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International Institutions and Trade Implications Assignment A 1. How International Monetary Funds helps its member countries in their economic development? The International Monetary Fund was created in 1945 to help promote the health of the world economy through international monetary cooperation. Headquartered in Washington D.C., International Monetary Fund—also known as the “IMF” or the “Fund” is the world's central organization for international monetary cooperation. The IMF's primary purpose is to ensure the stability of the international monetary system for sustainable economic growth and rising living standards. To maintain stability and prevent crises in the international monetary system , the IMF provides advice to its 185 member countries, encouraging them to adopt policies that foster economic stability, reduce their vulnerability to economic and financial crises, and raise living standards. IMF also reviews national, regional, and global economic and financial developments and it also serves as a forum where member countries can discuss the national, regional, and global consequences of their policies. The IMF also makes financing temporarily available to member countries to help them address balance of payments problems. And it provides technical assistance and training to help countries build the expertise and institutions they need for economic stability and growth. The IMF's fundamental mission is to help ensure stability in the international system by : 1. keeping track of the global economy and the economies of member countries; 2. lending to countries with balance of payments difficulties; and

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International Institutions and Trade Implications

Assignment A

1. How International Monetary Funds helps its member countries in their economic development?

The International Monetary Fund was created in 1945 to help promote the health of the world economy through international monetary cooperation. Headquartered in Washington D.C., International Monetary Fundalso known as the IMF or the Fund is the world's central organization for international monetary cooperation. The IMF's primary purpose is to ensure the stability of the international monetary system for sustainable economic growth and rising living standards. To maintain stability and prevent crises in the international monetary system , the IMF provides advice to its 185 member countries, encouraging them to adopt policies that foster economic stability, reduce their vulnerability to economic and financial crises, and raise living standards. IMF also reviews national, regional, and global economic and financial developments and it also serves as a forum where member countries can discuss the national, regional, and global consequences of their policies. The IMF also makes financing temporarily available to member countries to help them address balance of payments problems. And it provides technical assistance and training to help countries build the expertise and institutions they need for economic stability and growth.

The IMF's fundamental mission is to help ensure stability in the international system by : 1. keeping track of the global economy and the economies of member countries; 2. lending to countries with balance of payments difficulties; and 3. giving practical help to members The IMF helps countries to implement sound and appropriate policies through its key functions of surveillance, technical assistance, and lending.Surveillance: Keeping Track of The Global Economy Every country that joins the IMF accepts the obligation to subject its economic and financial policies to the scrutiny of the international community. The IMF's mandate is to oversee the international monetary system and monitor the economic and financial policies of its 188 member countries. This process, known as surveillance, takes place at the global level and in individual countries and regions. The IMF considers whether domestic policies promote countries own stability by examining risks they might pose to domestic and balance of payments stability and advising on needed policy adjustments. It also proposes alternatives in cases where countries policies promote domestic stability but could affect global stability.Consulting with member states The IMF monitors members economies through regularusually annualconsultations with each member country. During these consultations, IMF staff discusses economic and financial developments and policies with national policymakers, and often with representatives of private sector, labor unions, academia, and civil society. The staff assesses risks and vulnerabilities, and considers the impact of fiscal, monetary, financial, and exchange rate policies on the members domestic and balance of payments stability and on global stability. The IMF offers advice on policies to promote each countrys macroeconomic, financial, and balance of payments stability, drawing on experience from across its membership. The framework for these consultations is set forth in the IMF Articles of Agreement and, more recently, in the Integrated Surveillance Decision. These consultations are also informed by membership-wide initiatives, including work to systematically assess countries' vulnerabilities to crises; the Financial Sector Assessment Program, which assesses countries financial sectors and helps formulate policy responses to risks and vulnerabilities; and the Standards and Codes Initiative in which the IMF, along with the World Bank and other bodies, assesses countries observance of internationally recognized standards and codes of good practice in a dozen policy areas. Overseeing the bigger world picture The IMF also closely monitors global and regional trends. The IMFs periodic reports, the World Economic Outlook, its regional overviews, the Fiscal Monitor, and the Global Financial Stability Report, analyze global and regional macroeconomic and financial developments. The IMFs broad membership makes it uniquely well suited to facilitate multilateral discussions on issues of common concern to groups of member countries, and advance a shared understanding on policies to promote stability. In this context, the Fund has been working with the G-20 group of advanced and emerging economies to assess the consistency of those countries policy frameworks with balanced and sustained growth for the global economy. The Fund has reviewed its surveillance mandate in light of the global crisis. It has introduced a number of reforms to improve financial sector surveillance within member countries and across borders, to enhance understanding of interlinkages between macroeconomic and financial developments (e.g. through a Spillover Report), and promote debate on these matters. Data: In response to the financial crisis, the IMF is working with members, the Financial Stability Board, and other organizations to fill data gaps important for global stability. Technical assistance: The IMF helps countries strengthen their capacity to design and implement sound economic policies. It provides advice and training on a range of issues within its mandate, including fiscal, monetary, and exchange rate policies; the regulation and supervision of financial systems; statistics systems; and legal frameworks. Lending: Even the best economic policies cannot completely eradicate instability or avert crises. If a member country does experience financing difficulties, the IMF can provide financial assistance to support policy programs that will correct underlying macroeconomic problems, limit disruption to the domestic and global economies, and help restore confidence, stability, and growth. IMF financing instruments can also support crisis prevention.

1. What is the role of World Bank in promoting International Trade? What are the functions of IDA and IRDB?

The World Bank came into existence in 1944 at the Bretton Woods conference. Itsformal name is the International Bank for Reconstruction and Development (IBRD), which clearly states its primary purpose of financing economic development.

The World Banks first loans were extended during the late 1940s to finance the reconstruction of the war-ravaged economies of Western Europe. When these nations recovered some measure of economic self-sufficiency, the World Bank turned its attention to assisting the worlds poorer nations. The World Bank has one central purpose: to promote economic and social progress in developing countries by helping raise productivity so that their people may live a better and fuller life:

In 2009, the World Bank provided $46.9 billion for 303 projects in developingcountries worldwide, with the financial and/or technical expertise aimed at helping those countries reduce poverty.

The Bank is currently involved in more than 1,800 projects in virtually every sector and developing country. The projects are as diverse as providing microcredit in Bosnia and Herzegovina, raising AIDS-prevention awareness in Guinea, supporting education of girls in Bangladesh, improving health care delivery in Mexico, and helping East Timor rebuild upon independence and India rebuild Gujarat after a devastating earthquake.

Today, The World Bank consists of two main bodies, the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), established in 1960.

The World Bank is part of the broader World Bank Group, which consists of five interrelated institutions: the IBRD; the IDA; theInternational Finance Corporation (IFC), which was established in 1956; theMultilateral Investment Guarantee Agency (MIGA), which was established in 1988; and the International Centre for Settlement of Investment Disputes (ICSID), which was established in 1966. These additional members of the World Bank Group havespecific purposes as well.

The IDA typically provides interest-free loans to countrieswith sovereign guarantees. The current primary focus of the World Bank centers on six strategic themes:

1. The poorest countries.Poverty reduction and sustainable growth in the poorest countries, especially in Africa.

2. Postconflict and fragile states.Solutions to the special challenges of postconflict countries and fragile states.

3. Middle-income countries.Development solutions with customized services as well as financing for middle-income countries.

4. Global public goods.Addressing regional and global issues that cross national borders, such as climate change, infectious diseases, and trade.

5. The Arab world.Greater development and opportunity in the Arab world.

6. Knowledge and learning.Leveraging the best global knowledge to support development.

The World Bank provides low-interest loans, interest-free credits, and grants to developing countries. Theres always a government (or sovereign) guarantee of repayment subject to general conditions. The World Bank is directed to make loans for projects but never to fund a trade deficit. These loans must have a reasonable likelihood of being repaid. The IDA was created to offer an alternative loan option.

IDA loans are free of interest and offered for several decades, with a ten-year grace period before the country receiving the loan needs to begin repayment.

These loans are often called soft loans.

Since it issued its first bonds in 1947, the IBRD generates funds for its development work through the international capital markets.

