World economic crisis:
Which approach for a possible solution?
Our talk will contain four shutters:
1-The world situation, consequences of the deregulation,
2-The bases of a world society in which every human being could completely make a commitment and live comfortably,
3 - Guiding plan of a new world order: spiritual bahaïe approach.
4-Twelve laws allowing adjust disparities between the individuals and who will regulate the excessive fortunes, moderate and eliminate the extremes of wealth and poverty in the planet and with the aim is a social justice.
1-The world situation, consequences of the deregulation
In the difference with the previous economic crises namely:
- The real-estate crises in Europe and in Japan in 1929 then 1973 then 1987 and 1990,
- The crises financier international in 1994, 1997 and 1998
The crisis current 2008-2009 is at the same time real-estate, financial and banking global crisis; it affects a wider scale which include as well countries develop, emergent and developing country.
Cause
Main cause It is the renunciation by the state of the supervision of the credits and the banking activity so that it works by no administrative frame (supervision).
This situation is the result of a movement driven by Ronald Reagan and Margaret Thatcher under the name of deregulation.
As a consequence; the financial sphere by swelling excessively decoupled of the real economy then quickly by deflating it echoed on the real economy. So this fall touched millions of people who lost their savings and even their employment.
Given that the hindrances to traffic of the financial capital were abolished all over the world, the deregulated finance destroyed societies because it is the law of most hardly that dominated.
Origin
The crisis has begun in the United States; a simple need of the millions of poor households tries to acquire an accommodation without having the means of it. The brokers propose then credits, which, at first sight, seem very tempting. The rates of loans are "reasonable" during the first years, but are then brought to increase. It is in fact the organism who loans which fixes the rate of repayment.
But this last point is not explained in detail to the households which subscribe to these credits en mass .These loans at variable rates, the famous “subprime ", are then resold in investment funds.
From the end of year 2006, the households which had subscribed to "subprime" are victims of the brutal increase of the rates of loans and cannot pay off any more their banks. Their houses are then seized to be resold. But the American real-estate market, quickly flooded by the quantity of the offer and in front of few demands, collapsed. First consequence: the capital which had massively invests in "subprime" meets itself trapped.
The second consequence: in July, 2007 it is the beginning of the chain reaction which is going to get banks all over the world. This crisis about "subprime" results in a poly-sector-based global crisis. It is affects all the sectors and all the regions of the globe. It concerned at first the global financial sphere before widening irresistibly in the real economy. What takes place; it is the translation in the reality of the collapses of a system built on the freedom, the anarchy of the financial transactions Introduced by the deregulation of the activity of credit.
The levying of the statutory constraints provoked, thus, very grave speculative drift. Some are extremely destructive by the volumes of losses caused by the collapse of the system .THIS crisis asks the question of relationship of markets with States and their capacity to face their national responsibilities, and that of the relationship of the market with the globalization.
It doesn't much matter in which country it begins. In the modern conditions, the crisis will pass inevitably from a country to the other one, from a continent to the other one. This time, it began in the United States. Countries will be touched one after the other, as dominoes. The contagion will extend from a country to the other one as the unverifiable one epidemic.
It will seem evident that every country too much exported (that is, too much produced) and too much imported (too much traded). It will be evident that all deceived the credit and switched on the flames of the inflation and the speculation, which must be put out at the moment, even in the full price. In other words, we do not speak about such or such country, of such or such forks out either of such or such individual speculator, but of the system itself.
Consequently, we face a world phenomenon which is heavy of revolutionary involvements. The globalization shows itself as a world crisis of the capitalism.
“The international trade conceals a real paradox. The increasing prosperity of the industrialized nations kept pace with a massive poverty and the increase of the disparities between rich countries and poor countries. The world trade can become a powerful engine of the decrease of the poverty and the economic growth, but this potential is not turned to good account. The problem is not engendered by a fundamental opposition at needs and at interests of the poor countries, but the rules which govern the exchanges is falsified in favor of the rich countries. “This quotation is pulled by a report that Oxfam presented in April, 2002 in Hong-Kong. This report of Oxfam also reveals that the global cost of tariff barriers for developing countries amounts to 100 billion USD a year, what is double exactly of the help which the rich countries boast regularly to give to the poor countries. Besides, the report of Oxfam indicates that a 5 % increase of Exports from developing countries would get for them incomes about 350 billion dollars, is seven times more than the whole help which they receive.
Thus:
How to improve the environment and the living conditions?
How to fight against the exclusion and to insure the respect for the human dignity?
