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ICONS Sample Messages: Fall 1998 High School SimulationFollowing is a collection of messages on debt and development issues taken from the Fall 1998 High School International System Simulation. In this exchange, the negotiators consider and offer amendments to a treaty drafted by Canada.
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| Message: #789 | From: Canada | Nov 17, 1998 12:21 |
| To: All | ||
| Issues: Debt | ||
| Subject: For your consideration | ||
| Below is a treaty we have drafted. Please read over it and tell us what
you agree with and what you disagree with. We are trying to draft a treaty so all countries know where to start and we know where everybody stands. Please use alacrity and respond with what you agree and disagree. Preamble We, the countries signing this treaty, in order to reduce the plethora of debt countries have accumulated and to put LDC’s onto a path of economic stability, do enact this treaty. Article I The Plan Section 1: Each case of debt must be taken on a case by case, bilateral basis. Section2: Countries must reallocate money from military spending and put it into reducing their debt and rebuilding their economic infrastructure. Section 3: Trade must be opened up to the LDCs to provide the LDC with a source of hard currency. The more developed countries must lower tariffs in order to help the LDC make more profit on the market item to create more income. This requires that the more developed countries be amicable and remember they were once in the same position. Section 4: LDC’s must not rely only on one crop in the world market because if that one crop’s price falls in the world market the country is in serious trouble. The LDC’s must try to vary the crops they put on the world market so if one crop fails they have a secondary crop to fall back on as their source of income. Section 5: LDC’s must encourage domestic business by offering incentives to the citize ens who open up the business. Such incentives could include tax reductions or loan reductions. The government may allow a little foreign business to come in and open up but not too much. A little foreign business can, in the long run, help the domestic business by providing competition and allowing the domestic business to burgeon. However if the government allows too much foreign business to come into the country the domestic business can crumple under the heavy competition of too much bigger more stable foreign business. Section 6: Debt moratorium must be used sparingly because it usually hurts the country more than it helps. However sometimes a little extension on the payback of the loan can be the perfect solution to a country`s problem. Debt forgiveness must be proscribed for it hurts a country more than it helps. Debt forgiveness only makes the country get out of debt for a while until the country slips back into its old ways and slumps right back down into debt and must look toward another option. Article II Enforcement Section 1: The IMF and World Bank shall watch over the countries signing this treaty to ensure that they follow the rules that have been set forth in this treaty. In a signing country fails to follow the rules in this treaty they shall be punished as set forth in Article III of this constitution as the IMF and World Bank see fit. Section 2: The more developed countries shall watch the LDC to ensure they are following the rules. . If they find a LDC that signed this treaty breaking this treaty, the more developed country shall report to the IMF and/or the World Ban and proper action will be taken. Section 3: The LDC shall watch over the more developed countries to ensure they follow the rules set forth in this treaty. If they find a more developed country that has signed this treaty that is not following this treaty they shall report the infraction to the IMF and/or the World Bank and proper action will be taken. Article III Infraction Punishment Section 1: The IMF and/or the World Bank may use any of the following punishments if they find a country has broken the rules outlined in this treaty. Section 2: Interest may be raised on loans taken out by the country in fault. Section 3: The IMF or World Bank may say that a country may take out no more loans until they have followed the rules set forth in this treaty. Section 4: The IMF and/or the World Bank may use any punishment they feel necessary, in order to punish a country for disobeying any or all of this treaty |
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| Message: # 986 | From: United Kingdom | Nov 18, 1998 19:17 |
| To: All | ||
| Issues: Debt | ||
| Subject: Article 1, section 5 | ||
| Good afternoon Delegates; We, The United Kingdom, would like to discuss some modifications that can be made to Article 1, section 5 (exerpt of treaty follows); "LDC’s must encourage domestic business by offering incentives to the critizens who open up the business. Such incentives could include tax reductions or loan reductions. The government may allow a little foreign business to come in and open up but not too much. A little foreign business can, in the long run, help the domestic business by providing competition and allowing the domestic business to burgeon. However if the government allows too much foreign business to come into the country the domestic business can crumple under the heavy competition of too much bigger more stable foreign business." We do agree with your point here and are glad that this point was brought up. However, we need to make some changes in order for the plan to be put into action. Firstly, we need to find a way in which to regulate how much foreign business is allowed in LDC`s . This may need to be done through a third party such as the IMF or through individual application to the LDCs governement. We would like to hear what LDCs participating in this conference think of this proposal. Secondly, LDCs should plan how their participation in a country`s economy will benefit the country. We do not want to ecourage situations where countries can be taken advantage of by foreign countries. Thirdly, our focus in these changes should alw ways be for the benefit of the LDC. Please send any commentaries as they are greatly welcomed and appreciated. The United Kingdom. |
