This article has been written by Ms. Simran Nair, a Third-Year Law Student of Vivekanand Education Society’s College of Law, Mumbai.
ABSTRACT:
This exploration studies the area of trade as a key factor, substantiated by the United Nations in fostering inclusive and sustainable growth across the nations. The United Nations has vitalized ‘Trade’ as one of the pivotal elements in advancing the economy parallel to inculcating inclusive agendas for equitable growth. Every nation in the contemporary world thrives to be an economy-centric nation. However, it is important to fulfill sustainable growth parallel to the economy-centric goals. The comprehensive analysis delves deep into the UN signifying ‘Trade’ and its evolving agendas to inculcate inclusive and sustainable economic growth. This involves the specific goal concerning trade under the Sustainable Development Goals (SDGs). The study will also delve deep into international trade as a means of implementing long-term economic goals and providing the hierarchy of nations with opportunities in the global markets. The article majorly navigates through the UN Conference on Trade and Development (UNCTAD), United Nations Commission on International Trade Law (UNCITRAL) and their roles in interconnecting the countries with the global economy, The United Nations Economic Commission for Europe (UNECE). Amidst these classifications, there also stands legal systems through which the UN bodies govern the Trade and economic systems of the countries across the globe. This would explore the legal conventions, treaties, global partnership, international agreements which bind the trade system and global markets to provide a better structure to the monetary frameworks. Lastly, the abstract encapsulates capacity building, global partnership, equality in terms of trade and environment sustainability which builds the very base of having a sustainable economic development.
KEYWORDS: United Nations, economy, trade, inclusive, sustainability, sustainable growth, development, UNCTAD, UNCITRAL, UNECE, SDG, global markets, economic development.
INTRODUCTION:
In a world inclined towards monetary benefits, ‘Trade’ establishes itself as an integral domain of the economy, which allows the flow of money to persist in every form. The flow of money, the concept of buying and selling and the utilisation of funds have merged as a ‘way of life’ with time. However, the concept of ‘inclusion’ holds utmost importance to have an upliftment which is equal as well as equitable. Amidst the intricates of trade-systems and international divisions, many nations and their economic goals and necessities have been overlooked upon. Advancing inclusive economic growth is an idea of vital importance as it would uplift every portion of the society and foster interconnection between the fragments of the globe, thereby leading to a full-fledged global economy.
Trade being an element of profound significance is recognised as the same by the United Nations. The UN signifies the management of trade as being a pivotal subject for economic development and poverty prevention. In addition, the UN has also contributed to inclusive sustainable developments through trade. One of the underscored concepts promoted by the UN is ‘Trade for All’ which encourages the trade policies to be inclusive and benefit all portions of society including the marginalized communities and vulnerable sections. The UN has contributed by providing technical assistance and capacity building programs to uplift developing nations. The UN also signifies gender equality in advocating for trade policies which ensures equality and fair opportunities in trade to the women. This also addresses gender-based barriers and promotes inclusion of all genders in economic activities. The UN also regulates correlations between businesses, governments and civil society to enhance the impacts of trade-related activities. This has contributed to strengthening the nation-states and capacitated the UN to address complex challenges to advance inclusive economic growth out of trade. Thus, addressing trade barriers is one of the major initiatives by the UN which has provided an enabling environment for all nation-states that encourages them to participate and gain benefits of trade.
The UN through its agencies for instance Sustainable Development Goals (SDGs), UN Conference on Trade and Development (UNCTAD), United Nations Commission on International Trade Law (UNCITRAL), Sustainable Development Goals (SDGs) and United Nations Economic Commission for Europe (UNECE) have implemented a multi-faceted strategy which integrates the economic concerns, social issues and environmental challenges. These agencies ensure that trade benefits are shared equally and reach all the diversified parts, which makes economic growth sustainable and inclusive.
UN BODIES IN ADVANCING INCLUSIVE SUSTAINABLE GROWTH:
- The United Nations Conference on Trade and Development (UNCTAD)
Globalization has played a pivotal role in encouraging the expansion of trade and upliftment of the economically weaker sections of society. However, globalization has not served or benefitted every nook and cranny of the world which challenges the current trade and development systems across the globe. To provide aid to this, the United Nations Conference on Trade and Development (UNCTAD) vouched for countries far from accessing the benefits of a globalized system. This body’s objective is to equip the countries with fair and effective means to overcome the potential challenges and drawbacks of economic integration. UNCTAD has been the UN’s vital part for trade and development and the interconnected matters in the domains of finance, investment, technology and sustainable development. They have contributed to facilitating technical assistance which has helped them to utilize finance, investments, trade and technology to foster sustainable development. UNCTAD’s objective has been to foster an inclusive environment for sustainable development. Its focal point is to uplift the least developed nations and nations experiencing economic transitions to enable them to integrate with the benefits of the global economy. This strategy ultimately encourages coherence in the policy and decision making, thus assuring development through all intricates of trade.
