Global Crisis

Contacts : Dominique Plihon dplihon@orange.fr Peter Wahl

Workshops : two sessiions asked.

% France just wrote a book "Global crisis - Towards a world of solidarity and ecology".

% Germany is writing one too. We will have to think on : how Attac proposals on global crisis can be heard ?
 
This workshop will be discussed on a plenary meetinf friday afternoon

Outcome

Three parts in the workshop :

- analysis of the crisis (diagnosis)

- discussion about the propositions for disarming financial markets

- discussion about future Attac campains

 

I/ Analysis of the crisis

A/ What is the nature of this crisis ?

All participants of the workshop agree that this a global and systemic crisis of finance-led capitalism.

However, the importance of the crisis is not the same in all European countries. In Norway, for instance, the increase in unemployment has been small so far (from 2% to 3%).

According to Attac Spain, Italy, France, Norway, Island, this crisis is different from previous crises. It is a structural crisis, which goes beyond a traditional crisis, because its roots are multidimensional : financial, social, ecological, ideological, ecological.

This crisis shows the current economic system is not sustainable

B/ Should we change our analytical framework ?

Two views have been expressed :

a/ Ricardo Zallivar (Attac Spain) : a new approach is necessary

Traditional Marxist analysis needs to be adapted on different aspects, in particular :

- value creation : the financial sector is creating and appropriating value, the importance of labor as a source of value is declining

- social classes : workers’ class is not as important as in previous industrial capitalism;

other groups (rich workers) are playing a major role

b/ Other Attac : existing analytical framework is still basically valid

- Traditional Marxist view regarding labour value still holds (bubbles)

- Social classes are still a factor of social transformation

Attac Germany (Markus) : this is the type of recurrent crisis described by Kindleberger, Schumpeter or Minsky

There was an agreement among participants that the capitalist exploitation takes new forms : overexploitation of labor and natural resources at a global level

 

II/ Discussion of propositions

Two texts were discussed :

- European Attac “The time has come : let’s close down the casino economy !

- Attac France : 10 demands for disarming financial markets

The discussion focussed on the French text on 10 demands.

This text was criticized because too many demands, not at the same level => need to simplify

4 major principles / headings to order the 10 demands

1/ Democratic control of finance and banks

Banking system should be recognized as a public service guaranteed to all citizens => social control of commercial banks and central banks => priority for financing activities towards environmental and social progress;

Put a reformed and democratised UN at the heart of the reform of the financial system (G 192)

2/ Stop speculation

Dismantle tax heavens, forbid hedge funds and OTC markets,

Organize a penalization of the users of these speculative instruments.

Eradicate speculation on commodities.

3/ Reduce inequalities (income, wealth, debt)

A new international system of wealth and income share sharing based on global taxation and progressive tax system at the national level; limit income gaps (maximum and minimum income); generalize minimum wages

Cancel unsustainable and illegitimate debt of developing countries, and low income households

4/ Promote public goods

Eradicate the power of finance by maintaining and reinforcing public services, by placing pensions outside the rich of financial markets

Global taxation is required to finance global public goods (health, education, climate, water)

 

III/ Campaigns to stop finance

Two proposals have been discussed

1/ Campaign on banks : change your bank, or quit your bank

Mobilize bank customers to ask banks to stop using tax heavens, securitization, OTC markets and to finance hedge funds.

Create an observatory of banks

Create a system of bank rating with respect to their speculative activities, and conversely, with respect to their involvement in the financing of social & ecological investments.

2/ Campaign on global taxation

European Attac should go on proposing global taxation in two major fields :

- taxation of financial transactions : Tobin tax (use the initiatives by Stiglitz, Turner, …)

- carbon tax as an alternative to carbon finance (which will be proposed at the Copenhagen summit).

 

Author : Dominique Plihon dplihon@orange.fr