24 May 1989

15th plenary meeting

Recent trends concerning transnational corporations and international economic relations

The Economic and Social Council,

Reaffirming its resolutions 1908 (LVII) of 2 August 1974 and 1913 (LVII) of 5 December 1974 on the impact of transnational corporations on the development process and on international relations,

Reaffirming also its resolution 1988/58 of 27 July 1988 on strengthening the role of the Commission on Transnational Corporations and the activities of the United Nations Centre on Transnational Corporations in support of developing countries,

Taking note with appreciation of the reports of the Secretary-General on recent developments related to transnational corporations and international economic relations and on the role of transnational corporations in the least developed countries,

Aware that structural imbalances in the economies of major actors in the world economy have an impact on investment flows, including those to developing countries,

Noting that developed market economy countries increasingly attract foreign direct investment in a situation in which developing countries increasingly face limitations on financial and technological resources that could contribute to their economic and social development,

1. Requests the Secretary-General to submit to the Commission on Transnational Corporations at its sixteenth session, in 1990, a report analysing those trends and to recommend ways and means of increasing the operations of transnational corporations in developing countries, in order to contribute to their economic, social and technological development;

2. Requests the Secretary-General to include in that report an assessment of the potential impact of the regional economic integration processes taking place among developed countries on the future operations of transnational corporations, particularly in developing countries, and, in turn, the impact on regional economic integration processes in developing countries.