BACKGROUND IBRD Topic A: Increasing Economic Empowerment and Financial Inclusion for Women in Albania Topic B: Encouraging Investment and ...
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BACKGROUND IBRD
GUIDE
Topic A: Increasing Economic
Empowerment and Financial
Inclusion for Women in Albania
Topic B: Encouraging Investment
2 0 2 1 and Entrepreneurship in Nigeria
Email: info@imuna.org
Phone: +1 (212) 652-9992
Web: www.nhsmun.org
Secretary-General Dear Delegates,
Maura Goss
My name is Lucas Chaves Meyles, and I am thrilled to serve as your chair for the International
Directors-General
Bank of Reconstruction and Development committee for Session I! I am joined by Rebecca, this
Rose Blackwell
committee’s director for Session II, to provide you all with an illuminating and engaging experience.
JJ Packer
We will be exploring, perusing, and thoroughly debating two gripping topics: increasing economic
Conference Services empowerment and financial inclusion for women in Albania, and encouraging investment and en-
Hannah Lilley trepreneurship in Nigeria. I hope that this background guide serves as a helpful supplement to your
Alisa Wong
research.
Delegate Experience
Akanksha Sancheti First, I’d like to acquaint myself with all of you! I am currently a second-year student attending the
John Wood University of California, Los Angeles, where I study pure mathematics with a possible concentra-
tion in computer science. Within pure mathematics, I am pretty heavily interested in competition
Global Partnerships
Sofia Fuentes math, especially combinatorics and number theory. Besides mathematics, I am quite involved in
Salmaan Rashiq MUN, with this being my sixth year doing it. In my home town of San Jose, California, I helped
organize a local conference hosted by my former high school, SCVMUN, for which I still staff
Under-Secretaries-
General today. Also, I currently serve as the director of the Dutch Revolt crisis committee for UCLA’s high
Jon Basile school conference. In addition to MUN, you can probably find me obsessing over Myers-Briggs
Ankita Bhat personality types (I’m an ENTP!) or listening to alternative rock albums in length, with my current
Beatriz Circelli favorite being OK Computer by Radiohead. Other hobbies I have include swimming, which I have
Caitlyn Johnson loved since I was a kid and am part of the club team at UCLA, and cycling, which I picked up quite
Patrick Leong rapidly during quarantine.
Kathy Li
Pablo Maristany de The IBRD is a unique committee in that the focal point of loan proposals is optimizing the eco-
las Casas nomic situation of the country in question, a dimension frequently neglected in most MUN com-
McCall Olliff mittees. However, economics interacts with a wide range of other disciplines like business, history,
Abolee Raut and environmental science (to name a few). Topic A targets a specific yet entirely relevant issue in
Pranav Reddy
Albania, which will help delegates understand the under-discussed barriers that women face daily.
Clare Steiner
Delegates are encouraged to research the connection between financial inclusion and increasing
Ann Williams
economic livelihoods of women in Albania. Topic B sizes upon a massive opportunity to revitalize
Nigeria’s economy through investment and entrepreneurship. Delegates are encouraged to research
how micro, small, and medium-sized enterprises play an important role in furthering economic
prosperity. These aspects can be adequately applied to loan proposals in the committee to make a
sustainable impact on the Nigerian economy.
With all this in mind, I am more than elated to see what you have in store for this committee! If any
of you have questions, please do not hesitate to reach out.
Best,
Lucas Chaves Meyles
lucas.meyles@imuna.org
International Bank of Reconstruction and Development
Session I
Email: info@imuna.org
Phone: +1 (212) 652-9992
Web: www.nhsmun.org
Secretary-General Dear Delegates,
Maura Goss
Welcome to NHSMUN 2021! My name is Rebecca Herrera, and I am excited to be your Session
Directors-General
II Director for the International Bank for Reconstruction and Development! I was Session II As-
Rose Blackwell
sistant Director for the Council of the European Union last year, and this will be my fourth NHS-
JJ Packer
MUN, second on staff. Throughout my NHSMUN career, I have made unforgettable memories
Conference Services with new faces, new life-long friends, and great experiences. I hope that this NHSMUN can do the
Hannah Lilley same for you!
Alisa Wong
Delegate Experience Outside of NHSMUN, I am a junior at the University of Michigan studying Economics and Inter-
Akanksha Sancheti national Studies with a concentration in Political Economy and Development. I get excited about
John Wood political economy and behavioral economics and enjoy topics like economic crises. I even did a
podcast project last year comparing the financial crisis of 2007–2009 to the Great Depression.
Global Partnerships
Sofia Fuentes Outside of academics, I serve as the Publisher for Latinidad Magazine, a Latinx art magazine at my
Salmaan Rashiq school. I am also heavily involved within my campus community through projects ranging from
programs for incoming students to planning events for various offices. Additionally, I have written
Under-Secretaries-
General for the Michigan Foreign Policy Council and worked in a diabetes research lab for over a year. I am
Jon Basile very interested in anything someone is excited to tell me about (i.e., Lucas and his Myers-Briggs
Ankita Bhat obsession—I discovered I am an ENFP!) and am more than happy to share my experiences with
Beatriz Circelli you as well!
Caitlyn Johnson
Patrick Leong That being said, your Session I Director, Lucas, and I are pleased to provide you with a thorough
Kathy Li background guide for your two loan requests this year: (A) Increasing Economic Empowerment
Pablo Maristany de and Financial Inclusion for Women in Albania, and (B) Encouraging Investment and Entrepreneur-
las Casas ship in Nigeria. The loans the committee will be discussing include a conglomerate of ideas, includ-
McCall Olliff ing economic, political, and social aspects. However, it is crucial to remember that this committee
Abolee Raut utilizes economics to foster development. Given the IBRD’s mandate and niche structure, the final
Pranav Reddy
proposal will be connected to these economics and the individual needs of the economies of each
Clare Steiner
country. Each topic was picked and paired according to current issues and events that are top priori-
Ann Williams
ties in each respective country. While the background guide includes the necessary foundations of
each issue at hand, delegates are urged to research beyond this to discover and connect how their
delegation’s ideals fit into each topic
I wish you all the best of luck with your research and am excited to see the ideas you each come up
with! If you have any questions regarding preparation, NHSMUN in general, college, or anything
else, please feel free to reach out as we are a resource for you, and we would be delighted to assist!
