UN Trade and Development (UNCTAD) is a permanent intergovernmental body established by the United Nations General Assembly in 1964, which focuses on trade, investment, finance and technology, particularly from the perspective of developing countries and their integration into the global economy.

UNCTAD provides a forum where countries can exchange views on global economic issues, build consensus on trade and development issues and facilitate sharing of experience.

It organises quadrennial ministerial conferences as well as regular meetings of its boards, commissions and expert groups.

Key Facts about UNCTAD

UNCTAD is an element of the UN secretariat, and works within the wider UN system, but has its own membership, leadership and budget.

How Did UNCTAD Evolve?

The first United Nations Conference on Trade and Development was held in Geneva in 1964.

After the conference, the UN institutionalised UNCTAD as a permanent body with a mandate to host a conference every four years, backed up by intergovernmental bodies and a permanent secretariat.

One of UNCTAD’s early and important achievements was the development of the Generalized System of Preferences (GSP) which gave developing countries preferential tariff treatment for certain exports.

What does UNCTAD do?

UNCTAD mainly works to help developing countries participate more effectively in the global economy.

UNCTAD supports developing countries to:

1. Trade and Economic Analysis

Study global trade, investment, finance and development trends and provide policy-oriented research.

2. Policy Support

Help developing countries design policies that enable them to leverage trade, investment, finance and technology for inclusive and sustainable development.

3. Consensus Building

Provide a forum where countries can discuss major global economic challenges and work towards multilateral consensus.

4. Technical Assistance

Provide technical support to developing countries to strengthen their capacity in areas such as trade, investment, digital economy and development policy.

5. Global Economic Research

Publish its research in several major reports.

Major UNCTAD Reports

Some of its important flagship publications include:

• Trade and Development Report
• World Investment Report
• Least Developed Countries Report
• Economic Development in Africa Report
• Digital Economy Report
• Technology and Innovation Report
• Review of Maritime Transport

These reports provide data and analysis on major trends affecting global trade and development.

Who does UNCTAD work with?

UNCTAD works with a variety of stakeholders, including:

• Member States
• International organisations
• Academic institutions
• Non-governmental organisations
• Civil society
• Media
• Youth organisations

This diverse set of stakeholders helps UNCTAD take different viewpoints into consideration when discussing global economic and development issues.

How is UNCTAD governed?

Trade and Development Board

The Trade and Development Board (TDB) is UNCTAD’s main governing body between its quadrennial conferences.

It oversees UNCTAD activities and deals with policy, management and institutional matters.

The Board consists of 160 members elected from UNCTAD’s 195 member states, representing various regions.

UNCTAD Commissions

The Trade and Development Board is supported by two major commissions:

1. Investment, Enterprise and Development Commission: Deals with issues related to investment, enterprises and development.
2. Trade and Development Commission: Focuses on trade and broader development-related issues.

The commissions generally meet annually to:

• Conduct policy discussions on emerging issues
• Review reports prepared by expert groups and intergovernmental bodies
• Examine progress across UNCTAD’s major areas of work
• Develop and recommend policy conclusions and research priorities

Secretary-General of UNCTAD

The Secretary-General heads the UNCTAD Secretariat in Geneva.

The appointment involves nomination by the UN Secretary-General and subsequent approval by the UN General Assembly.

Why is UNCTAD important for developing countries?

UNCTAD is particularly important for developing economies because it takes a broader view of international trade, not just from the perspective of market access, but also the perspective of development.

It helps countries understand how trade, investment, technology and finance can contribute to inclusive and sustainable economic growth.

For developing countries, UNCTAD therefore serves as an important platform for research, technical assistance and policy dialogue.

UNCTAD vs WTO

Conclusion

UNCTAD plays an important role in linking international trade with development objectives.

While it does not function as a trade regulator like the WTO, it provides developing countries with research, policy advice, technical assistance and a platform for global economic dialogue.

Its broader contribution is to help countries leverage trade, investment, finance and technology to achieve more inclusive and sustainable development.

FAQs

1. What is UNCTAD?

UN Trade and Development (UNCTAD) is a permanent intergovernmental body of the United Nations that works on trade, investment, finance, technology and development.

2. When was UNCTAD established?

UNCTAD was established in 1964 following the first United Nations Conference on Trade and Development held in Geneva.

3. Where is the headquarters of UNCTAD?

UNCTAD is headquartered in Geneva, Switzerland.

4. How many members does UNCTAD have?

UNCTAD has 195 member states.

5. What is the main objective of UNCTAD?

Its broad objective is to help developing countries benefit more effectively from the global economy through trade, investment, finance and technology.

6. What is the Trade and Development Board?

The Trade and Development Board is UNCTAD’s governing body between its quadrennial conferences.

It oversees the organisation’s policy, management and institutional activities.

7. What are the two main UNCTAD commissions?

The two commissions are the Investment, Enterprise and Development Commission and the Trade and Development Commission.

8. What is UNCTAD’s role in developing countries?

UNCTAD provides economic research, policy analysis, technical assistance and a platform for consensus-building to help developing countries participate more effectively in the global economy.

9. What is one important early achievement of UNCTAD?

One of its notable early contributions was the development of the Generalized System of Preferences (GSP) which gave developing countries preferential tariff treatment for certain exports.

10. What is the difference between UNCTAD and WTO?

UNCTAD focuses on trade and development, particularly through research, policy dialogue and technical assistance, while the WTO provides and administers the rules governing international trade.