UNCTC Origins

The rise of transnational corporations (TNCs) as main actors in the world stage led the United Nations Economic and Social Council in 1973 to entrust a “Group of Eminent Persons” the task of advising on the nature and activities of these corporations and their role and impact on the development process. On the basis of the study Multinational Corporations in World Development, and after taking public comments, the Group made recommendations that led to the creation of the United Nations Commission on Transnational Corporations to provide a permanent intergovernmental forum for deliberations on issues related to TNCs. Given the centrality of TNC issues at that time, the venue for these deliberations within the UN system became  UN Headquarters in New York. 

The Group's recommendations also led to the establishment of a permanent Programme on Transnational Corporations, carried out by a Centre to study TNCs and related policy issues, and to serve as the secretariat of the Commission on Transnational Corporations. The United Nations Centre on Transnational Corporations (UNCTC) began functioning in November 1974. Its work was to be guided by three broad objectives:

-- to further the understanding of the political, economic, social and legal effects of TNC activity, specially in developing countries;

-- to secure international arrangements that promote the positive contributions of TNCs national development goals and world economic growth while controlling eliminating their negative effects; and

-- to strengthen the negotiating capacity of host countries, in particular developing countries, in their dealings with TNCs.

During most of its 17 years of existence, UNCTC developed its work programme around four main tasks:

International arrangements on TNCs. These included work related to the formulation of a Code of Conduct on Transnational Corporations and other international arrangements, such as illict payments in international commercial transactions, and international standards of accounting and reporting.

Information on TNCs. The task of collecting and interpreting data on FDI. The task of collecting and interpreting data on foreign direct investment (FDI) and TNC activities as well as relevant national and international rules and policies, and disseminating the above information was entrusted to the Information Analysis Division.

Policy analysis and research. Undertaking research on various economic and social aspects of TNCs and on policy issues, particularly in developing countries, with a view to further the understanding of TNCs and their impact was the responsibility of the Policy Analysis Division.

Advisory Services. Advising governments of developing countries on their negotiations with TNCs and on their policies to maximize benefits from FDI was entrusted to the Advisory Services Division.

Joint Units.

In addition to its headquarters secretariat,  UNCTC established joint liaisons and support units in each of the regional economic commissions. The Joint Units were discontinued when the Programme on Transnational Corporations was transferred to Geneva.

Expert Advisers

The Commission created a group of 16 experts to advise it in its work. The expert advisers acted in their personal capacity and were selected among civil society groups, including academia, business and trade unions. Each adviser served for two years.