CCBMUN
Press
Group of Twenty
Made up of 19 countries from the European Union, the G20 commission main objective is to shape the economic agenda in a national and international level to prevent future international financial crises and "broadens the scope of
The Official CCBMUN will be covering two topics, 'Prevention of global trade wars' and 'Combating terrorism financing methods'
international
economic and financial cooperation."
Topics
Model
Topic 1: Prevention of global trade wars
Topic 2: Combating terrorism financing methods'
Presidents
President: Mariana Restrepo
School: CCB
President: Alena Munera
School: CCB
Contact: g20@ccbcali.edu.co
Dear Delegates,
The G20 Summit is an international forum formed by government leaders from 19 countries and the European Union. The forum started in 1999 as a meeting of the Finance Ministers and Central Bank Governors from 19 countries, plus the EU, in which they discussed economic and monetary issues. In 2008, the Summit upgraded and began allowing the presence of the heads of state and the presidents of the European Council and European Union in the main conference, as well as having a smaller summit for the finance ministers. From that moment, the G20 was defined as the “premier forum for international economic cooperation”. Historically, the G20's main focus has been the guidance of the global economy, macroeconomics and trade, yet over the last years they have opened their agenda to a wide range of global issues which have a major impact on the global economy such as development, climate change, and terrorism, among others.
This is an extremely important organization, since its members control more than 80% of the global GDP, and especially in these times, when the world's economy is facing a huge and unprecedented crisis due to COVID-19, the decisions that this organization takes will drastically change the course of the economy for future years. In this commission, you will have the opportunity to represent one of these 20 nations and debate about urgent matters that have a drastic impact on the world's economy. Taking into account that this is an upper school commission, we have very high expectations for the debates that will be taking place. Finally, we look forward to having you in our commission; do not hesitate to contact us if you have any questions regarding the model.
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CCBMUNXVIII
Day 1
By: Antonia Ramirez
The United Nations’ G20 summit refers to an international forum created by government leaders of nineteen countries, accompanied by the European Union. The forum started in 1999 as a meeting where monetary and economic issues were discussed by finance ministers and central bank governors of the nations and the EU. In 2008, when heads of state and the presidents of the European Council and European Union were allowed in the main conference, and smaller forums were created for the finance ministers, G20 was defined as the “premier forum for international economic cooperation”. It is important to state that the summit’s main objective is the guidance of the global economy, focusing on macroeconomics and trade. However, during the last couple of years, the agenda has considered a wide range of global issues that have a critical impact on the global economy, including terrorisim, climate change, and development. It must be noted that G20 is an extremely important organization, taking into consideration its members control more than 80% of the global GDP, and in these times, when the world is facing drastic and unpredicted changes due to COVID-19, the decisions that the organization takes are critical when changing the course of the economy for future years.
Today, the commission of G20 debated the shifting from an oil-based industry to prevent future economic recessions. The debate was centered around the fact that oil is one of the most important commodities in the world. When transformed into petroleum, it is a key energy source as well as a crucial element for manufacturing, and this dependence that has been settled over the years has become a threat, considering the possibility of an economic crisis. Oil prices are established worldwide taking into account it is a commodity, meaning that prices fluctuate depending on offer and demand, reason why the commission seeks to divert the economy from this. Some key points that were mentioned in today’s debate are the consequences of an oil based economy, the possible alternatives for oil, the ways of boosting a shift from an oil based economy, as well as the risks of oil price fluctuations, especially for developing countries, as mentioned before.
As of now, G20 has been divided into two blocks, block 1 formed by the United Mexican States, the Republic of India, the Kingdom of Saudi Arabia, the United States of America, People’s Republic of China, as well as the Federal Republic of Germany. On the other hand, block 2 counts with the Commonwealth of Australia, the French Republic, the Dominion of Canada, as well as the United Kingdom of Great Britain.
Day 3
By: Antonia Ramirez
Today, the third and last day of this year’s CCB MUN, the delegations of the G20 are discussing the debt accumulation among emerging markets and developing economies, a recurrent issue of the global economy for the past fifty years, for both, developed and emerging. Today, the world is facing the fastest, largest, and most broad-base wave of debt accumulation, with the total debt among these economies climbing to about 170% of GDP in 2018 from 115% in 2010. This is why governments need to take action so that risks associated with debt build ups can minimize. The commission began with a lobby time, where all of the delegations came together and formed bloc 2.1. After an hour of extensive work, the nations discussed in an informal debate the ways of preventing such high rates of debt accumulation in developing countries, the role of more economically developed nations and international organisms when contributing to solve this issue, the recent tendency of growth in external debt in developing countries, as well as the long-term repercussions of high rates of debt accumulation among developing and emerging countries.
