The role of the UN in the modern world economy. The modern role of the UN system institutions in the regulation of the world economy (junctad, unido, etc.). Purchase information for this work

The first step towards the creation of the United Nations was the Declaration signed in London on June 12, 1941, in which the allies anti-Hitler coalition pledged to "work together with other free peoples both in war and in peace". In August of the same year, US President T. Roosevelt and British Prime Minister W. Churchill proposed a set of principles for international cooperation to maintain peace and security in a document known as the Atlantic Charter. Of course, this took into account the experience of the League of Nations, which failed to prevent the Second world war. In January 1942, representatives of 26 allied states that fought against the Axis countries (Germany - Italy - Japan) declared their support for the Atlantic Charter by signing the Declaration of 26 states. This document was the first official use of the name "United Nations", proposed by President Roosevelt. Then, in a Declaration signed in Moscow on October 30, 1943, the governments of the Soviet Union, Great Britain, the United States and China called for the speedy establishment of an international organization for the maintenance of peace and security. This goal was reaffirmed at a meeting of the leaders of the United States, USSR and Great Britain in Tehran on December 1, 1943. The first concrete contours of the UN were outlined at a conference held at the Dumbarton Oaks estate in Washington. It was this conference that formulated the basic principles of the activities of the United Nations (UN), determined its structure and functions. At the Yalta (Crimean) conference, Roosevelt and Churchill agreed to the participation of the Ukrainian SSR and the Byelorussian SSR in the UN as founding states (this was a tribute to the USSR, which fought alone with Germany until the opening of a second front in 1944). The leaders of the anti-Hitler coalition decided to convene a United Nations Conference on April 25, 1945 in San Francisco to develop the UN Charter.

The founding conference on the creation of the UN was held from April 25 to June 26, 1945 in the United States. Its convening before the end of the Second World War testified that the allies had reached mutual understanding on the main issues of creating a universal international state organization designed to bring peace to circuit boards, those. The UN Charter officially came into force on October 24, 1945, and this date is considered the birthday of the UN.

The United Nations is the center for solving the problems that all of humanity faces. The activities of the UN are carried out by the joint efforts of more than 30 related organizations that make up the United Nations system. The United Nations is not a world government and does not make laws. However, it provides tools that help resolve international conflicts and develop policies on issues that affect us all. In the United Nations, all Member States, big and small, rich and poor, with different political views and social systems-- have the right to express their opinion and take part in voting within the framework of this process.

The United Nations has six principal organs. Five of them - General Assembly, the Security Council, the Economic and Social Council, the Trusteeship Council and the Secretariat are located at United Nations Headquarters in New York. The sixth body - the International Court of Justice - is located in The Hague (Netherlands).

Along with the increasing role of global political problems a large place in the activities of the UN is occupied by economic aspects, which is expressed primarily in the expansion of the economic functions of the UN. All new spheres of the world economy, international economic relations are becoming the subject of its study, analysis, search for ways and means of their solution, development of appropriate recommendations. Meaning economic activity The UN grows with the complication of the processes taking place in world economic relations and the international division of labor, the aggravation of the problems arising in the world economy, the further expansion of the international economic cooperation.

In Article 1 of the UN Charter, in a concentrated form, the goals of international cooperation, including in the economic sphere, are formulated: “... to carry out international cooperation in resolving international problems of an economic, social ...” nature. Chapters IX and X of the Charter are entirely devoted to economic and social cooperation. In particular, Article 55 defines the specific goals of economic cooperation within the framework of the United Nations: “the creation of conditions for stability and prosperity necessary for peaceful and friendly relations”, “improving the standard of living, achieving full employment of the population”, promoting “economic and social progress and assistance." Fixed in Art. 2 general principles of international cooperation within the framework of the UN fully apply to the sphere of cooperation on economic problems. One of the central tasks of the United Nations is to promote higher standards of living, full employment and conditions for social and economic progress and development. 70% of the activities of the United Nations system are related to this task. Underlying this activity is the belief that eradicating poverty and improving human well-being everywhere are necessary steps towards creating the conditions for lasting world peace.

At the 60th Anniversary Session (September 2005), a high-level plenary meeting of the Assembly with the participation of Heads of State and Government took a comprehensive review of the progress made towards fulfilling all the commitments contained in the United Nations Millennium Declaration. Much attention at the session was paid to the need to achieve the agreed international level development goals and global partnerships for progress at the national, regional and international levels; while emphasizing the importance of fulfilling the decisions and commitments made at international conferences and meetings at highest level United Nations in the economic, social and related fields.

The United Nations Conference on Trade and Development (UNCTAD) and the United Nations Commission on International Trade Law (UNC1TRAL) occupy an important place in the regulation of international trade. .

UNCTAD - body of the UN General Assembly, founded in 1964 p. its formation was based on the fact that the GATT was a semi-closed organization, a kind of "club of the elite", the entrance to which was closed to the states. Therefore, on the initiative of the socialist and a number of developing countries, it was decided to create a body in the UN system that would regulate international trade on principles that were supposed to be more equitable. The main idea of ​​the ac fields is to shift the emphasis in the regulatory mechanism in favor of countries, especially the least developed ones. These principles were specifically reflected in the "Charter of Economic Rights and Duties of States", which was developed by UNCTAD and adopted by the General Assembly in 1976.

UNCTAD includes 192 states, including Ukraine. The headquarters of the organization is located in Geneva.

The main goal of UNCTAD is to promote the development of international trade in order to accelerate international development especially developing countries.

§ activation of intergovernmental cooperation between developed and developing countries;

§ strengthening cooperation between developing countries among themselves;

§ coordinating the actions of multilateral institutions in the field of international trade and development;

§ mobilization of human and material resources through joint action by governments and society;

§ Intensifying cooperation between the public and private sectors.

The objectives of UNCTAD determined its functions:

1. Regulation of trade and economic relations between the state.

2. Development of measures to regulate international trade in raw materials.

3. Development of trade policy principles.

4. Analysis of the trend of world development and international trade.

5. Discussion actual problems international economic relations.

6. Coordination of the activities of the bodies and institutions of the "UN" on international trade and development.

7. Cooperation with international organizations in the field of international trade (primarily with the WTO).

The activities of UNCTAD are based on the following principles: equality of states in international trade relations; inadmissibility of discrimination and economic pressure; spread of the most favored nation treatment in international trade; granting privileges to developing countries on the basis of "non-reciprocity"; the abolition of preferences enjoyed by developed countries in the markets of the weakest countries; promoting the expansion of exports from developing countries. These and some other principles are declared in a document called "Principles of International Legal Relations and Trade Policy".

