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Why Standards Now Decide Economic Winners

• By  Textile Excellence
• January 02, 2026

From textile labels to 5G networks, international standards are quietly redrawing the global economic map. But while rich nations and multinational giants reap the rewards, many developing countries are being left behind, warns a new World Bank report.

According to the World Development Report 2025: Standards for Development, standards have become core economic infrastructure, as critical today as roads, ports or power grids. They decide how goods move, how services connect, and who gets access to global markets.

The report offers a striking example: the standardised shipping container. Its adoption boosted global trade more than all trade agreements signed over the last 60 years. Yet standards are no longer just facilitators. They have also become powerful trade weapons.

Non-tariff measures such as pesticide limits, technical specifications and labelling rules now affect 90% of global trade, up from just 15% in the late 1990s. In many cases, these rules block market access for exporters from poorer economies that lack the capacity to comply.

“Standards are central to today’s economy, but they often go unnoticed,” said Indermit Gill, Chief Economist of the World Bank Group. “When they work, no one thinks about them. But when countries are excluded from setting them, the cost is enormous.”

The scale of standard-setting has exploded. Of the roughly 20,000 standards issued by the International Organization for Standardization (ISO) over the past 70 years, more than half have been created since 2000. In 2024 alone, global standard bodies issued over 7,000 new standards.

Yet developing countries are largely absent where it matters most - at the table. On average, they participate in less than one-third of ISO’s technical committees, and even less in other global bodies. Limited funding, skills and institutional capacity keep them out of rule-making rooms that shape global commerce.

ISO Secretary-General Sergio Mujica called the report a wake-up call. “Standards are no longer invisible infrastructure. They are essential for inclusive and sustainable development. Every country must be able to help shape them, not just follow them.”

A roadmap: Adapt, align, author

The World Bank proposes a clear strategy. Poorer countries should adapt global standards to local realities instead of blindly copying strict rules they cannot meet. As capacity improves, they should align with international standards to reduce duplication and help firms export. Over time, they should move to author standards, shaping global rules to reflect national priorities.

Why Japan matters

Japan’s post-war experience shows how powerful this approach can be. After World War II, Japanese exports were seen as cheap and unreliable. Instead of accepting that label, Japan made quality its mission.

Through the Japanese Standards Association and the widespread adoption of Total Quality Management, the country first copied global standards, then improved them. Over time, Japan became a global benchmark for quality manufacturing, from automobiles to electronics.

“Standards are not just technical rules,” said Xavier Giné, Director of the 2025 World Development Report. “They are the foundation of innovation and competitiveness. Countries that treat standards as a development tool are the ones that climb the economic ladder.”

The message is blunt: in today’s global economy, standards decide who wins and who gets locked out. For developing nations, staying passive is no longer an option.

“Standards are central to today’s economy, but they often go unnoticed,” said Indermit Gill, Chief Economist of the World Bank Group. “When they work, no one thinks about them. But when countries are excluded from setting them, the cost is enormous.”