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A

UnitedNations

Distr.:General

29July2022

GeneralAssembly

Original:English

Seventy-seventhsession

Item20(a)oftheprovisionalagenda*

Globalizationandinterdependence:roleoftheUnitedNations

inpromotingdevelopmentinthecontextofglobalization

andinterdependence

Fulfillingthepromiseofglobalization:advancing

sustainabledevelopmentinaninterconnectedworld

ReportoftheSecretary-General

Summary

Thecoronavirusdisease(COVID-19)pandemicandotherongoingcriseshavepromptedreflectiononglobalization,whichhadalreadybegunaftertheglobalfinancialcrisis.

Itisclearthatglobalizationhasbroughtmanypositivedevelopmentsintermsofpovertyeradication,economicgrowth,higherlivingstandardsformanyandinnovativesolutionsforclimateactionandforachievingtheSustainableDevelopmentGoalsmoregenerally,aswellasmoreflexiblemovementofpeople,expandedtradeandfinance,andthewidespreaduseofinformationandcommunicationstechnologiesthathavebroadenedtheexchangeofideasandknowledgeamongpopulations.

Atthesametime,globalizationcanleave–andhasleft–manypeopleandcountriesbehind.ThishasbecomeespeciallyevidentduringtheCOVID-19pandemicwhereglobalizationincreasedvulnerabilityandsupportedtherapidspreadofCOVID-19acrosstheworld.Thepandemicalsodidnotinspireadequatecoordinatedinternationalresponses.Thishascontributedtotradeandsupplydisruptions,aswellasdistrustinglobalization,multilateralismandglobalinstitutions.

Thepresentreporthighlightsthatglobalizationisnecessaryandunavoidable,asthewholeworldisinterconnectedandinterdependent.However,italsoshowsaneedforpoliciestofosteradifferenttypeofglobalizationinordertobringbenefitstomorepeopleandsocieties.Theyincludereformingtheinternationalfinancialsystemtoallowequitableaccesstofinancialresources,improvingtheinternationaltradeandhealtharchitecturesandgreatlyincreasinginternationalsolidarity.Globalizationneedstobebuiltonafoundationofmoreresilientsocieties,establishedthroughsocialprotectionmeasures,moreinclusivelabourregulations,universalhealthcoverageandequityinaccesstoqualityeducation,whileshiftingtoanature-positiveeconomythat

*

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.

22-11961(E)100822

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preservestheplanet.The2030AgendaforSustainableDevelopmentprovidesablueprintforamoreinclusive,justandsustainableworld.However,achievingitrequiresnewapproachestoglobalizationbasedontheimperativeofsharedresponsibilitiesandthepromisetoleavenoonebehind.

ThepresentreporthasbeenpreparedinresponsetoGeneralAssembly

resolution

75/225

anddecision74/537B.

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I.Introduction

1.Asoutlinedinthe2019reportoftheSecretary-General

(A/74/239)

,globalizationhasbroughtmanypositivedevelopmentsovertheyears.Ithasdeepenedinterconnectednessamongcountriesthrougheverincreasinginternationalflowsoftrade,capital,technologyandpeople.Itiscreditedwithasustainedperiodofeconomicgrowth,povertyreductionandjobcreation,higherlivingstandardsformany,innovativesolutionsforclimateactionandtheachievementoftheSustainableDevelopmentGoalsmoregenerally.

2.Atthesametime,thesegainshavebeenunevenlydistributedwithinandacrosscountries.Globalizationandtheprocessofresourcereallocationworldwidehaveleftmanypeopleandcountriesbehind,owing,forexample,torapidtechnologicalchangesinthecontextofadeepdigitaldivide,inequalitiesinaccesstofinancialresourcesandevolvingemploymentstructuresthathaveledtojoblossesformanyworkers.

3.Thevariousdimensionsofglobalization,suchastrade,taxation,remittances,migration,environmentalimpactsandrisinginequalities,callforsolutionsthatcanbefoundonlyattheinternationallevel.However,trendsinthepastthreeyearswarrantfurtherreflectiononthefutureofglobalization.ThepresentreportprovidesanexplorationofhowglobalizationhasbeenimpactedbythepandemicandtheconflictinUkraine.Inthereport,theSecretary-Generalindicatesthatglobalizationisheretostay,butthatitneedstoevolve.Nationalandinternationalpolicieswillbecriticaltoensuringthatglobalizationbecomesaforceforpositivechangeandbenefitsthepoorestandmostvulnerablecountriesandpeople.

4.The2030AgendaforSustainableDevelopmentanditsSustainableDevelopmentGoalscontinuetoprovideablueprintforbuildinginclusivesocietiesandmakingglobalizationmorejustandequal.Itis,however,clearthatinordertodothis,transformativechangewillbeneededforallandnotjustforsome.

II.Impactofoverlappingcrisesonglobalization

5.Overthepastthreeyears,theworldhasobservedanevolutioninglobalization.Intimesofcrisis,interconnectednessandinterdependencehaveproventoincreasevulnerability.Thishasheldtrueforthecoronavirusdisease(COVID-19)pandemic,environmentalchallengesandhuman-madeconflicts.InthecaseofCOVID-19,thepandemicquicklyspreadworldwideatanacceleratedpaceowingtotheconstantglobalflowofpeople.TheWorldHealthOrganizationandtheDepartmentofEconomicandSocialAffairsoftheSecretariatestimatethatitcaused14.9millionexcessdeathsworldwidebetweenJanuary2020andDecember2021.Thepandemicalsoinducedtradedisruptions,supplycrisesandfoodshortages,aswellaseconomicslowdownsinmanycountries.Similarconsequenceshavebeenobservedwithothercrises,notablytheongoingconflictinUkraine.Inrecentyears,thevulnerabilitiescreatedbyglobalizationhavefuelledincreaseddistrustinglobalization,multilateralismandglobalinstitutions.

Before2020:promotingsustainabledevelopmentinthecontextof

acceleratingglobalization

6.EvenbeforetheonsetofCOVID-19,theworldwasnotontracktomeettheSustainableDevelopmentGoalsby2030inseveralkeyareas:thenaturalenvironmentcontinuedtodeteriorateatanalarmingrate,andprogressineffortstoendhumansufferingandcreateopportunityforallwastooslow.Globalhungerwasontherise

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andatleasthalfoftheworld’spopulationlackedessentialhealthservices.1Whilesomepositivedevelopmentshadbeenobserved,suchasfallingchildmortalityrates,electricityaccessinthepoorestcountries,reductionsinincomeinequalityinsomecountriesandpreferentialtradestatusforlower-incomecountries,2enormouschallengesremainedinpushingdevelopmentintherightdirection.Manufacturinggrowth,consideredanengineofoveralleconomicgrowth,hadbeendecliningforseveralyearsowingtotariffsandtradetensionsthataffectedallregionsandcountrygroups.Althoughglobalforeigndirectinvestmenttodevelopingeconomiesandofficialdevelopmentassistancewerestable,in2019thegrowthofremittanceshadslowedto4.7percent,from8.6percentinpreviousyears.3Thenumberofinternationalmigrantsworldwidehadreachedanall-timehighofnearly272million,from153millionin1990;forceddisplacementsacrossinternationalbordersaccountedforclosetoaquarteroftheincreaseinthenumberofallinternationalmigrantsbetween2010and2017.4

7.The2030Agendaacknowledgesthateradicatingpovertyinallitsformsanddimensions,includingextremepoverty,isthegreatestchallengefacingtheworldandanindispensablerequirementforsustainabledevelopment.Globalizationhascontributedsignificantlytotheadvancementofthisgoal,withtheincreasingintegrationofdevelopingcountriesintotheglobaleconomy,therebysupportingasignificantreductioninextremepovertyinrecentdecades.Tradehasclearlybeenoneofthefactorsthathasdriventhesuccessofsomedevelopingcountries,whileothershavelaggedbehind.Throughtradeandthediffusionoftechnologiesthathavefosteredeconomicgrowthandreducedpovertyinmanycountries,globalizationhasbroughtextraordinarybenefitstomanypeople.Theexpansionofglobalsupplychainshasenabledspecializationinnationaleconomies,allowingnationsandgeographicalregionstofocusontheireconomicstrengths.Thediffusionoftechnologieshasalsoallowedcountriestodevelopnewsectorsoftheireconomies.

