Poverty, Disparity, Unfair Rules – A need to rethink, but …

… Mindsets do not shift unless shocked. Severely so!!!!

Poverty, a symptom, is a mindset issue; it is not a defined financial measure

The causal problems of poverty are, generally, not to be found in the impoverished regions, they exist in the first world.

Minority financial power-players (fat cats) have instilled an open global economy (without protections) mindset which has been accepted without question – highly destructive

Section 1:

Introduction:

Research & field work of incalculable value has been done by Professor Jeffrey Sachs (JS) of Columbia University’s Earth Institute.

(The End of Poverty by Jeffrey Sachs, foreword by Bono, Penguin, ISBN 0-141-01866-6)

The focus of the Millennium Development Goals is to End Poverty by 2025, with a reduction by half by 2015. In attaining this other initiatives as set out in their Goals are aimed for as well; these can be viewed as necessary measures to attain the primary goal.

It is stressed, once again, that JS’s (and UN’s) work is of incalculable value, BUT it is wrongly focussed.

This wrong focus is the cause of previous of JS’s projects failing.

BUT, as pointed out to JS, we feel comfortable boarding an Airbus because we know that engineers & test pilots have crashed planes beforehand so that understanding of flight can be mastered. Without those earlier crashes having occurred we would have known little and would not feel so comfortable boarding an Airbus.

Similarly the “crashes” that JS has endured are unavoidably important ones.

The most important point to note from these crashes is that Business/Economy Engineering was entirely absent; this is humbly stated.

It is also important for people to recognise when they are within entrenched positions. It is important to be able to humble oneself so as to unlock from that entrenched position.

Let me explain in a simple example. Many can remember the movie The Right Stuff, and when Chuck Yeager climbed into his test plane to break the sound barrier. His ego had locked him into a position that he would go ahead regardless of the fact that he had injured his arm. He used a shortened broom handle to close the hatch and he hoped that his arm did not present a problem in flight. His bravado won through and he thus became a hero who succeeded despite a disability – it was sold on the basis of a negative not having been allowed to prevail over a striving to succeed.

Whilst this approach can (perhaps) be lauded in any particular individual’s circumstance, such a gung-ho approach cannot be lauded when it comes to millions, billions, of people.

People in power positions, be it social, knowledge, or whatever power position must remember that in the circumstances of attempting to address poverty that they are dealing with peoples lives & futures and must be humble enough to engage openly, transparently & honestly.

A key learning point from the last 100+ years, briefly stated:

The current position of global instability in the world today has evolved from a critical event in which Britain’s Lord Milner manipulated for war. Britain suffered an embarrassing period in the first year of the Boer War, it caused Germany to manoeuvre for power, which caused WWI, which caused both communism and a destructive Armistice, which caused WWII, which caused the Cold War, which caused ……, which caused …..

Amongst all the power players - good, bad & ugly – of the past century two have stood out well in front of the best of the good – Churchill & Smuts.

The key learning point from these two people is that they were both foes in the Boer War but allies, both politically & militarily, in WWI & WWII.

The extent of their convergence, from a once hostile divergent position to one of absolute trust, is demonstrated by the fact that Churchill nominated Smuts as his successor should he be killed in WWII.

For a foreigner to achieve the position of legal “heir” to Britain’s entire power & future, not through force but through Britain’s willingness and in absolute trust of the holistic inner qualities of Smuts’ character, is an awesome achievement.

Such magnitude of achievement had never before been seen; nor has it been seen since.

Surely we can achieve ¾’s of that magnitude today for ourselves, only sixty years beyond?

HALF????

FACTS, EXPLANATIONS, & PROOFS

A further point that needs to be understood is the difference between FACTS and PROOFS.

The apple that fell on Isaac Newton’s head (if indeed it did), and the similar repeated & observed events, all of which produced identical results (of an apple falling to the ground) is the observed, intuitive, FACT that a force acted upon the apple. Newton’s expression, law, of gravitation EXPLAINS the force that causes the apples to fall; the expression is the not the PROOFS, the repeated statistical measurements are PROOFS that the EXPLANATION (Newton’s law) agrees with the FACT, and that the EXPLANATION is a reasonable APPROXIMATION of natural events (FACTS).

It is a common occurrence that commercialist’s fall into the trap of demanding PROOFS of intuitive FACTS, and unless they have those PROOFS refuse to believe the intuitive FACTS. This is why it is extremely important to work carefully through the underlying data from which deductions are put forward by commercialists.

Examples:

• Although this one is a ludicrous example it nonetheless explains the point: commercialists will not believe/accept that an unsupported apple falls to the ground unless they are presented with proofs.

• A real example: Financial Markets (e.g. Nasdaq, FTSE, Dow Jones etc.) pump out masses of data. Commercialists analyse this data and use this to formulate underlying principles and to “design” systems. They overlook the fact that the underlying systems & controls of these markets/economies are defective causing “garbage out” data (“proofs” in their eyes) to be analysed for inputs into the next cycle, which means that “garbage in” is fed into a defective system, thus creating further distortions (which are wrongly viewed as “facts” in their eyes).

It is because commercialists have developed their knowledge base from 2^nd or 3^rd level concepts, derived by others from 1^st principles, that commercialists are unable, or are hindered, in thinking from 1^st principles.

It is for this reason that many of the “systems & controls” used in business/economy environments are defective because they have been developed by commercialists. They account for much of the problems that cause disparity creating/maintaining poverty.

It requires Business/Economy Engineering to rectify this.

It is for these reasons that it is emphatically stated that the intention of the UN’s Millennium Development Goals, influenced in the main by JS’s work, is sound, BUT the direction is incorrect BECAUSE the direction has been determined by incorrect analysis of data out of defective systems.

Millennium Development Goals – poverty incorrectly defined

The MDG definition of extreme poverty is a person earning less than $1 per day – this is found only in developing countries.

Moderate & relative poverty are defined as being at higher earning levels and are found globally in all countries - these definitions are based upon national “average” calculations.

As stated before poverty is a symptom of underlying causal problems; the greatest of which is unfair rules within the financial/economy & social/justice environments that causes disparity, which causes despair, which causes poverty.

It is contended that if, in any environment, the rules are fair for all within that environment then disparity will be minimised by fair means, and poverty symptoms will diminish.

