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ILO report highlights persistent weaknesses in global governance systems

A new report from the International Labour Organization shows that global governance standards have seen limited improvement over the past three decades, with declines occurring more frequently than progress. Analysis covering 208 economies reveals persistent institutional weaknesses and uneven reform outcomes.

More than half of economies face conditions that create business uncertainty, while only a small share offer stable and predictable governance. Strong-performing countries tend to remain stable, whereas weaker systems struggle to improve, reinforcing long-term structural divides.

Political governance, including accountability and institutional checks, emerges as the most vulnerable area. Although regulatory frameworks can gradually improve, political instability and weakening oversight continue to undermine broader governance gains across multiple regions.

The report also highlights gaps in employers’ organisations, which often lack the capacity to influence policy despite formal independence. Strengthening institutions and focusing on long-term, resilient reforms are identified as critical steps to support investment, sustainable growth, and functioning labour markets.

Why does it matter?

Findings from the International Labour Organization highlight governance as a core driver of economic stability rather than a secondary factor. Weak institutions and declining accountability increase uncertainty, discourage investment, and limit the effectiveness of broader economic policies, particularly in emerging markets.

Persistent governance gaps also signal long-term structural risk. When decline is more common than progress, reforms become harder to sustain and gains easier to reverse.

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UNESCO and Oxford University launch global AI course for courts

A free online course aimed at preparing judicial systems for the growing role of AI in legal decision-making has been launched, with UNESCO in partnership with the University of Oxford positioned at the centre of the initiative.

AI is already shaping court processes, influencing evidence assessment, and affecting access to justice. Yet, many legal professionals lack structured guidance to evaluate such systems within a rule-of-law framework.

The UNESCO programme introduces a practical, human rights-based approach to AI, combining legal, ethical, and operational perspectives.

Developed with institutions including Oxford’s Saïd Business School and Blavatnik School of Government, the course equips participants with tools to assess algorithmic outputs, manage risks of bias, and maintain judicial independence in increasingly digital court environments.

Central to UNESCO’s initiative is a newly developed AI and Rule of Law Checklist, designed to help courts scrutinise AI systems and their outputs, including use as evidence.

The course also addresses broader concerns, including fairness, transparency, accountability, and the protection of vulnerable groups, reflecting rising global reliance on AI across justice systems.

Supported by the EU, the course is available globally, free of charge, with certification from the University of Oxford. As AI becomes embedded in judicial processes, capacity-building efforts aim to ensure technological adoption strengthens rather than undermines the rule of law.

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UN prepares first Global Dialogue on AI governance ahead of Geneva meeting

The United Nations is advancing preparations for the first Global Dialogue on Artificial Intelligence Governance, set to take place in Geneva on 6–7 July 2026 alongside the AI for Good Summit.

Speaking at a UN Geneva press briefing, Egriselda López, Permanent Representative of El Salvador and co-chair of the Dialogue, said the initiative was established by UN member states as a universal forum to discuss AI governance. The process is intended to bring together governments and stakeholders with the aim of producing tangible outcomes.

López said the initial meeting will be structured around thematic clusters, including one focusing on AI opportunities and implications and another addressing the digital divide. She added that consultations with member states and stakeholders are ongoing to ensure an inclusive format for the discussions.

Rein Tammsaar, Permanent Representative of Estonia and co-chair of the Dialogue, said the forum aims to connect existing AI initiatives and best practices from around the world. He stressed the importance of interoperability and coordination, noting that the Dialogue seeks to create synergies rather than duplicate existing efforts.

According to Tammsaar, additional thematic areas will include interoperability, safety, and human rights. While human rights are expected to be a cross-cutting issue, stakeholders have also called for it to be addressed as a standalone theme.

Amandeep Gill, UN Secretary-General’s Envoy on Technology, described the initiative as part of a broader approach to ensuring that AI benefits humanity as a whole. He said the Dialogue is designed as a ‘dialogue of dialogues’, enabling governments, experts and other stakeholders to exchange knowledge in a rapidly evolving technological environment.

