Fourth Session

General Assembly:

Economic and Financial Committee

RebelMUN IV Economic and Financial Committee

2

Welcome Delegates!

Chair Background

Dr. Jesse Fitts was born in Hawaii and grew up in Las Vegas. He is a first-generation college

student, earning his BA in philosophy with minors in mathematics and political science from

UNLV and his MA and PhD in philosophy from the University of Massachusetts Amherst. He is

currently an instructor in the philosophy department at UNLV teaching introductory and

advanced logic courses. Dr. Fitts conducts research in the philosophy of language and linguistics,

and his work has been featured in various journals, including Philosophical Studies. Dr. Fitts is

also a McNair Scholars mentor, for which he was the TRIO Ronald E. McNair Scholars Program

honoree at the 2019 National TRIO/Gear Up Day celebration last month, as well as an Ethics

Bowl coach.

Position papers for this committee will be due to the committee email by April 21st at 11:59

p.m. Late submissions will not be eligible for position paper awards. We are beyond excited to

welcome all of you to RebelMUN IV and can‟t wait to start debating!

Best of luck,

ECOFIN Dais

rebelmunecofin@gmail.com

RebelMUN IV Economic and Financial Committee

3

Topic A: The Regulation and Use of Cryptocurrencies

Historical Background

The excessive risk-taking by banks that ultimately led to the 2008 financial crisis created

a heightened interest in the possibility of having a system of exchange that operated outside of

the banks. Cryptocurrencies were a remedy to this, delegating all regulatory powers of a

monetary interaction to the users and effectively eliminating any third-party, such as a bank or a

credit card company.

Cryptocurrencies, simply, are

a digital medium of exchange

that can be used to make

virtual transactions, and the

global awareness of them has

significantly changed their

value and impacted the global

economy. Some examples of

cryptocurrencies include

Ripple, Litecoin, Tether,

Dogecoin, Ethereum, and Bitcoin, the latter of which is considered the first of its kind, opening

in 2009, and remaining the most well-known. The mysterious, unknown creator(s) of Bitcoin,

pseudonymously known as Satoshi Nakamoto, is/are also credited with creating the first

blockchain, which is essentially a form of database “shared across a network of computers” and

acts as a digital log that records all transactions. This information is shared to networks all

around the world and then acts as a permanent ledger of a transaction, promoting a system of

RebelMUN IV Economic and Financial Committee

4

honesty, consistency, and transparency. Beyond the fact that cryptocurrencies cannot typically be

used in a non-digital platform, cryptocurrencies can be viewed differently than Fiat currencies, or

currencies that are government mandated and regulated but not backed by a physical property, in

that cryptocurrencies, such as Bitcoin, were designed to have a finite amount of Bitcoin

available, and the amount of fiat currencies can expand by being printed or forged. This leads to

inflation of Fiat currencies, while the more users that use cryptocurrencies, the less value the

cryptocurrency has.

Since the rise of cryptocurrencies, many economists have predicted that they are an

economic bubble that will inevitably crash. An economic bubble refers to the idea of when the

price of an asset is rapidly driven up to the point that it largely exceeds that asset‟s actual worth

due to the asset becoming trendy to investors. Once the price becomes too inflated, investors

start to rapidly sell and the bubble irreversibly bursts. In the beginning of 2018, the price of

Bitcoin fell by about 65 percent (Patterson). The other cryptocurrencies soon followed, and this

became known as the 2018 Cryptocurrency Crash. While some have agreed that this was the

bubble bursting, others have argued that this is merely a blip and that cryptocurrencies will

continue to grow.

RebelMUN IV Economic and Financial Committee

5

Past UN Action/International Involvement

The United Nations and the international community as a whole has yet to substantially address

the regulation or use of cryptocurrency. Last year, the United Nations UNDP and the UN

Refugee Agency collaborated with the Blockchain Charity Foundation (BCF) to explore possible

ways in which blockchain technology could help emerging economies in Asia and the Pacific

(Beedham). Many have argued that the use of blockchain could further help the UN in other

pursuits, such as achieving the Sustainable Development Goals (SDGs) and administering

financial aid.

In late-2018, the members of the G20 summit discussed the regulation of Bitcoin and how it

could be possible to counteract the possibilities of money laundering and the use of these

technologies to possibly fund terrorist organizations. That committee set a summer deadline for

nations to propose possible solutions.

Internationally, the regulation of cryptocurrency varies from state to state, with most

governments choosing not to make the use of cryptocurrencies themselves illegal, but a number

of them not accepting their status as legal tender. Interestingly, the circulation of Bitcoin was

mandated illegal in China amongst rumors that the nation was preparing to create their own

cryptocurrency. Their position is not as hostile as other nations, however, and public opinion

changes very greatly across the globe. Many economists argue, moreover, that the regulation of

cryptocurrency on an international scale is a futile effort due to its large anonymity and

technological universality. This is why many countries, such as the USA and Russia, the latter

of which has one of the largest amounts of ICOs (digital crowdfunding for companies) arising,

have fairly vague approaches to the ways in which cryptocurrencies should be addressed.

RebelMUN IV Economic and Financial Committee

6

Current Status/Possible Solutions

Because of the anonymous nature of Bitcoin transactions, there have been many claims that it is

being commonly used for illegal dark web operations. One major example of this was the Silk

Road website which was founded by the user known as “Dread Pirate Roberts,” and was a

platform mainly used for illicit drug sales. All

transactions on this website were made in

Bitcoin. The founder, revealed to be a man

named Ross Ulbricht, had made millions off of

Bitcoin and is now serving a life sentence in

prison. It may be hard to mitigate these risks

without taking down entire market pages that

host mainly innocuous sales, often causing users to lose their money.

This anonymity also has led to criticisms that the use of cryptocurrencies will enable high

amounts of tax evasion. There are other reasons that may be at the root of this, such as the fact

that property losses and gains are more difficult to monitor and those who use cryptocurrency

may not even be aware how tax laws apply to them. And after some made millions off of

investing in Bitcoin early on, many countries are trying to find ways to prevent this.

Criticism has furthermore been drawn of cryptocurrencies on the basis of those profiting off of

them. What was originally believed to be a source of hope for those in emerging or exploited

economies now seems to be primarily used by those in developed markets. Potential benefits,

however, of their use in emerging economies include reducing the cost of remittance fees when

immigrants send money to relatives in their home country, providing larger access to banking

RebelMUN IV Economic and Financial Committee

7

which would improve global financial inclusion, and creating greater transparency that would

combat financial corruption.

There is also alleged concern about the environmental impact of cryptocurrencies, experts

claiming that they “drive up carbon emissions which in turn add to the overall global warming

effect (Gabbatiss).” According to the Bitcoin Energy Consumption Index, Bitcoin uses about 32

terawatts of energy per year, about 60 times more than credit card companies, such as Visa

(Reiff). And as new bitcoins are created through a process known as “mining,” where computers

globally verify the cryptocurrency and add it to the blockchain, their environmental footprint

grows larger.

While many people have heard of cryptocurrencies, many do not understand how they work and

how to use them. Expanding the public‟s awareness of them and access to their use may be

important to the future of cryptocurrencies. This is potentially most true for low-income nations

where the use of cryptocurrency could dramatically change their market, expanding access and

potentially creating a safer, cheaper way of sending international or familial aid to those in other

parts of the globe.

RebelMUN IV Economic and Financial Committee

8

Questions to Consider

1. Should there be regulatory measures placed upon cryptocurrencies? If no, why? If yes,

what should these regulations entail? Should they be international or national?

2. Is there a way that the United Nations would be able to utilize cryptocurrencies or the

technology related to them, such as blockchain?

3. How can the United Nations make those who use cryptocurrencies for illicit purposes

accountable?

4. How can the United Nations help foster a more global understanding of what

cryptocurrencies are and how to use them? Should the United Nations do so?

5. How can cryptocurrencies be used to help those in emerging economies? Is this a

possible goal?

RebelMUN IV Economic and Financial Committee

9

Works Cited

Marr, Bernard. “A Short History of Bitcoin and Crypto Currency Everyone Should Read.”

Forbes. 06 December 2017. Web. 27 December 2017.

Weller, Chris. “Bitcoin is Going Wild – Here‟s What the Cryptocurrency is All About.” Business

Insider. 25 May 2017. Web. 09 November 2017.

Murray, Maryanne. “Blockchain Explained.” Reuters, Thomson Reuters, 15 June 2018,

graphics.reuters.com/TECHNOLOGY-BLOCKCHAIN/010070P11GN/index.html.

Frankenfield, Jake. “Bitcoin vs. Bitcoin Cash: What's the Difference?” Investopedia,

Investopedia, 19 Feb. 2019,

www.investopedia.com/tech/bitcoin-vs- bitcoin-cash-whats-difference/.

Josh Gabbatiss. “Expanding Bitcoin Use Will Push Global Warming above 2C in Two Decades.”