How to protect middle classes and public utilities in an economy of walking?
How to join the economic, the social, the competitiveness and the ethics within the economy?
So, it is necessary to understand that there are two faces of the globalization, the one which is purely technical, economic, based on the profit. And the other which prepares a global citizenship, and elaborates a consciousness of membership in a homeland which is the Earth. The consciousness which is in gestation through these movements elaborates international one citizen who should drive us to civilize the earth in a “society world ".
2-The bases of a world society in which every human being could completely make a commitment and live comfortably,
What are thus bases of a world society in which every human being could completely make a commitment and live suitably?
Baha ullah declares:
< < Soon the present order of things will be past and a new will replace it > >
Baha ullah adds:
< < Oh you who remain on the earth the distinctive line which marks the pre-eminent character of this supreme revelation consist of what we have, first, erase from pages of the book of God all which was able to be cause of conflicts, wickedness and damages among the children of the Men and, on the other hand, impose ' the indispensable prerequisites has the harmony, has the understanding and has a perfect and long-lasting unity. Happy those who observe my prescriptions. Powerful is the light of the unity that she can illuminate all the earth > >
3 - Guiding plan of a new world order:
SPIRITUAL BAHAIE APPROACH:
Main plan of a new world order: The spiritual and material dimensions of the existence are interconnected and strengthened mutually and are reflected the
One in the other one. The spiritual and material worlds are interrelated consequently; our material impoverishment is also the reflection of our spiritual impoverishment collective. The economic system, is, also, the reflection extern and solidifies of our collective life (the egoism, the greediness, the competitiveness and the apathy are the cause of the social injustice.
Thus an important effort of improvement in the moral tissue of the society must be supplied. The moral decline cost very much. The spiritualization is a divine call. Baha' u' llah called up to a complete restructuring of the social order of the world, getting all the aspects of the life, the individual morality in the economy and in the government, of the community development the religious practice.
A new international order becomes an imperative necessity. Its emergence has to allow to study above all the current economic disparities to decide on the way the resources of the world should be organized and how the sources of raw materials would be coverage and used to allow a renewal and a redistribution of its products overseen. This world crisis testifies of a deep movement of the very humanity. And only the link which, inevitably, unites the spiritual affairs of the human race with its practical affairs, which is only capable of breathing the life to any voluntary organization. It is not the momentary imbalance that we have to face; it is the quite whole structure of the civilization that we have the necessity of changing. Institutions and social bodies to which an age of variety and competition gave birth do not meet the needs any more of an age of cooperation and of peace.
A real transformation of society is necessary , the economic progress depends on the balance between the needs of the various members of the community. This will come true only in an evolved and spiritual humanity.
Consequently three objectives are necessary to achieve, to insure the stability of nations, the social progress of the local communities in the unity and the justice:
Establishment of an international government,
Regeneration of the local community
Spiritual Education of the man.
1-Etablissement of an International government:
The crisis is, really, a whole set, political, economic and religious, but the humanity possesses no responsible body - and invested with authority - to coordinate all the factors which establish this crisis and to arrive at a world plan which takes into account all these factors. In this body of government of the world, which is very urgent to create and which will be invested towards the human race of a supreme authority, will be subjected all the national States as provinces exercising only a local jurisdiction This world government differs from the national government, not only, by the geographical sphere of its jurisdiction, but also by the area of its social responsibility. Only he is capable of making the disarmament, of creating a healthy currency of reconciling the classes, of establishing an educational system in compliance with the fundamental needs of the humanity, and of spreading the danger which results from the opposition of the communist and capitalist theories.
2-Régénération of the local community:
In this community, indeed, occur the essential relations of the men. In its atmosphere that elaborates the quality of the human life. There practices on the moldable soul and without prejudices of the child, the education which will determine motives and reactions of the adult. There begin this cycle of social influence which ends in the war or in the peace.
The local community is at present a sick cell in a body in a mess. In a healthy voluntary organization, the individual is not only entitled to the vote and to the protection of the laws, he is also entitled to the existence, and it by virtue of a fundamental right and point by the effect of a simple charity.
It is only having discovered the spiritual principles of the association of the people that it will be possible to establish a social order corresponding to the divine reality.
3-Education spiritual of the man:
The human nature contains essentially two dimensions. That of the being physical on one hand, consisted of instincts of survival and of a need to acquire what is necessary for the life. Of other one quote the one who, by her qualities, differentiate the human race of all other forms of life and that we can call the human mind which knows how to transcend and expresses itself by its concern for the well-being Collective and by the need to find a sense in the life which exceeds the physical existence. The role of the individual is to develop this noble dimension and to participate so collectively in “the progress of a civilization always in progress ".
