United Nations Conference on Trade and Development (UNCTAD)

 The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body.

UNCTAD is the part of the United Nations Secretariat dealing with trade, investment, and development issues.

It reports to the UN General Assembly and United Nations Economic and Social Council.

Currently, UNCTAD has 195 member states and is headquartered in Geneva, Switzerland. 

The organization's goals are to: "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".

Conference of UNCTAD

The first UNCTAD conference took place in Geneva in 1964, the second in New Delhi in 1968, the third in Santiago in 1972, fourth in Nairobi in 1976, the fifth in Manila in 1979, the sixth in Belgrade in 1983, the seventh in Geneva in 1987, the eighth in Cartagena in 1992, the ninth at Johannesburg (South Africa) in 1996, the tenth in Bangkok (Thailand) in 2000, the eleventh in São Paulo (Brazil) in 2004, the twelfth in Accra in 2008, the thirteenth in Doha (Qatar) in 2012 and the fourteenth in Nairobi (Kenya) in 2016. The fifteenth session is due to be held in Bridgetown (Barbados) from 3-8 October, 2021.


Objective of UNCTAD

 The primary objective of UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. The conference ordinarily meets once in four years; the permanent secretariat is in Geneva.

To 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.

To formulate policies relating to all aspects of development including trade, aid, transport, finance and technology.

 To provide a forum where the developing countries could discuss the problems relating to their economic development. The organisation grew from the view that existing institutions like GATT (now replaced by the World Trade Organization, WTO), the International Monetary Fund (IMF), and World Bank were not properly organized to handle the particular problems of developing countries. Later, in the 1970s and 1980s, UNCTAD was closely associated with the idea of a New International Economic Order (NIEO).


Achievement of UNCTAD

Generalised System of Preferences (GSP): One of the principal achievements of UNCTAD (1964) has been to conceive and implement the Generalised System of Preferences (GSP). It was argued in UNCTAD that to promote exports of manufactured goods from developing countries, it would be necessary to offer special tariff concessions to such exports. Accepting this argument, the developed countries formulated the GSP scheme under which manufacturers' exports and import of some agricultural goods from the developing countries enter duty-free or at reduced rates in the developed countries. Since imports of such items from other developed countries are subject to the normal rates of duties, imports of the same items from developing countries would enjoy a competitive advantage.


 Tariff reclassification: UNCTAD worked for the development of trade by reclassifying the tariff structure. In consultation with the customs cooperation council, it conducted several technical studies for the purpose of developing nations. Products of developing countries were grouped to attract favorable tariff rates. It has also instructed the Embassies to classify the products correctly so that the developing nations would enjoy concession in the matter of tariff.


Integrated Programme on Commodities: Wide fluctuations in the prices of primary products being exported by developing countries cause hardship to them. Foreign exchange earnings from the export of primary products become uncertain. To stabilize the prices of primary products, UNCTAD suggested creation of buffer stock. A common fund to stabilize the prices of primary products was created under a programme called integrated programme on commodities. The initial contribution to the fund is 750 million dollars.


Reducing debt burden: UNCTAD reduced the debt burden of developing countries. Large amount of loans are obtained by underdeveloped countries from bilateral and multilateral sources. As a result, the debt servicing burden (repayment of loan installments and interest thereon) increased for the underdeveloped countries. The debt servicing burden accounted for a considerable proportion of foreign exchange earnings. In some cases, the whole amount of earnings earned from exports had to be spent on debt servicing. UNCTAD persuaded the creditors in the developed countries to write-off a part of the debts accumulated. Some of the developed countries agreed to the proposal and reduced the debt burden of underdeveloped countries.


Commodity development facility: Commodity development facility is popularly is known as second window of the integrated programme on commodities. UNCTAD conference held in May 1979 at Manila strengthened this scheme. Several developing countries contributed to the creation of commodity development facility. The developing countries benefited very much in terms of processing, marketing skills, product adaptation and infrastructure facilities.


