themeasures adopted bytheirGovernments toenhance theactive involvement of theirenterprises ininternational tradeandeconomic relations anddevelopment of newformsofinternational economic co-operation. 12.Delegations suggested anumberofareasforfurther work,including theimpact ofthesingleintegrated marketwithintheEuropean Economic Community andthe growthofnon-equity arrangements andothertrendsintransnationalization. Many delegations supported theactivity oftheCentreinimplementing Economic and SocialCouncil resolution 1988/57 ontheroleoftheCommission onTransnational Corporations inpromoting alternative andnewformsofinternational economic co-operation andemphasized theimportance ofthatactivity beingcontinued. Some delegations alsoexpresf,ed interest infurther research invarious areas, suchas policymeasures bydeveloped anddeveloping countries andinternational organizations designed toexpandtheflowofforeign direct investment to developing countries, intellectual property rights, causesofsectoral andregional disparities inflowsofforeign direct investment, theroleoftransnational corporations indisseminating newandemerging technologies, andthegrowthof smallandmedium-sized transnational corporations andtransnational corporations fromdeveloping countries. Theroleoflabourinrelation totransnational corporations, andthedevelopment ofentrepreneurial skillsindeveloping countries, werealsocitedasareasofinterest. -17- I· JILr-18-14.Delegations notedwithconcern thattheshareoftheleastdeveloped countries inforeign direct investment flowstoalldeveloping countries remained wellbelow 2percentthroughout the1980s. 15.Manyleastdeveloped countries hadadopted policy reforms toattract foreign directinvestment. Thetangible manifestations ofthosereforms included equal treatment forforeign and~ational investors inthelegalsystem, guarantees ag~inst expropriations orassurances offaircompensation intheeventofany eXFropriation, freedom torepatriate profits andcapital, andawidevariety of fiscalincentives. Thosemeasures hadnotbeenmatched byanadequate response fromtransnationa1 corporations. 16.Itwasrecognized thattherewerevarious limitations thatinhibited theflow offoreign direct investment intoleastdeveloped countries, inclUding those pertaining todomestic marketsize,physical infrastructure, humanresources development, political stability andgeographical location. Nevertheless, aslong astransnational corporations demonstrated theirreadiness toidentify andmake fulluseofcertain advantages oftheleastdeveloped countries, itwasentirely possible forthemnotonlytomakeacontribution totheeconomic development of thosecountries butalsotobenefit fromdoingso.TheCommission therefore emphasized theneedforconcerted action byallparties -hostleastdeveloped countries, homecountries, international institutions andtransnational corporations themselves tostrengthen andincrease co-operation between least developed countries andtransnational corporations. 17.Manydelegations expressed support forthepolicyproposals contained inthe reportoftheSecretary-General ontheroleoftransnational corporations inthe leastdeveloped countries (E/C.10/1989/6), inclUding preferential incentives by homecountries totheirtransnational corporations withaviewtoencouraging them toundertake greater investment intheleast'developed countries. Inthatcontext, delegations fromdeveloped market economy countries elaborated someofthe promotional measures implemented bythem. 18.Afewdelegations fromthedeveloped market economies expressed disagreement withsomeoftheproposals. Forexample, onerepresentative stressed thatthe formulation andimplementation ofappropriate domestic policies werekeyfactors in attracting foreign investment totheleastdeveloped countries. Whilesupporting theviewthatforeign directinvestment andofficial development assistance should, ingeneral, beconsidered complementary andmutually reinforr.ing, thelattershould notbeasubstitute fortheformer. Hewasalsooftheviewthatthediscussion of
**Analysis**
The text appears to focus on the relationship between transnational corporations and least developed countries, discussing the challenges and opportunities for investment, trade, and economic development. It highlights the need for concerted action among governments, international institutions, and corporations to promote investment and cooperation.

**Category**
International trade, Economic development