Economic & Social Council Background Guide

Download the Background Guide HERE or in the Document Download Page

In order to provide delegates with the best possible experience and be able to have larger committees we have made the decision to cancel this committee.

Esteemed Delegates,
            The Economic and Social Council (ECOSOC) of the United Nations assists the General Assembly in promoting international economic and social cooperation and development.  ECOSOC’s functions include information gathering, advising member nations, and making recommendations. In addition, ECOSOC is well-positioned to provide policy coherence and coordinate the overlapping functions of the UN’s subsidiary bodies and it is in these roles that it is most active.
            The Economic and Social Council Committee is made up of four members including Lauren Mudrak, International Studies major; Bianca Jones, International Studies major; Amanda Kruse, International Studies major; and Committee Chair Manuel Lopez, International Studies major.  If any questions arise please don’t hesitate to contact me at mlopez@bradley.edu.

            The three topics that will be presented in this background guide are:
                       
                        1.         Agricultural Subsidies

                        2.         Chinese Market Control

                        3.         Universal Free Trade

Sincerely,
Manuel Lopez
BUMUN Staff 2007-2008
Economic & Social Council Chair

1.  Agricultural Subsidies
            Agricultural Subsidies are a type of financial government assistance, such as a grant, tax break, or trade barrier, in order to encourage the production or purchase of a good. 
In the United States the U.S. Argicultural Department is required by law (various U.S. farm bills which are passed every few years) to subsidize over two dozen commodities. Between 1996 and 2002, an average of $16 billion/year was paid by programs authorized by various U.S. farm bills dating back to the Agricultural Adjustment Act of 1933, the Agricultural Act of 1949, and the Commodity Credit Corporation, among others.  The beneficiaries of the subsidies have changed as agriculture in the United States has changed. In the 1930s, about 25% of the country's population resided on the nation's 6,000,000 small farms. By 1997, 157,000 large farms accounted for 72% of farm sales, with only 2% of the U.S. population residing on farms.  The subsidy programs give farmers extra money for their crops, as well as guarantee a price floor. For instance in the 2002 Farm Bill, for every bushel of wheat sold farmers were paid an extra 52 cents and guaranteed a price of 3.86 from 2002–03 and 3.92 from 2004–2007.  That is, if the price of wheat in 2002 was 3.80 farmers would get an extra 58 cents per bushel (52 cents plus the $0.06 price difference).
In the European Union the aim of the common agricultural policy (CAP) is to provide farmers with a reasonable standard of living, consumers with quality food at fair prices and to preserve our rural heritage. The policy has evolved to meet society’s changing needs, so that food safety, preservation of the environment, value for money and agriculture as a source of crops to convert to fuel have acquired steadily growing importance.
The Committee would like to focus on Agricultural Subsidies in the West and how they affect the rest of the world.  There is great debate as to whether agricultural subsidies do more positive outcomes in the international stage than harm.
Committee Directives

2.  Chinese Market Control
           
The Chinese Market started in the early 1980s and since then has come to grow.  Over the years they have had to find ways to conquer and show it could withstand.  When it comes to 2005, the Chinese Market is ranked 110th out of 183 yet it is rising rapidly.  And by rapidly, on March 30th it was at $16.4 billion and as of May it has reached $49 billion.  Which is a concern by some about how fast it is increasing and where it is going.  As the market does continue to grow that is where control comes in.  As the market increases, and it is a private sector already is it going to be more public or stay to a private sector.  There are many Chinese analysts that would like there to be a policy that ensures a healthy market that promotes state sector reforms and social stability.  When thinking, come up with ways that your country would help to carry out a policy to maintain control over the Chinese Market.  There is also the worry of another collapse of the stock market.  In 2001 there was a small collapse that didn’t affect many but with the number of investors reaching 100 million there could be a social consequence and many people losing everything.  This is something that is stressed because many people are investing in these stocks with high hopes and one single mistake could ruin it all.  When something happens here, it is like a chain reaction around the world and involves everyone.
            The United Nations has taken steps to help China though their struggles.  The UN has 3 goals: 1."Promote Sustainable Development to Reduce Disparities", 2. "Support Favorable Conditions for National Reform and the Development Process", 3. "Assist China's Efforts in Meeting Global Challenges and Promote International Cooperation".  These three goals are to help distribute the wealth to others that the economy is bringing in.  These goals have all have something to do with how the economy is expanding and how it is not being distributed equally.  The UN and China are working to make a difference there.  The International Covenant on Economic, Social and Cultural Rights has been signed by China and is working on being ratified.  Keep that in mind!
            Two major problems right now is the rate that the stock market is raising and what is to happen if there is a failure.  There are many looking for a policy to help if something were to happen.  A simple guideline, so to say, is follow and to lead them in case of an emergency.  Remember that there is still the possibility that there could be a collapse of the stock market at which there will be a need to look ahead and see what exactly could make it happen, if there is a way to stop this event from occurring and how to get everyone involved so it doesn’t hurt any nations.  This committee must come together to find a fair way to solve the problem while thinking of the future and how there could be a fall out of the Chinese Market.

Committee Directives

3.  Universal Free Trade

The post- Cold War era introduced Free Trade Agreements (FTAs).  Since the mid-80s, the US has struck up FTAs many countries, the most common being NAFTA, (North Atlantic Free Trade Agreement) encompassing the US, Canada, and Mexico. While free trade reduces the amount of tariffs applied to a trading policy, it results in an unbalanced outcome of trade advantages and disadvantages found in economically advanced countries compared to third world countries.  The US in particular has been stressing FTAs because they benefit the economy.  Criticisms of free trade include the fear that FTAs between countries could develop into rival trading blocs centered around world super powers such as the US, EU, and Japan.  Supporters of US free trade fear that trading with smaller countries will not benefit the US, though it benefits developing countries. Trading super powers have much more bargaining power than those countries with which they deal; more ideal situations of trading would include equal negotiating power.
By 2002, nearly 50% of US exports are 40% of its imports have been established by free trade.  It seems as though numerous countries are jumping on the band-wagon on free trade.  The UN has serious opposition to the WTO (World Trade Organization), calling it a nightmare towards developing and third-world countries; thus, free trade has been somewhat thwarted.  Free trade can hurt these countries by taking advantage of workers. Free-trade agreements have protected drug companies, international investors and Hollywood films, yet failed to protect our communities, our workers and our environment.
Focus on what countries that are not participants of FTAs’ challenges and advantages.  What can they do to ensure economic safety in the international system?  Free trade exploits new members of the WTO, which are typically developing states.  The international community has no immediate law, no higher government to answer to, it is important to decide, then, whose responsibility it is to protect small states from being exploited.  The UN may need to make revisions, take precautions, or take action to prevent this, if free trade is harming a particular country at another country’s gain.

Committee Directives

• What is your country’s stance on free trade?
• How can your country benefit from free trade? If the disadvantages outweigh the advantages, how so?
• Why would your country want free trade?
• What steps could be taken to revise free trade to make it more beneficial for more countries?
• While free trade is good for many people, who are those that are extorted and abused by it?