BACKGROUND SPECPOL Topic A: Promoting Sustainable Foreign Investment in Formerly Colonized States - IMUNA
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BACKGROUND SPECPOL
GUIDE
Topic A: Promoting Sustainable
Foreign Investment in Formerly
Colonized States
Topic B: Addressing Political
2 0 2 1 Violence in Contested Territories
Email: info@imuna.org
Phone: +1 (212) 652-9992
Web: www.nhsmun.org
Secretary-General Dear Delegates,
Maura Goss
It is with my utmost pleasure that I welcome you all to the Special Political and Decolonization
Directors-General
Committee (SPECPOL) for the 2021 National High School Model United Nations conference! My
Rose Blackwell
Co-Director, Anna Walter, and I are looking forward to engaging in a debate discussing essential
JJ Packer
topics regarding the global community. We hope that this background guide will serve as a founda-
Conference Services tion for your beginning research into these two topics.
Hannah Lilley
Alisa Wong Before joining NHSMUN staff, I was an active member of my high school’s MUN program, at-
Delegate Experience tending RUMUN, NAIMUN, and NHSMUN. Within my own experience as a delegate, I learned
Akanksha Sancheti the essentials for diplomatic debate and improved my public speaking abilities. Doing MUN in
John Wood high school truly shaped part of my personality today, and I owe a lot of my confidence to these
conferences. I knew that I had to give back in the same way my directors gave back to me. Last
Global Partnerships
Sofia Fuentes year, I was an Assistant Director for the World Health Assembly (WHA). I loved my experience of
Salmaan Rashiq being on the other side of the dais and knew that I had to apply to be a Director for this upcoming
conference!
Under-Secretaries-
General Currently, I am a rising sophomore at the University of Pennsylvania after having transferred from
Jon Basile
Rutgers University this past year. I plan to major in Mathematics and Economics with a minor in
Ankita Bhat
Anthropology, and I hope to go into business. At Rutgers, I was an active member of my Student
Beatriz Circelli
Caitlyn Johnson Managed Fund, an investment fund with a portfolio of almost 200,000 dollars. I was also an As-
Patrick Leong sistant Director for RUMUN through the Institute for Domestic and Internal Affairs (IDIA), the
Kathy Li Rutgers organization that hosts high school conferences.
Pablo Maristany de
After much research, we selected two topics that we believe to be especially interesting for the
las Casas
McCall Olliff international stage: “Promoting Sustainable Foreign Investment in Former Colonies” and “ Ad-
Abolee Raut dressing Political Violence in Contested Territories.” As a delegate, you should consider how certain
Pranav Reddy forms of aid can add to aid dependency and how the context of territorial conflict can contribute
Clare Steiner to continued political violence. Both of these topics contain a wealth of information, which is why
Ann Williams the background guides will attempt to address many different angles of the problem to create more
sustainable political solutions. These background guides are tools to promote your research, and we
encourage all of you to go beyond the material that we have covered.
Please do not hesitate to contact Anna or me with any questions or concerns you may have, and
we will happily help you. Good luck with your research, and I look forward to seeing you all this
upcoming March!
Benjamin Kitto
ben.kitto@imuna.org
Special Political and Decolonization Committee
Session I
Email: info@imuna.org
Phone: +1 (212) 652-9992
Web: www.nhsmun.org
Secretary-General Hello everyone!
Maura Goss
I am so excited to welcome you all to NHSMUN 2021! My name is Anna Walter, and I am the
Directors-General
Session II Director of the Special Political and Decolonization Committee (SPECPOL). Along
Rose Blackwell
with my Co-Director Ben Kitto, we are excited to explore these important but complex issues in
JJ Packer
committee.
Conference Services
Hannah Lilley I am a rising sophomore at the College of Charleston in Charleston, South Carolina, and I am cur-
Alisa Wong rently double majoring in history and international studies with a regional concentration in Asia. I
Delegate Experience am an Asian Studies minor, and in my second year of learning Mandarin Chinese, in which I hope
Akanksha Sancheti to someday earn fluency.
John Wood
The topics that Ben and I have chosen to debate, “Promoting Sustainable Foreign Investment in
Global Partnerships Former Colonies” and “Addressing Political Violence in Contested Territories,” are some of the
Sofia Fuentes most significant political issues facing the world today. They address some of the insidious, lin-
Salmaan Rashiq gering effects of the old form of imperialism and begin to address the modern imperialism that
Under-Secretaries- scholars are still trying to understand. We believe that both these topics are relevant and will create
General interesting debate in committee, and hope that our Background Guide will serve as a great source
Jon Basile
in your research.
Ankita Bhat
Beatriz Circelli I have been a part of NHSMUN in some capacity for the past three years, and I am incredibly
Caitlyn Johnson excited to be back. I participated as a delegate in NHSMUN 2018 and 2019, and for NHSMUN
Patrick Leong 2020, I was Assistant Director for Session II of SPECPOL. Even though things have certainly been
Kathy Li
strange this year, I am looking forward to NHSMUN 2021 more than ever, and I hope we will be
Pablo Maristany de
able to have a great committee experience together. As a high school student, Model UN has pro-
las Casas
McCall Olliff vided me with a community and an opportunity to discuss real international issues, and I hope your
Abolee Raut experience at NHSMUN will do the same.
