United Nations

A/RES/51/165


General Assembly

Distr. GENERAL  

26 February 1997

ORIGINAL:
ENGLISH



Fifty-first session
Agenda item 94 (b)


                  RESOLUTION ADOPTED BY THE GENERAL ASSEMBLY

              [on the report of the Second Committee (A/51/602)]


            51/165.     Net flows and transfer of resources
                        between developing and developed
                        countries

      The General Assembly,

      Reaffirming its resolutions 47/178 of 22 December 1992 and 49/93
of 19 December 1994,

      Taking note of the World Economic and Social Survey, 1996, 1/
in particular chapter III thereof, entitled "The international
economy", and the report of the Secretary-General on the net transfer
of resources between developing and developed countries, 2/

      Recognizing that, while developing countries have primary
responsibility for their own development, there is continuing need for
the international community to give strong support to their efforts to
solve their economic and social problems through, inter alia, the
promotion of a favourable international economic environment,

      Noting that for many developing countries, especially those in
Africa and the least developed countries, official development
assistance remains an important source of financial resources to
support their development efforts,

      Recognizing the increasing role of private investment and that
the completion of the Uruguay Round of multilateral trade negotiations
was a major step by the international community towards the expansion
of the rule-based international trading system, advancing
liberalization in international trade and creating a more secure
trading environment,

      Noting that capital flows, in particular private capital flows,
to developing countries have been increasing strongly but that not all
countries have benefited from such flows and that short-term capital
movements can be unpredictable,

      Noting also that the future course of net transfer of resources
to developing countries depends on a growth-oriented and supportive
international economic environment and on sound domestic economic
policies,

      Stressing the unpredictable character of short-term private
capital movements, which are particularly subject to interest-rate
variations and other possible fluctuations in the domestic and
international economic environment,

      Noting that in the 1990s the net transfer of resources from the
Bretton Woods institutions to developing countries has been negative
in real terms, although it has been positive to countries in Africa
and to certain countries in Asia, and noting also that the net
financial transfer from regional banks to developing countries, taken
together, has been generally positive in the 1990s, although it became
slightly negative in 1994 and 1995,

      Expressing its concern at the recent decline in the overall level
of official development assistance,

      Bearing in mind that all countries, particularly the major
industrialized countries, which have significant weight in influencing
world economic growth and the international economic environment,
should continue their efforts to promote sustained economic growth and
sustainable development, to narrow imbalances, and to cooperate with
the developing countries so as to enhance their ability to address and
alleviate their major problems in the areas of money, finance,
resource flows, trade, commodities and external indebtedness,

      1.    Stresses the need to increase efforts to ensure the flow of
substantial resources to developing countries through, inter alia, an
expansion of multilateral credits, the promotion of foreign direct
investment and an increase in concessional and non-debt resources;

      2.    Also stresses that private capital flows are an important
external source of financing for sustainable development and that
attracting such investment requires, inter alia, sound fiscal and
monetary policies, accountable governmental institutions and
transparent legal and regulatory regimes;

      3.    Reaffirms the pressing need of developing countries for
official development assistance, especially those in Africa and the
least developed countries, and urges countries to strive to fulfil,
consistent with commitments in international agreements, the agreed
target of 0.7 per cent of the gross national product of developed
countries for official development assistance to the developing
countries, and the target, where agreed, of 0.15 per cent of the gross
national product of the developed countries for official development
assistance to the least developed countries as soon as possible;

      4.    Stresses the need to mobilize public support for development
cooperation, inter alia, through a strategy based on partnership
between developed and developing countries which incorporates, as
appropriate, mutually agreed goals for development;

      5.    Also stresses the importance of the role of the
International Development Association as a highly concessional lending
arm of the World Bank for promoting development in eligible developing
countries, and urges donors fully to honour their commitment thereto,
in particular to the eleventh replenishment of the Association, and to
secure its adequate future funding;

      6.    Appeals to all countries to continue to cooperate and work
together on issues relating to the Enhanced Structural Adjustment
Facility, with a view to arriving at a self-sustained facility,
including the provision of bilateral contributions; if the need
arises, the International Monetary Fund should consider optimizing its
reserves management in order to facilitate financing of the Facility;

      7.    Urges all international financial institutions and donor
countries, as appropriate, to continue their own efforts to improve
the quality and effectiveness of their lending, inter alia, through
thorough assessment of the contributions to sustainable development of
projects financed, effective monitoring and evaluation, and increased
concessionality, where appropriate;

      8.    Requests the Secretary-General to continue to monitor
developments in the net flows and transfer of resources between
developing and developed countries and to utilize all relevant
reports, such as those provided by the United Nations Conference on
Trade and Development, the World Bank, the International Monetary Fund
and the regional development banks, and to report thereon in the World
Economic and Social Survey, 1997, and also requests the Secretary-
General to report, in close cooperation with the United Nations
Conference on Trade and Development and the Bretton Woods
institutions, to the General Assembly at its fifty-third session on
the implementation of the present resolution.

                                                          86th plenary meeting
                                                              16 December 1996


                                     Notes

1/    United Nations publication, Sales No. E.96.II.C.1.

2/    A/51/291.

 

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