The World Bank issues bonds, typically about $25 billion a year. These bonds are rated AAA (the highest possible rating) because they are backed by member states shared capital and by borrowers sovereign guarantees. Because of the AAA credit rating, the World Bank is able to borrow at relatively low interest rates. This provides a cheaper funding source fordeveloping countries, as most developing countries have considerably low credit ratings. The World Bank charges a fee of about 1 percent to cover its administrative overheads.

What Are the World Banks Current Role and Major Challenges andOpportunities?Like the IMF, the World Bank has both its critics and its supporters. The criticisms of the World Bank extend from the challenges that it faces in the global operating environment. Some of these challenges have complicated causes; some result from the conflict between nations and the global financial crisis. The following are four examples of the worlds difficult needs that the World Bank tries to address:

1. Even in 2010, over 3 billion people lived on less than $2.50 a day.

1. At the start of the twenty-first century, almost a billion people couldnt read a book or sign their names.1. Less than 1 percent of what the world spends each year on weaponswould have put every child into school by the year 2000, but it didnthappen.

1. Fragile states such as Afghanistan, Rwanda, and Sri Lanka face severedevelopment challenges: weak institutional capacity, poor governance,political instability, and often ongoing violence or the legacy of pastconflict.

Opportunities and Future Outlook for the World BankAs vocal as the World Banks critics are, so too are its supporters. The World Bank is praised by many for engaging in development projects in remote locations around the globe to improve living standards and reduce poverty. The World Banks current focus is on helping countries achieve the Millennium Development Goals (MDGs), which are eight international development goals, established in 2000 at the Millennium Summit, that all 192 United Nations member states and twenty-three international organizations have agreed to achieve by the year 2015. They include reducing extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDS, and developing a global partnership for development.

TheWorld Bank is focused on the following four key issues:

1. Increased transparency.In response to the criticisms over thedecades, the World Bank has made progress. More of the World Banksdecision making and country assessments are available publicly.

The World Bank has continued to work with countries to combatcorruption both at the country and bank levels.

2. Expanding social issues in the fight on poverty.In 2001, the World Bank began to incorporate gender issues into its policy. Two years later the World Bank announced that it was starting to evaluate all of its projects for their effects on women and girls, noting that povertyis experienced differently by men and women and a full understanding of the gender dimensions of poverty can significantly change the definition of priority policy and program interventions.

3. Improvements in countries competitiveness and increasingexports. The World Banks policies and its role as a donor have helpedimprove the ability of some countries to secure more of the globalrevenues for basic commodities. In Rwanda, for example, reformstransformed the countrys coffee industry and increased exports.Kenya has expanded its exports of cut flowers, and Uganda hasimproved its fish-processing industry. World Bank efforts have alsohelped African financial companies develop.

4. Improving efficiencies in diverse industries and leveraging theprivate sector. The World Bank has worked closely with businesses inthe private sector to develop local infrastructure, including power,transportation, telecommunications, health care, and education.

In Afghanistan, for example, small dams are built andmaintained by the locals themselves to support small industries processing local produce.

The World Bank continues to play an integral role in helping countries reduce poverty.

To facilitate the expansion and balanced growth ofinternational trade

The World Bank consists of two main bodies, the IBRD and theInternational Development Association (IDA).

The following are the main functions of the World Bank Groups main bodies

THE INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) The International Development Association complements the World Banks other lending armthe International Bank for Reconstruction and Development (IBRD)which serves middle-income countries with capital investment and advisory services. IBRD and IDA share the same staff and headquarters and evaluate projects with the same rigorous standards. IDA is one of the largest sources of assistance for the worlds 78 poorest countries, 39 of which are in Africa. It is the single largest source of donor funds for basic social services in the poorest countries. IDA lends money (known as credits) on concessional terms. This means that IDA credits have no interest charge and repayments are stretched over 35 to 40 years, including a 10-year grace period. IDA also provides grants to countries at risk of debt distress.

The main role of the IDA therefore, is typically to provide interest-free loans to countrieswith sovereign guarantees.

The International Bank for Reconstruction and Development (IBRD) The International Bank for Reconstruction and Development (IBRD) aims to reduce poverty in middle-income and creditworthy poorer countries by promoting sustainable development through loans, guarantees, risk management products, and analytical and advisory services. Established in 1944 as the original institution of the World Bank Group, IBRD is structured like a cooperative that is owned and operated for the benefit of its 185 member countries. IBRD raises most of its funds on the world's financial markets and has become one of the most established borrowers since issuing its first bond in 1947. The income that IBRD has generated over the years has allowed it to fund development activities and to ensure its financial strength, which enables it to borrow at low cost and offer clients good borrowing terms.

The main role of the IBRD therefore, is to make loans to countries with the purpose of building economies and reducing poverty.

3. How has formation of European Countries helped the members countries in further improving their trade relations?

The European Union is a unique economic and political partnership between 27 democratic European countries with the objective to ensure peace, prosperity and freedom for its 498 million citizens in a fairer, safer world. The countries that make up the EU (its member states) remain independent sovereign nations but they pool their sovereignty in order to gain a strength and world influence none of them could have on their own.

The European Union is based on the rule of law. This means that everything that it does is derived from treaties, which are agreed on voluntarily and democratically by all Member States. Previously signed treaties have been changed and updated to keep up with developments in society.

The main treaties are the following:

1 Treaty of Lisbon The Treaty of Lisbon was signed on 13 December 2007. It will have to be ratified by all 27 Member States before it can enter into force, which is hoped to be before the next European Parliament elections in June 2009. Its main objectives are to make the EU more democratic, meeting the European citizens expectations for high standards of accountability, openness, transparency and participation; and to make the EU more efficient and able to tackle today's global challenges such as climate change, security and sustainable development. The agreement on the Treaty of Lisbon followed the discussion about a constitution. A "Treaty establishing a constitution for Europe" was adopted by the Heads of State and Government at the Brussels European Council on 17 and 18 June 2004 and signed in Rome on 29 October 2004, but it was never ratified.

2 Treaty of Nice The Treaty of Nice, signed on 26 February 2001, entered into force on 1 February 2003. It dealt mostly with reforming the institutions so that the Union could function efficiently after its enlargement to 25 Member States. The Treaty of Nice, the former Treaty of the EU and the Treaty of the EC have been merged into one consolidated version. 3 Treaty of Amsterdam The Treaty of Amsterdam, signed on 2 October 1997, entered into force on 1 May 1999. It amended and renumbered the EU and EC Treaties. Consolidated versions of the EU and EC Treaties are attached to it. The Treaty of Amsterdam changed the articles of the Treaty on European Union, identified by letters A to S, into numerical form.

4 Treaty on European Union The Treaty on European Union, which was signed in Maastricht on 7 February 1992, entered into force on 1 November 1993. 'The Maastricht Treaty changed the name of the European Economic Community to simply "the European Community". It also introduced new forms of co-operation between the Member State governments - for example on defence, and in the area of "justice and home affairs". By adding this inter-governmental co-operation to the existing "Community" system, the Maastricht Treaty created a new structure with three "pillars" which is political as well economic. This is the European Union (EU).

5 Single European Act (SEA) The Single European Act (SEA), signed in Luxembourg and the Hague, and entered into force on 1 July 1987, provided for the adaptations required for the achievement of the Internal Market.

6 Merger Treaty The Merger Treaty, signed in Brussels on 8 April 1965 and in force since 1 July 1967, which provided for a Single Commission and a Single Council of the then three European Communities.

7 Treaty of Rome The Treaty of Rome, establishing the European Economic Community (EEC), signed in Rome on 25 March 1957, and entered into force on 1 January 1958. The Treaty establishing the European Atomic Energy Community (Euratom) was signed at the same time and the two are therefore jointly known as the Treaties of Rome.

