ECOSOC_SOUTH AFRICA _CHAN LI SHI

Topic A: Regulating Cryptocurrencies and Non-Fungible Tokens (NFTs)

South Africa recognizes the potential and capabilities of cryptocurrency 1 as a revolutionary

currency due to the transparency and security of transactions that utilize block chain ledger
technology, decentralization which allows the users to retain authority over their transactions
and the efficiency of said transactions.

South Africa acknowledges the potential flaws and downsides of the upsurge in
cryptocurrency popularity, namely in these 2 domains: environmental impact and potential
platform for criminal activity and fully intends to introduce policies to mitigate such flaws in
ways specific to each problem as such:

1. Non-eco-friendly energy usage

-Overcoming excessive reliance on the fossil fuel and non-renewable fuel industry by
subsidizing the development of renewable energy sources and investing in innovation
-Encourages crypto-asset mining/generating stakeholders to utilize renewable energy
through incentives such as tax levies or carbon taxes based on carbon emissions
-Collaboration with UNEP to push for change in crypto mining
2. Medium for criminal activity due to its anonymity
-Providing law enforcement the necessary powers to seize and recover crypto assets
-Introducing a trustworthy authority into the generation of crypto-units that the population
rely on, namely the government to instil confidence and stability
-Implementing a central authority that will keep records of transactions in its database to
ensure no offender escapes unscathed to curb unlawful actions
-Restricting the amount of crypto-assets that can be owned by an individual based on past
criminal activity
3. Malicious intent from fake “cryptocurrencies” that seek to profit off unaware audiences
under the guise of investment
-Obligating all legitimate cryptocurrency to be registered with the government
-Raising awareness on how cryptocurrency works to increase the understanding of public
in the form of social media campaigns, education in schools

1
digital currency which utilizes block chain technology to facilitate transactions between user
in a decentralized way
To be concise, both the South African government and majority of its population embraces
the relevance of cryptocurrency in the future and is fully prepared to face any hurdles in
unison as we believe that cryptocurrency will revolutionize the way we handle transactions
between individuals and ultimately place more power in the people it belongs to.

Topic B: The Impact on World Tourism in the Covid-19 Era

During the COVID-19 pandemic, many countries and regions like Malaysia, Singapore, Italy
and more imposed quarantines, entry bans, or other travel restrictions for citizens of or recent
travellers to the most affected areas. Some countries and regions such as China imposed
global restrictions that apply to all foreign countries and territories, or prevent their own
citizens from travelling overseas in a united attempt to reduce the exponential spread of the
Covid-19 virus to prevent the healthcare industry from collapsing.

Due to such travel restrictions, Coronavirus (COVID-19) has negatively affected the
tourism sector substantially, causing economic uncertainty and stagnancy in the tourism
industry for a prolonged period of time since tourists can no longer travel to visit new places
and attractions. Overall, the sector is operating at between 30-40% capacity in comparison to
2019. Domestic travel is leading the sector recovery as leisure tourism increased in December
2021, corporate and government travel was beginning to increase in February 2022, and
events and conferencing need to be boosted. The tourism sector lost 470 000 jobs due to
COVID-19 with only 37% of employees receiving 100% of their salaries in February 2022.
The main impacts on specific industries are as such:

1. Local and small businesses

-Small businesses that are unable to sustain heavy losses will be forced into
bankruptcy due to little revenue
-This is detrimental for sectors that spread cultures and heritages like traditional crafts
that depend on international tourists

2. Private attractions

-Forced to lay off workers to decrease losses

-Stagnant revenue in many years could lead to potential bankruptcy

The impacts of a negatively affected tourism industry are as such:

1. Global economy

In countries wherein the tourism industry accounts for a substantial amount of

the country’s revenue, this has devastated the economy such as African countries.
Tourism is one of the world’s major economic sector, specifically the third-largest
export category (after fuels and chemicals) and in 2019 accounted for 7% of global
trade. Export revenues from tourism could fall by $910 billion to $1.2 trillion in 2020.
Tourism supports one in 10 jobs and provides livelihoods for many millions more in
both developing and developed economies.
With the fall of such a prominent industry, the economy also stagnates as
people both domestic and international movement is controlled. The decrease in
revenue for specific countries has caused economic crisis as value in money drops due
to the weakened and immobile economy.
2. Social welfare of individuals

Tourism supports one in 10 jobs and provides livelihoods for many millions more in
both developing and developed economies. There are as many as 100 million direct tourism
jobs in addition to sectors associated with tourism such as labour-intensive accommodation
and food services industries that provide employment for 144 million workers worldwide.
When the industry is forced to stop, people lose jobs that are directly related to tourism such
as tour guides, attraction workers etc. which causes a spike in unemployment. To exacerbate
the problem, finding a job in the pandemic proves to be nearly impossible as most industries
are forced to stop, posing a risk for the social security and welfare for the major population.

Poverty rates increase as breadwinners of families lose their jobs and entire families
are forced into an economic crisis amidst these difficult times, further harming the economy
due to a decrease in money flow. With increasing food prices and higher demand for
essentials, individuals at the lower end of the hierarchy face tremendous hurdles in their
livelihood.

In post-pandemic period, it is of utmost importance to transition into a tourism-recovery

period to revitalize this industry that still holds weight as one of the best means of
international integration.