World Bank

N ATIONAL H IGH S CHOOL MODEL UNITED NATIONS 35th Annual Conference • March 18-21, 2009

BACKGROUND GUIDE

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Economic and Social Council Special Committees  2008-2009 International Model United Nations Association, Inc. Used and distributed under license.

N ATIONAL H IGH S CHOOL M ODEL U NITED N ATIONS The 35th Annual Conference • March 18-21, 2009

Nick Stefanizzi

September 2008

Secretary-General Boston University

Rosa Akbari Director-General McGill University

Nancy Henry Conference Director Tufts University

Michelle Shevin Chief of Staff Barnard College

Cristina Rade Chief of External Relations Adelphi University

Ryan Burke Director of Security University of South Carolina

Matthew Low Under-Secretary-General University of California, Berkeley

Daniel Nowicki Under-Secretary-General Georgetown University

Deanna Maxfield Under-Secretary-General University of Southern California

Emily Robertson Under-Secretary-General Duke University

Lisa Cuesta Under-Secretary-General University of Pennsylvania

Jerry Guo Under-Secretary-General Dartmouth College

NHSMUN is a project of the International Model United Nations Association, Incorporated (IMUNA). IMUNA, a not-forprofit, all volunteer organization, is dedicated to furthering global issues education at the secondary school level.

Dear Delegates, Welcome to the Thirty-fifth Annual National High School Model United Nations Conference (NHSMUN). My name is Lisa Cuesta and I have the distinct pleasure of serving as the UnderSecretary-General (USG) for Economic and Social Council (ECOSOC) Special Committees and Regional Commissions. In addition to my job as USG of ECOSOC, I am a junior at the University of Pennsylvania, studying Finance in the Wharton School with a minor in Political Science in the College of Arts & Sciences. I’m originally from New Hyde Park, a small town outside of “the city” of New York. This fall, I studied at the Universidad Pontificia Comillas in Madrid, Spain. Studying abroad allowed me to venture around Europe with friends, revel in the amazing Spanish culture, and study in el Parque del Buen Retiro. Aside from NHSMUN, I’m involved in student government, Model UN at Penn, Sigma Kappa Sorority, and Wharton Leadership Ventures. After participating as a delegate for three years, I joined the staff as an Assistant Director to the Administrative Staff and the following year directed the Commission for Social Development in the ECOSOC Standing Committees and Functional Commissions. As such, I have no particular allegiance to any one organ or committee, and my variety of experiences has offered me an understanding of all this conference has to offer. Soon after closing ceremonies ended NHSMUN 2008, the ECOSOC organ was pieced to perfection and together we have been counting the days until your arrival. Come March, our dynamic and diverse organ will discuss a wide spectrum of issues, ranging from the rights of captured terrorists to the health implications of urbanization. Our top quality conference would be nothing without the talent and dedication of your honorable Dais. As you can imagine, I am a strong advocate of learning through experience and I truly believe you get out what you put in when it comes to Model UN. In order to ensure the most rewarding experience, I urge you to research your topics and position thoroughly prior to the conference and come prepared for extensive and rigorous debate. I have high hopes for this organ, so in the months before the conference, I strongly encourage you to be active in preparing and contact your Dais with any questions! Best of luck with your research and I look forward to meeting you in March! Sincerely, Lisa Cuesta [email protected] 516.205.5456 4038 Locust Ave Philadelphia, PA, 19104

N ATIONAL H IGH S CHOOL M ODEL U NITED N ATIONS The 35th Annual Conference • March 18-21, 2009

Nick Stefanizzi

September 2008

Secretary-General Boston University

Rosa Akbari Director-General McGill University

Nancy Henry Conference Director Tufts University

Michelle Shevin Chief of Staff Barnard College

Cristina Rade Chief of External Relations Adelphi University

Ryan Burke Director of Security University of South Carolina

Matthew Low Under-Secretary-General University of California, Berkeley

Daniel Nowicki Under-Secretary-General Georgetown University

Deanna Maxfield Under-Secretary-General University of Southern California

Emily Robertson Under-Secretary-General Duke University

Lisa Cuesta Under-Secretary-General University of Pennsylvania

Jerry Guo Under-Secretary-General Dartmouth College

NHSMUN is a project of the International Model United Nations Association, Incorporated (IMUNA). IMUNA, a not-forprofit, all volunteer organization, is dedicated to furthering global issues education at the secondary school level.

Dear Delegates, Welcome to NHSMUN 2009! My name is Emily Dean, and I will be directing our simulation of the World Bank. I hope that you are beginning to get excited about the conference, an event that I have been eagerly anticipating for the past year. I strongly believe in this conference’s ability to provide delegates with a unique experience in learning about international issues that inevitably affect our own lives. I am especially thrilled to be directing the World Bank committee again; I have a lot of experience on the committee after being the 2008 committee director and a World Bank delegate for three years at NHSMUN. I cannot wait for all of you to experience the committee in March! Please use the research that I have provided in this background guide as a springboard for your own research in writing either loan proposals or position papers. Because of the specialized nature of this committee, it is critical that you read all of the information about the simulation and preparation so that you will be sufficiently prepared for committee. That being said, we will spend a good amount of time going over these modified procedures, so don’t worry. Also, within your research, I encourage you to learn as much as you can about your own country’s experiences with the World Bank and specifically the two topics discussed in this guide; your findings will be invaluable when formulating solutions on committee. Now that we have some of that business taken care of, let me introduce myself a little more. I am a junior at Furman University in Greenville, South Carolina. I am double majoring in art and Spanish with a concentration in Latin American studies. During the fall of 2008 I will be studying art in Cortona, Italy and then going on European adventures and staying with family in Spain for a month, so I am sure that I will have tons of stories to share. It may seem strange that an art/Spanish major has an interest in the World Bank committee, but over the years I have developed a strong affinity for international economics, specifically focusing on development initiatives. This year is my third year on NHSMUN staff (my freshman year I was the assistant director on the International Monetary Fund Committee and last year I was the World Bank director). Already, I have learned so much through my experiences with NHSMUN, directing the committee last year, preparing this background guide, and having an opportunity to meet with a World Bank representative to the United Nations in New York. Directing the World Bank last year was an amazing experience and I was blown away with the level of research and focus of the delegates. It led to a very successful and fun committee. I wanted to return and direct the World Bank again because of the great time I had last year. I also knew that we can build on past successes and make this a memorable and enriching experience for everyone. I hope that you will find this research helpful, and I wish you the best of luck in researching!! Please don’t hesitate to call or e-mail me to ask questions about the topics, the committee itself, position papers and loan proposals, or just to introduce yourself. It would seriously make my life to hear from y’all (yes, I did just say y’all…). I am looking forward to reading your papers and meeting you in March!! Sincerely, Emily Dean Furman University [email protected] (803) 422-5854

The 2009 National High School Model United Nations

World Bank

A NOTE ON RESEARCH AND PREPARATION Delegate preparation is paramount to a successful and exciting National High School Model United Nations 2009 Conference. We have provided this Background Guide to introduce the topics that will be discussed in your committee; these papers are designed to give you a description of the topics and the committee. They will not give you a complete description of the topic areas and they will not contain the most up-to-date information, particularly in regards to rapidly evolving issues. We encourage and expect each delegate to fully explore the topics and be able to identify and analyze the intricacies of the issues. Delegates must be prepared to intelligently utilize their newly acquired knowledge and apply it to their own countries’ policy. You will find that your nation has a unique position on the topics that cannot be substituted for or with the opinions of another nation. The task of preparing and researching for the conference is challenging, but it can be interesting and rewarding. We have provided each school with a copy of the Delegation Preparation Guide. The Guide contains detailed instructions on how to write a position paper and how to effectively participate in committee sessions. (Note: some position papers have unique guidelines that are detailed within respective committees’ Background Guides.) The Guide also gives a synopsis of the types of research materials and resources available to you and where they can be found. A brief history of the United Nations and the NHSMUN conference are also included. The annotated rules of procedure complete the Delegate Preparation Guide. An essential part of representing a nation in an international body is the ability to articulate that nation’s views in writing. Accordingly, it is the policy of NHSMUN to require each delegate (or double-delegation team) to write position papers. The position papers should clearly outline the country’s policies on the topic areas to be discussed and what factors contribute to these policies. In addition, each paper must address the Research and Preparation questions at the end of the committee Background Guide. Most importantly, the paper must be written from the point of view of the country you are representing at NHSMUN 2009 and should articulate the policies you will espouse at the conference. All papers should be typed and doublespaced. The papers will be read by the Director of each committee and returned at the start of the conference with brief comments and constructive advice. You are responsible for sending a copy of your paper to the Director of your committee. Additionally, your delegation is responsible for bringing a bound copy of all of the position papers—one for each committee to which your school has been assigned—to the conference (to be submitted during registration). Specific requirements of the bound copy have been sent to the faculty advisor/club president. In addition to position papers, each delegation must prepare one brief summary statement on the basic economic, political, and social structures of its country, as well its foreign policy. Please mail country summary statements to the Director-General of NHSMUN 2009 at the address below. All copies should be postmarked no later than February 16th and mailed to: Rosa Akbari, Director-General 3631 av. Henri-Julien Montréal, Québec H2X 3H4 Canada

Emily Dean Furman University, PMB #28100 3300 Poinsett Hwy. Greenville, SC 29613

(Country Summaries)

(Position Papers)

Delegations are required to mail hard copies of papers to the Director-General and Directors. NHSMUN Staff will not consider e-mail submissions as an adequate substitution. Delegations that do not submit position papers to Directors or Summary Statements to the Director-General will be ineligible for awards. -3-

