United Nations Conference on Trade and Development (UNCTAD)

Sharon Teng, Director

unctad@harvardmun.org

Topic A: Financial Regulation

In September 2008, the financial meltdown in the US triggered a global credit crunch, and the world economy experienced its first contraction since World War II. Before the crisis, mainstream economists argued that the complexity of the financial instruments increased the stability of the financial system, but free markets without prudent regulation proved to be a significant systemic risk. There are serious flaws in the global financial system, which call for timely, prudent regulation. UNCTAD seeks to add an international dimension to financial regulation in order to ensure sustainable development and financial stability across the globe. However, regulation is not a one-size-fits-all solution. For developed countries, there is a tradeoff between expansion and stability; developing countries aim to employ more sophisticated financial instruments, but highly complex financial instruments do not necessarily increase their economic and social welfare. UNCTAD will examine the role and necessity of financial regulation in this changed economic climate.

Topic B: Regionalization of Free Trade

In 1990, the number of trade agreements reported to the World Trade Organization totaled 20. Since then, that number has increased significantly, from 86 in 2000 to 159 in 2007. The majority of the agreements codified in the last 20 years have been bilateral, with a still sizable number of regional free trade agreements. This trend has grown out of a sense of frustration with the slow and at times stalled progress in multilateral negotiations. However, some have criticized this proliferation of bilateral and regional trade agreements on the grounds that they have led to increased discrimination in world trade. UNCTAD will examine the proliferation of free trade agreements and determine how best to manage their intricate webs in the face of crawling progress on the multilateral trade front.