New global report shows ‘standards are the hidden foundations of prosperity’

Standards are one of the most powerful tools for national economic progress

The World Development Report 2025: Standards for Development, developed by the World Bank Group in conjunction with ISO, highlights a simple but profound truth: countries that take standards seriously are accelerating ahead, while those that do not risk being left behind. In an era where nearly 90% of global trade is shaped by standards-linked nontariff measures, the ability to adopt, implement, and influence standards has become central to national competitiveness and economic resilience.

The invisible economic infrastructure that makes modern life work

The report identifies three types of standards - measurement, compatibility, and quality - as the silent architecture enabling global commerce, safety, and trust. These standards power everything from clean water, the built environment, and safe hospitals to digital payments, electric vehicle charging, and AI systems. Most begin as voluntary, but governments make them effective by embedding them in regulation when public health, environmental protection, or consumer confidence demand it.

A smarter development path: adapt, align, author

A major contribution of the report is the adapt–align–author model, a practical pathway for countries at all stages of development. Early on, nations adapt international standards to local realities; as capacity grows, they align with global norms; and with maturity, they participate in authoring standards themselves with the global community. This is reflected in New Zealand whereby Standards New Zealand under the Standards and Accreditation Act looks first to international standards, where efficiencies through established good practice solutions may already lie.

Quality infrastructure: the engine that makes standards work

Standards are only as strong as the systems and investment that uphold them. Effective quality infrastructure - which includes standards, testing, metrology, certification, accreditation - is essential for compliance and trust. Yet the report highlights stark gaps: Ethiopia has fewer than 100 ISO‑accredited auditors, compared with 12,000 in Germany. These gaps drive up compliance costs, which can exceed US$400,000 per firm in low‑ and middle‑income economies.

The message is clear: investment in quality infrastructure is needed to effectively elevate standards from paper documents to business tools for progress.

Standards improving lives, health, education, and environment

The report offers compelling evidence of the power of standards to improve everyday well-being.

• In India, the adoption of simple clinical process standards - such as hospital checklists - reduced maternal deaths by 47%.

• In Brazil’s Ceará state, clear literacy and teaching standards helped lift early‑grade reading to near-universal levels within two decades.

• Environmental standards could add nearly two years to global life expectancy, as 99% of the world’s population currently breathes air that exceeds WHO guideline limits.

A call to action for Aotearoa New Zealand

For a trading nation at the bottom of the world like New Zealand, standards have always been essential - supporting safe buildings, quality imports, market competition and innovation, and access to global markets and new trade opportunities. This report underscores the growing importance of participating in international standard-setting, ensuring our unique needs and values - such as sustainability, Māori perspectives, and digital trust - are reflected in global frameworks. This has been demonstrated already through activities by New Zealand’s mirror-committee for ISO/IEC JTC 1 SC 42, championing the integration of Māori perspectives into AI standards.

It also reinforces the need for continued and new investment in quality infrastructure and for working alongside our regional partners to ensure small firms and isolated communities can meet rising global expectations.

Looking ahead

The World Development Report 2025 concludes with a strong message: standards are no longer just technical specifications, they have become strategic economic tools and enablers. As emerging technologies like AI, biotechnology, agritech, and quantum computing evolve faster than governments can regulate, credible, inclusive, and future‑ready standards will shape global opportunity and global risk.

For New Zealand, this is both a challenge and an opportunity: to remain a trusted voice internationally, to support local innovation and business productivity, and to ensure all New Zealanders benefit from the safety, quality, and prosperity that strong standards deliver.

The full report is available for free from the World Bank Group:

World Development Report 2025 - standards for development(external link)