Notes that the globalization of financial markets can generate new risks of instability, including interest rate and exchange rate fluctuations and volatile short-term capital flows, which require all countries to pursue sound economic policies and to recognize the external economic impact of their domestic policies; recognizes, in this context, that the regular lending programmes of the multilateral institutions, recent initiatives aiming at enhancing the confidence of the financial markets, and the operational activities of the UN system, inter alia, in promoting capacity-building for sound financial managements, contribute to assisting recipient countries, particularly developing countries, in such adjustment and stabilization efforts as are conducive to their development process; stresses the need for encouragement of private flows to all countries, in particular to developing countries, while reducing the risks of volatility; welcomes the steps taken by IMF, and recognizes the need for a stronger and central role for the Fund in surveillance of all countries, in a symmetrical manner.

Adopted without vote, 86th meeting

4 p.

Adopted at the 86th plenary meeting, 16 Dec. 1996.