tag:blogger.com,1999:blog-19346186938301511362024-03-22T05:09:24.905+00:00Global justice - the big pictureWe can take individual action for global justice. But global problems also need global responses. Our leaders fear putting their own country at a disadvantage so international agreements seldom go far enough. The Simultaneous Policy (SP) campaign is a way to compel and empower our leaders to implement the policies we, the people, want. These are my own reflections on the campaign. Any proposals do not have official status until final voting by SP Adopters (sign up for free on the simpol sites).Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.comBlogger79125tag:blogger.com,1999:blog-1934618693830151136.post-21580436825187981882010-05-06T10:39:00.002+01:002010-05-06T10:47:05.594+01:00UK Election 2010 - who's signed the Simultaneous Policy pledge?<div>The Simultaneous Policy (Simpol) campaign is on track to have a greater influence in the next Parliament.</div><div><br /></div><div>Simpol Adopters around the country have been asking candidates to sign the pledge to implement the Simultaneous Policy alongside other governments. The policies are to address global problems where competition between nations makes progress difficult through conventional politics. Adopters are invited to propose, develop and approve the policies to be implemented. In the last annual vote, climate change was once again the top issue. </div><div><br /></div><div>You can find a list of candidates who have signed the Simpol pledge at:</div><div><a href="http://simpol.org.uk/simpol-in-action/whos-signed-up">http://simpol.org.uk/simpol-in-action/whos-signed-up</a></div><div><br /></div><div>Candidates from all main parties have signed up. </div><div><br /></div><div>In Cambridge Daniel Zeichner, the Labour candidate, has given his support and said:</div><div><br /></div><div>“The world is changing rapidly and progressive politics must not be limited by out-dated national boundaries. With new ways to communicate easily, ideas rather than geography will be the key. I want to work with like-minded people to challenge inequality, prejudice and ignorance, wherever it occurs. We are all in this together and must work together to meet the challenges ahead.”</div><div><br /></div><div>In Cambridgeshire South constituency, Tariq Sadiq, the Labour candidate, has given his support.</div><div><br /></div><div>You may wish to consider this when voting today. If you are not in these constituencies, see the site, which will also have an update after the results are in to show how much closer we are to having the UK Parliament and Government back the Simultaneous Policy.</div>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-82132379248780203992009-10-02T08:19:00.001+01:002009-10-22T08:22:35.364+01:00Mbewa Self-Help Project in the newsTo help with fundraising for my Malawi project, I recently gave an interview to our local paper, The Warrington Guardian.<div><br /></div><div>A scan of the article appears below. You can read it online at:</div><div><a href="http://www.warringtonguardian.co.uk/news/pload/4659175.Have_a_heart_for_orphans_of_Malawi/">http://www.warringtonguardian.co.uk/news/pload/4659175.Have_a_heart_for_orphans_of_Malawi/</a></div><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdR_m-0tqr37_ERBnXmA313190BrcMSolc9p10OsojHi6THI3LR5qTl08r1gUtomnSbFkvBU03LjhT2Xid_VgQsYxmDCWFWVLP0Td2YrsEbE2MPhZewsaU4IPR9yHBSmoCSVnU1dSgn7w/s1600-h/warringtonguardian1009.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 320px; height: 233px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdR_m-0tqr37_ERBnXmA313190BrcMSolc9p10OsojHi6THI3LR5qTl08r1gUtomnSbFkvBU03LjhT2Xid_VgQsYxmDCWFWVLP0Td2YrsEbE2MPhZewsaU4IPR9yHBSmoCSVnU1dSgn7w/s320/warringtonguardian1009.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5395321141950281522" /></a>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-65595240543889800482009-09-18T19:15:00.002+01:002009-09-18T19:23:02.683+01:00Campaigning for the Simultaneous Policy - film clipsClips from the 2004 DVD Campaigning for the Simultaneous Policy are being posted on youtube.<br /><br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/2xYAiaouiIA&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/2xYAiaouiIA&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-39604290697992452912009-09-01T11:36:00.007+01:002009-10-22T08:19:02.544+01:00Film of my Malawi visitHere's a short (7 minute) film of my return to Malawi in 2009. Highlights for me were visiting the projects in Mbewa village I have been supporting with family and friends and being a guest of honour at the 13th Mulanje Mountain Porters' Race - I organised the first race in 1996, shortly before leaving after working in Malawi for 4 years.<div><br /></div><div>Malawi is one of the world's poorest countries. Life expectancy is 39 years and under-5 mortality is 140 per 1000 live births (the UK rate is 6 per 1000 live births).</div><div><br /></div><div>You can help development projects in Mbewa village by providing money for loans at:</div><div><a href="http://www.maravilha.co.uk/mbewa/">http://www.maravilha.co.uk/mbewa/</a></div><div><br /></div><div>Here's the film:</div><div><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/a65K9lJvaq8&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/a65K9lJvaq8&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object></div>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-84116634643434277592009-08-12T16:24:00.015+01:002009-08-13T05:25:05.081+01:00Listening to people in one of the world's poorest nationsIn a world of inequality, suffering and early death, what can be done?<div><br /></div><div>Supporting the Simultaneous Policy is something tangible and straightforward to achieve the structural change we need.</div><div><br /></div><div>But we can also do something more immediate to help those whose lives are not so fortunate as the majority of those who have access to the internet to read this blog.</div><div><br /></div><div>The most important thing is to first listen and to learn. For example, what is it that people in a village in Malawi want to improve their lives? A maize mill. See:</div><div><a href="http://www.maravilha.co.uk/mbewa/maizemill.html">http://www.maravilha.co.uk/mbewa/maizemill.html</a></div><div><br /></div><div>I have tried to listen while returning to Malawi, one of the world's poorest nations, where I worked for four years in the 1990s. Since leaving I have been doing what I can do support some of the friends I made at Mbewa Village at the foot of Mulanje Mountain, the highest in Central Africa.</div><div><br /></div><div>I've kept contact since those days with Francis Atiya, a mountain guide, who organised the first Mulanje Mountain Porters' Race with me in 1996, just before I left. There were 33 participants, mainly porters and guides, but me and a friend from the Mountain Club of Malawi, which sponsored the event, also took part. The route I chose covers 25 kms up one side of the Likhabula valley and down the other. The winner, Hamilton Makhalila, completed the course in 2 hours 39 minutes. After the prize giving (first prize - walkman, second prize - hurricane lamp) we had a slap up meal to celebrate and as a thank you to the porters' service over the past year.</div><div><br /></div><div>I billed it as the First Mulanje Mountain Race, in the hope there would be more. And some dedicated people have kept it going. Last month, I was able to attend the 13th event and gave a speech as the founder of the race.</div><div><br /></div><div><br /></div><div> <a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZmKNsja6FNSAzMLW57up4W7N8RwlRt0xUgzdSR_VWKC_jShrxzTLH_ZHfrNO2Vin524bVXZ1N-aqbQyGxv453KdLcewDWfpCXlX2PP98SlDrD9lqbZZK5WSJAhwG9ZG4antblI2r_eqY/s1600-h/portersrace09esm.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 288px; height: 216px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZmKNsja6FNSAzMLW57up4W7N8RwlRt0xUgzdSR_VWKC_jShrxzTLH_ZHfrNO2Vin524bVXZ1N-aqbQyGxv453KdLcewDWfpCXlX2PP98SlDrD9lqbZZK5WSJAhwG9ZG4antblI2r_eqY/s320/portersrace09esm.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5369102709101674562" /></a><br />Amazingly, there were about 300 participants, including from outside Malawi, and the winning time was 2 hours 5 minutes. The event is now being promoted by the Ministry of Tourism to try to draw more people to Mulanje Massif. (The mountain has gained some unwanted publicity since then as a tourist attempted to climb the highest peak without a guide and died after becoming lost.)</div><div><br /></div><div>While some people gain employment as porters and guides or carving the unique Mulanje cedar, the majority are subsistence farmers. Priorities are producing enough food to live through the year and finding a way to earn a little cash. </div><div><br /></div><div>With the help of donations from family and friends, we set up a chicken raising project, profits from which have been used to help pay school fees for some of the village's orphans.</div><div><br /></div><div>These small donations have also enabled the village of about 3,000 people to employ an agricultural advisor. One of his own innovations has been to implement an irrigation system for growing maize in the dry season as a cash crop. Water is routed from nearby streams through channels to the maize fields as shown in the clip below:</div><div><br /></div><div style="text-align: center;"><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/7-vBf7RTr5Y&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="http://www.youtube.com/v/7-vBf7RTr5Y&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" allowscriptaccess="always" width="425" height="344"></embed></object></div><div><br /></div><div>This scheme started with 7 farmers and proved so successful that many more have joined this year. My friends and family have been making loans for the fertilizer needed for the maize. Members of the farmers' club will pay for this when they sell the maize and those lending money will receive their repayment by 30 November. A little extra is raised at the same time to build up a fund for fertilizer for the next time.</div><div><br /></div><div>I discussed many ideas for other schemes with the Project Committee, which has been elected by the village and we have a list to develop over the next three years of so. Their priority is to set up a maize mill for grinding maize into flour.</div><div><br /></div><div>We've investigated the economics of this and put together a project to proceed in a phased way.</div><div><br /></div><div>The Committee has identified suitable land, which the owner has donated. They were then to produce the bricks for the house for the mill, but another villager quickly donated a stock of bricks.</div><div><br /></div><div>So they are ready to start as soon as I can raise the loans for the cement, roofing sheets and other materials.</div><div><br /></div><div style="text-align: center;"><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh13iYqECAuPHOIqx_dS4BQbRUz2CB7W8xCcf7A4Xtc2rXqmHq_MjnvIS5pq0nAQXChc2-nB7r8rFmEP8xugWI5x3__SPClYRqqU3H5T3yNzeRwwAfNZ1A1mIGUi5x5f-0GL_MjhYQu3tU/s1600-h/maizemill4sm.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 288px; height: 216px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh13iYqECAuPHOIqx_dS4BQbRUz2CB7W8xCcf7A4Xtc2rXqmHq_MjnvIS5pq0nAQXChc2-nB7r8rFmEP8xugWI5x3__SPClYRqqU3H5T3yNzeRwwAfNZ1A1mIGUi5x5f-0GL_MjhYQu3tU/s320/maizemill4sm.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5369113495032050258" /></a></div><div><br /></div><div>While building proceeds, I will also be seeking funds for buying the milling equipment. Hopefully this money will be available to transfer to the manufacturer in Malawi once the house is ready, so the mill can immediately go into operation and generate income.</div><div><br /></div><div>All the self-help projects aim to repay the investment and be self-sustaining. Income from the maize mill will be used to repay loans over the following 18 months. Additional income after running costs will contribute to a maintenance fund, other projects and for support for orphans and other vulnerable people in the village. </div><div><br /></div><div>If you want to help by contributing a sum of money, be it large or small, then you can contact me or make a pledge via the website I've set up for the project. See:</div><div><a href="http://www.maravilha.co.uk/mbewa/maizemill.html">http://www.maravilha.co.uk/mbewa/maizemill.html</a></div><div><br /></div><div>This has information on other projects under way and some of those in development and lots of great photos.</div><div><br /></div><div>Here's one of a mother working her irrigated field.</div><div><br /></div><div><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhS48gxSy19rl_VhPp-Q2_xqizqXwMzT1I-kIZ7-VGCPjMyKY3NLlwjKh_YYcHigwQPawYNAb_fbfo2yfEAIZowbLWD7AP-9dTo2FQ9qqLEuvvY4A9-apNb3SnTrE0LSz57gjoNotvRAv8/s1600-h/maizemill5sm.jpg"><img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 246px; height: 320px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhS48gxSy19rl_VhPp-Q2_xqizqXwMzT1I-kIZ7-VGCPjMyKY3NLlwjKh_YYcHigwQPawYNAb_fbfo2yfEAIZowbLWD7AP-9dTo2FQ9qqLEuvvY4A9-apNb3SnTrE0LSz57gjoNotvRAv8/s320/maizemill5sm.jpg" border="0" alt="" id="BLOGGER_PHOTO_ID_5369112527270316114" /></a></div>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-77721625438097070642009-07-03T15:00:00.003+01:002009-07-03T16:23:56.706+01:00Climate change action in Malawi - building from the community levelThis is not about global action for a change - it is about grassroots action.<div><br /></div><div>I am presently in Malawi supporting a community project called the Beehive Centre for Social Enterprise.</div><div><br /></div><div>One aspect of it is using hydraform bricks for construction. These are made without the need to cut down trees to fire them. Here's a clip I put together showing how they are made. You can support the project by purchasing bricks for buildings. See:</div><div><a href="http://www.maravilha.co.uk/krizevac/shop/">http://www.maravilha.co.uk/krizevac/shop/</a></div><div><br /></div><br /><object width="480" height="295"><param name="movie" value="http://www.youtube.com/v/ReNT5dBoP8Y&hl=en&fs=1&"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/ReNT5dBoP8Y&hl=en&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="480" height="295"></embed></object>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-92062183157527104512009-06-05T06:45:00.004+01:002009-06-05T06:58:29.205+01:00Simpol and elections: publicity and progress<!--StartFragment--> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Voting in the UK election for Members of the European Parliament has ended, though results will not be known until Sunday.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">There were 16 candidates who supported Simpol, 6 of them lead candidates who are first on the list for taking up a seat if their party gains enough votes.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">The UK campaign in the build up to the elections was regrettably low key, with the onus falling on local groups and individual campaigners and the indefatigable John Bunzl to contact candidates.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">With a general election due within a year, and possible only months away, now is a time to be thinking about promoting Simpol to voters and politicians so we are ready. Personally, I would love to see at least one Simpol-UK training and preparing day, which we can start planning for now.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">I have recently been invited to join the Simpol-UK Strategic Planning Group and would love to hear from anyone who is interested in being involved in helping to prepare for the general election, either in organising such a day, producing materials, contributing ideas or as a participant looking for support.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">It can be immensely rewarding to take action - and taking action can be as simple as sending a message to candidates in your area: there is no need to commit to more than you are able. </span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">As an example, I contacted candidates in the Eastern Region with the message I posted on my blog at:</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><a href="http://globaljusticeideas.blogspot.com/2009/03/countdown-eu-election.html"><span class="Apple-style-span" style="color:#000000;"><span class="Apple-style-span" style=" text-decoration: none;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">http://globaljusticeideas.blogspot.com/2009/03/countdown-eu-election.html</span></span></span></span></a></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">I was pleased that the Green Party candidate, Rupert Read, gave Simpol his support, as a long-time Adopter himself. His comment was: "I have long been a signatory to Simpol, and hope that this election campaign will bring more power to your arm."