The International Hub

for the Management of Sustainable Development Projects

 

 

Argumentation

 

 

1. Pragmatics of the model

 

Strengthening the economic sovereignty within the globalization is possible only by developing an exogenous factor that extends the space-time boundaries of the economy and creates new forms of economic genesis. It is known from the management theory that if the system loses the exogenous factor (expansion of dimension), then it is absorbed by another system.

 

Meanwhile, the growth of the global crisis indicates that leading countries are not interested in new forms of development. Being on top of the corporate economic hierarchy, developed countries continue to pursue industrial policy, despite a deep systemic crisis. The contradiction is that in a situation of falling markets industrial policy is implemented entirely by aggressive and destructive management. This further deepens the funnel of crisis, destabilizing society.

 

The result of aggressive management was the migration crisis in Europe, the global rise of political tension, as well as the catastrophic decline of species diversity in ecology over the past 10 years.

 

In new forms of development are more interested countries that are threatened by the loss of economic sovereignty from the collapse of global markets and aggressive management (eg, Sweden, Poland, Turkey).

 

The International Hub provides development of economic sovereignty through two components:

1)     expansion of international law by implementing exogenous format that eliminates conflicts between globalization and national economies;

2)     establishment of new economic forms through new digital institutions and Web-auto-formalization of relations.

 

Digital Economy. The Internet has led to the emergence of digital means of production and the new mode of production that the World Economic Forum in Davos called "the Fourth Industrial Revolution": "It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres [1]." This in fact means the transition from the industrial economy to anthropogenic economy, the transition from professional competence to cognitive skills, from hierarchical management to horizontal management, from directive administration to praxeology.

 

The emergence of a new class of capitalists (Google, Facebook, Apple, eBay, Uber) has demonstrated the domination of digital productive forces over the industrial mode of production.

 

In this regard, there are two evolutionary processes: 1) development of digital property rights; 2) the state is forced to deploy the institutions of the Digital Economy.

 

The state, as a representative of society, is forced to assume the functions of managing digital property and Digital Economy. The protection of the rights of a new class of digital capitalists and development of a new mode of production are the functions delegated by society to the state.

 

To date, the Digital Economy is developed within the framework of industrial ontology, which is working with material entities. For digital property rights, which have long been expected by society, new forms and a new ontology are needed.

 

New era of development. Today's systemic crisis means starting a new era of development, and all countries are in equal starting conditions.

 

Three countries (in accordance with the practice of international treaties), which ratify the draft Agreement, will form a New Shape of international economic interaction and will deploy an international regulatory framework for their exogenous development.

 

These countries will become leaders in sustainable development and ensure economic sovereignty in a globalized world.

 

 

2. Model compliance with Sustainable Development Goals

 

The UN General Assembly Summit on 25-27 September 2015 "Transforming our world: the 2030 Agenda for Sustainable Development" defined 17 Sustainable Development Goals.

 

Achieving these goals is happening in two ways: 1) reforming the existing institutions; 2) deploying the new institutions that would expand the economic relations and ensure a new way of transformation based on coexistence of different forms.

 

While various mechanisms are tested for overcoming the crisis, but the possibilities of the second approach - creation of new institutions with new management potential – are not fully used.

 

Johannesburg Plan of Implementation of the World Summit on Sustainable Development (Johannesburg, South Africa, August 26 - September 4, 2002) noted that "global society has the means and is endowed with the resources to address the challenges of sustainable development confronting all humanity." At the same time "to achieve the goals of sustainable development, we need more effective, democratic and accountable international and multilateral institutions to improve international coordination for sustainable development and mobilizing national and international resources.”

 

The International Hub is a new institution which under UN concept of sustainable development establishes a necessary expansion of legal (digital rights) and economic mechanisms (based on the future-line platform).

 

On this basis, it is provided the integrity of the Digital Economy, which arises with the emergence of a new (digital) form of ownership, new means of production, massive possession of innovations and related new activities.

 

The International Hub is aimed at achieving 17 Sustainable Development Goals.

 

Goal 1. End poverty in all its forms everywhere. The Hub is institutional innovation that enhances economic activity due to the deployment of new legal forms that ensure equal access of citizens to entrepreneurship, individual industrialization and participation in large-scale and regional projects for sustainable development.

 

For example, new legal form (business entity) – digital company allows to attract the population to economic activity and provides automatic payment of taxes and fees to the budget.

 

Goal 2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture. Ensuring food security, improving nutrition and promoting sustainable development of agriculture are the part of large-scale science intensive geo-ecological projects (see Goal 15) which require the coordination of the efforts of the states, business and society internationally.

