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Committee: Economic and Social Council
Agenda A: Alleviating poverty by means of creating productive employment and decent work for
all
. IntroductionⅠ
In our world where 70.1 percent of people hold only three percent of global wealth, poverty has
always been a challenge to the global community. While a minority of people live off of flourishing
assets providing needs to the level of excess, a majority of people lack money to afford the very basic
needs such as food, clothing, house, going to school, clinics, etc. In order to address the extreme
economic disparity, More Economically Developed Countries (MEDCs) and organizations, for years,
have provided appropriate amounts of foreign aid to poor countries to trigger their economic
development. However, recently, massive foreign aid has been accused of emphasizing big objectives,
ideal projects, top-down planning rather than thoughtful, bottom-up solutions tailored to the respective
local contexts, that could truly stimulate their national enterprise and allow for a self-functioning market
economy. In response, the importance of creating jobs that could improve real income and ensure
sustainable economic growth has risen to surface notably than ever before. The logic being that, decent
work puts money in the pockets of individuals and families that can spend in the local economy. Their
purchasing power can fuel the growth and development of national enterprises, both large and small,
which in turn may hire more workers, improve working conditions, and conclusively maintain a stable
local economy.
Hence, productive employment provides the key linkage between economic development and
poverty reduction. At the same time though, economic growth did not always bring about productive
employment and poverty reduction—a phenomenon currently apparent in advanced countries. In fact, the
ILO estimated that in 2012, over 300 million people in MEDCs were living in poverty, which has
provoked the problem of economic inequality within a single nation. Independent of the level of
economic advancement, creating productive employment and decent work for everyone, is seemingly
evasive for now, but has become a consensus that it will be an effective mean to assuage rampant
destitution and economic disparity.
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. Definitions of Key Terms:Ⅱ
| Productive Employment:
Productive employment is defined as employment yielding sufficient returns to labor to permit the worker
and his or her dependents a level of consumption above the poverty line, the minimum level of income
deemed adequate in a particular country. A deficit of productive employment—those who are in the labor
force but do not have productive employment—faced by nations often takes the form of unemployment or
chronically working poor.
| Decent Work:
First mentioned in Article 7 of the International Covenant on Economic, Social and Cultural Rights,
according to the ILO, decent work involves opportunities for work that are productive and deliver a fair
income, security in the workplace, better prospects for personal development and social integration,
freedom for people to express their concerns, organize and participate in the decisions that affect their
lives, and equality of opportunity for all women and men. In 2015, it has been included in the 2030
Agenda for Sustainable Development as Goal 8, which calls for the promotion of inclusive and
sustainable economic growth with employment and decent work for all.
| Informal Sector:
The informal sector, also known as the grey economy, is the part of an economy excluded from the
measurement of gross domestic product (GDP), that is neither taxed nor monitored by the government.
Usually prevalent in developing countries, they play a critical role in the economy by providing
opportunity, but on the other side, tend to be troublesome and unmanageable—often posing a hindrance
to further development towards an advanced economy. Jobs in the informal sector are characterized by
easy entry, irregular job hours, limited access to welfare protection and consists of people that are self-
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employed, unpaid family laborers, street vendors. According to an ILO report, more than 61 percent of
the world’s employed population makes their living in the informal economy.
| International Labor Organization (ILO):
The ILO, a specialized agency of the United Nations, has taken a primary role in pursuing Sustainable
Development Goal 8 including promoting jobs and enterprise, guaranteeing rights at work, and extending
social protection, especially through its ILO Decent Work Agenda. The ILO organizes the International
Labor Conference every year where conventions are adopted and is a major provider of labor statistics,
such as labor production, employment, economic performance, labor cost, etc.
. Background Information:Ⅲ
Economic growth and poverty reduction was an ever-present goal of major organizations and
countries. As a solution, developing countries focused on eradication of idleness, encouragement of labor
through generating employment. However, today it has been largely recognized that there should be a
shift in focus from job creation to creation of decent jobs in which working environment, fair wages and
opportunities are ensured. This basis for the right to decent work was first officially mentioned in Article
23 of the Universal Declaration of Human Rights, “everyone has the right to work, to free choice of
employment, to just and favorable conditions of work and to protection against unemployment.” Later, in
2006, following the High-level Plenary Meeting of the sixtieth session of the General Assembly, United
Nations had adopted a new target under the Millennium Development Goals (MDG): “Achieve full and
productive employment and decent work for all, including women and young people,” which was later
enforced in 2008 when it was incorporated into the first MDG, “eradicate extreme poverty and hunger.”
