[Doatia]

Ambassador Neal, a tall dark skinned man, with a large afro, black with a spot of gray in the front, and his signature white bifocal prescription glasses, entered the Chamber. Pursuing the creation of a World Development Bank via LIDUN has been a priority for him since his appointment to LIDUN several weeks ago, after the election of Chancellor Recardo, and his subsequent nomination to the post.

Having spent several weeks picking up from the previous Doatian Ambassador to the EDC, now retired, Ambassador Neal worked to craft a proposal for a WDB, in coordination with the entire Recardo Administration.

Wishing to open the discussion on the topic in this council before officially making the proposal, excited to listen to the questions, comments, and concerns from his esteemed colleagues on the council, he rose to be recognized:

"Thank you, madam clerk, for recognition and thank you to my esteemed colleagues for their attendance here today. I'd like to begin a discussion regarding the creation of a world development bank, an agency which would be under this council's purview.

An agency which could bail nations out who are on the brink of economic collapse, prevent defaults by offering emergency grants and loans, provide economic aid and stimulus, invest in small businesses and industry-specific infrastructure, and otherwise support the economies of member nations, especially those with struggling economies.

We believe, in order to ensure full cooperation amongst member nations, in order to be a recipient of said support and relief, one must be a member of the WDB.

We also believe the WDB, while under the oversight of this council, should be governed by a board of contributors. Nations which contribute at least 3% of their annual GDP to the WDB annually would be guaranteed a seat on said board.

In order for a member nation to qualify, they must meet certain qualifications:
- be a direct contributor to the WDB fund (at least 3% annual GDP)
- have at least 30% citizens living in poverty
- be facing economic collapse/default (must agree to conditions for improvement set by board, unless they contribute 5% or more to the WDB's revenue )
- be at war or have citizens facing humanitarian crises
- have less than 3 million citizens
- be otherwise approved by the board
- be a nonprofit organization, which must be vetted by the board, applying for a grant anf requesting emergency aid

We also see the need to create an expedited process for requesting emergency aid, in times where there is no time

We believe funding should aim to be 50% from LIDUN, and 50% from individual contributors.

We believe board seats should be divided based on contribution to the WDB's general fund.

And we believe minimum budget obligations should be set to improve living conditions for all people within the IDU, with an annual mandate to the board to set 3 priorities for the year, which 40% of the budget must be dedicated to. An additional 25% of the budget should be reserved for emergency situations.

The board would then have the authority to create programs and initiatives, approve requests for aid, execute rules and guidance set by this council, and set additional guidelines for relief/aid. 

All of these suggestions are subject to reconsideration and the actual proposal is still being crafted, so we welcome everyone to weigh in.

We hope the creation of this agency, and the good work that will follow will lead to (Doatia's priorities):
- at least a 30% reduction in poverty in the IDU
- at least a 20% increase in access to quality and affordable healthcare across the IDU
- at least a general increase of 30% of access to education for students aged 3-18, and a specific 40% increase for female students
- at least a 25% reduction in slum-living, and a 30% decrease in homelessness
- an average of a 20% improvement of struggling nation's GDP's over 5 years"
- an average 5% increase in military funding for nations with 50 million, or less, citizens

[Doatia]

Frustrated by the silence from his colleagues, Ambassador Neal rises again, sweat beating down the side of his face.

"It is regrettable that such an urgent and necessary proposal before the famed LIDUN body, and delegations from around the world are silent on the matter of a World Development Bank.

Whether it's building up 3rd world nations, investing in economic growth and cooperation, being an enforcement body of LIDUN in the implementation of sanctions, or assisting nations facing disaster, crisis, or fiscal meltdown.

It is essential and necessary for the world order, for stability, for LIDUN.

I ask of my colleagues, represent in your participation the reality of the importance of such a body, should the World Development Bank be discussed, debated, officially introduced, discussed and debated again, voted on, and hopefully implemented.

Time is of the essence. Each procrastinated moment represents lost opportunity.

