Download Introduction Definition of Key Terms

Forum: GA2 Economic and Financial committee (ECOFIN)
Issue: Creation of a minimal wage level around the world. Student Officer: Jasper Hekking (President), Sarah Gove(Deputy President) Position: President of GA2 Economic and Financial committee (ECOFIN)
Introduction
In the economical and financial eyes of the international climate, the creation of a minimum wage level is more realistic in a human rights perspective. However seeing as the economic situation is some nations, and companies operating in those nations rely heavily on low wages to stabilize the economy, strict regulated guidelines have to be established. The effect of a global minimum wage level will help diffuse the difference between current MEDC and LEDC labor advantages and disadvantages. Definition of Key Terms
Minimum wage: a price for labor set by the government, which must be paid as a minimum to any employee MEDC: More economically developed country (e.g. USA, Sweden etc.) LEDC: Less economically developed country (e.g. South Sudan, Armenia) Multinational companies: Companies that span over international borders and operate in several countries (e.g. Microsoft, Monsanto etc.) Apprenticeships: a system of training a new generation of practitioners of a structured competency a basic set of skills. Public sector: refers to the part of the economy concerned with providing various government services. The composition of the public sector varies by country Economic development/Growth: An increase in the capacity of an economy to produce goods and services, compared from one period of time to another. Economic growth can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries. Background Information and Overview
Minimum wage levels are a relatively new development in the scope of international human rights. Each Nation hold different regulations on it, and several multinational companies take advantage of this. Companies like Levis and other labor heavy production and manufacturing companies’ house their production lines in nations that provide cheap labor costs. In turn these nations are unable to advance their own economic force, seeing as young labor isn’t illegal and as such children’s opportunities to train for highly skilled labor is removed, and such the opportunity for a nations economic power to grow is diminished. For instance in MEDC nations such as the UK which houses laws on minimum wage, the required payment for any job is 6.18 euros an hour, given that the employee is 18, and dropping to a minimum of 3.26 euros an hour for apprenticeships (under 18 specialized educational working). In contrast the Chinese minimum wage will drop as low as 0.87 euros an hour for any employee over 18. An Official statement for a minimum wage level for any working person under 18 is not in existence, and thus companies can produce extremely cheap products by offering the lowest class citizens jobs for criminally low wages. The most recent example being the factory in Bangladesh that collapsed, carrying over one thousand employees each being paid less those 50 cents an hour. The utmost importance on an economical perspective however is the effect on the economy and finances of the nations effected (every member state). Seeing as the option for the establishment of a minimum wage should be enforced, and public jobs for nations that impose lower than suggested wages will have to increase their government spending and possibly exacerbate their financial debt due to excessive expenditure on their public sector. Multinationals will now however have to establish a minimum wage regardless of which nation they are housing their headquarters (possibly for reasons of tax evasion). Naturally this is a triumph for the Human rights aspects, however it will contribute colossally to the growth in future generations, and the ability for underprivileged nations to flourish economically. Position of Important member States and UN Bodies
All Member states present have an opinion on the matter, however since most of them are shared between tow types, the two polar opposites have been exemplified in china and the United Kingdom. However this is a point on which every nation should inquire. This is a spectrum and every nation lies somewhere in-­‐between. China: Since china is currently an economic powerhouse that carries the ability to shut the money tap on the United States, its minimum wage is of very little concern. Due to the attraction of companies to house and pay they’re unemployed. United Kingdom: The UK is very advanced in its minimum wage levels having taken a significant effort to ensure that there is a minimum wage level of significant height set for several age groups, and apprenticeships. Human Rights Committee (united Nations Body): The creation of a minimum wage world wide in naturally in very close correlation to the Human rights question of what the people who are providing labor are owed on an ethical level. Potential Solutions
A possible solution for a newly proposed concept for the furthering of economic stability on a world stage is naturally that every nation wins. However this has to be achieved in a way in which each separate nation does not suffer from another’s individual gain. The possibility to set this minimum wage level at a very low position is an easy manner of forcing Multinationals to stop taking advantage of LEDCs and trapping them in a cycle of underprivileged, whilst at the same time not harming the jobs they create, which are a positive economic benefit. Sources:
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