UNCTAD Commits to Inclusive Global Development at Its Diamond Jubilee Conference

While the WTO governs global trade rules, UNCTAD tackles trade policies and regulations at national, regional and international levels. UNCTAD’s role in advancing South-South cooperation and North-South dialogue drew praise from global leaders. At its diamond jubilee from 12th to 14th of June 2024, UNCTAD analysed challenges in global trade disruptions and soaring public debt among burning issues. Writes chartered accountant Sriram Chekuri.

Hyderabad : International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. UN trade and development (formerly known as UNCTAD) is dedicated to promoting inclusive and sustainable development through trade and investment. With a diverse membership, it empowers countries to harness trade for prosperity. UNCTAD is a member of The United Nations Economist Network and contributes to its research and analysis.

Headquartered in Geneva, Switzerland, it has offices in New York, USA, and Addis Ababa, Ethiopia. In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a full-fledged conference specifically devoted to tackling these problems and identifying appropriate international actions. In the context of the new Sustainable Development Goals, UNCTAD is one of the only UN bodies with direct relevance to all targets within Goal 17 – Partnerships for the Goals. UNCTAD, together with UNDP, is the only UN entity among the major institutional stakeholders for Financing for Development.

The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964. Magnitude of the problems and the need to address them, the conference was institutionalized to meet every four years. But intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support. Consequently from 12th to 14th of June 2024, UNCTAD celebrated its diamond jubilee as a significant event of the world. The three-day-gathering analysed challenges in global trade disruptions, soaring public debt, climate change, and international finance and investment.

The WTO primarily governs global trade rules and adjudication whereas the ITC specifically focuses on connecting SME (Small and Medium Enterprises) to global markets; UNCTAD deals with trade policies, regulations, and institutions at national, regional and international levels from a developmental perspective. UNCTAD led the UN Inter-Agency Cluster on Trade and Productive Capacity as a Cluster from 2008.

With the support of 15 international organisations, UNCTAD is a mechanism dedicated to the coordination of trade and development operations at the national and regional levels within the UN system. For this reason, UNCTAD has deepened cooperation with other international organizations, governments, businesses, civil society, youth and academia to enhance its policies and practices as mentioned above. WTO and UNCTAD have a longstanding Memorandum of Understanding dating back to 2003, which was expanded in October 2015 with the identification of 11 areas of further cooperation.

As the home of three key international institutions on trade (UNCTAD, WTO and ITC), Geneva is the global "Trade Hub." The three organizations collaborate closely, based on their respective mandates and competences. As a member of the broader development community, UNCTAD has forged strategic partnerships with dozens of entities from the private sector, academia, and other international and regional organizations.

UNCTAD is building relationships with civil society organizations also. As such a total of 116 intergovernmental bodies and 242 civil society organizations have gained accreditation as observers to UNCTAD's Trade and Development Board, the wheel of the organization that sets its overall direction. Its statistics service provide data-driven analysis and releases key statistics via the UNCTAD stat Data Centre.

UN Secretary-General (António Guterres) opened the UN Trade and Development Global Leaders Forum, marking the 60th anniversary of the organization, with the Secretary-General of UNCTAD, Rebeca Grynspan and heads of state and government, 28 ministers of trade and foreign affairs, global leaders civil society and private sector representatives, leading economists and heads of international organizations from 152 countries across the world.

Theme of the conference is “Charting a new development course in a changing world,” with over 1,100 participants convened in Geneva for the three-day forum. Mainly the event intended to shape a vision for inclusive prosperity amidst global crises, trade disruptions, mounting debt burdens, and the severe impact of climate change on developing countries.

Support and recognition came from the leaders of countries reflecting the diversity of the Global South. (President’s Xi Jinping of China, Luiz Inácio Lula da Silva of Brazil, Azali Assoumani of Comoros, Miguel Diaz Canel of Cuba, Luis Abinader of the Dominican Republic, Andry Nirina Rajoelina of Madagascar, and Prime Ministers Mia Mottley of Barbados and Kay Rala Xanana Gusmão of Timor-Leste recognized UNCTAD’s key role in advocating for developing countries' access to the benefits of a global economy.)

Global leaders admired UNCTAD’s efforts in advancing South-South cooperation and North-South dialogue. China announced a $20 million support package for UNCTAD’s work in implementing the 2030 Agenda for Sustainable Development over the next five years but India could not make its presence even by a senior bureaucrat in this August conference.

Leaders commended the growing effectiveness of UNCTAD in helping developing countries participate in the global economy. They praised its expert policy analysis on the challenges of global trade for developing economies, including new green industrial policies, foreign direct investment, the international financial architecture, the challenges of the digital economy, and the disruption of global value chains.

UN Trade and Development Secretary-General Rebeca Grynspan highlighted that many of the world’s poorest populations remain vulnerable to economic instability, environmental degradation, and growing debt burdens. She voiced the organization’s commitment to support developing economies through an open and fair multilateral trading system.

Many participants expressed concern over the disrupted global supply chains amidst escalating geopolitical tensions and the persistent asymmetry of the global economy in this digital age. Similarly they explored cascading crises, sustainable industrial policies, and the urgent need to revitalize falling foreign direct investment. Consensus was arrived that industrial policies and structural changes should occur in a socially inclusive and sustainable manner to ensure social stability and specially protect populations of developing countries.

Thought leaders in the digital economy stressed the importance of including voices from the Global South in artificial intelligence (AI) governance discussions. This inclusion is vital to support the development of contextual and adaptable AI. They highlighted the need for international cooperation and inclusive policy development, advocating for an international regulatory framework for AI developments. "Special voices session" acquired the stage on the final day 14th by noted economists.

Ranging from promoting trade as a critical engine for development to reforming the international financial architecture, they highlighted the need for strong institutions and the limitations of one-size-fits-all development approaches. Special attention was given especially for developing countries about the current debt crisis as an example of the financial architecture's inadequacy in adapting to a changing global landscape. Doyens underscored that solutions are needed to reform the international economic system that at this critical juncture.

Such steps are to address the debt crisis while creating a more resilient and inclusive economic future, as reflected in its recently published “World of Debt”. This commemoration sets the stage for the United Nation’s upcoming Summit of the Future, where UNCTAD will play a significant role in advocating for the Global South, further reinforcing its commitment to sustainable and inclusive development.

(Disclaimer: The opinions expressed in this article are that of the writer. The facts and opinions expressed here do not reflect the views of ETV Bharat.)

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