What is UNCTAD? UNCTAD Review

About UNCTAD

The United Nations Conference on Trade and Development is an international economic organization that reviews issues related to trade and economic development of countries. It is the only intergovernmental body within the United Nations system that comprehensively deals with issues related to development and trade, finance, technology, investment and sustainable development. It is headquartered in Geneva, Switzerland and has 192 member states.

Basic Information

The United Nations Conference on Trade and Development, referred to as UNCTAD, is one of the permanent institutions of the United Nations General Assembly and an international economic organization that reviews issues related to trade and economic development of countries (hereinafter referred to as UNCTAD). UNCTAD holds a general meeting every four years and the general meeting is the highest authority of UNCTAD.

As of 2008, UNCTAD has held 12 conferences in Geneva, New Delhi, Santiago, Nairobi, Manila, Belgrade, Geneva, Cartagena (Colombia), Midrand (South Africa), Bangkok, Sao Paulo, Brazil and Accra, Ghana. China joined UNCTAD in 1972 and is a member of UNCTAD, the UNCTAD Board and its main committees.

Background

After World War II, many developing countries worked hard to develop their national economies after gaining political independence. However, due to the severe punishment and obstruction of the old international economic order, the economies of developing countries suffered great damage: the export of primary products stagnated, the terms of trade deteriorated, and the international balance of payments deficit continued to expand. In the early 1960s, developing countries were deeply concerned about their position in world trade. They called for a comprehensive conference to discuss the situation faced by developing countries in world trade and demanded that international joint actions be taken to solve the problems faced by developing countries.

On December 8, 1962, the United Nations General Assembly approved the convening of a conference on trade and development.

In March 1964, the first United Nations Conference on Trade and Development came into being in Geneva. Due to the complexity and persistence of the issues that needed to be addressed, the 19th General Assembly, at the suggestion of the first UNCTAD, adopted Resolution 1995 on December 30, 1964, establishing the United Nations Conference on Trade and Development as a permanent institution together with the United Nations General Assembly, with its headquarters in Geneva, Switzerland.

After China resumed its lawful seat in the United Nations in 1971, it participated in UNCTAD for the first time in April 1972 and has participated in UNCTAD's activities ever since.

As of October 1999, there were 190 participating countries and regions.

UNCTAD has held its 12th session in accordance with the four-year session schedule.

Except for Geneva, all the conferences were held in cities in developing countries. Under the suggestion of this conference, the United Nations has done a lot of work in recent years to provide technical assistance to developing countries, assist them in debt management and train senior financial management personnel, and has achieved remarkable results. In addition, UNCTAD has also conducted many permanent meetings in trade development research and enhancing the competitiveness and status of developing countries in the international landscape, and assisted some developing countries in negotiations on joining the world organization, winning credibility.

Main Responsibilities

The organization's mission is directly relevant to the world's business community, since its central purpose is to give developing countries and former socialist countries in transition to a market economy the tools to enable them to successfully integrate into the international trade and economic system. These tools range from normative standard-setting activities in new areas such as environmental accounting to practical projects aimed at speeding up the flow of goods; from analytical research and data collection on investment trends and policies to the promotion of small and medium-sized enterprises and business empowerment. It provides competition law and policy advice to governments and businesses. At the same time, it creates new channels for microfinance programs from the world capital markets and strengthens the ability of developing countries to take advantage of electronic commerce. UNCTAD's major annual publications: the Trade and Development Report, the World Investment Report and the Least Developed Countries Report, play an authoritative role in their respective fields. These reports provide the latest information, analyze global trends, and formulate practical policy recommendations that are useful to governments and the private sector. UNCTAD's central work is to build the inherent capacity of developing countries by providing the best policy framework for local and multinational enterprises to thrive. But there are other increasingly important aspects of capacity building, such as the training of officials and business executives in international trade and investment issues.