Pranav Reddy
I can’t wait to meet all of you and see you engaging in debate!
Clare Steiner
Ann Williams Anna Walter
annelisa.walter@imuna.org
Special Political and Decolonization Committee
Session II
SPECPOL 4| Table of Contents Table of Contents A Note on the NHSMUN Difference 5 A Note on Research and Preparation 7 Committee History 8 Promoting Sustainable Foreign Investment in Formerly Colonized States 9 Introduction 10 History and Description of the Issue 11 Current Status 20 Bloc Analysis 26 Committee Mission 28 Addressing Political Violence in Contested Territories 29 Introduction 30 History and Description of the Issue 30 Current Status 44 Bloc Analysis 49 Committee Mission 51 Research and Preparation Questions 52 Important Documents 54 Works Cited 56
SPECPOL
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 and most diverse largest 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.
SPECPOL 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
SPECPOL
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.
SPECPOL 8| Committee History Committee History The Special Political and Decolonization Committee, otherwise known as the Fourth Committee, is a body within the General Assembly of United Nations committees to combat issues pertaining to post-colonial repercussions, ethnic clashes, and other issues that the United Nations deems special political matters; issues including the peaceful pursuit and use of spacefaring, atomic radiation, peacekeeping, human rights, and mine action.1As one of the General Assembly committees, SPECPOL’s member states include all 193 members of the United Nations; however, even nations that are not member states may bring forward disputes.2 The internationally diverse organization collaborates heavily with other organs of the United Nations, including but not limited to the Special Committee on Decoloniza- tion (C-24) and the Special Committee on Peacekeeping Operations (C-34). Both of these organs focus on addressing issues of peacekeeping and post-colonialism and analyzing and allotting changes to operations to assist the growth of the developing world.3 Also, SPECPOL has worked in tandem with the United Nations Relief and Works Agency for Palestinian Refugees in the Near East, the Committee on the Peaceful Uses of Outer Space (COPUOS), and the United Nations Scientific Committee on the Effects of Atomic Radiation to create legislative proposals and treaties to aid communities living in adverse conditions.4 Initially, the Fourth Committee was created solely to manage and issues relating to decolonization following the Sec- ond World War.5 However, in 1994 the trusteeship program was dismantled, following the eventual independence of inherited League of Nations mandates, meaning that decolonization issues decreased and accordingly, the Fourth Committee was left with significantly fewer responsibilities.6 Consequently, following the General Assembly’s 1990 declaration of the First International Decade for the Eradication of Colonialism, in 1993, the 48th Session saw the Fourth Committee merge with an additional main committee dedicated to answering political questions: the Special Political Committee (SPC).7 As a result of being tasked with such a wide range of issues, the Fourth Committee’s agenda covers varied topics, ranging from investment opportunities and the Israeli-Palestinian conflict.8 In 2018, SPECPOL condemned the detention, injury, and killing of women and children Palestinian refugees, as well as Agency staff members, and continued to urge for a ceasefire along the Gaza Strip.9 In the same session, SPECPOL also advocated for additional funds to be allocated to the United Nations Scientific Committee on the Effects of Atomic Radiation.10 Although SPECPOL cannot authorize military action, due to the committee’s focus, it often works alongside the Security Council to make recommendations relating to international peace and security, including disarmament, the regulations of armaments, and military action.11 1 “Special Political and Decolonization (Fourth Committee),” (United Nations), accessed 9 September 2020, https://www.un.org/en/ga/ fourth/. 2 “Charter of the United Nations - Chapter IV: The General Assembly,” United Nations, n.d., https://www.un.org/en/sections/un- charter/chapter-iv/index.html. 3 “Special Political and Decolonization (Fourth Committee),” (United Nations); “General Assembly of the United Nations Rules of Pro- cedure” (United Nations), accessed 9 September 2020, https://www.un.org/Depts/DGACM/Uploaded%20docs/rules%20of%20proce- dure%20of%20ga.pdf. 4 “Special Political and Decolonization (Fourth Committee),” (United Nations) 5 “Decolonization,” United Nations, n.d., https://www.un.org/en/sections/issues-depth/decolonization/. 6 “International Decades for the Eradication of Colonialism”, United Nations, n.d., https://www.un.org/dppa/decolonization/en/his- tory/international-decades. 7 “Revitalization of the Work of the General Assembly,” (United Nations, n.d.), https://www.un.org/ga/search/view_doc.asp?symbol=A/ RES/47/233.; “UN Documentation: General Assembly,” Dag Hammarkjöld Library, last modified 16 July 2020. https://research.un.org/ en/docs/ga/committees. 8 “Special Political and Decolonization (Fourth Committee) - Documents of the 73rd Session,” United Nations, n.d., https://www.un.org/ en/ga/fourth/73/documentation73.shtml. 9 UN General Assembly, Operations of the United Nations Relief and Works Agency for Palestine Refugees in the Near East, A/C.4/73/L.16, 5-6 (14 November 2018), https://undocs.org/en/A/C.4/73/L.16. 10 UN General Assembly, Effects of Atomic Radiation, A/C.4/73/L.13, ¶ 1 (5 November 2018), A/C.4/73/L.13. https://undocs.org/ en/A/C.4/73/L.13. 11 “Charter of the United Nations,” (United Nations)
SPECPOL
NHSMUN 2021
Topic A:
Promoting Sustainable Foreign Investment in Formerly Colonized States
Photo Credit: cwizner, Indie_charles
10|TC opic A: Promoting
ommittee History
Sustainable Foreign Investment in Formerly Colonized States
Introduction
The flow of money between countries around the world is an essential part of globalization and
modern economic reality. However, inequalities rooted in colonialism mean that this flow of money
does not benefit all countries equally—rather, it often serves to enrich the wealthiest countries and
exploit the poorest. Too often, foreign investment reinforces colonial-era dynamics of dependency
and exploitation, making it an urgent matter for the Special Political and Decolonization Committee.