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COMMITTEE HISTORY The founding of the World Bank in 1944 served as a preemptive measure for responding to the aftermath of World War II. Its mandate was to deal with financial deficits in the efforts to reconstruct Europe. At its inception, the organization currently known as the World Bank was initially solely comprised of the International Bank for Reconstruction and Development (IBRD). In 1960, the World Bank expanded to include the International Development Association (IDA) as an affiliate lending branch of the bank that specifically targets the poorest nations of the world. Although the World Bank itself consists of these two lending branches, the more comprehensive World Bank Group incorporates the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and the International Centre for Settlement of Investment Disputes (ICSID) to create a comprehensive approach to international development (“World Bank History” 1). The World Bank issued its first loan to France, for a principal amount of US$250 million, in 1947 to assist with post-conflict reconstruction (“World Bank History” 1). Following these first loans to rebuild Europe, the World Bank reevaluated its enduring role within the international community. The Bank transitioned from the restricted focus of post-conflict reconstruction to the revised mandate of international poverty reduction (“About Us- History” 1). In the 1980s, disagreements emerged within the organization concerning the bank’s primary mandate. One concern facing the World Bank that exists even today is the contradiction between the macro-economic and micro-economic responsibilities of the Bank. As the Bank’s role expanded, the macro-economic practices of debt-rescheduling and foreign direct investment (FDI) seemed at odds with the Bank’s social and humanitarian agenda. Also, environmentalists began calling for stricter regulations and monitoring of World Bank operations. The concerns of the 1980s led to the major reform efforts of the coming decades. In 1992, former World Bank Vice President Willi Wapenhans issued the Wapenhans Report which addressed the calls for reform and generated momentum for the creation of an Inspection Panel as an important part of World Bank operations. This report was the result of a comprehensive review of approximately 1800 projects worth a total of US$138 billion. Findings revealed significant shortcomings of the Bank, especially in regard to the lack of local “ownership” of projects in favor of corporate-imposed conditionalities. Another major concern brought up by the report is the environmentally detrimental effects of several large-scale World Bank projects, including upgrading slums in Sao Paulo and the Itaparica dam on the Rio San Francisco. Following the release of this report, the World Bank began the process of reevaluating its existing lending practices (Hunter 1-2). In 1994, the annual meeting of the World Bank was held in Madrid, and a plan for substantial reform was conceived (“World Bank History” 1). These successful reforms led to the expansion of the World Bank’s influence within the international community and established the new mandate of the Bank as poverty reduction to facilitate sustainable development (“About Us” 1). Within this general mandate, many important topics facing the World Bank today include, but are not limited to post-conflict or disaster management, public healthcare, good governance, and micro-financing. In its current state, the World Bank is comprised of 185 member nations, which act as shareholders in the bank and have voting power based on the amount of their financial contributions to the bank. The five largest shareholders in the bank are France, the United Kingdom, Germany, Japan, and the United States respectively (“About Us- Operations” 1). The United States plays a central role, as the Bank’s headquarters are located in Washington, DC, and the Bank president must be a US national nominated by the President of the United States. The four main pillars of the World Bank’s role in developing nations are to “build capacity, create infrastructure, develop financial systems, and combat corruption” (“About Us- Challenge” 1). The World Bank functions through low-interest lending to middle-income developing nations under the IBRD and zerointerest lending to the poorest nations under the IDA. Funding for the IBRD principally comes from selling

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AAA-rated bonds and income raised from the bank’s capital, while IDA funding is replenished after every three year interval by a team of 40 donor nations (“About Us- Operations 2). While the World Bank has reformed and expanded to become more international in scope and universal in mandate in accordance with the Millennium Development Goals (MDGs), the Bank continues to face challenges as to how it will continue to evolve within the ever-changing international economy. These challenges include the institution’s internal division of power, increased borrower dependency, loan conditionalities and safeguards, and the growing divide between the developed and the developing world.

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SIMULATION As a specialized agency independent of the United Nations, the World Bank committee functions differently than other committees in the conference; these specialized rules make the committee structure and procedures a unique and valuable experience for delegates. While the World Bank does not operate within the United Nations system, we will use the NHSMUN Rules of Procedure for the purposes of this debate, with a few notable exceptions. A careful review of these modified rules, research and preparation guidelines, and the roles of the delegates and the Dais will enable each delegate to take an active role in committee and to achieve the ultimate goal of passing loan proposals that benefit borrower nations while making fiscally responsible decisions for the Bank. Please note that we will simulate only the International Bank for Reconstruction and Development (IBRD). Thus, proposals will not affect other branches of the larger World Bank Group. Roles of the Dais and the Delegates The Dais will be comprised of a Director and Assistant Director, whose primary responsibilities will be to keep the committee focused and to answer both substantive and procedural questions. Their roles in running the committee will be especially important in explaining the revised procedures of this specialized agency. Delegates on the World Bank committee are not representatives of their national governments, as in other committees at NHSMUN. Instead, delegates represent economists from their assigned countries. Therefore, while delegates will not be influenced by political considerations, they will take into consideration the socioeconomic background of their country in making policy decisions. According to the World Bank’s Articles of Agreement, article 10, Section 10, “Political Activity Prohibited,” officers must not be “influenced in their decisions by the political character of the member or members concerned. Only economic considerations shall be relevant to their decisions.” Because the World Bank bylaws explicitly state this distinction, this principle will be upheld within the course of our simulation. For example, despite their political disparities, the United States might pass an Iranian loan proposal if it approved of the principles, goals, and financial terms of the proposal. If political considerations enter the debate, the Dais reserves the right to remind delegates of their role of economists rather than government representatives. Research and Preparation: Part I Countries Rather than resolutions, delegates write amendments to loan proposals submitted by developing nations. For this reason, preparation will differ from that of a traditional committee. Delegates representing developed nations on the World Bank committee (Part I countries, see Appendix A) will submit two position papers addressing their country’s relationship with the Bank, and specifically, their experiences and views on the topics of urban development and population stabilization as outlined in the background guide. Furthermore, the papers should convey a sense of the country’s standing within the Bank and what conditionalities that country wants to see included in future loans. Following an evaluation of the country’s status within the World Bank, the papers should include a general summary of the topic without repeating the background guide. The majority of each position paper should be focused on what strategies the delegate wants to see implemented in future loan packages. Delegates should also, to the best of their ability, address all of the questions at the end of each topic section in the background guide. The research required to write strong position papers will help the delegates influence debate and move the committee toward informed and effective amendments to the loan proposals that are discussed. Research and Preparation: Part II Countries Delegates representing developing nations (Part II countries, see Appendix A) will submit two loan proposals benefiting their specific country. One proposal will create a program that addresses an aspect of urban development, while the other proposal will address population stabilization. These proposals create an

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added responsibility for the delegates in that several will actually be presented before the body and will constitute the substance of the committee’s debate. Therefore, it is critical that all proposals are well crafted and carefully researched. Strong proposals will help facilitate a productive and meaningful committee experience for all involved. The proposals should be specific, targeting one specific development topic rather than attempting to reform the entire nation. The proposal should precisely state the size and purpose of the loan so that the committee, representing a body of World Bank investors, can create an informed decision about how to allocate World Bank funding. My challenge to the delegates is to create a proposal that is new and innovative. Delegates may either expand on existing national efforts or create an entirely new program. Yet, any proposed project should be based on substantial research to prove its feasibility. In order to provide innovative, diverse solutions that best suit each nation’s specific needs, some flexibility within the given topics is allowed. Please contact me if you have a unique idea that may deviate from the proposed topics. In order to create a uniform system for loan proposals, please adhere to the following outline in order to make the committee more organized. I. II. III. IV. V.

Total Amount of Loan Proposed project Credibility Background Details of fund allocations a. Initiative 1 (explain what the money will be used for) i. Sub-initiative ‘a’ (more specific details) ii. Sub-initiative ‘b’ b. Initiative 2 c. Etc. VI. Repayment Schedule a. Maturation (years) b. Grace Period c. Interest rate During debate, this will make it easier to look at and refer to substantive clauses of the proposal. While all of the background research is important, it is usually not discussed at length within the actual debate. A complete loan proposal should be between four and eight pages. For a complete sample loan proposal, please see Appendix B. The first section of the proposal, entitled Total Amount of the Loan, states the upfront costs of the proposal for budgetary purposes. This section also designates the source(s) of funding for the proposed project. While the World Bank provides the majority of funds, national governments, non-governmental organizations, or regional development banks could offer supplemental funding. Most large proposals have a better chance of being approved if they have supplemental financing from other nations or organizations. The Proposed Project section offers a general overview of the project and what it aims to accomplish within the nation. This section should answer the basic questions of how the project will operate and what role it will play in improving the country’s situation. This section should be very clearly written and should consist of two to three well-developed paragraphs. The Credibility section is an addition not included in the sample proposal, but is critical for developed nations with voting power to look at when deciding whether or not the proposed loan would be a wise investment. This section should be one to two paragraphs and should include the nation’s history with World Bank

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lending, paying special attention to previous loans and the nation’s records for loan repayment. The representatives of the Bank are less likely to support a proposed loan if it calls for major funds to be granted to a nation with a poor repayment history and questionable credit. In order to determine what qualifies as an acceptable amount of funding, delegates should research similar loans their nation has received and evaluate how much the Bank’s contributors would be willing to spend. The Bank also wants to prevent overdependence on World Bank lending, and therefore will most likely require some country ownership of the program. The Background section is critical for the proposal because it clearly states why World Bank funding is needed. This section discusses the history of the topic within the nation and what specific problems the proposed project is attempting to ameliorate. The Background section should also include an analysis of the socioeconomic climate of your country and how this proposal will aid the situation. Because this section addresses the impetus for the proposal and why the committee should consider it, it should be the longest of the loan proposal. The Fund Allocation section serves as a list of how the proposed funds will be divided to meet the overall goals of the project. This section should be as specific as possible so that investors know exactly where their money is being spent; the more specific you are with describing this budget, the more likely the proposal will not be rejected based on fears of mismanagement or corruption. Also, 10-15% of the proposed budget can be allocated towards administrative fees in order to effectively carry out the logistics of the project. The final section of the proposal addresses the terms of the loan including the maturation, grace period, and interest rate. These are important aspects that will most likely be debated on committee. While researching, try to find standard rates and repayment schedules for loans to your country to guide your own proposal. Criteria for Evaluating Loan proposals There are several important aspects that should be addressed while debating the proposal. The delegates should come prepared to discuss budgetary concerns, such as the size of the proposed loan and the specific funding allocations. Additionally, delegates should address the repayment schedule and interest rates of the proposal. Even more important than recalculating the budgetary figures of the loan, the committee should discuss the overall ideas of the proposal. Is the proposal feasible? Will it actually achieve the development goals that it set out to achieve? These are important questions that all delegates should consider upon reading and reviewing the proposals and submitting amendments. Committee Procedures The Dais will select five proposals to be discussed throughout the course of the conference, although we will most likely only have time to discuss four. Two proposals will be presented to the committee, after which the committee will enter into a procedural vote to set the agenda between the two proposals presented. Before the agenda is set, formal rules will be suspended so the delegates who wrote the two proposals can each present the main objectives and points of their proposals for a maximum of ten minutes. Following each presentation, the Director will call for a five-minute question-and-answer period to clarify the details of the proposal. This is not a time to begin debate, but rather is an opportunity to ensure that the delegates’ proposals are clearly understood by the committee. Formal debate will resume once the topic has been set, and a new speakers’ agenda will be set for each proposal. In formal debate, the committee will operate like any other NHSMUN committee through the use of the speakers’ list and caucusing. During caucusing, delegates will begin to discuss amendments to be made to the proposal. This committee does not have resolutions or working papers, only amendments to the original proposals. Amendments may be submitted to the Dais at any time. However, all amendments must be agreed upon by the country that submitted the proposal. In other words, only friendly amendments will be accepted. As in the actual World

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Bank, the recipient nation must choose whether or not to accept conditionalities while also attempting to gain the approval of the body. V oting Procedures Since the World Bank is a lending institution with different investors having different shares within the Bank, voting procedures will differ from the one-vote-per-member procedures of the United Nations. The actual voting process for both the amendments and the proposal is comprised of two phases. First, a simple majority vote will be held to determine if a majority of the body is in favor of the first proposed amendment. If this vote fails, then the amendment will be rejected and the committee will move onto voting on the next amendment. If this simple majority vote passes, then the committee will move onto the second phase of voting, which includes a roll-call, weighted vote based on the shareholding percent/voting power of each member nation. These votes will be tabulated by the dais and if a majority of the voting power approves the amendment, it passes. If not, then the amendment fails in this second phase of voting and is rejected. Once all amendments to the proposal have been voted on, the committee will vote on the proposal in its final, amended form. The same two-phased voting comprised of a simply majority followed by a weighted roll call vote will be used to determine whether the loan proposal as a whole passes. Other modifications to NHSMUN Rules of Procedure include the following: • • • •

Rule 48: Because the World Bank is not a committee of the UN General Assembly, important questions are out of order. Rule 45: Motions to divide the question will generally not be approved, since all amendments must be approved by the borrowing nation and will be voted on separately–at the chair’s discretion. Rule 19: Quorum is the same, but the chair may exercise discretion before entering voting procedures if over 15% of the weighted voting power is absent. Rule 27: Rights of reply are out of order since political considerations will not be discussed.

