Stages of Evolving Global Self-Organization
= the evolution of the global system according to Peter Pogany
Details on GS3
The potential third global system that Pogany projected as a possibility (outlined in the 2nd table above) was thus characterized:
"Long-term world equilibrium -- GS3
The thermodynamic interpretation of global history predicts a halt to population and economic expansion for purely physical reasons. This general condition requires a new global system: GS3 – two-level economy/strong multilateralism/mostly government money (maximum reserve banking).
Legally binding international agreements on the use of nonrenewable energy and material resources, as well as on harmful emissions, would enlarge the government’s role in economic affairs since administrative methods would be needed to ensure national compliance with globally determined goals. The implied strong multilateralism would split national economies (hence, the world economy) into a free-market and a public authority-dominated sector. While carrying on the best traditions of constructive entrepreneurship, businesses in the first domain would bid for resources and emission rights; joint private-public ownership would prevail in the second one. The state’s substantial holding of private shares would eliminate most, if not all, income taxation.
The monetary system would be based on a global currency issued by the global central bank. The world currency would combine the discipline GS1’s gold standard vouchsafed and the flexibility GS2’s fiat money has provided (without the fractional reserve system, which, as will become obvious during the first half of the 21st century, is wholly incompatible with any consciously pursued economic steady state.) Much along the lines proposed by Keynes at the 1944 Bretton Woods conference, an international clearing house would keep cross-border trade in equilibrium.
Maximum bank reserves would restrict the ability of banks to extend loans. Just as under the prevailing minimum reserve system, some banks in some instances may keep no reserves at all; under the maximum reserve system some banks in some instances might be required to keep 100 percent reserves. While such an arrangement may not eliminate the creation of money through debt, it would certainly change its nature. The consent of depositors would be required to make loans, making financial intermediation once again the modest helper that draws together scattered household savings in order to place them into the hands of bona fide entrepreneurs. “Enterprise,” in the Keynesian sense, would squeeze out “speculation.” The economic role of grass roots communities would increase significantly." (via fb, via Dave MacLeod, July 2020)
Source: Stages of Evolving Global Self-Organization, from "What’s wrong with the world? Rationality! A critique of economic anthropology in the spirit of Jean Gebser" by Peter Pogany. Shenandoah Valley Research Press, 5. November 2010
Source: David MacLeod added another stage, GS3, to Peter Pogany's table.