Although it may appear to be a purely economic issue at its As such, the world’s most vulnerable states and people are
surface, foreign investment is heavily tied to government ac- disproportionately impacted by this issue—developing coun-
tion. Not only are foreign aid and development loans impor- tries with weak institutions, and laborers with no choice but
tant aspects of discussion surrounding foreign investment, to work for whatever jobs are available for their survival, no
but private entities investing in foreign countries are limited matter how exploitive.
by the governments of both the home and recipient states. As
The most severe form of exploitive foreign investment is co-
such, Sustainable Development Goal 16: Peace, Justice, and
lonialism, in which a colony exists solely for the enrichment
Strong Institutions is especially relevant to this topic—when
of the mother country. However, this dynamic is usually not
countries receiving foreign investment, aid, or loans do not
as clear-cut today as in the years of the Scramble for Africa,
have institutions strong enough to operate without foreign
giving rise to the term neocolonialism, referring to when for-
help, regulate multinational corporations, or enforce the labor
mer colonizing states continue to control and exploit their
rights of their citizens, exploitation occurs.
former colonies through political and economic pressure.
The issue of sustainable foreign investment affects nearly ev- Given that their former colonizers built their modern political
eryone, as we are all surrounded by products of multinational and economic systems, it is understandable that former colo-
corporations. We are all citizens of countries that either send nies struggle to resist this type of manipulation. The rise of
or receive aid, but those living in developing countries and multinational corporations has also increased the severity of
other countries receiving large amounts of foreign investment the issue, as massive private entities could then use financial
are disproportionately affected by the issues resulting from leverage to influence the actions of developing countries. The
the globalized aid network. The governments of developing need for climate action also exacerbates the issue—pursuing
countries are affected by foreign investment primarily through sustainable foreign investment is necessary for climate action
in the developing world.
threats to their sovereignty. When foreign countries or busi-
nesses funnel a significant amount of money into a country, One of the obstacles to solving manipulative foreign invest-
it gives them a say in that country’s affairs, as a government ment is weak institutions in developing countries, which are
is likely to act in a corporation’s interests if that corporation often either not strong enough or not in the financial position
brings significant economic opportunity to the country’s in- to decline foreign investment of any kind, especially when
habitants. Naturally, this creates a conflict of interest—mul- accompanied by political pressure. Additionally, difficulty in
tinational corporations putting money into the developing controlling private actors, namely multinational corporations,
world are not concerned with the labor rights of citizens or is a barrier to progress. Governments where multinational
their impact on the local economy. Additionally, countries corporations are headquartered are reluctant to regulate busi-
giving aid and loans to developing countries often possess ness or interrupt such major economic powerhouses. On the
ulterior motives of manipulating the recipient country to be other side, the governments of developing countries do not
aligned with the foreign policy of the donor, or creating a have the resources to combat corruption and stand up for the
dependent relationship that would allow the donor to exer- rights of their citizens. Together, these forces create a dan-
cise political or economic control over the recipient country. gerous environment that can threaten these countries’ hard-Topic A: Promoting Sustainable Foreign Investment in Formerly Colonized States
History and Description of the Issue |11
fought sovereignty.
History and Description of the Issue
Foreign investment has a long history of being used manipu-
latively. By nature of the transfer of money from one entity to
another, it creates a power difference—the investor or lender
has established themselves as a source of support, and the
recipient has become indebted or dependent in some capacity.
These power structures have been exploited by multinational
corporations, who invest in developing countries under the
guise of economic stimulation or other countries that lend or
invest money to use it as political leverage.
Historical Background of Foreign Investment
The historical legacy of foreign investment is fraught with
contradictions. It is sometimes used as a humanitarian rebuild-
ing mechanism, and other times as a geopolitical power move,
or potentially both at the same time. Thus, it is often difficult
to differentiate between investments made with the genuine A sign in German that translates to “For European recovery, supplied by the Unit-
purpose of development and international cooperation and ed States of America.”
aid given with the manipulative intentions of dependency or well-known examples of the United States funneling a sig-
resource exploitation. nificant amount of aid towards developing a region in need.