The “financial based” definitions ($1, $2 etc. levels) for poverty in themselves distort the understanding of poverty and consequently misdirect thoughts such that incorrect thoughts ultimately create inappropriate action plans that do not solve the problems nor alleviate the symptoms.

We need to correctly identify & understand poverty.

This paper is not intended to suggest that the proposals herein are absolute; the intention is to create awareness that the causal problems that create the symptom of poverty have not been correctly identified or understood. This, so that we have the correct mindset to address the issues properly.

With no intention of getting “holy” it is nonetheless important to note:

Mic 4:2 And many nations shall come and say, Come and let us go up to the mountain of Jehovah, and to the house of the God of Jacob. And He will teach us of His ways, and we will walk in His paths; for the Law shall go forth out of Zion, and the Word of Jehovah from Jerusalem.

Mic 4:3 And He shall judge between many peoples, and will decide for strong nations afar off; and they shall beat their swords into plowshares, and their spears into pruning hooks. Nation shall not lift up a sword against nation, And they shall not still learn war.

Mic 4:4 But they shall sit each one under his vine and under his fig tree; and there shall be no trembling; for the mouth of Jehovah of Hosts has spoken,

Mic 4:5 For all peoples will walk, each one in the name of his god; and we will walk in the name of Jehovah our God forever and ever.

Mic 4:6 In that day, says Jehovah, I will gather the lame, and I will gather the banished, and the one I have afflicted.

Mic 4:7 And I will make the lame into a remnant, and her who was cast off a strong nation; and Jehovah shall reign over them in Mount Zion from now on, even forever.

(source: www.e-sword.net – free downloads – Modern King James Version)

JS is incorrect to ignore the huge costs borne by the US in acting as a global police force. Had they not done this then Bay of Pigs & other issues may have had serious negative consequences.

Jeffrey Sachs is entirely correct though when he proposes that part of US’s military budget be diverted from tanks, planes, ships, and be beaten into ploughshares, and their bullets, missiles, bombs, into pruning hooks, …. and anti-retrovirals, and water schemes, and constructive knowledge, and constructive assistance, and so on, and ….

But there is even greater benefit in establishing fair rules, globally engaged, that bring about SAVINGS, and through a share of these savings a REWARD is paid into a UN Development Fund. A WIN/WIN outcome that can directed to implementing solutions that achieve the MDG goals

BUT, in what direction?

In a direction that is correctly Business/Economy Engineered!!!!

We need to understand some deficiencies in the immensely valuable work & proposals put forward by JS so that optimal advantage can be taken with all, and any, funds – which are limited funds.

We also need to understand that the recently created global awareness of poverty is also a limited opportunity; we need to take correct advantage of this awareness.

Be Smart - Identify the problem, Understand the problem, Solve the problem, Implement the solution

Businesses/Economies gain by implementing correctly business engineered solutions

South Africa is at the forefront of dealing with social/justice & financial/economy problems that are affecting the world because SA’s divide ratio of 1:8 is higher than the global average of 1:5 (Have’s/Have Not’s).

The most difficult phase of a change process is recognising that a problem exists.

But, correctly identifying a problem is critical to achieving successful outcomes. Working positively through this phase brings significant results.

(e.g. Ronald Reagan’s first term of office saw massive increase in unemployment because he did not recognise, identify, the defective Interest Rate mechanism, as an economy control device, that was destroying the US economy and the rest of the world. World leaders are only now beginning to understand due to groundbreaking research by CDADD.

JS repeatedly compares the way he undertakes his work to that of a doctor. It is important that this comparative is retained in understanding the next point.

The moment a doctor becomes emotionally involved with the patient the patient is at extreme risk. The same applies to the patient called “Poverty”. Only rational, clinical, solutions will win the day on a macro level.

The first & second phases are then to identify & understand the causal problems, the third & fourth phases are to develop and implement symptoms; & with social problems to counsel the patients.

The Scale

If we loosely consider the negative end of a scale is Poverty and observed by its absence of good, then the positive end can perhaps be viewed as Growth and observed by good being achieved; not its absolute value but its rate of growth. Ideal growth is when both current (Consumption) & future (Saving) needs are catered for.

For sustainability it is necessary that a stable environment exists & for the long term, otherwise the Future (Saving) component will be eroded in real terms, and the rate of accumulation of this component will be eroded because of increased cost of Current (Consumption) needs.

Global Instability is therefore a primary focus – the need to identify & understand the causal factors that bring this about.

Developing & Implementing of solutions therefore reduce instability, increase stability, which creates a more level playing field in the “game of life”. This indirectly addresses the symptom of poverty.

We need a war plan to address directly the causal issues of poverty, as well as to counsel poverty itself, but first we must correctly understand what poverty is, and is not.

Defining poverty, as a first pass:

• Poverty, as a symptom, is a mindset issue.

• It derives from the absence, or low levels, of values.

• The absence, or low level, of values derives from prolonged decay of values.

• The decay in values derives from repeatedly “losing”, or not being able to “play”, in the game of life.

• The repeated losing, or inability to play, in the game of life derives from the rigged, unfair, rules that all people were/are forced to play with.

• The unfair rules are derived from historicals of immense complexity.

In further attempting to define poverty we need to understand what poverty is not.

• Poverty is not determined by a financial based calculation that falls below a pre-determined level

• Poverty is not determined by a financial based measure at all.

• Poverty is not the presence of hope

• Poverty is not the presence of moderate values

• Poverty is not the presence of achievable, sincere, dreams & desires.

• Poverty is not the presence of tidy communities

Examples may help, to clarify the defining of poverty.

• A tidy, orderly, squatter camp of negligible income that is working towards sincere dreams is wealthy

• An untidy, disorderly, poor suburban residential area is impoverished.

• A matriculated person sitting forlornly in a township is impoverished

• A matriculated person sitting in a squatter camp studying, regardless, is wealthy

• Poverty is a mindset issue; it is not a financial based measure.

• People with financial wealth with no dreams & desires are impoverished.

• People with no financial wealth at all can become wealthy, un-impoverished; virtually overnight, by mindset shifts.

• Poverty was entirely absent from Ghandi, he was immensely wealthy spiritually & personally but had not financial wealth.

Disparity

As a first pass in defining disparity:

Disparity is a lesser or reduced state of being, resulting from unfair rules, than would otherwise exist and for the same effort of inputs.