Thank you!"

He pulled out a purple hankerchief, wiped sweat from his brow, and took a seat.

[Doatia]

Recognizing the lack of discussion, Ambassador Neal rises again

“My fellow delegates, my friends. I rise today to officially introduce and propose the LIDUN Central Bank Creation Act.”

The Ambassador takes his seat.

The LIDUN Central Bank Creation Act

An act to support global economic development and enforce LIDUN levied sanctions

The League of International Democratic Union Nations,

BELIEVING it necessary to have a central bank that contributes to and regulates global economic investment;

RECOGNISING that a central body that oversees trade and economic alliances within LIDUN is necessary for prosperity and readiness;

ACKNOWLEDGING the need for a central LIDUN body capable of enforcing economic sanctions placed on members by the Security Council;

Hereby creates the LIDUN Central Bank:

§1 Appointment of the Bank Manager

1. The President of LIDUN is required to appoint a Bank Manager no later than the final day of every January and June of each year.

2. The Bank Manager shall hold their post only until the conclusion of a 6 month term:
a. Recognizes the two terms for a calendar year as from February 1st to August 1st and August 1st to February 1st
b. The Bank Manager must be a representative from a member state of LIDUN that also serves as a member of the Board of Governors

3. The Bank Manager shall be responsible for:

a. Enforcing sanctions levied by the Security Council on relevant members
b. Negotiating LIDUN economic and trade agreements
c. Advocating for and creating relief and/or aid packages to be allocated to member nations in crisis.
d. Managing Bank revenues and spending
e. Operating an Emergency Loan program to provide assistance to the governments of member states experiencing budget crisis
f. Overseeing the credit rating of member states based on revenue vs spending (deficit/surplus) and repayment of loans
g. Charged with executing Bank policy

§2 Creation of the Board of Directors

1. Creates the LIDUN Bank Board of Directors:
a. Establishes the Board of Directors
b. Charges the Board of Directors with operating the Bank and overseeing the Bank Manager
c. Mandates that the Board provide a performance report on the Bank Manager to the President of LIDUN at least once per term and at the request of the President
d. Provides the Board of Directors with the authority to set Bank policies

2. Establishes the process by which Directors are selected
a. Charges the LIDUN President with nominating 5 Directors, who are to be approved by the LIDUN Economic and Development Council. If nominees fail to get approved, charges the Council with filling vacancies
b. Charges the Economic and Development Council to select 6 additional Directors

§3 Supremacy

1. Supremacy:
a. Establishes this Bank as the central bank of LIDUN
b. Mandates any other global banking institution to be in accordance with the central bank’s policies

§4 Responsibilities and Sanctions:

1. Sanctions
a. Recognizes the process in which sanctions are levied laid out in the LIDUN Charter
b. Hereby grants than central bank the authority and responsibility to enforce LIDUN sanctions and provide an effectiveness report to the LIDUN Economic and Development Council and/or LIDUN President when requested

2. General Responsibilities
a. Encourage, negotiate, and regulate global investment
b. Regulate and encourage trade within LIDUN
c. Advocate for and create relief and aid packages for LIDUN members in crisis
d. Responsibly manage Bank revenue and spending
e. Create and operate an Emergency Loan program for LIDUN members with high and unsustainable deficits and/or budget crises
f. Establish a system to determine credit ratings of LIDUN members based on estimated revenue and spending (deficit vs surplus), as well as repayment of loans
g. Execute Bank policy as determined by the Board of Directors, Bank Manager, and/or LIDUN’s Economic and Development Council

§5 Budget

1. Establishes the initial Budget of the central bank
a. Establishes that $500 Billion annually from LIDUN to be provided for bank operations
b. Mandates that LIDUN member nations contribute 1.5% of their GDP to the bank annually
c. Allocates $250 Billion towards economic relief for struggling economies
d. Allocates $1 Trillion towards an Emergency Loan program

2. Mandates the Board of Directors to establish a budget for the bank each term
a. Charges the Bank Manager with executing the budget

§6 Opt-out

1. Opt-out
a. Allows LIDUN members to opt-out of being under the bank’s jurisdiction and exempt from mandated contributions by having their delegate to the Economic and Development Council to state their intention to opt-out
b. Assumes all LIDUN members aren’t opted-out upon this proposal’s passing
c. Acknowledges that LIDUN levied sanctions are still to be enforced against member nations even if they opt-out

[Haesan]

Economist Ha Seo-jun rose to address the EDC, a look of concern across his face.

