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Way back in 2006, I call for an end to ecologically hostile finance system with reasons and movements across the world for the same. Describing concrete examples, hurdles , there is called for respecting the inter-faith common commands against usury.
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Interest free financing for MDGs and global ecological security
Transforming World Bank, IMF and WTO for social equity,
ecological safety and distributive justice for renewable
resource based livelihoods
Dr. Muhammad Mukhtar Alam
Monday, March 06,
2006
The context
Anti-globalization protest defines our times as much as there are
endeavors for globalization of the movement of capital and
technologies, labour and services, consumption and production
patterns. Globalization of the non-renewable resource based
consumption and production pattern has been indicted to be
responsible for increase in the emission of green house gases.
Millennium Development Goals has been signed along with several
other documents that call for action for ensuring justice for all and
ensuring an era of peace with justice. In India, Wada Na Todo
Abhiyan (Keep the promises campaign) and a group of
organisations organized a South Asia Peoples Summit Against
Poverty in September 2005 where declarations reflected the
demands of the people, marginalized all over the country. Special
sessions were conducted on globalization that called for scrutiny of
the foreign capital in the country while describing World Bank,
WTO and IMF as part of the “unholy trinity” that is presiding over
the misery of people and destruction of planet. Declarations of the
A note for GCAP and MDG campaign 1
Interest free financing for MDGs and global ecological security
People Summit Against Poverty have been shared with UN. Civil
Society organizations have organized several events under Global
Call to Action Against Poverty (GCAP). There is a global UN
campaign for realizing millennium development goals with calls for
debt cancellation and debt forgiveness for realizing millennium
development goals. Events have been planned all over the world
calling for debt cancellation. Oxfam has led a campaign for debt
relief and trade justice. Some announcement for debt reliefs were
made but then the same was proposed for deduction from the
grants that were to be provided under the official development
assistance. It can be seen that debt relief is not a sustainable
solution as there is no guarantee that unsustainable debts will not
be created in the future. Therefore, there is a need to get beyond
the call for debt cancellation and work for addressing the root
cause of indebtedness within and among the nations and
institutions. This paper will focus on the following:
Addressing the root cause of indebtedness
Establishing linkage of the usurious finance system with the
ecologically hostile development paradigm promoted as part
of globalization of the prescriptions of the economists of
Washington consensus and protected through the formulation
of security doctrines that does not care for the ecological
implications of the globalization of unsustainable
consumption and production patterns.
Protecting the ecologically sustainable livelihoods as part of
poverty reduction
Establishing local and global solidarities of action for
transforming the finance sector
A note for GCAP and MDG campaign 2
Interest free financing for MDGs and global ecological security
There are evidences supporting the case of the transforming the
processes and redesigning the mechanisms that ensure freedom
from indebtedness. It is important to seek redress of the root cause
of the indebtedness. Forgiving the debts and transforming the debt
to aid could be one time solution but ensuring protection of the
local resources and revenue receipts from taxation in the highly
indebtedness nations is critical for preventing the outflow of hard
earned foreign exchanges. This can be done only through freeing
the debt from interest as interest based debts will continue to be a
reason for the outflow of the hard earned foreign exchanges and
chronic indebtedness of the nations. Thus freedom from interest
based debt and money is a critical step for addressing the root
cause of indebtedness of the poor and developing countries that
also form the group of highly indebted countries. It has been also
established that continuation of interest bearing debt based
financing is ecologically hostile. Creation of the infrastructure
without having a guaranteed supply of the energy is also
ecologically hostile. This makes it imperative that international
and national finance sector is transformed. Considering the above,
the paper will attempt to address the following questions:
Why there is a need to transform the finance sector and
transform World Bank, IMF and WTO
What is being done at the global level towards transformation
What is being done at the national level
What can be done
How to strengthen the movements and get results
Reasons for transforming the finance sector
A note for GCAP and MDG campaign 3
Interest free financing for MDGs and global ecological security
Evidences are mounting indicating the need to transform the
finance sector radically though there is not much discussion in the
civil society about the ways transformation can be effected. Even
the left has no clue, as they are more content with demonizing the
capitalist order. Based on the learnings from interaction with the e-
forums and movements globally , I would like to cite the following
reasons for transforming the World Bank, IMF and WTO.
