Topic A: The impact of economic sanctions on countries
Economic sanctions have been long used as a deterrent for countries who defy the international laws/treaties or whose actions are being deemed as illegally by international communities and they are commercial and financial penalties applied by one or more countries against a targeted country, group, or individual. Economic sanctions include various forms of trade barriers, tariffs, and restrictions on financial transactions. An embargo is similar, but usually implies a more severe sanction. An embargo is an official suspension of import and/or export of some specific or all goods, to or from a specific port, country, or region, for political, health, or labor related reasons, for a specified or indefinite period. What exactly makes a country take such an extreme decision? There are various reasons, but it’s basically dissuading an adversary from taking any action that is contrary the countries interest. For example in 1975, the United States used the threat of sanctions to discourage South Korea from buying a nuclear fuel reprocessing plant from France, which the U.S. thought might be secretly used to help make nuclear bombs. South Korea never bought the plant. Or let’s take the famous Cuban missile crisis, when on october 22, 1962 the US navy intercepted all shipments to Cuba, declaring it a „quarantine”, but this term was not well taken by the USSR, who declared war. This sanctions, although they might seem as completely necessary in some situations, how and when do we know they went too far? While some sort of punishment is indeed required , economic sanctions endanger the economic stability of the world and make us all more susceptible to a crisis and if such a crisis happens it will be much harder to move past. In 2018, there are several countries under economic sanctions such as North Korea, Syria, Ukrain and Iraq, Trump threatening that all the countries that are trading with Iran will stop all the trades with USA. What should we all do in order to stop the world from entering a new economic crisis? Join the EcoFin committee and you’ll find out.
Topic B: Trade Wars
Trade wars have appeared on a larger scale since the end of the industrial era and will probably always exist for as long as governments do. The ongoing trade wars today though have reached such a scale that they require international solving which, in this case, means the intervention of ECOFIN. The 3 main economic giants of the world U.S.A, China, and the E.U need a mediator urgently or the whole global economy might soon collapse. The situation will get even more complicated once you take into account the geopolitical factor, which will tell you that China is an emerging economic powerhouse who wants to exert its influence throughout the world and the “traditional” powers of the west desperately try to maintain their influence and relevance in the global spectrum.
Most recent intercourses between the U.S.A, China, and the E.U affirm that there are some sparks which could ignite a whole new crisis in our world. Here at ECOFIN the main interest and pursuit is the wellbeing of all people and the avoidance of global recession conducted at the hands of politics.