Economic and Financial Council

Study Guide

Content Message from the dias

Introduction to the committee

Present global economy

Topic 1:(Economic Crisis caused by drug trafficking with their possible solutions.)

Causes

Historical background

Solution

Topic 2:(Improvements of HDI Index of LDCs and Least landlocked developed countries)

Causes

Histroicall background

Solution

Closing statement

References

MESSAGE FROM THE DAIS

A warm welcome to all you diplomats, yes those too who are just here to increase their Instagram posts or Snapchat stories. We, proud executive board of the ECOFIN do realize the fun MUN can be without undermining the sensitivity of the issues discussed here. We hope that the three days you’ll spend under our guidance will help carve you from diplomats of the future to simply a mediator of a class fight. MUN and debate aren’t just confined to four walls or three days. The ability to argue is exactly what helps you get what’s yours, especially for the ladies. To the select few who are still with me till here, you were chosen in this committee for a reason. You may have displayed past enthusiasm, economic skills or simply may have caught the attention of one of us dais. However, jokes apart the two topics we’ve presented you with are seemingly easy yet amongst the most controversial and financially crippling topics. Trust me you’ll need in depth research and the study guide is just the tip of the iceberg. We give you our words that your first, second, third TESMUN will be as memorable as our last. We hope to see hated debate, fights, conspiracies that bring all of us closer even once the three days are over. Cheers to an amazing few days and everything thereafter.

Voice of Chair

Dear Delegates, I will have the pleasure of being the Chair for ECOFIN for the duration of this conference. I have chaired and taken part in several conferences of the past years. I am looking forward to a weekend of HARDCORE debating. This may be a beginners’ committee but don’t make the mistake of thinking this will be easy. I look forward to meeting you all soon.

. A small notice on the topics: they might not be the most mainstream topics to discuss in an MUN committee, but they have meticulously been considered and set in order to amplify and mirror TESMUN’s so they have also been designed to leave us with a clear sense of what is going on around us nowadays. May I congratulate you for your acceptance into the conference and indeed our committee, and may I further promise to do my very best from my part to make it your most constructive and joyful MUN experience. I also feel obliged to kindly urge you to use the study guides wisely as a primary introduction to the topics but

not to rely on it as your sole reading. Lastly, I am honestly looking forward to meeting each and every one of you.

Voice of Vice-Chair

I Tashi Dolma, am the vice-chair of ecofin community for the year 2075. I hope to have a valuable experience as a Dias panel with the raging debates. I will provide you the base so that you, the delegates can make a concrete infrastructure of your wide prospective and knowledge. Delegates know that we all are created equal and we all have the equal opportunities. So, delegates put on your best work and succeed with your outmost raging enthusiasm. I will always be there to lend a helping hand when you are struggling.

Vice of Moderator

Dear delegates,

I Simon Raj Bir Shrestha am the moderator of ecofin community for the year 2075. We dais will be guiding you people throughout the whole TES MUN session. The ECOFIN community is all about the economic crisis, financial status of different countries and the corruption rate and drug trafficking done in different countries of the world. The corruption rate of each country is published each year by International transparency agency so every delegate should be updated about the corruption rate. According to the latest publication the most corrupted country in the world is Somalia and the country having the least corruption rate is New Zealand. We hope each and every delegate will actively perform in the TES MUN. Best of luck! For your progress and performance.

