> Financing the Global Sharing Economy – A report from Share the World’s Resources.
(available at www.stwr.org/financing-the-global-sharing-economy)
The NGO Share the World’s Resources has compiled a major report which examines: "How to mobilise $2.8 trillion to prevent life-threatening deprivation, reverse austerity measures, and mitigate the human impacts of climate change." In Financing the Global Sharing Economy, the report’s authors argue that we are facing a twofold global emergency. On the one hand, figures suggest that extreme poverty and climate-related disasters take over 40,000 lives every day, and severely impact millions more. At the same time, cutbacks in the welfare systems of many of the richest nations are making it harder for many people to meet their basic needs. The authors link these two circumstances through the concept of the ‘sharing economy’ – systems of welfare and redistribution which exist locally, nationally and globally, arising from the contributions of individuals, groups, states and other institutions. This encompasses the advanced social security systems of richer nations, the developing social security systems of low-income nations, and development aid. It is their contention that, having been set up in the middle decades of the twentieth century, this ‘sharing economy’ is now being undermined by governments. In a world which is already very unequal, they propose that this neglect of policies which re-distribute wealth has resulted in a global emergency
The authors recognise that the underlying causes of most of the urgent problems facing humanity are complex, and require extensive reforms of the global economy, reforms which will take much time. Nevertheless, they say that acting upon this emergency cannot wait for these changes – the urgency of so many millions facing devastating poverty calls for immediate action, and is eminently affordable. They then detail ten policy options which could mobilise over $2.8 trillion every year to strengthen the sharing economy both within and between nations. These policy options are listed below, with some explanatory notes:
1) Tax financial speculation: A financial transaction tax could help regulate markets by discouraging the most destabilising trading practices
2) End fossil fuel subsidies: If all forms of biofuel and fossil fuel subsidies are progressively phased out by 2020, the sum of money released could secure universal access to energy, leverage a significant investment in renewable energy, and finance programs to allow countries to mitigate climate change impacts
3) Divert military spending: 25%of global military spending, if diverted, would free up over $400 billion to save lives and strengthen UN peace-building work. Inequality is a major potential cause of conflict, which implies that future global security strategy should focus on international cooperation and economic sharing
4) Stop tax avoidance: A range of measures, from clamping down on tax havens and ending corporate tax abuses, to strengthening tax systems in the Global South and adopting more progressive tax policies in rich countries, is a pragmatic way for nations to share their resources more equitably
5) Increase international aid: A short-term increase of international aid to 1% of Gross National Income would provide a much-needed boost towards meeting the most urgent needs of developing countries
6) End support for agribusiness: In order to seriously address the global food crisis, and increase food security in the Global South, the elimination of wasteful subsidies to powerful agribusiness corporations is needed
7) Harness International Monetary Fund (IMF) resources: The track record of the IMF in alleviating poverty in the past has been controversial. Nevertheless, it has the ability to raise and distribute large sums for poverty eradication, so an intelligent re-focusing of its efforts could do much to restore its damaged legitimacy
8) Tax dirty fuels: The concept of a carbon tax on fossil fuels is well supported by many scientists, environmental groups and economists, and some countries have already introduced it. Such a tax provides an incentive towards more efficient fossil fuel use, and encourages the transition towards a low-carbon future
9) Cancel unjust debt: In spite of some moves towards debt forgiveness, developing countries are still very heavily burdened by the need to re-pay debts, money which could be otherwise used to build their social security systems
Cancelling debts made to dictators alone could free up $81 billion per year, and pave the way to a future total debt forgiveness
10) Protect import tariffs: The current round of world trade negotiations stands to negatively impact countries of the Global South by forcing some of them to reduce their import tariffs, instead of allowing them the policy space to regulate their national economies in accordance with their own development objectives.
Each of the above measures has its own thoroughly researched chapter in the report, detailing the rationale behind each one and its expected benefits, and also providing an extensive list of resources for further study. The authors note that even implementing the modest proposals in the report will require massive public support. They call for "the participation of the global public in a call for reform that extends beyond national borders", and note that the responsibility for action falls on not just the usual campaigners and NGOs, but also on the shoulders of ordinary people, if we are "to forge a united and informed public opinion that upholds and strengthens the sharing economy in all its forms." Share the World’s Resources make a compelling case which will surely resonate with people of goodwill everywhere.
For further information on the work of Share the World’s Resources
see their website at:www.stwr.org
