The global economy is facing turmoil following the sudden collapse of Lehman Brothers in October of 2008. What had initially begun as a housing market correction has escalated into a full-scale financial meltdown, exposing the vulnerability of a globalized financial system which is built on complex derivatives, inflated credit, and weak regulatory oversight. Taking place at the height of the crisis, this committee calls upon member states to formulate both an immediate response and a long-term strategy to prevent such a collapse from occurring in the future.

Subtopic A: Emergency Response

Delegates are tasked with addressing the urgent collapse of global markets, responding to global panic, failing financial institutions, and a global credit crunch. The focus is on coordinating stimulus packages, stabilizing banks and currencies, and strengthening the IMF and World Bank to act as international safety nets. It is also crucial to consider emergency employment protections and measures in order to prevent economic collapse in vulnerable nations.

Subtopic B: Long-Term Reform

As the crisis begins to stabilize, the committee shifts focus to systemic reform with discussions centering on the regulation of financial instruments such as derivatives and restructuring of the IMF and World Bank. Delegates will work to design mechanisms for crisis prevention and consider the creation of a Financial Stability Council under the UN with a focus on protecting developing nations from disproportionate financial fallout and reconsidering the global reliance on a single reserve currency.