There is a citizen-friendly solution to the Global Fiscal Crisis! (Part 3)

In the previous two Parts, we introduced you to the concept of Gaianomy and the first steps towards global institutional reformation.

Specifically in Part 1, we introduced the Human Institutions and way they influence societal behaviour, the way they combine to create complex forms and the mechanism through these forms shape our economic behaviour at a global and local scale.

Equally important, was the introduction of the concepts that:

  1. humanity and the environment are a single interconnected entity, a super-organism within which institutions operate in a similar manner as proteins within a human body and
  2. the manner by which the social and the economic dimensions of our society are connected, is suggesting that any economic measure will always affect the social and vice-versa.

Based on the above we concluded that in order to address the current crisis one has to modify the human (informal) institutions that combined to create the so called “Global Economy” instead of relying to pure fiscal measures or wait for The Markets to bring the “Global Economy” to order.

In Part 2, we introduced the first four changes out of a total of eight we feel necessary in order to exit from the crisis. These were, rethinking Globalisation and its governance needs, introducing the need for one world currency, one new standard the H2E that should replace the fiat and the golden standard and finally the abandonment of all physical representation of currencies in favour of the electronic one. We listed as well a myriad of benefits deriving from this.

 

Step 5 .

With these four fundamental institutional alterations in place the next step should be the re-valuation of work. There have been several propositions and a lot of sociology and economic papers have been devoted to the subject (see example in www.neweconomics.com) . The major idea behind them is the migration from the current narrow definition of productivity related valuation of one’s work, to one that accounts for one’s social contribution as well.

I’m really fond of it personally and I will show below the benefits of implementing it. That said, I personally believe we need to go one step further from the existing propositions and apply to it, macro-social and meta-social criteria. These are the net value to the global society as well as the net value of its environmental contribution (I use net, as inevitably negative effects will always co-exist even if they are at a very small percentage).

Rethinking and redefining work will be a no-mean social engineering feat. This will be the biggest institutional modification in the human history.

To pre-empt questions that may be raised, it will be unwise to move this institutional change into Step 1 instead of Step 5, in order to speed up the process and bring its monumental benefits forward.  I firmly believe that any such attempt will prove futile. To change this mega-institution one needs all the foundations and its constituting institutions in place and within them are all the redefined Globalisation, the Global currency and the H2E. We will need all of them before we are ready to rebuild this one.

The ways one can go about redefining work based on a universal framework of values, are not many and all, one way or another, are criteria based, criteria that carry these universal values and embed them within this redefined institution.

Until a better idea is presented I will propose that we use a hierarchical-needs points system based on weighted benefits, as appears to be the order according to crowd-sourcing internet analysis of fundamental values I attempted, namely:

  1. The environment as a whole (to what degree this is benefited or destroyed)
  2. The local ecosystems & the preservation of the species
  3. The Human Race (well being, medical advancements etc.)
  4. The Food production and Water sources management
  5. The Energy Production and the replacement of scarce resources and materials
  6. The Scientific and technological advancement
  7. The country
  8. The community (or enterprise/organisation)
  9. The family
  10. The individual

With the above list agreed (that is why we need the global institutions in place to debate such issues), all we have to do in addition is; a. to identify the net degree of contribution and b. the net degree of applicability (i.e. how many “units” will be positively impacted) to end up with the initial value of one’s work. Of course it is a bit more complicated then that and one should account for additional parameters with the list being by no means exhaustive, like:

  • The degree of mental dexterity
  • The degree of talent (inherited or acquired)
  • The degree of knowledge
  • The degree of experience
  • The time needed to reach average competency
  • The degree of dependence on external factors (systems or organism and energy needs)
  • The degree of innovation
  • The degree of ability
  • The extend of physical effort
  • The impact on one’s health
  • The risk of harming himself
  • The degree of reluctance across the population to undertake the specific duty and

Finally a parameter which will reflect the ratio between the global average and the specific country’s GDP at that point in time. (See below in step 6).

I will not propose a formula on how to calculate the above, even if I have one worked out of curiosity, instead let me offer an example of how this might work.

If we accept that the unit is an individual and the Human race equal 7 billion immediately a universally accepted climax from the first list can be agreed.

With this in place the next step will be to define for every task the degree of one or more of the applicable elements in the second list and lets name then B1 to B12 with each one able to take values between 1 and 100.

Then in order to calculate one’s contribution it will be enough to add or subtract (some of them have a negative sign) all elements that apply from the second list in their relevant degree and multiply the end result first by the (combined or not) contribution from the first list and finally by the GDP ratio mentioned above.

It is easy to understand under this system of interpreting work values and one’s remuneration, that manipulating numbers in front of a computer the actual job of an FX trader is definitely of lesser value than of the Prime Minister’s of that country!

Equally obvious is that an inventor of a device that deters 100% of all midges and mosquito from biting us should be rewarded higher then a singer with an average music global hit.

The immediate benefits of the above will be unimaginable and they are definitely in the wish list of all social movements in one form or another. Listing here only the major of them are:

  • Remuneration for the same work across the globe will become equal (gradually though as it will be influenced of that country’s current GDP) and with it
  • A new global equal rights’ charter can be at long last created
  • Low pay driven production-migration will be repatriated and with it
  • Air and sea pollution will be reduced drastically. This by itself maybe able to regulate emission levels beyond regulators dreams
  • New industries will spring next to where the resources are and with them employment education and infrastructure levels in underdeveloped countries rich in raw materials or with a farming potential will drastically increase
  • Illegal migration will cease (gradually though)
  • Human exploitation will decline drastically and with it human workers trafficking
  • Fiat money will be reduced to its final stage before total elimination
  • Patents will be unlocked and with it the open source system will be boosted
  • Organisation leaders remuneration packages will stop appearing in the news entries reducing this way the current social friction
  • Research will be given the biggest boost possible and with it scientific breakthroughs will follow
  • Non productive and parasitic functions in government level will cease to exist
  • Remunerations across the globe will be rationalised and the most important
  • Unemployment will decline everywhere
  • GDPs will be altered to a more realistic level with its absolute accuracy increasing overtime and with it the remuneration level in the country (or decreasing where the current GDP evaluation is artificial) with the people sharing a part of the added value they created
  • Inflation will be reduced further and it should become less then the currency micro fluctuations
  • National pension schemes will get a real boost
  • Country finances will start to recover as well as national dept and
  • The dream for social justice will come closer then ever before

For most countries and societies this will be a dream coming true at long last.

On the other hand needless to say that every single country, organisation (legal or illegal), social group and individuals currently enjoying benefits from the current situation will “revolt”. This move changes the institution of Capitalism into something totally different whereby human exploitation (the old institution of slavery) is not an active segment any more, so reactions should be expected.

The list of opponents will be endless and, thankfully, all effort will be futile.

You see institutions are made by the societies not their governance and in this case we can give at last the society control over the institution altering the status quo.

The rule is very simple. You vote for those only that have the path (the eight steps) into their manifesto.

This is the end of Part 3. In case you cannot stop reading, the whole text is available within the same blog.

Next week in Part 4, we will attempt the last major step that will free us all once and for all of this monstrous institution we created Profit.

Until then have a great week and enjoy life.

S.

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