This was emphasized once more in the Sustainable Development Goals of 2015 as goal number eight,
with an effort to accumulate support on this very challenge.
Lack of productive employment is especially a trouble for less economically developed countries
(LEDCs) such as those in the African region due to a disproportionate amount of informal businesses
compared to a meager number comprising the formal sector. A large share of the workforce is employed
in and dependent on informal firms that are not legally registered with the government, primarily small,
household-run businesses. Thus, countries with a large portion of these informal firms struggle with low
aggregate productivity which inevitably leads to insufficient returns to laborers and augmented poverty.
To rescue the LEDCs from the “poverty trap,” there have been years of foreign aids. Unfortunately, they
have been ineffective in creating a stable, sustainable, independent enterprise.
Poverty is of no exception in developed countries as well, where it is still existent and concerned
by the government. These countries had adopted market liberalization, which believed that free and open
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markets were the only vehicle for economic development which will lead to poverty reduction through a
trickle-down effect. However, market liberalization has not guaranteed the benefits to all people and
underestimated the role of government intervention in economic development. Thus, increasing
productive employment and decent work is crucial to raise income, consumption, and to ultimately foster
the economy in both MEDCs and LEDCs.
. Past Actions of the United Nations and Non-Governmental Organizations:Ⅳ
| ILO Decent Work Agenda
The International Labor Organization has put forth the Decent Work Agenda which has been regionally
implemented in developing countries and developed countries in the form of Decent Work Country
Program after it has been tailored to the specific needs of a country. This agenda includes four objectives,
one of which is creating jobs that generate opportunities for investment, entrepreneurship, and sustainable
livelihoods. Second is guaranteeing rights at work, which secures representation, participation, and good
laws that work in the interests of the disadvantaged workers. The third refers to extending social
protection so that men and women enjoy working conditions that are safe, allow adequate rest, reasonable
compensation, and take into account social values. Lastly, the agenda involves promoting dialogue and
conflict resolution that can help avoid disputes at work, understand negotiation, build cohesive and
peaceful working societies.
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| The Global Initiative on Decent Jobs for Youth
This Global Youth Initiative was launched in 2016 under ILO lead, following the alliance of
governments, UN agencies, businesses, academic institutions, youth organizations, and other entities, to
tackle the youth employment crisis, their increased vulnerability, and their poor job conditions. As a
result, it assisted young people in developing skills that could help them compete in the job market by
means of strategies such as expanding regional and country level action that involves evidence-based
policies, providing knowledge platforms on decent jobs for youth that can promote sharing of knowledge
and experience through cooperation mechanisms, and funding resource mobilization. Furthermore, the
initiative helped to generate decent jobs for youth and assisted in their transition from school to work.
. Major Countries Involved:Ⅴ
| Zimbabwe
Currently in Zimbabwe, 78 percent of their people are living in absolute poverty and more than half of
Zimbabwe’s estimated 13.5 million people live under the food poverty line. An ILO report showed that
Africa had 85.8 percent of employment in the informal sector—the highest of all other continents. Among
those African countries, Zimbabwe has the second largest percentage of informal employment, rounding
up to 60.6 percent, according to IMF. Due to the lack of basic social protection in the informal sector with
low and unequal wages, long hours of work, poor working condition, and no bargaining power of
workers, decent work attainment is difficult. Therefore, it is pivotal to create quality jobs with high social
protection in Zimbabwe.