Best,
Rebecca Herrera
rebecca.herrera@imuna.org
International Bank for Reconstruction and Development
Session II
IBRD 4| Table of Contents Table of Contents A Note on the NHSMUN Difference 5 A Note on Research and Preparation 7 Committee History 8 Simulation 10 Increasing Economic Empowerment and Financial Inclusion for Women in Albania13 Loan Request 14 Strategic Focus 15 Feasibility 28 Bloc Analysis 31 Committee Mission 33 Encouraging Investment and Entrepreneurship in Nigeria 34 Loan Request 35 Strategic Focus 36 Feasibility 49 Bloc Analysis 54 Committee Mission 56 Glossary 58 Research and Preparation Questions 60 Important Documents 61 Works Cited 63
IBRD
A Note on the NHSMUN Difference |5
A Note on the NHSMUN Difference
Esteemed Faculty and Delegates,
Welcome to NHSMUN 2021! Our names are Rose Blackwell and JJ Packer, and we are this year’s Directors-General. Thank
you for choosing to attend NHSMUN, the world’s largest and most diverse Model United Nations conference for secondary
school students. We are thrilled to welcome you to our conference in March!
As a space for collaboration, consensus, and compromise, NHSMUN strives to transform today’s brightest thinkers into tomor-
row’s leaders. Our organization provides a uniquely tailored experience for all in attendance through innovative and accessible
programming. We believe that an emphasis on education through simulation is paramount to the Model UN experience, and this
idea permeates throughout NHSMUN.
Debate founded on strong knowledge: With knowledgeable staff members and delegates from over 70 countries, NHSMUN
can facilitate an enriching experience reliant on substantively rigorous debate. To ensure this high quality of debate, our staff
members produce extremely detailed and comprehensive topic overviews (like the one below) to prepare delegates for the com-
plexities and nuances inherent in global issues. This process takes over six months, during which the Directors who lead our
committees develop their topics with the valuable input of expert contributors. Because these topics are always changing and
evolving, NHSMUN also produces update papers intended to bridge the gap of time between when the background guides are
published and when committee starts in March. As such, this guide is designed to be a launching point from which delegates
should delve further into their topics.
Extremely prepared and engaged staff: The detailed knowledge that our directors provide in this background guide through
diligent research aims to spur critical thought within delegates at NHSMUN. Before the conference, our Directors and Assistant
Directors are trained rigorously through copious hours of exercises and workshops to provide the best conference experience
possible. Beyond this, our Directors and Assistant Directors read every position paper submitted to NHSMUN and provide
thoughtful insight on those submitted by the feedback deadline. Our staff aims not only to tailor the committee experience to
delegates’ reflections and research but also to facilitate an environment where all delegates’ thoughts can be heard.
Emphasis on participation: The UN relies on the voices of all of its Member States to create resolutions most likely to make
a dramatic impact on the world. That is our philosophy at NHSMUN too. We believe that to properly delve into an issue and
produce fruitful debate, it is crucial to focus the entire energy and attention of the room on the topic at hand. Our Rules of
Procedure and our staff focus on making every voice in the committee heard, regardless of each delegate’s country assignment
or skill level. However, unlike many other conferences, we also emphasize delegate participation after the conference. MUN
delegates are well researched and aware of the UN’s priorities, and they can serve as the vanguard for action on the Sustainable
Development Goals (SDGs). Therefore, we are proud to also connect students with other action-oriented organizations to en-
courage further work on the topics.
Focused committee time: We feel strongly that interpersonal connections during debate are critical to producing superior com-
mittee experiences and allow for the free flow of ideas. Ensuring policies based on equality and inclusion is one way in which
NHSMUN guarantees that every delegate has an equal opportunity to succeed in committee. We staff a very dedicated team
who type up and format draft resolutions and working papers so that committee time can be focused on communication and
collaboration.
Educational emphasis, even for awards: At the heart of NHSMUN lies education and compromise. As such, when NHSMUN
does distribute awards, we de-emphasize their importance in comparison to the educational value of Model UN as an activity.
IBRD 6| a noTe on The nhsMUn DIffeRenCe NHSMUN seeks to reward schools whose students excel in the arts of compromise and diplomacy. More importantly, we seek to develop an environment in which delegates can employ their critical thought processes and share ideas with their counterparts from around the world. We always prioritize teamwork and encourage our delegates to engage with others diplomatically and inclusively. In particular, our daises look for and promote constructive leadership that strives towards consensus, as delegates do in the United Nations. Realism and accuracy: Although a perfect simulation of the UN is never possible, we believe that one of the core educational responsibilities of MUN conferences is to educate students about how the UN System works. Each NHSMUN committee is a simulation of a real deliberative body so that delegates can research what their country has said in the committee. Our topics are chosen from the issues currently on the agenda of that committee (except historical committees, which take topics from the appropriate time period). This creates incredible opportunities for our delegates to do first-hand research by reading the actual statements their country has made and the resolutions they have supported. We also incorporate real UN and NGO experts into each committee through our committee speakers program and arrange for meetings between students and the actual UN Permanent Mission of the country they are representing. No other conference goes so far to deeply immerse students into the UN System. As always, we welcome any questions or concerns about the substantive program at NHSMUN 2021 and would be happy to discuss NHSMUN pedagogy with faculty or delegates. Delegates, it is our sincerest hope that your time at NHSMUN will be thought-provoking and stimulating. NHSMUN is an in- credible time to learn, grow, and embrace new opportunities. We look forward to seeing you work both as students and global citizens at the conference. Best, Rose Blackwell and JJ Packer Directors-General
IBRD
A Note on Research and Preparation |7
A Note on Research and Preparation
Delegate research and preparation is a critical element of attending NHSMUN and enjoying the conference’s intellectual and
cosmopolitan perspective. We have provided this Background Guide to introduce the topics that will be discussed in your com-
mittee. This document is designed to give you a description of the committee’s mandate and the topics on its agenda. We do not
intend to represent exhaustive research on every facet of the topics. We encourage and expect each of you to critically explore
the selected topics and be able to identify and analyze their intricacies upon arrival to NHSMUN in March. Delegates must be
prepared to intelligently utilize your knowledge and apply it to your country’s unique policy.
