Unctad

Untited Nations Conference on Trade and Development

1. A study on United Nations Conference On Trade And Development (UNCTAD) Presented by: Presented to: Kashyap Makwana Dr. Y. C. Joshi Sanidhya Singh Shikha Karamchandani G H Patel Post Graduate Institute of Business Management

2. Objectives of the study To study the objectives of UNCTAD To study the main areas of work of UNCTAD To study the main tenets of various meetings of UNCTAD To study New International Economic Order (NIEO) To study the relationship of UNCTAD with other agencies. To study the advantages of UNCTAD

3. Introduction Globalization has increased the integration of international markets and the interdependence of countries worldwide for a wide range of services and commodities. There has been growing concerns about the place of developing countries in international trade and development amidst continuous technological innovation and cut-throat competition. And are still hugely challenged in having to deal with the backlog of underdevelopment, poverty and infrastructure deficit in a sustained manner. We have conducted this study to understand how UNCTAD helps in alleviating these challenges that the underdeveloped and developing countries face.

4. Continue… Established in 1964. The head office is situated at Geneva, Switzerland. 194 member countries. Staff: 400 employees. Budget: bi-annual budget of $210 million The Secretary GeneraI of UNCTAD is Dr. Supachai Panitchpakdi of Thailand.

5. Literature review India retains 3rd spot on Unctad list of investment destinations  - October 07, 2016 (Economic Times) India has retained its position as the third most preferred investment destination behind the US and China Global FDI flows droped to between $1.5 and $1.6 trillion in 2016, a fall of 10% to 15% from 2015, before recovering in 2017 and 2018," Unctad said Domestic demand largely drives India’s growth. This, in turn, is powered by the growing middle class, young consumers and rising disposable incomes. 

6. TRADE AND DEVELOPMENT REPORT, 2016 The world economy, which continues to suffer from the fallout of the financial crisis that began in late 2007 and the meltdown in September 2008, has not been able to revive the growth conditions of the preceding decade. The world economy in 2016 is in a fragile state, with growth likely to dip below the 2.5 per cent registered in 2014 and 2015 The slowdown of trade has stalled growth in many developing countries, particularly commodity exporters, and recent growth spurts have relied largely on capital inflows. In the United States, a sluggish recovery remains vulnerable to events in Europe given their strongly intertwined financial systems. Therefore, a fundamental policy reorientation is needed, recognizing that healthy and inclusive growth will require a stable expansion of consumption and investment in productive capacity based on favourable income expectations of the working population and positive demand expectations of entrepreneurs. Source: UNCTAD Flagship report section (Website)

7. History of UNCTAD In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a full-fledged conference specifically devoted to tackling these problems and identifying appropriate international actions. The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964. Given the magnitude of the problems at stake and the need to address them, the conference was institutionalized to meet every four years, with intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support. Simultaneously, the developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.)

8. Continue… Phase 1: The 1960s and 1970s Agreements launched by UNCTAD during this time include: the  Generalized System of Preferences (1968) , whereby developed economies grant improved market access to exports from developing countries. a number of  International Commodities Agreements , which aimed at stabilizing the prices of export products crucial for developing countries. the Convention on a  Code of Conduct for Liner Conferences , which strengthened the ability of developing countries to maintain national merchant fleets. the adoption of a Set of Multilaterally Agreed Equitable Principles and Rules for the  Control of Restrictive Business Practices . This work later evolved into what is today known as "Trade and Competition Policies".

9. Continue… Furthermore, UNCTAD was a key contributor to the definition of the target of 0.7% of gross domestic product (GDP) to be given as official development aid by developed countries to the poorest countries, as adopted by the United Nations General Assembly in 1970. the identification of the Group of Least Developed Countries (LDCs) as early as 1971, which drew attention to the particular needs of these poorest countries. UNCTAD became the focal point within the UN system for tackling LDC-related economic development issues.

10. Continue.. Phase 2: The 1980s In the 1980s, UNCTAD was faced with a changing economic and political environment. There was a significant transformation in  economic thinking . Development strategies became more market-oriented, focusing on trade liberalization and privatization of state enterprises. A number of developing countries were plunged into severe  debt crises . Despite structural adjustment programs by the World Bank and the International Monetary Fund, most developing countries affected were not able to recover quickly. In many cases, they experienced negative growth and high rates of inflation. For this reason, the 1980s become known as the "lost decade", particularly in Latin America. Economic interdependence  in the world increased greatly.

11. Continue… In the light of these developments, UNCTAD multiplied efforts aimed at strengthening the analytical content of its  intergovernmental debate , particularly regarding  macroeconomic management  and international financial and monetary issues. broadening the scope of its activities to assist developing countries in their efforts to integrate into the  world trading system . In this context, the  technical assistance  provided by UNCTAD to developing countries was particularly important in the Uruguay Round of trade negotiations, which had begun under the General Agreement on Tariffs and Trade (GATT) in 1986. UNCTAD played a key role in supporting the negotiations for the General Agreement on Trade in Services (GATS). UNCTAD's work on  trade efficiency  (customs facilitation, multimodal transport) made an important contribution to enabling developing economies to reap greater gains from trade.

