CUTS Daily Bulletin # 02 | October 21, 2025
BRIDGING THE CREDIT RATING AND MARKET INFORMATION GAPS
 
This session examined how credit ratings and information asymmetries shape borrowing costs and market access for developing economies. Speakers explored what governments, credit rating agencies (CRAs), development banks, and civil society can each do—immediately and structurally—to narrow “uncertainty premia,” strengthen trust, and improve the quality and timeliness of sovereign debt data. The key takeaways were:
  1. Trust hinges on data quality, not just CRA methodology transparency: CRA sovereign frameworks are published, but the real bottleneck is often weak, late, or inconsistent country data—especially detailed debt stocks, maturities, and creditor composition. Better, timely, and internally consistent fiscal and debt data (including stock–flow reconciliations) are square one for improving ratings outcomes and investor confidence.
  2. Build (and use) open, granular debt repositories: Hidden liabilities elevate risk premia. “Public debt is public.” Emerging datasets (e.g., the African Debt Database) show that standardized, open, instrument-level records are achievable and should be universal. Legal measures—such as making undisclosed debt non-enforceable—can institutionalize transparency for all parties.
  3. Improve sovereign–CRA engagement and clarity on discretion: Ratings reflect human judgement, not formulas. Structured dialogue helps governments present forward-looking strategies, risk contingencies, and data to counter pessimistic views. CRAs should clarify discretionary adjustments, key definitions (e.g., debt perimeter), and expand access to non-confidential research.
  4. Diversify market voices—alongside regulatory realism: Expanding regional or public CRAs (e.g., an African CRA) can broaden perspectives and reduce rating concentration. The goal is credible, independent diversity to enhance market function. Meanwhile, developing countries remain underrepresented in key global standard-setting bodies, influencing how ratings shape regulation.
  5. Mind the ‘investment-grade cliff,’ climate trade-offs, and MDB headroom: Small rating shifts can trigger major market effects. Climate policies demand near-term fiscal discipline for long-term gains. MDBs can expand lending using modern risk tools, but clearer CRA methods and strategies are needed to turn this potential into impact.

    The key speakers were Rebeca Grynspan, Mia Amor Mottley, Phạm Minh Chính, José Ramos-Horta, Sandra V. Husbands, Guy Parmelin, Annalena Baerbock, Tatiana Valovaya and Damon Embling. 
(Reporting by Peter Maundu, CUTS International, Geneva)
EXPANDING PRODUCTIVE CAPACITIES TO ENHANCE DEVELOPING COUNTRIES’ FINANCIAL SUSTAINABILITY
 
The UNCTAD16 parallel event titled “Expanding Productive Capacities to Enhance Developing Countries’ Financial Sustainability” brought together policymakers, academics, and development practitioners to explore how nations can build the foundations of economic resilience, innovation, and sustainable growth. The session’s key Takeaways were:
  1. Productive Capacity as the Foundation of Sustainable Development: Speakers emphasized that strengthening productive capacities—through infrastructure, skills, technology, and institutions—is essential for economic transformation, export diversification, resilience, and sustainable development.
  2. Lessons from East Asia: Strategic Sequencing and Regional Collaboration: The speakers underscored the importance of sequencing reforms, focusing on strategic sectors, and fostering regional collaboration. Success in the region was driven by aligning investment, trade, and innovation with strong institutions and education systems—offering a model for other developing regions pursuing structural transformation.
  3. Financing Productive Capacity: Balancing Domestic and External Sources: Financing emerged as a central theme, with speakers highlighting the need to mobilise domestic resources, reinvest profits, and use debt strategically for productive investments. They also noted the growing challenges faced by developing and middle-income countries as concessional finance declines, emphasising innovative solutions such as sustainable development finance assessments (SDFA), blended finance, and remittance-based investments to close funding gaps.
  4. Human Capital, Technology, and Predictive Intelligence: Speakers emphasised that investing in education, digitalisation, and data-driven foresight is essential for future competitiveness. With automation and AI reshaping industries, developing countries must prioritise digital skills and technological adaptation to maintain productivity and attract sustainable investment.
  5. Policy Coherence, Governance, and Regional Integration: Speakers highlighted that strong institutions and consistent policies are essential for sustainable investment and financial stability. Regional cooperation in trade, infrastructure, and energy was seen as key to boosting competitiveness, while integrating public and private financing was viewed as vital to achieving the Sustainable Development Goals (SDGs).

