The NARA member states are all members of the International
Monetary Fund (IMF) and the World Bank. Flushing joined the
IMF in 1991. Flushing pays an annual quota to the IMF of 40
million special drawing rights (SDRs). This quota to the IMF is
paid 75% in Flushingian dollars and 25% in SDRs. Flushing is
certainly one of the smaller countries in the IMF and World Bank,
with a per capita gross national product (GNP) of $1000.
Flushing was a strong trading partner of Japan over the last decade.
Flushing imported significant amounts of Japanese electronics and
Japanese cars remain an important status symbol for wealthy
Flushingians. Flushing exported large amounts of oil and textiles to
Japan, which kept the balance of payments (BOP) about equal. The
emergence of the FWP and resulting terrorist attacks have had
terrible effects on the already struggling economy of Flushing. The
demand for Flushingian goods abroad has plummeted, and
multiple countries have followed Bayside and placed economic
sanctions on imports from Flushing. Japanese human rights groups
have raised a significant uproar over the Flushingian government’s
mass detainment and alleged torture of its citizens and called for
boycotts on all goods from Flushing. The demand for Flushingian
textiles in Japan has dropped over 50% in the last six months as the
public outcry against Flushing increased. This has all resulted
Flushing’s current trade deficit with Japan of 50 million SDRs.
Flushing quickly depleted its reserve tranche (10 million SDRs)
and needs to borrow more to cover this deficit. The government of
Flushing claims that it is working diligently to cure its poor
reputation, which it blames for its sudden downward shift in BOP.
Government oversight agencies have been established to ensure the
human rights abuses of the past are not repeated. Flushing has also
undertaken bilateral negotiations with Japan in order to restore the
damaged relationship and reopen Japan to the flow of Flushingian
goods. Flushing has also mentioned the possibility of privatizing
Pure Flushing, Inc., the largest state-owned textile manufacturer in
The government of Flushing has proposed some additional ideas to
cure its trade deficit. The first is to modernize its transportation
infrastructure. The plan includes significant improvement to
existing roads and bridges. It also includes the expansion and
modernization of the existing railroad network across Flushing.
This project has an estimated cost of $500 million. The railroad
expansion is expected to cause some displacement of the native
Fluse Tribes, living on reservations in the northwest areas of
Another project endorsed by the government of Flushing is the
development of its oil drilling industry. Although Flushing is
already dealing in oil, there are believed to be significant untapped
reserves in the western regions of Flushing. This plan requires an
initial cost of $400 million, but expects to pay large dividends
within a few years. The environmental lobby in Flushing has raised
strong objections to this plan, which would call for drilling in parts
of the Tigerland Wildlife Reserve. The Flushingian Tiger is
renowned for its distinct eye color and magnificent coloring.
The government of Flushing has approached both the IMF and the
World Bank to help it deal with these difficulties and ensure long
term sustainability for Flushing.
Instructions and Guidance for Roleplay Preparation
Review the basic concepts of international monetary institutions
What is the difference between the IMF and the World Bank?
What types of loans does the IMF provide?
What types of funding does the World Bank provide?
Answer the following questions. Type your answers into this
1) Identify, in one sentence, the interests of each of the following groups or
What do you believe these groups seek to achieve at the meeting? Groups may have
multiple interests. For example, on the one hand, a state may want funding from an
international institution, on the other hand, this funding might include unfavorable
a. The government of Flushing (take into account its other relationships with
other states in NARA)-The interest of the Government of Flushing is to stabilize
its economy, restore sustainable economic growth while at the same time having
good relations with the NARA countries to restore trade ties.
b. States that are trading partners of Flushing- They want economic stability in
Flushing since it is one of their main trading partners to make sure that their
exports do not decline which might, in turn, affect their economy.
c. The IMF- Protecting the stability of the international financial system which is
threatened by Flushing which is a country in severe financial trouble and unable
to pay its international bills.
d. The World Bank- To provide financial and technical assistance to Flushing to
end the poverty the country is experiencing while at the same time promoting
economic growth in the country.
2) For the government of Flushing, what is the best outcome for:
a) Its request and presentation to the IMF?- The best outcome would be to get
financial assistance to overcome the economic crisis it is experiencing. With the
financial assistance from IMF, the government of Flushing will be able to
stabilize its economy, restore sustainable economic growth.
b) Its request and presentation to the World Bank? The best outcome would be
the World Bank Accepting the government's plea and giving them money in the
form of grants to end the poverty the country is experiencing at the moment. The
world bank would fund the government’s proposals to curing the trade deficits
like funding transportation infrastructure projects.
c) What is the worst outcome for each? The worst outcome to its request and
presentation to the IMF would be denial to be given financial help and trade
barriers been put in place thus hurting the country’s economy further in the wake
of Human Rights groups raising a significant uproar over the Flushingian
government’s mass detainment and alleged torture.
The worst outcome from World Bank would be a denial of funding of the
proposed projects to cure the country’s trade deficits. Failure of the World Bank
to fund projects like transportation infrastructure and development of the oil
drilling industry would hurt the economy of Flushing in further.
d) What is Flushing’s best alternative if it fails in either or both requests?
The best alternative if either or both request fail is to seek financial assistance from
other NARA countries in exchange of reduced tariffs. Flushing should also make sure
the cross-border trade becomes cheaper to contribute to improved growth and
For this answer, please provide more detail than simply distinguishing between a
successful request for funding and an unsuccessful request for funding. It might
be helpful to refer to some of the interests you discussed in response to question