United Nations Simulation Conference 2023
Economic and Social Council (ECOSOC)
Background Guide
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TABLE OF CONTENTS
Sr.No. Topic Page
1. Letter from the Chairs 3
2. Introduction to the Committee: 4
a. About
b. Functions and Powers
3. Agenda 1- “The question of de-dollarization of 6
economies and the possible repercussions”
a. Introduction to the Topic
b. Key Parties Involved
c. Questions to Consider
d. Bibliography
4. Agenda 2- “The question of regulating the 12
implementation of Artificial Intelligence (AI) in
economic and social development efforts”
a. Introduction to the Topic
b. Main Issues of Concerns
c. Key Parties Involved
d. Bibliography
2
Letter from Chairs
Dear Delegates,
It is our pleasure to preside over this Economic and Social Council for
the 18th edition of the United Nations Simulation Conference.
UNSC has always been a competitive and lively conference, and as we
hope as we transition to a 2-day conference this year it will only
strengthen the spirit of camaraderie, and enable you to work on solutions
together, both of which we look forward to in MUNs.
While we definitely look forward to fun-filled committee sessions, we
hope you will take the issues under review seriously. As we convene on
the 17th of June we will be discussing issues that are gaining
international recognition, and require urgent discussion and policy-
making.
As a tradition of UNSC, we will continue to have the committee sessions
on our first day examined by external judges, and delegates will not be
allowed to research during the conference (no internet connection will
be provided for the same). We look forward to seeing how you meet this
challenge!
Wishing you the very best with your preparations,
With warm regards,
Thahir Ahmed, Mizna Nabil and Fathima Riham
Chairs of the ECOSOC.
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The Economic and Social Council
Since its establishment in 1945, the ECOSOC committee has emerged as an indispensable force
within international governance, diligently addressing the multifaceted challenges of sustainable
development while nurturing economic, social, and environmental progress. With a remarkable
trajectory spanning over seven decades, ECOSOC has evolved into a global platform,
encompassing 54 member states and 5 regional commissions, amplifying the voices of nations
and fostering collaborative endeavors worldwide.
Stepping into the intricate tapestry of global affairs, ECOSOC assumes a central role,
orchestrating a symphony of coordinated efforts to confront pressing issues. Quantitatively
speaking, its impact is profound, with billions of dollars in development aid allocated to catalyze
transformative initiatives, stimulate investment in vital infrastructure projects, and drive
sustainable change across diverse sectors, including poverty eradication, healthcare, education,
and access to clean water.
As a catalyst for change, ECOSOC nurtures partnerships and cultivates dialogue, deftly
navigating the intricate nexus between economic growth, social welfare, and environmental
stewardship. As a forum for member states, experts, and stakeholders, it fosters the exchange of
knowledge, the sharing of best practices, and the charting of innovative pathways towards
inclusive development. Ensuring policy coordination, promoting coherence, and offering
essential guidance across a wide spectrum of issues, ECOSOC spearheads a unified global
approach to complex challenges.
Beyond its pivotal role in fostering collaboration, ECOSOC serves as a conduit for collective
action, overseeing and coordinating the work of specialized United Nations agencies, funds, and
programs. By harmonizing efforts and facilitating cooperation, it optimizes the impact of the
United Nations system, forging synergistic pathways towards shared objectives, and generating
tangible outcomes that enhance the lives of millions worldwide.
Unwavering in its commitment to advocacy and inclusivity, ECOSOC amplifies the voices of
marginalized communities, nurturing constructive dialogue between governments, civil society,
and the private sector. It champions equity and ensures diverse perspectives are integrated into
decision-making processes, propelling an inclusive agenda that leaves no one behind on the
transformative journey towards sustainable development.