8 Treaty establishing the European Coal and Steel Community The Treaty establishing the European Coal and Steel Community (ECSC), which was signed on 18 April 1951 in Paris, entered into force on 23 July 1952 and expired on 23 July 2002. Moreover, the founding treaties have been amended on several occasions, in particular when new Member States acceded in 1973 (Denmark, Ireland, United Kingdom), 1981 (Greece), 1986 (Spain, Portugal), 1995 (Austria, Finland, Sweden) and 2004 (the Czech Republic, Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia). Based on the Treaties, EU institutions can adopt legislation, which is then implemented by the Member States. To see the full texts of EU legislation, please consult Eur-Lex, the portal to European Union Law. The texts published in the Official Journal (EUR-Lex) are the only authentic versions.

The EU has a common external trade policy, which means that trade policy is an exclusive competence of the EU and no member state can negotiate its own international trade agreement.

The EUs trade policy is one of its most well-developed and integrated policies. It evolved along with the common marketwhich provides for the free movement of goods within the EUto prevent one member state from importing foreign goods at cheaper prices due to lower tariffs and then re-exporting the items to another member withhigher tariffs. The scope of the common trade policy has been extended partially to include trade in services, the defense of intellectual property rights, and foreign direct investment. The European Commission and the Council of Ministers work together to set the common customs tariff, guide export policy, and decide on trade protection or retaliation measures where necessary. EU rules allow the Council to make trade decisions with qualified majority voting, but in practice the Council tends to employ consensus.

The European Commission negotiates trade agreements with outside countries and trading blocs on behalf of the Union as a whole. As a result of the Lisbon Treaty, both the Council of Ministers and the European Parliament must approve all such trade agreements before they can enter into force. The process for negotiating and concluding a new international trade agreement begins with discussions among all three EU institutionsand a Commission impact assessment, including a public consultation on the content and options for any future trade accord. Provided there is a general agreement to proceed, the Commission initiates an informal scoping exercise with the potential partner country or trade bloc on the range and extent of topics to be considered in the negotiations. Following this dialogue, the Commission then formulates what are known as negotiating directives (sometimes termed the negotiating mandate), which sets out the Commissions overall objectives for the future agreement. The directives are submitted to the Council for its approval, and shared with the European Parliament. Provided the Council approves the negotiating directives, the Commission then launches formal negotiations for the new trade agreement on behalf of the EU. Within the Commission, the department that handles EU trade policythe Directorate General for Trade (DG Trade)leads the negotiations but draws on expertise from across the Commission. Typically, there are a series of negotiation rounds; the duration of the negotiations varies but can range from two to three years or longer. During the course of negotiations, the Commission is expected to keep both the Council and the Parliament apprised of its progress, and the Council and the Parliament may take the opportunity to voice their respective views and concerns. The Parliament may conduct its own oversight hearings through its International Trade Committee (INTA). When negotiations reach the final stage, both parties to the agreement initial the proposed accord. It is then submitted to the Council and the Parliament for review.

If the Council approves the accord, it authorizes the Commission to formally sign the agreement. Once the new trade accord is officially signed by both parties, the Council submits a draft decision to conclude negotiations to the Parliament for its consent. The Parliament reviews the signed agreement both in the INTA Committee and in plenary session. Although the Parliament is limited to voting yes or no to the new accord, it can indicate that it would not support the agreement should it find fault with any of its provisions, and can ask the Commission to review or address its concerns. If parts of the trade agreement fall under member state competence, all EU countries must also ratify the agreement according to their national ratification procedures.

After Parliament gives its consent and following ratification in the member states (if required), the Council adopts the final decision to conclude the agreement. It may then be officially published and enter into force.

4. What is the role of WTO in promoting International Trade among member countries?

The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible. The WTOs overriding objective is to help trade flow smoothly, freely, fairly and predictably. It does this by: Administering trade agreements Acting as a forum for trade negotiations Settling trade disputes Reviewing national trade policies The WTO has 153 members, accounting for over 97% of world trade. Around 30 others are negotiating membership. Decisions are made by the entire membership. This is typically by consensus. A majority vote is also possible but it has never been used in the WTO, and was extremely rare under the WTOs predecessor, the General Agreement on Tariffs and Trade (GATT). The WTOs agreements have been ratified in all members parliaments. The WTOs top level decision-making body is the Ministerial Conference which meets at least once every two years. Below this is the General Council (normally ambassadors and heads of delegation in Geneva, but sometimes officials sent from members capitals) which meets several times a year in the Geneva headquarters. The General Council also meets as the Trade Policy Review Body and the Dispute Settlement Body. At the next level, the Goods Council, Services Council and Intellectual Property (TRIPS) Council report to the General Council. Numerous specialized committees, working groups and working parties deal with the individual agreements and other areas such as the environment, development, membership applications and regional trade agreements. The WTO Secretariat, based in Geneva, has around 625 staff and is headed by a Director General. It does not have branch offices outside Geneva. Since decisions are taken by the Members themselves, the Secretariat does not have the decision-making role that other international bureaucracies are given. The Secretariats main duties are to supply technical support for the various councils and committees and the ministerial conferences, to provide technical assistance for developing countries, to analyze world trade, and to explain WTO affairs to the public and media. The Secretariat also provides some forms of legal assistance in the dispute settlement process and advises governments wishing to become members of the WTO. The annualbudget is roughly 189 million Swiss francs.

The WTOs rules the agreements are the result of negotiations between the members. The current set were the outcome of the 1986-94 Uruguay Round negotiations which included a major revision of the original General Agreement on Tariffs and Trade (GATT). GATT is now the WTOs principal rule-book for trade in goods. The Uruguay Round also created new rules for dealing with trade in services, relevant aspects of intellectual property, dispute settlement, and trade policy reviews. The complete set runs to some30,000 pages consisting of about 30 agreements and separate commitments (called schedules) made by individual members in specific areas such as lower customs duty rates and services market-opening. Through these agreements, WTO members operate a non-discriminatory trading system that spells out their rights and their obligations. Each country receives guarantees that its exports will be treated fairly and consistently in other countries markets. Each promises to do the same for imports into its own market. The system also gives developing countries some flexibility in implementing their commitments. It all began with trade in goods. From 1947 to 1994, GATT was the forum for negotiating lower customs duty rates and other trade barriers; the text of the General Agreement spelt out important rules, particularly non-discrimination. Since 1995, the updated GATT has become the WTOs umbrella agreement for trade in goods. It has annexes dealing with specific sectors such as agriculture and textiles, and with specific issues such as state trading, product standards, subsidies and actions taken against dumping. Banks, insurance firms, telecommunications companies, tour operators, hotel chains and transport companies looking to do business abroad can now enjoy the same principles of freer and fairer trade that originally only applied to trade in goods. These principles appear in the new General Agreement on Trade in Services (GATS). WTO members have also made individual commitments under GATS stating which of their services sectors they are willing to open to foreign competition, and how open those markets are. The WTOs Intellectual Property Agreement amounts to rules for trade and investment in ideas and creativity. The rules state how copyrights, patents, trademarks, geographical names used to identify products, industrial designs, integrated circuit layout-designs and undisclosed information such as trade secrets intellectual property should be protected when trade is involved. The WTOs procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. Countries bring disputes to the WTO if they think their rights under the agreements are being infringed. Judgements by specially-appointed independent experts are based on interpretations of the agreements and individual countries commitments. The system encourages countries to settle their differences through consultation. Failing that, they can follow a carefully mapped out, stage-by-stage procedure that includes the possibility of a ruling by a panel of experts, and the chance to appeal the ruling on legal grounds. Confidence in the system is borne out by the number of cases brought to the WTO more than 300 cases in ten years compared to the 300 disputes dealt with during the entire life of GATT (1947-94).

The Trade Policy Review Mechanisms purpose is to improve transparency, to create a greater understanding of the policies that countries are adopting, and to assess their impact. Many members also see the reviews as constructive feedback on their policies. All WTO members must undergo periodic scrutiny, each review containing reports by the country concerned and the WTO Secretariat. Over three-quarters of WTO members are developing or least developed countries. All WTO agreements contain special provision for them, including longer time periods to implement agreements and commitments, measures to increase their trading opportunities, provisions requiring all WTO members to safeguard their trade interests, and support to help them build the infrastructure for WTO work, handle disputes, and implement technical standards.

