Small and Medium Enterprises at the Core of Global Economic Recovery

written by Grace Lituba, Journalist, LIMUN 2025

As the United Nations Development Programme (UNDP) committee dives into discussions on the role of Small and Medium Enterprises (SMEs) in global economic recovery, debates have taken a surprisingly intense turn. While the first day started off in a calm and diplomatic atmosphere, things quickly escalated as national interests clashed. 

“On the first day, everyone was very calm, very demure. They’re all lovely,” shared the chairs. “But yesterday, the fights began - the United Kingdom and Russia started arguing during the consultation of the whole.” 

Amid the discussions, a controversial alliance between Russia and the United States attempted to stage a coup in committee proceedings. However, this plan was swiftly shut down, leaving both delegations scrambling to secure sponsorship on the main working paper. 

Funding, sustainability, and policy frameworks 

The committee has focused on three major aspects of economic recovery through SMEs: First financing, they asked themselves which countries should contribute the most, and who will ultimately finance SMEs in this recovery effort? Then, sustainability: how should economic recovery align with sustainable practices, and which initiatives should take priority? Finally, frameworks: which nations have already implemented successful policies, and which models should serve as global benchmarks? Given the diversity of countries represented, discussions have been highly controversial, with delegates fiercely defending their economic priorities. The chairs noted: 

“This is a really good beginner committee! In other committees, you usually have more or less five dominant speakers, but here, at least half the room is actively shaping the debate. It makes choosing awards really difficult.” 

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An engaged committee 

Many countries such as Luxembourg and Senegal made proposals that gained traction. The “LUX Proposal” realised by the delegation of Luxembourg is a great example of measures brought by countries during this simulation. It offered a three-pillar approach to support SMEs: financial access, digitalisation and sustainability. 

Despite broad support, negotiations remain tense. Some countries, including China, have expressed concerns over sponsorship and funding responsibilities. Canada, on the other hand, acknowledged the complexity of the decision-making process, stating: 

“A lot of people have contributed to the position paper and the solutions - it’s really hard to decide.” 

"I think we are all on the same page now, but maybe some countries are not totally considered. We are giving our best to actually include everybody." added Luxembourg. 

Diplomacy in action: progress and frustrations 

As negotiations continue, some delegates have voiced their frustration over the slow pace of decision-making. One newcomer to MUN shared his perspective: 

“I love this conference, but sometimes people share the same idea thirty times before we finally find common ground - while we only have one paper.” 

This underscores the challenges of multilateral diplomacy - finding consensus takes time, even when everyone shares a common goal. 

What’s Next? 

With heated debates ongoing, the question remains: Will the Russian federation and the United States be allowed to sponsor the main working paper after their failed coup attempt? 

As the committee approaches its final resolutions, tensions will likely continue to rise, but one thing is certain - this simulation can be 

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considered as a reflection of international diplomacy, where negotiation, compromise, and strategy play a decisive role in shaping the outcome.