indigenous entrepreneurs. (b)CourseofactionoftheSecretariat 12.51Policy-oriented research willbeundertaken onthestructure andfunctioning ofthefinancial sectorofdeveloping countries. Issues suchasinterest rate policies, creditallocation, prudential regulations, supervision ofinstitutions andmarkets, aswellasnewfinancial institutions andmarkets willbeaddressed withaviewtomobilizing additional savings. Research andconsultations willbe undertaken withaviewtoestablishing amultilateral convention onmutual assistance intaxcollection withguidelines forinternational co-operation aimed atcombating taxevasion andavoidance. Increased attention willbegiventothe development andformulation ofguidelines fortaxtreatment ofbranch and -12----------------------------- SUBPROGRAMME 4.MOBILIZATION OFFINANCIAL RESOURCES, TAXATION AND ENTREPRENEURSHIP (a)Ob;ecHves 12.47 Thelegislative authority forsubprogramme 4derives fromGeneral Assembly resolutions 35/66, annex,paragraphs 96and110,and41/182; andEconomic and SocialCouncil resolutions 1980/13 and1988/74. 12.48Inthe1980sfinancial institutions inmanydeveloping countries faced serious difficulties. Thedomestic financial resources werenotalwaysutilized to thegreatest extentforeconomic andsocial development, andtherewasaneedto reducethegapbetween potential andactually mobilized resources through the formulation andimplementation ofsoundandappropriate fiscal andfinancial policies. Inthefiscalarea,taxpolicies wererequired thatwouldimprove the assessment andcollection oftaxesandtheallocation ofexpenditure. International co-operation ontaxmatters isimportant inthisregardbecause developing countries, likedeveloped countries, losesubstantial financial resources asaresultofinternational taxevasion andavoidance. Furthermore, measures suchastheelimination ofdoubletaxation andtheinclusion of tax-sparing provisions innational taxlegislation ofcapital exporting countries andtheconclusion ofbilateral taxtreaties wouldhelpdeveloping countries attract greater amounts offoreign investment. 12.49Developing countries havenotyetfullyexploited thecontribution that entrepreneurship canmaketoeconomic development. Thissituation ispartly dueto national policies notsufficiently gearedtothepromotion ofentrepreneurship, to deficiencies ininstitution building andtoalackoftargeted technical assistance forsmallentrepreneurs. Furthermore, thedevelopment ofentrepreneurship in developing countries suffered fromtheunfavourable international economic environment inthe1980s,inparticular fromthelackofsufficient export opportunities andinadequate availability ofcapital. 12.50 Theobjectives ofthesubprogramme are(a)tostudyissuesrelated tothe mobilization offinancial resources, taxation andentrepreneurship andtoprovide policyoptions andrecommendations toassist developing countries inmobilizing all available domestic financial resources andforeign financial resources ontermsand conditions compatible withnational priorities andlegislation; and(b)to recommend appropriate fiscal andfinancial policies andmeasures insupport of development, including measures toreformtaxsystems, combattaxevasion andwiden the tax base,andtodevelop options forbroadbaseddevelopment andencouraging indigenous entrepreneurs. (b)CourseofactionoftheSecretariat 12.51Policy-oriented research willbeundertaken onthestructure andfunctioning ofthefinancial sectorofdeveloping countries. Issues suchasinterest rate policies, creditallocation, prudential regulations, supervision ofinstitutions andmarkets, aswellasnewfinancial institutions andmarkets willbeaddressed withaviewtomobilizing additional savings. Research andconsultations willbe undertaken withaviewtoestablishing amultilateral convention onmutual assistance intaxcollection withguidelines forinternational co-operation aimed atcombating taxevasion andavoidance. Increased attention willbegiventothe
**Analysis**
The text discusses the mobilization of financial resources, taxation, and entrepreneurship in developing countries, with a focus on policy-oriented research and international cooperation to combat tax evasion and avoidance. It highlights the importance of sound fiscal and financial policies, as well as the need to promote entrepreneurship and reduce the gap between potential and actual mobilized resources.

**Category**
Economic development, International trade