1. Increasing demands on the state to ensure equity and
ecological sustainability- Following the demands of the
movements and scientific assessments ensuring ecological
sustainability and global equity of the consumption and
production processes has been accepted as a key consideration
and sustainable development paradigm has been accepted to be
part of the development policies of the nations that have signed
the millennium development goals. Realization of the millennium
development goals for sustainable consumption and production
cannot be achieved without decelerating the consumption of
fossil fuel based services and utilities. This is needed for
meeting the challenges of the climate change and addressing
the Kyoto Protocol emission targets. While technology transfer,
clean development mechanisms can have impact, it is important
to get the required reduction in the global emission of the green
house gases through transforming the consumption, production,
budgetary allocation and foreign direct investment (FDI)
patterns. Eliminating generation of debt-based money is an
important way to minimize the flow of money in the economies
of North and South. It is important to stabilize the currency
values and ensure protection to the ecologically sustainable
sources of livelihoods across the world. An unprecedented
A note for GCAP and MDG campaign 4
Interest free financing for MDGs and global ecological security
heating of economies is being offered as the vision for growing
economies such as India and China without realizing the limits
to the sustainability condition of the exhaustible resources.
There is guarantee for ensuring sustainability of the GDP growth
rates as there is no guarantee for the supplies of energy for
fuelling the transportation systems based on fossil fuel based
energy.
2. Increased debt service obligation due to the charging of
the compound interests- debt service obligations of the
nations in South and North need to be eliminated for
ecologically sustainable growth and for liberating resources for
ensuring access to basic services. Some years ago India had to
pay more than 40% of the tax receipt for servicing the debt. The
money could have been used for developing infrastructure for
providing basic services. This is applicable to many nations of
the South that are advised to reform their economies for
attracting more and more FDIs while being compelled to the
repay the debts through getting more loans under various
stabilizing mechanisms. Charging of compound interest for both
short tem and long term loans needs to be avoided as this is
responsible for the outflow of the foreign currency and tax
receipts /local resources that are vital for the ecologically
sustainable development needs.
3. Creation of fiat money/ usurious money is accelerating
globalization of non-renewable resource based
consumption and production patterns. Profit motive being
the key drives all the operations of the World Bank, IMF and
other regional banks such as Asian Development Bank. Making
A note for GCAP and MDG campaign 5
Interest free financing for MDGs and global ecological security
profit from want is presented as a legitimate reason for charging
of interest even for the creation of productive and ecologically
sustainable capacities in the developing countries. It would be
important to liberate banking and finance from usury and
charging of the interests. This will have salutary effect on the
movement of capital, as lots of capital will be lost due to the
deletion of usurious money from the books of the accounts.
Banks will have no incentive for charging interest on the loans.
4. Globalization of the discontent due to the impacts of
climate change- more and more people are suffering from the
impact of climate change that has been induced by the emission
of inequitable consumption of the fossil fuel based services and
utilities across the cities that are experiencing various sorts of
globalization. Differential responsibility for addressing the
climate is a hurdle that needs to be addressed. Exclusion of
China and India has been resented as the countries with higher
emission levels are called for meeting the targets while the
developing economies are provided time. Deletion of the
usurious money from the system will have a significant impact
on the development financing and analytic and advisory outputs
will be geared for ensuring social equity and ecological
sustainability while catalyzing civil society and political action
for simultaneous adoption of consumption patterns that are
ecological friendly and social equitable with focus on the
ecologically sustainable livelihoods. John Bunzl www.simpol.org
has been advocating the principle of simultaneity for meeting
the global challenges and this is need for sharing of the interest
free loans at interpersonal, national and global levels.
A note for GCAP and MDG campaign 6
Interest free financing for MDGs and global ecological security
5. Interest based debt financing with freedom for
deregulated banking creating inequitable prosperity and
unsustainable accumulation of wealth. Usurious finance
system is responsible for over accumulation of wealth in some
countries that are benefiting some of the corporations. Instances
of distributive injustices galore and they fuel the call for
ensuring the divide for the consumption pattern within and
between the regions and populations groups. Debt relief has
been accepted for some countries that are highly indebted.