| Nigeria
The largest African country with an estimated population of 152 million people, Nigeria has the largest
consumer market in Africa that has the potential to facilitate enormous economic development. However,
after it has recorded impressive economic performance between 2003 and 2007, their GDP growth has
declined ever since up to a point of negative 1.5% in 2016 largely due to the crash in oil price in 2008 and
2014. Its economic drawbacks include over dependence on oil export, corruption, informal economy
accounting for 65% of GDP last year, the unemployment rate which has risen from 14.2% to 18.8% in
2017. Recognizing its economic fragility, the Nigerian Government has been collaborating with ILO to
meet ILO’s Decent Work Agenda, which is based on four strategic objectives—employment, social
protection, social dialogue, and rights of workers. As a result, in 2005, with the help of ILO, the Nigerian
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government developed the first Decent Work Country Program (DWCP) for Nigeria. Its priorities were
creating jobs for women and youth and eliminating human trafficking and child labor. However, due to
the lack of clarification in documents, lack of monitoring and evaluation, miscommunication and
misunderstanding between partner firms and organizations, it could not achieve its guidelines. To prevent
the likelihood of similar problems, stakeholders were taken through a workshop on procedures of DWCP
, which was commenced shortly after DWCP ended in 2009. DWCP largely aligned with goals of Ⅱ Ⅰ Ⅱthe former program but was focused more on reducing the decent work deficits as well as mitigating the
impact of the global financial crisis.
| India
Over the past 25 years, India has procured rapid economic growth and dramatic decline in poverty,
despite the economic crisis of 2008. Employment has soared as well. However, as they’ve reached
accelerated levels of development, relatively slower growth than before, widening inequality,
employment limits have become apparent. According to the Center of Monitoring Indian Economy
(CMIE), after falling to a low of 3.4% in July 2017, the unemployment rate has steadily risen to 7.1% this
year, with around 31 million Indians seeking jobs. India also has over 360 million youth population—the
largest in the world—and in order to harness this demographic feature, India will need to generate 280
million jobs between now and 2050. Decent work will reduce inequality and unemployment and increase
resilience. Meanwhile, India has adopted the Decent Work Country Program, a five-year plan which
extended from 2012 to 2017, aiming to promote international labor standards and fundamental principles
at work, initiate policies for job-rich growth for women, youth, disadvantaged groups, building national
social protection and workplace compliance, enhancing labor administrations and social dialogue at
national and state levels.
| United States
United States, the world’s largest single donor country of 2015, has spent 18.25 billion dollars in
economic aid to 92 recipients in 2017, according to the Security Assistance Economic Aid, among which
25.32 percent were received by the Sub-Saharan African region alone. However, the majority of foreign
aid given to Africa consisted of food aid rather than assistance for a sustainable development that could
achieve poverty reduction. In recent years, Trump has announced and threatened recipient countries that it
would sharply cut its vast amount of foreign aid and prioritize the wellbeing of America, where the
census shows that 45 million, or 14.5 percent of all Americans, live on less than $11,490 for a person and
$23,550 for a family of four. These people live from paycheck to paycheck without adequate health,
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education, housing, and social benefits. Meanwhile, United States was also highly involved in ILO’s
Decent Work Agenda.
| Luxembourg
Luxembourg is strongly engaged in the implementation of the 2030 Agenda for Sustainable
Development, especially showing strong commitment to ILO mandates and providing voluntary
contributions to its programs. In 2016, Luxembourg signed a new Partnership Agreement with the ILO,
promising their support to development cooperation activities such as educating young people
entrepreneurial skills, enhancing social protection, providing vocational training, etc. Clearly,
Luxembourg has an ambitious development cooperation policy, which aims to eradicate poverty and to
achieve sustainable development in its partner countries like Africa. As Luxembourg is one of those
countries with the most available productive employment and decent work, it can serve as a model for
LEDCs.
. Future Outlook / Solutions:Ⅵ
As we all know, poverty is a main concern in the global world. In order to eradicate poverty, many
organizations and governments have come together to figure out solutions. There have also been years of
continuous foreign aid from international organizations and MEDCs to LEDCs. However, these LEDCs
still remain at the similar economic status as before, perhaps because of the clash between previous non
country-specific aids, and various cultural, religious, political aspects that are already deeply embedded
within their society. Excluding the possible cultural effects, a way to reduce poverty can be establishing a
sustainable enterprise in nations through creating productive employment and decent work. The possible
solutions for creating productive employment and decent work include:
Investing in education and training of citizens so that they could acquire the skills for productive
work and recognize their rights as workers
Focusing on enhancing the quality of existing jobs, rather than creating more jobs, in informal
sectors which is the main source of employment in developing countries
Transforming workers from the informal sector to the formal sector where there is a higher
chance for provision of decent work
Making of stronger, practical initiatives from organizations, based on each country’s economic
status and cultural, regional background
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While most productive employment requires applicants to have some amount of basic skills to
perform the job, in the case of developing countries, a majority of citizens lack the skills needed to
accomplish the remunerative jobs. Therefore, training for the unemployed labor force, including youth,
should be provided by creating training bodies, reinvigorating apprentice systems if deemed appropriate,
or encouraging school enrollment for children living in these countries so that they could receive the
necessary education required in productive occupations. These methods can tackle the education and
skills mismatch in labor markets. Also, the newly trained potential entrepreneurs can start their own micro
businesses that can generate employment opportunities for others. Moreover, through higher education,
these people may gain rights-consciousness which could encourage the atmosphere of negotiation,
dialogue, and resolution of discrimination in workplaces.