</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Rupert's support for Simpol will have benefited his campaign, with Adopters checking the website to see who had signed up or receiving updates I sent out. I even had someone telephone me directly just before election day to check who had made the Simpol pledge.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">This benefits candidates and helps to put those supporting Simpol into power, so bringing us closer to the time when the policies developed through our democratic process can be implemented.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">At the same time, Simpol gains publicity. Rupert posted news of his support on his blog as follows, available at:</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span style="text-decoration:none;text-underline:nonecolor:#8140A8;"><a href="http://rupertsread.blogspot.com/2009/05/rupert-read-pledges-support-for.html"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">http://rupertsread.blogspot.com/2009/05/rupert-read-pledges-support-for.html</span></span></a><span class="Apple-style-span" style="color: rgb(0, 0, 0); "><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;"> </span></span></span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">---quote</span></span></span></p><p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><b><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Rupert Read Pledges Support For Simultaneous Policy</span></span></b></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">In the Eastern Region, Green Party candidate, Rupert Read, has become the first to give his support to the Simpol approach. Other candidates have also been invited to do so.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">The Simultaneous Policy is a package of measures being developed democratically by people around the world to address global problems.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Simpol proposals include creating a World Transnational Corporation Regulatory Authority (WTCRA) and 'Contraction and Convergence' - a policy aimed at addressing climate change.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Supporting the Simpol campaign does not mean you have to support individual policies however! It is free to sign up as a Simpol Adopter and all Adopters can vote on policies or put forward their own proposals. </span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Simpol policies have been picked up widely - the WTCRA policy (developed in Cambridge by Mike Brady) has been published in the newsletter Jus Semper in English and Spanish, for example. See:</span></span><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><a href="http://globaljusticeideas.blogspot.com/2009/04/simpol-builds-networking.html"><span class="Apple-style-span" style="color:#000000;"><span class="Apple-style-span" style=" text-decoration: none;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">http://globaljusticeideas.blogspot.com/2009/04/simpol-builds-networking.html</span></span></span></span></a></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Click here to sign up or to learn more about Simpol.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><a href="http://simpoleuroelection2009.blogspot.com/"><span style=" text-decoration:none;text-underline:nonecolor:#8140A8;"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">http://simpoleuroelection2009.blogspot.com/</span></span></span></a><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;"><o:p></o:p></span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">---quote ends</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">This shows Simpol synergy in action! In this case, not only does the candidate gain votes, people have been encouraged to sign up as Adopters. And proposals that have done well in past voting have been highlighted, demonstrating once again how putting proposals forward for inclusion in the policy package brings them to the attention of a wider audience.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Obviously I'm pleased that my own proposal comes in for special mention – though it remains to be seen if it survives future voting rounds to remain in the process.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Repeatedly I see how the strategy developed by John Bunzl proves itself time and again in all its facets. This should encourage us all. All that is missing is wider involvement - but that will surely come.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">Even with a relatively low level of activity in these elections we will see MEPs elected who have pledged to implement the Simultaneous Policy alongside other governments.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">With the general election on the horizon we can make a breakthrough in every constituency where there Adopters if we think ahead.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">So if you are interested in helping to prepare, whether on the internet, at a future event or in your community, please contact me directly.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">I'd welcome suggestions or requests and can take these forward to the Strategic Planning Group for approval.</span></span></span></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;mso-pagination: none;mso-layout-grid-align:none;text-autospace:none"><span lang="EN-US"><span class="Apple-style-span" style="font-family:arial;"><span class="Apple-style-span" style="font-size:medium;">The Group itself is open to new participants, so if you are interested, let me know and I'll pass it on.</span></span><o:p></o:p></span></p> <!--EndFragment-->Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-21153884058646281962009-06-01T12:52:00.002+01:002009-06-01T12:54:41.673+01:00Euro election press release<p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 18.0px Times New Roman"><b>Global justice campaigners call for voters to turn out in the European Parliament elections</b></p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman"><b>Press release 1 June 2009</b></p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Supporters of the Simultaneous Policy (Simpol) campaign for global justice are calling for people to use their votes in the forthcoming European Parliament election (4 June 2009) to help to solve the pressing problems the world is facing. The campaign is not aligned to any party and seeks support from all candidates. Lead candidates for parties in several constituencies, as well as other candidates, have already pledged support for the campaign.</p> <p style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Simpol brings people together around the world to propose, develop and approve the policies they wish to see introduced to address global problems. In the last annual vote, the top problems were identified as: climate change, the power of transnational corporations, environment, international financial markets and other financial issues (fuller list below). Simpol campaign supporters, known as Simpol Adopters, give a preference to candidates who pledge to implement the Simultaneous Policy alongside other governments or, if they have a party preference, to encourage their prefered party to make this pledge. Simultaneous implementation is intended to remove the fear politicians have that their national economy will suffer if they act unilaterally. It is not intended as an alternative to other ways of working for change, but as a parallel strategy to overcome the obstacle of competition between nations.</p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Voters in most constituencies already have the choice of a candidate (many of them lead candidates on party lists) who has signed the Simpol pledge, and the pressure is on for other candidates to make the same pledge. </p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Cambridge SP Adopters' Group (CAMSPAG) Coordinator, Mike Brady, said: </p> <p style="margin: 0.0px 0.0px 5.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman"><i>"The Simpol campaign is a way for people to reclaim democracy. Our leaders are currently failing to deal with global problems such as climate change. Anyone can sign up as a Simpol Adopter free of charge and shape the policies they want to see implemented. With Simpol the European elections are critically important: the more MEPs elected who have pledged to introduce these policies, the sooner they will become reality. We are fortunate to already have a lead candidate who has signed the Simpol pledge.”</i></p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">In the Eastern Region, which includes Cambridge, Rupert Read, Green Party candidate said today: <i>“I have long been a signatory to Simpol, and hope that this election campaign will bring more power to your arm.”</i></p> <p style="margin: 0.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">For an updated list of candidates who are backing the Simpol campaign, see </p> <p style="margin: 0.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 11.0px Times New Roman">http://simpoleuroelection2009.blogspot.com</p> <p style="margin: 0.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Politicians from all parts of the political spectrum in the UK Parliament have signed the Simpol pledge and there is growing support in other countries. MPs are listed on the Simpol-UK website: http://www.simpol.org.uk/</p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">When the Simultaneous Policy was first proposed in John Bunzl's book with that title, veteran campaigner and author Noam Chomsky commented: <i>"It's ambitious and provocative. Can it work? Certainly worth a serious try."</i> </p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">For further information contact Mike Brady on 07986 736179.</p> <p style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 14.0px Times New Roman"><b>Notes: </b></p> <ol style="list-style-type: decimal"> <li style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">The campaign is coordinated by the International Simultaneous Policy Organisation (ISPO) - see <a href="http://www.simpol.org/"><span style="font: 11.0px Times New Roman">http://www.simpol.org/</span></a>. Simpol-UK is a not-for profit company formed in 2004 – see <a href="http://www.simpol.org.uk/"><span style="font: 11.0px Times New Roman">http://www.simpol.org.uk/</span></a></li> <li style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Simpol's starting point is that we live in pseudo-democracies because governments are limited in the action they can take as they fear disinvestment and loss of jobs if they introduce policies which are distasteful to transnational corporations and financial markets. Human rights and the environment take second place to what is best for 'the economy' and voters become increasingly apathetic, it is argued. Simpol puts 'we, the people' in charge of deciding the global rules which shape our world and the campaign strategy compels politicians to implement that package of policies when all, or sufficient, other governments have also pledged to do so. Simultaneous implementation removes the threat of disinvestment. </li> <li style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Any Adopter can put forward a proposal after gathering the required number of seconders. The top policies in the last annual vote are given in the policy zone of <span style="font: 11.0px Times New Roman">www.simpol.org.uk</span>. Policy titles are </li> </ol> <ul style="list-style-type: disc"> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Contraction and Convergence (for addressing climate change): 78%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">World Transnational Corporation Regulatory Authority: 69%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Beyond GDP: 64%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">International Clearing Union: 63%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">The Oil Depletion Protocol: 63%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">A Defensive Defence Policy: 61%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Nuclear Disarmament: 60%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">The Tobin Tax: 57%</li> <li style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Remodelling Companies to Become Stakeholder-Governed Organisations: 53%</li> </ul> <p style="margin: 0.0px 0.0px 0.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman; min-height: 15.0px"><br /></p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">Adopters were also asked to vote on issues, giving the top tem as:</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman; min-height: 15.0px"><br /></p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">1. Climate change</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">2. The power of transnational corporations</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">3. Environment</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">4. International financial markets and other</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">financial issues</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">5. Governance (global and national)</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">6. The system of international trade</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">7. Human Rights</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">8. Understanding between peoples</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">9. Disarmament</p> <p style="margin: 0.0px 0.0px 0.0px 35.4px; line-height: 5.0px; font: 12.0px Times New Roman">10. Conflict resolution</p> <ol style="list-style-type: decimal"> <li style="margin: 5.0px 0.0px 5.0px 0.0px; line-height: 5.0px; font: 12.0px Times New Roman">Cambridge Simultaneous Policy Adopters’ Group (CAMSPAG) has contacted all parties known to be fielding candidates in the Eastern Region for the European Parliament election and will issue updates as additional candidates sign the candidate's pledge. </li> </ol> <p style="margin: 0.0px 0.0px 10.0px 0.0px; font: 11.0px Times New Roman; min-height: 12.0px"><br /></p>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-51013405313764278492009-04-26T12:10:00.006+01:002009-04-26T13:13:49.034+01:00The Simultaneous Policy campaign creates networking opportunitiesThe Simultaneous Policy campaign provides a democratic space for discussing how to address the global problems we face. It is a place to meet people, share and develop ideas and have your ideas reach a wider audience beyond the Simpol campaign.<br /><br />The space exists in the virtual world, with the discussion forum and email lists, and the real world, with local groups, policy fora and events such as the recent street party in Brighton and participation in G20 demonstrations. Here's a picture of Barnaby Flynn with his moveable stall at the G20. I found this on the BBC website.<br /><br /><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUCBW7M7P4qEmqb2I0ByPwlOkZ3vZhNMugT67emdNFQ8rlJbxI2BeUT1zhqQwpIadWZC5uQb2umhlpdcCfHV5exG6CkK-rRrRRTAdcAEI4PN3X053sFEX0B2elbGc0eUFEFWN97HO9m4Y/s1600-h/barnabyg20march09.jpg"><img id="BLOGGER_PHOTO_ID_5328961898999111890" style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 220px; CURSOR: hand; HEIGHT: 300px; TEXT-ALIGN: center" alt="" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUCBW7M7P4qEmqb2I0ByPwlOkZ3vZhNMugT67emdNFQ8rlJbxI2BeUT1zhqQwpIadWZC5uQb2umhlpdcCfHV5exG6CkK-rRrRRTAdcAEI4PN3X053sFEX0B2elbGc0eUFEFWN97HO9m4Y/s320/barnabyg20march09.jpg" border="0" /></a><br /><br />The annual vote on policies to be included in the Simultaneous Policy is a particularly fruitful time for making contact with people, if you are active in promoting the policies you back.