2. INTRODUCTION OF UNCTAD
o UNCTAD stands for United Nations Conference on Trade and
Development.
o UNCTAD is a permanent intergovernmental body established by the
United Nations General Assembly in 1964.
o Headquarters are located in Geneva, Switzerland, and have offices in
New York and Addis Ababa.
o UNCTAD is part of the UN Secretariat.
o UNCTAD is the principal organ of the United Nations General
Assembly dealing with trade, investment, and development issues.
3. 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.
Head: Secretary-General; Rebeca Grynspan
Parent organization: United Nations General Assembly; United
Nations Secretariat
Headquarters location: Geneva, Switzerland
Formation: 30 December 1964; 56 years ago
Founder: United Nations General Assembly.
Members: 195 countries.
4. FUNCTIONS
To promote international trade with a view to
accelerating economic development.
To formulate principles and policies on international
trade and related problems of economic development.
To negotiate multinational trade agreements.
To make proposals for putting its principles and polices
into effect.
5. BASIC PRINCIPLES:
Every country has the sovereign right freely to dispose of its
natural resources.
Economic relations between countries.
There shall be no discrimination on the basis of difference in
socio-economic systems.
Greater market access for the products of the less developed
countries.
Reduction in tariff and non-tariff restrictions on trade.
7. THE CONFERENCE
The highest decision-making body of UNCTAD is the
quadrennial conference.
It is a subsidiary organ of the United Nations General
Assembly.
It serve an important function.
The board manages the work of UNCTAD between two
conferences and meets up to three times every year;
8. THE TRADE AND DEVELOPMENT BOARD
UNCTAD's works is guided by the Trade and
Development board.
Board membership is open to all members of UNCTAD,
and accredited inter-governmental and non-governmental
organizations.
9. THE COMMISSIONS
The Trade and Development Board currently consists of 3
Commissions.
Commission on Trade in Goods and Services Commodities.
Commission on Investment, Technology and related Financial Issues.
Commission Development. on Enterprise, Business Facilitation and
Development.
o UNCTAD secretariat also services the Commission on
Science and Technology for Development.
o It allows governments to exchange views on policy issues in
their respective ambits.
10. EXPERT MEETINGS
The work of the commission is supported by discussions
among specialized technical experts.
Up to 10 meetings are conducted in every year.
Allows the government representatives attending the
commission.
The commissions will convene expert meetings on
selected topics to provide substantive and expert input
for Commission policy discussions.
11. THE SECRETARIAT STRUCTURE
Headed by a Secretary.
Current UNCTAD Secretary-General is Rebeca
Grynspan and he took office on 11 June 2021
12. MAIN ACTIVITIES
Trade and Commodities.
Investment, Technology and Enterprise Development.
Macroeconomic Polices, Debt and Development Financing.
Transport, Customs and Information Technology.
Special program for least developed, landlocked developing
and small island developing countries.
13. SOME ACHIEVEMENTS OF UNCTAD
One of the principal achievements of UNCTAD has been
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 .
14. CONCLUSION
Thus UNCTAD organization acts like a bridge between
the developing and developed countries to increase their
economy of the country.
16. INTRODUCTION OF IMF
IMF stands for INTERNATIONAL MONETARY FUND.
International Monetary Fund (IMF) was created on 27 December
1945, it is also known as 'The Fund'.
The International Monetary Fund (IMF) is an organization of 190
countries,
working to foster global monetary cooperation,
secure financial stability,
facilitate international trade,
promote high employment and sustainable economic growth,
and reduce poverty around the world.
o HQ: Washington D.C.
o Mem. Countries: 190
o MD of IMF: Kristalina Georgieva.
17. OBJECTIVES:
To promote international monetary co-operation.
To promote international trade.
To promote employment.
To foster sustainable economic growth and reduce poverty.
To secure financial stability – through exchange rate
stability and helping members during 'balance of
payments' needs.
