Republic of Iceland | General Assembly – Economic and Financial Committee

Reducing Economic Inequality & Financing Sustainable Economy

Enzo Derajo

Background Issue

In the world where the economy fluctuates and trends change, there lives the people who constantly strive to adapt. In the past centuries, the global economy system has changed. The people, trends, and our needs also changed. Yes, global income distribution has risen since then. But the gap between the poorest and the richest within countries seems to instead get wider; it can be seen on the statistics and statements made by the OECD.[1] Having the massive increase of wealth at the top, while the total wealth owned by those at the bottom is falling, it suggests that money from the lower class flows upwards to the upper class, further sucking the money upwards and creating poverty. Then, the people would have less access to education, capital, and a chance to recover. It creates a vicious cycle.

Part of this problem has to do with cases of tax evasion and tax havens. Loose financial policies and lenient tax punishments are utilized in a way that a person, on one side accumulates tremendous profits by dodging the taxes. But on the other hand, it affects the government and people in their home country. It's the money that should've become paid tax, the funds government use for programs regarding to healthcare, education, and especially equitable welfare for the middle & lower class. The ramifications of the...