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AGAINST ECONOMIC CRISIS...
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AND AGAINST SOCIETAL CRISES IN GENERAL - INCLUDING THE CLIMATE-CRISIS -
THE CRISES ARE INTERCONNECTED AND MUST BE RESOLVED TOGETHER
ABOUT THE WEC
The World Economic Council - WEC - was founded 01.05.2009 in Oslo. The practical administration of WEC is taken care of by the IIFOR staff and the secretariat of the Libertarian* International, mainly located in Oslo, Norway. The postal address is WEC P.O.B. 4777 Sofienberg N- 0506 Oslo - Norway. The purpose of WEC is to make advice to international media, mandated persons and people in general to a) solve economic crisis problems and b) achieve environmentally sustainable economic growth with full employment world wide, and c) support libertarian actions, dialog and research to achieve a) and b) plus libertarian societal solutions in general, also more horizontal organization, including fairness and efficiency. The basis is the practical and theoretical framework presented at the links above, especially the General Theory of Economics, i.e. libertarian included environmental political economy, plus the text and the links in the text below. The Web-page of WEC presents updated material related to a), b) and c), the newest on top, i.e. the WEC-Resolutions.
Cogrips-economics broadly defined, including Cogrips-models and Cogrips-policy, rooted back to economical Nobel Prize winner and social-individualist anarchist Ragnar Frisch, see The unenlightened plutarchy with links, is an important part of the basis for WEC's analysis, research, advice and other actions. This type of political economy, including mathematical models and economic-political policy, i.e. integrated micro-macro economics and models including significant green and democracy & horizontal organization aspects, is an efficient alternative to Keynes-models and the increasingly inefficient Keynesian economic policy of our time -- regarding optimal demand management broadly defined, against economic crisis and in general. The societal crises in general, all of them so far, also including the the terrible climate-crisis under development, are interconnected, have the same roots - at the TOP of the societal pyramid, and must be resolved together, in the same way: via the Frischian general Cogrips-models with Cogrips-policy broadly defined. The Keynes-paradigm is falling... Long live Cogrips-economics including Cogrips-models and Cogrips-policy!
An economic-political system with significant unemployment is in general neither efficient, i.e. Pareto-optimal, nor fair, as defined by libertarians. Libertarian political economy, with Cogrips-economics broadly defined, including Cogrips-models and Cogrips-policy, includes efficient and fair solutions, with a.o.t. full employment, green/environmental issues and horizontal organization fully taken into account. Regarding green/environmental issues, this a.o.t. means solution to the manmade global warming, and severe plastic pollution. In this connection the WEC co-operates with The Green Global Spring Revolution (GGS), see the two GGS-links below for more information, and GGS uses Cogrips-policy as a part of their Real (i.e. including Green) Democracy Policy, strategy and actions, i.e. within their general strategy framework. For more information about Real (i.e. including Green) Democracy, click on "Real democracy" above.
Theoretically, as a special case, the unenlightened plutarchy can perhaps have about full employment, but not in general, and also looking at history and the longer run, this case can be practically ruled out as a rare anomaly. The unenlightened plutarchy also usually implies severe environmental problems, and a top-heavy pyramid economic-political system with large rank- and income-differences, corruption and serious social conflicts, without freedom for the People, and no equality, social justice and a just peace (typically bureaucracy political economy (upper class policy in general) sometimes with rivaling States within the State, resulting in ochlarchy including chaos).
The libertarians, i.e. real democrats, including WEC, are against, and do and support direct actions and sometimes indirect actions (e.g. via elections) against, top heavy societal pyramids economical and/or political/administrative, -- cut bureaucracy costs -- increase the demand of the people -- the people seen as a class as opposed to the superiors in rank and/or income -- for full employment -- against the unenlightened plutarchy of several systems, IMF, WB, euro and US $. Troubled economies in Europe should leave the euro and the Euro-zone, this will make proper demand management broadly defined more easy. In general it must pay to work, for the people!
More information about the fight against the unenlightened plutarchy broadly defined - and for full employment etc., see especially No to euro - Full employment - Anarchist vs bureaucracy economics - IJA 1 (32), the WEC resolutions, The unenlightened plutarchy, The general theory of anarchist economics and International Workers of the World, with links. More information about the best alternative to the unenlightened plutarchy, i.e. real democracy - always including horizontal organization and green elements, see System theory, Real democracy, Green political economy & The Green Global Spring Revolution (GGS), Industrial and societal organization in general and Horizontal organization - a brief survey. A comprehensive Cogrips Model is also presented at www.indeco.no, see in particular Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar and Apropos Statsbudsjettet - Samgrepspolitikk. This NØI-INDECO model and WEC's model reasoning complement each other and form a complete whole of a large general Cogrips model. In general the following is valid: the Cogrips Model reasoning at indeco.no and anarchy.no complement each other and form a complete whole of a large general Cogrips Model.
NB! The unenlightened plutarchy including bureaucracy economics, historically typically connected to liberalism, is today more or less present in systems both to the left, right and downwards on the economic-political map, perhaps a little more present to the right and downwards, but also significant at the left, see (click on) "System theory" or the link to "Political Economy & Systems" at the top of this web-page. Marxism, liberalism and fascism, including populism, today, are all regularly more or less infected with the unenlightened plutarchy including bureaucracy political economy with top-heavy societal pyramids & Top - Down management without significant influence by the People, i.e. in general or partly authoritarian. Liberalism and populism/fascism are perhaps more seriously infected, but not much, and there are movements to the right and downwards, say, China for several years has been a left-fascist system, and now has turned into an ultra-fascist included anti-climate Hitler-type system. The mentioned serious infection is a.o.t. resulting in severe societal problems with inequalities economical and/or political/administrative, heavy ochlarchy including corruption and crime in general, large unemployment - especially among the young, dangerous pollution & lack of environmentally sustainable economic growth, with global manmade warming - resulting in destruction of the environment, etc. And the problems are getting worse as time goes by according to updated research included climate-research. Thus, our planet GAIA a.k.a. Tellus, evolves slowly toward a horrible searing hell with destroyed environment, and with lots of Orwellian "1984"-like ultra-authoritarian & totalitarian economic-political systems - always anti-climate, if not something drastic is done to stop and reverse this negative trend!
In this connection - ad something drastic to be done - the libertarians including WEC, work hard and call for 1. an end of the present mostly inefficient and unfair political economical situations world wide, including an end of the unenlightened plutarchy with Bureaucracy political economy, included anti-climate policy, etc., and 2. a steady and orderly movement of the societal, i.e. economic and political/administrative - systems towards real democracy, i.e. libertarian - always including Green, and continued increased libertarian degree = the degree of democracy, see System theory - Chapter V. B.! A development towards Real, i.e. always included green - Democracy and more of it, must mainly be done by the people's actions - more and more, i.e. act with dignity, use real matter of fact arguments and add weight behind via direct actions, including mass actions & industrial actions, and via organization, dialog and elections! In practice this means supporting and joining the Green Global Spring Revolution (GGS)! The WEC and the Libertarian International a.k.a. the Anarchist International AI/IFA - including all its sections, are junctions in this connection, also spearheading a broad based world wide pro-climate Peoples' Movement, triggered by GGS, which at the moment is in its embryonic phase! NB! If you or your organization will contribute to the WEC-Website, or have questions, use the e-mail contact-link below or send a snail-mail to WEC. And we encourage joining the GGS-network, click on the link below:
GGS is based on Cogrips-model and -policy! Ragnar Frisch' & Frischian Cogrips-model & -policy…
Resolution decided with general consent, by WEC and:
The International Anarchist Congress
The 11th Anarchist Biennial 27-28.11.2010
International Congress-Seminar on Anarchism
The AI/IFA network represents more than 50 000 anarchist world wide
To see the Website of the Congress - Click here!
Updated
The document explores solutions to the economic crisis and emphasizes the integration of green political economy through the Cogrips model and policy framework. The World Economic Council (WEC) and the associated international networks advocate for a global shift towards sustainable economic growth, full employment, and environmental responsibility, primarily through decentralized economic planning and green-focused demand management.
The Cogrips model, grounded in the ideas of Nobel Prize-winning economist Ragnar Frisch, offers an alternative to traditional Keynesian models, focusing on integrated micro-macro economic systems. The central aim is to address the interconnected societal crises, including unemployment, inequality, and environmental degradation, through a balanced approach to demand management. This approach advocates for a decentralized, bottom-up economic structure that fosters democratic participation and green policies.
To resolve the economic crisis, the document emphasizes the need for a significant increase in demand. This can be achieved by enhancing the purchasing power of ordinary people, rather than relying on bureaucratic economic policies that prioritize elite interests. By increasing demand, employment rises, thereby addressing the global unemployment crisis. The key elements of this approach include:
Quantitative easing for the people, not the bureaucracy.
Redirecting financial resources directly to the populace to stimulate demand.
Reducing income inequality by flattening societal hierarchies and redistributing wealth.
The Cogrips policy asserts that traditional economic systems led by elite bureaucracies and plutocracies (plutarchy) are failing, particularly in addressing unemployment and inequality. These systems often exacerbate environmental problems by prioritizing growth over sustainability. In contrast, Cogrips policy integrates green principles, advocating for sustainable, long-term economic strategies that benefit both the environment and society.
Central to the solution of the economic crisis is the integration of green political economy. This model promotes the transition from fossil fuels to renewable energy sources, emphasizing that true economic recovery must go hand in hand with environmental sustainability. The WEC advocates for significant reforms in energy policy, moving away from fossil fuels and adopting green technologies like wind, solar, and hydropower.
The document highlights that current economic systems, especially in countries dominated by authoritarian regimes or bureaucratic capitalism, are inefficient in tackling climate change. These systems prioritize short-term economic gains, often at the expense of long-term environmental health. To address this, the Cogrips model supports:
A 5% annual green GDP growth target, to ensure that economic development is aligned with environmental goals.
Full employment policies that simultaneously address social inequalities and environmental degradation.
The implementation of taxes on fossil fuel consumption and the subsidization of green energy alternatives.
The idea of horizontal organization is also a key component of this green political economy. Rather than top-down decision-making, policies must be implemented at a local level, where communities can directly influence and benefit from green economic initiatives.
The document calls for a shift towards decentralized governance, with greater emphasis on local economies and decision-making processes. The solution to the economic crisis, as proposed by the Cogrips model, is closely tied to empowering local communities and reducing the influence of centralized, bureaucratic systems. This decentralization allows for more efficient management of resources and the environment, as well as a more equitable distribution of wealth.
Social justice is a major theme, as the document stresses the need to address income inequality as part of the broader solution to both the economic and environmental crises. A significant reduction in the Gini index to below 20% is advocated, which would represent a fairer distribution of wealth and resources. This reduction is seen as critical to achieving a just society where both economic and environmental goals can be met.
In line with its focus on green political economy, the document critiques the current structure of global trade, particularly the reliance on fossil fuel-based transportation systems. It advocates for a reduction in international trade of goods that can be produced locally, thus minimizing carbon emissions and fostering significant local self-sufficiency. The global economic system, which prioritizes the movement of goods and services over sustainability, is seen as a major contributor to environmental degradation.
The Cogrips policy framework calls for taxes on international trade that depends on fossil fuels and greater subsidies for green, local production. This shift is essential for reducing the carbon footprint of global trade and promoting a sustainable economic future.
The solution to the economic crisis proposed in this document is deeply intertwined with the principles of green political economy. By adopting the Cogrips model, which emphasizes decentralized governance, increased demand from the people, and sustainable energy policies, the global economy can move towards full employment, social equality, and environmental sustainability. The document advocates for a radical restructuring of both economic and political systems to prioritize the long-term health of the planet and its people.
Common Ground: Both perspectives recognize the central role of institutions in shaping economic outcomes. Acemoglu, Johnson, and Robinson focus on how inclusive institutions, which enforce property rights and provide equal economic opportunities, contribute to long-term prosperity. The Cogrips Model also acknowledges the need for institutions but emphasizes that they should be structured to support green growth and decentralized decision-making.
Difference: The Cogrips approach goes beyond just having inclusive institutions by advocating for policies that ensure institutions actively promote sustainability and address climate change. It prioritizes environmental considerations as a key aspect of institutional design.
Common Ground: Both approaches emphasize the need to address economic inequality. Acemoglu, Johnson, and Robinson argue that inclusive institutions can help reduce inequality by creating a level playing field. Similarly, the Cogrips Model recognizes that inequality is a fundamental problem that needs to be tackled for economic and social stability.
Difference: While Acemoglu and his co-authors focus on creating inclusive institutions to mitigate inequality, the Cogrips Model goes further by advocating for direct economic interventions, such as wealth redistribution and aligning political salaries with the median income, to address inequality more aggressively.
Common Ground: Both perspectives are critical of extractive institutions—those that concentrate wealth and power in the hands of a few at the expense of the broader population. They share the view that extractive institutions lead to economic stagnation and social unrest.
Difference: While Acemoglu, Johnson, and Robinson focus on how to transition from extractive to inclusive institutions, the Cogrips Model stresses that this transition must also be accompanied by policies promoting decentralization, grassroots participation, and environmental sustainability to avoid perpetuating different forms of extraction (e.g., environmental degradation).
Common Ground: Both perspectives recognize that the state has an important role to play in economic development. Acemoglu, Johnson, and Robinson argue that the state must be strong enough to enforce rules and provide public goods. The Cogrips Model similarly supports state intervention but stresses that the state and public sector in general should play a leading role in managing the transition to a green economy.
Difference: The Cogrips Model advocates for more extensive public sector intervention, especially in economic planning, green energy investments, and redistributive policies, while Acemoglu, Johnson, and Robinson emphasize the need for a balanced approach to state intervention, ensuring it does not become oppressive or extractive. The Cogrips model and policy advocates dezentralized planning, based on the communes, rather than the top-heavy pyramid of the state, i.e. economic and political/administrative broadly defined, a perspective that Daron Acemoglu, Simon Johnson, and James A. Robinson lacks.
Common Ground: Both approaches take a historical and structural view of economic development. Acemoglu, Johnson, and Robinson use historical case studies to illustrate how different institutional arrangements lead to varying economic outcomes. The Cogrips Model also takes a long-term view by considering historical trends in environmental policy, economic inequality, and institutional development.
Difference: The Cogrips Model integrates environmental factors into its structural analysis, while Acemoglu and his co-authors focus more on the political and economic dimensions of history without as much emphasis on environmental sustainability.
Common Ground: Both perspectives reject the notion that technology alone determines economic outcomes. Acemoglu, Johnson, and Robinson emphasize that the benefits of technology depend on whether institutions are inclusive. The Cogrips Model also asserts that technological change must be guided by policies that ensure it benefits society and supports environmental sustainability.
Difference: The Cogrips Model is more explicit in advocating for policies that shape technological development towards green solutions and social benefits, whereas Acemoglu and his co-authors tend to focus on how institutions mediate the impact of technology.
While the Cogrips Model and the works of Acemoglu, Johnson, and Robinson differ in their emphasis on environmental policy, decentralization, and the role of public sector intervention, they share some fundamental views on the importance of institutions, the need to address inequality, the critique of extractive systems, and the public sector’s role in economic development. The main divergence lies in the Cogrips Model's greater emphasis on green growth, proactive public sector interventions, and decentralized governance, which it sees as necessary complements to institutional reforms for sustainable and inclusive development.
Viser til brev (e-mail) fra Statsministerens Kontor (SMK) og følger opp med denne artikkelen, et åpent brev til Finansdepartementet med videre - og NHO - som også er berørt i saken.
From: Postmottak SMK [mailto:PostmottakSMK@smk.dep.no]
Sent: Thursday, November 14, 2019 2:13 PM
To: 'The Institute of Industrial Economics'
Subject: Svar på henvendelser
Vi viser til dine henvendelser fra blant annet 9. oktober 2019 og 28. oktober 2019. Du tar opp spørsmål knyttet til blant annet klima og økonomi. Spørsmål om global oppvarming hører under Klima- og miljødepartementets fagområde. Spørsmål om den økonomiske politikken hører under Finansdepartementets ansvarsområdet. Spørsmål om arbeidsledighet hører under Arbeids- og sosialdepartementets fagområde. Henvendelser om slike saker kan rettes til de respektive departementene.
Med vennlig hilsen,
Statsministerens kontor, postmottak
NØI-INDEOS meldinger/henvendelser til SMK 09.10.2019 og 28.10. 2019 er publisert i Arkivet over Pressemeldinger m.v. bakerst i Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar. Klikk på denne linken og søk på datoene i dette Notatet (Wordfil) for å lese meldingene/henvendelsene fra NØI-INDECO til SMK og Statsminister Erna Solberg.
Toppen i samfunnspyramiden, Byråkratiet bredt definert i offentlig og privat sektor, og ikke bunnen - Folket, skal ta det meste av de samfunnsmessige beslutningene, men Folket skal alt i alt ha signifikant innflytelse på disse beslutningene, og jo mere desto bedre. Graden av demokrati (folkestyre) i samfunnet er ensbetydende med den grad (i prosent) Folket har innflytelse på disse beslutningene. Er denne prosentsatsen null, har Folket ingen innflytelse - dvs. systemet er 100% autoritært, er den 50% eller mer er det signifikant demokratisk, og er prosentsatsen 100% er det også 100% folkestyre - dvs. Folket har alt å si. Det norske demokratiet er såvidt signifikant for tiden. Over til Byråkratiet (toppen over grunnplanet i samfunnspyramiden) igjen:
Byråkratiet skal være mest mulig målstyrt, basert på de aktuelle målene - eller om man vil - Folkets krav, angitt av Folkets Råd, se The People's Council.
