United Nations Economic and Financial Committee (ECOFIN) President’s
Letter
Oakland University Model United Nations
March 3-4, 2017
Welcome delegates! It is my honor to serve as the chair for the Economic and Financial
Committee (ECOFIN) for Oakland University’s Model UN Conference. I have been involved in
MUN for four years at OU. My chairing style could be considered strict. I believe the rules are in
place for a reason and should be followed. I also adhere to the belief that one of the most significant
and often overlooked aspects of participating in MUN is to keep in mind the functions and
limitations of the committee you are participating on. Each United Nations committee was created
with a specific purpose and decree within the overarching organization of the United Nations. The
participants of MUN have been tasked with exemplifying this. It is essential to understand the
purpose and limitations of the committees. I have included a link to ECOFIN which should be a
starting point for your research.1 For research resources, I have included some links that I think
can prove to be useful. Please keep in mind that we will be debating some highly complex issues
that can be approached in various ways. This background guide does not reflect the different
variations. I look forward to meeting all of you on March 3rd.
Labor Rights and Trade Unions in the Global Economy
The United Nations and other international organizations have worked to represent the
needs of workers around the world through unions and agreements on the rights of workers. The
preeminent authority on international labor laws is the International Labour Organization (ILO) of
the United Nations, which has declared four core standards and goals all nations that are party to
the ILO should respect. These are defined in the Declaration on Fundamental Principles and Rights
at Work2. The first is the freedom of collective bargaining and to form associations, which allows
workers to negotiate with their employers as a group. The goal of freedom from association is to
provide employees with some leverage and ability to seek more fruitful employment conditions.
The second standard is the prohibition of forced labor, and the ILO has committed itself to its
wholesale eradication. The third goal aims to abolish child labor. Finally, the last goal is to remove
discrimination from employment and workplaces. These provide a basis for any future
international agreements on labor rights.
The ILO has primary authority over international labor standards and is an important
resource for this topic as the organization regularly releases reports on the state of workers around
the world.3 186 of the 193 UN member states are part of the ILO, so it may be beneficial to
understand which nations have avoided joining. The Economic and Social Council of the UN
(ECOSOC) is also involved in issues of labor and employment. While delegates will not represent
1
http://www.un.org/en/ga/second/
http://www.ilo.org/declaration/thedeclaration/textdeclaration/lang--en/index.htm
3
http://www.ilo.org/global/lang--en/index.htm
2
either of these organizations, it is important to recognize the stances of the international
community. Two useful resolutions on employment from ECOSOC are 2007/24 and 2008/185.
Further discussion into labor rights should include the comparative advantage developing
countries may possess, which provides benefits to international trade, and how this should be
addressed. Specifically, some believe that globalization and competition against lower-income
nations forces developed nations to lower the standards for their blue-collar workers in order to
compete. If this is the case, delegates should ponder how best to conduct international trade to
ensure labor benchmarks are not lowered for the sake of gaining a trade advantage. At the same
time, delegates may consider that in contrast to a “race to the bottom” in which standards,
protections, and wages are lowered, the international community could also push for higher
standards in all countries, potentially improving conditions for many workers. Discussion of
multilateral trade agreements, such as the Trans-Pacific Partnership (TPP) and Regional
Comprehensive Economic Partnership (RCEP), which promote trade between high and low
income nations would be appropriate in the context of how labor plays a role in these trade
agreements.
With so many specialized agencies of the UN the UN General Assembly often avoids
addressing labor rights and trade. There are, however, certain General Assembly resolutions to
note. First is resolution 67/196 of 21 December 2012 on International Trade and Development,6
which addresses the benefits of free and fair multilateral trade on economic growth. All delegates
should remember, however, that there is an emerging global trend in favor of protectionist
economic policies (e.g. the Brexit vote, Trump’s victory in the US) as well as de-unionization in a
number of countries, which are, in some ways antagonistic to the mission of the ILO, UN, and
other organizations. Resolution 63/199 of 19 December 2008 on International Labour
Organization Declaration on Social Justice for a Fair Globalization7 is also important to the
discussion of labor rights. This document reviews the need for social justice and financial security
of lower-classes, given the 2008 financial crisis. It also stresses the importance of fair
globalization to protect economic equality rather than harm it. These resolutions should provide a
guideline of action taken by the UN General Assembly with regards to labor. It is also
recommended for delegates to conduct research and find other relevant documents.
Despite the goals of the UN there is still much action required by individual states to ensure
the proper representation of labor worldwide as well as the role each nation must play given
variable economic situations. Delegates should be prepared to discuss international goals as well
as practical implementation of labor standards, union rights, and the impact this has on
development and global trade.
It is advisable for delegates to investigate the situations employers, workers, and
government face within their own nation and how that applies to the goals of the UN. Preliminary
questions include:
4
http://www.un.org/en/ecosoc/docs/2007/resolution%202007-2.pdf
http://www.un.org/en/ecosoc/docs/2008/resolution%202008-18.pdf
6
http://www.un.org/en/ga/search/view_doc.asp?symbol=A/RES/67/196
7
http://www.un.org/en/ga/search/view_doc.asp?symbol=A/RES/63/199
5
1. Does your country abide by the four core standards defined by the ILO? If not, which
factors need improvement?
2. How do unions function in your country and how many workers participate? Can your
country be an example for others or are there lessons your country can learn from other
countries?
3. What actions are currently being undertaken by your country to protect the rights of
laborers? Do laborers, employers, and/or government conflict with one another on the
correct course of action?
4. Does your country belong to the group of highly or lesser developed countries? What
labor policies can be implemented to ensure further or future economic success for your
country?
