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, 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,
 
      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.