<br /><br />I made contact with Álvaro de Regil Castilla of the <a href="http://www.jussemper.org/">Jus Semper Global Alliance</a>, which promotes the Living Wages North and South Initiative. I was invited to contribute a paper on my proposal for a World Transnational Corporation Regulatory Authority (WTNCRA) to the Jus Semper publication. This can be downloaded by clicking:<br /><a href="http://www.jussemper.org/Resources/Corporate%20Activity/Resources/MBradyWTNCRA.pdf">http://www.jussemper.org/Resources/Corporate%20Activity/Resources/MBradyWTNCRA.pdf</a><br /><br /><a href="http://www.jussemper.org/Resources/index2.gif"><img style="DISPLAY: block; MARGIN: 0px auto 10px; WIDTH: 183px; CURSOR: hand; HEIGHT: 243px; TEXT-ALIGN: center" alt="" src="http://www.jussemper.org/Resources/index2.gif" border="0" /></a><br /><p>The paper has also been published in Spanish. </p><p>This has helped raise awareness of my proposal further afield. The paper has been added to the Eldis website, which is a resource database of the Institute of Development Studies, Sussex University:<br /><a href="http://www.eldis.org/go/topics/resource-guides/corporate-responsibility&id=42900&type=Document">http://www.eldis.org/go/topics/resource-guides/corporate-responsibility&id=42900&type=Document</a></p><p>Not only that, but it has been highlighted in the Eldis email updates. In turn, I have seen that the Eldis link has been sent to the OECD Watch email list. This is just over the past couple of days.</p><p>I think this shows there is a receptive audience for proposed solutions for global problems. Simpol encourages us to develop these and can actively link Adopters together to discuss a work in progress. You can post a work in progress to the Simpol forum at:<br /><a href="http://www.simpol.org.uk/forum/">http://www.simpol.org.uk/forum/</a></p><p>And, of course, as the proposals are distributed, so is information on the Simpol campaign as a way to make them a reality.</p><p></p>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-78447038298715108952009-03-28T11:55:00.004+00:002009-03-28T12:56:04.260+00:00Global governance at the G20: protest on the outside, national self interest on the inside. Where will the solutions we need come from?Simultaneous Policy Adopters are planning a visible presence at protests in London today in advance of the G20 summit.<a href="http://www.guardian.co.uk/world/2009/mar/28/g20-protest-police-rainbow-alliance"></a><div><a href="http://www.guardian.co.uk/world/2009/mar/28/g20-protest-police-rainbow-alliance">http://www.guardian.co.uk/world/2009/mar/28/g20-protest-police-rainbow-alliance</a><div><br /></div><div>Many other groups are also to be there. The Guardian reports disparate groups are setting aside their differences to protest.</div><div><br /></div><div>And there is the nub of the problem of the Global Justice Movement in my view. It can unite in opposition, but has no real mechanism for debate and building consensus on alternatives. It has struck me at the European Social Forums I have attended that those seeking democratic discussion are frustrated; the slogan may be 'another world is possible', but there is no route map for bringing it about.</div><div><br /></div><div>Even amongst campaign coalitions such as the Trade Justice Movement, I have seen how policy aspirations have to be scaled back to what is politically achievable: it is a piece meal approach that wins important concessions, but nothing like the sweeping changes advocated. A broad coalition campaigning in the UK for corporate accountability measures had to celebrate as a victory a requirement that corporations report on their social and environmental impacts; indeed, it was a significant victory given the scale of political opposition. Yet there are no standards for the reports, nor sanctions if companies lie. Perhaps those will be achieved in the decades to come once the reporting principal has bedded in. That is the best hope on offer through conventional campaigning. On climate change, some campaigners are already voicing fears that the lack of progress means there is no hope left: runaway climate change could be unavoidable.</div><div><br /></div><div>It is such concerns that fuel my support for the Simultaneous Policy approach, which provides a structure for discussing, developing and approving the policies needed to address global problems. My own proposal, which gained good support in the last voting round, is for a World Transnational Corporation Regulatory Authority, something with real teeth to ensure corporations comply with the human rights and environmental standards their glossy reports claim to respect and means to ensure governments play their part in regulating wayward corporations. See:<a href="http://globaljusticeideas.blogspot.com/2008/07/world-tnc-regulatory-authority.html"></a></div><div><a href="http://globaljusticeideas.blogspot.com/2008/07/world-tnc-regulatory-authority.html">http://globaljusticeideas.blogspot.com/2008/07/world-tnc-regulatory-authority.html</a></div><div><br /></div><div>Other top issues and policies are given in the youtube clip below.</div><div><br /></div><div>Simultaneous Policy Adopters call on politicians to pledge to implement, alongside other governments, the policies agreed on by we, the people, of the world. Simultaneous implementation removes the principal obstacle to progress: the fear that unilateral action will put a country at a competitive disadvantage, harm its economy and lose political leaders their power. It breaks the power of vested interests to play one country of against another. </div><div><br /></div><div>The democratic process and the undertaking by Adopters to give a voting preference at elections to candidates who have made the pledge overcomes the second obstacle: the influence of vested interests on the political process. Business leaders may gain privileged access to politicians, but their hold on setting policies to address global problems is broken.</div><div><br /></div><div>Some politicians have already signed up, as much for the logic of the approach as the chance to pick up votes. When I briefed one MP on the strategy she immediately saw the point, having campaigned without success for aviation fuel to be taxed as other fuels; such a tax, the government argues, would shift air transport from London to Paris or Amsterdam. But not if introduced simultaneously. She returned the signed pledge a few months later.</div><div><br /></div><div>Even the UK Prime Minister, Gordon Brown, sees the point of simultaneous action even if the Simultaneous Policy is not yet on his radar. Look at what he was saying in New York this week, as reported in The Guardian:<a href="http://www.guardian.co.uk/politics/2009/mar/28/gordon-brown-g20-summit"></a></div><div><a href="http://www.guardian.co.uk/politics/2009/mar/28/gordon-brown-g20-summit">http://www.guardian.co.uk/politics/2009/mar/28/gordon-brown-g20-summit</a></div><div><br /></div><div>---</div><div><p class="MsoNormal">"Global problems will need better global solutions. In the wake of the second world war, we managed to create an IMF [International Monetary Fund], a World Bank, a WTO [World Trade Organisation], a Marshall Plan. We had the capacity with vision and determination to create institutions based on the principle that for prosperity to be sustained it had to be shared and we had to have mechanisms by which we brought the whole world into this enterprise.</p><p class="MsoNormal"><o:p></o:p></p> <p class="MsoNormal">"I think we need the same vision now to say the IMF was built for the days when you were dealing with balance of payments problems of individual countries in essentially a national set of economies. Now we've got a global market place, global competition, global flows of capital, global sourcing of goods.</p><p class="MsoNormal"><o:p></o:p></p> <p class="MsoNormal">"The institutions you need to deal with these problems are going to be quite different for this new era, so we must shape them."</p><p class="MsoNormal">---</p><p class="MsoNormal">Well, that's great, but if the G20 is capable of the vision and agreement to achieve these new institutions, what guarantee is there that they will not be as divisive and flawed as the IMF and World Bank and the structural adjustment policies they forced developing countries to adopt? Ironically the IMF, controlled by rich nations, has in the past pressured developing countries not to intervene to protect their banking systems, saying they must be allowed to fail; when it suits them, rich countries do not follow the rules they impose on others.</p><p class="MsoNormal">The answer is, of course, that there is no guarantee. Even if it works, the vision is still for perpetual growth on a planet that already cannot support the demands placed upon it.</p><p class="MsoNormal">While the Simultaneous Policy campaign cannot offer guarantees about the policies developed in the democratic space it provides, the fact that people around the world are invited to participate in the process, shape the policies and vote on them does provide checks and balances missing from the rich countries' club.</p><p class="MsoNormal">The G20 will see campaigners united in opposition on the outside and leaders inside protecting their individual national interests when we need coordinated, coherent and effective action.</p></div><div>If all involved backed the Simultaneous Policy approach, at the very least as a parallel strategy, we might get somewhere. Global problems require global solutions, but they also merit global involvement of citizens in deciding those solutions.</div><div><br /></div><div>You can take part by signing up as a Simultaneous Policy Adopter free of charge at:</div><div><a href="http://www.simpol.org/">http://www.simpol.org/</a></div><div><br /></div><div>This clip gives information on the state of policies at the moment. As an Adopter you will be able to vote against any you don't like and put forward and support those that you do.<br /><object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/iJmFQhxj5Y8&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1"><param name="allowFullScreen" value="true"><embed src="http://www.youtube.com/v/iJmFQhxj5Y8&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" width="425" height="344"></embed></object></div></div>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-83696224772830256502009-03-23T13:27:00.002+00:002009-03-23T13:28:53.653+00:00Put People First March - London 28 March 2009. 11:00 - 16:00.From Simpol-UK<br /><br /><strong>Put People First March</strong><br />Saturday 28th March, London<br />11:00 - 16:00 Victoria Embankment to Hyde Park<br />Nearest tubes - Embankment, Waterloo, Temple<br /><br />We have harmonicas, amped loop stations, beat boxers, bass guitars and sensible ideas; so bring yourselves, voices, instruments and enthusiasm.<br /><br /><strong>How do want the world to be? (Rap)</strong><br /><br />Let's write the next chapter of history.<br />Become our own world leaders<br />Our own global authority, by signing up to Simpol for free!<br />So what is your policy? X3<br /><br />Governments issue interest free money internationally?<br />To finance existing CO2 neutral technology?<br />Job creation re-mechanisation of the global industry?<br />To save us all from impending climate change catastrophe<br />And civilization break down, lack of energy security.<br /><br />Don't demand it, make it happen via the Simpol Voting Strategy!<br />Simpol is global co-operation for peace, justice sustainability and prosperity.<br /><br /><strong>Chorus<br /></strong><br />Sing-along "Let's Work Together"<br /><br />Together we stand, Divided we fall, Come on now people and let's get on the ball and<br />work together, Come on come on let's work together, Because together we will stand,<br />every boy, girl, woman and man."<br /><br />To get versed with this song see –<br /><a href="http://www.youtube.com/watch?v=MN7j-LCgaiE">http://www.youtube.com/watch?v=MN7j-LCgaiE</a><br /><br /><object height="344" width="425"><param name="movie" value="http://www.youtube.com/v/MN7j-LCgaiE&hl=en&fs=1"><param name="allowFullScreen" value="true"><param name="allowscriptaccess" value="always"><embed src="http://www.youtube.com/v/MN7j-LCgaiE&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object><br /><br />Sign up and invite others on Face Book - "Simpol Mobile Musical Street Stall Put People First March"<br /><br />For exact location on the day call Barnaby on 07799603042<br /><a href="mailto:barnaby@simpol.org">barnaby@simpol.org</a>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-24259085270842175412009-03-19T12:36:00.005+00:002009-03-19T13:25:47.523+00:00We should have acted on climate change yesterday - please do so todayAt the end of 2009 our leaders will meet in Copenhagen to agree a successor to the Kyoto Protocol for addressing climate change. On past experience, they will stress the need for urgent action and do little, fearing the steps necessary are to unpalatable for their citizens. And it is short-term considerations and the fear of losing power that drives them, that and the industrialists whispering in their ears threatening disinvestment and loss of jobs while pushing a wadge of money into their election campaign chests.<br /><br />Climate change scientists have been meeting in Copenhagen to discuss the latest scientific findings. It is scary stuff. Cutting greenhouse gas emissions to zero today would not be enough: the gases in the system are already having an impact and will continue to do so. Limiting mean global temperature increases to 2C is likely a lost battle. Much above this and the human race itself is facing defeat. Here is part of the analysis from George Monbiot in The Guardian yesterday:<br /><a href="http://www.guardian.co.uk/commentisfree/2009/mar/17/monbiot-copenhagen-emission-cuts">http://www.guardian.co.uk/commentisfree/2009/mar/17/monbiot-copenhagen-emission-cuts</a><br /><br />---<br />The Intergovernmental Panel on Climate Change says that "global mean temperature changes greater than 4C above 1990-2000 levels" would "exceed ... the adaptive capacity of many systems". At this point there's nothing you can do, for instance, to prevent the loss of ecosystems, the melting of glaciers and the disintegration of major ice sheets. Elsewhere it spells out the consequences more starkly: global food production, it says, is "very likely to decrease above about 3C". Buy your way out of that.<br /><br />And it doesn't stop there. The IPCC also finds that, above 3C of warming, the world's vegetation will become "a net source of carbon". This is just one of the climate feedbacks triggered by a high level of warming. Four degrees might take us inexorably to 5C or 6C: the end - for humans - of just about everything.<br />---<br /><br />In its last drought, the Amazon rainforest is calculated to have emitted more carbon dioxide than Japan and Europe combined. With more disruption to the climate, droughts will become increasingly common and severe. See:<br /><a href="http://www.guardian.co.uk/commentisfree/2009/mar/17/monbiot-copenhagen-emission-cuts">http://www.guardian.co.uk/commentisfree/2009/mar/17/monbiot-copenhagen-emission-cuts</a><br /><br />Our leaders have failed us and may well fail us again in Copenhagen. There are two things that you can do about this.<br /><br />Firstly, join in marches to put pressure on the leaders of the main industrialised nations meeting at the G20 in London. There are various groups organising things. One is AVAAZ. For details see:<br /><a href="http://www.avaaz.org/en/london_citizens_march_28/">http://www.avaaz.org/en/london_citizens_march_28/</a><br /><br />Secondly, call on politicians to pledge to implement the Simultaneous Policy alongside other governments. The measures that are needed to address climate change are being discussed within the democratic space created by Simpol. Anyone can join in by signing up as a Simpol Adopter, which is free to do. Adopters can propose, discuss and vote on proposals. In the last annual vote climate change came out as the top issue and 'Contraction and Convergence' to deal with it as the top issue. See:<br /><a href="http://www.simpol.org/">http://www.simpol.org/</a> - to sign up.<br /><br /><a href="http://www.simpol.org.uk/forum/">http://www.simpol.org.uk/forum/</a> - to join in the discussion.<br /><br />Combine the two actions and go on a march with a Simpol placard. Hopefully Simpol will make resources available on the website.