22 July 1986

38th plenary meeting

Net transfer of resources from developing to developed countries

The Economic and Social Council,

Recalling General Assembly resolutions 3201 (S-VI) and 3202 (S-VI) of 1 May 1974, containing the Declaration and the Programme of Action on the Establishment of a New International Economic Order, 3281 (XXIX) of 12 December 1974, containing the Charter of Economic Rights and Duties of States, 3362 (S-VII) of 16 September 1975 on development and international economic co-operation, and 35/56 of 5 December 1980, the annex to which contains the International Development Strategy for the Third United Nations Development Decade,

Taking note with appreciation of the World Economic Survey 1986 and the report of the Committee for Development Planning on its twenty-second session,

Considering that, owing to the persistent structural imbalance of the world economy, the developing countries continue to face major problems in the areas of money, finance, debt, trade and resource flows and have even become net capital exporters,

Bearing in mind that this serious distortion impedes the development efforts of developing countries and adversely affects the implementation of the goals and objectives of the International Development Strategy for the Third United Nations Development Decade,

Noting with concern that this net transfer of resources from developing to developed countries has reached such proportions and is increasing at such a pace that concerted action is required on the part of the international community to halt and reverse the process,

Noting, furthermore, that developing countries face a large and growing financing gap in obtaining meaningful flows of resources over the next decade and that the reverse transfer of resources is seriously endangering the possibilities for development of developing countries and causing the living conditions of their peoples to deteriorate,

Bearing in mind that this dangerous process, far from being conjunctural or temporary, is a prolonged one which is intensifying, thereby undermining the development efforts of developing countries and causing a regression of serious consequences,

1. Draws the attention of the General Assembly and the specialized agencies to the alarming levels reached in the net transfer of resources from developing to developed countries as set out in the World Economic Survey 1986;

2. Emphasizes the need to reverse this trend, which adversely affects the development efforts of developing countries and runs counter to the goals and objectives of the International Development Strategy for the Third United Nations Development Decade and international co-operation for development;

3. Stresses the fact that recent developments in the world economy have resulted in substantial gains for the developed countries because of declining prices of commodities, including oil, and that such benefits have been estimated at over $100 billion;

4. Emphasizes the need to redirect such benefits to promote the development of the developing countries;

5. Points out that, additionally, the net interest paid in external debt-servicing by developing countries amounted to $54 billion in 1985 and the income outflow on foreign direct investment amounted to $13 billion, also in 1985;

6. Underlines the fact that while these huge transfers of resources from developing to developed countries are occurring, transfers from developed to developing countries have continued to decline and during 1985 amounted to $13 billion in loans and credit facilities, $14 billion in official development assistance and $9 billion in direct investment, leaving a balance of immense proportions to the detriment of the developing countries;

7. Calls upon all States, specialized agencies and other competent organizations of the United Nations system to take appropriate and effective measures in the fields of money, trade and finance, including debt, in order to halt and reverse the net transfer of resources from developing to developed countries;

8. Requests the Secretary-General, in consultation with the executive heads of the competent bodies and organizations of the United Nations system, to prepare a comprehensive analytical report on the net transfer of resources from developing to developed countries, on its impact on the development of developing countries, and on the measures to be taken within the framework of the United Nations system to halt and reverse that process, and to submit it to the General Assembly at its forty-second session, through the Economic and Social Council.