At Vote: WA Development Foundation[Archived] [Complete]

mcmasterdonia

mcmasterdonia

Just like a queef in the wind, so is life
-
-
-
TNP Nation
McMasterdonia
A new resolution is at vote.

Please vote Aye, Nay or Abstain.

Please disclose where else you have voted.

WA Development Foundation
A resolution to reduce barriers to free trade and commerce.


Category: Free Trade

Strength: Mild

Proposed by: Auralia

Description: Recognizing that developing member nations often encounter significant difficulties in making capital investments and attracting foreign investment,

The General Assembly adopts the following resolution:

Article I: Mandate

The World Assembly Development Foundation is established, mandated with promoting socioeconomic development in developing member nations through foreign investment and international trade.

Article II: Development Strategies

The Foundation shall conduct extensive research relating to socioeconomic development in all developing member nations. All of the Foundation's research shall be released to the general public.

Based on its research, the Foundation shall create a comprehensive development strategy for all developing member nations, including as necessary:

capital investment projects designed to improve the infrastructure required to support future economic development and provide basic public services;

governmental reforms designed to promote good governance and remove barriers to foreign investment and international trade, including but not limited to austerity measures, balanced budgets, trade liberalization, privatization and deregulation, sustainable development programs, democratic reforms, improved respect for fundamental human rights, and increased spending on basic public services as appropriate; and

reasonable timelines for the completion of the aforementioned projects and reforms.

Development strategies shall be drafted with the full participation of all the major stakeholders in the subject nation.
Article III: Sovereign Loans Program

The Foundation is authorized to offer sovereign loans at its discretion to any developing member nation. Nations must have made a good-faith effort towards implementing the governmental reforms recommended by their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.

Member nations shall use these loans exclusively to implement the recommendations from their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.

Loans extended by the Foundation shall be entirely financed by willing member nations. The Foundation shall not be held liable in the event that a member nation defaults on a loan. A nation's share of all loan payments and influence on the Foundation's loan policy shall be proportional to the size of its contributions to the Foundation.

In general, member nations are encouraged to provide debt relief to other member nations during times of national emergency and economic crisis.

Article IV: Foreign Investment Insurance Program

The Foundation is authorized to insure any foreign investment in developing member nations at its discretion when available insurance is inadequate. The grounds for a claim are limited to currency inconvertibility, expropriation, war, terrorism and civil disturbance, breaches of contract, and governmental failure to honour financial obligations.

The Foundation shall charge premiums to investors sufficiently high to cover the risk of their investment and the expenses incurred in determining that risk.

The Foundation shall take any reasonable course of action to avoid bankruptcy, and must maintain a minimum liquidity ratio of 10% at all times.
Click to expand...
 
Holy jeezus this is long.

So lets look at what it does.

First of all, it appears entirely to create a committee, which would make it, as Asta stated earlier: illegal. However, resolutions at vote cannot be pulled by the moderators, so it is legal by virtue of coming to vote.

This committee's mandate is to "promote socioeconomic development in developing member nations through foreign investment and international trade." Therefore, when reading what the committee does, you should always ask yourself: Does this work towards this goal? This assumes you think the goal is worthwhile, if you don't, you ought to vote nay. If you do, you want a committee that works towards this goal.

The author seems to have divided the committee into three groupings.

The first grouping relates to Development strategies, where the committee is supposed to research socioeconomic development, and use that research to come up with strategies to help nations further their infrastructure and remove oppositions to foreign investment. This only would apply to developing nations, and in theory for them would be optional.

The committee is then supposed to be able to offer loans to nations exclusively to implement these policies. The foundation's funds for loans are supposed to come from member nations, with member nations getting a say on loan policy based on contributions. This might seem sensible to some, but to others could give developed nations an opportunity to exercise considerable power on a developing nation, shaping the way it develops. TNP nations shall have to decide if they see this as a flaw, and if so, whether its worth voting against due to it.

Finally, the committee can insure investments when it wants. To the MoWA, this section looks short and tacked on, as if its an afterthought. Regardless, it could possibly have some merits, but appears to be a weaker section than the others.

The MoWA is for this resolution not going to encourage nations to vote one way or another.
 
At first glance, I'd be worried about adverse conditionalities. For example, what if the WA Development Foundation is recommending the privatization of an area -- this is not only a hypothetical example, The IMF and the WB have horrible records of dismantling entire public water or education facilities because of poor recommendations (often based on faulty right-wing economics).
 
Voting on this resolution has ended.

Thanks to those nations who cast their votes. Your participation is a great help to the region.

This topic has been locked and sent to the Archives for safekeeping. If you would like this topic to be re-opened for further discussion, please contact the WA Delegate, a Global Moderator, or an Administrator for assistance. Thank you.
 
You must log in or register to reply here.
Back
Top