reference to the debt problem, which remains unresolved. The alarming fact is that what had been a net flow of some $47 billion to the South in the early 1980s was JP/ASW A/S-18/PV. 4 12 (Mr. Omar, Malaysia) reversed within a period of eight years to over $32 billion in debt servicing outflows to the North in 1988. To redress this grim reality, the world needs a bold financial initiative that gives developing countries new incentives to sustain vitally needed economic growth. From the perspective of the development financing needs of developing countries in the 1990s, two interrelated aspects of the debt crisis merit greater attention. First, if debt reduction is to be effective in revitalizing growth in debtor countries, creditor Governments and multilateral financial institutions must widen their role, with a view to enlarging the scale and pace of debt reduction and debt-service reduction. Secondly, debt reduction and debt-service reduction should not be negated by the dwindling of new funds. Additional efforts to ensure that new lending is not discouraged will be required of official donors and creditors, particularly multilateral financial institutions. Similarly, the conditionality attached to adjustment programmes must continue to take full account of the difficult and complex issues prevailing in most debtor countries. Almost all developing countries are vitally dependent on an open and stable multilateral trading system. Unfortunately, since the early 1980s the system has come under considerable pressure from many directions. Our resolve ought to be to stem the tide of protectionism by strengthening the multilateral trading system founded on the General Agreement on Tariffs and Trade (~TT). There is sufficient evidence to suggest that the least developed countries, with the lowest adjustment capabilities, suffer disproportionately from trade barriers imposed by the developed countries. Strengthening of the 
**Analysis**
The text primarily discusses the debt problem faced by developing countries, the need for a bold financial initiative to address this issue, and the importance of an open and stable multilateral trading system. The text also touches on the need for debt reduction and debt-service reduction, as well as the conditionality attached to adjustment programs. Given the focus on economic issues, such as debt, trade, and financial initiatives, it is likely that the text falls under the category of economic development.

**Category**
Economic development, International trade