global marshall plan

8/7/2019 Global Marshall Plan

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Global Marshall Planbalance the world w it h an Eco-Social M arket Economy

JosefRiegler Franz JosefRadermacher


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Global M arshall Plan

balance the world with an Eco-Social Market Economy

Vision

Justice, peace and sustained development for the whole world

Path

Global Partnership a worldwide Eco-Social Market Economy

Strategy

To create a win-win situation for everybody

Fair development opportunities for all through the financing of the

Millennium Development Goals

Fair market economy for all through ecological and social standards that

are binding for every country in the world, the opening of markets and

(co)-financing

A world economic miracle and boost to growth through investment

initiatives and increased purchasing power

3A project for hope


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4 A project for hope

In May 2003, a group of individuals from the worlds of academia, politics,

the media, culture and international development got together to try to do

something about the ever more alarming problems facing human development.

They decided that the development goals set by the UNO should be linkedwith the creation of an eco-social framework for a globalised economy, and

the concept of a Global Marshall Plan was born! This initiative has developed

with great dynamism and is now supported by more than 50 non-governmental

organisations as well as many prominent individuals.

The original initiators the Club of Rome, Ecosocial Forum Europe, Stiftung

Weltvertrag and the Club of Budapest were soon joined by important

economic and non-governmental organisations such as VENRO (Association

of non-governmental development organisations), national sections of Friends ofthe Earth and the student organisation AIESEC, the BWA (Federal association

for economic aid and foreign trade) and the international member group of

JCI (Junior Chamber International).

The Initiative has also met with a very positive response at an international

level. It has organised a number of conferences in various European countries

and has attended many international events including the World Social Forum

in Mumbai, the recent meeting of the Parliament of World Cultures in Ankara,

the conference of the Parliament of the Worlds R eligions in Barcelona and

the World Summit on the Information Society (WSIS) in Geneva and Tunisia,

to name just a few.

Prominent figures from all areas of society have expressed their approval and

pledged their support for the Global Marshall Plan Initiative.They include

German Federal President Dr. Horst Khler,Austrian Federal President Dr.

Heinz Fischer, EU Commissioner for External R elations Dr. Benita Ferrero-

Waldner and the President of the Club of Rome, Prince Hassan of Jordan.


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5A project for hope

The EU as the focus of world hope

The European Union is an important focus of hope for our project and formany people throughout the world. For this reason the Global Marshall Plan

Initiative is addressed explicitly in the first instance to decision-makers within

the EU.The first step in the development of a Global Marshall Plan is to be

the setting up of a European Union advisory committee.This committee is

to include representatives of civil society and economic organisations from

North and South and its task will be the drawing up of a detailed pro-

posal for the financing and implementation of a Global Marshall Plan.

I. Ideas on the Global Marshall Plan for a worldwide eco-socialmarket economy

The following remarks are offered as discussion points and stimuli.The aim

of this text is to demonstrate the plausibility and viability in terms of financing

of a global strategy of this kind for a more balanced future. Economics,

science, politics and global civil society need to work actively together to

draw up the content of a Global Marshall Plan along the lines of a global

solidarity plan or planetary contract.The quality and success of our projectdepends to a great extent on the commitment and contributions of these

participants.

This phase of agreeing globally responsible goals and steps must then be

replaced as a matter of great urgency by a phase focusing on the decisive

implementation of global change.The initiators of the Global Marshall Plan

Initiative see the replacement of a state of paralysis (in terms of the imple-

mentation of globally acceptable standards) by the creation of frameworks

and systems that operate to the benefit of all concerned as the most important

Global M arshall Plan

balance the world with an Eco-Social Market Economy


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issue of the next few years and as a way of bringing about a new kind of global

power to act. In particular this relates to the financing and implementation

of the appropriate mechanisms for a Global Marshall Plan of this kind, in

conjunction with the creation of binding ecological and social standards.

