By Rebeca Grynspan, Secretary-General, UN Trade and Development (UNCTAD)

The global economy is undergoing profound transformation, with the Global South as one of its main drivers.

Between 2007 and 2023, trade among developing countries (South-South trade) more than doubled, from $2.3 trillion to $5.6 trillion. Over the next five years, it is expected to account for nearly 70% of global economic growth. In this context, Latin America has the opportunity to lead the reform of the global economic system toward a more just and inclusive economy.

My first official visit of the year takes me to Mexico, led by its first female president, Claudia Sheinbaum, a symbol of progress toward gender equality. As she powerfully stated in her inaugural address: "I am not here alone, we are all here together." Mexico embodies the opportunities and challenges of Latin America, from its role in global trade to its vast potential in the energy transition.

A trade framework for development

The global economy faces slow growth, high debt, weak investment and trade that is increasingly marked by geo-economic dynamics and protectionism, threatening further fragmentation of the global system.

To thrive, emerging and developing economies need stable international trade and investment flows. Thus, defending multilateralism and trade based on agreed rules is essential to attract investment and ensure stability.

"Open regionalism", as defined by the Economic Commission for Latin America and the Caribbean (ECLAC), addresses these challenges through regional agreements that diversify production, promote inclusive growth and strengthen integration into global trade with higher value-added goods.

An example is the recent agreement between the European Union and Mercosur, which reaffirms trade as a driver of sustainable development in a multipolar world.

With just 5% to 6% of global trade, Latin America can strengthen its position in global value chains through inclusive trade policies. In a Global South that already accounts for 40% of world trade in goods and 30% of trade in services, the region must lead efforts to reduce inequalities and maximize its potential.

Critical minerals for the energy transition

Latin America holds 50% to 60% of the world’s lithium reserves, as well as essential resources like copper and nickel, which are key to clean technologies and the digital revolution. Harnessing these critical minerals must translate into local benefits – jobs, fair value chains and environmental protection.

The COP30 climate summit in Brazil will be crucial for advancing an equitable energy transition that reduces inequalities and expands opportunities. Beyond technology, the challenge is social – ensuring that this transition bridges gaps and benefits the entire region.

Global transformations: Key points for Latin America

The global economy is experiencing a paradox – slow growth but rapid transformations. This imbalance creates tensions and new asymmetries but also significant opportunities for Latin America.

• A multipolar world: Over 70% of economic growth in the next five years will come from the Global South, with South-South trade representing nearly half of the global total. Latin America has an opportunity to diversify and strengthen its global participation.
• The digitalization of trade: Exports of services are growing three times faster than goods. The region can lead in digital platforms and connectivity by investing heavily in technology, infrastructure and workforce training.
• The energy revolution: The market for clean technologies will match that of oil in the next decade. Latin America already leads, with nearly 30% of its energy coming from renewable sources, surpassing the global average. Hydropower dominates, generating more than 50% of electricity in Brazil, Colombia and Paraguay. Countries like Brazil, Chile, Mexico and Uruguay excel in wind and solar energy, while geothermal energy is growing in volcanic nations like Costa Rica, El Salvador and Mexico.

United against global challenges

The world cannot afford divisions in the face of challenges like climate change, debt and inequality. Latin America has demonstrated leadership, with Mexico and Brazil participating in the G20 and supporting the reform of the international financial architecture.

In July, the Financing for Development Conference in Seville, Spain, will be critical for developing countries to escape the debt trap and fund the Sustainable Development Goals (SDGs) and sustainable growth. Latin America must be a strong voice in these discussions.

Reforming global governance

As the United Nations marks its 80th anniversary, it has an opportunity to adapt to a multipolar world. As we have often said, more inclusive global governance does not mean replacing the centre but expanding it.

Latin America, with its active participation in United Nations forums and the G20, continues to hold key positions within the UN and can act as a bridge between traditional and emerging powers. Reforming global governance is not just a matter of justice. It is a necessity to ensure future stability and sustainability.

Toward a new development model

The world’s ongoing changes require rethinking development. Diversifying economies and balancing immediate needs with long-term goals is crucial.

Proactive policies for productive diversification, along with investment in human capital and infrastructure, are essential for sustainable development.

But the international system must also be reformed to become a driver of sustainable development. At UNCTAD, we work to ensure that the benefits of trade, investment, technology and financing become the foundations of inclusive development and a fairer world.

Toward a future of leadership

Latin America stands at a historic crossroads. Faced with global challenges, it has the opportunity to lead global change toward a more just and inclusive economy.

Defending rules-based trade, managing resources responsibly and fostering multilateral cooperation are essential steps.

The year 2025 presents unique challenges and opportunities. It is time for Latin America to demonstrate that the Global South is not merely part of the change. It is the engine of change.

This op-ed was published on 6 January 2025, in affiliate media outlets of "Grupo Diarios de América", such as El Universal in Mexico, O Globo in Brazil, and El Nacional in Venezuela.