A proliferating set of international standards—covering everything from food labeling to the specifications of 5G cellular networks—is 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, according to a new World Bank report.

Today, standards are foundational economic infrastructure, as vital to prosperity as roads or ports, according to the World Development Report 2025: Standards for Development, which provides the first comprehensive analysis of the landscape of global standards. By making the transportation of goods seamless, the standardization of the shipping container boosted global trade to a greater extent than all of the trade agreements of the last 60 years, the report notes. Since the turn of the century, however, standards have also become weapons in trade wars: non-tariff measures such pesticide specifications or labeling requirements, for example, now affect 90 percent of global trade, up from just 15% in the late 1990s.

“Standards are both central and unsung today,” said Indermit Gill, Chief Economist of the World Bank Group and Senior Vice President for Development Economics. “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. The standardized shipping container might well have catalyzed more trade in manufactured goods than all the trade deals put together. Digital standards could do the same for the services trade. When countries are active in adapting, aligning, and authoring standards, they are a powerful tool for growth and poverty reduction. This report is the first assessment of the role of standards in economic development–and a call to developing nations to make them a core component of their development strategies.”

“The World Bank’s decision to dedicate the 2025 World Development Report to standards sends a powerful signal: international standards are no longer invisible infrastructure – they are critical enablers of sustainable, inclusive development,” said Sergio Mujica, Secretary-General of the International Organization for Standardization (ISO), the world’s largest standard-setting body, which surveyed 173 national standards bodies in support of the data-gathering work for the report. “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.”

The global appetite for standards has surged. More than half of the 20,000 standards issued over the last seven decades by ISO have been created since 2000, the report notes. In 2024 alone, key global standard-setting bodies issued more than 7,000 standards. Not enough developing countries are at the table when standards are written—because they often lack the resources and expertise needed to participate. 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.

Turning standards into a springboard for development requires a deliberate strategy. The report proposes an adapt-align-author framework for countries at different stages of development.  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. 

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. 

Japan exemplifies how countries can use standards to turbocharge development, according to the report. 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.

“The lesson from the most successful economies is that standards are not just technical rules—they are the foundation for innovation and global competitiveness,” said Xavier Giné, Director of the 2025 World Development Report. “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.”

Source: World Bank Group