Reform of the international monetary system

XXVIII. RESOLUTIONS ADOPTED ON THE REPORTS OF THE SECOND COMMITTEE
3084. Reform of the international monetary system

The General Assembly, Recalling its resolution 2806 (XXVI) of 14 December 1971, as well as resolution 84 (III) of 20 May 1972 of the United Nations Conference on Trade and Development,[1] Noting that the Chairman of the Committee on Reform of the International Monetary System and Related Issues, established by the Board of Governors of the International Monetary Fund, has submitted a report on the present status of the Committee's work and a First Outline of the Reform, Recognizing that the problems in the monetary, trade and finance fields should be resolved in a coordinated manner, taking into account their interdependence, through appropriate consultations as envisaged in the relevant resolutions of the United Nations Conference on Trade and Development, with the full participation of developed and developing countries,

1. Draws attention to the danger of harmful disruption of world trade and development, in particular for developing countries, as a result of the continuing uncertainty in the international monetary sphere, and welcomes the intention of the Committee on Reform of the International Monetary System and Related Issues to settle the issues of reform by 31 July 1974;

2. Stresses that the reformed monetary system should aim at universality and should take into account the interests of the international community as a whole, thereby assisting in the evolution of a system of world economic relations based on the equality and interest of all countries;

3. Welcomes the provisions for full and effective participation of the developing countries in the discussions and in the decision-making process of the reform and emphasizes the role of the Committee on Reform of the International Monetary System and Related Issues as the body fully responsible in all negotiations on the reform;

4. Recognizes the need for an appropriate degree of flexibility in the new monetary system to take into account inter alia, specifically, the special characteristics and specific structural problems of developing countries;

5. Invites the International Monetary Fund to give attention to the concerns of the developing countries, particularly in the forthcoming review of its current quota, and through that, consequentially, voting structure;

6. Endorses further examination of proposals for establishing a new fund facility to provide longer-term balance-of-payments finance for developing countries;

7. Recognizes the need for reviewing the methods of operation of the International Monetary Fund, in particular the terms for both credit repayments and "stand-by" arrangements, the system of compensatory financing, and the terms of the financing of commodity buffer stocks, so as to enable the developing countries to make more effective use of them;

8. Asserts the fundamental importance of ensuring that the reformed system should both create conditions and contain arrangements for promoting an increasing flow of real resources from the developed countries to the developing countries;

9. Recommends that, within the framework of the reform of the international monetary system, the earliest possible decision should be reached, in accordance with the time-table established by the Committee on Reform of the International Monetary System and Related Issues, on the outstanding issues, including the question of establishing a link between special drawing rights and additional development finance;

10. Emphasizes that the additional creation of special drawing rights in an adequate and orderly manner by the International Monetary Fund should be determined on the basis of global liquidity needs;

11. Agrees that wherever possible the developing countries will be exempted from import and capital outflow controls for balance-of-payments purposes and that special circumstances of developing countries will be taken into account in assessing controls which these countries feel it necessary to apply;

12. Welcomes the decision of the Committee on Reform of the International Monetary System and Related Issues to set up a Technical Group on the Transfer of Real Resources in order to examine in detail specific suggestions for action which could be taken by the Committee in accordance with its mandate so as to promote the flow of real resources from developed to developing countries.

2192nd plenary meeting
6 December 1973


[1] See Proceedings of the United Nations Conference on Trade and Development, Third Session, vol. I, Report and Annexes (United Nations publication, Sales No.: E.73.II.D.4), annex I.A.
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