To help clarify disparity:

• The centuries old conflict in Northern Ireland was not due to British rule, it was due to disparity

• The Apartheid conflict in South Africa was not due to Nationalist rule, it was due to disparity

• The collapse of Zimbabwe was not due to an oppressive Mugabe, it was due to disparity.

Unfair Rules

An unfair rule is one which favours one entity above another entity and without just cause.

Unfair rules exist in all spheres of society, and at all levels. It is necessary to identify & solve each of them.

Most conflicts, globally, have derived from the oppression of one group by another, and in the oppressing of one group they have had unfair rules placed upon them, which denied equality of opportunities, which are disparities.

Simply stated, the majority of people are generally disinterested in political issues as long as they are able to develop equally within a free & safe environment. Even if that free & safe environment providing equality of opportunity were provided by Martians then people generally would still be happy.

But when disparity occurs, for whatever reason, then disharmony follows.

In telecon (Jan 2005) with Tim Pat Coogan (the research authority on the IRA) he confirmed this view – that Northern Ireland would not have been an issue if Catholics had the same freedoms & equality as had Protestants; but they didn’t, and it was plain to see. Consequently:- unfair rules, disparity, despair, poverty, frustration, anger and decades of destruction.

Because focus is steered by the media toward the political nature of historical oppressions, which have generally been forcefully imposed, other forms of disparities have been entirely overlooked.

In fact attention being diverted to hot conflicts has been a “sell” point for the argument (incorrect) that 1^st World systems are sound, despite the fact that the rules engaged by 1^st Worlds are causal of greater disparities in 3^rd Worlds even without forceful oppression.

Multi-problem war plan

Addressing poverty, a symptom, per se is therefore the wrong focus. The war on poverty is won by addressing holistically the causal factors of Global Instability; the unfair rules.

It is necessary then to identify & understand the unfair rules that cause disparity that creates a poverty mindset – then to develop & implement solutions. We need a multi-pronged war plan that addresses each of the specific causal problems identified. Addressing the poverty symptom alone will result in failure.

It is stressed that if extraneous issues are focussed upon then the “game” of eradicating poverty will be lost. This point cannot be overemphasised, this is stated from a common sense engineering intuition – once one understands the problems from a “systems & controls” perspective.

Specific research by CDADD has identified & addressed certain important issues such as:

• Interest Rate mechanism as an economy control device is destructive and …

• …. reduces Economic Momentum

• various unfair & fraudulent themes & schemes with the FinServInd

• various unfair trading practices within business & financial markets

• for further discussion specific papers can be viewed at www.cdadd.com., e.g. see:

  • Interest Rates & Loans

  • Economic Momentum

  • Annuities in Retirement

  • SA Bonds Market – churning & siphoning

  • moneygod or God

Maslow’s hierarchy of needs

Abraham Maslow derived a conceptual model to aid in understanding man’s desire to achieve higher levels of needs. This is depicted as a pyramid; with the lowest (air, food, water) band level at the bottom, then at successive higher levels come needs for safety, belonging, status, and self-actualisation as the highest level. These needs are met when a person experiences a sense of personal growth and self-fulfilment by accomplishing a challenging goal.

David McClelland proposes that people have three basic needs, the needs for achievement, power and affiliation.

Whatever the theory, managers must recognise the needs of employees

(the aforegoing loosely précised from Steven Silberger’s “The 10-Day MBA”)

In a similar way it is important, as previously proposed, that we do not pre-suppose that people need expensive 1^st World infrastructures to attain the higher levels of needs; i.e. self-actualisation.

It is proposed that a person living in a cardboard box and who is personally achieving a self-actualisation goal of building a rudimentary mud hut, and as an interim phase of developing towards a higher goal of a small brick house, is considerably more wealthy than 1^st World FinServInd executives rumbled in fraud scams. This point cannot be overemphasised.

Consequently it is proposed that hi-tech is not the first phase solution for addressing the symptom of poverty.

For example, within South Africa cell-phones are responsible for soaking up badly needed disposable income; along with gambling & lotto.

The marketing drives by cell-phone companies are deceptive in their entirety. These companies have shown their immoral disregard for poor people to the extent of increasing impoverishment levels.

One example is their immoral “trap” of switching callers automatically, without the caller’s consent, to voicemail thus incurring an automatic, non-consensual, charge for the caller.

Despite MTN & Vodacom being warned of this & other issues by CDADD some eight years ago these cell companies continue their disgraceful practices.

It is contended that much of the hi-tech drives into impoverished areas are causal of further impoverishment. Alternatively stated the marginal gains by a few are minuscule compared to the massive losses to the majority.

This is an example of where 3^rd World regional protections against 1^st World raiders are badly needed.

The key point about understanding the symptom called poverty is, it is contended, that an over-acceleration, or premature upliftment, from one level of needs to a higher and non-sequential level is likely to cause impoverishment by failure and collapse back to a lower level; not alleviate it.

Achieving the self-actualisation level successfully is by progressive & sequential development through each of the lower levels.

This is intuitive.

An example: It was recently reported that feelings of despair are prevalent within RDP housing communities. i.e. people that had received government houses still were impoverished because they had been accelerated above lower needs levels without self achievement; they had simply received a freebie handout.

Counselling the Patients (poverty)

It is important to recognise that the greatest help that can be given to any person/community/nation is to revive the will/spirit/drive to help themselves. Billions of aid can be pumped into a problem region but if no spirit exists the money is wasted.

I disagree strongly with JS’s approach of first providing infrastructure to start the process. Man has been around for millennia without cars, planes, trains, cell phones etc. – it is incorrect to believe that huge cash injections into these are a pre-requisite.

It is far more important to give counselling to show impoverished regions how to start “winning” in their own environment, but which needs to be protected.

Additional protections would also flow automatically as a result of the 1^st World addressing underlying disparity causal problems within their own countries.

Kick start the spirit, the will, the drive, provide protections, develop & implement fair rules relevant to their community – then, all else follows.

These include:

1. Pre-planning development areas, creating of new homes/communities.

2. Develop community farming & local business regions.

3. Declaring protected zones/communities

4. External policing

5. Internal policing by community, with assistance by External Police upon request only.

6. Empower communities by allowing them to peacefully disempower intimidators.

7. Build first homes with local materials as much as possible – branches, thatching, mud, - limit reliance on imported materials so as to reduce costs. Remember this is a first phase, a temporary one. Developing the awareness that impoverished can look forward to upgrading is an incentive to strive for success.

