Rich-Poor
Gap
How can ethical economies be
encouraged to help reduce the gap between rich nd poor? [Challenge
7]
-- Suggested Actions --
7.1. NGOs with support from government should
expand microcredit mechanisms with banks, other NGOs, and international
financial institutions to accelerate development of small-scale businesses
and their access to land, technology, and training with special attention
to women.
The vast majority of microcredit needs are still not being met. Successful
payers like the Grameen Bank in Bangladesh are now diversifying. Grameen
Phone makes cellular telephones available to the poor and Grameen Energy
makes photovoltaic cells available to the poor. This is a good example
of ethical capitalism: 2.2 million loans have been made and women borrowers
own 92% of the bank; the government of Bangladesh owns the remaining 8%.
We have taken innovative approaches towards poverty eradication putting the people at the centre stage. The success of micro credit programmes has been. phenomenal in Bangladesh along with specific advancement in the areas of primary education, health care, population programme and women's empowerment. (Her Excellency Sheikh Hasina, Prime Minister of the People's Republic of Bangladesh)
Microcredit lending agencies need more funding to reach out to more poor people. The Grameen Bank has been searching for ways to secure portions of its portfolio and sell the securities on Wall Street. If successful, this could be a new way of capitalizing microcredit practice. In order to pass rigorous credit analysis to tap into the capital market, microcredit lending institutions need to be commercially viable. The financial sector needs to pay more attention to developing countries' need for capital. The Institute of International Finance estimates that net capital inflows to developing countries was just over $150 billion in 2000, less than half the 1997 level of about $315 billion. Capital and market access are crucial to help the poor climb out of poverty.
The 1997 Microcredit Summit’s goal of reaching 100 million of the poorest families with financial and business services by 2005 has helped to bring more attention and understanding of the importance of this issue <see http://www.microcreditsummit.org>.
And promote exchange of best practices among microcredit managers…. This is very practical as an effective micro policy, but poorer nations must establish the macro policy to accelerate economic growth as a top priority.... Add new venture capital systems (with auditing systems outside the country to avoid political manipulation) that can accept longer payback periods and smaller returns than the conventional venture capital. Add incubators for small business.
The World Bank and the regional banks should increase their activities in microcredit and involve microbusiness entrepreneurs in their programs.... Before new microcredit is provided on a wholesale basis to countries, conditions should be attached that improve democratic governance, training, and education.... Expand using local rather than international financial institutions if possible.... Taiwan reached economic success through small business, but Korea transformed its economy through larger enterprises.
Since the need for food increases with population and income, agricultural
credit must increase proportionally so that farmers can buy fertilizer
and/or other inputs. We are clearly going to need more food; just think
what would happen if everybody in China simply increased their food intake
by 100 calories.... Technical assistance in agriculture, processing industries,
and management training must go along with credit.... Link technology with
financial assistance.
7.2 Replace welfare attitude with entrepreneurial
spirit.
A well educated population, fair distribution of income, a social safety
system encouraging enterprise and mobility - those are keys to success
in the New Economy. ---Goran Persson, Prime Minister of Sweden.
Internet access in developing countries is beginning to stimulate entrepreneurial
spirit. This change in needed both among the poor and government policy
makers. Nevertheless, there will still be some need for welfare for
those who cannot take care of hemselves... Incentives are needed. It is
not possible to immediately make this change in the developing world that
has little entrepreneurial culture; hence, the public should be supported
during the transition.
7.3 Governments and international organizations
should create and implement a “Global Partnership for Development”, as
a new kind of global “Marshall Plan” with collaboration between high-income
countries and those with less industrial and entrepreneurial cultures.
[A study led by the Central European Node of the Millennium Project
has taken on the responsibility to study approaches to create this action.
See chapter 5 on Partnership for Sustainable Development]
This concept is a new kind of plan because it is a partnership. The way it is written here is good and can work.... This should be the new role for reorganized Bretton Woods Organizations in cooperation with the Organization for Economic Cooperation and Development (OECD) and UN organizations.... To be powerful, the plan has to be based on more than humanitarian instincts. This effort should be seen by poorer countries to be in their interests, yielding increased stability and growing markets.... Foreign aid has been discredited as an instrument of the Cold War, and as donor governments are cutting domestic spending, how can they increase foreign spending? Increase international trade and investment instead.... International measures should support national policy and action for full employment, raise skill and education levels, and prevent the marginalization of the least developed countries.... Include a new social contract between business and government.
