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Global Marshall Plan –

for a worldwide Eco-social Market Economy

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The current situation -Poverty and hunger

Every second, a human being dies of malnutrition and

related causes 30 million deaths per year.

Every 30 seconds, a child dies

of malaria 1 million per year.

Approximately 840 million people

suffer from starvation.

Approximately 1 billion people earn less

than 1 US dollar per day.

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The current situation -Development of incomes

Gap in incomes

continues to grow per

capita GNP in 20 poorest

vs. 20 richest countries

(in US dollars)

1960-62 212 :

11,417

2000-02 267 :

32,3391 : 53 1: 124

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Destructive impact of “ECONOMISM”

Exploitation of humans and nature in poor countries Competition unfair to regionally anchored businesses Reduced financial capacity of municipalities, states,

health and social security systems

One-sided profit orientation without social or ecological principles:

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Conclusion

Switch from a “civilisation of exploitation” to a civilisation of sustainability development towards long-term stability

Creation of an equitable order for a globally interlinked humanity.Fair competition development towards long-term peace

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Model of Eco-social Market Economy

EconomyEconomy

SocialSocialPeacePeace EcologyEcology

Maintainingeconomic

competitiveness

Stabilisingsocial peace

Safeguarding the natural basisof our livelihood

The proper balance between the 3 points of the triangle is crucial.

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.... ECONOMY:

1. Research, development, innovation;

2. Remove obstacles to economic performance(over-regulation, superfluous bureaucracy);

3. Increase incentives for performance;

4. Strengthen regionally anchored middle-class businesses!

The GOAL is a HIGH-PERFORMING, HIGHLY COMPETITIVE ECONOMY:(Lisbon Strategy)

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.... SOCIAL ASPECT:

1. Performance and financial stability of social security and health care systems(broaden the basis of contributions throughout the EU)

2. Create the conditions for familial, community and private care services.

3. Create diverse networks of solidarity.

4. Global solidarity!

The GOAL is social fairness locally and globally, with new imagination

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.... ECOLOGY:

1. Strict responsibility for ecological consequences! Ecological truthfulness in prices and costs –– competitive advantages to sustainable solutions

2. Eco-social tax reform: long-term re-organisation of taxation in favour of human beings and of sustainability

3. Changes to laws, administrative guidelines and subsidies in favour of sustainability

4. Strict declaration of products, transparent truth in labelling

Mobilisation of market forces towards the goal of sustainability!

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Worldwide Eco-social Market Economy

1. Economy, ecology, social needs and cultural identity as goals of equal priority and value

2. Inclusion of identical ecological, social and procedural standards into WTO, IMF, World Bank, ILO, UNEP etc.

3. Fair rules for global financial markets

4. Fair and comparable taxation systems worldwide

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Global Marshall Plan for a world-wide Eco-social Market Economy

A Win-win Strategy in the sense of a

“Global Economy Programme”

Fair development opportunities for all Financing for the Millennium Development Goals

Fair market economy for all Binding standards – (co-)financing – market opening

“Global economic miracle” and growth spurt through impulses to investment and increased purchasing power

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Global Marshall Plan Principles1. New sources of financing

• outside national budgets

2. Global Governance Interlinking international institutions

(UN, WTO, WB, IMF) Implementation of identical social and ecological

standards (e.g. ILO, UNEP…) in all global agreements with equally binding force

3. Distribution of means tied to conditions “Bottom-up” principle (e.g. microcredit banks …) Gradual acceptance of standards Transparency and accountability

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Global Marshall Plan -Millennium Development Goals

Decided in 2000 – Aims for 2015:

1. Halving the number of people with an income of ≤ 1 US dollar per day (currently ca. 1 billion)

2. Elementary education for every child

3. Equal treatment and greater influence of women

4. Reduction of infant mortality by 2/3

5. Improved health conditions for mothers

6. Trend reversal in infection rates of HIV/AIDS, malaria etc.

7. Sustainable environmental conditions (e.g. water supply)

8. New form of partnership for development world economy under suitable framework conditions

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Global Marshall Plan -Means required

Attaining the Millennium Development Goals will require an additional

ca. 120 billion US dollars ≈0.4 % of World GNP

from 2008 onwards.

In total, this equals ca. 980 billion US dollars.

Sources: UN Zedillo Report; White Paper by Gordon Brown (UK Chancellor of the Exchequer); George Soros

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Global Marshall Plan -Financing proposals

Examples:

TERRA Tax on global trade (.35 to .5 percent) 30 to 40 billion US$

Tax on global financial transfers (.01 to .02 percent) 30 to 40 billion US$

IMF special drawing rights for developing countries30 to 40 billion US$

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Principle of empowerment – investment into education and health Strengthening self-determination and entrepreneurial

capability Involvement of civil society Participation of all nations and cultures

Bottom Up – on-site entrepreneurial potential e.g. microcredit banks (such as Grameen Bank) or development schools (Fundaec / Colombia)

Global Marshall PlanUse of means / 1

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Support for those economic sectors most in accordance with development goals

Acceptance of standards Public announcement of support programmes to NGOs

e.g. by an independent agency within IMF Co-ordination of support programmes via UN organisations International research focus on increasing effectivity and

efficiency

Global Marshall PlanUse of means / 2

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Global Marshall Plan -Placing our hopes in the EU

The EU has already called for essential points of the Global Marshall Plan in global negotiations.

The EU should continue to negotiate for the Global Marshall Plan at a global level (UN, WTO, etc).

The principles used in EU enlargement– democracy, human rights, solidarity, common legal standards in exchange for co-financing – should be applied worldwide.

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Global Marshall Plan

Vision:

Worldwide justice, peace and

sustainable development Way:

Global partnership –

worldwide Eco-social Market Economy Strategy:

create a „win-win situation“ for all parties