Introduction to the chairs

Greetings honorable delegates! My name is Daria, and I am currently pursuing a

dual master’s degree in International Development and World Politics in Paris,
France. I discovered MUN as a fresher at my university a few years ago, and have
embarked on a wonderful journey ever since that took me around the world and
brought to me amazing people I now proudly call friends. In my spare time, I love
working on projects that mobilize and empower the youth, taking long walks in nature,
and watching comedy with friends. I firmly believe that Model UN is an inexhaustible
source of enriching experiences, simulating conversations, and that it can be a great
tool to start world change.
Finally, I am more than delighted to work with IGN once again and I am looking
forward to virtually meeting everyone at the conference!

Daria Kisseleva

Director of IMF

1
 Greetings Delegates! My name is Nurul Husna, but please just call me Husna
or NurHus, I am a third-year student from Diponegoro University in Indonesia,
majoring at International Relations. I started my MUN experience in my fresh year of
college, I have been chosen as the Official Delegate from my University for Harvard
World Model United Nations 2020 (HWMUN 2020). Aside from delegating, I also had
few experiences for being the committee in the MUNs. I was the staff of the
academics division in Semarang International MUN 2019, and I was also the staff of
the Event Organizer division in Online Distancing MUN 3.0. After all, I don’t really
have much things to say, I am very glad and honored to actually have an opportunity
to meet all the amazing delegates in this council. I know that probably some of you
are still newcomers, but trust me, MUN is addictive. Thus, if this is your first time
joining MUN, this cannot be your last, instead, this will be the beginning for such a
very long journey that will keep serving you with such numerous amazing
experiences and of course amazing individuals, as well. I wish you the best of luck
delegates, see you in the conference!

Nurul Husna

Co-director of IMF

2
 Introduction to the Committee

The IMF was conceived in July 1944 at the United Nations Bretton Woods
Conference in New Hampshire, United States. The 44 countries in attendance aimed
to create a mechanism for international economic cooperation in order to prevent a
repeat of the competitive currency devaluations that led to the Great Depression in
the 1930s. The IMF's primary goal is to maintain the international monetary system's
stability, which includes the exchange rate and international payment systems that
enable countries and their people to transact with one another. International
monetary cooperation and financial stability are promoted by the International
Monetary Fund. Other than that, IMF also helps to minimize global poverty by
facilitating foreign trade, promoting jobs and long-term economic development. The
190 member countries rule and hold the IMF accountable.1

The IMF uses a formal framework known as surveillance to track member

country policies as well as national, regional, and global economic and financial
developments in order to preserve stability and avoid crises in the international
monetary system. The IMF provides advice to member countries and promotes
policies designed to foster economic stability, reduce vulnerability to economic and
financial crises, and raise living standards.2 Other than that, IMF also provides a
number of regional economic outlooks, as well as periodic assessments of global
prospects in its World Economic Outlook, financial markets in its Global Financial
Stability Report, public finance trends in its Fiscal Monitor, and external positions of
the largest economies in its External Sector Report.3

The IMF's primary duty is to provide loans to member countries that are
experiencing or may be experiencing balance-of-payments problems. Individual
country adjustment programs are developed in close collaboration with the IMF and
financed by the IMF, with continued financial support contingent on successful
implementation of these changes. In April 2009, the IMF improved its lending ability
and authorized a major overhaul of its financial support structures in response to the
global economic crisis, with additional reforms implemented in subsequent years.

1
“The IMF at a Glance.” IMF, March, 2021. https://www.imf.org/en/About/Factsheets/IMF-at-a-Glance.
2
Ibid.
3
Ibid.