Uganda is an example where sustained growth has be projected
with the freedom from debt service obligations. Accumulation
becomes unsustainable as there are growing economic divide
within the countries that protect usurious institutions. Also
accumulation of nonrenewable resource based wealth is
transitory.
6. Dispossession of the poor due to non-payment of interest
based loans within and between the nations- many among
the poor and dalits have lost their small landholding for paying
the usurious loans collected from the moneylenders in the rural
areas. Situation in the urban area may be slightly different
where access to public health services is relatively better.
Shaheed a construction worker got a serious injury in the head
and he succumbed to death as medical attention was not
provided in time. Sajnu got his leg dismembered due to lack of
medicine in right time for small wound in the leg. Bhikhan, the
father of Sajnu in a village called Kishandaspur (Bihar) in
Bhagalpur district and had to sell his land for meeting the
medical costs for his son. There are many poor and dalits who
are suffering and losing their smallholdings for meeting the
A note for GCAP and MDG campaign 7
Interest free financing for MDGs and global ecological security
medical costs in the various states of India. Arif a young boy is
suffering from ulcer and his parents had to take a usurious loan
of Rs.18,000,- for meeting the medical costs. Arif is suffering
from peptic ulcer and his father has taken a usurious loan for
meeting the medical cost. Aseer , the father of Aseer and
Darudni his mother are working hard as sharecroppers for
meeting the cost of his son and they are using the hard earned
food grains to pay off the usurious loans .His parent may not be
able to pay all the amount and his hard earned livelihood as a
sharecropper will be needed to pay for the loan he incurred for
meeting the medical costs .There are millions of such cases
where poor and dalits are feeling the burnt of the privatization
of the medical assistance services and lack of access to
affordable medicine and public health delivery services. It is
likely that millennium development goals for health may not be
achieved if access to quality health care is not ensured and poor
are not freed from pawning their meager resources. Farmers
have committed suicides in the several states of India, as they
have not been able to pay the usurious loans. Formation of the
union of wives of such farmers named All India Widow and
Destitute Women’s Movement is a testimony of the peoples
suffering. They demonstrated in Delhi and met Sharad Pawar,
the Union minister for Agriculture, Government of India.
Indebtedness of the nations similarly dispossesses and deprives
the nations of the vital resources and tax receipts that could be
used for providing basic services.
7. Ecologically hostile development paradigm is getting
accelerated application eliminating renewable resource
based livelihoods- Usurious finance system is responsible for
A note for GCAP and MDG campaign 8
Interest free financing for MDGs and global ecological security
the generation of fictitious money that is being pumped in the
ecologically sustainable economies for projects that are
ecologically not sustainable. This is being done through arguing
for more foreign direct investment and then creating a better
regulatory environment for investments. This has been part of
most of the Poverty Reduction Strategy Papers that have been
done for obviating the critique for the structural adjustment
programmes that were launched in early 90s after collapse of
Soviet Union.
8. Instituting interest free transactions across the world for
ensuring environment sustainability and ecological safety
– For those who have been convinced of the need to remove
usury from the transaction of value at various levels, it is
important to transform the institutions that are involved in
shaping the investment patterns across the regions and
continents. There is a need to communicate on the eliminating
permission for private money lending through charging of usury.
There is need to communicate that all men and women believing
in God and the Day of Judgment must stop charging interest on
the money that has been lent. There is need to educate the
future generations through including this in the curricula at all
levels. There is a need to eliminate usury and interest from the
loans. This could be one of the major demands of GCAP as it is
easier to convince for interest free loans then debt cancellation
by all the nations that are highly indebted. Returning the
principal amount is easier and more dignified. Even so, forgiving
debt is itself a virtuous act.
A note for GCAP and MDG campaign 9
Interest free financing for MDGs and global ecological security
Actions at the global level
1. Global Justice Movement
www.globaljusticemovement.net argues that usury is
not necessary. They have based their conclusions on the
need to generate interest free loans for productive capacities.
Rodney Shakespeare and Robert Ashford base their
conclusions on the work on binary economics. Dr. Muhammad
Mukhtar Alam has argued for the need to adopt monotheistic
framework for resolving the disputes and creating a global
consensus for transforming banking and money where
charging interests is considered a non-negotiable foundation.
Norman Kurland through advocacy of the Third Way is calling
for the elimination if usurious finance.
2. American Monetary Institute www.monetary.org is
seeking reform in USA . Stephen Zarlenga concluding a
recent conference in Washington called for the need for
wider acceptance of the need to reform the monetary system.
Currently he is organizing second conference for this in the
city of Los Angels. Details can be seen at www.monetary.org
3. Local exchange trading system LETS promoting barter
followed by hundreds of groups across Europe
www.letslink.org . There is recognition of the need to
promote exchange of commodities and services in real terms
rather than through using paper currency. People are already
exchanging services and commodities in LETS network. More
than 250 networks have been formed across Europe
A note for GCAP and MDG campaign 10
Interest free financing for MDGs and global ecological security
recognizing the evils of the paper currency and eliminating
usury.
4. JAK bank (Sweden) calls itself first interest free bank.
They are running the bank based on the principle of
cooperation without charging interest. All those participating
in the bank are stakeholders and they are running the bank
through recognizing the peoples need for transaction of value
rather than for being part of the enterprise where peoples
need are exploited for generating usurious profit for some of
the stakeholders.
5. Islamic banking (banks following the commands
against the usury) is based on sharing of the losses and
sharing of the profits and Muslims globally are
interested in freedom from the usurious finance system.
Allah commands all to forgive debts if possible and stop
charging usury. There are several verses in Qur’an to this
effect. There are commands in the Bible and Sanskrit texts as
well. Muslims feel that Christians and Jews should follow the
commands of God in Bible and they should join their forces
for liberating banking from usury. Hindus, Buddhists, Sikhs ,
Jains following the commands need to oppose partaking of
the food obtained through usurious money. Thus all of us with
various religious identities need to say No to usury. Saying
No to usury thus is not only pleasing for God but also for
establishing fair deals for fellow human beings in need.
Globalisation of the usurious finance system is responsible for
the ecologically hostile and socially inequitable distribution,
consumption and production patterns. Thus abolition of the
ususry from the loans is part of the negations that are
ecological imperative. In Dubai, Islamic Mint
A note for GCAP and MDG campaign 11
Interest free financing for MDGs and global ecological security
www.islamicmint.com produces e-dinars and it is selling its e-
gold products following the Islamic standards. The e-dinars
are produced for fulfilling the religious obligation of paying
zakat better.
6. In London, a campaign called Campaign for Interest
free money has been launched
www.interestfreemoney.org for making money and
banking interest free. This indicates the fact that more and
more people are joining the crusade against exploitative
usurious finance system. There are more and more reasons to
attend to the call of the movements and call for the need to
transform the institutions and transform the individual
mindsets that are supportive of the usurious finance system.
7. Bernard Laitier conceived EURO and defined the exchange
mechanisms. He has called for the rethinking money in an
article that was published in the Ecologist. He has proposed
“terra” to be the global stable currency.
8. David Korten , the author of “When Corporations Rule
the World” changed his thesis for pointing out that it is the
finance system that is responsible for the over accumulation
of wealth, unstable security environment and accelerating
ecological degradation. In his powerful article once posted at
http://intraforum.com/money, he has called for interest free
money. David Korten has led the anti-globalization
movements.
9. www.seektoknow.net/money contains an article produced by
Samita Barua. She has built on the writings of Buckminister
A note for GCAP and MDG campaign 12
Interest free financing for MDGs and global ecological security
Fuller and argues for interest free banking and money. She
writes from a Buddhist perspective.
10. Brettonwoods project is keeping a watch on World
Bank, IMF and WTO and their projects and programmes.
There are several movements that are weary of the
machinations of the Bank and Fund though they are not
exactly proposing what the Fund and Bank should. This paper
contains the ideas for seeking a change in the operational
principles of banking and finance.
Transforming money/finance in India
1. Bharat Jan Andolan has launched national Movement
for the eradication of usury under the overall guidance of
BD Sharma. BD Sharma has extensively worked on the state
of farmers and agricultural credit details the history of
dilution of laws preventing usury in Bihar and other states.
He has spoken in the various forums and has called for
national mobilization for liberating the debtors from
compound interest.
