QUESTION OF: Measures to prevent the increasing income inequality in developing countries COMMITTEE: Special Conference on Promotion of Equality

Sub-Commission I MAIN-SUBMITTER BY: Peru CO-SUBMITTERS: CO-SPONSORS: THE ECONOMIC AND FINANCIAL COMMITTEE: Aware of the possible issues that can arise from developing countries in the wake of globalisation, Bearing in mind that a huge difference in Purchcasing Power Parity affected by income can greatly disadvantage a country in terms of exports, Concerned with the issue of the progressive wealth gap occurring on a global scale, Observing that effective income management is crucial for reaching development goals in health, education, infrastructure and progress for each nation Understanding that helping underdeveloped countries to climb out of poverty will contribute to regional stability, Realizing that in a host of global issues, countries cannot focus on only certain corners of the world when handling inequalities in income, Reaffirming the role of the World Bank in promoting long-term economic development and poverty reduction, Reaffirming that the United Nations as well as other relevant bodies should play an active role, due to their mission goal, to assist countries in debt sustainability. Recalling its resolutions 58/203 of 23 December 2003, 62/186 of 19 December 2007, 63/206 of 19 December 2008, and 65/144 of 20 December 2010, Peoples Economic 1. Calls for the establishment of a global income development funds program by the World Bank in which all countries that are mildly indebted and further less indebted, donate 0.5% of their government revenue to the World Bank development funds program;

2. Requires that these funds will be used for financing development and closing the income gap in the recipient country primarily through methods such as but not limited to: a. investment in technologies that would only aid the following areas depending on the speciality of the country: i. agriculture, ii. industrial processing, b. building or improving public primary and secondary schools; 2. Demands that recipient countries of such donations refrain from using the funds for refunding debt; 3. Calls upon the World Bank to rescind funding in such cases; 4. Calls for the World Bank to: a. keep records of the allocation of such funds and to send representatives to ensure the critical use of the funds for the intended purposes in such countries, b. ensure transparency in the accounting, allocation and use of the funds c. seek the cooperation of local governments, d. publish a report on any developments every 6 months; 5. Authorizes the World Bank to decide on the distribution of development funds, on their own discretion, to relevant recipient countries in need and for the World Bank to assess the eligibility of such countries for development funds based on but not limited to: a. classification of that country in terms of their Gini Coefficient b. the countrys Purchasing Power Parity (PPP) 6. Designates that the World Bank would withhold such funds from countries that violate these terms; 7. Recommends the United Nations to make efforts to further enhance the voice and representation of developing countries in multilateral institutions such as the World Trade Organization, 8. Encourages the WTO to review the membership of non-members, observers and countries currently negotiating their membership; 9. Decides to remain actively seized in the matter.