PPSS MUN CHAPTER – 3

UNITED NATION ECONOMIC AND

FINANCIAL COMMITTE
Index
• Introduction to Committee
• Introduction to Agenda
• History
• Way forward
• Related Laws
• Bibliography
• Research links
Introduction to committee
• The Economic and Financial Committee, or ECOFIN, is the Second
Committee of the United Nations General Assembly. ECOFIN grapples
with questions of economic growth and development, including
global macroeconomic policy, sustainable development, globalization,
and the eradication of poverty.
• It deals with issues relating to economic growth and development
such as macroeconomic policy questions; financing for development;
sustainable development; globalization and interdependence;
eradication of poverty; operational activities for development;
agriculture development, food security and nutrition; and information
and communications technologies for development.
Introduction to committee
• The Second Committee will also consider issues relating to groups of
countries in special situations, as well as the item on permanent
sovereignty of the Palestinian people in the Occupied Palestinian
Territory, including East Jerusalem, and of the Arab population in the
occupied Syrian Golan over their natural resources.
Introduction to committee
• In accordance with the on-going process of revitalization of the
General Assembly, the Second Committee is engaged in updating its
working methods and practices in order to improve the quality of
debates and the impact of their deliberations and decisions, as well as
to further streamline the Committee’s agenda and programme of
work, biennialize agenda items, cluster the consideration of agenda
items thematically, hold interactive “question time” sessions with
secretariat officials after the presentation of substantive reports, and
actively work to reduce the number and length of draft resolutions
adopted during its sessions.
Introduction to agenda
• International cooperation on fighting illicit financial flows Money from
dubious sources is prevalent throughout the global financial system and
often goes to dangerous groups. National and international supply chains
have been established to trade illicit goods, launder money, or finance
forms of terror, which is why it is imperative to interrogate the ways in
which nations can cooperate to disrupt these networks. No sector of the
economy is untouched by illicit finance, from the multinational banks
which process the money all the way down to the small businesses which
launder it. Additionally, tactfully navigating the rights and jurisdiction of
individual nations and their economies will be required as well. Delegates
will have the opportunity to discuss actionable solutions to disrupt global
criminal and money laundering networks, and build new frameworks to
promote transparency, accountability, and fairness.
Introduction to agenda
• Smaller and poorer developing countries are disproportionally
affected by the negative developmental consequences of IFFs;
compounded by already weak governance structures that are
necessary to prevent and counter IFFs, as well as low tax revenues
that can be particularly severe in developing countries dependent on
natural resource extraction. Strengthening intervention to combat
IFFs arguably is one of the most cost-effective strategies to be
pursued by the international community to facilitate the timely
implementation of the 2030 Agenda and support vulnerable
developing countries in this regard.
Introduction to agenda
• In recognition of the threat posed by IFFs, the 2030 Agenda includes
the reduction of IFFs as one of the targets of Sustainable
Development Goal 16 (Peace, Justice and Strong Institutions). The
AAAA similarly states that “measures to combat corruption and curb
illicit financial flows will be integral to our efforts” , calls upon
member States to “redouble efforts to substantially reduce illicit
financial flows by 2030” , and commits to “work to strengthen
regulatory frameworks at all levels to further increase transparency
and accountability of financial institutions and the corporate sector,
as well as public administrations”.
HISTORY
• Ecofin has its roots in the early years of the UN, established in 1948 as part
of the General Assembly’s structure to address economic and financial
issues on a global scale.
• Focus Areas: Initially, Ecofin concentrated on post-World War II recovery,
international trade, and the economic implications of global peace and
security. Over time, its agenda expanded to include sustainable
development, poverty eradication, and the impact of globalization.
• Development Agenda: In the 1970s and 1980s, Ecofin played a key role in
promoting the New International Economic Order (NIEO), advocating for
fairer trade practices and development assistance for poorer nations.
HISTORY
