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If emerging economies want to compete globally, they have to consider animal welfare

By Ayaz Ahmadov, CEO and Founder, Dosty

March 11, 2025

For the first time ever, the EU has appointed a Commissioner for Health and Animal Welfare, marking the first time a commissioner has been given explicit marching orders regarding the proper care of animals.

As an entrepreneur living in Azerbaijan, an emerging market, and working in the pet care industry, I’m curious to see how the commission interacts with different countries across the region. In my experience, there are noticeable differences between how pets and animals are treated in different countries – more specifically, between more developed and less developed nations.

For example, even though Azerbaijan technically has a law prohibiting the mistreatment of animals, there is little to no enforcement or punishment. Sweden, on the other hand, which is considered a global leader in animal welfare, has much more specific laws that even go beyond those put forward by the EU.

To me, these differences aren’t just a reflection of cultural differences or preferences, but indicators of the overall health of the economy. 

‘Developed’ isn’t just about economics

Unfortunately, when definitive lines are being drawn between “developed” and “developing” countries, the tendency is to focus solely on GDP and overall economic power. But we have to remember that a healthy economy is just one indicator of what makes a country rank higher on the development scale. 

Other considerations include human health and longevity, education, and standards of living. When it comes to human health and longevity, there is plenty of research that demonstrates companion animals contribute to healthier humans – and that doesn’t mean everyone has to go out and get a pet. 

For example, simply interacting with a pet by petting, playing, or maintaining eye contact has been shown to release oxytocin in the brain and lower stress levels in the body. For pet owners in particular, especially dog owners, benefits include more exercise, reduced risk of depression and anxiety, and even greater longevity

If we’re talking about companion animals, however, we also have to address the unfortunate reality of animal abandonment and the presence of stray animals in the streets. These animals also require attention and resources, as choosing to ignore them puts public health at risk and decreases safety. 

How a country chooses to address these factors through initiatives, infrastructure, and regulations will in turn influence how its population views, engages with, and reaps the health benefits from companion animals. 

It’s also important to note that when considering the overall health of a country, its people and its animals, there are so many complex factors at play, labels like “emerging” or “developed” alone aren’t capable of telling the full story. With this in mind, it’s not surprising that we’re seeing animal welfare protections increase across a spectrum of economies like the EU, the US, Mexico, and South Korea

Increased pet ownership is conducive to a healthy economy  

If we look at the United States and China, the two largest economies in the world, we’re also looking at two countries where pet ownership is on track to outpace parenthood. While the reasons behind declining birth rates are numerous and complicated, what is more certain is that pet ownership is a byproduct of disposable income. Coupled with the humanization of pets that has evolved over the last two decades, pet owners are spending more than ever. 

The US market alone spent $186B on their pets in 2023 with estimates predicting this number to have grown by the end of 2024. This isn’t unique to Americans, either. According to a recent study that involved pet owners in both Japan and China, the more emotional support participants reported receiving from their pets, the more likely they were to spend money. 

With pet owners increasingly likely to travel with their pets internationally, and remote work increasingly normalized, countries that don’t recognize companion animals as sources of emotional support – by establishing pet-friendly laws and spaces – will miss out on the higher spending of pet owners as well as the opportunity to attract a more international workforce. 

Finally, as emerging economies look to grow, they also often look to attract greater tourism. But poor animal welfare regulations can negatively impact tourism. For example, a recent change in Turkey’s laws regarding stray dogs resulted in a call for a tourism boycott

Strong animal welfare laws are future-proofing measures 

One of the biggest issues in the world of animal welfare is the existence of CAFOs (concentrated animal feeding operations), more commonly referred to as factory farms. 

Beyond the ethical questions these institutions raise around the treatment of animals, they’re also massive polluters and threaten public health. 

Many of the worst disease outbreaks in recent history, including bird flu, swine flu, and COVID-19, find their roots in environments with poor standards of animal welfare where humans were in contact with animals. Considering the economic tolls widescale outbreaks can take, establishing and implementing stronger animal welfare regulations is an economic necessity. 

Additionally, factory farms are some of the worst contributors to greenhouse gas emissions, deforestation, and water pollution. Given the existential threat posed by the climate crisis, reducing the environmental footprint of these institutions is imperative to the future health of developing economies.

The way a society treats its animals is a reflection of its values and priorities. Historically, economic growth has often been achieved at the expense of the most vulnerable (both animal and human alike). 

But true progress isn’t just measured by GDP or technological advancements, but defined by how we extend compassion and responsibility to others. Strong animal welfare laws are not just about protecting animals – they are a marker of an economy that has evolved beyond mere survival into a future where all living beings are considered part of its success.

Ayaz Ahmadov is the CEO and founder of Dosty, the all-in-one app helping pet owners navigate ongoing and emergency care, and is organizing a grassroots animal welfare campaign lobbying for greater protective regulations in Azerbaijan.