I03. The present system is hiqhly asymmetrical in the sense that iC imparts adeflationary bias to the adjustment process of the deficit countries - except forthe major reser ve-cu r r ency counCry - forcing them to reduce expendieures and absorption, but it does not exert parallel pressures on surplus countries Co take expansionary measures. 'rhe resurt. is that a dispr opor tiona !e share of the burdenof adjustment is transferred to capi ta l-i mporting countries. 104. Ita ny developing countries feel that, in considering the adjustment process, much greater emphasis must be placed on growth and supply-oriented structural adjustment, with special attention Co fostering investment, production andexports. At present, in these countriesr view, neither IMF conditionality nor JMF resources support this approach. 105. Developing countries as well as a number of developed countries consider that IMF surveillance of domestic polici.es has been too cou ntry-spec i fic and that it has concentrated, in effect. on developing countries. They emphasize the need for strengChening surveillance by maklng iC more effective, extending it to the economic policies of all major countries and examining, in particular, the tday in which their policies inleract with each other and affect the international econolw.A/40/704 Engli sh Page 25
**Analysis**
The text appears to be discussing the International Monetary Fund (IMF) and its role in the global economy, particularly in relation to developing countries. It highlights the asymmetrical nature of the adjustment process, where deficit countries are forced to reduce expenses and absorption, while surplus countries are not pressured to take expansionary measures. The text also touches on the need for structural adjustment, investment, and exports, as well as the need for strengthening surveillance of economic policies.

**Category**
International trade, Economic development