Bangabandhu Sheikh Mujibur Rahman Science &Technology

University
Gopalganj-8100

Assignment On
United Nations Conference on Trade and Development (UNCTAD)
Course Name: Management of International Trade & Finance
Course Code: MGT 401
Submitted by Submitted to

Name & Student ID

Name: Tanmay Borman
Nure Jannat Supti(16MGT015)
Assistant Professor, Dept. of
Sabatun Millat Mim(16MGT021)
Finance & Banking
Md Sumon Ali(16MGT025)

Shanjida Ayrine(16MGT031) BSMRSTU

Mst. Tanzila Khatun(16MGT033)

Shrabonti Majumder(16MGT043)

Md. Ashraf Hossen(16MGT044)

Dept. of Management Studies

BSMRSTU
 Department of Management Studies
Date of Submission: August 03, 2021
UNCTAD

Overview of the UNCTAD organization:

The united nations conference on trade and development (UNCTAD) was established in 30
December 1964 as an intergovernmental organization. Our headquarters are located in Geneva,
Switzerland, and we have offices in New York and Addis Ababa. The Secretary general Mr.
Rubens Ricupero from Brazil, since 1995.
United nations general assembly dealing with trade, investment and development issues. It is
also the united nations focal point for the least developed countries. UNCTAD serving the
citizens of the 195 countries that make up our organization. The goal is prosperity for all. They
support developing countries to access the benefits of a globalized economy more fairly and
effectively.
The main goal of the organization is maximizing the trade, investment and development
opportunities of developing countries and assist them in their efforts to integrate into the world
economy on a equitable basis.
The budget of UNCTAD US$ 45 million a year from the united nations regular budget and US$
24 million from extra budgetary resources.

UNCTAD has progressively evolved into an authoritative knowledge-based institution whose

work aims to help shape current policy debates and thinking on development, with a particular
focus on ensuring that domestic policies and international action are mutually supportive in
bringing about sustainable development.
Its objective is to assist developing countries, especially the least developed countries, and
countries with economies in transition, to integrate beneficially into the global economy. It also
seeks to help the international community promote a global partnership for development,
increase coherence in global economic policy making, and assure development gains for all from
trade .One of the principal achievements of UNCTAD (1964) has been to 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 import of 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.
The creation of UNCTAD in 1964 was based on concerns of developing countries over the
international market, multi-national corporations, and great disparity between developed nations
and developing nations. The United Nations Conference on Trade and Development was
established to provide a forum where the developing countries could discuss the problems
relating to their economic development. The organization grew from the view that existing
institutions like GATT (now replaced by the World Trade Organization, WTO), the 
International Monitory Firm (IMF), and World Bank were not properly organized to handle the
particular problems of developing countries. Later, in the 1970s and 1980s, UNCTAD was
closely associated with the idea of a New International Economic Order (NIEO).

Overview about getting membership from UNCTAD of Bangladesh

Bangladesh achieved membership in the United Nations Conference on Trade and Development
(UNCTAD) on 20 May 1972. At that time Bangabandhu Sheikh Mujibur Rahman was the Prime
Minister of Bangladesh.

Currently, UNCTAD has 195 member states and is headquartered in Geneva, Switzerland.
UNCTAD has 400 staff members and a bi-annual (2010–2011) regular budget of $138 million in
core expenditures and $72 million in extra-budgetary technical assistance funds. It is a member
of the United Nations Development Group. There are non-governmental organizations
participating in the activities of UNCTAD. As of May 2018, 195 states are UNCTAD members,
all UN members plus UN observer states Palestine and the Holy See. UNCTAD members are
divided into four lists, the division being based on United Nations Regional Groups with six
members unassigned: Armenia, Kiribati, Nauru, South Sudan, Tajikistan, Tuvalu. List A consists
mostly of countries in the African and Asia-Pacific Groups of the UN. List B consists of
countries of the Western European and Others Group. List C consists of countries of the Group
of Latin American and Caribbean States (GRULAC). List D consists of countries of the Eastern
European Group.

The lists, originally defined in 19th General Assembly resolution 1995 serve to balance
geographical distribution of member states' representation on the Trade Development Board and
other UNCTAD structures. The lists are similar to those of UNIDO, an UN specialized agency.
UNCTAD is the part of the United Nations Secretariat dealing with trade, investment, and
development issues. 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". UNCTAD was established by the United Nations
General Assembly in 1964 and it reports to the UN General Assembly and United Nations
Economic and Social Council.