INTRODUCTION TO THE COMMITTEE

Created in 1945, the Economic and Financial Affairs Committee serves as the Second Committee in the United Nations General Assembly. Formed after the First World War, economic ministers of the 28 EU members of this committee meet once a month to discuss on problems regarding the powers bestowed upon this committee. The body acts as an equal to all 193 member states of the United Nations. As outlined in Article 13 of the UN Charter, the reason for establishment of ECOFIN was to “promote international cooperation in the economic field”. Chapter 26 of 1945 underlines ECOFINS aim to debate on “macroeconomics policy questions like financing for development, globalization and eradication of poverty” ECOFIN is involved in improving the quality of debate and the reflecting on current and past decisions. The committee has also works in cooperation with IMF and The World Bank with the prime objective being to promote welfare and economic stability, and also is considered accountable to promote economic development but in a sustainable manner as where environmental and artificial resources aren’t being compromised. This committee has been given the responsibility of overlooking numerous roles by the UN as well as the EUROPEAN UNION. The ECOFIN , in coordination with the European Parliament, makes the annual budget of the EU. Other roles include taxation issues of members, financial surveillance, economic policy, financial markets of member states and capital (assets) movements, and economic relations with member countries as well as countries outside the EU. Here, current affairs are of topmost importance but we try to foresee future events as well. ECOFIN.

Present economical condition A bright sky: that is what springs to mind when we consider the current state of the global economy. Data confirm that 2017 marked a year of acceleration in GDP growth, which grew 0.6 percentage points faster than the year before. 2018 promises to be another year of strong growth, with GDP growth pushing up to 3.2%. That would be the highest level since 2011. Trade growth is buoyant and investments are finally recovering. Energy and commodity prices rejoice in an upswing, supporting investments. Activity abounds. Growth, moreover, is broad-based and includes advanced as well as emerging economies. Even Latin America, notably Brazil, is dragging itself out of a long period of economic backlash. And while there is no shortage of political developments, they have thus far found no place in which to cast a shadow.

Not yet, at least. In our November Economic Outlook, we argued there was no time for complacency and that it was the right time for policy action. Now, six months on, we may cautiously conclude that policymakers – especially those in the US – have taken this advice perhaps a bit too literally.

The first policy is the USD 1.5 trillion tax cuts that were enacted in the US Tax Cuts and Jobs Act. That is believed to provide a growth stimulus of 0.5 percentage points over the next two years. It is obviously not this outcome, as such, that worries us. What does, is that such stimulus should not take place when the economy is already producing at full capacity. Unemployment is at a 17-year low. The tax stimulus may only create inflationary pressures that will be difficult to control. That is precisely what we do not need. It may trigger unguided rate hikes or unguided balance sheet reductions by the Fed, creating turmoil in the financial markets. This could lead to reduced household and business spending. The tax cuts, therefore, are a risk, it is an ill-timed economic experiment.

The second, and even less wanted, policy action has been the protectionist bend the US administration has taken since early this year. Emboldened by the political success of the Tax Cuts and Jobs Act the administration has targeted trade policy. In early March, tariffs on steel and aluminium imports were announced and implemented, albeit with wide exemptions. It triggered a muted retaliation from China, followed by the US announcement of a list of imported goods from China with a total value of USD 60 billion that would be subject to tariffs. China immediately responded. While neither the US nor the Chinese measures have been implemented yet, the picture of a trade war between the two largest economies on the planet has started to loom. Such a war may not happen, and – as we argue in this Outlook – it is not our main scenario. But if it does, there will be a large-scale impact on the global economy.

Since our November Outlook the global economy has further improved and we look forward to that continuing. However, at the same time, the chances of it improving for a longer period are deteriorating, especially due to the protectionist bend of the US administration. The sky is bright for now, so enjoy it while it lasts.

Topic no 1: Economic Crisis Caused by drug Trafficking with their possible solution

Drug trafficking is a global illicit trade involving the cultivation, manufacture, distribution and sale of substances which are subject to drug prohibition laws. UNODC is continuously monitoring and researching global illicit drug markets in order to gain a more comprehensive understanding of their dynamics. Drug trafficking is a key part of this research. Further information can be found in the yearly World Drug Report.