The previous Marshall Plan worked because Germany and Japan had an entrepreneurial and industrial culture that could manage the inflow of capital; poorer regions in Africa do not have this culture.... The plan has to be flexible for different conditions in different countries, must focus on the poor majority, and should manage boundless appetite versus restricted resources. The plan should be star by establishing of a “brain center,” something like a Club of Rome. Then the plan should be adopted by the relevant implementing organizations, such as the UN, NGOs, etc.
International resources should be allocated by the plan, and a mechanism
to distribute funds and regulate implementation needs to be established
to keep organized crime and monopolies from capturing these resources....
UNDP should play a key role.... Since the rich have more to lose than the
poor if the gap leads to instability and migrations to richer areas, the
rich should see this plan as insurance. Both the rich and the poor have
to change their minds to make this work: the rich have to be serious about
investing in the development of culture in poorer areas and the poor have
to be willing to change. International organizations should be active in
preparing the intellectual background for implementation of this global
plan.... Historically, the Marshall Plan was only for a couple of countries
and targeted to limited problems; it was not conceived as a global plan.
This action would be more successful if it targeted a limited number of
countries.
7.4 Scrutinize and encourage improvement of
ethical standards in business by facilitating global dialogues, creating
incentives for private sector investment into the common good (environmental
protection, education, etc.) and conducting studies on ethics including
the ethical implications of unbridled capitalism.
Transparency International is trying to do this. In some cases, a solid
campaign of public education can be more effective than laws, e.g., cigarette
smoking public education in the U.S. was very successful.... Extend results
to the wider educational systems.
In a knowledge-based society ethics will play a new role in business relationships. It is very important to analyze the evolution of ethics and there should be a global study with input from scientists of different nations, religions, and cultures. This exploration should be coordinated by UNESCO.... Ethical standards cannot be developed by dialogues and studies along; public pressure can help to build them.... Growing stakeholder power will do this, which will be more effective than a regime imposed by government…. Incentives form the final stage; education is the first stage.... Balance trade-offs between incentives and sanctions.
Socially responsible investing in the USA alone now stands at $1.3 trillion
of assets managed with “clean”, “green” and often ethical criteria. Many
such funds have out-performed the Standard & Poors Index since 1990.
7.5 Governments of lower income countries should
include entrepreneurial skills and business math in their public education
curricula, with some assistance from NGOs and international organizations.
Much training of entrepreneurs has been done, but we have not put the
skills in the public curriculum yet; we will think about doing that. This
is a good idea and would be another step forward.... Government should
support this but not lead; government leadership comes first by agreeing
to increase economic growth. In Latin American and the Caribbean, growth
should average 6%, but it is only averaging 3%, which is insufficient progress
to ensure a more stable future and to reduce poverty in a sustainable manner.
Economic growth by entrepreneurs creates jobs.... Include technological
change as part of this.... Math skills should also be taught to small business
entrepreneurs and middle management.... Middle- and high-income countries
need this too. Include interaction/communications between rich and poor,
languages, and global ethics in the curriculum.... Some countries are already
doing this.
7.6 Governments, UN organizations, NGOs, and
telecommunications corporations should collaborate to bring low-cost computer
communications technologies to poorer countries.
The World Bank has finally taken this on as a key to development policy.
NGO’s like VITA and Greenstar are creating satellite transceivers run by
solar panels to connect rural areas to Internet for development information
and Internet-based businesses without being connected to telephone and
electricity grids.
While my son sees information technology as "the way to go," it is clearly the way to communicate; it is a significant means to enhance the education of all our people; and it enables them to be a participant in what is happening in the world. This, in part, is also the reason for our support of the SIDSNET. In particular, I welcome the offer of Japan to establish a dedicated IT programme in Okinawa and appreciate the resources they have earmarked for that purpose. The offer and the mechanics for its operation is deserving of our thoughtful consideration. --- His Royal Highness Prince Ulukalala-Lavaka- Ata, Honourable Prime Minister of The Kingdom of Tonga.
Governments and UN organizations should accelerate programs that arrange for the provision of low-cost computer communications equipment and training in schools, libraries, business, and hospitals in low-income areas.
