Global Economic Governance Through the Lens of Inequality and Sustainable Development

This report summarizes a one-day workshop organized by the International Institute for Sustainable Development (IISD) on September 13, 2019, in Geneva, Switzerland. The event examined how global economic governance—specifically international trade and investment regimes—influences income inequality and the achievement of Sustainable Development Goals (SDGs), focusing on market access, e-commerce, industrial policy, and competition policy.

• Market access improvements alone are often insufficient for least developed countries (LDCs) to increase their global export share. Barriers such as high tariff peaks on specific goods, lack of quality infrastructure to meet sanitary and phytosanitary (SPS) requirements, and massive domestic support in rich countries—which affects the 'Cotton-4' countries (Benin, Burkina Faso, Chad, and Mali)—limit the effectiveness of duty-free, quota-free (DFQF) access.
• The digital economy presents significant risks for developing countries, including potential 'lock-in' effects from new trade rules. Key concerns include the restriction of cross-border data flows, bans on local data storage, and bans on the transfer of source code and algorithms, which can limit a government's ability to regulate in the public interest or monitor foreign companies.
• The existing moratorium on electronic transmissions may cause substantial revenue losses for developing economies. A 2019 UNCTAD paper estimated a potential loss of USD 5.1 billion in government revenue for these economies based on average most-favoured nation (MFN) applied rates.
• Industrial policy is often used by developing countries to 'catch up,' but current WTO rules (such as TRIMs, TRIPs, and the SCM Agreement) and regional trade agreements (RTAs) are increasingly restricting the policy space available for these development strategies. There is a call to reimagine industrial policy to be more 'smart,' inclusive, and environmentally conscious, potentially using 'green box' subsidies for sustainability objectives.
• Competition policy is directly linked to inequality through the accumulation of market power, particularly by tech giants. However, competition authorities in developing countries often lack the resources and political support to challenge these entities, as companies with significant market power are well-positioned to lobby national governments.
• Global economic governance is characterized by a fragmented system of multilateral rules, 'plurilaterals,' and proliferating regional trade agreements. Participants emphasized that trade and investment regimes do not operate in a vacuum and must be coordinated with domestic policies and other international institutions to effectively reduce income inequality.

APA

International Institute for Sustainable Development (2019). Global Economic Governance Through the Lens of Inequality and Sustainable Development. https://www.iisd.org/system/files/publications/global-economic-governance-meeting-report-sept-2019.pdf

Chicago

International Institute for Sustainable Development. Global Economic Governance Through the Lens of Inequality and Sustainable Development. 2019. https://www.iisd.org/system/files/publications/global-economic-governance-meeting-report-sept-2019.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Global Economic Governance Through the Lens of Inequality and Sustainable Development |date=30 September 2019 |url=https://www.iisd.org/system/files/publications/global-economic-governance-meeting-report-sept-2019.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2019global, author = {{International Institute for Sustainable Development}}, title = {{Global Economic Governance Through the Lens of Inequality and Sustainable Development}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = sep, url = {https://www.iisd.org/system/files/publications/global-economic-governance-meeting-report-sept-2019.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }