Economic and Financial Committee, 2012

"The Economic and Financial Committee (Second Committee), is chaired by H.E. Mr. Abulkalam Abdul Momen of Bangladesh. During this session, it will deal with issues relating to economic growth and development such as macroeconomic policy questions (including international trade, international financial system, and external debt sustainability), financing for development, sustainable development, human settlements, poverty eradication, globalization and interdependence, operational activities for development, and information and communication technologies for development.

The Second Committee will also consider issues relating to Groups of Countries in special situations - such as the Least Developed Countries (LDCs) and Landlocked Developing Countries (LLDCs). It will also consider the item on permanent sovereignty of the Palestinian people in the Occupied Palestinian Territory, including East Jerusalem, and of the Arab population in the occupied Syrian Golan over their natural resources.

At the sixty-fifth session, the Second Committee took action on 44 draft proposals. The Committee is expected to act on a similar number of proposals during this year’s session.

In accordance with the on-going process of revitalization of the General Assembly, the Second Committee is engaged in updating its working methods and practices in order to improve the quality of debates and the impact of their deliberations and decisions, as well as to further streamline the Committee’s agenda and programme of work, biennialize agenda items, cluster the consideration of agenda items thematically, hold interactive “question time” sessions with secretariat officials after the presentation of substantive reports, and actively work to reduce the number and length of draft resolutions adopted during its sessions.

As in previous sessions, the Committee will also schedule a number of side events as part of its programme of work."

--- From the United Nations, Economic and Financials Committee

Topic 1

Management of External National Debt

The ECOFIN committee of the General Assembly is the main deliberative body concerned with global economic issues in the United Nations. Its key tasks are to examine and legislate on economic growth and development issues, including macroeconomic stability, international trade, poverty, sustainable development, and provisions for Lesser Developed Countries. Unlike many international economic bodies, ECOFIN has little monetary leverage; rather many of its resolutions dictate the policies other more active organizations such as the International Monetary Fund, World Bank, and World Trade Organization. It is for this reason that decisions made at ECOFIN have such wide-ranging effects.

The issue of External National Debt is a crucial issue facing almost every class of economy in today’s world, from the wealthiest to poorest economies. Recent examples such as Greece and Spain provide a unique insight to how this issue has affected fairly developed countries, yet many African and South American countries have undergone financial collapse due to default. Often times rulings on international debt relief and other debt issues have been left to the IMF, dominated by developed states due to its unique voting system, and a comprehensive framework in order to determine the rights of indebted states and the ability of crediting countries to enact macroeconomic change in these countries is sorely needed.

This topic is certainly somewhat complex for the high school level, but will be extremely engaging as it presents a broad range of issues and appeals to virtually every country. Further, the topic is ever-present in our current media environment; from Tea Party candidates decrying the end of the United States to the EU’s consternation with Greece, such a topic will not only capture the interest of NHSMUN’s talented high school students but also allow them to have a unique opportunity to create a heretofore-nonexistent framework.

Topic 2

The Effects of Agricultural Export Subsidies on Least Developed Countries

While not committed to the lowering of trade barriers to the same extent as the WTO, ECOFIN certainly has significant influence on how export subsidies are considered and applied by member states. One particularly thorny problem, currently holding up the Doha Rounds, is the question of agricultural export subsidies. Agriculture forms the basis of virtually every developing economy, and is equally important to highly developed states such as the United States. The presence of these subsidies has significant impact on not only the international economy, but also the very access to food in LDCs.

In what is perhaps the most open global economic forum, delegates must decide whether agricultural export subsidies, enacted to help local farmers, violate the spirit of international cooperation, or if the UN even has the ability to rule on such matters given sovereignty concerns. Further, delegates must consider humanitarian implications of such programs and if these policies significantly hinder the goals of the UN.

This topic is certainly complex, but presents a very teachable topic to NHSMUN high schoolers. While not widely discussed in the media, agricultural export subsidies may be the single most crucial global economic issue to be addressed, and progress on the topic has been excruciatingly slow. Delegates will come to appreciate this topic that not only has international significance, but also is an issue of national relevance.

Resources

Downloads: