The World Bank is urging developing countries to make standards a “core component” of their economic strategies as Japan did after World War II.

In its annual World Development Report released in Washington on December 11, the bank notes that more than half of the 20,000 standards issued by the International Organization for Standardization ( ISO ) over the last seven decades have been created since 2000. “The global appetite for standards has surged,” it says.

Low participation

But “not enough developing countries are at the table when standards are written – because they often lack the resources and expertise needed to participate,” the report says. “On average, they sit on less than one-third of the technical committees that determine global standards at ISO, and even fewer in other bodies. Supporting broader, more strategic participation is key to ensuring that standards are globally relevant and reflect diverse development needs and contexts.” 

Trade war weapons

According to the bank, “standards have also become weapons in trade wars” over the past 25 years. “Non-tariff measures, such [as] pesticide specifications or labeling requirements, for example, now affect 90% of global trade, up from just 15% in the late 1990s.” 

Proliferating standards are “steadily reshaping the global economic order, delivering hefty benefits to the wealthy nations and large multinational companies that set them while leaving many developing countries on the sidelines”.

“Today, standards are foundational economic infrastructure, as vital to prosperity as roads or ports,” the bank says, noting that standardized shipping containers “boosted global trade to a greater extent than all of the trade agreements of the last 60 years”.

Japanese model

The bank says developing economies should take a leaf out of Japan’s book. “Japan exemplifies how countries can use standards to turbocharge development,” it says. “In the immediate aftermath of World War II, Japanese consumer exports were widely considered to be of low quality and unreliable.

“But the country focused on becoming a high-quality manufacturer, initially copying and then improving upon ideas from abroad. It did so through the Japanese Standards Association and the widespread adoption of Total Quality Management, which transformed the country into a global paragon for quality.” 

‘Not just technical rules’

Xavier Gine, head of the World Bank team that produced this year’s report, says such lessons show that “standards are not just technical rules – they are the foundation for innovation and global competitiveness. Countries that treat standards as part of their development strategy – rather than as an afterthought – are the ones that have managed to climb the ladder of prosperity.” 

The bank urges developing economies to adopt strategies in line with their capacity. “At low levels of development, countries should adapt international standards to local realities, so firms can learn and markets can grow. It isn’t wise to blindly copy the most stringent global standards – local ambitions should match local capacity,” it says.  

“As local capacity grows, countries can align with international standards, cutting duplication, easing market entry, and helping firms compete abroad. At the same time, countries can shape international standards, ensuring they reflect national priorities. Finally, as they grow wealthier, developing countries should author new standards or update existing ones.“ 

‘Call to action’

Sergio Mujica, secretary-general of the ISO – which surveyed 173 national standards bodies to support data-gathering for the report – says the bank’s new focus on standards sends a powerful signal: “International standards are no longer invisible infrastructure. They are critical enablers of sustainable, inclusive development,” he says. “Unlocking the full development potential of standards means ensuring all countries can participate in their creation and implement them. This report is a timely call to action to strengthen global participation and cooperation in standardization.” 

According to World Bank chief economist Indermit Gill, “standards are both central and unsung today. When they’re set right, they go unnoticed – the ship sails through the canal, the building withstands an earthquake, a kilogram weighs the same in Kenya as in Canada, and no one gives the gains that come a second thought. When countries are active in adapting, aligning, and authoring standards, they are a powerful tool for growth and poverty reduction.”