3
These reforms improved the IMF's crisis-prevention toolkit, helping it to better adapt
instruments to meet the needs of individual member countries and bolstering its
capacity to reduce contagion during systemic crises.4

The IMF provides technical assistance and training to member countries in

order to help them develop their economic structures and human capacities. This
includes, for example, designing and implementing more effective policies for
taxation and administration, expenditure management, monetary and exchange rate
policies, banking and financial system supervision and regulation, legislative
frameworks, and economic statistics.5

IMF financial resources are primarily derived from member quotas. The quota
of a member represents its size and place in the global economy. The IMF performs
quota checks on a regular basis. The 14th Review, which ended in 2010 and went
into effect in 2016, increased quota capital to SDR 477 billion (approximately
US$687 billion). The 15th Review was concluded in 2020 with no increase in quota. 6

The International Monetary Fund (IMF) is accountable to the governments of

its member countries. The Board of Governors, which consists of one governor and
one alternate governor from each member country, usually top officials from the
central bank or finance ministry, sits at the top of the organization's organizational
structure. At the IMF - World Bank Annual Meetings, the Board of Governors meets
once a year. The International Monetary and Financial Committee, or IMFC, is made
up of 24 governors who advise the IMF's Executive Board on the regulation and
management of the international monetary and financial system. The IMF's day-to-
day operations are overseen by a 24-member Executive Board that serves the entire
membership and is assisted by IMF staff.7

4
“The IMF at a Glance.” IMF, March, 2021. https://www.imf.org/en/About/Factsheets/IMF-at-a-Glance.
5
Ibid.
6
Ibid.
7
Ibid.

4
 Introduction to the Topic

The coronavirus pandemic could cost the global economy between $5.8tn - $8.8tn
according to Asian Development Bank (ADB)8 This depicts how bad the coronavirus
pandemic is to the economy today. Social distancing is a saving grace for public
health but a disaster to global economy. Factories closed down dan many small-
medium businesses lost almost all of their customers. Leading economists are
saying that this could be worse than the previous global depression.
Before the economic shockwave of coronavirus comes, the first thing that happened
was the plunge of global shares.9 We saw how the stock market just crashed. For
example, the Financial Times Stock Exchange (FTSE) 100 saw -24.5% drop of their
stock price.10 Investors fear that the pandemic will destroy the economic growth and
the government may not be able to shield the negative impact of the coronavirus.
Low investment could be detrimental to global economic growth. In response to this,
many central banks, including the United Kingdom slashed their interest rates. This
tactic could logically make borrowing cheaper and encourage spending to boost the
national economy.

The sector that suffers the most is travel. More than 100 countries have travel
restrictions due to coronavirus11.Customers are also cancelling their business trips
and holidays. Nowadays, airlines are parking their airplanes and letting go of some
of their pilots due to this crisis. The graphic below depicts how there are much fewer
flights during coronavirus.

8
Coronavirus “could Cost Global Economy $8.8tn” Says ADB’, BBC News, 15 May 2020,
https://www.bbc.com/news/business-52671992.
9
Lora Jones, Daniele Palumbo, and David Brown, ‘Coronavirus: A Visual Guide to the Economic Impact’,
BBC News, 30 April 2020, https://www.bbc.com/news/business-51706225.
10
Ibid.
11
Ibid

5
 Image 2. Flights Data Graphic
source : Lora Jones, Daniele Palumbo, and David Brown, ‘Coronavirus: A
Visual Guide to the Economic Impact’, BBC News, 30 April 2020,
https://www.bbc.com/news/business-51706225.

Fewer flights and transportation because people are not leaving their homes
has affected the oil market. For the first time in history, crude oil price in the US is
negative.12 Although OPEC and other countries have now agreed to cut production
of oil, they still have more crude oil than the world needs. They have no choice but
to pay people to receive and store this excess crude oil. More than that, this travel
ban has also disrupted international trade and global value chain. Especially many
industries are dependent on china’s production. Supply chains of large companies
such as carmaker Nissan and industrial equipment maker called JCB are suffering13
Anywhere in the world today, both developed and developing nations are
facing great economic distress. It is true that sustaining social distancing is not
sustainable and the virus according to WHO will be here to stay. Countries today
are struggling to find the right approach to save their economy, as the situation is
unprecedented, countries are flying blind.

