Principles for a fair economy Part 1.

Some time ago I’ve started a very interesting course, called “Principles for a fair economy”.

Whoa! Doesn’t that sound good? :) Isn’t that what basically everyone wants? A fair economy, based on the four pillars of sustainability (economic health, social equity, environmental responsibility and cultural vitality), focused on eradicating poverty, ending differences between people, restoring the ecological functions mankind has destroyed, and a veeeeery long etc of all kinds of good things.

Now, sadly, not everyone wants it a fair economy. Not everyone is blessed with a capacity for long-term vision, nor with any notion of empathy, compassion or respect for anything else than personal economical profit. Our current financial and economical system just isn’t sustainable, as it is focused on a maximum profit, exploiting all possible resources and concentrating power and wealth so that only a few can benefit from it.

Now, before I start writing too much, I’m going to explain my plan. In the following weeks I’m going to blogs about the things I’m learning during the course, combining it with my personal insight. Why? Well, it’s pretty clear: everyone should know a bit more about fair economy, and I’m happy to share my personal insights (yes, they might not always be right from your point of view, nor politically correct, but at least they might get you thinking!).

So, for today, let’s talk about the Millennium Development Goals. It’s a good place to start, if you want to get to understand what fair economy is about and all the reasons we seem unable to create such a system. I’ll try to keep it short, although it’s a complex story.

Basically, the Millennium Development Goals (MDGs) were created in 2000, with eight basic goals which should be reached in 2015 (for more information, check out http://www.un.org/millenniumgoals/)    

Now, the idea is good.  But it hasn’t really worked. Sure, some of the goals have been (partially) reached, but we’ve still got a long way to go. The MDGs were created in a capitalistic, neoliberal system, more than a decade ago, and now we’re seeing that that system is failing (so much has become evident since the start of the global economic crisis).

So: What are the reasons the MDGs have failed?

Here are some:

• The donating countries (with that I mean the developed countries, who have agreed to give help to the underdeveloped countries) are free to choose how much money to give for the purpose of Oficial Development Assistance (ODS). The “magical number” is 0,7% of their GNI. Now, barely any developed country has managed that, although Spain has been the worst case (http://www.oxfamintermon.org/es/documentos/19/03/14/realidad-de-ayuda-2013), by not only not managing to reach that goal, but to decrease their ODS more than any other country has.

• The developed countries impose their economical system upon the cultures of the underdeveloped countries, thus extending an economical model which is unsustainable, creates exclusion and inequity, concentrates wealth and increases injustice. Why? Well, because we, in our arrogance, believe that our system is the best and the only way to reach economic growth. An example: the international financial institutions oblige the underdeveloped countries to succumb to the process of liberalization and deregulation of the market. What really happens is that this avoids economic progress of the underdeveloped countries, whilst the powerful economies obtain privileges and wealth.

• We confuse economic growth with development. These two words do not mean the same!! I can even say that there are quite a lot of cases with economical growth, but where development has been absent.

• And last but not least. The donating countries can decide to which country they send their money. Thus, what really happens is that money is sent to those countries where the developed countries think their security and/or their commerce is at risk.

• And wait! Did I say that the developed countries send/give money? Well, actually it isn’t really a gift, but rather more a loan, which consequently creates a great debt. In the last few years, the amount of money the underdeveloped countries have had to pay back was five times more than the ODS! So, sadly, poor countries that really struggle, have to pay an enormous debt besides all the other difficulties that arise from poverty and social injustice.  

Well, I hope I haven't written too much information all at once. On Internet you can find all the things I've written about today, as there is a lot of information about this subject. If anyone is interested in discussing some of the things I've written, please write!

Source: "Hacia una economia al servicio de las personas. Principios para una economia justa. UNED Tudela"

And last but not least, some good, critical cartoons!