Eco-social market economy
Encyclopedia
The concept of an Eco-social market economy aims at balancing free market economics, the strive for social fairness and the sustainable use and protection of the natural resources
. It was developed by Austria
n politician Josef Riegler during the 1980s.
. The eco-social market economy requires that the protection of the environment and social fairness are vital criteria for all economic activity. The protection of the ecology
and habitat
for future generations are central issues for eco-social market economies. Its supporters maintain that free markets alone are not able or interested to protect the environment
, hence government action is necessary. The creation of higher social and environmental standards, especially in developing countries, is seen as a vital step to world peace in the future.
"The eco-social market economy aims at: higher chances for the brave, more solidarity and more responsibility for natural habitats" (Josef Riegler)
, and demand a stronger cooperation between the United Nations
, the World Trade Organisation, the International Monetary Fund
and the International Labour Organisation to create the said framework.
On a national level, it favours higher taxes on fossil-fuel energy sources, while at the same time lowering [income taxes]]. Public subsidies must, in their opinion, only be paid to promote sustainability. Environmental pollution
and resource use must be included in the calculation of product processes and in product prices. A strong emphasis in education about issues on environmental protection are seen as being absolutely necessary to create awareness.market
in the 1990s, is a main part of Eco-social thinking. The idea of a Global Marshall Plan
is based on two pillars:
"1. Innovative additional fundraising required for the actual realisation of the UN Millennium Development Goals on the basis of partnerships, co-responsibility and good governance.
2. The achievement of a global eco-social market economy by means of implementing the same ecological and social standards in all institutes and agreements, on a global scale."
The funding of these development measures are a levy on financial transactions, a cerosine tax or Special Drawing Rights
with the IMF. The big challenge is finding an effective way of translating money into development without losing to corruption worldwide.
Among the prominent supporters of the initiative are Muhammad Yunus
, Hans-Dietrich Genscher
, Ernst Ulrich von Weizsäcker
and Jane Goodall
.
Natural Resources
Natural Resources is a soul album released by Motown girl group Martha Reeves and the Vandellas in 1970 on the Gordy label. The album is significant for the Vietnam War ballad "I Should Be Proud" and the slow jam, "Love Guess Who"...
. It was developed by Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
n politician Josef Riegler during the 1980s.
Definition and aims
The eco-social market economy is a holistic model based on a strong and innovative market economyMarket economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...
. The eco-social market economy requires that the protection of the environment and social fairness are vital criteria for all economic activity. The protection of the ecology
Ecology
Ecology is the scientific study of the relations that living organisms have with respect to each other and their natural environment. Variables of interest to ecologists include the composition, distribution, amount , number, and changing states of organisms within and among ecosystems...
and habitat
Habitat
* Habitat , a place where a species lives and grows*Human habitat, a place where humans live, work or play** Space habitat, a space station intended as a permanent settlement...
for future generations are central issues for eco-social market economies. Its supporters maintain that free markets alone are not able or interested to protect the environment
Natural environment
The natural environment encompasses all living and non-living things occurring naturally on Earth or some region thereof. It is an environment that encompasses the interaction of all living species....
, hence government action is necessary. The creation of higher social and environmental standards, especially in developing countries, is seen as a vital step to world peace in the future.
"The eco-social market economy aims at: higher chances for the brave, more solidarity and more responsibility for natural habitats" (Josef Riegler)
Proposed measures
Frameworks and Guidelines for fair competition must be implemented, not only in the EU, but on a global level. It is a foremost demand to politics to create such a political landscape of global connectivity and cooperation. Eco-social market economists support the implementation of the Millennium Development goals and the Kyoto ProtocolKyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
, and demand a stronger cooperation between the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
, the World Trade Organisation, the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
and the International Labour Organisation to create the said framework.
On a national level, it favours higher taxes on fossil-fuel energy sources, while at the same time lowering [income taxes]]. Public subsidies must, in their opinion, only be paid to promote sustainability. Environmental pollution
Pollution
Pollution is the introduction of contaminants into a natural environment that causes instability, disorder, harm or discomfort to the ecosystem i.e. physical systems or living organisms. Pollution can take the form of chemical substances or energy, such as noise, heat or light...
and resource use must be included in the calculation of product processes and in product prices. A strong emphasis in education about issues on environmental protection are seen as being absolutely necessary to create awareness.market
Global Marshall Plan Initiative
The idea of a global marshall plan, first brought forward by Al GoreAl Gore
Albert Arnold "Al" Gore, Jr. served as the 45th Vice President of the United States , under President Bill Clinton. He was the Democratic Party's nominee for President in the 2000 U.S. presidential election....
in the 1990s, is a main part of Eco-social thinking. The idea of a Global Marshall Plan
Global Marshall Plan
The Global Marshall Plan is a plan first devised by former American Vice-President Al Gore in his bestselling book Earth in the Balance, which gives specific ideas on how to save the global environment....
is based on two pillars:
"1. Innovative additional fundraising required for the actual realisation of the UN Millennium Development Goals on the basis of partnerships, co-responsibility and good governance.
2. The achievement of a global eco-social market economy by means of implementing the same ecological and social standards in all institutes and agreements, on a global scale."
The funding of these development measures are a levy on financial transactions, a cerosine tax or Special Drawing Rights
Special Drawing Rights
Special Drawing Rights are supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund . Not a currency, SDRs instead represent a claim to currency held by IMF member countries for which they may be exchanged...
with the IMF. The big challenge is finding an effective way of translating money into development without losing to corruption worldwide.
Among the prominent supporters of the initiative are Muhammad Yunus
Muhammad Yunus
Muhammad Yunus is a Bangladeshi economist and founder of the Grameen Bank, an institution that provides microcredit to help its clients establish creditworthiness and financial self-sufficiency. In 2006 Yunus and Grameen received the Nobel Peace Prize...
, Hans-Dietrich Genscher
Hans-Dietrich Genscher
Hans-Dietrich Genscher is a German politician of the liberal Free Democratic Party . He served as Foreign Minister and Vice Chancellor of Germany from 1974 to 1982 and, after a two-week pause, from 1982 to 1992, making him Germany's longest serving Foreign Minister and Vice Chancellor...
, Ernst Ulrich von Weizsäcker
Ernst Ulrich von Weizsäcker
Ernst Ulrich von Weizsäcker is a German scientist and politician.He is son of the physicist Carl Friedrich von Weizsäcker and nephew of the former German President Richard von Weizsäcker....
and Jane Goodall
Jane Goodall
Dame Jane Morris Goodall, DBE , is a British primatologist, ethologist, anthropologist, and UN Messenger of Peace. Considered to be the world's foremost expert on chimpanzees, Goodall is best known for her 45-year study of social and family interactions of wild chimpanzees in Gombe Stream National...
.