Activities of UNCTAD:
The United Nations Conference on Trade and Development was established to provide a forum
where the developing countries could discuss the problems relating to economic problems.
UNCTAD is the part of the United Nations Secretariat dealing with trade, and development
issues. Their main activities are-
● To promote international trade all over the world-between developed and developing
countries with different socio-economic system.
● To formulate principles and policies on international trade and related problems of
economic development.
● To make proposal for putting the said principles and policies into effects.
● To review and facilitate the co-ordination of activities of the other institutions within the
U.N. system in the field of international trade.
● To be available as a center for harmonious trade and related documents in the
development policies of governments.

The primary objectives of UNCTAD is to formulate policies relating to all aspects of

development including trade and commodities, investment and enterprise, aid, transport, finance
and technology. 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 word
economy on an equitable basis. Such as-
Trade and commodities
Commodity diversification and development: Promotes the diversification of production and
trade structures. Helps Governments to formulate and implement diversification policies and
encourages enterprises to adapt their business strategies and become more competitive in the
world market.
Competition and consumer policies: Provides analysis and capacity building in competition
and consumer protection laws and policies in developing countries. Publish regular updates of a
Model Law on Competition.
Trade Negotiations and Commercial Diplomacy: Assists developing countries in all aspects of
their trade negotiations.
Trade Analysis and Information System (TRAINS): Comprehensive computer-based
information system on trade control measures that uses UNCTAD’s database. The CD-ROM
version includes 119 countries.
Trade and environment: Assesses the trade and development impact of environmental
requirements and relevant multilateral agreements and provides capacity-building activities to
help developing countries participate in and derive benefits from international negotiations on
these matters.

Investment and enterprise development

International investment and technology arrangements: Helps developing countries to
participate more actively in international investment rule making at the bilateral, regional and
multilateral levels.
Investment Policy Reviews: Intended to familiarize Governments and the private sector with
the investment environment and policies of a given country. Reviews have been carried out in a
number of countries, including Ecuador, Egypt, Ethiopia, Mauritius, Peru, Uganda and
Uzbekistan.
Investment guides and capacity building for the LDCs: Some of the countries involved are
Bangladesh, Ethiopia, Mali, Mozambique and Uganda.
EMPRETEC: Promotes entrepreneurship and the development of small and medium-sized
enterprises.
Technology and Logistics
ASYCUDA program: Integrated customs system that speeds up customs clearance procedures
and helps Governments to reform and modernize their customs procedures and management.
Installed in over 80 countries, ASYCUDA has become the internationally accepted standard for
customs automation.
ACIS program: Computerized cargo tracking system installed in 20 developing countries of
Africa and Asia.
E-Tourism Initiative: Linking sustainable tourism and Information and communication
technologies (ICTs) for development, UNCTAD has developed this Initiative to help developing
countries' destinations to become more autonomous by taking charge of their own tourism
promotion by using ICT tools.
Technology: Services the UN Commission on Science and Technology for Development and
administers the Science and Technology for Development Network; carries out case studies on
best practices in transfer of technology; undertakes Science, Technology and Innovation Policy
Reviews for interested countries, as well as capacity-building activities.
The 15 March session was chaired by the Secretary of the Ministry of Industries, K.H. Masud
Siddiqui, who said Bangladesh considers private investment, including foreign direct investment,
to be at the center of its development strategy. UNCTAD’s assistance on investment policy falls
within the overall United Nations strategy for economic development in Bangladesh.

Bangladesh have got benefits after becoming the member of UNCTAD

Globalization, including a phenomenal expansion of trade, has helped lift millions out of
poverty. But not nearly enough people have benefited. And tremendous challenges remain.

UNCTAD support Bangladesh to access the benefits of a globalized economy more fairly and
effectively. And UNCTAD help equip our country to deal with the potential drawbacks of
greater economic integration. To do this, UNCTAD provide analysis, facilitate consensus-
building, and offer technical assistance. This helps us to use trade, investment, finance, and
technology as vehicles for inclusive and sustainable development.