In conclusion, the ECOSOC committee, born in 1945, stands resolute as an influential pillar of
international governance, yielding quantitative impacts through its extensive mandate. With its
diverse membership, regional commissions, and a legacy of global collaboration, ECOSOC
remains a steadfast driver of economic, social, and environmental progress. Guided by its
commitment to policy coordination, partnership cultivation, and amplifying marginalized voices,
ECOSOC charts a course towards a more inclusive and sustainable future for all.
4
“The Question of De-Dollarization of Economies
and the Possible Repercussions”
De-dollarization refers to a process in which countries seek to reduce their
dependence on the US dollar as a reserve currency and shift towards other
currencies. This does not necessarily indicate an imminent collapse, but rather
reflects ongoing shifts in the global financial landscape and changes in the
economic policies of major countries. Moreover, dollarization is not a new
phenomenon and has been underway for some time. While dollarization may bring
challenges and uncertainties, it also offers opportunities for increased
diversification of currencies in reserve portfolios, reducing dependence on a single
currency, and promoting greater stability in the global financial system.
The idea that the infamous U.S dollar could lose its dominance was unthinkable.
But recent sanctions by the U.S and its allies on Russia's currency reserves have
made obvious to the non-Western world the kind of weaponization and hegemony
they are susceptible to should they continue to hold vast amounts of dollar
reserves. Therefore, viewing the Russian example as a cautionary tale, they have
begun accumulating gold instead. As International Crisis Group co-chair Frank
Giustra said, "Financial systems are built on trust and, if they are weaponized, they
lose the trust necessary to retain their dominance".
This de-dollarization is happening in parallel to China's determined efforts to
amplify the yuan's presence, entering into multiple trade agreements with countries
like Brazil, Kazakhstan and Pakistan that oblige non-dollar transactions.
Furthermore, a rising alliance called the BRICS is jeopardizing the dollar’s
position on the throne. What began as an optimistic label for growing economies of
the global south - Brazil, Russia, India, China and South Africa - has now evolved
into an intergovernmental platform for collaboration, seeking to influence global
growth and development. Talks of a BRICS currency have been brewing, and
experts argue it is not unrealistic to imagine these countries using only this
currency for trade. They are well-cushioned by a balance of payments surplus, and
a BRICS currency union would be distinguished from any before it in that it would
not be among countries united by shared territorial borders, its members would
likely be able to produce a wider range of goods than any existing monetary
union.
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Major Countries Involved:
United States of America:
Global trade has been dominated by the U.S. dollar for decades, not just because it is the world's
biggest economy, but also because oil, a key commodity needed by all economies, is priced in
the greenback. The dollar is also the currency used to price and trade most commodities. The
U.S. dollar accounted for 58.36% of global foreign exchange reserves in 2022, according to data
from the IMF’s Currency Composition of Foreign Exchange Reserves (COFER). Comparatively,
the euro is a distant second, accounting for about 20.5% of global forex reserves while the
Chinese yuan accounted for just 2.7% in the same period. De-dollarisation could affect the
purchasing power and standard of living for Americans.
Brazil:
"Why can't we do trade based on our own currencies?" - Luiz Inácio Lula da Silva, Brazil's
president. His stance on the issue is clear cut, with the president urging countries to move away
from the dollar and their significant presence in the possible evolution of a new currency -
BRICS (Brazil, Russia, India, China and South Africa). The countries call to shed dollar
dependence is also a result of their strong relations with China. The two countries' growing
economic relations has encouraged these countries to promote their currency and call an end to
the domination of the US dollar.
China:
When it comes to the subject of de-dollarization, China is not playing games; in reality, both
China and Russia have been moving away from the so-called dominant currency for years. For
the past year, the nation has virtually exclusively purchased Russian oil using its own currency,
the Yuan. The yuan, commonly known as the renminbi, officially replaced the dollar in March as
the most widely used currency for cross-border transactions in China. CIPS, China's Cross
Border InterBank Payment System, is actively developing and has a good chance of challenging
SWIFT for global dominance. The CIPS was introduced by China's central bank in 2015 with a
view to replace the SWIFT and hope to internationalize yuan.
