St.

Michaels Model United Nations Conference (SMSMUN) 2011 World Bank Group Research Report

President: Amanda Ubeda Personal Introduction: Dear governors,

Vice-President: Carlos Tapia

My name is Amanda Ubeda and I am currently a senior at St. Michaels School. As the president of the World Bank Group, I would like to welcome you to what will be an incredible commission. I am sure you are all as excited as I am to participate in the second edition of SMSMUN. First off I would like to share with you my previous experience as a member of the MUN Club. Ive participated in two CILA conferences (2009 and 2010), last years SMSMUN and recently participated in THIMUN 2011. During my four conferences I have had the opportunity to work in AG3, Security Council, ECOSOC and lastly World Bank Group. This last experience encouraged me to request my advisors to open this commission in the second edition of SMSMUN because this committee was my favorite of the four. Because of its interesting way to debate economic problematics in different countries in the world, I believe you, who accepted this challenge, will enjoy it as much as I did when I participated as a governor. I look forward to a great conference with you guys and encourage you to make the best of this experience as I certainly will. Good luck, Amanda Ubeda

Dear Governors,

My name is Carlos Tapia and I will be your vice-president in the World Bank Group in the SMSMUN 2011. My past achievements include Distinguished Delegate in the CILA 2010 in the AG1. Ive participated in 4 CILAs, 1 NYDRMUN, last years SMSMUN and I recently took part in the THIMUN Youth Assembly in The Hague. During all my conferences, Ive had the opportunity to expand my knowledge in current issues affecting the world we live in. This is my first time in the World Bank thus trying to expand my general knowledge of the United Nations. I hope you do a great job with your loan proposals and your debates and Im looking forward to reading them in the near future. Good luck, Carlos Tapia

Introduction to the World Bank Group and Its Procedure. The World Bank Group is the union of five International Organizations, which provide financial help for the purposes of attaining sustainable development and reducing poverty. The International Bank for Reconstruction and Development (IBRD) is the premier international organization created to fight poverty by means of financing states. The IBRDs activities are mainly focused (but not limited) on helping Less Developed Countries (LDCs) and as such its goals are to provide long term loans and grants to help LDCs while also granting the necessary technical assistance. The IBRDs loans are provided with a sovereign guarantee. Also the IBRD is one of the highest rated borrowers on the international markets. It lends to countries at interest rates that are attractive to them, given the current market rates. The International Development Association (IDA) is responsible for providing long-term interest-free loans (also called credits) and grants to the Least Developed Countries (LLDCs) on terms much more lenient than those of the IBRD. Its goals are to support economic growth, reduce poverty and improve living conditions. IDAs grants go to poor countries that are already vulnerable to debt repayment issues or which confronting the ravages of natural perils, such as HIV/AIDS or a natural disaster. The IDA is the single largest source of donor funds for basic social services in the LLDCs. The ways the loans and credits work in the World Bank depend on the Agency used. Here we will be aiding countries from the IBRD or the IDA. Remember to check if your nation is approved for credit with the IDA or IBRD or both, and tailor your loan proposal or position paper accordingly. The different agencies will be subject to these maturity rates: IBRD 5.00% 0.75% 5 20 IDA 0.00% 0.75% 10 40

Interest on Loan Interest for Services Maximum Years of Grace Maximum Final Maturity

Procedure The World Bank Group works different than other committees because all governments (rather than delegations) have the opportunity to submit loan proposals instead of position papers. Said loan proposals are due by Sunday March 18th at 12:00 am ET. The member-states submitting proposals should see the sample loan proposal below and follow