After doing so, the commission presented pertinent and viable solutions that will effectively end with this difficulty. These include: the creation of a program in cooperation with ECOSOC, ECOFIN and UNDP to provide expert economic assistance for development economies that request it, seeking to aid in the analysis of each individual economy to determine strong action plans to boost productions and exports. To add, encouraging the IMF to further consider a long term support concessional lending facility in order to boost developing economies. Besides, suggesting developing countries to proceed with the assistance given by international organisms such as the IMF or a UN economic program. Likewise, having renegotiation of debts, especially for developing economies, which would help them pay and might help economies that are struggling with paying the interests of the debts. And finally, recommending the World Bank to help public debts to be paid so developing countries have more time to pay, using the model of the central line credit, producing a new debt on a similar amount, but with a longer time to be paid.
CCBMUNXVII
Simulation Day
Global Transfer to Renewable Energies
By: Laura Chaves
In context, G20 “is responsible for 80% of the world’s capacity for global renewable electricity” according to President Alejandro Morales from this commission. The current situation in regards to this commission relates to the two types of energy, Fossil fuels which include oil, natural gas, coal-based energy, and nuclear energy, all of which are considered finite sources. In the other hand, renewable energy includes those which can be naturally replenished, such as Geothermal energy, solar energy, wind energy, and hydro energy.
The debate begins as the Delegation of the United Kingdom claimed the floor, giving the commission context about what are renewable energies and how these type of energy is exceeding in environmental damage control compared to fossil fuels. As a counter-argument, the delegate of USA Remarks that fossil fuels generate more economical income due to the job offer and commercialization of fossil fuels.
During the opening speeches from each delegation, the delegation of india made an impactful remark in regards of this subject; “Nations should separate economic growth from environmental impact”, delegations of UK, China, India and France. In the other hand, delegations of USA, Russia, Japan and support Fossil fuel as a use of energy.
A heated debate begins as the delegate of China follows the thought of the delegate of UK, stating “Renewable energies are the future”, this phrase, making reference both to environmental sustainability and economic growth, which has been proven to not affect negatively the balance in the Chinese financial activities and monetary resources.
G20 can be regarded as a specialized commission. Delegations from all the world come together, but usually don't come to agreements in regards of an accord that every participant of this commission has to agree with. Generally, the G20 commission comes up with solutions to world economic issues and goals that countries could be inclined to, or decide to diverge from this solution completely. In this case, the topic “Implications of the global transfer to clean energies.”
Day 1
G20: Prevention of Global Trade Wars
By: Penelope Ashe
Trade wars are economic conflicts that occur between countries, due to extreme protectionist policies. These protectionist policies involve the increase of tariffs and taxation, thus increasing the price of imported products and making their counterparts (own countries’ products) more affordable and obtainable.
Trade wars can quickly escalate to full conflicts between states, drastically affecting them economically. These trade wars are just nations fighting each other by increasing their tariffs on each other, only to raise them more as their counterparts do too.
These economic wars affect many factors of a country’s development, as it directly impacts the cost of things; ergo, increasing interest rates and creating inflation, while decreasing the GDP. This would all lead to a domino effect that would end in catastrophe, and drastic economic activity drops.
Trade wars are not free, and someone is always bound to pay. The issue is only evident though when the ones paying the price are you, me, and everyone we know. Only then is the impact conspicuous. Until a peaceful, reasonable and economically sustainable solution is found, the attack of nations on each other will only bounce back and shoot them on the foot. The disagreements are evident, as delegations like the Russian Federation, the United States and the Republic of China give strong statements regarding their opposing opinions. The debate went on, with delegates pointing fingers at each other, deeming them guilty and responsible for the current trade wars.
To establish a clearer insight into the delegates’ opinions, I asked a few to give me a statement. They provided me with the following:
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“Donald Trump is in fear of his own country, as he lacks the ability to manage it”- Russian Federation
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“Protectionism is extremely selfish” - Republic of Turkey
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“Many of the problems troubling the world are not caused by economic globalization, but by the United States” - Republic of China
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“The problem begins when China doesn’t recognize that the US is fundamental for their economy.” - United States of America
From tariff levels to taxes and the price of goods, the topics addressed are of absolute importance and convey a huge impact on the economy of specific countries and the entire world. Imposing high tariffs would most likely create a trade war since the affected countries would raise their own tariffs in retaliation. Despite these tariffs being set by countries to protect their own economy, they are also created with the intention of harming other countries’ economies (For example, that of their adversaries). This ongoing issue makes it endlessly difficult for foreign suppliers to sell to domestic consumers, and it sets a fire of economic imbalance that spreads into other nations. A trade war between two countries can slowly but surely affect countries that weren’t initially involved.
This type of issue is complex and doesn’t have only one solution, so here are a few:
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The affected countries agree to end hostilities and establish new rules, withdrawing their tariffs.
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The countries strike a new deal, thoroughly negotiated by both sides.
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The nations decide that negotiation is not an option, as neither wants to accept defeat and look weak, so they remain as they are.
Thus far, a conclusion has not been found by the G20 commission. The different delegations suggest multiple solutions or imply that it’s simply unattainable.
The commission addresses the ongoing issue between China and the United States, as their year-long trade war is affecting both economies, especially with the Trump Tariffs and the increase of exportation fees.