International Monetary Fund (IMF) has become a net recipient of resources from developing countries. The resource squeeze is further worsened by the reluctance of the commercial banks to grant any significant new loans to indebted countries. Official development assistance flows have stagnated over the years and show very little prospect of reasonable growth in the future. A few medium-sized economies in Europe, notably in the Nordic countries, have attained and in some cases exceeded the target of 0.7 per cent of gross domestic product in official development assistance flows established by the international community. Regrettably, official development assistance flows from the economically powerful countries have been less than one half the target. If it were possible for the industrialized countries to accept the principle of reserving part of the resources saved from disarmament for the development of developing countries the situation could be saved -but would it? RH/3 A/S-18/PV. 4 6 (Mr. Obed Asamoah, Ghana) It is in the context of these severe resource constraints that many developing countries have been carrying out structural adjustment programmes in an effort to put in place policies designed to halt economic decline and lay the basis for long-term development. Paradoxically, the prescriptions for structural adjustment facilities have in some cases worsened the economic plight of dveloping countries. Because structural adjustment programmes have the effect of improving the supply situation, thus alleviating shortages of goods, they mask some serious inherent deficiencies that need to be addressed. These programmes encourage increased production of the very commodites that lack stable markets. Such increased production merely depresses prices. Thus greater productive effort leads to little or no reward and sometimes carries with it environmental degradation. Meanwhile the external economic environment makes possible only crisis management and undermines capacity for diversification of 
**Analysis**
The text primarily discusses the economic challenges faced by developing countries, specifically the resource squeeze, official development assistance, and structural adjustment programs. It also touches on the environmental degradation caused by increased production. These themes suggest that the text is more focused on economic development and its interactions with the environment.

**Category**
Economic development, International trade, Natural resources and environment