Forthediscussion, seechap.IIIbelow. -6-I I iJ._ Rgca11ing Economic andSocial Council resolution 1988/1of 5February 1988anddecision 1988/161 of27July1988, NotingthereportoftheSecretary-General oninvestment oftransnational corporations inAfrica, ~/submitted totheGeneral Assembly atits forty-third session inthecontext ofthemid-term reviewofthe implementation oftheProgramme ofAction, Bearing inmindthefactthattransnational corporations cancontribute toAfrica's economic recovery anddevelopment through increased direct investment inproductive sectors ofAfrican economies, Recognizing thatinvestment bytransnational corporations inAfrica would constitute asignificant sourceofnon-debt creating resource flowstoAfrica, Notingwithconcern thattheshareofinvestments madebytransnational corporations indeveloping countries hasbeensubstantially declining in general andinAfricainparticular, 1.CallsontheSecretary-General toprepare areportcontaining, interalia,recommendations onalternative strategies thatwouldcreate a mutually beneficial framework andleadtoconcrete measures toencourage transnational corporations torespond positively toimprovements inthe investment climate inAfrica andthereby promote economic growth and self-sustaining socio-economic development, inaccordance withtheUnited Nations Programme ofActionforAfrican Economic Recovery andDevelopment 1986-1990, andtheLagosPlanofActionfortheImplementation oftheMonrovia Strategy fortheEconomic Development ofAfrica, adopted in1980, ~/ especially inthosesectors inwhichtransnational corporations canmakea greatcontribution through capital mobilization, technical expertise, transfer oftechnology andmarketaccess; 2.Invites thehomecountries oftransnational corporations to encourage, asacomplement tomeasures takenbydeveloping countries themselves, investment bysuchcorporations inalldeveloping countries, particularly inAfrica, andtothatend,consider providing, interalia, financial andfiscalincentives, including tax-sparing; 3.Requests theSecretary-General tocontinue tomobilize resources for increased support oftechnical assistance requirements ofAfrican countries, atthenational! subregional andregional levels, toenable themtoincrease theircapacities todealwithtransnational corporations, soastotake advantage ofinvestment opportunities through transnational corporations; 4.Requests theSecretary-General toupgrade thereportprepared for themid-term reviewoftheimplementation oftheProgramme ofAction, ~/ providing detailed andcomprehensive coverage offoreign direct investment in Africa onasector bysectorbasis, andtosubmit areportthereon tothe Commission onTransnational Corporations atitssixteenth session. ~/A/43/500/Add.2. 2/A/S-ll/14, annexI. -7- 1j -l ,'l ,1 -1 ~l 'I, .).\ 'II, j r.Il,'1! J ', I , j 1ii ;~.~~-........... I, I l~ I.,~I!.' j. !'1)'~I'I,4 !'1.J, '~ 'j I 1 I '1 I Ij \ I j \ ! I I .1 [ I fI I! I 'j II j !Ij I I I,I II,j I 1, I ,I I1 ,:1 ~DRAFTRESOLUTION VII Activities oftrqnsnational corporations inSouthAfrica andNamibia* TheEconomic andSocialCouncil, Recalling itsprevious resolutions ontheactivities oftransnational corporations inSouthAfrica andNamibia, inparticular resolution 1988/56 of