UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT Geneva The history of UNCTAD 1964-1984 Digitized by the Digitization and Microform Unit, UNOG Library UNITED NATIONS New York, 1985 NOTE The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Material in this publication may be freely quoted or reprinted, but acknow­ ledgement is requested, together with a reference to the document number. A copy of the publication containing the quotation or reprint should be sent to the UNCTAD secretariat. UNCTAD/OSG/286 UNITED NATIONS PUBLICATION Sales No. E.85.II.D.6 ISBN 92-1-112189-2 00500P This book, preparedtomarkthetwentiethanniversaryofUNCTAD,attempts to portray and assess the achievements of the Organisation, as seen by its sec­ retariat. It has been written by staffmembersofUNCTAD, past and present, in some cases individually and in others collectively. It does not commit the Governments of the member states of UNCTAD, nor does it commit the Secretary-General ofUNCTAD. Inanutshell, perhaps it can best be described as an attempt to review howfar memberStatesandtheUNCTADsecretariathavetogethersuccessfullypursuedthe basic aim of the Organisation, as set out by the General Assembly in itsfounding resolution, namely^ to promote international trade, especiallywithaviewto accel­ erating economic developments to formulate principles and policies on interna- tionaltradeandrelated problems of economicdevelopment^ to make proposals for putting suchprinciplesandpoliciesintoeffect^ toinitiateactionforthenegotiation and adoptionof multilateral legal instruments inthe field of trade^andtobe available asacentreforharmoni^ingthe trade andrelated development policies of Governments and regional economic groupings. The address by Mr. Gamani Corea, Secretary-General ofUNCTAD, at the meeting of the Trade and Development Poard held to commemorate the ^Oth anniversary ofUNCTAD, serves as an Introduction to the book. Part One reviews the activities and achievements in the general world econ- omiccontextandagainstthe background ofthe interdependence of economies and ofactivitiesindifferentareas.PartTwo deals with particulartopics, distinguished broadly along the lines of the various programmes adopted by UNCTAD inter­ governmental organs and the corresponding work of the secretariat. Part Three covers other specific areas ofUNCTAD work within the overall United Nations framework. Part Pour contains an organisational chart of the intergovernmental machinery ofUNCTAD,alistofselectedUNCTADmeetingsandalistofselected reports and studies. ^ Blank page Page blanche CONTENTS Address by Mr.Gamani Corea, Secretary-General ofUNCTAD, at the commemorative meeting on the ^Othanniversary ofUNCTAD . 1 P^rtOn^ TI^EEVOEUTION^P^IEO^OPIT^ AND ACHIEVEMENTS OP UNCTAD A. The economic and political setting 7 13.The philosophical and political origins ofUNCTAD ^ С Evolution ofUNCTAD^s philosophy and programmes 10 Commodity policy 1^ Money and finance 1^ Trade and industrialisation 1^ Shipping 17 Technology 1^ D.UNCTAD and its progress towards universalism 1^ Thefullerparticipationofthe socialist countries ofEastem Europe in the world economy 1^ Economic co-operation among developing countries ^1 E. homogeneity versus differentiation of developing countries ^ P. UNCTAD and developing countries^ domestic economic policies . ^ G. Institutional aspects ^ Internal aspects^ evolution of UNCTAD^s institutional machinery ^ Externalaspects^relationshipwiththeGeneralAssemblyandother United Nations bodies and specialised agencies ^7 Role ofthe Secretary-General ofUNCTAD Bll H.Decision-making and the meaning of consensus ^ I. Conclusion ^ ^ T^O DECADES OP ENDEAVOUR ^^^ ^^^^^^^^^ I. COMMODITIES ^3 A. History ofUNCTAD commodity policy initiatives ^ The pre-1^^ period ^3 UNCTADI^^ ^ UNCTADII^^ ^ UNCTADIII^7^ ^1 UNCTADIV^7^ ^3 UNCTADV^7^ ^ UNCTADVI^^ ^ P. Evaluation 70 С Problems and tasks of thefuture 73 II. MONE^,EINANCE ANDDEVELOP^IENT 7^ A.Introduction 7^ P. International monetary and financial issues 77 International monetary issues 77 Pinancing of export shortfalls 7^ Pinancing of structural payments imbalances ^1 Liquidity needs and reserve asset creation ^ Reform ofthe international monetary system ^ Financial resourcesfor development ^7 Volume terms and conditions of financial flows . ^ Multilateral development finance ^1 Private flows ^ Debt problems of developing countries ^ Mobilisation of domestic resources ^7 С Overall appraisal and tasksfor the future ^ III.UNCTAD^S ACTIVITIES IN TIRADE AND INDUSTRIALISATION POLICIES, V^ITH SPECIAL ^EEEI^ENCE TO TIRADE IN ^lANUEACTUI^ES 10^ A.Nature and evolution of the problems 10^ P. Principal