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Towards an Economic System That Works for People and the Planet
By John Cavanagh, Institute for Policy Studies
Posted on December 9, 2008, Printed on February 11, 2012
http://www.alternet.org/story/111117/towards_an_economic_system_that_works_for_people_and_the_planet
On November 15, the leaders of 20 nations and the major multilateral financial institutions will gather behind closed doors in Washington to discuss the future of the global economy. Led by outgoing U.S. President George W. Bush, this group includes many of the people, governments, and institutions whose policies are responsible for the current financial meltdown. As such, we believe they are the wrong group to be charged with reworking global economic rules and institutions. The world needs a process that is much more inclusive of other nations and the peoples of those nations. This statement begins to sketch an agenda for change that would resolve the crisis by putting people and the planet first. It starts from the experiences of groups and communities around the world. It speaks to a financial meltdown triggered in the very heart of the globalized capitalist economy that has combined with the growing crises of climate chaos and hunger, and that now reaches into every corner of the planet. This new crisis of predatory and unregulated "casino capitalism" is destroying jobs, lives and livelihoods, while wreaking havoc on currencies and stock markets around the world. It has taken resources from the many, while concentrating wealth in the hands of the few. To date, governments have largely responded by spending more than one trillion dollars bailing out private financial institutions and corporations. Meanwhile, the crushing needs of communities, ordinary citizens and fragile ecosystems have been largely ignored. Now is the time to learn from this experience and from the consequences and devastating impacts of other recent crises, such as the debt crisis unleashed in 1982 and the financial crises in Mexico (1994-95), Asia (1997-98), Russia (1998), and Argentina (1999-2002). History continues to repeat itself. This pattern, culminating in the current global crisis, demonstrates quite definitively that a real transformation of the system is required. New rules and institutions should be created in an open and inclusive process of dialogue. They should be based on a new set of principles to guide economic activity. We offer an overview of those principles and an outline of new rules and institutions. 1. We need a new set of principles to support new national, regional and global financial institutions. The following principles should underpin new rules and institutions: • Economic democracy and equity, including the development of local economies, and community control and protection of water, seeds, genes, air, communal lands, fisheries, and other "commons"; • ecological sustainability and environmental justice, including promoting long term, productive green investment; • the fulfillment, protection, and promotion of all human rights, including the right to food, air, and water, and the rights of workers, small-hold food producers, rural and urban communities, indigenous peoples, women, children, and the elderly; • gender, racial, ethnic and intergenerational justice and equality; • self-determination and sovereignty of peoples and nations; and • non-interference, mutual cooperation, complementarity and solidarity. On the basis of such principles, finance should be aimed at and linked to strengthening national and local real economies to meet the requirement of sustainable and equitable development. And governments should support innovative new regional financial bodies such as the South Bank in South America, which has the potential to serve the needs of those regions more effectively than the IMF and World Bank. Regional emergency funds are also needed to help ensure the food and energy sovereignty of nations. 