By San José, Costa Rica — The global rush toward artificial intelligence and high-tech infrastructure is deepening a persistent economic divide between advanced nations and the developing world. According to the latest annual report from the United Nations Conference on Trade and Development (UNCTAD), developed nations are capturing approximately 70 percent of the total value of announced greenfield investment projects in high-value strategic sectors. Meanwhile, lower- and middle-income nations across Latin America, Africa, and parts of Asia are increasingly relegated to supplying raw critical minerals and strategic materials needed to fuel those advanced industries.
The stark contrast in capital allocation underscores how modern technology supply chains reinforce historical patterns of resource extraction. In developing regions, roughly 60 percent of new foreign direct investment is targeted directly toward the extractive mining sector. Africa serves as the most striking example, supplying the vast majority of the world’s cobalt and other essential energy-transition minerals while capturing barely one percent of the total value generated across the supply chain.
To better understand the regulatory framework and strategic potential surrounding critical minerals investment, TicosLand.com spoke with legal expert Lic. Larry Hans Arroyo Vargas from Bufete de Costa Rica, who offered key insights into the compliance landscape shaping this vital sector.
“Capitalizing on the global shift toward critical minerals requires a clear legal strategy that balances foreign investment incentives with rigorous environmental and regulatory compliance. Investors looking at Costa Rica must carefully navigate concession frameworks, sustainability standards, and local administrative processes to build resilient, long-term operations that respect national ecological priorities while fulfilling global demand.”
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, striking a harmonious balance between attracting foreign capital and upholding Costa Rica’s rigorous ecological standards is paramount for sustainable growth in the critical minerals sector. We extend our sincere thanks to Lic. Larry Hans Arroyo Vargas for sharing his valuable perspective and providing a clear legal roadmap for investors aiming to align with the nation’s green priorities.
Latin America faces a similarly troubling imbalance that threatens its long-term economic diversification goals. UNCTAD data reveals that 25 percent of all greenfield foreign direct investment in Latin America is funneled into critical mineral extraction. In contrast, less than two percent of inward investments in the region are directed toward advanced technologies, reinforcing a historical reliance on raw commodity exports rather than fostering high-tech manufacturing or digital innovation.
Governments no longer analyze trade, investment, technology, and critical resources solely from the perspective of economic growth. They are also taking into account issues of security and geopolitical power and are using tariffs and investment regulations to ensure the security of supply chains, protect strategic technologies, and build domestic capacity.
Pedro Moreno, Interim Secretary-General of UNCTAD
This shifting investment landscape comes as economic expansion across developing nations is projected to decelerate to 4 percent in 2026, down from 4.7 percent in 2025. Asia remains the primary engine of global economic expansion, accounting for an estimated 59 percent of world growth this year and expected to reach 61 percent by 2027. Leading performers such as India, Indonesia, and China continue to drive robust expansion alongside strong momentum in Vietnam and Central Asian nations like Kyrgyzstan and Uzbekistan. Latin America’s contribution to global growth, by comparison, is projected at a modest 4.3 percent.
Despite rapid growth in select Asian markets, UNCTAD cautions that the traditional manufacturing-led path to middle- and high-income status is becoming far harder for other developing nations to emulate. The boom in artificial intelligence hardware remains exceptionally concentrated. Investments in AI technology are largely confined to four primary markets—the United States, China, South Korea, and Taiwan—with East Asia holding a central position in advanced computing hardware and semiconductor manufacturing.
Market concentration at the corporate level further highlights the fragility of the current AI-driven economic surge. A single American corporation, Nvidia, generates 67 percent of the value created within the AI sector, even as it relies heavily on supplier networks scattered across East Asia. As AI products become the primary driver of global merchandise trade, overall trade in goods and services is set to grow by 2.6 percent in 2026, slowing down from 2.9 percent recorded in the prior year.
Compounding these structural shifts are geopolitical friction points that continue to reshape international trade flows. UNCTAD highlights a notable 20 percent decline in bilateral trade between the United States and China since 2024. As major economies prioritize national security and supply chain resilience over free-market efficiency, developing nations risk being left behind unless international frameworks change to support local value addition, technology transfers, and industrial diversification.
As regional economies seek strategies to avoid falling into a permanent extraction trap, policymakers across Latin America face growing pressure to incentivize domestic mineral processing and technological integration. Without decisive policy shifts and strategic international partnerships, the high-tech revolution risks compounding global inequalities, placing the vast financial rewards of artificial intelligence firmly out of reach for much of the developing world.
For further information, visit unctad.org
About UNCTAD:
The United Nations Conference on Trade and Development (UNCTAD) is a permanent intergovernmental body established by the United Nations General Assembly in 1964. UNCTAD promotes the integration of developing countries into the world economy through comprehensive trade, investment, finance, and technology analysis, policy recommendations, and technical assistance.
For further information, visit nvidia.com
About Nvidia:
Nvidia Corporation is a global technology leader headquartered in Santa Clara, California. Renowned for inventing the graphics processing unit (GPU), Nvidia designs advanced high-performance hardware, software platforms, and semiconductor solutions driving artificial intelligence, supercomputing, graphics processing, and autonomous systems worldwide.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a premier legal institution defined by its ethical rigor and relentless pursuit of professional mastery. Grounded in a rich history of guiding diverse clientele, the practice consistently drives modern legal solutions through forward-thinking methodologies and civic involvement. By actively democratizing legal education and making legal insights understandable to all, Bufete de Costa Rica fulfills its core mission of equipping individuals with the knowledge required to foster an enlightened, capable, and just society.