II. The United Nations Millennium Goals

At the UNO Millennium Summit Meeting held in 2000, 191 heads of state

agreed a set of worldwide development goals to be realised by 2015.These

goals form the focus of the first phase of the Global Marshall Plan:

1. Halve the number of people throughout the world living on less than

one dollar a day (currently more than a billion people)2. Ensure that all children have access to a full course of primary education

3. Promote gender equality and increased influence for women

4. R educe infant mortality to one third of its current rate

5. Bring about substantial improvements in maternal health

6. R everse the spread of HIV/ AIDS, malaria and other major diseases

7. R everse the loss of environmental resources and halve the number of

people without access to safe drinking water (over a billion today)

8. Bring about a new form of partnership for development:

a) create a worldwide open trading and financial system with the

appropriate background conditions

b) tackle poverty, in particular with respect to the debt problems of poor

countries

c) create meaningful and productive employment opportunities

d) ensure access to essential drugs

e) make the benefits of modern technology available to all.

All the major international organisations have since adopted these goals and madethem their own, e.g. the World Trade Organisation (WTO), the International

Labour Organisation (ILO), the United Nations Environment Programme

(UNEP), the World Bank (WB) and the International Monetary Fund (IMF).

III. Finance requirements for the Global Marshall Plan

The Zedillo R eport, published by the United Nations in 2001, calculated

that the volume of finance (not yet secured) required to achieve the Millennium

Development Goals amounts to some 50 billion US dollars per year. On top


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7A project for hope

of this a further 20 billion US dollars a year is required for the provision of

global public goods in order to create the right basic conditions for an opti-

mised worldwide eco-social market economy. Firm commitments totalling

12 billion US dollars have already been made, starting in 2006.As the studiespublished to date have been based on the provision of aid from 2001, in order

to achieve the Millennium Development Goals by 2015 and implement a

Global Marshall Plan (which will probably not be possible until 2008), from

2008 new money of around 100 billion dollars a year will be required, a sum

that will need to be made available progressively.

Here are some comparative figures to help us put this amount into perspective:

International development aid currently amounts to a total of approximately55 to 60 billion US dollars.This is around 0.2 per cent of the gross domestic

product (GDP) of the donor countries. Under the proposed Global Marshall

Plan, this would rise to 0.5 or 0.6 per cent of GDP.This would still be below

the 0.7 per cent figure agreed as a target by the international community as

long ago as 1970.Another useful comparison is the volume of aid provided

by the USA to Europe after the Second World War under the Marshall Plan.

This plan was financed over a period of four years by an average of 1.3 percent

of the USAs GDP.The total budget of the EU is currently around one per-

cent of the GDP of the EU member states.

These figures demonstrate clearly that the proposed Global Marshall Plan can

be financed. Experience shows, however, that the increase in resources needed

for the realisation of the United Nations Millennium Goals is unlikely to be

found from national budgets due to the current overstretched state of public

finances.

The plans initiators are therefore proposing new, innovative and uncon-ventional ways of raising funds, based in part on ideas suggested by the British

finance minister Gordon Brown and financial expert George Soros.

The basic idea is as follows: a global tax in order to prevent distortions to

regional competition and because global economic activity contributes dis-

proportionately little to tax revenues; extremely low taxation rates in order

not to overburden business or the consumer; administrative simplicity based

on existing institutions.


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The following three examples are intended as stimuli for further discussion:

1. International Monetary Fund (IMF) Special Drawing Rights

Financier George Sorossuggestion of using IMF Special Drawing R ights fordevelopment finance has been taken up by both the Zedillo R eport and

Gordon Brown.

Special Drawing Rights are loans that are made available to a country in pro-

portion to the amounts paid into the IMF by that country. One benefit of

this is that developing countries pay into the fund in their own, often weaker,

currency, but are able to access loans from it in hard currencies. George

Soros suggests authorising such Special Drawing R ights on an annual basis

in future. His proposal would mean that a sum in excess of 10 billion dollarswould flow to the poorer countries for development projects. In addition,

the rich countries should make their share of the corresponding allocation

of 18 billion dollars available for development financing as well.This could

form an important basis for a Global Marshall Plan.