UNDP’s informatics programs in Africa teach people how to use the Internet. Provision of low-cost tools is the next step. Encourage the private sector to help also.... Make sure that the equipment gets into schools and that more is spent for education.
Telecommunications corporations, in collaboration with NGOs, should create low-cost, hand-held computers with direct satellite access for low-income regions to access educational software and telephony, with elementary literacy as the first priority.
It will spread rapidly and cut across systems, like the hand calculator
did.... Make sure all schools can get access, not just the poor ones....
Create a mentoring system to make it work.... This action is necessary
for a healthy global economy.... Make sure it is not just for the elite.
7.7 Encourage employee ownership, e.g. Employee
Stock Ownership Plan (ESOP) that makes corporate shares available to employees.
It is a necessary action, because the role of employees is changing.
This idea is realized best of all in Japan and it will be helpful to study
their experience.... This will happen when there is a change in stakeholdership.
7.8 Governments and development organizations
should create toll-free numbers and computer networks for people from low-income
countries who now live in high-income countries to volunteer some time
to participate in the development of their original country via telecommunications.
The UN Secretary General in Millennium Report called for such high-tech
volunteers and UNDP and the UN Volunteers is beginning to create this action.
This could be the next generation of our work.... Good if very low-cost
equipment is available to the developing country.... A very good idea to
counter the “brain drain”.... Make it clearer that this is not simply job-matching
to get people to come home.... By 2020 there will be around 4 billion Netizens....
Many of these could become telecitizens.... When national boundaries disappear,
can personal linkages become stronger?
7.9 Allow employee access to their own company’s
Intranet to see elements of the planning system, work flow, production
indicators, etc. so that they can more intelligently participate in the
business.
Transparency is very important. Fairness and free flow of information
go together.... Participatory management has to be learnt and practiced.
7.10 Governments, with assistance from UN organizations,
should encourage third world countries to establish policies that limit
their “brain drain.”
Brain drain from China has bottomed out and may be reversing.
As global trends in democratization and opening of economic systems continue
the brain drain could diminish enough that the return of educated 3W citizens
could become a new force to help close the development gap.
With global communications, advanced work like software development
in India can be imported to create work that is worth doing and attractive....
Action 7.5 can help.... UNDP’s governance programs give financial incentives
to reverse the brain drain.... This requires political changes in Africa....
Handle with extreme caution.... Corporations and NGOs can help.... This
is not a policy; it is an economic issue.... Include capital flight....
Brain drain is an old and weak concept; social mobility is important because
it gives people the flexibility and freedom to come and go in the new global
economy.
7.11 Governments, with advice from international
organizations, should permit the IMF to issue new Special Drawing Rights
(SDRs) to reduce developing countries debt.
The IMF has been working on this for the past 3 years. It will happen,
but most new SDRs will be given to the new member countries emerging from
centrally planned economies.... Poor countries are not catching up, and
some are slipping back, because they are failing to make investments in
human capital that can raise productivity and enable the work force to
adopt new technology. In many countries they lack resources - either domestic
savings or external finance. And some have been deprived of resources by
onerous debt repayments or capital flight. In Sub-Saharan Africa between
1990 and 1993, debt servicing cost $13 billion annually; at the end of
1998 total external debt was considerably more than the region’s combined
expenditures on education and health.
UNDP has supported this view, but the new IMF-World Bank facility is not enough. This should be considered more seriously.... This is much better than simply declaring bankruptcy or forgiving debt.... Need more details about this, but it seems it would make the IMF the new central bank…. There are already widespread criticism of the IMF and persistent calling for its overhaul or even abolishment.
Yes, but can be a moral hazard. If you know you will be bailed
out, then you will have risky behavior.... Maybe the WTO should develop
some system of new ethical norms of world trade.... Almost impossible because
this is driven by developed countries.
7.12 International organizations and governments
should establish means by which deeply indebted countries could declare
bankruptcy or debt cancellation.
In September 2000, UN Secretary-General Kofi Annan was presented with
a petition bearing an unprecedented 22 million signatures from 155 countries
calling for the cancellation of debts of the world's poorest nations. The
petition was presented by Nigerian President Olusegun Obasanjo, chair of
the Group of 77 developing nations.
The UK organization Drop the Debt estimates that 52 countries in urgent need of debt relief still have $376 billion in debts outstanding (London Independent, 3 Dec).
