UNCTAD - what kind of organization is this? Deciphering, classification and functions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

UNCTAD is the United Nations Conference on Trade and Development. It is this institution that coordinates the activities of countries separately, helps to effectively build a mechanism for domestic policy and international relations in their harmonious mutual complement.

History

In the early sixties, the question arose of designating the role of developed and developing states in the mechanism of international trade. Such a contentious issue can only be resolved through a centralized discussion and the adoption of the necessary measures. Then came the idea of creating and holding a special conference on a regular basis, which would develop the general principles of the global development strategy.

In 1964, the first UN Conference on Trade and Development was held. The presence of many problems and the need for decades to solve them prompted the next decision - to convene UNCTAD every four years. Between conferences, some members may hold intergovernmental meetings. At the same time, the Secretariat and the "Group of 77" were created.

The first decade of work was marked by the acceptance of the Agreement on the Generalized System of Preferences, the Convention on the Code of Conduct for Linear Conferences and the Code of Approved Uniform Principles and Rules for the Practical Control and Restriction of Business.

From 1980 to 1990, the emphasis was on the integration of developing countries into the international trading space: it was UNCTAD that excelled during the Uruguay Round of trade negotiations and the adoption of the General Agreement on Trade in Services.

Today, the organization focused on stimulating foreign direct investment and globalization processes. Determined the importance of differentiating the problems of developing countries and the features of their most effective solution.

General characteristics

UNCTAD is the key organ of the UN General Assembly on trade and development issues. As mentioned, it was established in 1964 as a permanent intergovernmental structure. UNCTAD stands for United Nations Conference on Trade and Development (UNCTAD).

This conference is the focal point for development and related trade, financial, technology and investment issues. UNCTAD's mission is to help integrate developing and third world countries into the world economy with the right trade and investment strategies.

To achieve its goals, the organization conducts research and analysis of political aspects, intergovernmental meetings. Implementedfruitful technical and scientific cooperation, close relationship with the civil side and entrepreneurs (small, medium and large sector).

Structure

UNCTAD is organized by committees:

1. Commodities.
2. Industrial goods.
3. Unseen items and financing directly related to trade.
4. On technology transfer and exchange.
5. On economic cooperation among developing countries and on shipping.
6. Special Committee on Priority Issues.

The executive body is the Trade and Development Council. Responsible for the implementation of assigned tasks and compliance with the selected priorities. The Secretariat maintains cooperation with the government of states, other UN organizations and individual commissions.

Classification

UNCTAD categorizes countries as follows:

1. Developed nations, which included fifteen countries of Western Europe, Australia, New Zealand, Israel, South Africa and members of the G7.
2. Countries of Eastern Europe (the territory of the former USSR).
3. Socialist countries of Asia.
4. Developing countries.

The fourth group is considered more widely. According to the UNCTAD classification, these states are divided into:

1. Depending on the specialization of export operations: oil (20 countries) and industrial exporters (Brazil, Hong Kong,Mexico, Singapore, Taiwan, Yugoslav Territory), least developed.
2. In terms of per capita income: high (more than $4.5 thousand), medium ($1-4.5 thousand) and low (less than $1 thousand).

Goals

The main objectives of UNCTAD are:

• promoting the development of international trade, which will subsequently accelerate economic growth in developing countries and the already established "titans of the world market";
• formation of fundamental principles, a set of rules and recommendations that govern international trade and all issues related to economic progress (also includes financial, investment and technological areas);
• diversified support for the activities of other agencies within the United Nations structure that are in any way related to the problems of developing trade and the economy as a whole;
• conducting a series of negotiations and approval of multilateral regulations and legal acts in the trade field;
• equality and mutual benefit in cooperation between states;
• coordination between government policy and local economic groups.

In this regard, the organization is obliged to perform three functions:

1. Forum for international discussions.
2. Analysis of the political and economic environment, collection of information.
3. Providing technical support.

Activities

Based on the assignments submitted, UNCTAD is acting on the followingdirections:

• commodity trade regulation;
• development of policy measures in the economy;
• support and intensification of the economic partnership of developing countries;
• negotiating on the formation of a large-scale system of preferences;
• creation of special projects to help the least developed territories;
• development of fundamental articles of the code, addition of principles and rules on control of business practices;
• regulation of multinational companies;
• cooperation with international economic organizations;
• analysis of a wide range of problems.

Thus, the conference conducts diversified activities and considers many aspects that are somehow connected with international trade. Contribute to the development of all countries through a differentiated approach, improve trade efficiency and stabilize the global economy.