Type: General Assembly

About

At this year's International Monetary Fund Board of Governors meeting, you will be discussing one of two key topics related to the global economy: sovereign debt and geoeconomic fragmentation.

Government debt, especially public debt, is at an all-time high. At current borrowing rates by national governments, the global level of debt may become unsustainable soon. The mechanisms traditionally used by the IMF to provide debt relief to distressed nations have also come under scrutiny, as these structural adjustment programs often involve the imposition of austerity measures by governments that hurt the average citizen. How will you ensure that global sovereign debt remains at a sustainable level? Do you wish to pivot away from the IMF's traditional model of debt relief, or stick to it?

At the same time, trade networks are fragmenting due to geopolitical volatility in a phenomenon called geoeconomic fragmentation. With nations reverting to protectionism, international trade and finance are changing in ways that could result in aggregate losses for the global economy. Some countries are also questioning the continued use of the US Dollar as a common currency for international transactions, and the use of non-dollar currencies is increasing. How can the IMF prevent the continued fragmentation of the global economy? Should the IMF encourage or discourage dedollarization, and how should its policies and loans reflect the stance on currencies that it should choose to take?>

During this year's meetings, you will navigate the above topics and questions in a manner that supports your country's interests. Through forming blocs, writing resolutions, and achieving compromises, you will try to reshape the IMF's policies regarding the above two topics in a way that positions your country advantageously, while still respecting the IMF's mission.