Net Flows and Transfer of Resources Between Developing Countries and Developed Countries

Who adopted this document and its mandates?

A Resolution of the General Assembly, under agenda item 87d Net transfer of resources between developing and developed countries, published in 1995.

What subjects does this mandate have?

18 subjects

Debt Relief Development Assistance Development Credits Development Strategies Economic Growth External Debt Financial Flows Foreign Direct Investment International Trade Least Developed Countries Market Access Multilateral Trade Negotiations Reverse Transfer of Resources Structural Adjustment Sustainable Development Trade Facilitation Trade in Commodities Treaties

What’s in this document?

15 operative paragraphs

Stresses the need to increase efforts to ensure the flow of substantial resources for sustained economic growth and sustainable development in the developing countries, taking into account the following:

The developed countries should consider increasing financial flows to developing countries in order to assist them in their diversification and structural adjustment efforts and to facilitate their sustained economic growth and sustainable development through, inter alia, an expansion of multilateral credits, promoting foreign direct investment and increasing concessional and non-debt resources;

Governments of the developed countries and other countries in a position to do so should promote an adequate flow of resources to developing countries; developed countries that have reaffirmed their commitment to reach the accepted United Nations target of 0.7 per cent of gross national product for official development assistance should, to the extent that they have not yet achieved that target, agree to augment their aid programmes in order to reach that target as soon as possible; and substantial new and additional funding for sustainable development and the implementation of Agenda 21 should be required;

To increase the effectiveness of development assistance, developed and developing countries should strive towards a true partnership, which includes, inter alia, ownership and broad-based participation in recipient countries, implementation of domestic economic policies tailored to local conditions, efficient administration, transparent institutions and strong institutional capacities, including at the local level;

In many developing countries, where the burden of debt and debt service constitutes a major obstacle to the revitalization of growth and development, there is a need for further progress towards alleviating their external debt burden;

All countries should undertake, in accordance with their specific situations, efforts at the national level to implement structural adjustment policies and reforms conducive to the flow of external resources, including relevant laws to promote foreign private capital investment and an open framework for international trade;

Governments should fully implement the Uruguay Round agreements, including the specific provisions for developing countries included in the Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations,⁷ signed at the Ministerial Meeting of the Trade Negotiations Committee, held at Marrakesh, Morocco, from 12 to 15 April 1994, and support an open, free, equitable, non-discriminatory and rule-based multilateral trading system that improves access to the markets of all countries, in particular access for the exports of developing countries in order to ensure their sustained economic growth and sustainable development;

⁷See Legal Instruments Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations, done at Marrakesh on 15 April 1994 (GATT secretariat publication, Sales No. GATT/1994-7), vol. 1.

Producers and consumers of individual commodities should continue to explore ways and means of reinforcing their cooperation and consider actively participating in international commodity agreements and arrangements that take into account market trends in order to achieve more efficient international commodity cooperation;

Developing countries should continue to strengthen their efforts in the area of vertical and horizontal diversification in order to enlarge their export bases and, in this context, assistance should be provided to them to enable those countries which have not yet reached this stage to create the conditions appropriate to attract foreign capital;

All Governments, particularly those of the developed countries, should cooperate more closely in order to promote an international financial system which is more conducive to stable and sustained economic growth through, inter alia, a higher degree of stability in financial markets, reducing the risk of financial crisis, improving the stability of exchange rates, stabilizing and striving for low real interest rates in the long run and reducing uncertainties of financial flows;

All Governments, particularly those of the developed countries, should take appropriate measures to create a favorable international economic environment;

All Governments, particularly those of the developed countries, should strive for multilateral surveillance aimed at correcting existing external and fiscal imbalances so as to expand multilateral trade and foreign investment, particularly to the developing countries, and in this context, more effective participation by developing countries should be encouraged;

Consideration should be given to ways to coordinate macroeconomic policies effectively in competent, broad-based multilateral forums;

Consideration should be given by the international community to ways of dealing, as appropriate and in cooperation with national Governments, with the possible negative effects of sudden outflows of private capital from developing countries on the development programmes of these countries;

Requests the Secretary-General to continue to monitor developments in the net flows and transfer of resources between developing and developed countries, and utilizing all relevant reports, such as those provided by the World Bank, the International Monetary Fund and the regional banks, to report thereon in the World Economic and Social Survey, 1995, and also requests the Secretary-General to report to the General Assembly at its fifty-first session on the implementation of the present resolution.

Who adopted this document and its mandates?

What subjects does this mandate have?

What’s in this document?

Table of contents