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Russia:
In the aftermath of Russia's unprovoked invasion of Ukraine, many Russian banks were banned
from using SWIFT, consequently leading to a lean towards a new currency and the destruction of
the rival currency. In recent years Russia has been actively promoting the use of other currencies
majorly owing to the strained relations with the U.S. In 2019, Russia's central bank reported that
the share of US dollars in Russia's international reserves had dropped to 23%, the lowest level in
a decade. This shift away from the dollar is part of Russia's broader efforts to reduce its
dependence on the US-dominated global financial system and promote the use of alternative
currencies such as the euro and the Chinese yuan. This move is part of a broader trend among
many countries seeking to reduce their reliance on the US dollar as the dominant global reserve
currency.
Questions to Consider:
1) Is this a concern that poses immediate threat to global trade? If yes, does it require
international regulation to ensure stability and security of global trade?
2) How would de-dollarization affect our progress towards the Sustainable Development
Goals, particularly SDG 8, 9 and 17?
3) While de-dollarization could level the financial playing field, what possible repercussions
could it have?
4) Will small and developing nations be able to trade smoothly in their local currencies
should they choose to de-dollarize?
5) By the same motion, would it promote or stamp down on financial and social inequality,
both in the context of international development as well national or regional wealth
inequality?
6) How would it affect the standard of living around the globe? What can expect in the
values of dominant currencies?
Bibliography:
https://www.businessinsider.com/dedollariztion-china-yuan-russia-oil-imports-sanctions-2023-5
https://www.ft.com/content/669260a5-82a5-4e7a-9bbf-4f41c54a6143
https://www.reuters.com/markets/currencies/vast-china-russia-resources-trade-shifts-yuan-
dollars-ukraine-fallout-2023-05-11/
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“The Question of Regulating the Implementation
of Artificial Intelligence (AI) in Economic and
Social Development Efforts”
In an era characterized by boundless innovation, the emergence of Artificial
Intelligence (A.I.) has ignited a profound shift in the technological landscape,
capturing the world's attention with its mesmerizing potential. As we traverse the
realm of intelligent machines, the question of regulating A.I. looms large,
presenting a complex tapestry of opportunities and challenges that demand our
careful consideration.
The pulsating heartbeat of A.I. technology resonates across diverse sectors,
permeating industries such as healthcare, finance, transportation, and more. From
self-driving cars that navigate with precision to virtual assistants that seamlessly
streamline our daily tasks, A.I. systems have woven themselves into the fabric of
our lives, transforming the way we live, work, and interact.
Yet, amidst the awe-inspiring achievements lie significant questions and concerns.
The rapid advancements in A.I. have raised ethical, legal, and socio-economic
dilemmas that warrant global attention. How can we ensure the responsible and
ethical use of A.I.? What measures should be taken to safeguard privacy, security,
and human autonomy in an increasingly automated world? How can we address
the potential impact of A.I. on employment, inequality, and societal cohesion?
The pursuit of regulation presents a delicate balancing act. On one hand, we must
foster an environment that encourages innovation, research, and development of
A.I., harnessing its transformative power to solve complex challenges. On the other
hand, we must establish safeguards to mitigate risks, protect human rights, and
ensure that A.I. serves the best interests of humanity as a whole.
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Key Issues of Concern:
1. Ethical Quandaries: At the heart of A.I. regulation lies a web of ethical complexities.
As machines become increasingly autonomous and intelligent, questions of
accountability, transparency, and fairness emerge. How do we ensure that A.I. systems
make ethical decisions? Who bears the responsibility when A.I. algorithms produce
unintended consequences or perpetuate biases? Striking a balance between innovation
and ethical imperatives demands innovative solutions that prioritize human values and
rights.