UNCTAD hosted Active participation in developing the principles of the "New International Economic Order", which was initiated by developing politicians. In this direction, in particular. The conference insists on limiting the practice of anti-dumping measures, which are widely used by developed countries against less developed ones (Ukraine also suffers from this), and on the abandonment of trade blockades and embargoes. UNCTAD defines what different groups countries have unequal opportunities, so in international trade it is necessary to take into account the problems of less developed countries. On the eve of the UNCTAD session (1996), a ministerial meeting of the "Group of 77" was held, which consists of developing countries; they discussed the problems of stimulating the development of the economy in the context of trade liberalization and the globalization of the world economy.

Since commodities remain the main export commodity for the least developed countries, UNCTAD is paying particular attention to the trade in commodities. Formed special research groups on raw materials, relevant international agreements have been concluded, conventions on the terms of trade in raw materials have been signed. On the initiative of UNCTAD, the Integrated Program for Commodities (IPTS) was developed and adopted in 1976. The goal of the program is to stabilize prices for raw materials and assist the least developed countries in their industrial processing.

In the development of an international mechanism for trade policy, an important place is occupied by measures to determine preferences for developing countries, to remove tariff barriers, and to improve the structure of their exports. Particular attention is paid to the least developed landlocked countries (of which there are many in Africa) and island countries.

In addition to purely trade, UNCTAD knows other issues of international economic cooperation. Currency and finance; shipping; technology transfer insurance; international investment.

The analytical work of UNCTAD covers the following areas: trends in the world economy and their impact on the development process; macroeconomic policy; specific problems of development, use of successful development experience by developing countries and countries with economies in transition; issues related to financial flows and debts. Based on the results of the research, a bank of information provided to member countries is compiled.

Organizational structure of UNCTAD:

1. Conference.

2. Council for Trade and Development.

3. Secretariat.

The Conference is the supreme body of UNCTAD. It meets in session once every four years at the ministerial level and determines the main directions of international trade and development policy. The decisions of the Conference are predominantly advisory, they are not binding on all members; this UNCTAD differs significantly from the WTO, where decisions are binding.

Trade and Development Council - executive body; a feature is the possibility of participation in its work of representatives of all member countries who wish (now there are 146 of them). The Council holds annual sessions where issues of global politics, problems of trade, monetary and financial relations, trade policy, and economic reforms are discussed.

The following functional commissions are subordinate to the Council: the Commission for Trade in Goods and Services and from Raw Materials; Commission on Investment, Technology and Finance; Business Commission.

The Secretariat is part of the UN Secretariat; is headed by the Secretary General, who is the Deputy Secretary General of the United Nations. The Secretariat includes two services: coordination and policy; external relations. In addition, in its work, the Secretariat relies on 9 departments:

§ commodities;

§ international trade;

§ services sector;

§ economic cooperation among developing countries;

§ global interdependence; TNCs and investments;

§ science and technology;

§ less developed countries;

§ management services.

In common with WTO known UNCTAD runs the International shopping mall.

Funding for UNCTAD comes from the following sources: funds from UNDP, the European Commission, the World Bank, individual donor countries. Among the latter are predominantly Western European countries and Japan.

UNCTAD has an uneasy relationship with the WTO; in fact, they are competitors in the regulation of world trade. UNCTAD membership is dominated by developing countries; their representatives will be able to implement principles and decisions that are often not in the interests of developed countries (at least, for example, the spread of the "non-reciprocity" principle). That is why the states that have unquestioning authority in the WTO are trying to give more weight in international trade relations of this particular organization. Indeed, the authority of the WTO is higher than that of UNCTAD. Not the last role in this is played by the principle of decision-making: their recommendatory nature in UNCTAD sometimes allows them to be ignored, and this weakens its authority. Thoughts were even expressed: is UNCTAD needed at all? But later it was possible to separate the functions of the two organizations: UNCTAD develops general trade and political principles in the context of development, and the WTO knows purely trade issues.

Essay

by discipline

« World economy»

on the topic of:

“The role of the UN in development pestilence economy»

Vladimir 2011

Introduction

For many years now global community in solving the most important tasks in the field of international economic relations, it relies on the United Nations, which is global in nature. There are more and more political problems in the world. The UN is trying to resolve them, but along with this, its role in solving economic issues is increasing. More and more new areas for it in international economic relations are becoming the subject of detailed analysis, study, ways to solve a particular issue. For example, the UN helped develop critical economic indicators which are currently used worldwide. At the same time, the structure of the organization itself is becoming more complex and new institutions are emerging, the number of countries participating in its activities is increasing, the number of contacts with both international and international organizations is growing. national organizations various countries.

With the development of international economic relations, the deepening of specialization and the international division of labor, there is an increasing need for quick and effective decision-making regarding international problems and economic activity countries.

But still, the United Nations is primarily political in nature. This can be seen from the principles enshrined in the Charter. It does not contain any specially stipulated principles on which the economic cooperation of both these states and the whole world would be based. However, there are a number of principles that describe the economic cooperation of states, but they are not specifically highlighted and relate to general principles cooperation between countries that are members of the World Trade Organization.

1. The role of the UN system in the development of multilateral regulation of IER

The activities of the UN are increasingly influencing the nature and development of the most important socio-economic processes at the global and national levels. As an international forum for discussing and making purely political decisions on the most topical issues within the framework of almost all spheres of human activity and international relations, the UN determines the priorities, goals and strategies for the development of international cooperation in the formation of the world economic space.

The activities of the UN are carried out in four main areas:

1)overcoming global economic problems;

2)assistance in cooperation to countries with different levels of economic development;

)promoting the economic growth of developing countries;

)search for solutions to problems related to regional development.

To solve these problems, the following forms of activity are used:

. Information activity.Its goal is to influence countries in the field of economic policy. The result of this work can only be seen in the future. Statistical data from various fields are collected and processed, analyzed, and on the basis of this, states receive information related to economic development.

. Technical and advisory activities.It manifests itself in the form of technical assistance to various countries. But when providing such assistance, the principles of non-interference in the internal affairs of a given country should be used, equipment should be of really high quality and should be provided in a form convenient for a given country.