Working at the national, regional, and global level, UNCTAD efforts help Bangladesh to:

● Achieve beneficial integration into the international trading system

● Diversify economies to make Bangladesh less dependent on commodities
● Limit our exposure to financial volatility and debt
● Attract investment and make it more development friendly
● Increase access to digital technologies
● Promote entrepreneurship and innovation
● Help local firms move up value chains
● Speed up the flow of goods across borders
● Protect consumers from abuse
● Curb regulations that stifle competition
● Adapt to climate change and use natural resources more effectively
Bangladesh Poised to Benefit from E-Commerce Boost after Laying “Exemplary” Digital
Foundation:

1. Geneva, 1 April 2019 – Bangladesh has laid an an essential foundation for a technology-
driven and skill-based digital economy, a new report by UNCTAD says, but still needs to
put in place a comprehensive national e-commerce strategy and improve delivery
logistics.
2. A Rapid E-Trade Readiness Assessment, completed by UNCTAD at the request of the
Bangladesh government, pinpoints improvements in telecommunications infrastructure,
trade logistics, payment solutions, laws and regulations, skills development, and
financing, that can accelerate e-commerce and spread the benefits throughout the
economy.
3. “All commercial activities are going to be digital, and all current business laws,
regulations and policies are to be made compatible with the digital commerce
revolution,” Mustafa Jabber, Bangladesh’s Minister, Ministry of Post,
Telecommunication and Information Technology, said as he received the assessment.
4. “It is fantastic to see the great strides that Bangladesh has taken to prepare for a digital
future. This e-Trade Readiness Assessment also recognizes that there are growth and
employment gains yet to be made by a comprehensive pivot to e-commerce,” Shamika N.
Sirimanne, director of UNCTAD’s division on technology and logistics, said.
5. The tech sector is a natural fit in the country’s development trajectory to create jobs for
the 110 million under 35-year-olds in the nation of 160 million. With 65% of
Bangladesh’s people living in rural areas, connectivity remains a priority.

UNCTAD work mainly with governments, to effectively deal with the magnitude and
complexity of meeting the Sustainable Development Goals, UNCTAD believe that partnerships
and closer cooperation with the private sector and civil society are essential.

Ultimately, UNCTAD are serving the citizens of the 195 countries that make up our
organization. Our goal is prosperity for all.

EXPORT/IMPORT PROCEDURE OF UNCTAD

The major concern of UNCTAD is related to import and export of goods and services. Export
orders must conform to the terms of a contract between buyer and seller and in most case, the
contract is sent from the foreign buyer. Before the confirmation of a contract, it must be
scrutinized with the product details and their specifications, terms of payment, price, delivery
schedule, etc.
The immediate task of an exporter is to acknowledge the export order which is different from its
acceptance. Then s/he should proceed to examine the export order carefully concerning the item,
product specification, pre-shipment inspection, payment conditions, special packaging, labeling
and marking requirements as well as shipment and delivery date, marine insurance,
documentation etc. If the exporter is satisfied with these aspects, a formal confirmation of the
export order is sent from the buyer’s end and exporter should proceed to enter into a formal
contract with the overseas buyer. The aspects relating to the process of an export order are
discussed as under:
Before starting the UNCTAD export business, here exporter has to collect some documents
which will widely use in executing export/import order. They are;
● Trade License
● TIN License
● VAT License
● Memorandum of Association and Articles of Association /Partnership Agreement
● Certificate of Incorporation
● Rent Agreement or Ownership proof
● Holding Tax payment receipt
● NoC declaration from the Local Authority
● Bank Account and Solvency Certificate
● Fire Service License
● Environment Clearance Certificate
● Membership Certificate from incumbent Association/Chamber.
● Group insurance for the workers employed in the factory
● Approved Building layout plan and structural design from concerned govt. authority
● Export Registration Certificate (ERC)/ Import Registration Certificate (IRC)
The Process of Exporting product;
The following documents are commonly used in exporting.
1. Pro-Forma Invoice
2. Bill of lading
 3. Commercial invoice
4. Certificate of origin
5. Inspection certification
6. Dock receipt and warehouse receipt
7. Destination control statement
8. Insurance certificate
9. Export license (ERC)
10. Export packing list
The process of exporting product starts after communicating with buyers.
● Step -1: Communicating with Buyer
● Step -2: Pro-forma Invoice (P I) Generation
● Step -3: Order placement and Acceptance
● Step – 4: Goods readiness & documentation
● Step – 5: Documents for C & F agent
● Step – 6: Customs Clearance
● Step – 7: Document Forwarding
● Step – 8: Bills negotiation
● Step – 9: Bank to bank documents forwarding
● Step – 10: Receipt of Bank certificate
Import Procedure;
Import trade refers to the purchase of goods from a foreign country. The procedure for import
trade differs from country to country depending upon the import policy, statutory requirements
and customs policies of different countries. In almost all countries of the world import trade is
controlled by the government. The imports of goods have to follow a procedure. This procedure
involves several steps:
Steps involve in importing product
(i) Trade Inquiry
(ii) Sourcing Finance to open import L/C
(iii) Placing the Indent or Order through dispatching L/C
(iv) Obtaining Necessary Documents.
(vii) Customs Formalities and Clearing of Goods.
Challenges of UNCTAD:

