text: session, ofestablishing afundfinanced byvoluntary contributions from transnational corporations anddevoted tosuppGrting theeffort ofdeveloping countries inthatarea; "7.Reque.§!& theSecretary-General tosubmit totheCommission on Transnational Corporations, atitssixteenth session, areport onthe implementation ofthepresent resolution." 120.Atthe13thmeeting, on14April, theSecretary oftheCommission readout revisions tothedraftresolution whichhadbeenagreed toduring informal consultations. 121.Atthesamemeeting, theCommission adopted thedraftresolution, asorally revised (seechap.I,sect.A,draftresolution V). 122.Afterthedraftresolution wasadopted, statements weremadebythe representatives oftheUnited States ofAmerica andtheUnited Kingdom ofGreat Britain andNorthern Ireland. -47- -48-124.Inintroducing theitem,theActingAssistant Director ofthePolicy AnalysisandResearch DivisiQn oftheCentre drewtheCQmmissiQn's attention tothefactthattherepQrt wasdivided intQtwosections for analyti~al convenience.Section IdealtwiththeroleQftransnational banksas~~onduit fQrtheflowofexternal financial resources thrQugh themechanism Qfcrnnrnercia1 lQans, whilesectiQn 11dealtwiththeirrQleasacatalyst fQrdevelopment thrQugh onshQreoperations. Astothemobilization ofcommercial loans, hesaidthatmarket forceshadactedinamanner thathadledtoanuneven geographical distribution ofthoseloans, withahighconcentration intheLatinAmerican andtheCaribbean region andasituatiQn ofexcessive lending. SinceAugust 1982,asthedebt-servicingprQblems Qfdebtor cQuntries became apparent, mQsttransnatiQnal bankshadsharplyreduced theirloans. Avariety ofinnovative debt-management practices adopted bytransnational bankssincethenprevented acollapse oftransnational banks, butprQvided onlylimited benefit tQdeveloping cQuntrl'~~, whichhadtocontend withagrowing stQckQfdebt, asignificant reverse transfvr QfreSQurces andadeterioration invariQus eCQnQmic andwelfare indicatQrs. InthelightofthQsefindings, th~reportoutlined nineelements thatshould beincluded inanystrategymeanttosolvethedebtprQblem, fQcusing Qn,interalia,asubstantial reductiQnoftheburden ofdebt,theestablishment ofalinkbetween debtservice andthedebtQr countries' capacity topayandamechanism forsharing theburden byallparties concerned, including transnatiQnal banks. HenotedthatSQmeprogressalongthoselineshadbeenmade,asexemplified bytherecentinitiative oftheUnited StatesSecretary oftheTreasury. Insofarasonshore operations oftransnational bankswereconcerned, hestatedthat,despite thecomplexity offactors thatexplained thewidevariations amongthedeveloping countries, thepresence ofothertransnational cQrporatiQns andthedegree ofQpenness toforeigntradewereimportant determinants ofthepresence oftransnational banks.Transnational banksappeared tQshowanatural preference forforeign tradefinancing, buttherewasnodirect relatiQnship between theirpresence QntheQnehandandtheleveloffinancial development orthedegree ofmobilization offinancial savings ontheother. Thereweresomeexamples ofpositive contributionsbytransnational banksincertain otherareassuchasdevelopment ofcapitalmarkets, technQlogy transfer andtraining, but,ingeneral, theircontributiQn inthoseareasseemedlimited. Finally, henotedthatthereportalsoexamined theimplications ofthosefindings forregulatQry policies towards transnatiQnal banks.123.TheCQmmissiQn cQnsidered item10(a)Qfitsagendaatits7th,8th,12thand13thmeetings Qn10, 11, 13and14April1989.IthadbefQreittherepQrt QftheSecretary-General ontransnationa1 banksindeveloping countries (E/C.10/1989/13).A.RQleQftransnatiQnal banksChapter IX ROLEOFTRANSNATIONAL CORPORATIONS INSERVICES, INCLUDING TRANSBORDER DATAFLOWS 1~5.MostdelegatiQns vQiced theQpinion thattransnational bankswereamajorparty tQtheinternational debtproblem andtheirbehaviQur wasanintegral partQf itssolution andtherefore thediscussion ofthedebtproblem insofarasitrelated totheactivities oftransnational bankswasverymuchwithin themandateoftheCommission. ThedebtissuewastQOimportant andurgent fQrdevelQpingcountries foritsconsideration tobecQnfined totheBretton Woodsinstitutions1II-., ~'-_..- --..-...',~"""""­ (.,_~_.':1,, jCj I!only. Anadditional justification fortheconsideration ofthedebtproblem was thelinkage between thedebtproblem andtheflowofforeign directinvestment. Developing countries hadsofarbornethemajorcostofthedebtburden, butthere wasanincreasing international recognition oftheneedforreducing theburdenof
analysis: The text appears to be discussing the role of transnational corporations, particularly banks, in the debt crisis of developing countries. It highlights the uneven distribution of commercial loans, the burden of debt, and the need for debt management practices. The report also touches on the relationship between transnational banks and foreign direct investment. Given the focus on economic issues, international development, and the financial sector, it is likely that the text falls under one of the economic categories.