Global Summit on the Economic Crisis, 1930

Agenda: Discussing the Global Trade Breakdown and Mitigating the Effects of the Economic Downturn

"We will not have any more stock market crashes in our time."

            - John Maynard Keynes, in 1927

Escalating poverty. Homelessness. Unemployment. Rising crime rates.

Delegates, the world is in the midst of a devastating recession. The Great Depression left the planet in shambles, from people committing petty theft, just in order to put food on the table, to suicide and malnutrition rates touching all-time highs. Delegates, you have an opportunity to change the course of history. The destiny of the global economy will be written by you.

The unravelling of the global economy was imminent since long before 1930. World War I’s distinguished mannerism of debt, trade barriers and crippling damage compensations laid the grounds for a global economic disaster. The ratification of The Treaty of Versailles in 1919 marked the beginning of a 44-month economic boom known as the Roaring Twenties, one which would convince even pessimists that the future of the economy was bright. Unfortunately, due to the irrational optimism and overconfidence that investors had in the stock market during the 1920s, the success of the market was taken merely at its face value. Even major economists such as Keynes and Fisher did not bother to peel through layers of economic data, thus not discovering the underlying recession. Automobile sales were decreasing, the Federal Reserve warned of over-speculation, and a severe drought ravaged the USA. Overproduction of Wheat had earlier led to a crash in its prices, however now with the drought, lack of food security is plaguing the world. Delegates, not so long ago, the world was fighting battles on multiple fronts. Now, the fronts are different. It is your responsibility to battle food security, an inherent recession, and a trade war in the works.

Committee begins on 17th June, 1930, and President Herbert Hoover has just signed the Smoot-Hawley Tariff Act, one of the most punitive tariffs acts of the 20th century. Average tariffs have been raised by more than 20%, on over 20,000 imported goods. Numerous countries have pre-emptively responded to this tariff hike. 23 different trading partners of the USA had written to President Hoover in September 1929, in an attempt to dissuade him from enacting the Smoot-Hawley plan, evidently a major threat to international trade and commerce.  Leading economists believe that these actions will set off a chain reaction, with many trade partners also increasing tariffs on various other goods, and moving away from depending on the USA as their biggest partners, resulting in the eventual demise of global trade. Delegates, with unemployment on the rise, food scarcity becoming a worldwide problem, and stock markets still reeling from huge sell-offs, the world and its citizens cannot afford to be caught in the crossfire of a trade war.

Delegates, the world is in the grip of a deadly economic recession, one which may cripple economies for years to come. Some of the most controversial economic events in recent memory have taken place in the past year, starting from Black Tuesday in the stock market to protectionist tariffs being implemented. Now, with your citizens pleading for help, the fate of the world economy rests in your hands. Is a recovery on the way? Or is a depression just round the corner?

We expect to see intense but constructive debate discussing the possible causes of the economic downturn and solutions being proposed, with the aim of mitigating the impact of the current recession. We hope that you put your differences aside and come up with a comprehensive plan to ensure an economic renaissance. Delegates, it is time to take action.

The Global Summit on the Economic Crisis, 1930 is one of two double delegate committees at CMUN 2021.

Letter from the Director

Dear Delegates,

Welcome to the Global Summit on the Economic Crisis, 1930, a General Assembly at Cathedral Model United Nations 2021. This one-of-a-kind committee is a simulation of one of history’s worst economic times. You will be tested on your ability to find creative solutions to unique problems by thinking on your feet. Even the most experienced delegates and economic wizards would have to unlearn and relearn everything they know to adapt to the almost century-old setting of this committee. 

My name is Saksham Sood and it is my pleasure to serve as the Director of this committee. I am a senior at The Cathedral and John Connon School. I have been participating in MUNs since the 8th grade and have been to multiple local and international MUNs including HMUN, Boston. This will be my 5th CMUN and 2nd as a member of the Executive Board. To fulfil my passion for public speaking, I also participate in debates. Physics and computers are my favourite subjects in school, which means we can have extended reality-questioning discussions about theoretical physics or the future of artificial intelligence and its philosophical implications. Being a cinephile, I will give brownie points to any speeches with movie quotes. Alternatively, any mention of memes or hip-hop music is also a shortcut to get into my good books. If you have any questions about anything before or during committee, you can get in touch with me and I will be happy to help. Since CMUN 2021 is my last MUN, I want this committee to be as dynamic and realistic as possible, thus making it a unique and unforgettable experience for everyone.

I expect the highest level of debate and solutions from all of you, delegates. In a committee like this, there is a huge responsibility on you, as you are being asked to alter the course of history. I hope everyone comes prepared to face the challenge. This committee’s agenda is still hotly debated in the economic community. This gives this committee a wide range of perspectives and potential approaches to pursue. Delegates should aim to take advantage of this flexibility to craft the best outcome. I want delegates to remember that the best solutions are always achieved through collaboration and compromise from every side.

I believe MUN gives us the unique opportunity to analyse important issues from all perspectives and attempt to correct them. This exercise enables us to identify potential future missteps and take preventive action. I look forward to seeing all of you in August as we participate in this unique experience. 

 

Saksham Sood

Director,

Global Summit on the Economic Crisis, 1930

saksham sood.jpeg

Saksham Sood

Director