The People's Council. The mandate of the People's Council is to collect and coordinate the People's demands, orders & commands ... and deliver them to the Bureaucracy that should be pressed - one way or the other - bottom - up - to meet, execute and perform the demands, orders & commands of the People [i.e. aims for management by objectives (MBO) by the Bureaucracy]. The People is the Bottom of the societal pyramid, the Grassroots, and the Bureaucracy (the Authorities) broadly defined in public and private sector is the Top of the societal pyramid, i.e. economical and/or political/administrative.
The Demands [aims for MBO by the Bureaucracy] of the People: Human activities are estimated to have caused approximately 1.0°C of global warming above pre-industrial levels, with a likely range of 0.8°C to 1.2°C. Global warming is likely to reach 1.5°C between 2030 and 2052 if it continues to increase at the current rate. Estimated anthropogenic global warming is currently increasing at 0.2°C (likely between 0.1°C and 0.3°C) per decade due to past and ongoing emissions, according to IPCC, Intergovernmental Panel on Climate Change. [The People's] aim is no more than 1.5 °C global warming above pre-industrial level (1720- 1800). As for the unemployment rate, no more than 1.5 percent is acceptable, in each country world wide, plus at least 3 - 5 percent average growth in real GDP, under appropriate environmental constraints broadly defined. The green growth is further explained at ... Green Real Democracy. The Gini-index for income should be lower than 20 percent. The index is 100 percent when one person has all societal income, and 0 percent - zero - when all members of the society has equal income. The Gini-index measures how top-heavy the income-pyramid is. The global population, and in each country, should be optimal not maximal, this means little to no growth at present, and further population growth is dependent on technological advance within the appropriate environmental constraints broadly defined. The probably best way to fulfill the demands is explained in Løsningsforslag Nr 1. for klima-krisen - Proposed Solution No. 1, for the Climate-Crisis, from NØI-INDECO, see Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar for a brief introduction.
Veien å gå for å implementere Folkets mål, blant anne via Stats- og Nasjonalbudsjett, er følgende i hovedtrekk, se Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar: Man må begrense veksten i folketallet og samtidig få til tilnærmet full sysselsetting (f.eks. ikke mer enn 1,5 % arbeidsledighet AKU) og skikkelig økonomisk vekst i denne nye grønne økonomien, (dvs. med aktuelle miljømessige rammebetingelser) via en tilstrekkelig ekspansiv finans-, fordelings & miljø- og penge-politikk. Fordelings & miljø-politikken består a) dels i styrking av fagbevegelsen (en del av «mer demokrati» perspektivet) og økte lønninger til Folket i arbeidsmarkedet, samt bedre arbeidsmiljø (bl.a. flat struktur), dels b) av offentlig overføringspolitikk - via skatte/stønader og avgifts/subsidie-politikken, herunder også miljø-økonomisk styring. Gini-indeksen i alle land bør ned mot 20% tallet. I Norge er den i dag rundt 25%, dvs. for høy, men det er i utgangspunktet mye verre i mange land, f.eks. klart høyere i USA, og enda høyere inntektsulikhet målt med Gini-indeksen enn i USA, er det i Kina.
Hvordan man skal fikse dette i teori og praksis står allerede i hovedtrekk i Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar + linker, som nok likevel må videreutvikles en god del i detaljer både i bredde og dybde – men dette er en relativt enkel og mer rutinemessig sak som ikke krever særlig mye ny og grensesprengende kreativitet – det går i hvert fall trolig fint og tilstrekkelig raskt om universitetene i Norge, Finansdepartementet og Statistisk Sentralbyrå (SSB) med videre, og eventuelt noe globalt, slår sammen de kloke hodene og jobber videre i Ragnar Frisch’ ånd og tenkningpå dette feltet (Cogrips-policy & -models) – som NØI-INDECO har gjort hittil i dette prosjektet. Cogrips-modeller og -policy, som er både 1. integrerte mikro-makro modeller, bl.a. basert på økosirk, og 2. har innslag av desentralisert planøkonomi igjen basert på målstyring (MBO & freedom within a framework), nedenfra og opp, pluss 3. en generelt flat struktur raskt, er veien å gå.
NB! En signifikant økning i demokrati-graden, tilsvarende en signifikant økning i grunnplanets dvs. Folkets, innflytelse på de samfunnsmessige beslutningene, som oftest tatt av Toppene i privat og offentlig sektor, kalles per definisjon en revolusjon i demokratisk retning i Cogripsmodel-Notatet. Man må ikke la seg skremme av terminologien her. Det behøver ikke være noe dramatisk eller vold i denne forbindelse. Som regel går dette relativt fredelig for seg, via litt press fra Folket, en folkeavstemning supplert med noen mindre aksjoner, eller rett og slett at Toppene hører litt mer på folket og følger opp det de hører, dvs. blir litt mer idealistisk demokratiske. Dvs. frivillig kutter litt på egen-interessene i makt og penger, økonomisk og politisk/administrativt dvs. hever seg litt over overklasseinteressene, og kutter litt i bl.a. valgflesket, når det trengs og situasjonen tilsier det, og etter at man f.eks. får en liten trigger, en aha opplevelse i en kritisk situasjon, ut fra ny informasjon, som nå angående klima-krisen. NØI-INDECO håper at en slik idealistisk demokratisk revolusjon kan skje i Norge og i andre relativt demokratiske land i tilknytning til løsning av klima-krisen – det er nemlig det mest effektive og rettferdige, og at slike rapporter som Cogripsmodel-Notatet og/eller noe lignende fra annet hold, kan bidra til dette. Her kan og bør Finansdepartementet og NHO gå i bresjen for den nye grønn-demokratiske politiske økonomien.
Folket presser på Byråkratiet nedenfra og opp ved indirekte (f.eks. stortings- og kommunevalg) og direkte aksjoner, for å få tilstrekkelig innflytelse på Byråkratiets beslutninger i retning Folkets krav (målene nevnt over) spesielt angående klima, for å få en raskest mulig tilnærming ttil målene og implementeringen i praktisk økonomi og politikk, altså spesielt vedrørende klima som sagt. For å få til dette må Byråkratiet være mest mulig horisontalt organisert, og kuttes en del, for å tilfredstille Folkets krav (målene) i både privat og offentlig sektor, jevnfør bl.a. NØI-INDECOs kommentarer til Statsbudsjettet. Ulike former for horisontal organisasjon er grundig tatt opp, drøftet og belyst av International Institute For Organization Research (IIFOR), se spesielt IIFOR-rapporten Horizontal Organization - A brief survey som oppsummerer forskningsfronten angående horisontal organisasjon, bl.a. med målstyring (MBO). Men hele systemet må alt i alt legges om i demokratisk, horisontal retning for at Folkets krav om grønn økonomi og politikk skal slå gjennom i systemet - så det blir tilstrekkelig grønt og reelt demokratisk til bl.a. å løse klimakrisen, nasjonalt og globalt.
Det viktigste er at målene for samfunnsmessig målstyring, Folkets krav oppsummert over, er kjent og gjennomtenkt - og gjennomsyrer hele Byråkratiet, spesielt Finansdepartementene i de ulike land, som er viktige for koordineringen av den integrerte mikro-makro- økonomiske politikken og desentralisert planøkonomi, dvs. Folkets krav nedenfra implementeres, og ikke Byråkratiets lyst til mer makt og penger til toppene selv, på bekostning av miljøet og klimaet bl.a. Denne aktuelle økonomiske og politisk/administrative politikken bredt definert, er kjent som Cogrips-policy, basert på Cogrips-modeller, også kalt (på norsk) Samgreps-, eller Samgripings-modeller (etter Nobelprisvinner i økonomi Ragnar Frisch), sammenfattet i Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar + linker. Cogrips-policy innebærer også et effektivt - også miljømessig - og rettferdig økonomisk-politisk system, jevnfør bl.a. NØI-INDECOs kommentarer til Statsbudsjettet for nærmere presisering av disse begrepene m.v. Finansdepartementene i de eneste reelt demokratiske og ganske grønne landene Norge, Sveits og Island (les: signifikante anarkier) er ikke så ille organisert i denne forbindelse, men trenger ganske kraftige justeringer - bl.a. i grønt dynamisk perspektiv - for å fungere mer enn såvidt signifikant reelt & grønt demokratisk. Men Byråkratiet og systemet som helhet i disse tre landene kan trolig fungere som mønster for andre land, når - og etterhvert som - de nevnte justeringene er gjort. Det beste fra hver av de tre landene angående tilstrekkelig reelt & grønt demokrati til å løse klimakrisen m.v. kan da kombineres og sees i sammenheng til en optimal praktisk modell for Byråkratiet, som kan tilpasses de andre landene i verden, ut fra særegne trekk og forhold, for reelt, grønt demokrati av tilstrekkelig høy grad til å løse klimakrisen globalt. Fossil energi vekk -grønn energi inn - er hovedparolen nasjonalt, utenrikspolitisk og globalt.
Forøvrig - like for like grønn etterspørsel (verdi) fra fossilt, er bare en omtrentlig tommelfinger-regel i Cogrips-policy og -modell sammenheng. Av og til kan det trengs mer penger for å fremskaffe optimal mengde grønn energi (etterspørsel = tilbud) enn bare penger i dag brukt til fossil-energi-etterspørsel (verdi). Som nevnt i Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar innledningsvis, må fattigdomskrisen (som kan være relativ i de enkelte land) løses samtidig - for å få løst miljø- og klimaproblemet. Det går ikke an å tyne Folket med grønn avgiftspolitikk, uten bedre real-lønninger og subsidier på grønne alternativer, så disse velges frivillig. Da får man opprør som Gule Vester i Frankrike og Bompenge-partier i Norge, og bare mer og mer... Man får ikke løst miljøproblemer på denne måten. Byråkratiet må ta brorparten av byrdene, det går ikke an å overvelte alle utgiftene og ulempene på Folket. Cogrips-policy innebærer som nevnt sterk, grønn økonomisk vekst i BNP per capita, eksempelvis 3 - 5 prosent, eller helst mer, og en jevnere fordeling topp vs. bunn (en Gini-indeks lik 20% er et av målene for målstyringen). En tilstrekkelig flat struktur kan også gi bedre overveltnings-virkninger av avgifter og subsidier enn topptung samfunnspyramide, slik makt korrumperer og desto mer jo mer autoritært...
Altså fra nå av: Fossilt ut - Grønt inn, er hovedparolen i cogrips-policyen, men det er som nevnt flere kriser som må løses samlet (bl.a. fattigdoms- og arbeidsledighets-kriser og overbefolkning) for å få implementert løsningen på klimakrisen i praksis på en god måte, nasjonalt og globalt. Samfunnets politiske økonomi må innrettes slik at det ganske enkelt skal lønne seg både for Folket og Toppen å etterspørre, handle, bruke og investere i grønt framfor fossilt, om klimakrisen skal løses og helt nødvendig reelt, inklusive grønt, demokrati nasjonalt og globalt skal vinne frem i signifikant og tilstrekkelig grad for klimakrise-løsningen: Under 1.5°C menneskeskapt global oppvarming siden førindustriell tid. NB! Dette haster!!! I følge IPCC kan klimakrisen med 1.5°C menneskeskapt global oppvarming siden førindustriell tid komme allerede i 2030, dersom alt fortsetter i sin skjeve gang som før. Her må det nå kraftig lut til nasjonalt, utenrikspolitisk og globalt for å stoppe klimakrisen før den slår til for fullt, kanskje alt om 10 år. Og krise-tendensene blir verre og verre for hver dag som går for tiden. Dette har første og enorm prioritet - over alt annet og haster altså også enormt.
Byråkratiet i offentlig og privat sektor - Toppene i samfunnspyramiden - må fra nå av handle i samsvar med Folkets krav (se foran) - umiddelbart, og bruke kraftig lut i riktig miljø-retning og til løsning av de samgripende kriser. Dette gjelder ikke minst Finansdepartementet med hensyn til Statsbudsjettet, og NHO - som fra nå av må handle ut fra Folkets krav i dynamisk perspektiv. Folkets demokratiske krav fra bunnen av samfunnspyramiden (se over) må nå slå igjennom på styringen via alle relevante organer på Toppen av samfunnspyramiden. Og det må skje STRAKS!
Hilsen Jens Hermundstad Østmoe; Forskningssjef for NØI-INDECO-nettverket 18.01.2020.
Cand. oecon. (fra 1973) Jens Hermundstad Østmoe har bl.a. doktorgradskompetanse i samfunnsøkonomi etter en (bl.a. ekstern med NHH og UiO professorer) komité-bedømmelse ved opprykk til forsker 2 stilling ved Fondet for Markeds og Distribusjonsforskning, FMD, i 1982. Han har bl.a. vært førsteamanuensis ved ADH, nå Universitetet i Agder, og ved Høgskolen i Oslo, HiO, nå OsloMet - Oslo Metropolitan University - storbyuniversitetet. Østmoe har vært forskningssjef ved NØI-INDECO, et senter og nettverk av selvstendige forskere/konsulenter innen næringsøkonomi bredt definert, siden oppstarten i 1986. Han har en stor produksjon av bøker/forskningsrapporter og vitenskapelige artikler publisert i Norge og internasjonalt. Østmoes hovedfelter når det gjelder forskning er også internasjonalt kjent, se European Economic Association - Directory of Economists, European Economic Review - Journal of the European Economic Association. Volum 34 No 1, January 1990 p. 81, 153, 165, 180, 193, 208, North Holland, Amsterdam - The Netherlands.
Denne artikkelen er sendt som Newsletter (e-mail) til berørte m.v. og også publisert i Arkivet over Pressemeldinger m.v. bakerst i Cogripsmodel-Notatet - Notat til Ragnar Frisch Seminar og på GGSs-aksjons-side. 22.01.2020 ble den også publisert på WEC's hjemmeside.
Ad the economic crisis in Sudan: a call for use of Cogrips-policy to do away with the crisis. The World Economic Council, WEC, now co-operates with the Sudanese People's Council about Cogrips-policy, giving a small contribution to solve the many economic problems in the African country. As a part of this, we call on the new PM to use Cogrips-policy to solve the economic problems in Sudan. Via this resolution a.o.t. we will try to inspire and teach Mr. Hamdok, the new prime minister of Sudan, to do Cogrips-policy, i.e. based on integrated micro-macro economics - for full employment and environmentally sustainable growth, in Sudan. The appointment of the veteran economist Hamdok signals intentions to address Sudan's chronic economic problems, but we mean he and his staff can need an update in modern political economy, i.e. Cogrips-economics including Cogrips-models and Cogrips-policy, to solve the problems in the best and most efficient way, and as fast as possible. The new prime minister vowed to work towards ending the country's economic crisis and establishing peace. "I think with the right vision, with the right policies, we will be able to address this economic crisis," Abdalla Hamdok said after the swearing-in ceremony Wednesday 21.08.2019. "We will have a plan that will address the immediate challenges through our recovery program, addressing the felt need by the people: issues of inflation, availability of commodities, wheat, fuel, medicine and all that." NB! The "right vision, with the right policies" that's just Cogrips-policy, based on integrated micro-macro economic Cogrips-models and Cogrips-economics in general.
Furthermore, in a press conference after the swearing-in ceremony, the 15th Prime Minister of Sudan described the revolution (still just an embryo-revolution but may perhaps relatively soon be a real revolution) that among other things contributed to do away with the former regime in the country - and is still going strong, as: "the greatest revolution". And he added that his program will be based on the realization of the slogan "Freedom, Peace and Justice", i.e. words of wisdom from the Sudanese Spring Revolution, and basic to Cogrips-policy. Abdalla Hamdok holds a PhD and MA in Economics from the School of Economic Studies, University of Manchester, UK and a BSc. (honors) from the University of Khartoum, Sudan, so he should be capable to learn and use Cogrips-economics, -models and -policy, among other things the most efficient way to get Sudan out of the economic depression and achieve (close to) full employment, - although perhaps he is a bit old. We hope not too old for Cogrips-policy in Sudan. Best regards, P. Johansen for WEC and Mr. Dabanga, spokesperson for the Sudanese People's Council (SPC). Sources: WEC, IIFOR, SPC, Sudan Tribune and Al Jazeera 21.08.2019 - Updated.
The main part of the problems in the political economy of Sudan, is connected to the ongoing economic depression, a.o.t. with large unemployment and much poverty for the People, and the main cause for this economic-political crisis, is bad demand-management policy broadly defined, done by the central administration including the top rulers of the country, i.e. the Bureaucracy broadly defined - the upper class, over a long time. As mentioned, the most efficient way to get out of the depression and achieve (close to) full employment, and also achieve better pay and more benefits etc. for the People, is Cogrips-policy, see among other things (click on:) The WEC-resolutions for more information about this economic-political problem-solver, and solution to the crisis in the political economy. As mentioned, Cogrips-policy is among other things the most efficient way to do optimal demand-management broadly defined, i.e. to achieve full (or close to full) employment, and more good economic-political results for the People. NB! Cogrips-policy is also efficient in dealing with inflation problems, and shortages of key goods and services, say (as in Sudan recently) wheat, fuel, medicines; and more economic-political problems. Such shortage problems may have special, not systemic economic-political reasons, and may thus be relatively easy to solve reasonably quick, but they may also sometimes have causes related to the general economic-political crisis and large unemployment etc. and thus may be difficult to fix without solving the general economic-political crisis problem.
