Here is the draft statement which will not substantially change.
This is the first public statement without a carbon-based international reserve currency, because during last weekend it become clear that no reserve system is needed in the Tierra Fee and Dividend system, a major decision in the development of the system.
TRANSFORMING THE INTERNATIONAL MONETARY SYSTEM
TO SERVE LOW CARBON AND CLIMATE-RESILIENT DEVELOPMENT:
The Case for the Tierra Fee & Dividend System
A Statement at the 18th UN Commission for Sustainable Development
The International Institute of Monetary Transformation
Frans C. Verhagen, M.Div., M.I.A., Ph.D., sustainability sociologist, president
www.timun.net; email@example.com; 718 275 3932; 917 617 6217
Draft, 24 April 2010
Development or living well in global North and South has to be low carbon and climate resilient within the ethical context of Article 3 of the UNFCCC and the demands of climate justice as proposed at the December 2009 Copenhagen conference and the April 2010 Cochabamba peoples’ conference.
Domestic, regional and especially international monetary policies can be used to work towards low carbon and climate-resilient development in the global North and South. Fundamental change in the often underemphasized international monetary system leads to fundamental change in the financial, fiscal, economic and commercial systems given that it is like glue which binds them together.
THE PRESENT MONETARY NON-SYSTEM AND THE DIRECTIONS OF THE MONETARY FORK IN THE ROAD
Many observers have pointed to the need of having a second Bretton Woods monetary system since the early one of 1944 expired on 15 August when the
IMF, the fund to balance the global financial imbalances, has failed its surveillance function because of the continuing global financial imbalances and because of its double standard for developing and developed countries.
The present non-system is a muddling at considerable transaction and reserve currency maintenance costs amidst humanity’s greatest challenge of restoring the degraded Earth’s processes of the cycling of matter (particularly the carbon cycle), the flowing of energy and the webbing of life. There is a choice between the present muddling through and using a transformed international monetary system for working towards low carbon and climate-resilient development. We have reached a fork in the monetary road: one direction is to continue with reformist proposals for IMF and reserve currencies keeping an international order in place that enrich the few, impoverish the many and imperil species and planet; the other direction is to embark on a transformed international monetary system based upon a de-carbonization monetary standard and the new currency of the Tierra with the new institutional arrangements of a carbon account in a nation’s balance of payments and an UN Monetary Board which would have greater authority than the 1944 Keynesian International Clearing Union.
Reasons that governments, CSOs and business are to take the transformational route are the following:
- We have to go beyond the reformist proposals of the 2009 UN Stiglitz Commission and the BRIC countries for a non-national or supranational reserve currency and the sophisticated interpretations of the UNDESA and UNCTAD proposals for international reserve currencies and move toward a transformed international monetary system that does not need reserve currencies which costs the developing world some $100 billion annually;
- A transformed international monetary system is able to dealing with the integrated financing of development and climate measures by the issuance of a carbon-based international currency within an equitable system, thus providing liquidity without causing inflation by spending credit into circulation without becoming indebted to the privately-owned banking systems;
- Only a transformed international monetary system is able to provide the necessary monetary stability for international finance, trade and economics to flourish
- The IMF and its SDRs are unable to lead in this transformation because of its limitations in distributional justice and of its inability to deal with the climate crisis in a fair, formidable and fast way.
TIERRA FEE & DIVIDEND SYSTEM
- Integrates the transformed international monetary system with a carbon reduction approach that produces faster, fairer and more formidable results than the presently dominant approach of cap-and-trade;
- Its monetary architecture is based upon the de-carbonization monetary standard, a most appropriate standard in these carbon-constrained times.
- It also includes the principle of government as regulator and driver based upon the contextual sustainability framework of a sustainability economics that includes a bioregional focus with the novel concept of frugal trade
NEED FOR THE ESTABLISMENT OF THE UN COMMISSION ON MONETARY TRANSFORMATION AND THE CLIMATE CRISIS
· Looking for bold delegations that take leadership in having the GA pass a resolution in the same way that GA in October 2008 instituted the UN The UN Commission of Experts on the Monetary and Financial Crisis and its Impact on Development
· To be followed by prompt intensified cooperation between the UN agencies such UNFCC, INCTAD, UNDESA and UNEP, CSOs, business and academe.
· For additional information, see forthcoming Cosimo Publication THE TIERRA FEE & DIVIDEND SYSTEM: A Monetary Approach to Low Carbon and Climate-resilient Development by Frans C. Verhagen, M.Div., M.I.A., Ph.D.