Let us make in-depth study of the organisation, functions, principles, sessions, critical analysis and conclusion of United Nations Conference on Trade and Development.
With the growing discontent and frustrations of the developing countries, an international economic forum under the name and style-United Nations Conference on Trade and Development (UNCTAD) was established in March 1964 as a permanent agency of United Nations.
In this forum, the developing countries expressed their frustrations and aspirations related to World trade and development. Thus UNCTAD is considered as the first major attempt of the developing nations to unite for discussing the problems of international relations and also for demanding restructuring of the world economy.
Accordingly, a special Secretariat of UNCTAD was set up and with the sincere help of experts possessing knowledge in the field of international trade, finance and allied matters, a highly useful documents, covering various issues was prepared and circulated among member countries and other specialized agencies relating to trade and finance.
The major factors which were responsible for the establishment of UNCTAD as a permanent agency of United Nations were the widening trade gap between developing and developed countries, growing dissatisfaction of the developing countries relating to the working of GATT, need for new set up of institutional arrangement of international co-operation in the field of world trade and also to reduce the trade gap of developing countries so as to make its balance of payments position easy.
The UNCTAD was established as a permanent organ of the General Assembly of the United Nations, with its staff in Genera. At the same time it has its own subsidiary bodies and also a full time Secretariat for serving it. The body has also a permanent organ known as Trade and Development Board as its main executive body.
It functions between the plenary sessions of the conference. It meets twice annually. The Board is composed of 55 members, who are elected by the conference from among its regular members on the basis of equitable geographical distribution. The Conference usually usually holds its meetings at intervals not more than four years. The Trade and Subsidiary Board have four subsidiary organs for assisting it in its regular functions.
(i) The Committee on Commodities;
(ii) The Committee on Manufactures;
(iii) The Committee on Shipping; and
(iv) The Committee on Invisibles and financing related to trade.
Normally, these committees meet annually although their is provision to call special session for considering urgent matters.
The main intention of the UNCTAD was:
(a) To accelerate the rate of economic growth of developing countries through control of forces instead of being dominated by them, and
(b) To eliminate the trade gap between the developed and developing countries.
The following are the main functions of UNCTAD:
(i) To promote international trade all over the world, i.e., between developed and developing countries so as to accelerate economic development.
(ii) To formulate principles and policies on international trade and related problems of economic development.
(iii) To make proposals for putting its principles and policies into effect.
(iv) To negotiate trade agreements effectively.
(v) To review and facilitate the co-ordination of activities of the other institutions within the U.N. system in the field of international trade.
(vi) To work as a centre for a harmonious trade and related documents in development policies of governments.
Thus UNCTAD has been undertaking source important activities which include:
(a) Research and support negotiations for commodity agreements;
(b) Technical elaboration of new trade schemes; and
(c) Various promotional activities so as to help developing countries in respect of trade and capital flows.
The UNCTAD had its first meeting in 1968 at Geneva with an ad-hoc gathering of 120 countries where a compact group 77 developing countries (now more than 100 developing countries) was formed. The first conference of UNCTAD adopted various recommendations as per its laid down action programmes and priorities.
All these recommendations are mostly based on the following basis principles:
(i) Each and every country has the sovereign right to dispose freely its national resources in the interest of its economic development and well-being of its people and also to trade freely with other countries.
(ii) Economic relation between countries, including trade relations, shall be based on mutual respect for principles of sovereign equality of states, self determination of people, and noninterference in the internal affairs of other countries.
(iii) There should not be any discrimination on the basis of differences in socio-economic systems, and the adoption of various trading methods and trading policies shall be consistent with this principle as laid down.
Sessions of UNCTAD:
In the mean time seven Conferences have already been held under the auspices of UNCTAD.
(i) UNCTAD-I held in Geneva in 1964;
(ii) UNCTAD-II held in New Delhi in 1968;
(iii) UNCTAD-III held in Santiago in 1972;
(iv) UNCTAD-IV held in Nairobi in 1976;
(v) UNCTAD-V held in Manila in 1979;
(vi) UNCTAD-VI held in Belgrade in 1983;
(vii) UNCTAD-VIII held in Geneva in 1987;
Critical Analysis of UNCTAD:
Although a number of conferences of UNCTAD has been held but its results are far from satisfactory. The Conference could analyse many issues but could achieve too little. Although the less developed countries could successfully present their problems of international trade and development but could reach a very little agreement on these problems.
Although some agreements have been made on certain issues such as resource transfer to developing countries, protectionison, exploitation of resources etc. but decisions on most of the core issues have been kept pending.
The following are some of the critical comments forward in connection with the functioning of the UNCTAD:
1. General impression:
The less developed countries are now having a general impression that the various sessions of UNCTAD have ended in a fiasco. In-spite of having a high hope, Conferences have sharpened the differences among the participating nations.
2. Attitude of developed countries:
The attitude of the developed countries was also not proper as they have not responded favourably towards the various demands of less developed countries.
The un-favourable attitudes are reflected from the following actions:
(a) The developed countries are not willing to give 1 per cent of their GNP;
(b) They simply refused to enlarge the system of GSP;
(c) They also turned down the demand for global debt relief to poor countries;
(d) They did not accept the demand for a code on transfer of technology of development of shipping in less developed countries;
(e) They pleaded that all development programmes of less developed countries should become a part of recovery programmes of the developed countries;
(f) The developed countries wanted to attach various conditionality clauses in their various aid programmes for the developing countries.
3. Attitude of Socialist countries:
The attitude of the socialist countries are also not very encouraging as they simply support the less developed countries without committing anything seriously.
4. Attitude of OPEC countries:
Although the OPEC countries technically belong to the group of less developed countries but they never co-operated seriously with their group and maintained a separate group for their own benefit. Neither they listen to the demand for reducing oil prices nor they provide any credit to the less developed countries.
5. Response from IMF:
Although IMF has responded by increasing quotas for less developed countries but it is found to be inadequate to offset the losses arising out of fall in their exports.
6. Neglect of real issues:
Both the developed and less developed countries have neglected the real issues during discussion and thereby turned a deaf ear towards certain distressing issues of world economy. The developed countries virtually become traders in war weapons or war contractors neglecting their duties towards the development of poor countries.
Similarly, the less developed countries have also failed to become much serious about solving their own problems of poverty and economic development. They become mostly over-regulated. The vested interest groups virtually looted the precious savings of the masses.
Whatever precious resources were mobilized these were used for meeting the needs of elite consumption neglecting the need for producing the commodities for mass consumption. Moreover, the debt burden of these countries has also been mounted as they lost their repaying capacity.
It is observed that the subsequent meetings of UNCTAD have failed to reach any desired results. Under this present circumstances the developing countries should not be disheartened rather they should make more effort to service these viable issues.
As a result of the growing pressure of “Groups of 77”, the developed countries has now started to accept the new realities. Under this circumstances, greater degree of unity and cohesion among the developing countries is urgently required. Although UNCTAD has failed in realizing its mission but UNCTAD must succeed.