The social Progress can come true only on the deep understanding of the spiritual reality of The humanity - reality - which is the essence of our nature Today, it is necessary to understand that the spiritual education has to contain not only the private life and in group but also the collective progress of the humanity in general . The education (which is not the instruction) is to learn to lead a noble and useful existence, to love God of all his heart, has to devote himself to humanity (what is the highest purpose of l existence), develop his capacities at most for the good of all...
And so the humanity will be transformed when truth education will be understood well, and will become widespread, then the humanity will be transformed, and the entire globe will be as a paradise.
These three objectives - world government, regenerated communities, and spiritual education - are connected moreover strictly. Nobody would know how to exist without two others, and all three are in the latent state in the current society.
When the individual undergoes a true spiritual education the local community will be transformed and the national community will be transformed, in his turn, as a consequence and finally it is the same for the community of the peoples. In this approach happiness= to be and become: it is the internal search for a capacity in the happiness; it is the opening of the heart; the development, the availability, the freedom of the human mind and the Creativity and not the fight to have more wealth.
- The current tragedy of the unemployment could become the opportunity of a precious leisure for the culture and the development of the individual.
- The moral persons have no right to get into debt beyond their capitalization, that it is stock-exchange or not.
- The physical persons cannot either undergo of excessive debt.
- The responsibility of every generation is whole.
If it is evident that the creation of more wealth is the foundation of all the improvement of the material well-being of the society, it is important nevertheless to distinguish between the creation of true wealth and a simple accumulation of this wealth.
The first one occurs when a company creates a new product or a service for the profit of the members of the society because it satisfies a need, because it creates some work or because it develops an economic activity.
The second is not inevitably the fruit of a true production but he can be only the result of a financial manipulation which distributes the wealth to those who are already rich.
The Baha’is writings not condemn the personal wealth. On the contrary, they underline the necessity of being rewarded according to its efforts and its merit: the human beings are brought “to earn the keep by a profession ". But the excesses of wealth and poverty are condemned as symptoms of social injustice.
Which are the principles and the basic laws which can adjust between them the disparities between the individuals and will regulate the excessive fortunes of the planet with the aim of one moderation and the elimination of the extremes of wealth and poverty; thus of the elimination of the social injustice?.
Bahá' u' lláh brought principles and laws which adjust between them the fatal disparities between individuals. The economic resources of the world will be organized, all the sources of raw materials will be exploited at full capacity, all the coordinated and developed markets, and the distribution of products fairly settled.
These laws works successfully only when people are going to be honest and the plans of mutual profits depend on The trust and on the mutual willingness, it will come true when the need of justice and social equality will universally be recognized.
A- First law
The work has to be a spiritual act which follows code of honor We call
the fact to consider the work as an act of service and faith, and to concentrate on the general good and to promote more services and public affairs.
The quality of the information which we use in our decisions affects directly walking collective material needs of the society which we meet.
For example let us consider walking of second-hand cars. This work is dominated by a salesman caricature ' of "dishonest". The salesman is only interested to sell his product with the highest possible price. Whose purpose to arrive has its objective it is refreshed ' to lie, so he supplies has the buyer an inadequate information has comment of the quality of the car, for example, he does not introduce the history of the maintenance or the mechanical state of the car. The salesman uses the information to attract the buyer to steal him money ; that normally, the buyer should not announce if he had all the information about car.
One walking of efficient transaction would be to exchange mutually profits and to practice the transparency in all the information of both parts.
Thus the importance of the honesty has potentially important involvements for the structure of the material well-being of the society.
The corruption of public utilities and commercial sectors are serious barriers to support a social economic development in the world.
B-second law
Law of consultation is the process of collective decision-making based on the search of a consensus. This system is very important in the community life.
C-Third Law
Salaries and payment
It exists between the people a fundamental disparity;
All can have neither the same faculties nor the same skills.
It is the duty of the organization of the society to look has every individual the opportunity to acquire the necessary talents in the various occupations and also to use his talents for his personal comfort and of that of the community. The absolute equality is impossible because it would destroy the order of the affairs of communities.
Salaries should, then, be uneven and the People have to receive a corresponding salary has their capacity and varied resources. The accent is put on the principle of reward and remuneration and the link between clear payment and clear contribution.
