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by The Regional Nation of The Northern Light. . 114 reads.

Vote For GA resolution Repeal: "Stock Exchanges And Foreign Investment"

General Assembly Vote Recommendation

Part of the Information for WA Voters program

Resolution at Vote: Repeal: "Stock Exchanges And Foreign Investment"
Vote Recommendation: For

Resolution Analysis
This proposal seeks to repeal GAR#401, "Stock Exchanges and Foreign Investment". The authors provide several reasons as to why this resolution should be repealed. First, they argue, GAR#401 does not outline any specific regulations that the International Securities and Exchange Commission (ISEC) would establish pursuant to the goals of the proposal. Secondly, they argue that what exactly constitutes "artificial manipulation of the exchange rate" is not defined, which may hamper exchange rate interventions by member states during periods of crisis. Finally, they argue that the definitions set forth in GAR # 401 are of poor quality, contain omissions, and cause the ISEC to provide misleading advice to member states.

We find ourselves in agreement with the authors of this repeal. As pointed out by the authors, the definitions of stocks, bonds, and securities are indeed very poorly written, and exclude numerous concepts and instruments found within modern economics and trade. The target resolution's ambiguity on what constitutes "artificial manipulation of the exchange rate" has severe national security implications, as currency rate interventions are often necessary to combat market volatility. Lastly, by failing to properly define the scope of the ISEC's regulatory activities, there is an uncomfortable level of power afforded to it when it comes to a nation's ability to regulate and manage its currency and its relationship with the exchange market.

For the above reasons, the Ministry of World Assembly Affairs recommends a vote For the GA proposal at vote, Repeal "Stock Exchanges and Foreign Investment".

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