Economic and Financial Committee

Topic A: Global Governance of Informal Economies

Topic B: Taxing Multinational Corporations in a Fragmented Economy

Welcome to the Economic and Financial Affairs Council (ECOFIN) at Harvard Model United Nations 2026! This year, the ECOFIN will tackle two incredibly important issues plaguing our world today: Global Minimum Taxation and Sovereign Debt in Developing Countries. 

In an increasingly globalized world, tax competition has emerged as a major barrier to equitable growth. Multinational corporations often shift profits across borders to jurisdictions with lower corporate tax rates, thereby depriving developing countries of essential public revenue. In response, over 140 countries within the OECD/G20 Inclusive Framework have agreed to implement a global minimum corporate tax rate of 15% on large multinational enterprises. While this initiative looks to curb down price gouging and restore fairness, it has raised significant questions about how the new regime will impact nations with limited fiscal capacity and heavy reliance on foreign direct investment. 

This topic invites delegates to debate whether the global minimum tax will promote or hinder development, how to balance tax justice with economic competitiveness, and then determine how the factors within these metrics will work towards a future of growth. 

An interesting tangent draws from the topic of how this taxation would help or hurt certain sovereign debt levels within emerging economies. Many low-income countries are facing unsustainable debt levels, spending more on repayments than on healthcare or education. Institutions such as the IMF and World Bank have pushed for debt restructuring, but progress remains slow and often favors creditor nations. Meanwhile, China's rise as a significant bilateral lender has complicated traditional debt resolution frameworks. These mounting challenges make it increasingly difficult for developing countries to achieve the 2030 Sustainable Development Goals.

These topics push delegates to consider all factors when dealing with the idea of a global minimum taxation level. Delegates must consider the complex intersection between tax policy, sovereign debt, and development finance, while exploring innovative solutions to make the international economic system more equitable and resilient for all.