[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