2. South Asian People Summit Against Poverty called for
transformation of the “unholy” trinity of World Bank, IMF and
WTO – Peoples Summit Against Poverty was organized on 3-4
September and there was a special session on globalisation.
Prof. Babu Mathew had drafted the concept paper with the
input from the people’s movements. Recommendations
included scrutiny of the foreign capital, transformation of the
policies of World Bank, WTO and IMF.
A note for GCAP and MDG campaign 13
Interest free financing for MDGs and global ecological security
3. Arundhati Roy has been writing extensively on the need to
transform institutions through exposing the working of World
Bank. Her writings and participation in the movements of the
oppressed and displaced are part of the expressions of the
strong opposition to the globalisation of the ecologically
unsustainable development policies across the world.
What can be done
1. Build solidarities of action and communication for
transforming the finance sector – Considering the
criticality of the millennium development goals , it is
important to free the resources for investment is sustainable
social development projects that help men and women in
preserving ecologically sustainable livelihoods across the
nations and regions. Governments, networks, civil society
organisations, movements, citizen groups and clubs all need
to call for action against usurious transaction. A Global
March/Movement for Transforming Finance Sector is
proposed for discussing suitable actions all over the world.
2. Call for transforming functioning and principles of
banking and money- It is important to call for transforming
World Bank, IMF and WTO and make them ecological friendly
and socially responsive. Considering the call for elimination
of usury from the transactions across the religions, it can be
seen that responses are for the pleasure of God as well and
thus in the best interests of all.
A note for GCAP and MDG campaign 14
Interest free financing for MDGs and global ecological security
3. Seek consensus for the unified proposal for World
Bank, IMF and other key banker of bankers-Islamic
movements, liberals, democrats, Muslims, Greens, Left, faith
leaders and all need to unite for generating the mass
movement for a unified proposal for transforming institutions.
As per the established procedures, first and foremost is to
generate acceptance for the proposals that are ecologically
sound and that serve the best interests of future generations.
The consensus can be generated for liberating debts from
simple and compound interest. God fearing men and women
leading the governments and organization will have not
difficulty in accepting the proposal. Those who do not believe
in the merit of abolishing usury can be persuaded for
abolishing usury considering the ecological limits to
globalization of non-renewable resource based consumption,
production and urban planning patterns.
4. Include the demand for transforming money and
banking in all the communications related to poverty
reduction- Millennium Development Campaign has been
focusing on the goals 1-7 and call to the funding consortiums
have been made for increasing aid for the nations as part of
goal number 8. It is extremely unlikely that goal number 7 for
ensuring environment sustainability will be met unless there
is a global adoption of interest free banks and debts.
5. Combine the learning of secular and faith based
perspectives for making money and banking interest
free-The work of Rodney Shakespeare and Robert Ashford on
A note for GCAP and MDG campaign 15
Interest free financing for MDGs and global ecological security
binary economic analysis has proved the need to get rid of
usury. Global Justice Movement recognizes the importance of
Islam-submitting to the commands of Allah. Binary economic
analysis is a secular analysis and it has been concluded that
interest is not necessary. Muslims will be the happiest if they
have to deal with usury free
local/regional/national/international transaction
neighborhood. It is only men and women who have not faith
in the commands of Allah who will resist the communication
based on the need to seek best here and in hereafter through
eliminating usury from the transactions. Pious Jews,
Christians, Hindus, Sikhs, Zoroastrians, Buddhists and Jain
are equally cognizant of the commands against charging
interest for loans in the related Sanskrit texts. Following the
dictum of not loving things that one does not like for oneself,
ones own relatives and dears one , it is likely that all of us
following various religions will stand up against the usury and
call for abolition from our own transactions and from the
transaction of institutions.
Strengthening movements safeguarding futures
1. Environmental sustainability is linked with the
development model –globalization of fossil fuel based
consumption and production pattern is proving deadly for
ecological safety. There are many evidences for the same.