The task of preparing for the conference can be challenging, but to assist delegates, we have updated our Beginner Delegate
Guide and Advanced Delegate Guide. In particular, these guides contain more detailed instructions on how to prepare a
position paper and excellent sources that delegates can use for research. Use these resources to your advantage—they can help
transform a sometimes-overwhelming task into what it should be: an engaging, interesting, and rewarding experience.
An essential part of representing a state in an international body is the ability to articulate a given state’s views in writing. Ac-
cordingly, NHSMUN requires each delegation (the one or two delegates representing a country in a committee) to write a posi-
tion paper for both topics on the committee’s agenda. In delegations with two students, we strongly encourage each student to
participate in the research for both topics, to ensure that both students are prepared to debate no matter what topic is selected
first. More information about how to write and format positoin papers can be found in the NHSMUN Research Guide. To sum-
marize, position papers should be structured into three sections, described below.
I: Topic Background – This section should describe the history of the topic as it would be described by the delegate’s coun-
try. Delegates do not need to give an exhaustive account of the topic background, but rather focus on the details that are most
important to the delegation’s policy and proposed solutions.
II: Country Policy – This section should discuss the delegation’s policy regarding the topic. Each paper should state the policy
in plain terms and include the relevant statements, statistics, and research that support the effectiveness of the policy. Compari-
sons with other global issues are also appropriate here.
III. Proposed Solutions – This section should detail the delegation’s proposed solutions to address the topic. Descriptions of
each solution should be thorough. Each idea should clearly connect to the specific problem it aims to solve and identify potential
obstacles to implementation and how they can be avoided. The solution should be a natural extension of the country’s policy.
Each topic’s position paper should be no more than 10 pages long double-spaced with standard mar-gins and font size. We
recommend 2-4 pages per topic as a suitable length. The paper must be written from the perspective of the country you are
representing at NHSMUN 2021 and should articulate the policies you will espouse at the conference.
Each delegation is responsible for sending a copy of its papers to their committee Directors via myDais on or before 19 Febru-
ary 2021. If a delegate wishes to receive detailed feedback from the committee’s dais, a position must be submitted on or before
29 January 2021. The papers received by this earlier deadline will be reviewed by the dais of each committee and returned prior
to your arrival at the conference.
Complete instructions for how to submit position papers will be sent to faculty advisers via the email submitted at registration.
If delegations are unable to submit their position papers on time, they should contact us at info@imuna.org as soon as possible.
Delegations that do not submit position papers to directors will be ineligible for awards.
IBRD 8| Committee History Committee History Since the founding of the institution in 1944, the International Bank for Reconstruction and Development (IBRD) has been an international development cooperative aimed to provide financial instruments to middle-income nations.1 The IBRD eventually merged with the newly created International Development Association (IDA) in 1960, forming the World Bank Group.2 The role of the IBRD within the World Bank Group is to approve and service financial projects that reduce poverty and aid sustainable development in middle-income countries and creditworthy low-income countries.3 In contrast, the IDA’s focus resides in reduc- ing poverty by providing loans & grants for programs that increase economic growth in lower-income countries.4 The IBRD was established in 1944 through as part of the agreement of the Bretton Woods Conference.5 The initial purpose of the bank was to aid the financial burden of reconstructing post-war Europe, however, only 28 countries initially ratified the agreement.6 Originally the Bank provided financial resources for the reconstruction of member countries, with a particular focus on public infrastructure.7 When the founding of International Finance Corporation (IFC) created a space for increasingly private affairs in 1956, it motivated the IBRD to change its mandate to refocus on to providing financial services to middle-income developing nations.8 Previously, IBRD aided middle and low income countries in the development within both the public and private sector; the IFC allowed for IBRD to focus more on the economic development of countries within the public sector. 9 This change meant that projects and partnerships of IBRD would strictly pertain to sectors of the economy which are either fully controlled or owned by the government. Subsequently, the establishment of the International Development Agency (IDA) in 1960 along with the onset of the International Centre for Settlement of Investment Disputes and the Multilateral Investment Guarantee Agency allowed the IBRD to effectively transition to this new mandate.10 As a result of the creation of different financial institutions, IBRD has a specific mandate is to offer economic policy advice and offering financial products and policy recommendations to middle income countries.11 Currently, IBRD has 189 member nations that support the bank’s specific objectives of tackling global warming, eradicating poverty, and supporting sustainable economic growth.12 Through financial products such as loans, investment project financing, development policy financing, trust funds and grants, IBRD is able to accelerate and optimize development projects in middle- income developing nations.13 Some of the bank’s work includes fiscal management and infrastructure development in Kenya, establishing social protection reforms in Iraq, financing agricultural reforms in Peru, and broadening coverage and quality con- trol of Tuberculosis in India.14 In addition to approving financing, representatives or members of the Bank additionally act as 1 “Who We Are: International Bank for Reconstruction and Development,” World Bank, accessed 21 September 2019, https://www.world- bank.org/en/who-we-are/ibrd. 2 “History,” International Development Association - World Bank, accessed 6 September 2019, http://ida.worldbank.org/about/history. 3 Ibid. 4 “What Is IDA?” International Development Association - World Bank, accessed 12 September 2019, http://ida.worldbank.org/about/what-is- ida. 5 United States of America, “Proceedings and Documents of the United Nations Monetary and Financial Conference, Bretton Woods, New Hampshire, July 1-22, 1944” Volume I (n.d.): 1135 6 Ibid. 7 “History,” World Bank, accessed September 21, 2019. https://www.worldbank.org/en/about/history. 8 Ibid. 9 “The International Finance Corporation’s Approach to Engaging Clients for Increased Development Impact,” Independent Evaluation Group - World Bank Group, accessed 30 October 2019, https://ieg.worldbankgroup.org/evaluations/ifc-client-engagemen 10 Ibid. 11 Will Kenton, “International Bank for Reconstruction and Development (IBRD),” Investopedia, last modified 16 May 2019, https://www. investopedia.com/terms/i/international-bank-of-reconstruction-and-development.asp 12 “International Bank for Reconstruction and Development,” The Columbia Encyclopedia, last modified 21 September 2019, https://www. encyclopedia.com/reference/encyclopedias-almanacs-transcripts-and-maps/international-bank-reconstruction-and-development. 13 “Products and Services,” World Bank, accessed 21 September 2019, https://projects-beta.worldbank.org/en/projects-operations/prod- ucts-and-services. 14 “IBRD Activities and Achievements,” World Bank, accessed 21 September 2019, https://www.worldbank.org/en/who-we-are/ibrd/ impact; Program Towards Elimination of Tuberculosis,” World Bank, accessed September 21, 2019, https://projects-beta.worldbank.org/en/ projects-operations/project-detail/P167523.