18. FUNCTIONS
Provides Financial Assistance: To provide loans to member countries
to replenish international reserves, stabilize currencies and strengthen
conditions for economic growth.
IMF Surveillance: It oversees the international monetary system and
monitors the economic and financial policies of its member countries.
Capacity Development: It provides technical assistance and training to
central banks, finance ministries, tax authorities, and other economic
institutions. It also helps countries to make progress towards the
Sustainable Development Goals (SDGS).
IMF also helps in fight against money-laundering and terrorism
financing.
19. GOVERNANCE STRUCTURE
Board of Governors:
Highest decision making body.
It consists of one Governor and one alternate Governor for each
member country.
It has rights to approve quota increase; admittance of new
members; SDR allocations; and amendment to Article of
Association and Bye Laws.
o This Board is advised by two ministerial committees:
20. CON..
1. International Monetary and Financial Committee (IMFC):
IMFC has 24 members representing all member countries.
It discusses the management of the international monetary
and financial system and any other matters of common
concern affecting the global economy. World Bank is
merely a observer in it.
2. Development Committee: It is a joint committee of IMF
and World Bank (25 members). It advises on issues related
to economic development in emerging market and
developing countries.
o Executive Board:
It is a 24 member board which discusses all the aspects of
the IMF.
The Board normally makes decisions based on consensus,
but sometimes formal votes are taken.
21. TYPES OF LOANS
IMF is comprised of 4 key credit lines:
1. FCL (Flexible Credit Line): This is given to the
countries usually before they get into a problem.
They are the ones with better policies.
2. PLL (Precautionary Lending): This is for the
countries that are beginning to get weak.
3. SBA (Stand By Arrangement): This is given to the
countries that are quite weak, but can be rescued
quickly.
4. EFF (Extended Fund Facility): This is for the
countries that are in a lot of trouble and will need a
help for a long time.
22. Funding of IMF
1. Quota Subscription.
2. Multilateral and Bilateral Borrowings:
General arrangements to Borrow (GAB):
Under this, IMF borrow amount from 11
industrial countries at market rate of interest.
It has lapsed.
New Arrangements to Borrow (NAB):
Under this, IMF borrows from 40 member
countries. India also have lent IMF under
NAB.
23. Lending by IMF
IMF lends only to member countries.
IMF lends not only during crises but also before crises to
prevent them.
IMF never lend for specific projects.
IMF provides both concessional (to low income countries)
and non-concessional loans.
Conditionality are, in most cases, an integral part of IMF
lending.
24. IMF QUOTA
Each member country is assigned a Quota based broadly on
its relative size in the world economy.
This relative size is calculated on the basis of a member
country's GDP, its economic openness, its "economic
variability" and Forex reserves.
Quotas are denominated in Special Drawing Rights (SDRS).
The share of Quota of a member guides its resource
contribution, voting power, access to financing and SDRS
Allocation in IMF.
After 2016 reforms, India's Quota is 2.75% (earlier 2.44%)
and voting power is 2.63% (earlier 2.34%).
25. SPECIAL DRAWING RIGHTS
SDR is an international reserve asset created (in 1969) to
supplement its member countries' official reserves.
The value of an SDR is defined by a weighted average of
currency basket of 5 major currencies:
the US dollar (41.73%),
Euro (30.93%),
British pound (8.09%),
Chinese Yuan (10.92%), and
the Japanese yen (8.33%).
SDR is neither a currency, nor a claim on the IMF. Rather, it is
a potential claim on the freely usable currencies of ÌME
members.
SDRS are not traded in the Forex market like other national
currencies but can be exchanged between countries.
26. PUBLICATIONS AND REPORT BY UNCTAD & IMF
UNCTAD REPORTS
The Trade and Development Report.
The Trade and Environment Review.
The World Investment Report.
The Economic Development in Africa Report.
The Least Developed Countries Report.
Digital Economy Report.
The Review of Maritime Transport.
The Technology and Innovation Report.
IMF Publications
World economic Outlook
Global Financial Stability Report.