<br /><br />You can write to your elected representatives at any time. Or better still arrange a meeting. My Member of Parliament signed the Simpol pledge after a 10 minute briefing from me. A candidate in the European elections brought a signed pledge along to a local group meeting I invited her to. The more pledges from politicians, the sooner we get governments on board and the sooner implementation of the Simultaneous Policy can be triggered. If they let us down in Copenhagen and waste another decade, Simpol may be our best hope. Please support it as a parallel strategy to marching!<br /><br />The European Parliament elections are coming up, so now is a key time to contact the candidates. We cannot let these opportunities pass by. For information on how to do this, see:<br /><a href="http://globaljusticeideas.blogspot.com/2009/03/countdown-eu-election.html">http://globaljusticeideas.blogspot.com/2009/03/countdown-eu-election.html</a><br /><br />If we cannot move to constructive cooperation between nations to address climate change and other global problems, the future is bleak: nations battling for resources as food supplies diminish and mass movement of refugees leads to social breakdown.<br /><br />Better to contact your politicians now while there is still time.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com1tag:blogger.com,1999:blog-1934618693830151136.post-61676927199786468912009-03-17T12:04:00.005+00:002009-03-17T12:23:44.176+00:00Simpol visionariesA proposal was submitted for inclusion in the Simultaneous Policy in 2007 for 'Regulation of the Sale of Debt'.<br /><br />Proposer David Smith, wrote: "The level of defaults on 'sub prime' mortgages in the US affects world markets and possibly the real economies, because these debts are sold on without being understood by the purchaser. The panic has affected credit and interest rates everywhere. In an interdependent world this probably has more effect on third world economies than on us. Surely there could be some kind of regulation which would force banks to evaluate such transactions properly beforehand. Why hasnt the international financial community already set its house in order? I dont know but partly because it is not very farsighted, but also there is a lack of will."<br /><br />See:<br /><a href="http://www.simpol.org.uk/forum/index.php?topic=27.0">http://www.simpol.org.uk/forum/index.php?topic=27.0</a><br /><br />A year later, the international banking system collapsed and the world financial system would have ceased to operate had governments not stepped in.<br /><br />Good to see a Simultaneous Policy Adopter was way ahead in warning of this. Unfortunately the proposal gained insufficient support in voting in 2007 and dropped out of the process. David's proposal for the 'regulation of derivative markets' also failed to gain support:<br /><a href="http://www.simpol.org.uk/forum/index.php?topic=26.0">http://www.simpol.org.uk/forum/index.php?topic=26.0</a><br /><br />Which goes to show that the democratic space promoted by Simpol is a great place to look for visionary ideas, but also that people who see the point of ideas need to help in explaining them and encouraging other Adopters to support them. As David said on his proposal for regulating the sale of debt: "This suggestion needs input from someone who undertsands financial markets better than I do."<br /><br />Following the credit crunch, many journalists and others have investigated these issues and tried to explain them. If the proposal was resubmitted (perhaps in revised form) it would probably do much better in voting. There is now a requirement to have 9 seconders for proposals, which helps to beef up proposals and put together a team to promote them.<br /><br />Some proposals do perhaps deserve to drop out. Certainly there was little support for Esperanto being made the world language. But it is also worth revisiting some of those that did not catch the imagination of Adopters in past voting. The policy development process is one of reformulation and refinement. See all policies on the discussion board at:<br /><a href="http://www.simpol.org.uk/forum/">http://www.simpol.org.uk/forum/</a><br /><br />You can post your own 'work in progress' to gain help in developing it and to find seconders at: at:<br /><a href="http://www.simpol.org.uk/forum/index.php?board=32.0">http://www.simpol.org.uk/forum/index.php?board=32.0</a>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-71997201795337999192009-03-08T15:53:00.005+00:002009-03-08T16:13:46.639+00:00Countdown to the European Union elections 2009The election of the European Parliament will take place in less than three months (from 4 - 7 June 2009). These are the biggest trans-national elections in history as elected candidates will represent 500 million Europeans.<br /><br />It is also an ideal opportunity to encourage election candidates to sign the pledge to implement the Simultaneous Policy alongside other governments. No doubt the Simultaneous Policy organisations will be announcing the campaign and tools to help with this in due course.<br /><br />In the meantime, it is possible to find the list of election candidates on party websites. I have started sending message like the following to candidates:<br /><br />---<br />Congratulations on being the lead candidate on the party list for our regions European Election.<br /><br />I am contacting you to ask your position on the Simultaneous Policy campaign. I am also sending you the pledge form for supporting the Simultaneous Policy campaign in case you have not signed this already.<br /><br />As Gordon Brown and other leaders have been heard to say repeatedly in recent weeks and months: “Global problems require global solutions”.<br /><br />The Simultaneous Policy or Simpol campaign brings people together around the world to discuss, develop and approve the policies they wish to see implemented. Anyone can take part in this process by signing up as a Simpol Adopter, which is free to do. This democratic and transparent process is ongoing. In the last annual vote conducted in October 2008, the top five issues identified by Adopters were: Climate change, The power of transnational corporations, Environment, International financial markets and other financial issues, Governance (global and national).<br /><br />You can find further details in the policy section of <a href="http://www.simpol.org.uk/">http://www.simpol.org.uk/ </a><br /><br />Politicians are asked to sign a pledge agreeing in principle to implement these policies alongside other governments when all, or sufficient, other governments have made the same pledge. Until such time that implementation can be triggered, it is business as usual: doing as much as we can unilaterally, while trying to address these pressing issues through attempting to forge international deals and facing down powerful vested interests that play governments off against each other, threatening disinvestment if their agenda is not followed.<br /><br />If you add your pledge to those already received from other politicians at both national and European level it will move us closer to being able to implement policies that have the backing of the people of the world. The Simultaneous Policy is to be coherent package that can break through the obstacle of destructive competition between nations to move the world into a new era of constructive cooperation. The pledge is provisional as the policies can only be finalised when there is sufficient global support as they need to address the situation faced at that time and all people of voting age will be given a chance to approve or reject the package.<br /><br />The campaign is undeniably ambitious, but conventional policy making has failed to address global problems adequately and may be unable to do so. By signing and returning the attached pledge you are indicating you are prepared to give the Simultaneous Policy approach a try as a parallel strategy. The pledge can also be downloaded from:<br /><a href="http://www.simpol.org.uk/Pages/PDF/candidatesform0108.pdf">http://www.simpol.org.uk/Pages/PDF/candidatesform0108.pdf</a><br /><br />Adopters undertake to encourage their preferred party to support the campaign. Those without a party preference undertake to give a preference to any candidates at elections (within reason) who have signed the pledge. Hence the campaign makes addressing global problems an election issue and signing the pledge can provide an advantage to those candidates that have done so. In the run up to the election, Simpol’s website will indicate which candidates have signed the pledge.<br /><br />Please let me know if you will sign the pledge and if so, any statement of support you would like to communicate to voters in our region. If you do not wish to sign the pledge, I would be interested to know why as I can see no disadvantage from signing. As global problems threaten to run out of control, it is surely worth a try.<br /><br />Global problems do indeed require global solutions. It will be wonderful if those are introduced in the immediate future. But if that does not happen it will be wonderful to know that the Simultaneous Policy approach has your support as a parallel strategy.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-35878455501800789402009-03-07T17:50:00.001+00:002009-03-07T17:52:30.090+00:00The Amazon rainforest is wobbling on a climate change tipping pointOn 28 February 2007 I heard Aubrey Meyer of the Global Commons Institute speak on his proposal for addressing climate change: Contraction and Convergence.<br /><br />He spoke of climate change tripping points, citing in particular the risk that the Amazon rain forest could dry out to such an extent that it becomes a net producer of carbon dioxide. In other words, it would change from being a carbon sink to a carbon source. He said that an increase in forest fires (not at all common in a rain forest) had already been noticed.<br /><br />Well there is a report yesterday that during a drought in 2005 the Amazon was a significant producer of carbon dioxide due to tree death. There is a report here:<br /><a href="http://planetearth.nerc.ac.uk/news/story.aspx?id=351">http://planetearth.nerc.ac.uk/news/story.aspx?id=351</a><br /><br />---extract<br />The unusual and severe Amazon drought in 2005 led to the region emitting an extra five billion tonnes of carbon dioxide to the atmosphere. This exceeds the annual emissions of Europe and Japan combined, according to new research published today.<br />---extract ends<br /><br />Previously I have written here about efforts to protect the Amazon from deforestation. The Brazilian government has set up an Amazon fund to this end. If the Simultaneous Policy (or other means of forming global policies) bring in polluter-pays taxes, some of these could go to such a fund. See:<br /><a href="http://globaljusticeideas.blogspot.com/2008/08/amazon-fund.html">http://globaljusticeideas.blogspot.com/2008/08/amazon-fund.html</a><br /><br />But we should be very afraid because it was not deforestation as such that caused the Amazon to be a carbon source in 2005, it was climate change itself. As the climate changes, weather patterns become unstable, leading to droughts and flooding, unprecedented heat waves and cold snaps. The destruction of trees that took decades, if not centuries, to develop is not something that can easily be reversed. More carbon dioxide is released and there are less trees to absorb it. Weather becomes more extreme, and so on in a positive feedback cycle that could run away.<br /><br />The 100 months campaign has suggested there is a very narrow and closing window for the necessary action: it has now closed to 93 months. Certainly this is a campaign strategy designed to galvanize action, nobody can be so precise. But this research suggests the tipping point on which the Amazon forest pivots is already starting to wobble.<br /><br />NOTE: I recorded Aubrey Meyer and other speakers at the event in 2007 and subsequently played his talk at a virtual meeting in Second Life (international meetings without air travel), see:<br /><a href="http://luzoorbit.blogspot.com/2007/03/report-on-climat-change-event-on-11.html">http://luzoorbit.blogspot.com/2007/03/report-on-climat-change-event-on-11.html</a><br /><br />You can hear the talk on the rolling programme of Second Life Simultaneous Policy Adopters' Group (SL-SPAG) radio at:<br /><a href="http://www.live365.com/stations/luzoorbit/">http://www.live365.com/stations/luzoorbit/</a>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-72770191289984051972009-03-03T22:35:00.004+00:002009-03-03T23:04:59.706+00:00Gordon Brown calls on Obama to join a global crack down on tax havensOnce again Gordon Brown is calling for synchronised action by governments to address a global problem, this time on tax havens.<br /><br />According to a report in The Guardian today, he is seeking support from the US and other G20 countries and suggesting that countries that do not cooperate should be sanctioned:<br /><a href="http://www.guardian.co.uk/politics/2009/mar/03/gordon-brown-tax-havens">http://www.guardian.co.uk/politics/2009/mar/03/gordon-brown-tax-havens</a><br /><br />---<br />Gordon Brown has said he hopes the G20 summit in London will agree to name and shame those countries that refuse to end banking secrecy, warning that their behaviour endangers the stability of the world economy.<br />---<br /><br />The suggestion is countries will be put on a blacklist: "Countries on the list are put at a disadvantage in terms of mutual cooperation and recognition of jurisdictions."<br /><br />There could be a stronger enforcement regime. In my proposal for a World Transnational Corporation Regulatory Authority, I propose that governments that seek to gain competitive advantage by allowing their corporations to abuse human rights and the environment anywhere in the world could have punitive sanctions levied upon them. Such an approach has worked to enforce World Trade Organisation agreements. See:<br /><a href="http://www.simpol.org.uk/forum/index.php?topic=31.0">http://www.simpol.org.uk/forum/index.php?topic=31.0</a><br /><br />With the Simultaneous Policy process, proposals are developed transparently and democratically, unlike the way global policies are usually developed. Back room (or Green room) deals, economic blackmail and other forms of threats are used by the powerful to force through their agenda.<br /><br />No proposals on tax havens have been put forward for inclusion in the Simultaneous Policy as yet. Whether those of Gordon Brown are the best on offer is debatable, and should be debated. Other proposals are being put forward by the Tax Justice network. See:<br /><a href="http://www.taxjustice.net/cms/front_content.php?idcat=2">http://www.taxjustice.net/cms/front_content.php?idcat=2</a><br /><br />Anyone who has signed up as an Simultaneous Policy Adopter can put forward proposals. Simply go to the 'policy' section of:<br /><a href="http://www.simpol.org.uk/">http://www.simpol.org.uk/</a><br /><br />Adopters call on politicians to pledge to implement the Simultaneous Policy alongside other governments when all, or sufficient, have made the same pledge. Adopters call on their preferred party to sign the pledge, or if they do not have one, all parties to do so, giving a preference to any (within reason) that does so.<br /><br />Gordon Brown is right to say that global problems need global solutions. But in a globalised world, democratic involvement in developing those global solutions is required. That is what the Simultaneous Policy aims to provide.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-87878074026218072632009-02-22T16:05:00.005+00:002009-02-22T22:16:28.539+00:00Gordon Brown calls for global regulation, but what about democracy and transparency?The logic of the Simultaneous Policy approach to addressing global problems - at least the Simultaneous part of it, if not the democracy and transparency - becomes ever more prominent during the current global financial crisis.<br /><br />Gordon Brown, writing in today's Guardian, states:<br /><a href="http://www.guardian.co.uk/commentisfree/2009/feb/22/gordon-brown-comment-banks">http://www.guardian.co.uk/commentisfree/2009/feb/22/gordon-brown-comment-banks</a><br /><br />"All markets and all jurisdictions that want to benefit from the global economy should play by the global rules. Institutions with global reach should be regulated in a global way, not by a patchwork of national regulators."