At current levels, world heroin consumption (340 tons) and seizures represent an annual flow of 430-450 tons of heroin into the global heroin market. Of that total,

opium from Myanmar and the Lao People's Democratic Republic yields some 50 tons, while the rest, some 380 tons of heroin and morphine, is produced exclusively from Afghan opium. While approximately 5 tons are consumed and seized in Afghanistan, the remaining bulk of 375 tons is trafficked worldwide via routes flowing into and through the countries neighbouring Afghanistan.The Balkan and northern routes are the main heroin trafficking corridors linking Afghanistan to the huge markets of the Russian Federation and Western Europe. The Balkan route traverses the Islamic Republic of Iran (often via Pakistan), Turkey, Greece and Bulgaria across South-East Europe to the Western European market, with an annual market value of some $20 billion. The northern route runs mainly through Tajikistan and Kyrgyzstan (or Uzbekistan or Turkmenistan) to Kazakhstan and the Russian Federation. The size of that market is estimated to total $13 billion per year.

History of drug Trafficking

During the mid-1800s, Chinese immigrants arriving in California introduced Americans to opium smoking. The trading, selling, and distribution of opium spread throughout the region.

Opium dens, which were designated places to buy and sell the drug, began to crop up in cities throughout California and soon spread to New York and other urban areas.

Before long, Americans were experimenting with other opiates like morphine and codeine. Morphine was especially popular for use as a pain reliever during

the Civil War, which caused thousands of Union and Confederate soldiers to

become addicted to the drug.

The Harrison Act of 1914 outlawed the use of opium and cocaine for non-medical purposes, but the illicit drugs continued to circulate.

In 1925, a black market for opium opened up in New York’s Chinatown. At this time, there were about 200,000 heroin addicts in the United States.

The distribution of opiates continued during the Jazz Era of the 1930s and 1940s. Marijuana also became a popular recreational drug in some communities during this era.

Economic Crisis and drug Trafficking

There are three ways in which the influence of the great recession on the future of drug policy, actual or potential, is visible.

The first relates to the impact of the economic crisis on the state. The recession has increased awareness of the need for action in several areas: supervision of offshore banking, tax-havens, and cash-smuggling, which are relevant both to legal and illicit flows; and increased transparency regarding banking secrecy, capital flight, and trade mispricing. All this will require reinstating the value of state intervention and the state's ability to impose stricter market regulations. Overall, an alternative drug-policy approach requires state capacity-and-control mechanisms able to ensure clear regulation. The foundation of the approach is an effective and vigorous state rather than narcotics prohibition under a free (and distorted) market.

The second relates to the effects of the economic crisis on public-policy funding and bureaucracy, which include a more thorough cost-benefit analysis of inequality (and in general greater sensitivity towards the subject). Governments, particularly in the developed north, came to realise that budget adjustment is inevitable and the waste of resources involved in ineffective policies untenable. So there is already a general shift towards re-evaluating existing programmes and plans, including those that involve anti-drug activities. Meanwhile, the damaging consequences of growing inequality cause increasing alarm in the United States and Europe. Some studies highlight the connection between inequality, drug-addiction and drug-related deaths, adding a further layer of concern about the west's enduring economic downturn.

The third relates to the way the economic crisis has led to an adjustment of values. The 1990s and early 2000s was a period of lavish personal spending by the upper segments of the population, uncontrolled greed by financial speculators, unrestrained individualism, a high-risk-prone environment, and self-indulgent hedonism. This atmosphere extended from New York and London to Moscow and Bogotá; in all places the local drug barons, transnational narcos, and the global money-laundering tycoons were equally welcome, their lifestyles transforming both the rich and the poor. After the great recession, the uninhibited show of wealth and voracious acquisitveness by the powerful creates is less acceptable. This

new setting may be important in helping to delegitimise illegal businesses such as drug-trafficking.  

The indirect effect of the great recession on drug-prohibition in the west may be analogous to the relation between the great depression of the 1930s and the prohibition of alcohol in the United States. The depression created a broad framework to discuss and rethink key issues in a fresh way: among them labour productivity, employment needs, social ills, attitudes to the law, capacity at both national and state level to secure revenue via tax and other sources. One by-product of the process was that, four years after the Wall Street crash of 1929, the twenty-first amendment of the US constitution repealing alcohol prohibition was passed in 1933.