IBRD
Committee History |9
consultants or advisors to projects in order to ensure financial projects are being ethically executed and money is being properly
distributed to the designated regions. The bank is managed by a Board of Governors, the different ministers which make up this
body are responsible for representing a number of countries, and typically delegate their numerous responsibilities downward.15
The Bank executes its mission to alleviate global poverty and promote economic development through the distribution of fi-
nancial services, primarily in the form of loans.16 These detailed loans specify where specific amounts of money are allocated to
improve access to basic services in local communities, augment short-term employment, and build long-term sustainability, as
done through the Iraq Social Fund for Development, which prioritizes building local capacity and developing human capital.17
Internally, loans can consist of different financial services which the Bank offers in order to aid countries within specific sec-
tors of the economy. Nearly every IBRD loan comes with an interest rate, which is determined through a country’s letter rating,
which corresponds to its financial status and repayment history.18 For example, Iraq has a current A maturity premium, allowing
it a 0.95% interest rate for a 10–12 year loan.19
Projects are financed through the IBRD’s investments in the international market.20 Since 1959, it has maintained a AAA credit
rating, allowing it to borrow at a low cost and offer this money to the middle-income countries that it services.21 On average, the
IBRD provided 169.9 million USD per operation in FY 2016–2017.22 The IBRD lent 22.6 billion USD to 133 different commit-
ments in the same fiscal year.23 These loans generally focus on financing infrastructure and other economic expansion projects,
eschewing development projects such as education to the IDA.24
When a country identifies a need for an external investment and have developed a loan distribution plan, they have the ability to
request a loan from the institution; therefore, the bank now initiates a new project for the respective state.25 Just like any financial
institution, the bank will undergo meticulous analysis of the project in order to approve the proposal. IBRD experts begin the
revision process by creating inquiries to the borrowing country like whether or not the project will benefit the state’s economy,
would the country be able to maintain the project once funds have been depleted, and many more inquiries.26 Recent projects or
loans from the Bank have taken form under the World Bank’s Human Capital Project: an overarching theme which has refocused
economic development to prioritize maximizing the value of citizens’ productivity, health, and education.27
Once an agreement has been reached between the two parties, the IBRD distributes the loan amount in installments, and ad-
vertently monitors the progress and use of funds.28 In addition to the creation of a repayment schedule, the bank establishes an
interest rate, interest period, and a front-end fee.29
15 “Who We Are: International Bank for Reconstruction and Development.”
16 Ibid.
17 “Iraq Social Fund for Development,” World Bank, accessed 28 September 2019, https://projects.worldbank.org/en/projects-operations/
project-detail/P163108.
18 “Lending Rates & Fees,” World Bank, accessed 28 September 2019, https://www.worldbank.org/en/about/unit/treasury/ibrd-financial-
products/lending-rates-and-fees.
19 Ibid.
20 “International Bank for Reconstruction and Development,” World Bank, accessed September 21, 2019, https://www.worldbank.org/en/
who-we-are/ibrd.
21 Ibid.
22 World Bank, The World Bank annual report 2017 : end extreme poverty, boost shared prosperity : Main report (English), accessed 30 October 2019,
http://documents.worldbank.org/curated/en/132951507537966126/Main-report.
23 Ibid.
24 Kenton, “International Bank of Reconstruction and Development (IBRD).”
25 “Getting to Know the World Bank,” World Bank, last modified 26 July 2012, https://www.worldbank.org/en/news/feature/2012/07/26/
getting_to_know_theworldbank.
26 Ibid.
27 “Human Capital Project: A Project for the World,” World Bank, accessed 30 October 2019, https://www.worldbank.org/en/publication/
human-capital.
28 Ibid.
29 “General Conditions for IBRD Financing: Program for Results ,” World Bank, last modified 7 2019, https://policies.worldbank.org/
sites/ppf3/PPFDocuments/c76a3e32377c4bb88bf817c612931511.pdf.
