Dartmouth Model United Nations ECOFIN

Transcription

1 Dartmouth Model United Nations ECOFIN April 6 8, 2018

2 DARTMOUTH MODEL UNITED NATIONS CONFERENCE Thirteenth Annual Conference April 6-8, 2018 Scott Okuno Secretary-General Jessica Campanile Director-General Anjali Peddanna Chief of Staff Nina Kosowsky Chargé d Affaires Anne Pinkney Undersecretary-General of General Assemblies Lauren Dusseau Undersecretary-General of Special Committees Soham Basu Undersecretary-General of Current Crisis Committees Sam Zarkower Undersecretary-General of Historical Crisis Committees Bethany David Director of Technology Sam Wilson Director of Finances January 20, 2018 Dear Delegates: Dartmouth College Rockefeller Center Hanover, NH dartmun@dartmouth.edu DartmouthMUN.com On behalf of the entire Dartmouth Model United Nations staff, I would like to welcome and thank you for registering for the thirteenth annual Dartmouth Model United Nations conference this April We have been working relentlessly since the end of last year s conference to provide a better and more worthwhile Model U.N. experience for this winter s delegates. We are optimistic about this winter s conference and Dartmouth Model U.N. s future. DartMUN is a unique conference. We pair world-class delegations and dais staff members in smaller, more-interactive environments to facilitate an enriching experience for delegates of all skill levels. We believe DartMUN s active, small committees ensure delegates feel comfortable immersing themselves in a competitive but supportive environment that encourages trial by error and participation. Furthermore, DartMUN s well-trained staff is excited to work with your delegates this winter in committee to equip the next generation of college students with the skills to tackle complex global problems. With this said, Model United Nations is only meaningful when delegates are thoroughly prepared. To aid in your research preparation, your committee staff has spent hours researching, writing, and editing this Background Guide. The Background Guide serves as an introduction to your respective committee and an overview of the topics that you will be debating over the course of the conference. The Background Guide is intended to be a starting point for your research and is not, in itself, an adequate exposure to the complexities of your committee s topics. To be prepared, each delegate should do further research and focus on processing information through the lens of their respective country or position. If you are having trouble digesting all the information, the Background Guide contains relevant discussion questions that break down the topics. Also, as questions or ideas arise, do not be shy in contacting your committee staff via . Committee staff are knowledgeable and can help you better understand a particular topic or how your country fits into a larger international debate. More often than not, discussing the problem with another person can open up more paradigms and viewpoints that may guide you throughout the brainstorming process. As in years past, all delegates are expected to write a brief position paper before the conference to synthesize all of their preparatory research and analysis. Please see the position paper guidelines on the conference website for specific information about content, format, etc. Committee staff will collect position papers at the beginning of the first committee session on Friday evening, so be sure to bring a hard copy because delegates who do not submit position papers will not be eligible for awards. DartMUN is a student run, non-profit, all volunteer organization sponsored by he Dickey Center for International Understanding. Sincerely, Scott Okuno Secretary-General

3 Topic A: Regulating Cryptocurrencies History of Cryptocurrencies A cryptocurrency, such as Bitcoin or Ethereum, is a virtual method of exchange that can be used to make transactions, as with any other form of currency. Largerscale cryptocurrencies can be traded for fiat currency online, but most currencies are used primarily for transactions between individuals. Currently, there are over 1,000 cryptocurrencies in circulation with new ones frequently reappearing. 1 After the financial crash of 2008, people began to want a means of exchange that did not rely on a third-party intermediary, such as a central bank, to regulate transactions. Cryptocurrencies aim to eliminate this third party by giving the power to regulate these qualities to their users. Such cryptocurrencies are politically independent, and their value and supply are monitored and validated by the users who purchase and trade it, essentially removing the trusted third-party intermediary. At their core, cryptocurrency transactions are meant to be a quicker, cheaper, and more reliable form of payment than money tied to individual countries, especially for international transactions. 2 Modern cryptocurrencies, such as Bitcoin, Ethereum, and Ripple, were preceded by DigiCash, a for-profit company that was the sole manager of the currency. DigiCash failed in the 1990s, because it failed to cooperate with Microsoft on a partnership and was forced to sell DigiCash to licensed banks only. Most other pre-modern cryptocurrencies fell to legal pressure. Currently, only a few have made cryptocurrency transactions strictly illegal, but most cryptocurrencies statuses as a commodity and means of exchange varies. The UN has yet to take action regarding the rise of cryptocurrencies. Each cryptocurrency owner has a private key they use to access their wallet, in which their currency is stored on a particular computer. Cryptocurrency transactions are then recorded and managed in a blockchain, which acts as a virtual ledger for a cryptocurrency. A transaction takes approximately fifteen minutes to be recorded on a blockchain. 3 Every computer with a wallet for a cryptocurrency also stores a copy of the blockchain. Essentially, the blockchain acts as an automated trusted third party responsible for ensuring the legitimacy of financial transactions in the cryptocurrency. It tracks 1 Marr, Bernard. A Short History of Bitcoin and Crypto Currency Everyone Should Read. Forbes. 06 December Web. 27 December Weller, Chris. Bitcoin is Going Wild Here s What the Cryptocurrency is All About. Business Insider. 25 May Web. 09 November Cannucciari, Christopher and Smith, Prichard. Banking on Bitcoin. Directed by Christopher Cannucciari. Los Angeles: Periscope Entertainment, 2017.