The Jubilee 2000 Coalition, which is working for debt cancellation, reports that every day over $60 million is transferred from the poorest to the richest countries in debt repayments. "Debt creates a human catastrophe that is getting worse - 3 million children have already died as a result of the debt crisis in the new millennium," said a Jubilee 2000 report released during the G-7 Okinawa summit in July 2000.
“Forgiving dept alone doesn’t save the problem. Something else is needed, a new project, like Marshal Plan on globalization.” Former Russian President Mikhail Sergeyevich Gorbachev at a State of the World Forum meeting on a proposed “Commission on Globalization.” April 2001.
Of the $100 billion dollars in debt cancellation promised at the Group of Seven Summit in Cologne last year, only $17 billion in commitments have been made so far.
The United Kingdom will immediately forgive all debt payments from the world's 20 poorest countries, British Chancellor of the Exchequer Gordon Brown announced during a Jubilee 2000 "Drop the Debt" rally. Interest payments from another 21 countries will be put into a trust fund until those countries become eligible for debt relief. (Associated Press/The Times of India, 3 Dec). Britain's program will forgive nearly $1.5 billion in debt. The 41 countries covered by the announcement include Angola; Benin; Bolivia; Burkina Faso; Burundi; Cameroon; Central African Republic; Chad; Democratic Republic of Congo; Republic of Congo; Cote d'Ivoire; Ethiopia; Gambia; Ghana; Guinea; Guinea-Bissau; Guyana; Honduras; Kenya; Laos; Liberia; Madagascar; Malawi; Mali; Mauritania; Mozambique; Myanmar; Nicaragua; Niger; Rwanda; Sao Tome and Principe; Senegal; Sierra Leone; Somalia; Sudan; Tanzania; Togo; Uganda; Vietnam; Yemen and Zambia (BBC Online, 2 Dec).
The joint IMF-Bank program known as the Heavily Indebted Poor Countries Initiatitve (HIPC). offers some of the world's poorest countries a chance to reduce the debt they owe to international financial institutions and foreign governments provided they implement IMF-mandated economic reforms. To date 23 countries are receiving some form of debt relief: Benin, Bolivia, Burkina Faso, Cameroon, Gambia, Guinea, Guinea-Bissau, Guyana, Honduras, Madagascar, Malawi, Mauritania, Mozambique, Nicaragua, Niger, Rwanda, Sao Tome and Principe, Senegal, Tanzania, Uganda and Zambia. Total committed assistance is estimated at $34 billion. In their first progress report on their joint poverty reduction programs, the World Bank and the International Monetary Fund welcomed progress made in debt relief. They say the acceptance of their new poverty reduction strategy, the Poverty Reduction and Growth Facility (PRGF), has been widely supported by countries and development partners and is gaining momentum. HIPC initiative and is expected to provide nominal debt relief of around $50 billion to more than 30 countries. By the end of this year a total of 20 countries will benefit from $30 billion in debt relief. "The most important component in countries is how they govern themselves, how they run themselves and how you have effective programs that deal with social issues," World Bank President James Wolfensohn said during the meetings (spring 2001).
Opponents to the HIPC Initiative say the agencies are not taking enough action to foster growth. "They are tweaking an initiative when they should be taking bold action to make sure the debt is no longer a problem in those countries," said Lucy Matthew, a representative of debt relief advocacy group Drop the Debt (AFP).
In a global context, Africa is the poorest of all continents. It should, therefore, receive global assistance, including debt re-scheduling and even forgiveness. Its development should be financed by a global assistance fund that will link economic reform to poverty eradication. (H.E. Dr. Joao Bernardo de Miranda, Minister for External Relations of the Republic of Angola at the Millennium Summit)
How can the Congo Republic pay its debt of $2,278 per capita with annual income per capita of only $817?.... The G-7 meeting in June 1999 proposed to reduce third world debt by $127 billion or 70% of the total debt. This would directly affect 33 poorer nations. However, this has to be ratified by the G-7 nations.... Instead of creating strategies to stop poverty, the best minds in the ministries of finance and Central Banks of debtor countries spend too much of their time negotiating with the IMF and the World Bank to reschedule debt.... Trusteeship should be recreated, not to go back to colonialism, but to suspend statehood of failed states until their financial situation improves.
