ABSTRACT
The division between developed and developing economies and their radically different growth priorities are the main impediments to a global regulation of capitalism. This division must therefore be recognised in but overcome by a regulatory structure. The G20 becomes a ‘club’ of rich states with minimum and maximum rules of membership. All countries over a threshold of per capita income must join the club and abide by the minimum rules. Members pass from minimum to maximum rules when their per capita income rises further. Minimum rules: a uniform income tax on all citizens and a uniform profits tax on all enterprises. Maximum rules: the above plus set levels of environmental, health and education expenditure. Countries too poor to join the club enjoy a competitive advantage by avoiding these costs. But when they prosper they must join the club. A Global Economic Commission (GEC) is created. Staffed by a meritocratically-recruited global bureaucracy, it inherits the powers of the current IMF, advises the G20 Executive, collects and polices profits taxes and ensures rule compliance. Advantages of these proposals, especially re. taxation. Disadvantages and objections, especially the obstacles to all the above ‘musts’ in an ‘anarchic’ world of sovereign states. Need for a new ‘Bretton Woods’ conference to implement these reforms. The likelihood of this given the reasons for success in 1944.