Problems causes by drug trafficking

Drug Trafficking It has been said, “The lack of money is the root of all evil”, drug trafficking is no exception. Drug trafficking, the act of selling and distributing substances which are subject to drug prohibition laws, is one of the largest employer in the world. In the recent years, drug trafficking in Vietnam has became more complex. Since Vietnam is located in the “Golden Triangle” region, one of Asia’s two main opium producing areas that overlaps the mountain of Myanmar, Laos and Thailand. It is a very convenient location for drug traffickers to distribute drugs to the third country. Just like Vietnam, the drugs law in Iran is also very tough. Recently, two female Iranian drug mules are sentenced to death for drug trafficking.

Latin America is a vital zone for drug production and trafficking. Colombia, Peru and Bolivia are the world’s main cocaine producers, while Central America, Mexico and the Caribbean have become the principal corridors for transporting drugs into the United States and Europe. Drug trafficking in Mexico began as a response to

U.S.A opium demand. Drug traffickers in Mexico have become so powerful that they are able to control the official institutions whose purpose is to fight them. The office of Mexico's Attorney General releases a statement saying that nearly 13,000 people were killed in drug violence between January and September 2011. This pushes the death toll from December 2006 to September 2011 to a minimum of 47,000 people killed. Vietnam and Iran, according to Mexican law, the trafficking of drugs will be sent to prison for 25 years. As a result, the countries of these regions have suffered various consequences of drug trafficking. There has been a rapidly increasing amount of violence, corruption, and human rights violations.

Some of the problems caused by drug trafficking are –

CostOne of the largest problems that drug trafficking creates is the financial cost on society. For example, in 2002, drug-related costs to society were estimated at $180.9 billion, which is divided between various costs like health care and productivity losses according to the Office of National Drug Control Policy. On top of these numbers are more direct financial costs such as budgeting for the police, DEA, FBI and border patrol agents involved directly in preventing the trafficking of drugs.DeathDrug trafficking can lead to death both directly and indirectly. You only need to look at the cartel violence on the border of the United States and Mexico to see the cost of life related to drug trafficking of both those involved in the trade and innocent civilians. Those in protective services are at a high risk for death as well including police officers, DEA agents and border patrol agents. In fact, between 1991 and 2000, 33 law enforcement officers were killed during drug-related operations, states the Drug Policy Information Clearinghouse.Correctional System EffectsTrafficking of drugs also has an effect on the correctional system in both overcrowding jails and prisons, as well as increasing the annual cost of corrections in the United States to feed and house drug-related inmates. In 2009, the DEA alone made 30,567 drug-related arrests, many of who ended up in federal penitentiaries across the United States. This does not include the more than 1.5 million other drug-related arrests at the state level, ranging from possession to trafficking, reports the Bureau of Justice Statistics.Addiction

The drugs provided by trafficking also result in disability and death through overdose and drug-related diseases. This includes side effects from the respiratory, cardiovascular, neurological, kidney, liver, musculoskeletal and gastrointestinal damage that illicit drugs can inflict on the body. In fact, one in four deaths in the United States can be linked to alcohol, tobacco or illicit drug use, with illicit drugs being largely provided by drug trafficking operations, finds the National Institute on Drug Abuse.

