ECOnomic and financial affairs council

As the world has become more interconnected over the past century, so too has the network of debt and lending. Debt’s capacity as a vital instrument for individuals, companies and nations has enabled the world to globalise. However, there are also innumerable risks inherent in the overaccumulation of debt—risks which are only exacerbated by the unwieldy nature of the modern international debt market. Exorbitant interest payment burdens often result in economic death spirals, which can cripple government programs like infrastructure, education, healthcare, and simultaneously devalue currency. While international public actors such as the IMF, World Bank, and the Paris Club provide debt restructuring assistance to economically floundering countries such as Argentina and Greece, they also, in the case of the IMF, impose stringent austerity conditions on vulnerable nations that hamstring governmental and societal progress. Private creditors, who are substantially less regulated and negotiate cumbersomely sophisticated loans, are not much better—oftentimes highly leveraged and seeking to drive a return rather than ameliorate economic plights. Furthermore, policies of other countries, such as China’s Belt and Road Initiative, while genial on the surface, are mechanisms that effectively result in debt dependency for the receiving country.

What regulations, therefore, should the international community institute to manage debt and debt aid while providing sustainability for in-need countries? How much private versus public debt should be expected for a loan-hungry country? How can governments decide between debt repayment and social spending? What policies can disrupt debt dependency on countries like China without harming development? Although this is a GA, we are expecting innovative ideas and solutions and we will not hesitate to throw a wrench in the works to move debate!

This is a double-delegate committee. Position papers are not required.

Henry Rose

Chair

Henry Rose is a fourth-year undergraduate student majoring in Mathematics, Statistics, Economics, and CAAM. Henry has been in Chicago his entire life, and he’s been doing MUN for some six years, at this point. He has primarily participated as a large GA delegate, and this will be his second year chairing at ChoMUN, after serving as a chair for the African Union: African Infrastructure committee at ChoMUN XXVIII last year.

Outside of MUN, Henry is active on UChicago’s water polo team (Go Maroons!). He is looking forward to seeing delegates come up with creative solutions in the thrilling world of international lending. If you have any questions, please reach out to Henry at henryr@uchicago.edu.

Secretariat oversight:

Jake Rymer, Under-secretary-general