topicscovered inthedebate. 38.Thenineteenth session oftheBoardwasseenasaprelude totheconversion of UNIDOintoaspecialized agencyanditsdecisions wouldbeexpected toprovide a basisforthecontinuation offurther workbytheprincipal organsofthenew organization. 39.Itwasnotedthat,aftertherecession ofrecentyears,therehadbeensigns ofeconomic recovery insomecountries in1984whichgavehopeforamoderate world economic recovery andcreated apositive climate fortheestablishment ofthenew specialized agency. Itwasalsonoted,however, thatseriousdifficulties, suchas unemployment andfinancial imbalances werestillfacingmostcountries, including somedonorcountries. Theglobaleconomic situation wasstillseenasmarked by widespread economic stagnation andcrisisofwhichthedeveloping countries continued tobearthebrunt. 40.Itwasagreedthatformostdeveloping countries 1984hadbeenadifficult year. Theyear,itwasstated, wascharacterized byinflation, reduced financial assistance, declining investment, highinterest rates,growing unemployment, protectionism particularly against theexports ofdeveloping countries, adropin worldpricesofrawmaterials, shortage offoreign exchange andtheburdenof foreign debts. Thecurrentcrisis,itwaspointed out,hadparalysed efforts towards international co-operation fordevelopment, undermined confidence between Statesandasaresultsloweddowntheindustrialization process ofthedeveloping cOuntries. Theadjustments whichhadtobemadebythedeveloping countries in response tothedifficulties theyhadtoface,had,itwasstated, beencostlyand painfUl inbotheconomic andsocialterms. Ofthenumerous obstacles hindering the accelerated industrialization ofdeveloping countries, theburdenofforeign indebtedness wasseenasoneofthegravest, withthetrendtowards negative transfer ofcapital havingworsened during1984. 41.Theeffectoftheeconomic crisisinAfricawascompounded byproblems of drought, desertification, disease andwidespread famine. Itwasobserved that catastrophic climatic conditions hadledtoanunprecedented situation whichcalled foranurgentresponse bytheinternational community. Whilepublicreaction to thehungerinAfrica hadproduced substantial resources forfoodaid,itwasstated thatthesolution totheAfrican problem layintheeradication ofthecausesof theproblem. -10-f d s42.Afundamental improvement intheinternational economy andthewilltobring aboutconsequent changes inthemonetary, financial andtradefields were considered prerequisites forasolution tothecurrent situation. Urgentmeasures onthepartofthedeveloped countries werecalledfortoreactivate the development ofdeveloping countries suchasenlarging thetransfer ofconcessional resources, dismantling protectionist barriers andfinding along-term solution to thedebtproblem. Ontheotherhand,itwasconsidered essential thatthe developing countries mobilize theirownresources andatthesametimeintroduce socio-economic changes, including democratic agrarian reform. Itwasalsoobserved that,whiletheprocess ofeconomic adjustment bydeveloping countries hadto continue toensure asteadyworld-wide economic recovery, theindustrialized countries hadtoprovide thedeveloping countries withopportunities toreapthe rewards oftheiradjustment efforts. Overcoming thecrisis,itwaspointed out, calledforgreater co-ordination ofnational policies andthereactivation of multilateral economic negotiations onthebasisoftheCharter ofEconomic Rights andDutiesofStates andtheDeclaration ontheEstablishment ofaNew International Economic Order. 43.Industrialization wasrecognized asthemaininstrument tomeetthecrIsIs and assistdeveloping countries towards self-sufficiency, providing thestarting point wastheformulation ofsuitable strategies. Asuccessful-industrialization strategy, itwasunderlined, shouldtakeintoaccount thesocialaspects of development, withincreased involvement oftheState. Theroleofprivate initiative inthatcontext wasalsostressed. Furthermore inthedeveloping countries, industrialization, itwasobserved, should bebasedonregional integration ratherthaninward-looking development, andthelinksbetween industrialization andexternal tradeshould beborneinmind,byboththedeveloped
**Analysis**
The text appears to be discussing the economic situation of developing countries, particularly in Africa, and the need for international cooperation to address the crisis. It mentions various economic and social challenges, such as inflation, unemployment, foreign debt, and drought, and emphasizes the importance of industrialization, regional integration, and international cooperation to overcome these challenges.

**Category**
Economic development, International trade