The United Nations Conference on Trade and Development (UNCTAD) is a UN body

responsible for dealing with development issues, particularly international trade. Its work focuses
on the following main areas: least developed countries and special programmers; globalization,
interdependence and development; international trade and commodities; investment and
enterprise; and technology and trade logistics. This work often results in analyses and
recommendations that can inform the national and international policy making processes, and
contribute to promoting economic policies aimed at ending global economic inequalities and
generating people-centered sustainable development. The primary objective of UNCTAD is to
formulate policies relating to all aspects of development including trade, aid, transport, finance
and technology. The conference ordinarily meets once in four years; the permanent secretariat is
in Geneva. UNCTAD also functions as a forum for dialogue on economic issues
among representatives of its 194 member states. In addition, the organization provides technical
assistance to developing countries and countries with economies in transition, helping them to
build the capacities they need to become equitably integrated into the global economy and
improve the well-being of their populations. The United Nations Conference on Trade and
Development (UNCTAD) is the United Nations’ focal point for trade and development, and
for interrelated issues in the areas of finance, technology, investment and sustainable
development. Its objective is to assist developing countries, especially the least developed
countries, and countries with economies in transition, to integrate beneficially into the global
economy. It also seeks to help the international community promote a global partnership for
development, increase coherence in global economic policy making, and assure development
gains for all from trade.

UNCTAD is the focal point within the united nations for the integrated treatment of trade and
development and the interrelated issues in the areas of finance technology, investment and
sustainable development. Some major challenges UNCTAD is facing on delivering it’s
developmental role and impact.
 ● UNCTAD is heavily constrained by the political capture of the major economic and
political powers.
● UNCTAD suffers from lack of financial resources which negatively affects it in
performing it’s role, and render it more vulnerable to political captures of the major
powers.
● Victims of poor publicity for UNCTAD’s concept. Examples include the Trade
Development Report 2006 which challenged the orthodox views of the World Bank
and IMF on exchange rate regimes and financial systems, however it had little impact
on developing countries.
● UNCTAD depends mainly on spreading it’s intellectual ideas and contributions
however it’s means of achieving such mission remain in adequate in terms of
outreach.
● It remains in terms eyes of many a forum. It lacks the means of power, so the
institutional setup and legal charter classify it as an international organization versus a
supra- institutional body. Along this setup, ideas should be based to help UNCTAD
have a more effective role.
● The widespread of issues related to development that UNCTAD deals with ranging
from competition policy, to investment, to maritime and the increasing complexity of
such issues diluted the focus on UNCTAD.

Recommendations for UNCTAD

• UNCTAD needs long term Human capital development plan.

• Undertake a government wide policy Coherence exercise, Capitalizing on Available

Support and best practices from development partners.

• UNCTAD needs a strong protection from major economic political power.

• UNCTAD needs a strong financial solvency for implement different policy.

• Promote public private collaboration demand- driven training.

 • Establish mechanisms for knowledge sharing between instructors, researchers and on the
job trainers.

• UNCTAD must Include business modules to complement technical and vocational

material in multi- skill training programmers.

• It needs to Employ the natural gas in a backup role renewable, where it offers an
efficient, lower- emissions transition from coal, oil or biomass.

• It needs to Invest in cost-effective energy infrastructure in LDCs, using renewable energy

technologies where possible, or with natural gas in a backup role.

• UNCTAN needs to ensure a stable forward-looking policy environment that allows the
development of diversified energy investments and markets.

Conclusion

The United Nations Conference on Trade and Development (UNCTAD) was established in 1964
as an intergovernmental organization intended to promote the interests of developing states in
world trade. UNCTAD is the part of the United Nations Secretariat dealing with trade,
investment, and development issues. It’s a matter of joy that Bangladesh got membership of
UNCTAD in 19 May, 1972. The creation of UNCTAD in 1964 was based on concerns of
developing countries over the international market, multi-national corporations, and great
disparity between developed nations and developing nations. The United Nations Conference on
Trade and Development was established to provide a forum where the developing countries
could discuss the problems relating to their economic development. The organization grew from
the view that existing institutions like GATT (now replaced by the World Trade Organization,
WTO), the International Monitory Firm (IMF), and World Bank were not properly organized to
handle the particular problems of developing countries. Later, in the 1970s and 1980s, UNCTAD
was closely associated with the idea of a New International Economic Order (NIEO).