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world
affairs in the new millennium ©Hazel
Henderson, October 2001
www.hazelhenderson.com Forum 2000
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| A complete re-think and reorganization of current US Pentagon force structure to address these new global terrorists, cyber warfare and many low and high tech surprise strategies, for which large weapons systems are unsuited if not useless. This includes canceling missile defense, which was always an unfeasible and irrelevant holdover from the dreams of scientists and weapons contractors hitched to President Reagan’s Star Wars. Many experts on cyber warfare, better intelligence, low-intensity and terrorist strategies, who have labored in obscurity at the Pentagon for over a decade, will now need to be recognized and funded adequately. | ||||||||
| Just as important, the US must redress its serious decline in funding diplomacy and intelligence, which has lost much ground to weapons-procurement. The “prevent and deter” strategies of diplomacy, coalition building, multilateral treaties, information and financial strategies must be balanced again with those of “attack and destroy” weaponry. | ||||||||
| Most of all, the US should also repay the $500 million of still-outstanding UN dues (some still owed to our European allies for US-approved UN peacekeeping missions). A Harris Poll September 19th found 95% of Americans think building a coalition of many countries to support the US is very (79%) or somewhat (16%) important and 84% believe it very or somewhat important to get the support of the UN. The UN must be seen as the world’s most important international body, since only the UN can convene all nations. The US can help in revitalizing the UN by supporting new permanent members who should be part of the Security Council, including Japan, Germany, Brazil, India and South Africa and probably Indonesia as well. The US should then take the lead in abolishing the veto – which is counterproductive as it is also in the hands of Russia and China. | ||||||||
| A properly funded UN with a revitalized, democratized Security Council could then sponsor the proposed United Nations Security Insurance Agency (UNSIA). Military approaches can be replaced by insurance, as in the (UNSIA), a public-private, civic partnership between a reformed UN Security Council, the insurance industry and the hundreds of civic humanitarian organizations in conflict-resolution and peace-building. Any nation wanting to cut its military budget could apply to UNSIA for a peacekeeping “insurance policy.” The insurance industry would supply the political risk assessors and write the policies. The “premiums” would be pooled to fund properly trained peacekeepers and rapid-deployment of the existing networks of civic and humanitarian groups. The “deliverable” would be properly trained UN peacekeeping forces and rapid-deployment of civil society groups for confidence-building and humanitarian aid. The UNSIA proposal is backed by several Nobel Peace Prize winners and is taught in many university courses. (See The UN: Policy and Financing Alternatives, futures, Elsevier Scientific, UK, March, 1995) Redeploying military budgets and providing alternative security structures are the sine qua non and bedrock of sustainable human development. | ||||||||
| Another crucial set of reforms involve taming our global casino of some $1.5-$2 trillion of hot money sloshing around the planet every day. Finance ministries have called for a “new international financial architecture” since the Asian meltdown of 1997. NGOs propose taxes on currency speculators, (Tobin Tax) supported as well as by George Soros and many other market players. With deregulation taking down all the firewalls between countries’ economies, we now have a global roller coaster of bouncing currencies and synchronized recessions. Mr. Bush has also wisely reversed his former opposition to the OECD and G-7 crackdown on money laundering in order to follow Al Qaeda’s money trails. | ||||||||
| Scenarios of global economic recession were on the horizon before the awful attacks of September 11 on the symbols of finance, world trade and US military power. Instead of the US leading a coalition of bombing raids I have advocated countries with large inventories and backlogs of unsold food, clothing and other consumer goods to start air-lifting those surplus goods and parachuting them to refugee camps in Afghanistan and bordering areas. Starving Afghans, whose UN and other food and humanitarian aid cut off as a result of the US attacks can fill their stomachs and find new strength to resist their Taliban oppressors. Unfortunately, instead of immediately implementing this humanitarian airlift for its own sake, the US waited and combined token food drops with its air strikes – reducing their humanitarian value to a public relations exercise. | ||||||||
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Still, it
seems that unsold commodities, medical supplies, consumer goods, radios
and magazines will continue to float down from the skies.
The Taliban will become further discredited for their economic
failures. As unsold
inventories are reduced in stagnating economies in Europe, Asia, North
and South America, production can be revived and people re-employed.