12
Ibid
13
Ibid

6
 Current Issues

Half of the world has asked the IMF for a bailout according to the chief of IMF
Kristalina Georgieva.14 “This is an emergency like no other. It is not because of bad
governors or mistakes,” the IMF’s chief stated. IMF has stated that it expects the
global economy to contract by 3% this year, adding the statement that the world
could see a 1930’s style recession15

a. Worldwide Recession: can developing nations float?

As anticipated, the global economy is sailing into a colossal storm. IMF stated that
this is the worst economic fallout since the Great Depression. Organisation for
Economic Cooperation and Development said its indicators strongly warns that most
major economies had entered a “sharp slow-down”.16 World Trade Organisation had
stated that nearly all regions of the world would suffer double digit declines in trade
this year. As we have discussed in the previous part that the world is freezing their
social and economic activity in all parts of their countries to contain the outbreak.
This shatters many businesses and sectors. Until today, billions of people worldwide
remain under some type of lockdown. Major industries are in the brink of bankruptcy.
Social distancing is not a sustainable solution but how quickly governments
should unshackle their economies is a matter of debate. Some governments in Asia
and Europe that feel they have contained the virus have begun to slowly reopen
their economies.17 Some European countries are preparing for summer tourism, one
of their main supplies of GDP. Similarly, more than a dozen U.S. states are
loosening restrictions, and President Trump did not renew federal social-distancing
guidelines, which expired on April 30. But new outbreaks have already caused some
countries to reimpose restraints.18

It is estimated that the global economy coronavirus bailout bill reaches $7tn

14
Fred Imbert, ‘Half of the World Has Asked the IMF for a Bailout, Chief Says’, CNBC, 15 April 2020,
https://www.cnbc.com/2020/04/15/half-of-the-world-has-asked-the-imf-for-a-bailout-chief-says.html.
15
bid.
16
Jonathan Masters, ‘Coronavirus: How Are Countries Responding to the Economic Crisis?’, Council on
Foregin Relations, 4 May 2020, https://www.cfr.org/backgrounder/coronavirus-how-are-countries
responding-economic-crisis.
17
Ibid.
18
Ibid.

7
and it is rising. What we see today is that only developed nations can afford to pay
for these bailouts. The US has passed a $2tn stimulus package for direct payments
to individuals, a boost to unemployment benefits and a $500bn lending program. UK
has also unveiled a stimulus package of $397bn, Germany $825bn, France $50bn,
Italy $27.5bn, China $16.4bn, and Japan $274.2bn.

What about developing countries and Least Developed Countries (LDCs)?

Ten African countries have no ventilators at all. No poor country could afford an
economic safety net that is currently sustaining citizens in developed countries.
While rich countries can issue more debts in their currencies, developing nations
require foreign exchange to pay for much-needed imports, from light bulbs to
syringes. The cost of foreign debt repayments and imports have soared as the
relative value of currencies in developing countries have declined by around 25%.19
Meanwhile, government revenues have plummeted due to a collapse in tax, tourism
and migrant remittances as a result of the pandemic. Many cash-strapped
governments are unable to adequately provide for their citizens’ needs in normal
times, let alone meet an unprecedented global emergency like this. The resulting
cuts in other health areas, such as HIV therapies, and malaria- or cholera-
eradication programmes, pose at least as big a risk to communities as Covid-19.20

b. Unemployment and Inequality

The truth is this coronavirus pandemic heightens the existing gaps in our
economy. This is about the haves and have-nots. COVID-19 is an even bigger
disaster for LDCs and developing countries. Poorer people are even more at risk in
catching coronavirus. The World Health Organization has recommended physical
distancing to control the spread of the virus, but in places where families share
single-room homes and lack running water to wash their hands, these measures are
difficult, if not impossible, to adopt.21 Other than that, most low income people are
physical laborers, which means the rate of unemployment is higher for them.
Coronavirus has emphasized the inequality that exists. For some, quarantine
means being stuck at home bored, but for others it could mean hunger. Take

19
Ian Goldin, ‘Coronavirus Is the Biggest Disaster for Developing Nations in Our Lifetime’, Guardian, 21
April 2020, https://www.theguardian.com/commentisfree/2020/apr/21/coronavirus-disaster developing-
nations-global-marshall-plan.
20
Ibid.
21
Ibid.

8
closure of schools for example, it could mean no more school meals. Which in turn
(in some African households) means an end to the only hot meal the family member
would get.22 Food supply chain is also threatened due to travel restrictions in this
pandemic.

A staggering total of 81% of the global workforce of 3.3 billion people have
had their workplace fully or partly closed.23 Restrictions on daily life have led to the
closure of many companies and the laying-off of staff - either permanently or
temporarily. The ILO together with the UN are researching the global impact of this
pandemic. Nearly 200 million people could be unemployed. The outbreak is
expected to terminate 6.7% of working hours across the world during second quarter
of 2020.24 The worst-hit region is predicted to be the Arab states, with an 8.1%
decline in working hours (five million full-time workers). Below is the estimated
decline of working hours in different continents.25 Countries that depend on “cheap
labour” will be affected the most.

Image 3.Working hours Graphic

Source : ‘Coronavirus: Four out of Five People’s Jobs Hit by Pandemic’, BBC
News, 7 April 2020, https://www.bbc.com/news/business-52199888.

This situation will be increasingly much worse. If more people are out of work that

22
Dongyu Qu, ‘Coronavirus Could Worsen Hunger in the Developing World’, World Economic Forum, 10
April 2020, https://www.weforum.org/agenda/2020/04/coronavirus-worsen-hunger-developing world/.
23
‘Coronavirus: Four out of Five People’s Jobs Hit by Pandemic’, BBC News, 7 April 2020,
https://www.bbc.com/news/business-52199888.
24
Ibid.
25
Ibid.

9
means the global demand will plunge. The economy will freeze because businesses
are not making money. Many are losing their customers and most only fulfil 50% or
less of their usual sales. The economy will be on a slow-down. It is every countries’
concern today about jump starting the economy without putting a strain on the public
health.

c. Possible Solutions

Many countries are still grappling and trying to figure out what can be done to solve
the problem. The IMF is more focused on short-term relief for countries who are in
dire crisis. But taking a further step from short – term solutions, how can IMF make
sure that this bailout will be used and allocated wisely by the government?
There are two main ways that the government can use this money. First is
they can spend it to prevent, detect, control, treat, and contain the virus and to
provide basic services to people who are affected.26 Second is the countries can
provide timely, targeted, and temporary cash flow relief to the people and firms that
are most affected, until the emergency subsides. This could be in the form of wage
subsidies or maybe tax relief for companies who can’t afford it.27 Third is countries
can create business continuity plan. Ministry of finance need to provide services to
citizens, taxpayers, and importers in case of widespread contagion, relying as much
as possible on electronic means. For example, in the United States, the Federal
Emergency Management Agency coordinates the continuity of operations and
activities in the federal government.28
Let us take a look at China who is earlier hit by the virus and right now already
on the recovery stage. China main priority is vulnerable households and they always
try to look for new ways to reach smaller firms, for example by waiving social
security fees, utility bills, and channelling credit through fintech firms.29 Chinese

26
Victor Gaspar and Paolo Mauro, ‘How Governments Can Soften the Economic Blow of Coronavirus’,
World Economic Forum, 8 March 2020, https://www.weforum.org/agenda/2020/03/how governments-can-
soften-the-economic-blow-of-coronavirus.
27
Ibid.
28
Ibid
29
IMF, ‘The IMF Explains the Economic Lessons from China’s Fight against Coronavirus’, World
Economic Forum, 21 March 2020, https://www.weforum.org/agenda/2020/03/imf-economic-lessons from-
china-fight-against-coronavirus

10
authorities also quickly arranged subsidized credit to support scaling up of the
production of health equipment and other critical activities involved in the outbreak.
Financial measures are also very important. China quickly works with banks to work
with borrowers affected by the outbreak, incentivizing banks to lend to smaller firm
via special funding from the central bank and providing targeted cuts to reserve
requirements of banks.30 This can be an alternative solution for other countries but
there must be some adjustment to meet the condition of each nation.

