1Topic: Macroeconomic Governance 2Main Submitter: Russian Federation 3Co-submitters: China, India, Indonesia, Iran, Saudi Arabia 4Co-submitters: Afghanistan, Argentina, Brazil, Kenya 5 1THE ECONOMIC AND FINANCIAL COMMITTEE, 2Recalling Resolution 64/191 of 21 December, 2009, on “External debt sustainability and 3development”; 4Noting with deep concern the downward spiral of economic decline in Western nations, 5particularly within the Eurozone, as a result of gross fiscal mismanagement of certain 6governments; 7Stressing the fact that the effects of localized fiscal mismanagement may reverberate far beyond 8a country’s borders; 9Recognizing the difficulty faced by developing nations in terms of developing sustainable 10infrastructure and a long-lasting framework for macroeconomic governance, due to the heavy 11debt burdens that have been placed on these countries; 12Reminding member nations of the benefits of free trade and the removal of tariffs in promoting 13development in developing nations, while providing further opportunities for investment and 14economic growth in developed nations; 15 16 17 18
1. Calls for the establishment of an international economic sustainability advisory body to
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a) decreasing reliance on unsustainable short and medium-term growth including
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b) diversifying government revenue sources by investing in a wider range of assets
promote and advise on the establishment of sovereign wealth funds in fast and highgrowth economies as well as resource-rich nations in order to more efficiently use government income through means including: growth fueled by subsoil asset export revenue, and geography;
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2. Emphasizes the need for self-regulation by member nations in terms of fiscal
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3. Requests member states to exercise increased self-regulation in terms of fiscal
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4. Encourages each member state to adopt an annual debt ceiling in terms of a percentage of
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5. Further invites member states to review their debt ceiling at least once every five years,
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management, as a solution to the economic crisis that is much more prudent, realistic and respectful towards the economic sovereignty of member nations; management by consulting the said international economic sustainability advisory body as and when necessary; the state’s Gross Domestic Product at their own discretion, which shall not be exceeded as far as the fiscal situation shall allow; taking into account the following factors: a) the fiscal and economic situation of the member state at the time of review;
6Topic: Macroeconomic Governance 7Main Submitter: Russian Federation 8Co-submitters: China, India, Indonesia, Iran, Saudi Arabia 9Co-submitters: Afghanistan, Argentina, Brazil, Kenya 10 35
b) the projected expenditure of the member state in the coming years;
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c) the opinion of local citizens and economics experts on this matter;
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6. Urges member states to promote and adopt international free trade initiatives, while
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7. Encourages developing economies with natural resources to adopt policies that attract
moving away from protectionist trade policies that hinder global economic growth; foreign direct investment by offering:
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a) resource extraction service contracts,
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b) operatorship of resource bases,
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c) equity stakes in production sharing agreements of resource bases for
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investment; 8. Decides to remain actively seized in the matter.