The plan vs. market mix is a part of the Cogrips-policy that may vary somewhat depending on the circumstances regarding the economic-political situation in a country. In general economic-political crisis and economic depression, may be met with some more plan in the political economy, preferably decentralized planning and regulations of markets, and a bit less autonomous markets. A larger proportion of decentralized planned economy including market regulations in a country, may sometimes be a part of the solution. When the economic-political crisis problem is solved, including (close to) full employment achieved, the plan vs-market mix can be changed in the direction of more autonomous markets again. To decide on these questions in detail, i.e. form the de facto optimal practical Cogrips-policy for a country in a period, we need both 1. the Cogrips-economics including the relevant Cogrips-models, and 2. empirical data describing the political economy and economic-political situation in detail, fit for the Cogrips-models, and 3. use econometric versions of the relevant Cogrips-models and Cogrips-economics in general, to 4. analyze, do research and decide on the actual and factual optimal Cogrips-policy, i.e. for a country (society; economic-political system) in a concrete period and economic-political situation. Here in this article/resolution we will not via empirical research analyze and decide on a practical, detailed Cogrips-policy for Sudan at this moment, just give some basic information about Cogrips-policy, based on Cogrips-economics included Cogrips-models, and give some rather general hints of possible Cogrips-policy for Sudan. We will mainly leave the practical problem-solving Cogrips-policy in Sudan for the coming years to the new PM Abdalla Hamdok and his staff, other economists in the economic-political system, and others interested, say politicians, economics-reporters in the news-media, and from the People, supposing they at large, after some time and study effort, have managed to be updated on Cogrips-policy, based on Cogrips-economics including Cogrips-models, as lined up here in this article/resolution.
You must be updated on Cogrips-policy. To be able to identify closer, and to solve - the main economic problems including the crisis in Sudan, in the most efficient way, that is via Cogrips-policy, you must as mentioned be updated on the matter, i.e. have knowledge and reasonable understanding of it, that is 1. about Cogrips-policy based on Cogrips-economics including Cogrips-models theoretically and in general, and 2. you also need relevant and reliable data - statistics - from the political economy in Sudan to use in the Cogrips-economic models for detailed practical problem-solving Cogrips-policy, i.e. via econometrics. Knowledge and reasonable understanding mean study and training and we will here in this first economic-political session in Sudan, mainly limit this to part 1. mentioned above, only using some general facts to shed light on Cogrips-policy and not go into details of part 2. and econometrics. The necessary teaching material is presented below in this resolution/article. Later on, in another economic-political session, we will probably continue with the detailed practical Cogrips-policy part, i.e. part 2. - via econometrics, but not this time. First you must learn part 1. above reasonable, i.e. achieve general, theoretical knowledge about Cogrips-policy etc., here as mentioned just illustrated by some general facts, and not by detailed statistical data from Sudan. Before we introduce the study material more in detail, we will describe Cogrips-economics and -policy a little more, and its place in the economic-political picture.
Cogrips-economics and –policy are political economy supporting - and working in the interests of - "the little man and woman", the People, here seen as a class as opposed to the superiors in income and/or rank, economic and/or political/administrative, i.e. the Grassroots. And it works against top-heavy societal pyramid, with lots of richness and/or power to the top, the upper class; and for more horizontal organization broadly defined, economical and political/administrative. Cogrips-economics and –policy are thus 1. revolutionary class-struggle political economy, for the People’s interests as a class, and 2. against power and/or richness to the top, the superiors and authorities, that is the Bureaucracy economical and/or political/administrative broadly defined in private and public sector, the upper class. Thus as indicated already, Cogrips-economics, including Cogrips-models and Cogrips-policy, is for the class-interests of the People, i.e. the bottom of the societal pyramid including the frontline workers (the Grassroots), and against the class interests of the Bureaucracy, the upper class and top over the bottom of the societal pyramid.
The situation in Sudan. It is a general fact that the Bureaucracy class in Sudan is big and powerful and greedy - the old and possible new, and is a main reason for many problems, included powerlessness and oppression and poverty of the People, i.e. the bottom of the societal pyramid - the Grassroots. And Cogrips-policy will as indicated above, contribute to more horizontal organization, including a smaller bureaucracy class - and less powerful and greedy; and then less repression and poverty for the People in Sudan, as well as less unemployment. This is today and in the future a must for the economic-political practice in the country. The protests of the Sudanese Spring started with, and continue to be, focusing much on economic-political problems, and the People demands (commands) solutions to these problems. This demand of the People is consistent with Cogrips-policy, the best economic-political problem-solver from the People's perspective, although Cogrips-policy is today little known by the People. The Bottom - Up approach to the societal management means that this demand (command) of the People - the bottom - should be taken into account in practical policy from higher up, and thus Cogrips-policy should ideally be a central part of economic politics in Sudan soon. This may however probably be stopped by counter-revolutionary forces broadly defined, including rule by stupidity and the Bureaucracy class, forces that today in the hybrid military-civil system often manage to sabotage the revolutionary Bottom - Up approach. The new system in Sudan is still mainly a top-heavy pyramid, but has also some revolutionary Bottom - Up - libertarian - tendencies. These tendencies are however probably not strong enough to place the revolutionary Bottom - Up Cogrips-policy as a central element in the general economic-political policy of the system in the short run. What will happen in the long run regarding this case, is however a more open question. Thus we think it is important to publish this resolution/article about Cogrips-policy on the internet and spread it in general, to let it be more known to the People and others, to achieve a long time pressure to introduce it in the policy of the Central Administration. Time will show.
This class-struggle perspective on Cogrips-policy is valid in general, for the world as a whole and the different countries, and especially valid for Sudan, where there is ongoing revolutionary class struggle from the People, for their own economic-political interests, and thus against the interests of the Bureaucracy - the upper class, in the country. That is a fight and struggle for more horizontal organization, against the top heavy societal pyramid in Sudan, and more. In this connection the WEC co-operates with the Sudanese People, The Sovereign - in the Bottom - Up Management System of the Central Administration, - via the People's Council - for establishing Cogrips-policy based on Cogrips-economics including Cogrips-models, and use of this form of political economy including policy, in Sudan. Cogrips-policy, based on Cogrips-economics and Cogrips-models, is probably an almost perfect revolutionary political-economic policy for Sudan, i.e. for the People, as opposed to the Bureaucracy in the country - the old and possible new. Cogrips-policy is also consistent with a Bottom - Up management approach, strengthening the People's position. Cogrips-policy is as indicated above, just what is needed in Sudan now and in the future, i.e. for making a less top heavy pyramid system, including less unemployment and better pay for the People, also better environment, and thus end of the economic cricis, and achieving more horizontal organization, more democracy. This is just what Mr. Hamdok and relevant staff of the Transitional Central Administration, should do i.e. Cogrips-policy to end the crisis and more. But first they must of course learn it, be updated on the matter.
Cogrips-policy for Sudan, by the new prime minister Mr. Hamdok with staff, and more. This means that the WEC and IIFOR in general, together with the Sudanese People's Council, work for establishment and use of Cogrips-policy based on Cogrips-economics including Cogrips-models in the country, by 1. the new prime minister, the economist Abdalla Hamdok and his staff of the new cabinet, the Council of Ministers, and 2. also by the Sovereignty Council and the rest of the Transitional Central Administration of Sudan dealing with or involved in political economy.
Cogrips-policy is the best economic-political policy for Sudan. Cogrips-policy, based on Cogrips-economics including Cogrips-models, is probably superior for economic-political problem-solving relatively to other economic policy, say, based on Keynes-models, marxist economics and other types of economics, in general, and also for Sudan. Thus, Cogrips-policy is probably the best economic-political policy for Sudan.
First training in Cogrips-policy etc. for Mr. Hamdok and more, to be updated on the matter. Necessary to establish and use Cogrips-policy in the Transitional Central Administration of Sudan, is of course information about - and training of - Mr. Hamdok and his staff and all the other persons working with political economy in the Transitional Central Administration, - in Cogrips-policy and Cogrips-economics including Cogrips-models. First as mentioned mainly theoretical, but later (perhaps after another economic-political session on the matter arranged by WEC, IIFOR and the People's Council) also more practical via econometrics. This training must in practice be based mainly on self-study by the mentioned persons involved included Mr. Hamdok and staff, i.e. a study of all of the WEC-resolutions and the (click on:) WEC-website in general, including study of the material at all the links in the text and at the top of the page. These links mainly deal with different aspects of libertarian, real democratic, political economy broadly defined, i.e. related to Cogrips-policy etc., and also include some mathematical economic Cogrips-models, which is not necessary to learn to get just a general idea of Cogrips-policy, but necessary for deeper knowledge and practical use of Cogrips-policy via econometrics. Ad part 2. mentioned above, IIFOR and WEC of course have econometric versions of several Cogrips-models, and have contributed to practical economic-political problem-solving by Cogrips-policy several times before. But we have at the moment not capacity to make detailed Cogrips-policy for Sudan. This should be done, say, by Mr. Hamdok and his staff, and as soon as possible. Cogrips-policy, based on Cogrips-economics including Cogrips-models, should be a basis for economic-political research and politics in Sudan in general. NB! It is possible to write an e-mail to WEC for help with the study in case of trouble or for answers to questions in general, say, by using the Contact-WEC e-mail-link at the bottom of (click on:) the web-page of WEC. You are all very welcome to take contact with us, for dialogue - and if you have any questions. We will try answer in the best possible way, and usually quick.
Later practical economic-political problem-solving in Sudan by Cogrips-policy, from Mr. Hamdok and more. When the updating on Cogrips-policy, i.e. the study and training of Cogrips-policy based on Cogrips-economics including Cogrips-models, are over, including both part 1. and part 2. mentioned above, the Transitional Central Administration of Sudan broadly defined, with Mr. Hamdok in front, should be well prepared to deal with the economic-political problems, including the economic crisis, in the country. NB! The updating on Cogrips-policy, i.e. the study and traning in Cogrips-policy, based on Cogrips-economics including Cogrips-models, will probably for most persons take some time, for some persons may be several months. This is however a good investment in education of modern, updated political economy broadly defined, including economic crisis management, solving of other economical problems in an efficient way, and for good economic-political policy for the People in general, all based on Cogrips-policy. The problem with the economic crisis and several other more difficult economic-political problems in Sudan, will however probably take long time to solve, even with Cogrips-policy. This is a probable fact that should not be denied, and we have now contributed to inform the Sudanese people about it.
Cogrips-policy implies a good plan for solution to the economic crisis in Sudan, but Mr. Hamdok and staff may perhaps never implement it. NB! The large problems in the political economy in general, and especially the economic-political crisis - in Sudan, are now in principle and as a plan solved by Cogrips-policy, based on Cogrips-economics including Cogrips-models, from Mr. Hamdok and his staff. This plan for the solution to the large economic problems and economic-political crisis in Sudan, by Cogrips-policy from Mr. Hamdok and his staff, should be implemented as soon as possible! This may however never happen and even if it happens, it may take considerable time to fix the political economy. It is not even sure Mr. Hamdok and staff will follow up and 1. take the updating on Cogrips-policy, and 2. the rest of the project - at all. Not following up this project from Mr. Hamdok's side, will however be stupid of him, for Cogrips-policy is as mentioned very likely the best economic-political policy for solving Sudan's crisis and large problems in the political economy in general. But he may very well be so stupid - we don't know him at all, and have really small expectations. We just via this resolution present the best solution for the Sudanese People and the Sudanese Spring Revolution, and document and publish it. And we will continue to push for Cogrips-policy in Sudan, in the short run, but mainly in the long run. If on the other hand Mr. Hamdok and staff (surprisingly) follow up, to learn part 1. the theory of Cogrips-policy etc., that may take some time, and part 2. about the practice of Cogrips-policy etc. may also take some time. And collecting of relevant statistics and the econometric research will take time. Thus, all in all it may take a long time before the political economy of Sudan finally is fixed, but we have at least pointed to the best road ahead - the plan can be implemented, perhaps within the transitional period for the cabinet lead by Mr. Hamdok, of about 3 years. And that would be good for the Sudanese People! For implementation of the here outlined plan for Cogrips-policy soon! Best regards and revolutionary greetings, from P. Johansen for WEC and Mr. Dabanga, spokesperson for the Sudanese People's Council (SPC). Sources: WEC, IIFOR and SPC, 26.08.2019. NB! This resolution, updated and corrected, was distributed to Sudan and world wide as a press release from the People's Council in the morning 27.08.2019.
The economic depression is far from over. Cogrips-policy is the way out of the crisis
Unemployment rate: For the world in 2017 was 5,49 percent. In 2016 it was 5,53 percent (Source: World Bank). Almost no improvement from 2016 to 2017. The economic depression is far from over. The most efficient way to get out of the depression and achieve full employment is Cogrips policy, see the WEC resolutions below in this file for more information about this solution to the crisis. A larger proportion of decentralized planned economy is a part of the solution. Source: WEC 20.12.2018.
13.02.2019. Global unemployment down, but too many working poor: UN. The global unemployment rate inched down last year, the UN said Wednesday 12.02.2019, warning though that jobs often failed to guarantee decent living, with some 700 million workers wallowing in poverty. Unemployment around the world fell last year (2018) to 5.0 percent -- from 5.1 percent in 2017 -- for the first time dropping to the level seen before the global financial crisis hit in 2008, the International Labour Organization said. But in its flagship "World Employment and Social Outlook" trends report, the ILO also raised serious red flags about the health of the planet's job market. Deborah Greenfield, ILO's deputy director-general, told journalists in Geneva that the decline in global unemployment "is projected to stall", amid "uncertainty on many fronts," and a "deteriorating economic outlook".
The UN agency said it expected the jobless rate to remain at roughly the same level this year and in 2020, although the number of unemployed people should swell by two million to a total of 174 million next year as a result of the expanding labour force. In particular, the report highlighted the hundreds of millions of people who remain poor despite holding one or more jobs. In fact, it found that a majority of the 3.3 billion people employed around the globe last year suffered a "lack of material well-being, economic security, equal opportunities or scope for human development." "Being in employment does not always guarantee a decent living," ILO research director Damian Grimshaw said in a statement, pointing out that "a full 700 million people are living in extreme or moderate poverty despite having employment."
The report found that a full 61 percent of all workers worldwide, or two billion people, are in so-called informal employment, with little to no social and contractual protections. Greenfield cautioned that some new and emerging business models, such as using new technologies to create temporary work through web-based platforms for things like ride-sharing services, could expand that number if not regulated properly. "Without the right policy measures it could easily add to the informal labour force," she said. Among other issues highlighted in the report was the lack of progress in closing the gender gap in labour force participation, especially in the Arab states, North Africa and southern Asia. ILO found that just 48 percent of women are in the workforce, compared to 75 percent of men, meaning that around three in five employed people last year were men. © 2019 AFP. Source: France 24
We are for free international trade, i.e. based on free contracts - not slave contracts - as the TTIP and similar
We, the anarchists - real libertarians - are for free international trade, i.e. based on free contracts - not slave contracts - as the TTIP and similar. We call for direct actions against the TTIP and similar, of course without ochlarchy (mob rule broadly defined). The best solution to achieve full employment is Cogrips-policy based on Cogrips-models. We call for Cogrips-policy world wide. Source: WEC 06.10.2016.
World economic forecasts for 2016 and a scenario for full employment. Demand increase must be doubled to achieve full employment
Full employment is achieved when (1) the total demand = (the labor force*productivity*pricelevel). The solution to the crisis is proper demand management, i.e. the condition (1) fulfilled. This mainly means increased demand by the people via increased purchasing power for ordinary men and women, managed by the central administration. This is Cogrips-policy. (The Keynesian policy with increased public consumption will not work, mainly because of crowding out.) With severe economic crisis this (Cogrips-policy) includes large funds financed by quantitative easing to finance the necessary increased demand by the people. All libertarians should join in this call for proper demand management, Cogrips-policy, i.e. (1) - NOW! Increased demand is the key factor for solving the economic crisis. Demand/(pricelevel*productivity) = employment. The world economic forecasts for 2016 are: increase in labor productivity 2 percent, increase in labor force 1 percent, increase in total demand nominally 7 percent, inflation, increase in price level, 4 percent, unemployment 6 percent. Full employment cet. par. is achieved if nominal demand is increased from 7 percent to 14 percent. Total demand for the world is public and private investment plus public and private consumption. Percentage increases from 2015 to 2016. Source: WEC 20.01.2016.
Increased demand is the key factor for solving the economic crisis. Demand/(pricelevel*productivity) = employment. The crisis is far from over
Full employment is achieved when (1) the demand = (full employment*productivity*pricelevel). The solution to the crisis is proper demand management, i.e. the condition (1) fulfilled. This mainly means increased demand by the people via increased purchasing power for ordinary men and women, managed by the central administration. This is Cogrips-policy. (The Keynesian policy with increased public consumption will not work.) With severe economic crisis this (Cogrips-policy) includes large funds financed by quantitative easing to finance the necessary increased demand by the people. A correct exchange rate for the currency is also a necessary part of proper demand management. All libertarians should join in this call for proper demand management, Cogrips-policy, i.e. (1) - NOW! Increased demand is the key factor for solving the economic crisis. Demand/(pricelevel*productivity) = employment. Source: WEC 24.07.2012.
At new year 2015 the crisis is far from over. In the USA the official unemployment rate U3 is down to 5-6 percent, but the more realistic U6 is still above 10 percent. In the Eurozone the official unemployment rate is still above 10 percent. Thus, there is still economic depression in USA as well as the Eurozone. Thus the need for efficient demand management broadly defined is still very much on, i.e. Cogrips-policy. Source: WEC 19.01.2015.
May Day 2012 Manifesto by IWW
The fight against the unenlightened plutarchy and statism including ochlarchy, and for anarchy i.e. real democracy, continues world wide. It is more than five years since the financial crisis hit, followed rapidly by a larger economic crisis. The resulting shock added millions to the already teeming ranks of the jobless and threw millions more into precarious work. Many workers have lost good jobs and far too many have also lost the fundamental rights that went with them.
There is only one cause of the crisis: lack of proper demand management. Proper demand management is more easy done in anarchy than archy, look to Norway, but anarchy is not necessary for proper demand management. The main player in demand management is the central administration be it anarchist or archist. The most efficient demand management is Cogrips-policy, see the WEC resolutions. We call for Cogrips-policy world wide for proper demand management and the end of the economic crisis. Source: International Workers of the World 28.04.2012.