The Marshall Plan cannot be understood without considering
Modern attitudes surrounding foreign aid and investment can
the donor-recipient dynamic and the broader economic and
be understood as a sort of historical paradigm: a particular
political effects of this aid project, all of which informed the
lens to interpret historical events. In the aftermath of the
United States’ relationship with European states for years to
Second World War, international cooperation seemed like
come. The United States, as victors of the war, had a signifi-
the best way forward for lasting peace after the general dis-
regard for international law and wrestling alliances that con- cant amount of financial leverage in the post-war world, much
tributed to the start of both world wars.1 The creation of the of which it maintains to this day.4 This allowed the United
United Nations is evidence of this, as is much of our current States to become a political powerhouse, as well as a key donor
understanding of foreign aid and investment as a primarily state. It is worth noting that the Marshall Plan considered a
humanitarian act.2 This historical understanding can be ana- catalyst for the North Atlantic Treaty Organization (NATO),
lyzed through the Marshall Plan, a USD 15 billion aid project a defense alliance that aligned member states with the United
through which the United States largely reconstructed post- States (and therefore democracy and capitalism) against the
war Europe.3 The Marshall Plan was one of the first and most USSR and communism.5 The Marshall Plan exhibits how
1 “The Origins of World War One,” BBC, last modified March 8, 2011, http://www.bbc.co.uk/history/worldwars/wwone/origins_01.
shtml.
2 “History of the United Nations,” UN, accessed June 17, 2020, https://www.un.org/en/sections/history/history-united-nations/index.
html.
3 “Marshall Plan, 1948,” Office of the Historian, United States Department of State, accessed May 25, 2020, https://history.state.gov/mile-
stones/1945-1952/marshall-plan.
4 “Marshall Plan,” History Channel, last modified December 16, 2009, https://www.history.com/topics/world-war-ii/marshall-plan-1
5 “Marshall Plan.”12|TH opic A: Promoting Sustainable Foreign Investment in
istory and Description of the Issue
Formerly Colonized States
positive, useful aid can also create a donor-recipient dynamic of foreign aid, particularly when colonial history is consid-
that can impact the economic and political operations of the ered. Aid given to Haiti in the aftermath of its 2010 earth-
recipient country for an extended amount of time. quake is a prominent example of this is. After Haiti, one of
the least developed countries globally, was decimated by the
It is also worth noting the cultural backgrounds of actors in
earthquake, it experienced an enormous influx of internation-
investment or aid relationships. In the case of the Marshall al aid.8 Approximately USD 13.5 billion was promised to Haiti
Plan, all actors were Western states. The United States had following the earthquake, with 75 percent coming from do-
no history of colonization or political dominance over the nor states and the rest from private charities.9 However, Haiti
European region that received aid, meaning that the aid given has not seen the benefits of this massive amount of aid. The
was not accompanied by American goals for European cultur- vast majority of aid money is spent at the discretion of the
al shift or economic exploitation.6 Rather, the Marshall Plan donor organization or country with no communication with
sought to restore former prosperity in countries that it viewed the Haitian government, thus resulting in unregulated aid dis-
as largely equal. This is not the case in many other examples
7
tribution and little communication about the actual needs of
UN vehicle patrolling the streets of Port-au-Prince after Haiti’s 2010 earthquake
6 “Marshall Plan, 1948.”
7 “Marshall Plan, 1948.”
8 Richard Knox, “5 Years After Haiti’s Earthquake, Where Did The $13.5 Billion Go?,” NPR, last modified January 12, 2015, https://www.
npr.org/sections/goatsandsoda/2015/01/12/376138864/5-years-after-haiti-s-earthquake-why-aren-t-things-better.
9 Knox, “5 Years After Haiti’s Earthquake, Where Did The $13.5 Billion Go?.”Topic A: Promoting Sustainable Foreign Investment in Formerly Colonized States
History and Description of the Issue |13
the country.10 At the surface level, this international reaction terms of development and standards of living.15 This can be
seems rooted in humanitarian concern and a distrust of the explained by a common criticism of the modern aid system,
corrupt Haitian government. However, a deeper investigation which proposes that aid intended to help developing countries
into the aid practices surrounding Haiti reveals a great deal weakens them by decreasing a developing country’s govern-
of exploitation, especially by representatives of aid-giving ment’s control over its land and people.16 Rather, the govern-
countries and organizations. A glaring example of this is the ment becomes accountable to the donor state or multina-
allegations of sexual assault committed by UN peacekeepers tional corporation, and citizens of the country begin to look
against women in Haiti.11 Haiti’s colonial history cannot be ig- towards the donor country for assistance.17 This undermines
nored—Haiti gained its independence in 1801, becoming the democratic and institutional progress and prevents govern-
first black-led post-colonial republic.12 However, it was pun- ments from gaining the stability necessary to truly become
ished severely for its victory by France, its former colonizer, empowered in their independence from colonizing powers.
which saddled the new country with billions of dollars in debt
Foreign aid and investment will continue to occur unless this
in the name of “reparations.”13 Additionally, the United States
committee can work towards the reformation of aid to cre-
enacted an embargo against Haiti, ensuring economic struggle
ate sustainable and mutually beneficial relationships between
and a lack of allies in the Western Hemisphere.14 Considering
donor and recipient states.
