Strengthening UNCTAD-Enhancing its Development Role, Impact and institutional Effectiveness PRE-UNCTAD-XII CIVIL SOCIETY FORUM organized by CUTS, Nairobi 12,13 March, 2008 By Ahmed Farouk Ghoneim Cairo University address:

What are the major challenges UNCTAD is facing on delivering its developmental role and impact? UNCTAD is heavily constrained by the political capture of the major economic and political powers, namely the United States and the European Union. UNCTAD is heavily constrained by the political capture of the major economic and political powers, namely the United States and the European Union. UNCTAD suffers from lack of financial resources which negatively affects it in performing its role, and render it more vulnerable to political captures of the major powers. UNCTAD suffers from lack of financial resources which negatively affects it in performing its role, and render it more vulnerable to political captures of the major powers. UNCTAD suffers from weak promotion of its ideas. Examples include the Trade Development Report 2006 which challenged the orthodox views of the World Bank and IMF on exchange rate regimes and financial systems, however it had little impact on developing countries. UNCTAD suffers from weak promotion of its ideas. Examples include the Trade Development Report 2006 which challenged the orthodox views of the World Bank and IMF on exchange rate regimes and financial systems, however it had little impact on developing countries. UNCTAD depends mainly on spreading its intellectual ideas and contributions, however its means of achieving such mission remain inadequate in terms of outreach. UNCTAD depends mainly on spreading its intellectual ideas and contributions, however its means of achieving such mission remain inadequate in terms of outreach.

What are the major challenges UNCTAD is facing on delivering its developmental role and impact? Till now UNCTAD in the eyes of public is the organization of trade, development, and investment (thanks to the Flagship publication of the World Investment Report), but there are other areas where UNCTAD is the focal point of the UN for as integrated treatment of finance, currency, investment, trade and technology from a developmental perspective. UNCATD’s role in dealing with such areas is not vivid, besides of course the interaction among them. Till now UNCTAD in the eyes of public is the organization of trade, development, and investment (thanks to the Flagship publication of the World Investment Report), but there are other areas where UNCTAD is the focal point of the UN for as integrated treatment of finance, currency, investment, trade and technology from a developmental perspective. UNCATD’s role in dealing with such areas is not vivid, besides of course the interaction among them. UNCTAD remains in the eyes of many a forum. It lacks means of power, hence the institutional setup and legal charter classify it as an international organization versus the supranational organizations (World Bank, IMF, WTO). Along this setup, ideas should be based to help UNCTAD have a more effective role. UNCTAD remains in the eyes of many a forum. It lacks means of power, hence the institutional setup and legal charter classify it as an international organization versus the supranational organizations (World Bank, IMF, WTO). Along this setup, ideas should be based to help UNCTAD have a more effective role. The widespread of issues related to development that UNCTAD deals with ranging from competition policy, to investment, to maritime and the increasing complexity of such issues diluted the focus of UNCTAD. The widespread of issues related to development that UNCTAD deals with ranging from competition policy, to investment, to maritime and the increasing complexity of such issues diluted the focus of UNCTAD.

What strategies UNCTAD could follow in order to fulfill its developmental mission and mandates as contained in the Bangkok Plan of Action and the Sao Paulo Consensus A strategy should be developed to enhance the role of UNCTAD by energizing its developing members to put pressure on the major powers. A strategy should be developed to enhance the role of UNCTAD by energizing its developing members to put pressure on the major powers. Joint collaboration with UN organizations of relatively similar interests as UNDP, and WHO. Joint collaboration with UN organizations of relatively similar interests as UNDP, and WHO. Having extra presence in developing countries through missions and sending of experts (which are relatively few compared to Breton Woods Institutions). Having extra presence in developing countries through missions and sending of experts (which are relatively few compared to Breton Woods Institutions).

What strategies UNCTAD could follow in order to fulfill its developmental mission and mandates as contained in the Bangkok Plan of Action and the Sao Paulo Consensus More tailored solutions to country specific problems. More tailored solutions to country specific problems. Development is a wide theme, and it is extremely difficult if not impossible to have a one solution to all ills of developing countries. Development is a wide theme, and it is extremely difficult if not impossible to have a one solution to all ills of developing countries. That what makes the World Bank and IMF more hearable, which is the fact they are besides general reports have country specific missions and reports. This is not the case of UNCTAD with the exception of the Investment Review Report carried out for some countries, but suffers from being dated (e.g. there has been one for Egypt in 1999, and it was mentioned that a new one has been undertaken, however not yet available).