WEC calls for a small global tax on international exchange and concentration on national demand growth world wide
Ad the G20 meeting in France 03-04.11.2011 and similar meetings and UN. WEC calls for a small global tax on international exchange and concentration on national demand growth world wide. Use cogrips-models and cogrips-policy for optimal demand management broadly defined. Source: WEC 03.11.2011.
Most of the OECD countries are ruled by the unenlightened plutarchy with economic depression.
Keynes is out. Only Cogrips-policy can create full employment!
Most of the OECD countries are ruled by the unenlightened plutarchy with economic depression. Keynes is out. Probably only Cogrips-models and -policy can create full employment in 2011-12-13! New York Times 07.01.2011 stated that "Slow job growth dims expectation of early revival" in USA, continuing "The year 2010 ended on a disappointing note, as the economy added just 103,000 jobs in December, suggesting that economic deliverance will not arrive with a great pop in employment. Signs still point to a long slog of a recovery, with the unemployment rate likely to remain above 8 percent — it sits at 9.4 percent after Friday's report — at least through the rest of the president's four-year term... The unemployment rate, which is based on a separate survey of households, fell from 9.8 percent in November, though a substantial part of that drop is caused by Americans leaving the work force." See NY-Times - Jobs?.
WEC's unenlightened plutarchy scenario with forecasts for a.o.t. unemployment in 2010, see below, became approximately a reality in several of the OECD countries, say, in the Euro-zone at large, and in the USA. The official registered unemployment rates (based on surveys with statistical errors), were about 10% but would have been higher if discouraged people had not left the workforce. The real unemployment rates may thus be much higher than about 10 percent, perhaps about 12.5 percent in several OECD countries, as indicated by WEC. The OECD unemployment statistics mainly confirm this analysis of WEC and IIFOR, see OECD - Labour and unemployment statistics. The Anarchy of Norway had the lowest unemployment rate in Europe in 2010, mainly due to an economic policy compatible with Cogrips-models and Cogrips-policy.
As mentioned, probably only Cogrips-models and -policy can create full employment in 2011-12-13, see the Basic ideas of Ragnar Frisch with links. Economic Nobel Prize winner Ragnar Frisch made the first attempts to create Cogrips-models and -policy, and todays' Cogrips-models and -policy are inspired by these works by Frisch. Cogrips-models and -policy are mainly compatible with libertarian economics, as opposed to bureaucracy economics, see, say, No to euro - Full employment - Libertarian vs bureaucracy economics - IJA 1 (32) and The general theory of libertarian economics. More information about the best alternative to the unenlightened plutarchy, i.e. real democracy and horizontal organization, see (click on) System theory , Real democracy , Horizontal industrial organization and Horizontal organization - a brief survey. It is time for Cogrips-models and -policy, and libertarian economics in general! Meanwhile the International Workers of the World calls for action against the unenlightened plutarchy. Theoretically, as a special case, the unenlightened plutarchy can have about full employment, but not in general and also looking at history and the longer run this case can be practically ruled out. Source: WEC 08.01.2011 - updated.
The real unemployment rate may be 40% higher than the official registered unemployment rate
in 2011 and the difference may be increasing
The OECD, UN and national statistics first and foremost present the official registered unemployment rates. These numbers are per 2011 depressingly large, more than 5 percent -- indicating economic depression, in most OECD-countries. However especially in times of economic crisis, these figures most likely severely under-counts the true number of unemployed. For instance, the official registered unemployment rate doesn't count 1. those people who don't have a job and have given up looking for one, or 2. those who have found marginal part-time work but still can't make ends meet and are still looking for more work or a full-time job. Some countries present alternative measures of labor underutilization, such as USA. In the US these concepts include:
1.1. Persons marginally attached to the labor force, i.e. those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not currently looking for work.
1.2. NB! However people that indicate that they want and are available for a job and not have looked for work sometime in the past 12 months, are not accounted for in the US statistics. This may be a significant number, since the crisis started in 2008, and this figure will most likely increase over time as long as the crisis lasts. IIFOR and WEC call those the long time discouraged workers.
1.3. Per definition the real unemployment ratio = [(real labor force - real employment)/real labor force]100%. A crude estimate of the size of the real labor force is based on same percentage of the population between 16-67 years as the registered labor force in percent of the population between 16-67 years in good economic times, say, the average for 1998-2000. The real unemployment rate includes both the marginally attached and the long time discouraged workers.
1.4. In USA the official unemployment rate was 8.8 percent in March 2011. Adding the marginally attached unemployed the rate was 10.3 percent, see US Bureau of Labor Statistics - Table A-15. However including the long time discouraged workers, the real unemployment rate may be, say, 12-13 percent for USA in March 2011, perhaps even more. This is a quite conservative estimate related to 1.3.. Thus the real unemployment rate in USA may very well be about 40 percent higher than the official registered unemployment rate in 2011, and may be increasing toward 60 percent higher in the next years. The percentage difference between the real unemployment rate and the official registered unemployment rate may perhaps be about the same in other OECD-countries, however this is mainly a question of further research, a.o.t. based on 1.3..
2. Persons employed part time for economic reasons, i.e. those who want and are available for full-time work but have had to settle for a part-time schedule. This is more a question of underemployment than unemployment. However adding those, but not the long time discouraged workers, the underemployment rate was 15.7 percent in USA for March 2011. Adding the long time discouraged workers, the underemployment rate may be 17.5-18.5 per cent in USA for March 2011. Source: WEC 08.04.2011.
Apropos G-20 Seoul: world export = import; correcting imbalances in
trade will not solve the depression problem, a big hike in world total demand will
The 2010 G-20 Seoul Summit was the fifth meeting of the G-20 heads of government, to discuss the global financial system and the world economy. It took place in Seoul, South Korea on November 11–12, 2010. The headline issue was currency war and addressing trade imbalances. Leaders were generally unable to agree on key issues, with commentators noting the absence of the sense of unity that had been present at summits during the worse of the global financial crisis of 2007-2009. IMF managing director Dominique Strauss-Kahn said this particular summit was "more of a G20 debate than a G20 conclusion". More agreement on correcting trade balances would however not contributed significantly to solve the crisis: World export = import; correcting imbalances in trade will not solve the depression problem, a sufficient hike in world total demand will. Exporting the crisis will not solve the problem, only distribute the unemployment around the world. Source: WEC. 20.11.2010.
The solution: Quantitative easing for the people - not the bureaucracy!
The USA (and also the Euro-countries seen all in all) is in deep economic depression with around 10 percent unemployment-ratio. The Federal Reserve in USA, the central bank, is in the autumn 2010 doing quantitative easing, i.e. creating fresh money, for the bureaucracy in the USA. The Fed is not directing the fresh money directly to the people, seen as a class as opposed to the superiors in rank and/or income [i.e. the bureaucracy broadly defined], and thus creating optimal increased demand by the people. The Fed's monetary policy type quantitative easing is thus bureaucracy economics, not anarchist economics.
The fresh money from the Fed will probably a) partly fall into the well known "liquidity trap", b) partly create increased profitmargin to the bureaucracy, and inflation, especially later on (and thus be a "hidden tax"), c) partly be spent on too high, disoptimal, public consumption, may be with "crowding out" effects, etc. and thus not create an optimal increase in the demand from and for the people.
The quantitative easing shold not be combined with traditional Keynesian monetary policy, but should be combined with libertarian fiscal and financial policy. Say, give a lump sum gift directly to the people, or cut taxes for the people, and similar. That will be consistent with anarchist economics. Stop the Fed's monetary policy type bureaucracy economics quantitative easing, it will not work optimal. Instead, in short: Quantitative easing for the people - not the bureaucracy! Sources: WEC and AIIS. 30.10.2010.
The unenlightened plutarchy scenario is becoming a reality in the USA - Unfortunately Obama and USA don't follow the advice from the WEC and must face the music
Gloomy picture for the people in the USA. More Americans fell into foreclosure in July as a sour job market kept them from making payments, and banks took over homes at a near record pace. Registered unemployment held at 9.5 percent in July but would have been higher if discouraged people had not left the workforce. The real unemploymentrate may thus be much higher than 9.5 percent. Pessimism over the economy is rising and the grim mood could hurt both parties in the November 2 congressional elections, according to an NBC News/Wall Street Journal poll released on Wednesday 11.08.2010. Almost two-thirds of Americans believe the economy will worsen before it gets better, up from 53 percent who felt that way in January, the poll found.
Nearly six in 10 of those surveyed said the country is headed in the wrong direction, a percentage that has held steady in NBC/WSJ polling throughout the year. More than half of respondents said they disapprove of the way President Barack Obama is handling the economy. The poll also found Americans were split on Obama's overall job performance, with 48 percent saying they disapprove and 47 saying they approve. Unfortunately Obama and USA don't follow the advice from the WEC and must face the music. Sources: WEC, Reuters, IIFOR, AIIS, NBC News/Wall Street Journal.12.08.2010.
G20 Finance Ministers risk tipping the global economy into a 'double-dip' depression
WEC and the International Workers of the World have attacked the outcome of the G20 Finance Ministers and Central Bank Governors meeting in Busan, Korea, on 5 June. The G20 Finance Ministers said they were meeting at a 'critical juncture' to secure global recovery and address economic challenges and risks. They have failed on both counts. Their decisions risk undermining recovery, whilst they have failed to move forward the agenda for re-regulating financial markets.
The message on the economic recovery represents a shift from the Finance Ministers' April meeting where they cautioned against premature withdrawal of stimulus measures. In Busan, the focus was on the importance of "sustainable public finances" and the need for many countries to "accelerate the pace of consolidation". The Finance Ministers' conclusions do not add up. Forecasts suggest that the global economy is still on life-support from public sector stimulus, yet the responsible of the public sectors are now calling for a shift from supporting jobs to cutting deficits that could push the global economy into a 'double-dip' depression.
On financial reform, the Busan meeting failed to decide on what to do next. The Ministers could not even agree on principles for international taxation of banks and other financial institutions as called for by the IMF, much less the adoption of a financial transactions tax (FTT). Nor did they find minimum common ground for strengthening the Basel II Framework regulating bank loans.
The Busan meeting constitutes a setback for the G20. In the meantime, it is working families who again and again are paying, and will continue to pay, for the consequences of greed and irresponsible risk-taking by bankers and financial speculators. The need for further action on jobs and re-regulating finance is the message the global labor movement will take to the G20 Leaders meeting in Toronto at the end of the month. The unenlightened plutarchy prevails. Sources: WEC, IWW and AIIS. 07.06.2010.
PS. 18.06.2010. Obama warns G20 leaders on budget cuts, BBC reports. Barack Obama has warned against cutting national debts too quickly as it would put economic recovery at risk. In a letter to G20 leaders, the US president said that while it was important to put in place "credible plans" to cut deficits, withdrawing economic stimulus early was dangerous. The leaders of the world's 20 leading economies are due to meet in Toronto on 26 June. Mr Obama said the priority of the meeting should be "to safeguard and strengthen the recovery". "Better late than never, Obama", the WEC comments.
PPS. 27.06.2010. WEC supports the resolution "IWW protest against Toronto G20: The policy of a) the uninformed of real economics and b) bureaucracy economics", by the (click on:) International Workers of the World, etc. BBC 28.07.2010. reports: "G20 summit agrees on deficit cuts by 2013. Leaders at the G20 summit in Canada have agreed to cut national budget deficits while endeavouring to promote economic growth. Correspondents note that every major G20 country had already committed to halve deficits within three years. Host Stephen Harper, the Canadian prime minister, said that despite these cuts, short-term economic stimulus measures would still be needed. Proposals for a global levy on banks have been dropped, Mr Harper said. Instead, that will be left to individual countries." The WEC declares that 1. with the policy of the G20 Toronto meeting, and 2. not proper demand management toward full employment as job no 1., 3. a double dip or continued economic depression is very likely.
PPPS. 28.06.2010. Later BBC has updated their report, Harper is now quoted the following way: "Host Stephen Harper, the Canadian prime minister said short-term stimulus measures would be needed to get economies moving... The head of the International Monetary Fund, Dominique Strauss-Kahn, said focussing on budget deficits was oversimplifying the problem, because the situation differed from one country to another." A small improvement, the WEC comments, and also presents the most economic part, point 4, of the resolution "IWW protest against Toronto G20: The policy of a) the uninformed of real economics and b) bureaucracy economics" here:
"The Anarchist International and the International Workers of the World call for direct actions, i.e. demonstrations with dignity and without ochlarchy, against the authoritarian policy of the G8-G20 and for horizontal organization, i.e. socialism and autonomy, now and later. The IWW, AI and anarchists in general arrange, support and participate in direct actions, i.e. strikes, general strikes, rallies, etc., against the unenlightened plutarchy world wide, but are clearly - and fight - against ochlarchy and ochlarchists/ochlarchs and authoritarian tendencies in general!
The anarchists are against the State in the meaning of societal x-archy, where 'x' is a lot, but not 'an', and do and support direct actions against the State, i.e. top heavy societal pyramid, economical and/or political/administrative. Cut bureaucracy costs - increase the demand of the people - the people seen as a class as opposed to the superiors in rank and/or income - for full employment - against the unenlightend plutarchy of IMF, WB, euro and the Euro-zone, EU in general, and the G8 and G20 countries.
The anarchists thus call for proper demand management now and later. In general it must pay to work, for the people. More information about the fight against the unenlightened plutarchy - and for full employment, see No to euro - Full employment - Anarchist vs bureaucracy economics - IJA 1 (32) , the WEC resolutions , The unenlightened plutarchy and The general theory of anarchist economics. More information about the best alternative to the unenlightened plutarchy, i.e. real democracy and horizontal organization, see (click on) System theory , Real democracy , Industrial organization and Horizontal organization - a brief survey.
Associated Press reports 27.06.2010 about the G20 meeting: World leaders pledging to reduce global deficits. As global deficits equal global surplus, this is the same as doing away with surplus, and is the policy of a) the uninformed of real economics and b) bureaucracy economics. It is typical unenlightened plutarchy. This is counterproductive, especially when the world economy very likely is entering a double dip depression, and with about 10% unemployment in many countries, including USA and the Euro-zone. Economic depression is per definition equal to or more than 5% unemployment ratio. This is certainly not the right time for reducing surplus = deficits, but time for proper demand management. Mandated persons! Do it now! Especially, weakening the over-evaluated US $, the British £ and the Euro, i.e. the currencies of the main "deficit countries", is a good thing in the present situation, not the opposite."
WEC: Trillion-dollar euro rescue won't solve the low growth and depression problem, but it is a small step in the right direction
A $1 trillion rescue for the euro has halted market panic in its tracks for now - but may not be enough to save the shared currency in the end. Swedish Finance Minister Anders Borg said in advance it was vital to reach a deal. "We now see… wolf-pack behaviors [on markets] and if we will not stop these packs, even if it is self-inflicted weakness, they will tear the weaker countries apart." After weeks of dithering, the European Union finally put serious money on the table to prevent its government debt crisis from mushrooming - and sinking the euro, stocks and the global recovery.
But the EU still needs to find ways to keep its member governments from spending their way to bankruptcy - and disastrously handing the others the bill, as Greece did to start the crisis. And ultimately it needs to get its sluggish economy going if it wants to end the threat to its cherished currency union. After frantic talks lasting into the early hours of Monday, European officials agreed the 16 countries that use the euro would put up some euro440 billion in loans, with the EU adding euro60 billion and the International Monetary Fund some euro250 billion. The European Commission would raise the money in capital markets, using guarantees from member goverments, and lend it to crisis stricken countries so they can pay their bills. Many questions were not answered, such as how the money would be dispensed and on what terms. WEC declares: The trillion-dollar euro rescue won't solve the low growth and depression problem, but it is a small step in the right direction. Sources: WEC and AP. 10.05.2010.
From recession to depression - Depression is per definition equal to or more than 5% unemployment ratio
Recession is a period of general economic decline; typically defined as a decline in GDP for two or more consecutive quarters. A recession is typically accompanied by an increase in unemployment. A recession is generally considered less severe than a depression, and if a recession continues long enough it is often then classified as a depression. More precise the economy is in depression if the unemployment ratio, the number of unemployed measured in percent of the labor force, is equal to or more than 5 percent. Greece, Spain, and the Euro-zone countries seen all in all, and the USA, are at the moment in economic depression. NB! An economy may be in depression even if it is going out of recession. Depression is typically a function of unenlightened plutarchy.
In the name of the social-individualist anarchist and Nobel economic prize winner Ragnar Frisch: Think real economics - not fiction/money quasieconomics. Frisch introduced the term "unenlightened plutarchy", and was warning about the mismanagement of the unenlightened plutarchy, see basic ideas of Frisch , and this is just the trend that is happening. Mandated persons! Do proper demand management now! Do away with the depression! Click on the link "General theory of economics" above, for information on how to do proper demand management - anarchists economics, in addition to the resolutions on this file! Sources: WEC and AIIS. 08.05.2010.
No to the precept: 'socialize the losses and privatize profits'
We, the people, should not pay the economical plutarchists' crisis! The WEC is clearly against state intervention to save private capitalist interests following the precept: "socialize the losses and privatize profits." The policy putting billions of public money, our - the people's - money, to save banks and shareholders, while it is "impossible" to find the lowest peel to meet social needs, must stop. Let the relatively rich, the greedy economical plutarchists, pay for the crisis. Sources: WEC and AIIS. 28.04.2010.
What must be done to achieve 3.3% unemployment: Create large funds in USA and the Euro-zone, financed by quantitative easing, and use them to cut
taxes and increase social welfare benefits for the people, and increase demand 14% nominally from 2009 to 2010
What must be done to achieve 3.3% unemployment: Create large funds in USA and the Euro-zone, financed by quantitative easing, and use them to cut taxes and increase social welfare benefits for the people - not the bureaucracy - and increase demand 14% nominally from 2009 to 2010. This increased supply of money and total demand nominally will probably not increase inflation significantly in the present situation, assuming that the "(un-)natural unemployment ratio" is about 3,3% in USA and the Euro-zone. For the definition of the people vs bureaucracy, click on the link "Industrial organization" above.