12. Continue… UNCTAD assisted developing countries in the  rescheduling of official debt  in the Paris Club negotiations. In 1989, the Agreement on the  Global System of Trade Preferences among Developing Countries  (GSTP) came into force. It provided for the granting of tariff as well as non-tariff preferences among its members. To date, the Agreement has been ratified by 44 countries. addressing the concerns of the poorest nations by organizing the  first UN Conference on Least Developed Countries in 1981 . Since then, two other international conferences have been held at 10-year intervals.

13. Continue… Phase 3: From the 1990s until today Key developments in the international context: The conclusion of the  Uruguay Round  of trade negotiations under the GATT resulted in the establishment of the World Trade Organization in 1995, which led to a strengthening of the legal framework governing international trade. A spectacular increase in international  financial flows  led to increasing financial instability and volatility. Against this background, UNCTAD's analysis gave early warning concerning the risks and the destructive impact of financial crises  on development. Consequently, UNCTAD emphasized the need for a more development-oriented "international financial architecture". Foreign direct investment flows became a major component of globalization.

14. Continue… UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its tenth conference, held in Bangkok in February 2000, adopted a political declaration – " The Spirit of Bangkok " – as a strategy to address the development agenda in a globalizing world.

15. Objectives of UNCTAD The objective of UNCTAD is to carry out the following key functions : Main Objective “Maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis.“ Other It functions as a forum for intergovernmental deliberation To review and facilitate the co-ordination of activities of the other institutions within the U.N. system in the field of international trade. It undertakes research, policy analysis and data collection for the debates of government representatives and experts It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition To be available as a centre for harmonious trade and related documents in the development policies of governments.

16. Main Areas of work of UNCTAD Globalization and Development International Trade and Commodities Investment and Enterprise Technology and Logistics

17. Organization structure of UNCTAD The organization structure of UNCTAD consists of Conference Trade and Development Board Commissions Expert Meetings Secretariat

18. The Conference The highest decision-making body of UNCTAD is the quadrennial conference, at which member States make assessments of current trade and development issues, discuss policy options and formulate global policy responses. The conference also sets the organization’s mandate and work priorities. The conference is a subsidiary organ of the United Nations General Assembly. The conferences serve an important political function: they allow intergovernmental consensus building regarding the state of the world economy and development policies, and they play a key role in identifying the role of the United Nations and UNCTAD in addressing economic development problems.

19. The Trade and Development Board

20. The Trade and Development Board In four years between the meetings of conferences, UNCTAD’s work is guided by the Trade and Development Board. Board membership is open to all State members of UNCTAD, and accredited inert-governmental and non-governmental organisations enjoy observer status. The board meets in Geneva once a year in regular session and up to three times a year in executive sessions to deal with ad hoc policy and institutional issues.

21. The Commissions The Trade and Development Board currently has three Commissions that meet once a year to address policy issues in specific areas and provide guidance for the work of the secretariat. These Commissions are : The commission on Trade in Goods and Services, and Commodities The commission on Investment, Technology and Related Financial Issues The commission on Enterprise, Business Facilitation and Development The UNCTAD secretariat also services the commission on Science and Technology for Development(CSTD), which is a subsidiary body of the United Nations Economic and Social Council

22. Continue… These commissions allow Governments to exchange views on policy issues in their respective ambits. As in all of UNCTAD’s inter-governmental bodies, decisions of the Commissions are taken by the consensus, and thus agreed conclusions and recommendations reflect the collective political will of UNCTAD’s membership

23. Structure of the secretariat Secretary-General Office of the S-G Special Programme For Least Developed, Landlocked and Island Developing Countries Deputy S-G Division on Globalisation & Development Strategies Division on Investment, Technology and Enterprise Development Division On Services Infrastructure for Development and Trade Efficiency Division On International Trade in Goods and Services, and Commodities Division of Management

24. Expert Meetings The work of the commission is supported by discussions among specialized technical experts in specific fields. Up to 10 such Expert Meetings are convened by the Commissions every year. They allow the government representatives attending the Commissions to take the advantage of valuable technical input from academics, practitioners and the private sector

25. UNCTAD I 1964 GENEVA To adopt a new international division of labour and make the external sector conductive to the developing countries. To improve invisible trade of developing countries through development of shipping, tourism, etc. Each developed countries contributes 1% of their income to the developing countries. Meetings of UNCTAD

26. UNCTAD II 1968 NEW DELHI To reappraise the economic situation and its implementing the recommendation of UNCTAD I. Problems and measures of economic integration and trade and development among developing countries. Special measures for economic and social upliftment of the last developed among the developing nations.

27. UNCTAD III 1972 SANTIAGO Changes in shipping freight (i.e. 1/3 of total deficit in the balance of payment of L.D.C’s was due to high shipping freights. Promotion to world trade New structure of world shipping in which the merchant marine of developing countries play an increasing and substantial role.

28. UNCTAD IV 1976 NAIROBI Helping the poor countries by the developed countries. Some kind of taxes may be disposed by the advanced nations to raise funds.