For 25-30 countries, the aggregate amount of debt is not that much.... Is it right to expect poor people to repay external debt created by previous dictators who deposited the loan funds into personal Swiss and French bank accounts and who were supported by Western governments?.... There should be an implicit, unwritten agreement among the relevant counties not to pay the external debt.... Some prefer the term “workout” to bankruptcy.... Forgiving debt is a moral hazard and will not work.
This action could lead to dependency on the rich. Instead, the lender
and debt nations should share the burden.... Western governments canceled
Germany’s external debt in 1953.
7.13 Governments, with some leadership from
international organizations, should increase efforts to promote free trade
among developed and developing countries.
The annual report of the World Trade Organization published in Geneva
on May 2001 shows that global trade grew by 12% in 2000, twice the average
rate for the past decade. The imports and exports of developing countries
increased by more than 20%. But the slowdown in the world economy will
mean slower trade growth this year, adding to pressure for a new round
of international trade negotiations. (The Economist, May 25, 2001)
The Third UN Conference on the Least Developed Countries, held at Brussels, on May 2001, concluded with the adoption of a Program of Action. The delegates agreed to some major initiatives such as expediting accession to the World Trade Organization for the LDCs, as well as working toward full and free market access for the LDCs. There was also unanimous support to insert a sentence into the Program of Action to facilitate efforts to provide duty-free and quota-free market access for all LDC products in the markets of developed countries.
Developing countries need to have access to the markets in rich nations. At the UN Millennium Summit numerous developing countries voiced their concern over trade protectionism in the developed world. Many called for open and free trade, while a few, such as Vietnam, suggested preferential treatment for developing countries in terms of trade requirements. With open trade, each country can utilize its comparative advantages and expand consumption levels.
Industrial Associations should identify, monitor, and publicize sources of the constraints to free markets around the world.... Trade should be the top priority instead of aid.... The IMF, World Trade Organization (WTO), World Bank Group, and the OECD are closely working on policy designs to improve free trade within the G-7 framework.... Should be part of the new “global Marshall Plan” or “Global Partnership for Development”.... Make it “managed trade,” since real free trade does not happen. In “managed trade,” everyone has the right to participate in the management of trade.
There is not much in low-income countries to attract capital, hence
a free-market economy, privatization, and free trade have little value
to them. However, these policies are obviously very effective where there
is some value upon which to build.... We need fiats to get used to the
loss of preferences due to the Uruguay Round.... Yes, it often is effective
in stimulating “strong economic growth” for some period, but in cannot
assure sustainable development.... Much usable knowledge does not flow,
as each country wants to maintain an edge over others.
7.14 International organizations and governments
should create a “Global Securities and Exchange Commission” to help tame
currency markets.
The International Monetary Fund (IMF) will establish an International
Capital Markets Department to enhance its surveillance, crisis prevention
and crisis management activities, Managing Director Horst Köhler announced
in March. This will enhance the IMF's capabilities in providing early warning
of potential stress in the financial markets; and strengthen the Fund's
ability to help member countries gain access to international capital markets,
and to deal with and benefit from interactions with the international capital
markets. (<http://www.imf.org> News Brief No. 01/24)
Crucial to create, but very difficult to complete. The Bretton Woods institutions should take the leadership and responsibility for this. If not, then a new international organization will be needed for capital flows, monitoring, and policy. If the IMF is reorganized, then this should be a major focus for it.... Opinions are divided on issuing tax on currency transactions.... Malaysian Prime Minister Mahathir Mohamad advocates government action against currency traders who seriously affect currency values.... The IMF argues that government transparency and good fiscal management will reduce currency instability.... Support the use of a fee-based system for central banks that makes currency transactions transparent with online prices, information on counterparties, and purposes of trades so as to reduce speculation.
The Asian financial crisis has certainly demonstrated financial interdependencies
and the need for good business practices. Bribery and corruption - these
are certainly ills that have to be cured. One means for doing this might
be for the OECD countries to wield a big stick in the form of withholding
investment unless the countries introduce something like the US’s Foreign
Corrupt Practices Act. Also, within OECD, some of the hypocrisy has to
be taken out: in Germany if a bribe is made to a German government official,
that’s a crime. But if it’s done in another country it’s a deductible expense….
To avoid skipping over the poorest countries, regional groups of countries
should take the lead.
