INTRODUCTION TO THE INTRODUCTION TO THE UNITED NATIONS UNITED NATIONS

AND UNCTADAND UNCTAD

Manuela Tortora

Chief, Technical Cooperation Service

UNCTAD

THE EVOLUTION OF THE EVOLUTION OF MULTILATERALISMMULTILATERALISM

• 1919-19451919-1945 Collective securityCollective security was the main function of the League of Nations

LimitedLimited economic and social cooperation: role of the ILOeconomic and social cooperation: role of the ILO

• 1944-19451944-1945 Collective security + economic and social Collective security + economic and social cooperationcooperation are the main functions of the UN Bretton Woods,Bretton Woods, UN specialised agenciesUN specialised agencies

• 60’s-70’s60’s-70’s DevelopmentDevelopment becomes a key UN activity

UNDP, UNCTAD, many UN programmes devoted to developmentUNDP, UNCTAD, many UN programmes devoted to development

• 2005-…2005-… Security + development + human rightsSecurity + development + human rights: 3 pillars of the current UN reform3 pillars of the current UN reform

THE EVOLUTION OF MULTILATERALISMTHE EVOLUTION OF MULTILATERALISM

S

CO

PE

OF

MU

LT

ILA

TE

RA

LIS

M

Econ./Social Issues (ILO)

1919-1945

League of

Nations

Collective security

(SecurityCouncil)

Human rights

Social/Humanitarian

Entities

1944-1947Charter/spec.agen.

BWIs+GATT

Collective security

(SecurityCouncil)

COLLECTIVE COLLECTIVE SECURITYSECURITY

andand

Peace Peace buildingbuilding

Human rights

IMF/World BankGATT

IMF/World BankGATT

Social/Humanitarian/

DEVELOPMENTentities

(UNCTAD,UNDP)

1960-70East-West

North-Southtensions

HUMANHUMANRIGHTSRIGHTS

DEVELOPMENTDEVELOPMENT(environment, (environment,

social,social,humanitarian,humanitarian,

economic)economic)

IMF/World Bank?IMF/World Bank?WTO?WTO?

11

2

3

2005-…UN Reform(3 pillars?)

Collective security

The Three UNs: 1The Three UNs: 1stst UN(*) UN(*)

Governments Governments Source: UN Photo Archives

(*) R.Jolly, L.Emmerij, T.Weiss,

UN Ideas that Changed the World.

2009

The Three UNs: 2The Three UNs: 2ndnd UN(*) UN(*)

Staff membersStaff members

Source: UN Photo Archives

The Three UNs: 3The Three UNs: 3rdrd UN(*) UN(*)

Experts, members of commissions, and NGOs closely Experts, members of commissions, and NGOs closely associated with the UNassociated with the UN

Source: UN Photo Archives

Interaction Among Three UNs(*)Interaction Among Three UNs(*)

A: International and national civil servants’ interactionsB: State-civil society interactions C: Secretariat-civil society interactionsD: The networked space within which individuals and private organizations interact with the 1st UN and the 2nd UN to influence or advance UN thinking, policies, priorities, or actions

3rd UN2nd UN

A B

C

D

1st UN

• Ideas generated by the multilateral institution do not evolve in a linear way but rather as a spiralspiral:

• Two steps forward, one step backwards…

4 Ways Ideas Matter to Global 4 Ways Ideas Matter to Global Values and Norms(*)Values and Norms(*)

• Ideas changing the way issues are perceived

• Ideas redefining state and non-state interests and goals: Setting agendas for action

• Ideas mobilizing coalitions to press for action

• Ideas becoming embedded in institutions

A Balance Sheet of the UN’s A Balance Sheet of the UN’s Contributions: The Positives(*)Contributions: The Positives(*)

1.1. Promoting human rights for allPromoting human rights for all2.2. Providing an international framework for national Providing an international framework for national

development policiesdevelopment policies3.3. Setting global goals Setting global goals 4.4. Quantifying the worldQuantifying the world5.5. Changing the debate about trade and developmentChanging the debate about trade and development6.6. Proposing development policies that combine economic Proposing development policies that combine economic

growth with poverty reductiongrowth with poverty reduction7.7. Bringing issues of environment and development to global Bringing issues of environment and development to global

attention, especially global warmingattention, especially global warming8.8. Promoting preventive diplomacy & human securityPromoting preventive diplomacy & human security9.9. Promoting the human development approachPromoting the human development approach

Negatives on the Balance Sheet(*)Negatives on the Balance Sheet(*)1.1. Late reaction to the Washington ConsensusLate reaction to the Washington Consensus

2.2. Weak response to the special needs of the least Weak response to the special needs of the least developed countriesdeveloped countries

3.3. Too little done to introduce cultural aspects into the Too little done to introduce cultural aspects into the development equationdevelopment equation

4.4. Tardy and weak reaction to HIV/AIDSTardy and weak reaction to HIV/AIDS

5.5. Inadequate attention inequalities of income and Inadequate attention inequalities of income and wealth, nationally & internationallywealth, nationally & internationally

