A/RES/49/104 Page 2 important field for investment and a significant contributor to the reactivation of growth and development, Noting the recent increase of some commodity prices, recognizing that this may not constitute a long-term trend and recognizing also the need for a better functioning of commodity markets and the necessity of stable and more predictable commodity prices, including avoiding excessive price fluctuations and searching for long-term solutions to commodity problems, Concerned about the difficulties experienced by the developing countries in financing and implementing viable diversification programmes, Mindful of the need for developing countries, especially African countries and least developed countries, to diversify their economies and in particular the commodity sector, with a view to modernizing their production, distribution and marketing systems, enhancing productivity and stabilizing and increasing their export earnings in the context of the general decline of primary commodity prices, 1. Takes note with interest of the report of the Secretary-General of the United Nations Conference on Trade and Development on the commodity situation, developmental linkages between the commodity sector and other sectors and actions required to develop such linkages in the context of diversification; 3/ 2. Emphasizes the need for developing countries that are heavily dependent on primary commodities to continue to promote a domestic policy and an institutional environment that encourage diversification and enhance competitiveness; 3. Expresses the urgent need for supportive international policies to improve the functioning of commodity markets through efficient and transparent price formation mechanisms, including commodity exchanges, and through the use of commodity price risk management instruments; 4. Notes the need expressed by developing countries, in particular the commodity-dependent developing countries, for stable and more predictable commodity prices; 5. Stresses the importance of commodity diversification as a means to increase export revenues of developing countries and to improve their competitiveness in the face of the persistent instability in the prices of some primary commodities and the general deterioration in the terms of trade; 6. Urges developed countries to continue to support the commodity diversification efforts of developing countries, especially African countries, inter alia, by providing technical and financial assistance for the preparatory phase of their commodity diversification programmes; 7. Reiterates the importance of maximizing the contribution of the commodity sector to economic growth and sustainable development in commoditydependent developing countries, and in this respect stresses, inter alia, that: 3/ A/49/226. /...