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Committee Description
The Economic Development and Financial Affairs Committee addresses pressing economic challenges that directly shape the financial well-being of nations and their citizens, from sovereign debt, inflation, and trade disputes to unemployment, unregulated financial technologies, and unequal access to capital and financial resources. The committee will examine how governments, international organizations, and financial institutions can respond to economic instability while fostering growth, resilience, and opportunities across both developing and developed economies. Delegates will be challenged to consider the real-world consequences of monetary and fiscal policies, balancing national interests and economic sovereignty with the growing interdependence of the global financial system. Ultimately, the committee seeks to develop pragmatic and cooperative solutions that strengthen financial systems, reduce economic disparities, promote stability, and advance sustainable economic development worldwide.
Topics
TOPIC A: The Rise of the Machines
The rapid adoption of artificial intelligence (AI) is transforming labor markets, business models, productivity, and the distribution of wealth. According to the IMF, approximately 40% of jobs globally are exposed to AI. This figure rises to 60% in advanced economies, compared with 40% in emerging-market economies and 26% in low-income countries. Therefore, the issue extends beyond job displacement. Countries must address differences in access to AI infrastructure, education, and social protection while determining how the economic gains created by AI should be distributed. In this committee, delegates will have to consider regulations on AI-driven automation, investments in reskilling programs, the establishment of new forms of social protection, and mechanisms to ensure that economic gains from AI do not further widen international and domestic inequality.
TOPIC B: The Global Fight Against Illicit Financial Flows
Illicit financial flows, including tax evasion, trade misinvoicing, fraud-related transfers, and other forms of illegal cross-border financial activity, reduce the resources available for public investment and sustainable development. The United Nations identifies reducing illicit financial flows as part of SDG Target 16.4, while UNCTAD and UNODC have developed methods to help countries measure these flows. The problem is particularly significant for developing economies. UNCTAD estimates that illicit financial flows from Africa average approximately $88.6 billion annually, equivalent to about 3.7% of the continent’s GDP. International efforts to combat these flows have intensified through initiatives such as the OECD’s 15% global minimum tax and UN efforts toward a broader global tax cooperation framework. This committee will examine these mechanisms and propose effective solutions to strengthen financial transparency, facilitate asset recovery, and promote fairer international tax systems.