By Deodat Maharaj

Gebze, Türkiye

Artificial intelligence and the use of frontier technologies are already transforming trade
and boosting prosperity, particularly for developed, and some developing countries. This
ranges from digital exchange of documents, the digitalisation of trade processes and
leveraging online platforms to fast-track cross-border trade. The rapid adoption of new
technologies will further consolidate the dominance of world trade by developed
economies, which currently account for roughly 74% of global trade according to the
United Nations Conference on Trade and Development (UNCTAD).The world’s 44 Least
Developed Countries (LDCs) with a population of an estimated 1.4 billion people are
seeing a different trajectory altogether. According to the World Trade Organisation, they
account for less than 1% of the world’s merchandise trade. LDCs continue to reel from
the relentless onslaught of bad news including increased protectionist barriers.
UNCTAD has estimated that tariffs on LDCs will have a devastating consequence,
possibly leading to an estimated 54% reduction in the exports from the world’s poorest
countries.

In this dire situation, exacerbated by declining overseas development assistance, what
does a LDC do to survive in this difficult trade environment. To start with, they must
continue to advocate globally for fairer terms of trade. At the same time, they need to be
more aggressive in addressing matters for which they have control. Otherwise, the
status quo will leave their people in a perpetually disadvantageous situation. Imagine
paying three times more than your competitors just to ship a single crate of goods
across a border. For millions of entrepreneurs in the world’s LDCs, it is the everyday cost
of doing business. Technology offers a way out in reducing these high costs.

Indeed, when the international community gathered in Sevilla for the Fourth
International Conference on Financing for Development (FfD4) in July 2025, one truth
stood out: Technology is no longer a luxury- it is a prerequisite for effective participation
in global trade. The outcome document was clear that for the world’s 44 LDCs, bridging
infrastructure gaps, building domestic technological capacity, and leveraging science,
technology and innovation are vital to unlocking trade opportunities.

So, given the challenges and opportunities, what forms the core elements of an action
agenda for LDCs to leverage trade to generate jobs and opportunities for its people.

Firstly, there is a need to pivot to digital solutions which can dramatically reduce trade
costs and open new markets. According to the World Bank, paperless customs and
single-window systems have been proven to cut clearance times by up to 50% reducing
bureaucracy that stifles commerce. In Benin, automating port procedures reduced
processing time from 18 days to just three days (World Bank). E-commerce platforms,
when paired with secure payment systems and targeted training, have shown
remarkable potential.

Secondly, invest in digital infrastructure. The data suggest that LDCs still have a lot of
catching up to do. The solution is for development partners, and the international
financial institutions need to steer more resources in this area with a fixed percentage
of resources, say, 15% of a country’s portfolio dedicated to boosting digital
infrastructure.

Thirdly, focus on value addition and reduce transition away from the export of raw
commodities. This in turn requires the human resource capacity to spur innovation and
creativity. Boosting investment in research and development can pay rich dividends.
According to the World Economic Forum, LDCs invest less than 1% of GDP in research
and development comparted to developed countries. The Republic of Korea invests 4%.

Finally, for LDCs to enter the technological age, their businesses must lead the way. It is
difficult to do so in some countries like Burundi where internet penetration is a mere 5%
of the population. The average internet penetration is around 38%. So, in addition to
digital infrastructure, support must be provided to micro, small and medium scale
enterprises to benefit from the opportunities provided by technology to boost trade,
thereby creating jobs and opportunities. This includes the establishment of incubators
to support this business sector; boosting their technological capacities to trade and
profile their businesses on digital platforms; and helping them to deliver services
created by the digital economy. Rwanda has been a pioneer in this regard.

Of course, technology alone will not address all the challenges faced by LDCs. However,
by delivering cost-efficient solutions, it can help level the playing field and drive
transformation. It is time for the international community and development partners to
back their words with action in helping LDCs advance this agenda. Since LDCs
represent an emerging market of 1.4 billion people, when they rise, everyone else will
rise with them.

Deodat Maharaj, a national of Trinidad and Tobago is the Managing Director of the United
Nations Technology Bank for the Least Developed Countries and can be reached at:
[email protected]