<br /><br />I agree, to a point. In my proposal for a World Transnational Corporation Regulatory Authority (which is conceived more to end human rights and environmental abuses than regulate financial markets), I suggest that the first port of call should be the national juridsticion, particularly of the home country of the firm. If home countries refuse to act, because they gain income and tax revenue from the business, and the country were the abuse takes place does not act, perhaps fearing disinvestment, then there should be recourse to an international institution. My suggestion is the World TNC Regulatory Authority, which can present a case to a revamped International Criminal Court for sanctions on the corporation and, perhaps, the home government that profited from turning a blind eye. For more on this proposal click on the tag link in the side panel.<br /><br />Mr. Brown vision at present seems to be restricted to financial systems, where the logic for some form of global regulation arises from the cross-border nature of the business, rather than the simple power of the companies to play fast and loose with their human rights obligations and face down governments who try to hold them to account.<br /><br />But Mr. Brown also makes a telling comment in his article. One which places too much faith in current systems of corporate governance. He states: "Banks must act in the long-term interests of their shareholders and therefore of the economy as a whole, not in the short-term interests of bankers."<br /><br />This is really an non-sequeter. Benefits for shareholders may not be the same as benefits for the economy. For example, shareholders will benefit if a bank uses every tax dodge it can think of to maximise profits and lobbies, through fair means or foul, to stymie efforts for effective regulation.<br /><br />More broadly, shareholders may benefit from corporations abusing human rights and the environment. I've had the shocking experience of sitting in a Nestle shareholder meeting when shareholders have booed and hissed anyone who has the affrontery to keep them from their free junk food samples by raising concerns about pushing of baby milk, exploitation of coffee and cocoa farmers, depletion of water reserves or trade union busting. See:<br /><a href="http://boycottnestle.blogspot.com/2007/04/glimpse-of-nestls-soul.html">http://boycottnestle.blogspot.com/2007/04/glimpse-of-nestls-soul.html</a><br /><br />Shareholders serving their own interests does not 'therefore' benefit the rest of us, as Mr. Brown suggests.<br /><br />But he is right in suggesting global problems need global solutions. Those solutions should be the subject of democratic scrutiny. That is the aim of the Simultaneous Policy. Perhaps Mr. Brown should take a look.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-35458956378569901772009-02-10T10:08:00.004+00:002009-02-10T10:22:49.279+00:00World TNC Regulatory Authority article in Jus Semper newsletter (English and Spanish)During the annual voting on policies for inclusion in the Simultaneous Policy last year, I was fortunate to make contact with the Jus Semper Global Alliance for wage equality and was invited to submit an article for their newsletter on my policy proposal for a World Transnational Corporation Regulatory Authority.<br /><br />This appears in the new Jus Semper newsletter, Winter 2009, which is available at:<br /><a href="http://www.jussemper.org/Newsletters/ournewsletters.html">http://www.jussemper.org/Newsletters/ournewsletters.html</a><br /><br />Many thanks to the editor, Álvaro de Regil Castilla, for arranging this and the translation of the article into Spanish.<br /><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://www.jussemper.org/Newsletters/Resources/ournew9.gif"><img style="margin: 0px auto 10px; display: block; text-align: center; cursor: pointer; width: 199px; height: 259px;" src="http://www.jussemper.org/Newsletters/Resources/ournew9.gif" alt="" border="0" /></a><br />I strongly believe that it is through discussing and sharing the real changes that the Simultaneous Policy can bring that we will reach more people and involve them in the campaign. The World TNC Regulatory Authority gained good support in the last voting round, being the second-best supported policy and to continue to do well, it will need ever greater support, so promoting policies is a two way street: promoting policies brings people to the Simpol campaign and helps to grow support for this approach; at the same time, individual Adopters can rally future voters for their proposals.<br /><br />In this case, those interested in promoting the World TNC Regulatory Authority have a valuable resource to use in their campaigning, which is being added to my blog. Of course, Jus Semper also benefits through having their wage equality proposals promoted to a wider audience at the same time. Perhaps a member of that campaign will put them forward for inclusion in Simpol in time for the next voting round and encourage Jus Semper supporters to sign up as Adopters to vote for them.<br /><br />The problems the world faces seem ever more pressing, so the more we can focus on solutions and the role Simpol can play in making them reality, the faster we will make progress.<br /><br />After reading the article, feel free to leave comments on the World TNC Regulatory Authority in Simpol’s discussion forum at:<br /><a href="http://www.simpol.org.uk/forum/index.php?board=30.0">http://www.simpol.org.uk/forum/index.php?board=30.0</a>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-89549696027494076062009-01-19T11:58:00.005+00:002009-01-19T12:27:27.063+00:00President Obama urged to use carbon tax, not carbon trading, to address climate changeAs the era of President Obama dawns, the top climate change scientist in the US has warned he has to take decisive action in his first term.<br /><br />As I have suggested here before, the 'carbon trading' approach pushed by Europe is having little effect. For example, it is far cheaper to pay the Congo not to cut down trees than to invest in carbon capture development for power stations. The net result being that carbon dioxide in the atmosphere continues to rise. See:<br /><a href="http://globaljusticeideas.blogspot.com/2008/08/clean-coal.html">http://globaljusticeideas.blogspot.com/2008/08/clean-coal.html</a><br /><br />Here's what caught my eye in the Guardian report of the comments from Jim Hansen, described as "Nasa scientist and leading climate expert":<br /><a href="http://www.guardian.co.uk/environment/2009/jan/18/jim-hansen-obama">http://www.guardian.co.uk/environment/2009/jan/18/jim-hansen-obama</a><br /><br />---<br />Only the US now had the political muscle to lead the world and halt the rise, Hansen said. Having refused to recognise that global warming posed any risk at all over the past eight years, the US now had to take a lead as the world's greatest carbon emitter and the planet's largest economy. Cap-and-trade schemes, in which emission permits are bought and sold, have failed, he said, and must now be replaced by a carbon tax that will imposed on all producers of fossil fuels.<br />---<br /><br />The advantage of a carbon tax is that it enables policy makers to set a price for producing greenhouse gases that will make reducing emissions economically viable. With market-derived prices for licences for the right to pollute, it is proving to be more economic to buy the licences rather than reduce emissions. Though it seems to me it would be better to levy this on carbon emitters, rather than the producers of fossil fuels. That will drive efficiencies in use of fossil fuels as well as switching to other sources of energy. It may, however, be harder and more controversial to measure.<br /><br />Another advantage of a tax on fossil fuels or the greenhouse gases they produce is tax income can be used directly for investing in sustainable energy, carbon capture and ameliorating the effects of climate change.<br /><br />A third advantage is that carbon taxes, to a greater or lesser degree, could be used to offset other taxes. For example, green goods could be zero rated for sales tax, providing an added incentive for consumers to select them - and, incidentally, helping the economy out of recession as society is restructured to be low carbon.<br /><br />These are the type of practical, national policy steps that could be taken within the framework of global commitments to contract total emissions, while converging the right each person on the planet has to produce greenhouse cases to be equitable. This 'contraction and convergence' approach is the best-supported proposal for inclusion in the Simultaneous Policy's annual voting yet again. See:<br /><a href="http://www.simpol.org.uk/forum/index.php?board=14.0">http://www.simpol.org.uk/forum/index.php?board=14.0</a>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com1tag:blogger.com,1999:blog-1934618693830151136.post-86327387059265732902009-01-09T10:35:00.004+00:002009-01-09T11:04:38.515+00:00Quantitative easing, monetary reform and green creditIn the current financial crisis it has been proposed that the Bank of England print money to lubricate the economy. This is referred to as 'quantitative easing'. This proposal has received a lot of criticism, dubbed in the press as 'helicopter money' with pictures of bankers throwing money for people to spend to avoid recession. The allegation is such action would devalue the pound, with Zimbabwe's currency collapse and hyperinflation cited as a cautionary tale.<br /><br />But, as I have raised here, monetary reformers propose something very much like this. They point out that new money, required as the economy expands, is currently created by commercial banks at a profit as interest-bearing loans. They propose that central banks take over the role and provide the money to governments to spend into circulation through investment in capital projects or by funding tax cuts.<br /><br />Monetary reform proposals didn't do well enough in the last annual vote to stay in the process - I think due to the apparent contradiction between the claim that commercial banks create money out of nothing and credit drying up. See:<br /><a href="http://www.simpol.org.uk/forum/index.php?topic=7.0">http://www.simpol.org.uk/forum/index.php?topic=7.0</a><br /><br />I've been looking for those who know more about this subject than I do to explain more about quantitative easing and how it links with monetary reform proposals. So I was very pleased to receive the following email from Barbara Panvel and links from Sabine McNeill of the <a href="http://greencredit.org.uk/">Green Credit</a> campaign, which I am off to explore.<br /><br />I hope that the monetary reform proposals come back stronger and clearer. Anyone interested in working up a proposal can do so in the 'work in progress' of Simpol's online forum. See:<br /><a href="http://www.simpol.org.uk/forum/index.php?board=32.0">http://www.simpol.org.uk/forum/index.php?board=32.0</a><br /><br />---Email from Barbara<br /><br />Will the opportunity offered by the current dialogue about ‘quantitative easing’ - a term first noticed by me a couple of months ago - be taken by people working on the Green New Deal?<br /><br />The definition of quantitative easing given by those with a vested interest in opposing such measures is ‘printing money’ and warnings are given citing the example of Zimbabwe.<br /><br />Philip Stephens, associate editor of the Financial Times, does not agree, describing printing money as ‘the new prudence’ now that the Washington consensus has been fractured.<br /><br />However, printing and distributing banknotes – once suggested by Milton Friedman and the Fed's chairman, Ben Bernanke - is not on the agenda of most monetary reformers.<br /><br />MP Austin Mitchell has for years consistently and constructively proposed to spend fiat money, issued electronically, into circulation in a focussed way, meeting unfulfilled public needs such as improving transport, education and health provision – and the range of measures advocated in the Green New Deal.<br /><br />In November 07, his <a href="http://edmi.parliament.uk/EDMi/EDMDetails.aspx?EDMID=34372&SESSION=891">EDM 265</a> called for a policy of using publicly-created money to finance carbon neutral measures and conversions which could be adopted to create additional economic growth and recommended the Treasury to use its powers to create non-interest bearing money to fund activities to combat climate change.<br /><br />The real issue is not one of bank-notes versus virtual money but of the uses to additional ‘liquidity’ could be put: as Andrew Lydon once pointed out, money issued in this way could be used for good or ill.<br /><br />To date, Alistair Darling has not ruled out quantitative easing, so I hope that readers will press for the funds released to be used in the interests of the ‘real’ economy and the environment - and not to give further subsidies to the arms trade or to build incinerators and nuclear power stations.<br /><br />---email ends<br /><br />---Links provided by Sabine McNeill<br /><br /><span style="font-weight: bold;">Money Supply or Public Credit Petition</span><br /><a href="http://www.gopetition.co.uk/petitions/stop-the-cash-crumble-to-equalize-the-credit-crunch.html">http://www.gopetition.co.uk/petitions/stop-the-cash-crumble-to-equalize-the-credit-crunch.html</a><br />Parliamentary Scrutiny via the Treasury Select Committee.<br /><br /><span style="font-weight: bold;">Money as Debt also known as Credit </span><br /><a href="http://moneyasdebt.wordpress.com/">http://moneyasdebt.wordpress.com/</a><br /><span style="font-weight: bold;"> </span><br /><span style="font-weight: bold;">Green Credit for Green Purposes </span><br /><a href="http://greencredit.files.wordpress.com/2007/01/green-credit.pdf">http://greencredit.files.wordpress.com/2007/01/green-credit.pdf</a><br />our submission to the Committee’s Inquiry into the Stern Report<br /><br /><span style="font-weight: bold;">Green Credit campaign</span><br /><a href="http://greencredit.org.uk/">http://greencredit.org.uk/</a><br /><br /><span style="font-weight: bold;">In the Spirit of the Forum for Stable Currencies </span><br /><a href="http://www.forumnews.wordpress.com/">http://www.forumnews.wordpress.com/</a><br /><br /><span style="font-weight: bold;">Forum for Stable Currencies </span><br /><a href="http://www.forumforstablecurrencies.org.uk/">http://www.forumforstablecurrencies.org.uk/</a><br /><br /><span style="font-weight: bold;">Expanding Dr. Yunus' Sphere of Influence </span><br /><a href="http://yunusphere.net/">http://yunusphere.net/</a>Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com1tag:blogger.com,1999:blog-1934618693830151136.post-47956976960557962742008-12-31T16:27:00.001+00:002008-12-31T16:29:34.045+00:00A New Year message from John Bunzl, founder of the Simultaneous Policy campaign<span style="font-weight: bold;">The power to create a better world is already ours</span><br /><br />With the world in the grip of financial crisis and a deepening economic slump, those of us who've long been concerned about global warming, looming energy shortages and other global issues will no doubt be feeling even more despondent than before. To ordinary citizens all over the world, the ability to gain any traction on these issues seems inadequate and our efforts to get politicians to do anything substantive likewise seem somewhat futile. And yet the power to reverse this is, I contend, already in our hands if only we realise it. We - at least those of us in democratic countries - already have the necessary power to drive our politicians to implement substantive global solutions.<br /><br />To fully realise our power, however, first requires that we take stock of the various misconceptions that prevent us from seeing it. We are limited not so much by corrupt or blind politicians, nor by greedy corporations, nor by the "money masters" - the private banks. We are limited only by the false walls of misconception we've constructed in our own hearts and minds.<br /><br />The first of these is our assumption that politicians have the power to make the substantive changes needed to put the world on a just and sustainable path. There can be no doubt we believe politicians have this power because if we didn't, we'd hardly spend so much time lobbying them or taking direct action to persuade them to change their policies. We lobby them and protest because we think they have power - but they don't, at least not nearly as much as we think they do, and certainly far less than they'd need if they're to really solve global problems.