By Javier Surasky-
Suppose you
have an interest in international affairs. In that case, the mention of the
1960s may trigger a cascade of consequential events in your memory: humanity’s
moon landing, the Cuban Missile Crisis, the construction of the Berlin Wall,
the decolonization of Africa, the assassination of JFK, Vietnam, the French
May, Martin Luther King with his “I have a dream” speech, and even the
establishment of ARPANET, the precursor to today’s Internet.
It was a
decade where the tensions of the Cold War intermingled with aspirations for a
different world, one that seemed to be just around the corner, awaiting its
chance to emerge. These were times when the specter of nuclear terror did not
prevent the free flight of dreams toward what we would now call “a fairer
world.”
In this
context, the United Nations Conference on Trade and Development (UNCTAD)
convened on July 15, 1964. Initially called as a one-time international
conference, this gathering evolved to establish a new United Nations body
through resolution 1995 (XIX) of the UN General Assembly on December 30, 1964.
Spawned
from the political impetus given by the newly formed Group of 77, the principal
architect behind this conference was Raúl Prebisch. Formerly the Executive
Secretary of the United Nations Economic Commission for Latin America (ECLAC),
he became the principal architect of the UNCTAD's final act negotiations,
serving as its first Director. Under his leadership, UNCTAD began working to
achieve its goals, which included:
- Promoting international trade that would boost economic development.
- Formulating principles and policies on international trade and its implications for economic development.
- Reviewing and facilitating the coordination of the activities of other institutions within the United Nations system in international trade and economic development.
UNCTAD’s
creation marked a milestone in developing countries' long history of demands to
improve their international economic integration. This history also includes
the establishment of the International Development Association (IDA) within the
World Bank Group in 1960.
Both institutions were created despite strong
opposition from developed countries, and were part of the fight for the
establishment of a New International Economic Order, which led to the adoption,
in 1974, of resolutions 3201 (S-VI), “Declaration on the Establishment of a New
International Economic Order," and 3202 (S-VI), Program of Action on the
Establishment of a New International Economic Order.
Finding an identity
Since its
inception, the UNCTAD's roller-coaster journey fortune has been tied to the
ability of developing countries to maintain their claims and power on the
international stage. Therefore, it is unsurprising that with the onset of the
1980s, known as the "lost decade for development," UNCTAD's capacity
and appeal diminished. Initially, UNCTAD firmly positioned itself as a forum on
trade as a tool for economic development, aligned with the theory of import
substitution industrialization, and as early as 1971, established the
Generalized System of Preferences (GSP).
Changes in
international economic and trade conditions, marked by rising interest rates
and collapsing commodity prices, led to 1982 Mexico's default, initiating a
shift that brought UNCTAD closer to market-based development theories. It
became an unlikely ally to advocates of trade liberalization, deregulation, and
the privatization of state-managed companies. In the words of Marc Mazower,
UNCTAD "turned into a harmless accessory to the extraordinary
transformation of capitalism that now took place under President Reagan and his
successors." [1]
Unsurprisingly,
within this new framework, UNCTAD increased its focus on the global management
of the economy, including issues of international monetary management and
external financing for national development.
The
scenario shifted dramatically again from 1990: not only was the Cold War
ending, but with it, the notion of a globally integrated economy reached its
zenith. UNCTAD then turned its attention to analyzing factors that impact the
promotion of multinational companies' access to developing countries.
The 1992
UNCTAD meeting in Cartagena demonstrated the drastic setback in the capacities
of Southern countries to set the agenda post-Cold War. It was not only asserted
that private enterprise and market freedom were the drivers of international
trade and development, but issues such as combating corruption and public
management inefficiency became central in the Conference’s political agenda,
whose mandate was modified to now focus on “analysis; intergovernmental
deliberation, consensus-building, and negotiation; monitoring, implementation,
and follow-up; and technical cooperation" (A New Partnership for
Development: The Cartagena Commitment, paragraph 49).
The change
was so profound that the final report of the Commission on Global Governance,
created by the UN in 1992, called for the “dismantling” of UNCTAD (p.113). On
top of that, the 1992 UN Conference on Environment and Development’s impacts on
development thinking and the 1995 creation of the World Trade Organization made
it more challenging for UNCTAD to carve out its niche in world politics.
The
organization's uncertainty and quest for repositioning from the early 2000s are
well epitomized by the events leading up to the election of Supachai
Panitchpakdi as its Secretary-General. Panitchpakdi had been endorsed by the
G-77 for the WTO directorship in 1999 and served from 2002 to 2005. When a new
UNCTAD Secretary-General was to be chosen in 2005, candidates proposed by then
UN Secretary-General Kofi Annan declined the offer, and Panitchpakdi was
approached. The G-77 reacted coolly to having a former WTO Director-General
helm UNCTAD, which did not prevent Panitchpakdi from holding the position from
2005 to 2013.
To ease
tensions, Panitchpakdi formed an Advisory Group consisting of Eminent
Personalities, including Fernando Henrique Cardoso and Gro Harlem Brundtland,
to counsel on the role UNCTAD should play. Yet, this group struggled to find a
distinct place for UNCTAD in the international arena.
The global
economic crisis of 2007-2008 finally gave UNCTAD a fresh “raison d'être.” Its
efforts shifted toward highlighting the flaws of industrialized economies and
their impacts on trade and the international financial system, calling into
question the deregulation and diminishing economic agency of the state. In
finding its footing, UNCTAD was returning to its roots.
Today's UNCTAD
Now more
committed to developmental issues than in the past and deeply engaged in
advocating for the principles of developing countries within the framework of
the Sustainable Development Goals adopted by the United Nations in 2015, UNCTAD
continues its pursuit to reclaim a position of greater significance.
The
conditions that necessitated its creation are long past. Yet, the underlying
needs that led to its establishment remain and have arguably intensified:
developmental disparities, rising poverty and hunger, economic consequences of
climate change, growing inequities, and the potential of trade as a catalyst
for development.
To these
enduring issues are now added new ones: the needs of future generations, the
impacts of digital technologies on trade and development, digital commerce –
the list is endless and expands with time.
The role of
UNCTAD will continue to be linked to the capabilities and power of those aiming
to eradicate poverty, prioritize environmental stewardship over profit, bridge
divides, and discover effective tools for promoting sustainable development.
Sixty years
after its founding, UNCTAD’s destiny might be that of any wooden raft in
turbulent waters: it can be helpful for anybody in the water, yet incapable of
influencing wave’s fury, which will only cease when the conditions that created
them cease to exist.
[1]
Mazower, Mark (2012), Governing the World: The History of an Idea. London:
Penguin Press, 317.