What is the United Nations Conference on Trade and Development (UNCTAD)?

The United Nations Conference on Trade and Development (UNCTAD) is a permanent intergovernmental body that is responsible for the integration of developing countries into the world economy through development-friendly measures. 

UNCTAD was established in 1964 by the United Nations General Assembly and is a constituent of the UN Secretariat. UNCTADs headquarters are located in Geneva, Switzerland and employs around 500 staff members. Besides, the organization also has offices in New York and Addis Ababa.

What does the United Nations Conference on Trade and Development Do? 

The primary goal of UNCTAD is to maximize the trade, investment and development opportunities of developing economies and support their efforts to integrate into the world economy on a fair footing. The organization seeks to achieve this goal by providing analysis, facilitating consensus-building, and offering technical assistance to developing economies in order to set them off on the path of inclusive and sustainable development. UNCTAD delivers in four major areas:

Transforming economies, while enhancing competitiveness. 

UNCTAD regularly reviews policies pertaining to investment, services, trade, and science, technology and innovation. The organization also assists developing economies in trade negotiations. UNCTAD leverages e-commerce and the digital economy in order to achieve sustainable growth. It also offers guidance pertaining to investments and strengthens local businesses by promoting and facilitating investments.

Managing vulnerabilities and building resilience. 

UNCTAD assists nations in graduating from Least Developed Country Status. The Debt Management and Financial Analysis System (DMFAS) Programme helps developing economies improve their capabilities for effective debt management. UNCTAD provides valuable guidance and assistance to developing countries to lessen their dependence on exports of raw commodities. UNCTAD also provides Market Access, Rules of Origin and Geographical Indications for the Least Developed Countries.

Nurturing economic efficiency and enhancing governance. 

UNCTAD has laid down certain policies and frameworks pertaining to competition and consumer protection. It facilitates the sharing of best practices within developing economies through initiatives such as voluntary peer reviews of competition and consumer protection laws and policies. UNCTAD also facilitates business and trade in developing countries.

Empowering people and assisting them in creating a better future. 

UNCTAD facilitates the mainstreaming of gender as a path to inclusive development.The organization assists small and medium enterprises (SMEs) in growing sustainably through the UNCTAD Entrepreneurial Development Program (Empretec). UNCTAD also partakes in various initiatives to strengthen knowledge and skills for sustainable and inclusive economic development.

Benefits of UNCTAD

Being a part of UNCTAD can help a country to:

• Work out a recourse to tackle macro-level development challenges.
• Integrate itself favorably into the international trading system.
• Become a diversified economy in order to lessen dependence on commodities.
• Regulate its exposure to financial volatility and debt.
• Acquire a more development friendly outlook, thus attracting investment.
• Adopt digital technologies.
• Encourage entrepreneurship and innovation.
• Assist local businesses in moving up value chains.
• Accelerate the flow of goods across borders.
• Safeguard the interests of consumers.
• Restrict regulations that obstruct healthy competition.
• Accommodate climate change and utilize natural resources more efficiently.

UNCTAD has 195 member nations. Like other UN bodies, UNCTAD measures development by using Sustainable Development Goals, as set out in Agenda 2030. UNCTAD has been collaborating with other major international institutions such as the World Bank, the International Monetary Fund (IMF), the World Trade Organization (WTO), and the United Nations Development Programme (UNDP) for the implementation of the ECOSOC Forum on Financing for Development follow-up (FfD Forum).Although UNCTAD primarily collaborates with governments, it also endeavors to forge partnerships with the private sector as well as civil society.

Source of Funds

The European Commission is the biggest contributor to funds to UNCTAD, followed by various United Nations system organizations. Besides, UNCTAD also sources funds from several other international organizations as well as donors from both the public and private sectors.