Solution of economic crisis caused by drug traffickingIn practice, convincing every nation to do so in the short term is far from plausible. Mexico may seem to be the logical choice to take the first step toward universal legalization because of its recent drug problems. However, Mexico has a relatively low level of consumption of illicit drugs: 0.8% of the population use cocaine and 3.1% use marijuana,133 both near global averages. With such a minor share of the demand for drugs, legalization in Mexico would barely affect the global market. Additionally, immediate legalization in Mexico could lead to even more violence because of its ongoing trafficking problem. Without strictly enforced regulation, the traffickers in Mexico could potentially use legalization to their

advantage to increase their business in other countries where drugs are still illegal. A better candidate to take the first step toward universal legalization is the United States. In the words of Secretary of State Hilary Clinton, speaking on behalf of the United States, "Our insatiable demand for illegal drugs fuels the drug trade."135 About 3% of U.S. citizens aged fifteen to sixty-four use cocaine (more than six times the global average) and

12.3% use marijuana (more than three times the global average). 36 Those numbers equate to about 30% of all cocaine 131. See Drug Information, U.S. In addition, the United States-which comprises only 5% of the world's population-consumed 60% of the world's drugs in 1996.137 That number could be different now, but it puts this analysis in perspective. Either way, the United States is one of the leading consumers of illicit drugs worldwide. If the United States legalized drugs, it would have a profound effect on the market. Mexican President Felipe Calderon said it best: "If there isn't a generalized, universal legalization policy across the world, and mainly in the main drug consumer, the United States, there won't even be any economic benefits, because the price is determined by the American market."138 The United States is also a good candidate because other nations tend to follow its drug policies. Because the United States is the leader of the war on drugs, its drug policies have dominated the United Nations and other global organizations. 139 With the United States at the helm of legalization, other countries would quickly follow, and universal legalization could become a reality. D. The Setting: Right Now In the drug legalization debate, the best time to act is now. With each passing day, more people lose their lives to the drug war. Still, skeptics do not see this policy as plausible any time soon. Nevertheless, legalization in the United States is not merely a pipe dream. The recent passing of Mexico's new decriminalization law marks a milestone in global drug policy. A pattern of the United States quashing Mexico's plans to alter its drug policy developed in recent years. Most recently, in 2006, Mexico was close to enacting a similar decriminalization law, but Mexican President Vicente Fox vetoed the bill-one he had supported-after he received pressure from George W. Bush's administration. Although it is not legalization, it appears that the United States is finally opening the door to the possibility of altering its drug policies after forty years of failures. Moreover, it would have also allowed the private growing of marijuana in up to twenty-five square foot plots. The initiative was narrowly defeated with 46.5% voting in favor of Proposition 19. Although the ballot initiative did not pass, experts believe that this issue will be on many states' ballots in the near future, a sign that legalization is a realistic option. THE NEXT STEP: GOVERNMENT REGULATION Eradicating the violence associated with drug trafficking is only the first step in successfully containing the global drug problem. After universal legalization-one could argue especially after universal legalization-drug use and abuse problems would still be prevalent. Drug trafficking violence would subside as the new laws affect the global market, but each nation would still face its own domestic drug problem. Without additional governmental action, legalization could lead to a variety of problems. Manufacturers could produce drugs in more dangerous forms. Street gangs could

distribute the drugs legally and then use the profits for other violent activities. Also, consumption in public places and by minors could become prevalent. Heavy government regulation of the new, legal drug industry is the best solution to these problems. Governments could regulate everything from the cultivation to the consumption of the newly legal drugs, much like the United States has with tobacco and alcohol. In the United States, substantial legislation by both the federal and state governments would be needed to fully regulate the industry and make legalization a success.

Topic 2: Improvement of HDI Index of LDCs and LLDCs

STATEMENT OF THE PROBLEM: The Economic and Financial Affairs committee calls for a particular focus on the vulnerable groups of countries, particularly the weakest nations in the international community - Least Developed Countries (LDCs) and Landlocked Developing Countries (LLDCs). Limited manpower and institutional capacity,

disproportionately divided income, cases of several internal and external conflicts, limited access to education, health and other social services, poor infrastructure, lack of access to information and communication technologies all account for the low level of socio-economic development of both LDC’s and LLDCs. High economic vulnerability and significantly higher poverty rates push these nations away from terms like ‘competitiveness’ and ‘economic resilience'(ability to recover from the negative impacts of external economic shocks). There are also a number of countries that are categorized as both landlocked and least developed (or developing), affecting their economic and social position to an even greater degree. Nevertheless, we cannot overlook the fact that LDCs and LLDCs do have their geographic location and abundance in natural resources as a contributing factor to their scope of development. This is why the international community must work in order to stabilize and promote the sustainable development of LDCs and

