reducing their economic potential for the future. Simultaneously, adjustment processes for making Payments abroad have increased the fiscal deficit and consequently accelerated inflation. Its ravages have translated into high social costs which have unfortunately struck at the most disadvantaged strata of our population. Parallel with indebtedness, there has arisen the problem of the negative net transfer of funds out of developing countries and into the developed world. How is the third world going to attain levels of sustained development if during the period 1984-1989 there was a negative net transfer of about 4180 billion? We must thereforee seek imaginative, innovative ways and means to help our countries, poor and capital-starved, once again become net recipients of financial resources. One of the most oromising paths towards attaining that end lies in designing a pattern that would make it possible to utilize capital that has fled our countries and that is now on deposit with commercial banks in the industrialized world. The purpose of this machinery would be to make use of such resources for investment and development projects in the countries of origin of the funds, which could then be used only for acquiring goods and services from those countries in which the funds are deposited, so as to benefit their economies as well. In this way the resources originating in medium-income and low-income countries would be returned as investment loans to contribute to economic growth. The challenge is to find ways to induce commercial banks bo participate in this scheme. JSM/jl A/S-18/PV. 9 29 (Mr. Nieto, Costa Rica ) The machinery could operate as an overall contingency fund guaranteed by the industrialized nations against the eventuality of non-performance. To make it more attractive, those same nations could grant a tax incentive to participating banks - 
**Analysis**
The text discusses the issues of economic development, debt, and financial transfers between developed and developing countries. It highlights the problem of negative net transfer of funds from developing countries to developed countries, which hinders economic growth and development. The proposed solution involves designing a mechanism to utilize capital that has fled developing countries and is currently deposited in commercial banks in the industrialized world. This mechanism aims to return the resources to the countries of origin as investment loans, contributing to economic growth. The text emphasizes the need to find ways to induce commercial banks to participate in this scheme.

**Category**
Economic development, International trade