The 2001 Ministerial Conference in Doha set out tasks, including negotiations, for a wide range of issues concerning developing countries. Some people call the new negotiations the Doha Development Round. Before that, in 1997, a high-level meeting on trade initiatives and technical assistance for least-developed countries resulted in an integrated framework involving six intergovernmental agencies, to help least-developed countries increase their ability to trade, and some additional preferential market access agreements. A WTO Committee on Trade and Development, assisted by a Sub-Committee on Least-Developed Countries, looks at developing countries special needs. Its responsibility includes implementation of the agreements, technical cooperation, and the increased participation of developing countries in the global trading system.

Technical Assistance and Training The WTO organizes hundreds of technical cooperation missions to developing countries annually. It holds on average three trade policy courses each year in Geneva for government officials. Regional seminars are held regularly in all regions of the world with a special emphasis on African countries. Training courses are also organized in Geneva for officials from countries in transition from central planning to market economies. The WTO has set up reference centres in over 100 trade ministries and regional organizations in capitals of developing and least-developed countries. These centres provide computers and internet access to enable ministry officials to keep abreast of events in the WTO through online access to the WTOs immense database of official documents and other material. Efforts are also being made to help countries that do not have permanent representatives in Geneva.The ultimate goal of the multilateral institution of GATT (WTO) is the provision of free global trade and economic relationship among members and that GATT is designed to achieve free trade and to improve market access by-(a) Having all protection take the form of tariffs;(b) Holding multilateral negotiation at which those tariffs are lowered and bound;(c) Ensuring that these agreements are implemented by requiring that any increase in a bound tariff must be compensated by the reduction of another;(d) Providing a mechanism by which signatories can settle disputes.The success of WTO in its role of increasing world trade is measured in accordance with the volume and growth of world trade and although this went up by 25% in the last 8 years, the benefits of that increase are not equitably shared among member states. For instance, only 0.03% of the world trade represented by the least developed countries which accounts for 20% of the worlds population.3. administering the Understanding on Rules and Procedures Governing the Settlement of Disputes or the Dispute Settlement Understanding which is Annex 2 to the agreement setting it up, 5. administering the Trade Policy Review Mechanism in Annex 3 of the agreement setting it up, and 6. cooperating as appropriate with the International Monetary Fund and the International Bank for Reconstruction and Development [a.k.a. the World Bank] with a view to achieving greater coherence in global economic policy making. This is aimed at building better understanding and coordination between a trade organisation like WTO and monetary institutions like IMF and World Bank. It may be said in passing that these are two financial institutions without good reputation with developing countries and that are seen by them to have been recommending economic reforms and structural adjustment programmes that destroy, rather than rebuild, their economies. The success of WTO in its role of increasing world trade is measured in accordance with the volume and growth of world trade and although this went up by 25% in the last 8 years, the benefits of that increase are not equitably shared among member states. For instance, the least developed countries [LCDs] represent 20% of the worlds population but they generate only 0.03% of the world trade flows.

Structural Organisation of WTO.The WTO Constitution and Charter provided that all GATT contracting parties were members of it and it has a Ministerial Conference which is its highest decision-making body under the governance structure set up by the Agreement establishing the WTO. The Conference of Ministers meets at least oncein two years bringing together all the countries and Customs Unions which, are members of WTO. The Conference can take decisions on all matters under any of the WTO Agreements. Previous Ministerial Conferences of WTO had been held in Singapore in 1996, Geneva in 1998, in Seattle, USA in 1999 and the next one is to be held in Doha, Qatar between 9 to 13November, 2001. Already WTO members have started making proposals, or request lists which are their negotiating objectives for this new round, on the structure and contents of the new negotiations to be held in Doha which comprise about 2000 services proposals ranging from services of accounting, audiovisual, computer, business, distribution, education, energy, environmental, legal, professional telecommunications, air and maritime transport services and related services to mention a few. However, whilst many developed and industrialised countries, their economic communities and developing countries which have already had breakthroughs in certain services dominate the proposals already sent for negotiations in a way that their national interests and commercial interests are protected and advanced, the African countries are yet to make their proposals at the conference if any, known. For instance, the proposals of Korea [a major ship-owning country] show that it supports negotiation for liberalization in the Maritime Transport Services [MTS] by eliminating or reducing market barrier that remain in many member countries and that negotiations on MTS be resumed based on the Decision on MTS adopted on 28June, 1996, Australias proposals show that its policy objective is a competitive industry which observes international standards of safety and environmental pollution in MTS by eliminating market access barriers. However, it has been argued that negotiations on maritime transport services will be particularly difficult, because of the unwillingness of the powerful US maritime lobby which is strongly opposed to MTS being negotiated at a multilateral level. In the same paper, Mr. McKay revealed that the Jones Act had been excluded from GATT since it was set up in 1947, due to the insistence of the US and despite the objections of other countries, on the grounds that it applied to domestic trade and had been in force 27 years before GATT.

Changes in the rules applied by WTO are made through multilateral negotiations called rounds during which many issues are negotiated together and trade-offs [or reciprocity] between different issues are made, that is to say one country gives a concession in an area such as lowering tariffs for a certain product, in return for another country acceding to a certain agreement. This is also called bartering benefits. GATT enforced phased-in tariff reductions worldwide and until the Uruguay Round which ended in 1994 trade negotiations were mainly on non-agricultural goods because the US wanted to protect its farming sector. However, due to the expansion of the corporate interests of the developed countries, more issues have now been included in GATT/WTO talks. Parts of the structure of WTO are the different Councils established to supervise the obligations in the key areas of trade and investment that were goods, services and intellectual property. There were also several annexes prescribing treaty rights and duties of contracting parties, dispute resolution mechanisms were established generally and specifically for key areas like GATS and TRIPS. The dispute mechanism is such that decisions are reached by consensus, that is, where no member present at a meeting where the decision is to be taken raises an objection to the proposed decision; no vote of contracting members is taken. If mediation, consultation or conciliation does not resolve a dispute, a complaints panel of trade experts to report to the contracting parties will be raised to look into the matters. Appeals against its decision are allowed only on issues of law to a body of legal experts, but should the relevant party not comply, the Dispute Settlement Body [DSB] comprising WTO members by consensus, can sanction the complainant to withdraw the benefits. By this means the handicap of dispute resolution in the GATT system was overcome. The WTO therefore has an effective enforcement capability.

The Trade Policy Review Mechanism [TPRM] of WTO looks at the general trade policies of members to see if they have or will have any adverse effects on member countries and as such is in a position to raise potential international trade problems before they raise their ugly heads and affect the trading world. With the aforesaid structure in place, the WTO is able to perform its role in international trade as set out in the Agreement establishing it. However, one of the criticisms of WTO is that it has been hijacked and is strongly influenced by the industrialised countries of the US, Canada, EU and Japan [a.k.a. the quad] and their corporations which have found WTO as a useful tool to expand their markets at the expense of the developing countries thereby creating inequities. Whilst exports from developing countries face impediments in accessing the markets of developed countries due to high tariffs, the developed countries gain access to the markets of developing countries through new agreements on telecommunications, information technology and financial services which they imposed on the basis of acting in the interests of trans-nationalcorporations [TNCs]. The Trade Related Intellectual Property Rights Agreement [TRIPS] is seen as protecting the rights of corporations at the expense of indigenous communities whose shared knowledge will be patented by other thereby making developing countries lose billons of dollars to TNCs which stand to control all the patents of developing countries. Developing countries make up three quarters of the membership and should be able to influence the agenda and decisions of WTO by their votes, but they have never used this to their advantage because of fear of reprisals from the developed countries on whose aid, security, imports, exports they depend.

Another disadvantage for signatories to the WTO Agreement that are developing countries, is that they lack enough human, material and technical resources to cope with the several meetings involved per week and so they enter negotiations less prepared than the developed countries. They also lack the legal expertise and cost for the dispute settlement mechanism of WTO and the basis on which the system is run- whether a country is violating free trade rules- is not most appropriate to their development needs.

