StrengtheningStrengtheningUNCTAD-Enhancing its UNCTAD-Enhancing its

Development Role, Impact Development Role, Impact and institutional and institutional

EffectivenessEffectiveness

PRE-UNCTAD-XII CIVIL PRE-UNCTAD-XII CIVIL SOCIETY FORUM organized SOCIETY FORUM organized

by CUTS, Nairobi 12,13 by CUTS, Nairobi 12,13 March, 2008March, 2008

By Ahmed Farouk GhoneimBy Ahmed Farouk GhoneimCairo UniversityCairo University

Email address: aghoneim@gmx.deEmail address: aghoneim@gmx.de

What are the major challenges What are the major challenges UNCTAD is facing on delivering its UNCTAD is facing on delivering its developmental role and impact?developmental role and impact?

UNCTAD is heavily UNCTAD is heavily constrained by the political captureconstrained by the political capture of the of the major economic and political powers, namely the United States major economic and political powers, namely the United States and the European Union.and the European Union.

UNCTAD suffers from UNCTAD suffers from lack of financial resourceslack of financial resources which negatively which negatively affects it in performing its role, and render it more vulnerable to affects it in performing its role, and render it more vulnerable to political captures of the major powers.political captures of the major powers.

UNCTAD suffers from UNCTAD suffers from weak promotion of its ideasweak promotion of its ideas. Examples . Examples include the Trade Development Report 2006 which challenged include the Trade Development Report 2006 which challenged the orthodox views of the World Bank and IMF on exchange rate the orthodox views of the World Bank and IMF on exchange rate regimes and financial systems, however it had little impact on regimes and financial systems, however it had little impact on developing countries.developing countries.

UNCTAD depends mainly on spreading its intellectual ideas and UNCTAD depends mainly on spreading its intellectual ideas and contributions, however its means of achieving such mission contributions, however its means of achieving such mission remain inadequate in terms of remain inadequate in terms of outreachoutreach..

What are the major challenges What are the major challenges UNCTAD is facing on delivering its UNCTAD is facing on delivering its developmental role and impact?developmental role and impact?

Till now UNCTAD in the eyes of public is the organization of trade, Till now UNCTAD in the eyes of public is the organization of trade, development, and investment (thanks to the Flagship publication of development, and investment (thanks to the Flagship publication of the World Investment Report), but there are other areas where the World Investment Report), but there are other areas where UNCTAD is the focal point of the UN for as integrated treatment of UNCTAD is the focal point of the UN for as integrated treatment of finance, currency, investment, trade and technology from a finance, currency, investment, trade and technology from a developmental perspective. developmental perspective. UNCATD’s role in dealing with such UNCATD’s role in dealing with such areas is not vividareas is not vivid, besides of course the interaction among them. , besides of course the interaction among them.

UNCTAD remains in the eyes of many a forum. It UNCTAD remains in the eyes of many a forum. It lacks means of lacks means of powerpower, hence the institutional setup and legal charter classify it as , hence the institutional setup and legal charter classify it as an international organization versus the supranational an international organization versus the supranational organizations (World Bank, IMF, WTO). Along this setup, ideas organizations (World Bank, IMF, WTO). Along this setup, ideas should be based to help UNCTAD have a more effective role.should be based to help UNCTAD have a more effective role.

The The widespread of issues related to developmentwidespread of issues related to development that UNCTAD that UNCTAD deals with ranging from competition policy, to investment, to deals with ranging from competition policy, to investment, to maritime and the increasing complexity of such issues diluted the maritime and the increasing complexity of such issues diluted the focus of UNCTAD.focus of UNCTAD.

What strategies UNCTAD could follow in What strategies UNCTAD could follow in order to fulfill its developmental mission and order to fulfill its developmental mission and mandates as contained in the Bangkok Plan mandates as contained in the Bangkok Plan

of Action and the Sao Paulo Consensusof Action and the Sao Paulo Consensus

A strategy should be developed to enhance the A strategy should be developed to enhance the role of UNCTAD by energizing its developing role of UNCTAD by energizing its developing members to put pressure on the major powers.members to put pressure on the major powers.

Joint collaboration with UN organizations of Joint collaboration with UN organizations of relatively similar interests as UNDP, and WHO. relatively similar interests as UNDP, and WHO.

Having extra presence in developing countries Having extra presence in developing countries through missions and sending of experts (which through missions and sending of experts (which are relatively few compared to Breton Woods are relatively few compared to Breton Woods Institutions).Institutions).

What strategies UNCTAD could follow in What strategies UNCTAD could follow in order to fulfill its developmental mission and order to fulfill its developmental mission and mandates as contained in the Bangkok Plan mandates as contained in the Bangkok Plan

of Action and the Sao Paulo Consensusof 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 Development is a wide theme, and it is extremely difficult if not impossible to have a one solution to all difficult if not impossible to have a one solution to all ills of developing countries. ills of developing countries.

