WA Development Foundation

[Delfos]

Category: Free Trade
Strength: Significant
Proposed by: [nation]Auralia[/nation]
A resolution to reduce barriers to free trade and commerce.

Description: Recognizing that developing member nations often encounter significant difficulties in making capital investments and attracting foreign investment,

The General Assembly adopts the following resolution:

Article I: Mandate

    The World Assembly Development Foundation is established, mandated with promoting socioeconomic development in developing member nations through foreign investment and international trade.

Article II: Development Strategies

    The Foundation shall conduct extensive research relating to socioeconomic development in all developing member nations. All of the Foundation's research shall be released to the general public.

    Based on its research, the Foundation shall create a comprehensive development strategy for all developing member nations, including as necessary:

        capital investment projects designed to improve the infrastructure required to support future economic development and provide basic public services;

        governmental reforms designed to promote good governance and remove barriers to foreign investment and international trade, including but not limited to austerity measures, balanced budgets, trade liberalization, privatization and deregulation, sustainable development programs, democratic reforms, improved respect for fundamental human rights, and increased spending on basic public services as appropriate; and

        reasonable timelines for the completion of the aforementioned projects and reforms.
    Development strategies shall be drafted with the full participation of all the major stakeholders in the subject nation.

Article III: Sovereign Loans Program

    The Foundation is authorized to offer sovereign loans at its discretion to any developing member nation. Nations must have made a good-faith effort towards implementing the governmental reforms recommended by their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.

    Member nations shall use these loans exclusively to implement the recommendations from their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.

    Loans extended by the Foundation shall be entirely financed by willing member nations. The Foundation shall not be held liable in the event that a member nation defaults on a loan. A nation's share of all loan payments and influence on the Foundation's loan policy shall be proportional to the size of its contributions to the Foundation.

    No member nation shall unilaterally absolve itself of its sovereign debt. However, member nations are encouraged to provide debt relief to other member nations during times of national emergency and economic crisis. In general, member nations are encouraged to provide debt relief to other member nations during times of national emergency and economic crisis.

Article IV: Foreign Investment Insurance Program

    The Foundation is authorized to insure any foreign investment in developing member nations at its discretion when available insurance is inadequate. The grounds for a claim are limited to currency inconvertibility, expropriation, war, terrorism and civil disturbance, breaches of contract, and governmental failure to honour financial obligations.

    The Foundation shall charge premiums to investors sufficiently high to cover the risk of their investment and the expenses incurred in determining that risk.

    The Foundation shall take any reasonable course of action to avoid bankruptcy, and must maintain a liquidity ratio of at least 10% at all times.

[Delfos]

Proponent argument:

Hello, New Delfos!

Over the past few months, our delegation has been working hard on creating a multilateral trading framework for the World Assembly, passing a number of resolutions related to the topic: World Assembly Trade Rights (GAR #209), Resolving WA Trade Disputes (GAR #208) and On Multilateral Trade Talks (GAR #221).

Next on our list is another Free Trade resolution, but one that deals with investment in developing member nations rather than a multilateral trading framework. For many developing nations, sovereign loans and foreign investment are crucial to socioeconomic development, since they provide governments and local businesses with the capacity to make capital investments, which in turn lay the foundation for future economic development and the provisioning of basic public services.

Unfortunately, domestic issues like corruption, instability, poor fiscal policy and barriers to foreign investment often deter developed nations and private investors from making such loans and investments. My proposal, WA Development Foundation, takes three key steps towards solving this problem:
- First, the proposal creates a comprehensive development strategy for all developing member nations, including capital investment projects and governmental reforms, as well as timelines for completion of the aforementioned.
- The proposal also establishes a sovereign loans program for developing member nations who are making a good faith effort towards implementing the recommendations in their development strategy. Interested developed nations can finance loans for capital investment projects listed in a nation's development strategy, though exceptions can be made in times of national emergency or economic crisis.
- Finally, the proposal establishes a foreign investment insurance program, where private investors may have their investments in developing nations insured in certain cases.

As a result, developed nations and investors alike will be far more willing to make crucial loans and investments in developing nations, since they can be certain that their money is being used wisely, that developing nations themselves are taking steps to promote development through governmental reforms, or that they will receive compensation in certain cases if things don't turn out well.

Please approve the proposal here: WA Development Foundation.

Thanks,

Martin Russell
Chief Ambassador, Auralian Mission to the World Assembly
[nation]The Federal Republic of Auralia[/nation]

[Delfos]

Description: Recognizing that developing member nations often encounter significant difficulties in making capital investments and attracting foreign investment,

The General Assembly adopts the following resolution:

Article I: Mandate

    The World Assembly Development Foundation is established, mandated with promoting socioeconomic development in developing member nations through foreign investment and international trade.

Article II: Development Strategies

    The Foundation shall conduct extensive research relating to socioeconomic development in all developing member nations. All of the Foundation's research shall be released to the general public.

    Based on its research, the Foundation shall create a comprehensive development strategy for all developing member nations, including as necessary:

        capital investment projects designed to improve the infrastructure required to support future economic development and provide basic public services;

        governmental reforms designed to promote good governance and remove barriers to foreign investment and international trade, including but not limited to austerity measures, balanced budgets, trade liberalization, privatization and deregulation, sustainable development programs, democratic reforms, improved respect for fundamental human rights, and increased spending on basic public services as appropriate; and

        reasonable timelines for the completion of the aforementioned projects and reforms.
    Development strategies shall be drafted with the full participation of all the major stakeholders in the subject nation.

Article III: Sovereign Loans Program

    The Foundation is authorized to offer sovereign loans at its discretion to any developing member nation. Nations must have made a good-faith effort towards implementing the governmental reforms recommended by their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.

    Member nations shall use these loans exclusively to implement the recommendations from their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.

    Loans extended by the Foundation shall be entirely financed by willing member nations. The Foundation shall not be held liable in the event that a member nation defaults on a loan. A nation's share of all loan payments and influence on the Foundation's loan policy shall be proportional to the size of its contributions to the Foundation.

    In general, member nations are encouraged to provide debt relief to other member nations during times of national emergency and economic crisis.

Article IV: Foreign Investment Insurance Program

    The Foundation is authorized to insure any foreign investment in developing member nations at its discretion when available insurance is inadequate. The grounds for a claim are limited to currency inconvertibility, expropriation, war, terrorism and civil disturbance, breaches of contract, and governmental failure to honour financial obligations.

    The Foundation shall charge premiums to investors sufficiently high to cover the risk of their investment and the expenses incurred in determining that risk.

    The Foundation shall take any reasonable course of action to avoid bankruptcy, and must maintain a minimum liquidity ratio of 10% at all times.

I've underlined the changes. So by principle this wouldn't be a bad thing, the problem is that "we" know how twisted the IMF is and their ideologic agenda. Privatizing national resources is...perverse. I will still support this bill in hopes no ideology is enforced.