. Monetary and financial activity.It is carried out with the help of international organizations: the International Finance Corporation, the International Bank for Reconstruction and Development, the International Monetary Fund, the International Development Association. From a formal point of view, all these organizations are specialized units UN.

There are six main organs of the UN mentioned in the Charter. But within the framework of economic cooperation, three of them are distinguished: the General Assembly, the Economic and Social Council and the Secretariat.

General Assemblyis essentially a forum for discussion critical issues economic nature. The Assembly may, at its discretion, establish organizations for the international cooperation of states in various fields such as the United Nations Conference on Trade and Development (UNCTAD) and others.

Economic and Social Council(ECOSOC) - next in importance after the General Assembly. He \ coordinates the activities of the UN in the socio-economic sphere. The main body of ECOSOC is the Council session. Every year three sessions are held on different issues: spring - on humanitarian and socio-legal issues, summer - on socio-economic issues and an organizational session. Its main functions are: qualified discussion and development of the main political line on the most important world issues, coordination of activities on socio-economic issues, research in the field of international cooperation and socio-economic development. Thus, the Economic and Social Council coordinates the activities of its standing committees, various commissions and subcommissions, regional economic commissions, as well as UN specialized agencies.

UN Secretariat- an administrative and executive body designed to ensure the normal functioning of the UN institutions and agencies that perform certain functions. Most of the employees of the Secretariat work for the economic service. The UN economic service includes several divisions, the largest of which is the Department of Economic and Social Affairs.

Many UN organizations carry out their activities in the field of international economic relations. The Conference on Trade and Development, although it is not a trade organization, is attended by almost all countries - members of the UN. It promotes the development of world trade, ensures the observance of the rights of countries in cooperation, develops principles and recommendations, as well as mechanisms for the functioning of relations between countries, and participates in the activities of other UN economic institutions.

The United Nations Industrial Development Organization promotes the industrialization of developing countries. This organization provides both material assistance and develops recommendations on the use of resources, setting up production, conducting research and development and creating special production management bodies.

The United Nations Development Program is a program to provide assistance to developing countries in the most important sectors of the economy. It includes technical, pre-investment and investment assistance.

The Food and Agriculture Organization of the United Nations is responsible for coordinating the activities of other organizations to provide material and non-material assistance.

The United Nations Economic Commission for Europe solves problems of an ecological nature, in the field of efficient use of energy and in the transport and forestry sectors (from the standpoint of ecology).

The Economic Commission for Africa provides advice on the economic development of the African continent. Economic Commission for Latin America and Caribbean performs the same functions, only for the given region.

Economic and Social Commission for Asia and Pacific Ocean promotes regional economic cooperation, technology transfer, investment and infrastructure development in the region.

The Economic and Social Commission for Western Asia creates favorable conditions for the development of cooperation in various fields and strengthens economic relations.

2. The current role of the institutions of the UN system in regulating the world economy

The UN is characterized by great institutional diversity, which is manifested in the wide representativeness of both members and organizations cooperating with the UN. Firstly, The UN is a collection of bodies(General Assembly, Economic and Social Council, Secretariat, etc.). Secondly, the UN acts as a system of organizations consisting of specialized and other independent institutions ( The World Bank, International Monetary Fund, United Nations Conference on Trade and Development, United Nations Industrial Development Organization, etc.).

Many specialized UN agencies play an active role in the development and unification of economic policy measures, analyze the state of international markets and infrastructure, and contribute to the harmonization of rules and procedures of private commercial law. Among the regulatory functions of the UN and the agencies responsible for developing international business regulations, the most important are the following:

· implementation of agreements on areas of state jurisdiction (General Assembly), which helps determine which country has the authority in relation to a particular land and water territory, airspace, stipulating, for example, the conditions for transportation or mining;

· implementation of agreements on intellectual property rights (World Intellectual Property Organization - WIPO). Export of high-tech products, security trademarks and patents would be complicated without respect for the highly regulated intellectual property rights protected through WIPO and TRIPS (Treaty on Trade-Related Aspects of Intellectual Property Rights).

· unification of economic terms, systems of measures and indicators (UN Statistical Commission, UN Commission on International Trade Law - UNCITRAL, etc.). Virtually all UN bodies provide some degree of standardization, which facilitates objective international comparisons;

· development and harmonization of the rules of international commercial activity (UNCITRAL, UN Conference on Trade and Development - UNCTAD). The regulation of commercial activities strictly through the proposed tools and procedures undoubtedly promotes trade and logically links the global flows of goods and information,

· prevention of damage to goods and services on world markets and provision of cost recovery (UNCITRAL, International Organization civil aviation, International Maritime Organization, international union Telecommunications, Universal Postal Union). Without effective agreements to prevent damage to carriers and goods, as well as guarantees for the preservation of information, businesses would be less inclined to conduct international business transactions.

· combating economic crime (United Nations Commission on Crime Prevention and Criminal Justice). Criminal activity creates an additional financial burden for law-abiding businesses, as it indirectly encourages corruption, limits free competition, and inevitably increases security costs;

· collection, analysis and dissemination of reliable economic information that contributes to the conclusion international agreements(UNCITRAL, UNCTAD, World Bank) assists countries and companies in evaluating markets, comparing their own resources and capabilities, and developing foreign trade strategies.

The issues of investment in developing countries, the development of small and medium-sized businesses are currently among the most pressing. They affect any UN agency with a mandate in the field of economic development. Leading among them are the United Nations Industrial Development Organization (UNIDO) and the United Nations Development Program (UNDP). UNIDO is making the necessary efforts to increase the economic potential of developing countries and countries with economies in transition through the development of their industrial enterprises. The advice provided by UNIDO is designed to help these countries overcome social and economic areas and achieve greater and more successful participation in international cooperation.

UNDP promotes business development through financing and support mechanisms for private and public companies in developing countries. UNDP and UNCTAD, among other UN agencies, regularly involve business representatives in forums and seminars on economic issues

3. United Nations Conference on Trade and Development - UNCTAD: place and role in the regulation of IER

conference international economic world

Created in accordance with the resolution of the General Assembly in 1964 as a special permanent body of the UN. It is a representative multilateral trade and economic organization. The first session of the Conference took place in Geneva in 1964 (Switzerland). Membership in UNCTAD is open to any UN Member State, UN Specialized Agencies and International agency on atomic energy. Thereafter, UNCTAD sessions were held every four years. The last session was held in Midrand (South Africa) in May 1996. The next X session was in 2000 and was held in Thailand.