8. Develop self-sustainability in food production.

9. Develop inter-community assistance (global) to buffer against natural hazards. i.e. agreed assistance during crop failures.

10. Development of own community structures including own justice system for limited crimes.

11. By this point 1^st World will have greater confidence & willingness to inject funds, also restructured 1^st World will have funds sourced through rewards from savings/gains in FinServInd & Interest Rate mechanism.

12. 1^st World assistance in health care.

13. 1^st World teams (4 man?) to adopt a community and live within the community on regular intervals – educating, advising, solving, etc. BUT, NOT DOING, that MUST be done by the community so as to reinforce drive to win.

    1. Development & Funding of these teams will be the most valuable of all investments into the fight.

    2. Teams should be recently graduated tech & varsity students not more than 2 years past graduation.

    3. Multi skilled – one person in each of the following skills disciplines - Engineering, Medical, Law, Other

    4. Methods for team creation, training, etc. are issues of extreme importance.

    5. Basic keep + equipment + pocket money + graded reward for success (on completion of tour of duty)

14. Educating of children – this is where 1^st World should provide full facilities on a boarding school basis. Establish regional boarding schools as appropriate, full health care & facilities as seen in 1^st Worlds. Education in basic life skills will diffuse back into the communities during school holidays, and reinforce efforts by 1^st World teams.

15. 1^st World teams in poor urban/suburban areas to uplift self respect – national/international drive. Eradicate litter, tidy streets, community zones & structures, Internal Policing & Justice for limited crimes, External Policing.

16. 1^st World University teams to adopt specific region for intensive analysis of resources, viabilities etc. – feedback to ground teams. Much research can be done for free as part of structured undergraduate projects.

UNCTAD – World Investment Report 2005 (Transnational Corporations and the Internationalisation of R&D)

(UNCTAD = United Nations Conference on Trade and Development)

Deficiencies in Business/Economy Engineering is causing wrong directions to be taken

The above report was released in conjunction with a presentation by Chamsa (Chamber of Commerce & Industry of South Africa) at Rosebank’s Park Hyatt Hotel on Thursday September 29, 2005. Along with other local presenters a satellite link to Geneva allowed UNCTAD’s Head: Investment Analysis, Anne Miroux, to present an overview of the WIR report.

It is important to note that the WIR report contains immense value for creating understanding of economies globally & the global economy. But from the presentations it reconfirmed that Business/Economy Engineering is entirely absent, and consequently that policy directions for the war on poverty were steering the world in the wrong direction.

Important issues of concern that were immediately picked up:

• The repeating of the need for an open global economy

• Export led growth from developing countries

• Singapore being promoted as an important region for development purposes.

• Foreign Direct Investments (Outward) from developing countries makes no sense

These points alone confirm that from a “systems & controls” perspective that the war on poverty, as it is currently framed, is doomed to failure.

It cannot be sustained on the bases proposed.

The immediate impression that came to mind during the presentation was that seeds had been sown, some time past, to steer the UN on a laudable initiative, but sold with high sales-gloss that had ulterior motives.

Key points such as the call for an open global economy (without protections), use of tax havens for round-tripping, FDI outflows from developing regions, immediately raise warning bells.

Open global economy – unrealistic, manipulated

Clearly there are forces at work to drive the world towards open global economy (without appropriate protections) as can clearly be seen by the UN’s immensely valuable work to address poverty. But the truth is that the sincere people within UN that are working hard to address poverty are not seeing the manipulations by a minority financially powerful, and who are gaining by this irrational call for an open global economy without appropriate systems & controls to protect each economy, because ….

…. Export led growth is unsustainable

One only needs look at the distribution of export led trading receipts to see that the bulk goes to the international player, very little goes to the 3^rd World worker, and 1^st World economies are damaged by offshore price wars.

The vast majority lose massively, and the minority financially powerful gain the cream. A poorly designed system!

Singapore

As mentioned before is a tax haven & sweat-shop broking joint, it is a pinhead sized island on the tip of the Malaysian peninsula.

Foreign Direct Investments

Consider: that you are a banker and a businessman approached you for a phased loan of $1M per year for 5 years to develop R&D and promote a particular widget. Your bank surveys the business and agrees to the loan. After year 1 the call for phase 2 comes in, but upon a further survey you discover that of the $1M phase 1 loan that 20% has been siphoned out of the company to fund some other business venture.

Are you as a banker going to release the second $1M?

Of course you’re not!

So why are developing countries having FDI (outflows) siphoned from their economies?

Why are secretive tax havens used for this? For round-tripping!

FDI for Developing economies in 2004 were Inflows = $233B, Outflows = $83B. The Outflows account for 1/3^rd of Inflows, a HUGE amount of siphoning.

Would you as a shareholder of a Transnational corporate not be concerned about profits being siphoned out of the corporate accounts

JS (End of Poverty-page 305) gives the top 400 Highest Income Americans for the year 2000 as $69B; siphoning of $83B from developing countries is 30% higher than the 400 highest incomes, and with it into a secretive tax haven is a significant sweetener for any global player.

What then is behind this call for an open global economy (without protections) with all its massively destructive implications?

Important issues are being overlooked in the UN’s correct initiative to address the poverty symptom, but the reality is that the UN as a massive organisation, is itself caught up in “corporate” inefficiencies which are exacerbated by its diversity in cultures, nation employees, global spread, etc.

A serious rethink is needed – the WIR report contains valuable information that is not being correctly analysed. Hence current thinking is not in the right direction needed to address the poverty symptom, or its causal problems.

The current direction is doomed to fail – and much money & effort will be wasted.

It requires sound Business/Economy Engineered solutions.

It is also important to note that to achieve a fail-safe world economy that:

• it is not necessary to prove allegations/concerns of wrong doings, rather it is necessary for any alleged wrong doer to transparently show that there are no irregularities.

• The corollary to this is that if corporates can enter homes & lives with marketing deceptions then societies can protect theirselves by freely communicating alternative views – defamation protections need to be rethought.

• Any inappropriate system or control must by necessity be redesigned to achieve a fail-safe condition.

Section 2:

Discussions on specific points:-

Self-Actualisation

From the opening sections it becomes clear that poverty has previously been incorrectly defined.

In understanding its true nature, and also disparity, and unfair rules, it is possible to see that the financial needs for eradicating the symptom of poverty are less than JS has calculated.