That what makes the World Bank and IMF more That what makes the World Bank and IMF more hearable, which is the fact they are besides general hearable, which is the fact they are besides general reports have country specific missions and reports. reports have country specific missions and reports.

This is not the case of UNCTAD with the exception of the This is not the case of UNCTAD with the exception of the Investment Review Report carried out for some Investment Review Report carried out for some countries, but suffers from being dated (e.g. there has countries, but suffers from being dated (e.g. there has been one for Egypt in 1999, and it was mentioned that been one for Egypt in 1999, and it was mentioned that a new one has been undertaken, however not yet a new one has been undertaken, however not yet available).available).

Which are the major emerging trade Which are the major emerging trade and developments issues concerning and developments issues concerning

African countries where UNCTAD African countries where UNCTAD needs to intervene and play an active needs to intervene and play an active

role?role? Finding ways to increase the “policy space”, so that it can Finding ways to increase the “policy space”, so that it can

be implantable and not only rhetoric.be implantable and not only rhetoric.

Utilizing trade as an engine for growth and bringing Utilizing trade as an engine for growth and bringing explicitly the lack of responding to promises brought by explicitly the lack of responding to promises brought by developed countries as elimination of cotton subsidies. Just developed countries as elimination of cotton subsidies. Just even highlighting the issues will help African countries as a even highlighting the issues will help African countries as a way of embarrassing super powers.way of embarrassing super powers.

Doing extra work on regionalism so that African countries Doing extra work on regionalism so that African countries do not pursue the same mistakes and enter in preempted do not pursue the same mistakes and enter in preempted agreements.agreements.

Promoting South-South cooperation and setting pragmatic Promoting South-South cooperation and setting pragmatic steps to achieve this aim.steps to achieve this aim.

Which are the major emerging trade Which are the major emerging trade and developments issues concerning and developments issues concerning

African countries where UNCTAD African countries where UNCTAD needs to intervene and play an active needs to intervene and play an active

role?role? Finding implementation mechanisms for new slogans as Aid Finding implementation mechanisms for new slogans as Aid

for Trade.for Trade.

Building on the position of UNCTAD which is not anti Building on the position of UNCTAD which is not anti globalization but for a rather rationed globalization and globalization but for a rather rationed globalization and finding pragmatic solution that are country specific to deal finding pragmatic solution that are country specific to deal with globalization and make benefit of it.with globalization and make benefit of it.

Doing some extra empirical and policy oriented work on Doing some extra empirical and policy oriented work on areas related to capital account liberalization and exchange areas related to capital account liberalization and exchange rate regimes.rate regimes.

Dealing with “behind the border” issues that affect the Dealing with “behind the border” issues that affect the functioning of market economy by finding pragmatic functioning of market economy by finding pragmatic solutions to developing countries.solutions to developing countries.

How UNCTAD could better complement How UNCTAD could better complement by partnering with other UN by partnering with other UN

organizations for better results and to organizations for better results and to avoid duplication?avoid duplication?

For UN organizations that have in their mandate one of For UN organizations that have in their mandate one of the areas that UNCTAD focuses on (mainly trade and the areas that UNCTAD focuses on (mainly trade and development), UNCTAD should focus complement them. development), UNCTAD should focus complement them. For example, with UNDP it should focus on trade and For example, with UNDP it should focus on trade and investment whereas with WTO it should focus on investment whereas with WTO it should focus on developmental effects of trade. In other words, it should developmental effects of trade. In other words, it should utilize its comparative advantage.utilize its comparative advantage.

There is a leaning towards revisiting the orthodox main There is a leaning towards revisiting the orthodox main stream policies as has been evident by the skeptic views stream policies as has been evident by the skeptic views of some World Bank ex officials, divide between IMF and of some World Bank ex officials, divide between IMF and World Bank regarding some policies, and self criticism of World Bank regarding some policies, and self criticism of World Bank (report of what we have learned from a World Bank (report of what we have learned from a decade of reform). UNCTAD should build on such issues decade of reform). UNCTAD should build on such issues to reactivate its role and emphasize its solid position.to reactivate its role and emphasize its solid position.

How could UNCTAD increase the How could UNCTAD increase the involvement of Civil Society and involvement of Civil Society and

private sector in its work, particularly private sector in its work, particularly from developing countries?from developing countries?

The outreach of UNTAD to civil society The outreach of UNTAD to civil society organizations is very modest. It remains, so far in organizations is very modest. It remains, so far in good connection with the government, however it good connection with the government, however it does not have the ability to get in contact with does not have the ability to get in contact with civil society except through governments. This civil society except through governments. This constraint should be released in a way. constraint should be released in a way.

The Virtual Institute is an example of overcoming The Virtual Institute is an example of overcoming this constraint; however it remains short of this constraint; however it remains short of responding to a wider agenda that can be responding to a wider agenda that can be pursued.pursued.

Creating regional offices following UNDP practice Creating regional offices following UNDP practice in this regard might be a better optionin this regard might be a better option

Thank YouThank You