Climate crisis could see ‘collapse’ of some economies without diversification, warns UN trade chief

11 September 2019

Climate change poses an “existential threat to commodity-dependent developing countries”, the United Nation’s trade chief said on Wednesday, pointing to a newly released report highlighting the need to diversify economies and exports.


UNCTD Secretary-General Mukhisa Kituyi (2019) by UN News Kiswahili/ Patrick Newman

“The climate crisis…will result in the collapse of some economies if decisive action is not taken now,” UNCTAD Secretary-General Mukhisa Kituyi stressed. “Now more than ever before, these countries need to assess their diversification potential and reduce their commodity dependence, which for decades has kept them exposed to volatile markets and climate change”.

According to the report, a successful diversification strategy will mostly likely involve a combination of horizontal policies, such education and health investments, and targeted measures to promote promising sectors.

Shifting practices

The climate crisis puts commodity-dependent developing countries most at risk because their economies depend on sectors which are highly exposed to extreme weather events, according to the report.


The report underscores that the high risk faced by these countries reinforces their need to adapt, diversify and modernize their economies.



Bringing Paris Agreement home


For this, stronger political will and greater mobilization of financial and human resources are necessary.


In addition, greening fiscal policies can help to ensure that taxes, subsidies and similar policy instruments assist in implementing action plans that would also work toward achieving the Sustainable Development Goals (SDGs).





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