10|IBRD S imulation Simulation The International Bank for Reconstruction and Development (IBRD) is an international financial organization and economic development cooperative. An organization of the World Bank Group, the IBRD is not a United Nations body, but rather a global cooperative of 189 countries whose stake in the organization is a function of countries’ capital subscriptions, or financial commitments to the IBRD. Since voting powers are proportional to capital shares, delegates will all exercise equal representation and standing in committee discussions but will need to plan strategically to secure enough votes from key stakeholder countries to pass loan proposals. Loan proposals are one the most significant differences in the IBRD’s format in comparison to standard committees, as they are the final documents delegates will produce during the conference, rather than resolutions. Delegates will be acting as their respective country’s governor of the IBRD’s Board of Governors, which collectively has control over all bank operations, including the power to propose, develop, and approve loan agreements. Substantively, the IBRD exists to support the World Bank’s mission of ending extreme poverty and promoting inclusive, sustainable prosperity worldwide. To achieve these goals, the IBRD utilizes financial contributions from its member states to finance development projects worldwide on a country-by-country basis. The bank’s most common methods are providing development-based loans and advisory services specifically to middle-income and creditworthy low-income countries. Another World Bank Group organization, the Interna- tional Development Association, works specifically with lower-income countries. In this committee simulation, delegates will receive a loan request from the country in question with a general development strategy and a general range of requested financing. As the board of governors, delegates will review the loan request, discuss its strengths and weaknesses in the context of their knowledge and country policies, and agree upon a final loan proposal that meets the requesting country’s development objectives and credibly guarantees full and timely repayment to the bank; this is accomplished through targeted investments, prioritizing returns on investments, and the attachment of conditions to the loan. States requesting loans will not be present in committee, however, the dais will periodically communicate information on behalf of the requesting country. It is important for delegates to remember that the IBRD is simultaneously a financial and development organization—its man- date of poverty reduction and its operations as a bank cannot be disentangled. It is the role of delegates to identify and support the most promising development opportunities in the respective country they are considering and to take all necessary steps to ensure successful implementation and repayment of the loan. Since the IBRD grants loans at its own discretion, delegates have the ability to attach the conditions to loans, ranging from specific uses of subsets of financing to general requirements to ac- company approval of the loan. The IBRD committee is an economic simulation, where delegates are called on to make the greatest impact with limited resourc- es. The challenge for delegates is not to eliminate poverty in the requesting country—rather the committee calls for delegates to convincingly demonstrate the economic feasibility of their loan proposals and assure the committee that their strategy ensures full and proper repayment of the loan. Committee Procedures The following section will detail the differences between committee procedures in the IBRD and standard procedures in other NHSMUN committees. Setting the Agenda The process of setting the agenda will be the same as in other committees and will be subject to a simple majority vote. However,
IBRD
Simulation |11
the agenda item that the committee is debating at any given time will dictate what types of loan proposals will be considered by
the committee at any time. All loan proposals submitted to the dais must be related to the topic being considered.
Voting Procedure
On all procedural votes including points, motions, etc. standard NHSMUN procedure of one country, one vote, will continue
to apply. When voting procedure begins, each proposed amendment to the loan proposals will be voted on individually in the
order in which it was submitted. Only final, substantive voting on loan proposals will operate differently, based on each coun-
try’s financial shares in the IBRD. After the votes are counted, the number of shares that correspond to each voting option will
determine the voting outcome. The strategy of winning votes from countries with the largest voting shares is a key component
of the IBRD committee simulation that delegates are encouraged to prioritize seriously.
Components of a Loan Proposal
I. Executive Summary:
II. Total Amount of Loan
III. Proposed Project and Details
A. Disbursement Period 1, Amount of funding, in USD:
1. Sub-initiative: Amount of funding, in USD,
a. Strategic Focus and Implementation
b. Return on Investment Projections
c. Conditionality: Exceptions, notions, etc.
2. Sub-initiative: Amount of funding, in USD,
a. Strategic Focus and Implementation
b. Return on Investment Projections
c. Conditionality: Exceptions, notions, etc.
B. Disbursement Period 2, Amount of funding, in USD:
1. Sub-initiatives, as before
IV. Disbursement Schedule
Allocations Dollar amount allocated (in USD)
1) Disbursement Period 1
2) Disbursement Period 2
3) Disbursement Period 3
4) Disbursement Period 412|IBRD
S imulation
5) Front-end fee
6) Total amount
V. Repayment Schedule
A. Maturation Period (in years)
B. Grace Period (in years)
C. Interest Rate (in percent)
VI. General Conditions
A. Condition 1
B. Condition 2 (and so on…)
The executive summary should provide a brief context for the country, its development challenges, and the strategy of the loan
proposal’s sub-initiatives. It should highlight the specific areas where investment is likely to create the greatest impact and bring
the highest financial returns to the target country. Additionally, the section should generally overview the feasibility of the loan
proposal, objectively evaluate the country’s ability to repay its loan within the given period and identify what specific channels the
country can look to for the necessary revenue. Vague statements that promise loan repayments are insufficient in this section, for
example, “Burkina Faso is certain that Iraq it will be able to repay this loan,” does not affirm the project’s credibility. Statements
about the country’s history of loan repayment or default and other reliable information will bolster the integrity of the proposal.
The “proposed project and details” section should be the longest section by far, separated by disbursement periods as deter-
mined by the committee. Times between disbursement periods can range from months to years and are useful instruments when
one portion of the loan proposal builds on another. The strategic focus and implementation section should describe the specific
actions the bank and country will take to carry out an investment, and what steps the two will take to ensure the successful op-
eration of the investment. The “return on investment projections” section should specifically detail how the amount of funding
requested will benefit the country or sector, and how exactly those benefits can be translated into returns that the country can
easily repay to the bank within the maturation period. Finally, the “conditionality” section is where delegates will specify how
exactly the funding must be used, and if the receiving country must take specific actions or meet specific benchmarks in order
to receive the funding. The purpose of these conditions is typically to ensure effective implementation and credible repayment
of the loan.