2. Enough with market fundamentalism: The world doesn't need another "Washington Consensus." The so-called "Washington Consensus" that has preached deregulation, privatization, the over-leveraging of banks, and trade and capital liberalization over the past 30 years has been extremely damaging to workers, communities and the environment. It is discredited and should be officially abandoned. It should not be replaced with any new "one-size-fits-all" dogma. Rich world leaders and institutions not only promoted the frenzy of deregulation and privatization in their own countries, but pushed it on developing countries through aid and loan conditionality. As they mobilize trillions of dollars to clean up the mess at home, they must do their fair share to redress the devastating impacts of their mistakes on the South. This should include cancellation of all unsustainable and illegitimate debts claimed from countries of the South and restitution and restoration of the social and ecological debts owed to peoples of the South. These resources, together with the rapid and full disbursement of previously scheduled aid increases, should be provided free of macroeconomic and structural conditions. The right of all countries to define their own paths toward sustainable and healthy economies must be respected. The onerous conditions attached to existing aid, loan, and debt-reduction programs should be removed before they do further damage. 3. Curb the power of the IMF, World Bank, and WTO: The present crisis has again demonstrated how we are all impacted by three powerful global institutions whose policies have been instrumental in its creation: the IMF, World Bank, and the WTO. Nonetheless, much of the current debate among financial institutions and governments involves giving them enhanced roles. The WTO, for example, continues to press for further deregulation and privatization of the financial sector, principally through its General Agreement on Trade in Services. For individual countries and the global community to adopt critical new regulations of the financial sector, not only should the WTO's current Doha Round be suspended, but also existing WTO rules constraining regulation of financial services should be rolled back. Likewise, efforts by the IMF and World Bank to expand their influence as a result of the financial, climate, energy and food crises should be rejected. Furthermore, global, regional and national economic governance institutions must be democratic and accountable to the women and men they are supposed to serve. 4. Regulate the global economy effectively: Governments should take immediate action to develop a new international regulatory architecture with democratic checks and balances that is aimed at promoting the interests of workers, small-hold farmers, consumers, and the environment and preventing future financial crises; the United Nations should play a central role in its development. This should cover not just banks but also the parallel and under-regulated financial system, including hedge funds and private equity funds. Some first steps should include regulating derivatives, stopping speculation on staple food commodities, applying stricter international capital reserve requirements, a speculation tax on international transactions, closing tax havens, and stronger transparency rules. Governments will also need to renegotiate the dozens of free-trade agreements and bilateral investment treaties that currently ban governments from placing controls on capital flows and applying other sensible conditions to foreign investment and other financial transactions. Such steps are possible and many more will be needed to build a truly just global economic system that works for people everywhere, local communities, and the environment. This is the change that the world needs and for which we will continue to struggle. Signatories (526 total: 211 organizations from 52 countries and 315 individuals): International and Regional Organizations (10) 1. ActionAid International, Johannesburg, South 2. Africa 3. Africa Jubilee South 4. CADTM International Network (Com. para la Anulación de la Deuda) 5. Comité Ejecutivo Regional Asamblea de los Pueblos del Caribe 6. European Solidarity Towards Equal Participation (EUROSTEP) 7. Jubilee South 8. JUBILEO SUR / AMÉRICAS 9. Social Watch 10. South Asia Alliance for Poverty Eradication (SAAPE) African Organizations (10) 11. EHRCEPA (Ethiopian HHRR and Civic Education..), Ethiopia 12. African Women's Development and Communication Network, Kenya 13. Kenya Adult Learners' Association, Kenya 14. Kenya Debt Relief Network - KENDREN, Kenya 15. Labour, Health and Human Rights Development Center, Nigeria 16. Centre for Civil Society Economic Justice Project, South Africa 17. Network of Ugandan Researchers and Research Users (NURRU), Uganda 18. Daughters of Mumbi Global Resource Center, Kenya 19. African Forum on Alternatives, Senegal 20. ARCADE, Senegal Asia-Pacific Organizations (37) 21. Australian Fair Trade and Investment Network (AFTINET), Australia 22. Foundation for National Renewal, Australia 23. Jubilee Australia, Australia 24. BanglaPraxis, Bangladesh 25. Equity and Justice Working Group (EquityBd), Bangladesh 26. Unnayan Dhara Trust, Bangladesh 27. Humanist Association of Hong Kong, China 28. Public Services Committee, HKCTU, China 29. All India Bank Emp Association (AIBEA), India 30. Alternatives Asia, India 31. Bharatiya Krishak Samaj, India 32. IT For Change, India 33. Public Agenda, India 34. Anti Debt Coalition (KAU), Indonesia 35. Cakrawala Timur, Indonesia 36. Cindelaras paritrana Foundation, Indonesia 37. IMPARSIAL - Indonesian Human Rights Monitor, Indonesia 38. International NGO Forum on Indonesian Development (INFID), Indonesia 39. LSM Bismi, Indonesia 40. Jubilee Kansai Network, Japan 41. Himalayan & Peninsular Hydro-Ecological Network (HYPHEN), Nepal 42. Least Developed Countries Watch (LDC Watch), Nepal 43. Nepal Policy Institute - NPI, Nepal 44. Rural Reconstruction Nepal (RRN), Nepal 45. Water & Energy Users' Federation-Nepal (WAFED, Nepal 46. creed, Pakistan 47. Alliance of Progressive Labor (APL), Philippines 48. Foundation for Media Alternatives, Philippines 49. Kalikasan People's Network for the Environment, Philippines 50. Philippine Indigenous People's Links (PIPLINKS), Philippines 51. Philippine Rural Reconstruction Movement - PRRM, Philippines 52. Social Watch Philippines 53. Women's March Against Poverty and Globalization (WELGA!), Philippines 54. Movement for Land and Agricultural Reform ( MONLAR), Sri Lanka 55. Focus on the Global South, Thailand 56. Local Talk Project, Thailand 57. Social Agenda Working Group, Thailand 58. Center for Encounters and Active Non-Violence, Austria European Organizations (68) 59. Attac Austria, Austria 60. ECA Watch Austria, Austria 61. 11.11.11- Coalition of the Flemish North-South Movement, Belgium 62. European Network on Debt and Development (EURODAD), Belgium 63. Bulgarian Gender Research Foundation, Bulgaria 64. Pancyprian Public Employees Trade Union - PASYDY, Cyprus 65. Finnish NGDO platform to the EU, Finland 66. Attac France, France 67. Les Amis de la Terre, France 68. Evangelischer Entwicklungsdienst (EED), Germany 69. Global Policy Forum Europe, Germany 70. terre des hommes Germany, Germany 71. The Hunger Project-Germany, Germany 72. URGEWALD, Germany 73. Attac-Hellas, Greece 74. Greek Forum of Migrants, Greece 75. One Earth, Greece 76. Anthropolis, Hungary 77. Debt and Development Coalition Ireland, Ireland 78. Kimmage Development Studies Center, Ireland 79. ARCI, Italy 80. Campagna per la Riforma della Banca Mondiale, Italy 81. Campagna per la riforma della Banca mondiale (CRBM), Italy 82. Fair, Italy 83. Federazione Italiana Metalmeccanici FIM-CISL, Italy 84. Transform! Italia, Italy 85. Kopin (Koperazzjoni Internazzjonali) Malta, Malta 86. Tax Justice NL, Netherlands 87. Transnational Institute (TNI), Netherlands 88. SOBREVIVENCIA, Amigos de la Tierra Paraguay, Paraguay 89. Network of East-West Women, NEWW (Polska), Poland 90. Association for the Development of the Romanian Social Forum, Romania 91. Civil Society Development Foundation, Romania 92. Romanian Social Forum, Romania 93. ACSUR - Las Segovias, Spain 94. Área de Justicia y Solidaridad de CONFER, Spain 95. Asamblea verde, Spain 96. Asociación Ecologista Solidaria"Kima Berdea", Spain 97. Asociación Nexos, Spain 98. Associacio Audiovisual Debitas, Spain 99. Attac España, Spain 100. Attac Galicia, Spain 101. CEPAC (Asoc. d'Educació en DDHH i de Prevenció de Conflict), Spain 102. Comitè de Solidaritat amb els Pobles Indigenes d´ Amèrica, Spain 103. Comunidad Carmelitas de Vedruna, Spain 104. ECO DESARROLLO, Spain 105. Ecologistas en Acción, Spain 106. Fed. Humanista Centro de las Culturas, Spain 107. Fondo de Solidaridad, Spain 108. Fundació Quepo, Spain 109. HUACAL (Solidaritat amb el Salvador), Spain 110. Icaria Editorial, Spain 111. Jesús Santamaría, Spain 112. Mundo sin Guerras (Marcha Mundial por la Paz y la No Violencia), Spain 113. Observatori del Deute en la Globalització, Spain 114. Periódico digital El Guanche, Spain 115. Plataforma 2015 y más, Spain 116. unaymedia, Spain 117. Alliance Sud, Switzerland 118. Terre des Hommes International Federation, Switzerland 119. Bretton Woods Project, United Kingdom 120. Fahamu - Networks for Social Justice, United Kingdom 121. Foundation for Gaia, United Kingdom 122. Jubilee Debt Campaign, United Kingdom 123. Jubilee Scotland, United Kingdom 124. MEDACT, United Kingdom 125. War on Want, United