Topics
Renewable Energy Regulation, Sanctions on Rogue States, and Corporate Taxation and Offshore Banking
Committee Type
General
Committee Size
Small
Committee Description
The Group of Twenty originated in response to global economic crises that necessitated urgent action and collaboration between the predominant world powers. From its origin, the Group of Twenty set a precedent of a collaboration between the elite countries of the world in order to subsequently prompt greater unity across the world overall. Beyond its economic origins, in recent years, the Group of Twenty has expanded its focus to cover a more broad variety of issues that are pressing the global community – allowing for diverse debate in a small setting.
Topic Intros
Renewable Energy Regulation
Global concerns continue to arise as the effects of climate change continue to grow. This has led many countries to look to decrease their reliance on fossil fuels, and research and develop their capacity for renewable energy, or energy that comes from replenishable sources such as solar, wind, hydroelectric, and geothermal. However, while there has been a surge of global initiatives to adopt renewable energy, the transition to different energy sources contains significant challenges like technological gaps, high upfront costs, infrastructure limitations, and resistance from fossil fuel industries that hold political and economic power. Currently, there is no single body that has authority over uniform international renewable energy regulations. While there have been past initiatives, like the United Nations Sustainable Development Goals (SDGs), that promoted affordable and renewable energy, enforcement mechanisms continue to remain weak. A lack of cohesion further complicates the efforts to adopt renewable energy.
Sanctions on Rogue States
Sanctions are commonly imposed on countries that violate international norms and treaties, or threaten global stability, and are created by international coalitions or individual states. Rogue states are countries that are perceived to threaten global peace due to their actions and policies, such as nuclear proliferation, human rights abuse, or invasions of sovereign nations. Sanctions can be political, economic, or military in nature, and are intended to pressure regimes to change their behavior without the use of military force. The effectiveness of sanctions is often undermined by the lack of a unified international approach. Effective sanctions rely on countries with varying political systems, economic interests, and diplomatic alliances to create a unified position.
At the same time, the side effects of sanctions have raised moral and strategic concern over whether sanctions are truly useful in influencing a state's behavior or escalating conflicts. Secondary sanctions, in which third-party nations or firms are penalized for dealings with rogue states, have complicated global trade and multilateral diplomacy. And while sanctions are intended to be used as a non-military tool of pressure, they often inflict widespread suffering on the civilian population, restricting access to basic human needs, and worsening the humanitarian conditions.
Corporate Taxation and Offshore Banking
Multinational corporations often utilize global tax loopholes to minimize their taxes, shifting profits to offshore jurisdictions where they face little to no taxation. Corporate taxation, has become increasingly difficult to enforce in the modern globalized economy. As multinational corporations expand, many engage in offshore banking. Offshore banking involves financial activities that are conducted in jurisdictions outside of a company’s home country. This practice undermines national tax systems by decreasing tax revenue, economic equity, and financial transparency. The rise of multinational corporations and global financial networks has made it challenging for countries to regulate and collect taxes effectively.