4 currency ownership, and all transaction activity, and records of these are copied onto every copy of the blockchain. Transactions on the blockchain are recorded permanently, are irreversible, and also prevent double-spending, which is defined as spending money you do not own by use of forgery or counterfeiting by adding each transaction to the blockchain. 4 Miners, which are computers that are tasked with maintaining the ledger on the blockchain and verify blockchain transactions, are rewarded with new cryptocurrency for their work, thus generating more of the currency. Because the blockchain is an open ledger, managed by all of the currency owners, and protected by essentially ubreakable computer code the possibility for corruption by users of the cryptocurrency is largely reduced. Generally, cryptocurrencies are only prone to heavy financial loss if the blockchain data recording a transaction is lost or damaged. In order for this to happen, a hacker would have to compromise many machines across a vast network in one fell swoop, so these kinds of data breaches are extremely unlikely. 5 The Rise of Bitcoin Bitcoin, created by an entity under the pseudonym Satoshi Nakamoto, is regarded as the first modern cryptocurrency (Martucci). Created on January 3 rd, 2009, 4 PwC Financial Services Institute. Money is No Object: Understanding the evolving cryptocurrency market. PwC Web. 08 November shortly after Lehman Brothers went bankrupt during the financial crash. At the time, bitcoin was regarded by its early adopters as an honest currency, because it took the control that banks and other thirdparty intermediaries had to validate transaction, and returned it to the people using bitcoin. Bitcoin achieved this status because it was the first cryptocurrency to achieve a perfect blockchain. Its users identities are encrypted, which allows them to make anonymous transactions. Additionally, bitcoin is characterized by finite supply: there are only 21 million units of Bitcoin available worldwide, and each bitcoin can be divided into 100 million pieces. This built-in scarcity supports these currencies values and makes them inherently deflationary, more akin to gold and other precious metals 6. Looking forward, many questions remain about the future of bitcoin. Bitcoin exchange companies, such as Bitinstant, Bitstart, and Mt. Gox, have emerged, but these companies reintroduce the trusted third party to exchanges that cryptocurrencies are trying to eliminate. Further, when Mt. Gox went offline in January 2014, 850,000 bitcoins disappeared and $450 million was lost. In recent years, the value of one Bitcoin has skyrocketed. 5 Morris, David. The Rise of Cryptocurrency Ponzi Schemes. The Atlantic. 31 May Web. 1 November Martucci, Brian. What Is Cryptocurrency How It Works, History, and Bitcoin Alternatives. Money Crashers. n.d.web. 06 November 2017.

5 7 it aims to regulate the market and inadvertently shuts smaller startups out of the Bitcoin market. The Current Market The New York BitLicense, created by Benjamin Lawsky of the New York Department of Financial Services, is the first set of regulations imposed on bitcoin trade and use. Any entity involved in virtual currency transmission, whether for themselves or others; running a virtual currency business; or controlling, administering, or issuing a cryptocurrency must apply for a BitLicense. 8 Implemented in the summer of 2015, these guidelines aim to protect consumers, prevent money laundering, and boost cyber-security. 9 Unfortunately, the license is too expensive for most startups to afford. As of this writing, only three BitLicenses have been granted to Circle, Ripple, and CoinBase, though more companies have applied for them. 10 Critics of the BitLicense argue that it stifles innovation in cryptocurrencies, as At present, different countries have implemented varying legislation on cryptocurrencies, and there is no international standard that governs these currencies. However, since these currencies are not centrally monitored, there are concerns that the rise of cryptocurrency may lead to a rise in black market transactions. Since cryptocurrency transactions are both irreversible and unmonitored, cryptocurrency could facilitate activities such as financing terrorism and tax evasion. There has even been a rise in cryptocurrency Ponzi Schemes, as illegitimate currency companies can easily target a global category of aspirational investors who noticed the booming valuations of cryptocurrencies but who weren t savvy enough to understand the real thing and a sham. 11 One major barrier to widespread adoption of bitcoins and other cryptocurrencies is their potential to be used for illicit purposes. The most notorious example of this was the Silk Road, an online, dark web 7https://fortunedotcom.files.wordpress.com/201 7/06/btc_value.png 8 BitLicense Frequently Asked Questions. New York Department of Financial Services. n.d. Web. 29 December Freifeld, Karen. NY Regulator Issues First License for Bitcoin Company. Reuters. 22 September Web. 28 December del Castillo, Michael. Bitcoin Exchange Coinbase Receives New York Bitlicense. Coindesk. 17 January Web. 28 December Morris, David. The Rise of Cryptocurrency Ponzi Schemes. The Atlantic. 31 May Web. 1 November 2017.