A Summary of the UN’s A Summary of the UN’s Contributions(*)Contributions(*)

• The balance sheet shows a small surplus• The UN has led the way with many fundamental

ideas, more than is often realized• The UN has often been ahead of the World Bank and

the IMF – though these have received most donor support and most finance

Ideas may be among the UN’s most important contributions

Dag HammarskjöldDag Hammarskjöld

““The UN wasn’t set up to bring mankind The UN wasn’t set up to bring mankind to heaven but to save it from hell”to heaven but to save it from hell”

let’s focus on UNCTAD…let’s focus on UNCTAD…

WITHIN THIS CONTEXT….WITHIN THIS CONTEXT….

UN Economic Ideas Have Often Differed from the UN Economic Ideas Have Often Differed from the World Bank’s and the IMF’s(*)World Bank’s and the IMF’s(*)

• Fairer international economic relationsFairer international economic relations

• National development strategiesNational development strategies

• Development goalsDevelopment goals

• Social developmentSocial development

Two multilateral organisations Two multilateral organisations dealing with trade:dealing with trade:

UNCTAD and WTO More differences than similarities:More differences than similarities:

The originsoriginsThe mandatesmandates The institutional functioningfunctioningThe thinkingthinking on trade and development The strengthsstrengths and weaknessesweaknesses

THE ORIGINSTHE ORIGINS

From GATT to WTOFrom GATT to WTO

• Keynes’ ideas on post-war international economic governance

• The Bretton Woods agreements (1944)

• 19471947: the ITO, the Havana Charter and the GATT

• GATT Rounds of trade negotiations until the Uruguay Round (1986-94)

• 1995: WTO is established outside the UN system

From GATT to WTOFrom GATT to WTO

• Keynes’ ideas on post-war international economic governance

• The Bretton Woods agreements (1944)

• 19471947: the ITO, the Havana Charter and the GATT

• GATT Rounds of trade negotiations until the Uruguay Round (1986-94)

• 1995: WTO is established outside the UN system

UNCTAD: 1964UNCTAD: 1964

The context of North-South and East-West tensions

Non-Aligned Movement and Group of 77

The link between trade and development (Prebisch thinking)

1st UNCTAD Ministerial Conference in Geneva;Permanent secretariat established

UNCTAD: 1964UNCTAD: 1964

The context of North-South and East-West tensions

Non-Aligned Movement and Group of 77

The link between trade and development (Prebisch thinking)

1st UNCTAD Ministerial Conference in Geneva;Permanent secretariat established

THE MANDATETHE MANDATE

UNCTAD: UNCTAD: Integrated treatment of trade, Integrated treatment of trade,

investment and related investment and related issuesissues==

wide mandatewide mandate

• Research on trade and development issues

• Consensus-building through intergovernmental machinery

• Technical cooperation on all the topics of UNCTAD work

UNCTAD: UNCTAD: Integrated treatment of trade, Integrated treatment of trade,

investment and related investment and related issuesissues==

wide mandatewide mandate

• Research on trade and development issues

• Consensus-building through intergovernmental machinery

• Technical cooperation on all the topics of UNCTAD work

WTOWTO

•Rules-based organisation, negotiates binding multilateral trade law (“legislative” role)

•Dispute settlement mechanism with mandatory decisions, can apply sanctions (“judicial” role)

•Mandate confined to the existing trade agreements and to the scope of the negotiations

STRENGHTS AND WEAKNESSESSTRENGHTS AND WEAKNESSES

WTOWTO

• Binding trade law

• Powerful “judicial” mechanism

BUT

• Increasing complexities of multilateral negotiations

• Increasing regional and bilateral trade agreements

WTOWTO

• Binding trade law

• Powerful “judicial” mechanism

BUT

• Increasing complexities of multilateral negotiations

• Increasing regional and bilateral trade agreements

UNCTADUNCTAD

• Trust and credibility among developing countries

• Independent research

BUT

• Only a political role (no “teeth”)

• Limited human and financial resources

UNCTADUNCTAD

• Trust and credibility among developing countries

• Independent research

BUT

• Only a political role (no “teeth”)

• Limited human and financial resources

UNCTAD ideasUNCTAD ideas • Influenced by development theories of center/periphery

• Deterioration of the terms of trade

• Unfair and asymmetric international economic relations• Need for international policies and rules to address these

asymmetries: Special and differential treatment (trade preferences, exceptions, longer periods of adjustment…)

• Non-tariff barriers

• External debt : sustainability, reduction formulas

• Trade in services

• Positive agenda in trade negotiations

• Policy space

• No one size fits all

UNCTAD thinking is :UNCTAD thinking is :

• “Outside the mainstream economics” of the Bretton Woods Institutions

• Close to the concerns of developing countries’ policy makers

• Part of the UN multidisciplinary, broad approach to development