Previously, and even up until today, various countries possess policies focused primarily on
escalating the number rather than the quality of jobs. Yet, in reality, jobs have been increasing in the
informal sector, a part of the economy excluded from the GDP measurement that tend to have poor
working conditions and welfare, long labor time, meager income, restricted communication between
employer and employee. A continuous increase in the informal sector will not open the door to poverty
reduction. Thus, informal firms should be improved through training their associates business practices or
other forms of education. Inputting specific dimensions of labor laws that help create a regulatory
environment, including enforcement of international labor standards and fundamental principles and
rights at work, which provides informal sectors with incentives and provokes their willingness to enhance
their working conditions is essential as well. Other than improving the informal firm itself, moving the
workers from informal firms to formal sectors can be another possible solution. Usually, young, highly
educated, urban workers tend to switch from informal jobs to formal jobs. These formal jobs guarantee
higher returns and stable systems.
Only in the past few years, has the importance of evidence-based, country-specific policies been
recognized. Before, programs initiated by organizations and governments had the characteristic of one-
size-fits-all approach, in which similar policies were implemented in various regions under the same
theme, regardless of their local context. Currently, the only country-specific program for increasing
decent jobs is the Decent Works Country Programs (DWCP). However, stronger and more effective
measures should be introduced to mitigate the grim prospects of job conditions. Ways to strengthen the
capacities of key stakeholders to improve implementation of policies and programs, strengthen
enforcement capacity, strengthen monitoring and evaluation systems, improve information and data on
the labor market, improve communication between partners, etc. should be considered in the process.
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. ConclusionⅦ
Today, despite efforts of organizations and governments, economic impoverishment and disparity
have continued to exist in both developed and developing countries. Although there are multiple
respective causes to each country’s poverty and staggered development, a common observation is that
they all have more or less of unproductive employment and indecent jobs. Realizing unemployment and
the job crisis as a consequential issue, United Nations has incorporated it in the Sustainable Development
Goals of 2015 and were mainly attempted by the International Labor Organization. However, in
developing countries there are still enterprises dependent on foreign aid, a large portion of informal
sectors, and lack of education. Keeping these impediments in mind, the global community is expected to
devise methods to effectively create productive employment and decent work that can contribute to
worldwide poverty reduction.
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Committee: Economic and Social Council
Agenda B: Regionalism and the World Trading System
I. Introduction
After experiencing the cruelty and selfishness of humans and governments through World War
II, most of the first world countries set policies in a cooperative way, which led to eliminating
protectionism through free trade policies. These policies were enforced by international
organizations such as the World Trade Organization, and conferences between the G20
countries. During the G20 meeting in London on 2nd April, 2009 pledged that they will not repeat
the historic mistakes of protectionism of previous eras. How this pledge is conducted is
monitored by the GTA (Global Trade Alert) that
provides commentaries to ensure that the G20
pledge is met.
Although these countries seemed to be
promoting free trade and reiterating the same
pledges they have already promised to do, the
reality isn’t this idealistic. According to a news
report from BBC, November, 2017 in
Washington, 17 of the G20 countries were
reported by the World Bank as having imposed trade restrictive measures. The World Bank says
most of the world’s major economies are resorting to protectionist measures as the global
economy is facing downturn.
In addition, certain policies of first world governments, such as the Common Agricultural Policy in the European Union, longstanding agricultural subsidies, and "Buy American" provisions in economic
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recovery packages in the United States, have been criticized as protectionists.President Donald Trump announced in January 2017 the U.S. was abandoning the TPP (Trans-Pacific Partnership) deal, saying, “We’re going to stop the ridiculous trade deals that have taken everybody out of our country and taken companies out of our country, and it’s going to be reversed.”Moreover, recently, Wilbur Ross, the U.S. Commerce Secretary, announced that he would
impose 25 percent and 10 percent tariffs on imported steel from the European Union, Mexico,
and Canada. As a result, Canadian Prime Minister Justin Trudeau said he would impose a $ 128
billion tariff on a wide range of products, including products made in the U.S. and some
agricultural products. Mexico has also declared a punitive tariff on American steel, pipes, fruits,
cheese products and pork. The EU is also planning to impose a multibillion-dollar retaliatory
tariff on U.S. imports. The European Union and Canada began the lawsuit process by requesting
the WTO to hold bilateral deliberations against high steel tariffs in the United States.
I.
II. Definitions of Key Terms:
| Protectionism:
Trade protectionism is defined as a group of nations working in conjunction as a trade bloc,
creating trade barriers with the specific goal of protecting its economy from the possible
threats of international trade. This is the opposite of free trade in which a government allows
its citizens to purchase goods and services from other countries or to sell their goods and
services to other markets without any governmental restrictions. The objective of trade
protectionism is to protect a nation’s vital economic interests such as its key industries,
commodities, and employment of workers. Free trade, however, encourages a higher level of
domestic consumption of goods and a more efficient use of resources. Free trade also seeks
to stimulate economic growth and wealth creation within a nation’s borders.
| National Security:
National security is used for trade protectionist policies since the industries involved include
defense-related companies, high-tech firms, and food producers. The argument here is that
industries such as aerospace, advanced electronics, and semi-conductors are vital components
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of national defense policy and that relying on foreign manufacturers would seriously affect a
nation’s defense in time of war.
| Tariffs:
Tariffs are restrictions in international trade that demands a taxing duty on foreign imports.
Tariffs aim to protect the country’s own industries and raise tax revenues. Tariffs could be
specific in which there is a fixed tax rate or fee for each unit of a product or commodity
brought into a nation. There are also ad valorem tariffs which are set as a proportion of the
value of the imported product.
| Trade Agreements
(1) Unilateral Trade Agreement
Unilateral Trade Agreement occurs when a country imposes trade restrictions and no
other country reciprocates. A country can also unilaterally loosen trade restrictions,
which rarely happens since it would put the country at a competitive disadvantage. The
United States and other More Economically Developed Countries (MEDCs) engage in
unilateral trade agreements to foster the growth of certain foreign industries only on the
occasion that they are small enough not to be a threat their own economies. It helps the
emerging market's economy grow, creating new markets for U.S. exporters.
(2) Bilateral Trade Agreements
Bilateral trade agreements are trade agreements made between two countries. Both
countries agree to loosen trade restrictions to expand business opportunities between
them. They lower tariffs and confer preferred trade status with each other. The sticking
point usually centers at the key protected or subsidized domestic industries. For most
countries, these are in the automotive, oil or food production industries.
(3) Multilateral Trade Agreements
Multilateral Trade Agreements are among three countries or more. The greater the
number of participants, the more difficult the negotiations are. They are also more
complex, since each country has its own needs and requests. Multilateral trade
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agreements can exercise a great power once they are settled. They cover a larger
geographic area, which confers a greater competitive advantage on the signatories.
III. Background Information:
The main protectionist of the global society, President Trump has made a big point on the
campaign trail about cutting the country’s trade deficits. He stated that trade deficit harms the US
manufacturing, and hence US will put more efforts to tackle them. The United States has a
massive deficit with other countries in the status quo, especially with China. Last year, it stood at
about $375 billion. This is the point where the United States government is putting a lot of effort
to fix it.
Hence the United States wants to cut
down this trade deficit, and tariffs are
the only method that President Trump
believes to be the effective solution.