- Private Sector Development (PSD) Policy and Strategy:
UNCTAD delves deep into both long-term goals and the emerging challenges in contemporary times. It builds its base around the national and international policies thereby expanding the benefits of trade, development and innovating ideas of sustainability simultaneously. Private Sectors have been one of the significant and narrow areas which collectively contribute to the economy of a nation. These specific work sectors contribute to globalization as well as build nexus between the nations and the international trade policies, advancing inclusive sustainable development. The Private sector development includes conditioning the complexities of trade, strengthening capacity and promoting partnerships for the trade policies, competition and consumer laws, investment, technical assistance and human resource development.
- Legitimacy and Effectiveness and Legitimacy in Private Sector Development (PSD):
The UNCTAD comprises of its Evaluation and Monitoring Body, which communicates the ongoing activities within the organization which assures and enhances the quality of its supervision in terms of its plans and projects. The major role of this unit is to manage and implement evaluation strategies. This also gives rise to the participation in such initiatives, guidance to the management, review of project proposals, contributing to inter-agency projects, capacitating developmental strategies, therefore signifying the evaluation matters dealt by UNCTAD.
These effective plans and their implementations delve into regional, national and international sustainable development and enable the countries to:
- Comprehend the agendas and overcome micro and macro-level development challenges
- Integration into national and international trade systems
- Diversify economies to encourage integral goals of nations
- Limit their exposure to financial problems
- Establish attractive markets
- Encourage development friendly policies
- Enhance access to modes of digital trade
- Promote innovation and entrepreneurship
- Improvise flow of goods across borders
- United Nations Commission on International Trade Law (UNCITRAL)
It is commonly understood that creating and preserving a strong cross-border legal framework is essential to facilitating global trade and investment in a world where economic interdependence is growing. To fulfill its objective of promoting the progressive harmonization and modernization of the law of international commerce, the United Nations Commission on International commerce Law (UNCITRAL) is instrumental in the development of that framework. To do this, UNCITRAL develops and encourages the application and adoption of both legislative and non-legislative tools in several crucial areas of commercial law.
UNCITRAL texts are created by a multi-national team of collaborators in an international procedure. The composition of UNCITRAL’s membership is designed to reflect a range of legal traditions and economic development levels. Additionally, the organization’s protocols and operational strategies guarantee that UNCITRAL texts are broadly regarded as providing solutions suitable for numerous nations at varying stages of economic development. This body has close ties to international and regional organizations, both intergovernmental and non-governmental, that actively participate in the organization’s work program and in the fields of international trade and commercial law in order to carry out its mandate and to promote the sharing of ideas and information.
To fulfill its mandate to advance the progressive harmonization and modernization of the law of international trade, the United Nations General Assembly established UNCITRAL by resolution 2205 (XXI) of December 17, 1966. UNCITRAL prepares and promotes the use and adoption of legislative and non-legislative instruments in several important areas of commercial law. It has played a significant role in developing that framework. A range of parties, including non-member States of UNCITRAL, invited intergovernmental and non-governmental organizations, and member States of UNCITRAL to participate in the international process used to negotiate these agreements. These texts are highly acknowledged for providing solutions suitable for many legal traditions and nations with varying economic development levels, owing to their inclusive process. This body has established itself as the principal legal authority inside the UN system for matters pertaining to international trade law.
Therefore, UNCITRAL has embraced a versatile and efficient methodology for the methods it employs to execute its purpose of updating and coordinating the legislation pertaining to international commerce.
- The United Nations Economic Commission for Europe (UNECE)
Pursuing sustainable development, regional cooperation, and economic integration are the three core goals of the UNECE. Given the size of the secretariat (around 200 employees), the regulatory cooperation initiatives conducted under the auspices of UNECE are remarkably varied. The topics covered are wide-ranging and include the environment, renewable energy, and forests, as well as trade, housing, land management, innovation, and transportation. In many of these sectors which are institutionally crowded UNECE is required to work closely with other organizations. Through three interconnected functions, the UNECE’s primary goal is to promote sustainable development and regional cooperation and integration:
- Normative work: UNECE facilitates the development and negotiation of new norms, standards, and conventions;
- Policy dialogue: UNECE offers an impartial forum for discussion of economic, social, and environmental issues; and
- Technical cooperation: UNECE enhances the national capacity of nations to implement international and UNECE legal instruments, norms, and standards.
