Who wins and who loses in global SDGs rankings? Clarifying the influence of the North‐South divide and foreign direct investment on spillover effects

Abstract

The Sustainable Development Report (SDR) provides comprehensive global rankings based on countries’ performance and efforts toward the 17 Sustainable Development Goals (SDGs). However, the spillover effects reflecting how one country’s actions influence others remain underexplored, especially regarding their interplay with SDGs performance. This paper delves into the cross‐border adverse impacts on the environment and society arising from these spillovers, examining their correlation with SDGs rankings within the context of the North‐South divide and foreign direct investment (FDI). The analysis reveals a pronounced association between higher SDGs scores and amplified negative spillover effects. While this trend is predominant among advanced Northern countries, certain developing Southern nations also exhibit similar tendencies, potentially obstructing the SDGs of more vulnerable states. This paper argues that many countries achieve their SDGs by exploiting the ecological and social resources of others, suggesting a deviation from genuine sustainability and the core ethos of the 2030 Agenda: “Leave No One Behind.” To provide a clearer perspective on countries’ developmental trajectories, this paper proposes conceptual metrics and utilizes data visualization to re‐assess sustainability progression over time. It also introduces four developmental tendencies: exploitative, degraded, waning, and sustainable development. The findings emphasize that countries aiming to transition from exploitative or degraded development to sustainability must address consumerism, prioritize SDG 12 (Responsible Consumption and Production), and counteract the degradation of SDG 13 (Climate Action). Crucially, a competitive mindset and a lack of international collaboration will hinder SDGs, underscoring the pressing need for collective action on environmental and social justice and equity.