UNCTAD members are 186 UN member states, including Russia and 3 members representing specialized agencies.

Aims and main activities of UNCTAD

Objectives of UNCTAD:

  • promoting the development of international trade in order to accelerate economic growth and development, especially in developing countries;
  • establishing principles and policies relating to international trade and related problems of economic development, in particular in the field of finance, investment, transfer of technology;
  • consideration and assistance in organizing the activities of other agencies within the UN system in the field of international trade and related economic development problems;
  • taking, if necessary, measures for negotiating and approving multilateral legal acts in the field of trade;
  • coordinating the policy of governments and regional economic groupings in the field of trade and related development, acting as a center for such coherence. The activities of UNCTAD are based on the functions defined by Resolution 1995 (XIX) of the UN General Assembly.

The main activities of UNCTAD are as follows.

. Regulation of trade and economic relations between states;development of concepts and principles for the development of world trade. A special place in this activity is occupied by the development of the "Principles of International Trade Relations and Trade Policy". These are: the implementation of trade and other economic relations between countries on the basis of equality, respect for sovereignty, non-interference in the internal affairs of countries and mutual benefit; inadmissibility of discrimination and methods of economic pressure in any form; consistent and universal application of the most favored nation treatment in all matters of trade, with the provision of special benefits by developed countries in favor of developing countries; the abolition of preferences enjoyed by certain developed countries in developing countries; facilitating the access of goods of third countries to the markets of member countries of economic groupings; stabilization of commodity markets through the conclusion of international commodity stabilization agreements; improving the commodity structure of developing countries' exports by increasing the share of finished and semi-finished products in it; promoting the improvement of the invisible trade of these countries; economic and technical assistance and the provision of concessional, public and private, credits by developed countries to developing states in order to complement and facilitate the efforts of the latter without any conditions unacceptable to them of a political, economic, military or other nature. Subsequently, these principles formed the basis of the “charter of economic rights and obligations of states” (1976) developed within the framework of UNCTAD. The resolution adopted by the 1st session of UNCTAD notes the need to: stop the further growth of protectionism, reduce and eliminate quantitative restrictions on trade; the adoption by developed countries of measures to abolish the application of anti-dumping procedures and countervailing duties that are detrimental to third countries; seek changes in the international trading system with a view to improving and strengthening it through respect for the principles of most favored nation; renunciation of measures of economic coercion - the policy of trade restrictions, blockades, embargoes and other economic sanctions against developing countries.

The ninth session of UNCTAD, held in 1996 and devoted to the problem of “promoting growth and sustainable development in a globalized and liberalized world economy”, determined the further directions of UNCTAD's work in the field of trade and development, aimed at the full integration of developing countries, in particular the least developed, and countries with economies in transition into the world economy and into the system of world economic relations. These objectives and specific practical recommendations were articulated in the Final Act of the session entitled “Partnership for Growth and Development”. The conference also adopted a declaration recognizing the different starting points and different impacts of the globalization process on individual countries and stressing the importance of strengthening cooperation between developed and developing countries, between developing countries themselves, between multilateral organizations, as well as dialogue and cooperation between public and private sectors to strengthen development cooperation.

The beginning of the IX session of UNCTAD was preceded by a meeting of the "Group of 77" at the ministerial level and a meeting of ministers of the three regional groups, which preliminary discussed the issues of stimulating growth and development in the context of the liberalization and globalization of the world economy.

. Development of measures to regulate international trade in commodities.UNCTAD plays a leading role in the entire system of international organizations involved in the regulation of world commodity markets. These issues are considered both at UNCTAD sessions and in the Trade and Development Council, and at various kinds of special meetings held within UNCTAD.

As a result of the intergovernmental negotiations held within the framework of UNCTAD, a number of international commodity agreements were concluded; study groups on commodities have been set up with the participation of producing and consuming countries; signed conventions and agreements in various fields. In the system of regulation of world commodity markets important role played the Integrated Program for Commodities - IPTS, the decision to develop which was taken at the IV session of UNCTAD in 1976. The task of the program was to improve conditions on world markets for 18 commodities that are of particular importance for the exports of developing countries. To this end, an agreement was signed in 1980 to establish a Common Fund for Commodities to finance the buffer stocks of raw materials provided for in separate commodity agreements concluded under the IPTS. The ultimate goal of the IPTS is to stabilize commodity prices on world markets and to increase the participation of developing countries in the processing and marketing of their commodities.

. Development of measures and means of ready policy and economic cooperation.Within the framework of UNCTAD, a general system of preferences was created for the import of goods from developing countries, which came into effect in 1976; developed: measures to eliminate tariff barriers; the main measures to assist developing countries in the restructuring of the economy; new forms of agreements on industrial and trade cooperation. At the VI (1983) and VII (1987) sessions of UNCTAD, the main problems of enhancing economic development and international trade on the basis of multilateral cooperation were formulated; assessed current economic trends, including the role of the private sector in development, as well as global structural changes; developed policies and measures in the following areas: resources for development, currency issues; commodities; international trade; problems of the least developed countries. In the Final Act following the results of the VII session, the listed problems were assigned to UNCTAD as the main directions of its activities. This has helped to strengthen UNCTAD's mandate to operate in virtually all areas of world trade. UNCTAD VIII recognized the need for institutional adjustments to take advantage of new opportunities in international development cooperation, including the development of guidelines for expanding UNCTAD's work in sustainable development(interaction of trade and environmental policy issues, sound management natural resources, environmentally sound technologies, the impact of production and consumption practices on sustainable development).

. Promoting the development of economic cooperation among developing countries;negotiating the creation of a global system of preferences among developing countries; development of a program of action for the world community to assist in overcoming the economic backwardness of the least developed countries.

Holding meetings of experts, government representatives, diplomatic negotiation conferences with the aim of coordinating the policy of governments and regional economic groupings on the development of world trade and other problems.

In addition to issues related directly to international trade, UNCTAD deals with a wide range of other issues of international economic cooperation: currencies and finance; shipping; technology transfer insurance; economic cooperation among developing countries; special measures in favor of the least developed, island and inland developing countries. In 1992, UNCTAD member states decided on a new partnership for development, the Cartagena Agreement (UNCTAD-VIII). This agreement articulates policies and measures in the interrelated areas of finance, trade, commodities, technology and services, and makes recommendations to address both old and emerging trade and development challenges. The analytical part of the activity includes a systematic study of the influence of national and international politics on development, with a focus on management issues.

