reform programmes whichwouldemphasize greater flexibility andopenness o(the economy, effective andefficient mobilization anduseoffinancial andhwnan resources andgreater scopeforprivate initiative andenterprise. "Itisessential todevelop amoreopen,credible anddurable multilater&l trading system whichcancontribute effectively tothepromotion ofgrowth ana development, taking dueaccount ofthespecific needsofthedeveloping countries, inaccordance withtheprinciples governing theUruguay Round negotiations andthePuntadelEsteDeclaration. "II. LESSONS FROMTHEPAST "Inthepastdecade anincreasing convergence ofviewshasemerged onkey approaches toeconomic policies andproblems. After,therecession earlyinthe decade, theindustrialized countries resumed steady anduninterrupted growth. Considerable progress hasbeenmadeinresolving imbalances, whichforatime threatened stability intheworldeconomy, although further progress remains to bemade. Success isimportant iftheworldeconomy istoachieve abasisfor further reductions ininterest ratesanddeficits. Theinternational community alsorecognizes thedamaging impact ofprotectionism inallitsformsandthe importance ofreducing it. "Formostdeveloping countries thepastdecade hasproven moredifficult, especially forthosewithlargeexternal debts. Theprocess ofadjustment ~as beenslowandhindered bydeclines inthetermsoftradeandexportprices, whichhavemadeitmoredifficult toaddress thesocial consequence ortoobtain thenecessary political support foradjustment. Thisdoesnot,however, obviate theneedforpolicy reform. Otherdeveloping ~ountries havebeenmore successful inpromoting growth andhavebeenabletoachieve considerable economic andsocial progress. "Wehavelearned fromtheseexperiences. Astheworldchanges around uswe mustrespond positively. Thenature oftheworldeconomy issuchthat flexibility, creativity andinnovation mustbeintegral partsofoureconomic systems, otherwise competitiveness willbelostandstagnation willresult. Soundnational policies arethebasisforsustainable economic growth and development. International economic co-operation andassistance areimportant toknittogether thesystem andtohelpdeveloping countries achieve their potential. /..."III.A/AC.233/L.7 English Page15 POLICIES FORDEVELOPMENT ANDINTERNATIONAL CO-OPERATION "Thereactivation ofeconomic growth anddevelopment ofdeveloping countries willrequire concerted action byallcountries. Success willdepend uponsoundstrategies andpolicies andastrengthened partnership ofdeveloped anddeveloping countries. "Growth needstobebroadly based. drawing themasses ofpeopleinto productive economic activity witheffective. responsive andpUblic decision-making systems. Improvement intheliving scandards ofpeople, increased equity andbroadparticipation requires theestablishment of institutional frameworks andsystems whichprovide larger choice andmore opportunities. "Developing countries havetheresponsibility formobilizing theirnational resources fullyandadopting soundandrealistic macro-economic policies. They shouldcontinue toworktowards keeping control overinflationary tendencies, encourage domestic savings withappropriate interest ratepolicies andraise theirlevelofinternational competitiveness. Moreover, thedeveloping countries should continue toencourage bothdomestic andforeign investment. Thereisaneedtoestablish favourable domestic conditions forinvestment and capital formation andencourage enterprise, private initiative andrisk-taking. Effective markets andappropriate pricing canimprove theefficiency ofresource allocation andpromote investment. "Thedeveloped countries andmultilateral institutions should provide the necessary external resources tofacilitate thestructural reformprocess in
**Analysis**
The text appears to be discussing economic policies and strategies for promoting economic growth and development, particularly in developing countries. It highlights the importance of flexibility, openness, and private initiative, as well as the need for sound national policies and international cooperation. The text also touches on the need for structural reforms, reducing protectionism, and increasing investment. Given the focus on economic policies and development, it is likely that the text falls under the categories related to economic development and international trade.

**Category**
Economic development, International trade