6 market for drugs and banned substances, that sold drugs in exchange for bitcoins. Bitcoins were used for these purchases because bitcoin transactions are anonymous and unregulated, which arguably makes them a breeding ground for illegal activity. When the United States Department of Justice shut down the Silk Road in 2013, they claimed the 144,336 bitcoins (then valued at $48 million) and auctioned them off through 2014 and The Silk Road is the most notorious, but not the only, scandal of this type involving bitcoin, and these precedents raise concerns about the lack of regulations on cryptocurrencies as a whole. Without government or other third-party oversight, cryptocurrencies can easily be anonymously sold across borders to terrorist organizations, or used for other illegal purposes. Ultimately, one of the goals of cryptocurrency creators is to create a world where transactions can move globally for free. The applications of this type of system are immense. Cryptocurrencies ability to be traded across borders in a short amount of time could reduce the cost of sending money to family internationally immensely. Further, the approximately 50% of the world s population without bank accounts could use cryptocurrencies to make transactions without facing the barriers, such as fees to establish and maintain bank accounts, that are often imposed by a trusted third party if the currencies became widely accepted for everyday purchases. 13 Also, because some 12 Roberts, Jeff John. The Feds Just Collected $48 Million From Seized Bitcoins. Fortune. 02 October Web. 29 December cryptocurrencies, like bitcoin, are inherently deflationary, under a proper framework they could be both a safer and more effective store of value and means of exchange than highly inflated currencies. Bloc Positions Western Bloc The majority of Western nations, such as those in the European Union, the United Kingdom, Canada and the United States, have allowed cryptocurrency markets in their borders to develop, although the status of cryptocurrencies as legal currency varies per country. Barring the BitLicense in New York, these countries have passed minimal legislation regarding the laws and protocols of using cryptocurrency, such as Bitcoin; however, cryptocurrency is not widely used yet. Many of these countries have classified bitcoin as a commodity, which means that it is taxed and regulated under existing financial laws. Many industries in these regions are also looking for ways to use blockchain technology in other sectors, such as healthcare, banking and government. Asian Bloc Most countries in Asia allow their citizens to own cryptocurrencies, but vary on whether or not these currencies are accepted as forms of payment. In countries such as South Korea and Japan, bitcoin is regulated under existing financial laws, and there are Bitcoin ATMs throughout their major cities. India has announced that it has no plans to regulate bitcoin. 13 Cannucciari, Christopher and Smith, Prichard. Banking on Bitcoin. Directed by Christopher Cannucciari. Los Angeles: Periscope Entertainment, 2017.

7 Countries that have made Bitcoin illegal Bolivia, Ecuador, Iceland, China, Nepal, and other countries banned bitcoin in different capacities. The Ecuadorian government made bitcoin illegal to prevent competition with the recently established an in-state electronic money system. Bangladesh will prosecute those who use bitcoin and other cryptocurrencies under the country s anti-money laundering laws. China has banned official institutions from using bitcoins, but does not prohibit individual citizens from trading them. 14 The bitcoin ban in these countries is largely to protect against money laundering and capital loss. 15 cryptocurrency markets and transactions? 2. How can we ensure cryptocurrencies aren t being used for black market or other illegal transactions? How do we hold those who use cryptocurrencies for these purposes accountable? 3. To what extent should governments be involved in monitoring cryptocurrencies? Does this stifle innovation? 4. How can the international community attempt to increase the public s knowledge and understanding of cryptocurrencies? 5. How should countries respond to the different cryptocurrencies being launched by tech entrepreneurs? Questions to Consider 1. Should there be international standards in place that regulate 6. Do cryptocurrencies allow more of the world s population to participate in the growing global economy? How can cryptocurrencies be used to benefit not only those in developed economies, but the developing world as well? 14 Cryptocurrencies by Country. Thomson Reuters. 25 October Web. 29 December p-content/uploads/sites/3/2017/10/world-of- Cryptocurrencies-graphic.pdf