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| Message: # 988 | From: United Kingdom | Nov 18, 1998 19:24 |
| To: All | ||
| Issues: Debt | ||
| Subject: Article 3, section 3. | ||
| In response to message #789: We, The United Kingdom, would also like to raise the issue of Article 3 in the proposed treaty. We believe that the only valid and employable section in article 3 is section 3, as follows: "The IMF or World Bank may say that a country may take out no more loans until they have followed the rules set forth in this treaty" In respects to the other sections in Article 3, it is unfair to enforce more interest in countries that do not follow the treaty. Our goal with this treaty is to improove monetary situations, and this would only hinder countries from improoving their economic status. Furthermore, the IMF should not have the power to inflict any punishment as this could enforce military action. It is our firm belief that the only action that the IMF or World Bank should take is to grant no new loans to countries who do not comply with this treaty. We thank you in advance for your co-operation. The United Kingdom |
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| Message: # 1084 | From: Kenya | Nov 19, 1998 16:16 |
| To: All | ||
| Issues: Debt | ||
| Subject: Canada's proposal | ||
| The Kenyan delegation would like to express its support over Canada`s proposal, and wish to apologize for the late nature of this message. We have a slight question over Article 1, Section 3. According to this, the Kenyan delegation would like to know if it would be possible for the LDC`s to temporarily be able to raise thier own tariffs so that they can protect the LDC`s businesses. The Kenyan deelgation woudl also like to express its support over crop diversification. The major aricle thatwe disagree with is is Article III, the infraction punishment. As an intenraitonal community we believe that we do not have the authority to punish a sovereign nation, as such we feel that article 3 should be stricken. However, we also feel that to receive benefits, the country must adopt the provisions set forth in the proposal, making no punishment necessary. Thank you for your suggesstions and hoping to hear from you on our own plan, Kenya :) |
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| Message: # 1099 | From: Canada | Nov 19, 1998 18:00 |
| To: Canada,Simcon,United Kingdom. | ||
| Issues: Debt | ||
| Subject: Response to Message #988 | ||
| It is our belief that when a country violates the rules set forth in the treaty, they must be punished in order to ensure that they follow the treaty. If there were no punishments set forth that the IMF and/or the World Bank can put to use then the countries has no reason for following the treaty. Punishments are not only for the LDC but can be used on the more developed countries if they do not follow the rules set forth in the treaty. We have omitted the part about the IMF and World Bank using any punishment these see fit. We have made it so that the IMF and World Bank can only use punishments set forth in Article III of the treaty. If you have any other punishments that could be put into the treaty that would punish the countries for not following the treaty. | ||
| Message: # 1100 | From: Canada | Nov 19, 1998 18:15 |
| To: Canada,Kenya,Simcon. | ||
| Issues: Debt | ||
| Subject: Response to Message #1041 | ||
| Thank you Kenya for your proposals on the treaty and we will take these considerations and amend our treaty as we see that it must be amended. We believe that punishments must be put in the treaty for the IMF and/or World Bank to use in case a country does not follow the rules set forth in the treaty. If punishments are not put into the treaty then the country that breaks the treaty can do so without worrying about the IMF and/or the World Bank doing something to them for breaking the treaty. This is basically putting this treaty forth and not giving any way for the IMF and/or the World Bank to make the sure the points in the treaty are kept. We will remind you that these punishments not only can be enacted on the LDC but also the more developed countries if they fail to keep their part of the bargain. This will affect both the LDC and the more developed countries. A LDC can raise their own tariff in order to protect their own business but must not raise it too high. The more developed countries are lowering their tariffs to help you so if you drive up your tariffs it will force the more developed countries to raise their tariffs and will hurt you in the longer run. Thank you for your help and we hope to deal with you in the future. | ||
| Message: # 1172 | From: Mexico | Nov 20, 1998 13:58 |
| To: All | ||
| Issues: Debt | ||
| Subject: Concerning Article #3 of Canada's Proposal | ||
| Respond to Message #988 Concerning Article 3 of Canada’s Proposal. We feel the IMF and World Bank should be allowed to be a part of punishment for signed countries not obeying the guidelines of the treaty. But we feel this punishment is not sufficient enough for the behavior of government to change it’s actions. We propose that IMF and World Bank can control loan granting but thats all they should do in punishing those countries. Because the IMF and World Bank is not a severe punishment to some countries, we need to come up with another way of punishment. Such as, a trade embargo placed on the country not complying to the rules listed in message #789, Canada’s proposal. Thank You and please comment. |