These economies and companies will rediscover the power of
bartering. Surplus goods
for peace and helping smoke out Al Qaeda would be a fraction of the cost
– as well as avoiding the casualties of weapons and military strikes. |
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| Money-based systems, policies and national accounts, such as GNP are only half the story – and limit our thinking and strategies. Money does not equate with wealth, a broader term, which includes human creativity, intellectual and social capital and ecological assets. Outside the box of conventional economics lie a wealth of creative strategies based on barter, reciprocity, mutual aid, sharing and cooperation. This hidden parallel economy is estimated at $16 trillion annually, but money-free and therefore invisible to economists. These strategies used by the other half of humanity, the poor and those bypassed by globalization, are all considered irrational and primitive by market economics with its competitive strategies of maximization of self interest and profitability. Those of us who advocated airlifting surplus supplies, food and unsalable consumer goods to Afghans follow the logic of game theory, not economics. | ||||||||
| The UN Summit on Financing for Development will take up all these issues of reforming global finance in Mexico, March 2002. Many of the proposals I and my partner Alan F. Kay, of the Center for Defense Information’s board, will be official background documentation for this Summit. These proposals include the UNSIA and the FXTRS, a computerized, screen-based method of currency-trading. FXTRS allows central banks to catch money-launderers, and tax speculators – reducing currency volatility and creating emergency currency reserves when currencies may be attacked by speculators. Since these flows of hot money are 90% speculation, even a .01% tax (of little consequence to traders) could raise up to $50 million a day. These funds can be directed to childhood vaccinations, education, micro-finance of village enterprises, rural solar electrification and other forms of efficient, resource-saving development. | ||||||||
| It will also be in US longer-term interests for Mr. Bush to reverse the priorities of his Energy Plan – largely shaped by his campaign donors in the oil, gas, coal and nuclear power industry. Not only is this fossil-fueled, Middle East oil-dependent future untenable on security grounds, it is also extremely wasteful and unsustainable on health and environmental grounds. Energy independence – a laudable goal – can be better achieved at lower cost, greater efficiency, while creating new jobs in the now rapidly emerging solar-based renewable energy industry. Wind power in the agricultural Midwest is the USA’s “OPEC” – and is already augmenting farmers’ incomes. Denmark now gets 13% of its energy from wind. | ||||||||
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Solar
photovoltaics are also taking off, jumping 43% in 2000 as prices dropped
to $3.50 per watt. Electric
hybrid cars, like the Toyota Prius I own, get 50 miles to the gallon in
traffic. Fuel cell cars
that run on hydrogen will be available from all major auto companies
starting in 2-3 years. Fuel
cell generators will enable houses, apartment buildings and factories to
get off the grid. The
future of energy is in decentralized micro-generation – not in
building huge central power plants, miles of transmission lines and new
oil pipelines. As former
OPEC oil minister Sheik Yamani noted recently, “The Stone Age didn’t
end because we ran out of stones.” President Hugo Chavez of Venezuela,
OPEC’s initiator, stated to OPEC’s Summit in 2000 that the only real
sources of energy are solar energy and human talent.
Even OPEC and oil majors, BP and Shell, are planning their own
post-petroleum futures in solar and hydrogen.
There are now lists of such alternative energy stocks available.
I have such a portfolio of these new companies and they have been
performing well in this shell-shocked market. |
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| Which brings me to the whole area of socially-responsible investing in these and other companies now positioned to succeed in this new Millennium. The trade association of these investors, asset managers, mutual funds and pension funds is the Social Investment Forum (www.sif.org). This segment of the financial industry is it’s fastest-growing – representing some $2 trillion in the USA alone – and growing in Europe and worldwide. I have served on the Advisory Council of the Calvert Group Inc’s socially-responsible mutual funds since they were launched in 1982. Calvert manages about $6 billion including a family of funds of such socially and environmentally responsible company shares (www.calvert.com). | ||||||||
| We often forget how powerful each of us really is – as voters, consumers, investors and employees. We can ”vote” every day with our pocketbooks by investing in America’s best companies and buying their products. We can use the Shopping for a Better World pocket guide when we go to the supermarket – or click on their website www.shopforchanges.com for up to the minute information on corporate social performance. Many corporations now have published Codes of Conduct. In 1999 the UN Secretary-General Kofi Annan announced in Davos the UN Global Compact which asks corporations to sign on to its nine principles of good corporate citizenship: on human rights, labor and workplace standards and environmental protection. I am proud to have introduced the Calvert Group to the UN Global Compact and that Calvert’s CEO, Barbara Krumsiek, has offered the Secretary-General Calvert’s donated services to help in spreading the principles and good practices of the UN Global Compact. | ||||||||
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Further, industrial and developing countries must go beyond scoring their “progress” and “wealth” by means of the now out-dated Gross National Product (GNP) and its narrower domestic version, GDP. These national accounts were introduced in Britain during World War II to maximize Britain’s war production. They value tanks, planes and weapons and all material production, but set the value of human resources, social capital and ecological assets at zero. Much of my work and writings over the past 30 years has focused on overhauling such 19th century economics in light of 21st century realities and our changing global economy. For the past 5 years I have partnered with the Calvert Group in developing a new scorecard and tool for assessing US trends in twelve key sectors of our society and economy, the Calvert-Henderson Quality of Life Indicators, launched in 2000 and are now updated and available for journalists, professionals, investors and interested citizens at www.calvert-henderson.com. Our National Security Indicator was flashing warning signals long before September 11 about the changes needed that I mentioned, if we are to address the security and quality-of-life issues of this new Millennium. Lastly, I want to draw attention to the Earth Charter, a set of 16 principles of global interdependence. Recently, I participated in the nationwide satellite TV uplink from Tampa to introduce The Earth Charter to cities in North America. The Charter has been adopted by several, including the city of Sanibel, Florida. The Charter has circulated in 100 countries since the Rio de Janeiro Earth Summit in 1992. I was honored to be present at the Peace Palace in The Hague when the Earth Charter was officially launched. Check www.earthcharter.org. Its principles outline our human responsibilities to each other, to our families, countries, communities, to all species and to the Planet’s biosphere. Thank you. *** HAZEL
HENDERSON, author,
futurist and consultant on sustainable development.
Her |
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