United Nations Conference on Trade and Development (UNCTAD)

By Smriti Chand

United Nations Conference on Trade and Development (UNCTAD)!
Established in 1964, the United Nations Conference on Trade and Development (UNCTAD) aims at the development-friendly integration of developing countries into the world economy.

UNCTAD is the focal point within the United Nations for the integrated treatment of trade and development and the inter related issues in the areas of finance, technology, investment and sustainable development. At present 193 countries are members in UNCTAD.
The organization works to fulfill this mandate by carrying out three key functions:
i. It functions as a forum for inter-governmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building.
ii. It undertakes research, policy analysis and data collection for the debates of government representatives and experts.
iii. 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. When appropriate, UNCTAD cooperates with other organizations and donor countries in the delivery of technical assistance.
UNCTAD, in co-operation with other organizations and donor countries, provides technical assistance tailored to the needs of the developing countries, with special attention being paid to the needs of the least developed countries and countries with economy in transition.
In performing its functions, the secretariat works together with member Governments and interacts with organizations of the United Nations system and regional commissions, as well as with governmental institutions, non-governmental organizations, the private sector, including trade and industry associations, research institutes and universities worldwide.

Overview of the Main Activities:

(a) Trade and Commodities:

i. Commodity Diversification and Development:
Promotes the diversification of production and trade structures. Helps Governments to formulate and implement diversification policies and encourages enterprises to adapt their business strategies and become more competitive in the world market.
ii. Competition and Consumer Policies:
Provides analysis and capacity building in competition and consumer protection laws and policies in developing countries. Publishes regular updates of a Model Law on Competition.
iii. Trade Negotiations and Commercial Diplomacy:
Assists developing countries in all aspects of their trade negotiations.
iv. Trade Analysis and Information System (TRAINS):
Comprehensive computer-based information system on trade control measures that uses Uncial’s database. The CD-ROM version includes 119 countries.
v. Trade and Environment:
Assesses the trade and development impact of environmental requirements and relevant multilateral agreements and provides capacity-building activities to help developing countries participate in and derive benefits from international negotiations on these matters.

(b) Investment and Enterprise Development:

i. International Investment and Technology Arrangements:
Helps developing countries to participate more actively in international investment rule making at the bilateral, regional and multilateral levels. These arrangements include the organization of capacity-building seminars and regional symposium and the preparation of a series of issues papers.
ii. Investment Policy Reviews:
Intended to familiarize Governments and the private sector with the investment environment and policies of a given country. Reviews have been carried out in a number of countries, including Ecuador, Egypt, Ethiopia, Mauritius, Peru, Uganda and Uzbekistan.
iii. Investment Guides and Capacity Building for the LDCs:
Some of the countries involved are Bangladesh, Ethiopia, Mali, Mozambique and Uganda.
iv. Empretec:
Promotes entrepreneurship and the development of small and medium- sized enterprises. Empretec programmes have been initiated in 27 countries, assisting more than 70,000 entrepreneurs through local market-driven business support centres.

(c) Macroeconomic Policies, Debt and Development Financing:

i. Policy Analysis and Research:
On issues concerning global economic interdependence, the international monetary and financial system and macroeconomic and development policy challenges.
ii. Technical and Advisory Support:
To the G24 group of developing countries (the Intergovernmental Group of 24) in the World Bank and the International Monetary Fund; advisory services to developing countries for debt rescheduling negotiations under the Paris Club.
iii. DMFAS Programme:
Computer-based debt management and financial analysis system (DMFAS) specially designed to help countries manage their external debt. Started in 1982 and now installed in 62 countries.

(d) Technology and Logistics:

i. ASYCUDA Programme:
Integrated customs system that speeds up customs clearance procedures and helps Governments to reform and modernize their customs procedures and management. Installed in over 80 countries, ASYCUDA has become the internationally accepted standard for customs automation.
ii. ACIS Programme:
Computerized cargo tracking system installed in 20 developing countries of Africa and Asia.
iii. E-Tourism Initiative:
Linking sustainable tourism and Information and communication technologies (ICTs) for development, UNCTAD has developed this Initiative to help developing countries’ destinations to become more autonomous by taking charge of their own tourism promotion by using ICT tools.
iv. Technology:
Services the United Nations (UN) Commission on Science and Technology for Development and administers the Science and Technology for Development Network, carries out case studies on best practices in transfer of technology; undertakes Science, Technology and Innovation Policy Reviews for interested countries, as well as capacity-building activities.
v. Train for Trade Programme:
Builds training networks and organizes training in all areas of international trade to enable developing countries to increase their competitiveness. Currently developing distance learning programmes focusing on the Less Developed Countries (LDCs).

