The IMF: A brief glimpse of Day 2’s beginnings

Reporting by: The Indo-Asian News Agency 

A new day…a new experience. With the second committee session in order, the Indo-Asian News Agency has new snippets of stories and chats to share. Although the start of the committee was a bit disruptive as there were a few delegates who couldn’t reach early, the rest of the session went by with loads and loads of speeches and opinions involved. Be it enthusiasm, boredom or desperation to speak, we had the committee emotions scale ranging to all levels. Today we even had a lot of new speakers added to the list. The delegate of South Sudan, Chad and Pakistan, who by the way was way more confident that his country has curbed terrorist funding, were a few names on that list.
For most of the session today, the discussion was based on how to solve problems with
demonetisation and teaming up for making the working paper. It so happened that, the moment the unmoderated caucus was passed, the delegates of the United States of America, United Arab Emirates, and Senegal rushed around to gather delegates. The familiar calling for ‘delegates” was ringing throughout the motion. It’s safe to say that people have been researching well and these have read them to have more productive arguments.

With an interaction with the Director of the International Monetary Fund, Mr Manav Khandelwal, it is brought to our notice that delegates focused more on cashless economies and tax evasions, which he really appreciates. Although he does expect the delegates to make historical mistakes of other countries with regard to demonetisation a focus point of debate so that those can be looked upon, corrected and also learning from them. “The solutions some of the delegates provided were designing a digital infrastructure and print better currencies. These solutions are pretty good and
further working on it will provide us with more and more solutions.” The director further explained to the IANS that there were majorly three blocks, one- the pro demonetising but with the restricted use lead mainly by the United Arab Emirates. Second, the anti demonetising having United States of America and Senegal as their collective voice and the third one- the anti demonetising ones who had Italy, Israel and Japan commandeering their ship.

When asked the delegate of Canada about what Canada’s view is on the connection of
cryptocurrencies with the demonetising, his reply was, “Demonetisation in India saw a boom in the demand for cryptocurrencies. Many young college students made a fortune because of their investments in Bitcoins. However, the bad planning led to its failure and could have been executed in a much better way.”

The United Arab Emirates’s opinion on this is quite similar to what the delegate of the United States of America has, as reported earlier, and that is that “I see no point in why developed countries would choose to demonetise as their countries do not require that.” As on his view on the committee’s ongoing discussions, he says that it has been going well.

Overall, it is quite understandable that these delegates entered the hall with a determination to have a fruitful debate and provide solutions to the fullest. Session 2 and there is just so much more.

Advertisements

Demonitization: its plentiful perspectives

“To maintain sustainable economic development, we need to shift our focus from speed to quality.” Li Yuanchao, Vice President of China.

Ever since the General Agreement on Tariffs and Trade (GATT) was created in 1947,
and economies of the world opened their gates for trade liberalisation, global
currencies have faced a major tsunami of fluctuating inflation rates that have crashed
with huge economies and submerged them under their waves. What makes it
interesting is that although countries have taken a countless number of preventative
measures, none of them seem to stabilise a vast majority’s economic growth.

One of these solutions is one with the most controversial background, the latest being the one of the Indian Prime Minister, Mr Narendra Modi, shaking grounds and uprooting the trees in all homes and businesses by his sudden announcement of the 500 and 1000 rupee notes being made void.

What happened next isn’t that much of a secret. That one sudden announcement
probably caused more uproar than a Salman Khan movie launch! At the very
beginning there was a mass disagreement faced by the government as the policy had
people go through absolutely tiring and long queues going from the bank branch, all
the way to the bank on the other part of the village, and later to find that the banks
were out of cash.

Considering the fact that this initiative was put into action to lash out at all the black
money launderers and corrupt officials, it shouldn’t be ignored that this specific problem had been very effectively tackled and more than Rs. 2,600 crores of black money was busted, even though that left quite a lot of unsolved string of obstacles waiting to be put light upon.

According to Business Today, demonetisation initially caused the price levels around
India to fall because of the pure case of demand and supply. The demand for the number
of goods to be sold, remained tentatively the same whereas the cash available for people
to be able to buy them decreased dramatically. The businesses were therefore forced
to cut down on price levels so that they could sell to large markets in this ‘cash-constricted’ economy. On the other hand, the Wire’s report on the European Union’s (EU) decision and management of moving from having individual national currencies to common

European currency, the Euro, was probably one of the best campaigns to go down in
history. When the twelve members of the new EU introduced this euro, each country
official was made to collect nine billion notes and 107 billion national currency coins
to represent all of these members’ fiat currency. One of the reasons why the EU was successful in this plan, as stated in the delegate background guide for HMUN India 2018, was because they had been preparing for over three years, printing and minting new notes and loading all banks and ATMs with the new currency, by the night before the plan was announced. Many central banks were even allowed to use they old legal tender to allow the business to run smoothly for about a month or two.

Their story of success has a lot of detail-oriented and advanced preparation involved
that was probably one of the breaches involved in the case of the Indian demonetisation
scenario. If, the government of India would have followed the footsteps of more of
these successful demonetisation examples tried to make similar outlines to their plan
of action, it would have a lesser amount of angry crowds and more importantly,
significantly lesser people fainting from standing in queues all day.

Developments In The IMF

Reporting By – Indo Asian News Agency

In a world of globally connected economies, a tiny change in the policy of even one country could lead to a possible trade war. With this tricky situation at hand, the International Monetary Fund steps in as our weaponless army.

With demonetisation as a field of discussion for the Harvard Model United nation 2018 conference this year, the preparation of the delegates is way beyond our expectations. The minute you enter the committee, you see the enthusiasm oozing off these delegates. So much so that they managed to have almost all of their committee members providing the dais with a motion, each getting more interesting by the minute. They may have even taken the expression “first impressions are the last” to heart. They were so thorough with their research and were so eager to speak about their country positions that the motion for an unmoderated caucus failed! This is probably the first time you would have seen something like that! In the dire hour of no motions passing, the delegate of United Arab Emirates was probably the only delegate to have more allies than anyone, assuming that he managed to convince other delegates to vote upon his motion after a series of failed ones. Well done delegate!

Speaking of well done, the efforts of Venezuela shouldn’t be left unacknowledged. She managed to impress everyone by addressing the crowd with the native language of Venezuela. The delegates of Mexico, Germany and Uganda were absolutely confident in their speeches and got the committee energized with their strong hold of language. For being a first timer, the delegate of Mexico surely did well! The delegate of Lesotho even had people in hysterics when he said “If you’re not corrupt, the you are corrupt”.  And how can we forget the delegate of United States of America! In a very brief interaction, the delegate has some really interesting theories about how demonetisation in the States might affect other economies. He says, “If the United States of America were to demonetise its currency, it could lead to a global catastrophe as almost all country currencies depend on the US Dollar. Therefore, developed countries should try and avoid demonetising, whereas on the other hand, for developing countries, this is quite beneficial it will help them curb illicit trade, black money as the bank securities in these countries is quite unstable.

Most of the committee discussions revolved around how demonetisation affects individuals, its benefits, drawbacks and how India failed in its demonetising plans. Being a news agency that is based from India, it can be fair for us to say that although the plan had people on their toes all day, and the lack of proper planning didn’t help, it helped the country bust all illegal activists and corrupt money. but, when it comes to the committee overall, it was clear that this year is going to be an adventure with loads of young diplomats ready to change others’ opinions about demonetisation. It’s just day 1, and it already has me wanting more…