The Independent, Independent Digital News and Media, 30 Oct. 2018,

www.independent.co.uk/environment/bitcoin-climate-change-global-warming-

cryptocurrency-mining-electricity-a8607036.html.

Reiff, Nathan. “What's the Environmental Impact of Cryptocurrency?” Investopedia,

Investopedia, 10 May 2018,

www.investopedia.com/tech/whats-environmental-impact-cryptocurrency/.

Patterson, Michael. “Crypto‟s 80% Plunge Is Now Worse Than the Dot-Com Crash.”

Bloomberg.com, Bloomberg, 12 Sept. 2018,

www.bloomberg.com/news/articles/2018-09-12/crypto-s-crash-just-surpassed-dot-com-

levels-as-losses-reach-80.

Beedham, Matthew. “United Nations Will Use Blockchain to Solve Global Social Problems.”

The Next Web, 24 Sept. 2018,

RebelMUN IV Economic and Financial Committee

10

thenextweb.com/hardfork/2018/09/24/united-nations-blockchain-supprt/.

Marinoff, Nick. “This Year's G20 Put an Emphasis on Cryptocurrency Regulation.” Bitcoin

Magazine, Bitcoin Magazine, 3 Dec. 2018,

bitcoinmagazine.com/articles/years-g20-put-emphasis-cryptocurrency-regulation/.

Shnurenko, George. “10 Bitcoin Millionaires: People Who Became Rich From Cryptocurrency.”

U.Today, 25 Feb. 2019,

u.today/10-bitcoin-millionaires-people-who-became-rich-from-cryptocurrency.

RebelMUN IV Economic and Financial Committee

11

Topic B: The Economic Impact of International Immigration

Historical Background

In the late 1800‟s geographer Ernst Georg Ravenstein said “bad or oppressive laws,

heavy taxation, an unattractive climate, uncongenial social surroundings, and even

compulsion...all have produced and still are producing currents of migration, but none of these

currents can compare in volume

with that which arises from the

desire inherent in most men to

„better‟ themselves in material

respects” (Hill). This was in

response to the massive migration

of European people to the

Americas as a result of cheaper,

more efficient transportation, the

promise of better jobs, and other

technological advances. While much time has passed, the same can still be observed in many

ways on our contemporary economic landscape. Today, we can observe the high rates of

movement in history with about 258 million people, or one in every 30 living outside their

country of birth in 2017. Over half of international migrants move to one of the ten most

developed nations (Hill).

Historically, economists overwhelmingly agree that voluntary international migration has

a positive effect on national economies, improving the production rates and the GDP. Many

believe this is because immigrants that are low-skill workers increase cheap labor costs.

RebelMUN IV Economic and Financial Committee

12

Opponents, however, often claim that low-skill immigrants are bound to remain poor and there

can be a level of drop in wages and this creates a higher level of inequality. Harvard economist

George Borjas wrote about the “Immigration Surplus,” wrote that population growth, even in

extreme cases, by immigration, specifically of high-skilled workers, leads to a higher demand for

good which results in better jobs and wages over time. He also argued, however, that while

immigration helps the overall economy of the countries people immigrate to, it can be at the

expense of low-skilled workers in the country and be at the benefit of medium or high-skilled

workers (Borjas).

International Immigration is shown to have a number of positive effects on the

immigrant‟s country of origin as well. Remittance figures are largely cited as one of the main

examples of this, with remittance figures equaling a large portion of many of the same countries‟

GDP (World Bank). Nevertheless, there are also concerns within these nations of a national

“brain drain” in these countries, referring to the idea that individuals who are highly-skilled or

educated are most likely to leave a country to attain western schooling or to work in other

nations, leaving the country they are originally from with less skilled workers and resources.

Migration statistics have been changing rapidly in the last few years with different types

of immigrants choosing to emigrate to destination countries that at one point were mainly points

at which people were immigrating from, especially in some European and Asian countries. The

goal of this committee must be to analyze recent trends and dictate how the UN can best

facilitate a situation that is most economically mutually beneficial for both the destination

countries and the sending countries.

RebelMUN IV Economic and Financial Committee

13

Past UN Actions/International Involvement

In 1990, The United Nations passed the International Convention on the Protection of the

Rights of All Migrants Workers and Members of Their Families which recognizes migrants rights

and human rights and aims to help increase the equality of national attitudes and laws toward

migrant workers and their families in destination countries. In 2006 and in 2016, there were also

high-level dialogues hosted by the UN on this topic that ultimately concluding with members

mostly agreeing that migration has a very visible positive effect on countries that are affected by

it. The Sustainable Development Goals (SDGs) also aim to improve the rights and the mobility

of immigrants, with certain clauses outline subjects including remittances and the status of

international student migrants.