PS. 23.02.2010. A wave of strikes and demonstrations directed against the unenlightened plutarchy are - and will be - happening all over Europe and other parts of the world. These strikes and demonstrations, i.e. direct actions, are backed by the International Workers of the World. Follow the news, comments and resolutions about the strikes and protests, at the IWW Web-site .
WEC warns against growth in the bureaucracy - the countercyclical policy to achieve the 3.3% unemployment scenario should benefit the people
As mentioned, the WEC supports the people, seen as a class as opposed to the superiors in rank and/or income, i.e. the bureaucracy. The much more countercyclical fiscal and monetary measures that must be set in action to achieve the 3.3% unemployment scenario for 2010 in USA and the Euro-zone, including Greece, also by more quantitative easing, must not result in growth in the bureaucracy. Especially not growth in the public bureaucracy, and much public consumption. How this should be done, see a) "Anarchist vs bureaucracy economics" and more at IJA 1 (32) , and b) anarchist economics in general, see the links at the top of this Web-page. Source: WEC. 14.02.2010.
WEC warns about the unenlightened plutarchy scenario - Only 3% growth in total demand nominally from 2009 to 2010
implies probably about 12.5% unemployment in USA, the Euro-zone and Greece in 2010
The updated data for growth in total demand and GDP for USA, the Euro-zone countries and Greece, indicate only marginal or no growth, and the unemployment is about 10%. What will happen if this trend continues in 2010?
As mentioned, the WEC supports the people, seen as a class as opposed to the superiors in rank and/or income, and says: Production is real income, not money in the bank - you can't eat money, the things with real economical value are produced goods and services and natural resources. GDP is real income. In the name of the social-individualist anarchist and Nobel economic prize winner Ragnar Frisch: Think real economics - not fiction/money quasieconomics. Frisch introduced the term "unenlightened plutarchy", and was warning about the mismanagement of the unenlightened plutarchy, see basic ideas of Frisch , and this is just the trend that seems to be happening. This also implies a double dip, or continuing and worsening dip.
If the USA, the Euro-zone countries and Greece a) are not following the anarchist economic plan lined out in the chapter "What must be done in USA? A 3.3% unemployment scenario for 2010" - also valid for the Euro-zone countries including Greece, but b) let the unenlightened plutarchy rule and present trend continue, c) the following will probably happen: Only about 3% increase in total demand nominally, and the same growth in GDP nominally, from 2009 to 2010.
A likely unenlightened plutarchy scenario is the following. 10% unemployment in 2009 and probably 2% increase in the labor force from 2009 to 2010, 2% inflation and 2% increase in average labor productivity - 3% increase in total demand nominally from 2009 to 2010, i.e. a 0,98% increase in GDP volume - real terms. This will result in exactly 12.65% unemployment in 2010, i.e. about 12.5%. This is not acceptable!
This scenarioanalysis is very likely if not much more countercyclical fiscal and monetary measures are introduced. Thus, very much more countercyclical fiscal and monetary measures must be set in action. Let the billions roll! Do it now Obama, EU's Euro-zone and Greece! It is important for the world economy to get USA and the Euro-zone including Greece, on the optimal economical track. Don't be afraid of quantitative easing in the present situation! Source: WEC. 13.02.2010
Unemployment in the Euro-zone and Greece hit 10%. Thus WEC's US scenario for 2010 is also relevant in this case
Unemployment in the 16 countries that use the euro hit 10% in December for the first time since the single currency was introduced in 1999, according to Eurostat, the statistical office for the EU. Some 15.8 million people are now out of work in the eurozone. Spain continues to have the highest unemployment rate in the eurozone. The rate rose to 19.5% in December. Greece's unemployment rate increased to 10.6% in November 2009, according to the country's national statistics service, NSS. The rate rose from 9.8% in October, and is also up from the jobless rate of 7.8% recorded a year earlier. There are now nearly 532,000 unemployed people in the country. The November numbers are the most up-to-date unemployment figures for Greece. December 2009 jobless rates are available for most of the other countries in the EU. Sources: BBC & WEC. 11.02.2010.
What must be done in USA? A 3.3% unemployment scenario for 2010
The WEC supports the people, seen as a class as opposed to the superiors in rank and/or income, and says: Production is real income, not money in the bank - you can't eat money, the things with real economical value are produced goods and services and natural resources. GDP is real income. In the name of the social-individualist anarchist and Nobel economic prize winner Ragnar Frisch: Think real economics - not fiction/money quasieconomics.
The USA should follow this anarchist economical plan, or it will not get the problems solved! - The sooner the better! The public administration should do proper anarchist economic demand management. USA with 10% unemployment in 2009 and probably 2% increase in the labor force from 2009 to 2010, 2% inflation and 2% increase in average labor productivity - and accounting for more countercyclical fiscal and monetary measures - 14% increase in total demand nominally from 2009 to 2010, i.e. a 11.8% increase in GDP volume - real terms, will get exactly 3.32% unemployment in 2010. This is a realistic aim, if the economy is managed properly.
This scenarioanalysis indicates that the countercyclical fiscal and monetary measures are too small to achieve 3-4% unemployment in 2010, not to mention full employment. Thus, much more countercyclical fiscal and monetary measures must be set in action. Let the billions roll! Do it now Obama! It is important for the world economy to get USA on the optimal economical track.
WEC warns about a possible 'double-dip' recession
The WEC has warned that the global economy could experience another downturn - a so-called double dip recession. WEC said countries should not exit from countercyclical fiscal and monetary policy measures that have bolstered growth through huge amounts of stimulus packages and public sector spending. WEC says we have to be very cautious because this recovery remains very fragile. China and Asian economies are leading the recovery. Recovery in advanced economies has been sluggish. Indicators as private demand and employment are low. In most countries, growth is still supported by central administration policies.
For as long as you do not have private demand strong enough to offset the need of countercyclical fiscal and monetary policy measures, you shouldn't exit, WEC says. WEC adds that tackling high levels of public sector debt will be a priority for many countries. Many countries upgrade their estimates for economic growth, but it is so far not enough to do away with the high unemployment world wide.
What is GDP?
GDP, or Gross Domestic Product, is arguably the most important of all economic statistics as it attempts to capture the state of the economy in one number. GDP represents the value of goods and services produced in the country from all sections of the economy; agriculture, manufacturing, energy, construction, the private service sector and public sector. GDP can be measured in three ways:
1. The value of the goods and services produced; which is known as the output measure
2. The value of the goods and services purchased by households, by public sector, from overseas (export - import) and by business in terms of investment in machinery and buildings. This is the expenditure measure, and measures total demand for GDP.
3. The value of the income generated mostly in terms of profits and wages; which is known as the income measure.
In theory all three approaches should produce the same number. In most countries the office for national statistics publishes one single measure of GDP, based on a best estimate using all three ways of measuring. Usually the main interest in the GDP figures is in the quarterly [or yearly] change in GDP in real terms - volume, that is after taking account of changes in prices (inflation).
The price level of GDP is measured by the GDP deflator, i.e. price index for GDP. GDP-nominally/GDP-deflator = GDP in real terms - volume. Say, if GDP increases 5% (= 1. 05), and the inflation is 3%, the price level increases 3% (= 1.03), from the previous period; the GDP volume, i.e. in real terms, has increased 1.05/1.03 = 1.0194, about 1.9 %. Thus the real economic growth is 1.9%.
If the GDP measured in real terms is up on the previous three months, the economy is growing. If it is negative it is contracting. And two consecutive three-month periods of contraction mean an economy conventionally is said to be in recession. If the price level is decreasing, i.e. the inflation is negative, it is called deflation. Calculating a GDP estimate for all three measures is a huge undertaking. The output measure alone - which is considered the most accurate in the short term - involves often surveying tens of thousands private firms and public sector.
Usually first an early or "flash", estimate of the real growth in economic activity is published, but this is revised as more information is gathered. Revisions can be made as much as 18 months to two years after the first "flash" estimate. GDP is the principal means of determining the health of the economy and is used widely, nationally and internationally. GDP is used internationally by the various financial bodies such as OECD, IMF, and the World Bank to compare the performance of different economies. The European Union also uses GDP estimates as a basis for determining different countries' contributions to the EU budget.
GDP per capita, the average real income per inhabitant of a country, is also an important measure. This measure is also one among other measures in estimation of the libertarian degree of a country, see Ranking .
Euro-zone lending down
Despite the fact that the European Central Bank is lending billions of euros to commercial banks it seems that money is not getting into the real economy. The latest figures show the Euro-zone money supply posted a surprise drop in November. Banks continue to be reluctant to make loans to individuals and companies. The amount of money loaned was down for the third month running in November. (30.12.2009. Euronews)
Quarter of people say capitalism fatally flawed
Nearly a quarter of people across 27 countries worldwide believe free market capitalism is fatally flawed, according to a poll published on to mark 20 years since the fall of the Berlin Wall. The fall of the Wall, which separated communist East Germany from capitalist West Germany for nearly 30 years, was seen as a pivotal moment in the collapse of the communist bloc and a triumph for the free market system. The survey, carried out by GlobeScan for the BBC World Service, found an average of just 11 percent of the more than 29,000 people surveyed between June 19 and October 13 believed capitalism worked well and did not think greater regulation was needed.
On average, 23 percent of people felt capitalism was fatally flawed and a new economic system was needed, although they did not specify which alternative they favored. Anarchism, as in Norway and Switzerland, or a system with higher degree of anarchy, is a realistic and progressive alternative to marxism, populism/fascism and liberalism. Around half said the problems with capitalism could be addressed through regulation and reform. The United States and Pakistan were the only two countries where more than one in five felt capitalism worked well as it stands. "It appears that the fall of the Berlin Wall in 1989 may not have been the crushing victory for free-market capitalism that it seemed at the time," said Doug Miller, GlobeScan chairman. "Particularly after the events of the last 12 months."
The global economic crisis, which has hit many former communist eastern European countries hard, has prompted many people to question the merits of the capitalist approach. The survey showed some features of socialism, such as equalizing wealth, continued to appeal to many. In 22 of the countries, a majority of people supported the idea of governments distributing wealth more evenly. In 15 countries a majority said they would like their government to be more active in owning or directly controlling their country's major industries -- a view particularly widely held in the former Soviet states of Russia and Ukraine. Among former Warsaw Pact countries, the majority of Russians and Ukrainians said the break up of the Soviet Union was a bad thing. By contrast four in five Poles and nearly two-thirds of Czechs felt the disintegration of the USSR was a good thing. (08.11.2009. Reuters, WEC, AIIS)
G20 agrees to maintain stimulus measures
G20 finance ministers are to keep economic support measures in place, describing recovery as"uneven." Rich and developing countries, meeting in Scotland, are committed to a timetable for a new system of keeping an eye on each others' economies. And they heard British calls for a global levy on banks to fund future bailouts. "We agreed that we would put in place mechanisms to ensure that we monitored what is happening in different countries in different parts of the world so that we could build on things that work," said British Finance Minister Alistair Darling. "We agreed, too, that we would ask the IMF to look for problems that might be developing and the IMF, too, will be doing further work on the possibility of introducing a transaction tax of the sort referred to by the Prime Minister earlier today. He made it clear that this was part of a series of measures to ensure financial stability." The transaction tax idea however received a generally lukewarm response. Addressing delegates, Britain's Gordon Brown said climate change was a test of global cooperation every bit as stern as the world financial crisis. But, with developing countries reluctant to even discuss the topic, little progress was made, just a month before the crucial Copenhagen summit gets underway. (07.11.2009. Euronews, WEC)
G-20 nations reach agreement on economic reforms
The world's major countries are pledging to develop goals to fix destabilizing global economic imbalances that helped bring about the worst recession since the Great Depression. In a draft of their final communique, the Group of 20 nations agreed in Pittsburgh to formulate objectives that each country will pursue in such areas as bringing down trade imbalances or budget deficits. That process will include peer reviews by the other nations but will not have any penalties for countries failing to reach their goals.
President Barack Obama says the G-20 summit in Pittsburgh was relatively tranquil and protesters should realize that world leaders are trying to shape a global economy that helps poor people. Obama told reporters Friday that previous world summits drew far more protesters than the several thousand who clashed with police this week in Pittsburgh. The president said many of the protesters oppose capitalism and free markets in general. He said they are free to express their views but he disagrees with them. Obama said the G-20 leaders agreed to economic policies that should create world markets that help workers and poor people have more stable and prosperous lives.
The WEC condemns the ochlarchists that clashed with police, and are falsely called "anarchists" by some of the newsmedia. The WEC are for free contracts and against slave contracts, that are frequent in so called "free" markets. The WEC is opposed to capitalism, i.e. economical plutarchy, for anarchism, i.e. socialism and autonomy. (25.09.2009. AP, WEC, AIIS)
Milk strikers earn wide support
Falling milk prices have boosted support among Europe's dairy farmers for an all-out strike to highlight their problems. Belgian farmers staged a very graphic protest about the state of their industry, pouring away thousands of litres of fresh millk. It is thought that perhaps 40,000 of their collegues around Europe are now prepared to defy union advice and go further to get their message across. "We have staged protests throughout southern Belgium this weekend, and today we have thrown away the equivalent of a day's production, so if the unions don't want to support us, we will do it without them," warned Belgian farmer Sebastien Demoitie. Major dairy unions in France and Belgium are against a milk strike, but do support protests and demonstrations. In Belgium, three million litres of milk were wasted to illustrate the point. Across the border, Paris said milk deliveries to French shops are down by nearly half. The farmers have some political support: many EU states are warming to the idea of regulatory reforms to help producers who say globalization is killing the countryside. The Anarchist International supports the milk strike and other non-ochlarchical direct actions by the farmers. 16.09.2009. (Euronews, AIIS)
21.09.2009. Farmers in eight countries are taking direct action and have stopped supplying milk. Forceful decisions are demanded from the President of the European Commission. Dairy farmers in France, Germany, Austria, Italy, Luxemburg, Belgium, Switzerland and the Netherlands have called a joint day of action today. "Everywhere there are countless protest activities and more and more milk supply boycotts. Reacting to the low milk prices, the farmers are demanding that the excessive volume of milk be reduced forthwith. Until the politicians do something, the milk producers are removing their milk from the market on their own initiative as a self-help measure", says Pascal Massol of APLI, the French organisation of independent milk producers. (European Milk Board)
G20 ministers back curbs on bankers' bonuses
G20 finance ministers have agreed on a series of measures to curb the bank bonus culture and new lending rules to prevent a repeat of the financial chaos that triggered the global economic downturn. The finance ministers also decided to delay unwinding fiscal stimulus measures until economies are sturdy enough to stand alone. In the meantime they want to defer bank bonuses in order to reward long-term success rather than short-term risk-taking. UK Chancellor Alistair Darling said: "Firstly,greater disclosure and transparency of the level and structure of remuneration for those whose actions that have a material impact on risk-taking. Secondly global standards on pay structures including on deferral, effective clawback and the relationship between fixed and variable remuneration and guaranteed bonuses, to ensure that compensation practices are aligned with a long-term value and creation and financial stability." Details of the proposals still need to be thrashed out before the summit of G20 leaders in Pittsburgh, Pennsylvania later this month when they will be submitted for approval. There was broad agreement that banks ought to hold more capital as a cushion against catastrophic losses. The ministers also agreed that emerging nations, such as India and China, should have a greater say in the running of the International Monetary Fund. 05.08.2009. (Euronews)
G20 policymakers and WEC: Not victory yet! Protesters: Money is not the king - put people first!
G20 policymakers will this weekend promise to keep economic support packages in place until recovery is certain and seek to reassure financial markets, they have credible plans to withdraw the stimulus when appropriate. Finance ministers and central bankers from the Group of 20 developed and emerging nations are meeting in London on Friday 04.09 and Saturday 05.09 to discuss the next steps in fighting the worst financial crisis since the Great Depression. Since their leaders last met in April when the world was in the midst of severe recession, prospects for the global economy look a lot better with stock markets rising since March and growth returning in a number of countries. But policymakers are cautious about declaring victory just yet. They will stress policy needs to remain accommodative for now and also discuss putting curbs on bankers' pay, financial regulation and international institutional reform.
Three G7 countries edge out of recession
Japan's economy has moved out of recession, ending its longest slump since World War Two. It is the third G7 country to return to growth after Germany and France posted positive results. But analysts say caution should remain the watchword for the world's second largest economy. Preliminary figures released on Monday show growth in the second quarter of this year of just under 1 percent, a fraction lower than some analysts had been forecasting. Nevertheless, the results are being hailed by the government as a sign that its stimulus measures have been effective. It is welcome news for Japan's Prime Minister, Taro Aso, with polls predicting he is facing defeat in this month's election. "The economic growth figures that were released today showed growth for the first time in a year and three months. However, people have yet to feel the recovery for themselves, we're still in the process. The economy is the most important. I vow to revive Japan's economy," he told a news conference. However, continuing the trend will depend to a large extent on recovery in the rest of the world as Japan's economy is heavily reliant on exports; and those exports may slow as stimulus measures in other countries wear off. This morning's figures did not have a positive impact on Asian markets, which were weighed down by other gloomier data from the US. The WEC repeats that the aim is "full employment now" and reminds about the note "What must be done? A typical scenario" below. 17.08.2009. (Euronews, WEC)
Milk war rage on - Advice from WEC
The European Commission's report into the dairy farming crisis was published today and as expected, it states that reducing production quotas is out of the question. Dairy farmers complain that milk prices have halved since 2007 and that reducing quotas is the only way to boost prices. But the Agriculture Commissioner, Mariann Fischer Boel, who herself comes from a farming family, does not agree. Defending the report, she said that other measures were avilable for boosting prices and increasing demand. She said that the Commission was increasing the limits for state aid from 7500 to 15000 euros per farmer. She also said that the Commission was proposing better management of the current quotas system. She said that the Commission would be looking at ways of promoting milk consumption including a school milk scheme. She also said that producers should band together so as to increase their negotiating power when selling their milk to supermarket giants.