Conversely, there are other opinions that, unlike Mr. Trump, trade deficits are not necessarily a bad thing. In recent decades, many MEDCs shifted from manufacturing economies to service economies. Increasing trade
deficits can be a sign of strong GDP and that they will not create a drag on GDP. In addition, any potential downward pressure on the local currency actually can be a benefit to that country. Even more, trade surplus may stagnate the trade itself since the trade partner might feel that they are the one getting disadvantages. Hence issues about trade deficit are certainly controversial problems that bring out active discussion.
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Types of protectionism vary and each has its special characteristics. Let’s take a look at five different examples of protectionism. The first type is EU common agricultural policy (CAP). It is EU imposing substantial rates of tariff on many agricultural markets, despite reforms and some reduction in tariff rates. The aim of this policy is to increase prices for domestic European farmers and increase their income.
The second example can be seen from the example of Banana Wars. For a long time, there were
substantial tariffs on banana imports from Latin America. Exporters had to pay €176 (£141) per
ton of bananas. But, in 2012, an agreement has seen these tariffs reduced.
Another type is the tariffs on imports of Chinese tires into U.S. The US imposed tariffs of 35%
on imports of tires from China. This tariff was upheld by WTO.
The fourth type is the Argentina food tariffs. Argentina has increased imports duties on 100
products, including over a dozen agricultural goods under the Mercosur Common External Tariff
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(CET). In this example, tariffs on the import of milk powder were increased to 9% after record
levels of imports and fears Argentinian farmers would suffer falling incomes.
The fifth example is the escalated tariffs. This occurs when higher tariffs are placed on processed
food. This creates countries to be demotivated and add value to raw materials. For instance, a
WTO report found that the average EU tariff on primary food products was 9.9% but for
processed food products it was more than twice as high, at 19.4%. This is for the EU’s MFN
(Most Favored Nation).
Conversely, the problem not only stays for the US and its trade issues. Trade war and
protectionist policies between the US, EU, China etc. will in fact harm the third world countries
by refugee problems or downgrading their economic status even more. There’s no denying that
since the global financial crash G20 nations have consistently increased protectionism, with
painful consequences for the same African nations they self-congratulate for sending aid to.
According to the African Development Bank, the continent’s nations bore the brunt of measures
including export taxes and tariff and non-tariff barriers, as well as state aid.
Then why would countries choose to apply protectionism?
Countries may impose tariffs on goods for the following reasons, but not limited to:
1. Protecting Infant industry
2. Diversifying the economy by nurturing promising industries
3. Raising revenue
4. Protecting certain key industries from international competition to try and safeguard jobs
5. Protecting domestic jobs which are threatened by the rise of imports.
IV. Past Actions of the United Nations and Non-Governmental Organizations:
| United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP):
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The UNESCAP is one of the five regional commissions of the United Nations Economic and
Social Council, under the administrative direction of the United Nations headquarters. It
especially handles the issues of Asia and the Pacific countries.
ESCAP's regional focus is managing globalization through programs in environmentally sustainable development, trade, and human rights.
The UNESCAP report said growing global trade has helped many areas over the years. But opposition to globalization is growing in the United States, Europe and other areas. People there are critical of free trade policies, and companies move jobs to overseas markets.
The writers of the report warned of reduced economic growth in major developing nations if trade protectionism and global insecurity increase. They predicted the growth rates to be lowered by 1.2 percentage points. The report also noted that the Asia Pacific region remains “the engine of global growth.” Conversely, it said pay inequality is increasing and good jobs are difficult to find. It noted environmental damage was a major concern in some countries following years of economic expansion. It said the growth came at a huge cost to the environment.
V. Major Countries Involved
| The United States
We can say that the main cause of the protectionist trade war is because of the United States’ new policies. President Trump got elected by bringing up commitments that he will make America great again, and no more capital of US will be exported to other countries. Hence, the United States government is breaking up FTA made with others, and is imposing higher tariffs when they trade. As the effect of this diplomatic performance, other nations are also responding by putting more tariffs as well.
| Europe Union (EU)
The EU is the main defenders of the US’s protectionist trade policies. Since the US has
the strong economic and military power, other countries mostly do not resist to America’s
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trade policies, but EU is the one which resists to US’s policy and do the same thing to the
US such as imposing more tariffs.