The Global Marshall Plan Initiative suggests transferring to the South a total

of between 30 and 40 billion dollars in SDR s a year.The opportunities for

money supply expansion available to the central banks of rich countries or

groups of countries would be reduced, but not by an untenable amount.

2. Low- level taxation o f financial transactions

The suggestion has been made from various quarters for a so-called Tobin

Tax on global financial transactions which would be used to finance global

development goals. Our proposal is based on an extremely low level of taxation,

a prudent use of this instrument, which would be implemented on a global

level only.

Thus a cautious initial worldwide tax of 0.01 per cent on global financial

transactions might be considered. If this meets with success it could be raised

to 0.02 per cent. A minimal Tobin Tax of this sort could generate between 30

and 40 US billion dollars annually for the Global Marshall Plans proposed

Planetary Contract.

3. A Terra Tax on world trade

In addition to financial arguments, there are also serious systemic arguments

in favour of the possible introduction of a world trade tax that goes against


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makes up only a small proportion of the price of the end product, this tax

will hardly be noticed in terms of individual end products. Given the current

level of world trade of 8.5 tr illion US dollars, a tax of this kind would

generate 30 to 40 billion dollars per annum.

Each of these three ideas for discussion also offers the following advantages:

The provision of these resources necessitates almost no additional bureau-

cracy as the recording of most of the required values is already carried

out as part of the customs clearance procedure and calculation of VAT

or else through the documentation and tracking of financial market

transactions.

As the proposed measures encourage the entry of new players into the

world markets, they are also tools for the strengthening of competition

and dismantling of existing barriers to fair competition.

The manner in which the resources are to be invested will increase

worldwide growth and contribute to an urgently needed world eco-

nomic upswing, thereby boosting employment opportunities.

The proposed measures concerning the Special Drawing R ights and Tobin

Tax would be realised by the IMF.The proposal for the introduction of a

Terra Tax needs to be discussed at one of the forthcoming WTO meetings

within the framework of the wider efforts to introduce a Global Marshall

Plan for a worldwide eco-social market economy.

Alongside the three possible sources of finance outlined here, the introduction

of a Global Climate Certificate System (GCGS), the establishing of a Future

Loan scheme and Gordon Browns proposal for the creation of an Inter-national Finance Facility also have a valuable contribution to make to the

debate. Of special importance too are proposals regarding the writing-off of

development countries international debt, as set out in the UNs Poverty

R eduction Strategy Papers (PRSP). In addition, the closure of off-shore tax

havens, which cost national budgets some 50 to 60 billion US dollars a year

in lost tax revenues, should finally be tackled energetically by the international

community. Desirable too would be agreements on minimum taxation levels

dependent upon stage of development. All these measures are already being

pursued internationally.This is welcomed by the Global Marshall Plan


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Initiative. Finally, efforts to dismantle protectionist structures should be

intensified with respect also to present agricultural policy as should the

debate over the creation of an international cartel authority.

IV. Realisation of a worldwide eco-social market economy

It is important that comprehensive, internationally agreed standards are

implemented step by step in tandem with the Global Marshall Plan! Earlier

mistakes in development cooperation must be avoided in the implementation

of the plan.This is essential if the effects aimed for by the plan are to unfold,

allowing it to win broad and sustained support from civil society as well as

from economic and political bodies.The most appropriate way of achieving

this is by combining a programme of the kind outlined with a set of ethical,economic, ecological, social, cultural and democratic standards in order to

create an eco-social market economy.The distribution of resources must

be influenced neither by the short-term economic interests of the donor

countries nor by the short-term power-related interests of the elite in the

recipient countries.The best way of ensuring this is through rigorous adherence

to a set of standards, an associated duty of accountability and the active and

transparent involvement of economic and non-governmental organisations.

