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Viewing Message #1

Time : Mon 12-Mar-2007
From :
Subject : Simpol-NZ Newsletter No 1.
Message :

11/03/07

Dear Friends,

Simpol-NZ was launched at the end of last year. Since then, I have to admit that very little has been done. The summer holidays, the demands of Sapiens and Sapiens Promise and one or two other unusual pressures of work upon my time, are my excuse – and not as convincing a one as I would like.

I have, however, spent several days producing a power-point presentation, designed more to be given to politicians and to political activists in NGOs, than to the general public. For those of you familiar with PPT software, the presentation can now be downloaded from the Simpol-NZ Website http://www.simpol-nz.org/modules/mydownloads/viewcat.php?cid=6

If you wish to gain an understanding of the arguments for adopting Simpol, and a counter to the arguments for not adopting it, this would be a good place to begin. At that site, you will also find sundry other sample Simpol introductory talks, draft letters to MPs, etc. that can be downloaded. Our other PR assets are a brochure and a business card the size of a post card, which contains on the flip-side, an “elevator speech” summary of what Simpol is about. If any of you require any of these items, please let me know.

We have twenty Adopters up and down the country and that is with having made virtually no effort to recruit.

Now I am confident with my power-point presentation, I will be starting to get out and about. Today, much to my shame and disappointment, I missed my first opportunity. It was an appointment, which our Unitarian-Universalist members in Blenheim had kindly arranged for me. This was to give a presentation to the local branch of U3A. (For those of you who, as I was, are unfamiliar with U3A – do a Google on it – it seems a wonderful organisation.) I hope that I will be given a second chance.

Later this week I have a meeting scheduled with activists from the Wellington offices of a variety of NGOs – which I will not forget!.

Our strategy is to first of all attempt to recruit those most likely to be persuaded of the necessity of the Simpol programme. Clearly the Unitarians are an obvious such choice as they believe in the unity of mankind. The Baha’i and the Quakers are other religious groups likely to be immediately interested in our proposal. Other obvious potential Adopters of Simpol are to be found amongst those NGO’s, which are struggling to cure the adverse symptoms of the disease of global anarchy. They are already politically active and Simpol offers a practical way in which to tackle the disease, which is at the root of the symptoms.

At the moment our strategy is to recruit the first 100-200 Adopters and then to start introducing the concept to our political parties and their members. After that, we will try and recruit more generally among the population and start setting up local branches and formalising our procedures.

Our goal is to make NZ the first country in the world in which more than 50% of MPs are pledged to implement SP once other countries are ready to do the same. I hope to achieve this by at the end of the election scheduled for 2011. Ambitious certainly – but I believe it is perfectly achievable. I doubt that we will need the active support of more than 1% of the electorate to achieve this goal.

At the moment, I am the Adopter who is bearing the brunt of the administrative and marketing work. Things will not move particularly quickly until I have managed to recruit others who also have time available to offer the Movement. I will therefore not be writing lengthy newsletters. However, I will refer you to the Simpol International newsletter – which is quite a flash publication. It is circulated in hard copy in Europe but it can be downloaded in electronic format from http://www.simpol.org.uk/campaign_newsletters.php

To improve my public speaking skills, I recently joined Toastmasters. Below, I attach a speech I gave there, on a subject that might well become an appropriate subject for a Simultaneous Policy. We have first to arrive at the stage where SP Adopters can begin to formulate policies with confidence that the Simpol movement has advanced sufficiently to ensure they have a working chance of being put into effect. I am sure most of you can think of many other areas in which the world is in desperate need of cooperative policies, but which cannot be considered in isolation by individual nation states.

Bretton Woods.


I have spoken in the past about world governance and the way in which the world is organised - not in an orderly fashion, but as an anarchic jungle in which those nations with the most military and economic power, dictate the fortunes of the weaker nations. This relationship is basically predatory rather than cooperative. We are all in the same boat, alone on this isolated planet floating through space and, instead of praying with our fellow crewmembers we are preying off them, raiding their pockets, stealing their food and reducing their opportunity to participate in, or to make a full contribution to the common wealth our planet could provide.

The current global economic system is dependent for its functioning on the twin institutions of the IMF and the World Bank. The basic structure is the outcome of a meeting held in 1944 in Bretton Woods, a small New Hampshire resort town. The present miserable condition of billions of our fellow humans is the consequence of decisions taken at that meeting.

I have here a handout, which will give you an idea of the extent of the injustice. Annual per capita income of the wealthiest 22 nations is in excess of US$30-60,000. New Zealand at number 25 averages US$25,000. None of the bottom 58 of the 187 nations listed in these World Bank statistics have an average per capita income of over $1,000 US. (And within those nations there would be huge discrepancies of wealth.) How can this injustice be remedied?

Herewith a small lesson in economics. When a trade takes place between two nations, the outcome is determined by two factors, how the goods are valued and the rules under which the trade is conducted.