<br /><br />How can this be? Their lack of power stems from the fact that, today, capital and corporations can move fairly easily and instantaneously across national borders, so determining which country gains investment and employment and which loses it. Since politicians have no choice but to implement policies designed to attract or retain capital so as to maintain employment and competitiveness, it's not hard to see why they're constrained to implementing only market- and business-friendly policies which favour the rich, the corporations and the bankers and thus disfavour greater social justice and the environment. So, to lobby politicians in the way we do now is rather illogical. Because for any nation, implementing our demands unilaterally would risk making its economy uncompetitive, leading to capital flight, unemployment and so on. Implementing our demands, in short, would not be in the national interest. So, why do we persist in demanding substantive change from people - in this case our politicians - when they don't have the power to deliver? Clearly there must be something wrong with our thinking; with our conception.<br /><br />Our second major misconception is that the above problem must be the fault of the rich or the corporations who move their capital around. While no one should condone poor or greedy corporate behaviour, we have to realise that on the whole corporations do what they do because not doing it would mean losing out to others. For corporations, acting ethically or refraining from taking advantage of countries with lower regulations and taxes would by and large mean losing out to their less scrupulous competitors, so it's not difficult to see why they so often fail to behave as we'd like. So while it's right we should highlight poor corporate behaviour when we see it, why do we persist in blaming corporations when it's clear that their behaviour is only the natural consequence of the lack of a level playing field of globally binding regulations? Again, there must be something wrong with our conception.<br /><br />What's more, these misconceptions only lead us into contradictory thinking, such as identifying free trade as our enemy. At a recent Trade Justice strategy event, for example, delegates were disappointed that a survey carried out during the Make Poverty History campaign showed that supporters could not say what trade justice actually meant. Following that, a delegate from one major NGO gave his own answer, proclaiming that "We are against free trade and we're for protectionism, but only in certain circumstances". But he failed to see the inherent contradiction that if you are for protectionism only in certain exceptional circumstances, you must logically be for free trade in all other circumstances! What that delegate and most of his colleagues are missing, then, is that their real enemy is not free trade itself but the fact that free trade occurs without adequate global social and environmental regulations, without any redistribution of wealth across national borders, and without any adequate transnational enforcement. In short, it's not free trade that is our enemy; it is the lack of effective global regulations and governance. And if the leaders of our movement cannot accurately identify the real enemy, surely we shouldn't be surprised if the public cannot define trade justice.<br /><br />But lying deep beneath these misconceptions are the false walls we build in our hearts. We build them on the above misconceptions and hold to them dearly because they allow us to blame, shame and complain about others and that makes us feel self-righteous; it makes us feel good - like campaigning warriors, boldly speaking out for the good of the world! But while raising public awareness of global abuses is certainly necessary, how can blaming people who are not really responsible possibly be good for the world? How can it be right to blame politicians or businessmen when it's not really their fault and when change is not in their power and when, moreover, if we were in their shoes, global economic forces would demand that we behaved pretty much as they do? This, perhaps, is why Gandhi asserted that "It is quite proper to resist and attack a system, but to resist or attack its author is tantamount to resisting and attacking oneself. For we are all tarred with the same b rush, and are children of one and the same Creator, and as such the divine powers within us are infinite. To slight a single human being is to slight those divine powers, and thus to harm not only that being but with him the whole world."[i]<br /><br />If we want to help and heal the world, then, it is the largely unregulated global market system that we must recognise as our real enemy - that we must resist and attack - and not any person or corporation or mode of trade that operates within it. We must realise that we are all caught, at one level or another, in that system and are thus all "tarred with the same brush". And from that it follows that while none of us is really to blame, all of us must hold ourselves jointly responsible for changing the system itself - for doing something about it. When we stop blaming each other, then, we realise that we are all prisoners of the system and all in the same planetary boat. If we take down the false walls of misconception in our hearts, we open them to the truth that those who we fondly believed to be at fault are not, and so our hearts open to each other without discrimination or reserve and so to the whole world. For how else could we be permitted to do good for the world? How else could we possibly build a non-judgemental space that is open to all; the vital open and forgiving space that is needed to begin our joint search for a genuine global solution? None of this means we should stop our present campaigns, of course; it means only that we must recognise their limitations, and so realise that an additional, more global, thoroughly non-judgemental, more truthful, more inclusive approach is also needed.<br /><br />Let us now go further to see what such an approach might actually look like. What might its design criteria be?<br /><br />If the free movement of capital and corporations is a global phenomenon, our first deduction must be that only a truly global solution could possibly fit the bill. And since the nature of governments' failure to act is their fear of losing jobs and investment to other countries, it follows, secondly, that any solution must be implemented simultaneously by nations to avoid that fear. If all or sufficient nations act simultaneously, no nation, corporation or citizens need lose out to any other: global and simultaneous - everybody wins. But since dominant nations may not see global cooperation as in their interests and would seek to free-ride and undermine global cooperation, our solution must give citizens the power to compel their governments to cooperate. So our solution must not just be global and simultaneous but also be driven by citizens. And if citizens are to drive the process and be capable of compelling their politicians to cooperate globally, the solution must enable them to operate on politicians in a way that is democratic, legal and binding. It must, in short, operate through existing electoral systems but do so in a way that is completely new, has trans-national coverage and yet transcends party-politics.<br /><br />For a few years, now, a relatively small number of citizens, primarily in the UK, have been test-running a global solution which meets all the above design criteria. Over the course of two general elections, in 2001 and 2005, they succeeded in getting 27 Members of the UK parliament and countless electoral candidates from all the main political parties to pledge to implement the campaign's global policy package simultaneously alongside other governments. In some UK electoral constituencies, more than one candidate signed the pledge, meaning the campaign gained a seat in parliament regardless which of those candidates won the seat. This showed that the campaign was capable of transcending party-political divides and was global in scope, leading one supporting MP, Lembit Opik, to recognise that, "We live together at once, on the same small planet. There are some things we should do together, at once, on this same small planet."<br /><br />But how could a relatively small number of citizens achieve such big results in such a short time? The answer lies in their discovery of a new and powerful way to use their votes. They do this by making it clear to all politicians that they'll be voting in all future national elections for ANY politician or party - within reason - that pledges to implement the campaign's policy package simultaneously alongside other governments. Or, if they have a party preference, they encourage their favourite politician or party to sign that pledge. In that way, campaign supporters still retain the ultimate right to vote as they please but they also make it clear to all politicians that they'll be giving very strong preference to candidates that have signed the Pledge, to the exclusion of those who haven't. So politicians who sign the Pledge attract those votes and yet they risk nothing because the policy package only gets implemented if and when sufficient governments around the world hav e signed up to it too. But if politicians fail to sign the Pledge they risk losing votes to their political competitors who do, and so could risk losing their seats. With many parliamentary seats and even entire elections around the world often hanging on a relatively small number of votes, it's not difficult to see that only relatively few campaign supporters will be needed to make it in the vital survival interests of all politicians to sign up. And therein lies the power that citizens already have, even in dominant countries such as the USA, to ensure that their governments sign up and cooperate.<br /><br />Thanks to this novel way of voting, not only have many UK MPs signed up, some Members of the European, Australian and other parliaments have too. The campaign has supporters in over 70 countries and they are self-organising to take the project forward and roll it out internationally. In 2005 they started a global process by which they - potentially with the help of chosen independent experts - gradually develop the global policies to be included in the campaign's overall policy package. This ensures that the policies to be implemented are democratically developed, globally inclusive, tailored to the needs of each country and yet that the process still remains open and flexible over time. Many non-governmental and campaigning organisations already have well thought out global policies to deal with climate change, oil depletion and other problems but what they don't have is a viable political means for getting them implemented in a globalised world. That's why they're increasin gly seeing this novel campaign as a vehicle for driving politicians and nations towards cooperatively implementing them. They're increasingly recognising that if politicians don't have the unilateral power to deal substantively with global problems, then citizens must logically take the lead both in designing the necessary policies, and in using their collective voting power to drive politicians to implement them simultaneously. So, the power to create a better world is already in our hands - we only have to use it; we only have to realise it.<br /><br />The campaign we're talking about is called the Simultaneous Policy (or Simpol, for short). As Lembit Opik went on to say, "The compelling logic of Simultaneous Policy is really collective common sense - it's a campaign to find out how common sense really is!"<br /><br />With global problems now mounting steeply around us, isn't it time more of us found out and played our parts? Isn't it time you let go your misconceptions and opened your heart to all the world? Isn't it time we all jointly discovered, as Gandhi said, that the "divine powers within us are infinite"?<br /><br />Joining the Simpol campaign is free. Please go now to<br /><a href="http://www.simpol.org/en/main/Concept_FS.htm">http://www.simpol.org/en/main/Concept_FS.htm</a><br /><br />Seasons greetings and happy New Year!<br /><br />John Bunzl<br /><br />Founder, International Simultaneous Policy Organisation (ISPO)<br /><br />December, 2008. http://www.simpol.org<br /><br />----------------------------------------------------------<br /><br />[i] M.K. Gandhi, An Autobiography, Navajivan Publishing House, Ahmedabad, 1927, 1929.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-69360935439786706662008-12-12T20:02:00.003+00:002008-12-12T20:11:07.825+00:00Nuclear disarmament synergiesOnce you’ve spent a bit of time browsing the proposals put forward for inclusion in the Simultaneous Policy, you see the synergies. This is brought out in some of the policy supplements to the newsletter too, such as that on ‘Turning weapons into windmills’ on the impact on climate change of redirecting weapons spending to renewable energy production.<br /><br />Similar synergies occurred for me yesterday. The proposal for Nuclear Disarmament did well in the recently concluded voting on policy proposals, gaining 60% approval for its further development. Mark Horler has taken up the challenge and posted a ‘work in progress’ expanding on the initial proposal to reference a proposed Nuclear Weapons Convention. He is looking for seconders for this to go forward. You can add your name at:<br /><a href="http://www.simpol.org.uk/forum/index.php?topic=90.0">http://www.simpol.org.uk/forum/index.php?topic=90.0</a><br /><br />At the same time, I saw a news report of a new international organisation called Global Zero, which launched a campaign this week on exactly the same issue.<br /><br />According to the International Business Times:<br /><a href="http://www.ibtimes.com/prnews/20081211/dc-global-zero-nukes.htm">http://www.ibtimes.com/prnews/20081211/dc-global-zero-nukes.htm</a><br /><br />---<br />Global Zero released a poll of 21 countries that found global public opinion overwhelmingly favors an international agreement for eliminating all nuclear weapons according to a timetable -- 76 percent of respondents across all countries polled favor such an agreement. The question specified that "all countries would be monitored to ensure they follow the agreement." In the five nations with large nuclear arsenals and advanced delivery systems, large majorities favor the plan -- Russia (69%), the United States (77%), China(83%), France (86%), and Great Britain (81%). In nations that do not have nuclear weapons, similarly large majorities favor it.<br />---<br /><br />This week too I wrote of the financial crisis and how re-thinking how we calculate GDP would prompt very different policy action from that we are seeing from our leaders, who encouraging people to take on more debt and consume more to get the world out of recession. Putting arms money into factors that boost health, environmental and social issues would make the ‘<a href="http://www.simpol.org.uk/forum/index.php?topic=30.0">Beyond GDP</a>’ figure improve. I wasn’t initially sympathetic to the ‘Beyond GDP’ proposal – which gained 64% approval – but with the prominence given to GDP figures in policy making now see the point. Also highly relevant is the proposal that ‘<a href="http://www.simpol.org.uk/forum/index.php?topic=8.0">weapons spending be excluded from GDP</a>’ - which gained 60% approval (though the proposer has today insisted that this proposal be withdrawn - the Policy Committee shortly to be elected will need to face in the new year how to handle this situation given it received the backing of Adopters).<br /><br />You can sign up in support of the Global Zero campaign on their website at:<br /><a href="http://www.globalzero.org/">http://www.globalzero.org/</a><br /><br />But I would suggest also sending them a message to back the disarmament proposals within the context of the Simultaneous Policy and giving the Nuclear Weapons Convention your support at:<br /><a href="http://www.simpol.org.uk/forum/index.php?topic=90.0">http://www.simpol.org.uk/forum/index.php?topic=90.0</a><br /><br />The Simultaneous Policy leads us to think of a coherent package of measures, addressing the major issues facing our planet, not each in isolation. If we can harness some of the Global Zero energy to the broader Simultaneous Policy campaign and vice versa it will be mutually beneficial.