INTRODUCTION TO THE UNITED NATIONS AND UNCTAD Manuela Tortora Chief, Technical Cooperation Service UNCTAD

THE EVOLUTION OF MULTILATERALISM 1919-1945 Collective security was the main function of the League of Nations Limited economic and social cooperation: role of the ILO 1944-1945 Collective security + economic and social cooperation are the main functions of the UN Bretton Woods, UN specialised agencies 60’s-70’s Development becomes a key UN activity UNDP, UNCTAD, many UN programmes devoted to development 2005-… Security + development + human rights: 3 pillars of the current UN reform

THE EVOLUTION OF MULTILATERALISM DEVELOPMENT (environment, social, humanitarian, economic) IMF/World Bank? WTO? SCOPE OF MULTILATERALISM IMF/World Bank GATT 3 Social/ Humanitarian/ DEVELOPMENT entities (UNCTAD,UNDP) IMF/World Bank GATT HUMAN RIGHTS Social/ Humanitarian Entities 2 Human rights Human rights Collective security (Security Council) Collective security (Security Council) COLLECTIVE SECURITY and Peace building Econ./Social Issues (ILO) 1 1 Collective security 1960-70 East-West North-South tensions 1944-1947 Charter/spec.agen. BWIs+GATT 1919-1945 League of Nations 2005-… UN Reform (3 pillars?)

The Three UNs: 1st UN(*) Governments (*) R.Jolly, L.Emmerij, T.Weiss, Source: UN Photo Archives Governments (*) R.Jolly, L.Emmerij, T.Weiss, UN Ideas that Changed the World. 2009

The Three UNs: 2nd UN(*) Source: UN Photo Archives Staff members

The Three UNs: 3rd UN(*) Source: UN Photo Archives Experts, members of commissions, and NGOs closely associated with the UN

Interaction Among Three UNs(*) A: International and national civil servants’ interactions B: State-civil society interactions C: Secretariat-civil society interactions D: 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

Ideas generated by the multilateral institution do not evolve in a linear way but rather as a spiral: Two steps forward, one step backwards…

4 Ways Ideas Matter to Global 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 Contributions: The Positives(*) Promoting human rights for all Providing an international framework for national development policies Setting global goals Quantifying the world Changing the debate about trade and development Proposing development policies that combine economic growth with poverty reduction Bringing issues of environment and development to global attention, especially global warming Promoting preventive diplomacy & human security Promoting the human development approach

Negatives on the Balance Sheet(*) Late reaction to the Washington Consensus Weak response to the special needs of the least developed countries Too little done to introduce cultural aspects into the development equation Tardy and weak reaction to HIV/AIDS Inadequate attention inequalities of income and wealth, nationally & internationally

A Summary of the UN’s 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 Hammarskjöld “The UN wasn’t set up to bring mankind to heaven but to save it from hell”

WITHIN THIS CONTEXT…. let’s focus on UNCTAD…

UN Economic Ideas Have Often Differed from the World Bank’s and the IMF’s(*) Fairer international economic relations National development strategies Development goals Social development

Two multilateral organisations dealing with trade: UNCTAD and WTO More differences than similarities: The origins The mandates The institutional functioning The thinking on trade and development The strengths and weaknesses

THE ORIGINS From GATT to WTO UNCTAD: 1964 Keynes’ ideas on post-war international economic governance The Bretton Woods agreements (1944) 1947: 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: 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

Integrated treatment of trade, investment and related issues= THE MANDATE WTO 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 UNCTAD: Integrated treatment of trade, investment and related issues= wide mandate Research on trade and development issues Consensus-building through intergovernmental machinery Technical cooperation on all the topics of UNCTAD work

STRENGHTS AND WEAKNESSES WTO Binding trade law Powerful “judicial” mechanism BUT Increasing complexities of multilateral negotiations Increasing regional and bilateral trade agreements UNCTAD Trust and credibility among developing countries Independent research BUT Only a political role (no “teeth”) Limited human and financial resources

UNCTAD 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 : “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