1QUESTIONOF:Encouraging Growth through Management of Financial Regulation 2MAIN-SUBMITTERBY: Brazil 3CO-SUBMITTERS:Argentina, Kenya, Afghanistan 4CO-SPONSORS:Switzerland, Zimbabwe, Iraq 5 1THEECONOMICAND FINANCIALCOMMITTEE, 2 3Aware of the possible issuesthat can arise from severely indebted countries left without 4appropriate aid, 5 6Alarmed by the large number of countries not eligible for the HIPC(Heavily Indebted Poor 7Countries) initiative set up by the IMF and World Bank despite their level of necessity, 8 9Bearing in mind that HIPCcountries’ debt is on average more than four times their annual 10export earnings, and 120 percent of their GNP, 11 12Concerned with the issue of debt sustainability on a global scale, 13 14Observing that effective debt management and sustainability is crucial for reaching 15development goals in health, education, infrastructure and progress for each nation 16 17Understanding that helping underdeveloped countries to climb out of poverty will contribute to 18regional stability, 19 20Realizing that in a host of global issues, countries cannot focus on only certain corners of the 21world when handling debt crises, 22 23Reaffirming the role of the World Bank in promoting long-term economic development and 24poverty reduction, 25 26Reaffirming that the United Nations as well as other relevant bodies should play an active role, 27due to their mission goal, to assist countries in debt sustainability. 28 29Recalling its resolutions 58/203 of 23 December 2003, 62/186 of 19 December 2007, 63/206 of 19 30December 2008, and 65/144 of 20 December 2010, 31 32 1. Calls for the establishment of a global development funds program by the World Bank 33 in which all countries that are mildly indebted and further less indebted, donate 0.5%of 34 their government revenue to the World Bank development funds program; 35 36 2. Requires that these funds will be used for financing development in the recipient 37 country through methods such as but not limited to: 38 a. rebuilding the nation’s internal infrastructure such as:
6QUESTIONOF:Encouraging Growth through Management of Financial Regulation 7MAIN-SUBMITTERBY: Brazil 8CO-SUBMITTERS:Argentina, Kenya, Afghanistan 9CO-SPONSORS:Switzerland, Zimbabwe, Iraq 10 39 i. Major transportation roads, 40 ii. Businessor financial centres, 41 a. investment in technologies that would only aid the following areasdepending 42 on the speciality of the country: 43 i. agriculture, 44 ii. industrial processing, 45 b. building or improving public primary and secondary schools; 46 47 2. Demands that recipient countries of such donations refrain from using the funds for 48 refunding debt; 49 50 3. Calls upon the World Bank to rescind funding in such cases; 51 52 4. Calls for the World Bank to: 53 a. keep records of the allocation of such funds and to send representatives to 54 ensure the critical use of the funds for the intended purposesin such countries, 55 b. ensure transparency in the accounting, allocation and use of the funds 56 c. seek the cooperation of local governments, 57 d. publish a report on any developments every 6 months; 58 59 5. Authorizes the World Bank to decide on the distribution of development funds to 60 relevant recipient countries in need and for the World Bank to assessthe eligibility of 61 such countries for development funds based on but not limited to: 62 a. classification of that country in terms debt sustainability 63 b. the ratio NPV of debt to GNP 64 c. the ratio of NPV of debt to exports 65 66 6. Calls upon the World Bank to revise the use of growth projections for countries when 67 evaluating debt by assuming the lower bounds rather than the currently used upper 68 bounds; 69 70 7. Designates that the World Bank would withhold such funds from countries that violate 71 these terms; 72 73 8. Recommends the United Nations to make efforts to further enhance the voice and 74 representation of developing countries in multilateral institutions such as the World 75 Trade Organization, 76
11QUESTIONOF:Encouraging Growth through Management of Financial Regulation 12MAIN-SUBMITTERBY: Brazil 13CO-SUBMITTERS:Argentina, Kenya, Afghanistan 14CO-SPONSORS:Switzerland, Zimbabwe, Iraq 15 77 9. Encouragesthe WTOto review the membership of non-members, observers and 78 countries currently negotiating their membership; 79 80 10. Decides to remain actively seized in the matter.