Money Homepage
Money may be considered the single greatest organizational invention of the past five thousand years comparable in its impact to that of language and the Internet. The emergence of money as a pre-eminent social institution vividly illustrates the central role of organization in the process of social development. MSS is engaged in a major research project examining the theoretical and historical foundations for the social institution of money as an application of development theory. The research includes an examination of the underlying social causes of inflation, the factors leading to the onset of the Great Depression, as well as the Japanese and East Asian financial crises. In 2007, the Society began the first draft of a book presenting its theoretical perspective on the nature and role of money in social development.
Inflation and Development
In 1979, the Society undertook a research project to examine the primary causes underlying the high rates of inflation that frequently accompany rapid economic development. The study found that the greater stress on basic human rights and increasing social importance given to the common man indirectly contributed to higher rates of inflation. The results of the study, which were published as a four part article in “The Hindu”(Left) and sent to leading economists around the world, suggest that there is an inverse relationship between the purchasing power of currency and the social value accorded to the common man.
Inflation in Yugoslavia
In the aftermath of the war in Yugoslavia and the blockage of Serbia by Western powers, Serbia suffered from hyperinflation in the range of one million percent, perhaps the highest level ever recorded anywhere. After discussions with society staff, Dr. Dragoslav Avramovic, former Director of the Brandt Commission and a member of ICPF, was appointed as President of the Federal Bank of Yugoslavia. Applying a strategy proposed by a Russian Commission member during Gorbachev Foundation Conference, inflation was brought down to single digit levels within one or two weeks in Serbia, a previously unimaginable achievement.
East Asian Financial Crisis
Following the sudden collapse of the economies in East Asia, the Society embarked on a research project to investigate the causes of the crisis and to formulate possible remedies. The Society attended the Conference of the Pacific Rim Economics Associations in Bangkok in 1998 to exchange views and present its recommendations. An article summarizing our approach was published by The Hindu. Further research is in process on the origins, cause and remedy for the Japanese financial crisis that began in 1988 and still impeded growth of the Japanese economy.
Japanese Banking Crisis
In 1999, MSS conducted a study of the financial crisis brought on in Japan during the decade following the collapse of real estate and stock market prices after Central Bank action in 1988 which resulted in losses by Japanese banks estimated at $500 billion. In January 2000, MSS researchers submitted proposals to Japanese commercial and Central Bank officials on strategies to end the crisis, reverse the losses and recover a major portion of the write-offs.
Theory of Money
MSS is presently engaged in preparation of a book examining money as a social organization from the perspective of social development theory. The central thesis of this study is that money, like other social institutions, undergoes a continuous process of evolution reflecting changes in social consciousness, values, attitudes and organization. Each stage in the evolution of money has enhanced its capacity to convert social potentials into social power, thereby contributing to the economic development of society, rising levels of productivity, efficiency and prosperity. In addition, money serves as a symbol for human aspirations and a vehicle for releasing higher intensities of social and individual energy for higher levels of human accomplishment.
International Financial Crisis & Evolution of Money
In 2007 & 2008, the Society conducted research on the subprime mortgage crisis in the USA and on the international financial crisis which resulted from it. Our research focuses on the essential need for greater international financial regulation to control the explosive growth of global financial assets and the case for creation of a global central bank and world currency as an ultimate solution to the problem. MSS organized and chaired a session on this topic at the General Assembly of the World Academy of Art & Science in Hyderabad in October 2008. The Society is also preparing the first draft of a book presenting its theoretical perspective on the nature and role of money in social development.
New Economic Theory
For the past three years, MSS has been collaborating with the World Academy of Art & Science to establish the foundations for human-centered economic theory focused on the goals of human welfare and well-being. MSS created a new website www.neweconomictheory.org. MSS staff have co-authored a series of research papers in Cadmus Journal and participated in a series of international conferences at Dubrovnik (Sep 2011), Bern (Oct 2011), New Delhi (Nov 2011), Trieste (Mar 2012), Rotterdam (May 2012), Bucharest (Sep 2012), the UN Office in Geneva (Jun 2013), Ottawa (Sep 2013), Podgorica (Mar 2014), Baku (Apr 2014) and Almaty (Nov 2014).
In 2013 MSS research focused on the origins of money and the historical evolution of monetary and financial systems; role of money as a social institution and networking mechanism for the development of society; the role of financial markets in economic development; and ways to more accurately reflect the true costs of labor, ecological resources and environmental pollution. In September 2013, MSS presented its findings at an international conference of the Club of Rome in Ottawa. An article on money and another on the role of the individual in economic theory appeared in the May 2013 issue of Cadmus Journal titled “Multiplying Money” and “Steve Jobs: Nobel Laureate” respectively. In 2014 discussions were conducted for preparation a college level course on new economic theory in collaboration with members of WAAS and the Club of Rome.