Through a calibrated assessment and recommendations for policy and structural reform, based on global best practices and a thorough understanding of national and regional specifics, the UNECE Innovation for Sustainable Development Review (I4SDR) offers a strong understanding of the national and regional innovation system. The UNECE Secretariat, top subject matter experts, government officials, academics, the commercial sector, and other national innovation stakeholders engaged in extensive discourse and consultation to produce the Review. By means of policy discourse and capacity building that is linked to the report’s recommendations and priorities, UNECE additionally supports these reform initiatives.
Sustainable Development Goals (SDGs):
There are 17 SDGs in the UN’s 2030 Agenda for Sustainable Development, and several of them have a direct bearing on trade and economic expansion. The Goal 8 of SDGs is specifically concerned with full and productive employment, decent work for all, and sustained, inclusive, and sustainable economic growth. According to the Statistics and reports, Global labor productivity has increased and the unemployment rate has decreased, but more work needs to be done to ensure sustained and inclusive economic growth. This includes increasing employment opportunities, especially for young people, reducing informal employment and labor market inequality (particularly in terms of the gender pay gap), promoting safe and secure working environments, and improving access to financial services. Multiple crises are seriously endangering the global economy. Global real GDP per capita growth is forecast to slow down in 2023.
After peaking at 6.6% in 2020, the worldwide unemployment rate fell sharply to 5.4% in 2022 as economies started to recover from the blow of the COVID-19 epidemic. This rate was less than the 5.5% pre-pandemic figure for 2019. A comprehensive overhaul of the financial system is necessary to address trade conflicts, growing debt, and economic unpredictability while advancing fair compensation and respectable employment opportunities for youth to meet Goal 8. Long-term, equitable economic growth has the power to advance society, raise living standards, and produce good jobs for all.
CONCLUSION:
“In the tapestry of sustainable growth, trade and inclusivity are the vital threads that weave together prosperity for nations and well-being for all. Embracing the interconnectedness of diverse economies and ensuring that the benefits reach every corner of society is not just a goal; it is the pathway to a truly sustainable future.”
The United Nations (UN) plays a critical role in achieving equitable and sustainable growth through its focus on international commerce and economic development. The UN advocates for a framework that aims to guarantee that economic advancement benefits all facets of society, particularly vulnerable and excluded groups. The UN places a strong emphasis on inclusive development to make sure that the advantages of economic expansion are distributed fairly. The United Nations endeavors to provide equal opportunities for all nations, even those with little resources, to engage in the global economy through the promotion of international trade agreements and partnerships. The UN also seeks to reduce poverty on a global scale through development projects and trade policies. The United Nations endeavors to establish circumstances for consistent economic expansion that essentially aids in the decrease of poverty by supporting equitable trade policies and tackling trade-associated obstacles encountered by developing countries. Further it lays a high focus on sustainable development, acknowledging the interconnection of economic growth, social development, and environmental conservation. There are frequent promotions of trade policies that incorporate sustainability principles, pushing countries to embrace practices that are both socially and environmentally responsible. In addition, The UN promotes the idea of global partnerships because it understands that equitable and sustainable growth necessitates teamwork. To address issues with trade, economic development, and social inequality, governments, businesses, international organizations, and civil society collaborate in these partnerships. It also facilitates policy advocacy by pressuring its member nations to enact trade laws that give priority to sustainability and inclusivity. In the framework of global commerce, this entails advancing fair trade policies, lowering trade obstacles, and addressing concerns like social justice, gender equality, and labor rights.
Thus, the UN is crucial in forming a global economic environment emphasizing equitable and sustainable growth through its numerous agencies and programs. Through the promotion of equitable trade, poverty reduction, sustainable practices, capacity building, global collaborations, policy advocacy, and strict oversight, the United Nations plays a role in cultivating a global context in which economic development benefits everyone, without exception.
REFERENCES:
WEBSITES:
https://unsdg.un.org/resources/role-un-pooled-financing-mechanisms-deliver-2030-agenda
https://unsdg.un.org/about/who-we-are
https://sustainabledevelopment.un.org/rio20
https://unsdg.un.org/un-entities/ifad
https://www.unepfi.org/policy-and-regulation/
https://www.unepfi.org/impact/positive-impact/
REPORTS:
- UNECE: Innovation for Sustainable Development Review
- SDG Good Practices-A compilation of success stories and lessons learned in SDG implementation (First Edition) Year of publication 2020
- Transforming our World: The 2030 Agenda for Sustainable Development Publication Year: 2015