Economic and Social

RESOLUTION 1.1

Committee: Economic and Social

Topic Area A: Global financial crisis; the role of IMF (International Monetary Fund) and World Bank.

Sponsored by: Portugal, Austria, Serbia, F.Y.R.O.M., Hungary, Croatia, Australia

Submitted by: Austria

Acknowledging the fact that the world crisis is dominating most of the European countries, it is urgent that particular measures should be taken to combat this global plague and except for that, stabilize the country’s economic state.

Taking into account that each nation is endowed with perspicuity of judgment and characterized by absolute determination so as to firstly seek and characterized by adsolute determination so as to governmental level before moving on to additional support.

Deeply concerned that more and more developed countries cannot confront the international recession,

Taking note that many developed countries are forced to join IMF and follow the advice of the World Bank,

Realizing that further aid is essential for the economy’s restoration the World Bank is able to contribute to European reconstruction but should be better seen as the last question.

Believing that the potential for devastating effects of short-term capital flows should be recognized and acted on, to prevent developing countries from the dangers of falling into debt traps, there must be a plan that:

Establishes surveillance mechanisms and disciplines on countries that are major sources of credit so that the authorities in these countries monitor and regulate the behavior and flows emanating from their capital markets and institutional sources of funds.

Condemns the support provided by the International Monetary Fund as strict measures are improved to the country itself, there is uncertainly whether the debts will be paid off and moreover, allows other individuals to become in such governmental issues.

Pointing out that the privatization of many sectors which are responsible for the exports and imports of a country.

Emphasizes that all countries try to make public the sectors that concern education and health and sectors which are responsible for the exports and imports of a country,

Adopts a policy against privatization,

Emphasizes that all countries stop or reduce national expenditure.

Strongly suggests take some laws that will cut down on expensive.

Instead they could cut public sector pay and welfare entitlements and hike taxes to reduce a huge debt that threatens to wreck the economy.

Encourages stricter taxes in high-developed and rich companies and factories in order to consolidate faster and without many abnormal formations the money needed to pay loans and liabilities and also to save for extremely important facts throughout the crisis.