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CHAPTER 1 INTRODUCTION

The United Nations Conference on Trade and Development (UNCTAD) was established in 1964 as a permanent intergovernmental body. It is the principal organ of the United Nations General Assembly dealing with trade, investment, and development issues. The organization's goals are to "maximize the trade, investment and development opportunities of developing countries and assist them in their efforts to integrate into the world economy on an equitable basis." The creation of the conference was based on concerns of developing countries over the international market, multi-national corporations, and great disparity between developed nations and developing nations. In the 1970s and 1980s, UNCTAD was closely associated with the idea of a New International Economic Order (NIEO). The United Nations Conference on Trade and Development was established in 1964 to provide a forum where the developing countries could discuss the problems relating to their economic development. UNCTAD grew from the view that existing institutions like GATT (now replaced by the World Trade Organization, WTO), the International Monetary Fund (IMF), and World Bank were not properly organized to handle the particular problems of developing countries. The primary objective of the UNCTAD is to formulate policies relating to all aspects of development including trade, aid, transport, finance and technology. The conference ordinarily meets once in four years. The first conference took place in Geneva in 1964, second in New Delhi in 1968, the third in Santiago in 1972, fourth in Nairobi in 1976, the fifth in Manila in 1979, the sixth in Belgrade in 1983, the seventh in Geneva in 1987, the eighth in Cartagena in 1992 and the ninth at Johannesburg (South Africa) in 1996. The permanent secretariat is in Geneva. One of the principal achievements of UNCTAD has been to conceive and implement the Generalized System of Preferences (GSP). It was argued in UNCTAD that to promote exports of manufactured goods from developing countries, it would be necessary to offer special tariff concessions to such exports. Accepting this argument,

the developed countries formulated the GSP scheme under which manufacturers' exports and some agricultural goods from the developing countries enter duty-free or at reduced rates in the developed countries. Since imports of such items from other developed countries are subject to the normal rates of duties, imports of the same items from developing countries would enjoy a competitive advantage. Currently, UNCTAD has 194 member states and is headquartered in Geneva, Switzerland. UNCTAD has 400 staff members and a bi-annual (20102011) regular budget of $138 million in core expenditures and $72 million in extra-budgetary technical assistance funds. It is a member of the United Nations Development Group. There are non-governmental organizations participating in the activities of UNCTAD FOUNDATION AND HISTORY In the early 1960s, growing concerns about the place of developing countries in international trade led many of these countries to call for the convening of a fullfledged conference specifically devoted to tackling these problems and identifying appropriate international actions. The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in 1964. Given the magnitude of the problems at stake and the need to address them, the conference was institutionalized to meet every four years, with intergovernmental bodies meeting between sessions and a permanent secretariat providing the necessary substantive and logistical support. Simultaneously, the developing countries established the Group of 77 to voice their concerns. (Today, the G77 has 131 members.) The prominent Argentinian economist Ral Prebisch, who had headed the United Nations Economic Commission for Latin America and the Caribbean, became the organization's first Secretary-General.

Phase 1: The 1960s and 1970s 1. In its early decades of operation, UNCTAD gained authoritative standing:

As an intergovernmental forum for North-South dialogue and negotiations on issues of interest to developing countries, including debates on the "New International Economic Order".

For its analytical research and policy advice on development issues.

2.

Agreements launched by UNCTAD during this time include: The Generalized System of Preferences (1968), whereby developed economies grant improved market access to exports from developing countries. A number of International Commodities Agreements, which aimed at stabilizing the prices of export products crucial for developing countries. the Convention on a Code of Conduct for Liner Conferences, which strengthened the ability of developing countries to maintain national merchant fleets. The adoption of a Set of Multilaterally Agreed Equitable Principles and Rules for the Control of Restrictive Business Practices. This work later evolved into what is today known as "Trade and Competition Policies".

3.

Furthermore, UNCTAD was a key contributor to: the definition of the target of 0.7% of gross domestic product (GDP) to be given as official development aid by developed countries to the poorest countries, as adopted by the United Nations General Assembly in 1970. the identification of the Group of Least Developed Countries (LDCs) as early as 1971, which drew attention to the particular needs of these poorest countries. UNCTAD became the focal point within the UN system for tackling LDC-related economic development issues.

Phase 2: The 1980s 1. In the 1980s, UNCTAD was faced with a changing economic and political environment: There was a significant transformation in economic thinking. Development strategies became more market-oriented, focusing on trade liberalization and privatization of state enterprises.

A number of developing countries were plunged into severe debt crises. Despite structural adjustment programs by the World Bank and the International Monetary Fund, most developing countries affected were not able to recover quickly. In many cases, they experienced negative growth and high rates of inflation. For this reason, the 1980s become known as the "lost decade", particularly in Latin America.

Economic interdependence in the world increased greatly.

2.

In the light of these developments, UNCTAD multiplied efforts aimed at: strengthening the analytical content of its intergovernmental debate, particularly regarding macroeconomic management and international financial and monetary issues. broadening the scope of its activities to assist developing countries in their efforts to integrate into the world trading system. In this context, the technical assistance provided by UNCTAD to developing countries was particularly important in the Uruguay Round of trade negotiations, which had begun under the General Agreement on Tariffs and Trade (GATT) in 1986. UNCTAD played a key role in supporting the negotiations for the General Agreement on Trade in Services (GATS). UNCTAD's work on trade efficiency (customs facilitation, multimodal transport) made an important contribution to enabling developing economies to reap greater gains from trade. UNCTAD assisted developing countries in the rescheduling of official debt in the Paris Club negotiations. promoting South-South cooperation. In 1989, the Agreement on the Global System of Trade Preferences among Developing Countries (GSTP) came into force. It provided for the granting of tariff as well as non-tariff preferences among its members. To date, the Agreement has been ratified by 44 countries. addressing the concerns of the poorest nations by organizing the first UN Conference on Least Developed Countries in 1981. Since then, two other international conferences have been held at 10-year intervals.

Phase 3: From the 1990s until today 1. Key developments in the international context: The conclusion of the Uruguay Round of trade negotiations under the GATT resulted in the establishment of the World Trade Organizationin 1995, which led to a strengthening of the legal framework governing international trade. A spectacular increase in international financial flows led to increasing financial instability and volatility. Against this background, UNCTAD's analysis gave early warning concerning the risks and the destructive impact of financial crises on development. Consequently, UNCTAD emphasized the need for a more developmentoriented "international financial architecture". Foreign direct investment flows became a major component of globalization. UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its tenth conference, held in Bangkok in February 2000, adopted a political declaration "The Spirit of Bangkok" as a strategy to address the development agenda in a globalizing world.

2.

In recent years, UNCTAD has further focused its analytical research on the linkages between trade, investment, technology and enterprise development. put forward a "positive agenda" for developing countries in international trade negotiations, designed to assist developing countries in better understanding the complexity of the multilateral trade negotiations and in formulating their positions. Expanded work on international investment issues, following the merger into UNCTAD of the New Yorkbased United Nations Centre on Transnational Corporations in 1993. expanded and diversified its technical assistance, which today covers a wide range of areas, including training trade negotiators and addressing traderelated issues; debt management, investment policy reviews and the promotion of entrepreneurship; commodities; competition law and policy; and trade and environment.

OFFICE OF THE SECRETARY GENERAL Mukhisa Kituyi, of Kenya, who became UNCTAD's seventh Secretary-General on 1 September 2013, has an extensive background as an elected official, an academic, and a holder of high government office. He also has wide-ranging experience in trade negotiations, and in African and broader international economics and diplomacy. He was born in Bungoma District, western Kenya, in 1956. He studied political science and international relations at the University of Nairobi and at Makerere University in Kampala, Uganda, receiving a BA in 1982. He went on to earn an M.Phil in 1986 and a doctorate in 1989 from the University of Bergen, Norway. Dr. Kituyi served as a researcher at Norway's Christian Michelsen Institute from 1989 to 1991, and as Programme Director of the African Centre for Technology Studies in Nairobi from 1991 to 1992. He was elected to the Kenyan Parliament in 1992, and was twice re-elected.He was Kenya's Minister of Trade and Industry from 2002 to 2007. During this period, Mr. Kituyi chaired for two years the Council of Ministers of the Common Market for Eastern and Southern Africa (COMESA) and the African Trade Ministers' Council. He also served as chairman of the Council of Ministers of the African, Caribbean and Pacific (ACP) Group of States, and was lead negotiator for Eastern and Southern African ministers during the European Union-ACP Economic Partnership Agreement negotiations. He was convenor of the agriculture negotiations carried out at the World Trade Organization's Sixth Ministerial Conference held in Hong Kong, China in 2005. From 2008 to 2012, Mr. Kituyi was a member of a team of experts advising the presidents of the nations of the East African Community on how to establish more effective regional economic links.

From 2011 to 2012, he was a consultant for the African Union Commission, where he helped to develop the structure for a pan-African free trade area. Immediately prior to becoming Secretary-General, Mr. Kituyi was Chief Executive of the Kenya Institute of Governance, based in Nairobi. The Institute is a think tank and advocacy organization that focuses on linking academic research and the development of public policy. During 2012, Mr. Kituyi also served as a non-resident fellow of the Africa Growth Initiative of the Brookings Institution, Washington, D.C. He was a resident scholar there in 2011. Mr. Kituyi is married and has four children.

DEPUTY SECRETARY GENERAL Petko Draganov assumed his functions as Deputy Secretary- General of UNCTAD on 1 May 2009, following his appointment by the United Nations Secretary-General. Born on 25 January 1958 in Cairo, Egypt, Mr. Draganov attended the English Language School in Sofia. He received his MA in International Law at the Moscow State Institute for International Relations. Mr. Draganov began his diplomatic career in the Information Department of the Bulgarian Ministry of Foreign Affairs. From 1985 to 1998 he worked largely on African affairs, serving in the Bulgarian embassies in Ghana and Zimbabwe and in the African Department of the Foreign Ministry. From 1993 to 1998 he was Ambassador to South Africa, Namibia and Botswana. In 1998, Mr. Draganov was appointed Permanent Representative of Bulgaria to the United Nations and Other International Organizations in Geneva. He served as President of the Conference on Disarmament from August to December 2000.

From 2001 to 2005, Mr. Draganov held the position of First Deputy Minister of Foreign Affairs of Bulgaria. He was in charge of multilateral diplomacy development, disarmament and European integration issues. He also served as Chairman of the National Commission on UNESCO, Alternate Representative of the Republic of Bulgaria to the United Nations Security Council, and Special Representative of the Chairman-in-Office of the Organization for Security and Cooperation in Europe (OSCE) to the Republic of Moldova. Mr. Draganov served a second term as Bulgarias Permanent Representative in Geneva from 2005 to 2008. In 2008, he was President of UNCTADs Trade and Development Board. In that capacity, he contributed to the successful outcome of the Accra Conference, as Chair of the UNCTAD XII Preparatory Committee and the Committee of the Whole. As Deputy Secretary-General, he has helped spearhead UNCTADs communications strategy and publications policy, streamline management, and enhance interagency collaboration and technical cooperation activities. He speaks English, French and Russian, and reads Spanish and Italian. He is married and has a daughter and a son.

FORMER SECRETARIES GENERAL AND OFFICERS IN CHARGE Secretaries-General Mr. Supachai Panitchpakdi (Thailand) 2005 - 2013 Mr. Kenneth K.S. Dadzie (Ghana) 1986 - 1994 Mr. Manuel Prez-Guerrero (Venezuela) 1969 - 1974 Mr. Rubens Ricupero (Brazil) 1995 - 2004 Mr. Gamani Corea (Sri Lanka) 1974 - 1984 Dr. Ral Prebisch (Argentina) 1963 - 1969 Deputy Secretaries-General Mr. Dirk J. Bruinsma (The Netherlands) 2006 - 2007 Officers-in-Charge Mr. Carlos Fortin (Chile) 1994 - 1995 and 2004- 2005 Mr. Alister McIntyre (Grenada) 1985

Membership Of UNCTAD And Of The Trade And Development Board All of the following are members of UNCTAD. The members of the Trade and Development Board are marked with an "*".
Afghanistan* Albania* Algeria* Andorra Angola* Antigua and Barbuda Argentina* Armenia* Australia* Austria* Azerbaijan* Bahamas Bahrain* Bangladesh* Barbados* Belarus* Belgium*
Belize

Cameroon* Canada* Cape Verde Central African Republic* Chad* Chile* China* Colombia* Comoros Congo* Costa Rica* Cte dIvoire* Croatia* Cuba* Cyprus* Czech Republic* Democratic Peoples Republic of Korea*
Democratic Republic of the Congo*

Fiji Finland* France* Gabon* Gambia Georgia* Germany* Ghana* Greece* Grenada* Guatemala* Guinea* Guinea-Bissau Guyana* Haiti* Holy See Honduras*
Hungary*

Kazakhstan* Kenya* Kiribati Kuwait* Kyrgyzstan* Lao Peoples Democratic Republic Latvia* Lebanon* Liberia* Libya* Liechtenstein* Lithuania* Luxembourg* Madagascar* Malawi Malaysia* Maldives
Micronesia (Federated States of)

Benin* Bhutan* Bolivia (Plurinational State of)* Bosnia and Herzegovina Botswana* Brazil* Brunei Darussalam Bulgaria* Burkina Faso* Burundi* Cambodia*

Denmark* Djibouti* Dominica* Dominican Republic* Ecuador* Egypt* El Salvador* Equatorial Guinea* Eritrea Estonia* Ethiopia*

Iceland* India* Indonesia* Iran (Islamic Republic of)* Iraq* Ireland* Israel* Italy* Jamaica* Japan* Jordan*

Malta * Marshall Islands Mauritania* Mauritius* Mexico* Mali* Monaco Mongolia* Montenegro* Morocco* Mozambique*

Myanmar* Namibia* Nauru Nepal* Netherlands* New Zealand* Nicaragua * Niger Nigeria* Norway* Oman* Pakistan* Palau Panama* Papua New Guinea* Paraguay* Peru* Philippines* Poland* Portugal* Qatar* Republic of Korea* Republic of Moldova* Romania * Russian Federation* Rwanda* Saint Kitts and Nevis Saint Lucia
Saint Vincent and the Grenadines

Sao Tome and Principe* Saudi Arabia* Senegal* Serbia* Seychelles Sierra Leone * Singapore* Slovakia* Slovenia* Solomon Islands Somalia* South Africa* South Sudan Spain* Sri Lanka* Sudan * Suriname* Swaziland Sweden * Switzerland* Syrian Arab Republic* Tajikistan Thailand*
The Former Yugoslav Republic of Macedonia*

Tuvalu Uganda* Ukraine* United Arab Emirates* United Kingdom of Great Britain and Northern Ireland* United Republic of Tanzania* United States of America* Uruguay * Uzbekistan Vanuatu Venezuela (Bolivarian Republic of)* Viet Nam * Yemen* Zambia* Zimbabwe*

Timor-Leste Togo* Tonga


Trinidad and Tobago*

Tunisia* Turkey * Turkmenistan

Samoa San Marino

CHAPTER 2 AREAS OF WORK I


ABOUT THE PANEL The Panel of Eminent Persons was established by Dr. Supachai in 2005 when he became the Secretary-General of UNCTAD. The Panel members advised, in their personal capacities, the Secretary-General on how to enhance UNCTAD's development role and impact.

Specifically, the Panel focused on: Proposing options to improve the three pillars of UNCTADs work (i.e. research and policy analysis, consensus-building, and technical assistance) and their interface, with a view to making the organization more dynamic, effective and efficient in implementing its vision and mission. Exploring ways and means for UNCTAD to strengthen cooperation and create synergies with other international organizations and to enhance the interactions with other development partners, including the private sector and civil society. The Panel submitted its first report in June 2006. The Report looked at what strategies UNCTAD could follow in order to fulfill its development mission and enhance its effectiveness and impact. The report of the Panel was shared with UNCTAD member States and disseminated to the UN delegates in New York. The UNCTAD member States welcomed the report and after intensive deliberations endorsed most of the recommendations therein. A number of the recommendations were reflected in the final outcomes of the UNCTAD XII ministerial conference in Accra, Ghana in 2008, and were subsequently implemented.

In the wake of the global economic and financial crisis, a number of processes are underway with the aim of reforming the global economic and financial systems. The challenge for these interwoven processes is to ensure overall policy coherence and integrated approaches to development, as well as fairness and equity for all

stakeholders in the global economy, especially the most-vulnerable, in the interest of promoting inclusive growth and sustainable development.

In order to pursue a development-centered globalization, one challenge is how to address the key and emerging economic development issues and to advance developing countries' interests in the areas of trade, investment, enterprise development, technology, finance, commodities, as well as other development related issues - as they fall within the mandates and core competencies of UNCTAD.

The 2005 Panel included: H.E. Mr. Fernando Cardoso, former President of Brazil; Ms. Gro Bruntland former Prime Minister of Norway, and Mr. Lawrence Summers, former Treasury Secretary of the United States.

The three have now resigned and - in addition to the other remaining original members - the reconstituted 2012 Panel now includes: Mr. Thabo Mbeki, former President of South Africa; Lord Mark Malloch-Brown, former Minister of State in the Foreign and Commonwealth Office of the British Government; Ms. Mari Elka Pangetsu, Minister of Creative Economy and Tourism of Indonesia; Mr. Mohamed "Mo" Ibrahim, founder of Celtel and the Mo Ibrahim Foundation; and Ms. Margarita Cedeno de Fernandez, Vice-President of the Dominican Republic.

The Panel met twice in Geneva and held several informal exchanges in between these meetings. The final Report in the form of a think piece, focusing on the key interests of developing countries in key economic areas, and proposing pragmatic initiatives that can be taken up by UNCTAD and other international institutions, will be released on 21 May 2013.

PROFILES OF RECONVENED PANEL In late 2011, the UNCTAD Secretary-General reconvened the UNCTAD Panel of Eminent Persons to advise him on how to meet the key and emerging economic development challenges of today, and provide concrete ideas for international initiatives on how to deal with them, and how to strategically position UNCTAD in this context.

As recognized in its founding mandate, UNCTAD is the focal point of the United Nations for the integrated treatment of trade, investment, technology, finance, commodities and interrelated issues, in advancing inclusive growth and sustainable development.

Tarja Kaarina HALONEN was the 11th President of Finland, the first female to hold the office.

In addition to her political career she had a long and extensive career in trade unions and different nongovernmental organizations. Ms. Halonen is widely known for her interest in human rights and development issues.

She is Co-Chair of the World Commission on the Social Dimension of Globalization, and served as Co-Chair of the United Nations Millennium Summit. She is also a member of the Council of Women World Leaders. In April 2010, she was appointed Co-chair of the High-Level Panel on Global Sustainability by UN Secretary-General Ban Ki-moon.

Jagdish BHAGWATI, University Professor at Columbia University and Senior Fellow in International Economics at the Council on Foreign Relations, is a prominent economist.

He has made pioneering contributions to the study of development, globalization, international trade, foreign aid and immigration.

He also writes frequently for leading media worldwide. He has served in many advisory roles, including at the GATT as Economic Policy Adviser to Director General Arthur Dunkel and at the UN to Secretary General Kofi Annan on Globalization and on NEPAD Process in Africa. He works with many NGOs, including Human Rights Watch.

Margarita CEDEO DE FERNNDEZ is the Vice President of the Dominican Republic.

Prior to the current position, as the First Lady, she coordinated social policies for the administration. She was Associate Member of the law firm of Doctor Abel Rodrguez del Orbe and Fernndez y Asociados. She was Director of the Legal and Investment Environment Management in the Office for the Promotion of Foreign Investment. Since 2009, she is Goodwill Ambassador of the Food and Agricultural Organization.

Joaquim Alberto CHISSANO served as second President of Mozambique for 19 years (from 1986 to 2005) where he is credited for achieving broad socio-economic reforms. . He is chairperson of the Joaquim Chissano Foundation and the Forum of Former African Heads of State.

He is widely regarded for his international leadership and political achievements, serving as special envoy of the UN on numerous occasions and winning the first-ever Prize for Achievement in African Leadership awarded by the Mo Ibrahim Foundation

Yongtu Long is Secretary-General of the Center for the Study of the G20. . He is former Vice Minister of Commerce and Chief Negotiator for China's accession to the WTO. Between 2003 and 2010 he was Secretary-General of the Bo'ao Forum for Asia.

Mr. Long was also in charge of the multilateral economic and trade affairs between China and the UNs development agencies, and was actively involved in creating the Regional Economic Development Cooperation Committee of Tumen River Area in Northeast Asia.

Lord Malloch-Brown is a former United Nations Deputy Secretary-General and served as Chef de Cabinet to the then UN Secretary-General Kofi Annan. . He is also a former Minister of State in the Foreign and Commonwealth Office of the British government with responsibility for Africa, Asia and the United Nations.

He was also Administrator of the United Nations Development Programme (UNDP) during which time he spear-headed a number of reforms, including following up the creation of the United Nations Development Group (UNDG).

Thabo Mvuyelwa Mbeki is former President of the Republic of South Africa. . As successor to Nelson Mandela, he is credited with leading South Africas economy to robust growth in the postApartheid era. He is also founder of the Thabo Mbeki Foundation

He also created the New Partnership for Africas Development (NEPAD) and oversaw the successful building of economic bridges between South Africa and Brazil, Russia, India and China, with the eventual formation of the India-Brazil-South Africa (IBSA) Dialogue Forum.. . In April 2010, he was appointed Co-chair of the High-Level Panel on Global Sustainability by UN Secretary-General Ban Ki-moon.

Mohamed "Mo"Ibrahim is the founder of Celtel, an African mobile communications enterprise which set up the worlds first borderless network across East Africa. He is creator of the Mo Ibrahim Foundation to encourage better governance in Africa, as well as creating the Mo Ibrahim Index, to evaluate nations' performance. He is a member of the Africa Regional Advisory Board of London Business School. In 2007 he initiated the Mo Ibrahim Prize for Achievement in African Leadership.

Benjamin Mkapa is former President of the United Republic of Tanzania and former Chairperson of the Southern African Development Community. . He is Co-Chair of the Investment Climate Facility for Africa and was a Panelist in the High Level Panel on UN Systemwide Coherence on Development, Environment and

Humanitarian Assistance.

He serves as a Commissioner for the UN High Level Commission on the Legal Empowerment of the Poor and is Chairman of the South Centre.

MariElkaPangestu.jpgMari Elka Pangestu is minister of Tourism and Creative Economy, and former Minister of Trade of Indonesia. . She was active in various trade forums such as The Pacific Economic Cooperation Council and has been one of the foremost economics experts in Indonesia

. She serves on the Board of External Editors of the Asian Journal of Business (University of Michigan) and Bulletin of Indonesian Economic Studies (Australian National University). She is also the co-coordinator of the Task Force on Poverty and Development for the United Nations Millennium Project.

AFRICA,

LEAST

DEVELOPED

COUNTRIES

AND

SPECIAL

PROGRAMMES The Division focuses on the poorest and most vulnerable developing countries in the world. Specifically, it aims to increase understanding and awareness of the development problems of Africa and the least developed countries, as well as countries with specific geographical handicaps, notably landlocked developing countries and small island developing states, and to promote action at national, regional and international levels to support their development, enhance their participation in the world economy and achieve internationally agreed development goals.

The Division provides timely, targeted research and analysis of development challenges faced by these countries, designs innovative policy recommendations, delivers tailor-made technical assistance, in particular through the Enhanced Integrated Framework, and supports intergovernmental processes which seek to address their specific problems, such as those embodied in the Istanbul Programme of Action for the Least Developed Countries. The Division also draws on, applies and articulates the work of other UNCTAD Divisions in relation to trade, finance, investment, enterprise, technology and logistics in order to maximize its relevance to the target countries and their development partners. Some 80 developing countries fall under the Division's areas of work.

Economic Development of Africa The African continent remains by and large marginalized in the world economy, with over half of its population living under US$1 a day per person. If the major

Millennium Development Goal of reducing poverty by half by the year 2015 is to be achieved in Africa, major policy shifts are required, at national and international levels, to boost growth and development in the region.

UNCTAD, through its analysis of African socio-economic issues, aims to increase global understanding of the development problems of the continent and to promote action at national, regional and international levels to accelerate African development

and allow a fuller participation and integration of African countries into the world economy.

To that end, UNCTAD cooperates with relevant regional and international organizations. It also contributes to the New Partnership for Africas development (NEPAD) - in particular its cluster on agriculture, market access and diversification and participates in the annual regional consultations of UN agencies working in Africa.

Research and Policy Analysis on LDCs Since 1971, the United Nations has denominated "Least Developed Countries" (LDCs) a category of States that are deemed highly disadvantaged in their development process (many of them for geographical reasons), and facing more than other countries the risk of failing to come out of poverty. As such, the LDCs are considered to be in need of the highest degree of attention on the part of the international community.

Three United Nations Conferences on the Least Developed Countries were held in 1981, 1990, and 2001 under the leadership of UNCTAD. The third conference (Brussels, 14-20 May 2001) agreed on the Programme of Action for the Least Developed Countries for the Decade 2001-2010 . By periodically reviewing the list of LDCs on the basis of established criteria and highlighting their structural problems in relevant UNCTAD publications, the UN gives a strong signal to the development partners of these countries, and points to the need for special international support measures and concessions in their favour. At the time of the 2003 review of the list, the following three criteria were used by the UN:

low income, in the light of a three-year average estimate of the gross national income per capita (under $750 for cases of addition to the list, above $900 for cases of graduation); weak human assets, as measured through a composite Human Assets Index; and economic vulnerability, as measured through a composite Economic Vulnerability Index.

Recognition by the UN of the particular problems faced by LDCs brought the development partners of these countries, including UN agencies and programmes, to adopt a range of special support measures in their favour. These measures are essentially designed to reduce the competitive disadvantages LDCs suffer from in the global economy; support the development of their physical infrastructure and human resources; and enhance their institutional capacities. LDC-specific treatment mainly falls under three areas of international cooperation: in the multilateral trading system, special concessions, such as non-reciprocal market access preferences (e.g. the European Union's "Everything But Arms" initiative), are granted to LDCs; in the field of development financing, bilateral, regional and multilateral donors and financial institutions are expected to give LDCs specially favourable consideration in their decisions on concessionary financing; and in the area of technical assistance, priority is given to LDCs under all cooperation programmes of the UN, and bilateral and regional development partners are encouraged to follow the same preferential policy.

Integrated Framework for Trade-related Technical Assistance to LDC In 1997, a High-Level Meeting on "Integrated Initiatives for Least Developed Countries Trade Development" convened by the World Trade Organization (WTO) resulted in the establishment of the "Integrated Framework for Trade-related Technical Assistance to Least Developed Countries" (IF). The IF has been supported by the International Monetary Fund, the International Trade Centre, UNCTAD, the United Nations Development Programme, the World Bank, and the WTO.

The two major objectives of the IF are: to facilitate the coordinated delivery of trade-related technical assistance to LDCs in the light of the identified needs of these countries; and

through this technical assistance, to mainstream trade into the national development plans, and in relevant cases, into the Poverty Reduction Strategy Papers of recipient countries. This essentially implies action to strengthen supply capacities and enable LDCs to make the best possible use of the multilateral trading framework.

UN recognition of the problems of land-locked developing countries Land-locked developing countries (LLDCs) are widely dispersed around the globe: 15 are located in Africa, 12 in Asia, 2 in Latin America and 2 in Central and Eastern Europe. LLDCs, as a group, are among the most disadvantaged countries. They face severe challenges to growth and development due to a wide range of factors, including: a poor physical infrastructure, weak institutional and productive capacities, small domestic markets, remoteness from world markets, and a high vulnerability to external shocks.

For example, four LLDCs in Central Asia are located at least 3,500 kilometres away from the nearest maritime port, and seven face distances in excess of 1,500 kilometres away from sea ports. Moreover, the transit of overseas goods through the territory of at least one neighbouring State, and the frequent change of mode of transport result in high transaction costs and reduced international competitiveness. Responding to the transit problems of LLDCs requires a multidimensional approach to land-lockedness. This notably implies developing adequate national transport networks and efficient transit systems, promoting regional or sub-regional economic integration, and encouraging foreign direct investment in economic activities that are not distance-sensitive. In 1995, the Global Framework for Transit Transport Cooperation between Landlocked and Transit Developing Countries and the Donor Community was endorsed by the UN General Assembly with a view to enhancing transit systems and enabling LLDCs to reduce their marginalization from world markets. In 2003, the UN convened in Almaty (Kazakhstan) an international ministerial conference to enhance transit transport cooperation between land-locked and transit developing countries. The Almaty Programme of Action deals with infrastructure development and maintenance, transit policy issues, and trade facilitation measures. Within its mandate, UNCTAD participates in the implementation of the Almaty Programme of Action through analytical work on the transit transport and related development problems faced by LLDCs, and technical assistance to these countries in areas such as trade facilitation and electronic commerce.

In 2005, the first meeting of LLDC Ministers responsible for trade, in Asuncion (Paraguay), adopted the Asuncin Platform for the Doha Development Round to harmonize the positions of LLDCs in the current round of multilateral trade negotiations. The 2005 World Summit recognized the special needs of, and challenges faced by LLDCs, and reaffirmed the commitment by the international community to urgently address these needs and challenges through the full, timely and effective implementation of relevant internationally agreed programmes and objectives, in particular the Almaty Declaration and the Almaty Programme of Action. It encouraged ongoing work to establish a time-cost methodology based on indicators to measure progress in the implementation of the Almaty Programme of Action. The World Summit also recognized the special concerns of LLDCs in their efforts to better integrate their economies in the multilateral trading system.

Technical cooperation with LLDCs The Division has been providing substantive and logistical support to the negotiations for a transit traffic agreement between the People's Republic of China, Mongolia and the Russian Federation.

Projects for the benefit of LLDCs in the area of trade facilitation have been undertaken by the Division for Services Infrastructure for Development and Trade Efficiency (SITE) of UNCTAD.

Special consideration is also given to the specific needs and problems of LLDCs in other divisions and programmes of UNCTAD.

UN recognition of the problems of small island developing States The United Nations has been recognizing the particular problems of Small Island Developing States (SIDS) since 1994, after UNCTAD had advocated special consideration of "island developing countries" for two decades. However, the UN never established criteria to determine an official list of SIDS. In this context, UNCTAD uses an unofficial list of 29 SIDS, for analytical purposes only.

SIDS are deemed to be facing a greater risk of marginalization from the global economy than many other developing countries. This essentially results from the combined adverse consequences of their: small size, remoteness from large markets (a factor of high transport costs), and high economic vulnerability to economic and natural shocks beyond domestic control.

With their fragile ecosystems, SIDS are also highly vulnerable to domestic pollution factors and globally induced phenomena such as sea level rise.

Over the last two decades, the share of SIDS in global merchandise trade diminished by half (from 0.4% of world exports of goods in 1980 to 0.2% in 2003), while their share of global trade in services remained stable (0.7% of world exports of services). SIDS are estimated to be economically 34% more vulnerable than other developing countries, partly for the following reasons: agricultural production in SIDS, notably as a result of their exposure to natural disasters, has been more unstable than that of other developing countries by 31%, and their exports of goods and services have been more unstable by 10%. In 2001, SIDS were experiencing a level of merchandise export concentration 24% greater than that of other developing countries.

The Global Conference on the Sustainable Development of SIDS (Barbados, AprilMay 1994) adopted the Programme of Action for the Sustainable Development of SIDS. The International Meeting to Review the Implementation of the Programme of Action (Mauritius, January 2005) resulted in the Mauritius Strategy for the Further Implementation of the Programme of Action for the Sustainable Development of SIDS.

The Mauritius Strategy recognizes the seriousness of the disadvantages most SIDS suffer from in the global economy, and implicitly, the need for a range of answers to these problems. Since 1985, the World Bank has maintained a "small island exception" in its policy of eligibility for IDA concessionary treatment. In the WTO, proposals for special treatment modalities of interest to SIDS have been considered under a "Work Programme on Small Economies" since 2002.

GLOBALIZATION, INTERDEPENDENCE AND DEVELOPMENT Through its programme on Globalization and Development Strategies, UNCTAD contributes to the international debate on globalization and the management of its consequences for developing countries. The programme promotes policies at the national, regional and international level that are conducive to stable economic growth and sustainable development. It regularly examines the trends and prospects in the world economy, undertakes studies on the requirements for successful development strategies and on the debt problems of developing countries.

It also provides technical support to developing countries in their efforts to integrate into the international financial system and to manage their external debt

Technical cooperation with SIDS The Special Programme extends technical assistance to SIDS in the following two main areas of work. In the framework of the periodic review of the list of LDCs, SIDS that are potential or declared graduation cases have been calling on UNCTAD for support in formulating national strategies to secure "smooth transition" modalities in anticipation of the loss of concessionary treatment. In recent years, Cape Verde, Maldives, Samoa and Vanuatu have been the main beneficiaries of UNCTAD cooperation in this area. Other least developed SIDS such as Kiribati, the Solomon Islands and Tuvalu received substantial help from UNCTAD in their preparations for the Third United Nations Conference on the Least Developed Countries in 2001.

Whether least developed or not, SIDS have sought UNCTAD's support in various traderelated or investment-related policy matters. This has brought the Division to cooperate with interested countries in partnership with other relevant Divisions of the UNCTAD secretariat. Several SIDS in the Atlantic (Cape Verde, Sao Tome and Principe), the Caribbean (St. Lucia), and the Pacific (Samoa, Papua New Guinea, Vanuatu) have benefited from such technical assistance.

ASSISTANCE TO PALESTINIAN PEOPLE


The Assistance to the Palestinian People Unit (APPU) was established in 1985, with a specific mandate to monitor and investigate the social and economic impact of policies of the Israeli occupation authorities in the Palestinian territory.

The establishment of APPU crowned the secretariats pioneering work on the Palestinian economy which commenced in 1979 upon the request of member States.

This makes UNCTAD the first international organization to systematically examine the Palestinian economys multifaceted development predicament.

Drawing on the secretariats global mandate, APPU has been actively responding to official requests for technical assistance by Palestinian public and civil society institutions, thereby positioning itself as a focal point for the interrelated treatment of Palestinian trade, finance and economic development.

UNCTADs work on the Palestinian economy is centred on the secretariats three main interrelated pillars of activities: 1. Research and analysis

2. Technical cooperation

3. Supporting intergovernmental consensus-building in this area of work

Activities under each pillar respond to the evolving needs of the Palestinian people within four programmatic clusters: Development strategies and trade policies Trade facilitation and logistics Public finance modernization and reform Enterprise, investment and competition

DEBT AND DEVELOPMENT FINANCE UNCTAD, through its Debt and Development Finance Branch (DDFB), works on analytical issues technical assistance, primarily in the areas of external and domestic debt. UNCTAD began working on debt issues during the 1970s. As the debt situation of developing countries has evolved over the following three decades, DDFB has provided up-to-date analysis of the most important developments and emerging issues in international debt, and adapted its technical assistance to the changing needs of developing countries.

Debt Management and Financial Analysis System (DMFAS) UNCTAD, through its DMFAS Programme, is firmly established as one of the leading international organizations in the field of debt management capacity-building. At the crossroads between international and domestic finance, governance and information technology, the Programme helps Governments of developing and transitional economies build their debt management capacities at all levels. The DMFAS Programme works directly with more than 60 low- and middle-income States, whose economies account for more than $500 billion of outstanding public and public-guaranteed long-term debt, approximately 40 per cent of the total long-term debt of all developing countries.

Objectives of the DMFAS Programme: Help developing countries and countries with economies in transition develop appropriate administrative, institutional and legal structures for effective debt management Provide direct assistance to debt offices with its products and services, including capacity-building Maintain and improve state-of-the-art debt analysis and management systems

Provide or serve as a focal point for discussion and exchange of experience about debt management

DMFAS software The DMFAS Programme has developed a computerized system designed to satisfy three distinct debt management needs: Day-to-day operational needs of the debt manager Statistical requirements of the debt office Analytical needs of the policymaker

RESEARCH AND ANALYSIS UNCTADs Debt and Finance Analysis Unit engages in research and policy analysis on emerging issues concerning the external debt of developing countries. The Unit is entrusted with preparing the United Nations Secretary-Generals annual report to the General Assembly on the external debt crisis. This report analyses the latest trends and the emerging policy issues in the area of debt. In addition, the Unit conducts research on a range of topics, including issues such as: Analytical framework for debt sustainability analysis Debt renegotiation frameworks Debt and trade linkages Institutional arrangements for debt management The role of credit rating agencies Domestic debt Bond markets Millennium Development Goals (MDGs) in low-income countries Documents and Publications Papers and reports of meetings Report of the United Nations Secretary-General

TECHNICAL ASSISTANCE UNCTADs Debt and Finance Analysis Unit provides selective advisory services and capacity-building activities to support debtor countries in the design of sustainable public debt and related negotiating strategies. Quick Links: Paris Club Capacity-building for debt sustainability Debt conversion UNCTADs Debt Management - DMFAS Programme offers countries a set of proven solutions for improving their institutional capacity to handle the day-to-day management of public liabilities and the production of reliable debt data for policy-

making purposes. This includes its special debt management software - DMFAS - as well as advisory services and training activities in debt management. Quick Links: Debt Management-DMFAS Programme ECONOMIC COOPERATION AND INTEGRATION AMONG DEVELOPING COUNTRIES The Unit on Economic Cooperation and Integration among Developing Countries was created by the UNCTAD Secretary-General in July 2009, reinforcing the institutions work on the reshaping of the global economic development architecture in which South-South cooperation is playing a growing role. The Unit aims to build on UNCTAD`s longstanding work on the opportunities and challenges surrounding a renewed trend towards closer economic cooperation and integration among developing countries, work which goes back to its establishment in 1964 Economic Cooperation and Integration among Developing Countries: A Brief History Phase 1: The 1950s and 1960s

Economic Cooperation and Integration among Developing Countries (ECIDC) has a long history going back to the Asian-African Conference (Bandung Conference) held in Indonesia in 1955.

A number of groupings emerged over the coming decades boosting political, cultural, economic and technical cooperation. Coordination of these countries at a multilateral level was advanced with the establishment of the Non Aligned Movement (NAM) in 1961 and through the Cairo Conference in 1962 on the Problems of Economic Development which led to the creation of the so-called Group of Seventy Seven (G77) and UNCTAD in 1964.

UNCTAD was the first agency to recognize the need to promote ECDC as part of its regular work programme.

Phase 2: The 1970s and 1980s

Subsequent work by UNCTAD focused on a global system of trade preferences among developing (GSTP), financial and monetary cooperation (with the G24), as well as technical support for interregional cooperation programmes.

The UNCTAD III held in 1972 in Santiago de Chile, prompted the transformation of the Working Programme on Trade Expansion and Economic Integration among Developing Countries into a Division status. From 1974, much of this work was linked to the efforts to establish a New International Economic Order (NIEO) adopted in the United Nations General Assembly resolution A/RES/S-6/3201.

In 1978, the UN Conference on Technical Cooperation among Developing Countries (TCDC) was held in Buenos Aires adopting the Buenos Aires Plan of Action on TCDC a blueprint document boosting south-south technical cooperation. This effort was cut short by the debt crisis of the early 1980s. However, closer regional integration did continue, although in a very uneven fashion, raising new policy challenges for developing countries.

The rapid development of the East Asian region involved particularly strong regional ties which have been extensively examined by UNCTAD. UNCTAD was also called upon to support a number of monetary cooperation schemes drawing lessons from experiences in other regions and prompting a platform for dialogue between delegations of different parties of the developing and developed world.

In 1983 the ECDC Committee re-formulated UNCTADs ECDC programme securing that work on this project was approved. Phase 3: The 1990s and 2000s

Subsequent work on South-South cooperation has continued in UNCTAD albeit on a much more decentralized and ad hoc basis through the work programme of each division.

UNCTAD IX in Midrand, South Africa lead to a commensurate restructuring of the Secretariat and the abolition of the Division on ECDC. The Conference felt that this cross-sectoral issue could be best addressed by introducing an ECDC emphasis in the work of each of the substantive Division of UNCTAD with an overall coordination role given to the Development Policies Branch of the Division on Globalisation and Development Strategies.

UNCTAD XI held in Sao Paulo lead to a new momentum in south-south cooperation which was later crystallized at UNCTAD XII in Ghana.

The Accra Accord of UNCTAD XII recognized the growing importance of SouthSouth cooperation and the potential role that UNCTAD could play in supporting this trend.

In 1995, General Assembly with its resolution A/RES/50/119 on Economic and technical cooperation among developing countries had called for a United Nations conference on South-South cooperationwhich was only held in Nairobi in December 2009.

UNCTAD Secretary General Panitchpakdi decided to establish a unit on ECIDC in July 2009 aiming to revitalise its work on this issue. The unit was implemented with posts provided by the development pillar endorsed by the General Assembly in its resolution A/RES/63/260 of December 2008.

MANDATE AND MISSION 43: UNCTAD has traditionally played a substantive role in supporting economic cooperation among developing countries in all three pillars of its work. It should strengthen its work in this area by: (a) deepening research on and analysis of the synergies created by South-South trade, investment and finance; (b) upgrading data and analytical tools on South-South flows and cooperation; and (c) promoting SouthSouth and triangular cooperation. 52. South-South cooperation has grown in importance, supported by a confluence of policy- and market-related factors. The new opportunities for trade, investment and

economic cooperation among developing countries need to be fully exploited, and this tendency should be encouraged and benefits extended to all regions. It should complement North-South trade and economic cooperation for development. There is considerable potential for trade and investment among countries with economies in transition and developing countries. 67. Enhancing the integration of developing countries, particularly LDCs, into international trade requires building their productive capacities and bolstering their participation in value chains, including in new and dynamic sectors of world trade. Innovation, adaptation and the adjustment of institutional structures for economic cooperation among developing countries, and regional and interregional forums for dialogue and cooperation, are important. 97. UNCTAD should promote and support economic cooperation among developing countries, including through the exchange of experiences and institution-building. It should upgrade its data and analytical tools on South-South trade and strengthen related technical assistance programmes. It should also continue its support for the revitalization and greater utilization of the Global System of Trade Preferences among Developing Countries and other initiatives that stimulate South-South trade. Accra Accord UNCTAD XII Accra, Ghana 20-25 April 2008

AREAS OF ACTIVITY Trends and prospect for south-south integration, including in particular in trade, finance, investment and technology, their interdependence and the consequences for policy making, including at the macroeconomic and sectoral levels. Integration opportunities around new growth poles in the South, including the emerging big regional economies, and the possible channels through which growth impulses could be transmitted to other developing countries; how these opportunities might be impacted, positively or negatively, by shifts in the wider global economy, including developments in advanced economies.

The role of integration and cooperation among developing countries in supporting economic diversification and technological upgrading; the challenges, in this regard, that might face countries at different levels of development, including middle-income developing countries, and the additional support mechanisms for lower income countries to catch-up with regional neighbours.

Policy responses and institutional requirements to support a deepening pattern of integration and cooperation among developing countries, with particular attention given to trade arrangements as well as to emerging forms of financial and monetary cooperation, and development assistance; the adjustment and safeguard mechanisms needed to support closer integration integration; lessons from past experiences as well as comparative perspectives; the scope for different cooperation models including triangular cooperation.

The links between south-south cooperation and the wider multilateral agenda; including its role in ongoing efforts to rethink the international financial architecture, strengthening the development dimension of trade negotiations; improving aid effectiveness (including aid for trade).

New threats and challenges, particularly those involving climate change but also related threats linked to food security and countries emerging from conflict.

INTERNATIONAL TRADE AND COMMODITIES The overall objective of the programme is to promote inclusive and sustainable development through international trade. It offers analysis and advice and seeks to build consensus, strengthen capacity and promote partnerships for trade policy, trade negotiations, trade in goods and services, competition law and consumer protection, and managing issues arising at the intersection of trade, the environment and climate change. Trade, Environment, Climate Change and Sustainable Development UNCTAD's work on harnessing international trade in promoting sustained growth and inclusive development includes as a key aspect, support to developing countries in taking advantages of emerging opportunities for trade associated with the protection, promotion and preservation of the environment and sustainable development

objectives generally, while minimizing potential adverse impacts. This work is carried out by the Trade, Environment, Climate Change and Sustainable Development Branch of DITC.

Through research and analysis, intergovernmental deliberations and consensus building, and technical assistance, as well as partnerships and networks with an array of stakeholders, the Branch works to strengthen the capacity of developing countries to formulate and implement mutually supportive trade, environment and sustainable development objectives; integrate sustainable development and poverty reduction objectives in development strategies at all levels, including the need to address climate change implications inter alia by promoting climate-friendly trade and production strategies including in green sectors; and support the effective participation of developing countries in international deliberations on trade and environment.

The main areas of intervention include:

BioTrade Organic Agriculture Climate Change and Biofuels Green Economy Creative Industries

About BioTrade BioTrade refers to those activities of collection, production, transformation, and commercialization of goods and services derived from native biodiversity under the criteria of environmental, social and economic sustainability.

BioTrade Initiative

Since its launch by UNCTAD in 1996, the BioTrade Initiative has been promoting sustainable BioTrade in support of the objectives of the Convention on Biological Diversity. The Initiative has developed a unique portfolio of regional and country programmes.

Since 2003 the BioTrade Initiative has also hosted the BioTrade Facilitation Programme (BTFP) which focuses on enhancing sustainable bio-resources management, product development, value adding processing and marketing. The BTFP complements the UNCTAD BioTrade Initiative activities. It is currently in its second phase (BTFP II) with various partners implementing its objectives.
About Organic Agriculture

Organic Agriculture (OA) offers a range of environmental, social and economic benefits for developing countries.

On the economic side, growing world markets for OA products offer interesting export opportunities for developing countries who may have some comparative advantage in OA due to relatively abundant labour and lower use of agrochemicals.

In addition, OA production has been shown to have a positive effect on the local environment, biodiversity and soil fertility, and has the potential to increase the yields and incomes of subsistence farmers in developing countries who are not currently using agrochemicals, thus contributing to poverty reduction and sustainable rural development.

UNCTAD supports interested countries through country projects and thematic research studies aimed at developing win-win policy options through promoting OA and easing access of organic products in overseas markets.

Climate Change UNCTADs role on climate change Concerns about climate change have placed this threat to development prospects high on the international agenda, particularly in terms of its economic, trade and social impacts. UNCTADs main role in addressing this global challenge is to help developing countries master the trade and development implications and take advantage of emerging trade and investment opportunities.
About Green Economy

The green economy, within the context of sustainable development and poverty eradication, is one of the two themes of the 2012 Conference on Sustainable Development, to be held in Rio de Janeiro.

It encompasses some of the most important challenges we face today: eradicating poverty, improving our relationship with the environment, addressing the potential negative impacts of global climate change, and creating a new path for sustainable development.

The green economy is an enabling component of the overarching goal of sustainable development. It is defined as an economy that results in improved human well-being and reduced inequalities, while not exposing future generations to significant environmental risks and ecological scarcities.

Some countries are already moving aggressively towards the green economy and it is imperative that all countries consider reshaping their development strategies and practices accordingly. It is difficult to imagine a transition phase in which, at least in the early stages, the internalization of the environmental and social costs do not result in a reduction in real income. There is, therefore, a genuine basis to argue for significant investment to assist developing countries in their move to a green economy and thereby achieve a higher degree of sustainable development.

About GSP As stated in Resolution 21 (ii) taken at the UNCTAD II Conference in New Delhi in 1968,

" the objectives of the generalized, non-reciprocal, non-discriminatory system of preferences in favour of the developing countries, including special measures in favour of the least advanced among the developing countries, should be:

(a) to increase their export earnings; (b) to promote their industrialization; and (c) to accelerate their rates of economic growth."

Under GSP schemes of preference-giving counties, selected products originating in developing countries are granted reduced or zero tariff rates over the MFN rates. The least developed countries (LDCs) receive special and preferential treatment for a wider coverage of products and deeper tariff cuts.

The idea of granting developing countries preferential tariff rates in the markets of industrialized countries was originally presented by Raul Prebisch, the first SecretaryGeneral of UNCTAD, at the first UNCTAD conference in 1964. The GSP was adopted at UNCTAD II in New Delhi in 1968.

In 1971, the GATT Contracting Parties approved a waiver to Article I of the General Agreement for 10 years in order to authorize the GSP scheme. Later, the Contracting Parties decided to adopt the 1979 Enabling Clause, Decision of the Contracting Parties of 28 November 1979 (26S/203) entitled "Differential and more favourable

treatment, reciprocity and fuller participation of eveloping countries", creating a permanent waiver to the most-favoured-nation clause to allow preference-giving countries to grant preferential tariff treatment under their respective GSP schemes.

There are currently 13 national GSP schemes notified to the UNCTAD secretariat. The following countries grant GSP preferences: Australia, Belarus, Bulgaria, Canada, Estonia, the European Union, Japan, New Zealand, Norway, the Russian Federation, Switzerland, Turkey and the United States of America.

Economic policies impact different segments of the population, including men and women, in different ways. In turn, gender inequalities impact on trade policy outcomes and economic growth. Taking into account gender perspectives in macroeconomic policy is essential to pursuing inclusive and sustainable development and to achieving fairer and beneficial outcomes for all.
Trade, Gender and Development

UNCTAD plays a key role in ensuring that gender concerns are incorporated in a meaningful way in macroeconomic policies, including trade policy. Through its work programme on Trade, Gender and Development, UNCTAD supports its member countries to assess the distinct effect of macro-economic policies on men and women, boys and girls. This helps them integrate gender considerations in policy formulation and implementation, as well as in the negotiations of trade and other agreements at the multilateral, regional and bilateral levels. UNCTAD's work on gender mainstreaming is conducted through:

Gender mainstreaming in macro-economic policies, especially trade policy Gender mainstreaming within UNCTAD Contribution to a UN-wide gender action plan

Services, Trade and Development

The services sector plays an increasingly important role in the global economy and the growth and development of countries.

Services are becoming crucial in a country's development, including in achieving the Millennium Development Goals, such as poverty reduction and access to basic services, including education and health services.

UNCTAD has implemented a comprehensive work programme on services, trade and development with a view to assisting developing countries in developing their services sectors, increasing their participation in services trade and realizing development benefits. This work enjoys extensive complementarity between the three pillars of UNCTAD's operations.

UNCTAD's mandate on services UN Member States recognize the importance of the services economy. Accra Accord paragraph 55 states that "the services economy is the new frontier for the expansion of trade, productivity and competitiveness, and for the provision of essential services and universal access."