Gill also highlighted the role of the Independent International Scientific Panel on AI, which is expected to present its findings at the Geneva meeting. He noted that global capacity to both use and govern AI remains uneven, underlining the need to address disparities between countries.

Officials emphasised that the Dialogue is intended to complement existing initiatives rather than centralise governance efforts. It will focus on issues such as safety and human rights, while discussions on military uses of AI fall outside its mandate.

A second Global Dialogue on AI Governance meeting is planned for May 2027 in New York, as part of ongoing efforts to develop a more coordinated and inclusive global approach to AI governance.

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Saudi initiative attempts to link AI with sustainability goals

A new AI-enabled sustainability platform developed with support from the World Economic Forum aims to strengthen partnerships across sectors. The initiative is led by Saudi Arabia’s Ministry of Economy and Planning as part of its wider development agenda.

The platform, known as SUSTAIN, uses AI to match organisations with potential partners and opportunities. It is designed to connect government, businesses, academia, and civil society more efficiently and to help move sustainability projects from planning to implementation.

Developers say the system could accelerate collaboration and support the delivery of higher-impact sustainability projects. Official estimates suggest it could help unlock partnerships worth up to $20 billion in Saudi Arabia and significantly more across the wider region.

The initiative forms part of broader efforts to advance long-term sustainability goals through more coordinated action and practical uses of AI. The project is being developed in Saudi Arabia and presented as a tool to strengthen cross-sector cooperation rather than a stand-alone sustainability programme.

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Malaysia expands national AI strategy through Microsoft partnership

Malaysia is strengthening its national AI strategy through an expanded partnership with Microsoft, launching the Microsoft Elevate initiative to accelerate AI readiness across society.

The programme aligns with the country’s AI Nation 2030 ambitions and extends digital skills development beyond traditional sectors.

An initiative that targets educators, public sector institutions, small businesses and wider communities, aiming to embed practical AI capabilities into everyday economic and social activity.

Early deployment has already reached tens of thousands of learners, reflecting a shift from pilot programmes to large-scale national implementation.

Government and industry leaders in Malaysia emphasise that long-term competitiveness depends not only on technological investment but on widespread adoption and understanding of AI tools.

The programme therefore prioritises workforce activation, institutional capacity and sustainable integration across sectors.

Malaysia’s approach reflects a broader global trend where public–private partnerships are increasingly central to AI development, focusing on inclusive access, responsible use and real-world application rather than purely technological advancement.

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EU Global Green Bond Initiative Fund unlocks €20 billion for sustainable infrastructure

The European Union and its financial partners have launched the Global Green Bond Initiative Fund to mobilise up to €20 billion for sustainable infrastructure in developing economies.

The initiative reflects a broader shift towards using private capital alongside public investment to accelerate climate and environmental goals.

Moreover, the fund will prioritise green bonds issued by governments, local authorities, and businesses, with a focus on first-time issuers and least developed countries. By supporting both euro and local-currency bonds, the initiative also aims to strengthen domestic capital markets while expanding the international role of the euro.

Backed by major European financial institutions and supported through the EU guarantees, the GGBI Fund is designed to reduce investment risk and attract private investors at scale.

Alongside financing, the initiative includes technical assistance and subsidy mechanisms intended to improve access to green finance and lower borrowing costs.

The programme forms part of the EU’s Global Gateway strategy, linking economic development with sustainability goals while promoting high environmental standards and long-term resilience across partner regions.

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Nigeria’s TETFund supports AI research and digital development in universities

The Tertiary Education Trust Fund has outlined efforts to support AI research and digital development in higher education institutions. The initiative focuses on strengthening research capacity and innovation.

According to the authority, funding is being directed towards projects that promote technological advancement, including AI-related studies and infrastructure. This aims to enhance academic output and relevance.

The authority also highlights the importance of building skills and supporting researchers to engage with emerging technologies. The approach is intended to improve competitiveness and knowledge creation.

Why does it matter?

The authority presents the initiative as part of broader efforts to advance research and innovation in the education sector in Nigeria.

