The World Bank has issued a clarion call for developing countries to play a more active role in shaping trade standards for economic growth, emphasizing that global rules are increasingly favouring wealthy nations and multinational corporations.
In its 2025 World Development Report titled Standards for Development, the financial institution outlined the transformative potential of standards across diverse sectors—from food safety and labelling to advanced telecommunications like 5G.
Standards, the report notes, are rapidly becoming as foundational to economic development as traditional infrastructure such as roads, ports, and power systems.
While these rules have helped reduce trade friction and facilitate international commerce, they are also being used as non-tariff barriers, affecting nearly 90 per cent of global trade—a dramatic rise from just 15 per cent in the late 1990s.
Trade Standards for Economic Growth: A Strategic Imperative
Chief Economist and Senior Vice President for Development Economics at the World Bank, Indermit Gill, highlighted that standards often operate silently but are central to everyday commerce and economic activity.
“When they are set right, they go largely unnoticed: the ship sails through the canal, the building withstands an earthquake, and a kilogram weighs the same in Kenya as in Canada,” Gill said.
He stressed that countries that actively adapt to, align with, and author international standards can use them as strategic tools to foster growth, boost trade, and reduce poverty.
The World Bank’s report draws attention to the surge in global standard-setting activities. Over half of the 20,000 standards issued by the International Organization for Standardisation (ISO) in the past seventy years were developed after 2000, with more than 7,000 standards created globally in 2024 alone.
Despite this expansion, developing countries remain under-represented in decision-making bodies due to limited technical capacity and resources.
On average, developing nations participate in fewer than one-third of ISO technical committees, and even less in other standard-setting bodies.
Implementing Trade Standards for Economic Growth in Developing Economies
The World Bank report recommends an adapt–align–author framework for developing nations seeking to maximise the impact of trade standards for economic growth.
Initially, countries should adapt international standards to local conditions rather than adopting the most stringent global rules.
This allows them to implement standards realistically while addressing domestic economic needs.
As technical capacity improves, the report suggests that countries should align with international norms to facilitate market access, reduce duplication, and attract foreign investment.
In the long term, nations are encouraged to author new standards or update existing ones, ensuring that global frameworks reflect their national priorities and development goals.
Xavier Giné, Director of the 2025 World Development Report, underlined that standards should not be treated as a technical afterthought but as a core component of national development strategies.
“The lesson from the most successful economies is that standards are not just technical rules; they are the foundation for innovation and global competitiveness,” Giné said.
He emphasized that countries integrating standards into their development frameworks are better positioned to achieve sustainable growth and economic prosperity.
The Nigerian Context: Opportunities and Challenges
For countries like Nigeria, adopting trade standards for economic growth could unlock significant economic benefits.
Standards in areas such as agriculture, manufacturing, and digital technologies could improve product quality, enhance market access, and reduce trade barriers.
For instance, harmonised food safety and labelling standards would facilitate smoother exports of Nigerian produce to global markets.
However, challenges remain. Limited technical expertise, underfunded institutions, and low awareness of international standardisation processes hinder effective participation in global decision-making.
Experts argue that strengthening institutional capacity, investing in workforce skills, and engaging actively with international standard-setting bodies are crucial steps for Nigeria and similar economies.
Secretary-General of ISO, Sergio Mujica, stressed that international standards must no longer be seen as invisible infrastructure but as critical enablers of inclusive and sustainable development.
“Ensuring that all countries can participate in the creation and implementation of standards is key to unlocking their full development potential,” he said.
Standards as a Tool for Inclusive Development
The World Bank’s report underscores that trade standards for economic growth are not just about technical compliance but about empowering countries to compete effectively in the global market.
By embedding standards in national development strategies, developing nations can foster innovation, improve productivity, and enhance social welfare.
The report concludes that global collaboration and capacity-building are essential to ensuring that all countries benefit from standards.
For developing economies, the adoption, adaptation, and authorship of standards represent a strategic pathway to economic resilience, competitive advantage, and sustainable development.
As the global economy continues to evolve, the World Bank’s message is clear: developing countries must no longer remain passive recipients of standards but active participants shaping the rules that govern the international trade landscape.
Doing so could be a decisive step in leveraging trade standards for economic growth, reducing inequality, and building stronger, more competitive economies in the 21st century.
