Re:Global Currency System

[Srinath S <srinaths@usa.net>]

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I would not call the present globalization a "scam" because, even though it is
unfair, the present configuration is simply a result of historical decisions
made in isolation. It is not a wanton effort towards "a second round of
imperialism" as some would put it. 

True globalization can occur only when there is a global currency. But
implementing a global currency isn't that simple. It is very difficult for any
single entity to globally caliberate products and services. And if anything, a
body assigned to do such a job holds such tremendous power that it becomes a
hotbed of corruption. 

And besides, there are qualitative differences among value addition of the
same sort. For example, unskilled labour as it is performed in India vs as it
is performed in the US are very different. The US relies on machines and
automation much more than India -- and machine usage is so ubiquitous that
they can be considered "unskilled." Also the distribution of natural resources
varies so widely that it affects performance. The same unkilled labour (of say
laying roads) requires far less resources when performed in say south India as
against say north Sweden. 

If anything this global economy has to *evolve* itself into the best
configuration. And rather than taking on a oppressed vs oppressor worldview,
IMO, it is better to think in terms of how we can facilitate the evolution
into an optimal configuration. 

For example, present day globalization creates what are called "economic
holes" in weaker economies of the world. Economic holes are caused by a dearth
of transactions that meet demand with supply, even though both exist. What it
means is: I have what you want, you have what he wants and he has what I want;
but all of us are "poor" and "third world"; none of us have any "money"; so we
don't transact among ourselves and instead concentrate on "wealth generation."


However preposterous it may sound, this is in effect what is happening in the
weaker economies. We need to identify such holes and "fill" them if we are to
prevent major breakdowns. 

Srinath 


Ideas for India: Building the future -- together 
http://www.ideasforindia.net/ 

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