Committee: ECOSOC

Topic: The Next Great Depression

Country: Republic of South Korea

The Great depression is a term referred to an economic crisis that has a huge economic
and social impact world-wide, affecting most countries and especially countries with the
strongest economies as they are the ones with more economic influence in the world.
This eventually leads to great levels of unemployment that eventually leads to increase
in poverty, inequality and therefore will impact the world in such way that may cause
many small conflicts that in the long-run may trigger bigger conflicts such as wars or
giving as example the Great Depression in 1929, a World war may take place.

This is one of the most serious problems in Macroeconomics as it goes against the
attempt to achieve the five main macroeconomic goals and the survival of economies.
Nowadays, economies such as China, US, Canada, Brazil, Russia, Venezuela and some
members of the European Union are in recession and if this continues at this rate it may
put the world on the edge of an economic collapse that can seriously led to a Great
Depression. Also, Banks have a vulnerable system in using the money they receive. To
make profits, interest rates are manipulated and loans are offered without limits and this
is what leads to discoordination, crisis and collapse. With a lack of confidence from the
population, Banks may collapse as they dont have the money to pay all the citizens
they are holding their money.

The republic of Korea, the worlds 11th biggest economy of the wold as our nominal
GDP conveys, is seeking to find and apply solutions to prevent any depression from
occurring. We are suggesting countries in the edge of crisis to start using mainly
contractionary fiscal policies; this is as money available is increasing leading to a
devaluation of goods. We also want to send financial support to countries that can
eventually collapse really soon such as Venezuela so they can organise, control their
society ( by stopping the shortage of food) and, to prevent any act of corruption that
may take place, this money will be supervised by our representatives that if Venezuela
accepts this money must accept in their country as with this money and detailed
instructions to the Venezuelan government will trigger their economy to slowly come
out of this crisis. We chose this decision of sending financial and technical support to
Venezuela as we are confident in Venezuelan wealth shown by their immense amount of
oil reserves (therefore we except to receive a gratification) and we are also confident in
our policies to come out of crisis as this led us out of the crisis after the Korean War. We
can also see a massive support by the Venezuelan citizens and their willingness in
coming out of this very unfortunate position.

Furthermore, being China our main exporter and importer we can reduce trade barriers
to their goods entering our country and lower the prices of our goods leaving to China,
that although may affect our economy, we might ensure China from not collapsing and
through a domino effect we prevent many economies (including us ) to fall into
economic depression. Finally we also propose that the EU has to become a democracy
as the president is not chosen but imposed and controlled by the IMF. There is a huge
problem shown in the economic crisis and national sovereignty, this is as despite the
countries are found in a same region they are not equal and does not have the same
ideology in how to use their resources. Finally we confidently believe that what
sustains a developed country is its production. and that the economic depression might
be prevented.

By: Vctor Zamora Newton College

http://www.bloomberg.com/news/articles/2016-01-11/meet-2016-s-worst-economic-
performers-flirting-with-disaster

https://en.wikipedia.org/wiki/Economy_of_South_Korea

http://theeconomiccollapseblog.com/archives/category/the-next-great-depression