To make significant inroads it is not necessary to wait for 1^st Worlds to increase MDG funding, the 3^rd Worlds and Emerging 3^rd Worlds have the wherewithal to kick-start themselves.

BUT, it requires those governments to be HONEST.

The UN needs to address/identify each & every transgression, no matter how small.

Protected Regions

It is important that we 1^st Worlders do not presuppose that 3^rd Worlders by necessity want to live a fully integrated 1^st World life.

It is also important to recognise that an open 1^st World type economy within 3^rd Worlds would be entirely destructive, and would counter, any fight against poverty.

The people within impoverished regions would not be able to protect themselves from exploitation.

The forms of exploitation, such as cheap Asian clothing, are being incorrectly viewed as advancing impoverished communities; it is not, it is simply maintaining slave labour into a never-never entrapment.

That is why it is recommended that Protected Regions be established and that countries/regions be allowed to develop under their own drive, at their own pace, and in their own direction & degree, with appropriate skills inputs. There are plenty of alternative places for those wishing to move into the 1^st World stream can relocate to.

John Steinbeck’s “The Pearl” illustrates clearly the disruptive & destructive forces that can flow within a developing community when the rate of development amongst sub-groups becomes too unbalanced.

Thought needs to be given to methods in which those who are more advanced, are at higher needs-levels, can be guided to constructively engage at the higher level, and possibly in a different region.

Awareness of these issues needs to be created within communities so that they can correctly identify & manage the issues themselves.

Lessons from South Africa’s housing initiatives.

The circumstances concerning RDP, low cost, housing areas should be monitored – it is contended that well intentioned, but wrongly directed, housing initiatives have resulted in mind numbing environments that are becoming breeding grounds for intense despair.

Regimented rows of boxes run for kilometres. Little, or no, thought has been applied to creating a healthy social environment & atmosphere.

Attention needs to be given to this before despair & frustration breeds.

Although there is now a change to integrated housing developments, i.e. low cost houses developed amongst middle & upper income areas, it is open to exploitation.

The owners of the low cost houses are likely to be tempted into accepting attractive, but ultimately lower value, purchase offers for their houses which will be demolished to make way for higher income earners.

The original owner will simply be back in the same position – forced out of the “game of life”, and in despair having drunk his house away.

It is not suggested, and it certainly is not hoped, that this integrated approach will not work but there are real economic & social forces at work because of the parity imbalance (disparity).

It needs to be monitored closely and urgent action taken if & when destructive forces are identified. Actions need to be far swifter than occurred in the Jaftha v Schoeman and Van Rooyen v Stoltz Constitutional Court issue (CCT 74/03 – see under Judgements at www.concourt.gov.za). This matter occurred in the sleepy Karoo town of Prince Albert in the Western Cape, the dynamics in a fast moving city such as Johannesburg can, and most likely will, be entirely different.

It is only possible to integrate so many people into higher income level areas before such an initiative fails. What the “correct” ratio is nobody knows. But intuitively, a ratio of 5 low/no income households to 1 income earner household will surely fail.

The over-regulation of the domestic worker sector will also act as a deterrent for people who might be willing to employ others within integrated developments.

The overwhelming evidence that does come from South Africa’s developments in the past 11 years, within a Constitutional framework, is that the same difficulties are being experienced as occurred in Zimbabwe; and on a larger scale.

• Government & Corporate governance are not of high standards.

• Government do not act honestly.

• Corporations do not act honestly.

As a proposal – thought should be given to initiating self-build town developments – teams assigned to teach & guide people to build their own houses. This approach would turn a freebie hand-out scenario into a large scale employment exercise.

It kick-starts the climb up the needs pyramid, it forms an educational base, an employment base, a self-actualisation base, a community integration base, etc.

BUT, it requires careful thought & planning because it is a fully integrated approach, it is not merely a case of builders moving onto a site and building houses, it is a fully integrated community development approach.

This approach should be considered within farming regions and as drawcards away from over populated cities and with farming & other employment initiatives the focal point of the development.

Trade Protections for 1^st & 3^rd worlds (assume that 2^nd & 4^th are no longer an issue).

If the focus is toward fat-cats controlling these tradings then the impact of development initiatives upon 3^rd Worlds will be negligible. The examples quoted by JS confirm this. It is destructive to both 1^st & 3^rd Worlds in that 1^st World employment is reduced at the gain of 3^rd World labour at slave prices, and by producing bulk profits to fat-cats.

• Any assisted trade between 1^st & 3^rd Worlds must be fully transparent & regulated for protection purposes.

• Trade quotas at “normal retail” price-protected levels that fit each particular retail market should be implemented.

• The use of non-transparent tax havens, or of any “round-tripping” of funds, must be entirely discarded.

• All exported goods & services must be regulated, at least within 1^st Worlds.

• All players in the full supply chain must be price protected,

• All goods & services must be label identified including names of factories, distributors, etc and contact details.

• Banks can play an important role in executing payments to ensure that fat-cats are disempowered.

• 1st Worlds also need to be protected from fat-cats that retrench 1^st Worlders simply to take up cheap labour & increase their own profits at every one else’s expense.

• Establish 3^rd World brand names, disallow any 1^st World brand names being manufactured in 3^rd Worlds – protects both 1^st & 3^rd.

• Regulated payments by banks throughout the entire supply chain for goods & services will ensure that all players receive a fair price protected share.

• The corollary to this is that by cutting out fat-cat bulk profits means that for the same wage to 3rd Worlders that this is achieved at a lower volume, thus protecting in turn 1^st World markets. A WIN/WIN. (This is a simple “P x Q” management issue so as to achieve optimal development benefits into 3^rd Worlds)

• Full transparency of 3^rd World export and 1^st World import mechanisms will allow both 1^st & 3^rd Worlds to monitor pricing & payment flows throughout the entire supply chain, which provides self policing.

Economy Controls & Protections to minimise Disparity

Some of the Causal Problems that have been identified and in which understanding has been developed are:

1. Interest Rate mechanism as an economy control device – this needs to be changed globally to rational multi-component devices (see CDADD’s research “Interest Rates”).

   1. It is important to note that the current interest rate levels in 1^st Worlds (as of September 2005) are totally out of all realms of rational control levels.

   2. It is therefore necessary that 1^st Worlds will have to gradually increase their interest rates to bring them into line with each of the necessary & identified control components (vis: inflation, risk, profit, levy fund components). They have no choice but to increase their rates to sensible levels.