In its editorial of 23October, 2001, titled Reviewing the WTO Treaty, a Nigerian Newspaper captured the view of developing countries about WTO when it said: The WTO for all that it is worth is a multilateral body of rich and poor nations which establishes a treaty to bind them together in trade and in the area of trade and tariffs. The essence is to eliminate barriers to free trade and ensure unrestricted movement of goods and services across borders. It is an association of unequal trade partners that thrives on unequal exchange and unequal bargaining power. Thus, over the years, beginning from its GATT predecessor, WTO has been used by industrialised nations as an instrument of neo-colonialism through which the economies of less-developed members are turned into dumping grounds of industrialised goods thuslimiting their capacity for industrialisation. Apart from the difficulty in penetrating the markets of developed countries by the less developed economies, most of the agreements are lopsidedly in favour of the former. Two of such agreements have caused so much furore in the third world. These are in the areas of agriculture and textiles. Signatories are to lower tariffs, reduce subsidies; but with developed countries refusing to eliminate other forms of domestic restriction already in place in their economies. An organisation known as Global Exchange has listed the following ten reasons why the WTO should be opposed namely, it only serves the interests of multinational corporations which write its rules and have inside access to the negotiations, it is a stacked court because its dispute panel consists of three trade bureaucrats who are not screened for conflict of interests, it tramples over labour and human rights because it has refused to address the impacts of free trade on labour rights and it is being used by corporations to dismantle environmental protections which it calls barriers to trade. Other stated reasons to oppose WTO are that it is killing people by strongly defending intellectual property rights, [patents and copyrights and trade marks] at the expense of health and human lives by supporting pharmaceutical companies blockage of developing countries access to less expensive generic lifesaving drugs, the US adoption of the WTO under the fast track method which limits public debate by not allowing amendments in its Legislature, was undemocratic, it undermines local development and penalizes poor countries because its rules prevent developing countries from following the same policies that developed countries pursued for protecting young domestic industries until they can be internationally competitive, it is increasing inequality, it undermines national sovereignty by creating a supranational court system that can economically sanction countries to force them to comply withits Rulings thereby replacing national governments with an un-elected, unaccountable corporate-backed government, and there is a growing opposition against free trade and the WTO and succeeded in disrupting the Seattle ministerial meeting in 1999. It has often been suggested that the recent bombing of the WTO twin-towers in New York City on 11September, 2001 by terrorists was partly caused by the general disenchantment with the unfair practices of the WTO and its manipulation by the US. Workers Unions in African countries have come together under the Organisation of African Trade Union Unity [OATUU] and are among groups and labour unions which are threatening to disrupt the Doha Ministerial Conference because of WTOs support for globalisation. Already the Nigerian Labour Congress has threatened strikes and protests to frustrate any intention by the Nigerian Government to enter into any fresh talks with WTO. It then called on the Federal Government of Nigeria to reconsider its role in the forthcoming Doha Round of negotiations because the negotiations are to involve environmental issues and investment where the developed countries have a comparative advantage, its role in the previous round was a disaster and the countrys representatives during the Abacha regime failed to use someof the clauses of the WTO Agreements giving Nigeria a grace period of five to ten years before getting into them Some Nigerians and some legislators have also called for Nigerias withdrawal from WTO whilst the Federal Government of Nigeria has set up a ten-man Committee to review Nigerias membership of WTO. It was charged with looking into the WTO Agreement with a view to reviewing and ensuring that Nigerian industries are protected and that the national economy is encouraged to grow and expand and to ensure the stoppage of dumping of goods in Nigeria. Some have also argued that it is in Nigerias national and commercial interests to immediately withdraw from WTO Agreement and take necessary trade and tariff measures for four to five years to protect its local industries and economy.

5. African Development bank have played a very important role is economic development of the African nations. Comment.

The African Development Bank (AfDB) Group is a regional multilateral development finance institution established to contribute to the economic development and social progress of African countries that are the institutions Regional Member Countries (RMCs). The AfDB was founded following an agreement signed by member states on August 14, 1963, in Khartoum, Sudan, which became effective on September 10, 1964. The AfDB comprises three entities: the African Development Bank (ADB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). As the premier development finance institution on the continent, the AfDBs mission is to help reduce poverty, improve living conditions for Africans and mobilize resources for the continents economic and social development. The AfDB headquarters is officially in Abidjan, Cte dIvoire. However, due to recent events in Cte dIvoire, the institutions activities have temporarily been relocated to Tunis, Tunisia.The African Development Bank Group Comprises of The African Development Bank, The African Development Fund and The Nigeria Trust Fund. The overarching objective of the African Development Bank Group is to spur sustainable economic development and social progress in its regional member countries (RMCs), thus contributing to poverty reduction. The Bank Group achieves this objective by

mobilizing and allocating resources for investment in RMCs; and providing policy advice and technical assistance to support development efforts. The African Development Bank is the Group's parent organization. The Agreement establishing the African Development Bank was adopted and opened for signature at the Khartoum,Sudan, conference on August 4, 1963. This agreement entered into force on September 10, 1964. The Bank began effective operations on July 1, 1966. Its major role is to contribute to the economic and social progress of its regional member countries - individually and collectively. As of 31 December 2011, the African Development Bank's authorized capital is subscribed to by 78 member countries made up of 53 independent African countries (regional members) and 25 non-African countries (non-regional members). The institutions resources come from ordinary and special resources. Ordinary resources comprise: the subscribed shares of the authorized capital, a portion of which is subject to call in order to guarantee ADB borrowing obligations; funds received in repayment of ADB loans; funds raised through ADB borrowings on international capital markets; income derived from ADB loans; and other income received by the Bank, e.g. income from other investments.Under Article 8 of the Agreement establishing the AfDB, the Bank is authorized to establish or be entrusted with administering and managing special funds which are consistent with its purposes and functions. In line with this provision, the African Development Fund (ADF) was established with non-African states in 1972 and the Nigeria Trust Fund (NTF) with the Nigeria Government in 1976. Other special and trust funds include: the Arab Oil Fund; the Special Emergency Assistance Fund for Drought and Famine in Africa; the Special Relief Fund The ADB is a multilateral development bank whose shareholders comprise 53 African countries (regional member countries RMCs) and 24 non-African countries (nonregional member countries non-RMCs). It was established in 1964 and officially began operations in 1967. It is headquartered in Abidjan, Cte dIvoire; however, because of political instability in Cte dIvoire, the ADB Governors Consultative Committee (GCC), at a meeting in February 2003 in Accra, Ghana, decided to move the Bank to its current temporary location in Tunis, Tunisia. The Bank Groups primary objective is to promote sustainable economic growth to reduce poverty in Africa. It achieves this objective by financing a broad range of development projects and programs through public sector loans (including policy-based loans), private sector loans, and equity investments; technical assistance for institutional support projects and programs; public and private capital investment; assistance in coordinating RMC development policies and plans; and grants of up to US$ 500,000 in emergency support. The Bank prioritizes national and multinational projects and programs that promote regional economic cooperation and integration.

The Agreement Establishing the African Development Bank designates the Board of Governors as the institutions highest policy-making organ, with one representative from each member country. The Board of Governors issues general directives on the Banks operations and approves amendments to the Agreement, the admission of new members, and strategies to increase the Banks capital. The ADB Board of Governors elects an 18-member Board of Directors to which it delegates its powers, with the exception of those reserved to it in the Agreement. Twelve Directors are elected from RMCs and 6 from non-RMCs for a 3-year term, renewable for one term. The Board of Directors oversees all Bank operations. The Boards of Governors elect the president of the Bank Group for a 5-year term, renewable for one term. The president, who must be from an RMC, chairs the Board of Directors, appoints vice-presidents in consultation with the Boards and manages the Banks daily operations.

