Global Financial Flows and Their Impact on the Developing Countries

A/RES/52/180View PDF

Who adopted this document and its mandates?

A Resolution of the General Assembly, under agenda item 95a Financing of development, including net transfer of resources between developing and developed countries, published in 1998.

What subjects does this mandate have?

16 subjects

Africa Bank Supervision Banking Law Bretton Woods Institutions Capital Movements Currency Instability Data Collection Developing Countries Development Assistance Economic Policy Financial Flows Financial Institutions Foreign Exchange Markets Globalization International Monetary System Macroeconomics

What’s in this document?

14 operative paragraphs

Takes note of the report of the Secretary-General entitled "Global financial integration: an update";²

²A/52/406.

Reiterates the need for broadening and strengthening the participation of developing countries in the international economic decision-making process;

Stresses that sound domestic macroeconomic policies of each country in regard to promoting macroeconomic stability and growth are primary elements for determining private capital flows and that the coordination of macroeconomic policies, where appropriate, and a favourable international economic environment play an important role in reinforcing their effectiveness;

Recognizes that a number of developing countries have been able to take advantage of the globalization of finance, and notes the need for the expansion of private capital flows and for broader access by developing countries to those flows, and therefore the need for the international community to assist low-income countries, especially those in Africa, in their efforts to create the enabling environment necessary to attract such flows;

Notes that a number of developing countries, among them most of the least developed countries, especially those of Africa, have not benefited from the globalization of finance and continue to be in great need of official development assistance;

Recognizes the need to explore ways to broaden appropriate enhanced cooperation and, where appropriate, coordination of macroeconomic policy among interested countries and monetary and financial authorities and institutions so as to enhance preventive consultation arrangements between such institutions as a means of promoting a stable international financial environment conducive to economic growth, particularly of developing countries, taking into account the needs of developing countries as well as situations that may have a significant impact upon the international financial system;

Also recognizes the importance of ensuring transparency and accountability at the national level to achieve policy credibility and confidence-building as well as sound regulatory and supervisory arrangements so as to strengthen the domestic financial system, and further recognizes the importance of a stable international economic environment and stability in the international monetary system;

Stresses the need for strengthened international cooperation through strengthened regional and multilateral cooperation to prevent future currency crises, which negatively affect not only developing countries but also the international financial and monetary system;

Recognizes the benefit of exchange rate stability and a stable financial environment and the potential impact on all countries of lack of stability in the foreign exchange markets, and in that regard invites the International Monetary Fund to exercise fully its mandate to sustain effective surveillance over the underlying macroeconomic policies of its member countries, in particular those countries whose economies are particularly relevant for the stability of the international monetary and financial system;

Also recognizes that an effective International Monetary Fund surveillance mechanism requires, among other elements, the regular and timely provision of reliable economic and financial data from all Fund members, and in that regard invites the Fund, within its mandate, to explore how data can be gathered from other relevant sources in order to contribute to the effectiveness of its surveillance mechanism;

Takes note of the work of the Basel Committee on Banking Supervision, notes that some developing countries participated in the work of drafting banking standards, and recognizes the need for enhanced participation of developing countries in such work;

Invites the International Monetary Fund to ensure that, in exercising its role in promoting capital account liberalization, it does so in an orderly and flexible manner so as to enable member countries to tailor capital account liberalization to the circumstances of each individual country;

Requests the Secretary-General, in close cooperation with the Bretton Woods institutions and the United Nations Conference on Trade and Development, to analyse the current trends in global financial flows, make recommendations in the World Economic and Social Survey, 1998 and the Trade and Development Report, 1998 on ways and means to address the volatility of those flows, including measures to help economies to become more resilient with regard to currency fluctuations, and report on the effect of those fluctuations on growth and development, in particular in developing countries;

Also requests the Secretary-General, in cooperation with the Bretton Woods institutions and the United Nations Conference on Trade and Development, to report to the General Assembly at its fifty-third session on the implementation of the present resolution.

Who adopted this document and its mandates?

What subjects does this mandate have?

What’s in this document?

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