I understand that World Bank operates much differently from traditional NHSMUN committees. If you have any questions about these revised rules, feel free to contact me before the conference or ask questions throughout the conference. We will also review the rules and procedures at the beginning of the first committee session. For both the loan proposals and position papers, try to learn from your research and develop creative solutions to the topics of job creation and mental health facilities. Find out what has worked in the past and try to overcome the challenges facing new strategies.

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THE WORLD BANK’S ROLE IN JOB CREATION TOPIC A INTRODUCTION Within the past decade, various regional and global bodies, as well as individual governments, have taken steps to reach the United Nations Development Program’s Millennium Development Goals of poverty reduction and sustainable development. While the progress made thus far is encouraging, sustainable development continues to be hindered by a poor labor market and developing nations’ difficulty in achieving greater integration into the global economy (“IZA…” 1). Few of the many solutions and programs created to meet widespread development needs include specific measures for job creation, and thus often fail to reduce long-term poverty. Failing to stimulate and involve the impoverished people in the national economy, these programs often neglect the populations they intend to help (“IZA” 1). By directing efforts towards providing unemployment benefits rather than creating jobs, some programs fall short in their development goals. Although external financial aid can provide developing economies with the funds necessary for growth, the most successful programs also benefit from a connection to the local population and national identity leading to the emergence of community-based grassroots initiatives to solve development problems. Labor has been described as “a poor person’s only asset,” yet the necessity of this asset to a developing economy should not be underestimated (“IZA” 1). Labor markets and job creation enhance a nation’s investment climate for both internal and external companies (“IZA” 3). Additionally, the topic of job creation is also closely linked to rural to urban migration in addition to cross-border migration, creating problems such as chronic unemployment or underemployment and “brain drain.” The term “brain drain” is defined as the “net loss of a country’s highly trained and skilled manpower through migration” (“Brain Drain” 1). The problem of “brain drain” occurs when people with higher education levels of education recognize the clear discrepancies between employment opportunities and standards of living in their country of origin and that of more developed nations. The migration of skilled workers to more developed countries is especially problematic in healthcare, as doctors often leave their countries in order to find better opportunities. The absence of a stable infrastructure or investment climate often makes it difficult for developing countries to retain these skilled workers (Beejadhur 1). Individuals with higher levels of education or skills are more inclined to seek better opportunities, often in developed countries, thereby taking their skills set and income out of the local economy. In analyzing strategies to create job opportunities that will encourage workers to stay within local labor pools, it is important to have an understanding of how international markets affect local markets and labor supply and demand (“IZA” 3). Labor markets, especially in transition and developing economies, endure a number of challenges as a result of their structure and main players. The prevalence of informal employment in small and unregistered enterprises aggravates attempts to provide social protection programs or coordinate employment programming, particularly at a national level (“IZA” 4). In 1993, the International Conference of Labour Statisticians (ICLS) defined the informal sector as “all unregistered or unincorporated enterprises below a certain size including: a) micro-enterprises owned by informal employers who hire one or more employees on a continuing basis and b) own-account operations owned by individuals who may employ contributing family workers and employees on an occasional basis” (“Definitions and Theories of the Informal Economy” 1). Another challenge for developing labor markets is what is known as the “outsider phenomena,” in which the unemployed community lives and operates outside of the national economic system, thereby affording zero or negligible gain to the economic infrastructure (Betcherman 7). These informal economic systems operate under distinct rules and do not answer to national guidelines or laws. The skill shortage resulting from high illiteracy rates, lack of formal education, and lack of skills training exacerbates the problems of the labor market further. The issues of job creation also bring up concerns, including demographic issues related to labor supply and demand and what sector of the population comprises the labor force, in addition to cross-

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border issues regarding how remittances can be integrated within a nation’s economy (“IZA” 5). The Labor Markets Team, a branch of World Bank, deals with employment issues by analyzing inefficient labor market and partnering with local staff to assist in the development of more successful labor market policies. This group also collaborates with the International Labor Organization (ILO) in its programming (“Labor Markets- Overview” 1). Through these efforts, international development organizations now have a greater understanding of the importance of developing labor market program strategies. With this research, however, more challenges have emerged for future programs to take into consideration. HISTORY AND DESCRIPTION OF THE ISSUE The World Bank’s principal involvement in labor markets has been through active labor market programs (ALMPs). To define active labor market programs as opposed to passive labor market programs, economists describe passive programs as programs designed to alleviate the financial difficulties of the unemployed through social protection programs, such as unemployment insurance. In contrast, active market programs work directly to enhance the quality of the labor supply through retraining programs or job assistance mechanisms or by increasing labor demand through programs such as public works (“Labor Markets- Active Labor Market Programs” 1). The World Bank finances and plans these ALMPs, alongside national representatives and specialists, to achieve two primary goals: “to reduce the risk of unemployment and to increase the earnings capacity of workers” (Betcherman i). Local entities implement the programs, targeting the chronically unemployed and particularly poor communities. The intended effects of ALMPs on a borrowing nation are three-fold: “enhance labor supply (e.g. training); increase labor demand (e.g. public works, subsidies); and improve the functioning of the labor market (e.g. employment services)” (Betcherman i). While primarily designed for economic development, ALMPs also have social and political implications that must be considered as a result of changes in labor markets. For example, as skilled workers decide to stay within local economies, these populations must be accounted for in social and political decisions involving issues such as housing, healthcare, and governance. A 1999 World Bank evaluation by economists Dar and Tzannatos examined the successes and failures of 72 ALMPs. At the time of this preliminary study, 90% of the case studies were about developed countries, as little research was available for programs in transition and developing countries (Betcherman i). A new study entitled “Impacts of Active Labor Market Programs: New Evidence from Evaluations with Particular Attention to Developing and Transition Countries” published in 2004 added 87 new studies, many specifically dealing with transition and developing economies (Betcherman i). According to these studies, ALMPs have had mixed results in the past; “proponents argue that they are the most direct instrument for dealing with unemployment and poverty among workers. Opponents counter that ALMPs are largely a waste of public funds and that any observed benefits for participants are usually at the expense of other workers” (Betcherman i). Opponents also argue that World Bank and government financing should not be spent on programs that have not been 100% effective, yet by studying the best combinations of programs, new successful solutions can be reached. In most of the previous ALMPs, a large portion of funding has come from the countries implementing the program, yet as ALMPs are expanded to more developing countries, international development organizations like the World Bank will become more involved in financing these initiatives. Conclusions and assessments of ALMPs vary based on the programs’ subcategories. The subcategories of ALMPs include employee services, training/retraining for the unemployed/workers in mass layoffs/youth, wage or employment subsidies, public works, and micro-enterprise development (Betcherman ii). Employment Services One aspect of ALMPs that improves employment opportunities involves employment services, which often includes programs such as counseling and job search/matching. Examples of employment services utilized in the past include “job clubs…counseling, testing and assessment, brokerage services, etc.” (Betcherman 21).

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Overall, evaluations have found that employment services program have positive cost-benefit ratios but are not as effective when deeper underlying problems exist within the local and national labor markets (Betcherman ii). Therefore, while employment services are regarded as one of the most effective types of ALMPs, they are most effective when paired with other job creation initiatives (Betcherman 3). These programs have proven especially effective in transition economies (Betcherman 22). One example of an employment services program in a developed nation which can be adapted to a variety of other countries is the government-funded “Britain’s New Deal for the Young Unemployed,” which targets young adults ages 18-24. This program is composed of three phases: the initial “gateway phase” which is jobsearch assistance with a personal mentor; followed by subsidized employment, education or training, or volunteer work; and finally, what is known as “follow through” job-search assistance, if the individual is unsuccessful at securing employment. Young, unemployed men were 20% more likely to secure employment after involvement in this initiative (Betcherman 23). The government expanded this program and established the New Deal for the Long-Term Unemployed people aged 25 or over (NDLTU), which provides similar job-search services for adults who have been unemployed for over two years (“PSI: Research: Evaluation of the New Deal for the Long-term Unemployed” 1). Training Training programs can be subdivided into three categories: training for the long-term unemployed, re-training following mass layoffs, and vocational training for youth (Betcherman ii). These training programs enhance the quality of labor supply, thereby providing more people with the skills required for jobs. Evaluations indicate that training programs have been relatively effective for providing the chronically unemployed with more job opportunities within the formal sector in a variety of low to moderate-skilled jobs, yet have not had a noticeable impact on the wages of workers (Betcherman ii). Regarding the case of retraining programs in response to mass layoffs, results have largely proven these programs unsuccessful with only a few exceptions. In theory, the youth training initiatives seem like they would create many opportunities for labor market improvement, yet little to no short-term effects on the labor markets have been visible. Alternatives to this solution include a greater amount of funding and efforts being invested in educational systems so that young adults will have a greater repertoire of skills required within more modernized economies (Betcherman ii). One program that has been effective with youth training programs is the Spanish Trust Fund for Impact Evaluation (SIEF), which works with the World Bank in financing and supporting ALMPs. SIEF has evaluated youth training programs to determine best practices for future initiatives. Ongoing evaluations include the Dominican Republic Youth Development Program (YDP) which works through class-room training and internships with firms within the private sector to target at-risk youth, and the Youth Opportunities Program (YOP) in Uganda which also targets at-risk youth with vocational training and health/wellness programming. SIEF’s study of these programs will continue until July 2010 in which final evaluations will be made (“Active Labor Market Programs and Youth Employment” 1). Beyond traditional youth training programs, an interesting challenge for ALMPs is the retraining of workers after a mass-layoff, as this newly unemployed population tends to be located in a specific region and often have skills linked to a particular field in which they are no longer able to participate (Betcherman 29). Similarly, training programs in post-war societies work under the same principles, as members of the demobilized military must be reintegrated into the civilian economy. In 1996, the World Bank approved an International Development Association (IDA) loan of US$7.5 million to the Bosnia and Herzegovinian central government for the “Emergency Demobilization and Reintegration Project.” Total costs for the project were US$20 million, including a commitment from the Netherlands and several unidentified bilateral agencies (“Projects- Bosnia and Herzegovina: Emergency Demobilization & Reintegration Project” 1). The program included the creation of a database of labor market information, vocational and “demand-driven” training facilitated by contracts with local businesses to hire trainees, and employment services including jobsearch assistance. This program was widely successful in increasing overall earnings in wage and salary