The regulation of world transport problems has become important. Within the framework of UNCTAD, the following were developed: the Convention on Transit Trade of Inland States (1965); Code of Conduct for Linear Conferences (Shipowners' Cartels) (1974); UN Convention on International Multimodal Transport of Goods (1980).

. Regulation of restrictive business practicescarried out through the development of a Code of multilaterally agreed principles and rules for the control of restrictive business practices, as well as various measures to regulate the activities of transnational corporations. For many years, UNCTAD has been working on the creation of a Code of Conduct on Technology Transfer.

. Conducting analytical work on a wide range of problems.In particular, the IX session of UNCTAD (1996) identified four major areas:

globalization and development,including the study of specific questions relating to the participation in international trade and investment of developing countries, to the stimulation of their growth and development, to the monitoring of the implementation of the Program of Action for the Least Developed Countries for the 1990s;

investments, development of enterprises and technologies, including the preparation of printed publications with the analysis of investment data, assistance in the development and implementation of development strategies in enterprises; determination of policy directions for technological development and innovation;

international trade in goods and servicesand preparation of printed publications on assistance to developing countries in the development of the service sector; on matters relating to competition law, promotion integration processes in trade, environment and development issues;

development of infrastructure in the service sector withthe purpose of increasing the efficiency of trade, in particular, through the development of global telecommunications networks, modern means of information transmission, and the implementation of training programs.

UNCTAD publishes the following publications: Reports on the least developed countries; Bulletin of UNCTAD; Transnational corporations; Science and technology today; Advanced Technology Assessment System; Sea transport; commodity prices; UNCTAD Review is a monthly newsletter.

A decision was made to establish a computerized data bank in UNCTAD on measures affecting trade in services. It should be an important tool in supporting the efforts of developing countries to participate more effectively in international trade in services.

. Acting as a forumto analyze the discussion and compare the positions of governments of different countries on a wide range of issues of international economic relations, as well as for negotiations between various groups of countries on a number of specific issues of international trade and development.

. Facilitate coordination of activities within the UNon international trade issues; preparation of documents for the General Assembly, ECOSOC and other organizations on the development of world economic relations; cooperation on a number of aspects of international trade with the UN ECOSOC regional commissions.

. Cooperation with international economic organizationsfirst of all with the WTO, with the International Trade Center UNCTAD/WTO, in order to eliminate duplication and harmonize areas of activity.

The highest body of UNCTAD is the Conference(two concepts should be distinguished: the Conference as the name of the organization itself and the Conference as the name supreme body). The conference meets in sessions every four years at the ministerial level to determine the main directions of policy and to decide on issues related to the program of work. A total of 10 sessions were held.

I session - in 1964 in Geneva (Switzerland); II - in 1968 - in Delhi (India); III - in 1972 - in Santiago (Chile); IV - in 1976 - in Nairobi (Kenya); V - in 1979 - in Manila (Philippines); VI - in 1983 - in Belgrade (Yugoslavia); VII - in 1987 - in Geneva (Switzerland); VIII - in 1992 - in Cartagena (Colombia); IX - in 1996 - in Midrand (South Africa), X - in 2000 - Thailand.

With the creation of the WTO, opinions began to be expressed almost openly about whether this organization is needed at all. However, an understanding has now been reached that the world community needs UNCTAD, since it develops general trade and political principles in the context of the development of the world economy, while the WTO is left mainly with purely trade issues.

Decisions taken by consensus at UNCTAD sessions are not legally binding. But even at the second session, it was unanimously recognized that they "should lead to actions favorable to international trade." Thus, UNCTAD documents are formally less binding than the WTO. Such documents include, for example, the Principles of International Trade Relations and Trade Policy Conducive to Development and the Charter of Economic Rights and Duties of States.

In the field of trade in finished and semi-finished products, which account for 3/4 of the world trade turnover, the most important event of UNCTAD was the creation of the Generalized System of Preferences (GSP), which has been operating since 1971. This system provides for the reduction or abolition of customs duties all industrialized countries in trade with developing countries on a non-reciprocal basis, i.e. without demand from the last counter trade and political concessions. Although many donor countries have made various exemptions from their schemes of such preferences (in relation to certain groups of goods and countries - recipients of preferences), the CAP plays a large role in promoting the expansion of exports of manufactured products of economically lagging states.

UNCTAD sessions are multilateral economic forums held within the UN system. Most UNCTAD decisions on the merits of the issues under consideration are non-binding and are advisory in nature. Over 160 resolutions have been adopted at the past first seven sessions of UNCTAD; the number of resolutions worked out at regular and special sessions of the Trade and Development Council exceeded 400. UNCTAD has developed a wide range of other multilateral documents: conventions, agreements, agreed conclusions, codes of various legal force.

The executive body of UNCTAD is the Council for Tradeand development, which provides work between sessions of the Conference. The Council submits annually to the Conference and the General Assembly, through ECOSOC, reports on its activities. Access to the Council is open to all UNCTAD member countries. In 1996, the number of members was 115.

The Trade and Development Board holds regular sessions once a year in the fall for 10 days. In addition, the Council holds special sessions, meetings of commissions and other subsidiary bodies for a wide range problems of world trade and economy. At regular sessions, issues of global politics, the interdependence of the economies of the countries of the world are discussed; problems of trade and monetary and financial relations; trade policy, structural adjustment and economic reforms. The Council oversees the entire scope of UNCTAD's activities, oversees the implementation of the Program of Action for the Least Developed Countries, and new program United Nations for African Development.

The working bodies of the Councilsince 1997 are commissions, which coordinate activities in the areas assigned to them: on investment, technology and financial issues; trade in goods and services; for the development of private entrepreneurship. The commissions held their first sessions in 1997. A maximum of 10 annual meetings of ad hoc working group experts are planned. The commissions replaced the four standing committees that had existed until 1996.

Secretariatforms part of the UN Secretariat and is headed by the Secretary General. It consists of two services: policy coordination; foreign relations, as well as nine departments; (1) commodities; (2) international trade; (3) services and trade efficiency; (4) economic cooperation among developing countries and special programs; (5) global interdependence; (6) trans - national corporations and investments; (7) science and technology; (8) least developed countries; (9) services in the field of management and operational and functional support of programs. It also includes joint divisions that work jointly with the regional commissions. The secretariat services two subsidiary bodies of ECOSOC, the Commission on International Investment and Transnational Corporations and the Commission on Science and Technology for Development.