UNCTAD Conferences:

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.
i. The conference is a subsidiary organ of the United Nations General Assembly.
ii. 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.

Relationship with other International Organizations:

As the focal point for the integrated treatment of trade and development, UNCTAD interacts and cooperates with a variety of other organizations within and outside the United Nations system.
These include the following:

1. World Trade Organization (WTO):

UNCTAD and WTO have been joining forces to ensure a better functioning of the multilateral trading system. In April 2003, the organizations signed a Memorandum of Understanding providing for cooperation and consultations on their technical assistance activities and for the conduct of joint studies on selected issues. UNCTAD and WTO interact frequently and the intergovernmental processes in both organizations are often attended by the same Government representatives.

2. International Trade Centre (ITC):

The ITC is jointly sponsored by UNCTAD and WTO for operational, enterprise-oriented aspects of trade development, with an emphasis on trade promotion. In contrast to UNCTAD, whose technical assistance is primarily tailored to Governments, ITC’s technical assistance focuses on assisting businesses in developing countries. Both UNCTAD and WTO are represented in the Joint Advisory Group supervising ITC s work and UNCTAD has a number of joint technical assistance activities with ITC.

3. United Nations Regional Commissions and UNDP:

UNCTAD cooperates with these international entities on a project-by-project basis, be it in relation to research projects, joint workshops and seminars, or technical assistance. Since UNCTAD has no representatives in the field, the United Nations Development Programme (UNDP) country offices are also used to support UNCTAD activities in various countries.

4. Bretton Woods Institutions (International Monetary Fund and World Bank):

The World Bank and UNCTAD cooperate in the delivery of some technical assistance and capacity- building programmes. The UNCTAD secretariat, through the Debt Management-DMFAS programme, is also an active member of the Inter-Agency Task Force on Finance Statistics, which is chaired by the IMF.
The three agencies also cooperate in organizing seminars. UNCTAD attends the biannual meetings of the IMF and the World Bank and both institutions participate in UNCTAD’s intergovernmental meetings.

5. Other Inter-Governmental Bodies:

In addition to the organizations of the United Nations system, a total of 111 other intergovernmental bodies have gained accreditation as observers to UNCTAD’s Trade and Development Board.

UNCTAD Secretariat:

The UNCTAD secretariat provides substantive and technical services to the intergovernmental bodies of UNCTAD in their discussions and deliberations. Since its inception in 1964, the secretariat has thus serviced twelve sessions of the United Nations Conference on Trade and Development, meeting every four years, with the twelfth session having taken place in Accra, Ghana in April 2008.
It has also fully serviced three United Nations Conferences on the Least Developed Countries, meeting every 10 years with the third Conference having taken place in Brussels, Belgium, in May 2001.
The secretariat undertakes research, policy analysis and data collection to provide substantive inputs for the discussions of the experts and government representatives in these intergovernmental bodies.
It also provides a series of technical assistance programmes and projects in support of developing countries, paying particular attention to the special handicaps of the least developed countries.
The Secretary-General of UNCTAD is the head of the organization. The Secretariat is composed of about 400 staff members with an annual regular budget of approximately $50 million and $25 million of extra budgetary technical assistance funds.

Evaluation at UNCTAD:

The UNCTAD Evaluation and Planning Unit coordinates the oversight activities within the organization that serve to both ensure and enhance the quality and resonance of its programmes and projects.
The main activities of the unit to cover this mandate include:
i. Conducting an annual in-depth evaluation of an UNCTAD programme for the Trade and Development Board;
ii. Organizing and overseeing programme and project evaluations at the request of donor agencies,
iii. Participating in joint evaluations with other international organizations;
iv. Overseeing and coordinating UNCTAD’s involvement in the United Nations results-based management framework;
v. Providing guidance and assistance to programme managers in using results-based management methodologies;
vi. Participating and contributing to inter-agency initiatives on evaluation, such as, setting up evaluation standards or joint country-level evaluations; and
vii. Acting as the focal point for UNCTAD on all oversight matters, such as external evaluations, inspections and audits.