The world wide business conflicts

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There is no denying the fact that the United Nations Conference on Trade and Development was acknowledged in 1964 as an unwavering member of the General Assembly to buttress global trade, in particular the export trade of just beginning countries to pick up the pace of the economic development programme of those countries. Those countries actually craving to deal with development issues in a specially created body. It is their conviction that their development problems could not be attempted successfully through active worldwide economic institute due to fact that those countries influencing interrelated business activities were dominated by urbanized countries. Its objectives were to help to attain agreement on the stabilisation of commodity prices, investment, trade preferences and compensatory financing programmes. UNCTAD has long been served as a mouthpiece of the world’s poor and has been a central forum for the North- South dialogue. Although in its long existence it has taken up many issues for encouraging the interest of developing countries, but for some reasons it has changed its role considerably. UNCTAD is doing its business facing the reality of present international economic structure. It is very much necessary for the developing countries to fortify and make it resourceful. UNCTAD conferences from 1964 to 1996 make public that the Third World has transformed their situation significantly. In their first conference in 1964 the developing countries banded together to form the Group of 77 as a coalition of the world’s poor to press for concession from the rich. In UNCTAD 6, 1983 the recognition of the importance of the role of the World Bank and the International Monetary Fund (IMF) as multilateral development institution was made. In UNCTAD 8 in 1992 there was a broad consensus on importance of market oriented economic policies and political pluralism as basis for development. Most important decision was the reform and revitalisation of UNCTAD to ensure its continuing relevance on trade and development issues. The issues addressed in the UNCTAD forum have changed over time in response to changing international circumstances. Some of the causes will be described below.

 One state one vote ethics of General Assembly gives the Third World nations advantages in the UN forums. Those who are the highest contributors to the UN command only fifteen votes. For that reason the North prefers small forums, usually outside the General Assembly. Indeed, in view of the charter of UN follows the one state one vote principle not weighted voting system like the IMF and the World Bank, so the North states reluctant to the activities of the UN General Assembly which has some influence on UNCTAD.

2) The major powers of the North made it clear that they were only prepared to deal with key economic problems of the South through the Bretton Woods’s institutions and WTO, which were fully under their control. In our country we have optimistic view in the sense that progressively more, thus, the developing countries, especially those with heavy balance burdens, were both nudged and drawn into embrace of these multilateral financial institutions. This is an important reason for which UNCTAD has changed. The Third World nation’s different level of development, different degrees of economic and political affiliation with the North, different colonial familiarity and different discernment of national interests have created diversified attitude towards North. That may also be a reason for change in UNCTAD.

4) The closing stages of cold war, the earth-shattering alteration in East West relations and the end of bloc politics modified the North- South relation, which has impact on UNCTAD activities.

5) In 1980’s the economic growth rate deteriorated in many Third world countries. The prices of the commodities exported by Third World nations fell sharply compared with the prices they had to pay for their imports. The debt burden of many Third World countries reduced their bargaining power. The erosion of their bargaining leverage added to the softening of its militancy and increased reluctance to fight against North. The changing economic climate of the 1980’s affected different countries in different way which created diversity within the Third World countries and affected the role of UNCTAD.

6) UNCTAD was subjected to increasing financial pressure, which affected programmes, performance, staffing morale and independence of the body.

7) The creation of the World Trade Organisation (WTO) has important impact on the change in UNCTAD’s role.

            Although UNCTAD’s attitude towards Bretton Woods institutions and WTO has changed, but despite economic and political transformations in the world in the last thirty years, the essence of UNCTAD’s development mission has not changed. Although in recent years little has been achieved through UNCTAD in the area of consultation and negotiation on general economic issues, but negotiations in UNCTAD sometimes provide a starting point for concrete decisions elsewhere, and the organisation continues to play an important role as a forum for the discussion of development issues and a centre for the study of the problems facing developing Countries.  The themes addressed by it over the years have include: a) The issue of expanding and diversifying the exports of goods and services of developing countries, which are the main sources of external finance for their development; b) The issue of expanding the export capacity of developing countries by mobilising domestic and external resources, including development assistance and foreign investment; c) Issue of strengthening technical capabilities and promoting appropriate national policies; d) Issue of alleviating the impact of debt on the economies of developing countries and reducing their debt burden’s) Issue of supporting expansion of trade and economic co-operation among developing countries as a beneficial complement to their traditional economic linkages with developed countries and f) issue of special measures in support of the world’s poorest and most vulnerable countries. It may be mentioned here that UNCTAD has become at once a negotiating instrument, a deliberative forum, a generator of new ideas and concepts and a provider of technical assistance. As a result of this multifaceted mandate, UNCTAD was entrusted with a wide spectrum of activities cutting across several dimensions of development.