World News in Brief: Global economy ‘on the brink’, ending slavery, Latin America jobs update

Shifts in financial markets now move global trade almost as strongly as actual economic activity, shaping prospects for developing countries in particular.

“Trade is not just a chain of suppliers. It is also a chain of credit lines, payment systems, currency markets and capital flows,” said Rebeca Grynspan, UNCTAD Secretary-General.

Developing economies face mounting pressures

Developing economies are growing faster than advanced ones, but high borrowing costs, financial market volatility, and climate risks are limiting their ability to invest and sustain growth, the report highlights.  

Climate vulnerability adds to financial pressures. Countries repeatedly exposed to extreme weather now pay an estimated 20 billion dollars more each year in interest because lenders perceive them as riskier, according to UNCTAD.  

Dollar dominance  

At the same time, the United States dollar remains central to global finance, even as some diversification takes place.  

Its share of cross-border payments through the SWIFT electronic transfer system has risen sharply – from 39 per cent to about 50 per cent in five years – and the United States continues to dominate global stock and bond markets.  

While this can bring some stability during financial shocks, it also means developing countries are ever more exposed to US financial cycles that they have little power to shape, UNCTAD said.

Global modern slavery rises to 50 million

“Slavery is a horror from the history books – and a relentless contemporary crisis.”, said Secretary-General António Guterres as the UN commemorated the International Day for the Abolition of Slavery, marked annually on 2 December.

More than 15 million men, women, and children were captured, chained, and forced into slavery across oceans the UN chief said; Many lost their lives during the harrowing journey.

Today, an estimated 50 million people are trapped in contemporary forms of slavery, many of them women and children.  

This day is devoted to raising awareness and mobilising action to end slavery and its modern manifestations, including human trafficking, sexual exploitation, child labour, forced marriage, and the recruitment of children into armed conflict.

Millions of workers exploited worldwide

Forced labour generates an estimated $236 billion in annual global profits, representing wages effectively stolen from workers, particularly affecting those already struggling to support their families, according to the UN.

“Contemporary forms of slavery are perpetuated by crime rings that prey on people struggling to cope with extreme poverty, discrimination or environmental degradation – and by traffickers who exploit people fleeing armed conflict or migrating in search of safety and opportunity. It robs people of their rights, and their humanity,” said Secretary-General António Guterres.

No region is exempt from the problem, with Asia and the Pacific having the highest number (15.1 million), followed by Europe and Central Asia (4.1 million), Africa (3.8 million), the Americas (3.6 million) and the Arab States (0.9 million).  

80 per cent of agricultural jobs in Latin America operate in the informal sector

More than 80 per cent of agricultural employment in Latin America continues to operate under informal labour arrangements – where workers lack formal protection and social security.  

Women, youth and older persons in rural areas continue to be disproportionately affected according to a new report by the International Labour Organization (ILO) and the Food and Agriculture Organization of the United Nations (FAO).  

The report reveals that 86.4 per cent of women work in informal jobs, compared to 78 per cent of men.

The informal sector also accounts for 46 per cent of all child labour in the region, while more than half of the workforce has low levels of education.  

Slow progress

While some progress has been made in Latin America, between 2019 and 2023, nearly half of all young workers in the sector — along with the vast majority of women — continue to be employed informally, the UN agencies noted.  

The ILO and FAO continue to work with governments, employers, and workers to design and implement integrated policies aimed at transforming the agricultural sector into a genuine engine of decent employment, food security, and sustainability across the region.