The activities of UNCTAD have had a significant impact on the entire multilateral system of regulation of international trade. In particular, this led to the implementation of the modernization of the GATT. A new fourth part appeared in the General Agreement, which recognizes the special role and special place of developing countries in international economic relations. Related to the work of UNCTAD are also changes in the activities of the IMF and IBRD, expressed in a certain turn towards the needs of developing countries and especially the least developed ones. UNCTAD initiated the provision of non-reciprocal and non-discriminatory preferences, which are important elements of a modern international trade regulation system. UNCTAD has made a significant contribution to the creation of a new integrated system of regulation of world commodity markets.

Conclusion

In addition to regulatory functions, the UN specialized agencies develop long-term strategies and tools in relation to the problems of the world economy on the basis of international expert consultations and agreements with governments and offer the world community possible ways to solve them.

The terms of reference of UNCTAD cover almost all relevant economic and legal aspects of modern international trade and related issues of economic development.

Within the framework of UNCTAD, the "Group of 77" was formed and acquired its modern role, named after the number of developing countries that have created a common platform for protecting their economic interests in international trade. The "Group of 77" played an important role in shaping the UN's international strategy on economic issues and relations with developing countries. UNCTAD has developed and is implementing new organizational forms of work that make it possible to find a balance of interests of various countries and various groups of countries on the problems of international economic cooperation. A characteristic of UNCTAD's work is the preliminary determination of positions within each group of countries, which ensures a more balanced consideration of the interests of the countries represented in the development of common decisions.

UNCTAD plays a key role in the UN system in dealing with issues of international trade, finance, investment and technology, in particular, assisting developing countries in creating enterprises and developing entrepreneurship. The UNCTAD Commission on Entrepreneurship, Business Facilitation and Development promotes the development and implementation of strategies for the effective development of entrepreneurship, promotes dialogue between the private and public sectors. UNCTAD's technical cooperation projects include the Customs Automated Data Processing System, the Trade Points Network Program, and the EMPRETEC Programme.

The project of an automated customs data processing system helps to modernize customs procedures and management of customs services, which greatly simplifies the bureaucratic component of foreign economic activity.

A number of UN system entities work with specific groups of private sector actors based on the specifics of their areas of expertise. Other agencies, such as the United Nations Development Program and the World Bank, maintain relationships with a wide range of business community organizations. In addition to bilateral relations, the participation of business groups in the activities of the UN can be ensured through the institutionalization of such participation in the structure of an international organization. An example is the International Labor Organization (ILO), which has existed since 1919, in which representatives of workers and employers are given equal opportunities with representatives of governments to influence the development of ILO policy.

Thus, the UN plays an important role in regulating international economic relations. And, despite the fact that there are certain difficulties in functioning, for more than fifty years, the most important economic and political issues have been resolved with its help.

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Similar works to - The role of the UN in the development of the marine economy

The uniqueness of the role of OOHB in the formation of the international economic infrastructure lies in the performance of the most important socially significant functions in the field of global governance. The objects of regulation are numerous connections and relations at the international level, the existence and stability of which are taken for granted.

The norms, rules and regimes adopted within the UN and still in force to this day ensure compliance with legally established requirements for ongoing operations, determine common standards foreign economic relations, protect property rights. For example, the UN Convention on the High Seas (1985) guarantees free movement on the high seas outside territorial waters, as well as the laying of submarine cables and pipelines. The UN Convention on International Bills of Exchange and International Promissory Notes (1988) regulates credit and financial relations in international settlements.

Many specialized UN agencies play an active role in the development and unification of economic policy measures, analyze the state of international markets and infrastructure, and contribute to the harmonization of rules and procedures of private commercial law. Among the regulatory functions of the UN and the agencies responsible for developing international business regulations, the most important are the following:

Enforcement of agreements on areas of state jurisdiction (General Assembly), which helps to determine which country has the authority in relation to a particular land and water territory, airspace, stipulating, for example, the conditions for transportation or mining;

Enforcement of intellectual property rights arrangements (World Intellectual Property Organization - WIPO). The export of high-tech products, the protection of trademarks and patents would be difficult without respect for the strictly regulated intellectual property rights, which are protected through WIPO and TRIPS (Treaty on Trade-Related Aspects of Intellectual Property Rights).

WIPO determines the procedure for filing applications in all countries in which intellectual property rights are sought and limits the associated costs. WIPO administers treaties that establish internationally agreed rights and common standards that States agree to uphold and apply in their territories. The WIPO treaties covering inventions and related patents, trademarks and industrial designs ensure that a single international registration or application will have effect in any of the states party to the agreements. Recognized and widely used is the Patent Cooperation Treaty, which introduces the concept of a single international patent application with effect in many countries. WIPO has also made specific recommendations on how to secure domain names (address codes) on the Internet, which is a matter of concern and concern for communications and Internet companies;

Unification of economic terms, systems of measures and indicators (United Nations Statistical Commission, United Nations Commission on International Trade Law - UNCITRAL Leader).

Virtually all UN bodies provide some degree of standardization, which facilitates objective international comparisons;

Development and harmonization of the rules of international commercial activity (UNCITRAL, United Nations Conference on Trade and Development - UNCTAD). Regulation of commercial activities strictly through the proposed tools and procedures certainly promotes trade and logically links the global flows of goods and information;

Preventing damage to goods and services on world markets and providing cost recovery (UNCITRAL, International Civil Aviation Organization, International Maritime Organization, International Telecommunication Union, Universal Postal Union). Without effective agreements to prevent damage to carriers and goods, as well as guarantees for the preservation of information, businesses would be less inclined to conduct international business transactions. For companies, it is also important that in the event of accidents during international transport, they can count on compensation for financial losses;

Combating Economic Crime (United Nations Commission on Crime Prevention and Criminal Justice). Criminal activity creates an additional financial burden for law-abiding businesses, as it indirectly encourages corruption, limits free competition, and inevitably increases security costs;

The collection, analysis and dissemination of reliable economic information that contributes to the conclusion of international agreements (UNCITRAL, UNCTAD, the World Bank), helps countries and companies in evaluating markets, comparing their own resources and possibly

and development of foreign economic strategies. The UN agencies that provide statistics are regarded as authoritative and reliable sources of official statistics.

