Transforming World Bank, IMF and World Bank for Distributive Justice for Renewable Resources and Ecological Safety

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


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



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



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



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



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.


http://www.simpol.org/


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



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



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.



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


http://www.letslink.org/

http://www.monetary.org/


http://www.globaljusticemovement.net/


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



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


http://www.seektoknow.net/money

http://www.interestfreemoney.org/

http://www.islamicmint.com/


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.



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.



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



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



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



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



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



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



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



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



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



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




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.


http://www.sojourners.com/


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



http://www.islamicmint.com/

http://www.globaljusticemovement.net/

Economy & Finance

Transforming World Bank, IMF and World Bank for Distributive Justice for Renewable Resources and Ecological Safety