The report comes on the heels of a meeting yesterday at the European Parliament's Agriculture Committee at which MEPs supported calls from the European Milk Board for lowering milk production levels, and compensating farmers with subsidies. After that meeting, José Bové, the Vice-President of the European Parliament's Agriculture Committee said. "This policy has no benefit to the consumer because nothing has changed when we buy a carton of milk of a packet of butter. So who does benefit from this crime? I think the European Commission is taking a completely ideological view. It's pure ideology to say 'liberalising the market, liberalising agricultural policy,will sort the problem out'. That's not true. We see the opposite. Every three minutes in Europe a farm disappears. That's the real situation." And so the battle lines are drawn. It is clear that solving the European milk crisis is more than a question of the price of your morning pinta. It's a classic ideological struggle between people who believe in liberalised "free" markets and people who believe in regulated market controls. And as long as prices remain low, the clash is set to continue. WEC has a middle position and recommends a non economic plutarchy market, i.e. with some regulations, compatible with socialism and autonomy, a libertarian market. Look to the agricultural policy of the anarchies of Norway and Switzerland. 22.07.2009 (Euronews, WEC)
French Nortel workers secure talks after blow-up threat
Workers at the French arm of telecommunications manufacturer Nortel have forced management into talks over layoff terms by threatening to blow up their factory, local authorities said on Wednesday. Workers had placed gas cylinders that turned out to be empty in front of the plant in the Yvelines area near Paris after provisional management cancelled a planned meeting on Monday. A total of 480 jobs are set to be axed at the plant following bankruptcy proceedings. "Unions have agreed to remove the gas cylinders placed around the site after their demand was met," the local prefect's chief of cabinet said. In the second threat by French workers to blow up a factory in a week, Le Parisien newspaper said the workers had threatened to stage an explosion as early as Wednesday if their demands were not met. No immediate comment was available from Toronto-based Nortel, once the largest North American telecommunications equipment manufacturer but which filed for bankruptcy protection in Canada and the United States in January. The workers were bitter about the way the authorities handling the case in France were proceeding, the paper said. Speaking on LCI television, Labour Minister Xavier Darcos pledged to find solutions for the workers."We are going to speak to each other, we will find solutions that do not require resorting to extreme violence," he said. "I can't understand why one would want to solve this problem through taking the position of a desperado," he said. The WEC mostly agrees, the French should try something like the Norwegian anarchist model, with more dialogue. Other politicians also criticised the workers' methods. Henri Guaino, adviser to President Nicolas Sarkozy, said he understood the workers' desperation but their reaction was unacceptable in a civilised society. The factory protest is the second of its kind in recent days. Workers at collapsed French car parts maker New Fabris made similar threats on Sunday, demanding they receive payouts by July 31 from auto groups Renault SA and PSA Peugeot Citroen to compensate for their lost jobs. Such threats of violence could become a strategy of disgruntled workers, who have detained managers at factories across the country in recent months in a spate of so-called "bossnapping" incidents. 15.07.2009. (Reuters, WEC)
Solution to the milk crisis?
The new French Agriculture Minister Bruno Le Maire has appealed to European Commission President Jose Manuel Barroso to intervene in the falling milk price crisis. Le Maire called for an analysis of why the prices have fallen. This was reiterating recent calls by European Union leaders and anarchists. Le Maire suggests the EU bring back stockpiling dairy products to lower the amount reaching the market. Farmers say they need help urgently, because a halving of prices over the last year is forcing them to sell below cost. Thousands of them from across the EU have been protesting in Brussels recently, demanding the bloc reconsider ending quotas that guarantee prices. The farmers complain that while the amount wholesalers pay them for milk has fallen dramatically, the cost to consumers in supermarkets has held steady. Last November, the EU farm ministers agreed to lift milk production quotas by one percent per year before scrapping them outright by 2015. The quotas were introduced in 1984.
A look at economic developments around the globe week 26 - WEC again calls for more action against the crisis
A look at economic developments and stock market activity around the world Thursday 25.06.2009:
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TOKYO - Global production at Japan's top automakers tumbled in May, hit by a lingering slump in demand and uncertainty over a recovery in the battered industry. Toyota Motor Corp., the world's biggest carmaker, said its worldwide output dropped 38.8 percent from a year earlier to 442,621 vehicles - the 10th straight monthly decline. Honda Motor Co., Japan's No. 2 automaker, also said its global production continued to tank in May, while Nissan Motor Co. said its pace of decline in global production moderated last month.
In markets, Japan's Nikkei 225 stock average rose 205.76 points, or 2.2 percent, to 9,796.08. Elsewhere in Asia, Hong Kong's Hang Seng jumped 382.88, or 2.1 percent, to 18,275.03 and South Korea's Kospi gained 2.1 percent to 1,392.73 amid reports the government was forecasting a milder recession this year. Australia's benchmark gained 1.3 percent, China's Shanghai index inched up 0.1 percent and Singapore's market rose 1 percent.
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UNITED NATIONS - Developing countries joined U.N. officials in calling for more money and a greater role in regulating the world economy in the wake of the worst global financial crisis since the Great Depression, which has taken a disproportionate toll on poor nations. At the opening of a three-day U.N. financial summit Wednesday, country after country laid blame for the crisis on financial liberalization and deregulation in the United States and other rich nations and said it was time to reform the world financial system under the auspices of the United Nations.
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BRUSSELS - New orders for manufacturers in the 16 nations that use the euro fell 35.5 percent in April from a year earlier, the EU statistical agency Eurostat said - the sharpest drop so far this year. Worst hit were orders for tools, parts and components sold on to other manufacturers, down nearly 40 percent. Orders for cars and home appliances fell by more than a quarter. Orders in Germany, the European Union's largest economy fell 39.5 percent
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LONDON - Steel company Corus said it plans to cut more than 2,000 jobs - or 10 percent of its British work force - as part of a restructure after a slump in demand. Unions described the job losses, which come on top of a round of 3,500 cuts announced in January, as "devastating" and called on the British government to offer help to the ailing steel industry.
In markets, the FTSE 100 index of leading British shares closed down 0.6 percent, at 4,252.57 while Germany's DAX fell 0.7 percent to 4,800.56. The CAC-40 index in France was 0.7 percent lower at 3,163.10.
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MANILA, Philippines - The majority of small and medium-sized enterprises that comprise the bulk of businesses in Asia intend to hold on to their workers as they believe the world economy will recover by 2011, said a recent survey.
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WARSAW, Poland - Poland's jobless rate inched down to 10.8 percent in May from 11 percent the previous month. The Central Statistical Office said that some 1.68 million of the nation's 38 million residents were unemployed at the end of May. In April, there were some 1.72 million jobless.
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HANOI, Vietnam -Vietnam's first-half trade deficit came to $2.1 billion, much smaller than the same period of last year as imports fell faster than exports, the government said. (AP)
WEC again calls for more action against the crisis.
The global economic crisis has increased child labor and trafficking.
WEC calls for more action against the crisis, child labor and trafficking
Millions of children, especially girls, risk falling out of education and into work as the impact of the world economic crisis deepens, the WEC has warned 12.06.2009 - the World Day Against Child Labor. With rising poverty and inequality, and funding for schools under pressure in developing and transition countries in particular, the economic crisis is likely to add even more children to the 200 million who are already at work instead of getting a proper education. This is a tragic scenario just ten years since the ILO adopted Convention 182 on eliminating the worst forms of child labor. WEC calls on all countries world wide to tackle the exploitation of children more effectively, both through funding quality education and enforcing labor law. Tens of millions of adults are losing their jobs due to the crisis, putting family incomes under huge pressure and making it even more difficult for poorer families to cover the costs of education. The consequences of child labor, often devastating for the children concerned, are also felt in terms of economic and social development in the longer term. Countries which do not ensure universal education will not have the broad base of skills and knowledge required for solid economic foundations for the future.
The WEC and its global partners the Anarchist International, the International Workers of the World, GAIA, etc. have also pointed to major deficiencies in the global response to the crisis for the poorest countries. While the G20 governments agreed to make special funding available at their London Summit in April, not enough money is available to support the poorest countries in particular. On top of this the International Monetary Fund, which is the main vehicle chosen by the G20 to deliver the funding, is putting similar conditions on its lending as in the past, despite G20 pledges of reform. This means that public spending on education, as well as other key areas, risks being limited or even cut at a time when it is most needed.
The global economic crisis has increased the worldwide trade in trafficked persons, says an US State Department report released Tuesday 16.06.2009. Secretary of State Hillary Clinton says the report aims "to shine the light brightly on ... modern slavery." The State Department's annual Trafficking in Persons Report also says trafficking has increased in Africa and slaps six African nations on a blacklist of countries not meeting the minimum standard of combating trafficking. The report, mandated by Congress, features data and statistics from 175 countries around the world regarding the amount of human trafficking that goes on within their borders. The report cites the International Labor Organization, which estimates that at least 12.3 million adults and children are victims of forced labor, bonded labor and sex slavery each year.
"This is modern slavery. A crime that spans the globe, providing ruthless employers with endless supply of people to abuse for financial gain," Secretary of State Hillary Clinton said as she announced the report. "With this report, we hope to shine the light brightly on the scope and scale of modern slavery, so all governments can see where progress has been made and where more is needed."
The report says the global economic crisis is boosting the demand for human trafficking because of a growing demand for cheap goods and services. "A striking global demand for labor and a growing supply of workers willing to take ever greater risks for economic opportunities seem a recipe for increased forced labor cases of migrant workers and women in prostitution," it says. It predicts that the economic crisis will push more businesses underground to avoid taxes and unionized labor, which will increase the use of forced, cheap and child labor by cash-strapped multinational companies. African countries Nigeria and Mauritius are praised in the report for making strong efforts to combat trafficking. But six African nations -- Chad, Eritrea, Mauritania, Niger, Swaziland and Zimbabwe -- were put on the report's "Tier 3" blacklist of countries whose efforts to combat trafficking are inadequate. Most of the countries are "source" and "destination" countries, the report says, meaning trafficking victims both come from and are sent there. Most are trafficked throughout Africa, but many end up in the Middle East, it says. Iran, Kuwait, Saudi Arabia and Syria remain on the blacklist for another year, with the report saying they often become a destination for trafficked persons who are sold into domestic servitude. Other repeat offenders on the list include North Korea, Myanmar and Fiji.
The State Department also put Malaysia in the Tier 3 list, because of its trafficking of Burmese refugees. The report cites information that Malaysian immigration officials sold refugees to traffickers operating along its border with Thailand. When the victims were unable to pay a ransom demanded by the traffickers, the report says, they were sold for labor and commercial sex exploitation. The blacklisted countries are subject to U.S. sanctions if they don't make greater efforts to fight trafficking. The Philippines, Cambodia, Bangladesh and Pakistan were added to a "watch list" because of what the report calls a worsening trafficking record in those countries. The 52 countries on the watch list have failed to to meet the minimum anti-trafficking standards but are making efforts to do so. For the first time, countries that have been on the watch list for two years -- including China, Russia, India, Sri Lanka and Egypt -- will automatically be moved to the Tier 3 blacklist next year without a presidential waiver if they fail to improve their trafficking record, the State Department said. This year, the Justice Department also put out a report on U.S. efforts to combat trafficking efforts at home. In 2008, the FBI opened 132 trafficking investigations, made 139 arrests and obtained 94 convictions.
Clinton invited to Tuesday's event members of Congress who are active on the issue, as well as global advocates for trafficking victims, in an effort to give the issue a higher profile and shine a spotlight on the need to combat it. Calling for a renewed worldwide partnership between countries and non-governmental organizations to combat trafficking, Clinton said, "Trafficking thrives in the shadows, and it can be easy to dismiss it as something that happens to someone else, somewhere else. But that's not the case."Trafficking is a crime that involves every nation on Earth, and that includes our own," she said, calling trafficking a "grave problem" in the United States. For the first time, she said, the United States next year will rank its own efforts at combating trafficking along with the rest of the world. She expressed hope that it will be on the Tier 1 list of countries that are making robust efforts. WEC calls for more action against the crisis, child labor and trafficking.
What must be done? A typical scenario
The WEC supports the people, seen as a class as opposed to the superiors in rank and/or income, and says: Production is real income, not money in the bank - you can't eat money, the things with real economical value are produced goods and services and natural resources. In the name of the social-individualist anarchist and Nobel economic prize winner Ragnar Frisch: Think real economics - not fiction/money quasieconomics. The world should follow this anarchist economical plan, or it will not get the problems solved! - The sooner the better! The public administration should do proper anarchist economic demand management. A typical example, country X, with 5% unemployment in 2008 and 2% increase in the labor force from 2008 to 2009, 2% inflation and - accounting for some countercyclical fiscal and monetary measures - 0% increase in total demand nominally from 2008 to 2009, i.e. a 2% decrease in GDP volume, because of recession, will get exactly 10,48% unemployment in 2009.
To achieve full employment, with still 2% inflation due to low interest rate and an efficient industrial policy, other things equal, additional countercyclical fiscal and monetary measures must increase total demand nominally exactly 11,71% from the level in 2008. To achieve the more modest aim 3,32% unemployment in 2009, additional countercyclical fiscal and monetary measures must increase total demand nominally exactly 8%. Typical additional countercyclical fiscal and monetary measures may account for, say, 3-4% increase in total demand nominally. This scenarioanalysis indicates that the countercyclical fiscal and monetary measures are too small to achieve 3-5% unemployment in 2009, not to mention full employment. Thus, much more countercyclical fiscal and monetary measures must be set in action. Full employment now! Let the billions roll.
A look at economic developments around the globe
A look at economic developments and stock market activity around the world Tuesday 09.06.2009:
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BERLIN - Exports from Germany, Europe's largest economy, fell nearly 30 percent in April as the global economic crisis continued to hurt demand for its products, the Federal Statistical Office reported. Exports dropped to euro63.8 billion ($88.47 billion) from euro89.5 billion the previous year.
Meanwhile, German Finance Minister Peer Steinbrueck said the government foresees major restructuring and a wave of mergers for the country's state-owned banks. Germany has eight public sector banks, or Landesbanken, owned by regional governments such as Bavaria and Berlin that play a key role in Europe's largest economy by funding local businesses.
Separately, German retailer Arcandor AG filed for bankruptcy protection in an effort to maintain the survival of its department stores and its mail-order company, a day after the government rejected its bid for state-backed emergency credit.
Germany's DAX stock market index fell 0.1 percent to 4,997.86, while the CAC-40 in France eded up 0.2 percent at 3,296.73.
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LONDON - A Bank of England official urged banks to resist any temptation to sit out the recession but to provide the capital needed to put the economy on the road to recovery. Paul Tucker, deputy governor for financial stability and a member of the central bank's rate-setting Monetary Policy Committee, said near-term indicators have improved slightly and confidence appears to have stabilized.
Meanwhile, Lloyds Banking Group PLC, one of two big British banks being propped up by the government, said it will cut another 1,600 U.K. jobs in a shake up of its lending businesses.
Meanwhile, industry groups reported falling retail sales in May and a rise in buyer inquiries and sales in the housing market last month.
The FTSE 100 index of leading British shares closed down 0.1 percent at 4,404.79.
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LUXEMBOURG - European Union finance ministers agreed on the outlines of a major regulatory overhaul that would set up new agencies to oversee financial companies and a new watchdog to warn of major risks.
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TOKYO - Japan's Nikkei 225 stock average slipped 0.8 percent to 9,786.82. Hong Kong's Hang Seng fell 1.1 percent to 18,058.49, and South Korea's Kospi was off 1.5 percent at 1,371.84. Taiwan's market, which has surged nearly 50 percent from lows in March, slid 3.2 percent in the region's worst performance of the day. Australia's benchmark was also lower, while Singapore ended slightly higher. In mainland China, Shanghai's index closed 0.7 percent higher, helped by optimism that news due this week about the country's economy will show signs of improvement.
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SAO PAULO - Brazil's government statistics agency said Latin America's largest economy contracted in the first quarter, the second consecutive quarterly pullback. The IBGE agency says first-quarter output from January to March declined 0.8 percent following a 3.8 percent contraction in the fourth quarter compared to the third quarter.
Brazil's benchmark Ibovespa slipped 0.5 percent to 53,365 in afternoon trading.
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SHANGHAI - China's passenger car sales shot up nearly 47 percent in May to 829,100 units, buoyed by tax cuts and other government incentives, the China Association of Automobile Manufacturers said. But U.S. sales outpaced China's last month for the first time this year.
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BERN, Switzerland - The Swiss government said it is holding talks with several potential buyers of its 6 billion-franc ($5.5 billion) stake in UBS AG. The mandatory convertible notes were part of a $60 billion bailout package agreed for UBS last October - since reduced to about $42 billion.
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RIGA, Latvia - Crisis-stricken Latvia's foreign trade plummeted 40 percent in April compared to the same month last year, the country's statistics agency said. Latvia is struggling with an increasingly dire recession, with the economy expected to shrink by nearly one-fifth this year. Unemployment is rising rapidly and is currently the second highest in Europe after Spain, according to Eurostat.
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MEXICO CITY - Mexico's central bank said annual inflation slowed to 5.98 percent in May, falling below 6 percent for the first time this year as the country battles its deepest recession in decades.
Mexican stocks ticked up 0.1 percent to 24,967 in the afternoon.
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SINGAPORE - The chief executive of GlaxoSmithKline, the world's second-largest drug maker by revenue, said the global economy could remain sluggish for some time as tight credit markets and cautious corporate investment hamper growth. Glaxo CEOAndrew Witty said banks remain leery of lending and companies are still "risk averse."
