United Nations


General Assembly

Distr. GENERAL  

2 February 1996


Fiftieth session
Agenda item 94


          [on the report of the Second Committee (A/50/616)]

        50/91.    Global financial integration:  challenges and

     The General Assembly,

     Reaffirming its resolutions S-18/3 of 1 May 1990, the annex to
which contains the Declaration on International Economic Cooperation,
in particular the Revitalization of Economic Growth and Development of
the Developing Countries, and 45/199 of 21 December 1990, the annex to
which contains the International Development Strategy for the Fourth
United Nations Development Decade, and the Cartagena Commitment, 1/ 
adopted by the United Nations Conference on Trade and Development
at its eighth session,

     Recalling its resolution 49/93 of 19 December 1994 on net flows
and transfer of resources between developing and developed countries,

     Stressing the importance at the national level in the countries
concerned of a favourable climate for private financial flows, sound
macroeconomic policies and appropriate functioning of markets,

     Recognizing that the international community should continue to
give strong support to the efforts of the developing countries to
solve their grave economic and social problems as well as to promote a
favourable climate for private financial flows through the creation of
a favourable international economic environment, 

     Noting with satisfaction that the process of economic growth, in
a number of developing countries, has been positively affected by the
recent increase in international private capital flows,

     Commending continuing efforts made by developing countries to
create a more favourable national framework and stressing that a
considerable number of developing countries, in particular the least
developed countries, especially in Africa, have not benefited from the
aforementioned capital flows,

     Expressing concern, within such a context, at the decline in real
terms in the past three years in the overall level of official
development assistance to developing countries,

     Expressing concern also that a significant number of developing
countries have become more vulnerable, in the course of liberalizing
their external economic and financial regimes, to the volatile
fluctuations of private capital flows in international financial

     Noting the necessity of promoting the creation of favourable
conditions for achieving international stability in private capital
flows and of preventing the destabilization arising from swift
movements of private capital flows, in order, inter alia, to enhance
development, in particular of developing countries,

     Aware of the role of the International Monetary Fund in the
promotion of a stable international financial environment conducive to
economic growth, and taking into account the strengthening of the
cooperative relationship between the United Nations and the Fund,

     1.   Stresses that global financial integration presents new
challenges and opportunities for the international community and that
it should constitute a very important element of the dialogue between
the United Nations system and the Bretton Woods institutions;

     2.   Underscores the need for encouragement of private flows to
all countries, in particular to developing countries, especially long-
term flows, while reducing the risks of volatility;

     3.   Recognizes that, in a globalized world, sound fiscal and
monetary policy in each country is among the elements essential in
preventing crises relating to capital flows;

     4.   Emphasizes the need to explore ways to broaden appropriate
enhanced cooperation and, where appropriate, coordination of
macroeconomic policy among interested countries, monetary and
financial authorities and institutions, so as to enhance preventive
consultation arrangements between such institutions as a means of
promoting a stable international financial environment conducive to
economic growth, particularly in developing countries, taking into
account the needs of developing countries as well as situations that
may have a significant impact upon the international financial system;

     5.   Reiterates the need for broadening and strengthening the
participation of developing countries in the international economic
decision-making process;

     6.   Welcomes the steps taken by the International Monetary Fund
recognizes the need for a stronger and central role for the Fund in
surveillance of all countries, in a symmetrical manner, in accordance
with paragraph 4 of the communique' of the Interim Committee of the
Board of Governors of the Fund, dated 26 April 1995, with regard to
potential sources of destabilization of capital markets with a view to
promoting transparency and stability in international financial
markets and promoting economic growth, such surveillance including,
among other elements, the regular and timely provision of economic and
financial data;

     7.   Reaffirms the objective of promoting greater transparency
and openness, including increasing participation of developing
countries in the work of the International Monetary Fund, an objective
that involves, among other elements, the regular and timely provision
of economic and financial data by all Fund members;

     8.   Requests the Secretary-General to report to the General
Assembly, at its fifty-first session, in cooperation with the Bretton
Woods institutions and the United Nations Conference on Trade and
Development, on the implementation of the present resolution.

                                             96th plenary meeting
                                                20 December 1995 


1/   See Proceedings of the United Nations Conference on Trade and
Development, Eighth Session, Report and Annexes (TD/364/Rev.1) (United
Nations publication, Sales No. E.93.II.D.5), part one, sect. A.

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