If a country that grows coffee beans, wants to buy a car from a country that makes cars, it first has to borrow some of the car-maker’s currency to pay for the car. It thus gets into debt. To get out of its debt, it then has to export enough of its coffee-beans in return for sufficient of the car-maker’s currency, to pay off its obligation. If it fails to earn sufficient money to cover its debt, it finds itself sinking into a situation where it has to pay increasing amounts of interest on the loan. It therefore has less money available for investment in the education and business expansion on which its future ability to export will depend.

As so many of the world’s post-Bretton Woods nations have done, the unfortunate coffee bean producer, enters into a downward spiral of hopeless indebtedness and impoverishment.

Once a nation is poor enough, under IMF and World Bank rules, the powerful corporates of the industrialised world can come in and extract whatever they want from the helpless debtor and pay for whatever they extract, whatever price they choose to pay. Once in debt you are in a buyer’s market.

It needn’t have been like this.

John Maynard Keynes, the world’s greatest living economist, was head of the British negotiating team at Bretton Woods. Britain, as a result of the war and lend-lease was hugely indebted to the USA. Keynes was tasked with ensuring that in the aftermath of war, Britain, and indeed by default, every other debtor nation, would be able to escape from this burden of indebtedness.

What Keynes proposed was a scheme to break the deadlock of a system, which ensured the poor become increasingly poor and the wealthy became increasingly wealthy. What was needed was for the creditors as well as the debtors to be forced to change the terms of trade between nations.

Keynes suggested that a global bank called the International Clearing Union, the ICU, be established. This bank would issue it own global currency, the bancor. The bancor would have a fixed rate of exchange against each of the national currencies. All international trade would be conducted in bancors. Every country would have an overdraft facility at the ICU equivalent to half the average value of its international trade over five years. National central banks could borrow the first half of that overdraft allowance, interest free.

By definition, all the credits and debits of global trade would balance out at zero. As all trade was conducted in bancor, the issuing authority, the ICU, would know which countries were in credit and which were in debt.

All countries would be given an incentive at the end of each financial year to bring their bancor account down to zero. Not only would those nations, who retained debts in excess of half of their overdraft allowance, be charged interest at 5%, but so too would those nations that retained credits in their account. But this time the creditor nations would be charged interest at 10%. If creditor nations exceeded their overdraft surplus, the surplus would be confiscated and recycled to help the debtor nations pay off their debt. Creditor nations would therefore have a powerful incentive to ensure they bought from, as much as they sold to, the weaker nations.

Keynes had come up with a plan that would have transformed the whole global economic system and put an end to the vicious circle of increasing wealth and increasing poverty.

Unfortunately, with the end of WWII in sight, the USA could see that it was about to emerge from the conflict as the world’s biggest creditor nation. Its negotiating team were determined to preserve that position of power ad infinitum. Given Britain’s dependence on its trans-Atlantic ally’s assistance in the war against Germany, Keynes’ idea had little chance of prevailing. Instead the conference adopted the USA proposal, which has lead to the current system.

If every cloud has a silver lining, it is to be hoped that the silver lining in the next economic or political disaster that is bound to affect the global community sooner or later, will include an international conference to put into effect John Maynard Keynes’ original proposal