Haiti’s history of economic struggle against countries such as
France and the United States, it becomes clear that the largely
Investment by Private Actors
unsustainable disaster aid funneled into Haiti after the earth-
quake also served Western goals of regional dominance and Private actors, typically multinational corporations (MNCs),
economic control. are the primary distributors of foreign direct investment
(FDI).18 MNCs are companies that produce goods or services
The underlying question of this topic is whether foreign aid is
outside of their country, and FDI is a type of investment in
truly beneficial to developing countries in the long run, or if it
which a multinational corporation has controlling ownership
is a manipulative tool of the world’s wealthiest and most pow-
in a business based in another country.19 FDI is often pre-
erful states. Despite the supposed developmental outcomes
sented as a method of increasing employment and stability in
of foreign aid and investment, modern power dynamics are
the developing world, as these companies provide strong and
relatively unchanged from those of the colonial past, creating
stable employment opportunities where there may otherwise
a situation where powerful countries can continue to assert
not be any.20
dominance in developing countries through largely accepted
methods. Western countries are still, generally, the wealthiest On the surface, foreign investment appears mutually benefi-
and most powerful, while countries in Africa, South Ameri- cial—a multinational corporation has chosen to create jobs
ca, and much of Asia are generally still considered behind in where employment and stability are sorely needed. Although
10 Knox, “5 Years After Haiti’s Earthquake, Where Did The $13.5 Billion Go?.”
11 Michael Brice-Saddler, “U.N. peacekeepers fathered, then abandoned, hundreds of children in Haiti, report says,” The Washington Post,
last modified December 18, 2019, https://www.washingtonpost.com/world/2019/12/18/un-peacekeepers-fathered-then-abandoned-hun-
dreds-children-haiti-report-says/.
12 “Haitian Revolution,” Encyclopedia Britannica, accessed June 17, 2020, https://www.britannica.com/topic/Haitian-Revolution.
13 “Haitian Revolution.”
14 “Haitian Revolution.”
15 “2019 Human Development Index Ranking,” United Nations Development Programme, accessed June 17, 2020, http://hdr.undp.org/en/
content/2019-human-development-index-ranking.
16 Ana Swanson, “Does Foreign Aid Always Help the Poor?” World Economic Forum, last modified October 23, 2015, https://www.weforum.
org/agenda/2015/10/does-foreign-aid-always-help-the-poor.
17 Victoria Stanford,”Aid Dependency: The Damage of Donation,” This Week in Global Health, last modified July 31, 2015, https://www.
twigh.org/twigh-blog-archives/2015/7/31/aid-dependency-the-damage-of-donation.
18 “Foreign Direct Investment (FDI),” Investopedia, last modified November 20, 2003, https://www.investopedia.com/terms/f/fdi.asp.
19 “Foreign Direct Investment (FDI).”
20 Bruce A. Blonigen, “Foreign Direct Investment Behavior of Multinational Corporations,” National Bureau of Economic Research, accessed
June 17, 2020, https://www.nber.org/reporter/winter06/blonigen.html.14|TH opic A: Promoting Sustainable Foreign Investment in
istory and Description of the Issue
Formerly Colonized States
stable employment might be a true benefit of foreign invest- corporations, they do not have the resources or institutions to
ment, the negative aspects are often significant. Multinational penalize them for their behavior or remove them from their
corporations often outsource production to the developing country.23 Additionally, the host country often profits from
world because of cheaper labor, weak labor laws, and little the presence of multinational corporations through taxes or
environmental regulation.21 Nike, an American company, out- other financial incentives, thus reducing the motivation to re-
sourced production to Viet Nam (among other countries), move MNCs despite legal violations.24 This is an instance of a
where it was accused of withholding wages, violating regula- recipient country becoming more accountable for the investor
or donor than to their people, who suffer from the actions of
tions on the length of the workday, and disregarding work-
MNCs.
place safety guidelines.22 A particularly troublesome example
lies in employees being forced to work in facilities with tem- This has led to the argument that foreign investment under-
peratures over 100 degrees Fahrenheit—giving literal meaning mines freedom in the developing world, rather than promot-
to the word sweatshop. Often, even if the government of a ing stability and decreased poverty that would presumably
developing country is aware of violations being committed by increase personal autonomy.25 Since it is in the best financial
Young women wearing heavy coats while sewing in a factory
21 Marc Bain,”Nike is Facing a New Wave of Anti-sweatshop Protests,” Quartz, last modified August 1, 2017, https://qz.com/1042298/
nike-is-facing-a-new-wave-of-anti-sweatshop-protests/.