The total amount of funding should include a total sum of the funds listed in the “proposed project and details section,” which
is closely tied to the repayment schedule. This section will detail the logistical information of the loan itself, specifically the
maturation period, grace period, and interest rate. The maturation period is the total time in which the loan must be repaid. The
grace period is the amount of time the borrowing country can delay repayment if necessary. Finally, the interest rate is the annual
continuously compounded rate of interest accrued by the borrowing country.IBRD
NHSMUN 2021
Topic A:
Increasing Economic Empowerment and Financial Inclusion for Women in Albania
Photo Credit: Chris Walts14|TL opic A: Increasing
oan Request
Economic Empowerment and Financial Inclusion for Women in Albania
Loan Request
Albania seeks a loan proposal to facilitate the economic empowerment of women. The primary goal
of this loan is the development and expansion of the economy through greater economic integration
for women. Albania seeks to alleviate the remaining barriers women face in social, political, entre-
preneurial, and public spaces. In the past decade, Albania has successfully made necessary changes
to improve the conditions of women in society. However, it seeks to implement infrastructural im-
provements that increase the economic participation of women. The Republic of Albania is request-
ing an extensive loan of USD 65–125 million from the International Bank of Reconstruction and
Development to expand current and create new programs, strengthen social and legal connections
and protections, encourage entrepreneurship among women, and increase financial literacy and inclu-
sion. This loan proposal is not a conclusive or exhaustive final product of the committee, but rather
a foundation that delegates should utilize to create concise proposals throughout the committee.
Within this proposal, Albania is asking for the following aspects to be considered:
I. Approximate Total Request: USD 65–125 Million
II. Strengthening the Entrepreneurial Sector for Women (USD 50–70 million)
A. Sub-initiatives increasing community-based resources to encourage entrepreneurial skills among women who may
not have been exposed to such skills before.
B. Sub-initiatives increasing access to financial resources and assistance to enable innovation and the creations of
small and medium enterprises (SMEs). The following should be emphasized in the loan:
1. A need for rural areas to have access to financial institutions.
2. A means by which women can obtain financial literacy and assistance.
C. Sub-initiatives encouraging the private sector to hire female entrepreneurs and workers in both new and previously
established companies.
III. Implementation of Protections and Social Resources (USD 50–65 million)
A. Sub-initiatives to encourage a means for women facing domestic violence or other dangerous domestic situations
to have access to social support, legal aid, and/or safety with an emphasis on sufficient enforcement.
B. Sub-initiatives including social services when or before filing a report to protect from negative pressures surround-
ing pressing charges.
C. Sub-initiatives encouraging women to leave the informal labor sector and enter the formal workforce by:
1. Encouraging impacted women to join legitimate businesses or increase their access to resources that support
economic endeavors.
2. Alleviating the increased likelihood of women being tasked with the responsibilities of traditional informal
work on top of the expectations of additional formal employment.
IV. Expand Public Sector to Strengthen Protections and Opportunity (USD 20–30 million)Topic A: Increasing Economic Empowerment and Financial Inclusion for Women in Albania
Strategic Focus |15
A. Sub-initiatives increasing the security and enforcement of property rights, regardless of gender but with an empha-
sis on women’s property rights protection. Funding can go to the following third parties or organizations:
1. Organizations with a focus on legal aid,
2. Organizations emphasizing the need for social support,
3. Organizations offering bargaining assistance in land acquisition to be utilized (or created).
B. Sub-initiatives increasing accessibility to government resources and utilizing law enforcement reform to make legal
action more approachable and attainable. The following ideas should be considered:
1. The emphasis on the separation of traditional norms and legal proceedings.
2. A focus on survivor protection from potential social dangers (i.e., blood feuds or threats) from an opposing
party.
C. Sub-initiatives expanding resources into educational opportunities for young women still in primary and secondary
education. Such initiatives may include:
1. An addition of financial literacy, women’s rights, and mechanisms of encouragement for financial indepen-
dence to the curriculums.
2. Incorporating equality into formal education, which may include highlighting gender-based violence in a
negative light.
Strategic Focus to make independent financial decisions, obtain access to de-
cent work, and participate in innovation and business building.1
Albania has experienced a significant transformation in recent
On the whole, women are underrepresented in the workforce,
years, driven by new political, economic, and social initiatives.
limiting Albania’s economic potential. However, women are
With the help of the World Bank Group and other donor
actually overrepresented in the public sector, suggesting a de-
organizations, Albania has made necessary changes to infra-
sire to participate in the economy.2 Women are rarely business
structure and political reforms that have made it a powerful
player on the international stage. However, there are still rem- owners or elected to high positions within a company, nor do
nants of the country’s tumultuous post-communist transition they often own property. Beyond this, women in Albania are
period and, more apparently, codes of customary law that more likely to work informally or feel pressure to maintain
have embedded patriarchal structures in Albanian society. As their informal work in the home while maintaining public or
a result, Albanian women have largely been left out of Al- private sector work. Women’s economic empowerment is im-
bania’s forward progress and growth. They are subjected to perative for any country’s economic development, as broader
social barriers in everyday life and are disproportionately left gender equality creates human capital development, a key cat-
out of Albania’s formal workforce. alyst for economic expansion.
Women’s economic empowerment seeks to provide women The European Union’s (EU) efforts, alongside other organi-
with economic opportunities and provide them with chances zations such as the World Bank, towards Albania’s develop-
1 “Facts and Figures: Economic Empowerment,” UN Women, accessed June 3, 2020, https://www.unwomen.org/en/what-we-do/econom-
ic-empowerment/facts-and-figures.
