UN Technology Bank Deodat Maharaj

By Deodat Maharaj
Gebze, Türkiye

Artificial intelligence (AI) is rapidly changing our world. It has helped a few companies in
developed countries set record-breaking profits. This week, Nvidia, a leading US AI
company, hit a market value of USD5 trillion. Nvidia, together with the other six
technology companies known as the Magnificent Seven, reached a market
capitalisation of USD22 trillion. This value easily eclipses the combined GDP of the
world’s 44 Least Developed Countries (LDCs), Small Island Developing States and
Landlocked Developing Countries.

These businesses continue to make massive investments in this transformational
technology. Not only are investments being made in AI for the future, but benefits are
also already being reaped as it accelerates global commerce and rapidly transforms
markets. According to the World Economic Forum, AI is streamlining supply chains,
optimising production, and enabling data-driven trade decisions, giving companies a big
competitive edge in global markets. Thus far, the beneficiaries have been those living in
the developed world, and a few developing countries with high technological capacities,
like India.

By and large, developing countries have lagged far behind this technological revolution.
The world’s 44 LDCs and the Small Island Developing States are those that have been
almost completely left out. According to UNCTAD, LDCs risk being excluded from the
economic benefits or the AI revolution. Many LDCs and Small Island Developing States
struggle with limited access to digital tools, relying on traditional methods for trade
documentation, market analysis, and logistics. This is happening as others race ahead.
This widening gap threatens to marginalize these countries in international trade and
underscores the urgency of ensuring they can participate fully in the AI-driven global
economy.

AI holds transformative potential for developing countries across sectors critical to
economic growth and trade. The World Bank has noted that in agriculture, AI-driven
tools can improve crop yields, forecast market demand, and enhance supply chain
efficiency. It can also strengthen food security and export earnings. In trade and
logistics, AI can optimize operations, reduce transaction costs, and help local producers
access new markets.

Beyond commercial applications, AI can bolster disaster preparedness, enabling
governments and businesses to allocate resources efficiently and minimize losses. The
use of AI can be a game changer in responding to massive natural disasters such as
the one caused by Hurricane Melissa in Jamaica a few days ago.

Despite these opportunities, the poorest and most vulnerable countries face significant
hurdles in accessing and benefiting from AI. The International Telecommunications
Union has noted that many countries lack reliable electricity, broadband connectivity,
and computing resources, impeding the deployment of AI technologies. This is
compounded by human capacity constraints and limited fiscal space to make the
requisite investments.

Given this, what is the best way forward for the world’s poorest and most vulnerable
countries? Firstly, policy and governance frameworks for leveraging AI for development
transformation are urgently, and we can learn from others. For example, Rwanda, a
leader in the field of using technology to drive transformation has developed a National
Artificial Intelligence Policy. Another example is Trinidad and Tobago, which recently
established a Ministry of Public Administration and Artificial Intelligence.

Secondly, capacity building, especially for policy leaders, is key. This must be
augmented by making the requisite investments in universities and centers of
excellence. Given the importance of low-cost and high-impact solutions, building
partnerships with institutions in the global south is absolutely vital.

Finally, financing remains key. However, given the downward trends in overseas
development assistance, accessing finance, especially grant and concessional
resources from other sources will be important. Consequently, international financial
institutions, especially the regional development banks, have a critical role to play. Since
the countries themselves are shareholders, every effort should be made to establish
special purpose windows of grants and concessional financing to help accelerate
adoption of relevant, low-cost, relevant and high-impact AI technological solutions.

In an adverse financing environment, achieving the above will be difficult. This is where
Tech Diplomacy comes in and must be a central element of a country’s approach to
foreign policy. This will be the subject of another piece.

In summary, AI is shaping and changing the world now. For the poorest and most
vulnerable countries, all is not lost. With strategic investments, forward-looking and
inclusive policies, and international cooperation via Tech Diplomacy, AI can become a
powerful tool for their sustainable growth and development.

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