D-fourth law
Shares profits
The employees and workers will receive not only a salary but they will have another just part in the profits quite as one associate
The purpose of this law is to give to the manufacturers a moderate income and to the workers of the necessary livelihood, the safety and the future. Grace in this law the company would look to the capitalists of the moderate profits. There is cut of the relation productivity-salary So the well-being is maximizes ' when salaries will be put has equality with the marginal productivity of the supplied work. So the winner in salary should be pay ' in equivalent quantity of the additional contributions. The salary is thus winning.
‘The court and the international government would check the distribution of profits in the company between salaries ' and the investors.
E-fifth law
Shares volunteer of the wealth it is a shape of voluntary contribution being a part of incomes of the local authority. The anxiety for his fellow men is essential.
The bahaie approach does not thus condemn the process of creation of wealth, because it is a means to eliminate the poverty, to insure the well-being of the most deprived of the society and to encourage the arts and the sciences.
The nature of the man develops through its generosity in the prosperity that is by the use of the wealth, by its voluntary sharing and by the way of spending it our noble nature can make a success of its human development.
Baha ullah recommends what follows:
< O Friends! Do not abandon the eternal beauty for a perishable beauty and do not place your affections in this mortal world of dust >
And the bab adds:
< All that you have sacrifices in the road of the only true God you will find it protect, intact has God's holy door >
Because the rich Man will not enjoy by his luxury in comparison with the poverty around him; it is strength by its own happiness to spend its wealth to get the better conditions in the community where he lives.
The economic involvements of the voluntary donation are deep because are the source of incomes for the promotion of public affairs.
F -the sixth law
Taxes volunteer on the capital wins ' *this law is indicated to assure that each exists in the comfortable limits .Although that the absolute equality is impossible; the extreme poverty and of wealth must be eliminated.
* Anybody is entitled in require of base of the life but nobody has the right to have more wealth than he can use.
*the tax goes at the bottom international it is 19 % for any increase in the wealth which could be accumulated over a given period: the amount is tax on the total of incomes less the necessary expenses has the life, let us note that this levy is left is conscious of every individual.
G-seventh Law
System of finances bases on the agricultural industry and the financial support.
The agriculture is essentially the most important industry. Is for that reason that those who live on the earth (land) and exploit it will be the object of a particular care.
How has to work this system of finance bases on the agriculture?
Abd' ul baha gives an example as follows: The principle is the same in city and village but operating on a direct financial base:
1- Because the climatic conditions vary from one year to the next, a percentage of harvest has to be a guard in a warehouse for every village and will be under the control of the local authority.
2- The local authority will receive an income tax increase
3- The local authority will also receive a proportion of income of the mining operations of the region.
4- A financial support will be established is will be administers by the local authority in the following way:
- A family incomes of which exceed needs, these incomes will be taxes;
- A family is supported by the local authority if it does not win enough to satisfy its needs;
- Every local community contributes to the national capital if she could make it but she could be supported by the national capital if it is necessary.
- The same principle of contribution and support applies on an international scale.
The way of functioning of this system will depend on the community and according to considered period.
H- Eighth law
Respect for the human health. The medicine will have to be more human and less medicinal and the consumption should be healthier and more natural.
To realize it, the honesty is essential to realize the health for all.
I- Ninth Law
The respect for the future generations
For it, it is necessary:
- create legislation and a world police for the environmental protection;
-To set up the adapted educational structures involved in companies;
- establish the universal working right;
- développe social institutions.
J-tenth Law
Disarmament, in the name of the safety, it is necessary:
- keep a minimal national armament for the maintenance of law and order;
- create a world police preventing the conflicts between nation’s doors in front of an international court.
K-Eleventh Law
Abolition of tariff barriers ,for it, it is necessary to:
- create a weighty system and measure;
-Set up a world currency (change);
- To fix an interest rate has a just level;
- adopt a language international as an auxiliary language
of communication.
The adoption of these measures will delete many difficulties which the less developed nations face today.
L-twelfth Law
System of inheritance adapts .The distribution of sharing of inheritance will prevent the accumulation of the wealth and will avoid making benefit a handle of persons.
Will end us our talk by a quotation of Abd' ul baha:
< The real happiness depends on the spiritual good and requires a heart always opened to the divine generosity. If the heart turns away from blessings which offer God, for which happiness he can hope?
If he does not place his hope and his trust in the divine mercy, where will he find the rest? Place your hopes in quite powerful God because he is infallible and his beauty will last never has>
This talk was given during three corners (places) of fire side at Judith Hatcher, John Macleod and Shan by amina Zahrani Doctor in sciences and education on May 2nd, 10th and 15th 2009.