2 “Economic Empowerment,” UN Women, accessed June 3, 2020, https://eca.unwomen.org/en/where-we-are/albania/economic-empow-
erment.16|TS opic A: Increasing
trategic Focus
Economic Empowerment and Financial Inclusion for Women in Albania
ment through gender equality have been extremely important. to decent work, participate in existing markets, and potentially
The process of Albanian success to the EU has been benefi- creating new markets is the core of economic empowerment.5
cial, as it has opened numerous doors for funding and devel- Economic empowerment also provides them with an outlet
opmental opportunities that can advance women’s economic of strength and individual control, which is imperative in
empowerment in Albania. IBRD’s abilities and services can cases of domestic abuse or in societies where social stigma
offer Albania another means of empowering its women, but restricts women from maintaining control of property and fi-
this time focusing on their economic potential and rights. This nances, such as in Albania.6 As of 2018, women are still well
committee has the power to structure a loan proposal to pro- behind men in property and enterprise ownership, control of
vide opportunity and independence through policy sugges- assets, and earnings, and are more likely to face advancement
tions, programming details, and innovative thinking. Keeping barriers, regardless of educational attainment.7 Women’s eco-
in mind IBRD’s mandate, delegates should seek to focus on nomic empowerment focuses on the distinct issues women
the economic aspects of the issues, even when social barriers face to achieve financial independence and security, which is a
are being discussed. core value of gender equality.
In Albania, centuries-old traditions continue to apply social
Women’s Economic Empowerment
pressures on women and young girls to fulfill normative roles
For centuries, women have fought for equal rights, and gender as caretakers and homemakers.8 Therefore, even when legisla-
equality has been recognized as an increasingly urgent global tion is created to protect at-risk women, a lack of support, aid,
issue. The United Nations defines gender equality as not only and legal resources prevents meaningful social change.9 Mi-
providing women with the power to act independently but croaggressions and deeply rooted belief systems can inhibit
also allowing women to access the greatest range of econom- young girls from gaining the confidence and knowledge need-
ic benefits in their communities and their countries.3 Despite ed to become socially and financially independent as adults.
recent strides towards this goal of gender equality, women For example, a young girl in school may become interested in
still face harsh inequalities in some of the most progressive STEM but have no support system to offer encouragement
countries in the world. Women globally face inequalities rang- or guidance. Instead, she is faced with ridicule or is pushed
ing from required participation in informal labor to gender- towards an “easier” field. There is an increased probability
based violence that can be seen everywhere in conflict zones that she will not continue to pursue those interests or find it
to highly developed urban centers.4 In a world dictated by the difficult to access adequate resources to assist in professional
economic might of states, the IBRD and member states alike development and further education.
must work towards equal representation and participation of
As a result of psychological and cultural factors, women often
women in public life to achieve true gender equality.
disproportionately partake in informal sectors of the econ-
Women’s empowerment focuses on creating women-specific omy. Formal versus informal employment is determined by
policies, aid mechanisms, and support to create options that whether or not goods and services are taxed/registered by the
ultimately lead to greater financial independence. Women’s government; for example, working in a restaurant is a formal
ability to make independent financial decisions, obtain access role, while undocumented childcare is an informal role.10 For-
3 “Economic Empowerment.”
4 “Economic Empowerment.”
5 “Facts and Figures: Economic Empowerment.”
6 “Pursuing Women’s Economic Empowerment,” IMF, Washington D.C., 2018, 1-25.
7 “What is Women’s Economic Empowerment and Equality?” International Center for Research on Women, 2018, https://www.icrw.org/wp-
content/uploads/2018/04/CWEEE_OnePager_FINAL-1.pdf.
8 Fjori Sinoruka, “Tradition Denies Albanian Women Right to Property,” BIRN, Balkan Insight, September 3, 2019, https://balkaninsight.
com/2019/09/03/tradition-denies-albanian-women-right-to-property/#.
9 Eyerusalem Siba, “Empowering women entrepreneurs in developing countries,” Brookings Institute, February 15, 2019, https://www.brook-
ings.edu/research/empowering-women-entrepreneurs-in-developing-countries/.
10 Paulina Restrepo-Echavarria and Maria A. Arias, “What is the Informal Labor Market?” FederalTopic A: Increasing Economic Empowerment and Financial Inclusion for Women in Albania
Strategic Focus |17
would increasing formal sector participation protect women
against exploitation, but it would also lead to greater accuracy
in country-wide economic reporting. Closing the gender gap
can foster stable development in growing countries as it is as-
sociated with increased diversification of exports, which less-
ens the likelihood of a single commodity reliance or relying on
a singular good as the backbone of economic trade.14
Economic empowerment cannot be fully achieved without
the development of financial inclusion for all individuals, in-
cluding women. Many programs and initiatives focus on de-
Women’s March in Amsterdam, January 21, 2017
veloping communities as a whole. More organizations, such
mal employment typically offers a safer, more stable mode as the UN, the Organisation for Economic Cooperation and
of employment as it is subjected to government regulation Development (OECD), the EU, the African Union, various
NGOs, and nonprofits, have begun to create female-specific
and protections. In contrast, informal labor often results in
initiatives. These come as more and more people begin to un-
the exploitation of workers, insufficient wages, and inhumane
derstand the intricate complexities that women everywhere
working conditions.11 While it is often difficult to tabulate
face when trying to break through the glass ceiling that men
how much of the economy is situated in the informal sector,
do not necessarily have to face. The United States Agency
a 2018 International Labour Organization study found that
for International Development’s (USAID) Office of Gender
informal sector employment accounted for over 60 percent
Equality and Women’s Empowerment has an emphasis on
of the global economy.12 This can confidently be interpreted
work in women’s economic empowerment and gender-based
to show that participation in the informal sector is still signifi-
violence (GBV) prevention. Currently, in partnership with
cantly high.
the White House, they are working on the Women’s Global
The financial inclusion of women has been shown to in- Development and Prosperity Initiative, which intends to raise
crease economic diversification and decrease income inequal- equal economic opportunity as a top priority of the state’s
ity, in turn, also increasing overall growth domestic product developmental engagement.15 As a result of the Ottawa Con-
(GDP) and GDP per capita.13 GDP is a measurement of all ference in 2011, UN Women and Canada collaborated to pro-
completed goods and services made within a country dur- duce an online platform, Empower Women, to share infor-
ing a given period. GDP per capita is GDP adjusted for the mation about the movement with a special focus on research.
population of a country. Each of these measurements is used This has since amassed a large global following and partner-
as an indicator of development and economic growth. How- ships from over 70 countries.16 Cultural and societal gender
ever, GDP calculations notably do not include any goods or norms often have a stronger influence on the daily lives of
services produced in the informal sector. Therefore, not only women than legislation can, especially in regions with poor
Reserve of St. Louis, April 18, 2017, https://www.stlouisfed.org/on-the-economy/2017/april/informal-labor-market.
