The United Nations Conference on Trade and Development (UNCTAD) said that developing countries are now contributing much more to the global economy than ever before.

UNCTAD released the information that developing countries’ share in global value-added trade is now at about 40 percent, whereas the same figure was about 20 percent in 1990. Economists give most of the credit to transnational markets and global value chains, the chain of different countries in which a single multinational company operates.

These global value chains allow a weaker developing country to create an economic partnership with more developed economies by supplying raw materials and basic manufacturing or design. The capacity from growth comes from climbing the “chain,” by building the local economy, training workers, and producing more complex goods. People always ask for results in the mission to fight poverty, this growth is definitely evidence that economies around the developing world are growing.

These statistics, along with the rapidly decreasing statistic of people living in extreme poverty, are proof that real progress is being made as developing countries show real growth.

– Kevin Sullivan

Source: Industry Week
Photo: The Graduate Institute