The most relevant UN resolution to address these issues, however, is probably the New

York Declaration for Refugees and Migrants (A/RES/71/1), which merely recognized the need to

create a comprehensive strategy plan relating to the rights and status of immigrants. This resulted

in member states creating the Global Compact for Safe, Orderly and Regular Migration, which

was signed in late December 0f 2018. The GCM covers diverse issues such as “strengthening

labour rights for migrant workers, improving migration data as a basis for evidence-based

policies, saving lives and establishing international efforts on missing migrants, and many

others” (United Nations). The implementation of the GCM is projected to progress migrant

worker right for both migrants and their families in a holistic, mutually beneficial manner that

has yet to be seen.There has, however, been relatively little progress in creating resolutions that

aim to truly ensure economically-centered migration benefits to all participating countries.

RebelMUN IV Economic and Financial Committee

14

Current Status/Possible Solutions

While many abuses of immigration rights occur on a social and ethical level, economics

plays a large role in this as well. It is the duty of the committee to both articulate how the UN can

help foster sustainability of

immigration for both developed

and emerging economies, but

this committee should also try

and explore ways that the

international community is able

to have the necessary financial

structure to foster inclusion and

eliminate human rights

violations of immigrants.

Across the spectrum of

different countries involved in

immigration, there arises many

different problems. Some

countries that largely depend on

the work of foreign workers are

facing productivity crises as

they make their immigration laws more difficult, such as Malaysia. Issues of sovereignty arise as

nations try to pressure others into changing their laws, but so do structural issues as these nations

try to navigate a way to support their economy without the need of foreign workers.

RebelMUN IV Economic and Financial Committee

15

Countries like Qatar have also been criticized for violating human rights doctrine as they

prepare to host the 2022 World Cup, bringing in many international laborers and putting them

under inhumane conditions. This committee should also consider the possible economic forces

behind immigration inequality and mistreatment.

Now is the time to not only creating holistic resolutions regarding immigration, but to

create specific resolutions that may be able to tackle the problem through an indirect way. It is

ECOFIN‟s duty to look at the apparent and potential benefits and drawbacks that come with

immigration from an economic perspective and try to treat these issues from that same

perspective.

RebelMUN IV Economic and Financial Committee

16

Questions to Consider

1. What is your countries position toward immigration? Are you a sending country or

destination country? What issues or benefits has this posed, and how can these be

addressed or used to form resolutions?

2. Are concerns over a possible “brain drain” justified? How can this committee ease those

concerns?

3. What conditions can prevent a potential migrant from either leaving or entering a

country? In what ways can/should the UN address these conditions?

4. What are the economic reasons behind immigration? How can immigration help/hurt

these issues?

5. How does economic instability contribute to mistreatment of immigrant workers? How

can this committee decrease human rights violations through economic means?

RebelMUN IV Economic and Financial Committee

17

Works Cited

Borjas, George J., et al. “Yes, Immigration Hurts American Workers.” POLITICO Magazine,

www.politico.com/magazine/story/2016/09/trump-clinton-immigration-economy-unempl

Oyment-jobs-214216.

Datuk Pardip Kumar Kukreja, "Time for a Reality Check on Foreigners," The Star, December

24, 2014, Opinion sec., accessed December 25, 2014, http://www.thestar.com.my/

Opinion/Letters/2014/12/24/Time-for-a-realitycheck-on-foreigners/.

Hill, Adriene, director. The Economics of Immigration: Crash Course Econ #33. YouTube, Crash

Course Economics , 18 May 2016, youtu.be/4XQXiCLzyAw.

Hill, Amelia. “Migration: How Many People Are on the Move around the World?” The

Guardian, Guardian News and Media, 10 Sept. 2018, www.theguardian.com/news/

2018/sep/10/migration-how-many-people-are-on-the-move-around-the-world.

John Gibson and David Mckenzie, "Eight Questions about Brain Drain," Journal of Economic

Perspectives 25, no. 3 (2011): pg.123-124, doi:10.1257/jep.25.3.107.

United Nations, General Assembly, “International Convention on the Protection of the Rights of

All Migrant Workers and Members of Their Families”, A/RES/45/158,

http://undocs.org/A/RES/45/158.

World Bank, Migration and Remittance Unit, Development Prospects Group, Migration and

Development Brief, issue brief no. 20, April 19, 2013, Developing countries received

about $401 billion in remittances during 2012, accessed January 26, 2015,

http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-

1110315015165/MigrationandDevelopmentBrief20.pdf