13. Resource flows are analysed in this section under two main concepts aggregate net resource flows and net resource transfers.6

The availability of the balance of unexpended resources depends on the degree of liquidity of the net assets held.

Some countries in North Africa received together about 7 billion in portfolio investment and other forms of long term capital.

Net Worth

That figure would have been even higher, however, had the size of the net transfer on official flows not become smaller yet again in 1997.

Aggregate net resource flows

Northbound Trading Link (NTL), which has seen continuous net inflow of foreign capital, recorded a net capital inflow of RMB 8.7 billion in July, higher than the previous month.

Net Worth By Month

20. Net resource flows and net transfers to SSA, though fluctuating, have been generally positive since the 1970s.

2 Net assets is less than 50 of the paid in capital or contingent liability reaches 50

Net worth forecast

Net Worth Today

Net Worth By Year

However, these have been partially offset by net outflows of other kinds of capital.

All appropriate institutions should make every effort to ensure an adequate net flow of financial resources to developing countries.

countries by country group (USD Billions) 13

The problem in the current episode is that in several countries, there was a sudden and very large shift of external flows from a net inward transfer to a net outward transfer.

In many cases, a combination of capital outflows, profit remittances and the accumulation of exchange reserves greatly reduced net inflows, and of these a growing proportion was absorbed by activities which added little to productive capacity.

Negative net transfers of financial resources a net movement of financial resources out of a country does not necessarily denote an adverse economic outcome.

if the assets sold are equity, the total assets, business income and net assets are respectively the product of total assets, business income and net assets of the invested enterprise and the equity percentage of the investment.

Article 24 The Company shall present the ending balance, beginning balance and percentage increase or decrease of the following financial status indicators asset liability ratio, net asset liability ratio and liquidity ratio in tabular form.

Article 75 The Company shall present the ending balance, beginning balance (prior year) and percentage increase or decrease of the following financial status indicators in tabular form asset liability ratio, net asset liability ratio and liquidity ratio.

Issues discussed have included the misappropriation of assets, immunities, non conviction based asset confiscation, movement of funds, tracing and trafficking of assets, mutual assistance, restraint, confiscation and return of assets.

In addition, although net direct investment flows have become for developing countries the most stable external source of finance for productive investment, they have shown pro cyclical behaviour in recent years.

6 Defined as net resource flows minus the interest payments on long term debt and profit remittances on account of FDI.

The overall outcome of the various financial flows saw a seventh consecutive year of increasing net transfers of financial resources from developing to developed countries.

4. The situation with respect to Africa s share in total net resource flows, especially official development assistance (ODA), is discouraging.

14. The massive change in the net transfer of financial resources in 1997 mainly took the form of an unprecedented swing of short term borrowing and net domestic outflows in Asia (see table 6).6 While other forms of private transfer did not exhibit large movements, net short term transfers went from an inflow of 10 billion in 1996 to an estimated outflow of 92 billion in 1997, a swing of more than 100 billion.

Debt cancellation did not necessarily lead to net flows.

20. At 31 December 1997, the current assets of UNICEF, amounting to 716 million, exceeded current liabilities of 528 million by 188 million, disclosing a liquidity ratio of 1.36 1.

The Board s computation of the liquidity ratio of the greeting card and related operations at 30 April 1997 disclosed that its current assets were 4.3 times the current liabilities, thus showing a favourable position.

In 1995 net financial flows to developing countries had continued to grow, a welcome phenomenon.

if the assets sold are non equity assets, the total assets and the net assets are respectively the book value of the assets and the difference between the related assets and the book value of the liabilities

Indeed, the net transfer of resources to developing countries had averaged less than 1 per cent of the gross domestic product of the developed countries.

Net capital inflows of US 5.8 billion cushioned the trade deficit.

Table 1 Aggregate net resource flows to Africa and developing countries

Despite this concern, the net flow of resources to Africa has been declining.

After several years of substantial net transfers of financial resources to developing countries, capital flows to several countries suddenly changed direction.

The share of OF in aggregate net resource flows declined from a high of about 98 per cent in 1993 to 74 per cent in 1996 (table 2).8

Foreign direct investment (FDI) and portfolio investments amounted to only 9.9 per cent and 2.1 per cent, respectively, of total net resource flows to the region, while FDI profit remittances slightly exceeded FDI inflows.

Net outflows have significantly offset the benefits derived from FDI inflows.

83. The liquidity ratio determines an organization s ability to honour its short term liabilities from short term assets.

Not only have net resources flows to Africa declined, but Africa s share in total flows to developing countries has also fallen, from 15.5 per cent in 1992 to 7.4 per cent in 1996.

Table 1. Aggregate net long term resource flows to low and middle income countries (USD Billions)

In UNHHSF, the ratio of current assets of 17.4 million to current liabilities of 12.0 million was 1.46 to 1.