Increased intensity of the cyclones are linked with global
warming that is directly related with increased emission of
green house gases. Globalization of ecologically hostile
development paradigm supported through usurious finance
A note for GCAP and MDG campaign 16
Interest free financing for MDGs and global ecological security
system has to be halted, as it is responsible for creating
socially inequity in the consumption and production patterns
at the global scale. Delhi is an example of a city that is
experiencing the same. Metro project has consumed lot of
space that had trees while there is no guarantee for the
supplies of energy in the future. India has been forced to vote
for an immoral position on Iran for securing nuclear energy
with the assistance of the US and other countries controlling
the supplies of Uranium. One the one hand, tribal and forest
dwellers are being relocated for industrial development and
defense related projects, on the other hand they are being
relocated for the protecting the wild species. Such policy
moves are depriving millions from access to ecologically
sustainable livelihoods that had been available for millions of
years. Apparently globalization of non-renewable resource
based consumption and production is being sought without
recognizing the facts that fossil fuels and such other
treasures gifted by God is exhaustible. Dean Steele
supporting the globalization of hydrogen fuelled vehicles calls
for preservation of the hydrocarbons for essential need and
not for leisure and pleasure.
2. Movements and institutions need to understand the
linkage and call for transforming the finance sector and
transforming consumption pattern as a global
imperative- There is need to understand this linkage and
disseminate across the movements and CSOs. Making loans
wipes out the fictitious money. Transforming consumption
pattern through adopting alternative measures for leisure
helps in the deceleration of the consumption of the fossil fuel
A note for GCAP and MDG campaign 17
Interest free financing for MDGs and global ecological security
based energy intensive utilities. GCAP must not promote
energy intensive poverty concerts as that is an
ecologically hostile activity. Several organisations and
movements boycotted th same in New Delhi on 4
September. Such events are hurdles in realizing the MDGs
for environment sustainability and they are part of the
copycat atheistic neo-liberal globalisation of leisure use
patterns that include use of energy intensive modes of
peoples assemblies for communication and entertainment.
3. Global call to action against poverty should consider
this as part of consistent communication strategy- GCAP
and Millennium Development Campaign ought to consider the
need to free resources for social development across the
regions through abolishing interest based loans and
minimizing budgetary allocation for defense. The Global
Compact for realizing the millennium development goals
needs to consider the need to transform financing for
developing through calling for interest free money and debt
both for ecological justice and social justice. Large sums of
money for serving the debt must stop for ensuring
ecologically sustainable development across the world.
Money freed can be used for realizing the MDGs 1-7 while
ensuring global partnership and meeting the MDG 8 for a just
and ecologically sustainable world.
4. Creating synergy through making this a cross cutting
concern- There is a need to have a united recognition of the
need to transforming operational principles of banking for
A note for GCAP and MDG campaign 18
Interest free financing for MDGs and global ecological security
meeting and there is need to create global mobilization of
people for the same. We can see that interest free loans are
good for all. We will not have to reckon with the violent
armed struggles that are responsible for the loss of lives, We
will have ecologically sane development across the world .We
may have an utopia realized here in now that is responsive to
the concerns of collective human security, ecological safety,
social justice, global compact for MDGs. We would be ready
to meet the interspecies justice and secure an ecologically
sustainable, social just future for future generations and
ourselves.
Hurdles
UN system has been advised to identify hurdles in realizing the
MDG. It can be seen that usurious finance system is single most
important hurdle along with exhibitionist consumption patterns
that is propelled by the globalization of atheistic neo-liberal
political and cultural ideology.
1. Economists and corporations who are interested in
preserving the status quo- Economists associated with the
Washington Consensus process are known to be forwarding
the idea that has been captured by some as market
fundamentalism. Some Greens also think that privatization of
all the services will permit incorporation of the ecological
costs as corporations can not run without the support of the
consumers who respond to prices for their consumption
patterns. Even so, we can consider the amount of ecological
A note for GCAP and MDG campaign 19
Interest free financing for MDGs and global ecological security
rucksacks and footprints that will have to be mitigated if
there is no conscious global action for transforming the World
Bank and other bankers. Application of atheistic social
Darwinism for access to the nonrenewable resource based
consumption patterns and status markers will be extremely
dangerous in a world where politics of identity is being
played at the global level through subjugating the class and
religion based discourses for local and global governance.