In addition to regulatory functions, the UN specialized agencies develop long-term strategies and tools in relation to the problems of the world economy on the basis of international expert consultations and agreements with governments and offer the world community possible ways to solve them.

The issues of investment in developing countries, the development of small and medium-sized businesses are currently among the most pressing. They affect any UN agency with a mandate in the field of economic development. Leading among them are the United Nations Industrial Development Organization (UNIDO) and the United Nations Development Program (UNDP). UNIDO is making the necessary efforts to increase the economic potential of developing countries and countries with economies in transition through the development of their industrial enterprises. UNIDO's guidance is intended to help these countries overcome social and economic difficulties and achieve greater and more successful participation in international cooperation.

UNDP promotes business development through financing and support mechanisms for private and public companies in developing countries. UNDP and UNCTAD, among other UN agencies, regularly involve business representatives in forums and seminars on economic issues.

UNCTAD plays a key role in the UN system in dealing with international trade, finance, investment and technology, in particular by helping developing countries to create enterprises and develop entrepreneurship. The UNCTAD Commission on Entrepreneurship, Business Facilitation and Development promotes the development and implementation of strategies for the effective development of entrepreneurship, promotes dialogue between the private and public sectors. UNCTAD's technical cooperation projects include the Customs Automated Data Processing System, the Trade Points Network Program, and the EMPRETEC Programme.

The project of an automated customs data processing system helps to modernize customs procedures and management of customs services, which greatly simplifies the bureaucratic component of foreign economic activity. The Trade Point Network Program provides an information network trade organizations Worldwide. Entrepreneurs from developing countries, many of whom still find it difficult to find trading partners abroad,

use such centers for successful entry into world markets. The global network facilitates cross-border communications, provides access to international databases and electronic commerce.

The UNCTAD-coordinated EMPRETEC program is designed to help address the challenge of better market entry for enterprises from developing countries. It was established to assist small and medium-sized enterprises in developing countries and countries with economies in transition in promoting the emergence of joint ventures and establishing business relations with TNCs, in making their activities international. The focus of the program is on identifying promising entrepreneurs and securing them vocational training, providing them with advisory services on management issues and attracting partners, including foreign companies. Since 1988, EMPRETEC has provided assistance to more than 20,000 entrepreneurs in several African and Latin American countries.

When carrying out economic activities, states and companies must strictly take into account the environmental requirements stipulated by the provisions of a number of international environmental conventions. Such global ecological problems, as desertification, loss of biodiversity, climate change, are within the scope of the United Nations Environment Program (UNEP). UNEP, together with the World Meteorological Organization, developed the UN Framework Convention on Climate Change, which was adopted in 1992. In the XXI century. it lies at the heart of the worldwide efforts to combat global warming as a result of human activities. The document, in particular, provides for the reduction of emissions of carbon dioxide and other greenhouse gases, which imposes certain obligations on industrial companies - sources of these emissions, significantly affects Agriculture, transport and other sectors of the economy, the impact of which on nature is increasing.

In addition to prohibitive and prescriptive regulations, there is a practice of using motivating incentives. For example, the International Business Environmental Achievement Award, established in 2000 under the auspices of the United Nations Environment Program to recognize and reward outstanding environmental performance by companies operating in developing countries and countries with economies in transition.

Issues of protection of cultural and natural heritage directly related to the development of the international tourism industry, as well as the reconciliation of economic needs with the need for environmental protection, international information exchange and statistics are part of the mandate of the United Nations Educational, Scientific and Cultural Organization (UNESCO).

International organizations can be divided into two groups:

An important role in the interstate regulation of international economic relations is played by United Nations (UN), which includes 185 countries . Among the UN organizations directly related to economic activity, we should mention the UN Economic and Social Council (ECOSOC), the UN Conference on Trade and Development (UNCTAD), the UN Industrial Development Organization (UNIDO), the Food and Agriculture Organization (FAO), etc.

UN - the largest, universal and most authoritative international organization, designed to deal with the main political problems that concern humanity. The political activity of the UN is inextricably linked with economic and social tasks directly related to world politics.

The most famous specialized agencies of the United Nations are International Monetary Fund (IMF) And world bank group, which includes International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), International association development (MAP ) And International Investment Guarantee Agency (MIGA) . The UN also has specialized bodies, for example, United Nations Conference on Trade and Development (UNCTAD) ,United Nations Commission on International Property Law (UNCITRAL) and etc.

IN IMF includes 182 countries. The capital of the Fund is formed at the expense of contributions from member countries. Each state has its own quota in it, which is set depending on the share of the country in the world economy and trade. The largest quotas are: USA - 18.25%, Germany and Japan - 5.67% each, Great Britain and France - 5.10% each, Russia - 2.97%. A country's quota determines the number of its votes in decision-making in the IMF's Board of Governors, as well as its ability to use the Fund's resources.

Initially, the IMF was intended to provide financial support to developed countries, regulate their balance of payments and maintain the stability of their exchange rates. In 1947-1976. 60.6% of IMF loans were received by the industrialized countries of the West. From the 70s. the emphasis in the activities of the IMF has shifted from balance of payments problems to stabilization programs (economic recovery programs). The main borrowers of the Fund were developing countries (92% of all IMF loans). The largest IMF loans received (in descending order) were Mexico, Russia, the Republic of Korea, Argentina, India, the United Kingdom, Brazil, Indonesia, the Philippines, and Pakistan.

The World Bank intended for lending to the economies of developing countries. But unlike ordinary commercial banks, it provides technical assistance, advises on how to use loans more profitably, and in every possible way promotes investment in the economies of these countries. However, the functions of the World Bank institutions are somewhat different from each other.

IBRD goals is: the provision of guarantees for private foreign investment in order to stimulate them; direct participation in the implementation of foreign investment, promotion of international trade.

To join the IBRD, a country must first become a member of the IMF. The bank's funds consist of the authorized capital formed by subscribing member countries, borrowed funds that it draws on the world loan capital market through the issuance of bonds, and income from its own activities. The number of votes in the IBRD bodies is determined by the share in its authorized capital. The United States has the largest number of votes in the IBRD Board of Governors - more than 17%, and all the G7 countries - about 45%.