policy initiatives and their results 10^ The generalised system of preferences 10^ Restrictive business practices 11^ Non-tariff measures 11^ Structural adjustment related to trade 11^ Services 1^ С The international trading systems summary ofissues and tasks forthefuture 1^ ^ IV.Si^ippiNC 130 AThe shipping scene priortoUNCTADI 130 P.UNCTADTthe launching ofaprocess 13^ С Overall view ofthe development ofUNCTAD activities in the f^eld of shipping 13^ The liner conference system and the liner Code 13^ International shipping legislation 1^ Shippers^ interests 1^ Merchant fleet development 1^ The open registry issue 1^ Ports 1^ Multimodal transport and containeri^ation 1^0 D. Problems and challenges of thefuture 1^ V. Tl^ANSEEI^ OETECITNOLOOV^ TECHNOLOCVISSUES^EI^O^I IDEAS TO ACTION IN UNCTAD ^70-1^ 1^ A.Introduction 1^ P. The conceptualframeworkofUNCTAD^s initiatives in techno­ logy 1^ C. Technology initiatives in UNCTAD^ their evolution 1^1 The scene in the early 1^70s 1^1 UNCTAD^s unique role 1^3 Selected initiatives ofUNCTAD on technology 1^ D.New directives for action during the l^Os 1^ The central role of the Conference 1^ NewinitiativesofUNCTAD VI Belgrade 1^3^ 1^7 E. Some concluding reflections 1^ VI. NATURE AND EVOLUTION OET^ADE DELATIONS A^ONC COUNTRIES HAVINCDIEEEI^ENT ECONOMIC AND SOCIAL SVS^E^S 170 Alntroduction 170 P. Principal policy initiatives undertaken inUNCTAD 170 UNCTADI 170 UNCTADII 17^ UNCTADIII 173 UNCTADIV 17^1 UNCTADV 17^ UNCTADVI 177 C. Overall evaluation 17^ VII. ECONOMIC CO-OPERATION A^ONO DEVELOPING COUNTRIES 1^ A. historical evolution of UNCTAD^sinvolvement in economic co-operation among developing countries 1^ The situation before 1^ 1^ The introduction ofECDC into UNCTAD^sformal work programme 1^3 Intergovernmental guidance in the formulation of UNCTAD^s work programme prior to 1^77 1^ Mexico CityProgrammeonECDCandthe establishment of aCommitteeonECDC 1^ The Arusha Programme for Collective Self-Reliance . 1^7 UNCTAD^s deepening involvement with the global system of trade preferences ^GSTP^ 1^ The Caracas Programme ofAction^ the decentralisation of ECDC activities by the Group of77 1^ P. Principal policy initiatives^ description, results and evolution . 1^ Economic integration 1^ Monetary and financial co-operation 1^ Global system oftrade preferences among developing coun­ tries ^ Co-operation among State trading organisations ^STOs^ . ^0^1 Multinational marketing enterprises ^MMEs^ ^ Multinational production enterprises ^MPEs^and^oint ven­ tures ^Vs^ ^ C. Problems and tasksforthefuture ^0^ VIII.UNCTAD ACTIVITIES ON BEHALE OP THE LEAST DEVELOPED, LAND­ LOCKED AND ISLAND DEVELOPING COUNTRIES ^0^ A. Least developed countries ^ Policyinitiatives within UNCTAD ^ Theevolutionin the perception ofleast developed countries^ problems ^1^ A brief evaluation of the impact ofUNCTAD^s efforts.. ^13 Tasksforthefuture ^1^1 P. Land-locked and island developing countries ^ Land-locked developing countries ^1^ Island developing countries ^1^ D^. INSURANCE ^1 A. Insurance in developing countries prior tol^^ ^1 P.The role and activities ofUNCTAD in the field ofinsurance. ^^ C. Present market structure and its evolution ^3 D. Future actions ^ ^ Part Three OTHER ACTIVITIES IN THE FIRST TWENTY YEARS Page I. OPERATIONAL ACTIVITIES 229 A. Packground 229 P. Main fields of operational activities 232 II. SPECIAL PROGRAMME ON TRADE FACILITATION (FALPRO) 242 A. Nature and evolution of trade facilitation 242 P. Main results of FALPRO's activities 244 С Problems faced in carrying out trade facilitation 245 D. Tasks for the future 246 III. UNCTAD AND DISARMAMENT 248 IV. ASSISTANCE TO NATIONAL LIBERATION MOVEMENTS 252 A. Introduction 252 P. Economic and Social Survey of Zimbabwe 252 С UNCTAD V 253 D. UNCTAD VI 255 E. Concluding remarks 256 V. UNCTAD AND ENVIRONMENTAL PROBLEMS 257 Part Four ANNEXES I. ORGANIZATIONAL CHART OF THE INSTITUTIONAL MACHINERY OF UNCTAD 269 II. SELECTED LIST OF UNCTAD MEETINGS 270 III. SELECTED LIST OF REPORTS AND STUDIES 283 ix THE CHALLENGE OF CHANGE Address by Mr. Gamani Corea, Secretary-General of UNCTAD, at the commemorative meeting on the 20th anniversary of UNCTAD * I make these remarks on the twentieth anniversary of the United Nations Conference on Trade and Development, deeply conscious of the enormous privi­ lege I have enjoyed of serving as its Secretary-General over a period of more than half of its existence. I feel this sense of privilege, and indeed of pride, all the more strongly when, on an occasion such as this, I reflect on the nature and role of UNCTAD—what it stands for, and what it has done over these last 20 years. Pefore I comment