it accordingly. The chair encourages the governments to creatively elaborate a loan proposal in which your nation, as the Sponsor, will address a cause in relation to one of the U.N. Millennium Development Goals while being backed (preferably) by several global financial institutions. Agenda. The chair will choose a maximum of four (4) of the loan proposals submitted by the governments based on their structure, creativity and economic sustainability. These loan proposals, hereby known as the docket, will then serve as our topic agenda. The agenda will be debated and set upon arrival in the first committee session of the conference as it would in a regular Model U.N. setting. The agenda, which is voted upon and set, will remain for the entire conference and we will debate the loan proposals in the order decided by you, the Board of Governors. The chosen loan proposals will be posted on to the SMSMUN website and sent via email to all Governors hopefully a couple of weeks prior to the conference. As I have stated, the President of the Bank will direct the committee. In the case of a split 50%50% vote on any procedural motion the President shall cast an affirmative or negative vote. Amendments As the Board of Governors debates the loan proposals on the docket, the committee will be writing and submitting amendments to these proposals, instead of submitting resolutions. There is no particular form designated for an amendment, however, the President has final authority on an amendment. An amendment can be introduced in the form of anything from a sentence to a paragraph. Amendments to loan proposals require a simple majority to pass and must have a combination of at least five (5) signatories/sponsors to be considered for debate. Debate Structure & Procedural Rules Committee debate and speaking revolves around discussion of a loan proposal being discussed. Only one loan proposal can be discussed at a time. The structure of the committee is designed in the following five (5) steps outlined. The procedural rules correspond to this structure and state which motion could be made during each step.

1. Presentation of Loan by Sponsor 2. Questions and Answer Period (questions of the loan sponsor) 3. Substantive Debate (speeches with comments) 4. Informal Caucus on Amendments (presentation of amendments) 5. Voting Bloc The sponsor of each loan proposal will have up to 10 minutes to expose their loan proposal. The sponsor does not have to use the entire 10-minute period. This Presentation should cover what the project is, how it will be funded, maturity rates, country background, etc. Presentations may include charts, overheads, or PowerPoint slideshows if deemed acceptable by the conference secretariat (If your loan proposal is selected, please notify us if you will need projectors and other resources). Upon completion of the presentation, the sponsor will remain upfront and will proceed to take questions from the committee members, if any exist. After the presentation, a governor may at any time move for a suspension of the meeting for the purpose of caucus. Governors raise their placards and are recognized by the President during Q&A. A governor must motion to move out of Question/Answer Period and into Substantive Debate. A simple majority is required to move out of Q&A. Following Q&A is Substantive Debate, where the Dais will then take a speakers list. Motions will be entertained to set the speakers time and to instate comments. During Substantive Debate amendments to the Loan Proposal may be written. A motion to move into Informal Caucus may be called where each amendment can be presented. The committee may also motion to move into Voting Block. This will require a two-thirds majority to pass, according to the conference rules. Voting. During Voting Block there will be no affirmative or negative votes. Votes will be weighted according to the World Bank Group Voting Power List (This will be handed to you upon arrival at the conference) Votes will be taken in ascending order from least-to-greatest shareholder and governors will express the amount they wish to contribute per loan proposal. The Pot or allotted funds limit will be included in the Voting Power List.

I. SAMPLE #1 LOAN PROPOSAL Country: REPUBLIC OF GEORGIA Governors: H.E. JOHN DOE Description: TRANSPORTATION REFORM PROJECT

I. TOTAL AMOUNT OF LOAN FROM WORLD BANK: $40,000,000 USD TOTAL AMOUNT OF LOAN: $60,000,000 USD II. COUNTRY BACKGROUND: Georgia is a country of 5.4 million people bounded by the Black Sea, Russia, Azerbaijan, Armenia and Turkey. At independence in April 1991, it appeared to be among the best placed of the former Soviet States to make a successful transition. It had a highly educated staff force, a long tradition of entrepreneurship, a significant underground economy, a prosperous agricultural sector and substantial natural resources. Its location made it a primary transit corridor in the Caucasus. However, two years of civil conflict and an eroded government authority resulted in a collapsed economy with high short-term debt, low output, and hyperinflation. In early 1994, Georgia made a significant turnaround and embarked in a stabilization program supported by the Bank and the IMF that reduced inflation to less than 12 percent per year and again stimulated the economy. Georgia's opportunities for growth largely depend on the country's capacity to integrate into international markets and attract foreign investment.