LLDCs with an aim at promoting their position globally. LDCS: (LEAST DEVELOPED COUNTRIES. However until the mid 1960s, developing countries were all considered the same and were only distinguished by the structure of their merchandise export. After many ineffective measures, finally, the United Nations Resolution 2768 of the General Assembly approved the list of the LDCs in 1971. The United Nations has recognized LDCs as “a category of States that are deemed highly disadvantaged in their development process, for structural, historical and also geographical” Approximately forty-eight states are characterized as least developed with 2/3rds of them being located in Africa; such nations require dedicated support from the international community in order to achieve the IoPA and SDG goals. Though LDCs compose of approximately 12% of the global population they account for less than 2 per cent of world GDP and around 1 percent of world trade 5(UNCTAD). Until today, only four states have managed to graduate from LDC status, a statistic that indicates the severity of the economic and social problems they face.

CHALLENGES FACED:

Dependence on Export Looking at the economic performance of countries worldwide, an interesting trend has been observed that shows economic stagnation in resource-rich Africa while rapid growth in resourcepoor East Asia. This phenomenon can be explained by strong dependence of these developing countries on export of minimally processed natural resources, including hard rock minerals,

petroleum, timber, and agricultural commodities. There are several reasons as to why such dependence on export of minimally processed natural resources hinders economic growth: International commodity markets are inherently unstable and there are poor economic linkages between resource and non-resource sectors. Therefore, resource industries are unlikely to stimulate growth in the rest of the economy, particularly if foreign multinational companies are allowed to repatriate their profits instead of investing them locally. II. Quality of Human Capital (refers to process of increasing skilled manpower)

It is widely agreed upon that the human capital serves as a driver for economic growth and provides motivation for human capital policies in developing countries and is strongly correlated with the level of economic growth in that nation. Human capital is intensively used for increasing productivity and technological growth. Countries like South Korea and Thailand, despite of not having abundant resources, focus on “human capital” for their development. Thus, economic growth is directly proportional to the quality of manpower existing within a country.

Migration has significant effects on the quality of human capital in the developing countries. The term 'brain drain' designates the international transfer of resources in the form of human capital and mainly applies to the migration of highly educated individuals from developing to developed countries. The data suggest that between 1990 and 2000, a 63.7% increase in the number of highly skilled immigrants living in the OECD member countries was recorded, while in the same time period, the population of only unskilled immigrants has grown only by 14.4%.12. Research shows that both positive and negative consequences of brain drain exist and there has always been a debate about how the positive and negative effects of the brain drain balance out. Yes, there are positive impacts of the migration, such as the revenue earned by migrants in other countries act as an important source of external funding in developing countries (official international remittances now total $93 billion per year and are about twice as large as the level of official aid-related inflows to developing countries). Some migrants also bring back with them additional skills acquired abroad. However, there is loss of skills and innovative ideas, and loss of tax revenues for the source country. Regional Conflict African countries are the best examples of countries that have had poor economic growth due to regional conflicts. Despite the availability of resources in

the Western African countries, the state of civil war in many of these countries has made further economic development difficult. This unstable economic growth is responsible for various problems such as scarcity and competition for these scarce resources.

POSSIBLE SOLUTIONS:

Human Capital Development HCD strategies need to be implemented within the developmental context of a country where most of the factors including workforce needs, skills and competencies, level of technology and industrial development. This program should focus on two distinct processes – skill development through formal education and training, and capability formation through specific technology. ii. Foreign Direct Investment Foreign direct investment (FDI) and trade are the important aspects for economic growth in the developing countries. FDI deals with the transfer of technology from developed countries to developing countries, stimulates domestic investment, and assists in providing improvements in ECOFIN2018.

