestic product per capita.
• India remains the greatest performer, ranking at 67 positions better than expected, followed by the Philippines (54 positions better) and Vietnam (44 better).
• UNCTAD calls on governments in developing countries to align environmental, science, technology, innovation and industrial policies. It urges them to prioritise investment in greener and more complex sectors, to provide incentives to shift consumer demand towards greener goods and to boost investment in research and development.

United Nations Conference on Trade and Development

• UNCTAD stands for the United Nations Conference on Trade and Development, and is a body of the United Nations system that focuses on promoting economic development, particularly in developing countries.
• UNCTAD was formed in 1964, as part of the United Nations system. It was established to promote economic development, particularly in developing countries, and to facilitate trade and investment.
• The objectives of UNCTAD include promoting international trade, reducing trade barriers, supporting developing countries in their efforts to integrate into the global economy, and fostering sustainable development.
• UNCTAD provides research, analysis, and technical assistance to developing countries, to help them improve their trade and investment policies. It also provides a forum for dialogue between developed and developing countries on trade and development issues.
• UNCTAD has 195 member states and is headquartered in Geneva, Switzerland.
• UNCTAD conducts research and analysis on various trade and development issues, and publishes reports and policy recommendations. It also provides technical assistance and capacity building to developing countries, and organizes conferences and meetings on trade and development issues.
• UNCTAD works closely with the World Trade Organization (WTO) and provides technical assistance to developing countries in their WTO negotiations.
• Flagship reports:
  • Trade and Development Report
  • World Investment Report
  • The Least Developed Countries Report
  • Economic Development in Africa Report
  • Information Economy Report
  • Technology and Innovation Report
  • Review of Maritime Transport