Kingdom 126. World Development Movement, United Kingdom Latin America and Caribbean Organizations (29) 127. Ecoportal.Net, Argentina 128. FOCO - Foro Ciudadano de Participación por la Justicia y los Der, Argentina 129. FUNDACION DA VINCI, Argentina 130. Centro de Estudios para el Desarrollo Laboral y Agrario - CEDLA, Bolivia 131. Centro de Mujeres Aymaras Candelaria, Bolivia 132. Fundación Solón, Bolivia 133. Radio Emisora Saywani, Bolivia 134. Red de Comunicaciones Apachita, Bolivia 135. IBASE, Brazil 136. Asoc. Inmigrantes por la Integración Latinoamericana (Apila), Chile 137. Centro de Estudios para el Desarrollo de la Mujer (CEDEM), Chile 138. Chile Sustentable, Chile 139. Asoc. De Fomento De Integracion De Las Negritudes, Colombia 140. Instituto Latinoamericano Servicios Legales Alternativos (ILSA), Colombia 141. Instituto FRONESIS, Ecuador 142. SERPAJ Ecuador, Ecuador 143. PAPDA, Haiti 144. Colectivo Parlamentario Partido Unificaciòn Democratica, Honduras 145. Americas Policy Program, Mexico 146. CACTUS-Oaxaca, Mexico 147. México nación Multicultural -UNAM- Oaxaca, Mexico 148. Federacion Nacional de Trabajadores del Agua Potable del Peru, Peru 149. Comité de apoyo al Llamado Mundial de Acción contra la Pobreza, Perú 150. Food and Water Watch Latin America, Uruguay 151. ICAE, Uruguay 152. Instituto del Tercer Mundo - ITeM, Uruguay 153. International Council for Adult Education - ICAE, Uruguay 154. REDES - Amigos de la Tierra Uruguay, Uruguay 155. Asamblea Popular Revolucionaria de Caracas (APR), Venezuela Middle East/North African Organizations (2) 156. El Amel Association for Social Development, Algeria 157. Forum des Alternatives Maroc, Morocco North American Organizations (54) 158. African Reform Group, Canada 159. ATTAC-Québec, Canada 160. centre des femmes, Canada 161. Centre justice et foi, Canada 162. Common Frontiers-Canada, Canada 163. Femmes Entre-Elles, Canada 164. Halifax Initiative Coalition, Canada 165. Sudanese Calgarian Community Centre, Canada 166. TROVEP Estrie, Canada 167. Africa Action, United States 168. African American Environmentalist Association (AAEA), United States 169. Alliance for Democracy, United States 170. Anglican Consultative Council, United States 171. Bangladesh Development Research Center (BDRC), United States 172. Bay Area Labor Committee for Peace & Justice, United States 173. Center of Concern (COC), United States 174. Colombians For Sovereignty, ASOCOL, United States 175. Columban Justice, Peace and Integrity of Creation Office, United States 176. Committee in Solidarity with the People of El Salvador, United States 177. Congregations of St. Joseph, United States 178. Democratic Socialists of America, United States 179. Essential Action, United States 180. Food First, United States 181. Foreign Policy In Focus, United States 182. Friends of the Earth-US, United States 183. Gender Action, United States 184. Global Policy Forum, United States 185. Hal F. Keene, United States 186. Institute for Agriculture and Trade Policy, United States 187. Institute for Policy Studies, Global Economy Project, United States 188. International Accountability Project, United States 189. International Forum on Globalization, United States 190. International Labor Rights Forum, United States 191. International Women's Anthropology Conference, United States 192. Jubilee Montana Network, United States 193. Jubilee USA Network, United States 194. Marin Interfaith Task Force on the Americas, United States 195. Maryknoll Office for Global Concerns, United States 196. Missionary Oblates, United States 197. National Family Farm Coalition, United States 198. New Rules for Global Finance Coalition, United States 199. Northwest Coalition for Responsible Investment, United States 200. People-Centered Development Forum, United States 201. Planning Alternatives for Change LLC, United States 202. Quixote Center, United States 203. Sisters of Charity of Saint Elizabeth, United States 204. Sisters of St. Joseph, United States 205. Transafrica Forum, United States 206. Tri-State Coalition for Responsible Investment, United States 207. United Church of Christ Network for Environmental & Economic Res, United States 208. United Methodist Church, General Board of Church and Society, United States 209. USAction, United States 210. Wheaton Franciscans, United States 211. Witness for Peace, United States Individual Signatories (315): For a full list, see: http://www.choike.org/bw2/listado_conf.php
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