LLDCS(LANDLOCKED DEVELOPING COUNTRIES) Landlocked developing countries (LLDCs) do not have any territorial access to the sea which makes trade and transport difficult for them. All LLDCs have a very low gross domestic product (GDP) and low human development. There are approximately 32 landlocked developing countries classified as LLDCs, out of which 16 are located in Africa, 10 in Asia, 4 in Europe and 2 in Latin America

HISTORICAL BACKGROUND:

The United Nations has long understood the disadvantages faced by landlocked countries. Among the landlocked countries there exists a group of 31 countries that stands out: the Landlocked Developing Countries (LLDCs). These countries combine a “lack of territorial access to the sea, remoteness and isolation from world markets and high transit costs” as stated in UN-OHRLLS documents, these disadvantages “are barriers to the development of those countries. Amongst those 31 LLDCs, a majority of 16 countries are also least developed." As a result, on December 10 1982, the United Nations Convention on the Laws of the Sea (UNCLOS) was established with an aim (among others) to deal with the right of landlocked countries to access sea routes. According to Part X [article 125(1)] of the aforementioned treaty, “…To this end, land-locked States shall enjoy freedom of transit through the territory of transit States by all means of transport” (UNCLOS, 1982). 1.32 CHALLENGES FACED: Because LLDCs are located far from major world markets, the major problems faced by these countries are associated with trade. According to UNCTAD, typically "LLDCs spend twice as much of their export earnings on transport and insurance services as the average developing country and three times more than the average developed country." This is evident when comparing Burundi, an average LLDC to Denmark, a developed country: in 2011, Burundi's average exports took 47 days to arrive at their destination, compared to only 5 days for Denmark's exports. The 2011 report shows that Landlocked Developing Countries contributed to only 1.17 per cent in global trade. 19 LLDCs are said to have a GDP per capita below 1,000 US dollars and the average HDI was nine points i.e. much below than the world's average HDI. Thus, we see how landlockedness can be a major obstacle to development as the high transport costs lead to lower levels of trade, which negatively impacts economic growth and affects progress in achieving sustainable development. Nonetheless, we cannot only take distance alone as a root cause of why landlocked

countries are at a disadvantage compared with equally remote, inland regions of large countries. For instance, some regions of China and India lie further from the coast than many landlocked countries like Azerbaijan and Moldova. While these inland sub-national regions indeed face great distance-based cost disadvantages relative to their maritime counterparts, they do not have to face the challenges that result from a dependency. There are different forms of dependence on other countries’ transit routes for access to overseas markets.

Landlocked countries are completely dependent on their transit neighbors’ infrastructure to transport there to port. Weak infrastructure imposes direct costs on trade; having to pass products through a transit country limits the ability of the landlocked country’s products to compete in global markets and the return to investment. Such challenges are most acute in eastern and western Africa. More specifically, “LLDCs are vulnerable to the impacts of climate change on agricultural production, food security, increased energy constraints, transport infrastructure, viability of inland fisheries as well as water availability, erosion of biodiversity, land degradation, and desertification".

POSSIBLE SOLUTIONS: 1. Suggest for Foreign Direct Investments (FDI) into the LLDCs, which will allow them to have a stable source of income to improve their infrastructure and trade.

2. The development of trade transportation policies to support the growing importance of transport issues, infrastructure will allow for the LLDCs to trade easier.

3. More organized policies for transit negotiations, finance operations and bilateral and multilateral agreements between neighboring countries and private sectors

4. Landlocked countries need to give a major priority to the development of regional infrastructure needed to develop active trade routes and expand market access for those countries

. 5. There is a need for investment by the Landlocked countries, in developing industries less affected by transport costs. Through this they ensure to shift away from countries subject to major price fluctuations and toward those with lower transport costs relative to value of goods.