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-70158880627830840652008-12-09T16:32:00.004+00:002008-12-09T16:52:53.505+00:00Reforming the financial markets - part 2In <a href="http://globaljusticeideas.blogspot.com/2008/12/financial-reform-part-1.html">part one</a> of this article I examined the credit crunch and how this has brought the world to the brink of financial collapse and began to look at proposals for recovering the situation.<br /><br />Bad news continues to arrive. Today there are <a href="http://www.guardian.co.uk/business/2008/dec/09/recession-interest-rates">worrying figures for the UK economy</a>, suggesting that industrial output has fallen by 5.2% compared to a year ago. The television news is tracking how many thousands of jobs are being lost every week. The country is officially in recession as the Gross Domestic Product (GDP) is falling. There is also the fear of deflation - that is goods becoming cheaper. This is bad news because if the new HD TV I've been planning to buy is likely to be cheaper in 3 months time, I'll wait to buy it. If people put off purchases, the economy will contract even more.<br /><br />Nobel laureate for economics, Paul Krugman, puts the necessary action in simple terms: "Policy-makers around the world need to do two things: get credit flowing again and prop up spending."<br /><br />This has seen governments take shares in banks to improve their financial position and to put pressure on them to lend. Central bank interest rates have been cut to make loans, and particularly mortgages, cheaper so people have more money to spend. Various governments are trying 'fiscal stimulus' packages - tax cuts, again to put more money in people's pockets in the hope they will spend it, so boosting the economy. In the UK, the government is trying to make homeowners feel more secure - and so able to spend - by promising help with paying mortgages if they become unemployed or suffer a drop in income.<br /><br />At the same time governments are planning public works. Plans are not yet announced, but there is talk of investment in green infrastructure projects to reduce carbon emissions. In the US, car manufacturers who are all but bankrupt are being offered funds to re-tool to produce energy efficient green vehicles.<br /><br />To fund the investment and the tax cuts, governments are having to borrow money. They do this by issuing bonds. These are offered to investors. They do not pay the highest interest, but are supposed to be attractive because they are safe : governments don't default on loans. There is a problem, however, with many governments trying to attract investment as they may have to offer higher returns to be sure to raise what they need. If these rates go up, it will feed through to the mortgage rates. There is an analysis of this situation in The Guardian at:<br /><a href="http://www.guardian.co.uk/money/2008/dec/04/government-bonds-investments">http://www.guardian.co.uk/money/2008/dec/04/government-bonds-investments</a><br /><br />Now the <a href="http://www.simpol.org.uk/forum/index.php?board=6.0">Monetary Reform</a> proposals put forward for inclusion in the Simultaneous Policy suggested that instead of borrowing money in this way, governments should simply receive the money from the central bank, which creates it out of nothing for spending into circulation. This has an attraction for governments and tax payers, but what would the wider implications be? I imagine that if a government was creating money in a way economist thought was diluting its value, then the currency would fall against others. That is already happening to the pound with the increased borrowing. Perhaps other policies put forward for inclusion in the Simultaneous Policy would prevent this, such as the <a href="http://www.simpol.org.uk/forum/index.php?topic=14.0">Tobin Tax</a> on currency exchanges (aimed to dampen speculation) or the <a href="http://www.simpol.org.uk/forum/index.php?topic=5.0">International Clearing Union</a>, as proposed by Keynes to ensure companies balanced their imports and exports. It would be great to hear from Monetary Reformers how their proposals would work in the current situation and why this would be better than the methods being followed.<br /><br />The methods that are being followed are geared to getting people spending, to get the GDP figure up and to ensure there is sufficient demand for goods and services to stop prices deflating. The strategy is to get back to business as usual in the shortest possible time, which the most optimistic analysts seem to say will take a least a year.<br /><br />But what if we look at the crisis as an opportunity for restructuring how the economy works? The Simultaneous Policy approach allows us to think radically about what we might do.<br /><br />So here is a possible set of policies that could be implemented. They are offered not so much as a manifesto to be pursued, but more to show that if we remove the old boundaries set around policy making, we can address a wide range of apparently intractable problems. I hope others who are more knowledgeable than me will be inspired to put together something more sensible.<br /><br />For me there is something terribly wrong that the response to the credit crunch is to try to get people to borrow more money and spend it to keep the GDP figures up. Isn't this what got us into the mess in the first place?<br /><br />Let's question the basic assumption here that increasing GDP should be the aim of policy makers. The human race is already using more resources than the Earth can provide - a UN study suggests <a href="http://globaljusticeideas.blogspot.com/2008/08/too-many-people.html">we need 1.2 Earths for current consumption patterns</a>, and because we only have one Earth, it is suffering irrepairable damage and non-renewable resources are being exhausted.<br /><br />The third most popular policy proposal in recent voting was '<a href="http://www.simpol.org.uk/forum/index.php?topic=30.0">Beyond GDP</a>' - which calls for "health, social and environmental statistics" to complement wealth statistics in providing the measure of the economic well being of the country.<br /><br />I didn't initially see the point of this proposal, because there is no explanation as to what difference it would make to policy making or why policy makers would look to this figure rather than the conventional GDP figure. But recent events have shown the great weight that is put on these numbers.<br /><br />The calculation of such influential numbers is controversial. A thread in the discussion forum suggests that the US government has <a href="http://www.simpol.org.uk/forum/index.php?topic=70.0">cooked the books</a> to improve GDP figures and that on a proper measure, the US economy has been in recession since 2000. This chimes with an <a href="http://www.guardian.co.uk/business/2008/nov/21/us-economy-recession">analysis of the US economy</a> by journalist Larry Elliot, who describes how the US economy was been held up by cheap money coming from countries that had taken over much of the US manufacturing base and fuelling the credit boom. See:<br /><a href="http://www.guardian.co.uk/business/2008/nov/21/us-economy-recession">http://www.guardian.co.uk/business/2008/nov/21/us-economy-recession</a><br /><br />Well, let's try cooking the number another way to include the 'Beyond GDP' factors. While the economic slow-down will reduce this number, less consumption and less travel will actually benefit the environment, so that will improve the number.<br /><br />Policy makers can look at boosting the 'Beyond GDP' elements in addition or instead of the economic part. Investing in green infrastructure would be good for both - and the 'Beyond GDP' figure should perhaps be suffering a major reduction while the economy is based on unsustainable energy use and harmful greenhouse gas emissions. Anything to counter this will start to make things look much better.<br /><br />All the same, the economy is slowing down and people are being made redundant. A war has been a way to turn this around in the past, so it is perhaps a sensible precaution to remove <a href="http://www.simpol.org.uk/forum/index.php?topic=8.0">weapons spending from the GDP calculation</a>, as has been proposed and supported by Simultaneous Policy Adopters in voting.<br /><br />To ensure full employment, policy makers could take the step of cutting the working week to 30 hours or 4 days, as a permanent change. This would mean for every 4 employees, a business would take on an extra worker. If people were paid for the hours they worked, then the costs to business would be the same.<br /><br />What about employees, forced to cut working hours and pay? Well, firstly in parallel to the restructuring of the working week, investment could be made in community projects to provide activities for the free day. For example, parents could easily form a rota for walking kids to school, cutting out the school run. Those that volunteer for say 6 months, could be eligible for coordinator roles, with payments attached.<br /><br />Extra staff could be taken on at schools to provide adult education and sports for parents on their extra day off. With the olympics coming up in the UK in 2012, there could be a national programme for a people's games to take place after the international event, where amateurs winning local heats will compete on a national stage.<br /><br />There could be a new national allotment scheme, with community workers helping people use their extra free day to grow food locally.<br /><br />Indeed, local life will be promoted, to build up the sense of community and volunteering once more. Grants can be made available for communities that want to organize refurbishing or constructing local amenities. If more adults are around during the day, this will have a positive impact on anti-social behaviour and crime. This will all reflect well in the 'Beyond GDP' figures.<br /><br />Some people would find it hard to manage with a 20% cut in income. But in some respects life will be cheaper. If polluter-pays taxes are included on transport, for example, people will switch from weekend mini-breaks in cities across Europe to local trips, so saving money and carbon emissions. That particular party has to come to an end.<br /><br />But there are steps that could be taken for managing a transition. People who need to maintain income levels could work overtime on their 5th day. The cost to the business will be higher - time and a half, for example - which could be offset in the short term by tax cuts. But these would gradually be phased out, so in the longer term staff will adjust to the four-day week.<br /><br />So we come through the recession with less consumption, more time with family and strengthened communities, progress towards sustainable energy use, full employment, populations eating and exercising more healthily and a measure of the economy that values more than money.<br /><br />Investors will look to the rising 'Beyond GDP' figure for the UK and see it is a country with a bright future.<br /><br />There are no doubt other implications of this approach and perhaps better action that could be taken. We need to talk about them.<br /><br />The conventional approach of getting people to take on more debt to continue consuming more than they need and more than the planet can provide is surely not a better option.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com2tag:blogger.com,1999:blog-1934618693830151136.post-79444483750312796442008-12-08T23:39:00.005+00:002008-12-08T23:57:23.069+00:00Reforming the financial markets - part 1Why is the financial system on the brink of collapse, what is being done about it and what better alternatives could be brought in through the Simultaneous Policy campaign? Those are three questions which I aim to answer over the course of these two articles.<br /><br />There is an in-depth article on the credit crunch on The Guardian website from Paul Krugman, new Nobel laureate for economics, which provides valuable insight. I'm not going to attempt to reproduce his argument, but will put some of it in terms that I can understand and fill in some of the gaps. For his article see:<br /><a href="http://www.blogger.com/Why%20is%20the%20financial%20system%20on%20the%20brink%20of%20collapse,%20what%20is%20being%20done%20about%20it%20and%20what%20better%20alternatives%20could%20be%20brought%20in%20through%20the%20Simultaneous%20Policy%20campaign?%20Those%20are%20three%20questions%20which%20I%20aim%20to%20answer%20over%20the%20course%20of%20these%20two%20articles.%20There%20is%20an%20in-depth%20article%20on%20the%20credit%20crunch%20on%20The%20Guardian%20website%20from%20Paul%20Krugman,%20new%20Nobel%20laureate%20for%20economics,%20which%20provides%20valuable%20insight.%20I%27m%20not%20going%20to%20attempt%20to%20reproduce%20his%20argument,%20but%20will%20put%20some%20of%20it%20in%20terms%20that%20I%20can%20understand%20and%20fill%20in%20some%20of%20the%20gaps.%20For%20his%20article%20see:%20http://www.guardian.co.uk/books/2008/dec/06/paul-krugman-financial-crisis-2008%20Those%20who%20have%20followed%20proposals%20put%20forward%20for%20inclusion%20in%20the%20Simultaneous%20Policy%20will%20be%20familiar%20that%20for%20Monetary%20Reform,%20originating%20from%20James%20Robertson.%20This%20claims%20that%20commercial%20banks%20create%20money%20out%20of%20nothing%20as%20interest-bearing%20loans%20and%20demands%20that%20this%20role%20be%20taken%20over%20by%20central%20banks.%20Commercial%20banks%20would%20then%20be%20%22linking%20potential%20lenders%20to%20potential%20borrowers%20%C3%82%C2%AD%20as%20many%20people%20wrongly%20assume%20they%20are%20now.%22%20The%20proposals%20failed%20to%20gain%20large%20support%20in%20the%20recently-completed%20voting%20round%20and%20are%20on%20the%20way%20out.%20Why?%20I%20think%20because%20people%20thought%20it%20cannot%20be%20true%20that%20banks%20create%20money%20out%20of%20nothing,%20otherwise%20credit%20would%20not%20have%20dried%20up.%20%20The%20fact%20is%20that%20commercial%20banks%20do%20need%20lenders.%20This%20is%20why%20banks%20and%20building%20societies%20offer%20interest%20to%20savers%20to%20have%20a%20capital%20base%20from%20which%20to%20lend.%20If%20you%20want%20a%20loan,%20they%20can%20give%20you%20some%20of%20this%20money,%20which%20you%20repay%20with%20interest.%20Some%20of%20the%20interest%20goes%20to%20the%20lender,%20some%20goes%20to%20the%20bank%20-%20as%20profits%20and%20to%20cover%20liabilities%20because%20some%20borrowers%20will%20default.%20Banks%20are%20required%20to%20keep%20a%20certain%20level%20of%20stocks%20of%20money%20to%20maintain%20confidence%20in%20case%20savers%20decide%20to%20withdraw%20their%20deposits%20-%20if%20the%20bank%20told%20savers%20their%20money%20was%20not%20available%20no-one%20would%20trust%20the%20bank,%20everyone%20would%20try%20to%20remove%20their%20money%20and%20it%20would%20collapse.%20So%20banks%20are%20acting%20as%20brokers%20between%20lenders%20and%20borrowers.%20However,%20because%20most%20savers%20simply%20leave%20their%20money%20in%20the%20bank%20to%20earn%20the%20interest,%20the%20banks%20are%20allowed%20a%20trick.%20They%20are%20able%20to%20lend%20more%20money%20than%20they%20really%20have%20on%20deposit.%20If%20you%20sign%20a%20contract%20for%20a%20mortgage,%20the%20bank%20can%20create%20the%20money%20out%20of%20nothing,%20write%20the%20amount%20into%20your%20bank%20account%20and%20you%20can%20use%20it%20buy%20the%20house.%20This%20system%20is%20regulated%20by%20the%20central%20bank.%20It%20sets%20a%20limit%20on%20how%20much%20money%20the%20commercial%20bank%20can%20create.%20%20Part%20of%20the%20solution%20being%20followed%20by%20central%20banks%20in%20the%20current%20crisis%20is%20to%20change%20the%20rules%20so%20that%20banks%20have%20to%20have%20a%20better%20ratio%20of%20loans%20to%20savings%20-%20that%20is,%20more%20money%20on%20deposit.%20This%20is%20why%20in%20the%20UK%20people%20say%20the%20banks%20that%20have%20been%20bailed%20out%20by%20the%20government%20are%20in%20a%20bind.%20Publicly%20the%20government%20is%20saying%20the%20banks%20should%20start%20lending%20again.%20But%20at%20the%20same%20time,%20the%20banks%20are%20trying%20to%20build%20up%20their%20deposits.%20This%20also%20explains%20why%20commercial%20banks%20feel%20it%20hard%20to%20pass%20on%20the%20full%20cut%20in%20the%20bank%20base%20rate%20when%20the%20Bank%20of%20England%20makes%20cuts.