The IBRD, unlike the IMF, is aimed at stimulating the international flow of medium- and long-term investments, promoting the reconstruction and development of the economy. About 75% of all IBRD loans go to lending to specific projects - from schools to power plants and industrial plants - in developing countries and countries with economies in transition. Recently, the World Bank has directed part of its loans for the purpose of structural adaptation of the economy (financing changes in the economy of a country to make it market-oriented), and the bank gives loans only to those states that implement stabilization programs approved by the IMF.

International Finance Corporation (IFC) was founded in 1956. Its main goal is to mobilize national and foreign capital for the development of private entrepreneurship in developing countries.

International Development Association (MAP) was established in 1960 to assist the least developed countries. It provides them with interest-free and extra-long-term loans from funds contributed by rich countries. .

International Investment Guarantee Agency (MIGA), founded in 1968, provides investors with guarantees against non-commercial risks (currency restrictions, nationalizations and expropriations, armed conflicts and revolutions, etc.).

The Republic of Belarus is a member of the UN, as well as many specialized agencies of this organization (UNESCO, WHO, WMO, WIPO, ILO, UNIDO, UPU, ITU, ICAO, IMF).

The Republic supports the consistent policy of the UN in the field of maintaining international peace and security, in the field of strengthening and developing existing international regimes to prevent the proliferation of weapons of mass destruction, reduce and eliminate their existing arsenals.

Since July 1992 the Republic of Belarus has become a member of the International Monetary Fund. The republic's quota in the IMF is 280.4 million SDRs (about $373 million), or 0.19% of the total quota, which was subsequently increased to 386.4 million SDRs (about $542.1 million). USA).

Since 1993, Belarus has used the Fund's resources three times to support the government's economic reform program. The total volume of credits and loans extended as of the end of June 1998 amounted to SDR 184.4 million. The IMF has provided technical assistance to Belarus in a number of areas, including public spending, taxation and customs, banking monitoring, monetary policy and the organization of the National Bank, and financial statistics (balance of payments, money, banking and real sectors of the economy).

The loans provided were mainly directed to the financial and credit sphere. In 1993, the Belarusian government signed an agreement with the IMF for a $200 million loan. United States through a systemic transformation fund to improve the balance of payments. The first tranche of this loan was received in August 1993 in the amount of SDR 70.1 million, which at that time was equivalent to $98 million. USA. It was intended to improve the republic's balance of payments. Its maturity was 10 years; moratorium on principal repayment - 4.5 years, interest rate - 5.67% (floating). The loan proceeds were used to purchase heating oil, motor gasoline and diesel fuel, medical equipment, and were also partially used to ensure timely settlements with Russia for the supplied liquefied gas and maintain the exchange rate of the Belarusian ruble.

In 2001, a six-month Fund Monitoring Program (SMP) was implemented in the republic, serving as the basis for the transition to the stand-by mechanism. At present, the resumption of the stand-by program can be seen as the main topic of negotiations with the IMF. All monetary targets and virtually all structural benchmarks have been met.

The Republic of Belarus also closely cooperates with the World Bank Group (IBRD, IFC, MIGA, IDA) and other international organizations.

In the regulation of international trade in goods and services, a special role is played by World Trade Organization (WTO) , which from January 1, 1995 replaced General Agreement on Tariffs and Trade (GATT). Currently, 146 states are members of the WTO. The main task of the WTO is the liberalization of world trade on the basis of a consistent reduction in the level of customs duties and the elimination of various non-tariff barriers. Currently, WTO rules govern over 90% of world trade (by value).

The activities of the organization are based on a number of simple fundamental provisions:

    trade without discrimination: WTO members undertake to provide each other with the principle of most favored nation in trade (i.e. conditions no worse than they are provided by any other country), as well as to provide goods foreign origin the same treatment as national goods in the field of internal taxes and duties, as well as in respect of national laws, orders and regulations governing internal trade;

    protection of domestic production with the help of customs tariffs: publicly and openly established customs tariffs (duties) are the main, and in the future - the only instrument for regulating exports and imports of member countries; they refuse to apply quantitative measures of foreign trade regulation (quotas, import and export licenses, etc.);

    a stable and predictable basis for trade: long-term fixing of duties in customs tariffs. Tariffs are set through multilateral negotiations;

    promoting fair competition: counteracting such unfair methods of competition, such as the sale of goods at artificially low prices (dumping) or the use of government subsidies to underestimate export prices;

    publicity and openness in trade regulation;

    resolution of disputes and conflicts through consultations and negotiations.

One of the most important obligations that a country joining the WTO undertakes is to bring the national principles and rules governing its foreign trade into maximum compliance with the rules of this organization.

The main mechanism of WTO activity is rounds of multilateral negotiations. As a result of rounds of multilateral negotiations, the weighted average rate of customs tariffs in the United States, Western European countries and Japan was reduced from an average of 25-30% in the early 1950s. to about 4% in 1998. In 1996 - 1997. Within the framework of the WTO, agreements were reached on the liberalization of the telecommunications and information technology market and on the liberalization of the financial services market. The WTO leadership calls for the creation by 2020 of a single global free trade area.

Belarus' accession to the WTO is seen as the most important stage of integration into the world economy, which will provide the country with the necessary tools to protect and promote national interests within the framework of the international trade system. At the same time, accession to the WTO challenges the Republic of Belarus to ensure that its economic legislation complies with WTO rules, as well as to make balanced concessions to trading partners in order to ensure more open access for foreign goods and services to the domestic market.

An important role in the regulation of international economic relations is also played by such an institution as the Institute formed in 1960. Organization for Economic Cooperation and Development (OECD) . Currently, 29 countries are members of the OECD: Australia, Austria, Belgium, Great Britain, Hungary, Germany, Greece, Denmark, Ireland, Iceland, Spain, Italy, Canada, Luxembourg, the Netherlands, New Zealand, Norway, Mexico, Poland, Portugal, USA, Turkey, Czech Republic, Switzerland, Sweden, Finland, France, South Korea, Japan. The share of OECD countries, in which 16% of the world's population lives, accounts for 2/3 of world production.

The main goal of the OECD is to analyze the state of the economy of member states and develop recommendations for member countries on the implementation of economic regulation at the macro and sectoral levels. These recommendations are usually taken into account by member countries in the development and implementation of national economic policies. In this regard, the Organization is actually a body for coordinating the economic policy of the leading Western countries.

All in all international organizations are aimed at regulating certain aspects of the functioning of the world community in order to create all the conditions for its harmonious development in the future. In them, in many respects, a kind of legal space is created, within which all components of the world economy interact.

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