 

Goal 3. Ensure healthy lives and promote well-being for all at all ages. The transition from the ideology of consumption - to improving the quality of life is the main focus of sustainable development. The implementation of sustainable development projects by the Hub ensures the achievement of this goal. Multifunctional platforms that will be deployed by the Hub, allow to implement any institutional innovations, such as "civilizational law" (civilizm, basic income), which determines the share of national wealth ownership and obtaining dividends to this share.

 

Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. The Hub, expanding the field of economic actions introduces the need and mechanisms for implementing continuous education and training throughout life due to massive competition in economic processes and the pursuit of individual self-fulfillment.

 

Goal 5. Achieve gender equality and empower all women and girls. The future-line platform of the Hub provides equal access to the Hub’s projects, which greatly expands the potential for participation of women and girls. This ensures gender equality.

 

Goal 6. Ensure availability and sustainable management of water and sanitation for all. Hub’s projects aimed at ensuring the availability and efficient use of water and sanitation for all, are based on the implementation of innovative technologies, "green economy" and on the realization of large-scale science intensive geo-ecological projects according to Goal 15. Considering the importance of this goal, we need to coordinate the efforts of governments, business and society, particularly in the dissemination of knowledge and sanitary awareness.

 

The development of individual industrialization in the framework of sustainable development also helps to reduce the water pollution compared with large enterprises that concentrate large capacity.

 

Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all. Hub’s projects aimed at ensuring access to affordable, reliable, sustainable and modern energy supply, are based on the implementation of "green economy". In addition to large-scale projects in this area, transition to individual industrialization plays a major role and would reduce energy supply compared with large energy capacity of industrial facilities.

 

Goal 8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. Achieving this goal is provided through the implementation of sustainable development projects that were previously inaccessible because of the lack of effective coordination between governments, business and society.

 

Hub’s projects include:

-    development of international trade through the implementation of trans-logistic projects, such as near-boundary autobahns; a free trade zones and their logistic integration;

-    development of e-commerce;

-    development of individual industrialization through the new legal form – digital companies;

-    large-scale science intensive geo-ecological projects (for example, resort and agricultural ecosystems), implementation of "green economy", etc.

 

Institutionalization of new assets within the Hub and new innovative activities will expand the economic activity. This will lead to rising stock markets and the development of corporations as the carriers of high-tech assets.

 

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. Hub’s projects are based on use of future-line platform and new legal forms of business, which creates flexible infrastructure and allows to switch from traditional management with its hierarchical structures to praxeology - effective multiplicative interaction.

 

Development by the Hub of individual industrialization will promote mass use of innovations, which today is hampered by the lack of effective cooperation within traditional legal forms of management and requires implementation of new instruments such as digital companies.

 

Goal 10. Reduce inequality within and among countries. Implementation of massive jobs of new quality, such as in digital companies, and development of individual industrialization will reduce inequality within and among countries. Implementation of new legal forms, based on the digital law (which carries out arbitrage based on system algorithms), provides the necessary for development freedom and equality.

 

Goal 11. Make cities and human settlements inclusive, safe, resilient and sustainable. Sustainable development projects that will be implemented by the Hub aimed at unconditional achieve this goal.

 

Goal 12. Ensure sustainable consumption and production patterns. Deployment by the Hub future-line platform of sustainable development involves the use of algorithms of digital "artificial intelligence" (Web-auto-formalization) which is capable of real-time coordination of production and consumption processes in multidimensional integrity of economic ecosystem.

 

Goal 13. Take urgent action to combat climate change and its impacts. Hub’s projects aimed at confronting climate change are among the priority. They are based on the implementation of "green economy" technologies and on realization of large-scale science intensive geo-ecological projects (see Goal 15). Implementation of these projects at the level of national states is extremely insufficient because of the growing threat, and requires a new mechanism of realization on the basis of cooperation of the efforts.

 

Goal 14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development. Hub’s projects aimed, in particular, on the development of individual industrialization, when the goods may be manufactured directly in place of their consumption, significantly reduce the logistics and technogenic burden on nature. Harmful emissions from transportation and destructive technogenic impact go to the balance with nature reproduction capabilities, which reduces pollution of the seas and oceans.

 

Preservation and rational use of the oceans and seas also take place in the context of "green economy" and realization of large-scale science intensive geo-ecological projects (see Goal 15).