Past International Actions

1. Sustainable Solutions from the United Nations

Given the projected rate of infection, the final death toll from COVID-19 may
be enormous. The pandemic's economic and social consequences are likely to be
much greater than those of the most recent global financial crisis in 2008. For the
United Nations, a worst-case scenario can only be avoided by international
cooperation.31

Overarching principles

Keeping all people, households and businesses afloat is the main objective.
Men, families, women, girls, youth, people with disabilities and the elderly, low-wage
employees, small and medium businesses, and the informal sector must all be
prioritized. Important moves in this direction have also been taken. This would have
to be scaled up.

Extraordinary times require extraordinary measures. Economic policy should

address people's most basic needs for health, food, and other necessities, while also
preserving social harmony and political and economic stability. Since the crisis is
rapidly developing, it is critical to carefully track the direct and indirect effects of all
actions to ensure that policy responses are and remain appropriate. There must be a
sense of urgency.

30
Ibid.
31
“Shared Responsibility, Global Solidarity: Responding to the socio-economic impacts of covid-19.”
UN, March, 2020. https://www.un.org/sites/un2.un.org/files/sg_report_socio-
economic_impact_of_covid19.pdf

11
Specific measures are needed at different levels. International organizations,
international financial institutions and leadership groups such as the G20 all have
levers that must be activated to full effect and in a coordinated manner. A regionally
coordinated approach would allow for a joint review of the effects, coordination of
fiscal, monetary, and social interventions, and sharing of best practices and lessons
learned. National activities are perhaps the most important, but they are influenced
by a variety of factors, including geographic location, government form, and level of
growth.

Developed and developing countries do not have the same resources to react
rapidly to a pandemic, and there are major differences among developing
countries, such as Small Island Developing States (SIDS), Least Developed
Countries (LDCs), and Land Locked Countries (LLCs). Local governments are
on the front lines of the epidemic, but their ability to respond quickly is highly
reliant on the governance background as well as the local government and its
budgetary authority's financial health.

A whole-of-society approach is needed. COVID-19 is a threat to all of humanity,

and we must all fight back. A successful response must be multifaceted, organized,
rapid, and definitive. It must be the product of strong political leadership and
widespread public support. It must build public confidence, be centered on human
values, and be backed up by strong institutions, technological expertise, and
financial capital. Everyone has a role to play in the answer. This is something that no
single country can achieve on its own.

Global Measures to Match the Magnitude of the Crisis

1. Advocate and support implementation of a human-centered, innovative

and coordinated stimulus package reaching double-digit percentage
points of the world’s gross domestic product.

The global nature of the current economic shock, with simultaneous supply
and demand collapses, necessitates the first genuinely global fiscal stimulus in

12
 history. A plan like this will pump vast amounts of money into economies and go
a long way toward restoring hope in the future.32

The stimulus should be directed not only to the corporate sector and
leading companies, but also to employees and small businesses around the
world, which are the backbone of the global economy. Protecting big companies
isn't enough; we still need to protect their manufacturers, because global
consumers expect the household income that will resurrect the global economy.
These need to be complemented with coordinated monetary and financial policy
measures. To effective, the stimulus plan must focus on providing direct and
tailored services to the most disadvantaged families, as well as expanding health
emergency preparedness, social security, tax breaks, low interest rates, credit,
insurance, and wage support programs. Countries who are lacking in terms of the
capacity to enforce these interventions must be assisted.33

Countries must pledge to do everything possible to protect

employees, especially those who depend solely on regular wages and
those in the informal sector, and to sustain their jobs and income. Both
concerted fiscal and monetary efforts must aim for this.

