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Rutgers Model United Nations - IDIA

Rutgers Model United Nations - IDIA

Rutgers

Rutgers Model United Nations 13 developing states see it as a means to boost foreign investment and their economic wellbeing. Many scholars, as well as international organizations such as the UN, acknowledge that the uncontrolled growth of the industry can create serious social and environmental problems but also believe that negative effects can be controlled and ultimately reduced in order for developing nations to benefit from the industries unprecedented growth potential. 28 Additionally, many developing nations are still feeling the effects of the structural adjustment programmes imposed by the World Bank (WB) and the International Monetary Fund (IMF) in the late 1970s. The IMF-WB program included tourism as part of the multilateral financial package for countries in distress, which gives it even greater importance as a serious development strategy for the third world. The SAPs required financially struggling nations to integrate into the global economy, liberalize their economies and financial sector, and to shift from an agriculture-based economy to a manufacturing and service industry based economy. 29 The preconditions were meant to link lesser developed nations to the world economy by opening up local money markets to foreign investments and multinational corporations, subsequently eliminating subsidies and protection to local industry. The IMF-WB prescriptions to the debt burden in third world states has, however, proven ineffective to integrate and open economies and therefore, the World Trade Organization has taken further methods to fully liberalize the world economy. The travel and tourism industry serves to illustrate the impact of TNCs and their growing global affluence. In recent years this industry has steadily influenced world governments to liberalize trade and investment in services and goods in order to benefit from deregulation. The most important international agreement that is connected to tourism is the General Agreement on Trade in Services (GATS). GATS was signed in 27 Ibid. 28 Paul Gonsalves, “Gloabalisation and Tourism: Deadly mix for Indigenous Peoples” Third World Resurgence No. 103, March 1999 http://www.twnside.org.sg/title/chavez-cn.htm 29 Anup Shah, “Structural Adjustment-A major cause of poverty”, Global Issues, July 2, 2007 http://www.globalissues.org/TradeRelated/SAP.asp

Rutgers Model United Nations 14 Morocco in April of 1994 and effectively set up legal and operation framework to gradually integrate big tourist and travel TNCs to invest in the local tourism industries of third world nations. GATS helped to abolish restriction on foreign ownership and gave foreign companies the same benefits as local companies with many added bonuses. In conjunction with new free trade and adjustment policies, local economies are suffering because much of the revenue in these nations are going back out to foreign investors and companies. 30 Economic globalization is helping these countries just as much as it harms them. All of the possible causes of tourism reflect the need of the world community to address them completely. In an ever globalizing world, environmental, economic, social, and cultural influences must be respected. As sustainable tourism looks to the future and the impacts that citizens of the globe have on the earth today it is paramount to any discussion of sustaining tourism that acknowledgements are made to address both the root and tangential causes. Projections and Implications Achieving sustainable development is one of the key issues facing our global society, and sustainable tourism is only a small part. It is however a very important part. The need to balance economic, ecological, and social objectives in tourism is critical to the needs of both the industry and the world. Tourism has the ability to support or destroy places, cultures, and communities around the globe. It is a fact that global tourism has already left a trail of environmental and social devastation. If tourism is to continue as an economically viable industry it must seek to become both ecologically and socially responsible. The UNWTO contends that finding solutions to ensure the sustainability of tourism for generations to come depends upon the informed participation of all relevant stakeholders, strong political leadership, and the continuous monitoring of ecological, socio-cultural, and economic impacts. The organization also believes that “sustainable 30 Paul Gonsalves, “Gloabalisation and Tourism: Deadly mix for Indigenous Peoples” Third World Resurgence No. 103, March 1999 http://www.twnside.org.sg/title/chavez-cn.htm

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