30 July 1992

41st plenary meeting

Privatization and foreign investment in the context of economic restructuring

The Economic and Social Council,

Recognizing the fact that numerous countries attach growing importance to privatization of enterprises, administrative deregulation, increased competition, open markets and demonopolization of their economic activities as a means to increase economic efficiency, growth and development, in the context of their economic restructuring policies,

Stressing the important role that foreign direct investment can play in the process of privatization in those countries,

Taking note of the difficulties those countries encounter in the process of privatization, administrative deregulation and demonopolization of their economic activities,

Noting the work the former United Nations Centre on Transnational Corporations has performed so far in analysing new approaches to the process of privatization, administrative deregulation and demonopolization of economic activities,

1. Requests the Secretary-General, in coordination with other relevant international organizations, to enhance technical cooperation activities in order to assist all interested countries in attracting foreign investment and transnational corporations so as to contribute to the implementation of privatization programmes, in the context of their economic reforms;

2. Invites the Secretary-General to explore further, through case-by-case studies of foreign investment, new approaches to the process of privatization, administrative deregulation and demonopolization of economic activities;

3. Recognizes the need to diversify sources of funding for research and technical cooperation activities and, to that end, invites voluntary contributions to the Trust Fund for the Technical Cooperation Programme of the former United Nations Centre on Transnational Corporations, and requests the Secretary-General to seek to mobilize resources from various sources, including non-governmental organizations, and to report to the Commission on Transnational Corporations at its twentieth session.