From: wsargeant@IGC.ORG (Winslow L. Sargeant)
Newsgroups: soc.culture.african
Subject: IPS:Opecna, third world wants transnati'
Date: 12 Apr 92 21:40:34 GMT

/* Written 10:57 am  Apr 10, 1992 by newsdesk in cdp:ips.opecna */
/* ---------- "Opecna: third world wants transnati" ---------- */
Copyright Inter Press Service 1992, all rights reserved.

Area: Opecna Morning Transmission
Title: Opecna: third world wants transnationals to spread technology


united nations, 10 apr. 92 (opecna)--a spokesman for
developing countries last night called on western transnational
corporations to transfer sophisticated technologies to ensure
economic growth in the third world.
+technologies disseminated in developing countries are not
the most sophisticated as they are protected and well-guarded by
parent organisations,+ said sher afghan khan of pakistan in his
country's capacity as chairman of the group of 77 (developing
countries).
he was speaking in the commission on transnational
corporations which is currently studying the role of those
companies in the new world economy characterised by greater
privatisation and higher international flows of capital.
sher afgan khan stressed that the growth-promoting impact
of transnational corporations on developing countries was
dependent on incentive structures.
the g-77 chairman said that the benefits of foreign direct
investment accrued in large part to developed countries which
received four-fifths of such investment, while developing
countries, despite their best efforts, lagged behind.
+it is a matter of concern that the benefits from foreign
direct investment to developing countries have not been evenly
distributed,+ he said.
that, he added, was especially evident in africa which
received only seven percent of inflows. the countries of asia
and the pacific had commanded an increasing share, he said. +the
increasing marginalisation of africa in this activity cannot be
allowed to persist in this interdependent world.+
the relationship between transnational corporations and
host country was a two-way street, sher afgan khan said, adding
that this was particularly true with regard to the issue of
transparency.
+transnational corporations must be transparent in their
activities, which must be pursued in accordance with the laws and
legislative provisions of the home and host countries,+ the g-77
chairman added.
a representative of the un's economic and social department
said transnational corporations, more than ever before, were key
players on the world economic scene as they were a major source
of the capital and technology that were important determinants
of economic growth.
samuel asante, addressing the commission on behalf of ji
chaozhu, under-secretary-general for economic and social
development, urged transnational corporations and their host
countries to work together to ensure that their activities make
an overall positive contribution to development.
in an introductory statement, hamdan benaissa, director of
the division of transnational corporations and management, said
the newly consolidated division now had tremendous combined
resources for capacity building in a wide range of fields.
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(10-apr-92)






technol-2

he invited suggestions from the commission on new
perspectives and approaches to the division's policies and
technical cooperation functions.
paul lemerle of france said the work of the commission
shoudl lead to operational proposals for true partnership
between the north and the south.

referring to the fact that foreign direct investment was
mostly going to the united states, the european economic
community (eec) and japan, he said france was in the forefront
in this regard being open to receive investments.
the opening of eastern european countries, he said, was
also important and would have an impact in the context of
transnational corporations. that, however, should not mean
redirecting investments intended for the developing countries.
as for those countries, lemerle noted their increasing
economic diversification. he called for un activities to
facilitate the flow of foreign direct investment to developing
countries.
in this connection, changes had to be implemented in the
developing countries themselves, including efforts to increase
savings and repatriate capital.
private entrepreneurs, the french delegate said, must be
able to find an infrastructure that offered favourable
conditions for them to operate. +thus, developing countries
should train their human resources+.
jose robles of mexico said it was clear that the changing
global economic climate was now more open to foreign direct
investment flows, especially the capital of transnational
corporations. such flows remained concentrated in developed
countries. in 1990, the eec, the united states and japan
received four-fifths of all foreign direct investment, while
developing countries received only 17 per cent.
latin america and the caribbean had encouraged increased
inflows through such measures as debt-management, robles said.
mexico was seeking to make greater resources available to
development, and had nearly doubled its foreign direct
investments over the past year through its open policies geared
towards creating a favourable investment climate.
mechanisms had been created to encourage foreign direct
investment, and the privatization of large state enterprises had
contributed greatly to recent growth.
investment mechanisms must channel resources to activities
of benefit to both transnational corporations as well as host
countries, he said.
dietrich kurthy of germany said transnational corporations
triggered the growth of international trade and the dissemination
of technology. they increased the flow of financial resources, in
particular the inflow of direct investment in developing
countries, and could contribute to sustainable development.
a stable and favourable domestic investment climate was the
prerequisite for attracting foreign capital, he said. a +clear
credo+ on market rules for the economy, good management and good
governance was needed.
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(10-apr-92)






technol-3

kurth went on to say that dissemination of technology must
not be regarded as a mechanical and simple process rather, it
was the result of comprehensive and consistent macroeconomic
policy.

hiroharu koike of japan said growth in global foreign
direct investment had slowed in 1990. japanese direct foreign
investment in fiscal 1990 had followed the same direction,
decreasing 15.7 per cent from the previous year, to 56.9 billion
dollars.
although that represented the first decrease in nine years,
he said it should be noted that the figure for fiscal 1989 was a
record high, namely a 44 per cent increase over the previous
year, and the figure for fiscal 1990 was still 21 per cent higher
than that for fiscal 1988.
among the reasons for that decrease he cited were factors
such as the slower growth experienced by a number of large
economies, as well as the diminished financial ability of the
companies concerned and cyclical elements relating to completion
of production facilities.
as regards the geographical outflow of japanese investment,
he said, while the flow of capital to north america had
decreased by about 20 per cent, investment in africa and asia
had decreased by 18 per cent and 14 per cent, respectively.
although japanese direct foreign investment in latin
america and the caribbean had dropped by 31 per cent in fiscal
1990, japan continued to attach importance to promoting economic
relations with those and other regions of the world.
to that end, he said, japan had signed an agreement
establishing a multilateral investment fund in february this
year.


end of opecna morning transmission
(10-apr-92)