Subheadline: Rebeca Grynspan Highlights Key Concerns from the 2023 Trade and Development Report
New York, October 5, 2023 – The Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), Rebeca Grynspan, has raised the alarm about a looming debt crisis affecting many developing and middle-income nations. Grynspan’s remarks were part of the unveiling of the 2023 Trade and Development Report, outlined in a press release issued on the UNCTAD website late Wednesday.
In her address, Grynspan underscored the urgency of addressing the growing debt crisis on the international stage. She emphasized that finding effective solutions for debt restructuring is imperative for the economic stability of these countries, including middle-income nations. The report also highlighted other critical issues, such as the sluggish global economic growth, weak investment, and declining credit.
As an economist, Grynspan voiced her concerns about the lack of competition in vital markets, including energy, food, pharmaceuticals, and the digital sector. She stated, “There are five messages that we want to emphasize from the trade and development report of this year. The first message is that the global economy is slowing down. This, despite the good news of an expected soft landing of the U.S. economy this year. But the prospects of accelerating growth in the coming years are very slim.”
Grynspan continued, “The second message is that debt is a problem and a lot of developing countries are in a debt and development crisis and that has to be part of the discussion at the international level to be able to find the right solutions for restructuring debts in many developing countries including middle-income countries.”
Addressing concerns about investment and credit, she added, “Investment is weak and credit is going down. So the question of where the new sources of growth will come from has to be addressed. We’re worried about the market concentration, lack of competition, and financialization of trade in very important markets – energy, food, pharmaceuticals, and digital.”
As part of its recommendations, the statement on the UNCTAD website highlighted, “The report urges global financial reforms, more pragmatic policies to tackle inflation, inequality, and sovereign debt distress, and stronger oversight of key markets.” Furthermore, it “proposes actions to get the global economy moving in the right direction by using a balanced policy mix of fiscal, monetary, and supply-side measures to achieve financial stability, boost productive investment, and create better jobs.”
The UNCTAD report underscores the pressing need for international collaboration to address these challenges and promote sustainable economic development in developing and middle-income countries.