11 Cristina Mihes et al., “A comparative Overview of Informal Employment in Albania, Bosnia and Herzegovina, Moldova and Monte-
negro,” International Labor Organization, February 15, 2011, https://www.ilo.org/wcmsp5/groups/public/@europe/@ro-geneva/@sro-
budapest/documents/publication/wcms_167170.pdf.
12 “More than 60 per cent of the world’s employed population are in the informal economy,” International Labour Organization, April 30, 2018,
https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_627189/lang--en/index.htm.
13 “Pursuing Women’s Economic Empowerment.”
14 Romina Kazandjian et al., “Gender Equality and Economic Diversification,” IMF working paper, 2016, 2-29, https://www.imf.org/en/
Publications/WP/Issues/2016/12/31/Gender-Equality-and-Economic-Diversification-44091.
15 “Women’s Economic Empowerment,” United States Agency for International Development, accessed June 20, 2020, https://www.usaid.gov/
what-we-do/gender-equality-and-womens-empowerment/womens-economic-empowerment.
16 “Our Story,” EmpowerWomen, accessed July 17, 2020, empowerwomen.org/en/who-we-are/about-us.18|TS opic A: Increasing
trategic Focus
Economic Empowerment and Financial Inclusion for Women in Albania
enforcement of gender equality regulations.17 Keeping these such as blood feuds and violence against women, are outlawed
complexities in mind is fundamental to devising adequate and by the Albanian State, poor enforcement in some parts of the
effective solutions for Albania, and any country, as women country enables these behaviors to persist.
everywhere face social impediments inhibiting their advance-
Blood feuds persist in Albanian society, justified by the codi-
ment and full independence.
fied laws of the Kanun. These feuds are a blood-for-blood
mode of vengeance in which a family of a murdered person
Traditional Women’s Roles in Albania
has “a duty to avenge the killing” by killing a man over the
The Republic of Albania has had a long, tumultuous history, age of 18 from the murderer’s family.24 For centuries, many
but ethnic Albanian culture has survived multiple transitions. believed that women were not as affected by these actions
The persistence of Albanian culture has led to a strong sense because they were never the target of said vengeance. How-
of traditional gender roles for women.18 These traditions, in- ever, as wives, sisters, mothers, daughters, and people of any
scribed in the Kanun (or Canon), continue to influence the relation to victims, they are impacted by the consequences of
ways women are viewed and valued in society ever since their such actions. As a result of these social norms, women sel-
codification in the 15th century. The Kanun is a conglomerate dom have ownership of property in their name. Therefore,
of traditional Albanian code passed down orally for centuries, if their husband or son is killed, their property can poten-
but it was formally compiled in the 19th century. While several tially be disputed by the husband’s family. Additionally, when
of the accepted actions listed in the Kanun are technically a family has a target on their backs, they often hide outside
outlawed today, it still has a strong influence on the practices of their hometown or even within their homes by not allow-
of Albanian people, especially in northern Albania.19 These ing any male family member to leave the house.25 Particularly
laws emphasize specific stereotypical gender roles and the idea in 2019, these actions were estimated to affect approximately
of “head for a head,” in which a family is allowed to seek ven- 1,000 families.26 However, regardless of these ramifications,
geance through the murder of a man of their enemy family.20 women in families affected by blood feuds were not included
as a “vulnerable group” in any strategic documents from the
Additionally, the traditional codes depict women as property
state, including the National Strategy for Gender Equality and
and as less than men; their very existence must always be tied
Reduction of Gender-based Violence and Domestic Violence
to either their father or their husband.21 As a result, the female
before 2011, or the National Strategy of Social Inclusion
line of descent is not considered legitimate, and women were
2007–2013.27 In later versions of strategic measures set forth
never given a share of the familial property as their husband
by the government of Albania, women in families involved
would be given his family’s property.22 Typically, women were
in blood feuds were included, but judicial inefficiency has en-
expected to be the caretakers of the family, which includes the
abled these feuds to continue, putting women at continued
children, the husband, elderly relatives, and home. In contrast,
risk.
male family members assumed the role of the breadwinners.23
Although several of these codified practices in the Kanun, During Albania’s time under Enver Hoxha’s communist re-
17 “Empowering women entrepreneurs in developing countries.”
18 Sidita Kushi, “Gendered legacies of Communist Albania: a paradox of progress,” openDemocracy, openDemocracy, July 9, 2015, https://
www.opendemocracy.net/en/5050/gendered-legacies-of-communist-albania-paradox-of-progress/.
19 George Gawrych, The Crescent and the Eagle: Ottoman Rule, Islam and the Albanians, 1874-1913, I.B.Tauris, 2006, 3.
20 The Crescent and the Eagle.
21 The Crescent and the Eagle.
22 “Tradition Denies Women Property.”
23 “Tradition Denies Women Property.”
24 Samir Kajosevic, “Montenegro Albanians Take Pride in Abandoning Ancient Blood Feuds,” Balkan Insight, June 29, 2020, https://
balkaninsight.com/2020/06/29/montenegro-albanians-take-pride-in-abandoning-ancient-blood-feuds/.
25 Saemira Pino et al., “Effects of blood feuds on albanian girls and women,” Albanian Institute for Public Affairs, Tirana, May 2013, DOI:
10.13140/RG.2.2.22939.05925.
26 Lolo Ap Dafydd, “Albania’s blood feuds put society in danger,” TRTWorld, March 10, 2019, https://www.trtworld.com/europe/albania-
s-blood-feuds-put-society-in-danger-24819.
27 Pino, “Effects of blood feuds.”You can also read