2. Men and women who wish to continue the enterprise of
discontent without finding solutions through organizing
ecologically hostile conferences –This is being said
considering some patterns across the conferences that are
organized for meeting the global challenges and for solving
the global problems. The work on AIDS can be seen as an
example where a faith based communications is prohibited
recognizing the need to protect a privileged position for the
adulterers. Meetings of the financing for development have
been organized while recognizing the fact that some issues
are not practical. It is likely that the propositions contained in
this paper are described utopian. That is why, it is important
to expand the knowledge base and seek radical solutions.
Organisations such as Action Aid promoting radical solutions
are expected to take the proposal for transforming the
fundamental principle of banking and money for ensuring
global stability and ecological safety. It is expected that GCAP
will seize the historic opportunity for advocating and
changing the financing for development through making it
interest free. We may have a better scenario for poverty in
A note for GCAP and MDG campaign 20
Interest free financing for MDGs and global ecological security
the year 2015, if we could ensure that financing for MDGs is
debt free.
3. Political parties that are not aware of the long-term
needs – Green Parties across the world though with a
following of the minority are cognizant of the need to address
the ecological challenges. Left do not appear to be arguing
specifically for meeting the ecological challenges as they still
appear not to be distinguishing between the call for
distributive justice for nonrenewable and renewable resource
based livelihoods. Even so, outcome of their resistance for
halting the march of atheistic neo-liberal capitalism are eco
friendly. They need recognize the contribution of the faith
based political parties such as Christian democrats, PAS ,
Hamas and others across who recognize the importance of
seeking eternal well-being for all through promoting the use
of faith based measures. Use of violence by some groups can
be seen in the specific social, political and cultural context.
Maoists in Nepal seek establishing of constitutional
democracy (The Hindu, Feb 9-10 2006) with or without the
monarchy. They have been calling for an end to the monarchy
for promoting competitive democracy and seek the change
though violent actions if required. There is need for all the
political parties to understand the collective challenges .It
would be useful for colleagues in GCAP and MDG campaign if
the conferences were organized for educating the political
leaders across the world. It is possible to generate agreement
on the commons for transforming the finance sector as the
call is being made utilizing both secular and faith based
arguments. Government and corporate sector could also
A note for GCAP and MDG campaign 21
Interest free financing for MDGs and global ecological security
organize meetings and discussion for establishing the
argument for transforming the finance sector and
consumption patterns. Governments are responding to the
same and the pace can be accelerated with the formulation of
key propositions that are addressing for eliminating the
crosscutting hurdles.
4. Lack of education on the faith-based alternatives- there
is significant absence of education on faith-based alternatives
for addressing the issue of poverty, indebtedness, and
development and there are strong resistances globally for the
faith-based alternatives. Author has grown to believe that
adoption of the commands of God noted in the texts of various
religious traditions is needed for facilitating decisions against
usurious finance system. There are call for resisting and
opposing the globalisation of the economic system but then
there does not exist articulation and discussion on the faith
based alternatives as that is associated with Samuel
Huntington’s thesis on clash of civilizations. There are
assessments of the “postmodern” condition without any
prescription for an alternative form of economic, political,
cultural and global governance.
Solutions
1. Institutionalization of the discourse on transforming
the finance sector –This is being proposed considering the
need to educate for global action, as we may not get the
results quickly. The ICT enabled communication; capacity
A note for GCAP and MDG campaign 22
Interest free financing for MDGs and global ecological security
building and dissemination packages will be able to quickly
transmit the key arguments with local actions across the
world. Inclusion of the interest free banking as a theory and
practice is an urgent academic innovation that needs
inclusion in the teaching of economics across the world. As of
now, there does not exist arguments for interest free banking
derived from the faith based communications as they have
been ignored by the atheistic rationalists. Already there are
associations of ecological economists who have been arguing
for rethinking progress. Richard B Norgaard has called for
the same through exposing the myths around the definition of
progress. Pavel Kasyanov , the president of Ecological
Economists Association in Russia had been part of alternative
draft of WSSD in 2002 along with the author of this note and
Michael Ellis.