   3. In doing this it will by necessity cause interim Global Instability; BUT this is inevitable if rational controls are to be implemented.

   4. The transient effect of this is that it will unavoidably affect both 1^st & 3^rd Worlds negatively, and 3^rd Worlds severely so. 1^st Worlds should be conscious of this & take as much appropriate action as possible in the interim phase.

   5. The severe ripple effect into 3^rd Worlds must be carefully managed. (see Interest Rates & Loans 4 – Implementation)

2. Corollary to a rational Interest Rate mechanism will be that banks are forced to provide efficient & fairly priced services.

   1. multi-bank retail outlets

   2. focussed services

   3. by necessity providing social development services at fair rates

3. Forex & trading

   1. deter speculative trading that destroys economies. As can be seen by CDADD’s article “SA Bond Markets”, churning & siphoning is a serious problem that is highly destructive to economies, and provides no benefits to nations – only to fat-cats.

   2. focus on constructive trading in which a derived demand for forex is justified

4. Corporate dictators/bullies/crooks – these need to be identified. If corporates can exude marketing lies & deception into our homes then freedom of expression must protect us from freely warning each other of corporate abuses.

5. Export led growth (for 3^rd Worlds) – must be regulated & protected throughout supply chain for all goods & services. Disempower the Fat-Cats, empower the impoverished.

6. The Corollary to addressing these causal problems is that rules become fair/er which automatically provide inherent protections for 3^rd Worlds.

7. Creation of National/International Development Fund – injections from the Economy Control component, savings from FinServInd, and Development Levy on all loans/borrowings by 1^st Worlds.

8. Develop International Law to allow International Court to issue warrants of arrest for UN Sheriff to execute: for defined violations, including intimidation.

These need to be implemented within 1^st Worlds which in turn will automatically reduce exploitative speculations into 3^rd Worlds.

(For issues such as Interest Rate, Forex & Trading, FinServInd, Corporate raiding, protections – see CDADD’s papers on Interest Rates, FinServInd, SA Bonds Markets, etc. for full discussions)

Funding 1 – changing mindsets from Begging-bowl to Reward on Savings

The historic begging-bowl approach to solving social problems is by its very nature impoverishing – it has a negative connotation of failure before even starting.

We need to change to a positive mindset, achieving of efficiencies that create SAVINGS/GAINS from which REWARDS are paid, and which can flow into a Development Fund.

A brief consideration of the SAVINGS that can flow from CDADD’s sound redesign of Interest Rate control, from the current destructive model to a multi-component model, shows that a fair reward from the savings would achieve more than sufficient funding for UN’s MDG.

Consider that there are 0B9 Have’s in the world each with an average personal debt of $5000 and that total Corporate debt accounts for 5 times the personal debt. This gives (0B9 x $5K = $4T5) x (5 + 1) = $27T0 total global debt.

Therefore each 1% interest charge yields $0T27 per year, or $270B per year = a real saving for each 1% interest rate shift that is not put into effect because of implementing the redesigned multi-component model. The SAVINGS would be seen in consumer’s pockets, it would remain there and not be sucked out and into the coffers of minority banks.

Therefore with a 50/50 split of these SAVINGS being paid as a reward it would achieve the bulk of JS’s budgeted $145B per year.

Add to this a Development Fund levy of say 0.25% pa on all debts

Add to this Economy Control component inflows

Add to this a Development Fund levy on all trades between 1^st & 3^rd Worlds of say 0.5%

Add to this a REWARD from SAVINGS generated from CDADD’s research into investment/pension frauds.

It is contended that the above figures are highly conservative.

The point is that it is better to change focus from a begging bowl approach to one of creating savings through achieving greater efficiencies within the 1^st World. Fair reward rewards paid for value given achieves development funds AND greater stability within economies.

NOTES:

• The important point about redesigning controls & protections is so as to achieve Economy stability, not to aim for any particular target such as a particular exchange rate, or interest rate, etc.

• The fair rewards due to CDADD for research for:

  • exposing the frauds within the FinServInd,

  • the redesign of Interest Rate as a control device, etc.

  • are hereby, in the main, given to these respective National/International funds – but a reasonable reward is still claimed for in my personal capacity. (I respectfully call upon the Secretary General of the UN, Kofi Anan, to apply moral pressure for both these to be done.)

Funding 2 – fighting wars intelligently

JS states at page 329 that in 2004 the US spent $450B in the military budget compared to $15B on foreign assistance.

The reason that the Allies won WWII was because they fought the war intelligently by adequate funding of Intelligence and co-operation between each nations Intelligence sections (see “Most Secret War” RV Jones – ISBN 0-340-24169-1).

The nature of today’s wars are entirely different to those 60 years ago – it means that they must be fought intelligently with greater use of Intelligence.

It makes sense therefore for Military Intelligence to constructively engage with UN, NGO, Civilian & other Intelligence bodies that are operating at ground level so as to positively counter the negative mindsets within the world, the extremists and those being swayed by them.

Intelligence activities falls under Military budgets. It makes sense then that fair portion of military budgets be used to fight wars intelligently by supporting initiatives that aim to prevent them in the first place.

Economic Momentum

In determining Economic Momentum attention must be paid to the nature of the particular economy being assessed; 1^st World measures must be used with extreme caution.

The measures for economic wellbeing & momentum within 1^st Worlds are entirely unsuitable for 3^rd Worlds. This is why it is stated that the MDG goal of eradicating poverty is incorrectly stated. Inflation alone will cause the currently defined target ($1, $2, etc.) to be achieved and without any real benefit to the impoverished – it clearly is an incorrect measure, and an incorrectly defined goal.

Measurements within 1^st Worlds are well established and evolving on an ongoing basis. Addressing the unfair rules will cause other measures to evolve and greater economy stability to be achieved.

But measurements within 3^rd Worlds will be more difficult, and it is proposed that not too much effort should be given to measurements in financial terms but more to assessing the greater sense of wellbeing amongst communities. Too much focus on financial measures will tend to steer thoughts away from the truly necessary solutions.

National/International Development Fund

A fund within & regulated by UN Secretary-General

Injections into such Funds can be achieved by:

• exacting a levy on national Interest Rate mechanisms,

• receipts from the Economy Control component as & when Central Banks add onto the Interest Rate.