8.Whiletrendsupto2020showedthatglobalizationhasbeenbeneficialfortheworldeconomyoverall,specificchallengesforbothdevelopedanddevelopingcountriesbecamemoreapparent.Acceleratingglobalizationledtoconsiderableshortcomingsinpromotingequality,withtheincomegapbetweentherichestandpoorestcountriesincreasing.Inequalitywithincountriesalsogrewowingtochangesinspecificindustries,aswellasthedifficultiesexperiencedbysomecountriesandpeopleinparticipatingintheopportunitiesprovidedbyglobalization.

9.Atthesametime,asaresultofglobalization,environmentalawarenesshasincreasedworldwideandthedevelopmentandscalingupofcleanenergyandotherenvironmentallyfriendlytechnologieshasbeenenabled.Greaterconnectivityalsomadeiteasierthaneverforindividualstoseetheeffectsofenvironmentaldegradation,suchastheenvironmentalimpactoftheincreasedcross-borderflowofgoods,services,capitalandpeople.Atthesametime,emissionsfromthetransportofgoodsaroundtheworldcontributedtopollution,climatechangeandoceanacidification,amongotherthings.

10.Globalizationhasalsoledtoprofoundchangesinemploymentandtheglobalworkforce.Ithasclearlycontributedtotheincreasedintegrationoflabourmarketsandtheclosingofthewagegapbetweenworkersinadvancedanddevelopingeconomies,especiallythroughthespreadoftechnology,migration,tradeandforeigndirectinvestment.Ontheotherhand,ithasalsoplayedapartinincreasingdomesticincomeinequalitybydecreasingdemandforunskilledlabour,creatingbarrierstotradeand

__________________

1TheSustainableDevelopmentGoalsReport2019(UnitedNationspublication,2019).

2Ibid.

3Ibid.

4InternationalMigration2019(UnitedNationspublication,2019).

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investment,andlimitingtechnologyabsorptionindevelopingcountries.However,ithaslongbeenclearthatintroducingprotectionistpoliciestoslowtheforcesofglobalizationisnottheresponse.Thewayforwardistodevelopandimplementsafetynetsforthoseworkerswhoneedthemandtoprovidetraininginnewskills.

11.Foodsystemshavealsobeenaffectedbyglobalization.Ontheonehand,itcontributedgreatlytofoodsecurityandglobalhumanhealthbyenablingmoreefficientfoodproductionpracticesthroughspecializationandthesharingoffarmingtechniquesandmachinery,aswellasanincreaseinconsumerchoice.However,import-dependentnationsandregions,suchassmallislanddevelopingStatesandAfricancountries,haveexperiencedincreasedexposuretorisksandvarioushazards,inthecontextofclimate-relatedfoodsecurityissues.Afterdecadesofprogress,globalhungerwasontheriseagainintheyearsbeforeCOVID-19,andthesituationhasonlyworsenedsince2020.5Inlookingatoverhaulingglobalizedarchitecturesystems,amoreresilientglobalfoodsystemmustbedesignedthatcanscalebackexposuretoriskandotherhazards,especiallyinimport-dependentnationsandregions.ThisiswhyoneofthefiveactionareasidentifiedbytheUnitedNationsFoodSystemsSummittoinformthetransitionneededtorealizethe2030Agendaisto“buildresiliencetovulnerabilities,shocksandstress”.

12.Theseexamplesrevealthat,whiletheinternationalmovementofgoods,services,capitalandpeoplehasgreatlycontributedtopromotingsustainabledevelopmentinrecentdecades,challengesthatemergedinthecontextofglobalizationcansignificantlyhindertheimplementationofthe2030Agenda.

13.Itisevidentthattargetedmeasuresareneededtoharnessthebenefitsofglobalization,whilemitigatingtheeffectsthatcanleavepeopleandcountriesbehind.Thisisespeciallyimportantforcountriesinspecialsituationsandmiddle-incomecountries.