The ADB provides loans to its clients on non-concessional terms. In 1997, it introduced 3 new loan products to meet the needs of its clients: a single-currency variable-rate loan, a single-currency floating-rate loan, and a single-currency fixed rate loan. The interest rate for the single-currency variable-rate loan is based on the quarters average cost of all outstanding Bank borrowings specifically allocated to fund these loans. The interest rate for the floating-rate loan is based on the 6 month LIBOR in the basket of currencies offered by the Bank. The rate for fixed-rate loans is based on the Banks cost of borrowing to fund them. The repayment terms for Bank loans are as follows: Repayment period of up to 20 years, including a grace period not exceeding 5 years for public sector loans; Repayment period of up to 14 years, including a grace period not exceeding 4 years for publicly guaranteed lines of credit; and Repayment period of 5 to 20 years, including a grace period of 1 to 3 years for private sector loans. The ADF is the lending arm of the ADB, it comprises the ADB and State Participants, was created in 1973 and became operational in 1974. Its main objective is to reduce poverty in RMCs by providing low-income RMCs with concessional loans and grants for projects and programs, and with technical assistance for studies and capacity-building activities. The Agreement Establishing the African Development Fund (ADF) designates the Board of Governors as the Funds highest policy-making organ. The Board of Governors meets at least once a year. The ADF Board of Directors includes 6 Executive Directors from non-RMCs nominated by their constituencies and 6 Executive Directors representing the ADB; it oversees the general operations of the Fund. The Funds resources come from contributions and periodic replenishments by participants, usually on a 3-year basis. No interest is charged on ADF loans; however, the loans carry a service charge of 0.75 percent per annum on outstanding balances, and a commitment fee of 0.50 percent per annum on undisbursed commitments. Project loans have a 50-year repayment period, including a 10-year grace period. Lines of credit have a 20-year repayment period with a 5-year grace period. The Fund also provides grants to RMCs; these do not carry any interest charges.

The Nigeria Trust Fund NTF is a special ADB fund created in 1976 by agreement between the Bank Group and the Government of the Federal Republic of Nigeria. Its objective is to assist the development efforts of low-income RMCs whose economic and social conditions and prospects require concessional financing. The NTF became operational in April 1976 following approval of the Agreement Establishing the Nigeria Trust Fund by the Board of Governors. Its initial capital of US$ 80.0 million was replenished in 1981 with US$ 71.0 million. Under the terms of the Agreement Establishing the NTF, the operations of the Fund were envisaged to come to an end 30 years after the Agreement came into force. Although the Bank and the Nigerian authorities agreed to 2 one-year extensions of the Agreement from its original expiry date of April 25, 2006, no new loans or grants have been approved from the NTF window since that date. In November 2006 an evaluation of activities of the Fund was commissioned and the exercise was completed in July 2007. On the basis of the evaluation exercise, findings and recommendations, and subsequent to the meetings held between the Bank and the Nigerian authorities in November 2007, the Agreement has been extended for a period of 10 years starting from April 26, 2008.The AfDBs primary objective is to assist African countries individually and collectively - in their efforts to achieve economic development and social progress. To this end, the institutions main challenge is to reduce poverty on the continent. Combating poverty is at the heart of the continents efforts to attain sustainable economic growth. The Bank therefore seeks to stimulate and mobilize internal and external resources to promote investments as well as provide RMCs with technical and practical assistance. In partnership with various international and development organizations, including the United Nations, the World Bank, and the International Monetary Fund, the AfDB has, since 2000, undertaken to support RMCs in their efforts to attain the Millennium Development Goals (MDGs)The African Development Bank Group finances projects, programs and studies in the areas of agriculture, health, education, public utilities, transport and telecommunications, the industry and the private sector. The Bank Group has, since 1968, also sought to finance non-project operations, including structural adjustment loans, policy-based reforms and various forms of technical assistance and policy advice. The AfDB Group has also widened the scope of its activities to cover new initiatives such as the New Partnership for Africas Development (NEPAD), water and sanitation as well as HIV/AIDS. The Bank Group is also involved in important initiatives on debt reduction, to the tune of US$ 5.6 billion under the Highly Indebted Poor Countries (HIPC) Initiative, which aims at reducing the debt stock of 33 eligible countries to sustainable levels. In 2006, the AfDB Group also made a commitment to cancel nearly US$9 billion owed by the countries concerned in order to help them attain the MDGs.Each member country is represented at the AfDBs Board of Governors, the Banks highest decision-making body. The Board of Governors elects the President during a session held in camera, open only to Governors and Alternate Governors of regional member countries and non-regional member countries. The presidential candidate is introduced by the Governor of the regional member country whose nationality they hold, and is elected for a five-year term, renewable once. The Board of Directors is responsible for the conduct of the Banks general operations and accordingly, has the authority to exercise all the Banks rights except those reserved exclusively for the Board of Governors. The AfDB President is responsible for the Banks management under the supervision of the Board of Directors. In this regard, he takes responsibility for the proper application of policies and guidelines issued by the Board. In July 2006, the Bank launched a major institutional reform aimed at strengthening the effectiveness of its operations on the ground, on the one hand, and on the other, to enhance its position as a centre for the exchange of knowledge in Africa. The Bank Group currently has about 1,500 employees, with the majority of them being Africans. The institution also hires from all parts of the world provided the candidates are nationals of non-regional members of the institution. While carrying out the Banks affairs, the President is supported by the Chief Economist along with five Vice Presidents who supervise 30 departments with 57 organizational divisions and 6 units. The Banks activities are controlled by the audit department, an independent evaluation unit and the internal administrative tribunal. In order to improve the quality of its interventions and dialogue with beneficiaries, the Bank Group has established offices in 25 regional member countries, with some of the offices covering many countries.AfDB funds are derived from subscriptions by member countries, especially non-regional member countries, borrowings on international markets and loan repayments. Its resources also come from ADF and Nigeria Trust Fund (NTF) capital increases. The role of the ADF is to provide the institutions regional member countries with resources to boost their productivity and economic growth. Its resources are derived directly from special contributions from states participants, especially non-regional member countries. Similarly, the NTF was established by the Nigerian government in 1976 to help the institutions most underprivileged member countries and provide 2-4% interest rate loans repayable over 25 years.

Most AfDB resources and projects are intended for its regional member countries (RMCs). Countries are classified under three categories on the basis of two criteria: (i) country-creditworthiness and (ii) GNI per capita. The first category comprises not creditworthy countries with a GNI per capita below an established threshold updated annually (in fiscal year 2013-2014: $1,205). Countries in the first category are only eligible for concessional resources from the African Development Fund window. The second category contains countries with a GNI per capita below the operational GNI cut off but creditworthy: these are called blend countries and are eligible for ADF and ADB resources. Finally, the third category is made up of countries above the operational GNI cut off and creditworthy. Those countries are eligible to ADB resources only. The Groups credit policy has been reviewed in May 2014, enabling, under certain conditions, an ADF eligible country to borrow non-concessional resources from the AfDB window.The overriding objective of the AfDB is to improve living conditions on the continent through various initiatives. For example, Africa has the lowest water resources development level, with only 4% of its annual resources invested in water. Nearly 40% of the cultivated areas are irrigated and the energy potential is virtually untapped. The management and development of water resources are among the most crucial issues facing Africa. To take up these enormous challenges on the continent, the AfDB has led many water-related activities. The most important include the AfDB Rural Water Supply and Sanitation (RWSSI) which will grant access to an extra 33 million people to safe drinking water and sanitation by 2010. The Bank also participates in other major initiatives such as the African Water Facility (AWF) and the NEPADs Water and Sanitation Programme. In the same vein, agriculture and rural development are among the AfDBs priorities. Projects to support the provision of rural infrastructure and the expansion of private agribusiness geared towards food security in Africa have been implemented. Road infrastructure, indispensable to regional integration and key to reaching isolated populations, is at the core of the Banks priority actions and projects

Assignment B

1. Critically examine the role of the following organization in promoting International trade0. UNCTAD0. International Trade Centre ( ITC ), Geneva0. Centre for Promotion of Imports from Developing Countries

i. UNCTAD

ObjectivesThe objective of UNCTAD is (a) to reduce and eventually eliminate the trade gap between the developed and developing Countries, and (b) and to accelerate the rate of economic growth of the developing world.Functions:The main Functions of the UNCTAD are:(i) To promote international trade between developed and developing countries with a view to accelerate economic development.(ii) To formulate principles and policies on international trade and related problems of economic development.(iii) To make proposals for putting its principles and policies into effect, (iv) To negotiate trade agreements.(iv) To review and facilitate the coordination of activities of the other U.N. institutions in the field of international trade.(v) To function as a centre for a harmonious trade and related documents in development policies of governments.Activities:The important activities of UNCTAD include (a) research and support of negotiations for commodity agreements; (b) technical elaboration of new trade schemes; and (c) various promotional activities designed to help developing countries in the areas of trade and capital flows.