 

Goal 15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss. An important focus of the Hub is the realization of large-scale science intensive geo-ecological projects. These projects combine a wide scale fight against global warming and preventing ecological disasters which directly are the consequences of destruction of forests, desertification, land degradation, water pollution, loss of biodiversity and more.

 

Geo-ecological projects are knowledge based and include extensive measures to improve climate conditions in different regions, measures to protect the environment and obtaining high stable yields. The purpose of these projects is to prevent droughts, sandy and dust storms by building ponds, forest shelter plantings and implementation of grassland rotation.

 

The result of the implementation of geo-ecological projects is the preservation and restoration of terrestrial ecosystems, improving the quality of agricultural land, increased forest planting, reducing soil erosion, improving water balance, growth of yields and increasing biodiversity.

 

Large-scale geo-ecological projects require coordination of efforts of states, business and society and therefore can not be realized within national environmental programs.

 

Goal 16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels. Self-organization is an important mechanism for sustainable development, but requires a certain institutional platform. The Hub provides through the deployment of future-line platform necessary tools to create self-organized groups and communities for sustainable development.

 

Also realization of this goal is the transition from management to praxeology that focuses on the interaction of economic entities within the economic ecosystem, rather than within hierarchical traditional management.

 

Goal 17. Strengthen the means of implementation and revitalize the global partnership for sustainable development. Draft Agreement meets achieving Goal 17.

 

 

3. Model compliance with the criteria

 

The International Hub is a meta-model that allows to cover existing core values and create new values and criteria within the holistic concept based on: 1) future-line platform (implementation of economic mechanisms within the ontological platform); 2) draft Agreement (realization of legal mechanisms).

 

This concept provides deploying the property rights in Internet, which increases the dimension of economic activity towards new types of value added.

 

The integrity of the concept and the meta-level of the governance model distinguish the project from fragmentary economic and technological decisions.

 

3.1. Core Values

The model is aimed at improving the quality of life, developing democracy, economic sovereignty and national identity.

 

Focusing the International Hub on the implementation of 17 Sustainable Development Goals distinguishes project from technological digital platforms and other New Forms.

 

3.2. Decision-Making Capacity

The governance model of the International Hub motivates states to participate in projects, including co-financing and fundraising. This is facilitated not only by the prospects of employment and improving quality of life, but also by the profit and ensuring economic growth, social, technological and humanitarian development.

 

The governance model of the International Hub is based on the use of preferences of international law, digital property rights and the institutionalization of global economic cooperation.

 

Decisions on projects, in accordance with the Agreement, are taken by a simple majority of authorized members of the International Hub. Other governments submit their projects (which have international preferences) to the International Hub, identifying their expediency at the national level. Such decision-making system eliminates the threat of delay and significantly reduces the impact of negative emergence.

 

3.3. Effectiveness

The structural mobility of the International Hub provides new models for decision making and project implementation, new concepts and motivations. This makes the governance model suitable for the global challenges and risks and deploying frameworks (constraint systems) that neutralize and eliminate risks.

 

The experimental exploitation of the beta version of the model has shown the high efficiency of the implementation of decisions due to cross-cutting (rhochrematics) interaction between decision-making processes and implementation processes.

 

3.4. Resources and Financing

The International Hub provided with sufficient human and material resources.

 

The International Hub is being created as a highly profitable international organization with participation of member states, business and science, that allows to achieve a significant level of implementation of this criterion.

 

3.5. Trust and Insight

The experimental exploitation showed high level of trust to the governance model and created institutions, due to significant digital knowledge (digital awareness) of today's middle and younger generation, transparency of the model and the ability to monitor and participate in the development and implementation of solutions.

 

3.6. Flexibility

In accordance with the Agreement, the International Hub has a Council of Expert Designers and a Secretariat that provide periodic review and improvement of the structure and components of the governance model based on scientific approaches.

 

3.7. Protection against the Abuse of Power

The organizational structure of the International Hub allows to anticipate and take adequate actions if the organization should overstep its mandate, e.g. by unduly interfering with the internal affairs of nation-states or favouring the special interests of individuals, groups, organizations, states or groups of states.

 

3.8. Accountability

The foundation for successful projects is provided by focusing the governance model on the achievement of 17 Sustainable Development Goals and also on the holistic structure of the model covering the Agreement and ontological platform.

 

In accordance with the draft Agreement, the decision makers of the International Hub are limited in their competence and can not influence the decisions of other experts and executives.

 

References

1. World Economic Forum. Klaus Schwab (2016). The Fourth Industrial Revolution: what it means, how to respond.  https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond.