Global Policy Forum

"The primary role of the Investment Division of UNCTAD should be to provide to developing countries alternatives to the unbalanced provisions of international investment treaties" say 240 organizations from over 150 countries in a letter to Dr. Mukhisa Kituyi, secretary general of the UN body specializing in trade and development. The signatories worry about "the growing restrictions on policy space resulting from the investment protection rules". It is hoped that the letter will make a useful contribution to the ongoing debate, particularly in light of current discussions around UNCTAD's mandate that are already taking place in advance of the institution's next quadrennial ministerial meeting, UNCTAD XIV, to be held in June 2016.

Rising economic growth numbers in the “developing world” since 2002 are not evidence of the benign power of “global market forces,” says UNCTAD’s head of economic co-operation and integration. If anything, developing countries should steer clear from “business as usual” practices like export-led growth, and instead focus on industrial policies and domestic social and redistribution policies. Kozul-Wright urges the world’s powerful countries to understand that reform of global governance arrangements is also in their long-term interest. (Guardian)

In this article, Deborah James of the Center for Economic and Policy Research extensively discusses the victory achieved by developing countries at the most recent UNCTAD conference. Developed and developing countries were pitted against each other over UNCTAD’s mandate, particularly with respect to its role in researching the financial crisis and offering macro-economic policy proposals. Hardly surprising, developed countries wanted to curtail UNCTAD’s mandates precisely because it had been so successful at predicting the financial crisis. This otherwise counter-intuitive position is typical for the powerful countries who want to rid themselves of interference from “outsiders” in the realm of global economic governance. During the tough negotiations, the developing countries “won” the fight and made sure that UNCTAD’s role would be retained. Even though UNCTAD’s standing can still not match that of the IMF and World Bank, the success at the 13th conference cannot be underestimated and may signal the beginning of a turning point for global economic governance. (Huffington Post)

In this article South Centre director Martin Khor explains the battles that have been taking place between developed and developing countries during the preparatory talks for UNCTAD XIII, the UN Conference on Trade and Development’s upcoming meeting on “development-centered globalization.” Developed countries have continually tried to stifle UNCTAD’s work since its establishment in 1964, but current talks have been markedly hostile. The main issue of contention is the attempt on the part of developed countries to curtail the range of issues UNCTAD works on, particularly macro-economic and finance issues. Within the wider UN-system (which includes the IMF and the World Bank), UNCTAD has provided a much needed alternative voice, countervailing the powerful pro-Western institutions.

On the eve of the UNCTAD XIII conference, a host of former senior officials published an open letter of protest against the continual attempts of OECD countries to frustrate the organization’s ability to fulfill its mandate. Established as a counterweight to the pro-Western Bretton Woods institutions (IMF and World Bank) and GATT, the UN Conference on Trade and Development has a markedly better track-record at foreseeing financial and economic crises and highlighting the structurally unfair relations between developed and developing countries. According to the former officials, alternative ideas on financial and economic matters that can assume a development perspective and take sustainability seriously are imperative at this time. The further marginalization of UNCTAD must therefore be stopped.

Foreign Direct Investment (FDI), long held up as a panacea for world poverty, has been an utter failure in job generating potential for the poorest countries. Economists working for UNCTAD have issued a report that voices concern over the overall lack of integration in global “value chains” for the least developed countries (LDCs). FDI should be invested in diversifying economies and aim to train skilled workers. Additionally, projects should focus on solving social and environmental issues, and not mere profit taking. (UNCTAD)

Secretary General of the United Nations Conference on Trade and Development (UNCTAD) Supachai Panichpakdi has recommended that poor countries develop their own resource bases because developed countries have stalled on their aid commitments.  Mr. Panichpakdi noted that wealthy European countries and the US face a multitude of economic difficulties.  This will no doubt lead to resource constraints for the Least Developed Countries (LDCs) in the future. (Republica)

UNCTAD's last report states that the contraction in the global economy makes it impossible to attain the United Nations Millennium Development Goals by 2015. Although some economies like India and China have resisted the crisis better than other developing countries, the general situation remains pessimistic. According to the report, a temporary moratorium would help indebted countries to maintain necessary levels of public expenditure and imports. (Philippine Star)