27 July 1990

37th Plenary Meeting

1990/71. Activities of the United Nations Centre on Transnational Corporations

The Economic and Social Council, I

1. Requests the Secretary-General to prepare a report containing concrete proposals on ways of promoting foreign direct investment as a complement to domestic investment in the developing countries, giving due consideration to the special needs of the least developed countries;

2. Also requests the Secretary-General to study, in co-operation with the United Nations Conference on Trade and Development and other organizations, the interrelationship of investment, trade and development, with a view to identifying ways and means of encouraging and enhancing the contribution of transnational corporations to the development of developing countries through trade and investment;

II 1. Requests the Executive Director of the United Nations Centre on Transnational Corporations to prepare, based on the provisions of General Assembly resolution 44/228 of 22 December 1989 on the United Nations Conference on Environment and Development, in accordance with the requirements established by the Preparatory Committee for the Conference, in co-operation with the United Nations Environment Programme and other relevant organs and bodies of the United Nations and in consultation with the Secretary-General of the Conference, a comprehensive and analytical study for submission to the Commission on Transnational Corporations at its seventeenth session, with a view to helping the Commission make a significant and action-oriented contribution to the preparatory work of the Conference;

2. Also requests the Executive Director of the Centre, in preparing the study requested, to focus on the role of transnational corporations and other commercial entities of a similar nature in promoting access to and transfer of environmentally sound technologies to developing countries, in accordance with General Assembly resolution 44/228, in particular paragraph 15 (m) thereof, to include specific and innovative proposals to strengthen such transfer and, in co-operation with the United Nations Conference on Trade and Development, the United Nations Industrial Development Organization, the United Nations Environment Programme, the United Nations Educational, Scientific and Cultural Organization, the World Intellectual Property Organization and other relevant organs and organizations of the United Nations system, to investigate the issue as well as other measures that could further encourage and mobilize transnational corporations and other commercial entities of a similar nature to protect and enhance the

environment in relation to development;

3. Takes notes with appreciation of the report of the Secretary-General on transnational corporations and issues relating to the environment, including the criteria for sustainable development management set out in annex I to the report, and requests the Executive Director of the Centre, pursuant to Economic and Social Council resolution 1989/25 of 24 May 1989 and General Assembly resolution 44/228, in co-operation with the United Nations Environment Programme and other relevant organs and bodies of the United Nations and in consultation with the Secretary-General of the United Nations Conference on Environment and Development, and taking full account of other ongoing work, to continue to examine those issues, including concrete ways and means of strengthening the participation of transnational corporations and other commercial entities of a similar nature in the efforts to increase environmental protection and provide business enterprises and governmental agencies in developing countries with access to info

rmation on cleaner technologies, to examine the feasibility of financial mechanisms that would encourage transnational corporations and other enterprises of a similar nature to contribute to the protection and enhancement of the environment of developing countries, and to report to the Commission on Transnational Corporations at its seventeenth session, with a view to assisting the Commission in its contribution to the Preparatory Committee for the Conference;

III 1. Requests the Secretary-General to continue to explore ways and means of promoting regional economic integration and co-operation among developing countries through joint ventures and the potential impact of regional economic integration processes among developed countries, including the impact on regional economic integration processes in developing countries, as called for in Economic and Social Council resolutions 1989/21, 1989/22 and 1989/23 of 24 May 1989;

2. Supports the technical co-operation activities of the United Nations Centre on Transnational Corporations, and requests the Centre to continue its efforts to develop its programmes of support for co-operative activities of small and medium-sized enterprises in developing countries;

3. Requests the Secretary-General to prepare further studies on the role of transnational corporations in other services, including financial services, and on strengthening the negotiating capacity of developing countries in their dealings with transnational corporations, and to report on other ongoing and future research of the Centre to the Commission on Transnational Corporations at its seventeenth session;

4. Also requests the Secretary-General, taking into account the other work being carried out in the United Nations, to prepare an updated report on the role of transnational banks related to the external indebtedness of developing countries, giving particular attention to the obstacles and problems that transnational banks have faced with regard to debt reduction, for submission to the Commission on Transnational Corporations at its seventeenth session;

5. Further requests the Secretary-General to prepare an analytical report on debt-equity swaps, taking into account the work already carried out by the Centre on the effect that swaps could have on foreign direct investment and the overall development of host countries, as well as the experience of countries that have adopted such schemes;

6. Takes note of the suggestion to undertake country-specific studies on the contribution of foreign direct investment to development, with a view to analysing and stimulating the flow in investment capital, technology and skills to host countries and identifying proposals for technical assistance designed to support their development objectives, on the understanding that those studies should be undertaken only upon the request of Governments, with their participation and for their use only;

IV 1. Takes note of the Conclusions on Accounting and Reporting by Transnational Corporations, prepared and agreed to by the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting, and further notes that the conclusions may be useful for both preparers and users of financial statements;

2. Commends the Group on its work on international standards of accounting and reporting, and calls upon the Secretary-General to ensure that, without affecting other activities, resources are made available so that the Group and the Centre may effectively carry out their work on international accounting and reporting.