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employment and integrating military forces back into the civilian economy (Betcherman 33). The successes of this program can be remodeled to deal with other unemployment problems like mass-layoffs, but can also be adapted to more general training programs for both youth and the chronically unemployed. W age/Employment Subsidies Wage/employment subsidies are sometimes given as incentives to companies to hire more employees and generally are in the form of subsidies applied directly to employee wages or as a bonus to social security allocations (Betcherman 5). Despite some positive results, risks associated with these subsidy programs include what is known as the “substitution effect,” in which subsidized workers are given precedence over those workers not receiving subsidies (Betcherman 5). Most wage subsidy programs have been fairly unsuccessful in attempts in transition or developing economies, although they have had limited success in more industrialized countries (Betcherman 42). One example where wage subsidies have been notably effective is in Poland, where a reported 95% of people living in poverty are poor because of their lack of employment. Wage subsidies equal to the employee’s unemployment benefits are given for a period of several months to employers who create new jobs. Since a certain level of skill is often required within jobs that receive wage subsidies, often a training program functions alongside the wage subsidy program (“Poverty Analysis- Poverty in Poland” 3). Public W orks The World Bank has developed public works, also referred to as “temporary community projects, laborintensive projects, and workfare,” in order to increase the demand for labor or job opportunities by creating services or infrastructure. Though these programs create an immediate labor demand, the pitfall associated with public works initiatives is that they function as a “short-term safety net” rather than a long-term solution to unemployment (Betcherman ii). Once the project is completed, the need for this massive labor force is usually exhausted and the workers are often left without any hope for future employment (Betcherman 5). In fact, in many countries there is also a social stigma related to public works employees, hindering their future participation in labor markets (Betcherman 6). These programs are often described as “transitional” and are aimed at stimulating the economy as a whole, based on the increased economic activity that these programs generate (“Report No. PIC4971- ArgentinaEmployment Support Project” 1). One example of this type of program is the World Bank funding of the Argentinean “Trabajar” employment support program which facilitates local sub-projects that are approved by the national government (“Report No. PIC4971- Argentina-Employment Support Project” 1). The projects approved by the national Ministry of Labor and Social Security (MTSS) under this initiative on average last approximately five months, employ 25 workers, and cost US$70,000 to complete (Betcherman 48). While this program was talked about extensively in the late 1990s when it was initiated, its long-term effects are limited. Many of the more recent public works programs, especially those in developing countries are based on the framework provided by the World Bank and the International Labor Organization (ILO) in the “labourintensive rural road construction” programs instituted throughout sub-Saharan Africa over the past 34 years (McCutcheon 2). These efforts were largely based off of the successes of a pilot project established in Kenya in 1974 aimed at improving agricultural revenues by improving access to rural roads. This project was entitled the Kenyan Rural Access Roads Program and was transformed into a national program the following year. To fulfill the need for labor in this massive undertaking, a public works employment effort was undertaken which included training programs to provide road-building skill-sets at all levels of the operations (McCutcheon 13). One significant aspect of this program was the push for local ownership of the initiative to help solve unemployment problems. In the initial stages of the program, the majority of senior engineers were from other countries. However, by 1985, the ratio was 23 Kenyan engineers to six outside engineers. Additionally,

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the program was headed and operated primarily by Kenyans who had continued commitments to the program throughout its duration (McCutcheon 14). This program was largely successful based on both its improvement of rural roads and its long-term employment of local labor. Similar efforts have been made in Botswana, Ghana, Lesotho, and Malawi (McCutcheon 12). Conclusions from these programs show that public works programs are most successful when they are treated not as emergency relief but as a program with an established infrastructure for long-term development (McCutcheon 20). A four-phased approach was suggested to the World Bank in April 2008 which called for a clear managerial organization of the program, careful preparation and planning, pilot program activities to test the program and train employers/employees, and an expansion of this program/training at the national level (McCutcheon 24-25). M icro-enterprise Development This area of labor market development programs has less research and implementation because it has a small, immediate impact on the overall national economy. However, the concept does afford interesting problemsolving strategies to unemployment challenges. Micro-enterprise development generally involves services for entrepreneurs and financial assistance for small business that would otherwise be unable to compete in a developing economy. Sometimes this financial assistance is given as a single sum, while in other instances it is dispersed over a period of time (Betcherman 6). The main problem with implementing these programs on a wider scale is that they are fairly narrow in scope in the demographic that they target; micro-enterprise development programs usually target more educated workers with an entrepreneurial mindset rather than employing massive groups at once (Betcherman ii). Additionally, many of the chronically unemployed are looking for basic wage-jobs rather than start-up businesses (Betcherman 6). While initially these programs only help small groups, if they are able to become successfully established businesses, they have the potential to grow in employment opportunities and gain access to the more advanced global marketplace. Microfinance programs stimulated by the United Nations Relief and Work Agency (UNRWA), which was established by Resolution 032 (IV) in 1949 to carry out direct relief and work programs for Palestinian refugees, experienced great success and led to even larger expansion and development than initially intended. Today the UNRWA provides assistance to over 4.1 million Palestinians – both the refugee and citizen population – through programs aimed at alleviating poverty and improving health and education. The UNRWA is funded almost solely from financial assistance from foreign governmental agencies – namely the United States and EU member countries – and its work can be divided into four current loan-funding programs. The Solidarity Group Lending (SGL) program aims to integrate women in the local economy by providing microcredit loans to women working in the informal sector of the economy. Since 1991, many formal employment opportunities have been lost, making it especially hard for women to participate in the formal sector (“Microfinance and Micro-enterprise Programme”). The SGL program is designed to empower these women to work in the informal sector of the Palestinian economy by providing microfinancing opportunities to groups of women who use the money for informal enterprises in the commercial, agricultural, industrial, and service sectors. The Consumer Lending program provides microcredit loans to workers and low-paid Palestinian professionals and focuses largely on the refugee population. The Microenterprise Credit Programme (MEP) provides capital for over 43,000 microenterprises who are unable to access credit from formal financial institutions. These small-scale and microenterprise credit programs promote small business development opportunities, creating new jobs and safeguarding old ones.. The SmallScale Enterprise (SSE) program provides much larger loans to businesses instead of people, with an average loan of US$15,000. Since 99% of the loans from the SSE program go to businesses in the service and industry sector, the SSE program promotes sustainable business over agriculture, creates jobs and enables Palestinian businesses to compete with more-established firms (“Microfinance and Micro-enterprise Programme”).

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CURRENT STATUS The Institute for the Study of Labor (IZA) in collaboration with the World Bank Group created a Program Area on Employment and Development to conduct research specifically focused on the effects of job creation and labor market development on poverty reduction strategies (IZA 1). As a conclusion to this research, Betcherman’s 2004 World Bank study states that “the ingredients for successful interventions seem to apply for all countries. Comprehensive packages of services, programs that are oriented to labor demand and linked to real workplaces, and careful targeting are good design features” (Betcherman iii). The World Bank’s job creation efforts are becoming more multi-faceted to account for both short term gains of the programs and long term solutions. After decades of ALMPs in industrialized countries, the World Bank has made adjustments to affect future labor market programming. Now, programs are designed to emphasize employment services, including jobsearch assistance based on positive findings and are designed as more “integrated services, meaning they include a variety of labor market strategies within a single program. Additionally, these programs are being handled by more private sector organizations rather than constant government involvement” (Betcherman 10). In September 2003, the World Bank approved an International Bank for Reconstruction and Development (IBRD) loan of US$55.4 million to Romania for the “Employment Services and Social Protection Project (ESSP)” (“Projects: Romania” 1). This program, created 5 years ago, is a good example of the adapted ALMP strategy that the World Bank currently maintains. This program is multi-faceted in its response to employment problems, by providing funding to strengthen labor offices’ facilities for employment services, facilitating creating an adult training infrastructure, and reforming social protection/assistance programs for the unemployed in an effort to stimulate growth in the local and national labor markets (“Projects-Romania” 1). These comprehensive programming initiatives represent the move to create long-term development within the labor markets of developing countries. Another, more recent program that takes into account this comprehensive approach by focusing on new, country specific issues, is the World Bank-financed Rural Migrant Skills Development and Employment Project in China, which was approved on 24 June 2008. This program is important, because it addresses the specific needs of the borrower nation; in this case it deals with the massive amounts of rural to urban migration that China is facing. Challenges that exist with rural to urban migration in China include a lack of training and employment services so that rural workers will have the skills needed to work in their new, urban environment. The Chinese government lacks the capacity to provide these services and is limited in that respect, but growing, private sector involvement in labor market programs, with US$33 million provided by the Chinese government and an IBRD loan of US$50 million financed the Rural Migrant Skills Development Project. It will be implemented by the Ministry of Human Resources and Social Security through the local governments of the Ningxia, Shandong, and Anhui Provinces. This ALMP combines three different components to create a comprehensive labor market strategy. First, it provides training to develop the necessary skills for urban employment; second, it provides employment services including job searches; third, it strengthens worker protection, which includes improving working conditions and workers’ rights awareness. The program is scheduled to be completed by 31 August 2012. This program shows the multifaceted direction that World Bank is hoping to achieve in future ALMP proposals (“Rural Migrant”). BLOC POSITIONS As delegates on the World Bank committee represent economists from their countries rather than government representatives, they will not reflect the political views or traditional bloc positions of their countries. Taking this into consideration, the economists do bring to the discussion the unique economic experiences of their countries, which may influence their policies. The greatest divide in debating the lending practices of the World Bank is that of the developed versus developing countries.

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Developed Countries In this simulation, developed countries must write position papers highlighting the successes and failures of ALMPs in their own countries and surrounding regions and most importantly, outline a clear plan for future ALMPs, including in what types of programs for the Bank’s future. The problems of unemployment are not limited only to transition and developing countries, but are actually serious issues affecting all countries. In fact, in countries with more successful economies, the unemployed are frequently even more marginalized, creating an additional set of problems for this population. Governments within thriving economies are often concerned with continuing their socioeconomic success, often at the expense of these marginalized communities; in all countries, the problems of homelessness and extreme poverty exist for the unemployed population. Developed countries should look at their own experiences with labor market programs and determine how those could be improved. Since developed countries are important shareholders in the Bank, it is very important that they do not invest more money in labor market programs that are not having a positive impact on job creation in the developing world. Therefore, in order to pass any loan for a developing nation related to active labor market programs, the investing nation should have complete confidence that the proposed program provides an innovative solution to labor problems and successfully avoids the pitfalls of past programs. Investors should consider whether the proposed program is solely aimed at addressing short term goals or if the proposal takes into account long term development plans. Also, developed countries are often concerned with what impact changes in the international labor market will have on their own economies, and it is important to analyze all of the possible ramifications on the global economy. Developing Countries Developing countries are faced with the task of creating proposals for their respective countries that not only create short-term fixes for labor concerns, but also provide a component that allows for long-term development. In the past, regional distinctions have been made between what labor market programs have been most successful. Latin American countries have focused largely on public works programs and youth training initiatives, while eastern Asian countries have focused more exclusively on public works. Many African countries have yet to utilize significant World Bank active labor market programming, so efforts in these countries would most likely be new solutions (Betcherman 12). In the case of developing countries, especially African countries, a main problem is the lack of a growing investment climate to provide for employment opportunities; so in order for job creation to occur, manufacturing exports must be increased and industry enhanced (“What Africa” 1). While regional considerations are important, countries cannot always be generalized by region. For example, within sub-Saharan Africa, as of 2003 only 12% of Uganda’s population was considered urban as compared to Mauritania’s 62% urban population (“Improving” 1). These distinctions between countries would demarcate different strategies in creating labor market programs. Another important concept to consider when constructing a loan proposal is that developing countries often want to make the most use out of external aid as possible. Therefore, the scale of the project is important to consider. Some programs are more successful if they are narrow in focus and target a very specific region or business, while other programs may be more successful if they are implemented at a national level COMMITTEE MISSION The issue of labor markets and job creation should be an integral part in any economic development strategy and the World Bank has focused a great deal of energy in active labor market programs. The main challenge that lies ahead of the World Bank is the fact that these programs are all in different economic environments and have received mixed reviews with regard to their effectiveness in creating long-term socio-economic changes in labor markets. In fact, in most developing countries, the lack of labor market development

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continues to be a hindrance to progressive efforts for economic development in accordance with the Millennium Development Goals (“IZA” 1). Recent studies have begun the process of accumulating data on the successes and failures of the more established programs in industrialized countries with limited information on programs in developing countries, and the challenge is now to evaluate these findings and determine what the main failings are with these programs. Betcherman’s World Bank study concludes “the challenge, then, is to learn from existing experiences, investing in programs that have positive returns and altering or dropping programs that do not” (Betcherman iii). The delegates in this committee are now faced with problems that professional economists around the world are struggling to resolve, yet I am confident that with a careful evaluation of existing programs coupled with a thorough knowledge of the borrowing nation’s specific needs, this committee will be able to solve many problems currently stagnating the labor markets in the developing world. In considering this topic, all delegates, whether they are representing developing or developed countries, should consider how the different strategies of active labor market programs can be used to integrate the developing world into a more global economy, while simultaneously reducing poverty.

