ISSUE an update to its October 2008 World

ISSUE AND POSITION: To better coordinate countries’ regulations, they have to be financially stable in the future. To make the IMF a superior tool for global surveillance, the corporation has to be more global and more involved in the community. Kazakhstan has the largest economy in Central Asia with a current gross national income rate of 407.6 billion dollars, and a gross domestic product growth rate of 1.0% annual change. The country possesses oil reserves as well as minerals, metals, and are starting to take up agriculture. Kazakhstan lacks significant economic diversity in various industrial sectors. Rather, this specific concern is ignored in light of the prodigious matter of oil. The oil sector is the main driver for economic growth. For long-term financial stability, Kazakhstan bases their economic gain off of petroleum and agriculture. BACKGROUND INFORMATION: The tumultuous issue surrounding the financial stability of the global economy has been a debatable topic since the 2008 Financial Crisis. The United Nations also identifies this time period as the Great Recession years. In November 2008 the IMF released an update to its October 2008 World Economic Outlook. They expressed the deteriorating economic environment and downgraded global GDP growth forecasts for 2008-2009. The total global gross domestic product became negative bottoming out at a -1.7% annual growth rate. Greece, Japan, Russia, and Italy are just a few of the countries that had the worst financial problems including having a zero percent annual growth rate. There is a consensus that the immediate start to the crisis lays in the United States excessively borrowing money, and loaning it to unqualified borrowers. In an effort to end the crisis many banks closed due to inflation, and the government intervened. Post-crisis, programs were produced such as TARP, and the Dodd-Frank Wall Street Reform and Consumer Protection Act? to help the economy and prepare for the future. The IMF started lending money to countries to help jump-start their economies and overall improve the international economy. If another crisis was to occur in the future, the global economy would be prepared, and maintain financial stability. This event crippled the economy and some countries can never fully recover after this occurrence. The banks have, to an extent, changed their ways, but cheap credit, low interest rates, and debt are some of the problems left behind by the 2008 crisis. PROPOSED ACTION ON THE ISSUE:Encourages G-20 teeth to be a more global and interactive organizan with countries to supervise financial decisions, and to have a grasp on a country’s financial stability. The organization will also give out suggestions to where money could be spent to help the overall economy of the community circulate economic growth. The issue for creating financial stability in Kazakhstan will continue to make the petroleum department its main sector, however, the government is going to expand the agriculture sector to help utilize unused land. There is 15% of arable land in the country that is unexploited. Exploiting this untouched land can employ one fifth of the country’s population(about three million jobs). As a whole, Kazakhstan plays a major economic role with the production and exportation of petroleum which helps fuel the economy.


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