Workinggroup on Great Transformation
- Date submitted: 1 Nov 2011
- Stakeholder type: Major Group
- Name: Workinggroup on Great Transformation
- Submission Document: Download
Full SubmissionMonetary reform for a sustainable monetary system
For Rio+20 Compilation Document
A sustainable economic system needs a sustainable monetary system. The current monetary system is based on the fractional reserve system and is not sustainable at all. A monetary reform is needed.
Regarding our monetary system there is an increasing number of independent experts coming to basically the same conclusions1:
Most of the countries in the world face problems of worsening distribution of wealth and growing Mountains of debt. These phenomena are not primarily the result of economic misbehavior but the result of the design of our monetary and financial system, which is not sustainable.
Any finance and monetary system that allows to gain money without activities in the real economy is not sustainable. It leads to growing differences in distribution of wealth and demolishes the societal system in regular intervals.
There is also a growing number of proposals for the monetary reform, including the following:
US Congressman Kucinich?s Monetary Reform Bill 2
Towards A Twenty-First Century Banking and Monetary System 3
Münchener Modell 4
Monetative5 ? Geldschöpfung in öffentliche Hand
Without addressing the question on monetary reform there is no way to establish a sustainable economic system. Therefore we suggest that the issue of monetary reform should explicitly discussed in the Rio+20 preparatory process. The Rio+20 document should include concrete proposals on how to tackle the monetary reform.
Workinggroup on the Great Transformation -
Arbeitsgruppe Grosse Transformation in der Initiative Zivilgesellschaft