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MENTAL HEALTH FACILITIES AND SERVICES WITHIN DEVELOPING COUNTRIES TOPIC B INTRODUCTION The World Bank’s role in many cases has been described as poverty reduction. Poverty reduction strategies include dealing with problems related to income, education, social vulnerability, and health (“Mental Health and the Global” vi). While the World Health Organization (WHO) stipulates that the term health includes “physical, mental, emotional, and social dimensions,” of these dimensions, the mental, emotional, and social aspects are often overlooked in favor of addressing the physical health concerns (“Mental Health and the Global” vi). The tendency to overlook mental healthcare and its role in a nation’s social and economic climate is a serious problem facing both developed and developing countries. The 2001 Word Health Report states, “Advances in neuroscience and behavioral medicine have shown that, like many physical illnesses, mental and behavioral disorders are the result of a complex interaction between biological, psychological and social factors” (“Mental Health-Topics” 1). Often the topic of mental health is limited in scope to mental disorders which are immediately apparent, although some of the most pressing problems with mental health are those less apparent, such as depression and developmental difficulties (“Mental Health- Topics” 1). While mental health is obviously intertwined with physical health in many cases, mental health issues have a much greater impact on development concerns, such as employment, education, social protection, and poverty reduction (“Mental Health” 1). Part of the World Bank’s challenge in creating programs dealing with mental health is to address both the individual needs of patients and provide resources to deal with the medical aspects of mental illness, while also dealing with the socioeconomic impacts of mental health. The severity and prevalence of mental and neurological disorders are often underrepresented within global health budgets. Neuropsychiatric disorders account for 13% of the Global Burden of Disease, which is greater than the burden of AIDS, tuberculosis and malaria combined (Show-Casing 1). The burden for neuropsychiatric disorders is second only to infectious diseases, which account for 23% of the Global Burden of Disease. By 2020, depression is expected to be the second leading cause of disability for the global population as a whole, and the single leading cause of disability for women (Public Health 1). Although mental disorders constitute a significant portion of the diseases that burden and account for serious impacts on the population, mental health has been largely neglected in national health budgets. Even though 70% of countries are reported as having mental health programs, 62% of the lower income countries are reported to spend less than 1% of the national health budget on mental health concerns (“Show-Casing” 1). A serious problem facing any mental health program is a lack of financing, causing most treatment to be paid for out of pocket. Since most people within developing countries lack the extra financial resources to cover these expenses, mental health problems go untreated (“Show-Casing” 5). This is especially detrimental to society, as mental disorders have grave social implications for those facing the disorder and also for the family who is often solely responsible for care of the individual (“Public Health” 1). Additionally, for those who do seek help, hospital systems in developing countries are faced with a severe lack of mental health resources. In regions such as Africa and South-East Asia, there are only approximately 0.34 psychiatric beds per 10,000 people, as compared to an average of 8.7 per 10,000 people throughout Europe (“Mental Health and the Global” 3). Likewise, there are 9 psychiatrists per 100,000 people in Europe, while there are only 0.05 psychiatrists per 100,000 people in Africa, a region in which conflict and a lack of social capital have severe implications on mental health (“Mental Health and the Global” 3). Often, the lack of attention and financial support given to mental health programs is related to misconceptions about mental disorders. Many myths exist about the causes of mental disorders, as few

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people are aware of how the disorders come about in response to not only the possibility of genetic or infectious factors, but also as a result of the social environment facing the individual (“Public Health” 1). Both the causes and effects of mental illness are not just biological (Mental Health and the Global 4). There is a lack of scientific data regarding mental illness and also a large misperception that mental illness will solve itself over time without external assistance (“Show-Casing” 1). Many programs that attempt to address mental healthcare simply target hospitals and expand their services, yet this often fails to reach the majority of the population in need (“Show-Casing” 1). Beyond integration into current healthcare facilities, reports indicate that mental healthcare programs must also address the growing problems of violence against women, substance abuse, and HIV/AIDS, all of which have a significant impact on mental health (“Public Health” 1). While the task of creating mental healthcare programs seems daunting, especially when considering the lack of financial resources facing developing countries, community mental health programs have been successful within low-income countries in promoting mental health. HISTORY AND DESCRIPTION OF THE ISSUE An increase in the prevalence of psychiatric conditions, or in many cases, simply a greater recognition of underlying mental health problems, has occurred over the past two decades. The WHO Global Burden of Disease (GBD) project, which first emerged in 1990 to combine health statistics and information from a wide range of data sources, grossly underestimated the burden that psychiatric conditions posed on a population, largely because this burden is not as visible as other medical conditions. Since then, global involvement in mental health initiatives have grown, and by 2003, the GBD developed a more accurate understanding of the societal impact of neuropsychiatric disorders and how they affect global health and development, estimating neuropsychiatric disorders accounted for 13% of the GDB as compared to 6.8% in 1990 (“Mental Health and the Global” iii). In 1993, the World Bank’s World Development Report “Investing in Health” drew greater attention to the population’s mental health needs. Recognizing the importance of these issues, the 1996 Global Burden of Disease study supplemented this report, further emphasizing the affects of neuropsychiatric diseases (“Mental Health and the Global” 5). In 1994, the World Bank began integrating mental health initiatives with its larger programs related to a wide variety of topics, including legal reform, healthcare reform, early childhood development, and trauma in conflict situations (“Mental Health and the Global” 5). Since the World Bank’s original multi-dimensional mental health care program, the Early Child Development project in Argentina, which specifically addressed mental health needs of children, the Bank has created mental health programming in Lithuania, Zambia, Thailand, Afghanistan, and Lesotho (“Mental Health and the Global” 33). A seminar held by the World Bank in September 1998 entitled “Mental Health in Developing Countries” helped jumpstart mental health programming within the Bank’s agenda. In March 1999, the World Bank created the position of Mental Health Specialist under the Health, Nutrition, and Population Unit to gather data, coordinate information, and provide policy strategies for the Bank’s mental health programs. This specialist works with prominent international mental health nongovernmental organizations (NGOs) and United Nations (UN) bodies, including the United Nations Development Fund for Women (UNIFEM) (Show-Casing 1). In July 2002, the Health, Nutrition, and Population Survey included mental health as one of the health indicators to monitor within the data collected. Results showed that mental healthcare was often neglected in public expenditures, especially when related to the issues of HIV/AIDS, conflicts, and substance abuse (“Mental Health and the Global” 5). Despite the wide-ranging impacts of mental health on development, mental health was not specifically stated as one of the United Nations Development Program’s (UNDP) Millennium Development Goals (MGDs) and often goes neglected as it is often considered low-priority when dealing with development crises (Mental Health and the Global 6). The issues of mental health are specifically related to the MDGs, including but not limited to HIV/AIDs, maternal health, and the empowerment of women (Beejadhur). The mental health programs that do exist have been known to target three main areas: public healthcare systems, community rehab programs, or school-based healthcare (Public Health 2). Working within these frameworks, workers

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have been trained to deal with mental health issues, with the understanding that different countries and communities experience different mental health concerns based on the social, economic, and political environment. Some topics to be considered in future World Bank proposals dealing with mental health issues include but are not limited to conflict/post-conflict situations, early childhood development, primary healthcare reform, HIV/AIDS, and violence against women (“Mental Health and the Global” vi). In many cases, these mental health issues are exacerbated by substance abuse, making them very difficult to solve (“Mental Health and the Global” 4). Conflict/Post-Conflict Situations While they may rise from political motives, conflict situations are not solely political in their effects. Conflict has detrimental consequences on the mental health of all of the populations involved, whether through posttraumatic stress disorder (PTSD), depression associated with the violence, or the aftermath faced by refugee and displaced populations (“Mental Health and the Global” 4). The common assumptions that these disorders are transitory and non-disabling result in temporary interventions during the emergency phase after the conflict. However, recent findings suggest these disorders are both prevalent and chronic. Given these findings about the long term impact of the trauma, the current remedies prove to be insufficient at handling these incapacitating problems. These effects have been described as the “silent wounds” of conflict, because they are often neglected in reconstruction efforts (Baingana i). Even more alarming are the studies showing the “invisible wounds” of previous conflicts surfacing 40-50 years following the traumatic experience and the speculations that these wounds could make a society vulnerable to a recurrence of violence for generations. One of the early case studies of World Bank Post-Conflict Unit’s involvement with mental health programs in areas suffering from conflict is the Harvard Program in Refugee Trauma (HPRT), which took place following conflicts lasting between 1992 and 1998 in Bosnia and Herzegovina, in which approximately half of the population was displaced (“Mental Health and the Global…” 25). This program’s objective was to incorporate mental health care into the nation’s health care system and specifically train caregivers and medical professionals to deal with the specific mental health needs of patients affected by the conflict. The program lasted from 2000 to 2003 and was conducted in the Travnik Canton region. In addition to these training initiatives, the program created an important study of refugees which reported many of the effects of conflict on mental health, which had previously gone undocumented (“Mental Health and the Global” 25). The involvement of children, or child soldiers, in areas of conflict is another important dynamic when planning the mental health rehabilitation of a population. In a recent UN study, “Impact of Armed Conflict on Children,” children are not only innocent bystanders in post Cold-War conflict, but are also increasingly participating in the fighting in one facet or another (Machel 5). This problem is indeed cyclical; half the population of these war torn areas are comprised of children, perpetuating a pattern of “community-level fighting,” destroying any semblance of normalcy and peace for these children. The psychological damage of this generation spills over into the next young generation through armed conflict instigated by an older generation who has participated in violence as children. In 2004, the World Bank published “Integrating Mental Health and Psychosocial Interventions into World Bank Lending for Conflict-Affected Populations: A Toolkit,” which formed the basis for mental health programs in post-conflict countries. While mental health may be considered during the emergency state of a conflict, often the long-term effects go untreated, causing a debilitating effect on the socioeconomic infrastructure of the nation (Baingana1). This mental health can have an extremely detrimental impact on the nation’s social capital as people are not able to function and actively contribute to the nation’s post-conflict reconstruction and development (Baingana 2). This toolkit is an important mechanism for World Bank working operating in post-conflict situations, but it also helps empower local communities to address mental health concerns that would otherwise go neglected (Baingana 3).