7.15 Increase research into alternative progress
indicators that reflect qualitative factors such as social and environmental
issues.
The State of the Future Index (SOFI) is beginning to do this.
See the chapter on SOFI in this State of the Future…. Replace “increase
research” with “start incorporating”…. It is an important action but we
should add new indicators, which would reflect social, environmental, and
living standard issues.
One measurement of progress, the Integral Indicator of Living Standard
includes three indicators: life expectancy, literacy, and GDP per population.
But it is not enough. We should also add an indicator that reflects the
health of population (not only life expectancy), and cultural richness
or spiritual satisfaction. An international program for this proposal should
be developed…. Should be specific to local situation and created by local
think tanks. Examples are the UN’s Human Development Index (HDI) and the
World Bank’s Wealth Index.
7.16 Expand international programs of retraining
to help avoid technological and managerial obsolescence.
It is not a bad action, but sometimes these programs lack cultural
sensitivity as if the Western mode was the only model…. They are helpful
for international relations, but absolutely useless at an internal level.
The programs could be more efficient if the training courses are prepared
by an international panel… Such training programs are increasingly culturally
sensitive and have matured from the earlier technical assistance and training
programs.
7.17 Observe standard central bank rules on
the issuance of currency to avoid inflation.
This moderates problems but does not eliminate them because it gives
governments and commercial banks the opportunity of embezzlement. The central
banks work through commercial banks that are profit-oriented rather than
service-oriented. Thus it enriches a privileged elite at the expense of
the ordinary citizen. The issuance of debt-based currency promotes consumerism
and prevents sustainable development…. An alternative Foreign Exchange
facility has been proposed, which would be operated as a public utility,
allowing central banks and the UN to regulate speculators.
7.18 To reduce the technological gap, developing
countries should be open to trade and to foreign direct investment.
Trade must not undermine domestic or international environmental standards,
must encourage environmental progress, and must be based on democratic
procedures…. The Internet is globalization on steroids. It will boost efficiency
and enhance market integration domestically and internationally, particularly
in developing countries that are most disadvantaged by poor access to information.
While the Internet should enhance global growth, it also brings increased
danger of economic marginalization to countries that cannot access it effectively.
Taking advantage of electronic commerce requires policies similar to
those needed to capitalize on the opportunities for trade: improved international
coordination, for example in ensuring interoperability of communications
technology and confronting challenges to domestic tax and financial systems;
an open economy promoting competition and diffusion of Internet technologies;
and efficient social and infrastructure services, in particular a competitive
telecommunications sector and a well-educated labor force.
7.19 Richer countries should reduce their trade
barriers to poorer countries.
This should be mutual between rich and poor countries…. High trade
barriers imposed by industrial countries on agriculture and processed food
imports, along with agricultural subsidies, have contributed to the relatively
poor performance of developing countries’ exports. These trade barriers
have particularly hurt the poorest countries, which because they also struggle
with weak trade-related infrastructure such as transport and communications,
and a lack of skilled manpower, find their options to diversify into other
exports with greater potential for growth severely limited.
Most developing countries that have increased their trade liberalization
had increased export growth in the 1990’s that kept pace with the 6%
per year expansion of volume of world trade. However, average per capita
growth rates in developing countries as a group showed little or no growth
in the 1990s.
ADDITIONAL ACTIONS
The efforts to define what "ethical markets" mean are very important
e.g., UNDP Human Development Report 1999, but was very vague. The suggestions
"to formulate the codex of behavior of transnational corporations" is needed
but unrealistic.
Poor people have to be fully involved in the process of growth and development and governments should make a macro-policy of partnerships between the rich and poor…. Outside commission should supervise technical and managerial assistance for the privatization of state-owned enterprises.... Fund programs that promote constructive uses of leisure time.... Increase participatory processes between labor, management, and consumers.... Explore use of public voting via Internet on potential corporate decisions of global importance.... Seek and apply effective modern qualitative management approaches that are emerging.... International organizations, with some leadership from governments, should study the feasibility of a global tax structure that is unbiased between rich countries and poor ones. The IMF and the World Bank Group are studying this now, but it may take decades to implement the recommen-dations. Study desirability first, then feasibility. Include both agrarian and tax reforms. For example, the agrarian reforms the US forced on Korea and Japan accelerated growth, as did locally initiated agrarian reforms in Taiwan.