    The session featured a distinguished panel of experts and policymakers, including H.E. Eptek Kamran (Cambodia), Xianyuan Fu (Hong Kong University), Gabriel Despatu (Tony Blair Institute for Global Change), Regina Ombam (Kenya) and Wilson Pinar (Cape Verde).

(Reporting by Peter Maundu, CUTS International, Geneva)
Ministerial Roundtable 01 - Harnessing Artificial Intelligence For Inclusive And Sustainable Development
 
This ministerial roundtable, organised as part of the 16th session of the United Nations Conference on Trade and Development held on 21st October 2025, sought to examine how artificial intelligence can be leveraged to promote inclusive and sustainable development in developing countries. Given the dual nature of AI as both a catalyst for economic transformation and a potential source of inequality, the session explored the opportunities and challenges that AI presents, addressing questions of access to technology, capacity building, infrastructure requirements, and governance frameworks. The roundtable brought together ministers and policymakers to discuss concrete national strategies and international cooperation mechanisms to ensure AI deployment advances the Sustainable Development Goals while managing associated risks. The key takeaways from the discussion were:
  1. AI as Development Catalyst: AI represents significant opportunities with digital cooperation contributing approximately 21% of global GDP, equivalent to trade in goods. Practical applications include Brazil's AI-based healthcare facility in São Paulo with ICU capabilities, Finland's efficient AI-powered tax collection system, and Ghana's integration of AI in trade and agribusiness sectors, demonstrating AI's potential across education, agriculture, healthcare, and public services.
  2. National Strategies Required: Countries emphasised comprehensive national AI strategies with human-centric approaches. Korea made AI a national agenda with dedicated computing centres, Türkiye developed a six-pillar strategy encompassing expert training and entrepreneurship support, and Ghana adopted a 10-year AI policy ensuring integration from ministries to youth accessibility, highlighting the need for strategic planning to realise AI's potential.
  3. Infrastructure Investment Critical: Physical and digital infrastructure gaps pose significant challenges, with 2.6 billion people offline and Africa hosting less than 2% of global data centres, requiring $1.6 trillion investment. Brazil emphasised that internet access must support heavy AI operations, not merely basic connectivity, while Finland highlighted AI centres' substantial electricity requirements, necessitating alignment with Paris Agreement objectives.
  4. International Governance Framework: Countries advocated for international AI regimes with minimum standards for data access and collection to prevent widening divides between developed and developing nations. Korea emphasised regional cooperation through ASEAN initiatives, while the UN General Assembly approved mechanisms including global governance dialogue and scientific panels, with Türkiye supporting neighbouring countries through South-South cooperation.
  5. Human-Centric and Ethical: Participants stressed that AI must be trustworthy, secure, and respect fundamental rights to deliver socio-economic benefits. Estonia emphasised mitigating risks through initiatives like AI Leap for teachers and students. The discussion acknowledged AI's dual employment impact, recognising that efficiency gains create opportunities elsewhere, requiring workforce transition planning and skills development aligned with human capital investment.

    The key speakers were Philip Fox-Drummond Gough, Elizabeth Ofosu-Adjare, Mariin Ratnik, Jukka Salovaara, Kim Hee-sang, Zekeriya Çostu, Tomas Lamanauskas, and Mohamed Abdelsalam.

(Reporting by Mritunjai Kapila, CUTS International, Geneva)
MINISTERIAL ROUNDTABLE 02 - MAKING THE DIGITAL ECONOMY INCLUSIVE AND SUSTAINABLE THROUGH COOPERATION
 