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| Message: # 1207 | From: Kenya | Nov 20, 1998 16:03 |
| To: All | ||
| Issues: Debt | ||
| Subject: UK's modifications for Canadian proposal | ||
Kenya agrees with most, if not all, of the things the UK had to say about Canada`s proposal. We particularly agree with the UK`s statements concerning the Punishment clauses of the proposal. Thank you, UK, for making an excellent proposal better. We should, in our next conference, adopt Canada`s proposal with the UK`s revisions, and consider adding clauses from Kenya`s proposal, particularly the clause concerning voting rights (see Message #1021 or #1041). |
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| Message: # 1573 | From: Canada | Nov 30, 1998 18:10 |
| To: All | ||
| Issues: Debt | ||
| Subject: Revised Treaty | ||
| This is our revised treaty put forth as a collaboration of all of our
efforts to reach a suitable agreement. If there are any questions/and or comments, please
feel free to ask. Preamble We, the countries signing this treaty, in order to reduce the plethora of debt countries have accumulated and to put LDC`s onto a path of economic stability, do enact this treaty. Article I The Plan Section 1: Each case of debt must be taken on a case by case, bilateral basis. Section 2: The board will determine how much money is taken out of military and put into debt restructuring. An equal percentage will be taken from each countries annual military budget to be applied to debt restructuring. Section 3: Trade must be opened up to the LCD`s to provide the LDC with a source of hard currency. The more developed countries must lower tariffs in order to help the LDC make more profit on the market item to create more income. This requires that the more developed countries be amicable and remember they were once in the same position. Section 4: LDC`s must not rely on one crop, commodity, or industry in the world market. They must try to put more than one crop, commodity, or industry in the world market so they have backups in case their primary source of income falls. Section 5: LDC`s must encourage domestic business by offering incentives to the citizens who open up the business. Such incentives could include tax reductions or loan reductions. The governme ent may allow a little foreign business to come in and open up but not too much. A little foreign business can, in the long run, help the domestic business by providing competition and allowing the domestic business to burgeon. However if the government allows too much foreign business to come into the country the domestic business can crumple under the heavy competition of too much bigger more stable foreign business. Section 6: A. Countries must write contracts entailing payment plans with the countries in which they are issuing a debt moratorium. Having the details of the debt moratorium in a written contract makes debt repayment enforceable. Such a contract should include the period over which the debt will be repaid, any interest enforced and its terms, and consequences that will occur if the debt is not repaid. An example of such a policy could include lower interest rates withholding the payments of debt, but not entirely; payment of only the interest. B. As payments are made, debtor nations will begin to pull themselves out of debt. Debt moratorium may take longer than debt forgiveness, but we believe this to be a better long-term solution for both the debtor country, which can re-establish itself and the creditor nation which is not harmed by drastic economic losses from a debt forgiveness. C. Debt forgiveness will not longer be used by any of the countries signing this treaty as it is agreed upon that it is harmful and can easily be replaced by debt moratori ium as explained and defined in this section. Article II The Board Made Section 1: There will be a board consisted on one representative form every country that signed the document. Section 1a: The country will elect a representative to be on the board. Section1b: Each country will then confirm the representative of the other countries Section 2: If there is a conflict within the board there will be an anonymous vote taken place to vote both or just one of the members out of the board. Section 2a: If any member is voted out of the country that he/she is representing that country is to elect another representative and he/she will be voted in by the board and not the country. (Since the board is established, there is not need for the countries to vote on the representative) Section 3: No representative will be punished in any way or form if they are voted out of the board. Section 3a: The representative may appeal the decision to the board, and only the board. Only one appeal can be made, and that will be the final decision. Article III Board Limitation Section 1: No decisions will be decided unless there is a majority rule vote between the board members. Section 2: No board member will have nay more power than any other board member will. Section 3: Any agreement between two countries will have to go through the board. Section 3a: Any agreement between two countries can be turned down can be appealed. That i is the only appeal that can be made. Article IV Infraction Punishment Section 1: The IMF and/or the World Bank may use any of the following punishments if they find a country has broken the rules outlined in this treaty. Section 2: Interest may be raised on loans taken out by the country in fault. Section 3: The IMF or World Bank may say that a country may take out no more loans until they have followed the rules set forth in this treaty |
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