Microcredits

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The concept of microcredits – the provision of small loans to the poor worldwide – gained international recognition when the Nobel Peace Prize was awarded in 2006 to the foremost promoter of this idea, Prof. Muhammad Yunus, founder of the Grameen Bank and numerous other social business ventures in Bangladesh. However, the “hype” triggered by this recognition also gave rise to controversial forms of microcredit lending. This represents a development similar to what the world experienced with conventional financial mechanisms during the global financial crisis.

Overview: Microcredits

In 2006, Muhammad Yunus received the Nobel Peace Prize for his idea of microcredits. Since then, substantial public and private funds have flowed into microfinance. The goal was to strengthen small businesses, reduce poverty in countries of the Global South, and, above all, provide women with income and greater independence.

Microinsurance Life Stories – Presentation of the Microcredit Study (M. Yunus)

Zum Start der Allianz-Ausstellung „Microinsurance Life Stories“ und der Vorstellung einer neuen Studie zur Wirkung von Mikrokrediten besuchte Friedensnobelpreisträger Muhammad Yunus das Allianz Forum in Berlin. In seiner Rede unterstrich der Gründer der Mikrokredit-Bewegung einmal mehr, wie seine Ideen den Kapitalismus revolutionieren können. Allianz SE – München, 18.11.2014 (mehr Infos auf der Webseite der Allianz). At the opening of the Allianz exhibition “Microinsurance Life Stories” and the presentation of a new study on the impact of microcredits, Nobel Peace Prize laureate Muhammad Yunus visited the Allianz Forum in Berlin. In his speech, the founder of the microcredit movement once again emphasized how his ideas could revolutionize capitalism. Allianz SE – Munich, 18.11.2014 (more information on the website of the Alliance).

Sustainable Development

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Book: “Voluntary Climate Neutrality of the Private Sector – Key to Achieving the 2°C Target”

Combating climate change is one of the major challenges for international politics. It is about far more than just an ecological issue. It concerns the protection of prosperity and freedom, and potentially even matters of war and peace. From our perspective at the Senate of Economy, it has always been clear that climate policy must overcome traditional frameworks of thinking. We need international solutions. In addition to political action, we must activate the private sector – especially the wealthy segment of it – and alongside all efforts to avoid and reduce greenhouse gas emissions, particularly CO2, we must also remove it from the atmosphere in the form of so-called negative emissions.

Research Project: “A Better Design of Globalization: Action Potentials from a Development Policy Perspective”

The project comprises two sub-projects: “Value Chains and Sustainability – Opportunities and Limits under WTO and EU Law”and “Implementation of the Sustainable Development Goals 2015-2030 – Requirements for Global Governance and Implementation Possibilities”.

Image source: Pixabay

Marshall Plan with Africa

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The Global Marshall Plan is a concept for a balanced world. It consists of five strategically interconnected pillars:

  1. Rapid achievement of the United Nations’ globally agreed Millennium Development Goals.
  2. Mobilization of an average of USD 100 billion per year additionally from 2008–2015 for development cooperation.
  3. Fair mechanisms for raising the required funds. The Global Marshall Plan Initiative supports the targeted 0.7 percent funding level for development cooperation based on national budgets.
  4. Gradual realization of a worldwide eco-social market economy and overcoming global market fundamentalism through the establishment of a better regulatory framework for the world economy.
  5. Preconditions for achieving a reasonable regulatory framework include fair and cooperative partnerships at all levels, adequate financial flows, promotion of good governance, combating corruption, and coordinated, grassroots-oriented use of funds to contribute to self-directed development.

The Global Marshall Plan provides a framework for achieving a balanced future. Growing support for this approach in politics, business, and civil society gives hope, but the path ahead remains long and arduous. Success is far from guaranteed.

Key Points for a Marshall Plan with Africa (Draft)

More than ever, our future – and that of our children and grandchildren – is linked to the future of our neighboring continent, Africa. By 2050, Africa’s population will double, creating global challenges that we must already address. These include, for example, the core question of how to create 20 million jobs per year, ensure food security for people in Africa, and establish sustainable energy supply – without further burdening the climate or depleting environmental resources. [Read more and download]

Migration, Sustainability, and a Marshall Plan with Africa

Memorandum for the German Federal Government

The Club of Rome and the Senate of Economy have submitted the memorandum “Migration, Sustainability, and a Marshall Plan with Africa” to the German Federal Government. Many authors contributed to this work. The results are available in both a short and long version. Some contributions were condensed into shorter versions for space reasons in the memorandum. The longer texts are included in a separate material volume. [Read more and download]

IInterview: “We Need Enlightenment”

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With a lecture on the topic “Globalization, Sustainability, Future: Can We Still Be Saved?”, mathematician, economist, and sustainability expert Prof. Dr. Dr. Franz Josef Radermacher enriched the recent general assembly of Pax-Bank. In an interview with Tom Veltmann, sustainability and brand management expert at Pax-Bank, Professor Radermacher shares his views on the world of tomorrow – and the role banks can play in it.

The full interview is available for download as a PDF.