UNCTAD hosts oil industry conferences in Africa and Russia; promotes Russian technology products with U.S. companies; and helps developing countries build stock markets and commodity exchange markets. Businesses can participate in the work of UNCTAD directly and indirectly through the following channels. First, as observers or panelists at intergovernmental meetings, such as expert meetings; UNCTAD's three committees (the Commission on Trade in Goods, Services and Commodities, the Commission on Investment, Technology and Related Financial Issues, and the Commission on Enterprise, Enterprise Facilitation and Development); the annual Trade and Development Commission; and the quadrennial General Assembly. Second, companies can work with the Secretariat to participate in projects of common interest that have an impact on development.

Organization

The eighth session of the United Nations Conference on Trade and Development held in Cartagena, Colombia in February 1992 agreed to establish a new set of organizational structures. The highest authority is the UNCTAD, which is attended by all member states and meets every four years. The permanent institution is the Trade and Development Board, which holds one regular session and three executive sessions each year. The Board also has three committees: the Committee on Trade in Goods, Services and Commodities; the Committee on Investment, Technology and Related Financial Issues; and the Committee on Enterprise, Business Facilitation and Development. Routine affairs are undertaken by the secretariat in Geneva, which mainly serves the UNCTAD, the Board and its subsidiary bodies.

Objectives

The purpose of UNCTAD is to promote international trade, especially to accelerate the economic and trade development of developing countries, formulate principles and policies on international trade and related economic development issues; promote the progress of negotiations between developing and developed countries on important issues in the field of international economy and trade; review and coordinate the activities of other agencies of the United Nations system in international trade and economic development; take action to pass multilateral trade agreements; coordinate the trade and development strategies of governments and regional economic groups. The main goal of UNCTAD is to help developing countries enhance national capabilities, maximize trade and investment opportunities, accelerate the development process, and assist them in coping with the challenges of globalization and integrating into the world economy on a fair basis. UNCTAD achieves its goals through research and policy analysis, intergovernmental deliberations, technical cooperation and cooperation with non-governmental organizations and the business sector. Its current work areas involve trade, finance, technology, enterprise, sustainable development, as well as South-South cooperation and the least developed countries.

Economic impact

Since its establishment, UNCTAD has played an important role in promoting the economic and trade development of developing countries, promoting North-South dialogue and South-South cooperation. It has presided over the negotiation and conclusion of some important international conventions and agreements, such as the Charter of Economic Rights and Obligations of States, the Code of Conduct for Liner Conventions, the Generalized System of Preferences, the Integrated Programme of Commodities, etc. It played a core role in the reform of old international economic relations and the establishment of a new international economic order and boom within the United Nations system in the 1970s and early 1980s. In the past decade, with the rapid changes in the international political and economic situation, especially due to the increasingly negative attitude of developed countries towards development cooperation and the decline in negotiating power due to different interests and demands of developing countries, UNCTAD's negotiating function has gradually weakened. However, it still plays a unique and important role in helping developing countries formulate economic development strategies and trade, investment and financial policies and strengthen their ability to participate in multilateral economic and trade affairs. It is known as the "conscience of developing countries" and the "knowledge base of the South". Today, UNCTAD is still an international multilateral economic and trade organization that is trusted and valued by the vast majority of developing countries. It is still an important forum to contain the pursuit of economic selfishness by developed countries and safeguard the legitimate interests of the vast majority of developing countries.

Publications

The publications of the United Nations Conference on Trade and Development are a sure win, including the Bulletin of the United Nations Conference on Trade and Development (monthly), Trade and Development (annual), Trade and Development Report (annual), Trade and Development Review (annual), Handbook of International Trade and Development Statistics (annual), and Monthly Commodity Price Bulletin. The Trade and Development Report, World Investment Report, and Least Developed Countries Report published annually by UNCTAD have a wide influence and reputation in the world. These reports are not only authoritative materials widely cited internationally, but also important references for countries, especially developing countries, to formulate economic and social development policies. UNCTAD is working hard to become a "knowledge-based" international organization.