III. PROJECT OBJECTIVES: The Project has three objectives: (i) to lower transport unit costs; (ii) to lower fiscal costs; and (iii) to induce efficient resource use in the sector. Progress towards these objectives would be monitored by the following key performance indicators: (i) cost of good/passenger transport from Tbilisi to major surrounding countries; (ii) Government funding of the Transport Sector; (iii) Gains/savings in transport costs compared to transport sector funding. Three components have been identified: (a) technical service; (b) roads; and (c) rail. The Technical Services Component: US$5.0 million would address policy actions and sector transformations not covered in the Structural Adjustment Loan or in the Transport Rehabilitation Project. This would include the preparation of environmental and safety regulations for the transport sector. Road Component: US$25.0 million. This component would consist in the maintenance, rehabilitation, reconstruction and modernization of road infrastructure. The loan and new road user charges would raise the budget of the Highway Concern to about US$55 million annually.

The Rail Component: US$10 million. This component would be used for the rehabilitation of key assets for the provision of services currently demanded from the railways. IV. CREDIBILITY/RATIONALE: After achieving independence with the end of the Soviet Union we experienced strong growth in foreign investment and private sector development. These investments will flourish in the new millennium and we feel it is a long-term source of economic growth. Georgia has never defaulted on any loan to the World Bank or EBRD. Our stable form of government and further foreign direct investment because of this project will yield results and thus allow us to pay back this loan promptly and in full.

V. CO-FINANCING: International Development Agency (World Bank - IDA) $40,000,000 European Bank for Reconstruction and Development $15,000,000 Government of Georgia $5,000,000 TOTAL: $60,000,000 USD

VI. ALLOCATION OF FUNDS: Technical Services Components $5,000,000 Road Components $25,000,000 Rail Components $10,000,000 Labor Salaries $10,000,000 Additional Transportation Sector Research $5,000,000 Contingency Funds $5,000,000 TOTAL: $60,000,000 USD

VII. MATURITY: Interest Rate: Grace Period: Payback Period: 0.75% IDA service charge 8 years 20 years

Note: Please make sure all numbers add up correctly. Under co-financing, other NGO's, IGO's, Development Banks, etc. may be used in addition to the World Bank's IBRD/IDA. We will,

however, not be voting upon those portions and will only be voting upon what corresponds to the World Bank IBRD/IDA. As indicated above in bold print, that is the only portion of the loan applicable to our committees' vote. Maturity rates should correspond with standard World Bank rates for the IDA or IBRD. When researching, be sure to pay close attention to the differences between these two branches of the Bank and which one (or both) your country is a part of. II. SAMPLE #2 AMENDMENT

Country: CANADA, SPAIN Signatories: BRAZIL, UK, UKRAINE (d) Bridges and tunnels: US$35 million. This component would uphold and maintain the infrastructure of the bridges and tunnels. It would satisfy their long-term maintenance costs, which would ensure short-term and long-term safety. INTENTIONS Canada's above amendment adds to the three components stated in the initial loan proposal. Maintaining bridges and tunnels was overlooked in the initial proposal and we believe the component [(b) roads] itemized allocation of US$25.0 million would not suffice for the exorbitant cost of maintaining bridge or tunnel type infrastructure. Therefore, Canada will not move to divide out any part of the loan proposal, but do submit this as an addition to PROJECT OBJECTIVES. We propose that the entire US$35 million be added to the IDA above. This will change the vote of this body from $40,000,000 to $75,000,000. CHANGE IN FINANCING (If applicable) Furthermore, this amendment will change the total amount of the loan from $60,000,000 to $95,000,000. Technical Services Components $5,000,000 Road Components $25,000,000 Rail Components $10,000,000 Bridges and Tunnels $35,000,000 Labor Salaries $10,000,000 Additional Transportation Sector Research $5,000,000 Contingency Funds $5,000,000 TOTAL: $95,000,000 USD

References: http://www.unadr.org.do/images/stories/World%20Bank%20Grop.pdf CILA 2010 World Bank Group Research Report http://www.montessorimun.org/files/FileUpload/files/Background%20Guides%202010/MMUN_2010_World_B ank_Background_Guide.pdf MMUN 2010 World Bank Group Research Report