%20%20According%20to%20Krugman,%20this%20issue%20will%20resolve%20itself%20and%20is%20not%20too%20serious%20in%20isolation.%20The%20bigger%20problem%20is%20the%20shadow%20banking%20system,%20which%20is%20not%20regulated%20to%20the%20same%20degree.%20This%20is%20where%20the%20sub-prime%20mortgage%20problem%20originates.%20%20An%20important%20fact%20to%20realise%20is%20that%20the%20assets%20of%20a%20bank%20are%20not%20the%20money%20they%20have%20from%20its%20savers,%20it%20is%20the%20loans%20they%20have%20with%20borrowers.%20Loans%20provide%20income.%20So%20a%20mortgage%20contract%20is%20an%20asset.%20What%20has%20happened%20is%20these%20have%20been%20trade,%20en%20masse.%20Investors%20have%20bought%20them%20because%20they%20provide%20a%20return%20as%20people%20repay%20the%20mortgage%20with%20interest.%20They%20were%20thought%20to%20be%20low%20risk%20because%20if%20someone%20couldn%27t%20pay,%20the%20house%20would%20be%20sold%20and%20clear%20the%20debt,%20plus%20a%20profit%20on%20top%20for%20the%20owner%20of%20the%20debt%20in%20default%20fees.%20But%20it%20all%20went%20wrong%20because%20house%20prices%20stopped%20going%20up%20and%20people%20who%20should%20never%20have%20been%20given%20loans%20in%20the%20first%20place%20started%20to%20default.%20Even%20if%20the%20house%20could%20be%20sold,%20the%20investor%20would%20get%20less%20than%20they%20paid%20to%20buy%20the%20contract.%20So%20investors%20with%20billions%20of%20pounds%20invested%20in%20these%20assets%20have%20had%20to%20write%20them%20off%20as%20losses,%20which,%20for%20some,%20has%20pushed%20them%20to%20the%20edge%20of%20bankruptcy,%20or%20even%20into%20bankruptcy,%20in%20the%20case%20of%20Lehman%20Brothers.%20Because%20financial%20markets%20have%20become%20globalized,%20these%20losses%20have%20had%20a%20devastating%20effect.%20The%20banks%20and%20hedge%20funds%20that%20have%20made%20huge%20losses%20are%20trying%20to%20recover%20their%20positions.%20So%20they%20are%20sacking%20people.%20They%20are%20also%20selling%20assets%20they%20own%20overseas.%20I%20was%20living%20in%20Brazil%20until%20recently%20and%20the%20stock%20market%20was%20falling%20drastically%20as%20investors%20cashed%20in%20their%20assets.%20The%20supply%20of%20dollars%20dried%20up%20as%20investors%20bought%20up%20supplies%20to%20repatriate%20the%20money.%20Companies%20needing%20dollars%20to%20pay%20for%20imported%20materials%20have%20found%20it%20difficult%20to%20obtain%20dollars%20and%20the%20value%20of%20the%20dollar%20has%20soared,%20making%20imports%20more%20expensive%20and%20adding%20to%20costs.%20At%20the%20same%20time,%20Americans%20are%20tightening%20their%20belts%20so%20there%20is%20less%20of%20an%20export%20market.%20Annual%20growth%20in%20Brazil,%20predicted%20to%20be%20above%205%%20is%20now%20likely%20to%20be%20below%203%.%20%20Other%20countries%20are%20being%20tipped%20into%20recession.%20There%20is%20another%20factor%20at%20play%20identified%20by%20Krugman.%20It%20is%20that%20money%20lending%20is%20now%20global,%20where%20banks%20or%20shadow%20banks%20find%20money%20at%20cheap%20interest%20rates%20%28such%20as%20Japanese%20Yen%29%20and%20lends%20it%20in%20countries%20with%20high%20interest%20rates%20%28such%20as%20Brazil%29.%20This%20is%20called%20carry%20trade.%20Krugman%20simply%20states:%20%22And%20one%20of%20the%20casualties%20of%20the%20latest%20round%20of%20panic%20was%20the%20carry%20trade.%20The%20conduit%20of%20funds%20from%20Japan%20and%20other%20low-interest%20nations%20was%20cut%20off.%22%20Personally%20I%20need%20a%20few%20more%20dots%20joined%20up%20to%20understand%20why%20this%20happened%20and%20the%20implications.%20Funds%20have%20dried%20up%20because%20faith%20in%20the%20organisations%20that%20ran%20the%20carry%20trade%20has%20evaporated%20with%20the%20collapse%20of%20Lehman%20Brothers,%20which%20was%20unable%20to%20honour%20its%20contracts.%20Prior%20to%20this,%20people%20with%20Yen%20were%20keen%20to%20lend%20them%20even%20if%20the%20return%20was%20small.%20With%20lots%20of%20Yen%20on%20offer,%20Yen%20were%20cheap%20to%20convert%20into%20other%20countries%20where%20the%20money%20was%20to%20be%20leant.%20When%20the%20borrower%20in,%20say,%20Brazil,%20repaid%20the%20loan%20in%20Brazilian%20Reais,%20this%20was%20converted%20back%20to%20Yen%20and%20the%20payments%20made%20along%20the%20chain.%20Now%20with%20no-one%20wanting%20to%20lend%20out%20Yen,%20for%20fear%20they%20won%27t%20be%20repaid,%20the%20exchange%20rate%20has%20gone%20up.%20In%20Brazil%20people%20are%20still%20desperately%20trying%20to%20buy%20foreign%20exchange,%20so%20the%20value%20of%20the%20Real%20has%20fallen.%20The%20result?%20The%20conduit%20organisation%20receive%20the%20same%20amount%20of%20Reais,%20but%20they%20are%20worth%20less.%20At%20the%20other%20end,%20they%20get%20less%20Yen%20for%20them,%20because%20Yen%20are%20more%20expensive.%20So%20carry%20trade%20is%20not%20a%20profitable%20business.%20%20Krugman%20says%20this%20is%20the%20real%20threat%20to%20the%20global%20system,%20because%20unfreeing%20this%20flow%20of%20financing%20is%20going%20to%20be%20far,%20far%20harder%20than%20persuading%20commercial%20banks%20to%20lend%20to%20would-be%20home%20owners%20and%20small%20businesses.%20The%20sums%20are%20many%20times%20greater,%20the%20business%20is%20international%20and%20regulation%20barely%20exists.%20His%20solution%20is%20quick%20to%20say:%20%22Policy-makers%20around%20the%20world%20need%20to%20do%20two%20things:%20get%20credit%20flowing%20again%20and%20prop%20up%20spending.%22%20With%20major%20industrial%20nations%20posting%20a%20drop%20in%20GDP,%20the%20measure%20of%20economic%20growth,%20and%20emerging%20markets%20slowing,%20the%20fear%20is%20a%20global%20recession,%20which%20means%20job%20losses%20and%20people%20falling%20into%20poverty.%20At%20least%20in%20the%20conventional%20model%20of%20economics%20that%20Krugman%20and%20others%20are%20following.%20This%20is%20the%20scenario%20where%20it%20would%20be%20great%20to%20hear%20what%20the%20Monetary%20Reform%20proposals%20submitted%20for%20inclusion%20in%20the%20Simultaneous%20Policy%20would%20contribute.%20There%20are%20other%20aspects%20to%20it,%20still.%20Such%20as%20what%20has%20happened%20to%20the%20insurance%20that%20investors%20have%20bought%20in%20case%20borrowers%20default.%20But%20this%20is%20as%20much%20complexity%20as%20we%20need%20for%20now,%20or%20at%20least,%20as%20much%20as%20I%20can%20cope%20with.%20In%20the%20second%20article,%20I%27ll%20try%20to%20answer%20this%20question%20and%20put%20forward%20some%20other%20proposals%20showing%20how%20the%20coherent,%20policy%20making%20approach%20enabled%20by%20the%20Simultaneous%20Policy%20could%20make%20a%20really%20radical%20transformation%20addressing%20many%20issues%20simultaneously.">http://www.guardian.co.uk/books/2008/dec/06/paul-krugman-financial-crisis-2008</a><br /><br />Those who have followed proposals put forward for inclusion in the Simultaneous Policy will be familiar that for <a href="http://www.simpol.org.uk/forum/index.php?board=6.0">Monetary Reform</a>, originating from James Robertson. This claims that commercial banks create money out of nothing as interest-bearing loans and demands that this role be taken over by central banks. Commercial banks would then be "linking potential lenders to potential borrowers as many people wrongly assume they are now." The proposals failed to gain large support in the recently-completed voting round and are on the way out. Why? I think because people thought it cannot be true that banks create money out of nothing, otherwise credit would not have dried up.<br /><br />The fact is that commercial banks do need lenders. This is why banks and building societies offer interest to savers to have a capital base from which to lend. If you want a loan, they can give you some of this money, which you repay with interest. Some of the interest goes to the lender, some goes to the bank - as profits and to cover liabilities because some borrowers will default. Banks are required to keep a certain level of stocks of money to maintain confidence in case savers decide to withdraw their deposits - if the bank told savers their money was not available no-one would trust the bank, everyone would try to remove their money and it would collapse.<br /><br />So banks are acting as brokers between lenders and borrowers. However, because most savers simply leave their money in the bank to earn the interest, the banks are allowed a trick. They are able to lend more money than they really have on deposit. If you sign a contract for a mortgage, the bank can create the money out of nothing, write the amount into your bank account and you can use it to buy the house. This system is regulated by the central bank. It sets a limit on how much money the commercial bank can create.<br /><br />Part of the solution being followed by central banks in the current crisis is to change the rules so that banks have to have a better ratio of loans to savings - that is, more money on deposit. This is why in the UK people say the banks that have been bailed out by the government are in a bind. Publicly the government is saying the banks should start lending again. But at the same time, the banks are trying to build up their deposits. This also explains why commercial banks feel it hard to pass on the full cut in the bank base rate when the Bank of England makes cuts.<br /><br />According to Krugman, this issue will resolve itself and is not too serious in isolation.<br /><br />The bigger problem is the shadow banking system, which is not regulated to the same degree. This is where the sub-prime mortgage problem originates.<br /><br />An important fact to realise is that the assets of a bank are not the money they have from its savers, it is the loans they have with borrowers. Loans provide income. So a mortgage contract is an asset. What has happened is these have been traded, en masse. Investors have bought them because they provide a return as people repay the mortgage with interest. They were thought to be low risk because if someone couldn't pay, the house would be sold and clear the debt, plus a profit on top for the owner of the debt in default fees. But it all went wrong because house prices stopped going up and people who should never have been given loans in the first place started to default. Even if the house could be sold, the investor would get less than they paid to buy the contract.<br /><br />So investors with billions of pounds invested in these assets have had to write them off as losses, which, for some, has pushed them to the edge of bankruptcy, or even into bankruptcy, in the case of Lehman Brothers.<br /><br />Because financial markets have become globalized, these losses have had a devastating effect.<br /><br />The banks and hedge funds that have made huge losses are trying to recover their positions. So they are sacking people. They are also selling assets they own overseas. I was living in Brazil until recently and the stock market was falling drastically as investors cashed in their assets. The supply of dollars dried up as investors bought up supplies to repatriate the money. Brazilian companies needing dollars to pay for imported materials have found it difficult to obtain dollars and the value of the dollar has soared, making imports more expensive and adding to costs. At the same time, Americans are tightening their belts so there is less of an export market. Annual growth in Brazil, predicted to be above 5% is now likely to be below 3%. Other countries are being tipped into recession.<br /><br />There is another factor at play identified by Krugman. It is that money lending is now global, where banks or shadow banks find money at cheap interest rates (such as Japanese Yen) and lend it in countries with high interest rates (such as Brazil). This is called carry trade.<br />Krugman simply states: "And one of the casualties of the latest round of panic was the carry trade. The conduit of funds from Japan and other low-interest nations was cut off."<br /><br />Personally I need a few more dots joined up to understand why this happened and the implications. Funds have dried up because faith in the organisations that ran the carry trade has evaporated with the collapse of Lehman Brothers, which was unable to honour its contracts.<br /><br />Prior to this, people with Yen were keen to lend them even if the return was small. With lots of Yen on offer, Yen were cheap to convert into the currency of other countries where the money was to be leant. When the borrower in, say, Brazil, repaid the loan in Brazilian Reais, this was converted back to Yen and the payments made along the chain.<br /><br />Now with no-one wanting to lend out Yen, for fear they won't be repaid, the exchange rate has gone up. A simple case of supply and demand. In Brazil people are still desperately trying to buy foreign exchange, so the value of the Real has fallen. The result? The conduit organisations receive the same amount of Reais, but they are worth less. At the other end, they get less Yen for them, because Yen are more expensive. So carry trade is not a profitable business.<br /><br />Krugman says this is the real threat to the global system, because unfreeing this flow of financing is going to be far, far harder than persuading commercial banks to lend to would-be home owners and small businesses. The sums are many times greater, the business is international and regulation barely exists.<br /><br />His solution is quick to say: "Policy-makers around the world need to do two things: get credit flowing again and prop up spending."<br /><br />With major industrial nations posting a drop in GDP, the measure of economic growth, and emerging markets slowing, the fear is a global recession, which means job losses and people falling into poverty.<br /><br />At least in the conventional model of economics that Krugman and others are following.<br /><br />This is the scenario where it would be great to hear what the Monetary Reform proposals submitted for inclusion in the Simultaneous Policy would contribute. There are other aspects to it, still. Such as what has happened to the insurance that investors have bought in case borrowers default. But this is as much complexity as we need for now, or at least, as much as I can cope with.<br /><br />In the second article, I'll look again at the Monetary Reform proposal and put forward some others showing how the coherent, policy making approach enabled by the Simultaneous Policy could make a really radical transformation addressing many issues simultaneously.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0tag:blogger.com,1999:blog-1934618693830151136.post-23406769513747885792008-11-27T14:33:00.005+00:002008-11-27T15:38:21.215+00:00When is a question not a question?There is a discussion on Simpol's discussion boards about 'provably false GDP figures'. See:<br /><a href="http://www.simpol.org.uk/forum/index.php?topic=70.0">http://www.simpol.org.uk/forum/index.php?topic=70.0</a><br /><br />I raised some questions about the analysis. Why was it wrong for certain assumptions to be made in calculating the figures, given there was a certain logic to them? What difference would it make if the figures were calculated differently? That kind of thing. The sort of probing that is needed when examining proposals that could be introduced simultaneously around the world.<br /><br />My post was forwarded to a discussion group where the issues was first raised and provoked a surprising response, which someone posted back to Simpol's board.<br /><br />You can read the correspondence there. The point of this blog is not an "I said, then he said" justification.<br /><br />It is to ask: When is a question not a question?<br /><br />In the minds of some beholders it seems questions are not questions, but rhetorical point-scoring constructions.<br /><br />The question: What difference will this make? Is understood to mean: This will make no difference.<br /><br />Then follows the attack of cynicism. But I would like suggest the cynicism lies with those who see an honest question in this way.<br /><br />Is it a sign of the times and the paucity of our policy debate that enquiry provokes such a defensive reaction? This is a question we should seriously consider because the whole purpose of the Simultaneous Policy democratic space is to investigate ideas. For that we need to be able to question them and receive considered answers.<br /><br />Considered answers appreciated.Mike Bradyhttp://www.blogger.com/profile/04121310163466468696noreply@blogger.com0