ImpactsandlessonsofCOVID-19

14.COVID-19hascausedthereversalofimportantgainsinkeyareasofthe2030Agenda,withsignificanttrendreversalsobservedinpovertyeradicationandthereductionofincomeinequality.Theeconomicimpactsofthecrisisweresobering.Whilethepoorestandmostdisadvantagedcountrieswerehitthehardest,eventhemostadvancedanddevelopedcountriesstruggledtocopewiththefalloutofCOVID-19,includingtheimpactoflockdowns.Thepandemicledtoworldwidedeclinesintheformalandinformaleconomies,includingthelossof255millionfull-timejobsanddirectimpactson1.6billionworkersintheinformaleconomy.Itwilltakeyearstorecoverfromtheconsequencesofthepandemic.Inmanycountries,thetourismindustry,forexample,isstillontheroadtoaslowrecovery,withinternationaltourisminthefirstquarterof2022remainingat61percentbelow2019levels.6

15.COVID-19alsohadsignificantandimmediateeffectsoninternationaltradeandcapitalflows.In2020,pandemic-relatedeconomicdisruptionsresultedinadeclineintheinternationaltradeingoodsandservicesofabout10percent.7Althoughtheimpactsthenprovedlessdrasticthanoriginallyexpected,fortherestof2022,worldtradeislikelytobeimpactedbyrisinginterestrates,thewindingdownofstimulus

__________________

5FoodandAgricultureOrganizationoftheUnitedNations(FAO),InternationalFundforAgriculturalDevelopment,UnitedNationsChildren’sFund,WorldFoodProgrammeandWorldHealthOrganization,TheStateofFoodSecurityandNutritionintheWorld2021:Transformingfoodsystemsforfoodsecurity,improvednutritionandaffordablehealthydietsforall(Rome,FAO,2021).

6WorldTourismOrganization,WorldTourismBarometer,vol.20,Issue3(May2022).

7KeyStatisticsandTrendsinInternationalTrade2021:TheEffectsoftheCOVID-19PandemiconInternationalTrade(UnitedNationspublication,2022).

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packagesandthecontinuingeffects,andrelateduncertainties,ofCOVID-19andthewarinUkraine.

16.In2020,globalforeigndirectinvestmentdroppedby35percentto$1trillion,downfrom$1.5trillionin2019.8Remittances,however,remainedstable,onlydecreasingby2percentin2020comparedwith2019.AccordingtotheWorldBank,remittanceswillreach$630billionin2022,withrecordflowsintoUkraine;9theycontinuedtoprovideimportanteconomicsupportforthewell-beingofreceivinghouseholds.Theyimprovedfoodsecurityandhelpedtopayforeducationandmedicalexpenses.

17.Whileforeigndirectinvestmentsreboundedby77percentin2021,thisrecoverywasnotuniformacrossregionsandsectors,especiallyindevelopingnations.Theleastdevelopedcountrieshadthesmallestgrowthcomparedwithmoredevelopednationsandmarkets,whobenefitedthemostfromtherecoveryandreopeningofeconomies.Thereductionofforeigncapitalflowsandproductionfacilitiesabroadmayindicatethatforeigndirectinvestmentindevelopingnationswillnotreturntopre-pandemiclevelsandwillcontinuetodecrease.10

18.Thepandemicalsobroughttotheforetheweaknessesofandgapsinglobalsupplychains.Thefoodandenergysectorplummetedowingtotransportationbottlenecks.Althoughthecommoditiesandgoodsmarketmadeprogresstowardsrecovery,theconflictinUkrainehasfurtherstressedanddisruptedglobaltradeandsupplychains.Thepandemicandthewarhaveemphasizedtheextenttowhichsystemsareinterconnectedandtheeffectsthatashockinaregioncanhaveinternationally.Whileitisnecessarytoincreasetheirresilience,theredesignofthesesystemsmustbedonewithcare.Forexample,theregionalizationofsupplychainspromptedbyCOVID-19straysfromamoreglobalizedsolutionframeworkthatcouldaidrecoveryandeconomicresilience.Argumentsforavoidingpossiblemarketvolatility,bypullingbackportionsofinternationally-outsourcedsupplychainstoregionalproviders,arenowonthetable.11

