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III. ENABLING SUSTAINABLE DEVELOPMENT
}} 26. Developing countries have sought, for many years, fundamental changes in international economic arrangements so as to make them more equitable, particularly with regard to financial flows, trade, transnational investment, and technology transfer. Their arguments must now be recast to reflect the ecological dimensions, frequently overlooked in the past.

27. In the short run, for most developing countries except the largest a new era of economic growth hinges on effective and coordinated economic management among major industrial countries designed to facilitate expansion, to educe real interest rates, and to halt the slide to protectionism. In the longer term, major changes are also required to make consumption and production patterns sustainable in a context of higher global growth.

28. International cooperation to achieve the former is embryonic, and to achieve the latter, negligible. In practice, and in the absence of global management of the economy or the environment, attention must be focused on the improvement of policies in areas where the scope for cooperation is already defined: aid, trade, transnational corporations, and technology transfer.

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1. Enhancing the Flow of Resources to Developing Countries
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29. Two interrelated concerns lie at the heart of our recommendations on financial flows: one concerns the quantity, the other the 'quality' of resource flows to developing countries. The need for more resources cannot be evaded. The idea that developing countries would do better to live within their limited means is a cruel illusion. Global poverty cannot be reduced by the governments of poor countries acting alone. At the same time, more aid and other forms of finance, while necessary, are not sufficient. Projects and programmes must be designed for sustainable development.

1.1 Increasing the Flow of Finance
30. As regards the quantity of resources, the stringency of external finance has already contributed to an unacceptable decline in living standards in developing countries. The patterns and the needs of the heavily indebted countries that rely mainly on commercial finance have been described, along with those of low-income countries that depend on aid. But there are other poor countries that have made impressive progress in recent years but still face immense problems, not least in countering environmental degradation. Low-income Asia has a continuing need for large amounts of aid; in general, the main recipients in this region have a good record of aid management. Without such aid it will be much more difficult to sustain the growth that, together with poverty-focused programmes, could improve the lot of /…