5. How does the situation of labor in your country affect its ability to conduct advantageous
international trade?
6. What, if anything, must be done to ensure free and fair multilateral trade among high
and low income nations to pursue prosperity for all?
Sustainable Urbanization and Urban Development
Over the past few decades, the increase of urbanization has meant that a substantial number
of people have relocated to large cities and suburbs from rural areas. This has occurred across the
globe. In 2007, for the first time in history, more humans lived in urban areas than rural ones.
According to the World Bank, in 1997 45.5% of the world’s population resided in urban areas.
This percentage has spiked to 54% in 2015. By 2050, it is projected that 65-67% of the world’s
population will call urban areas home. The world now has numerous mega-cities of over 10 million
people. Many of these, such as Mexico City, Beijing, Istanbul, Cairo, Calcutta, Mumbai, Karachi,
Dacca, Jakarta, Tehran, and Bangkok, are in middle-income or poorer countries. This dramatic
increase has lead to many ‘urban specific problems’ such as lack of housing, jobs, and resources
such as clean water and degradation of the environment. Many cities and their governments are
not equipped to handle such influxes in their population. Some richer countries, such as Germany,
have demonstrated that they are in a position to support urban re-development and take in many
newcomers, while others such as India, Pakistan, Kenya, Nigeria, and South Africa, struggle to
cope with growing populations and pressure on limited resources. Unfortunately, this has proven
to be yet another significant challenge that has disproportionately affected the developing world.
In the past, ECOFIN has worked closely with other UN organizations such as the UN- Habitat
United Nations Human Settlements Programme to assist countries that are struggling to manage
their problems that have been brought about by acute urbanization by supplying adequate housing
as well as implementing policies that are focused on issues related to urbanization.
What are the root causes for this exodus into the world’s large cities and surrounding
areas? One primary cause is extreme population growth. The world’s population is growing at a
faster rate than ever before. Another cause is lack of economic opportunity for rural populations.
Many individuals that relocate to urban areas cite the lack of economic opportunity as the greatest
factor in their decision to move to the cities. Unfortunately, many cities are unable to keep up with
the demand for jobs and thus the cycle of unemployment continues. Another reason cited
particularly in the Middle East as well as much of Africa is security. Many of the people moving
to cities feel that living in a large city provides some security from terrorist organizations and
gangs that assert control over smaller towns and villages. Urban areas also often contain better
medical facilities as well as education resources than rural areas. As previously mentioned, the
lack of employment opportunities in many cities has led to higher poverty levels in large cities
than rural areas. This is particularly true in parts of Africa and Asia.
Though currently they remain mostly rural, Asia and Africa are predicted to be the regions
that urbanize at the most accelerated pace within the next twenty years. The Indian sub-continent
region has been one of the most impacted regions by rapid urbanization development and has
greatly struggled with meeting the needs of the urban populations. North America, South America,
Europe, and the Caribbean have also experienced the high growth in urban populations.
While much of the issue involves generating economic opportunities and promoting
strategic investments, there are also environmental costs to be considered as well. ECOFIN has
previously participated in the discussions regarding Agenda 21 and continues to support the
notions expressed in the new 2030 Agenda for Sustainable Development. The 2030 Agenda for
Sustainable Development is designed to promote wide sweeping global changes in regards to
sustainable development and is broken down into three dimensions of sustainable development:
economic, social, and environmental. Cities are often the focus of sustainability, as they are the
locus for many industries and energy and resource use. Limiting resource use can be beneficial
both in terms of economics but can also improve the quality of life—indeed, health concerns due
to air pollution and poor (or non-existent) sanitation is a major concern for millions of people
across the globe. In 2014, ECOSOC developed an “integration segment” on sustainable
urbanization, which highlighted issues of urbanization in relation to the 2030 Agenda.8 Our
discussions in ECOFIN can build on this prior work. Delegates should therefore be aware of the
economic dimensions of the 2030 Agenda for Sustainable Development, particularly how they
affect cities, and how technology and new ideas may offer an opportunity to produce positive
change.
You should consider the following questions as you begin your research:
1. How has urbanization impacted your country/ region?
2.How has your country supported or opposed urban development?
8
http://www.un.org/en/ecosoc/integration/2014/documentation.shtml
3. If your country has experienced fast paced urbanization, what are some of the root causes of
this? Are these root causes similar to those of other countries in the region?
4. What urbanization issues are specific to your country? Does your country have one or more
“model cities” that have done a good job in handling pressures of urbanization?
5. Are urbanization trends predicted to continue in your country? Is it realistic or feasible to
believe that trends toward urbanization can be slowed or stopped?
6. How has urbanization affected your country’s economy and environment?
7. What regions/ cities are projected to grow the most rapidly? What regions/cities are projected
to shrink? Can government policy or market forces play a positive role in either case?
8. What has the UN’s response to rapid urbanization been thus far? What more could the UN do?
9. Can your country borrow from successful policies elsewhere to deal with issues of
urbanization?
Useful links:
http://data.worldbank.org/indicator/SP.URB.TOTL.IN.ZS (provides data on all countries
urbanization rates)
http://www.un.org/en/ga/second/index.shtml
http://www.un.org/ga/search/view_doc.asp?symbol=A/71/347
http://www.un.org/en/ga/second/71/documentslist.shtml
https://www.quora.com/What-are-the-Economic-effects-of-urbanization
http://lcluc.umd.edu/term_menus/menu-field-category/133
https://esa.un.org/unpd/wup/publications/files/wup2014-highlights.Pd
http://www.un.org/en/ecosoc/integration/2014/documentation.shtml