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UNCTAD data shows that global economic transformation gaps remain uneven

New data from the UN Conference on Trade and Development (UNCTAD) highlights how productive capacities, rather than headline growth figures, determine whether economies achieve meaningful and sustained development.

While some countries record rising GDP, structural weaknesses often prevent these gains from translating into improved living standards.

At the centre of the analysis is the Productive Capacities Index (PCI), which evaluates 43 indicators across areas such as infrastructure, human capital, energy, institutions and private sector development.

The index shifts focus from output-based metrics towards the underlying systems that enable economies to produce goods and services effectively.

The findings by UNCTAD reveal significant global disparities. Developed economies continue to outperform other regions, while developing countries have made gradual progress but have not closed the gap.

Africa remains the lowest-performing region overall, though countries such as South Africa, Tunisia and Morocco show comparatively stronger results within the continent.

Technology, particularly information and communication technologies, has been a key driver of improvement in least developed countries.

However, reliance on natural resources continues to pose risks, limiting diversification and long-term resilience.

UNCTAD’s report underscores the need for governments to adopt multidimensional policy frameworks that prioritise capacity-building instead of short-term growth indicators.

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Agentic AI to take over half of UAE public sector

The UAE has announced an ambitious government framework to integrate Agentic AI across 50% of the public sector and services within two years. Revealed at a Cabinet meeting chaired by Sheikh Mohammed bin Rashid Al Maktoum, the initiative positions AI as an operational partner managing government functions autonomously.

Agentic AI systems will be deployed to monitor developments, analyse data, recommend actions and run operational workflows without human intervention. Authorities expect the shift to improve service speed and efficiency, cut costs, and enable real-time evaluation and continuous improvements across federal entities.

The programme will roll out in phases under a dedicated task force, with performance-based assessments for government entities and leadership. A parallel focus has been placed on workforce development, with training programmes designed to equip employees with advanced AI capabilities.

The framework builds on two decades of digital transformation in the UAE, including earlier national AI strategies and smart government initiatives, and expands the country’s push towards fully integrated, data-driven governance systems.

Why does it matter?

The project marks a shift from digital tools to autonomous governance, where AI can directly run and optimise public services in real time. That raises efficiency and responsiveness, but also makes strong oversight, governance, and workforce readiness essential to ensure safe and effective implementation.

The approach could also serve as a global blueprint for large-scale government AI adoption, shaping how states modernise public services and integrate autonomous systems into core governance.

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ECON adopts Business Wallets opinion and highlights cybersecurity risks

Members of the European Committee of the Regions’ Commission for Economic Policy adopted a draft opinion on European Business Wallets at their meeting, while also addressing cybersecurity, industrial policy, defence, AI, and state aid issues.

ECON members stressed that European Business Wallets should be simple, user-friendly, and cost-effective, particularly for SMEs, micro-enterprises, and start-ups operating across borders. They also backed a ‘once-only’ principle allowing businesses to submit data a single time and reuse it across different administrative procedures.

The draft opinion also calls for awareness-raising, clear guidance, financial support, technical assistance, and training for local administrations facing new obligations.

Rapporteur Branislav Zacharides, Mayor of Vrútky, stated:

‘The deployment of the Business Wallets will entail new administrative obligations for public authorities, which can be especially burdensome for smaller municipalities. We therefore call on the European Commission and Member States to provide adequate technical capacity-building and financial support so that the Wallets can deliver real added value.‘

Members also addressed the upcoming Cybersecurity Review and the Digital Networks Act, warning that new responsibilities linked to digital resilience and connectivity could put pressure on regional and local administrations, especially those with limited resources and technical expertise. They called for financial support, training, and capacity-building to help authorities meet those requirements.

ECON members also discussed the EU Defence Industry Transformation Roadmap and the Industrial Accelerator Act, stressing the need for a place-based approach to defence and industrial acceleration policies. They argued that local and regional authorities should help shape investment priorities and industrial strategies, rather than merely implement them.

The meeting also included a discussion of gender bias in AI and a review of the General Block Exemption Regulation on state aid. ECON members warned that broader state-aid flexibilities could have uneven territorial and competition effects, risking the widening of regional disparities.

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