| China
US President Donald Trump is leading the protectionist surge, and his trade-based
aggression so far has been focused largely on China, Mexico, and Canada. On Tuesday,
he announced plans for tariffs on roughly $50 billion (R595 billion) worth of Chinese
products, including raw materials, construction machinery, agricultural equipment,
electronics, medical devices, and consumer goods. China quickly hit back with plans to
impose tariffs on more than 100 American products with a combined trading value of
over $50 billion.
| Asian Countries
Asian countries are facing a harsh situation where the US is about to break FTA, which
will harm the economy of that country. Conversely, most of these Asian countries do not
have the power to go against US, and impose a lot of tariffs just like EU is doing to the
United States. Hence Asian countries can be defined as the countries who might face
economic hardship due to this protectionist trade war.
| Mexico
Mexico put tariffs on American products ranging from steel to pork and bourbon on
Tuesday, retaliating against import duties on metals imposed by President Donald Trump
and taking aim at Republican strongholds ahead of U.S. congressional elections in
November. Mexico’s response further raises trade tensions between the two countries and
adds a new complication to efforts to renegotiate the trillion-dollar North American Free
Trade Agreement between Canada, the United States and Mexico.
VI. Future Outlook/Solutions
The first step to clear the chaos existing in the international society due to America’s
sudden protectionist trade policies and according trade war is to discuss about what is the
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direct harm that happens due to the United States’ certain policies. The US says that it is
not problematic to make protectionist policies since it is only the freedom of that
government. Thus, it is necessary to clarify the exact stakeholders and their
disadvantages. At the same time, however, it is true that this certain policy is threatening
other countries, and making more and more protectionist policies to come up from other
countries. Hence, it is the responsibility of the UN, as the biggest international
organization, to discuss how to settle this chaos down and make the world a more
cosmopolitan society where everyone can be satisfied.
Moreover, it is also a burden for the United Nations to consider long term harms such as
refugee problems. Since the protectionist trade policies of various countries might likely
strengthen their border security, it may lead to refugee problems. For instance, the United
States is also bringing up security policies of not accepting more refugees along with
protectionist trade policies, it is likely that the other countries from EU and South
America etc. will also block more refugees from coming. Another issue may be trade war
leading to a bigger war like the second Cold War. Therefore, the international society
should pay a lot of attention to this trade war and unstable condition to solve this problem
existing in the status quo and preventing side effects.
In addition, we should also contemplate on protectionist policies in poor countries.
Protectionism is often associated with, and criticized in the policies of poorer countries.
It’s what Sierra Leone, Zimbabwe and Iran do, and why they are ranked among the least
competitive business environments. Yet it is these countries from which Trump now
takes inspiration. Indeed, it was India’s fondness for protectionism – imposing 100%
duties on US motorcycles while the US had zero duties on motorcycles imported from
India – that ostensibly justified Trump’s renewed passion for tariffs on imported steel. It
is the third world countries that need protectionism but not the first world countries. It is
also a burden to discuss how the protectionism should be implied to poorer nations and
help them develop.
Furthermore, harms that will go to its own citizens due to trade restrictions also need to
be taken under consideration. For example, in the United States, Midwest manufacturers
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are suffering the consequences of huge cost increases and retaliatory tariffs, as
documented in the Omaha World-Herald. “Facing a 30 to 40 percent price increase is just
knocking the socks off us,” says Behlen Manufacturing Chairman Tony Raimondo.
Polaris Industries is considering following the lead of Harley-Davidson by moving its
motorcycle production from northwest Iowa to another country. “It’s becoming
increasingly difficult to export from the United States. It’s becoming increasingly
difficult to grow jobs here,” summarized Chief Industries’ Agri Division president Mike
Lewis.
VII. Conclusion
At the end of the day, such international trade war due to protectionist trade policies of
various countries, has brought chaos to the whole international society and is likely to
bring further social harms. Hence, it is crucial for the international organization,
especially ECOSOC, as the committee that deals with economic and social issues of the
nations, to discuss about this issue and come up with the best solution that can calm down
the society and prevent further harms from happening.
Within the committee, there are few necessary points to be discussed:
1) What is the exact problem that is happening in the status quo, and can happen later,
due to protectionist trade policies? Who are the stakeholders?
2) Is this a problem that must be solved, or is it a natural phenomenon?
3) If it is a problem, how should we solve this problem?
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