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SME Guide

The Establishment of The United Nations and its Effect on Global Trade

The United Nations (UN) was established in 1945 after World War II to promote global cooperation for peace, security, and progress. The League of Nations, formed after World War I, was unable to maintain world peace due to the absence of a global power such as the United States of America; thus, the establishment of the UN. One can say that the United Nations has not failed its assignment; it’s still focused on its objectives of maintaining global peace and security. At least no world war has sprung up since its creation.

Global trade is the exchange of goods and services between countries. It enables nations to broaden their markets and acquire goods and services that may not have been accessible locally. The United Nations promotes global trade primarily in two ways: by ensuring world peace and supporting economic development through its agencies, initiatives, and policies.

The UN promotes global trade and economic growth through various initiatives and agencies, like the United Nations Conference on Trade and Development (UNCTAD). UNCTAD supports world trade by creating a transparent global trading system, providing technical aid, conducting research, and giving policy advice to developing countries on how to be integrated into the global economy.

The World Trade Organization (WTO) is another agency the UN uses to regulate global trade and resolve trade disputes among member nations. And the WTO seeks, among other things, to reduce trade barriers, eliminate discriminatory policies, and streamline the exchange of goods and services among its members.

The United Nations also promotes economic development that boasts global trade through the United Nations Development Programme (UNDP) and the World Bank. The UNDP assists nations in improving their infrastructure and productivity and achieving sustainable economic growth. The World Bank provides valuable support to countries in need of economic development.

The UN consistently promotes global trade and economic development through dialogue, technical assistance, and advocacy for inclusive trade practices. However, challenges related to implementation, trade barriers, inequality, and the complex global economic landscape persist. For the United Nations to enhance its positive impact, it must foster collaboration among member nations, make continuous efforts, and systematically address its challenges. But which organization can play the role of the United Nations without challenges?


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