Committee: Economic and Financial Affairs Committee (ECOFIN):
Photograph by Saw Lwin / Source: United Nations Photo
At the presiding table are (l to r): Shuaib Uthman Yolah, Under-Secretary-General for International Economic and Social Affairs; Albrecht Horn, Principal Officer, Dept. of Development and International Economic Co-operation (DIEC); Abdalla Saleh Al-Ashtal (Democratic Yemen), Committee Chairman; Valeri Yudin, Committee Secretary; and Boris N. Goudima, Rapporteur. 24 October 1986
The United Nations Economic and Financial Committee, otherwise known as the Second Committee of the General Assembly or ECOFIN, handles issues relating to development, financial sustainability, and economic cooperation between states. The committee has 18 functional programs, departments, organizations, and commissions and is composed of all member states. (Model United Nations) Non-Governmental Organizations (NGO’s) and international organizations can sit in on meetings and give their input. ECOFIN works in coordination with the World Bank and IMF (International Monetary Fund) to promote economic sustainability and welfare. At the sixty fourth session, the committee took action on 45 draft proposals, and is expected to do the same this year. (Model United Nations) These proposals covered a wide variety of economic and socio-economic issues, including third world sustainable development.
In particular, ECOFIN’s focus is on the first of the Millennium Development Goals (MGD’s), which calls for the eradication of poverty. This goal is divided into three general targets for improvement: to halve the number of people living under one dollar a day, to achieve full and productive employment and decent work for all (including women and young people), and to halve the proportion of people who suffer from hunger. (Millennium Developmental Goals) The current Chair of the Second Committee, Ms. Enkhtsetseg Ochir, stated that the Committee must make better use of its discussions to contribute to the follow-up to the recent MDG Summit and expedite the realization of the Goals by 2015. (Second Committee)
The committee offers suggestions to member countries on macroeconomic policy relating to economic growth, international trade, and debt sustainability. With the recent economic downturn, ECOFIN has been persuading states to make economic policies that are beneficial not only to themselves, but the whole international system. The failed regulation of international markets has caused uproar of protectionist and isolationist tendencies within nations, a trend that is troubling to say the least. Premature austerity policies—debt reduction by cutting spending—has become a prevalent action for debt ridden states. The Committee fears that an “early retreat from stimulus packages may pose a risk of plunging economies into a new recession.” (Second Committee) Additionally, the importance of balancing budgets should not come at an enormous expense to the social services of citizens, as the Committee believes “special efforts must be made to ensure the social needs of vulnerable groups are still met.” Budget cuts are a necessary tool for austerity and debt reduction policies; however, the Committee attempts to limit the ill effects on impoverished and endangered peoples.
The responsibility of the Committee is to promote general economic development, but in a sustainable manner. Development is an important tool for the eradication of poverty; however, it must be done with environmental sustainability in mind. Fossil fuels such as carbon dioxide have caused unmitigated environmental damage due to the use of oil and coal. Both resources are cheap forms of energy, yet cause substantial environmental damage, most notably contributing to anthropogenic climate change. The Rio Summit emphasizes the Committee’s belief in sustainable development, furthering the United Nations commitment to both development and accordance with the Kyoto protocols, which are intended to significantly reduce CO2 emissions.
The Second Committee of the General Assembly’s goal is to help eradicate poverty through development. Development must be done responsibly to not harm the environment. Environmental damage from climate change would have a disproportionate effect on those in developing countries; therefore it is in their interests to develop in a sustainable fashion.
Works Cited
Model United Nations University of Chicago. “Economic and Financial Committee.”
www.munuc.org/committees/ECOFIN.
General Assembly of the United Nations. “Second Committee.” http://www.un.org/en/ga/second/index.shtml.
United Nations. “Millennium Development Goal 1: Eradicate Extreme Poverty and Hunger.” http://www.un.org/millenniumgoals/poverty.shtml.