2. Privacy and Data Security: The omnipresence of A.I. systems necessitates an
unwavering focus on privacy and data security. A surge in data collection and analysis
raises concerns about the misuse, unauthorized access, and potential breaches of personal
information. How can we protect individuals' privacy rights in an era of pervasive A.I.
surveillance? What measures should be implemented to safeguard sensitive data from
malicious actors or unintended exposure?
3. Workforce Disruption: The rise of A.I. technologies pose profound implications for the
global workforce. Automation and machine learning threaten to disrupt traditional job
markets, potentially displacing workers and exacerbating inequality. How can we
mitigate the impact of A.I. on employment? What strategies can be employed to reskill
and upskill workers, ensuring a smooth transition to the A.I.-enabled economy?
Balancing economic progress with social well-being remains a critical challenge.
4. Bias and Discrimination: A.I. systems are only as unbiased as the data they are trained
on. Unintentional biases can seep into algorithms, perpetuating discrimination and
exacerbating societal inequalities. How can we address the issue of biased algorithms and
ensure fairness and equity in A.I. decision-making processes? Striving for diverse and
representative data sets, coupled with robust auditing and accountability mechanisms,
will be key to combating bias.
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5. International Collaboration and Governance: The regulation of A.I. transcends
national boundaries, necessitating international collaboration and harmonization of
standards. How can nations come together to create a cohesive regulatory framework that
allows for innovation while preventing a patchwork of conflicting rules? Establishing
effective mechanisms for global cooperation, information sharing, and coordination will
be imperative in navigating the complex landscape of A.I. governance.
Major Countries Involved:
United States of America:
The U.S Department of State places a high priority on the development of artificial intelligence
and thus engages in various bilateral and multilateral discussions to help promote, develop, and
use the growing technology of artificial intelligence responsibly. The USAID (the United States
Agency for International Development), GPAI (Global Partnership on Artificial Intelligence) and
OECD (Organization for Economic Cooperation and Development) are some organizations
working on the same. However, despite the various policies and motives behind the promotion
and development of artificial intelligence in the states, many describe the country's approach to
this technology as risk-based, dangerous, and highly distributed among federal agencies.
Italy:
Italy is also an investor in the growing AI technologies; they have worked closely with the EU to
formulate various policies and initiatives in line with promoting artificial intelligence. The draft AI
strategy aims to foster innovation and competitiveness in the Italian economy by leveraging AI
technologies in various sectors such as healthcare, transportation, and energy. Italy believes
that while AI has the potential to revolutionize many industries, it must be used responsibly and
ethically to protect the rights and privacy of individuals. As such, they are actively working with
government agencies and tech companies to develop regulations and guidelines for the ethical
guidelines of use of A.I in Italy.
Russia:
Russia recognizes the potential of AI and its role in shaping the future. Its implementation can be
seen in various sectors and industries within Russia. Based on the technologies already being
used and their positive impact, Russia sees wide and promising prospects for the future
development of AI within its industries. In addition, scientists in Russia are considering the
benefits of using AI to militarize the economy. However, Russia is skeptical of Western-led
regulation and prefers a more decentralized approach that allows for national autonomy and
innovation. Russia may also use AI for surveillance and propaganda, which raises concerns
about its intentions and impact. As such, Russia recognizes the need for continued research and
development to ensure that AI is used in a safe and responsible manner.
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Questions to Consider:
1) Could AI be used to exploit the privacy and confidentiality of individuals from
disadvantaged backgrounds?
2) If yes, what are some possible measures that could be implemented for the protecting
against the same?
3) How can manual or unskilled labor be protected or up-skilled considering the
intervention of AI into the labor force?
4) Is AI as unbiased as it is perceived to be?
Bibliography:
https://www.un.org/en/pdfs/DigitalCooperation-report-for%20web.pdf
https://news.un.org/en/story/2021/09/1099972
https://www.weforum.org/agenda/2016/10/top-10-ethical-issues-in-artificial-intelligence/
https://digital-strategy.ec.europa.eu/en/library/ethics-guidelines-trustworthy-ai
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