22 Bain, “Nike is Facing a New Wave of Anti-sweatshop Protests.”
23 “Are multinational corporations undermining freedom in poor countries?,” The Washington Post, last modified September 13, 2016.
24 “Are multinational corporations undermining freedom in poor countries?.”
25 “Are multinational corporations undermining freedom in poor countries?.”Topic A: Promoting Sustainable Foreign Investment in Formerly Colonized States
History and Description of the Issue |15
interest of MNCs to keep labor unregulated, they use fi- Investment by States
nancial pressure and incentives to remain in the developing
Investment by states refers to aid or loans of any kind, rather
countries in which they operate.26 Thus, with the government
than the strict definition of investment seen in finance and
unwilling or unable to assert the labor rights of its citizens,
other fields (i.e., putting money into something with the hope
MNCs can then exploit laborers in whatever way best suits
of making a profit). Although lacking the problems detailed
their interests. Workers in these situations are at the mercy
earlier that private investment can create, such as labor law vi-
of their employers for their wages and time off, with noth- olations and environmental degradation, investment by states
ing protecting their rights, clearly jeopardizing the freedom can be equally fraught. The United Nations and other organi-
of laborers in developing countries. This particular example zations that receive aid and investments largely through states
illustrates the danger of private entities exercising too much participate in creating a view of international aid as altruistic
power within a country—when your primary interest is profit, and solely helpful, as they ask for aid commitments from states
human rights and sustainability mean little. Naturally, exploit- and pose foreign aid as a vehicle of international cooperation
ing weak environmental regulations is detrimental to sustain- and humanitarianism.30 However, the United Nations also rec-
ability and stability, as the use of natural resources like water ognizes the danger of imbalanced partnerships that result in
and fertile land by multinational corporations means citizens manipulative power dynamics. This includes concepts like Tri-
cannot benefit from them, illustrating the need for sustainable angular Cooperation (a partnership between one developed
foreign investment. country and two developing countries to increase accountabil-
ity with the donor country) and South-South Cooperation (a
These factors have led to calls for change in how we view partnership between two developing countries that is more
foreign investment. Similar to the need for a new paradigm mutually beneficial and mostly absent of especially unequal
to understand aid and the reasons behind it, Brad Setser of power distribution).31
the Council on Foreign Relations argues that foreign direct
These complicated dynamics have made foreign aid a con-
investment rarely, if ever, fulfills its apparently humanitarian
troversial topic within development economics, with three
purpose of spurring economic development in developing
schools of thought surrounding it.32 The first school argues
countries.27 Rather, he argues that FDI is either directly ex-
that foreign aid, by and large, has harmed developing coun-
ploitive or exists only to enrich the investing corporation by
tries more than it has helped them by facilitating corruption,
manipulating tax laws. Either way, the ultimate goal is always dependency, and isolation from the global economy due to
profit.28 Reforming private investment practices is essential frequent trade agreements between donor and recipient coun-
for sustainable development, particularly concerning reducing tries.33 The second school argues that aid levels have simply
poverty and hunger and promoting good health and well-be- been too low to affect real change, and that increasing aid
ing (Sustainable Development Goals 1, 2, and 3), decent work would help reduce poverty and increase development.34 This
and economic growth, and responsible consumption and pro- school also emphasizes the importance of specific programs
duction (Goals 8 and 12).29 through which to funnel aid, to decrease the potential for aid
26 Brad W. Setser, “It is Time to Change How We View Foreign Direct Investment,” Council on Foreign Relations, Last modified December 17,
2019, https://www.cfr.org/blog/it-time-change-how-we-view-foreign-direct-investment.
27 Setser, “It is Time to Change How We View Foreign Direct Investment.”
28 Setser, “It is Time to Change How We View Foreign Direct Investment.”
29 “Sustainable Development Goals,” Sustainable Development Knowledge Platform, accessed June 17, 2020.
30 “Deliver Humanitarian Aid,” United Nations, last modified September 30, 2019, https://www.un.org/en/sections/what-we-do/deliver-
humanitarian-aid/.
31 “South-South and Triangular Cooperation,” World Health Organization, Accessed June 4, 2020, https://www.who.int/country-coopera-
tion/what-who-does/south-south/en.
32 “How Effective is Foreign Aid?, “ World Economic Forum, Last modified November 28, 2014, https://www.weforum.org/agenda/2014/11/
how-effective-is-foreign-aid/.
33 “How Effective is Foreign Aid?.”
