text: 129.Somedelegations expressed concern abouttheideaofaninternational lawof bankruptcy forsovereigr States. 130.Theapproach takeninthesecondsection ofthereport, dealing withtherole oftransnational banksintheironshore operations, wascommended bysome delegations. Several delegations observed thattherewassubstantial scopefor tran8national bankstoplayapositive roleinsuchareasasthedevelopment ofan institutional framework foreconomic growth, development ofcapital markets, facilitating international moneyandtradeflows,dissemination ofknowledge of markets, thestimulation ofcompetitiveness andtechnology transfer. One delegation suggested thatthereshou.ld havebeenmoreexplanation inthereportof aninteresting finding oncontrasting relationships between thepresence of transnational banksandtheleveloffinancial development insuchcountries as India,SriLankaandThailand. Another delegation expressed theviewthatthe conclusions inthereport werebasedonlimited evidence. Onedelegation notedthe needforamorefocused discussion onwaysofensuring constructive collaboration between transnational banksanddeveloping countries. 131.Somedelegations madesuggestions forfutureactivities oftheCentre onthe roleoftransnational banksintheironshore operations. Amongthemwereareview ofpolicies toattract transnationa1 banks,taking noteoftheirresponsi'veness to policy changes inbothhostandhomecountr5es; anexamination oftheextentto whichhostcountry regulatory policies wereeffective inachieving theirobjectives orwereobstacles tothepositive roleoftransnational banks;possibilities for improving transfer oftechnology; creation ofanimproved statistical base;and technical assistance todesignpolicies soastoincrease thepositive contribution oftransnational banks,including debt-equity swaps. Someoth--delegations recalled thattheCommission hadagreed i.nthepasttostud} ~ational service corporations andthatdifferent reports hademphasized the im~~ _~eofbanks' activities intheservice sector. Thosedelegations saidthat(the transnationalization ofactivities ofbankswasmainlyrelated tothegranting of loans, theyfailedtoseewhytherewereobjections totheCommission discussing theroleoftransnational banksinthedebtcrisis. 132.Inresponse tosomeoftheissuesraised bydelegations, theActingAssistant Director ofthePolicyAnalysis andResearch Division statedthatthereportbefore theCommission didnotascribe thedebtcrisistothetransnational character of thebanks, butsimplyanalysed theroletransnational bankshadplayedinthat crisis. Itwasnecessary totakenoteofthefactthattherewasacertain degree ofinterdependence between debtandforeign direct investment andthatalink between thosetwovariables alsoarosethrough debt-·equity swaps. Heobserved that someoftherecent developments withregardtosolving thedebtproblems couldnot bereflected inthereport asithadbeenprepared wellbefore thosedevelopments tookplace. Hebriefed theCommission onsomeofthedevelopments andconcluded by stating that,atthatstage,theroletransnational bankswerelikelytoplayin response tothoseinitiatives couldonlybespeculated. -50- ~tiQn takenbytheCQmmissiQn "Recalling itsresolution 1988/58 of27July1988onstrengthening the roleoftheCommission onTransnatiQnal Corporations andtheactivities ofthe United Nations Centre onTransnational Corporations insupport ofdeveloping countries,'I,Qn Group Assembly resolutiQn 43/198 Qf20December 1988 crisis anddevelQpment: towards adurable sQlutiQn Qf"Recalling General entitled 'External debt thedebtprQblem',"TheEconQmic andSocialCouncil,RQleQftransnatiQnal banksindeveloping cQuntries133.TheCQmmissiQn tQQknQteoftherepQrt QftheSecretary-General ontheroleQf transnational banksindeveloping countries (E/C.10/1989/13). Itrequested the Secretary-General tocQnduct further studies onthesUbject inthelightQfthe discussion atthefifteenth session QftheCommissiQn. 134.Atthe12thmeeting, Qn13April1989,theobserver fQrMalaysia, 171 behalf QftheStates Members QftheUnited Nations thataremembers Qfthe of77,intrQduced adraftreolution (E/C.10/1989/L.10) entitled "Roleof transnatiQna1 banksindevelQping cQuntries", whichreadasfQllows: "Reaffirmi..ng theimportance ofcontinuing thecQnsideration bythe
analysis: The text appears to be discussing the role of transnational banks in the economic development of developing countries, particularly in the context of debt crises and financial markets. The language used is technical and focused on financial and economic concepts, suggesting that the category should be related to economics.