"Fellow delegates, the delegation from Haesan would like to address a number of concerns it has with the proposal put forth today.  Primarily, we would like to address the premise of this 'Central Bank Creation Act'.  Our primary functional concern is that this is a misnomer, that it does not actually create a central bank, which is commonly defined as an organization designed to orchestrate monetary policy, set interest rates, and manage inflation.  Rather, we would like to acknowledge this serves to create a development bank along with a monetary fund.  This is for the better, because I, along with what I presume are most economists in this room, believe the creation of a legitimate central bank across such a varied geography to be most impractical.

Given that we now acknowledge that we are discussing a hybrid development bank and monetary relief fund, we now face our second concern, which is that of redundancy.  Many of the nations here assembled are members of two organizations, the Global Development Investment Bank, headquartered in Laeralsford, which seeks to provide development support from its member states to countries in need, along with the International Monetary and Trade Organization, headquartered in Suyang, which as one of its aims helps to provide structured loan relief for nations undergoing a monetary crisis.  These well established and well endowed organizations already provide significant support for the objectives laid out in developing this proposal, namely the reduction of global poverty and assistance in restructuring for crisis-ridden economies.  These organizations have narrower mandates, or at least define separate arms with specific aims, which allows them to effectively and efficiently achieve these goals.  However, §3.1b renders these organizations invalid by giving this newly founded organization primacy over them, and instead allocating a large pool of money with no clear method of effecting any realizable change.  We would be effectively hamstringing these valuable organizations in favor of an unknown .  This seems foolish.

Furthermore, our tertiary concern is that of corruption and embezzlement.  1.5% of global GDP is on an unfathomable order of magnitude for an organization of this type to handle.  It is a budget considerably larger than that of the rest of LIDUN, by several orders of magnitude.  Moreover, $500 billion directly from LIDUN is already well over 100 times the organization's operating budget [OOC note: the budget of the UN is about $3.5 billion].  Billions of dollars could go missing and there is the possibility no one could even notice.  There needs to be much greater oversight and regulation of a body with such responsibility, but as we increase that oversight, we also must understand that the efficacy of the proposed body will decrease as lag times increase on implementing proposed policies.  As such, a nation like ours would have no interest in joining, as we are unwilling to let a significant chunk of our GDP, equivalent to about half of our total military spending, be implemented by officials we cannot fully verify.

Which leads us to our final concern, that we would still be on the hook for supporting this organization even if we were to opt out.  Increasing the LIDUN budget to the order of hundreds of billions of dollars even without our participation in the bank would mean a serious increase in our membership dues, and would make us have to seriously reconsider our participation in this organization as a whole.

As for our suggestion, we recommend that this proposal be withdrawn.  It is bloated, unrealistic, and damaging to the IDU's existing international development initiatives.  We would advise that any future proposal along similar lines be significantly reduced in scope.  If this comes to a vote, we will be voting no, likely regardless of any potential amendments.  We now yield the floor."

[Doatia]

Ambassador Neal rises once more.

“This proposal is flawed and unlikely to pass. I withdraw the proposal on behalf of the Doatian delegation. The consensus among our delegates is that LIDUN is not an institution that works for Doatia. We envisioned something a little different upon our entrance to the global stage. To my colleagues and fellow delegate, I thank you. Doatia has much to consider over the coming days”

Ambassador Neal leaves the room.