Four phases of the Terra International Monetary Union (TInMUn) Initiative

The Delors Commission in 1989 presented three phases for the EU to arrive at a monetary union that was based upon the ecu (European Community Unit) accounting unit which become the Euro. Cf. Barry Eichengreen's history of the international monetary system. In a similar fashion I am proposing a phased approach to an international monetary union that would be based upon the Terra accounting unit indicating accounting of both economic and ecological (climatic) realities. Given that the proposal includes not only statistics of a regular international balance of payments mechanism, but also of carbon emissions accounting, the fourth phase is added.

First phase would be started on April 20 when the G20 and hopefully representatives of the global South decide to fund a Commission for a Transformed Bretton Woods to be made up of a representative sample of countries in different levels of socio-economic development. The Commission would become part of the UN ECOSOC and draw also on its resources.

The second phase within a 2-3 span would consist of the establishment of an International Monetary Institute would start developing the recommendations of the Commission and setting up rules, regulations, rewards and institutions.

The third phase would consist of the establishment of the Partial International Monetary Union which would implement the rules, regulations and rewards dealing with a balance of payments mechanism dealing with “only” economic realities.

The fourth and final phase would consist of the Integrated International Monetary Union which would add to the balance-of-payments the ecological credits and debits of the member countries. At this juncture the UN ECOSOC Council would be integrated with an Ecological Council where UNEP has been upgraded from a program to an UN institution.

While many monetary observers such as those of The Great Transition (GTI) Listserve of the Tellus organization think of a reformed Bretton Woods, the TInMUn proposal or Initiative is a transformed Bretton Woods, needed given not only the global recession of these times but also the perilous predicament of an ever deepening climate crisis.