Economic equality for social justice

Economic equality for social justice

Azerbaijan, Baku, Feb. 17 / Trend /  

Sad truth that was disclosed during discussions on the global economic crisis at the World Economic Forum in Davos once again proved that the world economic model based on market economy, which the capitalist world was trying to apply all over the world over long years, was more than brittle.

If we take a good look at the modern structure of the world economic model, we will see socio-economic injustice and inequality of free competition conditions, which are the basis of market economy, for individual economic actors. People watching the forum in Davos noticed that heads of states and governments of over 40 countries and roughly 3,000 optimistic businessmen from different states returned to their homeland in pessimistic thinking.

The world economy once again proved at the forum its weakness in the search for a way out of the next global economic crisis, which has already accepted a systematic nature. Economic programs generator to Russian President Boris Yeltsin Anatoly Chubais made an admission. "I was heading for Davos understanding that everything is bad. But now I have realized that I was mistaken. Everything is too bad." His statement is another proof.

The whole world recognizes that economic sphere should be "reconstructed". The absolute dominance of the national currencies of several states in the international trading system is one of the main factors that create a social imbalance in the global economy which is emerging from natural resources and economic potential of all countries worldwide. It is paradoxically that these currencies are gaining more weight from a crisis to crisis and seem "feed" on this difficult situation.

During global economic crises demand for these currencies increases repeatedly. Hundreds of countries have to "spend" their economic progress, achieved over years, in order to prevent collapse of their national currencies. Anyway, civilization is constantly developing. Views change along with generations. One day society will wake up to understand that this cannot last longer. Indeed, one of the basic principles of democracy is that every nation should build its model of development on the basis of its ethnicity and national interests.

The Azerbaijani State has also chosen a path of development, wants to pass it without influence from any outside forces and wishes the same to other countries. Shaping market principles in the modern world economy around national currencies of several countries has a negative impact on the economic development of each state individually. Currencies of one or more states are "oppressing" other national currencies and increasing their dominance in the global economy. This is intolerable. What is a way out?

No one can deny a need for the single world currency for the stabile development of world economy. It is high time to design model of a single world currency (SWC) in compliance with equality principle.

Representative of some countries have already made several proposals on this issue in international forums and meetings. But none of these proposals can fully guarantee providing equal conditions for all states in the present world economy. For example, Kazakh President Nursultan Nazarbayev's proposal to create SWC in the Kazakhstan-India business forum held on Jan. 24 in Delhi can yield results in case every state keeps its own national currency. States without their own national currency will not be able to shape development model and repulse economic pressure from abroad.

He said a single world currency must be used for calculation for only among states in atmosphere of free competition based on equal rights. The world community should be able to use this currency as an irreplaceable way to impose sanctions on countries which undermine stability across world and reject international norms, for example, in event a small province announces its independence.

A subject, deprived of foreign policy activity and caught up in economic blockade, can not exist for a long term. Such punishment can be applied to states who build their economy on money from drugs and back terrorist organizations on state level.

Admittedly, separatism and terrorism tendency in modern world is a like a maelstrom pulling mankind to darkness. One can fight this evil by suppressing financial sources feeding it. To achieve this, the governments are required to reach mutual agreement to establish high-quality and fair economic system for the sake of bright future of our planet.

Major principles of circulation of world currency are as follows. This currency must be adopted as a calculation currency in inter-governmental trade relations. In order not to undermine balance on world economic market, the rate of the SWC against national currency must be fixed in line with the U.S. dollar rate. The rate of the single currency must be determined not by market methods, but joint decision of an economic control commission set up at the Single World Currency Bank (SWCB) and Central Banks of interested governments based on economic development and inflation rate in each country.

It is necessary to prohibit turnover of other countries' national currencies, including SWC, on interior market with the right to maintain only own currency at the turnover. This is a too important condition which is a means to prevent transforming money into a speculation tool. The SWCB carries out calculations at all foreign trade operations amongst countries, as well as companies.

The SWCB is not engaged in loan policy and has a status of a supreme intergovernmental finance-supervision organ. Participant-countries elect its board each 5 years. The SWCB offices open in every country and are commissioned to supervise over the single currency during international trade operations in the country's territory. A separate single currency quota is fixed for every country. At the first stage, a size of the quota is set for every country equally with equivalent of size of other currencies and securities on interior and foreign market regarding U.S. dollar.

While fixing a size of the national currency on country's interior turnover, sum of the single world currency is also regarded as liquid assets. During traveling countries, citizens have an opportunity to exchange national currency with currency of a country for where he/she leaves through SWC while crossing border. Meanwhile, the sum becoming the single currency is deducted from single currency quota of a country where it leaves and added to quota of a country, for where it leaves. Thus, the process of enriching one state through other's natural resources is stopped.

So, a new economic system neutralizes negative influence of other country's economic processes on other's economic development. This will be a too important factor which enables state to supervise over economic processes on interior market. In this case, every country choose own development way in line with national interests and develops on principle of intergovernmental free competition.

Thus, importance of my economic model enables to say that this model's negative influence equals zero. But one of positive factors of the model is that modern world, which got rid of military, political, ethnic and economic misfortunes in the 20th century, can more develop in the 21st century.

Al the abovementioned is of theoretical character. I consider reasonable to organize international conferences and hold large-scale discussions with specialists' participation in order this draft will become an economic model after improving.

Bizim Vatan information centre, economic analyst Kochari Hasanov

Opinions expressed in this article may be different of those held by Trend

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