BLOC POSITIONS BRICS :

The BRICS are also important in South-South Global Development. The surge in Brazil, China, India and South Africa’s economies in the past few years marked the creation with Russia forming the New Development Bank (NDB). The NDB funds infrastructure projects with developing countries and meet the goals of other governments through sustainable development. The BRICS demonstrate a combination of growing wealth, technological advancement, political stability and the possibility of countries becoming middle-income through collaborative and sustainable initiatives. This is surely a topic that delegates may want to explore. OECD nations: OECD is a forum of 34 countries that are willing to contribute to the economic progress and world trade stimulation. These are countries that have shifted away from an agriculture-based economy and into a more industrialized, urban economy also known as "newly industrializing economies". There being no exact qualification to be counted as a NIC, based on economies shifting some agricultural development toward more industrial pursuits, and recent improvements in the average standard of living, certain economies are generally

included. India and China (specifically Hong Kong) are often included, along with Singapore, Taiwan and Turkey. Others may include Brazil, Mexico, South Africa and Thailand. A RESOLUTION MUST ANSWER It is very important to cover the basics and then going into detailed internal discussions. The committee is expected to come to a common ground on the basic issues first, regarding questions. As dais members, there are certain things we expect from you and certain questions that the resolution presented in the committee should answer, for example –

1. Where does the laundered money go and why do entities launder money?

2. What are unique strategies that any nation can benefit from once implemented?

POSITION PAPER REQUIREMENTS

A position paper will be the most formal document that delegates will present to the dais. This is a one page document precisely stating your country’s stance or the position regarding the topic. This document will be formally binding clearly separating you whether you are for or against. The detailed guidelines for a position paper will be posted in the website and all delegates must follow that. The position paper will be important criteria for us (dais members) to judge you on as it will give a certain value to your total point.

CLOSING REMARKSNow that you know what we expect from you, we hope that you will all be well versed about the controversy of these topics. We just want to further support all those of you unnerved about the upcoming MUN experience. At first, it is always scary. However, you never know if you never try and never learn if you don’t fail. As cheesy as this may sound, we are your guardian angels. All of us dais members have made the stupidest of statements, done the most embarrassing dances which did make us question ourselves, but now they’re just memories we laugh about and that shaped us into more experienced, aware MUN participants. We will hold your hand, encourage you to achieve goals, and conquer public speaking just like our dais members did for us. Trust us, MUN helps you not only socially, academically, mentally but helps you know people everywhere and make the best of friends. It will be scary speaking the first time, getting your first question; I cannot lie that it won’t. However, as soon as your first counter argument receives a warm applause,

there is no greater ecstasy. We are as nervous as you are. So, we’ll help each other out, deal? Let’s do this

References

Economic crisis and illicit drugshttps://www.opendemocracy.net/juan-gabriel-tokatlian/economic-crisis-and-illicit-drugs

Drug traffickinghttps://www.unodc.org/unodc/en/drug-trafficking/index.html

Causes Effects of Human Trafficking

https://www.bartleby.com/essay/Causes-Effects-of-Human-Trafficking-F38NZCTAJFRS5

History of drug traffickinghttps://www.history.com/topics/history-of-drug-trafficking

(9TH MARCH, 2017) UN-OHRLLS, UN OFFICE OF THE HIGH REPRESENTATIVE FOR THE LEAST DEVELOPED COUNTRIES, LANDLOCKED DEVELOPING COUNTRIES AND SMALL ISLAND DEVELOPING STATES. RETRIEVED FROM http://unohrlls.org/news/9-march-2017- improved-transport-trade-facilitation-key-achieving-sustainable-development-landlocked-transitcountries-euro-asia/

International Trade Centre. Retrieved from

http://www.intracen.org/itc/about/prioritycountries/landlocked-developing-countries/

Guidelines to money laundering and Terrorist Financing from Money Laundering. (2002). Retrieved from http://files.acams.org/pdfs/English_Study_Guide/Chapter_2.pdf