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Early Childhood Development Failure to address the emotional and social needs of a child can result in severe mental health issues developed later in life. Children represent a large proportion of the developing world’s population. These areas also tend to have less conducive environments for healthy child development. As a result, these populations are at risk of facing difficulties in participating economically and socially once they are adults. If this issue does not receive attention and the mental health of youth continues to go unhandled, these countries may face grave consequences such as increased poverty in the future. In order to proactively thwart later mental health challenges, some World Bank initiatives have targeted healthy child emotional and mental development. These programs often help combat malnutrition and childhood diseases through education on healthy habits, hoping to teach a foundation for good physical health (Coury 1). One example of World Bank involvement in childhood development programming is its financing of a local NGO from Burundi called Twitezimbere. Burundi has extreme levels of poverty and only 63% of children are enrolled in some type of primary schooling, while only 1% or less of pre-school aged children are in preschool. In response to these shortcomings, the Burundi government created an educational policy in 2002 that emphasized early childhood development and calls for additional pre-school education (“Mental Health and the Global…” 22). The Early Child Development Program was included under the World Bank’s financing of the Social Fund Project and in 2000 began operations in four pilot communities to provide positive health and psychological support for young children. The program has expanded from those four pilot programs to 34 different communities, affecting approximately 600,000 children (“Mental Health and the Global” 22). Twitezimbere carries out healthy child development programming through the use of committees formed of local mothers (“Mental Health and the Global” 22).This Early Child Development Program is known as Developpement des Enfants en Bas Age (DEBA) or Young Children Development (Coury 1). The committees of mothers that are formed under this program evaluate what the most pressing needs of the local children are in relation to nutrition and mental health. The program then trains local leaders of the programs on public health especially concerning pediatric care and therapy (Coury 2). These programs have been largely successful because of their overall development effects on the local communities: using local building groups to construct the “informal pre-school circles” for children between the ages of three and six, and training the locals on education, nutrition, and healthcare needs (Coury 3). Program findings also report the importance of similar programs in post-conflict countries as a means of returning a sense of normalcy and positive mental health to the children (Coury 6-7). HIV /AIDS Finding new, less-costly and readily available treatments for HIV/AIDS is a global hot-topic within the healthcare community, yet the mental health impacts of the illness are often neglected. Dealing with this debilitating illness has grave psychological effects on both those infected and their families who must support them, both emotionally and financially (Mental Health and the Global 4). Additionally, AIDS can cause neurological effects including dementia and manic-depressive tendencies. To add to the biological impact on the patients, often there is a social stigma attached to people known to have AIDS, preventing people from getting the necessary treatment when it is available (“Mental Health and the Global…” 4). Another major problem is the fact that over 95% of all of the instances of HIV/AIDS occur within developing countries, exacerbating the existing strains on the socioeconomic climate of these countries (Baingana 1). In a 2005 report entitled “HIV/AIDS and Mental Health,” the World Bank emphasized the importance of psychosocial support for people affected by HIV/AIDS, and the numbers of affected individuals are growing daily as approximately 14,000 people are infected each day (Baingana 1). Another major problem is the fact that over 95% of all of the instances of HIV/AIDS occur within developing countries, exacerbating the existing strains on the socioeconomic climate of these countries (Baingana 1). The World Bank has

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committed substantial funding to HIV/AIDS programs (over US$1.7 billion), often in the form of IDA grants, and has been referred to as the “largest long-term investor in the prevention and mitigation of HIV/AIDS in developing countries” (Baingana 2). Despite the massive amounts of funding towards research and prevention programs in addition to programs that deal with many of the socioeconomic effects of HIV/AIDS, little has been done to deal with the mental health problems which are closely intertwined with the epidemic (Baingana 2). A key challenge for future World Bank programming related to HIV/AIDS is to incorporate mental health into the healthcare programs which target those infected with HIV/AIDS. V iolence against W omen As a result of gender specific abuses, socioeconomic factors, and social inequality, women suffer from mental health illnesses at a significantly higher rate than men do (WHO: "Gender disparities and mental health: The Facts). The topic of violence against women has been largely investigated by humanitarian groups across the world, and the prevalence of this violence makes it important to analyze the way it affects mental health. WHO’s 2002 World Report on Violence and Health indicated that the percentage of women assaulted by their partner ranged between 10 and 69% in countries (“Mental Health and the Global” 4). Additionally, customs such as forced marriage and female genital mutilation add to the poor mental health of many women (“Mental Health and the Global” 4). The Committee on the Elimination of Discrimination against Women recognizes that there are traditional cultural practices harmful to women. They, “include dietary restrictions for pregnant women, preference for male children and female circumcision or genital mutilation.” Since these issues are very culturally-sensitive, it is important that any mental health programming is rooted in the local community. The Committee goes further to demand that States should install effective measures to mitigate and eventually remove cultural traditions and attitudes if they are harmful to women. The World Bank supports counseling techniques that serve to uplift victims of this violence as survivors and seeks to provide security for these women in addition to psychological treatment. Primary Healthcare Reform Rather than addressing mental health thematically, a large portion of the World Bank’s mental healthcare activities have been under the category of health sector reform in order to include more mental health initiatives. This provides for a multifaceted approach to mental health problems, however this strategy can also suffer from the problems of not being accessible to a large portion of the population if it is handled in a hospital-based approach (“Show-Casing” 1). One example of a healthcare program which was expanded to include mental health is the Ugandan national healthcare plan. Uganda has experienced healthcare challenges related to conflict and HIV/AIDS, in addition to undergoing what is known as “epidemiological transition” in which the burden of infectious diseases is being matched by the growing burden of non-communicable diseases (“Mental Health and the Global” 7). As the impacts of mental health problems became more apparent in the nation, the government instituted a community-based approach to providing mental health programs. The Ugandan government introduced the Uganda National Minimum Health Care Package, with the goal of reaching the entire population with basic healthcare services. Under the Ugandan Mental Health Policy, these programs work at the district-level targeting moderate to high-risk groups, while also addressing the problems of substance abuse (“Mental Health and the Global” 8). The programs have also created standards and guidelines for healthcare providers in dealing with mental health patients. These standards have been incorporated into all levels of medical care from medical school to midwifery practices (“Mental Health and the Global” 8). The National Teaching Institution, in partnership with the Ministry of Health and the Psychiatric Departments of Ugandan Universities, has provided training program for mental health professionals so that unified, modern methodology is used in medical practices dealing with mental health (“Mental Health and the Global” 8).

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While this program has been successful largely because of its simultaneous top-down and community-level approaches, some challenges still exist for mental health in Uganda. As with many developing countries, there is a general lack of knowledge about the severity of mental health issues in the nation and a lack of resources to sufficiently address the mental health needs. Additionally, the social stigma attached to mental illness continues to hinder existing efforts (“Mental Health and the Global” 9). The institution of mental healthcare facilities is an important solution to consider for future programming, and a community-based response is a viable option for this, as evidenced by the Ugandan case study. Reworking of a health care system cannot just pass under parochial lenses to investigate the status of children, women, HIV/AIDS, etcetera in relation to mental health. The health care system is inextricably tied to the economic wellbeing of its members. Poor people are much more likely to become disabled due to for instance malnutrition, communicable and non-communicable disease, and high fertility rates. Therefore, one must look holistically at social issues, political and economic exclusion, the stigma of receiving mental healthcare, as well as our themes to discover why the poor are staying poor and what can be done to improve their mental health. CURRENT STATUS A 2004 study on World Bank mental health activity indicated a number of different strategies that were especially effective in increasing and improving mental health care options. These strategies form the basis for the current and future activities of the Bank. Health education programs have been especially emphasized because of their ability to reduce stigma by dispelling myths associated with mental illness. Additionally, in many cases if mental health programs are available, they are often located at hospitals that are not accessible to a large of the population; however, the importance of mental health initiatives is gaining recognition within the World Bank and other development organizations within the past few years, and new solutions are being formulated. Training programs are especially effective in their ability to educate local leaders and medical professionals so that a community-based approach is more feasible. Also, new options including integrating regional customs and “alternative therapists” are being considered (“Public Health” 2). Global development and humanitarian groups have become increasingly involved in mental health programming, especially within conflict areas such as the West Bank and Gaza Strip. On 25 June 2008, the WHO announced new efforts to strengthen healthcare programs in the region to address serious mental health concerns as a result of the violence (“Israel” 1). The new efforts have a critical focus on affecting public opinion and reducing the current stigma towards those who seek psychiatric help for mental health issues. The proposal will operate through family groups’ support systems, in which families with experience with an individual or individuals with mental health problems or emotional distress reach out to other families and raise awareness within the community to reduce stigma and encourage people to seek help. Also, the program will create greater access to treatment so that individuals can stay within their communities and receive treatment rather than having to relocate to a hospital setting, which often is intertwined with the social stigma of being “institutionalized.” This multidimensional approach also includes mental health training and education programs. International funding for the project is expected to continue through 2010 (“Israel” 1-2). These continuing efforts within the international community to provide new mental healthcare programming mark a growing realization of the lasting impacts of mental health on a nation’s development as a whole. BLOC POSITIONS As delegates on the World Bank committee represent economists from their countries rather than government representatives, they will not reflect the political views or traditional bloc positions of their countries. Taking this into consideration, the economists do bring to the discussion the unique economic

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experiences of their countries which may influence their policies. The greatest divide in debating the lending practices of the World Bank is that of the developed vs. developing countries. Developed Countries Developed countries, while they may experience a greater amount of social capital for the median individual, are not immune from the problems of poor mental health. Public financing, especially since it is more readily available, should be allocated towards implementing mental healthcare initiatives and promoting positive mental health at an early age in child development programs. These countries have many of the basic institutions in place to battle mental health diseases and therefore are less likely to take advantage of a development project through the World Bank. Alcoholism, substance abuse, and suicide are common diseases that affect both developing and developed countries. Developing countries should offer expertise, as a treatment approach might be transferable to a country that does not have, for instance, any community programs to treat alcoholism. As with any World Bank loan, developed nations, as the major bank contributors, are going to be very concerned with accountability and making sure that they are able to get a return on the loan. Therefore, it is important that any proposal takes aspects including accountability and corruption into account. Additionally, it is important that the issue of the stigma attached to mental health is addressed so that the resources and programs provided will actually be utilized rather than continuing to go untreated because of a fear of social repercussions. Developing Countries While both developed and developing countries have serious mental health care needs, the mental health problems of developing countries are exacerbated by poverty. Poverty itself can cause serious cases of depression (Acharya 1). Also, bloc positions related to mental health issues may arise based on cultural and religious considerations regarding treatment of mental illness and how affected individuals are treated within society. Women and children are also valued differently than in developed countries. Therefore, the public’s value on human life and those factors such as HIV and conflict which have a monumental effect on society need to be addressed before the lives of women and children improve. The ultimate goal of these developing countries must be to create mental health programming that targets their specific needs in an approach that is more accessible to the population. Should the country create/improve a primary healthcare system, community rehab programs, and school based healthcare. Would the country stand to benefit more from a combination of the three in a specific program? By understanding the macro-issues facing a nation, a program can be tailored to fit the region. COMMITTEE MISSION The topic of providing mental health facilities and services is an interesting challenge for the development community, as the topic has long gone neglected or pushed aside by what some view as more urgent matters. Despite past neglect, the topic of mental health care has lasting effects on all areas of development. The World Bank representatives on this committee are faced with the task of determining what approach to solving mental health problems would be most successful for a given nation. As indicated through the course of this research, there are two major classifications of mental health care programming: thematic programs that address a specific mental healthcare need such as violence against women or post-conflict reconstruction and institutional programs that work within the framework of healthcare facilities to provide overall mental health services. The challenge for the committee is to find innovative solutions that combine the best aspects of both of these approaches for the specific recipient nation’s needs. Programs should be culturally sensitive and may deal with a thematic issue that affects the nation specifically, yet should also consider the greater questions of how these programs can affect a large portion of the population and be made more accessible.

