UN Trade and Development

The United Nations Conference on Trade and Development, known since its sixtieth anniversary in 2024 as UN Trade and Development (UNCTAD), is an intergovernmental organisation within the United Nations Secretariat that focuses on promoting the trade and development interests of developing countries. Established in 1964 by the United Nations General Assembly, it emerged from concerns that existing international economic institutions did not adequately address the challenges faced by developing economies. With a permanent secretariat in Geneva, Switzerland, and reporting to both the General Assembly and the Economic and Social Council, UNCTAD has become a central forum for international dialogue on trade, development finance, technology, and economic cooperation.

Origins and purpose

UNCTAD was created at a time when many developing countries had recently gained independence and sought equitable integration into the global economy. Governments in the Global South argued that global trade structures, dominated by institutions such as the General Agreement on Tariffs and Trade (GATT), the International Monetary Fund (IMF) and the World Bank, did not sufficiently address their economic vulnerabilities, particularly those related to commodity dependence, limited export diversification and unstable earnings.
The organisation’s core mandate is to formulate development-oriented policies that encompass trade, finance, transport, technology and investment. Its analytical work, policy recommendations and technical cooperation programmes seek to support inclusive, sustainable growth and to help countries overcome structural constraints.
One of UNCTAD’s most influential achievements was the conceptualisation and implementation of the Generalized System of Preferences (GSP), which grants preferential market access for manufactured exports from developing countries. During the 1970s and 1980s, UNCTAD was closely associated with the movement for a New International Economic Order (NIEO), which aimed to redress global inequalities and give developing countries greater control over their economic futures.

Membership and regional groupings

UNCTAD consists of 195 member states, comprising all United Nations Member States plus two observers—the Holy See and Palestine. Members are organised into four lists based broadly on the UN regional groups, with six states unassigned. The lists are used to ensure balanced geographical representation on the Trade and Development Board and other governing bodies:

• List A (100 members): includes states from Africa, Asia, the Pacific and several small island developing states
• List B (32 members): largely Western European and Other Group states
• List C (33 members): Latin American and Caribbean states
• List D (24 members): Eastern European states

Unassigned states include Kiribati, Nauru, South Sudan, Tajikistan and Tuvalu. Some territories such as the Cook Islands and Niue, along with states with limited recognition, do not participate.
UNCTAD also works with over 400 staff members and operates with a biennial core budget supplemented by extensive extrabudgetary resources, much of which supports technical assistance in developing countries. It is also a member of the UN Sustainable Development Group, linking its work directly to the 2030 Agenda for Sustainable Development.

Conference system and organisational structure

UNCTAD’s intergovernmental operations take place across five levels of meetings:

• UNCTAD Conference: convened every four years to set broad policy directions and evaluate progress
• Trade and Development Board: meets up to three times a year to oversee work between Conferences
• Commissions and Working Party: address policy, programme and budget issues
• Expert Meetings: provide specialised technical advice on selected themes
• Ad hoc events and thematic discussions: support cooperation on emerging issues

Fifteen quadrennial conferences have been held since 1964, with the most recent conducted virtually in Bridgetown, Barbados, in October 2021 due to the COVID-19 pandemic.

Early conferences and policy evolution

The first UNCTAD Conference in Geneva in 1964 responded directly to developing countries’ concerns over declining terms of trade and commodity price volatility. It helped trigger the creation of new IMF facilities for dealing with shortfalls in commodity export earnings and paved the way for the establishment of the GSP. Argentine economist Raúl Prebisch, a leading figure in dependency theory and former Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), was appointed UNCTAD’s first Secretary-General, shaping its early intellectual direction.
At the New Delhi Conference of 1968, developing countries negotiated principles for development policy and successfully pressed for expanded preference schemes to support their exports. Although the target for aid flows to least developed countries was increased, industrialised countries did not agree to a fixed timetable, leaving the issue as a recurring point of debate.
The Santiago Conference of 1972 addressed the global monetary system and proposals for allocating greater shares of new Special Drawing Rights (SDRs) to developing countries. Internal divisions within the Group of 77 (G77) weakened the negotiating position, and final decisions centred on further study rather than immediate reform.
By UNCTAD IV in Nairobi (1976), conditions had shifted due to the 1973 Oil Crisis. Developing countries sought leverage through commodity production, resulting in the adoption of the Integrated Programme for Commodities, aimed at stabilising prices and ensuring fair remuneration for producers. The subsequent conference in Manila in 1979 continued negotiations on commodity issues, tariffs and global trade reform.

Programmes, research and technical cooperation

UNCTAD’s work spans economic analysis, policy formulation and hands-on technical cooperation. Key areas include:

• Trade and market access: supporting developing countries in negotiations and improving their participation in global value chains
• Technology and innovation: helping countries build digital infrastructure and adopt new technologies
• Investment and enterprise development: monitoring global investment trends and promoting sustainable investment frameworks
• Transport and logistics: analysing maritime trade, port operations and regional connectivity
• Debt and finance: providing tools for debt management and macroeconomic resilience
• Commodity markets: addressing volatility and long-term structural issues
• E-commerce and digital economy: developing regulatory and institutional capacity for online trade

Its policy research is widely used by governments and international organisations. Publications such as the Trade and Development Report, World Investment Report, Least Developed Countries Report and Technology and Innovation Report shape global debates on development strategy.

Relationship with developing countries

UNCTAD has historically served as the principal forum for the expression of developing countries’ collective economic concerns. Through the G77 and other coalitions, these states have used UNCTAD to articulate shared positions on trade imbalances, structural inequality, technology transfer and aid commitments. The organisation has therefore played a pivotal role in international development discourse, even when its reform proposals have not been fully implemented.
Its alignment with the New International Economic Order during the 1970s reflected broader movements for global restructuring, although political resistance from industrialised countries limited the realisation of many NIEO objectives. Nonetheless, UNCTAD continues to advocate for equitable growth, inclusive trade systems and reforms that support the developmental aspirations of the Global South.

Contemporary relevance

Today, UNCTAD addresses complex challenges in a rapidly changing global economy. These include:

• narrowing the digital divide
• responding to climate-related vulnerabilities
• supporting vulnerable economies such as least developed countries, land-locked developing states and small island developing states
• reducing structural dependence on commodities
• promoting sustainable financing and debt sustainability
• ensuring fair integration into global value chains