19.Thepandemicalsohighlightedtheimportanceofscientificcollaboration,technologytransfers,informationflowsandknowledge-sharingtodevelopingsolutionstoglobalchallengesandimplementingthe2030Agenda.Whiletheinternationalintellectualpropertyrightssystemenablesinnovation,providingtheincentivesandmeanstofinanceresearchanddevelopmentactivities,the2030Agendacannotbeachievedwithoutequitableaccesstoglobalpublicgoods,suchasvaccinesandrelatedscientificknowledgeandtechnologies.InternationalinitiativessuchastheAccesstoCOVID-19Tools(ACT)Accelerator,whichisaimedatprovidingacoordinatedandcrediblepathoutoftheCOVID-19pandemicforeveryone,everywhere,includingthroughCOVAX,thevaccinespillaroftheACT-Accelerator,demonstratethepowerofinternationalsolidaritytoaddressglobalchallenges.Atthesametime,inmanyareas,internationalcooperationhasfallenshortduringthepandemicresponse.Eveninthethirdyearofthepandemic,theentireglobalpopulationhasnotbeenvaccinated,norhastestingbeenincreasedorlife‑savingeffectivetreatmentsmadeavailableforallwhoneedthem.

__________________

8WorldInvestmentReport2021:InvestinginSustainableRecovery(UnitedNationspublication,2021).

9WorldBank,“Remittancestoreach$630billionin2022withrecordflowsintoUkraine”,

11May2022.Availableat

/en/news/press-release/2022/05/11/remittances-to-

reach-630-billion-in-2022-with-record-flows-into-ukraine

.

10FinancingforSustainableDevelopmentReport2022(UnitedNationspublication,2022).

11TheEconomist,“Thetrickyrestructuringofglobalsupplychains”,16June2022.Availableat

/leaders/2022/06/16/the-tricky-restructuring-of-global-supply-chains

.

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20.ProgressmustbeurgentlymadewithregardtoimprovingtheaccessibilityofCOVID-19vaccines,aswellasgeneralaccesstomedicaltechnologyandinnovationonaglobalscale.DuringthedevelopmentofCOVID-19vaccines,thechallengesinrecognizingvaccinesasaglobalpublicgoodledsomecountriestochangecoursefrompursuingaglobalsolutiontotheinternaldevelopmentoftheirowninoculationtechnology.AlthoughsomecountriesstarteddistributingvaccinesasearlyasDecember2020,fewerthan20percentofpeopleinlow-incomecountrieshavereceivedatleastonedose.12TheJune2022waiverofcertainintellectualpropertyprotectionsforCOVID-19vaccinesundertheAgreementonTrade-RelatedAspectsofIntellectualPropertyRightssupportsequitableglobalaccess,allowingcountriestodiversifyvaccineproductionforthenextfiveyears.13However,furtherprogressmustbemade.

21.Regardingtheeconomy,theresponsetotherecessioncausedbythepandemichasbeenweakerthantheresponsetothefinancialcrisis.Thereshouldhavebeenconcreteactionstoreducethedebtburden,compensatoryfinancingfacilitiesfordevelopingcountriesandreformsoftheinternationalfinancialsystem.

22.TheCOVID-19pandemicdemonstratedtheneedforenhancedworldwidecooperationandsolidaritytoovercomecomplexinternationalcrisesaffectingallareasofsociety.Inviewofothermajorthreatstotheglobalcommunity,includingclimatechangeandbiodiversityloss,suchcoordinatedglobalresponsesarebecomingincreasinglyimportant.

23.WhilerecoveryfromtheimpactofCOVID-19ontheSustainableDevelopmentGoalswilltakeyears,countrieshavethepotentialtobuildbackbetterbyusingstrategicopportunitiestorestructuretheireconomiesinaglobalizedworldandbyinvestinginareasthatcanaccelerateimplementationofthe2030Agendaasamainconduittoasustainablerecovery.Equalaccesstofinancialresourcesfordevelopingcountriesis,however,aprecondition.AttheEconomicandSocialCouncilforumonfinancingfordevelopmentfollow-upinApril2022,participantsexpressed“graveconcernthatthemobilizationofsufficientfinancingremainsamajorchallengeintheimplementationofthe2030AgendaforSustainableDevelopmentandthatprogresshasnotbeensharedevenlywithinandamongcountries,leadingtofurtherdeepeningofexistinginequalities”.Theforum’srecommendationsonaddressingthisissueshouldbewidelyimplemented.