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HELSINKI - Finland's economy shrank more than 7 percent in the first quarter, its worst performance in 15 years, official data showed, prompting the head of the central bank to urge the government to reconsider its finance policies. (AP)
Crisis shows need for more research
The global financial crisis highlights the need for economists to deepen their understanding of how events on Wall Street can affect the broader economy. The rationale for such research has certainly been underscored by the financial crisis that began in August 2007 and the powerful adverse effects of the crisis on economic activity around the globe. The existing body of research has been invaluable in helping the central banks and administrations to battle the worst crisis since the 1930s. But the debacle also has highlighted how much additional research is needed on this topic. To lift the country out of recession, the Fed (central bank) in USA has cut a key lending rate to a record low near zero. It also has used unconventional tools, including buying government debt and mortgage-backed securities, with the goal of driving down borrowing costs and spurring economic activity. Some economists believe a recent rise in rates on mortgages and Treasury securities could prompt the Fed to step up its purchases of government debt. (WEC)
Dairy farmers move on Brussels
Dairy farmers have converged on Brussels to protest against the EU's milk policy. Similar rallies are also taking place in Paris and Berlin. Producers say the price paid for milk by butter and cheese makers is too low. They claim the amount they receive from commercial diaries has fallen by 30 percent, despite firms making large profits. Many are calling for a cut in production to boost prices. One German farmer said: "The price is too low and it just has to be increased. Volume has to go down, as there is too much milk. Car producers have set an example".
One farmers union in France has described the market fall as 'catastrophic'. Earlier, French farmers vented their anger by setting light to piles of tyres. French unions are also pushing the EU to cut production. "A large part of French and European milk is exported to the rest of the world as butter or powder. These markets have collapsed. Historically, they're at their lowest ever level because China and Russia aren't buying. Today this is leaving a global surplus with huge losses for business," said Oliver Picot from the French Federation of Milk Industries. Despite the growing pressure the European Commission has ruled out any production cut. Agriculture ministers are meeting in Brussels today to discuss the crisis. (Euronews) The WEC recommends more subventions temporarily.
Wave of jobs protests across Europe
Three days of street protests against the worsening economic crisis and staggering job losses have swept across Europe. Trade unionists and the unemployed have called for public sectors to act, flexing their respective voter muscles ahead of local and Europe-wide elections. In Germany, yesterday thousands marched through Berlin demanding more job protection as the country struggles with its deepest recession since World War Two. German trade unionist, Frank Bsirske was firm in his opinion that there was a clear need for worker unity. "We workers across Europe, have the same problems. We demand the right to equal pay for equal work in the same job. We want to avoid situations where, for example, Polish salaries directly compete with German salaries…We want the right to go on strike."
Friday saw 40,000 people march in Brussels complaining at the amount of funds being spent on banks throughout the EU bloc which are widely blamed for the economic meltdown. In Prague and Bucharest, workers demanded higher wages and secure jobs with anger growing particularly in Romania at their central administration's anti-crisis response of freezing state pay . While Thursday saw a mock funeral staged in Madrid mourning the loss of jobs – Spain currently has four million people unemployed.
Thriving Norway provides an economics lesson
by Landom Thomas Jr. - NY-Times 13.05.2009
OSLO — When capitalism seemed on the verge of collapse last fall, Kristin Halvorsen, Norway's Socialist finance minister and a longtime free market skeptic, did more than crow. As investors the world over sold in a panic, she bucked the tide, authorizing Norway's $300 billion sovereign wealth fund to ramp up its stock buying program by $60 billion — or about 23 percent of Norway 's economic output. "The timing was not that bad," Ms. Halvorsen said, smiling with satisfaction over the broad worldwide market rally that began in early March. The global financial crisis has brought low the economies of just about every country on earth. But not Norway. With a quirky contrariness as deeply etched in the national character as the fjords carved into its rugged landscape, Norway has thrived by going its own way. When others splurged, it saved. When others sought to limit the role of government, Norway strengthened its cradle-to-grave welfare state [i.e. society, Norway is an anarchy, not a state]. And in the midst of the worst global downturn since the Depression, Norway's economy grew last year by just under 3 percent. The government enjoys a budget surplus of 11 percent and its ledger is entirely free of debt.
By comparison, the United States is expected to chalk up a fiscal deficit this year equal to 12.9 percent of its gross domestic product and push its total debt to $11 trillion, or 65 percent of the size of its economy. Norway is a relatively small country with a largely homogeneous population of 4.6 million and the advantages of being a major oil exporter. It counted $68 billion in oil revenue last year as prices soared to record levels. Even though prices have sharply declined, the government is not particularly worried. That is because Norway avoided the usual trap that plagues many energy-rich countries. Instead of spending its riches lavishly, it passed legislation ensuring that oil revenue went straight into its sovereign wealth fund, state money that is used to make investments around the world. Now its sovereign wealth fund is close to being the largest in the world, despite losing 23 percent last year because of investments that declined. Norway's relative frugality stands in stark contrast to Britain, which spent most of its North Sea oil revenue — and more — during the boom years. Government spending rose to 47 percent of G.D.P., from 42 percent in 2003. By comparison, public spending in Norway fell to 40 percent from 48 percent of G.D.P.
"The U.S. and the U.K. have no sense of guilt," said Anders Aslund, an expert on Scandinavia at the Peterson Institute for International Economics in Washington. "But in Norway, there is instead a sense of virtue. If you are given a lot, you have a responsibility." Eirik Wekre, an economist who writes thrillers in his spare time, describes Norwegians' feelings about debt this way: "We cannot spend this money now; it would be stealing from future generations." Mr. Wekre, who paid for his house and car with cash, attributes this broad consensus to as the country's iconoclasm. "The strongest man is he who stands alone in the world," he said, quoting Norwegian playwright Henrik Ibsen [Norway's most internationally known anarchist] . Still, even Ibsen might concede that it is easier to stand alone when your nation has benefited from oil reserves that make it the third-largest exporter in the world. The money flowing from that black gold since the early 1970s has prompted even the flintiest of Norwegians to relax and enjoy their good fortune. The country's G.D.P. per person is $52,000, behind only Luxembourg among industrial democracies. As in much of the rest of the world home prices have soared here, tripling this decade. But there has been no real estate crash in Norway because there were few mortgage lending excesses. After a 15 percent correction, prices are again on the rise.
Unlike Dublin or Riyadh, Saudi Arabia, where work has stopped on half-built skyscrapers and stilled cranes dot the skylines, Oslo retains a feeling of modesty reminiscent of a fishing village rather than a Western capital, with the recently opened $800 million Opera House one of the few signs of opulence. Norwegian banks, said Arne J. Isachsen, an economist at the Norwegian School of Management, remain largely healthy and prudent in their lending. Banks represent just 2 percent of the economy and tight public oversight over their lending practices have kept Norwegian banks from taking on the risk that brought down their Icelandic counterparts. But they certainly have not closed their doors to borrowers. Mr. Isachsen, like many in Norway, has a second home and an open credit line from his bank, which he recently used to buy a new boat. Some here worry that while a cabin in the woods and a boat may not approach the excesses seen in New York or London, oil wealth and the state largesse have corrupted Norway's once-sturdy work ethic.
"This is an oil-for-leisure program," said Knut Anton Mork, an economist at Handelsbanken in Oslo. A recent study, he pointed out, found that Norwegians work the fewest hours of the citizens of any industrial democracy. "We have become complacent," Mr. Mork added. "More and more vacation houses are being built. We have more holidays than most countries and extremely generous benefits and sick leave policies. Some day the dream will end." But that day is far off. For now, the air is clear, work is plentiful and the government's helping hand is omnipresent — even for those on the margins. Just around the corner from Norway's central bank, for instance, Paul Bruum takes a needle full of amphetamines and jabs it into his muscular arm. His scabs and sores betray many years as a heroin addict. He says that the $1,500 he gets from the government each month is enough to keep him well-fed and supplied with drugs. Mr. Bruum, 32, says he has never had a job, and he admits he is no position to find one. "I don't blame anyone," he said. "The Norwegian government has provided for me the best they can." [Drug addicts exist in Norway, but is a quite marginal problem]. To Ms. Halvorsen, the finance minister, even the underside of the Norwegian dream looks pretty good compared to the economic nightmares elsewhere. "As a socialist, I have always said that the market can't regulate itself," she said. "But even I was surprised how strong the failure was."
May Day Manifesto 2009 - Full employment now!
The world is facing its gravest economic crisis in over 60 years. Tens of millions of jobs are being lost due to the greed, plunder and incompetence which have, through decades of "free" market deregulation, led the world into deep recession. Global poverty and inequality are increasing fast, and working women and men everywhere face levels of insecurity unprecedented in recent times.
We accept no leaders of the world, be it USA, Russia, EU or China. However guidance is a must. Look to the three anarchist, the only real democratic, countries of the world, Norway, Switzerland and Iceland, guided by a.o.t. the International Workers of the World, the Anarchist International, AI, and the International Institute For Organization Research, IIFOR. They will probably be the first to solve the economic recession problem, balancing 1) Total demand nominally = (Price level)(Labor productivity)(Total labor force). Where 2) Total demand nominally = Public and private consumption + Public and private real investment + Export - Import, 3) Price level = (1 + Inflation %/100) and Labor productivity is national product volume per employed, averagely, and inflation is measured by the price index for the national product. How to achieve this aim? Read A SHORT NOTE ON THE GENERAL THEORY OF ANARCHIST ECONOMICS: General theory . The traditional Keynes type countercyclal monetary and fiscal policy measures, may not be sufficient to solve the problem. Measures to lower inflation and to achieve a modest increase in labor productivity, taking into account green economics, should also be introduced, etc. For the world seen all in all Export - Import = 0, thus protectionism must be avoided. Anarchies have the best conditions to do proper demand management. The other most libertarian countries should follow them in coordinate efforts to solve the recession problem. The rest of the world should also join in. The sooner the better! Proper demand management now!!!
THE 25 HIGHEST RANKING COUNTRIES ACCORDING TO LIBERTARIAN DEGREE ETC.
SYSTEM ANALYSIS. DATA FROM 2003-7.
Countries: |
Rank of country according to libertarian degree, and type of system |
Libertarian degree and (authoritarian degree) % |
Degree of socialism |
Degree of autonomy and |
Gini-index |
Norway |
1 Anarchy |
54,0 (46,0) |
55,0 (45.0) |
53,2 (46,8) |
25,8 |
Switzerland |
2 Anarchy |
53,0 (47,0) |
51,0 (49,0) |
55,1 (44,9) |
33,1 |
Iceland |
3 Anarchy |
52,0 (48,0) |
54,0 (46,0) |
50,1 (49,9) |
25,0 (est.) |
Liechtenstein |
4 Soc.dem. |
49,5 (50,5) |
51,4 (48,6) |
47,7 (52,3) |
32,0 (est.) |
Luxembourg |
5 Soc.dem. |
49,2 (50,8) |
52,1 (47,9) |
46,5 (53,5) |
30,8 |
Denmark |
6 Soc.dem. |
48,8 (51,2) |
55,3 (44,7) |
43,0 (57,0) |
24,7 |
Japan |
7 Soc.dem. |
48,5 (51,5) |
55,2 (44,8) |
42,6 (57,4) |
24,9 |
Belgium |
8 Soc.dem. |
48,2 (51,8) |
54,0 (46,0) |
43,0 (57,0) |
25,0 |
Finland |
9 Soc.dem. |
47,9 (52,1) |
53,8 (46,2) |
42,6 (57,4) |
26,9 |
Sweden |
10 Soc.dem. |
47,5 (52,5) |
54,0 (46,0) |
41,7 (58,3) |
25,0 |
Netherlands |
11 Soc.dem. |
47,2 (52,8) |
52,0 (48,0) |
42,8 (57,2) |
30,9 |
Canada |
12 Soc.dem. |
46,8 (53,2) |
50,9 (49,1) |
43,0 (57,0) |
33,1 |
Austria |
13 Soc.dem. |
46,5 (53,5) |
52,1 (47,9) |
41,4 (58,6) |
30,0 |
Ireland |
14 Populist |
46,2 (53,8) |
45,0 (55,0) |
47,4 (52,6) |
35,9 |
Germany |
15 Soc.dem. |
45,9 (54,1) |
53,0 (47,0) |
39,6 (60,4) |
28,3 |
Spain |
16 Soc.dem. |
45,5 (54,5) |
51,5 (48,5) |
40,1 (59,9) |
32,5 |
Australia |
17 Populist |
45,0 (55,0) |
48,0 (52,0) |
42,2 (57,8) |
35,2 |
United King. |
18 Populist |
44,5 (55,5) |
44,7 (55,3) |
44,3 (55,7) |
36.0 |
New Zealand |
19 Populist |
44,0 (56,0) |
44,6 (55,4) |
42,4 (57,6) |
36,2 |
France |
20 Soc.dem. |
43,5 (56,5) |
51,4 (48,6) |
36,6 (63,4) |
32,7 |
Italy |
21 Populist |
43,0 (57,0) |
44,7 (55,3) |
41,3 (58,7) |
36,0 |
USA |
22 Cons. lib. |
42,5 (57,5) |
24,5 (75,5) |
69,8 (30,2) |
40,8 |
Israel |
23 Populist |
42,3 (57,7) |
47,8 (52,2) |
37,3 (62,7) |
35,5 |
Hong Kong |
24 Cons. lib. |
42,1 ( 57,9) |
22,1 (77,9) |
74,8 (25,2) |
43,4 |
Greece |
25 Populist |
42,0 (58,0) |
47,9 (52,1) |
36,6 (63,4) |
35,4 |
The estimates are approximately figures. © IIFOR/IJA ISSN 0800 – 0220 2007 and later.
Anarchy = here social-individualist anarchism; Soc. dem. = social democrat marxism; Populist = here moderate parliamentarian democratic fascism; Cons. lib. = Conservative liberalism. See economic-political map. Ranking of countries according to libertarian degree, estimates of the libertarian degree in general, and information on methodology, see Ranking and System theory - chapter V. B.. For the libertarian vs authoritarian, capitalist vs socialist and statism vs autonomy degree we have used " , ", the European standard instead of American/UK standard, i.e. " . " as decimal separator. For other figures on www.anarchy.no we have usually used the American/UK standard. The term "ca" is an abbreviation for the latin circa, which means about or approximately.
Economic-political world map
*) The stars indicate the position of the Norwegian economical-political system after the revolutionary change in 1994/95. Read more about the anarchist velvet revolutionary change in 1994/95 and the development afterwards at Anarchy in Norway and IJA 1994-96
The International Workers of the World, the AI and IIFOR demand far-reaching, urgent and coordinated actions to pull the world out of recession. Public sectors must act to keep the working class broadly defined, i.e. the grassroots, the people, seen as a class in contrast to the superiors economically and/or political/administrative, in work and create new jobs, to avoid an even deeper and longer-lasting crisis. These actions are essential, but alone they are not sufficient.
We demand nothing less than a full-scale transformation of the world economy. A new global economy is required, which is built on the anarchist principle of social justice and the other anarchist principles and which:
1. Delivers decent work, with full respect for workers' rights, to all;
2. Is based on effective, real democratic and accountable global management, self management - autogestion - which puts the needs of the people first;
3. Ensures strong financial regulation, putting finance at the service of the real economy and the real economy at the service of people;
4. Guarantees respect for the rights of all working people and puts an end to poverty, inequality, discrimination, repression and exploitation; and,
5. Secures sustainability through green investment and green jobs.
Public sectors have the responsibility and the possibility to build the new global economy. The trade union movement and civil society in general, including the anarchists, will press forward the demand for public sectors to fulfill this responsibility, and insist on full involvement at every level in making it a reality.
We will not accept a return to the politics of greed, which allowed a tiny elite to amass vast wealth at the expense of the many, robbing workers of their dignity and security. Central to this is restoring the role of public sector in regulating the private sector and ensuring public provision to meet fundamental social needs. Decades of "free"-market ideology have weakened the essential functions of public sector as regulator and provider, with the IMF and the World Bank playing a major role in ensuring that public sectors comply with that discredited ideology. These institutions have now been given huge responsibilities and resources to combat the recession. Their structures and their policies, and those of the WTO, must be changed dramatically in order for the new global economy to be possible. Direct actions etc. are means to achieve this aim.
The central role of decent work in the new global economy must be fully realised. It is essential to meeting the needs and aspirations of people everywhere, and is the only sustainable way to restore demand for goods and services. The rights to organize and bargain collectively are central to maintaining and improving living standards and to stimulating growth. We call upon world's mandated persons to agree urgently on a Global Jobs Pact to deliver decent work, and we insist that the ILO be placed at the heart of the management of the world economy.
The removal of rules for managing banking and finance has been the biggest single cause of the crisis. Strong regulations are required. But in a global economy, no country can properly regulate in isolation, nor can any country alone stop taxpayers being cheated by the vast flow of money into tax havens. Public sectors have to work together to design the new rules and put them into place, and they must do this without delay.
The world's mandated persons have come together many times to pledge to defeat poverty and hunger, to promise development and guarantee that fundamental rights at work and in society would be respected. Yet the economic system they built ensured that many of the pledges they made would remain just words, while the crisis today is being used as yet another excuse to strip working people of their rights and entitlements. The new global economy must support, not undermine, the timeless and universal rights enshrined in the Universal Declaration of Human Rights, interpreted in a libertarian way, see Libertarian Human Rights , and the ILO core labor standards.
Time is running out to save the planet from the ravages of climate change. The new global economy must be a green economy, where high-carbon jobs are transformed into low-carbon jobs, and where investment in this transformation and the creation of new green jobs is assured. The world community must agree this year, at the Copenhagen Climate Summit, to far-reaching measures to cut emissions, build green infrastructure and jobs and ensure that the transition to the green economy is efficient, just and fair.