About UNCTAD Established in 1964, UNCTAD (United Nations Conference on Trade and Development) promotes the development-friendly integration of developing countries into the world economy. 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. The organization works to fulfil this mandate by carrying out three key functions: It functions as a forum for intergovernmental deliberations, supported by discussions with experts and exchanges of experience, aimed at consensus building. It undertakes research, policy analysis and data collection for the debates of government representatives and experts. It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organizations and donor countries in the delivery of technical assistance.

The UNCTAD secretariat The UNCTAD secretariat provides substantive and technical services to the intergovernmental bodies of UNCTAD in their discussions and deliberations. Since its inception in 1964, the secretariat has thus serviced twelve sessions of the United Nations Conference on Trade and Development, meeting every four years, with the twelfth session having taken place in Accra, Ghana in April 2008. It has also fully serviced three United Nations Conferences on the Least Developed Countries, meeting every 10 years with the third Conference having taken place in Brussels, Belgium, in May 2001. The secretariat undertakes research, policy analysis and data collection to provide substantive inputs for the discussions of the experts and government representatives in these intergovernmental bodies. It also provides a series of technical assistance programmes and projects in support of developing countries, paying particular attention to the special handicaps of the least developed countries. The Secretary-General of UNCTAD is Dr. Supachai Panitchpakdi (Thailand), who took office on 1 September 2005. In performing its functions, the secretariat works together with member Governments and interacts with organizations of the United Nations system and regional commissions, as well as with governmental institutions, non-governmental organizations, the private sector, including trade and industry associations, research institutes and universities worldwide.

Overview of the main activities

Trade and commodities 1 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.

2 Competition and consumer policies Provides analysis and capacity building in competition and consumer protection laws and policies in developing countries. Publishes regular updates of a Model Law on Competition.

3 Trade Negotiations and Commercial Diplomacy Assists developing countries in all aspects of their trade negotiations.

4 Trade Analysis and Information System (TRAINS) Comprehensive computer-based information system on trade control measures that uses UNCTADs database. The CD-ROM version includes 119 countries.

5 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 1 International investment and technology arrangements: Helps developing countries to participate more actively in international investment rule making at the bilateral, regional and multilateral levels. These arrangements include the organization of capacity-building seminars and regional symposia and the preparation of a series of issues papers.

2 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.

3 Investment guides and capacity building for the LDCs: Some of the countries involved are Bangladesh, Ethiopia, Mali, Mozambique and Uganda. 4 Empretec: Promotes entrepreneurship and the development of small and medium-sized enterprises. Empretec programmes have been initiated in 27 countries, assisting more than 70,000 entrepreneurs through local market-driven business support centres.

Macroeconomic policies, debt and development financing 1 Policy analysis and research on issues concerning global economic interdependence, the international monetary and financial system, and macroeconomic and development policy challenges. 2 Technical and advisory support to the G24 group of developing countries (the Intergovernmental Group of 24) in the World Bank and the International Monetary Fund; advisory services to developing countries for debt rescheduling negotiations under the Paris Club.

3 DMFAS programme: Computer-based debt management and financial analysis system specially designed to help countries manage their external debt. Started in 1982, and now installed in 62 countries.

Technology and Logistics 1 ASYCUDA programme: 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.

2 ACIS programme: Computerized cargo tracking system installed in 20 developing countries of Africa and Asia.

3 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.

4 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.

5 Train ForTrade programme: Builds training networks and organizes training in all areas of international trade to enable developing countries to increase their competitiveness. Currently developing distance learning programmes focusing on the LDCs.

ii) INTERNATIONAL TRADE CENTRE (ITC) GENEVA

ITC is the joint cooperation agency of UNCTAD and WTO for business aspects of trade development. Originally created by the General Agreement on Tariffs and Trade (GATT) in 1964, ITC has been operated since 1968 under the joint aegis of GATT/WTO and the UN, the latter acting through the United Nations Conference on Trade and Development (UNCTAD). It is the focal point in the UN system for technical cooperation with developing countries and economies in transition in trade promotion and export development.

While UNCTAD and WTO work principally with governments, ITC works with the business community. In this context, the ITC clarifies the business implications of multilateral trade agreements and assists business in understanding, shaping and benefiting from trade rules. As a subsidiary agency of UNCTAD and the WTO, the ITC is subject to the governing bodies of both. ITC is also subject to the internal oversight procedures of the UN. The Executive Director of ITC is appointed by the Director-General of WTO and the Secretary-General of UNCTAD. Both UNCTAD and WTO are represented in the Joint Advisory Group supervising ITCs work, and have a number of joint technical assistance activities with ITC, which include: The Joint Integrated Technical Assistance Programme (JITAP)through which the three organisations provide Trade Related Technical Assistance (TRTA) to selected LDCs and other African countries, mainly focusing on building their capacity to participate in the trading system. In the provision of TRTA, there is a clear division of labour between the ITC and UNCTAD and WTO. While ITC focuses on trade promotion, UNCTAD and WTO focus on trade policy and regulation. Nonetheless, ITC has developed new competencies in specific specialised aspects of trade policy and regulation in areas related to business advocacy and business participation in the trading system. In joining their respective field of competence, the programme is aimed at avoiding duplication and enhance complementarities. The Integrated Framework for Least Developed Countries (IF)Within the IF, the WTO not only cooperates with ITC and UNCTAD, but also with other main agencies and institutions, namely the IMF, UNDP and the World Bank. WTO participates also to the Business for Development (B4D) initiatives. Regional B4D meetings are regularly organized with the support of WTO Secretariat, UNCTAD and the Geneva-based Missions. This mechanism intends to enable the private sector in developing countries to define their national priorities for the WTO negotiations, and to encourage governments to be more mindful of business concerns. JITAP, the IF and B4D are specific examples of Aid for Trade a much wider initiative aimed at helping developing countries, and the least-developed in particular, to build the supply side capacity and trade-related infrastructure they need to benefit more from trade opening and the WTO. Here too the WTO and ITC are working closely together to advance this initiative. ITC is one of the key international organizations represented on the Director-General's Advisory Group on Aid for Trade, where it's private sector expertise and orientation is particularly relevant to the WTO's efforts to better mobilize, monitor and evaluate Aid for Trade.

About ITC The International Trade Centre was established in 1964 to enable small business export success in developing countries by providing trade development programmes to the private sector, trade support institutions and policymakers. ITC works in partnership with the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD), supporting their regulatory, research and policy strategies and helping to turn them into practical projects. ITCs goal is to help developing countries to achieve sustainable development through exports; activating, supporting and delivering projects with an emphasis on competitiveness and to achieve the mandate, it work with national, regional and international bodies.

Goals and Objectives The goal of ITC is to help developing and transition countries to achieve sustainable human development through exports and it has taken the following initiative to fulfill its goal

AID for Trade Aid for Trade is the new frontier of development assistance. It is primarily a vehicle for enabling developing countries, particularly least developed countries, to integrate better into the multilateral rules-based trading system. ITC can legitimately claim to be the 100% aid for trade organization. The three strategic objectives of ITC correspond closely to at least three of the five parts of the Aid for Trade agenda. ITC contributes the business perspective, offering solutions to supply-side constraints that keep developing countries from participating more fully in world trade.

Trade for the millennium development goals The world development agenda is focused on the Millennium Development Goals (MDGs). They emerged from the Millennium Declaration signed by world leaders at the largest summit meeting ever assembled at the UN General Assembly in September 2000. ITC has achieved notable success in addressing the MDGs as integral components of its programmes. The MDGs have served as critical benchmarks for ITC in its efforts to reduce poverty and enhance the competitiveness of enterprises in poor communities by promoting their integration into the global value chain. Exports can have an immediate and tangible impact on peoples lives, both in the well-established trading countries and in those emerging from disruption and conflict. Exports generate employment and better incomes, contribute to womens empowerment and bring environmental benefits.