The International Organization of Employers, which represents more than

50 million businesses, and the International Trade Union Confederation, which
represents more than 200 million people, both stress the importance of social
dialogue and social partners in combating the virus at work and beyond, and
avoiding mass job losses in the short and medium term.34

2. Resist the temptation to resort to protectionist measures

This is the moment to dismantle trade barriers, maintain open trade, and
re-establish supply chains. Tariffs and non-tariff measures, as well as export
bans, would stymie countries' efforts to contain the virus, especially those placed

32
“Shared Responsibility, Global Solidarity: Responding to the socio-economic impacts of covid-19.”
UN, March, 2020. https://www.un.org/sites/un2.un.org/files/sg_report_socio-
economic_impact_of_covid19.pdf
33
“Shared Responsibility, Global Solidarity: Responding to the socio-economic impacts of covid-19.”
UN, March, 2020. https://www.un.org/sites/un2.un.org/files/sg_report_socio-
economic_impact_of_covid19.pdf
34
Ibid.

13
 on medicinal and related goods. Health products should be exempt from import
taxes or limits. It is critical to ensure that the most vulnerable countries receive
drugs, medical equipment and supplies, and other necessary products and
services required to combat the pandemic. At this point, unity is critical.35

3. Take explicit measures to boost the economies of developing countries

Developing countries need foreign assistance because their ability to

finance expansionary stimulus is already minimal, and currency volatility has
made it even more so in recent days. To build domestic fiscal space, many
countries will need to reduce their debt. This will also necessitate innovative
thinking on how to secure significant amounts of concessional financing, not only
from multilateral development banks but also from private lenders such as
pension funds looking for low-growth investment opportunities.36

Debt reform, including immediate waivers on interest payments for 2020,

debt deferral, debt reduction, debt swaps, and other debt reduction instruments,
is a priority for forty-four percent of least developed and other low-income
developing countries. Debt cancellation could be essential for vulnerable and
conflict-affected countries. Via budget support services, these resources should
be immediately channeled into the human and health response, including scaling
up social security. In this effort, the IMF, the World Bank, and other international
financial institutions will be crucial partners.37

This will also require additional concessional financing. The IMF

Catastrophe Containment and Relief Trust can help the poorest countries with
immediate debt relief, but would need resources to be boosted by the support of
the developed countries.

4. Strengthen international public finance provision

International financial institutions and regional development banks will help

alleviate the effects of the crisis and fund recovery efforts. A post-crisis

35
Ibid.
36
“Shared Responsibility, Global Solidarity: Responding to the socio-economic impacts of covid-19.”
UN, March, 2020. https://www.un.org/sites/un2.un.org/files/sg_report_socio-
economic_impact_of_covid19.pdf
37
Ibid.

14
 coordination mechanism must be established to provide all countries with
sufficient fiscal space.38

Coordination among major central banks and support from international

financial institutions could aid in the facilitation of swap lines and the provision of
liquidity in the financial system, particularly in emerging economies and
developing countries. Simultaneously, the IMF's finances must be expanded by
using Exclusive Drawing Rights to quickly inject resources into countries.39

5. Waive sanctions in this time of solidarity

Sanctions against countries should be lifted to allow access to food, critical

equipment, COVID-19 tests, and medical assistance. This is a time for unity, not
isolation.40

2. UNCTAD’s E-Government Platform

Faced with a global pandemic, countries are relying on UNCTAD's e-

government platform to continue providing vital services and new COVID-19 fiscal
rescue measures to businesses through online single windows when their offices are
closed.41

Different government ministries and agencies can collaborate, share

information, and exchange documents using UNCTAD's online portal, e-
Registrations. UNCTAD workers collaborated remotely with governments during the
crisis to create new online services using the platform. Simple online services can be
set up in two days, with more complex services (involving several government offices)
taking a week to complete.