29. UNCTAD V 1979 MANILA 150 member countries were participated in this conference. No concrete resolution were passed but having some future consideration on monetary reforms.

30. UNCTAD VI 1983 BELGRADE Attainment of new international economic order. Monetary issues such as adequacy of fund resources, conditionality etc were discussed. Developed countries insisted on Liberalizations of trade policies by the developing nations

31. UNCTAD VII 1987 GENEVA The developed countries express their desire to provide debt relief to the poor countries.

32. UNCTAD VIII 1992 COLOMBIA 170 member countries agreed on board features of revitalising UNCTAD and to make it more effective in dealing with development related issues. It has agreed to create Trade and Development Board (TDB). Establishment of five ad hoc (created for a particular purpose only) group to support the committee & TDB.

33. UNCTAD IX 1996 MIDRAND UNCTAD IX met at Midrand in South Africa in 1996 in which it discussed issues pertaining to WTO, sustainable development and debt relief to developing nations.

34. UNCTAD X 2000 BANGKOK(THAILAND) The effective integration of all countries in the international trading system, improving supply capabilities, overcoming the debt problem, strengthening the commitment to social development, ensuring women´s political, economic and social participation, generating adequate financial flows for development, undertaking institutional reforms.

35. UNCTAD XI 2004 SAU PAULO, BRAZIL The effective integration of all countries in the international trading system, strengthening the commitment to social development, ensuring women´s political, reducing financial volatility, focusing on central problems of acute poverty and growing inequality within and among nations.

36. UNCTAD XII 2008 ACCRA, GHANA Increasing the level of investment in technology and infrastructure Equitable distribution of rents Harnessing development gains from windfall incomes Human resource development: Ensuring a stable macroeconomic framework Food safety and health standards

37. UNCTAD XII 2012 Doha, Quatar

38. Unctad XIV 2016 Nairobi, Kenya

39. NIEO (NEW INTERNATIONAL ECONOMIC ORDER) The NIEO was a set of proposals put forward during the 1970s by some developing countries through the United Nations Conference on Trade and Development to promote their interests by improving their terms of trade, increasing development assistance, developed-country tariff reductions, and other means. At the Sixth Special Sessions of the United Nations General in 1975, a declaration was made for the establishment of a NIEO. NIEO is based on “equity, sovereign equality, common interest and cooperation among all States, irrespective of their social and economic systems. NIEO aims at a development of the global economy as a whole, with the set up of inter-related policies and performance targets of the international community at large.

40. TENETS OF NIEO Developing countries must be entitled to regulate and control the activities of multinational corporations operating within their territory. They must be free to nationalize or expropriate foreign property on conditions favorable to them. They must be free to set up associations of primary commodities producers similar to the OPEC; all other States must recognize this right and refrain from taking economic, military, or political measures calculated to restrict it. International trade should be based on the need to ensure stable, equitable, and remunerative prices for raw materials, generalized non-reciprocal and non-discriminatory tariff preferences, as well as transfer of technology to developing countries; and should provide economic and technical assistance without any strings attached.

41. OBJECTIVES OF NIEO NIEO aims at social justice among the trading countries of the world. It suggests more equitable allocation of world’s resources through increased flow of aid from the rich & poor in the world at large. Its aim is to provide poor nations increased participation an have their say in the decision making process in international affairs. It intends to deal with the major problems of the South, such as balance of payment disequilibrium, debt crisis, exchange scarcity etc.

42. Relationship with other agencies World Trade Organization International Trade Centre UN Regional Commissions and UNDP International Monetary Fund and World Bank Other intergovernmental bodies Relationships with civil society Non-governmental organizations

43. Advantages of UNCTAD Training material is disseminated more efficiently. The programme provides universities and accounting institutions in developing countries with access to material and training in a cost-effective way. The programme allows students and professionals to learn on their own time, in their own place, at their own pace. Study materials and lessons are accessible in PDF format for online study. Participants can learn independently or with offline instructional support. The programme can reach remote locations in instances where the instructor cannot travel. This way, course participants, policy makers and company managers can be reached in developing countries.

44. Conclusion The main functions of UNCTAD are to promote international trade all over the world, working as a forum for intergovernmental deliberation, to undertake research, policy analysis and data collection for the debates of government representatives and experts. The main activities of UNCTAD are to facilitate trade and commodities, Investment and enterprise development, Macroeconomic policies, debt & development financing, Technology and Logistics, Special program for least developed countries, Africa, landlocked developing countries & small island developing States. The UNCTAD Evaluation and Monitoring Unit coordinates the oversight activities within the organization that serve to both ensure and enhance the quality and resonance of its programmes and projects.

45. Continue… The NIEO ( new international economic order) is a set of proposals which was presented in front of UN by the developed countries and NIEO aims at a development of the global economy as a whole, with the set up of inter-related policies and performance targets of the international community at large. UNCTAD and other agencies like WTO, ITC, UNDP, IMF, World Bank, etc. have collaborated on the projects related to technical assistance, capacity building, research projects, economic development, etc.

46. Thank You.