General Assembly Resolution # 226
A resolution to reduce barriers to free trade and commerce.
Category: Free Trade
Proposed by: Auralia
Recognizing that developing member nations often encounter significant difficulties in making capital investments and attracting foreign investment,
The General Assembly adopts the following resolution:
Article I: Mandate
The World Assembly Development Foundation is established, mandated with promoting socioeconomic development in developing member nations through foreign investment and international trade.
Article II: Development Strategies
The Foundation shall conduct extensive research relating to socioeconomic development in all developing member nations. All of the Foundation's research shall be released to the general public.
Based on its research, the Foundation shall create a comprehensive development strategy for all developing member nations, including as necessary:
capital investment projects designed to improve the infrastructure required to support future economic development and provide basic public services;
governmental reforms designed to promote good governance and remove barriers to foreign investment and international trade, including but not limited to austerity measures, balanced budgets, trade liberalization, privatization and deregulation, sustainable development programs, democratic reforms, improved respect for fundamental human rights, and increased spending on basic public services as appropriate; and
reasonable timelines for the completion of the aforementioned projects and reforms.
Development strategies shall be drafted with the full participation of all the major stakeholders in the subject nation.
Article III: Sovereign Loans Program
The Foundation is authorized to offer sovereign loans at its discretion to any developing member nation. Nations must have made a good-faith effort towards implementing the governmental reforms recommended by their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.
Member nations shall use these loans exclusively to implement the recommendations from their development strategy, though the Foundation may allow exceptions during times of national emergency and economic crisis.
Loans extended by the Foundation shall be entirely financed by willing member nations. The Foundation shall not be held liable in the event that a member nation defaults on a loan. A nation's share of all loan payments and influence on the Foundation's loan policy shall be proportional to the size of its contributions to the Foundation.
In general, member nations are encouraged to provide debt relief to other member nations during times of national emergency and economic crisis.
Article IV: Foreign Investment Insurance Program
The Foundation is authorized to insure any foreign investment in developing member nations at its discretion when available insurance is inadequate. The grounds for a claim are limited to currency inconvertibility, expropriation, war, terrorism and civil disturbance, breaches of contract, and governmental failure to honour financial obligations.
The Foundation shall charge premiums to investors sufficiently high to cover the risk of their investment and the expenses incurred in determining that risk.
The Foundation shall take any reasonable course of action to avoid bankruptcy, and must maintain a minimum liquidity ratio of 10% at all times.