This ministerial roundtable, organised as part of the 16th session of the United Nations Conference on Trade and Development (UNCTAD16) held on 21st October 2025, sought to examine strategies for making the digital economy inclusive and sustainable through international cooperation. With services comprising 56% of global trade and growing 9% annually, yet two-thirds of the world remaining offline and LDC services representing less than 20% of their economies, the session explored the stark digital divide. The key takeaways from the discussion were:
  1. Bridging the Digital Divide: With 2.8 billion people still unconnected, bridging the digital divide emerged as the most urgent challenge requiring investment and private sector collaboration. Indonesia's digital economy is predicted to reach $146 billion with $300 billion by 2030, implementing five strategic pillars, including Starlink satellite infrastructure. Rwanda demonstrates connectivity complexity with 99% infrastructure but only 13% of the population online due to device costs, while Pakistan and Iran were identified as national champions for low-cost devices.
  2. Human-Centric Digital Strategies: Countries emphasised people-centred approaches addressing inequality and environmental concerns. Portugal launched its digital strategy with three pillars of universal connectivity, digital public services, and SME support, appointing a Secretary of State to manage data centre energy consumption. Costa Rica demonstrated how trade openness and digital economy complement each other through e-commerce agreements and comprehensive trade rules, with Central American digital platforms achieving low-cost, inclusive participation.
  3. National Implementation Frameworks: Countries showcased comprehensive national strategies with specific mechanisms. Saudi Arabia became the fastest-growing ICT market regionally and first globally in cybersecurity through five pillars: government restructuring, legal infrastructure for e-business protection, infrastructure investment, knowledge partnerships with UNCTAD and the World Bank, and stakeholder engagement. Indonesia's e-trade assessment provides a valuable blueprint showing investment gaps for Global South countries seeking digital economy access.
  4. International Cooperation Required: Multilateral cooperation emerged as essential for scaling digital transformation. Portugal launched a UN fellowship program training young professionals in digital cooperation skills, emphasising partnership of equals. The WTO plurilateral agreement on electronic commerce needs integration into global frameworks. At the same time, South-South cooperation was emphasised for local production and resilience in AI investment, currently concentrated in a handful of countries with $300 billion USD investment.
  5. Regulatory Challenges and Solutions: Countries identified specific regulatory gaps requiring international attention. Zimbabwe highlighted mobile money liquidity requiring international regulation, social media monetisation disparities where platforms pay more in developed markets, and cross-border payment systems for SMEs needing alternatives to US dollar-based banking.

    The key speakers were Rebeca Grynspan, Arnoldo André Tinoco, Arrmanatha Christiawan Nasir, Ana Isabel Xavier, Deemah AlYahya, Angeline Tham, Deborah Rivas Saavedra, Mthuli Ncube, and Majid bin Abdullah Al-Kassabi.

(Reporting by Mritunjai Kapila, CUTS International, Geneva)
Session-01: MINISTERIAL ROUNDTABLE: HARNESSING ARTIFICIAL INTELLIGENCE FOR INCLUSIVE AND SUSTAINABLE DEVELOPMENT
 
This session, organized by the UN Trade and Development (UNCTAD) as part of UNCTAD16, drawing on the Technology and Innovation Report 2025, explored national AI strategies and global cooperation to make AI accessible and beneficial for all, contributing to objectives of the Global Digital Compact. The key takeaways from the discussion were:
  1. Development Path Challenges: AI presents dual opportunities and risks for developing countries, potentially affecting development costs in countries with cheap labor markets. There is recognition that AI may not make everything better and could have reverse effects if not properly managed.
  2. Practical AI Applications: Countries are implementing AI-based health facilities, tax collection systems, and clean energy solutions with interoperability without inhibiting innovation. Examples include Turkey supporting innovation and research in its country and neighboring countries, demonstrating usage of AI for the good of humanity.
  3. Capacity Building and Harmonization: Capacity building in the AI age must be done differently, adapting to reflect differences in economic means across countries. No single country can work with AI alone as harmonization and international cooperation are essential, with a new logic based on human capital needs between consumers and producers.
  4. Governance with Humanity at Center: The language of ethics must support human progress, with humanity at the center of governance frameworks. Technology does not always show empathy and compassion, requiring human oversight to ensure AI benefits are distributed equitably and serve the good of humanity.
  5. Geopolitical and Social Impact: AI is bringing countries together with geopolitical significance while also causing waves in society. There is need for policies that balance opportunities with challenges, with true progression decided by added value to humanity and country experiences providing rich learning opportunities.   
    The key speakers were Rebeca Grynspan, Philip Fox Drummond Gough, Jukka Salovaara, Kim Hee-sang, Çetin Ali Dönmez, Elizabeth Ofosu-Adjare, Mariin Ratnik, Tomas Lamanauskas and Mohamed Abdelsalam.

