Economic and Financial Committee ECOFIN

The Economic and Financial Committee (ECOFIN) is the Second Committee of the United Nations General Assembly. It is tasked with handling global finance and economic matters, including macroeconomic policy, financial support of sustainable development, taxation operations, poverty eradication, globalization, and the oversight of financial services. This year there will be a focus on addressing financial corruption and inequity. Topic A will explore illicit finance operations through tax loopholes in off-shore havens. Topic B will explore how global nations can implement tangible solutions to gender-based income inequality. Delegates will be able to devise solutions that will further economic stability and ensure equity across a myriad of dimensions.

Topic A: Regulation of Offshore Tax Havens
Offshore tax havens offer distinctly favorable conditions for wealthy individuals, corporations, and financial institutions looking to minimize their tax obligations while concealing their assets. The appeal of these offshore locations—including Switzerland, the Cayman Islands, and the British Virgin Islands—is their governments’ lenient regulations and tight financial secrecy, making financial crime prosecution and proper asset evaluation very difficult. Illicit activities such as money laundering, tax evasion, smuggling, and the financing of terrorism flourish under the protection of these havens. Developing nations are particularly vulnerable to these systems as public officials and wealthy business people look to exploit underfunded regulatory institutions, which has allowed them to hide their activities under the increased flow of assets or money out of a country due to economic instability. These practices undermine sustainable development and deteriorate trust in government institutions. Many governments and international organizations have intensified efforts to strengthen financial transparency and compliance in order to deal with this issue, however, it is far from being resolved. Delegates will explore solutions for the comprehensive global action needed to regulate international financial flow and increase financial transparency to amend these wrongs.

Topic B: Addressing Gender Income Inequality
Across all regions, gender minorities are earning less pay than men. The organization, Equal Pay Today, reports that globally, women are paid 77 cents for every dollar men earn. Discriminatory practices like this are not limited only to women and extend to workers of other gender minorities as well. Despite some improvements in different countries, the issue persists and expands beyond just the concept of equal pay for equal work. Reasons for the differences in income mirror inequalities in many sectors, from systemic to social. Issues stem from employers who are discriminatory during the hiring process and beyond, as well as the choices made by women and other gender minorities who may be influenced by gender norms and stereotypes that discourage and prevent them from pursuing jobs in certain markets. Furthermore, income inequality is an intersectional issue––the pay gap increases with age, race, and the type of profession, with managerial work seeing a greater wage difference than entry-level positions. Gender income inequality is multifaceted and will require delegates to understand its complexities in order to arrive at tangible solutions that can tackle it effectively from all angles.

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