SACHSTERLY

The world of the twenty-first century is a world of feasible priorities. The world of the twenty-first century is the world of cornucopia and eutopia, the world where the History of Tomorrow has to be explored, the world of creative construction.

For years I read the work of the best development economists of our time. I read “The End of Poverty”. I read “The bottom billion”. I read “The White Man’s Burden”. I came to the conclusion that my favorite economist is Mr Sachsterly, a fictitious academic that embraces the best ideas of Mr Sachs and Mr Easterly. Obama said that the debate is not smaller or bigger government, but smarter government. Perhaps the debate should not be whether or not we need more or less aid. We need smarter aid. Perhaps we need to leave the words philanthropy and charity behind and embrace the word investment.

The end of poverty is closer than we think. The rescue of the bottom billion is only a reality if Mr Sachs and Mr Easterly put their oustanding intellectual skills to work instead of trying to win a debate that academics will perpetuate so long as they exist. The universe of ideas is much wider than we think. For years we have lived constrained to right and left, to conservative and progressive thinking. The best prototypes are hybrids and Mr Sachsterly is my favorite.

Reading Dambisa Moyo’s Dead Aid I realize that academics and policy makers are dead. Aid will never die, so long as academics do not cease to exist. Aid ought to be redefined. Perhaps aid and capitalism should be redefined altogether, and Mr Sachsterly has the answer.

The future of the world is in the South. Without the South the West will be unable to sustain economic growth and take care of aging populations. We left the Washington Consensus behind. What remains? “It remains for us now, if we do not wish to perish, to set aside the ancient prejudices and build the Earth” (Pierre Teilhard de Chardin).

Ms Moyo stresses the importance of microfinance and Hernando de Soto’s insightful theories on formalizing the informal economy. Ms Moyo looks back and reviews the success behind the implementation and delivery of the Marshall Plan. Why isn’t a Marshall Plan for Africa feasible today? Why cannot the successes put forth by the American and French visionaries of the 1940s and 1950s be replicated in today’s environment?

We undermine our own ability to change the path of our own history and fate. Bruce Bueno de Mesquita of New York University is the Next Nostradamus. He should be asked why a Marshall Plan for Africa will not take off.

It is perhaps time to replicate the structural features that made the Marshall Plan a successful outcome. Perhaps Mr Sachsterly could play the role of John Maynard Keynes. Perhaps Mr Obama could play the role of President Harry S Truman.

Where are thou men and women of political stature? Where are thou visionaries of our time? We need individuals of such high caliber as General Marshall, George Kennan, Jean Monnet and Robert Schuman. Europeans owe big time to the Americans that rescued the old continent from Nazism, the devastation of World War II and the threat of the expansion of Soviet communism.

It is time Mr Sachsterly. It is time to become men and women of political stature, to reach the caliber of the visionaries of the 1940s and 1950s. It is time to say why not, to dream awake, to scream the urgency of our time. It is time to say we dare therefore we exist, to never give up.

Let’s start dreaming of a better world. It is only possible today. Let’s not be afraid of moving forward, leaving the fears of the baby boomers behind. The next stop is Africa and I do not wish to miss it.

-Jaime Pozuelo-Monfort is the multidisciplinary European and author of The Monfort Plan

2 Responses to "SACHSTERLY"

  1. MorrisonBonpasse   June 3, 2009 at 4:21 pm

    If the world moved rapidly and deliberately to implement a Single Global Currency, we would provide enormous benefits for the poor of the world, many of whom live in countries where currency risk discourages local investment.The next major realignment of the world’s major currencies should be to a common currency managed by a monetary union central bank. When such a currency supports countries with 40-50% of the world’s GDP, that currency will become the defacto Single Global Currency, and the “tipping point” momentum willfavor its continued growth, until it supports all the countries of the world. Thus will come the Single Global Currency managed by a Global Central Bank within a Global Monetary Union, and the benefits can be measured in the trillions, annually.Such a Single Global Currency will provide what the people of the world want – stable money.The primary problem for the euro and every regional monetary union today is that they must still exist in the multicurrency world wherethe value of its currency will fluctuate against other currencies.If 16 countries can use the same currency, why not the 192 U.N. members? Those 192 countries now use 141 currencies and the number is dropping annually. The euro is definitely a harbinger of the future, and soon all 25 EU members will be part of the EMU, and by then, there will be more EU members to add. Several of the remaining non-euro EU members are now seeking admission as soon as possible. The IMF has even urged several EU members to “euroize” even before completing the standard accession process.In addition to eliminating currency fluctuations, the use of a Single Global Currency would eliminate the current foreign exchange trading expense of $400 billion annually, eliminate currency risk, eliminatecurrent account imbalances, eliminate the need for foreign exchange reserves (now totaling more than $6 trillion); and bring other benefits worth trillions, such as reducing the impact of global financial turmoil such as we are now experiencing.The Single Global Currency Assn. (www.singleglobalcurrency.org)promotes the implementation of a Single Global Currency by 2024, the 80th anniversary of the 1944 conference. That’s only 15 years away.The world is moving toward a Single Global Currency through the creation, expansion and merger of regional monetary unions. Other routes are through “ization” (as in “dollarization” and “euroization”) and international monetary conferences proposals and agreements, such as were seen at Bretton Woods. The merger of the eurozone with one or two other currencies is one possible route to a Single Global Currency.The challenge now is to reach that goal deliberately, as soon as possible, with as little cost and as few crises as possible. If theeurozone were to merge with the U.S. dollar of the yen, or if the yen and the U.S. dollar were to form a monetary union, the road to a Single Global Currency would be clear.The only remaining questions about implementation of a Single Global Currency are: when? and how much cost and turmoil will the world endure before that implementation.See the book, “The Single Global Currency – Common Cents for the World.”Morrison BonpasseSingle Global Currency Assn.Newcastle, Maine, United States