24.However,thesebenefitscanonlyberealizedifcoupledwiththeimplementationofpoliciesthatfosterequalityandstability,andwithincreasedresponsivenesstoemergingchallengesandopportunities.Thisincludesbuildingmoreresilientsocietiesthroughsocialprotectionpolicies,andpromotingthecreationofdecentwork,labourregulationsanduniversalhealthcoverage,aswellasequitableaccesstoqualityeducation.Italsoconsistsofrollingbackpoliciesthatharmtheenvironmentandreallocatingresourcestowardshigh-returninnovativesystemsandtechnologies.Investmentsshouldalsotargetphysicalanddigitalinfrastructure,climateandenvironmentalsolutionsandtheSustainableDevelopmentGoalsmoregenerally.Alsoimportantareriskmanagementsystemstocombatglobalshocksandcreateamoreagileglobalgoodsandservicessystem.Thesestrategicchangesarepartofeffortsthatwillallowthebestofglobalizationtobeharnessed,enablingallcountriesandpeopletoreapitsbenefitstothefullest.Asstressedintheministerialdeclarationofthehigh-levelpoliticalforuminJuly2022,the2030Agendaisablueprintforensuringaninclusive,sustainableandresilientrecoveryfromtheCOVID-19

__________________

12OurWorldinData,“Coronavirus(COVID-19)vaccinations”.Availableat

/covid-vaccinations

.

13WorldTradeOrganization,“TRIPSCouncilwelcomesMC12TRIPSwaiverdecision,discussespossibleextension”,6July2022.Availableat

/english/news_e/news22_e/

trip_08jul22_e.htm

.

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pandemicandacceleratingthedecadeofactionanddeliveryforsustainabledevelopment,whileleavingnoonebehind.Itsimplementationisalsokeytomovingtowardsaglobalizationthatimprovespeople’swell-being.

ShockofthewarinUkraine

25.TheimpactoftheongoingwarinUkraineandrelatedinternationalcriseshavedisruptedmovementtowardsrecoveryfromCOVID-19andthereturntoamoreglobalizedworld.Globalizationshouldbeaprocessthatenablessustainabledevelopment.Globalshortagesofresourcesarenowgreatlyaffectingrecoveryefforts.

Thedependenceonspecificsupplychannelsandtheirinterconnectednesshaverevealed

theweaknessofnothavingdiversifiedglobalresourceproviders(see

E/2022/57)

.

26.Theworldeconomyisexperiencinghigherinflation,whichroseto5.2percentin2021,itshighestlevelinadecade,asthegeopoliticalcrisescontinue.Therehavealsobeenpricehikesinwheat,coarsegrain,fertilizersandcrudeoilthatnegativelyaffectmacroeconomicconditions,povertyratesandfoodsecurity

(E/2022/57

,

para.11).Comparedwith2021,foodpriceshaverisenby34percent,crudeoilpriceshaverisenby60percent,andgasandfertilizerpriceshavemorethandoubled.CurrentnegativetrendsthatstemfromtheconflictinUkrainearefeltatgreaterextremesindevelopingnations,whicharemoreexposedtoglobalcrisesandexperiencethemmoreintensely(ibid.).

27.ThesuddenandsharpfallinUkrainianexportsofgrainandsunflowercommoditieshasbeenhavingasignificantimpactonglobalfoodsecurity.Itishopedthatrecentagreementstoaddressthissituationwillbearfruit.Restrictionsonexportsofgas,oilandfertilizerareincreasingglobalfoodandenergyinsecurityconcerns.RestrictedexportscoupledwiththeCOVID-19pandemichavedrivenagreaternumberofpeopletoexperiencehungerandextremepoverty,andproducedagenerationallossof$17trillioninwageearnings.14IfthewarinUkrainepersists,thewindowoftimetopreventafoodcrisisislimited.BriefNo.2oftheGlobalCrisisResponseGrouponFood,EnergyandFinanceindicatesthatupto323millionpeoplearelikelytobeacutelyhungryin2022,representinganadditional47millionpeoplesincethewarinUkrainebegan.Bytheendof2021,theinternationalfoodimportbillwas$268billionhigherthanbeforethepandemic,withnearlytwothirdsoftheincreaseconcentratedindevelopingcountries.TheGrouprecommendsatwo-prongedapproach:ontheonehand,mitigatingtheimpactsoftheshockthroughmeasur

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