(Reporting by Priyadarshini Venkatesh, CUTS International, Geneva)
Session-02: INVESTMENT FACILITATION: PROGRESS, PROSPECTS AND POLICY OPTIONS
 
This session, organized by the UN Trade and Development (UNCTAD) as part of UNCTAD16, took stock of recent milestones and examined forward-looking strategies to facilitate sustainable capital flows, paving the way and contributing to the World Investment Forum 2026 and the 14th Ministerial Conference of the World Trade Organization where investment facilitation will be high on the agenda. The key takeaways from the discussion were:
  1. Investment Environment Fundamentals: Investment facilitation alone is not enough, countries need to provide long-term business stability based on sound underlying principles including trust, transparency, and predictability. Digital platforms can cut costs, but voluntary investor engagement only works when governments are reliable.
  2. Bilateral and Multilateral Relations: There is need for more investment between continents, such as increased European investment in Africa, to strengthen economic relations. Emphasis on the creative part of bilateral and multilateral investments can help build sustainable partnerships.
  3. Investment Facilitation for Development Agreement: The IFDA provides Special and Differential Treatment and technical assistance to help developing countries and LDCs attract investment, benefiting both host and home countries. Digital tools for investment facilitation represent a rising trend in LDCs and developing countries.
  4. Capacity Building Requirements: Both public and private sectors need capacity building wherein public sector must understand responsibilities and  private sector must understand benefits. Addressing lack of legal certainty, bureaucratic burdens, and lack of business partners remains critical.
  5. Bridging Mechanisms and Forward Action: Investment facilitation creates bridges between investors and governments through modeling investment laws with ombudsman mandates. This includes forward-looking action that emphasizes creating predictable environments where investors can rely on government commitments.     The key speakers were Pedro Manuel Moreno, Teresa Moreira, Ana Isabel Xavier, Cielo Elainne Rusinque Urrego, Hardin Ratshisusu Pinuccia Contino and Helena Leurent. 

(Reporting by Priyadarshini Venkatesh, CUTS International, Geneva)
Session-03: ARTIFICIAL INTELLIGENCE FOR BETTER GOVERNMENT, INCLUSIVE AND SUSTAINABLE DEVELOPMENT: GLOBAL EXPERIENCES AND COOPERATION
 
This session, organized by the Republic of Korea and UN Trade and Development (UNCTAD) as part of UNCTAD16, explored how AI learns from data to model inherent logic and patterns, with foundation models pre-trained on massive data acting as the basis for various tasks. The key takeaways from the discussion were:
  1. AI Infrastructure Requirements: Larger AI systems require training data exceeding tens of trillions of tokens, necessitating hyperscale data centers with massive GPU accelerator clusters. Network and AI are inseparable, enabling citizens to receive public services tailored to specific needs.
  2. Inclusive Digital Society: Countries like South Korea are developing inclusive digital societies using AI, with emphasis on ensuring citizens receive public services tailored to specific needs through AI-enabled systems.
  3. AI Divide and Capacity Building: The AI divide is based on existing divides including literacy and digital access. Capacity building in the AI age must be approached differently depending on the development stages, with financing requirements varying accordingly and need to ensure linguistic diversity.
  4. Policy Frameworks and Data Barriers: Applicable policy frameworks must address data barriers, recognizing that modern supply flows increasingly depend on data flows. Data localization is costly and data should not be restricted to enable effective AI deployment.
  5. Stage-Based Development Approach: Financing and implementation strategies differ depending on the stage of AI development, requiring flexible approaches that account for varying national capacities and infrastructure readiness levels.   
    The key speakers were Timea Suto, Heejin Kim, Taesik C, Fredriksson T. and Isabel de Sola. 

