Towards an Economic System That Works for People and the Planet

By John Cavanagh, Institute for Policy Studies. Posted December 9, 2008.

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

See more stories tagged with: capitalism, progressive, financial meltdown, economic democracy, ecological sustainability, green investment

Liked this story? Get top stories in your inbox each week from Corporate Accountability and WorkPlace! Sign up now »