8 Topic B: Gender Inequality in the Workplace Topic Overview Gender inequality has been a persistent issue in working conditions as long as women have been able to enter the work force. This inequality has primarily been measured by the gender pay gap, which is the difference in wages men and women receive for completing the same amount of work at the same quality. This issue spans the majority of the world, with few countries approaching true gender parity in the workforce. This gap differs between countries, though globally the gender pay gap is at 59%. There are a number of factors that contribute to the gender pay gap. One main factor is slow economic growth keeping women out of the workforce by limiting available opportunities. In addition, increased automation has begun to take over many jobs in sales and administration, which are historically held by women. In addition, there have been few policy changes to address issues like the wage gap. Social factors also play an issue. In most countries, women are still expected to be the primary keepers of household and also to take care of child rearing. This puts extra stress on women in the workplace and makes it difficult to handle both a career and childcare, limiting women s growth and achievement within the workplace. In the past 11 years, the gender pay gap has only decreased by 4%. At the current rate with the addition of other mitigating factors, the World 16 andpresent/gender-pay-gap-and-struggle-equal-pay Economic Forum predicts that it will take 170 years to close the gap. Last year, the World Economic Forum predicted that it would take 118 years. Despite the fact that research has shown that gender-diverse workplaces increase revenues by 15%, the gap is persistent and unlikely to close in the near future. History and Background The fight for equal pay began at different times for different countries. In England, women were fighting for equal pay as early as the 19 th century 16. During WWI, the tension increased as women began taking over men s jobs, yet received significantly lower pay. One of the first strikes was led by female train conductors in 1918, which resulted in an equal pay settlement. In the 1920s and 1930s, women received lower unemployment benefits in addition to lower wages. The issue of equal pay gained momentum especially during WWII, when again women took over men s jobs. Progress was made in 1968 when women who worked at the Ford Car Plant were being paid only 87% of the wages of their male counterparts. After 3 weeks on strike, they returned to work for 92% of male pay 17. Though still not equal, this strike helped provide momentum for the passage of the Equal Pay Act in However, the act was not formally implemented until Employers are still able to evade the regulations imposed by the equal pay act, however, by changing job titles to justify unequal pay. Today, more than 120 years after the fight for equal pay began, women are still being paid less than their male counterparts. 17 ibid.

9 The history of the wage gap in the United States is similar. During WWII, many women stepped in to fill vacant jobs that soldiers had left behind. Despite the National War Labor Board urging employers to make "adjustments which equalize wage or salary rates paid to females with the rates paid to males for comparable quality and quantity of work on the same or similar operations", employers did not heed this advice 18. In addition, once soldiers returned from war, most women lost their jobs. Until the 1960s, newspapers advertised different jobs based on gender. Despite identical listings, women s jobs were on a different wage scale and had significantly lower salaries. The Equal Pay Act of 1963 made it illegal to pay women lower wages for the same work, yet employers still found loopholes to avoid paying women the same wage. Two landmark supreme court cases strengthened the Equal Pay Act and helped work farther towards equal pay. Schultz v. Wheaton Glass Co. (1970) ruled that jobs needed to be substantially equal instead of identical to receive the same pay, and Corning Glass Works v. Brennan (1974) ruled that women could not be paid less simply because that was the going market rate 19. However, the gap still remains. Though it has increased from the 59% women were paid in 1963, it still only remains at 80.9%, and the disparity is larger for women of color. still subjected to more archaic attitudes. Women under 25 who work full time earned 93.8% of a man s salary while those who were earned 75.2% 20. The pay gap varies as well. In the United States, the pay gap can change by as much as 11% between states. Race also influences the gap, and women of color have a much larger wage gap, sometimes of nearly 20% 21. Education, however, does not seem to play a large role in the gender pay gap. Women at all educational levels face a wage gap. Current Situation The World Economic Forum publishes an annual report that details how close the world is to gender parity in the workplace. This past year, those figures have decreased, showing only 68% gender parity in comparison to last years 68.3% 22. This is the first time in the past 11 years that this figure has decreased. The workplace gap measures wage equality, seniority, and labor force participation by gender. The WEF has calculated that the workplace gap will now take 217 years to close instead of last year s estimate, which was The 2017 report covered 142 countries, and the gap increased in 68 of the countries surveyed. Nordic regions have the highest levels of parity, with western Europe overall having the lowest levels, followed by North America and Eastern Europe. Factors There are several factors that influence the wage gap and inequality in the workplace. One is age. Women who are older may hold jobs that are ibid. 20 ibid ibid.

10 Women in leadership positions have also been historically underrepresented. Women represent fewer than 50% of the leadership roles in every industry analyzed. In addition, over the past decade the proportion of women in leadership positions has increased by just 2% 24. Questions to Consider 1. What are possible solutions to increase gender parity in the workforce? Are there any policies to enact? 2. What is the economic impact of low gender parity? How would increasing gender parity influence both regional and global economies? 3. Which blocs would benefit most from increased gender parity? Why? 24