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Community ownership and local training initiatives are also important components to consider in any program so that the efforts may be continued at a local level once international funding ends. Delegates should also consider past successes of World Bank programs that use mental health initiatives as one component of a larger program, bringing a more multi-dimensional approach to improving the health and well-being of individuals in developing countries.

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RESEARCH AND PREPARATION QUESTIONS As mentioned in the Note on Research and Preparation, it is imperative that delegates answer each of these questions in their position papers. TOPIC A 1.

Analyze past World Bank loan proposals dealing with ALMPs. What conclusions can you draw from this analysis based on which strategies work most effectively?

2.

Describe the labor market situation in the country you are representing. What greater impact does the labor market have on the national economy as a whole?

3.

Does your nation have any experience with ALMPs? Were they financed by the World Bank?

4.

How do you foresee ALMPs adapting in the future to be applied to more transition and developing economies?

5.

Based on your nation’s specific labor market development needs, what types of ALMPs would be most effective solutions to the current employment problems?

TOPIC B 1.

What types of mental health programs are in place within your country, and what priority-level has your government made mental health within its national healthcare budget?

2.

Are there any social, economic, or political situations in your nation that may trigger a higher incidence of poor mental health (i.e. conflict, economic depression, violence against women)?

3.

How are cultural considerations an issue for your country in relation to the different thematic issues of mental health?

4.

Is there a problem with a social stigma attached to individuals with mental illness in your nation? If so, what steps can be taken to reduce or eliminate this stigma?

5.

How can these programs be integrated into the local, community infrastructure so that mental health will continue to be a priority within these communities after the World Bank’s timeframe for financial involvement ends?

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APPENDIX A WORLD BANK REPRESENTATION AT NHSMUN 2009 PART I COUNTRIES Australia Austria Canada Chile Denmark France Germany Ireland Italy Japan Kuwait Netherlands Portugal Russian Federation South Africa Spain Sweden United Kingdom United States

PART II COUNTRIES Afghanistan Albania Argentina Bahamas Bangladesh Bosnia-Herzegovina Brazil China Colombia Dominican Republic Eritrea Guyana Indonesia Iran Israel Jamaica Korea, Republic of Libya Mexico Nigeria Poland Saudi Arabia Singapore Sudan Thailand Turkey Uganda Vietnam Zimbabwe

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APPENDIX B SAMPLE LOAN PROPOSAL Iranian Loan Proposal for “Business Incubator” Pilot Programs I. Total Amount of the Loan The proposed project will be funded by an IBRD loan of US$11,159,944 in addition to funding from the Islamic Republic of Iran’s budget for job creation for the remaining sum of US$200,000. This creates a combined total for the project of US$11,359,944. II. Proposed Project This loan proposal involves non-traditional economic development, by which development is achieved through grassroots initiatives as businesses are created within a nation. This contrasts with traditional economic development, in which a nation tries to encourage external businesses to invest in its economy (Stevenson). One form of this development is the creation of “business incubators,” programs that help new businesses become self-sustaining through the initial provision of resources and a communal office location. Business incubators are often linked to a university and take applications from student companies to create successful businesses. Often, the incubator takes a percentage of ownership in the company, in exchange for offering important resources name-recognition. Business incubators allow startup companies to rent office space, work with other companies, use advanced technology, and network with professionals within the community (“What is a Business Incubator?” 1). This model would serve to increase employment and entrepreneurship among college-educated Iranians. Under this proposal, three pilot programs will be set up in Iran; these programs will model the business incubators that have been successful in fostering entrepreneurship in over 50 different states worldwide. The pilot programs will target three provinces: Khuzestan, Lorestan, and Sistan and Baluchistan, which have the most acute unemployment problems in Iran (“Employment Rate by Country and Ostan”). Each business incubator will be affiliated with one prominent university in each province, thereby expanding the university’s capability to provide viable economic options for the students after graduation, since currently many students with advanced degrees find themselves either unemployed or drawn by the lure of competitive markets within more developed nations. The targeted universities will be the Shahid Chamran University of Ahvaz in Khuzestan, the University of Lorestan, and the University of Sistan and Baluchistan. In addition to the benefits gained in these specific regions as they develop economically because of the pilot programs, the entire nation of Iran has the potential to benefit as more universities model business incubators after the three created in this loan proposal. The nation of Iran can then seek to create an economy that can compete in the global market, and even to attract foreign direct investment in Iran. Before any money is actually distributed for the creation of the three pilot programs, the World Bank will conduct a thorough evaluation of the current facilities within these universities. Additionally, the World Bank will approve a competent staff and director for each business incubator. This staff should be highly experienced in business and should be able to produce credentials to that effect. Once directors and staff are hired, they will undergo training on how to work with the student companies. This loan proposes that the National Business Incubator Association (NBIA), in partnership with Business Cluster Development and Claggett Wolfe Associates, both international consulting agencies, work with all groups trying to create business incubators by training staff and advising these local entities on business incubation practices that have been effective internationally (“NBIA International Consulting Service” 1). This loan proposal aims to create fully equipped incubators that can best aid the businesses created. The first step in actually creating the incubator itself is the building where the companies will be housed. In these three

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pilot programs, each incubator will be built to code at 20,000 square feet, an average size for business incubators in a variety of countries. The facilities will be advanced with enough space for approximately 20 companies to function, depending on company size. The business incubator also enables the entrepreneurs to share important amenities such as copiers, faxes, telephones, a high-speed internet connection, and voicemail. Finally, this loan proposal must take into account the costs of human resources. This includes the salaries for the director and his assistant director, a competent secretarial staff to be shared by the companies, maintenance personnel, and fees for a number of consultants including attorneys, accountants, and bankers to be used by all companies in the incubator. Since the student-led businesses will undoubtedly be faced with some financial obstacles, especially in the high-technology field, this loan proposal also calls for the creation of a self-sustaining fund of US$1,000,000 that will be set aside within the Central Bank of Iran for the students to apply for small loans for their businesses. Loans will range from US$1,000 to US$2,000 and will be granted following an approved application from one of the student businesses. The loans will have a four percent interest rate, and the recipients of the loans will be required to file a report stipulating exactly how the funds were allocated after one year. The microfinance opportunities provided by this loan proposal will help ensure that the entrepreneurs have financial resources at their disposal in addition to the resources provided by the business incubators. After five years, the World Bank will review the business incubators established by this proposal and will report on the strengths and weaknesses of these pilot programs, as well as a summary statement of the recommendations and future prospects of the programs. III. Credibility Explain your country’s experiences with the World Bank and repaying previous loans, while attempting to avoid borrower dependency. IV. Background The proposed loan seeks to address the imbalance between education levels and the number of young adults actually employed in Iran. This problem exists because of the “demographic bubble” that has developed in which a large number of young adults have reached high levels of education, but do not have access to a job market that demands skilled labor, forcing many highly educated individuals to accept low-paying jobs. The strategy proposed focuses on pilot programs in the three provinces of Iran with the highest rates of unemployment, Khuzestan, Lorestan, and Sistan and Baluchistan. These provinces were chosen for the business incubator programs not only because of their high rates of unemployment, but also because each province contains a prominent university which was targeted for the business incubators instituted under this loan proposal. Khuzestan is an Iranian province located in the western portion of the nation, bordering Iraq, and is often noted for its diverse population, which consists of a number of ethnic minorities. The university in Khuzestan that will receive World Bank funding for the business incubator pilot program is the Shahid Chamran University of Ahvaz, a four-year college that has approximately 13,602 students, 50.9% of which are women (“Statistics of Higher Education in Shahid Chamran University” 2). Another pilot program is planned for the Lorestan Province, which consists of approximately 1.6 million people and is located directly above Khuzestan (“Lorestan Province” 1). The pilot program for Lorestan will create a business incubator that is affiliated with the University of Lorestan, the leading university within the region. The third location for a business incubator is the Sistan and Baluchistan Province, which is located in Southern Iran and borders Pakistan and Afghanistan. The proposed business incubator will be created under the University of Sistan and Baluchistan and will be based off of the University’s Faculty of Economics and Administration in cooperation with the University Research Center. The proposed loan targets three very different regions that are experiencing acute unemployment and underemployment in order to create a unique addition to each province that will cater to the business needs of the individual community. Additionally, after reviewing the

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progress and successes of these pilot programs, Iran and the international community can have a greater understanding of how to address unemployment in a variety of different environments. This loan proposal is essential for Iran not only because of the inherent benefits to these three specific regions, but also to the future of creating a viable and lasting job market within the entire nation. These pilot programs have the potential to expand throughout universities in Iran in order to lessen the disparities between the number of young individuals with a high level of education and the percentage that are gainfully employed, thus increasing the overall efficiency and productivity of business markets throughout Iran. The World Bank and the international community have a responsibility to foster development and entrepreneurship within the developing world and should unequivocally pass this loan proposal as a primary step in incorporating the Iranian people into a thriving world economy. V. Details of Fund Allocation A. Initiative #1- World Bank Evaluation of the Situation -Total: $16,500 a. Sub-initiative 1: The World Bank will send representatives to Iran to fully evaluate the current situations in Khuzestan, Lorestan, and Sistan and Baluchistan in regards to what facilities/lots are available for the incubators to be housed in. Subtotal: $11,000 b. Sub-initiative 2: Funds will be used to cover the professional expenses of the World Bank representatives while they conduct interviews for staff members of the business incubator. Subtotal:$5,500 B. Initiative #2-Training of the Staff- The National Business Incubator Association (NBIA) in partnership with Business Cluster Development and Claggett Wolfe Associates will provide training for the local directors of the three business incubators so that they can effectively run the business incubators Total: $22,000 C. Initiative #3- Provision of Resources for the Business Incubator to Begin to Operate (subtotals are for one business incubator, so the total has been multiplied by 3) Total: $8,236,944 a. Sub-initiative 1: The construction of a 20,000 square foot business incubator to house approximately 20 companies. Subtotal: $1,329,642 b. Sub-initiative 2: Office furniture for offices and conference room. Subtotal: $7,700 c. Sub-initiative 3: Technology- including but not limited to computers, fax machines, phones, and copiers. Subtotal: $33,306 d. Sub-initiative 4: Human resources- salaries for the staff of the business incubator (for five years of operation- will be reevaluated at five year review)- Director, Assistant Director, Secretarial Staff, and Maintenance Personnel (individual salaries to be determined by the University) Subtotal: $1,375,000 D. Initiative #4- Operating Costs for the First Five Years of the Business Incubator- the World Bank will offset operating costs (i.e. feasibility studies, hiring of consultants, utilities…) of the Business Incubator for the first five years until the incubator can operate independently. Total (multiplied by 3): $2,062,500 E. Initiative #5- World Bank Micro-financing Fund- to be allocated to the Central Bank of Iran for the granting of $1,000-$2,000 loans to student businesses in the incubators who apply for additional funding. Total:$1,000,000 F. Initiative #6- World Bank Administrative Fees and a World Bank Evaluation of All Three Incubators after Five Years. Total: $22,000 GRAND TOTAL: $11,359,944

