Country: Argentina

Committee: General Assembly 2nd – The Economic and Financial Committee (GA2-ECOFIN)

Topic: Dealing With The Post Pandemic Escalation Of The Global Debt Crisis.

The topics before the General Assembly second committee (GA2-ECOFIN) are Dealing With The
Post Pandemic Escalation Of The Global Debt Crisis and Enhancing the promotion of sustainable
consumption and productive patterns for the implementation of the 2030 Agenda for sustainable
development. The Federal Republic of Argentina and Latin America’s third largest economy

The inability of the countries of the world to pay back their government debt didn't just start today. In
spite the warning from the International Monetary Funds (IMF), government and business borrowing
across the world grew dangerously high. As of 2021, the global debt had reached a sum of 303 trillion
dollars, according to the Institute of International finance. Yet again, with the emergence of Covid-19,
and now by the war in Ukraine the global debt had escalated and is presently at its high levels as world
governments had to borrow more funds to keep their economies afloat. The defaults of countries as
regards to their debt stand will cause panic on financial markets and slowdown the world economy

According to research from the world bank, emerging and developing economies have been the worst hit
with the consequences being prolonged recessions, high inflation, and few resources going to essential
sectors like health, education, etc. Public debt surged from 70% of GDP in 2007 to 124% of GDP in
2020. Public debt accounts for 40% of total global debt and the highest since mid-1960s. The Federal
Republic of Argentina though plunged into great debt crisis in 2001 and in 2018, and of recent in a battle
with IMF over $45 billion loan, has adopted fiscal policies advancing the economic standard of the
nation, and in few years would be out of debt.

To adequately nip this big problem in the bud, these should be done: There is no better time other than
now for the member states put brains together towards the rescue of the world’s economy. Debt reduction
packages can be issued of countries in unsustainable debt levels

There are various alternatives to borrowing and these should be harnessed and boosted, and one of such is
through the increase in tax and aid – these are needed if countries will be able to afford the necessary
investments in different sectors such as healthcare, education, and even in social protection so that
poverty which is the main reason why country's borrow funds can be eradicated.

Moreso, lending, and borrowing must and should be properly managed. As different sources of borrowing
have their risks and costs, countries must be well aware of the risks in question. Lenders on the other hand
should help to improve the borrowing options available to world countries, most especially to low-income
countries.

Furthermore, spending should be directed to areas that serve as the foundation of future growth, such as
education and health spending including climate-smart investment which in turn strengthens economic
resilience – unnecessary expenses should be avoided.

Unfortunately, these options are not so easy nor attractive but if followed will go a long way in solving
the global debt crisis.