E-Registrations is an electronic government system that automates basic and

complex administrative processes. It's simple to customize and adapt to any
administrative process. The UNCTAD Division on Investment and Enterprise

38
Ibid.
39
“Shared Responsibility, Global Solidarity: Responding to the socio-economic impacts of covid-19.”
UN, March, 2020. https://www.un.org/sites/un2.un.org/files/sg_report_socio-
economic_impact_of_covid19.pdf
40
Ibid.
41
“How UNCTAD’s e-government platform helps countries stay open for business during covid-19.”
UNCTAD, April, 2020. https://unctad.org/system/files/official-document/diae2020infd1_en.pdf

15
produced it. E-Registrations is well suited to operations involving only one
administration (such as registering a business) as well as operations involving
multiple administrations at the same time (such as registering a company at the tax
office, with the municipal council, with social security, at the labor department and at
the business registry). It can be mounted at the local, state, or supranational levels
and functions as a single electronic window. Processes can be made quicker and
more reliable online, resulting in increased efficiency and delivery quality. Mobile
money, card payments, bank transfers, and electronic certificates are all integrated
into the system. It also incorporates communications tools to enable users to
communicate with government agencies and among agencies through online chat
and voice communications.42

3. ECOSOC’s Segments and Special Briefings

In response to the pandemic, ECOSOC held various dialogues, peer-to-peer

learnings, sharing of lessons learned and coordination of future actions:43

a. The 2020 annual meeting of the high-level political forum (HLPF) (7-16
July 2020), convened under the auspices of the Economic and Social Council,
examined closely the impacts of COVID-19 on the implementation of the 2030
Agenda and the SDGs under the theme, Accelerated action and
transformative pathways: realizing the decade of action and delivery for
sustainable development. It provided an opportunity to mobilize global
cooperation, solidarity and actions for a sustainable recovery from the
pandemic. The discussions stressed the importance of responding to COVID-
19's socioeconomic impacts within the context of the 2030 Agenda, so that
the world maintains its progress on the SDGs, improves, and gets back on
track for the decade of action and implementation to achieve the SDGs. 47
countries conducted voluntary national assessments (VNRs) of their 2030
Agenda implementation. These countries prioritized COVID-19 response and
recovery, especially in terms of strengthening government policies and

42
“How UNCTAD’s e-government platform helps countries stay open for business during covid-19.”
UNCTAD, April, 2020. https://unctad.org/system/files/official-document/diae2020infd1_en.pdf
43
“ECOSOC’s response to covid-19.” ECOSOC, 2020.
https://www.un.org/ecosoc/sites/www.un.org.ecosoc/files/files/en/2020doc/ECOSOC-and-COVID-19-
compilation-of-actions.pdf

16
 institutions, as well as mobilizing multi-stakeholder support and partnerships.
On the margins of the HLPF in 2020, VNR Labs were conducted digitally to
resolve challenges and good practices in reporting and reacting to the
COVID-19 pandemic in ways that promote a sustainable recovery and SDG
achievement, as well as the Decade of Action.

b. The High-Level Segment of ECOSOC held a stimulating high-level

discussion on “Multilateralism after COVID 19: What kind of UN do we
need at the 75th anniversary?” on 17 July 2020, as the Council’s
contribution to the 75th anniversary commemoration of the United Nations.
The COVID-19 pandemic has uncovered and intensified vulnerabilities and
inequalities within and amongst countries, according to participants. The
fragility of the food, trade, health, and climate systems were all listed. The
pandemic threatened to reverse decades of development progress and
obstruct the achievement of the SDGs. This called for a strengthened and
renewed multilateralism that was more resilient and better prepared to
respond to crises and longer-term challenges to sustainable development,
such as climate change and biodiversity loss. For multilateralism to become
more responsive and effective, it must become more inclusive and open to a
broader variety of voices and viewpoints. Trust among countries and trust in
international institutions, which had eroded over time, must be restored. Many
speakers emphasized that, as the multilateral system's core, the UN must be
people-centered, promote human rights, be gender-responsive, represent the
most disadvantaged and far-flung, and embrace a whole-of-society and
whole-of-government strategy to ensure that no one is left behind. Some
speakers stressed the importance of the UN promoting diversity, inclusivity,
and openness, as well as being more flexible and sensitive to changing global
circumstances. Leaving no one behind was critical to the 2030 Agenda for
Sustainable Development's success, and protecting the world's poorest and
most vulnerable people was critical to the global response.44