Country 2004 2005 RANK 2005
Luxembourg 56380 65630 1
Norway 51810 59590 2
Switzerland 49600 54930 3
Denmark 40750 47390 4
Iceland 37920 46320 5
United States 41440 43740 6
Sweden 35840 41060 7
Ireland 34310 40150 8
Japan 37050 38980 9
United Kingdom 33630 37600 10
Finland 32880 37460 11
Austria 32280 36980 12
High income: OECD 33547 36715 13
Netherlands 32130 36620 14
Belgium 31280 35700 15
High income 32132 35131 16
France 30370 34810 17
Germany 30690 34580 18
Canada 28310 32600 19
Australia 27070 32220 20
European Monetary Union 27921 31914 21
Italy 26280 30010 22
Hong Kong, China 27130 27670 23
Singapore 24740 27490 24
New Zealand 19550 25960 25
Spain 21530 25360 26
Greece 16730 19670 27
Israel 17360 18620 28
High income: nonOECD 16341 17656 29
Slovenia 14820 17350 30
Portugal 14220 16170 31
Korea, Rep. 14040 15830 32
Malta 12100 13590 33
Saudi Arabia 10170 11770 34
Antigua and Barbuda 10130 10920 35
Czech Republic 9170 10710 36
Trinidad and Tobago 9070 10440 37
Hungary 8370 10030 38
Estonia 7080 9100 39
Seychelles 8170 8290 40
St. Kitts and Nevis 7750 8210 41
Croatia 6820 8060 42
Slovak Republic 6480 7950 43
Palau 7120 7630 44
Mexico 6930 7310 45
Poland 6140 7110 46
Lithuania 5840 7050 47
World 6338 6987 48
Latvia 5460 6760 49
Lebanon 6040 6180 50
Chile 4930 5870 51
Upper middle income 4731 5625 52
Libya 4560 5530 53
Mauritius 4640 5260 54
Botswana 4380 5180 55
Gabon 4080 5010 56
Malaysia 4520 4960 57
South Africa 3670 4960 58
Venezuela, RB 4030 4810 59
St. Lucia 4410 4800 60
Turkey 3750 4710 61
Panama 4310 4630 62
Costa Rica 4470 4590 63
Argentina 3580 4470 64
Russian Federation 3410 4460 65
Uruguay 3890 4360 66
Europe & Central Asia 3307 4113 67
Latin America & Caribbean 3584 4008 68
Grenada 3770 3920 69
Romania 2950 3830 70
Dominica 3670 3790 71
St. Vincent and the Grenadines 3400 3590 72
Belize 3460 3500 73
Brazil 3000 3460 74
Bulgaria 2760 3450 75
Jamaica 3300 3400 76
Fiji 2870 3280 77
Serbia and Montenegro 2700 3280 78
Namibia 2380 2990 79
Marshall Islands 2810 2930 80
Kazakhstan 2300 2930 81
Tunisia 2650 2890 82
Macedonia, FYR 2440 2830 83
Iran, Islamic Rep. 2330 2770 84
Belarus 2150 2760 85
Thailand 2490 2750 86
Algeria 2270 2730 87
Middle income 2265 2640 88
Ecuador 2360 2630 89
Peru 2360 2610 90
Albania 2090 2580 91
Suriname 2270 2540 92
Jordan 2260 2500 93
El Salvador 2330 2450 94
Bosnia and Herzegovina 2050 2440 95
Guatemala 2190 2400 96
Maldives 2400 2390 97
Dominican Republic 2110 2370 98
Micronesia, Fed. Sts. 2300 2300 99
Colombia 2010 2290 100
Swaziland 1700 2280 101
Middle East & North Africa 1995 2241 102
Tonga 1830 2190 103
Samoa 1790 2090 104
Lower middle income 1666 1918 105
Cape Verde 1740 1870 106
Low & middle income 1507 1746 107
China 1500 1740 108
Morocco 1570 1730 109
East Asia & Pacific 1417 1627 110
Vanuatu 1390 1600 111
Ukraine 1270 1520 112
Armenia 1140 1470 113
Kiribati 1210 1390 114
Syrian Arab Republic 1270 1380 115
Georgia 1060 1350 116
Angola 930 1350 117
Philippines 1200 1300 118
Paraguay 1140 1280 119
Indonesia 1130 1280 120
Egypt, Arab Rep. 1250 1250 121
Azerbaijan 930 1240 122
Honduras 1040 1190 123
Sri Lanka 1010 1160 124
Djibouti 960 1020 125
Guyana 1020 1010 126
Bolivia 960 1010 127
Cameroon 890 1010 128
Lesotho 740 960 129
Congo, Rep. 750 950 130
Nicaragua 830 910 131
Moldova 720 880 132
Bhutan 770 870 133
Cote d'Ivoire 760 840 134
Timor-Leste 540 750 135
Sub-Saharan Africa 607 745 136
India 630 720 137
Senegal 600 710 138
Mongolia 600 690 139
Pakistan 600 690 140
South Asia 598 684 141
Papua New Guinea 550 660 142
Comoros 560 640 143
Sudan 520 640 144
Vietnam 540 620 145
Yemen, Rep. 570 600 146
Solomon Islands 570 590 147
Low income 507 580 148
Mauritania 530 560 149
Nigeria 430 560 150
Kenya 480 530 151
Benin 450 510 152
Uzbekistan 450 510 153
Zambia 400 490 154
Bangladesh 440 470 155
Haiti 410 450 156
Ghana 380 450 157
Kyrgyz Republic 400 440 158
Lao PDR 400 440 159
Burkina Faso 350 400 160
Chad 330 400 161
Sao Tome and Principe 390 390 162
Cambodia 350 380 163
Mali 330 380 164
Heavily indebted poor countries (HIPC) 336 379 165
Least developed countries: UN classification 336 378 166
Guinea 410 370 167
Central African Republic 310 350 168
Togo 310 350 169
Zimbabwe 620 340 170
Tanzania 320 340 171
Tajikistan 280 330 172
Mozambique 270 310 173
Madagascar 290 290 174
Gambia, The 270 290 175
Uganda 250 280 176
Nepal 250 270 177
Niger 210 240 178
Rwanda 210 230 179
Sierra Leone 210 220 180
Eritrea 190 220 181
Guinea-Bissau 160 180 182
Malawi 160 160 183
Ethiopia 130 160 184
Liberia 120 130 185
Congo, Dem. Rep. 110 120 186
Burundi 90 100 187
Afghanistan .. ..
Bahamas, The .. ..
Barbados .. ..
Bermuda .. ..
Equatorial Guinea .. ..
French Polynesia .. ..
Isle of Man .. ..
Macao, China .. ..
Netherlands Antilles .. ..
New Caledonia .. ..
Puerto Rico .. ..
Somalia .. ..
Turkmenistan .. ..
Virgin Islands (U.S.) .. ..
West Bank and Gaza .. ..
Kuwait 24040 ..
United Arab Emirates 23770 ..
Cyprus 16510 ..
Bahrain 14370 ..
Oman 9070 ..
Source: World Bank

The Simultaneous Policy - Bridging the Gap Between Global Problems and Global Solutions