The recently approved Doha Mandate, which reaffirms and builds upon the Accra Accord, instructs UNCTAD to continue its work on services (para. 56(c)) while once again recognizing the importance of the sector: "development of, and access to, services, supported by adequate regulatory and institutional frameworks, are important for sound socio-economic development" (para. 44).

The relevance of the services sector for the generation of opportunities for greater income, productivity, employment, investment and trade, as well as to the achievement of the Millennium Development Goals was also recognized in the first edition of the Global Services Forum (GSF), held in Doha, Qatar, the 19th of April 2012, as a pre-event of UNCTAD XIII.

UNCTAD's work on services includes:

Enhancing its analysis of the capacity of developing countries and countries with economies in transition to increase their participation in global services production and trade. Assisting developing countries and countries with economies in transition in establishing regulatory and institutional frameworks and cooperative mechanisms to support strengthening of their domestic services capacity and its efficiency and competitiveness. Providing support in national services assessment and policy reviews. Examining issues relating to the liberalization of trade in services and its development impact, including at the regional level. Giving attention to multilateral rulemaking in services, taking into account the interests and concerns of developing countries. Fostering recognition of qualifications and standards. Providing support to multilateral and regional negotiations on services. Strengthening services data and statistics. Global importance of services The services sector plays an increasingly important role in the global economy and the growth and development of countries.

Services are becoming crucial in a country's development, including for the achievement of the Millennium Development Goals, such as poverty reduction and access to basic services, including education, water and health services.

Facts:

International trade in services covers trade in intangibles, such as peoples' skills (1). Services trade is carried out through four modes of supply namely: cross-border supply, consumption abroad, commercial presence and presence of a natural person. International trade in services through these modes does not physically cross national border and thus is not affected by customs tariffs and other taxes applied to merchandise trade. Services trade is affected by domestic regulations in force in the sectors concerned in countries. International trade in services is thus sensitive to behind the border, national regulations that affect the supply of services. World Bank has pointed to the higher contribution of growth in the services sector to poverty reduction than the contribution of growth in the agriculture or manufacturing sectors (2). Strengthening the domestic services sector by increasing its backward and forward linkages with the primary and the secondary sectors, as well as its linkage with trade, can be an effective component of a comprehensive development strategy. The 2011 World Development Indicators show that the services sector accounted for almost 71% of global GDP in 2010 and is expanding at a quicker rate than the agriculture and the manufacturing sectors. Moreover, trade in services is growing at a pace faster than trade in goods since the 1980s. In 2011, commercial services exports grew 11% to US$ 4.1 trillion(3) 29'82% coming from developing countries and 2.85% from transition economies(4). Trade in services demonstrated relative resilience in the latest financial and economic crises in terms of lower magnitude of decline, less synchronicity across countries and earlier recovery from the crises. Such resilience has led many countries to incorporate services trade into their post-crisis national trade and growth strategies. For developing countries and least developed countries (LDCs), service trade is the new frontier for enhancing their participation in international trade and, in turn, realizing development gains. However, positively integrating developing countries, especially LDCs, and Land-Locked Developing Countries (LLDC) into the global

services economy and increasing their participation in services trade, particularly in modes and sectors of export interest to them, remains a major development challenge.

It is therefore imperative to increase public and private sector advocacy and awareness, to mobilize policy attention and resources to boost the sector's contribution to growth and development in developing countries and LDCs.

Given the multifaceted contribution of services to national economy and trade, it is critically important to design and implement a services-driven development strategy within a coherent and comprehensive policy framework, ensuring linkages with other policy areas and overall national development objectives.

__________ (1) Services sectors defined by the WTO cover business services, communication services, construction and related engineering services, distribution services, education services, environmental services, financial services, health related and social services, tourism and travel related services, recreational, cultural and sporting services, transport services and others.

(2) World Bank presentation, "Role of Services in Economic Development"; Geneva, July 2012 (Data source: World Bank, 2010)

(3) WTO World Trade Report 2012; Data from WTO and UNCTAD Secretariats for commercial services.

The Trade Analysis Branch (TAB) of the Division on International Trade in Goods and Services, and Commodities undertakes policy-oriented analytical work aimed at improving the understanding of relevant and emerging issues in international trade.

The work of the Trade Analysis Branch is part of the Research and Analysis Pillar of UNCTAD. The Branch research and analysis on international trade focuses on policy issues of particular importance for developing countries. The work program responds to priority areas as identified by member States and follows the guidelines of the Accra Accord which has reinstated the importance of economic analysis and statistical tools for improving trade policy decision-making in developing countries.

The output of the Trade Analysis Branch consists of policy and research publications, databases, and analytical toolkits for analyzing the impact of trade policy reforms. The Trade Analysis Branch also provides training and technical assistance related to its work. The Trade Analysis Branch consists of three sections: Global and Regional Trade Policy Analysis, Trade Policy Research, and Trade Information; and one unit: Creative Industries.

Established in 1964, UNCTAD promotes the development-friendly integration of developing countries into the world economy. UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.

The organization works to fulfill this mandate by carrying out three key functions

It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building. It undertakes research, policy analysis and data collection for the debates of government representatives and experts. It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organizations and donor countries in the delivery of technical assistance.

The Secretary-General of UNCTAD is Dr. Mukhisa Kituyi (Kenya), who took office on 1 September 2013.

In performing its functions, the secretariat works together with member Governments and interacts with organizations of the United Nations system and regional commissions, as well as with governmental institutions, non-governmental organizations, the private sector, including trade and industry associations, research institutes and universities worldwide

Main Goals

To work as a laboratory of ideas and to provide on-the-ground assistance to help developing countries raise living standards through trade, investment, finance and technology To help developing countries benefit from the globalized economy To contribute to international debate on emerging issues related to developing countries and the world economy - such as the current global financial crisis - through major reports, policy briefs, and contributions to international conferences.

Main Activities

Globalization and Development Strategies Identify broad trends and prospects in the world economy, such as the recent rise in "South-South" trade Identify solutions to the economic development challenges of African countries Analyse the effects on least developed countries of international aid and of other efforts to promote development Help with the restructuring of developing-country debt

Trade in Goods and Services Assist developing countries in all aspects of their trade negotiations Analyse the impact of competition laws and policies on development Encourage the inclusion of environmental issues, such as climate change and preservation of biodiversity, in trade and development policies

Commodities Examine the factors influencing commodity markets Help developing country efforts to achieve sustainable commodity exportst

Help commodity-dependent countries diversify their economies

Investment and Enterprise Development Analyse trends in foreign direct investment and their impacts on development Help countries participate in international investment agreements Advise governments on their investment policies through investment policy reviews, guides, and training Help with the creation and nurturing of small and medium-sized enterprises Help countries establish and observe international standards for accounting

Technology and Innovation Identify policies to take advantage of new technologies, including the Internet and ebusiness Help governments set up effective policies on science, technology, and innovation Help developing countries gain access to useful and appropriate technology and knowledge

Trade Logistics and Human Resource Development Partner with Developing Countries to address Transport and Trade Facilitation challenges and opportunities Technical assistance in Trade Facilitation reforms and Customs automation Cooperation in Transit transport systems for landlocked and transit developing countries Research in Maritime and Sustainable Transport Legal and Regulatory Transport related issues Build training networks and organize training in all areas of international trade, in particular for least developed countries

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