Strategic Partnership ITC has partnered with trade support institutions to deliver integrated solutions for export impact for good ITC plays a critical role in the development of trade support institutions (TSIs). ITC channels the majority of its technical support services through trade support institutions to ensure the widest dissemination and the sustainable transfer of knowledge and expertise. It will further develop, and better implement, benchmarking methodologies and tools to enable them to deliver outcomes and measure their performance at the international level.

Capacity Building We advise business on making the most of an open trading system and attend to the specific trade development needs of least developed countries. We help countries apply the benefits of new technologies, provide support to women entrepreneurs and promote environmentally friendly export initiatives. Then we provide the resources for success: facilitating profitable business generation helping to develop the right products and services identifying where the market is and connecting business helping develop skills and technical capacity for ongoing success.

Overview of its services ITC delivers five complementary business services

Business and trade policy ITC ensures that business priorities are integrated into national trade policies and that small business needs are taken into consideration in the negotiation of international trade agreements. It also help small businesses to conduct business strategically in todays increasingly competitive global trading system. Its main objective is to actively link businesses with policymakers through local trade support institutions.

Export strategy ITC helps policymakers and governments, as well as enterprises, to develop successful export development strategies, compatible with national planning frameworks and action plans proposed in diagnostic studies.

Strengthening trade support institutions ITC plays a critical role in the development of TSI networks. It develop and implement benchmarking methodologies and tools to enable TSIs to network more effectively and measure their performance at the international level.

Trade intelligence ITC provide trade data, information, analysis and related capacity building to enterprises, TSIs and policymakers to facilitate decision-making on export-related matters.

Exporter competitiveness ITC develop and deliver tools and services responding to the specific needs of exporting enterprises, with the aim of making them more competitive. These services are delivered in cooperation with, and through, TSIs by certifying trainers and programmes. Areas covered include enterprise management, procurement and supply chain management, quality and standards, export packaging, logistics and distribution. We also develop marketing and business environment solutions.

iii) CENTRE FOR PROMOTION OF IMPORTS FROM DEVELOPING COUNTRIES

CBI (Centre for the Promotion of Imports from developing countries) is part of the Netherlands Enterprise Agency and commissioned by the Ministry of Foreign Affairs of the Netherlands. Established in 1971 in order to support producers / exporters to get a foothold on the market in the Netherlands, support to Business Support Organisations in improving their capabilities and to act as a Matchmaker between suppliers and buyers. In 1991 the activities were expanded to EU.

The organisation has four departments dealing with: market information and training; export coaching; institutional development of business support organisations; general affairs and accounting.

Mission CBI contributes to the equitable economic development of selected developing countries by providing export marketing and management support to their SME exporters and Business Support Organisations with the purpose of increasing exports to Europe. CBI stimulates and supports economic activities that are sustainable, socially responsible and environmentally sound. This implies compliance with international social standards, more specifically ILO Conventions, and European consumer health, safety and environmental requirements. Requirements are both legislative and market driven. CBI works with clients who subscribe and strive to comply with these standards and requirements.

Competencies In order to accomplish its mission CBI concentrates on five core competencies. These are:

Market knowledge CBI has an intimate knowledge of the structures, characteristics, developments and requirements of markets in the European Union.

Product and production improvement CBI is able to provide technical assistance in improving products and production processes that contribute to the competitiveness on the EU markets.

Quality control Quality is of main concern to the consumers and end users in the European Union. There are multiple rules, regulations and standards on quality (originating from) stipulated by the European Union, national governments, trade & industry, non-governmental organisations, etc. CBI is able to coach exporters and business support organisations in meeting the requirements in this regard.

Export marketing and management CBI is able to provide technical assistance and training on improving export marketing and management knowledge and skills within companies and business support organisations.

Market entry Through its knowledge of the markets and its long year experience CBI is able to provide guidance and market entry services to companies in gaining access to, maintaining and expanding market share on the EU markets. For disciplines beyond our core competencies, CBI cooperates with various other specialized organisations.

Overview of the services The CBI offers the following services:

Market information The market information services of CBI include a variety of tools to keep exporters and Business Support Organisations (BSOs) in developing countries in step with the very latest developments on the EU market.

Company database The on-line company database presents a wide range of CBI-trained exporters from developing countries. All of these exporters have been audited by the CBIs European experts and have received extensive coaching for doing business in Europe through our export coaching programmes (ECPs).

Export Coaching The export coaching activities are designed to assist entrepreneurs in developing countries in entering and succeeding on the EU market and/or consolidating or expanding their existing market share.

Training The CBI provides tailorised training for exporters and BSOs in many fields, including the following: - General export marketing and management; - Trade promotion; - Managing international trade fair participations; and - Developing client-oriented market information systems.

BSO development The institutional capacity development support for selected BSOs focuses on: - Export marketing and management; - Market information services and systems; - Institutional development and organisational strengthening; and - Export diversification. The CBI is active in a number of specific market sectors and has built its client base around those sectors.

1. Briefly evaluate the main features of African Union? Analyze the impact of formation of this union on International Trade.

Introduction The advent of the African Union (AU) can be described as an event of great magnitude in the institutional evolution of the continent. On 9.9.1999, the Heads of State and Government of the Organisation of African Unity issued a Declaration (the Sirte Declaration) calling for the establishment of an African Union, with a view, inter alia, to accelerating the process of integration in the continent to enable it play its rightful role in the global economy while addressing multifaceted social, economic and political problems compounded as they are by certain negative aspects of globalisation. The main objectives of the OAU were, inter alia, to rid the continent of the remaining vestiges of colonization and apartheid; to promote unity and solidarity among African States; to coordinate and intensify cooperation for development; to safeguard the sovereignty and territorial integrity of Member States and to promote international cooperation within the framework of the United Nations. Indeed, as a continental organization the OAU provided an effective forum that enabled all Member States to adopt coordinated positions on matters of common concern to the continent in international fora and defend the interests of Africa effectively. Through the OAU Coordinating Committee for the Liberation of Africa, the Continent worked and spoke as one with undivided determination in forging an international consensus in support of the liberation struggle and the fight against apartheid.

Advent of the AU The OAU initiatives paved the way for the birth of AU. In July 1999, the Assembly decided to convene an extraordinary session to expedite the process of economic and political integration in the continent. Since then, four Summits have been held leading to the official launching of the African Union: The Sirte Extraordinary Session (1999) decided to establish an African Union The Lome Summit (2000) adopted the Constitutive Act of the Union. The Lusaka Summit (2001) drew the road map for the implementation of the AU The Durban Summit (2002) launched the AU and convened the 1st Assembly of the Heads of States of the African Union.

The Vision of the AU The AU is Africa's premier institution and principal organization for the promotion of accelerated socio-economic integration of the continent, which will lead to greater unity and solidarity between African countries and peoples. The AU is based on the common vision of a united and strong Africa and on the need to build a partnership between governments and all segments of civil society, in particular women, youth and the private sector, in order to strengthen solidarity and cohesion amongst the peoples of Africa. As a continental organization it focuses on the promotion of peace, security and stability on the continent as a prerequisite for the implementation of the development and integration agenda of the Union.

The Objectives of the AU To achieve greater unity and solidarity between the African countries and the peoples of Africa; To defend the sovereignty, territorial integrity and independence of its Member States; To accelerate the political and socio-economic integration of the continent; To promote and defend African common positions on issues of interest to the continent and its peoples; To encourage international cooperation, taking due account of the Charter of the United Nations and the Universal Declaration of Human Rights; To promote peace, security, and stability on the continent; To promote democratic principles and institutions, popular participation and good governance; To promote and protect human and peoples' rights in accordance with the African Charter on Human and Peoples' Rights and other relevant human rights instruments; To establish the necessary conditions which enable the continent to play its rightful role in the global economy and in international negotiations; To promote sustainable development at the economic, social and cultural levels as well as the integration of African economies; To promote co-operation in all fields of human activity to raise the living standards of African peoples; To coordinate and harmonize the policies between the existing and future Regional Economic Communities for the gradual attainment of the objectives of the Union; To ad