The world's biggest economies, at the G20 Summit in London, responding to direct actions, opened the possibility for work on the new global economy to begin. They agreed that jobs are central to recovery, and that there must be new regulations, global cooperation and reform. They committed to work on a Charter for Sustainable Globalization, which could become a guide for the kind of world economy which working people demand. But these are still no more than the first few steps along the necessary path.
The trade unions of the world, including the International Workers of the World, and civil society in general - including the anarchists - will carry forward our quest for the new global economy. Building on our firm traditions of global solidarity, our capacity to mobilize for change and our determination to hold decision-makers to account for their actions, we will pursue our agenda for change with public sectors, at the UN and the G20 and in every other place that matters.
From the ruins of the crisis, a new era of prosperity, equality, real democracy and peace must arise. We proclaim our continued resolve to bring this new sustainable era into being, and to oppose, with every libertarian means at our disposal, those who stand in its way.
May Day 2009 was honored worldwide with millions of people who took to the streets and whose main slogans focused on better labor relations, the combating of unemployment and poverty. (IWW)
Anarchist protests connected to the G20 summit
in London April 2, 2009
The Anarchist Federation (British and Anglophone) calls on all anarchists to participate in the protests, and of course demonstrate with dignity, not ochlarchy (mob rule broadly defined).
The first big protest is expected to take place Saturday in Central London. Police expect some 20,000 people to turn out. Though organized by trade unions, some 120 different groups are taking part in the "Put People First" march, which will start at Victoria Station, wind through Trafalgar Square, and end in a demonstration at Hyde Park.
April 1, the day before the summit, will see various smaller demonstrations in central London. Protesters are calling it "Financial Fools Day," a play on April Fools Day and the anger surrounding the current economic crisis. The protest, organized by an umbrella group called "G20 Meltdown," will feature four separate "carnival parades," each led by giant "Horseman of the Apocalypse" puppets. A flyer for the event, carries the slogan "Storm the Banks!" and features images of French revolutionaries storming the Bastille in 1789 and a mannequin of a banker hanging from a noose. An "Alternative G20 Summit" will also take place near the summit venue, the ExCeL convention center in east London. The slogan "Storm the Banks" is of course not to be taken in a literal sense.
Marina Pepper, one of the organizers of "G20 Meltdown", said that Twitter, the blogging tool that allows short updates to be filed, published and read via cellphones, would be used to coordinate the protests -- and warn participants of possible trouble. But she warned that dissatisfaction with the government and the state of the economy was likely to provoke a minority to violent protest. The Anarchist Federation calls on all protesters to demonstrate with dignity, not ochlarchy and violence. 27.03.2009.
The G20 countries are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the US and the EU. They will meet to discuss measures to tackle the downturn.
28.03.2009. G20 demonstrators march in London. Tens of thousands of people marched through London demanding a.o.t. action on poverty, climate change and jobs, ahead of next week's G20 summit. The Put People First alliance of 150 charities and unions walked from Embankment to Hyde Park for a rally. Protesters had travelled from Spain, Belgium and Italy to take part, and the age ranged from children in prams to pensioners in their 80s. Police estimated 35,000 marchers took part in the event. Protesters taking part described a "carnival-like atmosphere" with brass bands, piercing whistles and stereos blasting music as the slow-paced procession weaved through the streets. "The sun is shining - there are lots of banners and flags and everyone is in good spirits," said Chris Jordan, an Action Aid campaigner. People were clearly angry, but the atmosphere was not tense. The relatively small group of anarchists with slogans, @-signs and waving red and black and black flags was clearly present, also in the newsmedia, mainly CNN, Euronews, BBC, and AP. The basic anarchist demands about less statism and capitalism/economical plutarchy and for more autonomy and socialism, were however not clearly expressed in the newsmedia. Slogans as "welcome to the pig state", and "we've got a long week ahead, the streets are our streets" and similar quoted by the press, are not good enough and should be avoided. Bad press is worse than no press. The demonstration was non-violent, no ochlarchy, and so it shall be also next week.
Anarchism and anarchist strategy. Anarchy is in reality and objectively seen a system significantly without archs, ochlarchs/ochlarchists included, i.e. a system with relatively small rank and income differences, orderly (optimal order, and not chaos) and efficient, also environmentally. Anarchy is real democracy - from the people and upwards, significantly. Anarchists are real democrats. The people, seen as a class, are the grassroots in contrast to the superiors in rank and/or income, the pyramid that in reality is the state/government, if significant i.e. top heavy, and it is probably always inefficent. Anarchism and anarchist strategy are to change the societal organization in horizontal direction, as members of the people, not attacking persons or things... More and more... Until complete horizontal organization is achieved as an ultimate aim. This may take some time...
In this sense, and only in this sense, the anarchists are for abolishment of the state, as expressed on CNN Saturday. Anarchism means anarchist, i.e. non-authoritarian, non-ochlarchical means and methods, as well as anarchist ends and aims. There must be consistency between means and ends. This is the only strategy that works. The difference between ochlarchs/ochlarchists and anarchists is per definition dependent on what you do , not what you say you are or flag. Don't act as an ochlarchical boss!!! If you do act in this way, you are no longer an anarchist, but a form of superior, i.e. ochlarch/ochlarchist, authoritarian. Anticapitalist ochlarchs/ochlarchists are authoritarian socialists, i.e. marxists.
01.04.2009. Protesters block London's financial district. About 4,000 protesters locked down a section of London's financial district for much of the day on Wednesday a day before the Group of 20 summit meeting here, shouting "storm the banks" and "shame on you." Around 2 p.m., several hours into the protest, a handful of furious protesters smashed the windows of the Royal Bank of Scotland, which became a symbol of the financial crisis because of a record loss that prompted a government bailout. Some painted slogans such as the communist (ml) "class war" on the facade, while others carried computers through the broken windows and smashed them on the street. A branch of HSBC also had windows broken. When the police stepped in to stop the looting, Liam Edin, a student, said "the police are defending the very people they should be fighting: the bankers." A wide range of interest groups were in attendance, including climate change campaigners, marxists, anarchists and pensioners concerned about their life savings. The rioters were criminal anti-capitalist leftwing extremist ochlarchs/oclarchists, i.e. ultra-authoritarian marxists. No anarchists were involved in the vandalism. The demonstrations continued late in the evening, with sporadic violence. There have been 63 arrests, with some police and protesters injured. Later, a man died after collapsing, police said in the evening. Most of the protests were non-violent, non-ochlarchical. All in all about 5,000 people took part in the protests on Wednesday.
02.04.209. More protetsts. Demonstrators gathered near the G20 summit venue in London's docklands for a second day of protests. Several hundred staged "noisy but calm" protests on various issues near the ExCel centre. Earlier, 40 protesters met outside the London Stock Exchange where they had threatened to disrupt business but were outnumbered by 100 police officers. On Thursday morning, Prime Minister Gordon Brown greeted world leaders arriving at the ExCel centre a few hundred yards from the protesting groups. Elsewhere, campaigners got their message across in a variety of different ways. A small number of protesters played a giant game of Monopoly in the City, armed with huge crates of fake money. Later French freeclimber Alain Robert, known as the Human Spider, attempted to scale the Lloyds' building in the capital as part of protests. He unfurled a banner but returned to the ground. Stop the War Coalition, the British Muslim Initiative, CND, Middle East campaigning groups, marxists and anarchists, were among the protesters.
Confrontations between ultra-authoritarian marxists and riot police ensued, as extremists high-jacked the initially good-humored protests that had begun outside the neighboring Bank of England. Protestors' anger focused at the greediness of the few against the majority of the population. Marxist expressions as "burge into banks" and "hung bankers" were some of the slogans used in the protestations. More than 23 people were arrested, all of them leftwing extremist ultra-authoritarian marxists.
On Wednesday, all in all about 90 people were arrested in the City after flashes of violence marred mainly peaceful protests. Four people were charged, three with possessing bladed weapons and the fourth with assault. Metropolitan Police Commander Simon O'Brien said small pockets of criminals were responsible for the outbreaks of trouble on Wednesday and would be tracked down. But he added that the vast majority of demonstrators were good-humoured. Investigations have already been launched after protesters smashed their way into a Royal Bank of Scotland (RBS) branch in the City of London. The Metropolitan Police said those involved in violence should expect a "knock on the door". Senior officers said one police officer was in hospital, receiving treatment after suffering a blow to the head. Seven protesters were also taken to hospital. Those arrested were held for offences including violent disorder, obstruction, aggravated burglary, arson and unlawful possession of police uniforms.
Meanwhile, police have raided two squats in east London to arrest people they believe may be linked to violence at Wednesday's G20 protests. Scotland Yard said a total of 80 were arrested in the operation, which also included a raid on property in Rampart Street, Aldgate. Police also confirmed that the circumstances behind the death of a man who was involved in the protests has been referred to the Independent Police Complaints Commission (IPCC). Police said the man, thought to be in his 40s, died on Wednesday evening after bottles were thrown at him and he collapsed. Scotland Yard said he was found unconscious near the Bank of England and the London Ambulance Service took him to a hospital where he was pronounced dead. The anarchists condemn the ochlarchy, including the throwing of bottles, and send condolences to the relatives and friends of the victim.
03.04.2009. The protests are over. The world leaders claim to have struck an historic deal to combat the global recession following the G20 summit in London. A whole raft of measures has been agreed to tackle the worst economic downturn since the Great Depression. The most notable is a 750 billion euro cash boost for the International Monetary Fund to assist those countries hit hard by the financial crisis.
08.04.2009. G20 probe officer comes forward. The police officer thought to be shown in video footage of the G20 protest in London pushing a man who later died has come forward. An independent criminal probe has begun into the death of Ian Tomlinson, 47, who had a heart attack minutes later. Additional video footage shown on Channel 4 News appears to show an officer striking him with a baton. The Independent Police Complaints Commission (IPCC) is trying to identify officers who were at the scene. Deborah Glass, of the IPCC, explained the decision to take over the investigation: "People are rightly concerned about this tragic death and this footage is clearly disturbing." "In light of new information which we became aware of yesterday (Tuesday) evening, we have now taken the decision to independently investigate." Opposition MPs have called for a criminal investigation into the death. The police have well-established powers to use reasonable force if they think there is a threat either to themselves or the public, but these are enhanced during a protest or riot.
The Anarchist Federation demands a full criminal investigation into the death!
23.04.2009. The Anarchist Federation calls on the World Bank and IMF to act quickly on G20 goals. The Anarchist Federation has called on the World Bank and IMF to use the opportunity of their spring meetings in Washington to accelerate efforts to stem the global collapse in employment and economic prospects. The Anarchist Federation today warns that global unemployment could increase by 50 million people in 2009 unless the World Bank and IMF and public sectors in the countries of the world take immediate action to implement the commitments made at the G20 London Summit. This year, hundreds of millions of workers will not earn enough from their labour to reach the poverty line because of the crisis. The World Bank and IMF should use the spring meetings not only to confirm the G20 conclusions, but to make further proposals for global management reform, i.e. in the direction of anarchist self management - autogestion - and increased efforts to create jobs and protect social programmes. Among the groups most affected by the financial meltdown are workers close to retirement in countries that adopted mandatory privatized pension funds as advocated by the World Bank. The Anarchist Federation suggests that the Bank participates in providing compensation for the loss of retirement incomes suffered by these workers
The Anarchist Federation emphasizes that job creation and public investment must be an essential part of all economic recovery strategies, and further proposes reform of global management systems to ensure that the world economy remains sustainable after the crisis, i.e. in libertarian direction. Noting that longstanding demands for management reform of the World Bank and IMF remain unfulfilled, the Anarchist Federation urges both the World Bank and IMF to quickly and substantially increase the delegations of the developing countries in their decision-making structures. It also suggests that the IMF should monitor recovery programmes and advocate for stronger fiscal stimulus measures if current expansion plans prove insufficient. The traditional Keynes type countercyclal monetary and fiscal policy measures, are not sufficient. Measures to lower inflation and to achieve a modest increase in labour productivity, taking into account green economics, should also be introduced.
The World Bank and IMF must address the imbalances of recent years, such as increased income inequality, that led to this crisis. But the recovery and reform processes cannot be left to finance ministers and bankers, alone. The World Bank and IMF must include trade unions and civil society including the anarchists in their discussions and work with other international institutions as they move forward. It is essential that they confirm a clear break with the failed, anti-growth and anti-jobs economic adjustment programmes they have advocated in the past, i.e. unenlightened plutarchy.
The Anarchist Federation proposes a new libertarian financial sector regulation, including the nationalization of insolvent banks, and encourages the World Bank and IMF to promote active labour market policies, extend social safety nets, and invest in green projects to shift the world economy onto a low-carbon growth path. The Anarchist Federation calls on the World Bank and IMF to work with the International Labour Organization and the anarchists, etc.. to find employment-driven solutions to the crisis, to support the proposed Global Jobs Pact at the upcoming International Labour Conference, and to cooperate in establishing a global Charter for international management, i.e. libertarian self management - autogestion - that would include all the major international labour, financial, trade and development instruments.
28.04.2009. The Anarchist Federation welcomes the World Bank's suspension of "Doing Business" labour indicator EWI. The Anarchist Federation welcomed the decision of the World Bank to instruct its staff to stop using the "Employing Workers Indicator" (EWI) of its highest-circulation publication, "Doing Business". The EWI gives the best ratings to countries with the lowest level of workers' protection and has been used by the World Bank and IMF to pressure developing countries to undertake labour market deregulation. In the context of the current global economic crisis, where a) more than 50 million more workers could become unemployed this year, and b) pressures to decrease wages and workers' living standards are intensifying every day, it is c) significant that an important development institution like the World Bank is turning the page on a one-sided deregulatory view on labour issues and d) proposing to adopt a more balanced approach where adequate regulation, improved social protection and respect for workers' rights will be given a higher profile.
In a note on revisions to "Doing Business" made public today, World Bank management informed its staff that "the EWI does not represent World Bank policy and should not be used as a basis for policy advice or in any country program documents that outline or evaluate the development strategy or assistance program for a recipient country". The World Bank will furthermore remove the EWI from its Country Policy and Institutional Assessments (CPIA), which the Bank uses to establish countries' overall level of eligibility for loans and grants allocated by the Bank's concessionary lending arm, the IDA. It is clear that use of the EWI may contribute to excessive inequality, that can become politically dysfunctional, and to the extent that it begins to depress consumption, it can become economically dysfunctional.
An alternative approach that promotes the creation of decent work should be introduced. The World Bank Group has already made considerable strides concerning respect for the ILO's core labour standards (CLS), starting with the requirement three years ago by the IFC, the Bank's private-sector lending arm, that all of its projects conform to the CLS. More recently, the World Bank incorporated a CLS requirement into its master procurement documents and led a process to include CLS clauses in the harmonized standard bidding documents used by all multilateral development banks. The IMF took a similar step concerning the "Doing Business" labour indicator in August 2008, when IMF management instructed staff that mission teams should refrain from using the EWI in any of the Fund's public documents because of various methodological problems associated with the index.
In its note on the "Doing Business" labour indicator issued today, the World Bank states that it proposes to give appropriate weight to "issues as diverse as political stability, social safety nets to shield vulnerable parts of society from intolerable levels of risk and protection of rights for workers and households as well as for firms". The World Bank's decision to pay greater attention to issues such as these is consistent with the commitment of G20 leaders at their London summit to "build a fair and friendly labour market for both women and men". The World Bank should listen to the ILO and civil society in general, including the anarchists, on this theme, noting that the G20 statement called upon the ILO to assess appropriate employment and labour market policies.
The actions taken by the World Bank regarding the Employing Workers Indicator of the "Doing Business" report are described in a note posted today on the Bank's "Doing Business" web site: http://www.doingbusiness.org/documents/EWI_revisions.pdf . Interesting reading for anarchists. (AF)
WEC-actions in Norway and Iceland
The Norwegian branch of WEC, ETSYS, has the Web-site ETSYS and the work related to Iceland is presented at Anarchy in Iceland. These Webpages are updated regularly when needed. ETSYS' page is written mainly in Norwegian. Use the translation tool at "links" to get a crude translation to other languages. WEC-researchers have regularly been giving advice to the Tops of the economic-political systems in Norway and Iceland, i.e. within a Bottom - Up approach. And researchers connected to IIFOR and WEC have got concrete positive response from the Top, especially in Norway. The economic-political systems in Norway and Iceland are not top-heavy pyramids, but significantly horizontally organized, i.e. libertarian and anarchist (but only of rather low anarchy-degree so far). In such systems a Bottom - Up managerial approach exist or are easy to establish, as WEC and IIFOR have experienced in practice.
*) Libertarian is the same as anarchist, anarchism and anarchy, but not the authoritarian travesty of the concept, i.e. rivaling polyarchy, ochlarchy (mob rule broadly defined), chaos, lawlessness, etc., the quite opposite of anarchy, anarchism and anarchist. For more information about anarchists vs ochlarchists, see IJA 1 (36) and IJA 1 (33). For information about the Brown Card and anarchy vs chaos, see the Oslo Convention and search for anarchy vs chaos at Anarkidebatt. The International Libertarian Tribunal, IAT-APT's, homepage is at IAT. To mix up opposites as a) anarchy and ochlarchy/chaos and b) anarchists with ochlarchists/ochlarchs, rulers of chaos, as outdated dictionaries and media often do, is equally authoritarian as mixing up opposites as peace and war, as Big Brother did in Orwell's "1984" newspeak. It should be stopped, and the IAT-APT in such cases hands out a Brown Card, as free criticism of this authoritarian tendency. The WEC, the Anarchist International, AI, and the International Anarchist Tribunal included the Anarchist Press Tribunal, IAT-APT, call on the international newsmedia and mandated persons to report fairly and objectively, and not with authoritarian newspeak, about anarchy, anarchism, anarchist and anarchists, the libertarian.
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