Application of the following set of standards, which have already received

broad consensus among UN members, is to be targeted during the first

phase of the Global Marshall Plan:

a) The basic standards of the International Labour Organisation (ILO)

such as the right to organise, equal treatment of men and women,

prohibition of child labour etc.These correspond by and large to the

fundamental economic, social and cultural human rights which should

also be taken into consideration.b) The standards of the international agreement on the environment.When

applying these criteria in the distribution of resources it is important

to be aware that in many areas, non-adherence to some of these eco-

logical and social standards represents the main competitive advantages

of the (usually economically disadvantaged) regions concerned.The

example of the EU, however, shows that agreements on the application

of common high standards and levels of protection can be achieved if

finance for the development of their weaker partners is simultaneously

being guaranteed by the developed nations.This coupling of the two


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V. Employment of the Global Marshall Plans resources

In a globalised world each different level must fulfil its indispensable tasks.The

subsidiarity principle needs to be systematically applied.The transfer ofknowledge, empowerment and efficient investment in education and health

must have priority here.The following criteria and experiences are to be

taken into consideration in the distribution of resources:

The strengthening of entrepreneurial ability and ability of every individual

to assume personal responsibility must be prioritised in all future aid

programmes.

The inclusion of local and global civil society in the planning process isbecoming increasingly important.

The democratic requirements are growing at all levels.

It is becoming essential that all people of all nations feel they can play

an equal role in the creation of basic global conditions.

Against the background of these considerations we consider the following

principles and suggestions to be worth mentioning in particular:

The actual aid programmes should be coordinated via the corresponding

organisations and programmes of the United Nations.The role of the

United Nations, whose total annual budget for administration, program-

mes, all its sub-organisations and peace initiatives is roughly the equivalent

of what New York City spends on education, must be strengthened.

The example of The Global Fund to fight AIDS,Tuberculosis and Malaria,with a good two billion US dollars of funding, should be studied in

order to assess whether the creation of UN-related funds of this type,

benefiting from partnerships with economic organisations and civil

society, would help the Global Marshall Plan achieve its key goals.

Where resources have been raised from a tax on world trade, careful

consideration would need to be given to whether these resources should

be used to fund development goals falling within the same economic

sectors, e.g. in the telecommunications or energy sectors, from which


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the revenues stemmed.This could substantially increase the willingness

ofbusiness to endorse such an initiative as it would relate the raising of

resources directly and transparently to the spending of resources.As in

other areas, however, care would need to be taken to ensure the imple-mentation of suitable technologies.

An essential tool in the employment of resources should be the public

tendering of proposed programmes among non-governmental organisations

in order that healthy competition results in maximum cost effectiveness.

This could be done via a neutral committee attached to the IMF but

materially independent in its decision-making.

A clear priority should be given not to projects run by experts and firmsfrom the donor countries, but to projects that are based on the entrepre-

neurial potential of people in the specific region or locality concerned

for example micro-credit loan banks (Grameen Bank) and development

schools (such as Fundaec in Colombia) that train local people to become

development promoters.

In the case of technology transfers, the selection of projects to receive

aid should be made on the basis that as wide a cross section of local

people as possible (instead of small groups of the elite) should be able to

use the technology autonomously, quickly and efficiently. A successful

example of empowerment of this kind was the Womans Empowerment

Programme in Nepal.

The search for particularly successful and effective social and ecological

projects and their criteria for success should be defined and promoted as

a new focus for international research.The efficiency of many current

forms of development support can be massively increased through theidentification and promotion of best practice projects.

VI. The EU as the focus of world hope

The initiators of the Global Marshall Plan are addressing their ideas and

proposals to a number of bodies and organisations simultaneously:

1. To European governments and national parliaments, the EU Parliament

and the EU Commission with the proposal that an EU advisory com-


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mittee be set up at the beginning of 2005. Including representatives from

civil society and economic organisations from both North and South,

the task of this committee would be to draw up a detailed EU initiative

to be known as the Global Marshall Plan for a worldwide eco-socialmarket economy.The EU would subsequently present the concept as a

joint EU position at all future world summits and negotiations.This is our

Initiatives most urgent practical interim goal.

2. To the UNO (United Nations Organisation), in whose hands the Planetary

Contract of a Global Marshall Plan would ultimately lie and whose sub-

organisations would play a central role in the implementation of this project.