Development Finance: UNCTAD is also endeavoring to reduce the debt burden of the developing countries. These countries have taken large amount of loans from bilateral and multilateral sources. As a result, the servicing of the accumulated debts, i.e. the interest payments and repayments, now account for a very substantial proportion from exports.In fact, for some of the developing countries the outgo of foreign exchange on account of debt servicing is more than the current inflows of loans and credits. UNCTAD is trying to persuade the developed countries, to write off a part of the accumulated debts. Some of the developed countries, mostly Scandinavian group, have accepted the proposal.


Technology Transfer: In UNCTAD, measures were adopted to strengthen technology capability of LDC‘s. It was pointed out that better research facilities, training programmes and establishment of local and regional centers for technology transfer would serve the purpose. Thus, the UNCTAD VI held at Belgrade in June 1983 emphasized the need for transfer of technology to LDC‘s in order to promote their speedy and self reliant development. UNCTAD VI passed a resolution relating to the transfer of technology to LDC‘s on the lines of the policy paper approved at UNCTAD VI. The UNCTAD has simply laid down the broad principles for transfer of publicity funded technologies at the intergovernmental level. It may facilitate the process of technology transfer by freer access to sources of information, cutting down barriers to free flow of technology etc. 


 Economic Co-operation: UNCTAD-II held at Delhi in 1968 emphasized for the first time the need for promoting international co-operation and self-reliance among the LDCs. UNCTAD VI again emphasized the need for co-operative efforts among the LDCs through widening the scope of preferential trading arrangements, harmonizing industrial development programmes through infrastructural facilities particularly in respect of shipping services and simple payment mechanism under common clearing system. GSTP is major initiative of developing countries to expand mutual trade through grant of tariff and non-tariff concessions and other measures such as long term contracts under UNCTAD.


 Reports published by UNCTAD


The Trade and Development Report

The Trade and Environment Review

The World Investment Report

The Economic Development in Africa Report

The Least Developed Countries Report

UNCTAD Statistics

Digital Economy Report (formerly known as the Information Economy Report)

The Review of Maritime Transport

The International Accounting and Reporting Issues Annual Review

The Technology and Innovation Report



Comments

Post a Comment

Popular posts from this blog

Non-Proliferation Treaty (NPT)

Image
  ·        The Treaty on the Non-Proliferation of Nuclear Weapons, commonly known as the Non-Proliferation Treaty or NPT, is an international treaty whose objective is to prevent the spread of nuclear weapons and weapons technology, to promote cooperation in the peaceful uses of nuclear energy, and to further the goal of achieving nuclear disarmament and general and complete disarmament.  ·        Opened for signature in 1968, the treaty entered into force in 1970. As required by the text, after twenty-five years, NPT Parties met in May 1995 and agreed to extend the treaty indefinitely.  ·        The treaty defines nuclear-weapon states as those that have built and tested a nuclear explosive device before 1 January 1967. The United States, Russia, the United Kingdom, France, and China are ...
Read more

World Wetlands Day

Image
  World Wetlands Day is observed every year on 02 February. It aims to raise awareness about the importance of wetlands, which apart from contributing to biodiversity, also help in mitigation of climate impact and availability of freshwater. The theme for the World Wetlands Day 2022 is 'Wetland's action for people and nature showing the actions required to ensure the conservation and sustenance of wetlands. History of World Wetlands Day The day was first accepted as an international treaty named the Convention on Wetlands on February 02, 1971, in Ramsar, Iran. The United Nations General Assembly adopted resolution 75/317 for World Wetlands Day on August 30, 2021. Though public awareness regarding the day started in 1997. Significance of World Wetlands Day The wetlands play a significant role in the ecosystem as they are the biodiversity hotspots, being the habitat for many aquatic flora and fauna. It is also home to numerous species of birds, including migrato...
Read more