Development In Action: UNCTAD Warns On Tariffs, Debt And Trust Deficit At UN General Assembly

• Rising tariffs, record debt costs and outdated economic metrics threaten global development.
• UNCTAD chief Rebeca Grynspan urged leaders to“make the invisible visible” and restore trust.
• Attention now turns to UNCTAD16 set for 20–23 October in Geneva.

GENEVA, Switzerland – UN Trade and Development (UNCTAD) warned this week that the world economy is at a crossroads, as rising tariffs, record debt payments and growing mistrust put the brakes on development.

Speaking during the high-level week of the 80th session of the UN General Assembly (UNGA80), UNCTAD secretary-general Rebeca Grynspan said the global economy is“being reshaped under pressure,” with the poorest countries bearing the heaviest costs.

Tariffs applied by major economies, including the United States, have jumped this year from an average of 2.8 percent to more than 20 percent.“Uncertainty is the highest tariff possible,” Grynspan said.“It discourages investment, slows growth, and makes trade as a path to development much harder.”

View photo highlights of UNCTAD at UNGA80.

Debt: From numbers to people

Another dominant theme at UNGA80 was debt . Developing countries paid a record $921 billion in interest in 2024, and 3.4 billion people now live in countries that spend more on debt service than on health or education.

“This is not a debt crisis, it is a development crisis,” Grynspan told delegates.“Markets are not in crisis – people are.”

More than 50 developing economies devote at least 10% of their tax revenues to interest payments, leaving little for schools, hospitals or infrastructure. Governments are forced into impossible choices:“default on creditors or default on their people,” Grynspan warned.

Digital economy: Growth and divides

The digital economy is booming. In 2023, developing economies crossed the $1 trillion mark in digital service exports, part of a $4.5 trillion global market. Artificial intelligence alone is projected to expand 25-fold in the next decade, reshaping trade, jobs and innovation.

But the benefits remain uneven. In least developed countries, just one-third of people are online and digital services account for only 20 percent of exports. UNCTAD has called for investment in infrastructure, data and skills, alongside global initiatives so that digital transformation becomes a driver of development, not division.

Rethinking progress

Gross domestic product (GDP) remains a main yardstick of economic performance, but UNCTAD argued it is no longer fit for purpose.“GDP counts oil spills and cigarettes,” Grynspan said,“but not a mother caring for her child, or the Amazon rainforest unless it is cut down.”

UNCTAD is calling for new measures that capture wellbeing, ecosystems and social cohesion, by“making the invisible visible.”

Multilateralism under pressure

Looking ahead, Grynspan described today's global context as an“interim moment” where outcomes depend on leaders' choices. The presence of more than 150 heads of state and government leaders at UNGA80 showed that multilateralism is still alive. Her message: Multipolarity should expand the centre, not replace it – more voices make the system stronger.

From New York to Geneva

Attention now shifts from UNGA80 to Geneva, where Switzerland will host the 16th United Nations Conference on Trade and Development (UNCTAD16 ) from 20 to 23 October.

Held every four years, the gathering is UNCTAD's highest forum, bringing together heads of state, ministers, Nobel laureates and leading experts from its 195 member states.

This year's theme,“Shaping the future: Driving economic transformation for equitable, inclusive and sustainable development”, will test whether governments can turn UNGA debate into action. Leaders are expected to work on concrete steps to lower debt costs, unlock investment, foster digital transformation and strengthen resilience in trade.

“Development is not a luxury but a necessity,” Grynspan said, framing Geneva as a moment to move from warning signs to workable solutions.

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