2. Mass mobilization for abolishing usury from
interpersonal and institution transactions –Mass
mobilization is need for creating a global consensus for
calling World Bank and other banks for eliminating usury and
interest from the transactions. God fearing men and women
will be most forthcoming is supporting the move as they
would not be able to say Yes to usury fearing the destiny on
the Day on Judgment. There are clear commands. More
awareness and communication on the issue will be required
for social groups where even faith-based communication
against usury is low. For atheistic rationalists, it would not be
possible to deny the ecological impact of the globalization of
non-renewable resource based consumption pattern. Greens
all over the world cannot deny. Atheistic communists cannot
A note for GCAP and MDG campaign 23
Interest free financing for MDGs and global ecological security
fail in recognizing usury to be the important of part of
capitalism. Buddhists and Jains would not be able to deny
considering the injunctions and exhortations for choosing the
right livelihood. Hindus would not refuse the precepts of
dhammapada. (Please refere the article on The History of
Interest at www.monetary.org that has cited commands in the
sacred texts across the religions). It can be seen that with
such an understanding , it would not be possible to refuse the
arguments. I think, this ought to be key proposition for
the action plan of GCAP till 7 July 2007. We could
demand all the financing for development to be
interest. Make developing financing interest free for
MDGs and poverty reduction globally and locally.
3. Review of the monotheistic perspective for united
endeavor at all levels-This is being suggested considering
the appropriateness of the monotheistic framework for
generating united power for transforming financing for
development and then for transforming consumption
patterns. Induction of the standards of piety all in the civil
society movements with adoption of prayer and meditation 5
times is a powerful tool for transforming behavior, decision
and consumption patterns across the world. Promotion of
interest free loans saves lots of poor in India who are
approaching the moneylenders for meeting medical
assistance, buying inputs for agriculture and other. Freedom
from debt service obligations provides a lot of resources that
can be used for providing vital medical assistance to the poor
who are being left at the mercy of the market forces. A
A note for GCAP and MDG campaign 24
Interest free financing for MDGs and global ecological security
church movement called Sojourners in US
www.sojourners.com is calling for application of the
communications of Jesus Christ (Peace be upon him) for
transforming foreign policy and social security establishment
in US.
4. Discussions with the World Bank, IMF and other
institutions- there is need to initiate discussions with the
World Bank while seeking global application of UNDP
promoted Sustainability Index for investments in general and
FDIs in particular. There is a need to point out the need for
the adoption of internal coherence in pursuing the
development policies. Use of environment impact
assessments needs to be informed more stringently
considering the frequency of natural disasters that are more
man made. Ecological audits1 are be made compulsory each
year for the institutions and governments.
5. International meet on the solutions- It is possible for
GCAP to decide for regional conferences for discussing the
solutions. UN may be requested to consider an international
meet for transforming the finance sector and consumption
pattern for social justice and collective ecological safety.
Governments may be requested to consider the need to
present memorandums to the World Banks for transforming
the finance sector.
1 The proposal for conducting Ecological Audit had been proposed by the author in the meeting of Wada Na Todo Abhiyan in January 2006 and the author of this note is in the process of developing the operational procedures for conducting the same.
A note for GCAP and MDG campaign 25
Interest free financing for MDGs and global ecological security
6. Inclusion in the MDGs- This note has been developed
considering the inclusion of debt relief in the millennium
development goals while recognizing that the relief is a
temporary measure. There is need to call for debt free
financing and interest free debts for the realization of
millennium development as inequities can not be addressed
without addressing the underlying reason for equity. There is
a need to eradicate the reason for indebtedness within and
between the nations and eliminate the morally abominable,
socially inequitable and ecologically hostile practice charging
interest on the loans. Recognizing the criticality of MDGs,
there is need to suggest transforming finance sector and
financing for MDGs at least by 7-7-2007 when globally we will
be mobilizing for assessing the achievement of MDGs.
Reference:
1. Human Development Report 2003, Millennium Development
Goals: A Compact Among Nations to End Human Poverty
UNDP
2. Global Justice Movement www.globaljusticemovement.net
3. Islamic Mint www.islamicmint.com
4. American Monetary Institute www.monetary.org
5. Social Watch India: Citizens Report on Governance and
Development 2004, National Social Watch Coalition
6. Interviews with Prachanda, the leader of Maoists in
Nepal ,The Hindu, February 9-11,2006
A note for GCAP and MDG campaign 26