Position Paper / White Paper

LEGACY Bahamas UNGA 2016 - Topic 2


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Topic 2

White Paper

 

The Commonwealth of the Bahamas believes that respecting the sovereignty of African nations and focusing on economic rehabilitation as opposed to retribution for current borrowing habits should be the guiding principle in how the committee chooses to address the ongoing debt crisis. As a nation who has and continues to hold significant debt from private sources, direct foreign investment, as well as the International Monetary Fund and World Bank, she realizes the positive implications that close cooperation between creditors and debtors can have. She encourages creditors to be forgiving in both the period of time in which recovery and debt payoff, which will provide relief to African nations relative to the debts they currently hold. The Bahamas seeks to work with the committee in order to produce a resolution that allows for total economic recovery and debt relief through a two step process. This process involves facilitating agreements between indebted African nations and their creditors (such as the IMF and World Bank) with the goal of establishing what African nations will be required to pay back given their current debts, a comprehensive plan on how the nation will pay back their debts, and the time in which they must do so. In addition, African nations will be provided with the resources necessary to come up with both long and short term economic goals that will hopefully disrupt the current cycle of borrowing. Doing so will promote a more effective allocation of monetary resources going forward that supports improving infrastructure and public services (such as education and healthcare) as opposed to paying of burdening debts as a result. The Commonwealth of the Bahamas firmly believes that doing such will provide leverage to nations to practice better borrowing habits in the future and will return faith to investors in African nations, promoting healthy financial practices and self-sustaining African economies.