Which are the major emerging trade and developments issues concerning African countries where UNCTAD needs to intervene and play an active role? Finding ways to increase the “policy space”, so that it can be implantable and not only rhetoric. Finding ways to increase the “policy space”, so that it can be implantable and not only rhetoric. Utilizing trade as an engine for growth and bringing explicitly the lack of responding to promises brought by developed countries as elimination of cotton subsidies. Just even highlighting the issues will help African countries as a way of embarrassing super powers. Utilizing trade as an engine for growth and bringing explicitly the lack of responding to promises brought by developed countries as elimination of cotton subsidies. Just even highlighting the issues will help African countries as a way of embarrassing super powers. Doing extra work on regionalism so that African countries do not pursue the same mistakes and enter in preempted agreements. Doing extra work on regionalism so that African countries do not pursue the same mistakes and enter in preempted agreements. Promoting South-South cooperation and setting pragmatic steps to achieve this aim. Promoting South-South cooperation and setting pragmatic steps to achieve this aim.

Which are the major emerging trade and developments issues concerning African countries where UNCTAD needs to intervene and play an active role? Finding implementation mechanisms for new slogans as Aid for Trade. Finding implementation mechanisms for new slogans as Aid for Trade. Building on the position of UNCTAD which is not anti globalization but for a rather rationed globalization and finding pragmatic solution that are country specific to deal with globalization and make benefit of it. Building on the position of UNCTAD which is not anti globalization but for a rather rationed globalization and finding pragmatic solution that are country specific to deal with globalization and make benefit of it. Doing some extra empirical and policy oriented work on areas related to capital account liberalization and exchange rate regimes. Doing some extra empirical and policy oriented work on areas related to capital account liberalization and exchange rate regimes. Dealing with “behind the border” issues that affect the functioning of market economy by finding pragmatic solutions to developing countries. Dealing with “behind the border” issues that affect the functioning of market economy by finding pragmatic solutions to developing countries.

How UNCTAD could better complement by partnering with other UN organizations for better results and to avoid duplication? For UN organizations that have in their mandate one of the areas that UNCTAD focuses on (mainly trade and development), UNCTAD should focus complement them. For example, with UNDP it should focus on trade and investment whereas with WTO it should focus on developmental effects of trade. In other words, it should utilize its comparative advantage. For UN organizations that have in their mandate one of the areas that UNCTAD focuses on (mainly trade and development), UNCTAD should focus complement them. For example, with UNDP it should focus on trade and investment whereas with WTO it should focus on developmental effects of trade. In other words, it should utilize its comparative advantage. There is a leaning towards revisiting the orthodox main stream policies as has been evident by the skeptic views of some World Bank ex officials, divide between IMF and World Bank regarding some policies, and self criticism of World Bank (report of what we have learned from a decade of reform). UNCTAD should build on such issues to reactivate its role and emphasize its solid position. There is a leaning towards revisiting the orthodox main stream policies as has been evident by the skeptic views of some World Bank ex officials, divide between IMF and World Bank regarding some policies, and self criticism of World Bank (report of what we have learned from a decade of reform). UNCTAD should build on such issues to reactivate its role and emphasize its solid position.

How could UNCTAD increase the involvement of Civil Society and private sector in its work, particularly from developing countries? The outreach of UNTAD to civil society organizations is very modest. It remains, so far in good connection with the government, however it does not have the ability to get in contact with civil society except through governments. This constraint should be released in a way. The outreach of UNTAD to civil society organizations is very modest. It remains, so far in good connection with the government, however it does not have the ability to get in contact with civil society except through governments. This constraint should be released in a way. The Virtual Institute is an example of overcoming this constraint; however it remains short of responding to a wider agenda that can be pursued. Creating regional offices following UNDP practice in this regard might be a better option Creating regional offices following UNDP practice in this regard might be a better option

Thank You