(Reporting by Priyadarshini Venkatesh, CUTS International, Geneva)
Session-04: RESHAPING PROGRESS: MOVING BEYOND GDP FOR INCLUSIVE AND SUSTAINABLE TRANSFORMATION
 
This session, organized by the UN Trade and Development (UNCTAD) and Beyond Lab and its Youth Network on Beyond GDP as part of UNCTAD16, engaged with the United Nations Secretary-General’s high-level expert group on the Beyond GDP project, supported jointly by UNCTAD, the Department of Economic and Social Affairs, the United Nations Development Programme and the Executive Office of the Secretary-General. It explored how measuring progress differently can guide smarter policy, investment and economic transformation for current and future generations. The key takeaways from the discussion were:
  1. GDP Limitations and Alternative Metrics: GDP does not measure wellbeing, inclusiveness, or improvements from within communities, failing to capture non-material wellbeing and not giving voice to the voiceless. Bhutan prioritizes gross national happiness over GDP, and Uganda recognizes that GDP is "politically safe but economically blind."
  2. Tripartite Framework Approach: The proposed framework focuses on wellbeing of individuals and society today, inclusiveness and equity, and sustainability. Going beyond GDP is not about adding to policy but making people and planet the goal of policy itself, requiring integration with GDP rather than replacement.
  3. Business and Private Sector Engagement: Social and environmental sustainability are good for business, requiring engagement with the private sector. This represents a human story about opportunity, with digital cooperation building bridges and action-oriented cooperation reshaping policies to focus on people and planet.
  4. Inclusive Measurement Process: New measurements must be grounded in human rights standards with inclusive processes involving civil society and indigenous communities. There is need to avoid paternalism while recognizing that routes to welfare differ across countries, with the process requiring engagement with skeptics beyond echo chambers.
  5. Implementation Realities: Countries face excessive debt burdens limiting fiscal space, particularly small island states requiring resilience focus. Practical challenges include intra-country inclusion examining where wellbeing falls short, intergenerational engagement with youth, and recognizing that work not captured in GDP (such as in Uganda) builds economic foundations.

    The key speakers were Rebeca Grynspan, Namgyal Dorji, Deemah AlYahya, Nora Lustig, Mary Beth Goodman, Matthew Anthony Wilson, Peggy Hicks, Director, Sabina Alkire, Rutger Hoekstra, Max Amanu and Nathalie Delorme. 

(Reporting by Priyadarshini Venkatesh, CUTS International, Geneva)
Session-05: CLIMATE-RESILIENT DEVELOPMENT: FINANCE, STRUCTURAL TRANSFORMATION AND COOPERATION
 
This session, organized by the UN Trade and Development (UNCTAD) as part of UNCTAD16, explored the innovative partnerships that developing countries are forging to achieve low-carbon development paths through mutual learning, solidarity, and shared solutions. It showcased the work of UNCTAD in supporting cooperation for climate-resilient development, including climate finance, green industrial policy, and sustainable development strategies. The key takeaways from the discussion were:
  1. Climate Vulnerability and Fiscal Response: Countries face intense weather events creating significant fiscal burdens, with Jamaica spending six months yearly in hurricane season. Multi-layered finance funds like  at local and disaster response levels are being created to address climate shocks, while landlocked countries like Rwanda face different climate challenges requiring tailored approaches.
  2. Debt and Financing Constraints: Fiscal space in the global south is narrowing and borrowing higher amounts is hindering implementation. Countries face situations where projects remain incomplete while taking loans on existing loans, and depreciation stops the execution of projects, creating technology and capacity gaps.
  3. South-South Cooperation Mechanisms: Developing countries are turning to South-South cooperation for security and financing amid macroeconomic volatility. Initiatives include debt-for-nature and debt-for-climate swaps, borrowers forums, rapid response mechanisms implemented by IMF, and debt platform decentralization to provide fiscal discipline.
  4. Carbon Markets and Standards: Discussions on carbon market standards are ongoing, with established principles on carbon accounting including fairness and technology neutrality. However, low-carbon industrialization has become contentious, with some initiatives collapsing due to disagreements on implementation frameworks.
  5. Regional Cooperation Importance: Cooperation is essential to create economies less exposed to shocks, with regional integration emerging as a vital lever for green structural transformation. This includes addressing technology gaps and capacity constraints while aligning climate and development agendas despite macroeconomic challenges.

    The key speakers were Pedro Manuel Moreno, Kamina Johnson Smith, Umid Abidhadjaev, Philip Fox-Drummond Gough, Urujeni Bakuramutsa, Yuefen Li and Nathalie Bernasconi-Osterwalder. 

(Reporting by Priyadarshini Venkatesh, CUTS International, Geneva)
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