MSS continued its research on new economic theory in collaboration with WAAS. MSS presented a paper on the need for new theory in economics at the XI International Economics Colloquium on Global Crisis and Changes of Paradigms, at the University of Brasília, Brazil, May 6-8, 2014. MSS co-organized a one-day meeting at the Institute of Economy, Russian Academy of Sciences in Moscow on May 24th on the need for new economic theory. In September 2014, MSS participated in discussions at Inter-University Centre (IUC) Dubrovnik and in October 2014 at the Club of Rome annual meeting in Mexico City on a proposal to develop a post-graduate course on human-centered development theory. A small working group was constituted and preparations were undertaken for presentation at an international conference to be conducted at the University of Florida, Gainesville in May 2015. A paper outlining the Society’s approach was prepared for presentation at Gainesville entitled “Contours of New Economic Theory” and published in the May 2015 issue of Cadmus. The World Academy of Art & Science and World University Consortium conducted a webinar on “The Greek Crisis: Need for a Human-centered Theoretical Framework” on September 15, 2015. A paper titled “The Greek Financial Crisis – Theoretical Implications” by Garry Jacobs and Mark Swilling was published in Cadmus Journal in the October 2015 issue. The XII International Colloquium took place in Gainesville, Florida, USA at the Levin College of Law at the University of Florida, from May 20-22, 2015. Garry Jacobs’ paper “Money, Markets and Social Power” was published in the May 2016 issue of Cadmus Journal. The XIII International Colloquium held in Lisbon on May 11-13, 2016, explored the eco-social and political transitions and their consequences. The New Economic Theory Working Group established the groundwork for development of human-centered economic theory. MSS participated in an international conference organized by WAAS and Kyung Hee University, Seoul, titled “New Paradigm and Planetary Engagement” in September 2016. Garry Jacobs co-chaired a session on the need for human-centered economic theory and also presented at the conference. MSS staff presented in October 2016 at the Kiev International Economic Forum “Ukraine: On the threshold of the Fourth Industrial Revolution”, a forum designed to create a new strategy for technological, social and economic modernization of Ukraine. WAAS and WUC convened a gathering of the New Economic Theory Working Group of which MSS is a member for a lecture series on new perspectives in Economics to promote human welfare and well-being held at IUC Dubrovnik, Croatia, from January 31-February 3, 2017.
In continuation of its research project on New Economic Theory, on May 10-12, 2017 MSS collaborated with the World Academy of Art & Science, the World University Consortium, the Sustainability Institute of Stellenbosch University, South Africa, and the University of Brasilia to conduct the 14th International Colloquium in Cape Town, South Africa. The conference focused on the linkage between our work on economic theory, social power and democracy. It included a presentation by Mcebisi Jonas, former Deputy Finance Minister of South Africa and a leader of the mass movement of civil society, businesses, on the role of money and economy in politics and the attempted take-over of state institutions by private business interests. It included a presentation of a report of MSS on The Political Economy of Neoliberalism and Illiberal Democracy. The conference ended with a meeting of the New Economic Theory Working Group, co-chaired by MSS Vice President Garry Jacobs, which accepted the report prepared by MSS and partner institutions on Quest for a New Paradigm in Economics – A Synthesis of Views of the New Economics Working Group. The group accepted the invitation to conduct the next conference at the University of Paris Nord in May 2018.
The 1st International Scientific Conference Agenda 2030: Economics in a changing world: MSS presented at paper on “Need for Human-Centered Economic Theory” at this international conference held in Umag, Croatia on August 27-28, 2017. The conference was organized by the EXEL Scientific Economics Lab and WAAS.
The Global Blockchain Summit: Garry Jacobs participated and presented at a high profile conference in Denver on April 19-20, 2018 in which he focused on the nature of money as a networking tool designed to promote economic relationships and wealth creation.
MSS has constituted an international working group to collaborate on development of a post-graduate course on new economic theory. The group consists of leading institutions in different countries and prominent social scientists to evolve the framework for a transdisciplinary, human-centered theory of economy that maximizes human welfare, full employment, equality and ecological sustainability. Institutional partners include World Academy of Art & Science (USA), World University Consortium (USA), University of Florida (USA), Stellenbosch University (South Africa), University of Brasilia (Brazil), New Economy Foundation (UK), World Resources Forum (Switzerland), YK Centre (Israel) and others. MSS plans to design a comprehensive course curriculum, development of core questions and perspectives for each module of the course, coordination of content of the modules and formulation of a coherent, cohesive integrating intellectual framework. MSS staff participated and presented at the event.
Garry Jacobs, representing MSS and the World Academy of Art and Science, was invited to share the findings of the research on Human-Centered Economic Theory and the potential for rapid global social transformation at the Global Blockchain Summit in Denver on April 19-20, 2018. MSS staff participated and presented at the XV International Colloquium titled “The role and impact of International Institutions on Economic Theory and Policy” held on May 2-4, 2018 at Paris Nord University, Paris.
Publications: Papers based on MSS research were published in Cadmus, the international journal of the World Academy of Art & Science. “Quest for a New Paradigm in Economics”, (Cadmus Vol 3.2, May 2017) and “The Political Economy of Neoliberalism and Illiberal Democracy” (Cadmus Vol 3.3 Oct 2017). [3, 4] A new paper on “Cryptocurrencies & the Challenge of Global Governance” has been accepted for publication in the May 2018 issue of Cadmus Journal (V2 I4).
Global Institute for Sustainable Futures
The Society prepared a concept note for establishing a multi-stakeholder Global Institute for Sustainable Futures in collaboration with Kyung Hee University, South Korea, and presented it to Ban Ki-moon, former UN Secretary General, in July 2017. He strongly endorsed the proposal and expressed his willingness to collaborate with us.
Publications:
A paper titled “Challenges and Opportunities for the Korea and the World” [7] was published in Cadmus Volume 3, Issue 3 (October 2017) by MSS staff.