34 “How Effective is Foreign Aid?.”16|TH opic A: Promoting Sustainable Foreign Investment in
istory and Description of the Issue
Formerly Colonized States
Slums on the coast of Monrovia, Liberia in West Africa
falling into the hands of corrupt officials.35 This is the school cluded that even in developing countries with greater political
of thought that the United Nations most closely subscribes stability and stronger institutions, aid did not result in faster
to. The third school of thought surrounding foriegn aid is less growth.39 However, it is important to note that all aid is not
prominent but still important.36 It argues for a more scientific the same. Development aid does not fill the same needs as
and data-based approach to foreign aid, posing it as an ethical- emergency aid for things like natural disasters, and the impor-
ly risky practice with various traps for donors and recipients to tance of humanitarian action in emergencies should not be
fall into, and emphasizing the need for controlled experiments undermined due to these studies. Instead, the international
to truly determine the effectiveness of foreign aid as a devel- community should think critically about whether develop-
opment tool.37 Essentially, the third school calls for signifi- ment aid performs the tasks it has been appropriated for, and
cantly more research on the topic. As such, it acknowledges whether our aid narratives truly reflect the modern nature of
one of the biggest challenges associated with foreign aid—no foreign aid. These studies also serve as a reminder that devel-
one can conclusively say whether or not it is actually helpful. oping countries should not, and cannot effectively be treated
as monoliths. Differences in aid success depend heavily on the
Research surrounding foreign aid is relatively inconclusive,
type of aid, the specific project, and the local environment, so
but three separate studies have posited that, in the best cas-
even though precedent certainly helps the analysis of foreign
es of foreign aid, “there was a small positive, yet statistically
aid, it does not necessarily guarantee future success or failure40
insignificant relationship between official aid and growth.”38
Through a study done in 2008, Rajan and Subramanian con- Juliette Lyons echoes the sentiments of these studies in Le
35 “How Effective is Foreign Aid?.”
36 “How Effective is Foreign Aid?.”
37 “How Effective is Foreign Aid?.”
38 “How Effective is Foreign Aid?.”
39 “How Effective is Foreign Aid?.”
40 “How Effective is Foreign Aid?.”Topic A: Promoting Sustainable Foreign Investment in Formerly Colonized States
History and Description of the Issue |17
Journal International. She points out that, of the approximately nor country provides. This is dangerous because it naturally
700 million people pulled out of poverty between 1981 and decreases the self-sufficiency and sovereignty of developing
2010, 627 million of them were in China. China receives a rel- countries and creates a situation where the recipient country
atively insignificant amount of foreign aid compared to Sub- cannot maintain itself without aid. A particularly prominent
Saharan Africa, which receives roughly USD 50 billion inter- example of this is food aid. Food imported as aid displaces
national aid per year.41 Lyons continues to argue that foreign local food production, driving local farmers out of business
aid is nearly synonymous with the promotion of corruption and making people dependent on food from the donor state.47
and economic dependence.42 Sub-Saharan Africa is by far the Furthermore, once the food is no longer being given as aid,
largest recipient of international aid, and yet, but it remains the developing country must pay to import food, since local
the poorest region of the world.43 Lyons asserts that this aid sources have been driven out of business. At this point, the
encourages dependence on Western donor countries in a way developing state utterly dependent on the donor country. In
that mimics colonial dynamics. The funds enrich corrupt pub- this way, foreign aid and investment enriches donor states in
lic officials who do not direct money towards poverty relief the long run and keeps developing countries poor, rather than
but rather their personal bank accounts.44 Ultimately, we must helping them out of poverty.48
question whether aid truly helps those who need it, or if it is
Haiti and the Philippines have experienced this dynamic in the
simply a tool to make politicians appear humanitarian while
past, with the United States as the donor country. 80 percent
colonial relationships are reinforced. Foreign aid narratives
of grain in Haiti is imported from the United States, making
today portray Western wealthy donor countries as big-hearted
the people dependent on US imports for their nourishment.49
champions of freedom and meritocracy, and African states
Given Haiti’s previously mentioned history with aid from the
as corrupt and helpless, needing guidance and funds from
United States, the pattern of dependency is not difficult to
the West to keep them afloat.45 These narratives are prob-
see. In the Philippines, the economy is reliant on cash crops,
lematic because they perpetuate the idea of the “White Man’s
or crops sold for profit rather than for sustenance, such as
Burden,” which forwards the mentality that white European
coffee and tea. While the United States was an imperial power
states have a moral duty to help and teach non-white people
over the Philippines in the early twentieth century, policies
to be “civilized.”46 As such, they must be changed through a
encouraged the development of a cash crop economy.50 These
rethinking of aid structures and relationships.
crops are bought mostly by United States markets for much
cheaper than they would be if grown in a developed coun-
Economic Dependency
try. In this way, the US shaped the economy of a develop-
While dependency is commonly discussed in the context ing country for its own gain.51 The United States is not the
of aid, it can also occur due to foreign loans and even FDI. only country that reinforces former imperialist relationships.
Dependency is among the negative outcomes of foreign France, a former colonizing state, directs much of its foreign
investment in which the recipient country (almost always a aid to its former colonies in Africa.52 This aid is often present-
developing country) becomes reliant on the resources a do- ed as a reparations process in which France is thought to owe
41 Juliette Lyons, “Foreign Aid is Hurting, Not Helping Sub-Saharan Africa,” Le Journal International, Last modified October 13, 2014,
https://www.lejournalinternational.fr/Foreign-aid-is-hurting-not-helping-Sub-Saharan-Africa_a2085.html.
42 Lyons, “Foreign Aid is Hurting, Not Helping Sub-Saharan Africa.”
43 “2019 Human Development Index Ranking.”
