2 nd Main Committee – Economic and Financial
Venezuela
Divine Savior Holy Angels
Laura Lyons
Topic: Improving Fairness on the International Market to Facilitate Growth
It is very important for a local economy to be established in Post-colonial countries.
Economy is the foundation of a country. Without an economy, the country will eventually crumble, like how Germany started to after WWI until Hitler came and got the economy back on track. Having a strong international export based economy can strengthen local and national economies. For example, since Vietnam’s economic reform program in 1986, their exports have been better than ever. In 2007, the export revenues had risen by 60% more than in 1986. Their largest export marketers are the United States, Japan, and the European Union. By trading, this is helping all the economies to earn money, get materials they need that they don’t grow or manufacture in that particular country, and it helps supply people with jobs. Without trading, economies would suffer tremendously.
The IMF, WTO, and World Bank are a cause for poverty. They prescribe cutbacks,
“liberalization” of the economy, and resource extraction/export-oriented open markets as part of their structural adjustment. They provide too much intervention. Not only this, but they increase interest rates and get rid of subsidies. This definitely takes away sovereignty. This is a huge system of control because the role of the people is minimized so much that it almost disappears.
The IMF and World Bank should be there to help, not to control. Venezuela’s leader, Hugo
Chavez, says that he wants to pull out of the World Bank and will no longer recognize its decisions. Venezuela is taking a step to get out of the World Bank before it becomes too controlling.

It can be argued that debt forgiveness is necessary. Without it, developing countries are likely not to grow. Yet, it’s the tax payers who suffer. They are the ones paying for countries debt forgiveness. It does not seem to be fair. In theory, the IMF and World Bank are great ideas.
Their goal is to help developing countries and to get people out of debt, but in reality, it is actually making them poorer. Someone has to pay for the debt eventually and by forgiving it, it is just putting a temporary solution to it. Even if the debt was forgiven in developing countries, many of the circumstances would hardly change. There are worse problems than debt in developing countries that should be addressed first before the debt.