Get the world to agree that economic growth is the common goal…. Human development is the end, economic growth a means. The strength of the links between human development and economic growth depend on investments in health, nutrition, education, skill training, and research and development, as well as accessible opportunities for people to contribute to economic development through social, political, and economic participation…. There is consensus about how to fight poverty [see Pursuit of Sustainable Poverty Reduction by IDA or Poverty Reduction and the World Bank by IBRD].... Get multilateral organizations to support governments in getting the world to understand this.... As yet, there is no consensus among economists about how to create growth.... Poverty can’t be eradicated merely by boosting income. It’ll also take a broad expansion of basic human capabilities and the productive uses of those capabilities…. We need to acknowledge this problem and go beyond discussing data.... Discuss macro policies as well as micro policies.... Increase competition and liberalize trade regulations.... Since it is not possible for all to have the living standards of the rich, we have to create a new approach to this problem - a new view of evolution, including new definitions of wealth.... Increase local participation in development decisions, as Shrouk is doing in Egypt.... Give more attention to solving problems locally, with local strategies, tactics, and resources, rather than just seeing international actions as the solution to problems.... The focus of development strategy should be reducing debt and promoting trade.
Poor countries have to sort out their own problems; the role of international agencies should be that of enablers. The techniques of fast growth are now well established, based on the Southeast Asian experience, which is now being followed in South America. As a result, the problems of these countries are declining, even in Africa. The persisting problems are cleptocrats, rulers who plunder their countries’ treasuries; Nigeria does not really have the foreign debt it is supposed to, but the balancing entry is in the form of Swiss bank accounts and real estate in London.... Encourage juridical thinking that can be transformed into pertinent legislative formulation within existing international instruments that work on the protection of human rights.
Although the perceived gap in living standards is exacerbated by improving global communications, these same telecommunications capabilities can play a role in addressing this issue. For example, telemedicine and tele-education can significantly help reduce the actual gap in living standards.... China’s growing economic success came from 1) preferential tax policies and movement of talented persons to more productive locations; 2) capital investment with some preferential policies for the poorer areas; 3) integration and communication of experiences; and 4) organization of resources and techniques into enterprise groups.
Eliminating the gap between rich and poor countries cannot be done by redistribution of resources, but by completing the organization of their economies and educational systems, which is now underway.... Structure and quality of growth demand more attention. A World Bank study of 192 countries concluded that only 16% of growth is explained by physical capital, while 20% comes from natural capital. But no less than 64% can be attributed to human and social capital.... Set government policies in Latin America and the Caribbean to achieve 6% annual economic growth; spend more on education, health, and women.... There need be no conflict between growth and equity. Japan and Sweden have combined both…. However, focusing on equity alone would reduce incentive to improve growth.
Increased income, taxed from the market, should pay social expenses to protect fundamental social and economic rights in order to protect human dignity.... Study how to deal with tax evasion in developing countries.... Develop new concepts of redistribution.
To prevent further international financial crises, a task force of the UN Executive Committee on Economic and Social Affairs recommended: a) improved consistency of macroeconomic policies at the global level; b) reforms of the IMF aimed at providing adequate international liquidity in times of crisis; c) the adoption of codes of conduct, improved information, and financial supervision and regulation at both national and international levels; d) the preservation of autonomy for developing and transitional economies with regard to capital account matters; e) the incorporation of internationally sanctioned standstill provisions into international lending; and f) the design of a network of regional and subregional organizations to support monetary and financial management.
Base currencies on assets and issue them only through non-profit institutions.... Establish an international code of ethics and national certification programs for professional bankers…. Using face-to-face networking, Internet banks could be set up to lend to ethical/sustainable projects as a kind of competition with existing banks.... Microcredit and ethical capitalism can extend beyond community to positively impact a nation’s economy.... There should be linkage between traditional knowledge and technology to the mainstream or world state of knowledge and technology.... Clarify ethical issues linked to traditional system.
In the global economy of e-commerce, small and medium size businesses in developing countries are able to compete more effectively.... To prevent investors’ panic such as that which occurred in the Asian financial crisis in 1998, governments have to provide more information about the economic circumstances and banking systems.
Former UNDP Administrator, Gus Speth believes the new Global Coding System <http://www.unspsc.org> with its global product code standards offers a democratic access to the global economy.
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