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VI. Repayment Schedule A. Maturation: 15 years B. Grace Period: 7 years C. Interest Rate: 6% Works Cited “Business Incubator FAQ." NBIA. <<www.nbia.org/resource_center/bus_inc_facts/index.php> 11 February 2006. "Companies." University of South Carolina Technology Incubators. November 8, 2005. 13 February 2006. Collymore, Yvette. "Iran Faces Pressure to Provide Jobs, Address Health Disparities." PRB. . 11 February 2006. Creating Jobs." Economic Focus. Iran Daily. April 19, 2005. "Employment Rate by Country and Ostan 1376." Statistical Centre of Iran. <www.sci.org.ir/english.default.htm>. 11 February 2006. "Lorestan Province." . February 11, 2006. McWilliams, James D. "USC Program Ready for Big Move." The State. . 13 February 2006. Nahi, Tytti. "Unemployment in Iran: An Emerging Social Crisis?" 9 July 2002. <www.iranmania.com/news/economy/features/unemployment/default.asp>. 11 February 2006. "NBIA International Consulting Service." NBIA. <www.nbia.org/resource_center/consulting/index.php>. 11 February 2006. "NBIA Soft Landings Program." NBIA. . 11 February 2006. "Sistan and Baluchistan Province." . 11 February, 2006. “Statistics of Higher Education in Shahid Chamran University.” <www.123exp-orgs.com/t/00511311328/>. 11 February 2006. Stevenson, Joel. Personal Interview. 16 February 2006. "The Life Cycle of the Business Incubator." University of South Carolina Technology Incubator. . >.11 February 2006. "What is Business Incubation?" NBIA. . 11 February 2006.

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BIBLIOGRAPHY COMMITTEE HISTORY “About Us.” The World Bank. 2007. 21 June 2008 < http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20046292~ menuPK:51123588~pagePK:50004410~piPK:36602~theSitePK:29708,00.html>. Basic facts and overview of the World Bank structure. “About Us- Challenge.” The World Bank. 2007. 21 June 2008 . Provides a critical overview of the four main pillars of the World Bank’s role in developing nations. “About Us- History.” The World Bank. 2007. 25 June 2008 < http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20653660~ menuPK:72312~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>. Brief overview of the founding and early years of the Bank. “About Us- Operations.” The World Bank. 2007. 25 June 2008 < http://web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/0,,contentMDK:20103838~ menuPK:1697023~pagePK:51123644~piPK:329829~theSitePK:29708,00.html>. Description of World Bank sources of funding and how this funding is implemented in the forms of loans and/or grants. “About Us- Organization.” The World Bank. 2007. 21 June 2008 . Defines the structural organization of the World Bank and how the member countries work within this organization. Hunter, David. “The World Bank’s New Inspection Panel: Will It Increase the Bank’s Accountability.” Center for International Environmental Law. 2007. . Specifically looks at the Willi Wapenhans report and its successes and failures. “World Bank History.” The World Bank. 2007. 22 June 2008 . Provides a history of the World Bank’s expansion and evolution, as well as the scope of the issues that it covers. TOPIC A UN Sources “Active Labor Market Programs and Youth Employment.” Spanish Trust Fund for Impact Evaluation and Results-based Management in Human Development Sectors. The World Bank Group. <www.worldbank.org/sief>. 26 August, 2008. Overview of the Fund’s work in countries including the Dominican Republic and Uganda. Beejadhur, Yuvan A., “Interview.” The World Bank Office of the Special Representative to the United Nations. 20 August, 2008. Personal interview with World Bank counselor at the Office of the Special Representative to the United Nations.

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Betcherman, Gordon, Karina Olivas, and Amit Dar. “Impacts of Active Labor Market Programs: New Evidence from Evaluations with Particular Attention to Developing and Transition Countries.” Social Protection Discussion Paper Series. No. 0402. The World Bank Group. January 2004. A very important document evaluating past ALMPs and specifically addressing the implications of this research on future programs in transition and developing nations. “Improving the Labor Supply of the Poorest Workers in Sub-Saharan Africa.” Policy Note 1. Federal Ministry for Economic Cooperation and Development. The World Bank. November 2006. This policy note submitted to the World Bank evaluates different problems specifically facing nations in sub-Saharan Africa dealing with the labor supply, including the problems of HIV/AIDS and low life expectancies. “Labor Markets- Active Labor Market Programs.” The World Bank Group. . 15 June 2008. Defines Active Labor Market Programs and the differences between active and passive strategies. McCutcheon, Robert T. “Employment Creation In Large-Scale Public Works Programmes, Labour-intensive Construction and Maintenance in Sub-Saharan Africa: The World Bank played a Critical Role during the 1970’s and 1980’s; what are the prospects for the future?” The World Bank Group. 7 April 2008. Provides a very detailed history of the World Bank’s involvement with public works programs in sub-Saharan African and also provides options for the success of future programming. “Report No. PIC4971- Argentina-Employment Support Project.” The World Bank Group. 18 April 1997. An overview of World Bank involvement with Argentina’s “Trabajar” project. “Rural Migrant Skills Development and Employment Project.” The World Bank. Report No.: AB3442. < http://www.wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/11/28/000 076092_20071128093542/Rendered/PDF/CN0Migrant0PID010Appraisal0Stage.pdf>. 26 August, 2008. Current example of World Bank ALMP initiatives. Non-UN Sources “Brain Drain.” . 26 August, 2008. Defining the term brain drain. "Definitions and Theories of the Informal Economy.” Women in Informal Employment: Globalizing and Organizing. . 26 August, 2008. Overview of informal employment. “IZA- Employment and Development.” . 15 June 2008. The IZA is an important labor and development organization and this overview gives a great deal of information about labor concerns facing all nations: developed and developing. “Labor Markets- Overview.” The World Bank Group. . 15 June 2008. Introduces the Labor Markets Team under the Social Protection Unit. “Microfinance and Micro-enterprise Programme.” UNRWA. < http://www.un.org/unrwa/programmes/mmp/index.html>. 28 August, 2008. Example of Palestinian micro-financing initiatives.

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“Poverty Analysis- Poverty in Poland.” The World Bank Group. < http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPA/0,,content MDK:20205276~isCURL:Y~menuPK:435735~pagePK:148956~piPK:216618~theSitePK:430367,0 0.html>. An analysis of poverty in Poland with its causes and ways to ameliorate the situation. Particular attention is paid to unemployment and wage subsidies. “Projects- Bosnia and Herzegovina: Emergency Demobilization & Reintegration Project.” The World Bank Group. . 10 July 2008. A program that serves as an example of retraining after mass-layoff.s “Projects- Romania: Employment Services & Social Protection Project.” The World Bank Group. . 10 July 2008. The example of Romania’s 2003 employment services program provides a good example of the multi-faceted approach to ALMPs that the World Bank has implemented into its current strategy. “PSI: Research: Evaluation of the New Deal for the Long-term Unemployed.” . 10 July 2008. Overview of Britain’s new deal for the long-term unemployed specifically aimed at workers over the age of 25 who have been unemployed for over 2 years. “What Africa Needs to do to Spur Growth and Create More Well-Paid Jobs.” Policy Note 2. Federal Ministry for Economic Cooperation and Development. The World Bank. November 2006. This policy note addresses the problems of a low investment climate in Africa and the need for manufacturing exports to create employment opportunities. TOPIC B UN Sources Baingana, Florence and Ian Bannon. “Integrating Mental Health and Psychosocial Interventions into World Bank Lending for Conflict-Affected Populations: A Toolkit.” September 2004. Important toolkit for World Bank officials working in conflict and post-conflict situations where serious mental health issues have developed Baingana, Florence, Rachel Thomas, and Christine Comblain. “HIV/AIDS and Mental Health.” January 2005. The International Bank for Reconstruction and Development. The World Bank. Specific example of how mental health is a major component of the effect of HIV/AIDS both on the affected individuals and the community’s development as a whole Beejadhur, Yuvan A., “Interview.” The World Bank Office of the Special Representative to the United Nations. 20 August, 2008. Personal interview with World Bank counselor at the Office of the Special Representative to the United Nations HRI/GEN/1/Rev.6 at 243. “Committee on the Elimination of Discrimination against Women, General Recommendation 19, Violence against women.” 1992. Documents many of the threats facing women in society and provides suggestions to States in that each State promotes and enforces a healthy environment for women. Machel, Graca. “Impact of Armed Conflict on Children.” United Nations Children’s Fund. The United Nations. 26 August 1996

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17 September 2008. A UN report detailing the devastating impact of violent conflict on children. “Mental Health and the Global Development Agenda: What Role for the World Bank- Proceedings of a November 2003 Seminar and an Overview of World Bank Interventions in Mental Health.” Health, Nutrition and Population. The World Bank. August 2004. A very strong document that I highly recommend for all delegates to read as it provides an in-depth analysis of Mental Health themes and the World Bank’s previous involvement through specific case studies. Non-UN Sources Acharya, Keya. “Poverty And Mental Health In The Developing World.” September 2001. Contemporary Review. . Article discussing the association between poverty and mental disorders including depression. Coury, Diane, Susan Opper and Judith Nahayo. “Early Child Development in Burundi: Community Delivery System (or community driven response?) to Improve the Well-being of Young Children.” <siteresources.worldbank.org/INTMH/Resources/HDWeek-ECDBurundi.doc> 24 July 2008. Burundi case study of early childhood development “Israel-Opt: Palestinian ministry, WHO launch mental health project.” IRIN. 26 June 2008. . 24 July 2008. A news article outlining recent involvement of the international community in mental health care programs in conflict situations, specifically the West Bank and Gaza “Mental Health.” The World Bank. . 12 July 2008. Overview of mental health initiatives and documents by the World Bank “Mental Health-Topics.” The World Bank. . 12 July 2008. A listing of thematic issues often related to mental health in addition to an overview of how socioeconomic factors rather than just biological factors influence mental health “Public Health at a Glance-Mental Health.” The World Bank. 2008. . 12 July 2008. Provides a question/answer approach to some of the basic questions involving mental health and why the World Bank views it as a priority “Show-Casing 5 Years of World Bank Activities on Mental Health.” Human Development Network. The World Bank. 11 November 2004. . 12 July 2008. Good historical overview of World Bank involvement with mental health programming beginning in 1998.

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