• Exacting a levy on all 3rd World exports to 1^st Worlds, achieved by reducing & redistributing the significant fat-cat components to all players fairly. Note: this is intended as a protection measure not as a control per se.

• Reward due & owing by 1^st Worlds resulting from CDADD’s research.

• Part rewards for Intellectual Property prizes - ongoing

• From other creative measures.

Honesty

Moral pressure must be applied to all nations to engage in honest & transparent business/economy practices.

Although concepts such as Corporate Governance have been developed they are dishonestly avoided at all costs by corporates (& governments).

Developmental Intellectual Property must be correctly rewarded on a “fair reward for value given” basis.

As JS correctly proposes, all patents, copyrights, research, etc., that are of fundamental importance to societal developments should be accessible to all nations/persons; safety aspects obviously being important & necessary considerations.

Fair rewards to the inventors/researchers/discoverers should be funded from National Governments/International Development Funds.

Corporate Dictators

1^st World corporate dictators have evolved partly through cleverly devised methods of empowering themselves through the pooling of collective financial wealth that belongs ultimately to the majority. In turn they have established unfair rules that allow them to churn & siphon large portions of that wealth into their own coffers.

Both the residual wealth & the churned & siphoned wealth of the majority are used by the minority dictators to maintain economy control over the majority.

These corporate dictators need to be disempowered through redesigned rules that can be seen as fair and which create a more level playing field.

Political Dictators

The usual response by governments to Corporate Dictators is to engage them in their own game and become Dictators themselves. SA is entrenched in that position & government refuse to engage honestly with those bringing solutions that would disempower corporate dictators..

Difficulties that need to be addressed (problems themselves) include:-

• Socio-Economic disparities - unfair rules, unfair judges, uneven playing fields

• Denominational polarization within Christian churches, dysfunctionality within denominations, money ruling.

• Fears harboured because of misunderstandings between groups.

• Poverty related symptoms unfairly & incorrectly tagged to particular groups

• Judiciary delaying Constitutional reforms

• Failure by government cabinet executives in honouring undertakings - increases distrust and impedes progress & reform.

• Trade Unions are fighting a 21^st Century problem with outdated mid-20th Century “weapons” – 21^st Century SMART socio-economic “weapons” are needed to raise Trade Union credibility & effectiveness in a constructive way

• These difficulties are all exacerbated by powerful government & corporate executives who pursue narrow self-interests to the exclusion of others.

The current approach by SA government is to address these difficulties head-on.

Examples:

• Government attempts to change the Constitution - under the guise of “streamlining” the judiciary.

• Government’s concerns about the judiciary & corporate world are real & valid but solutions need to be correctly developed & directed, and constructive.

• Government initiating a government pension plan - to oppose the plunderings by financial institutions.

These will not work – e.g. Government cannot fly SAA how then competing in the FinServInd with private sector money but with no experience, or tampering with judiciary when the Magistracy is rife with incompetence & corruption?

Social/Justice systems

This is an important area that requires protection and guidance.

It is a fallacy to argue that 1^st World type justice systems work – they do not. South Africa’s Constitution was emasculated at birth and the intellectual doors of the justice system firmly closed – justice is inaccessible in South Africa.

It is important to develop meaningful justice systems within targeted protected regions.

Without in any way getting “holy”; but looking at the issue from a clinical, engineering, standpoint, the Bible gives adequate instruction on how this should be done. Other loving-faiths have similar approaches.

• Deuteronomy 1:12-17; Moses explains what to do in judging disputes.

• Matthew 18:15-17; Jesus gives added input for dispute resolution

• 1 Corinthians 6:1-4; Apostle Paul deals with lawsuits amongst Christians

• Philemon – an example of dispute resolution, from a distance, and in a life threatening situation

All other loving-faiths have similar teachings, and also acknowledge the importance of teachings from the Bible.

These processes are common-sense.

It is of crucial importance to note that Paul in 1Cor6 advises the “least esteemed” be appointed to judge; this creates a mechanism that prevents power base building, it is in itself a powerful feedback mechanism.

Churches, universally, have ignored, virtually entirely, these particular processes; and for power politicking reasons. The ignoring of these processes is, it is contended, a key cause of decline in church membership. People sense the insincerity, the incompleteness, the lack of purpose, the lack of functionality, within churches. It stems from these processes being ignored.

The appointing of “least esteemed” is a powerful feedback mechanism (from a systems control perspective). It effectively disempowers power politickers & manipulators.

Clear thought should be given to implementing these kinds of processes, and the monitoring of, for feedback purposes.

It is further stressed that should any church wish to enter a protected region then that church should be compelled to clearly demonstrate that they fully support & can demonstrate that they encourage & have experience in engaging these crucially important dispute resolution processes.

It is by far better to have these processes correctly implemented upfront than, at a later stage, have to disempower some person that has politicked an entrenched position, with all the ensuing politicking & disruptions that will definitely flow.

New initiatives, including by Pope John Paul II, to reach across divides have begun - reinforced recently after Pope Benedict’s election.

What is also encouraging is that church newspapers report that King Abdullah II of Jordan has called for a return to faith for Muslims, to take possession back from those who have distorted it with violence over the past 100 years.

On the surface it appears that it is an entirely polarised position to that experienced in the Christian churches in which the christian extremists have distorted the Christian faith into total passivity, into spiritism (James 2: Faith, without works, is dead”).

But, both Muslim & Christian faiths are dead because of extremist positions that are entirely similar in their causal nature – i.e. extremist passivity within the faiths that breed frustration & anger without.

The reason, it is contended, that the Muslim faith has been perceived to be radical is because, in the main, the Muslim faith has experienced impoverishment imposed upon it by 1^st Worlds, through unfair rules, creating disparity, creating despair, creating poverty, and breeding extremist violence.

All other loving-faiths are experiencing similar “dead”-ness of faith, but those in the 1^st World are not experiencing severe poverty. There is thus an incorrect correlation drawn between “faith and violence”, just as with the incorrect correlation between “black and crime”. The correct correlation is poverty and black, or particular faith – and the correlation has historical abuse reasons for the existence of the correlation.

Had even one of the loving-faiths instilled a balanced & active faith then it would have defeated the extremisms in all other loving-faiths.

It creates an interesting task for resolving this, but an important opportunity has been created by King Abdullah, he has publicly joined the call for a return to faith, which like all other loving-faiths calls for tolerance, understanding, love, peace, etc. between & amongst the different loving-faiths.

