Background Guide - TJHSST Activities

TechMUN 2015
G20 Summit
G20 Summit
Thomas Jefferson High School Model United Nations Conference
TechMUN 2015
High School Regional Body
Chair: Abhi Chadha
Chair: Shreya Bhatia
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
G20 Summit
Dear Delegates,
Welcome to TechMUN 2015, and to the 10th Summit of the Group of 20, otherwise known as the
G20. We are very excited to see two days of invigorating debate about topics that affect the geopolitical
landscape of the world as it stands. First, allow us to introduce ourselves.
Abhi Chadha
My name is Abhi Chadha, and I’m a junior at
Thomas Jefferson. I’ve been doing Model UN since my
freshmen year, and I’ve grown to love it. Model UN has
taught me much in the way of effective public speaking
and leadership. This year, I’m the General Meetings
Coordinator for TJMUN, which means that I help train a
lot of our novices to make sure they’re ready for a lot the
conferences we go to. Outside of Model UN, my interests
are quite varied. I’m on a FIRST robotics team, on which I do much of the community and business
outreach. My research interests lie in the biomedical sciences, and I hope to end up at a major biomedical
firm in the future.
Shreya Bhatia
My name is Shreya Bhatia, and I am also a
junior at Thomas Jefferson. I have been doing Model
UN since seventh grade but I really came to enjoy it after
starting high school MUN. This year I am a Fundraising
Coordinator for TJMUN and have helped coordinate
several fundraisers for our club as well as charities in the
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
G20 Summit
area. Through my association with Model UN, I have developed a keen sense of diplomacy as well as
strong leadership skills that I can use in my other activities as well. Besides Model UN and school, I
spend a lot of time singing and performing both Indian and American music. Around a year and a half
ago, I started my own TV segment, dedicated to educating the community about different facets of music.
I also spend a lot of time volunteering and tutoring and hope to study medicine in the future, specifically
neurology.
The G20 Committee
As your chairs, we are looking for four critical aspects from delegates. For one, we’re going to
expect effective speaking throughout the conference. Secondly, we want to see leadership in your
coalitions during committee. Third, we want to see diplomatic behavior, as the G20 is a global forum for
diplomacy. Most importantly, however, will be the quality of your solutions to these two pressing issues
in accordance with the perspectives of your respective figures.
Please let us know if you have any further questions about committee; we would be happy to
answer them! Good luck, delegates!
Best Wishes,
Abhi Chadha,
Shreya Bhatia,
Chair, G20 Summit
Chair, G20 Summit
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
G20 Summit
Topic I: Global Trade Agreements
History and Background
Trade is an economic tool used to make many nations better off. By trading, many
countries can get more than what they could produce alone, and also might gain access to
goods that the country might not produce. Global trade is based off of the phenomenon in
Macroeconomics known as comparative advantage. Comparative advantage dictates that
certain countries will be able to produce certain goods with less input than others, and as a
result, these countries should specialize in producing those goods. While global trade serves as
a critical component of economic policy for many nations, it also serves to solidify and
strengthen foreign relations and thus is a key foreign policy tool.
There are multiple types of foreign trade agreements. However, there are two types of
agreements that are especially important. One such agreement is known as an FTA, or a Free
Trade Agreement. This type of agreement allows for a reduced tariff on trade, as well as greater
liberalization of how trade is conducted. Such agreements can be both multilateral and bilateral.
The second type of agreement is known as a Bilateral Investment Treaty, under which one
nation gives certain guarantees to another with regards to the safety of their investment (van de
Heetkamp & Tusveld, 2011).
Past Actions
Global trade is rapidly growing, considering the recent economic downturn. Growth in
trade for 2015 is projected to be at 4% (WTO, 2015). This rise in trade is mainly dependent on
GDP growth and the willingness of the consumer to buy foreign goods. However, the rise in
global trade can be attributed to various past actions taken by the global community.
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
G20 Summit
For one, the establishment of the World Trade Organization has allowed for global
leaders to convene and come up with cohesive solutions rather than a series of fragmented
solutions. This body works to accomplish the Millenium Development Goal to “Develop a Global
Partnership for Development,” so as to ensure that even the world’s poorest nations are better
off (UN, 2015). This body has also served as a mediator to numerous trade agreements.
Additionally, the establishment of Regional Trade Agreements, such as the North American
Free Trade Agreement and the South Asian Free Trade Area has greatly aided the growth of
trade, as these regions permit more unrestricted trade.
Problems to be Addressed
At this convening of the Group of 20, there are critical issues in the current trade system
that must be addressed. For one, the World Trade Organization is repeatedly stalled in its
attempts to reach global trade agreements that will lower the barriers for global trade. This is
due to the conflicting interests of various nations, often leading to a “watered down” agreement.
For example, the Doha Round of negotiations failed after 10 years of constant negotiation for a
multilateral trade agreement (Bhagwati, 2012). Thus, it is apt for this body to discuss how to go
about making the WTO more effective in finding common ground. The second issue lies in the
increased barriers that G20 nations are putting up to global trade. In the span of six years, the
G20 nations have put up over 1,000 different restrictions on trade. This runs contrary to many of
the statements made by G20 leaders, stating their commitment to a global economic recovery.
This body must find a way to decrease the barriers and become more transparent in order to
ensure that the global recovery is better off (WTO, 2014). The final issue to be addressed is that
of fair labor in nations that are often marginalized. This body must find a way to ensure that
unfair labour practices are discouraged and barred from occurring within their own borders.
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
G20 Summit
Topic II: Strengthening the Collective Economic Recovery
Background
Global recovery is slow, with a lack of job deliveries, shortage of demand, and a need to
mitigate supply constraints. In 2015, G20 aimed to lift GDP by two percent by 2018. At the
current progress rate, 2.1 percent will be delivered. For the United States, this would mean two
trillion dollars being added to the global economy in order to create millions of jobs (BBC
Australia, 2014). The goals of G20 are to increase trade and competition, increase employment,
and reduce inequality and poverty through inclusive growth. The Brisbane Action Plan was
created to outline the actions that were proposed to boost economic growth and to also create
jobs (Brisbane Summit, 2014). A lot of time has been put into looking at International Financial
Institutions (IFIs) as well. These institutions provide grants and loans for economic stability in
developing nations (Center for Global Development).
Past Actions and Problems to Be Addressed
Structural reforms are being implemented now to lift private sector activity. Economic
strategies are under way, which will promote balancing of the global economy.
In 2010, the
G20 Summit convened and laid out the Framework for Strong, Sustainable and Balanced
Growth. They also came up with the Mutual Assessment Process. This process is being used to
promote economic recovery and create jobs while also putting public finances on a more
reasonable track. Global demand is projected to be improved by the use of structural reforms.
There is also hope to use IFIs to help global development. Also in 2010, the Seoul Action Plan
was launched. This plan promoted five policy areas to work on developing. The first of these
was monetary and exchange rate. While acknowledging the importance of central banks and
their work towards price stability, they planned to move toward exchange rate systems that were
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
G20 Summit
determined by individual markets. It would be the responsibility of advanced economies to
remain watchful of chaotic movements of the exchange rates. These actions would play a
collective role in monitoring capital flows. The second policy that is being addressed is Trade
and Development. G20 is committed to the establishment of free trade and believe that its
integral to global recovery. Efforts are being focused onto specifically developing and lowincome countries. The third policy area that was mentioned in the Seoul Action Plan was Fiscal
Policies. The plan included the formulation of plans in line with the Toronto commitment, but
specific to national circumstances (Seoul Summit, 2010). The Toronto Commitment was written
in 2010 and strived to support economic growth by taking actions to create jobs and enhancing
infrastructure spending along with narrowing the development gap (G20 Toronto Summit
Commitments, 2011). The fourth policy plan laid out was Financial Reforms. This is the part of
the plan that addresses both national and international solutions. It focuses on avoiding market
fragmentation and aims to implement liquidity standards. Finally, the fifth part of the Seoul Plan
was Structural Reforms. As mentioned before, these were created to boost demand and foster
jobs while reducing regulatory barriers to promote competition. This is imperative for enhancing
productivity in certain sectors. Also, this part of the plan focuses on labor market reforms.
Education and training is pushed for to increase employee quality. Productivity could also be
increased with tax reforms and increase in incentives, as stated in the plan (Seoul Summit,
2010).
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015
TechMUN 2015
G20 Summit
Works Cited
Bhagwati, Jagdish. "Doha Round: Failure of Talks Means World Lost Gains That a Successful
Treaty Would Have Brought." The Economic Times. Economic Times, 1 June 2012. Web.
21 Feb. 2015. <http://articles.economictimes.indiatimes.com/2012-0601/news/31959341_1_ptas-wto-multilateral-trade>.
"Brisbane G20 Leaders' Summit." G20 Leaders’ Communiqué Brisbane Summit, 15-16
November 2014 (n.d.): n. pag. Web.
"International Financial Institutions." Center For Global Development. CGD, n.d. Web.
"Preamble." G20 2010 Toronto Commitments. G20 Research Group, 27 June 2010. Web.
"Reports on G20 Trade and Investment Measures." (2014): n. pag. OECD. Web. 21 Feb. 2015.
<http://www.oecd.org/daf/inv/investment-policy/12th-G20-Report.pdf>.
"The Seoul Summit Document." G20 (n.d.): n. pag. G20. 2010. Web.
Tusveld, R. Type of Trade Agreements. Rules of Origin in Free Trade Agreements. By A. Van
De Heetkamp. N.p.: Springer, 2011. 29-36. Print.
"United Nations Millennium Development Goals." UN News Center. UN, n.d. Web. 21 Feb.
2015. <http://www.un.org/millenniumgoals/global.shtml>.
"World Trade Organization." WTO. World Trade Organization, n.d. Web. 21 Feb. 2015.
<http://www.wto.org/english/news_e/news14_e/news14_e.htm>.
TechMUN at Stuart Thomas Jefferson High School for Science and Technology and JEB Stuart
High School Fairfax, VA | April 10-11, 2015