• Sustainable Development: The 1992 Earth Summit in Rio de Janeiro
marked a significant shift, integrating environmental concerns into
economic discussions. Ecofin has since been a platform for discussing
the Sustainable Development Goals (SDGs) established in 2015.
• Recent Focus: In recent years, Ecofin has increasingly addressed
issues such as climate finance, digital economy, and the effects of the
COVID-19 pandemic on global economies.
• Throughout its history, Ecofin has served as a vital forum for member
states to negotiate policies and collaborate on economic and financial
issues, adapting to the evolving global landscape.
HISTORY
• The World Bank has consistently been the world leader in
spearheading reconstruction efforts in post-conflict regions,
especially from an economic standpoint.
• Throughout the various examples in the previous section, the
international community has relied on the World Bank to provide
financing and ideation for bringing economies back from the brink of
disaster.
• By serving as a central hub for the capital and economic collaboration
of 189 countries across the world, the World Bank acts as a
(relatively) unbiased party in reconstructing post-conflict economies.
HISTORY
• The money from the World Bank has oftentimes gone towards
building up physical infrastructure (e.g.,roads, bridges, irrigation, etc.)
and promoting the economic livelihood of all citizens by securing jobs
and stimulating local Bank has oftentimes gone towards building up
physical infrastructure (e.g.,roads, bridges, irrigation, etc.) and
promoting the economic livelihood of all citizens by securing jobs and
stimulating local economies.
• As a quick side-note, a clear distinction between the International
Monetary Fund (IMF) and the World Bank should be noted in the
solutions of each delegate.
Way forward
• The country-specific nature of fiscal adjustment requirements,
determined by debt sustainability analysis (DSA), is mostly preserved.
• This was the core idea of the European Commission. It will make
implementation more likely.
• The use of a net expenditure path (expenditure net of interest
payments and cyclical items) as the main operational target and the
general and national escape clauses proposed by the Commission are
also preserved. This will make the system less procyclical.
Way forward
• While the Commission will run the DSA, the latter must be Council
approved, published and replicable. This will increase collective
ownership over the new methods.
• Some flaws in the Commission proposal have been fixed. The ‘debt
safeguard’ that requires a minimum speed of debt reduction
regardless of what the DSA says has been reformulated.
• The most important change is that the period over which the debt
reduction is assessed only starts after countries have reduced their
deficits below 3%. This gives high-deficit countries a chance to comply
with the safeguard.
Way forward
• The current Recovery and Resilience Programmes (RRP), which expire
in 2026, will not be enough for countries to qualify for an extension of
the adjustment period from four to seven years.
• EU countries will also be required to continue the reform efforts and
nationally financed investment levels over the remainder of the four
to five year period covered by their medium-term fiscal-structural
plan.
• This generates good incentives. The independent European Fiscal
Board is given a meaningful role in monitoring the implementation of
the new rules.
Some international laws
• Basel Accords: International banking regulations (Basel I, II, III) set by
the Basel Committee on Banking Supervision.
• International Financial Reporting Standards (IFRS): Guidelines for
financial reporting adopted by many countries.
• Anti-Money Laundering (AML) and Combating Financing of Terrorism
(CFT):FATF Recommendations: Guidelines to combat money
laundering and terrorist financing.
• Taxation Treaties:Double Taxation Agreements (DTAs): Prevent
taxation of the same income in multiple jurisdictions.
Some international laws
• Monetary and Economic Cooperation:International Monetary Fund
(IMF): Provides financial support and policy advice to member
countries.
• World Bank: Focuses on poverty reduction and development through
financial and technical assistance.
• Consumer Protection Laws:Various international frameworks exist to
protect consumers in cross-border transaction.
• These laws and frameworks aim to create a stable and predictable
environment for international economic activities.
Bibliography
• All the information is taken from the official site of United nation
organization and the site is mentioned below.
▪ https://www.un.org
▪ https://www.munuc.org

• Please refer this site's for your further research also. For your
reasearch purpose please refer to these official sites:-
▪ https://www.imf.org
▪ https://www.unctad.org
▪ https://unus.usmission.gov
THANK YOU!