But it is important to remember that the extremists were bred by the wrongdoings (passivity) of the non-violent (passive) extremists – it means that careful thought must be given to solving the dilemma.

The war, for those in faith, is towards those that are likely to be influenced by extremisms. The only effective way of doing that is to address the poverty symptom, which means addressing the disparity, which means addressing the unfair rules, which means addressing the minority financially powerful who also have rule over the churches, temples, mosques, etc. – by using God’s peaceful authority & processes.

At a macro-level, within SA, there is a wide range of races, cultures, religions – part of the solution to our problems lies in understanding these groups. But, without exception, each group has difficulty with functionality within themselves. It becomes a dual issue to address.

Conspiracy Theories?

It does not require too close an examination of global data, available from UN & other reliable sources, to realise that global players, manipulating markets, do exist. Nor to realise that their manipulations are highly destructive.

The usual counter-argument to any evidence that supports irregularities is that the person presenting is raising another conspiracy theory – the immediate purpose of such counter-argument being to ridicule the presenter of such evidence. This is generally an effective tool because the presenter is usually a person not experienced to media exposure; ridicule acts as a strong deterrent.

South Africa is continually experiencing this form of ridicule. SA’s main TV & radio (government radio is the only national based station), as well as other local radio stations silence voices that raise real issues. Talk shows only allow superficial discussions before a person is cut off.

The press & business mags also refuse to print the truth regarding corrupt/abusive financial power players despite concrete evidence being presented to them.

The run-on-the-Rand, fraud within FinServInd, Corporate raids into SA (such as Barclays’), engineered collapses of companies, is proof positive that minority players are conspiring for their own advantage, and at the expense of society as a whole.

This applies globally as well. There are ample evidences to show that Corporate/Minority Player greed is at the core of global manipulations.

The positions of these players are well entrenched to the extent that legislation legalises their otherwise illegal manipulations. But legislation cannot protect them entirely, there is usually some immoral & unlawful action that is necessary to fulfil transactions no matter how well it has been legalised through purchased legislation.

But even when unlawful actions are exposed the corrupt players are able to buy police, prosecutors, judges, to obtain protection from prosecution, or acquittals, or “get out of jail free” cards.

South Africa is no exception to this, much of the FinServInd frauds have occurred exactly because complex legislation has created what appears on the surface a sound industry but which has been exposed by CDADD to be entirely corrupt & rotten. And the authorities do not investigate.

The only way to effectively disempower these Minority Players is to engage fair rules, and to insist that the appropriate authorities properly investigate the frauds when they are exposed.

Self-policing is therefore an effective weapon for 3^rd Worlds as they begin to emerge into global economic activity – it is better to implement such measures upfront rather than later.

Poverty eradication within 1^st Worlds

By implementing fairer rules within 1^st Worlds disparity, despair, and resultant poverty will automatically be diminished.

However poverty counselling will still be necessary.

1^st World Teams will need to integrate into these impoverished areas with area specific initiatives that will kick-start, uplift, self-actualisation from the appropriate level for each area.

Will the UN shift their mindset?

The UN is massive & globally spread, it is not difficult to see that a mindset shift is no easy task to effect but it is necessary that they do if the initiative – “The End of Poverty” – is to be realised. If mindsets do not shift, rationally so, then the prognosis is that this initiative will be wasted. Along with all the funding that is consumed.

Jeffrey Sachs has called for injections of 0.7% of GDP from 1^st Worlds to fund this war. It has been shown herein that the war has to be fought on a global basis, and that it can be done intelligently by creating funding from rewards flowing from savings flowing from efficiency gains.

CDADD’s IP, in the main, has been given to UN for MDG funding requirements.

Whether the UN take up these proposal’s herein remains to be seen, but it is only fair that if the UN are calling for 0.7% of 1^st World GDP that a call for a fair reward to myself, personally, is a reasonable one; it would allow for further research & implementation initiatives in South Africa.

It is important that independent researchers/developers be funded because it allows & creates free thinking uninhibited by politicking, social, & other pressures inherent within large organisations.

The UN Secretary General, Kofi Anan, is therefore requested to:

• urge State President Thabo Mbeki to correctly reward the IP value presented to SA government, or

• to fund the reward from the UN itself in exchange for full rights to CDADD’s IP

BUT, in return CDADD’s IP value, when implemented, significantly reduces global instability, produces real savings/gains, and increases hope – massive IP value at a small cost.

Conclusion:

It is intuitive that poverty, a symptom, is a mindset issue that derives from despair, that derives from disparity, that derives from unfair rules, uneven playing field, unfair referees, that cause people to lose in the game of life.

It is intuitive that powerful players manipulate the global & local economies, destructively so for the majority – it is necessary to disempower these players by developing sound Business/Economy Engineered rules that are fair.

It is intuitive that, concurrently, patients (poverty) need to be counselled.

It is intuitive that the call for an open global economy (without protections) has sinister origins – it requires a rethink to put a sound global economy with appropriate protections into place.

It is intuitive that development funds flowing from real savings/gains achieved through greater efficiencies makes more sense than a begging-bowl approach.

There has been no intention whatsoever to diminish any honest person within this research enquiry, but the reality is that billions are suffering because of incorrect focus with regard the MDG objectives.

Business/Economy Engineering inputs are needed

to correct misunderstandings that are flowing from JS’s & UN’s invaluable work –

it is necessary that correct understandings flow if the suffering is to be alleviated.

Correct understandings can only flow if mindsets are willing to shift.

BUT …….. Mindsets do not shift unless shocked. Severely so!!!!

A footnote:

Einstein’s expression e=mc² is a five-symbol concept; they are five simple symbols, but ones that radically changed mindsets. Because of it now being a common knowledge feature it is not necessary to acknowledge the source, people in the main know the source.

(UPDATE Oct 2015: We now know that Einstein's equation is wrong, because Opticks are wrong)

However, the expressions

• E=cM_s² a six symbol concept for Economic Momentum, and

• “Global Instability”, a sixteen-symbol concept encapsulating Environment issues holistically

- are radical mindset changing concepts derived by CDADD, and is not common knowledge.

It is contended that one or other of these terms have been used within the development of similar conceptual areas, but without the appropriate acknowledgements.

October 3, 2005.

Chris Addington Pr.Eng., 083-962-7098, http://www.cdadd.com;