3. To various international organisations UN special-purpose organisations

as well as international economic and other bodies with the request

that they intervene actively on behalf of the Global Marshall Plan andthus enable the Millennium Goals of the United Nations to be achieved

after all.

4. To representatives of international business in the hope that they will adopt

the Global Marshall Plan as a cause that is in their own interest both as

a lever with the potential to unleash a comprehensive worldwide economic

miracle and as a tool for the promotion of good corporate governance

and social responsibility.Without the support of business the implementation

of the Planetary Contract of a Global Marshall Plan would be unthinkable.

5. To global civil society as represented by non-governmental organisations

in the hope that they will adopt the Initiative as one of their key causes

for the next few years. NGOs have an important part to play in helping

raise awareness of the need for a Global Marshall Plan.They should also

be given responsibility for monitoring and supervising the development

of the process once it has been set in train.

In addition to the groups named above, the Initiative is also directed at

academia, the media, the arts and the great humanitarian movements andreligions, all of which are extremely important to the goals formulated in

this text. If the support for this Initiative from the various quarters addressed

reaches the level hoped for by the initiators, a Global Marshall Plan for a

worldwide eco-social market economy could be adopted at a world summit

in 2007, the year of the R io+15 meeting.The key points need to be

drawn up by an EU advisory committee well before this, however, by the

end of 2005 at the latest.The first implementation phase for the achievement

of the core goals described above (corresponding to the Millennium Develop-

ment Goals) could then run from 1.1.2008 up to and including the year


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2015.Without a plan of this kind, the Millennium Goals will to all intents and

purposes no longer be achievable.The most recent State of Food Insecurity

in the World report shows clearly that the trends in those areas of vital concern

that constitute the Millennium Goals have worsened further.

Any subsequent deterioration of the problems would make the implementation

of delayed countermeasures considerably more difficult if not impossible!

VII. The determinat ion of the init iators

A sensibly developed Global Marshall Plan for a Worldwide Eco-Social

Market Economy is in the best short-term and long-term interests of both

the marginalised countries and the rich countries, of committed global civilsociety and business, of national and international politics. In conjunction

with the implementation of major ecological and social objectives, it has the

potential to be the most effective economic development and peace pro-

gramme within our grasp today and one whose benefits will be felt for

decades to come.

Hence our vision

Justice, peace and sustained development for the whole world!

Hence our path

Global partnership through a worldwide eco-social market economy!

Vienna/ Ulm, May 2005



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Declaration of support . Please fax to: +43 (0) 1 533 07 97-90

Global Marshall Plan balance the world with an Eco-Social Market Economy

I/ We support the Global Marshall Plan Initiative for a worldwide Eco-SocialMarket Economy.

Organisation:

Name:

Position: ...

Address: ...

e-Mail: ...

I would like to receive further information and the GMP newsletter by e-mail.

I would like to personally collaborate with the initiative.

I would also like to support the initiative financially.

Date: Signature:

Authors:

Josef Riegler, former Vice Chancellor, President of the Ecosocial Forum Europe,Vienna;

Franz Josef Radermacher, member of the Club of Rome, Curator of Stiftung Weltvertrag,Director of the Research Institute for Applied Knowledge Processing, Ulm, Germany

(FAW / n), Ulm; Editor: Ernst Scheiber; Layout: Roland Wallner

Sources:

Ecosocial Forum Europe, Franz Josefs-Kai 13, A-1010 Vienna, tel: +43 (0) 1-533

07 97, fax: +43 (0) 1-533 07 97-90, e-mail: [email protected]

Global Marshall Plan Initiative, Rissener Landstrae 193, D-22559 Hamburg, tel:

+49(0) 40-822 90 420, fax: +49(0) 40-822 90 421, e-mail: info@globalmar-

shallplan.org



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Info links:

www.globalmarshallplan.org

www.oekosoziales-forum.at

Website credits:

www.iufe.at

www.umweltdachverband.at

www.komment.at/ ziele/ ziele.cfm

Contact:

[email protected]

[email protected]

[email protected]

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