44 Lyons, “Foreign Aid is Hurting, Not Helping Sub-Saharan Africa.”
45 Lyons, “Foreign Aid is Hurting, Not Helping Sub-Saharan Africa.”
46 Rudyard Kipling, “The White Man’s Burden, 1899,” Fordham University, accessed June 22, 2020, https://sourcebooks.fordham.edu/mod/
kipling.asp.
47 Stanford, “Aid Dependency: The Damage of Donation.”
48 Stanford, “Aid Dependency: The Damage of Donation.”
49 Stanford, “Aid Dependency: The Damage of Donation.”
50 Stanford, “Aid Dependency: The Damage of Donation.”
51 Stanford, “Aid Dependency: The Damage of Donation.”
52 Lyons, “Foreign Aid is Hurting, Not Helping Sub-Saharan Africa.”18|TH opic A: Promoting Sustainable Foreign Investment in
istory and Description of the Issue
Formerly Colonized States
money to its former colonies on moral grounds, usually to sta- abling them to set budget priorities and dictate appropriations.
bilize the government and generally strengthen institutions.53 While this may avoid the issue of bureaucratic corruption, it
However, even this seemingly moral commitment can have a can instead result in “inconsistent and unsustainable develop-
negative impact. By acting as the main donor of aid for its for- ment when some sectors significantly outperform others.”57
mer colonies, France places itself in the paternalistic role of
Decreasing aid dependency is a complicated endeavor, but
“provider,” a similar role to the one it upheld as a colonizer.
the idea of recipient-led aid policy is a popular solution. An
An especially concerning type of dependency is political de- example of this is Botswana, where, after receiving aid fol-
pendency. Political dependency generally refers to donor in- lowing its independence in 1966, it made its own decisions re-
tervention in the political processes of a recipient country.54 garding where funds were directed.58 Victoria Stanford at the
Manipulative donors use international aid with political strings University of Edinburgh asserts the “primary importance is
attached to exercise control in the governments of develop- that Botswana largely decided the direction and use of funds;
ing countries. This is not necessarily sinister in intent. Donor areas of priority were identified and donors were matched ac-
states want to see their money used in ways their constituents cordingly, thus avoiding reliance on donor ideas and agendas.
would approve of, so they involve themselves with the appro- Only projects that the predicted government capacity could
priation and functions of the aid money to ensure it is being absorb once aid was reduced in the long term were under-
used in a way they approve of. However, this has resulted in taken, which ensured sustainability.”59 Despite this example of
donors such as USAID and the World Bank ignoring exist- success, Stafford asserts that the modern aid industry is one in
ing government services in developing states to make the aid which Western ideas of development and progress are used to
process more efficient, effectively undermining the govern- exert power over the governments of recipient countries—an
ment and weakening the institutions that aid is supposed to example of neocolonialism.60
strengthen.55 Furthermore, dependency creates a continuous
need for aid money, making the governments of developing It is important to note that the developing world is not igno-
countries more accountable to donor states than their people rant of the negative consequences of dependency. Naturally,
because they can’t attempt to address the needs of their peo- countries facing crises take advantage of aid being sent their
ple without the aid money. This, of course, gives donor states way, but they know the double-edged sword that aid presents.
significant political leverage in the recipient country—particu- An example of this lies in South Sudan, which has faced ex-
larly damaging to states where political unrest created the need treme famine in the middle of a civil war.61 The rapid flood of
for aid in the first place, such as in the Democratic Republic of international aid in response to food insecurity in South Sudan
the Congo or Zimbabwe.56 When wealthy, stable donor states allowed the declaration of “famine” to be lifted. Without it, it
obtain political leverage in countries with weak institutions, is almost certain that it would not have been mitigated nearly
it severely undermines their sovereignty. The recipient state as quickly, resulting in hundreds of thousands more deaths.62
is then at risk of being exploited for the enrichment of the However, officials in South Sudan are aware of the dilemma
donor. Additionally, directing aid to specific programs often of accepting aid.63 South Sudan’s Minister of Humanitarian
gives donors even more control over a country, effectively en- Affairs and Disaster Management stated, “If a country relies
53 Lyons, “Foreign Aid is Hurting, Not Helping Sub-Saharan Africa.”
54 Stanford, “Aid Dependency: The Damage of Donation.”
55 Stanford, “Aid Dependency: The Damage of Donation.”
56 Stanford, “Aid Dependency: The Damage of Donation.”
57 Stanford, “Aid Dependency: The Damage of Donation.”
58 Stanford, “Aid Dependency: The Damage of Donation.”
59 Stanford, “Aid Dependency: The Damage of Donation.”
60 Stanford, “Aid Dependency: The Damage of Donation.”
61 “Relying on Aid Creates ‘Dependency Syndrome’,” Al Jazeera, last modified February 26, 2018, https://www.aljazeera.com/
news/2018/02/relying-aid-creates-dependency-syndrome-180226121435444.html.
62 “Relying on Aid Creates ‘Dependency Syndrome’.”
63 “Relying on Aid Creates ‘Dependency Syndrome’.”You can also read