44
“ECOSOC’s response to covid-19.” ECOSOC, 2020.
https://www.un.org/ecosoc/sites/www.un.org.ecosoc/files/files/en/2020doc/ECOSOC-and-COVID-19-
compilation-of-actions.pdf

17
 Bloc Positions

a. Central & Latin Americas

Most of the countries in Central America and the Caribbean will be

affected by US economic trends and weaker tourism inflows expected, while
South America’s large commodity exporters (Chile, Peru and Argentina) will
face several shocks from reduced global demand. Furthermore, the
upcoming winter raises the risk of prolonged epidemic in the Southern Cone.
In fact, Latin America and the Caribbean region have now become the
new covid-19 global epicenter with negative implications for its
economic outlook. In fact, the latest IMF´s World Economic Outlook
Update from 2020 now estimates the region to shrink by 9.4% in 2021.
In this situation, the IMF director has mentioned several measures as
current priorities for the region, including fiscal policy, monetary policy,
and measures to maintain employment relationships.

18
b. European Countries

One of the sectors most affected by the COVID-19 crisis is the tourism
sector, which, according to estimates by the United Nations World Tourism
Organization, is suffering loses of around EUR 1 billion per month in the EU
alone. This is taking a very serious toll, affecting 13 million workers in the
sector. The economic meltdown of the entire sector could have a domino
effect on other sectors, which would be difficult to manage over the long term.

In addition, according to an OECD study on the economies of more

tourism-dependent countries, there are five European countries at greatest
risk (Greece, Portugal, Austria, Spain and Italy); these countries will, at
various levels, lose a substantial portion of their GDP, which will have
damaging economic and social consequences. Many countries are planning
to introduce a special allowance for workers in tourism and to use vouchers to
provide liquidity for companies in the sector. Nevertheless, there is a need for
coordinated, more wide-ranging European action to protect and revitalise the
entire sector.

c. Middle East and Africa

A downturn in the oil and commodities markets will affect the Middle
East and Africa. China’s slowdown caused oil process to fall, impacting oil-
exporting states. Tourist destinations will also be negatively affected.
Least Developed Countries (LDCs) like most African countries are in dire
need of funds to fulfil their public health needs. Many LDCs don’t have a
ventilator. Health infrastructures are still very minimal. Therefore, it is very
concerning if coronavirus infections sky-rocket in LDCs. Many of their citizens
are likely to die because the lack of healthcare personnel, facilities, and
infrastructure. Therefore, LDCs had filed bailouts to the IMF. They hope to
get assistance soon in terms of lending and debt relief.

19
d. Asia
In Asia, all economies will be affected, including due to high disruption
to industrial supply chains and weaker tourism inflows.
In fact, developing countries like many Southeast Asian countries are
struggling to make ends meet. They do not have the option for a complete
lockdown as they can’t afford to pay people’s daily necessities. Higher
poverty rates are expected in these countries. Blue collar workers are out of
jobs and incapable of fulfilling their primary needs. However, developing
countries won’t get enough bailout from the international community. IMF
bailout is limited and most vulnerable countries will be on top of priority list.
Therefore, a lot of work remains to be done as developing countries are
mostly stuck in the middle trying to survive with incomplete economy
operations.

20
QARMAs

1. With IMF limited resources, how can this institution choose which country IMF
will bail out during this crisis? What indicators will IMF use specifically for
COVID-19 crisis?
2. How can IMF ensure that this bailout will be used strategically to increase
economic development or public health? Which spending is more important?
3. Following QARMA number two, what kind of guidelines that IMF should make
for its bailout recipient?
4. What kind of capacity building can IMF give to governments for this crisis? 5.
With what way the IMF can fulfil the other bailout demands that is not within IMF’s
lending capacity?
6. Seeing that the global debt is at an all-time high, how can IMF give assistance
to countries with overflowing debt burden?

21
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